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Last Updated : Apr 06, 2016 03:25 PM IST | Source: CNBC-TV18

Buy Jet Airways, Tata Steel; sell Maruti Suzuki: JK Jain

JK Jain, Derivative Analyst at Karvy Stock Broking recommends buying Jet Airways and Tata Steel and advises selling Maruti Suzuki.

JK Jain, Derivative Analyst at Karvy Stock Broking told CNBC-TV18, "We are recommending two buy recommendations and one sell recommendation. The buy is Jet Airways. The stock is clearly seeing long position build up. Generally whenever these stocks start with a positive note for the series it keeps on moving up. The momentum would be carrying out throughout the series. Jet Airways has already given 10-11 percent up move in this series along with the open interest addition clearly indicating that the momentum would carry on. So, we recommend buying Jet Airways at current level keeping a stop loss of Rs 590 for the target of Rs 615."

"The other stock we are giving a recommendation buy is Tata Steel. It has clearly seen a long position build up despite significant up move in the large series. We have seen most of the longs that rolled over and there were fresh additions that are seen in this series. So, we recommend to trade long in this stock with a stop loss of Rs 318 for immediate target of Rs 334 and higher as well," he said.

"We are recommending a sell in Maruti Suzuki at current juncture with a stop loss of Rs 3,640 for target of Rs 3,510. This stock also has clearly taken a resistance at 50-day moving average (DMA) and we have seen good amount of short positions that were build up. Even if you look at the premium the stock was trading at a 30 points premium a couple of days back which has fallen down to 3-4 points. Even in today's trade we are seeing fresh short positions that got built up in the stock. So, one can take a short position in the stock for target of Rs 3,510."
First Published on Apr 6, 2016 03:22 pm