Buy Rajesh Exports; sell Siemens, Wockhardt: Ashish Kyal

Ashish Kyal of wavesstrategy.com told CNBC-TV18, "The first stock in buy is going to be Rajesh Exports. The stock has very well protected the 50 days moving average when majority of the other stocks have decisively broken even the 200 days average on downside. So, this has been a relative outperformer and it has been consolidating over the past 2-3 months and this consolidation breakout should be on upside which is a continuation pattern. So, one can buy Rajesh Exports with a stop loss of Rs 680 and the target can be expected at Rs 765 on the upside.""The next buy is on Indo Count Industries. It is better to be with the outperformers and within the midcap space this stock has not corrected much. It has managed to find some support near the trendline on the lower side and we can start seeing some reversal back on the upside. So, one can buy the stock with a stop loss of Rs 1,020 and the target of Rs 1,140. However, since we are dealing with midcap stocks it is very prudent to at least use the stop loss because in case of sharp reversal in the broader market there can be some kind of a whipsaw which we might witness," he said."Siemens is a sell. We can see the pressure building up on the entire capital goods space and even the stock started falling from Rs 1,500 levels and has now reached towards Rs 1,000 level. There is still more room left on the downside. It has recently touched the average of 20 days and again reversed back on downside from the Rs 1,200 mark. So, it has been making lower high, lower low and moving in the downward sloping channel. So, the trend is on downside for sure and one can use a stop loss of Rs 1,080 on the upside and target can be expected near Rs 960 on the downside.""The last call is going to be Wockhardt. Today definitely we are seeing a pull back from the lower levels given that the broader market is participating but I am not too optimistic in the near term that the pullback is going to be sustainable. At least it can go up for maybe a day or two more and then there can be some selling pressure emerging again. So, the strategy should be sell on rallies in the stock.""The level of Rs 1,260 is the resistance level, so, one can keep a stop loss very close but Rs 1,260 looks to be a resistance level and on the downside we can expect a target of somewhere around Rs 920 because we have seen very sharp movement on downside over the past 2-3 days. This pull back can be just short covering over short term and once that fizzles out again the downtrend can resume in the stock. So, any rallies can be utilised as a selling opportunity and the downside target remains intact towards Rs 920 level," he added.