Gaurav Bissa of LKP Securities is of the view that one may buy Mindtree with a target of Rs 1500.
On CNBC-TV18's show Super Six, market gurus Sameet Chavan, Gaurav Bissa and Aditya Agarwal, place their bets on two stocks each, thus offering investors a variety of options to choose from. Investors can read into the detailed analysis before agreeing to any or all the bets.
Sameet Chavan of Angel Broking
Our first recommendation would be to buy Mindtree for a target of Rs 1,520 and stoploss can be kept at Rs 1,430. Yesterday this stock was bucking the trend while the broader market witnessed sharp sell off during the second half. This stock managed to confirm a breakout from the cup and handle pattern on a closing basis. In addition, volumes were twice of its average daily volumes. That indicates that the stock is likely to outperform over the next few trading sessions. Hence we have a buy recommendation for a target of Rs 1,520.
Our second recommendation would be to short Asian Paints for a target of Rs 770-775 and stoploss can be kept at Rs 830. After consolidation of nearly 4-5 trading sessions, this stock gave a breakdown on the hourly chart from the rising channel pattern. This clearly indicates that the stock is likely to slide towards Rs 770-760 over the next few trading sessions. Considering the risk to reward ratio, it is advisable to short this counter on a minor bounce probably towards Rs 815-818. Our target would be Rs 770 and stoploss can be kept at Rs 830.
Gaurav Bissa of LKP Securities
My first recommendation today is buy on Mindtree. IT sector in last couple of trading sessions has been relatively stable and that has put some amount of confidence in my stock pick today. Momentum indicators are quite strong, it is trading above majority of its averages, it has given up 3-4 months range breakout, so that also augurs well for this stock. So considering the derivatives and the technical indicators as well as these parameters, I feel one can go long in Mindtree for a target of Rs 1,500 and keeping the stoploss at Rs 1,450.
My second recommendation today is a relatively illiquid counter that is Colgate Palmolive. It has seen consistent short covering in past two trading sessions. It has fallen with incremental volumes, it is trading below the majority of averages, it has seen falling from 200 day moving average (DMA) yesterday, it is giving a breakout on short-term daily charts. So I feel one can short here for a trading target of Rs 1,895, keeping the stoploss of Rs 1,950.
Aditya Agarwal of Way2Wealth Securities
Axis Bank we saw short covering rally -- on higher side I think Rs 530-535 remains a very crucial resistance level and from those levels only yesterday we saw some correction in Axis Bank and with this we saw some short positions got rolled over in next series. So we are expecting that overall trend for Axis Bank is still weak and this stock will continue to see some selling pressure. So any pullback towards Rs 510-515 can be used to make short positions in Axis Bank keeping a target of Rs 465 on lower side and on higher side, stoploss will be Rs 540.
Second call will be a sell call in Wockhardt. If we see the stock, the rally from Rs 1,120 which started in last week till Rs 1,430 it is just 50 percent retracement of the overall correction the stock saw from Rs 1,750 level. Exactly from those levels, we saw some short positions getting built up in yesterday's trade and we have seen heavy correction in this stock. So we are expecting that selling pressure may continue and on the lower side, the stock may test Rs 1,270, which will be your first target and Rs 1,220 will be the second target. So overall view is still weak and we are recommending to make short positions on any pullback in Wockhardt keeping a stoploss of Rs 1,380.The Great Diwali Discount!
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First Published on Sep 23, 2015 08:54 am