Anu Jain's top picks for trade today

Anu Jain, IIFL Private Wealth Management, IIFL is bullish on GlaxoSmithKline Pharmaceuticals and HCL Technologies. However, she is bearish on Reliance Communications, Indian Oil Corporation and Bartronics India.

Here are the key levels to watch out for: Buy GlaxoSmithKline Pharmaceuticals with target of Rs 2,580 per share and stop loss at Rs 2,330 per share. Buy HCL Technologies on dips upto Rs 464 per share with target of Rs 492 and Rs 515 per share. Sell Reliance Communications on bounces upto Rs 145-148 per share with target of Rs 127 and below. Sell Indian Oil Corporation on bounces upto Rs 339 per share with target of Rs 293 per share. Sell Bartronics India on rises upto Rs 86 per share with target of Rs 78 per share. Below is a verbatim transcript of her interview with CNBC-TV18's Mitali Mukherjee and Udayan Mukherjee. Also watch the accompanying video. Q: How much more do you expect the Nifty to pullback after what you have seen already in the last two days? A: Yesterday, the level that you kind of closed at closer to 5,866 was one pullback we were expecting. If it can sustain that then there is the next pullback which can take you closer to 5,925-5,930. The market would essentially find it very difficult to cross those kind of levels, there would be further selling accumulating at those levels. So, I think as of now the first target for a short covering kind of a pullback rally would be closer to 5,930. Q: You would sell as well into the index at that point? A: Yes, I think so because the point remains that the way the fall has been from 6,200 odd in the futures to 5,700, 500 points were very sharp, very swift and there is a pullback which is a very natural event on any case. Having said that, I do not see the market sustaining beyond those levels and probably at higher levels I would look for opportunities to short whether it is individual scrips or whether it is counters. But I would be basically waiting for the level and there would be no shorting in anticipation. So, I would have to watch it, take those levels in and then probably go short. Q: HCL Tech has been a big outperformer from the IT space, you like the chart? A: Yes, it has been steadily up from those Rs 360-460 levels where it is right now. IT has been an outperformer in the current month as well as the previous month, expected to do well even now, can move against the market. So, I would use dips to get into the stock because it is not that it has not corrected during this whole period, so it has gone down, come back again whenever the market is recovered, it showed strength. So, I would probably look for dips which are closer to about 2.5-3% from here. If I am looking at an investment target then my investment target is closer to Rs 515. But for a trading target probably closer to Rs 490-492 is where I would book my profits. So, it is definitely looking to be an outperformer for the current situation as well. Q: What would you do with something like a RelComm? A: RelComm is a very highly volatile scrip to go and short it on a day when the market is on a pullback would be slightly dangerous. But to wait for a level where it meets strong resistances so closer to Rs 145-148 because we have seen sharp pullbacks happen in that zone. I think that would be a fair level to kind of go and short the counter. It is one of the most extremely weak charts that we have seen off-late. It can break down to levels of essentially closer to Rs 127. So, as I said, there should be no rush to get into a trade, but when you get the opportune trade, you should not hesitate to do it. So, probably at higher levels, RCOM makes a very good choice. _PAGEBREAK_ Q: What about the banks, do you think the Bank Nifty has bottomed out in this fall or do you think this is just a pullback that is playing out in some of the frontline names which did well yesterday? A: If you look at the major movers, which are there, whether it is a State Bank or an ICICI Bank or HDFC Bank, all are showing weakness. So, this is a pullback which can happen for another couple of percentage points for sure. So, you can basically see another 2% coming up. But I think it is going to further meet a lot of resistance at those levels. So, I think there is a good possibility that it may move up a bit, but then it is going to go back and test back the lows that it made a few day back and probably break that. So, I would be very cautious to take a long position, but I would initiate short slowly and steadily on to the counter definitely. Q: A couple of chart checks with you, Renuka and Suzlon, both did very well yesterday, any of the technicals suggesting more upside here? A: Of the two, I think Suzlon has a better chart pattern as of now. So, the fact is that it is being able to hold on to the previous lows, it is at about Rs 53, supports are closer to these levels at about Rs 51, it can pull up to about Rs 57-58 kind of zones. Beyond that, I think there would be strong resistance. But, yes, can pull up to those levels. As for Renuka, it has been a strong chart which has outperformed in the last three to three and a half months and it basically moves to the Rs 90 zone then rest around Rs 94-95. If there is momentum in the market, it pulls up to Rs 100. So, if the pullback rally continues for sometime, there would be slightly higher upmoves onto it. But otherwise if I was holding it, I would probably look a stop loss closer to Rs 88-88.50 and if it breaks that then it could go into a tease again. So, probably a strong chart but relatively I would say for the day, Suzlon is a better chart. Q: What are the levels to watch in Infosys? A: I think the level to watch would be Rs 3,288, that was also the low on the day previous to yesterday. Q: How would you go about trading some of these frontline technology names, not just Infosys, but the other ones from there? A: Primarily, if you look at Infosys, if I were to say look at the trend and look at the results then probably I would have to look out to how it pans out to that Rs 3,288. If it were to give that up then the next support comes in only at Rs 3,162. So, it could go down as much as those levels. We have already talked about HCL, it is one of the strongest charts. So, I would probably say that a dip in that would be an opportunity to buy. Possibly I cannot talk about the results, but that chart pattern is better than what Infosys