We recommend a sell in the stock of Tata Power Company from a short-term perspective. It is evident from the charts of the stock that its intermediate-term uptrend that commenced in March low of Rs 602 was arrested at Rs 1,487 in late October. The stock has a significant long-term resistance in the band between Rs 1,450 and Rs 1,500 level. Triggered by the negative divergence in the weekly relative strength index and moving average convergence and divergence indicator the stock reversed its direction. Since late October, it has been on a short-term downtrend. On October 30, the counter tumbled 4 per cent penetrating its intermediate-term up trendline. Moreover, it declined 4 per cent with good volume on November 6, reinforcing the downtrend. The stock is trading well below its 21- and 50-day moving averages. The daily momentum indicator has entered the bearish zone. Our short-term outlook on the stock is bearish. We anticipate its decline to continue until it hits our price target of Rs 1,145. Traders with a short-term perception can sell the stock while maintaining stop-loss at Rs 1335.
We recommend a buy in Bharat Forge stock from a short-term perspective. It is perceptible from the charts of the stock that after recording a multi-year low of Rs 69 in January, it began to trend upwards. Since then it has been on an intermediate-term uptrend, forming higher peaks and troughs. While trending up, the stock conclusively broke through key resistance levels at Rs 195 and Rs 240 which subsequently turned in to key support levels. Following a short-term pull-back from Rs 307, the stock found support around Rs 240 and resumed its uptrend. On November 4, the stock gained 7 per cent with above average volume, reinforcing the uptrend. The daily relative strength index (RSI) bounced up from 40 level and is heading towards the bullish zone. Moreover, weekly RSI has entering in to the bullish zone. Our short-term forecast for the stock is bullish. We anticipate it to rally further until it hits our price target of Rs 293 in the approaching trading sessions. Traders with a short-term perspective can buy the stock while maintaining stop-loss at Rs 252.
Recommendation: Buy
Last Close: Rs 243
Last Close: Rs 270/80
Stop Loss: Rs 218
GE Shipping has a very good support around Rs 220-25 levels; these levels would act as support if the stock corrects from current levels. Keep stop loss below Rs 218 for a possible target of Rs 270/80.
Recommendation: Buy
Last Close: Rs 47.70
Last Close: Rs 52
Stop Loss: Rs 45
Truck major Ashok Leyland is in uptrend in the short-term period; the stock is moving up with good volume and has very good support around Rs 45. Keep stop loss below Rs 45 for a possible target of Rs 52/53.
Recommendation: Sell
Last Close: Rs 288
Last Close: Rs 260
Stop Loss: Rs 300
HCL Tech has hit high of Rs 352 and then started moving down after making lower top of Rs 335. Currently trading below Rs 297, it can lead to further downside up to Rs 260. Keep stop loss above Rs 300 for a possible target of Rs 260.
Recommendation: Buy
Last Close: Rs 544
Last Close: Rs 605
Stop Loss: Rs 518
Divi’s Labs has very good support at Rs 518-30; these levels would act as support if the stock corrects from current levels. Keep stop loss below Rs 518. It has a resistance at Rs 570 at which upgrade trailing stop loss to Rs 540.
Recommendation: Buy
Last Close: Rs 700
Last Close: Rs 740
Stop Loss: Rs 680
FMCG major Colgate-Palmolive is in uptrend for short term and is moving up with good volume. The stock has a very good support around Rs 680. Keep stop loss below Rs 680 for a possible target of Rs 740.
We recommend a buy in GMR Infrastructure from a short-term perspective. It is apparent from the charts the stock has been on a long-term uptrend from its October 2008 low of Rs 22.75. However, after encountering resistance around Rs 90 in June it was on a medium-term decline till the July support level at Rs 60. With in the long-term uptrend, the stock has been consolidating sideways in the range of Rs 60 and Rs 75 since July. The key support at Rs 60 along with the positive divergence in the daily relative strength index (RSI) backed the stock’s 7 per cent jump on November 4. The daily RSI is on the verge of entering the neutral region from the bearish zone and the weekly RSI is hovering over the neutral region. Considering that the stock’s long-term uptrend-line is in tact we are bullish on it from a short-term perspective. We expect the stock to move up until it hits our price target Rs 69.5. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 60.
We recommend a sell in the stock of JSW Steel from a short-term horizon. It is evident from the charts that the stock’s intermediate-term rally from March low of Rs 161 had ended in late October high of Rs 935. Triggered by the negative divergence displayed in the daily relative strength index, the stock changed its trend. It has been on a short-term downtrend since October high. While declining, the stock breached it 21-day and 50-day moving average as well as intermediate-term uptrend-line. On November 3, the stock plummeted 10 per cent breaking through its significant long-term support level of Rs 700. The daily RSI is featuring in the bearish zone and weekly RSI is falling in the neutral region towards this zone. Moreover, the daily moving average convergence and divergence indicator has entered the negative territory. Our short-term outlook on the stock is bearish. We anticipate it to tumble until it hits our price target of Rs 610. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 715.
We recommend a sell in the stock of Reliance Power from a short-term perspective. It is apparent from the charts that the stock was on an intermediate-term uptrend from March low of Rs 89 to its June high of Rs 210. Triggered by negative divergence and presence of significant long-term resistance around Rs 200, the stock resumed its long-term downtrend which has been in place since February 2008 high of Rs 374. Moreover, since June it has been on an intermediate-term downt rend. In early October, the stock breached its 21-day and 50-day moving averages and is hovering way below them. Both the daily relative strength index (RSI) and moving average convergence and divergence (MACD) indicators are featuring in the bearish territory. The weekly indicators are on the verge of entering in to the bearish territory. Our short-term forecast on the stock is bearish. We expect the stock’s downtrend to prolong until it hits our price target of Rs 124 in the approaching trading sessions. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 146.
We recommend a sell in the stock of Canara Bank from a short-term perspective. It is evident from the charts the stock has been on an intermediate-term uptrend from its March low of Rs 144. However, the stock’s medium-term uptrend that commenced from August low of Rs 252 accelerated and the stock encountered resistance at Rs 395 in the second week of October. Subsequently, the stock reversed direction triggered by the negative divergence displayed in the daily relative strength index (RSI) and the momentum indicator hitting over-bought territory. On October 27, the stock tumbled 6 per cent breaching the 21-day moving average and reinforcing the short-term downtrend. The daily RSI has slipped in to the neutral region from the bullish zone and weekly RSI is on the verge on slipping. Besides, the daily moving average convergence and divergence has signalled a sell. We are bearish on the stock from a short-term perspective. We anticipate it to dive until it hits our price target of Rs 305. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 356.
We recommend a sell in the stock of Reliance Natural Resources Ltd from a short-term perspective. It was on a medium-term uptrend from March low of Rs 34 to its June high of Rs 112. However, the stock reversed direction after encountering significant resistance around Rs 110 in mid-June. Since then the stock has been on a medium-term downtrend. This downtrend got reinforced as the stock failed to breakthrough the resistance Rs 90 after multiple attempts and continued to decline. On October 26, the stock tumbled 5 per cent penetrating 21- and 50-day moving averages. With this the daily relative strength index (RSI) has entered the bearish zone and the weekly RSI is slipping in the neutral region towards this zone. The daily moving average convergence and divergence indicator has signalled a sell and is on the verge of entering the negative territory. Our short-term outlook is bearish. We expect the stock’s decline to continue until it hits our price target of Rs 72. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 84.5.
Buy in the stock of Nilkamal from a short-term perspective. It is evident from the charts that the stock took support around Rs 43 that is a significant long-term support level in March and has been in an intermediate-term uptrend since then. The stock broke through key resistance at Rs 110 with good volume in late August and continued to trend upward. However, following a short-term sideways movement in the range of Rs 132 and Rs 154, the stock broke out of this range by gaining almost 7 per cent on October 14. It also surpassed the long-term resistance at Rs 150. The stock is trading well above its 21-day and 50-day moving averages. There is an increase in volume over the past two trading sessions. Both the daily and weekly relative strength indices (RSI) are featuring in the bullish zone. We are bullish on the stock from a short-term perspective. We expect it to rally until it hits our price target of Rs 180. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 155.
KOCHI: Brokerage firm Geojit BNP Paribas Financial Services has clocked a net profit of Rs 13.06 crore in the second quarter of this fiscal, registering a 150 per cent growth over Rs 5.22 crore in the same period last year.
The Geojit Managing Director, Mr C.K. George, attributed the positive results to favourable market conditions and renewed investor confidence that have led to the growth of the company.
Revenue in the same period stood at Rs 80.95 crore, witnessing a growth of 60 per cent over Rs 50.61 crore in the corresponding period last year, he said.
The company’s profit before tax rose 110 per cent to Rs 22.11 crore from Rs 10.54 crore in the same period last year.
For the six months ended September, the company’s consolidated income rose 61 per cent to Rs 157.63 crore from Rs 97.96 crore during the same period last year.
Its consolidated profit before tax went up by 107 per cent to Rs 43.28 crore from Rs 20.88 crore, while consolidated net profit rose 113 per cent to Rs 26.31 crore from Rs 12.33 crore.
The company has added about 68,000 clients over the past year and is confident that these numbers will grow in this financial year, he added.
Geojit has opened new branches in North India, Gujarat, West Bengal and Orissa to reach out to local investors, he said. — PTI
Buy in Mercator Lines from a short-term horizon. It is perceptible from the charts of the stock that since its March low of Rs 21 the stock has been on an intermediate-term uptrend. However, after encountering resistance at Rs 76 in June, the stock went through a medium-term correction till the July low of Rs 42. Later, the stock resumed its uptrend, taking support in the Rs 42-45 band. In mid-September, it crossed the 21-day and 50-day moving averages and is currently trading way above them. On October 8, the stock jumped 9 per cent, accompanied by high volumes and began to shape a flag pattern. The daily relative strength index (RSI) is featuring in the bullish zone and the weekly RSI is on the brink of entering this zone. Both the daily and weekly moving average convergence and divergence indicators are hovering in positive territory. Taking into consideration that the stock’s intermediate-term uptrend-line is intact we are bullish from a short-term perspective. We expect it to move up until it hits our price target of Rs 72. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 61.5.
The earnings season officially kicked off in US, with aluminium giant, Alcoa reporting after the bell. The Dow component bettered street expectations on both earnings and revenue. The company reported profit of 4 cents a share in the third quarter, excluding one-time items; analysts were expecting a loss.
Alcoa’s sales reached USD 4.62 billion, ahead of analysts' USD 4.55 billion dollar forecast. Its stock jumped more than 5% in after hours trading.
We recommend a sell in HCL Technologies from a short-term perspective. It is apparent from the charts of the stock that after recording a multi-year low of Rs 89 in early-March, it has been on an intermediate-term uptrend. However, the stock encountered significant long-term resistance at Rs 350 in late September and reversed its direction.
The stock’s reversal was triggered by factors such as negative divergence displayed in its daily relative strength index (RSI) as well as moving the average convergence and divergence (MACD) indicator and long-term resistance. Besides, both weekly RSI and MACD were hovering in the overbought territory.
Since then, the stock has been on a short-term downtrend. On October 6, it fell 5 per cent, penetrating the medium-term up trendline that has been in place from a July low of Rs 163. The daily RSI is slipping in the neutral region towards the bearish zone. The daily MACD has signalled a sell. Our short-term forecast on the stock is bearish. We anticipate it to decline until it hits our price target of Rs 280 in the approaching sessions. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 324.
We recommend a buy in the stock of ITC from a short-term perspective. It is perceptible from the charts of ITC that the stock has been on a long-term uptrend since its October 2008 low of Rs 132, forming higher peaks and bottoms. After recording a life-time high of Rs 153 in late July, it saw a medium-term downtrend till late September. Taking support in the band of Rs 220 and Rs 225, the stock resumed its long-term uptrend recently. It gained 6 per cent accompanied with good volume in the last two sessions and is trading well above the 21-day and 50-day moving averages. The daily and weekly Relative Strength Indices are featuring in the bullish zone. The daily moving average convergence and divergence indicator is signalled a buy and is hovering in the positive territory. Considering that the stock’s intermediate-term up trendline is intact, we are bullish. We expect it to surpass its all-time high and rally until it hits our price target of Rs 270. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 235.
s:BL
We recommend a sell in the stock of Venus Remedies from a short-term perspective. It is perceptible from the charts of the stock that it was on an intermediate-term uptrend between April and early September, from Rs 145 to Rs 312. Encountering long-term resistance in the band of Rs 300 to Rs 310, the stock changed it trend. Since then, it has been on a medium-term downtrend. On September 10, the stock tumbled 8 per cent with a downward gap, reinforcing this trend. Subsequently, it continued to trend south, penetrating intermediate-term up trendline as well as support at Rs 250. The stock is trading well below its 21-and 50-day moving averages. The daily relative strength index has entered in the bearish zone and weekly RSI is slipping in the neutral region. Besides, the daily moving average convergence and divergence indicator has entered the negative territory. We are bearish on the stock from a short-term perspective. We expect it to decline until it hits our price target of Rs 216. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 252.
s:BL
I’ve a Unitech 120 call at Rs 3.25 last Friday. Please suggest if I should trigger stop-loss now or buy at the current level to average – Mr K.L.N.Murthy, Bangalore
Your 120 call is now quoting at Rs 1.7. You can consider the following strategies.
a) The underlying is in a medium-term downtrend and is unlikely to reach Rs 120 in near term. So you can book your loss and exit from the counter straight away.
b) The other strategy is to sell Rs 110 call, which is quoting at a premium of Rs 4.40. This will turn your position in-the-money. If Unitech falls further, the short position would curtail the loss. A maximum loss of Rs 10 per contract would occur if Unitech moves above 120. We expect the stock to move in Rs 95-115 range and it might touch the lower band of Rs 95.
Please advice if I can buy Punj Lloyd and Bharti Airtel (October series) at current levels. – Ms Vidya Anandakrishnan, Palakkad
Bharti Airtel (Rs 437) You can stay away from Bharti Airtel. The counter is currently witnessing a range-bound movement with plenty of whipsaws that are difficult to trade. Wait for the stock to move out of its current range between Rs 395 and Rs 440 before taking any position in this counter.
Punj Lloyd (Rs 261) You can stay away from this counter also as it is currently grappling with the key resistance in the Rs 260 zone. A break-out beyond this zone can make the stock rally to Rs 290 or Rs 355 while a reversal from here can cause a decline to Rs 185 or Rs 205. As sharp moves are possible in either direction, it is wise not to venture into Punj Lloyd futures.
I have a futures position in Bharat Forge. Can I hold this position for some more time or is the stock expected to come down? - Pratiksha Thakore
You have not specified the rate at which you have purchased the Bharat Forge futures. That makes it difficult for us to advise you on your position. If we consider the clues provided by the F&O market in this stock, the accumulations of open interest were quite low. Client-wide positions stood at just 5 per cent as against overall market wide position. Option trading on this stock is also not active.
As long as the stock (underlying equity) stays above Rs 270 there is no problem for the counter. In that event, the chance of it heading towards Rs 300 is bright. On the other hand, if it fails to sustain 270, the stock could test 230 and then to 190-200 level. The annualised volatility at 77.54 suggests it could swing sharply. You can hold on this futures with a stop loss at 270 (spot price).
s:BL
PANTALOON RETAIL
RESEARCH: JP MORGAN
RATING: OVERWEIGHT
CMP: Rs 331
JP Morgan reiterates `Overweight' rating on Pantaloon Retail (PRIL). Pantaloon reported net sales of Rs 1,660 crore (+20% y-o-y), EBITDA of Rs 180 crore (+30% y-o-y) and PAT of Rs 36.5 crore (+12% y-o-y) for Q4 FY '09 on a standalone basis. PRIL reported FY09 consolidated sales of Rs 7,670 crore (+31% y-o-y), EBITDA of Rs 500 crore (+71% y-o-y) and PAT of Rs 11.7 crore.
Earnings were depressed primarily due to insurance and telecom business related losses. Most of the subsidiaries have achieved significant scale and are expected to break even next year. Incremental funding requirements for subsidiaries will be largely met by an equity stake sale with reduced investments by the parent company.
Catalysts that could affect stock performance in the near term are: 1) Operating performance of subsidiaries and extent of investments being made by parent company in them, 2) Extent of equity dilution and de-leveraging, and 3) Any strategic alliances/partnerships.
JP Morgan believes PRIL, with its multi-format and multi-category strategy, reliable supply chain infrastructure and significant location advantage is a key beneficiary of the improving economic climate. We anticipate standalone earnings growth for Pantaloon to accelerate driven by improving sales growth trends, cost containment focus and benign competitive environment.
s:ET
KS OIL RESEARCH: BANK OF AMERICA RATING: BUY CMP: Rs 67.70 Bank of America initiates coverage on KS Oils with a `Buy' rating and target price of Rs 90, which implies 41% upside.
KS Oils is India's largest mustard oil producer and has quadrupled its market share to 11% since FY06.
BofA believes the company will grow through consolidation in the fragmented mustard oil market.
Since FY06, KS Oils has focused on the mustard oil segment and ramped up capacity 6x by building efficient plants. Its mustard oil brands, Kalash and Double Sher, have a strong presence in North and North East India with over 30% market share.
BofA expects the company to nearly double market share to 19% by FY12 led by efficient procurement and capacity utilisation and estimates 28% EPS CAGR over FY09-12 E as increased capacity contributes to revenue and margin improves 140 bps.
While capex to sales ratio is expected to halve to 6% versus ~13% in FY09 as high capex in oil business is behind, ~60% of its capex going ahead will be for palm plantations in Indonesia. The stock trades at 8x FY11E P/E and 5.2x FY11E EV/EBITDA.
s:ET
- Grab BhartiARTL in opening bell only, so that u can book huge profit today irrespective of market trend...:)
We recommend a buy in the stock of Atul from a short-term perspective. It is evident from the charts that it took support around Rs 35 in March and began to trend up. Since then, it has been on an intermediate-term uptrend, shaping higher peaks and bottoms. In late August, the stock conclusively broke through a significant resistance level of Rs 70 with good volume. The stock is trading well above its 21- and 50-day moving averages. It gained almost 6 per cent accompanied with high volume on September 30, reinforcing the uptrend. The daily relative strength index (RSI) bounced back into the bullish zone and the weekly RSI is already featuring in this zone. The daily moving average convergence and divergence (MACD) indicator has signalled a buy. Given that the stock’s medium-term uptrend is intact, we are bullish from a short-term perspective. We anticipate its up-move to continue until it hits our price target of Rs 95 in the approaching trading sessions. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 81.
Buy: Syndicate Bank
Buy in Syndicate Bank from a short-term perspective. It is evident from the charts of the stock that after recording a multi-year low of Rs 37.6 in March, the stock has been on an intermediate term uptrend. However, it has been consolidating sideways in the range of Rs 76-84 over the past month. On September 11, the stock gained almost 4 per cent, accompanied with good volume. The stock is trading well above its 21- and 50-day moving averages. Both the daily and weekly relative strength index (RSI) have re-entered the bullish zone from the neutral region. The daily moving average convergence and divergence indicator is signalling a buy. Considering that the intermediate-term up trendline is intact, we are positively biased on this stock from a short-term perspective. We expect the stock to move up further until it hits our price target of Rs 92 in the approaching trading sessions. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 79.
S:BL
