Wednesday, 24 September 2008

Day trading Tips

We retain our previous view of initiating fresh short-positions if the stock declines below Rs 585, with tight stop-loss.

In line with our anticipation, the stock fell in the last trading session. The stock tumbled over 6 per cent in the last two trading sessions, signalling weakness. We retain our sell recommendation.

Though the stock managed to close positive on Wednesday, it has formed a gravestone doji candlestick pattern that indicates bearish. We recommend a sell in this counter.

Sell the stock in rallies with tight stop-loss at Rs 1,100 level.

Reliance Capital
The stock is pausing at around current levels. Avoid trading in this counter for the session.

Reliance Communications
The counter is moving sideways in a narrow range. Buy the stock dips with stiff stop-loss at Rs 360.

Reliance Industries
Initiate fresh long-position if the stock surpasses the Rs 2,075 level with close stop-loss.

Satyam Computer
The stock was volatile and shaped spinning top candlestick pattern with heavy volume on Wednesday. Desist trading in this stock for the day.

The outlook is cautious for the stock. Avoid trading in this stock for the session.

The near-term stance is bearish for the stock. We re-affirm our sell recommendation.

- Hindu Business Line


Stock: IVRCL
CMP: Rs 250
Target: Rs 308
Recommended By: Prabhudas Lilladher

Buy Jindal Saw

Stock: Punj Lloyd
CMP: Rs 615
Target: Rs 675
Period: short-term trading perspective
Stop Loss: Rs 584
Recommended By: Hindu Business Line

Buy Punj Lloyd

Stock: Punj Lloyd
CMP: Rs 290
Target: Rs 532
Recommended By: Sharekhan

Buy Power Grid

Stock: Power Grid
CMP: Rs 93
Target: Rs 110
Recommended By: Indiabulls in their latest research report
Reasons: "At the current market price of Rs 91.10, the Company is trading at a price to book multiple of 2.73x. Our valuation model gives us a target price to book multiple of 3.29x and a estimated fair value of Rs 110. We have assumed a discount rate of 9.25%. Our target price shows an upside of 21% from the current price. We therefore initiate coverage with a BUY rating"

Stock tip: Satyam Computers

Stock: Satyam Computer Services
CMP: Rs 334
Recommended By: SP Tulsian, Investment Advisor
Period: buy with 3-6 months perspective
Reasons: Weaker Rupee, cheapest among peers

It has also been recommended by Ashwani Gujral. He thinks long term investors can invest in this stock. As per him Satyam has support around Rs 280-300 and could get above Rs 400-410 levels.

Vijaya Bank likely to move up by 10%

Stock: Vijaya Bank
CMP: Rs 35
Target: Rs 40+
Recommended By: Prakash Gaba, Technical Analyst

DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.