Thursday, 17 September 2009

Ashwani Gujral's top five picks for today's trade

HCL Technologies: Buy
Stop loss at Rs 315 per share
Target of Rs 350 per share
HCL Technologies has been in a narrow range for the last eight-ten days and on September 16 broke out above Rs 320-321 –– from here it could easily go up to Rs 350 levels. So, we can keep a stop of about Rs 315 per share and buy it. On September 16, technologies came back so that’s a call given by the American Depository Receipt (ADR) performance that today HCL Tech could do well.

Nilkamal: Buy
Stop loss at Rs 135 per share
Target of Rs 154 per share
Correction for five-six days, stock did well on September 16 for the first day. So that should follow through today; Rs 135 per share is a stop here could buy it with a day’s target of about Rs 154 per share.

Eveready: Buy
Stop loss at Rs 65 per share
Target of Rs 79 per share
Eveready consolidated between Rs 60 and Rs 70 level. On September, the stock tried to move out. Now we have a stop of about Rs 65 per share and we could get to levels of Rs 79-80 per share.

Classic Diamond: Buy
Stop loss at Rs 19 per share
Target of Rs 25/29 per share
All the diamond stocks, the jewellery stocks are doing well maybe exports are picking up. Here Rs 19 per share is a good stop; one could get this stock at Rs 25 per share and even a bit larger target of Rs 29 per share. Generally the smaller stocks start doing well once retail participation comes back and even if the market levels are 5,000, retail participation is really low. So these stocks are yet to get to their full potential.

Torrent Power: Buy
Stop loss at Rs 254 per share
Target of Rs 300 per share
Torrent Power is a stock that’s making fresh highs. Power is sort of in the flavour, on September 16, ABB was seen coming back. So, one could buy this with a stop of about Rs 254 per share, target here could be easily Rs 300 per share. Beyond 5,000, we will get heavy-duty buying, that frenzied buying likely to come in midcap. So a lot of midcaps which broke out on September 16 are good buyers for levels beyond 5,000.

Source: Moneycontrol

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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.