Daily Trading Stock Picks - May 20

Posted by admin in Mid Term Picks, Trading on May 19th, 2010 | no responses

Check out top five trading stock picks of the day by Rajan Malik, Head- PCG Advisory Anand Rathi Financial Services.

Source: Economic Times

Indian Oil Corporation

RECOMMENDATION:Buy
Last Close: Rs 313
Target: Rs 335
Stop Loss: Rs 305
The stock has broken out of an inverse head and shoulders pattern with its neckline at around Rs 310. The immediate target is at Rs 335. The RSI has a confirmed a buy signal as has the MACD.

Cipla

RECOMMENDATION:Buy
Last Close: Rs 311
Target: Rs 350
Stop Loss: Rs 300
The stock has been in consolidation zone. It reacted from its resistance at Rs 354 recently to come to the lower end of the band. The RSI has turned positive, indicating a buy and the stock is also near its support.

DLF

RECOMMENDATION:Sell
Last Close: Rs 278
Target: Rs 260
Stop Loss: Rs 285
The stock has been in a rectangular consolidation pattern. It breached the lower end of the band on Wednesday, signifying further weakness. The immediate support would come at around Rs 260. The RSI and the MACD confirm the sell.

HDFC

RECOMMENDATION: Sell
Last Close: Rs 2675
Target: Rs 2550
Stop Loss: Rs 2725
The stock has been moving in an upward sloping channel which it breached on Wednesday. The width of the channel is Rs 200. The overall target is around Rs 2,550. The RSI and MACD have also given the sell signal.

Hindalco

RECOMMENDATION: Sell
Last Close: Rs 157
Target: Rs 130
Stop Loss: Rs 160
The stock has broken through a multiple head and shoulders pattern with a neckline at Rs 160. The immediate target will be Rs 130. The RSI has given a sell signal and the MACD is in the sell zone.