Daily Trading Stock Picks - May 21

Posted by admin in Mid Term Picks, Trading on May 20th, 2010 | no responses

Check out top five trading stock picks of the day by Manas Jaiswal, AVP-Technical Analyst, Motilal Oswal Financial Services.

Source: Economic Times

DLF

RECOMMENDATION:Sell
Last Close: Rs 270
Target: Rs 283
Stop Loss: Rs 245
DLF is making lower tops and lower bottoms. Yesterday, it broke an important support of Rs 281 with good volumes. The lower tops and bottoms trend will continue. However one should keep a stop-loss of 283 for all the short positions.

SAIL

RECOMMENDATION:Sell
Last Close: Rs 200
Target: Rs 207
Stop Loss: Rs 186
The stock is continuously making lower bottoms and yesterday it broke the previous low of Rs 201. It can break the Feb’10 low of Rs 197 and can test Rs 186, which is 38.20% retracement level of entire rally from Rs.55 to Rs.267.

BERGER PAINT

RECOMMENDATION:Buy
Last Close: Rs 63.90
Target: Rs 59
Stop Loss: Rs 75
After taking support at Rs.57 on April 7, it started its northbound journey. On Wednesday, it broke the upper band of a triangular pattern with good volumes. One can create long position with stop-loss of Rs 59.

Karnataka Bank

RECOMMENDATION:Buy
Last Close: Rs 156.15
Target: Rs 144
Stop Loss: Rs 173
The stock has made an inverse head & shoulder pattern, which is a bullish sign. On Monday, it broke the neckline of inverse H&S pattern with good volumes. The target of this breakout will come at Rs 173.

CIPLA

RECOMMENDATION:Buy
Last Close: Rs 317.65
Target: Rs 309
Stop Loss: Rs 335
Yesterday, the stock broke the Rs 316-Rs 309 range with decent volumes and closed strong. One can buy for a bounce back play with stop-loss of Rs 309, now it can test Rs.329 and above that Rs 335.