Top Trading Picks - July 27, 2010

Posted by admin in Advice, Trading on Jul 26th, 2010 | no responses

Check out the top five stock picks of the day for trading by Michael Pillai, Technical Analyst, Nirmal Bang Securities.

LIC Housing Finance

RECOMMENDATION: Buy
Last Close: Rs 1062
Target: Rs 1135
Stop Loss: Rs 1032
Accumulate on dips from an investment perspective. The structure looks very positive as the stock is well placed above all its moving averages. We see a minimum 4-6% jump from the current level keeping a stop-loss of 1,032 on the closing basis.

Cairn India

RECOMMENDATION: Buy
Last Close: Rs 331
Target: Rs 345
Stop Loss: Rs 318
The stock has given a fresh breakout above the 318 level after a long time of consolidation with rising volumes. Technically the trend is up, but since it’s s low beta stock, we could see the rally happening on a longer time frame.

IFCI

RECOMMENDATION: Buy
Last Close: Rs 61.70
Target: Rs 71
Stop Loss: Rs 59
Buy from a trading perspective. The stock is well placed above all its moving averages and the ongoing trend could turn very strong if it continues to trade above the 62 level in the near term. The immediate targets could be 66 and then 71 in the longer run.

Power Finance Corporation

RECOMMENDATION: Buy
Last Close: Rs 318
Target: Rs 357
Stop Loss: Rs 302
The stock has been under pressure for the past several sessions. We believe it can be accumulated around 300 levels for the long term. The 50-DMA is placed at 299 which could act as a strong support in the near term.

Axis Bank

RECOMMENDATION: Buy
Last Close: Rs 1385
Target: Rs 1430
Stop Loss: Rs 1365
Buy on dips and accumulate the stock from a long-term perspective. It hit a new 52-week high of 1,396 yesterday and has been an outperformer among private banks. From a trading angle, the stop-loss can be placed at 1,365 for a target of 1,430.

Source: Economic Times