Top Trading Picks - September 1, 2010

Posted by admin in Mid Term Picks, Trading on Aug 31st, 2010 | no responses

Check out the top five stock picks of the day for trading by Jitendra Mehta, AVP, Hedge Fund Desk, Edelweiss Securities.

Mahindra & Mahindra

Recommendation: Buy
Last Close: Rs 628
Target: Rs 645
Stop Loss: Rs 618
M&M has returned from its strong support zone of Rs 600-605 with an increase in volume. The price advanced past the declining supply line and closed above the same. Daily RSI and Stochastic has triggered a bullish crossover, depicting room for upside.

Reliance Industries

Recommendation: Buy
Last Close: Rs 915
Target: Rs 960
Stop Loss: Rs 899
Reliance has been in downtrend for a few months. There may be a selling climax as the scrip declines on strong volumes. An intermediate pullback seems closer than the price suggests. Daily RSI is extremely oversold and a reversal will trigger a buy.

Ranbaxy

Recommendation: Buy
Last Close: Rs 491
Target: Rs 525
Stop Loss: Rs 478
Ranbaxy has advanced above its key resistance zone and 200 DMA with increased volume. It’s now breaking of a flag pattern with good volumes. Daily RSI has remained bullish while daily stochastic has given bullish crossover.

Punjab National Bank

Recommendation: Sell
Last Close: Rs 1,178
Target: Rs 1,130
Stop Loss: Rs 1,200
PNB has formed a rounded top after making a swing high of Rs 1,225. The candlestick pattern has formed a doji, depicting balance between bulls and bears. There may be a retreat to support Rs 1,130 as depicted by a bearish crossover in daily RSI and stochastic.

Bajaj Auto

Recommendation: Sell
Last Close: Rs 2,735
Target: Rs 2,650
Stop Loss: Rs 2,775
Bajaj Auto has formed a head & shoulder pattern on hourly charts and pierced its neckline. There was a correction after an upmove. Oscillators on daily charts have triggered a bearish crossover, depicting corrective price action is expected ahead.