BUY SICAL LOGISTICS RECOMMENDS BUSINESSLINE

We recommend a buy in the stock of Sical Logistics from a short-term perspective. It is evident from the charts of the stock that after encountering resistance in the band between Rs 100 and Rs 105 in April 2010, it started to decline. However, in late October 2010, the stock found support at its intermediate-term support range between Rs 60 and Rs 62 and changed direction triggered by positive divergence displayed in the daily moving average convergence divergence oscillator. Moreover, the stock jumped 7 per cent with above average volume on November 1, breaching its 21-day and 50-day moving average.

The daily relative strength index has entered the bullish zone and weekly RSI has entered the neutral region from the bearish zone. Daily MACD has signalled a buy. We are bullish on the stock from a short-term perspective. We expect Sical Logistics to rally further until it hits our price target of Rs 70 or Rs 71 in the upcoming trading session. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 65.

DAY TRADING GUIDE FOR 2.11.2011

DLF

Fresh long position can be initiated if DLF advances above Rs 365 levels with stiff stop-loss.

ICICI Bank

The near-term outlook is positive for the stock. We re-affirm our buy recommendation in the stock.

Infosys

Initiate fresh long position the stock moves above Rs 3,010 levels with tight stop-loss.

L&T

We recommend a buy with stop-loss at Rs 2,065 levels. .

ONGC

Fresh long position can be initiated if the stock climbs above Rs 1,330 levels with rigid stop-loss.

Reliance Capital

As long as the stock trades below Rs 835, the near-term stance remains negative. Hence, fresh long position is recommended only if the counter move above this level with stiff stop-loss.

Reliance Communications

Initiate fresh long position only if Reliance Communications moves beyond Rs 185 levels with tight stop-loss.

Reliance Industries

Make use of dips to buy the stock while maintaining stiff stop-loss at Rs 1,080 levels.

SBI

Fresh long position can be initiated if SBI climbs above Rs 3,210 levels with tight stop-loss.

Nifty Futures

Nifty futures jumped 1.8 per cent, witnessing buying interest in the last trading session. We recommend a buy with stop-loss at 6,118 levels.