DAY TRADING TIPS FOR 13.3.2011

March 13, 2011:

DLF

Make use of rallies to sell the stock with tight stop-loss at Rs 232 levels.

ICICI Bank

Initiate fresh short position if the stock reverses from Rs 1021 levels with tight stop-loss.

Infosys

Fresh long position can be initiated only if the counter moves beyond Rs 3075 levels with stiff stop-loss.

L&T

The stock is experiencing sell pressure at higher levels. Utilise rallies to sell the stock while maintaining stiff stop-loss at Rs 1565 levels.

ONGC

We recommend a buy in the stock of ONGC with fixed stop-loss at Rs 275 levels.

Reliance Industries

Make use of dips to buy the stock while maintaining tight sop-loss at Rs 976 levels.

SBI

The near-term stance is bearish for the stock. We recommend a sell in the stock with tight stop-loss at Rs 2596 levels.

Tata Motors

Fresh long position is recommended only if the counter climbs above Rs 1176 levels with tight stop-loss.

Tata Steel

Fresh short position can be initiated if the stock fails to move beyond Rs 591 with stiff stop-loss.

Nifty Futures

Initiate fresh long position only if Nifty Futures advances above 5500 levels with tight stop-loss.

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SHORT-TERM TRADING TIPS: Aries Agro (Rs 122.6): Buy

We recommend a buy in the stock of Aries Agro from a short-term perspective. It is evident from the charts of the stock that after encountering resistance at Rs 200 in late September 2010, the stock started to decline and was on a medium-term downtrend. However, after retracing approximately 61.8 per cent Fibonacci retracement level of its prior up move, the stock found support in the band between Rs 95 and Rs 100 in early February 2011. Moreover, Rs 100 is key medium-term support level. Subsequentlytriggered by positive divergence in the daily relative strength index as well as moving average convergence divergence indicator, the stock reversed direction. It has been on a short-term uptrend since then.

On March10, the stock conclusively broke through its medium-term downtrend line and 50-day moving average by jumping seven per cent with good volumes. With this, the stock appears to have resumed its long-term uptrend. The daily RSI has entered the bullish zone and daily MACD is on the verge of entering the positive territory implying upward momentum. We are bullish on the stock from a short-term perspective. We anticipate its up move to continue until it reaches our price target of Rs 127 or Rs 130 in the days ahead. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 119.5.

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sourced from: Business Line

SHORT TERM TRADING TIPS : BUY - Elgi Equipments (Rs 90.5)

We recommend a buy in the stock of Elgi Equipments from a short-term perspective. It is apparent from the charts of the stock that it has been on a long-term uptrend from its March 2009 trough around Rs 14, forming higher peaks and higher troughs. In early February 2011, the stock found support (200-day moving average) around Rs 75 following a corrective decline from its November 2010 peak of Rs 106. The stock resumed its long-term uptrend triggered by positive divergence in the daily relative strength index. Since then, the stock has been on a short-term uptrend as well.

Reinforcing this trend, it jumped almost six per cent accompanied by good volume on Wednesday. Moreover, it is hovering well above its 21- and 50-day moving averages. The daily RSI has entered the bullish zone and weekly RSI is on the brink of entering this zone from the neutral region. Daily moving average convergence divergence indicator has entered positive territory implying upward momentum. Our short-term forecast for the stock is bullish.

We expect it to move higher until it touches our price target of Rs 94 or Rs 96 in the forthcoming trading session. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 88.

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SOURCE: BUSINESS LINE

SHORT-TERM TRADING TIPS: BUY - Apollo Tyres (Rs 61.9)

We recommend a buy in the stock of Apollo Tyres from a short-term perspective. It is evident from the charts of the stock that following its all-time high of Rs 88 marked in September 2010, it was on a medium-term downtrend until it found support at its long-term base of around Rs 45 in early February 2011. With positive divergence displayed in the weekly relative strength index and due to the presence of significant long-term support at this level, the stock changed direction . Since then, Apollo Tyres has been on a short-term uptrend. The stock jumped 7 per cent on March 1, breaching its 21-day moving average conclusively and also formed a bullish engulfing candlestick pattern. Moreover, on Tuesday the stock surged 4 per cent, decisively penetrating its immediate resistance at Rs 60 as well as its 50-day moving average.

We notice that there has been an increase in daily volumes over the past six trading sessions, strengthening the bullish momentum. The daily RSI has entered the bullish zone from the neutral region and the weekly RSI is heading towards the bullish zone. Daily moving average convergence divergence indicator has entered the positive territory implying upward momentum. We are bullish on the stock from a short-term horizon. We expect its up move to prolong until it hits our price target of Rs 64 or Rs 66 in the approaching sessions. Short-term traders can consider buying the stock with stop-loss at Rs 60.
Source: Business Line

Hold Punj Lloyd; target of Rs 91: Emkay

Emkay Global Financial Services has recommended hold rating on Punj Lloyd with a target of Rs 91, in its February 28, 2011 research report.

“Punj Lloyd’s exposure to Libya stands at Rs 98 billion or 35.4% of Dec’10 order backlog of Rs 277.8 billion. No progress on Libyan orders worth Rs 62 billion (placed on SEC) - fortunes for which always stood at abeyance. Commenced execution on projects worth Rs 36 billion - Punj Lloyd is cash positive to the tune of Rs 2.65 billion. For FY12E, Libyan contribution at 4% of revenues and 18% of net profit. Punj Lloyd’s exposure to Libya stands at Rs 98 billion or 35.4% of Dec’10 order backlog of Rs 277.8 billion. Further, there was no progress on Libyan orders worth Rs 62 billion (placed on Sembawang Corporation) - fortunes for which always stood at abeyance. These orders were not factored for execution and revenue booking in ensuing quarters . Some progress was accorded on Libyan orders worth Rs 36 billion placed on Punj Lloyd - however progress remain tardy as mentioned in Q3FY11 result update. On exclusion of Libya orders from order backlog, Punj Lloyd forward order book stands at 2.1X FY11E revenues - lending revenue visibility for 8 quarters.”

For more reading visit : http://www.moneycontrol.com/news/recommendations/hold-punj-lloyd-targetrs-91-emkay_526527.html

SHORT TERM TRADING TIPS - Gujarat Narmada Valley Fertilizers Company (Rs 107.8): Buy

YOGANAND recommends a buy in the stock of Gujarat Narmada Valley Fertilizers Company (GNFC) from a short-term perspective. It is apparent from the charts of the stock that its long-term uptrend that started in March 2009 low of Rs 52 has ended after encountering resistance around Rs 145 in November 2010. Since then, the stock has been on a medium-term downtrend. The stock breached its key support at Rs 120 and 200-day moving average around this level in early January, and continued to decline.

However, the stock's decline appears to have come to an end recently as it found support at Rs 105 and bounced up almost 4 per cent on February 22. We notice that there is an increase in volumes over the last seven trading sessions. Moreover, the daily moving average convergence divergence indicator is displaying positive divergence signalling an impending trend reversal. Both daily and weekly relative strength indices have entered into the neutral region from the bearish zone.

Considering that the stock is reversing from significant long-term support, MACD is displaying positive divergence and the increase in daily volume we take a contrarian view on the stock from a short-term perspective. We expect it to move higher until it hits our price target of Rs 111 or Rs 114.5 in the forthcoming trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 105.

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SOURCE: HINDUBUSINESS