SHORT-TERM TRADING TIPS : Ceat (Rs 104.9) - Buy

According to Hindu Businessline Stock tips, Investors with short-term perspective can consider buying the stock of Ceat. It is seen from the charts of the stock that after peaking out in September 2010, it started to decline. In January 2011, the stock conclusively penetrated its key support and was on a medium-term downtrend until it found support in the range between Rs 85 and 90 in early February. However, the stock changed direction subsequently and has been on a short-term uptrend since then.

The stock jumped almost eight per cent accompanied by heavy volumes on Monday, reinforcing its short-term uptrend. Moreover, the stock has breached its 21-day moving average showing initial signs of bullishness. Daily relative strength index is about to enter the bullish zone from the neutral region and weekly RSI is on the verge of entering the neutral region from the bearish zone. The daily price rate of change indicator has entered the positive territory implying buying interest. We are bullish on the stock from short-term perspective.

We expect the stock to rally further until it hits our price target of Rs 108.5 or Rs 112 in the forthcoming trading session. Short-term perspective traders can buy the stock with stop-loss at Rs 102 levels.

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EMKAY RECOMMENDS: Accumulate Hexaware Tech; target of Rs 66

Emkay Global Financial Services is bullish on Hexaware Tech and has recommended accumulate rating on the stock with a target of Rs 66 in its March 11, 2011 research report.

“Hexaware, like other mid tier peers, bore the brunt of downturn during late FY09/early FY10 as its historical policy of a horizontal led sales strategy adversely impacted its revenues (-18% in FY10). However, Hexaware used the downturn to address its inherent weaknesses by hiring senior talent, revamping the entire management team as well adopting a vertical led sales approach. Hexaware’s ability to survive vendor consolidation exercises at several clients has driven strong revenue growth in the past 3 quarters (13%, 11%, 9% q-o-q) as clients reverted to normal spending levels.”

“We expect revenue momentum to sustain through FY12/13 driving an improvement in operating margins ahead Operating margins have already improved by ~500 bps in the last 2 quarters after a steep fall over Sep’09-June’10. We forecast a 25% US$ revenue CAGR, driving a 52% EBITDA CAGR over FY11-13E. Despite a step up increase in tax rate to 20%/22% in FY12/13 (V/s 10% in FY11), we estimate a 50% profits CAGR over FY11-13E, with further help from a favorable hedging V/s significant forex losses over nearly 3 years. We believe that the company’s FY12 revenue guidance of USD 290 mn (+25% YoY) could err on conservative side, given the strong momentum evident in the past few quarters. We estimate 30%+ revenue growth for FY12 as we expect pickup in discretionary spending to fuel Enterprise Services revenues.”

“Hexaware like most other mid tier peers has had a chequered past in the form of (1) forex hedging mishaps and (2) flip flops on guidance policy (along with misses in between). However, valuations at ~9.7xFY12E/8.3xFY13E earnings are attractive, given the imminent uptick in financial performance. Initiate coverage with ACCUMULATE rating and a TP of Rs 66,” says Emkay Global Financial Services research report.

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SOURCE: moneycontrol.com

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