Stock Tips for July 4, 2011: Buy Biocon

Commentary

oi-Shoaib MD

By Shoaib Md

Published: Monday, July 4, 2011, 10:16 [IST]

Fitch, the global rating agency has said that the slowdown is a temporary patch and the world is marching towards recovery. With this good news at the helm, we bring you stock tips on the first working day of the week.

(Also see the recommendation on traders corner)

ICICI Direct has recommended the following stocks: Biocon, Yes Bank, Tata Chemical and Aban Offshore.

There is a buy on the stock of Biocon when it goes above Rs 364 with a target price of Rs 370 or Rs 372 and a stop loss at Rs 361.

Similarly for Yes Bank too the recommendation is to buy it above Rs 319 with a target price of Rs 324.50 or Rs 327 and a stop loss at Rs 316.

On the other hand, it has suggested to sell Tata Chemical below Rs 363 with a target price of Rs 357 or Rs 355 and a stop loss at Rs 366.

And finally it has suggested to sell Aban Offshore below Rs 514.50 with a target price of Rs 506 or 502 and a stop loss at Rs 519.

The Website, technicalanalysisofstocks, recommends to buy the stock of Gravita India. The tareget price set is Rs 368 and a stop loss will be at Rs 342. The 13 day moving average curve crossed with high volume.

Top picks of the day by Shardul Kulkarni, SeniorTechnical Analyst, Angel Broking, in Economic Times are as following.

Century Textiles: The suggestion is to buy with a target price of Rs 377 and a stop loss at Rs 355. It has formed a bullish inverse head & shoulder pattern on the daily chart. The momentum oscillators and significant rise in volumes suggest that upside movement is likely to continue. Buy on a decline up to Rs 358 for a target of Rs 377 in the coming 1-2 weeks.

PFC: The recommendation here is buy. Kulkarni suggests a target price of Rs 203 and a stop loss at Rs 182. On the daily chart, it has given a breakout from a downward sloping trend line at Rs 187.50. It has also has formed a bullish-engulfing pattern on the weekly chart. Buy this stock on a decline up to Rs 184 for a target of Rs 203 in the coming 2-3 weeks.

DCHL: Here also Kulkarni recommends to buy the stock with a target price of Rs 83.75 and stop loss at Rs 67.30. On the daily chart, the stock is facing a resistance near downward sloping trend line at Rs 72. The momentum oscillators suggest the possibility of a breakout from this resistance. Buy the stock only above Rs 72 for a target of Rs 83.75 in the coming 2-3 weeks.

Shriram Transport: The non-banking financial company too has a recommendation of buy with a target price of Rs 697and a stop loss at Rs 624. On the weekly chart, the stock has formed a bullish-engulfing pattern which indicates possibility of a positive movement. Momentum oscillators on the daily chart are positively poised. Buy this stock on a decline up to Rs 636 for a target of Rs 697 in the coming 2-3 weeks.

Aban Offshore: Here the suggestion is sell with a target price of Rs 474, and a stop loss at Rs 516. The stock is continuously trading in a lower top-lower bottom cycle. The momentum oscillators on the daily chart suggest a down move is likely to continue. We advise selling the stock only below Rs 504 for a target ofRs 474 in coming 1-2 weeks.

FirstPost have picked Divi"s Laboratories, GVK Power, Idea Cellular, India Cements, Mundra Port, CESC, Cairn, Tata Motors DVR and DRL as the 9 stocks that should be tracked today.

Your feedback is valuable to us in improving our service. Mail at [email protected]

OneIndia Money DISCLAIMER: OneIndia Money provides you with information covering shares, futures and options based on broker's reports as stated on various media. Investors are, however, warned that they should NOT take any buy or sell decision based on these views expressed in the article. Investors should consult their own financial and share advisors before taking purchase or sale decisions. OneIndia Money does not take any responsibility for any losses incurred by investors who take their cues from the above article.