Stock Tips for today, July 27, 2011: Buy Mindtree

Commentary

oi-Shoaib MD

By Shoaib Md

Published: Wednesday, July 27, 2011, 8:36 [IST]

Technical Analysis helps identify the trend in a stock. Today's recommendation based on trends inlcudes some interesting names like Mindtree, berger paints, cipla and many more.

ShareTipsInfo has recommended Venky's (India) as the stock to be traded in cash intraday. Buy around Rs 6150 for the target price of Rs 640-660 and place the stop loss at Rs 608.

The website, Technicalanalsisofstocks, recommends the stock of MindTree for the target price of Rs 440 and a stop loss at Rs 394. There is a bullish breakout with very high volume.

The top picks by Amit Harchekar, CMT, IIFL Private Client Group, IIFL in Economic Times is as following.

Gujarat State Petronet: Harchekar recommends a buy on this stock for its bullish bias and the target price of Rs 112 and a stop loss Rs 101. Breakout on the weekly chart from descending trend line last week along with sustained close above 200-DMA reiterates positive trend in the stock. The bullish momentum still remains intact despite overbought position in oscillator and rally could extend towards Rs 112.

Berger Paints: Here too the recommendation is buy for its upward movement with a target price of Rs 120 and a stop loss at Rs 103. Berger has signaled a breakout from'symmetrical triangle' pattern with surge in volume activity. Such a breakout can be construed as beginning of impulse wave 5 which has potential to extend to Rs 127 in an optimistic scenario. The momentum remains bullish with no sign of any reversal.

Cipla: The pharma company has a buy recommendation because of limited downside. The target price suggested is Rs 325 and a stop loss at Rs 303. The recent decline in the stock price has landed it in multiple support zones between Rs 306-309. Volumes have been contracting during the price down ticks. With limited downside, it would be prudent to initiate long positions near Rs 308 levels.

Housing Development & Infrastructure: This stock has seen recommendtion of sell as the analysts sees a bearish bias with a target price of Rs 145 and a stop loss at Rs 155. HDIL is still in consolidation phase which is turning into 'symmetrical traingle'. Within the triangle, prices are currently in the 'd' leg of down move which is likely to end near Rs 145 in coming days. Negative crossover on weekly RSI coroborates downside momentum.

Hero Honda: The largest two wheeler company in the country has a sell recommendation wwith a downward bias. Target price is Rs 1760 and a stop loss should be placed at Rs 1840. Hero Honda has been flirting with rising resistance line at Rs 1840, which earlier acted as a solid support. A move below the Rs 1805 level would ensures swift decline to re-test the 200 DMA which is placed at Rs 1749. Short position in the stock should be initiated only below Rs 1805.

Firstpost recommends that the following stocks for today: GAIL, EKC, Reliance Power, Tata Motors, Jindal Saw, ACC, Renuka Sugar, Educomp and Pantaloons.

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