The top 5 picks for the day by Shrikant Shetty, Head, Equity Advisory, Unicon Securities for Economic Times are as following.
HDFC Bank: The recommendation on this stock is to buy with a target price of Rs 2,400 with a stop loss Rs 2,220. He says, HDFC Bank has bullish engulfing candle stick on the weekly charts, with good volume support. The stock has 200-day moving average support at Rs 2,255. Weekly RSI has shown positive crossover into oversold territory, which will tend to support reversal action if it occurs.
Shriram Transport Finance Company: The recommendation on this stock is to buy with a target price of Rs 760 with a stop loss Rs Rs 680. On weekly charts, this stock has formed a bullish hammer with decent volume support on a weekly basis and the RSI and stochastics indicate positive crossover. The momentum oscillators suggest possibility of an uptrend in the short term.
Tata Motors: Here the recommendation is to sell the stock with a target price of Rs 1,065 with a stop loss Rs 1,160. Tata Motors has a bearish candle stick on daily charts with decent volume support. The stock is trading below strong support zone at Rs 1,137 and below the 200 DMA. The weekly RSI has shown negative crossover into oversold territory.
Union Bank: Here the recommendation is to sell the stock with a target price of Rs 290 with a stop loss Rs 322. On daily charts, Union Bank has been trading below the 50 DMA, and dead crossover in the short term below 320 level, which indicates negative sentiment in short-term trading. Hence, we expect the momentum to continue till Rs 290 on the downside.
Hindalco Industries: Here the recommendation is to sell the stock with a target price of Rs 160 with a stop loss Rs 198. Momentum oscillators on weekly charts suggest selling pressure below Rs 188 support zone. On weekly charts, Hindalco has been trading below short-term moving average with crossover at Rs 190, which indicates negative sentiment in short-term trading. The target price is Rs 160.
Today's pick by Firstpost to follow and keep an eye has the names of BPCL, Hotel Leela, Kotak Bank, PFC, Indian Hotel, GAIL, Pantaloon Retail, Patel Engg and ITC as the 9 stocks of the day.
Meanwhile, Share Tips recommends Sun Pharma in futures market, with the recommendation to sell below Rs 425, with a target of Rs 390 and stop loss at Rs 435.
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