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SKS MICROFINANCE: BUY
STOP LOSS: Rs498
TARGET: Rs 530
It has been making higher highs – higher lows from last four weeks and crossed the hurdle of 490-495 levels. It is holding the gains above its 50 DMA and is trading in momentum even after sharp decline being witnessed in the broader market. One can buy the stock with stop loss of Rs 498 for the upside target of Rs 530 levels.
ASHOK LEYLAND: BUY
STOP LOSS: Rs 86
TARGET: Rs 93.5
It has managed to hold its long term positive stance even after selling pressure in the broader market. It is taking support at its 50 DMA and it has a tendency of turning from its support levels. It is holding above its previous hurdle of 91 levels. One can buy the stock with stop loss of Rs 86 for the upside target of Rs 93.50 levels.
BHEL: SELL
STOP LOSS: Rs 158
TARGET: Rs 149
It is continuously is in bear grip and not giving any meaningful sign of recovery. It broke its support of 164 levels and hit its fresh 52 week low levels. It has been making lower top – lower bottom formation on daily, weekly and monthly chart and fresh Call writing at higher strike also support our negative view on the counter. One can sell the stock with stop loss of Rs 158 for the downside target of Rs 149 levels.
PNB : SELL
STOP LOSS: Rs 109
TARGET: Rs 100
It is continuously falling down from the last three weeks. In the last series it had added open interest by more than 65 percent with a price decline of around 17 percent. Short rollovers are also happening in the counter and it is continuously hitting new 52-week low. Overall trend is negative as sustained selling pressure is being witnessed in the stock at every attempt to bounce back. So, this weakness may continue in the counter. One can sell the stock with stop loss of Rs 109 for the downside target of Rs 100 levels.
Disclaimer : We are suggesting all these stocks to our clients but no personal holdings.
Chandan Taparia is a technical analyst with Anand Rathi Retail Research
