9 stocks to watch out for today

The 9 stocks below are the picks for the day across small-, mid- and large-cap companies that offer a wide array of choices to retail as well as long-term investors.

M&M had spooked the market with its fourth quarter numbers, which saw the stock falling from the Rs 700 level to Rs 648 in a day. The stock has since corrected sharply to Rs 683 where it again met with some selling pressure. The poor set of auto numbers is likely to impact the stock again. We would like to re-initiate sell on the stock below Rs 672 with a target of Rs 640.

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Hindalco’s consolidated numbers were better than market expectations, which saw the stock bouncing back strongly. It has, however, met with some selling squeeze at around the Rs 200 range. Selling seems to have dried up, given the closing prices of the stock over the last two days and the narrow trading range. A move above the Rs 200 range, which has been tested four times in as many days, can take the stock to the Rs 210 mark.

Aurobindo Pharma has been in the news lately for all the wrong reasons. The stock has been hit by warnings on its manufacturing practices from the US authorities. Our buy call above Rs 165.30 on Friday with a target price of Rs 180 was achieved on Wednesday. The chart has, however, closed near the low of the day on good volumes, signalling profit booking. We would like to initiate a sell call on the stock below Rs 174.55 with a target of Rs 160.

For the fourth quarter of FY11, Aban Offshore posted numbers that went way beyond market expectations. The stock did react positively, though tentatively. Aban touched its resistance area of Rs 600 and faced selling pressure which resulted in the stock touching a low of Rs 588 and closing near it. The stock can slide slowly to the Rs 550 level below Wednesday’s low.

Cipla was our sell call given on Tuesday below Rs 325, which just got triggered and the stock moved higher to close the day at Rs 327.25. Though the stock moved higher, the volume turned lower. We continue to remain negative with a target of Rs 310.

Our sell call on Tuesday for Kotak Bank did not get initiated as the stock moved up, though on a lower volume. The stock continues to look weak and can come down to the Rs 425 level provided Rs 439, the low of Wednesday, is breached.

Nalco, which too was a sell call, was not triggered on Tuesday. A moderate increase with a lower volume prevents us from changing our negative stand on the company. We maintain our sell target of Rs 85 with an entry price below Rs 91.55.

Educomp has been triggered on the short side. We maintain our sell target on the company with a price target of Rs 440. The stock hit a low of Rs 454.50 after being activated at Rs 470.

We were triggered onPFC above Rs 201 on Monday. The stock ended the day near the high of Rs 204.5. We think the sharp rise that we expected from the company is unlikely and thus, scale down the target to Rs 210. We move our stop loss to our entry price of Rs 201.

Charts: moneycontrol.com

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