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 will present interesting options to the retail investor and long-term investors.

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I will be tracking their performance through the market day. Today we have ABB, Cairn India, Coal India, Lupin, Crompton Greaves, , SAIL, Bata, Suzlon Energy and Jubilant Foods.

ABB has been downgraded by a number of broking houses as the company’s profit has fallen for the 11th quarter in a row. The stock, however, fell marginally for two days, post results and analyst downgrades. ABB has seen buying at the Rs 855 level. A cross above Tuesday’s high of Rs 873 can take the stock to its previous high of Rs 913.

Cairn India seems to have found support around the Rs 330-335 level. This is also the stage at which Vedanta picked up a 10.5% stake in the company from Petronas. A ministerial panel, too, has decided to meet on May 27, a full seven days after the current deadline for closing the deal expires. Despite the downgrades, the stock is holding on to this level, which happens to be the fair value price for most analysts. A move above the Tuesday high of Rs 335.75 can take the stock to the Rs 350 level as negatives seem to be getting factored in.

Lupin moved up sharply from Rs 406 to Rs 450 in three trading days on announcement of its results. The momentum seems to be slowing down, with a drop in volume despite a price jump. On Tuesday, Lupin closed near the low of the day. If it crosses below the low of Rs 441, the stock can touch the accumulation range of Rs 420.

Coal India, the largest public-listed company by market capitalisation, is reportedly in talks to pick up a 15% stake in a $600-million Australian mining JV with the US-based coal firm Peabody Energy. We have been bullish on Coal India with a target of Rs 410 provided it breaches the Rs 396.35 mark. On Tuesday, the stock did breach this level and touched a price of Rs 401.40 before closing the day lower at Rs 396.50. We maintain our price target and will continue to follow this stock.

We continue to remain bullish onBata with a price target of Rs 500. The stock touched a new high on Tuesday, but with overall markets falling, the stock closed at Rs 471 on Tuesday while touching a high of Rs 479.30 during the day. Though a closing above Rs 474 would have been bullish, we maintain our price target and will continue to track it closely.

The much-awaited SAIL follow-on offer is likely to hit the markets by the second week of June. SAIL penetrated its support level of Rs 150 held for the last four months on Tuesday after four futile attempts to pierce the level. We maintain our target of Rs 127.

We flagged Crompton Greaves as there were whispers in the market of an acquisition by the company. The news, however, has not appeared and the stock was hammered down. We continue to hold our bullish stance till the level of Rs 135 holds.

Suzlon had moved up substantially just before the announcement of its results. The stock fell the day when the results were announced, indicating profit booking. The company stock has fallen by 2.84% to Rs 51.35. We maintain our price target of Rs 50.

Jubilant Foods was among the few stocks that closed higher than the previous day. The company has seen buying on account of being included in the Morgan Stanley Capital International (MSCI) India Index. Furthermore, CLSA has made a modest update to its price target of Rs 750. The stock has been holding on to a price of Rs 670 and bouncing off that level thrice in the last four days. Our view is that a breach of Rs 712 can take the price to Rs 750.

FAIR DISCLOSURE: The author of this post and/or his immediately family have invested in the shares of (State Bank of India/Share/MF name) and the opinions above can, to that extent, be judged in that context.