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 offers a wide array of options to retail as well as long-term investors.

Balrampur Chini is at a critical intermediate support level of Rs 62, which has worked for the last 7 years. The last time this level was tested was on 10 February just before the company announced its buyback. The set-up offers a good low risk trade with a potential target of Rs 69, provided the Friday high of Rs 63.80 is crossed.

Canara Bank has seen two block deals during the day in the Rs 522-524 range. This is also the level which has been tested four times in the last three months. Though banking as a sector has taken a beating, the stock, being close to its support level of Rs 518, offers a good trade-off with a target price of Rs 550.

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BHEL is expected to announce its results on Monday, with the market expecting a profit of Rs 2,650 crore. The company has broking firms upgrading it. However, the stock has moved sideways. On Friday, it did show signs of spurting ahead in anticipation of the results, but met with good selling volumes. The smart move by L&T over the last two days was also not replicated by the company. We think any movement below the low of Rs 2,062 can bring the stock down to the Rs 1,975 level if the results do not match the expectations.

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Cummins has been moving in a contracting range for the last two months meeting with selling pressure at the Rs 725 level. The trend is positive. A level above Rs 725 can give a 10% return, but the upward movement will be slow. The stock has also performed much better than its peers fortifying our positive bias.

One more public sector company, GAIL, is expected to announce its results on Monday. The stock has been battered in anticipation of it having to share the extra subsidy burden. However, on announcement of the news, it held its ground with aggressive short covering. The worst seems to be over for the stock as a rebound can take the stock to the Rs 450 line. However, profit numbers, much lower than the expectation of Rs 980 crore, can push the stock down.

The euphoria on Pantaloon’s results seems to have died down very fast. The stock has moved up sharply on Thursday on almost four times the average volume. However, on Friday, it could not cross the previous day’s high as additional volumes came back to their average level. A breach below Rs 255.30 can drag the stock down to Rs 240.

For the third time in two months, Patel Engineering has sprung back from the Rs 132 level. The stock closed the day at Rs 136.70 after touching a high of Rs 139.50 during the day. The stock has fallen rapidly after it announced a poor set of numbers. The fall seems to have been arrested, looking at the intra-day movement of the stock on Friday. Any upward movement above the high of Rs 139.50 can take it to the Rs 150 level.

We have been bearish on ITC as it has not been able to pierce through the selling pressure of Rs 191.80 for the eighth time in five days. The stock dived after announcement of its results, which were more or less in line with expectations. We maintain our target of Rs 180 for ITC.

Reliance Communication was our sell recommendation as we believed that with Kanimozhi’s likely arrest at that point, investors would be jittery holding on to the stock. The stock did show signs of weakness after announcement of her arrest, but it rebounded very sharply almost immediately. Technically, the stock looks very weak. We will wait for its performance on Monday to decide on an exit.

Photo courtesy: moneycontrol.com

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