High hopes for Mercator Lines, REC likely to tumble

Mercator Lines (Buy above Rs 26.65, target of Rs 28)

Mercator Lines said after market closing that it has acquired a 50 percent stake in an Indonesian coal mine. The deal is expected to be in the range of $25-30 million. The stock closed near the high of the day and can move higher.

Axis Bank (Buy above Rs 1,161, target of Rs 1,200)

Axis Bank has seen a smart move after it announced a revised deal with Enam. The stock has moved back marginally after touching its previous top. A move above this top can be sharp, as technically the stock has made a bullish pattern.

REC (Sell below Rs 185.80, target of Rs 178)

REC has seen moderate selling over the last three days, which has helped maintain the stock between Rs 185-190 levels. The stock has been closing near the low of the day. A break below this support level can bring the stock down swiftly.

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