How the 9 stocks on watch performed today

Firstpost started close coverage of stock trends by flagging off 9 stocks in the small-, mid- and large-cap segments on Tuesday. We are not recommending these shares for buying or selling, but we do offer pointers on price and performance trends. Here is our post-mortem on the first list of 9 stocks we had put out this morning.

State Bank of India: We had said the stock was forming a bearish pattern technically. SBI did disappoint the market by posting a profit of Rs 21 crore against an expectation of Rs 2,922.5 crore mainly due to higher provisioning. The stock was hammered from Rs 2,610 to Rs 2,404, down by 8.11%.

[caption id=“attachment_11238” align=“alignleft” width=“380” caption=“The Bombay Stock Exchange building at Dalal Street in Mumbai. Reuters”] [/caption]

On Coal India, we had a bullish view and said that a breakout above Rs 396.35 can take it to Rs 410. The stock did breach the previous high 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 are also bullish on Bata with a price target of Rs 500 provided the previous high of Rs 474 is breached. This level was pierced during the day and the stock touched a high of Rs 479.30. A weak market resulted in the stock closing lower at Rs 471. Though a closing above Rs 474 would have been bullish, we maintain our price target and will continue to track it closely.

We mentioned that SAIL had a high probability of breaching the Rs 150 level, which had held strong for the last four months. SAIL had attempted to penetrate this level four times and had bounced back, but today it ripped through the level and closed the day 4.6% lower at Rs 145.

We flagged Crompton Greaves as the stock was near the buying point of Rs 240 and there were rumours in the market of an acquisition. The stock did pierce the previous day’s top and touched a high of Rs 251.50. With little volume support, it came crashing down to Rs 235, but closed the day higher at Rs 241.75. We will continue tracking the stock with Rs 235 as our stop-loss price.

Glenmark was in the news for its deal with Sanofi announced on Monday. Our view was that the stock had already moved up on very high volumes and, after the initial euphoria, it did little and strayed sideways. Today, too, the stock moved sideways and saw volumes picking up during periods of fall. We maintain the stock will take some time to consolidate before it moves up despite successive upgrades by broking houses.

On Suzlon, our view was that the result was discounted, given the smart run-up before the announcement. The stock fell for the second day by 2.84% to Rs 51.35. Our target was Rs 50. However, the stock touched Rs 50.80 and bounced back a little. We continue to maintain our target of Rs 50.

Our view on JSW Steel was that the stock would fall if it breaches the Rs 908 price. The stock did breach the price level and touched a low of Rs 897, but moved up sharply to close the day near its high of Rs 925.80. Broking firms have given a positive outlook for the company.

Diamines and Chemicals announced a bonus after closing hours on Monday. As expected, the stock shot up to touch a high of Rs 90 and closed the day at Rs 87, higher by 13%.

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