recommandations

Some relief!

"The greatest weapon against stress is our
ability to choose one thought over another." -
William James


The lowering crude prices has been acting as
catalyst for Indian markets to outperform the
globe, that is the reason we saw Nifty despite
opening lower closed at days high above 5,500
levels. The trend certainly seems to be on positive
side after Nifty closed above the ‘weekly hammer’
and broader markets is likely to participate in the
rally in coming days after decent cushion for
market above 5,450 levels



Bajaj Auto (SELL, below Rs1,340, Target
Rs1,280): The recent pullback in Bajaj Auto from
the low of Rs1,306, which coincided with the lower
band of Envelope fizzled out near its 200-DMA
yesterday, as despite an intra-day high of Rs1,444,
we saw the stock closing below its Friday’s low.
Historically, the stock has several times ran into its
200-DMA line and fallen back. Moreover,
appearance of falling tops signifies the bulls
inability to form higher highs. A fall below Rs1,340
could signal a trend reversal after recent pullback.
We advise going short on Bajaj Auto June
Futures below Rs1,340 with stop loss of
Rs1,365 for target of Rs1,280.
Canara Bank (BUY, between Rs515-518,
Target Rs534): Canara Bank on the daily chart
has signaled breakout from descending triangle
with spurt in volumes. So far the stock has been
underperforming the CNX Bank Index , but
however with breakout on the line chart, the stage
is set for the stock to head towards Rs 545 in the
near term The daily RSI has been corroborating
the breakout with positive crossover and also has
been making higher tops and higher bottom. On
the weekly chart ‘a Harami Cross’ pattern was
visible which is bullish pattern on the medium term
chart. We advise buying stock in the range of
Rs515-518 with stop loss of Rs510 for Target
Rs534.
.

Strategies
 Long UCO Bank July Future in range of
Rs92-92.50 for the target price of Rs97 with a
stop loss placed at Rs90.
Lot size: 2000
Remarks: Net maximum profit of Rs10,000 and
net maximum loss of Rs5,000.
 Long PFC July Future in range of Rs183-184
for the target price of Rs193 and stop loss
placed at Rs179.
Lot size: 1000
Remarks: Net maximum profit of Rs10,000 and
net maximum loss of Rs5,000.