Stock Picks

August 2013 Stock Picks


We are bearish on Jindal Steel and are holing 210 puts. The stock is being hammered continuously for past few months and a bottom doesn't seem to be forming yet with fresh weakness being seen. Despite week markets, the stock is seeing some upward movement and is approaching it's 20DMA. Fresh shorts can be initiated in the stock with a SL of 214 for targets of 187-190 zone and below that further downside till 175.

Metal and Mining stocks seem to be Bear's favourites this season. We have constantly been advicing on shorts in NMDC and the stock keeps drifting lower.We maintain our bearish view. SL for shorts is at 105, targets are 90 and below. The stock will be more weak once it close below 99. Any rallies can be used to add positions in PUTS.

Tata Motors
As shared in our August month view for the market, the auto index is expected to see sharp movements on either side after getting squeezed between it's moving averages. Tata Motor's looks ready for a movement too! Currently trading in a consolidating triangle, the stock is showing weakness and could fall to 270 levels. If 270 breaks then downside till 245-250 opens. Puts of 260-270 strikes can be bought and SL should be a close above 300.

4. KPIT Cummins
KPIT Cummins
A low risk cash play with good volumes, BUY KPIT with a SL at 127 (Closing) and hold for 1-2 months for targets of 145-150/160+

With a SL of close above 300, SELL Cairn with Target of 275 and below. Safest way to earn is BUY 280PE which is in the range of 4-5.

Crompton looks ready for fresh selling below 84.5, SL 88(Close) for targets 72 and below. If however, it breaks 90, the targets are 96,102.

At 870 levels, we had posted on facebook that Lupin could be heading to 810 and below levels after forming a top. The stock is now at 840 and we still maintain our bearish view on Lupin for targets of 810 and below.
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