Stock Picks

Hot Stocks: 21st January, 2014 and ahead

There are some really amazing trading opportunities coming up and we are here with charts to try and identify those.

1. Reliance Communication
Reliance Communication - Daily
Rcomm, as the chart shows, is consolidating and the range is contracting. Of late, the stock has given a break above 127.5 with a decent rise in volumes and the stock seems to be gaining positive momentum. If it manages to break above 135.5 level, the stock can rally upto 140/151 levels. Stoploss for any positions taken in this stock must be at 127 for a target of 151. Those trading in futures, buy above 135.5 on spot levels with SL at 133.9 for a target of 140.

2. Torrent Power
Torrent Power - Daily
Buy above 112.5, SL: 108, TGT: 122-130. The stock had seen a good rise from 65 to 130 (100%) and then has corrected quite a bit.

3. ITC
ITC - Daily
ITC as shown in the chart looks set for a breakout which can fire it up to 350 levels. BUY above 331, SL: 323, TGT: 347-350 (Short Term). It can give even larger moves to 380 levels in 2-3 months from now.

4. HUL
Hindustan Unilever - Daily
Another FMCG giant looks ready for a breakout. Above 560, HUL will look to touch 590-595 levels. SL: 550 (Closing, 545 for Intraday).

5. Punjab National Bank
Punjab National Bank
The stock is near crucial supports at 580. On the bearish side, if 598 breaks then we can see a slide till 590 which is a strong short term support as indicated by the green line and a medium term support as indicated by the lower blue line of the up channel. Also, the 50DMA at 582 levels must give the stock some bonce. On the upside, the 610 level is a short term resistance as shown by the red line. Once the stock breaks above this levels, we can see a rally till 630-650-680 levels. If 580 breaks, then the stock can correct till 555 and 520 levels.

NMDC is forming a triangle with higher lows and same highs as seen between the red and green lines. The momentum indicator is showing a negative diversion which indicates some correction on the cards. The last time we had a similar diversion, the stock corrected from 146.5 levels to 123 levels. The support for the stock is at 139 and resistance at 147 levels. If the stock manages to break either of the range with a spurt in volumes, we could see sharp moves coming.

7. Wipro
Wipro - Daily
Post results, Wipro has shown a good rise and breakout with heavy volumes which suggests that the stock is nowhere near a top. The stock can be added on small dips to the portfolio with SL at 550 on losing basis for targets of 600+ Above 575 the stock can see 2-3 strong sessions.
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