Trading stocks to buy for short term gain

[Pee Vee]

Technical view: Nifty finds strong support @ 8900 with 9000 being the resistance on the upside, while Bank Nifty also finds strong support @ 20400 with 20800 acting as resistance on the upside.

Trading ideas (Time period: 1-3 days)

ASHOKLEY (Buy above Rs 91, for Target of Rs 95.5, SL at Rs 88.5) : Stock has formed a bullish morning star pattern on the daily charts after successfully taking support at the 50% Fibonacci retracement of the recent up move. Ashok Leyland also closed above its 200-DMA in yesterday's trade with credible volumes. RSI crossover on the daily chart adds to the bullish stance in the stock. We advise to Buy AshokLey above Rs 91, Stop Loss at Rs 88.5 and Target of Rs 95.5.

Derivative strategies (Time period: Till expiry)

Buy LICHFL March Future @ 566-569, Stop Loss 555 and Target 578-579.

Derivative Snippets

Markets traded with a positive bias as Auto and Banking index surged higher. With the heavy short selling of Nifty 9000PE and short covering of Nifty 9000CE, a breach of the psychological resistance of 9000 is on the cards for the first time since March 2015.

FIIs were net buyers in cash market segment to the tune of Rs 564 crore.

FII’s index future long/short ratio continues to stand above 4x since the start of this F&O series, leading to a positive bias in the markets.

Reliance Industries Limited – Call Success and Update
Reco Price: Rs 1077, Call Closure Price: Rs 1280, Revised Target: Rs 1420

We had recommended a buy on Reliance Industries Limited in an Idea 2 Act note released on September 20, 2016 for a target price of Rs 1280. The stock has surpassed our target of Rs 1280 in yesterday’s trading session yielding a return of 19% from our recommendation price of Rs 1077. Projections of the Symmetrical Triangle pattern breakout on monthly chart indicate that there is still more steam left in the stock. We advise investors to hold for an extended price target of Rs 1420 in the coming 3-6 months translating into 11% upside.

IIFL

[Aamir0889]

Respected everyone... I m new here... Currently holding umang dairies@81.. any view on it ... 3-6 months time frame... Any target if possible... Kindly share ur valuable information on it...

[Pee Vee]

Respected everyone... I m new here... Currently holding umang dairies@81.. any view on it ... 3-6 months time frame... Any target if possible... Kindly share ur valuable information on it...

Umnag Dairies is not doing well at an operational level. The quarterly results have been poor. You can consider shifting to Parag Dairies or Kwality. Both these stocks have been recommended by Porinju Veliyath as being cheap stocks in terms of valuations. You can also consider Heritage Foods in which Dolly Khanna has major stake.