Sell Cadila if it goes beyond 700: Shardul Kulkarni

Shardul Kulkarni, Sr. Technical Analyst, Angel Broking

Have you taken a look at Hanung Toys?

Shardul Kulkarni: Yes, one of the very strong counters in terms of volumes, especially if you see yesterday's volumes, they were at all-time high volumes. I would say that in the channel pattern, the stock has reached the upper end of the channel, so I would expect some sort of consolidation going forward in this particular counter, probably a dip up to 155-150 levels is possible in Hanung Toys. But overall, the medium-term charts are strong, it is a buy on dips rather than at current levels.

Any of the stocks that you would probably just buy for a quick buck and sell tomorrow morning?

Shardul Kulkarni: I would say the other way round, sell today and buy tomorrow. So the idea that I have is Tata Steel, you can actually sell the stock on a bounce probably or at current levels also between 605-610. We expect the stock to move downwards to around 580 levels going forward but yes, tomorrow we expect this stock to be negative. The stop loss for this trade would be at around 631 levels.

So at 611, short Tata Steel for tomorrow morning a bit of a gap down?

Shardul Kulkarni: Yes, I would agree to that. 611 is a good time to short Tata Steel.

How about the mid-cap pharma space? We were looking at some big moves in Cadila Healthcare. Is that still holding out?

Shardul Kulkarni: Pharma as a space is one wherein we have always recommended in the past three months that you should trail your stop losses. The idea being that there is negative divergence in these charts. We repeatedly see that yes, a fall if it comes will be a very strong fall, so we would say that it would be good enough to trail your stop losses in most of these counters. For Cadila, specifically, I would say that the stop loss for your trade should be at around Rs. 700. If the stock goes beyond 700, I would sell the stock and move out of the counter.