Top short-term trading picks in a choppy market

MUMBAI: The benchmarks were witnessing a choppy session with negative bias on Wednesday, in the absence of positive cues from Asian peers. According to dealers, the market is likely to remain choppy till the September F&O series expiry.

Following are the top five trading picks that stand a chance to give good returns in the short term:
Vikas Salunkhe, Technical Analyst, Nirmal Bang

1) Cummins India:

The stock has broken out of previous stop of Rs 490 and is trading above today’s moving average. Volumes have increased in last two sessions.

Buy the stock above Rs 495 with stoploss of Rs 486 for a target of Rs 510.

2) HPCL:

The short-term moving average (6/30 DMA) is cutting upward today and momentum indicator RSI and MACD are showing positive crossover on daily chart. This indicates strength in the stock. It is also showing strong signs of reversal and is holding firmly above 20-average of Bollinger band on daily chart.

Buy the stock above Rs 310 with stoploss of Rs 302 for target of Rs 325.
Shrikant Chouhan, Head Technical Research, Kotak Securities

3) Pantaloon Retail:
The stock in recent times has made good bottom formation with respect to RSI and volume. Interesting aspect has been the strength in RSI which has been on rising trend with positive divergence with price. RSI has been indicating the up trend can continue because of breakout on weekly charts of RSI value and price confirmation.

Rise in volumes at the bottom formation further strengthens the bullish view. Support for the stock is placed at Rs 180 levels. Intermediate resistance is at Rs 250 levels. On the given observations, technically the stock qualifies as a breakout candidate.

Buy 50 per cent at current levels of Rs 213 and the rest 50 per cent at Rs 180 and stop loss for trade being placed at Rs 170 on a daily closing basis for target of Rs 340 with intermediate target of Rs 250.

Birendrakumar Singh, Technical Analyst, FRR Shares & Securities

4) Cipla:

The stock has turned positive as it has broken the falling trendline. Stochastic has also turned positive from oversold zone. Volume spurt in yesterday’s session indicate some strength in the stock.

Buy the stock around Rs 369 with stoploss of Rs 364 for a target of Rs 378

5) Bajaj Finserv:
The stock gave a bullish break out of triangular pattern which was under formation for over 3 weeks. Volume during the breakout on September 24 was double than its 5-day average volume.

Buy the stock around Rs 832 with stoploss of Rs 812 for a target of Rs 870.

Disclaimer: The above report is based on technical views and information given by analysts. Please consult your financial advisor before taking any position in the stocks mentioned.