Today, we see the market opening flat to slightly positive. There may be some cooling at higher levels. On the whole, we expect some choppiness after the recent spurt
Rolta and Suzlon are two stocks that are worth taking a look at these valuations. Radico Khaitan might be a stock worth watching and keeping on the radar for the day traders as a positive announcement on the FCCB buy back front might attract some buying.
Investors might look to book some profits in metals and banking space after a bull run yesterday. The commodity story might be intact atleast for the next few weeks and there is no need to panic.
We have advised investors to book profits in Satyam around Rs 185 levels and the stock looks ripe to accumulate around Rs 135 - Rs 145 levels,if available. Hindalco is one stock that is looking to break out, and a 10 to 15 percent move from here is not ruled out.
ICSA India
We recommend a buy in ICSA India from a short-term trading perspective. It is evident from the chats of ICSA India that it was on an intermediate-term downtrend from August peak to late December 2008 low (from Rs 400 to Rs 127). However, the stock found support at this December low and reversed direction. This trend reversal has been backed by positive divergence displaying in the weekly relative strength index (RSI). A positive divergence is also noticed in daily moving average and convergence and divergence. On January 2, the stock penetrated its intermediate-term down trendline by jumping 6 per cent, accompanied with good volume. Subsequently, it breached 21-day moving average, reinforcing the bullishness. The daily RSI is rising in the neutral region towards the bullish zone and weekly RSI is on the brink of entering the neutral region from the bearish zone. We are bullish on the stock from a short-term perspective. We expect it to move up until it hits our price target of Rs 166. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 142.