We reiterate buy call of CESC as it was not initiated in previous trading session.
Buy CESC Limited @ 615-620 Stoploss 600 Target 660 CMP 622.65
* The stock has formed good base around its 61.8% Fibonacci Retracement level of prior up-move (Rs1125-1301).
* Positive cross-over in RSI & rise in Stochastic from its oversold zone is signaling strength in the stock, which will help it to utilize recent base formation and recover prior loss with a decent up-move.
STOCK IN FOCUS
* We believe that CIL’s current stock price has discounted decline in e-auction coal prices.
* On account of sharp decline in e-auction price, higher-thanexpected employee cost and other expenses, net profit of Coal India (CIL) fell by 77% yoy in 2QFY17. In line with our estimate, its consolidated net sales stood at Rs174
BANKNIFTY added around 17.30% of open interest as short positions. Call writing was seen at out the money strikes. We recommend doing a put bear spread as per levels given below.
BUY BANKNIFTY 18000 PE AT 108-110 & SELL 17500 PE @ 26-28, NET PREMIUM RECEIVED 82, SL 50, TARGET 150.
IRB Infrastructure Developers Ltd
IRB, after the recent slide, is now witnessing some rebound and has reached closer to resistance zone. Use this bounce to initiate fresh shorts in the given range.
Sell IRB Infrastructure Developers Ltd December Future @ 200-202 S
CESC has been holding strong and gradually inching northward despite weak market conditions, indicating its strength. Its recent consolidation is offering fresh opportunity to enter.
Buy CESC Limited @ 615-620 Stoploss 600 Target 660 CMP 620.75