TRADING RECOMMENDATIONS For 2nd June.

Petronet LNG Ltd. CMP— Rs142.20
We recommend going long in this counter at current levels.

Technical Outlook:-
The share price movement of Petronet has registered a breakout from an upward sloping trend line and has closed at its all time high. This breakout has occurred with an increase in trading volume validating the said breakout. The momentum indicators of the stock are also in strong buy mode and the stock is also trading above all of its key moving averages which is also a sign of strength in the counter. We believe that the share price could test the levels of  Rs 148 / Rs 151 in the near future Traders can look to buy at current levels with a stop placed below  Rs 138.40.

Suggested Trading Strategy:-
We recommend traders to buy between Rs 142.50—Rs 141 levels with a stop loss placed below Rs 136.40 levels for targets of Rs 146 – Rs 150 levels, expected to be achieved over the coming 3 sessions

TRADING RECOMMENDATIONS For 1st June.

Essar Oil Ltd. CMP— Rs 131.30  We recommend going long in this counter at current levels.

Technical Outlook:-
The most important observation to be made on the weekly charts of Essar Oil Ltd. is that the share price action of the stock since 19th Nov, 2010 has taken the shape of an inverted Head and shoulders pattern. We would like to point out that this price pattern is one of the most acclaimed bullish reversal price patterns and has positive implications on the share movements of a stock.

Yesterday’s close has also taken the stock above its key long term moving average. The RSI indicator of the stock has also given a buy signal.

Suggested Trading Strategy:-
We recommend traders to buy between Rs 130—Rs 131.50 levels with a stop loss placed below Rs 126.40 levels for targets of Rs 135 – Rs 138 levels, expected to be achieved over the coming 3-4 sessions.

TRADING RECOMMENDATIONS For 31st May

GMDC Ltd. CMP— Rs 145.30
We recommend going long in this counter at current levels.

Technical Outlook:-
The share price of GMDC has registered a breakout from its resistance levels of Rs 145. The overall technical setup remains positive.
We believe that the share price could enjoy good upside momentum in the short term and test levels of Rs 151- Rs 153. The stock is also sustaining above its near term and short term moving average clusters which is also a sign of strength in the counter. The momentum indicators of the stock are also in buy mode.

Suggested Trading Strategy:-
We recommend traders to buy 50% now and again in the range of Rs 143 – Rs 144 levels with a stop loss placed below Rs 141.40 levels for targets of Rs 150 – Rs 155 levels, expected to be achieved over the coming 3-4 sessions.