FAST MONEY: Vedanta, Union Bank among 10 intraday tips for today's trade

The benchmark indices are expected to open on a flat to negative note on Tuesday after rally in Asian markets stalled as Wall Street shares lost steam, while the dollar sagged on the back of declining US yields. At 8:30 am, SGX Nifty, Nifty futures being traded on Singapore Stock Exchange, was trading at 10,426, down 6 points or 0.06 per cent.

Back home, consumer price index (CPI) or retail inflation slipped to 4.44 per cent in the month of February 2018, from 5.05 per cent in January 2018, slightly in line with analysts expectations. However, the numbers were higher compared to 3.65 per cent in the corresponding month of the previous year. 

Industrial output, meanwhile, expanded 7.5 per cent in January, up from 7.1 per cent in December. This is the third straight month that the index of industrial production (IIP) expanded by more than 7 per cent, suggesting economic activity is gaining as the effects of demonetisation and the goods and services tax (GST) fizzle out.

On Monday, investor wealth rose by Rs 1.78 lakh crore, helped by a smart rally in the stock market, where the benchmark Sensex spurted by 611 points -- its biggest single-day gain in two years. Led by the robust surge in stocks, the total market capitalisation of BSE-listed companies went up by Rs 1,78,393.67 crore to Rs 1,44,52,009 crore. The Sensex surged 610.80 points to end at 33,917.94, while Nifty quoted 10,421.40, up 194.55 points or 1.90 per cent at close.

Overseas, a mixed performance by US shares overnight cooled investor risk appetite in Asia. Investors were also focused on US inflation data due later in the day for clues on the pace of Federal Reserve interest rate rises this year. MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed by mid-morning. Japan’s Nikkei shed 0.2 per cent, with shares in steelmakers and automakers still battered by concerns about US tariffs on imported steel and aluminium. Australian shares lost 0.7 per cent , while Shanghai dipped 0.1 per cent. South Korea’s KOSPI was effectively flat.

The S&P 500 and the Dow slipped on Monday as the US tariffs signed into law last week weighed on industrials, while gains in tech stocks boosted the Nasdaq to a new record high.

Here are the key trading ideas for Tuesday's trade:

1 - (SELL) UNION BANK  

Target: Rs 89
Stoploss: Rs 94 
CMP: Rs 91.25

• Weak on technical chart
• Selling witnessed in futures trade

2 -  (BUY) HEXAWARE 

Target: Rs 385
Stoploss: Rs 375 
CMP: Rs 378

• Consistent buying in IT stocks
• The stock is trading at all-time high levels 

3 -  (BUY) RELIANCE NAVAL  

Target: Rs 36.50
Stoploss: Rs 34.75 
CMP: Rs 35.15

• Defence stocks will be in focus 
• Bharat Dynamics to launch its IPO

4 -  (SELL) ACC 

Target: Rs 1520
Stoploss: Rs 1590 
CMP: Rs 1563.45

• Selling in stock for last seven sessions 
• Support near 200-WEMA (1503)

5 - (SELL) VEDANTA 

Target: Rs 300
Stoploss: Rs 322 
CMP: Rs 316.55

• Worries over trade war re-ignited
• Tariff on steel at 25%, Aluminim at 10% in US

6 - (SELL) INDIAN BANK 

Target: Rs 275
Stoploss: Rs 285 
CMP: Rs 282

• The stock is trading higher for last six days
• Profit-booking expected 

7 - (BUY) JK PAPER 

Target: Rs 145
Stoploss: Rs 137 
CMP: Rs 139.50

• Pullback expected after four-week of consolidation 
• The stock trading above all moving averages

8 -  (SELL) DLF 

Target: Rs 211
Stoploss: Rs 221 
CMP: Rs 217

• Limited recovery in the stock despite higher trend in market
• Consolidation at 200 DEMA 
• It may test 200 DEMA (209.75) level

 9 - (BUY) RADICO KHAITAN 

Target: Rs 340
Stoploss: Rs 329 
CMP: Rs 332

• No tax on alcohol in GST Council meet positive for stock
• The stock trading higher for last 3 days; above all moving averages on daily chart

10 - (SELL) ANDHRA BANK 

Target: Rs 34
Stoploss: Rs 37 
CMP: Rs 36.30

• Heavy selling in stock on fraud reports
• Selling witnessed in futures trade; OI gains by 21%

(The stocks mentioned here are for informational purpose. Consult your financial advisor before investing.)