Cochin Shipyard, GSFC, Prestige Estate: 3 stock picks from Rajesh Palviya of Axis Securities

Indian benchmark indices continued to fall on Tuesday amid feeble global cues, geopolitical concerns, volatile currency markets and profit booking ahead of RBI's monetary policy due on Friday.  BSE Sensex plunged 636.24 points, or 0.78 per cent, to settle at 80,737.51, while NSE's Nifty50 tanked 174.10 points, or 0.70 per cent to end at 24,542.50 for the day.

Select buzzing stocks including Cochin Shipyard Ltd, Prestige Estate Projects Ltd and Gujarat State Fertilizers & Chemicals Ltd (GSFC) are likely to remain under the spotlight of traders for the session today. Here is what Rajesh Palviya, SVP of Technical and Derivatives Research at Axis Securities has to say about these stocks:

Gujarat State Fertilizers & Chemicals | Buy | Target Price: Rs 230-255 | Stop Loss: Rs 198

Gujarat State Fertilizers & Chemicals has confirmed an inverse head & shoulders on the daily charts with breakout at Rs 208 levels on a closing basis, which indicates a strong comeback of bulls. This breakout is accompanied by huge volumes, which signifies increased participation. The stock is well placed above its 20, 50, 100 and 200-day SMA, which confirms bullish sentiments. On the daily chart, the stock has confirmed a trend reversal, forming a series of higher tops and bottoms. The daily, weekly and monthly strength indicator RSI is in bullish mode, which shows sustained strength. Investors should consider buying, holding, and accumulating this stock. Its expected upside is 230-255, and its downside support zone is the 203-196 levels.  

Prestige Estate Projects| Buy | Target Price: Rs 1,750-1,830 | Stop Loss: Rs 1,520

The daily price action of Prestige Estate has confirmed the 'rounding bottom' formation at Rs 1,480 levels on a closing basis. This breakout is accompanied by huge volumes, which signifies increased participation. The daily and weekly Bollinger band buy signals indicate increased momentum. The stock is sustaining above its 20-, 50, 100, and 200-day SMA, reconfirming the bullish trend. The daily and weekly strength indicators, including the RSI, are in favourable territory, indicating rising strength. Investors should consider buying, holding, and accumulating this stock. Its expected upside is Rs 1,700-1,830, and its downside support zone is the Rs 1,520-1,480 levels.  

Cochin Shipyard | Buy | Target Price: Rs 2,250-2,300 | Stop Loss: Rs 1,910

Cochin Shipyard is trending higher, forming a series of higher tops and bottoms on the daily and weekly charts, indicating positive bias. Huge volumes increment for the past 3-4 weeks signifies increased participation. On the weekly chart, the stock has decisively surpassed the consolidation range (Rs 1,915-1,200) on a closing basis, which signals bullish sentiments. The stock is sustaining above its 20-, 50, 100, and 200-day Simple Moving Averages (SMA), reconfirming the bullish trend. Investors should consider buying, holding, and accumulating this stock. Its expected upside is Rs 2,250-2,460, and its downside support zone is the Rs 1,920-1,885 levels.