Top stock recos for today: Buy Tata Motors, Bharat Forge and Tata Elxsi

STOCK MARKET - Nifty outlook and few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher

NIFTY VIEW:
Indices are retracing from its overbought zone with RSI too showing signs of reversal. The support for the day is seen at 10,240 while resistance is seen at 10350. The significant moving average of 34WMA lies at 10,230 which should act as good support for Nifty else can drag down to 10,000-9,980 levels in the coming days.

BUY TATA MOTORS
CMP: Rs 438.20    
TARGET: Rs 475  
STOP LOSS: Rs 420
 The stock has made a new high recently and now a higher bottom formation is anticipated and we can expect a further rise with potential and strength and can scale up to 475 levels. The MACD indicator has been on the rise and is showing a positive bias and we anticipate a gain in this stock in the coming days. We recommend a buy in this stock for an upside target of 475 keeping a stop loss of 420.

BUY BHARAT FORGE    
CMP: Rs 730.75    
TARGET: Rs 800    
STOP LOSS: Rs 690
The stock has been on a good run with an upward trend and it has scaled new heights in recent times with strength and we anticipate it to continue the good run with more further upside potential in the coming days. The RSI has been on the rise and also the MACD has been showing  good positive bias in the past 2-3 weeks. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 800 keeping a stop loss of 690.

BHEL, Bharat Forge and two others announce bonus shares today

STOCK MARKET - Four companies – Bharat Forge, Bharat Heavy Electricals Limited (BHEL), Bharat Electronics and Manpasand Beverages – have announced bonus shares on Thursday.

The board of directors of Bharat Forge and Manpasand Beverages have recommended issuing bonus shares to holders of equity shares of the companies in the ratio of 1:1 i.e. one bonus equity share for every one fully paid-up equity shares held.

BHEL, the state-owned company, recommended issue of bonus shares to the members of the company by capitalisation of its free reserves in the ratio of 1 bonus equity share for every 2 existing equity shares.

BEL approved the proposal for issue of bonus shares in the ratio of 1:10 i.e. one bonus share for every 10 shares held.

Except, Manpasand Beverages (up 2% at Rs 784), the remaining three stocks BHEL (down 4% at Rs 128), BEL (down 4% at Rs 173) and Bharat Forge (down 1% at Rs 1,154) failed to cheer after bonus announcements, falling by up to 4% on BSE. On comparison, the S&P BSE was down 0.73% at 31,567 points at 02:45 pm.

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