Actionable ideas

Cairn India (BUY, CMP Rs212, Target Rs245)
Crude oil prices have surged significantly over the last couple of weeks. With US heading into a recession, estimates for crude oil demand growth would be toned down marginally. However, tightness in supply will continue causing the prices to remain firm. Cairn India would be a ma jor beneficiary out of this. Media reports also suggest that approval for the pipeline will be considered in this week. The company also has other prospective blocks, which are currently at exploratory stage.
New discoveries in these blocks will warrant a re-rating for the stock. Based on above rationale, we recommend a buy with a price target of Rs245.
Century Textiles (BUY, CMP Rs843, Target Rs910)
The stock is moving steadily taking support of its short term trendline. On the daily charts, the stock is attempting to form a Continuation Wedge pattern. This bullish signal indicates that the stock price may rise from the current levels. The daily RSI is well above its neutral area and MACD has seen a positive crossover. In this pattern, prices tend to edge steadily lower in a converging pattern i.e. there are lower highs and lower lows. A movement past the 850 levels could see the stock heading to minimum targets of Rs910-920 levels. Keeping in mind the above mentioned technical evidences, we recommend traders to buy the stock with a price target of Rs910 in the near term. All long positions should be protected with a stop loss of Rs815 levels.
Among the major bulk deals, UBS Securities purchased 10 lac shares of Karnataka Bank at an average price of Rs265.
Other stocks to watch out for: RIL, Kalindee Rail Nirman and Unitech.