Global weakness continued to haunt investors. The indices opened with a sharp gap down, but posted an impressive recovery in late trade to close with modest gains. Nifty closed at 5,118, up 13 points, while the Sensex shut shop at 17,243, up 13 points. 

“The overall short to medium-term outlook remains positive. If one is trading the future segment, I would expect more than 5,400 levels. We have been maintaining 5,070-5,080 as a key level. We saw a gap down opening. We could not sustain below those levels. So, that is definitely a good takeaway. We have seen some good volumes in the upmove that emerged intra-day.  One should hold long positions on the Nifty. Some of the leading stocks like a lot of the Reliance stocks and banking stocks may attempt a move. So, it’s a positive takeaway and one should try and attempt staying long or going long,” said Rahul Mohindar of viratechindia.com. 

Technical Analyst Rahul Mohindar of viratechindia.com is positive on RPL and Gujarat NRE Coke.

Here’s how Rahul Mohindar views the stocks on board:

On Reliance Industries and RPL:

On Reliance Industries, I would put a price target of Rs 27.50-27.80. That is the zone where Reliance Industries is moving to. So, one can look at the intermediate high coming in. That is a belt where it is likely to meet a lot of resistance.

Reliance Petroleum also looks very good. But I would not think there is too much on the table from a short-term trader point of view. I would wait for some kind of a pullback of around 4-5%, which would attract me to buy into Reliance Petroleum, but not at these levels and not exactly at the current price.  

On Gujarat NRE Coke and Praj Industries:

We have been bullish on Gujarat NRE Coke for some time. On any correction, it is worth a buy. It is definitely heading for another Rs 40-50, given a six-eight months timeframe. Even at these levels, I wouldn’t be apprehensive of buying it. From my side, any decline or even at the current price, it is worth a buy if one is willing to give it some time. It is going to take its time wise corrections and move up.

Praj Industries’ long-term formations are absolutely fantastic. But given a choice between the two, I would not really prefer going with Praj considering the kind of move we have seen here. If you are already in it, hold the stock from these levels and look at another 10-15% coming ones way for the short-term.

Disclosure:

It is safe to assume that my clients and I may have an interest in the stocks/sectors discussed.

Ashish Maheshwari of India Capital Markets is positive on Arshiya International and Micro Technology India.

Here’s how Ashish Maheshwari views the stocks on board:

On Arshiya International:

It is a key player in the logistic industry. It is an integrated logistic player and operates in four verticals. The verticals are freight and forwarding, IT, retail and logistic infrastructure.

With regards to business model, in freight and forwarding, they are having three subsidiaries.

This company has also acquired a company called Cyberlog Systems based in Singapore, with offices in Hong Kong, UAE and USA. It provides supply chain management software to the logistic industry.

It has also tied up with a US-based industry-Genco International and they plan to provide retail solutions to domestic companies. Beside this, one key trigger in this company is that they are setting up two Free Trade Warehousing Zones in Jawaharlal Nehru Port Trust (JNPT), New Delhi, and setting up container freight station and container depots also.

Going forward, I am optimistic that this company will have a CAGR growth of about 90%, if we see from 2007-2010. We also see bottomline growth of the same magnitude from FY07 to FY10.

On Micro Technology:

Micro Technology is an IT product company and they are currently operating in the circular solution business. The trigger is that they are now foraying into health care, home security and power sector. Going forward, I see a growth of around 50% in the topline as well as bottomline. This stock is available at price earning multiple of five from FY09 earnings. So, it is one of the cheapest picks in the IT space.  My price target is Rs 400.

Disclosures:

We have recommended both the stocks to our clients.