Dilip Bang recommends 5 stocks for invesment this week

A number of undervalued stocks corrected substantially on the bourses in the fortnight gone by.

The Indian rupee too appreciated on the back of a depreciating dollar and huge foreign inflows into the Indian markets during this period.

Further, the previous fortnight also saw several corporates releasing their quarterly earnings results.

Although the results were in line with expectations, industry experts are hoping that the next quarter results will be better than the current one, for certain sectors.

Globally, the US economy has been showing consistent improvement. The deal with private lenders to clear off Greece’s debt is likely to be finalized soon.

Chinese PM Wen Jiabao recently said that China is considering deeper involvement in the Euro zone’s bailout funds. Further, the new treaty between 27 nations from the Euro zone is under negotiation.

In the coming fortnight, markets look good on declines around the 5,100 - 5,200 levels. If the Nifty goes above the 5,450 level, it may go up to the 5,700 level, thereafter.

Market participants can look at investing in the sugar sector, especially Balrampur Chini Mills Ltd and Shree Renuka Sugars Ltd .

Among other stocks, Hindustan Zinc Ltd (at current levels), Atlas Cycles (Haryana) Ltd (around the Rs 320 level), Ajanta Pharma Ltd (around the Rs 280 level), Bajaj Finance Ltd (around the Rs 750 level) and Sterlite Industries (India) Ltd (around the Rs 110 – Rs 115 levels), can be considered from an investment perspective by them.

In the next fortnight, traders and investors can expect lower inflation numbers for the month of January, which could result in the RBI opting for rate cuts in the coming monetary policy review.

However, IIP numbers are likely to be lower than the previous figure due to the previous year’s base effect.

Source: Nirmal Bang's Beyond Market

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