In an interview to CNBC-TV18, Sudarshan Sukhani of s2analytics.com, SP Tulsian of sptulsian.com and Amit Trivedi, Investworks.in give top pick for the day.
Sudarshan Sukhani of s2analytics.com
With two back to back days of declines in the Nifty sometimes it is difficult to find a stock to buy but I am trying to do that and I have found that we can consider buying Shree Renuka Sugars for today. There is some undercurrent, some buzz of sugar decontrol which may or may not happen and that news has come so many times that we can simply ignore it. But much more interesting is the chart patterns in Renuka. Renuka has not actually fallen with the Nifty. It bottomed out a few days ago and was now in a trading range. It is now breaking out of that range on the upside. So purely on charts there seems to be a suggestion that there is a relief rally at the least in Renuka coming on and we as well take advantage of that. If for some reason there is news which goes completely adversely against these stocks then ignore this suggestion otherwise go and consider buying Renuka for today.
I would suggest going short and selling Financial Technologies. It has been in a bear market of its own much before the Nifty started its own downtrend. Financial Technologies has been going down steadily and repeatedly. A small correction took place mainly with the Nifty correction, that correction was nothing, it was tepid. It fell much below the earlier highs and the stock finally cracked below that small trading zone. Consider it a trading zone or a small bearish flag. So there is significant more down trend ahead on this stock, consider selling this and if this trade works out you can also carry it towards next week.
SP Tulsian, sptulsian.com
In this weekend cracking market, Power Finance Corporation (PFC) at Rs 185 looks a good stock. It seems that the stock has bottomed out and whenever you see the positive bias building up the stock moves in one go by about 5-6 percent, the same kind of upmove can be expected this time also with an expected price target of Rs 193 to Rs 194 in this series. This share having an EPS of Rs 35 is ruling at a price to earnings (P/E) multiple of close to 5.5 times and the company having a loan book of Rs 1 lakh crore is also quite assuring. So, the stock has limited downside and upside potential of about 4.5-5 percent in this series.
Amit Trivedi, Investworks.in
Markets have corrected around 4 percent in the last two days. We have two recommendations on the long side.
Our first recommendation is on Tech Mahindra. One can buy Tech Mahindra futures at around Rs 978, place a stop-loss at around Rs 970 and aim for a target of around Rs 990-995 levels.
Our second recommendation is on Godrej Consumer Products, which one can buy at around Rs 780 levels. Place a stop-loss of around Rs 770 and aim for a target of around Rs 795 levels.