In an interview to CNBC-TV18, Sudarshan Sukhani of s2analytics.com, SP Tulsian of sptulsian.com and Amit Trivedi, Fin Stream Financial Advisors give top pick for the day
Sudarshan Sukhani of s2analytics.com
We have a broad theme in this market which is that the top class IT stocks are performing very well. We have had buy signals on Infosys, Wipro and for today I would suggest that Tech Mahindra should be considered for buying for going long as a short-term strategy.
Tech Mahindra had a trading range and a sharp rally. It is now pausing and consolidating while moving at those higher levels. I would assume that sooner or later may be today itself it would then start a new breakout too because not only are technology stocks moving up but also its associate Mahindra Satyam is in a very nice up trending mode. So Tech Mahindra is a buying opportunity. As usual keep a protective stop in case the markets themselves don’t work out well but this stock can outperform.
Market is choppy but my own sense is that it is possible for stocks to have two different ways, up and down both. Some stocks could go up and some down. A stock that I think is continuously moving down and looks as a shorting candidate, selling candidate for today is Jaiprakash Associates. It has broken down from a final support level at Rs 69 where it was floating around for a few days and I suggest that a downside target of Rs 65-66 could easily be coming in. It is a weak stock. Even in a slightly subdued market it becomes an excellent short selling idea.
SP Tulsian, sptulsian.com
I am recommending a buy call on Bajaj Finserv because this is the flagship holding company of Rahul Bajaj Group, which is controlling 76 percent in Bajaj Allianz Life Insurance and Bajaj Allianz General Insurance. Apart from that, the company is also holding 62 percent stake in Bajaj Finance. If we go by the expected financial performance for FY13, the company should be able to post an earnings per share (EPS) of close to Rs 115 and in fact this has seen as a strong contender for banking license. This theme is going to be played by the market in next couple of days as well and maybe ahead of the Budget, banking and finance stocks will remain in focus and this stock will be seen a beneficiary and a gain of about Rs 50 or so can be expected in the share price in next three-four days.
Amit Trivedi, Fin Stream Financial Advisors
Given the way market is behaving, we have two recommendations on the short side for today. One is on National Mineral Development Corporation (NMDC). It has been falling from around Rs 150-155 levels down to around Rs 142 levels because of poor Q3 numbers and expectation of rate cost increase in today’s Rail Budget. We think traders can sell NMDC futures at around Rs 143-144 levels for a target of around Rs 138. We can place a stop loss at around Rs 147.
The other stock that we have on the short side is Reliance Infrastructure. Again because of Rail Budget there could be cost increases, which should be negative for the infrastructure segment. Also, Budget is not expected to be anything positive for these stocks. So, one can sell Reliance Infrastructure at around Rs 475-480 levels for a potential target of around Rs 460. One can put a stop loss at around Rs 488 in this particular stock.