Bull's Eye, CNBC-TV18's popular game show, where market experts come together to dish out trading strategies for you to make your week more exciting and compete with each other to see whose portfolio is the strongest.
Remember these are midcap ideas not just for the day, but stocks that look attractive in the medium-term as well.
This week, Rajesh Agarwal, Eastern Financiers, Pankaj Jain, Sunteck Wealthmax and Parag Doctor, Keynote Capital battle it out for top honours.
Rajesh Agarwal, Eastern Financiers
Buy Dishman Pharma with a intraday stoploss of Rs 54.50 and a target of Rs 62. The company has reported strong set of numbers. Q4 net profit grew by around 37%. It has commenced production, it is in Bavla factory for vitamin D3. Currently vitamin D3 is in short supply and there are very few manufacturers across the world. The company has even taken a 50% revision in prices which is going to be shown in the coming quarters. The bottom-line would be boosted by that.
Buy Alembic Pharma with a stop loss of Rs 52 and a target of Rs 59. For FY13 the promoters have guided a Rs 100 crore capex which is going to be full by around 4th quarter FY13. FY12 the numbers were very strong, top line grew by 22% and bottom-line grew by around 52%. On valuation parameters the stock is trading at a PE of less than 6 FY13 earnings. Hence we think this company can go up to a level of Rs 85 in longer term.
Buy Andhra Pradesh Paper with a stop loss of Rs 264 and a target of Rs 290. The March quarter numbers were very strong with around 20% jump in top line and 87% jump in bottom-line. International Paper has taken a stake in this company, they hold around 75% stake and the stake was taken at around Rs 544. Any attempt by them to delist the stock can be a very big trigger for this stock because trading at around 50% valuation of their acquisition price leaves enough room for appreciation.
Buy Kalyani Steel with a target of Rs 56 and a stop loss of Rs 52. They hold iron-ore mines with excellent grade of iron-ore having 65% FE content and that’s enough for 27 years for them. The reserves are enough for 27 years. Once the clarity on mining ban is there it would be a big positive trigger for the stock. But for intraday one can buy this with a stop loss of Rs 52 and target of Rs 56.
Disclosure: I don't have holdings in any stocks discussed but may have recommended them to clients.
Pankaj Jain, Sunteck Wealthmax
Long Gulf Oil Corporation with a target of Rs 82.90 for the day, stop loss at Rs 74.25. We have seen in this stock that yesterday the volumes were very strong almost 10 times the regular volume. Apart from that the stock took support at Rs 72-73, which is 200 DMA and thereafter it broke past recent 20 and 50 DMA and it has given a very strong aggressive closing. We believe that on a short-term basis the stock would be headed towards levels closer to recent high of Rs 87.
Long Hindustan Oil Exploration Company (HOEC). Yesterday’s volumes in this stock were two times the regular volumes. We have seen that the stock after having taken support at levels closer to Rs 116 which was its 200 DMA thereafter the stock has closed above a very crucial resistance of Rs 123. Having closed above this crucial resistance, we believe that stock could be headed to levels closer to between Rs 130-136 in the next few trading sessions.
Long on Century Textiles with a stop loss at Rs 282 and target price of Rs 303 for the day. We have seen that between mid April and mid May this stock corrected by at least 25-30% and thereafter in the last 15-20 days this stock had been accumulating or sort of moving in a plateau of Rs 270-275. In last two-three days trading sessions with pretty heavy volumes of almost twice the regular volumes, we have seen this stock having moved beyond its 20 DMA of Rs 274. Yesterday it closed very close to its 200 DMA of Rs 293.
Long on Sintex Industries with a target price of 64.75. In the last 6-7 months this stock has been beaten out of shape from levels closer to Rs 150 to 50. However in the last 2-3 trading sessions we have seen some positive momentum back in the stock. There was also news that LIC has increased the stake in this company. So we believe that on short-term basis on next few days, the stock could be headed to levels of closer to between Rs 65-70.
Parag Doctor of Keynote Capital
Buy HOEC with a stop loss of Rs 119 and a target of Rs 128. HOEC has broken pass the 50 day and 200 day moving average after a long period of consolidation. The stock has broken out resistance at Rs 120 and is headed for a target of Rs 128 with a stop loss of Rs 119. The stock also saw a good open interest build-up of longs.
Buy McLeod Russel with a stop loss of Rs 284 and target of Rs 296. McLeod Russel has been consolidating and taking support at 50 day moving average for the last few weeks. The stock has broken out of the resistance around Rs 290 levels and is headed for a target of Rs 296 with the stop loss of Rs 284. The stock has been an outperformer in the current decline in the overall markets.
Sell Jain Irrigation with a stop loss of Rs 73.50 and target of Rs 68.50. Jain Irrigation is an underperformer and is in a strong downtrend. The stock has failed to participate in the rally in the broad markets. The stock is headed lower to a target of around Rs 68.50 which is where the 52 week low is with a stop loss being at Rs 73.50.
Sell Chambal Fertilisers and Chemicals with a stop loss of Rs 74 and a target of Rs 69.