5 stks that were buzzing last week & how to trade them now

ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets BSE | NSE 09/02/12 Other Stocks in this news Bajaj Hindusthan | Mercator Lines | Patni Computer Systems | Glenmark Pharma | JSW Steel | HT Media | Jindal Steel & Power |

Phani Sekhar , Fund Manager, Angel Broking, is bullish on Mercator Lines, Patni Computer Systems and Glenmark Pharma. He is bearish on Jindal Steel , Suzlon Energy, Bajaj Hindusthan, and HT Media.

Technical Analyst Sudarshan Sukhani is positive on Suzlon Energy , Bajaj Hindusthan , Mercator Lines , Patni Computer Systems and Glenmark Pharma . However, he has bearish on JSW Steel and HT Media .

Mercator Lines

Sekhar told CNBC-TV18, "The investor should clearly hold on to Mercator Lines and buy on declines for a simple reason that apart from the Baltic Dry Index recovering Mercator Lines have exposure to other segments also such as rigs, dredging and coal mining also to a limited extent. The biggest positive in favour of Mercator Lines at this point in time is trading at 0.7 times price to book and on the back of aggressive expansion that it has done in the last three years the fruits of that will be visible over the next two years or so. So, I would clearly advice the investor to stay on in this stock and it can double over the next two years."

Sukhani told CNBC-TV18, "Mercator Lines is a pure momentum driven stock. I would not sort of try to justify with fundamentals but it is a favourite of speculators. The charts are saying that higher levels are likely. I am looking at Rs 80-85 as a price target, so certainly the idea is to hold on and see how much better can this get, but it is not a long term play."

Patni Computer Systems

Sekhar told CNBC-TV18, "I would not advice the investors to add more of Patni Computer to his/her current holdings but I would certainly advice to hold on and maybe buy on steeper declines of around 20-25%. This is purely based on valuations. The basic problem with Patni was over the last three years their business model has really not stabilized. So it has actually varied from 18% net margin to a 10% net margin business, so that way it is quite difficult to say what kind of profits they are going to clock going forward."

He further added, "If one see the demand environment is improving and with the pressure especially on the currency side elevating to a great extent, I would think that this company can clock around Rs 500- 550 crore of profit based on which it is currently trading at 10-11 times, which is not very expensive considering that it is the six largest software exporter. So I would clearly advice the investor to hold on to Patni and see where it goes from here."

Sukhani told CNBC-TV18, "The investor either stays or get out slowly and steadily out of Patni. My sense is that we have seen the best of the price rallies in many midcap IT stocks and for Patni specifically a slow drift to Rs 450 or 425 is quite possible. So, I would say either stay or sell out."

Glenmark Pharma

Sekhar told CNBC-TV18, "Glenmark Pharma has been coming out of a setback on the R&D front but it is slowly and steadily seeing a recovery across all its regions and operations. It has got a strong pipeline and going forward there is a good probability that they can strike out; some very attractive outlays in license deals. So I am expecting around a 20-25% kind of upside in this stock atleast from a 6-9 month perspective, so clearly it is a good time to buy."

Sukhani told CNBC-TV18, "Stocks that slowly start going up come into my list of stocks that I want to buy and Glenmark qualifies. So I would say if you own it hold it, if you want to buy this is as good a time as any to buy. You can look at Rs 280 or 315 as short term targets, which is a pretty decent percentage gain, so it is worth buying."

Suzlon Energy

Sukhani told CNBC-TV18, "Suzlon Energy fell a lot from the highs it made four months ago. So this is a time when the long term investor should say okay I am going to take some risk and begin a process of accumulation. My call on Suzlon at current levels would be buy slowly and steadily, do not rush into large volumes but keep on adding small amounts."

Bajaj Hindusthan

Sukhani told CNBC-TV18, "Bajaj Hindusthan close at Rs 205 so what is the outlook for the next one year is the key question here. My sense is that I should see appreciation in prices, so as compared to Rs 205 I would expect higher prices in Bajaj as well as in most sugar stocks. I think the investor should hold on."