Experts spot attractive picks in current markets

Excerpts from Bazaar on CNBC-TV18 Watch the full show »

At 11:03 am, the Sensex was up 40.56 points at 9430.70. The Nifty was up 8.60 points at 2844.55 and the CNX Midcap Index was up 38.35 points at 4095.05.

Ambareesh Baliga of Karvy Stock Broking says, "We still remain positive on the markets. But they will remain flat this week, and then rally ahead during results. Markets will also have a pre-Budget rally. Our target of 10,000 level for the Sensex could be reached by January-end or definitely by mid-February."

He adds that, January is a month of the midcaps as MFs are putting in money into them.

Technical analyst, Rajat K Bose says, "If history is any indication, then atleast in the first ten days of January there is a probability for an upside breakout. After that, with the Infosys results around the corner, the market might react. I would bet on the longside expecting an upside breakout."

He adds that, if the Nifty crosses 2845 to about 2850 range, since this is the range where most of the supply is coming, and if this range is crossed decisively then the high of 2857 would also be crossed. The next target is between 2890-2910 level for the Nifty, says Bose.

Analysts dig out few stocks that can be looked at, in the current market.

Rajat K Bose gives his picks:

Tata Chemicals:

Tata Chemicals is having a good run, infact it is on an uptrend for sometime. Its yesterday’s good run may continue today as well. But Tata Chemicals will face a strong resistance around Rs 255 level, and once that resistance is reached, I expect some profit booking.

Hindalco:

Hindalco looks good in the medium-term, if it manages to maintain above Rs 145-148 range then we can see Hindalco going up much further. That is a crucial level, and it has to stay above that range for a couple of consecutive sessions to show some good potential.

Nagarjuna Construction:

Nagarjuna Construction has had a good move already in the last couple of trading sessions and today also it is notching up gains. So I see some resistance coming in around Rs 300 levels. The midcap space is where a lot of action is taking place.

Top trading calls for the day:

Orchid Chemicals and Sabero Organics look good, apart from that I like IVRCL Infrastructure which is likely to do very well. My targets for it are at Rs 779 and Rs 800 levels, and it is showing a breakout. SRF might also show some good movement during the day.

Gem and jewellery:

Goldiam International caught my eye in the gems and jewellery space. That stock has moved up very strongly in the recent past from a much lower level of around Rs 70 to about Rs 100 plus level. Also Su-raj Diamonds and Shrenuj look good, but entering these stocks right now could be a bit dicey, because the run appears to be almost vertical and this kind of a run-up is generally followed by some kind of consolidation. So I would expect these stocks to actually come down a bit, consolidate and then move up. I do not see much of an upside in it immediately.

Midday Multimedia:

Midday Multimedia has shown a breakout yesterday, and today if it manages to stay above Rs 106 then the next target would be about Rs 115-117 which is a crutial resistance area. Most likely that was the 52-week high. So if Midday crosses Rs 106 and stays above Rs 106 then we can expect Midday to touch Rs 115-117. Beyond that from a medium to long-term perspective the chart is looking pretty positive. One can expect higher levels of around Rs 135-140 over the medium-term.

Dena Bank:

Dena Bank's move yesterday was pretty much positive. I would say that if I were in the investors shoes I would put a stop loss below Rs 30.5 level, and stay invested in Dena Bank because I am looking at a price level somewhere between Rs 39-43.

Amabreesh Baliga gives his picks:

Auto:

As far as the LCVs are concerned, Ashok Leyland and Telco , will still see some more upward movement, and will possibly give another 20-25% return from here, especially Ashok Leyland where infact we see a price of around Rs 40. As far as Mahindra and Mahindra and Punjab Tractors is concerned, both these looks positive. For Maruti, the last trigger will be disinvestments, at those levels one should be exiting Maruti.

By-Sakshi Sharma