Bull's Eye: Buy Educomp, HDFC Warrants; short Adani Enter

Published on Wed, Jan 04, 2012 at 11:22 |  Source : Moneycontrol.com

Updated at Wed, Jan 04, 2012 at 14:51  

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Bull's Eye: Buy Educomp, HDFC Warrants; short Adani Enter

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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 stocks ideas not just for the day, but stocks that look attractive in the medium-term as well.

This week, SP Tulsian, Nooresh Merani and Aashish Tater battle it out for top honours.

Below their top stock picks and analysis:

SP Tulsian, sptulsian.com

Buy Educomp Solutions with a target of Rs 213 and keep a stoploss at Rs 198.5

Buy Educomp with a day target of Rs 213 and stop loss of Rs 198.15. The stock seems to have come again on the radar and is seeing value buying which is also seeing the shorts getting covered and the same trend is likely to continue for the day also and hence a buy call has been given.

Buy DLF with a target of Rs 202 and keep a stoploss at Rs 188

Buy DLF with a day target of Rs 202 with a stop loss of Rs 188. The company has been seen quite aggressive in selling the stakes which they are holding in various real estate properties and it is learnt that they are on the verge of completing the sale of their hospitality portfolio which is likely to give them good amount. Thus helping the company to retire or deleverage their balance sheet and this deal is likely to get concluded by middle of January. This is resulting into the renewed buying interest in the stock which is also seeing a short covering.

Buy Delta Corp with a target of Rs 66 and keep a stoploss at Rs 60.8

Buy Delta Corp with a day target of Rs 66 and stoploss of Rs 60.80. This stock has again come on the list of the close informed circles who have been seeing buying the stock and resulting into a good delivery volume and this trend is likely to continue and it is talked that the share may again see a price of Rs 75 in the next one week or so.

Buy HDFC Warrants with a target of Rs 95 and keep a stoploss at Rs 80

Buy HDFC Warrants with a day target of Rs 95 and a stop loss of Rs 80. HDFC Warrants entitles a warrant holder to subscribe for one share of HDFC at Rs 600 in the month of August 2012. if we take the present share price of HDFC at Rs 665, Rs 666 it is resulting into a premium of mere Rs 17 which has never been the case. In fact this premium has always been ruling in the range of Rs 30-35 till a week ago. Any increase in the share price even if it is happening by Rs 10 is going to see the same increase in the warrant.

Aashish Tater, Fort Share Broking

Short Adani Enterprises with a target of Rs 270 and keep a stoploss at Rs 295

I am going short on Adani Enterprise for an intraday target of Rs 270. We feel this particular stock will dwindle to Rs 220-210 levels before anything good can happen to the stock. We have been down grading this particular stock right from Rs 500 and we still feel there will be at least 20-30% being left on to the stock. Even on yesterday's bounce back on the market the stock was unable to cross Rs 295 odd mark. This a good stock to short from today's perspective.

Buy Bharati Shipyard with a target of Rs 77 and keep a stoploss at Rs 67

We feel at current prices all the worse is already factored in to the stock. Thus Bharati Shipyard could be a good stock to take from a medium term to longer term perspective. Its subsidiary GT offshore would contribute from 2012 onwards and it would also get subsidy which would reduce its debt exposure thus creating value for shareholders. Go long on to the stock from a medium term perspective to close to Rs 130- however intraday target is around Rs 77

Buy Great Offshore with a target of Rs 79 and keep a stoploss at Rs 74

I am going long on Great Offshore. It is a technical call from our side. We feel that the stock would still be on momentum for an intraday target of close to Rs 79. One should keep a stop loss on closing basis of around Rs 74 levels.

Buy Hindustan Copper with a target of Rs 240 and keep a stoploss at Rs 212

I am going long on Hindustan Copper for an intraday target of Rs 240. One who is looking to take some high strategy can definitely look into this high beta counter because these stocks tends to give you 40-50% interim in no time because of its low liquidity. One who is interested in going long on this stock should keep a strict stop loss of Rs 212 for today's trade.

Nooresh Merani, AMSEC Research

Buy Tata Global Beverage with a target of Rs 97.5 and keep a stoploss at Rs 91

Yesterday Tata Global gave a break out above Rs 92.50 level so this confirms a breakout and possible target price of Rs 98 to Rs 104 in extreme short term. My intraday target price for the stock could be Rs 97.50 - traders may take their stock loss at Rs 91 in this trade.

Buy Sterlite Industries with a target of Rs 98 and keep a stoploss at Rs 90

My next stock call is a buy on Sterlite Industries - although the stock is in a downtrend for a very long time. if you look at the recent position the stock has made a couple of bottom in the zone of Rs 86 to Rs 89 with such a huge downfall over the last few months I would expect the stock to give a short term pullback. Last week the recent highs were around Rs 90-94. Yesterday the stock closed above Rs 94 which indicates a strong move to Rs 105 in the short term. My intraday target price for the stock could be Rs 98 and traders may keep a stop loss at Rs 90 for this trade.

Buy BHEL with a target of Rs 259 and keep a stoploss at Rs 240

Buy BHEL. The stock has been in a downward correction ever since the last one or two years. But if you look at the stock price in 2008-2009 it made a low in the band of Rs 190 to Rs 200. Recently the stock went to a low of Rs 225. That is very close to a level of 2008-2009. I think it has been over corrected over the short term and that should be a sharp pullback which could even take it to Rs 275- 300 levels. Over last week there was a high around Rs 247-248 which was crossed yesterday. This gives momentum to the stock. I would expect a short term move to Rs 260-275 after which it could follow up to Rs 300 in the medium term.

Buy Educomp Solutions with a target of Rs 210 and keep a stoploss at Rs 195

Buy Educomp. Although there are huge concerns on the long term trend of the stock because this is a stock which is trading below its 2008-2009 lows but if you look at the near term charts it is forming a small triangle which has a breakout point around Rs 204. Once that point is taken out we can expect a strong move to Rs 225-240 levels in the short term. My intraday target price for the stock would be Rs 210 and the stock being very speculative one I would keep a strict stop loss at Rs 195 for this trade.

  

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