Bull's Eye: Buy RComm, Sun Pharma; short Jet Airways, Bata

Published on Tue, Dec 27, 2011 at 11:20 |  Source : CNBC-TV18

Updated at Tue, Jan 03, 2012 at 20:23  

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Bull's Eye: Buy RComm, Sun Pharma; short Jet Airways, Bata

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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, Aashish Tater, Jagannadham Thununguntla and Sharmila Joshi battle it out for top honours.

Below their top stock picks and analysis:

Aashish Tater, Fort Share Broking

Buy Amar Remedies with a target of Rs 139 and keep a stoploss at Rs 124

Amar Remedies is a stock where we feel there is some momentum on upside left. We have cut down on our target of Rs 200 to Rs 178 looking at market conditions. One can go long on this stock for intraday basis for a target of Rs 139. However from medium-term perspective for that Rs 178 target, one should keep a strict stop loss of Rs 116. we have recommended the same strategy that if Rs 116 on closing basis is broken it is better to sell off this particular stock because then the stock would technically come back to that Rs 80-85 levels where we are really comfortable investing into this particular stock from longer-term point of view.

Buy GMR Infra with a target of Rs 21.5 and keep a stoploss at Rs 19.6

It is a technical-cum-fundamental call from a longer-term perspective is GMR Infra. I am buying for a target of Rs 21.50 This particular stock after long tie has closed about Rs 20 mark and we feel there will be some momentum upside from next 2-3 days perspective. So, one can take a 5-6% jump on this particular stock on immediate basis.

Short Bata with a target of Rs 500 and keep a stoploss at Rs 568

The third stock is a rollover from yesterday's trade; I am shorting Bata India for an intraday target of close to Rs 500. We have a very modest target of less than Rs 450 from next 12 months perspective and technically the stock is weakened. One who is shorting this particular stock, should be comfortable in shorting this around Rs 570-550 mark with a closing stop of Rs 620.

Buy Gujarat Fluorochemicals with a target of Rs 411 and keep a stoploss at Rs 386

I am going long on Gujarat Fluoro for an intraday target of Rs 411. The technical trend is on upside and we feel Gujarat Fluoro will still ride the momentum and would achieve an intraday target of Rs 411.

Jagannadham Thununguntla, SMC Global

Buy Reliance Communications with a target of Rs 82 and keep a stoploss at Rs 67

Buy Reliance Communications with a day target price of Rs 82. The stock has been languishing for almost two years with a heavy debt burden. Now the move that maybe there is tie up between RIL and RComm and probably a settlement between brothers can help the stock seeing upside. The stock is selected with a day target price of Rs 82. Once the tie up with Reliance comes probably the debt burden of RComm can go away.

Buy Reliance Infrastructure with a target of Rs 433 and keep a stoploss at Rs 356

Buy Reliance Infrastructure with day target price of Rs 433. The positive effect of that tie up between brothers may show up on the stock. The stock is selected with day target price of Rs 433 and even in this company Anil Ambani has been consistently accumulating shares at a every low level.

Buy Indraprastha Gas with a target of Rs 389.3 and keep a stoploss at Rs 366

Buy Indraprastha Gas (IGL) with day target price of Rs 389.30. As there is an indication that CNG will be increased by Rs 2 per kg because of the devaluation of rupee. This should give some relief for IGL for recovering some of the under recoveries.

Short Jet Airways with a target of Rs 172 and keep a stoploss at Rs 191

Sell Jet Airways with a day target price of Rs 172. With the ongoing problems of the aviation industry and Jet Airways and considering the Income tax notices to the promoter and to the company can play on the stock negatively. The stock is selected with a day target price of Rs 172 on the short side.

Sharmila Joshi, Fairwealth Securities

Buy Escorts with a target of Rs 72 and keep a stoploss at Rs 69

Buy Escorts with a target of Rs 72 a stop loss at Rs 69. We saw in the last quarter that Escorts numbers were hit by rise in raw materials but going ahead the kind of steps that the company has taken, with the products it has introduced as well as price cuts etc will see escorts do much better. Their agri machineary for instance the revenue contribution from that will increase. So I do see the stock going back to Rs 95, so a stock that I buy for a day with a target of Rs 72.

Buy Voltas with a target of Rs 83.5 and keep a stoploss at Rs 80.2

The second stock is Voltas which didn't do too well in Q2; I buy with a target of Rs 83.50 and a stop loss at Rs 82.80. As we see buying return into capital goods, I think Voltas is a much better place than some of the other stocks. We did see bad numbers from them largely because some of the projects in Qatar got postponed or delayed but I think those things will soon come back on track and the stock has corrected to one-third of what it is so I think better days are ahead for Voltas.

Buy Hindustan Zinc with a target of Rs 127.25 and keep a stoploss at Rs 122

I think the metal space is looking interesting and I like the Hindustan Zinc where they have captive assets as well as where the commodity prices affect the profitability very quickly. So stocks like Sterlite, Hindustan Zinc etc. Hindustan Zinc is tad better than Sterlite at this point so this I buy with a target of Rs 127.25 and stop loss at Rs 122.

Buy Sun Pharma with a target of Rs 517 and keep a stoploss at Rs 496

Buy Sun Pharma with target of Rs 517 stop loss of Rs 496. This I would buy because they have got US nod along with the generic Precedex, so unused based kind of an idea and just to have a defensive in the portfolio.

  

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