Bull's Eye: Buy SKS Micro, Unitech; short Dena Bank

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

This week, SP Tulsian of sptulsian.com, Ashish Tater of Fort Share Broking and Saurabh Mittal of Swadeshi Credits battle it out for top honours.

Below their top stock picks and analysis:

SP Tulsian of sptulsian.com

My first call for the day is a buy call on NMDC with a day target of Rs 162 and stoploss of Rs 154. Infact if you see the budget, lot of hopes have been given to the mining sector in terms of the reduction in custom duties and import duty on many of the equipments. Apart from that the iron and the steel industry has also given the benefits in the form of the sops to the pelletization plant and beneficiation plants and that is going to see good offtake in demand for iron ore which is mined by this company and hence a positive call has been given.

Second call for the day is again a buy call on SKS Microfinance with day target of Rs 149 and stop loss of Rs 139. The budget presented by the Finance Minister on Friday has indicated that microfinance bill will be tabled in this session of parliament and that is going to give a very big relief to the company, which may see the cancellation of the ordinance or the bill having brought by the Andhra Pradesh government which has been creating a big problem for the company. Apart from that the SIDBI has been given 5,000 crore entitlement for tax free bonds will also see large part of that fund flowing in to the microfinance industry, which will be seen positive for the company in terms of fund mobilization or for rediscounting of their books.

Third call for the day is a sell call on Cairn India with a day target of Rs 332 with stop loss of Rs 349. The budget has increased the Cess on crude oil from 2,500 per metric tonne to 4,500 per metric tonne which is going to be seem very negative for the company because company is on the verge of increasing their food production from 1,25,000 barrel to about 2 lakh barrels in the next six months or so. This will significantly dent the profitability because these amounts to the lower realization buy about USD 6 per barrel for the crude oil produced by the company.

Fourth call for the day is a short call on Dena Bank with a day target of Rs 86.50 with a stop loss of Rs 91. Infact all the midcap PSU banking stocks have been seeing a negative view and that resulting into the huge profit booking and long liquidation seen happening. This trend is likely to continue and this stock is looking weak amongst the lot and hence a sell call.