Bull's Eye: Buy Titan, DLF, Magma Fin; short Essar Oil

13291 Investors following GTL. Share this News with them.

0

Like this story, share it with millions of investors on M3

Bull's Eye: Buy Titan, DLF, Magma Fin; short Essar Oil

CNBC-TV18 brings you a brand new week of Bull's Eye. It's the 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.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Markets Midday on CNBC-TV18 Watch the full show » ALSO READ See what other Experts & Brokerages are saying about GTL See messages about GTL

CNBC-TV18 brings you a brand new week of Bull's Eye. It's the 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 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, Rakesh Gandhi of LKP and Sharmila Joshi of Fairwealth Securities battle it out for top honours.

Below their top stock picks and analysis:

SP Tulsian of sptulsian.com

First call for the day is a buy call on GTL with a day target of Rs 62 and stop loss of Rs 56.70. After the debt restructuring program having approved by the bankers of the company it is learnt that company is making a preferential allotment of close to about Rs 233 crore which will also see the promoter stake rising from 29% to about 53% and this is seen quite positive by the market because loan has been restructured, promoter stake again will bounce back to 50% plus and hence ahead of this expected event buying has been seen in the stock and hence a buy call has been given.

Second call for the day is a buy call on Titan Industries with a day target of Rs 242 and stop loss of Rs 228. The Institutional delivery based buying has been seen in the stock on Friday and that has led to huge short coverings which has been piled up or have been remaining pending for quite some time. The momentum of short covering is likely to continue because the stock seems to have given a breakout which is seen positive in the time to come and hence a buy call.

Third call for the day is a short call on Essar Oil with a day target of Rs 63 and stop loss of Rs 70. The company has posted very poor numbers for Q3 with a net loss of about Rs 4,000 crore after providing for exceptional loss of about Rs 4,000 crore. But this is after not providing for the interest liability of close to about Rs 1,700 crore and if this would have been provided by the company the losses would have been at Rs 5,700 crore. So this is seen quite negative and even if we take a Year on Year performance for Q3 it is quite poor even after excluding this exceptional item and the trend for the stock is likely to remain negative in the time to come.

Fourth and last call for the day is a buy call on Lanco Infratech with a day target of Rs 24 and stop loss of Rs 22. The stock has been witnessing buying for the last three days after the company has posted satisfactory Q3 numbers but the delivery based buying has been quite huge on Friday on both the exchanges. Apart from this the company has given an indication that they will be adding 4,000 megawatt of additional power generation capacity by March 2015 mainly to take the advantage of the FSA supply as directed by the PMO which will take the total generation capacity of the company over 8,000 megawatt.