Bull's Eye: Short Jet Airways, ABG Ship; buy Titan, NMDC

Published on Thu, Dec 22, 2011 at 11:19 |  Source : CNBC-TV18

Updated at Tue, Jan 03, 2012 at 20:25  

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Bull's Eye: Short Jet Airways, ABG Ship; buy Titan, NMDC

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

This week, AK Prabhakar, SP Tulsian and Ashish Kapur battle it out for top honours.

Below their top stock picks and analysis:

SP Tulsian, sptulsian.com

Buy Sesa Goa with a target of Rs 168 and keep a stoploss at Rs 160

I have a buy call on Sesa Goa with a day target of Rs 168 with stop loss of Rs 160. This stock has been witnessing value buying coupled with short covering and the present marketcap of 14,000 crore is backed by 20% stake company is owning in Cairn India which is having a present market value of 12,000 crore and hence a positive call has been taken by the market on the stock and hence a buy call.

Buy Titan Industries with a target of Rs 176 and keep a stoploss at Rs 166

I have a buy call on Titan Industries with a day target of Rs 176 with a stop loss of Rs 166. This stock is also witnessing short covering coupled with value buying as also the selling or profit booking by the large investors in the counter which we have been witnessing for last one week seems to have stopped and now it is seen by the institutional investor that stock has reached its fair value or below its fair value and hence a buy call.

Buy TVS Motor with a target of Rs 53 and keep a stoploss at Rs 49.5

I have a buy call on TVS Motor with day target of Rs 53 and stop loss of Rs 49.50. The two-wheeler sector has again come in the limelight and this stock is seen as favourite by the traders and the small investors because of its low price target and the buying interest is likely to continue in the stock in the next couple of days and hence a buy call.

Buy IndusInd Bank with a target of Rs 250 and keep a stoploss at Rs 237

I have a buy call on IndusInd Bank with a day target of Rs 250 and stop loss of Rs 237. The private sector banking stocks have again come on the focus of the investors and this stock is seen as quite undervalued and hence a buying interest is seen in the stock at the lower level and hence a positive call on the stock.

Ashish Kapur, Investshoppe

Buy Andhra Bank with a target of Rs 89 and keep a stoploss at Rs 82

My first idea of the day is a buy position on Andhra bank. Most of the public sector banks have corrected a dot. Andhra Bank has been another better performing bank for over the last couple of years thought there are concerns which will continue for some time but for investors it's a good time and even for the near-term having corrected a lot over last couple of weeks, the stock looks oversold and then can easily expect if the market sentiment remains strong one can easily expect a good pullback. For the day though we have a target of Rs 89 with a stop loss of Rs 82.

Buy NMDC with a target of Rs 157 and keep a stoploss at Rs 141

The next idea is a buy call on NMDC. This is a stock which has performed fairly over the last year-year-and-half and even if it takes time from here the return for long-term investor can be substantial, there is also dividend yield of 3% on the current price. So from all angles the stock looks very good, very attractive for long-term investor and even for the near-term having dropped down significantly over the last couple of weeks the stock is an interesting buying opportunity. For the day we have a target of Rs 157 with a stop loss at Rs 141.

Short IDFC with a target of Rs 90 and keep a stoploss at Rs 101

I have a short call on IDFC. We feel that infrastructure story is going to continue facing hurdles going forward so IDFC which has a major revenue coming from financing infrastructure projects is likely to face rough weather going forward and though the long-term fundamentals might look interesting but in the near-term the concerns would warrant a sell so for the day we have a short call on it with a target of Rs 90 and stop loss at Rs 101.

Short ABG Shipyard with a target of Rs 385 and keep a stoploss at Rs 413

My final call of the day is a short position on ABG Shipyard. The company has a huge debt which is a big negative in these markets and along with that the sector outlook also is fairly negative. The stock somehow has held out and has outperformed the broader markets but we feel that given the kind of negative fundamentals mainly due to very high debt which is carrying and a negative sector outlook the stock could face selling pressure in the near-term. For the day though we have a target of Rs 385 with a stop loss at Rs 413.

AK Prabhakar, Anand Rathi

Buy Bhushan Steel with a target of Rs 332 and keep a stoploss at Rs 303

Buy Bhushan Steel with a stop loss of Rs 303 for a target of Rs 332. The market which is going down suddenly when we see a bounce back these kind of bear market rally beaten down stock rallies faster and they give good returns in one-two days. These kinds of pullbacks are always sharp and we have to use these kinds of high beta stocks for this rally and Bhushan Steel is one stock which has shown a slight bottom formation in the last four-five days and a sharp rally is expected so with adequate stop loss we are recommending this as a buy.

Buy Escorts with a target of Rs 74 and keep a stoploss at Rs 67

Buy Escorts with a stop loss of Rs 67, target Rs 74. This is one stock which is making a higher low and the stock sustains at Rs 67 above levels Rs 74 and Rs 78 can be the target so we have this as a second buy.

Buy Sterlite Industries with a target of Rs 98 and keep a stoploss at Rs 89.5

Metal stocks are normally high beta stocks and they correct with the market, more than the market and whenever there is a rally or a pullback metals tend to react very fast and Sterlite is one stock which is showing slight strength in the metal space and in the last four days it has been moving sideways with a stop loss of Rs 89-50, target for the same will be Rs 98.

Short Jet Airways with a target of Rs 153 and keep a stoploss at Rs 178

I have a sell on Jet Airways. This is a bear market where we play for a pullback in the first three stocks so as a hedge we have a sell on Jet Airways which made 52 week low even on a day when market rallied 160 points, with a stop loss of Rs 178 downside target will be Rs 153.

  

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