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Pankaj Jain of Sunteck Wealthmax
Amtek Auto is my first long call. Basically what we have been seeing for last couple of days, we have seen stronger accumulation in good quality auto ancillary stocks and Amtek Auto is one of them. The kind of dispatches we have seen in automobile numbers, Amtek Auto being one of the front running supplier to Maruti and even the results working of the company has been improving. What we see in today’s trading that inspite of the kind of choppiness we had seen in the market Amtek Auto was holding ground and it closed 1% higher. Recently we have seen the stock moving beyond 200 DMA and it has been moving up in small phases, small later leg phases. We believe that this momentum could continue.
My second call for the day is again a buy call on JK Lakshmi Cement . We feel that cement sector as such would be one of the outperforming sectors for 2012. JK Lakshmi is another good midcap cement component and we saw yesterday that the stock was holding ground at levels closer to Rs 60; it was like rocket was standing. We believe that the stock having moved beyond 20 DMA yesterday, could continue the momentum and could again search the recent highs of closer to Rs 64-65. However, for the day my target is Rs 62.45.
I have gone long on KPIT Cummins . Yesterday what we had seen in this counter that, the volumes were pretty heavy; the volumes were about 5-6 times the normal volumes. We have seen the stock breaking out from its 200 DMA which falls closer to Rs 162 levels and taking volumes into consideration, taking the kind of momentum the stock was showing yesterday and taking that it has broken past its 200 DMA, we believe the momentum would continue on Fridays trading also. With that into consideration we have a day target of Rs 179 however my stoploss for the day would be Rs 167.
My fourth and only short call for the day is ONGC . The kind of fiasco, the kind of tepid response we saw in ONGC auction yesterday that would reflect in the trading of the script today. Finally in this 42 crore share auction it was LIC and SBI, I think mostly for the LIC which bailed out the government. What we have seen that Rs 290 plus kind of thing, the appetite for the script at levels beyond Rs 290 is not strong. We could see levels closer to Rs 280 during the day, so taking this into consideration I have gone short on ONGC with a stop loss at Rs 296 and the day target of Rs 279.
READ MORE ON Pankaj Jain of Sunteck Wealthmax, Nooresh Merani of AMSEC Securities, Ashish Kapur of Investshoppe, United Spirits, ONGC, Ambuja Cements, Rolta, GMDC, Bharat Electronics, Dr Reddys, Coromandel International, Amtek Auto, JK Lakshmi Cement, KPIT Cummins, ONGC
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Be careful while betting on midcaps; like Kotak: Dimensions