Buy JM Financial, MTNL, Sun Pharma: Pankaj Jain

Sell Maruti Suzuki . Basically the kind of poorly quarterly results Maruti has come out with, profits were down more than 20% and the reasons attributed for lower profits has been, one of the main reason has been deprecation of rupee and appreciation of Yen. All these factors are still prevalent in Q2 and apart from that the shutdown of Manesar plant is adding to the problems and I think this would continue to affect the performance of the company in Q2 also.

Long on JM Financial . It’s a Rs 900 crore market company and what we have seen that this stock has been moving in range of Rs 12-14 in last 2-3 months and one of the reason why this stock is showing strength that at current levels this stock gives a dividend yield of closer to 5%. There is a 60 paisa per share dividend and stock goes ex-dividend from 1st of August. So I think taking into consideration that we should see positive momentum in Monday’s market I have gone long on this stock with a target price of Rs 13.25 for the day.

Long on MTNL . What we have seen in this stock though the fundamentals of this stock are still not to be desired what we seen in last 10-12 days there has been a very substantial build up of open interest positions. There have been various rumors floating in market with respect to merger, with respect to sell of realty, with respect to some kind of restructuring. But I think the technicals and the momentum indicators and the volume indicators what we are seeing in last couple of days show that this positive momentum could carry on for next couple of days and next serious resistance could be closer to levels of Rs 33.

Technically Sun Pharma has moved in a very smart fashion from levels less than Rs 500 to levels closer to Rs 640 now. The growth of the company has been very strong in last 3-4 quarters. The top-line has been growing at about 45-50%. Bottom-line has been growing between 20 and 25%. US subsidiary is doing well, Taro is doing well and the appreciation of US dollar is definitely helping the bottom-line of the company.