Baliga's tips to play SBI, TaMo, Tata Steel, DRL

Independent analyst Ambareesh Baliga sees a rangebound Nifty unitl Finance Minister, P Chidambaram announces the Union Budget 2013.

Baliga says the Nifty could see 5840 on the lower side and 6000 on the higher side. He, however, rules out any big rally before the Budget. "Only after the Budget the market may see a good move but till then, it would be a small range," he adds.
Despite the poor Q3 earnings, Baliga is bullish on a number of stocks. He recommends SBI, Tata Motors and Dr Reddys as buy-on-dips stocks. Baliga sees SBI dipping to Rs 50-60 and recommends a buy at that level. Below is the edited transcript of Baliga's interview. Q: The Nifty went below the 5900 level in the week. There was so much by way of earnings disappointment. Do you expect more weakness ahead?
A: It would be weak, but I really don't see a crack from here. This market will tire out participants and people are already fed up the way the market has been behaving, especially the way the midcaps have cracked. People have lost out in the last few weeks so, clearly interest is not there.
The market would be rangebound. On the lower side it could be about 5840, not really below that and on the higher side, surely not beyond the 6000 level. Only after the Budget the market may see a good move but till then, it would be a small range like this. Q: A lot of Nifty companies disappointed in their earnings last week be it State Bank of India (SBI), Dr Reddys Laboratories (DRL), Tata Motors. If you had to buy any stock on a dip, despite the weak earnings which one would it be?
A: It would be quite a few of them out of the list, infact, all of them. If SBI sees another dip of Rs 50-60 more from here, clearly it becomes a buy at those levels. Dr Reddys has been on the buy radar for quite a while. I don't see much downside in Tata Steel at these levels, because it has already corrected from the Rs 428-430 levels to the current levels. So, I think the downside is just about more Rs 5-8 from here. It could be bought at these levels. I'll wait a while before buying Tata Motors. I will buy it if it falls more. Q: If you had to pick up one stock to buy next, which one will it be?
A: It would be a dark horse again. It would be a stock like Voltas where we saw a turnaround in the results which came out. Although the operating profits are slightly lower than expected, I expect the margins to improve going ahead. After the results we saw some correction. It has come down to levels of Rs 87 and one can buy it at these levels with a target price of about Rs 110-112. It could take possibly about next four to six months, but we should be able to reach those levels.