Get stock-specific as mkt recoups; bet on Lupin: Experts

The market appeared to be consolidating its gains after a volatile week in which it saw moves of over 400 points on either side. The Sensex ended the week at 20,286.12, up 38.79 points while the 50-share Nifty gained 17.40 points to close at 6,187.30.

Rahul Mohindar of viratechindia.com says that the market is consolidating and marking time. "There will be some oscillation to levels of about 6,100. I wouldn’t read too much into this. Even a move down to 6,100 should be read as a pullback. Investors need to be very stock specific and there might be a strong upside in some of the banking stocks and rate sensitives."
SP Tulsian of sptulsian.com is not excited by NIIT Tech's earnings. "Except for Polaris all the midcap IT stocks have been languishing. Investors are better off  betting on frontliners like HCL Tech, Infosys and TCS."
Tulsian is not too disturbed with ITC's quarterly earnings. "The growth of volumes in the cigarettes segment was not as expected due to numerous price-hikes. The EBIT in the agri-segment has fallen on year-on-year (YoY) and disappointed expectations. The performance of the paper and hotel divisions have not given rise to expectations. ITC plans to create more assets for its hotel division and may become profitable in the the next two-to-three years."
Tulsian suggests investors to enter ITC at level of Rs 315 with view of two-to-three months and advises traders to be patient in creating any long positions. "FMCG could be a drag on the market."
National Mineral Development Corporation (NMDC) has been down for the last 2-to-3 days. "This stock has been ruling dull. I hold a negative view on the stock as the removal of the mining ban in Karnataka will cause an increase in the supply of iron ore and impact NMDC’s pricing power. The company has not been able to increase the iron ore prices even when demand had peaked," says Tulsian
On the moves in capital-goods stocks ABB and Siemens, Tulsian says that the possibility of delisting cannot be ruled out. "Promoters of both companies have raised their stake in the past to 75 percent. The only reason for the day’s rise of 21-22 percent must have been caused by the circle of the insiders and has caused all capital-goods stocks there were languishing till date, to rise. Both stocks are ideal from a short-term trading point of view."
The market expert calls for caution on stocks such as Bharat Heavy Electricals Limited (BHEL). "I don’t think that there is any hope of revival of the power generation sector. Investors and traders could enter the stock on a short-term trading call for a few days with a tight stop-loss," says Tulsian.
On calls investors can take next week, Tuslian advises caution on banking stocks. “You have to be little selective. Syndicate Bank, Oriental Bank of Commerce (OBC), Dena Bank and Indian Overseas Bank (IOB) may all turn a little weak." Lupin and IndusInd Bank have made stunning moves on the Nifty. PN Vijay of askpnvijay.com says that the stocks are his favourites. "IndusInd's upward move is part of a larger rally in private-sector banks. Lupin has become a blue chip thanks to consistent performance."