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Last Updated : Jun 18, 2012 03:31 PM IST | Source: Moneycontrol.com

Bulls Eye: Buy Finolex Cable, HUL, Infosys

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.


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, Rajesh Agarwal, Eastern Financiers, Pankaj Jain, Sunteck Wealthmax and Parag Doctor, Keynote Capital battle it out for top honours.


Rajesh Agarwal, Eastern Financiers


Buy Finolex Cable with a stop loss of Rs 37 and a target of Rs 43. This is one of the countries largest and leading manufacturers of electrical and telecommunication cables and has shown in strong Q4 numbers, PAT jumped by around 139%. With demand emerging from HT cables and plan being operational from the next quarter onwards we think this company can report better performance. Even on valuation parameters if we see the company’s trading at a PE of less than 5 which makes this company very attractive.


Buy Andrew Yule with an intraday stop loss of Rs 19 and a target of Rs 24. This is a Government of India company with around 93% holding with the Government of India. The company has some good investments basically into Tide Water Oil which is valued around Rs 168 crore at the current market price against an investment of just Rs 1.88 crore. Any attempt to disinvest either Andrew Yule or Tide Water would be a positive trigger for the stock and can re-rate the stock.


Buy CEBBCO with a stop loss of Rs 72 and a target of Rs 80. The excise duty ranging in the last Budget i.e. FY12-FY13 on CV’s was a positive trigger worth for this stock. The company is in process to expand its capacity around 30000 units which would again be a positive trigger in the coming years. This capacity addition will help this company in catering to the OEMs in a better way.


Buy Deccan Chronicle Holdings Limited (DHCL) with a stop loss of Rs 30.50 and a target of Rs 36. There is a buzz that the IPL team stake sale is on and the company has also said that they have seen advice from Religare Capital market on this matter although they have denied any concrete steps on this but whenever this happens this would be a very big trigger for this stock.


Pankaj Jain, Sunteck Wealthmax


I have gone long on Tech Mahindra and the kind of formation we have seen in the scrip on Friday’s trading session it’s a pennant formation on daily charts and generally whenever this formation takes place it suggests that scrip could be moving another 5-7% in coming few days. We have a short term target for Tech Mahindra at levels closer to Rs 745-756 with upcoming merger of Satyam Tech Mahindra it will form a very stronger identity.


Long on Gujarat Mineral Development Corporation (GMDC). What we have seen in scrip, we had a strong volume breakout in the scrip on Friday and the scrip closed above 200 DMA and it closed above its 100 day simple moving average. The company is strong, it has a strong balance sheet and basically they are into lignite mining, they are into mining of raw material which are used in cement industry so all these factors contribute positively to the movement of the scrip and we believe the scrip is heading to plus Rs 200 levels in coming few days or maybe in a week or two. However for the day my target is Rs 187.


Long on Aarti Drugs. What we have seen in the scrip, generally it’s a low volume scrip but on Friday we saw volumes which were almost 10 times the regular volumes. We have seen a rounding bottom breakout formation in the scrip and we believe that short term targets for this scrip are again closer to between Rs 145-150. However for the day my target is closer to Rs 129.


Short on Sterlite Industries. What we have seen that the scrip has moved from levels closer to Rs 90 to levels closer to Rs 105 in last 10 days or so. We believe that the pullback is almost completed. Generally we have seen that commodity price have eased out seriously in last few months and the reason being that the growth is being seriously affected in China and China being one of the biggest, 30-40% of the consumption of major metals iron ore, copper is in China and we believe that slowdown out there is for real and commodity scrip’s could face further pressure in coming months.
 
Parag Doctor, Keynote Capital


Buy Hindustan Unilever (HUL) with a stop loss of Rs 444 and a target of Rs 459. HUL is in an upward momentum making a new 52 week high and is heading for a target of around Rs 460 levels with the stop loss around the breakout zone of Rs 444.


Buy Infosys with a stop loss of Rs 2465 and target of Rs 2595. Infosys is filling the gap which was seen after the last results and is heading for the resistance of around Rs 2600 from the 200 DMA.


Short Hindustan Petroleum futures with a stop loss of Rs 306 and a target of Rs 292. Hindustan Petroleum is facing resistance around the 200 DMA at Rs 305 and is in a weak sector and is heading to support around the Rs 292 levels.


Short on Sesa Goa futures with a stop loss of Rs 190 and a target of Rs 177. Sesa Goa is struggling to cross the Rs 190 resistance from the longer term averages and is heading for a target in the mid 70s around Rs 177.



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First Published on Jun 18, 2012 12:13 pm
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