Stock picks: 9 trading tips, 2 multibagger ideas
The Indian market has been rangebound over the last many days. It is entering an important week today. The November futures and options contracts will expire on this Thursday. The derivative expiry week is usually very volatile. Moneycontrol brings to you some of the recommendations given by experts.
November 26, 2012 / 13:29 IST
Moneycontrol Bureau
The Indian market has been rangebound over the last many days. It is entering an important week today. The November futures and options contracts will expire on this Thursday. The derivative expiry week is usually very volatile. Moneycontrol brings to you some of the recommendations given by experts that will help you cash in on the many opportunities available.Stock picks for today: Sudarshan Sukhani, s2analytics.com says Bharat Petroleum Corporation's (BPCL's) charts are very dismal. It is not just a correction, it is now in a downtrend. "The charts tell us that there is more short selling here. In a choppy market, there are options for selling as well as for buying. This one is clearly for selling," he asserts.Sukhani has a 'sell' on Jubilant Foodworks. "It is a very interesting chart. It has rallied and confounded all analysts by reaching Rs 1,400. But, for the last two months, it is in a trading range. While it gives the impression of rallies, it is moving in a 150-point range all the time. It goes up and then comes down to the lower end again. This time it has broken down the lower end, suggesting a deep correction lies ahead. It has some risks. It is a momentum stock. It is worthwhile taking a short position here, it is not just day trading, if it works, it can give a long fairly decent profit on the downside," he elaborates. Meanwhile, Sukhani is bullish on Bajaj Finance. "It is an excellent stock. Entire Bajaj Group is doing remarkably well. Bajaj Finance had a rally, a small correction. That correction took a shape of a flag. A flag comes midway in an uptrend. It means there is more upside. We are only talking about a day trade today. But if the day trade works out today or tomorrow, it is worthwhile carrying this position for as long as it takes. So, it is also a position trade," he adds.Sukhani is betting on Motherson Sumi. "I think it is probably a smallcap stock. It has been a favourite earlier. But like most other smallcap stocks, it had a very sharp correction, a bear market of its own. Now, it is building a base and coming out of it. It is breaking out of a long base. Bases are good. When you have a long base and a breakout, it tells us that a new sustained bull market is probably beginning. Motherson Sumi is not a day trade. This is a stock you should be doing swing trading in every time it dips and every time you find an opportunity of small breakouts. For people who are looking for investing for a six months horizon, it is a very good stock to be in," he explains.Sukhani is also bullish on Adani Enterprises. "It is a stock that has done its bear market, completed it, built a small base, and now it is coming out of it. When you are coming out of a base, it is very choppy conditions because people do not have full belief in it. So, sometimes it comes down, retreats, but eventually it finds support at higher levels. So, it is making the higher highs, higher lows pattern and moving ahead. It is a stock that we want to buy every opportunity that we get," he adds.Also read: Tulsian bets on media this month; picks top fourMultibagger ideas:SP Tulsian, sptulsian.com has picked up Career Point and Dhanlaxmi Bank as his multibaggers. Career Point, Tulsian says, has limited downside. "You may have a downside of about Rs 8-10, but on the upside, one can expect a price of Rs 225," he asserts. According to Tulsian, Dhanlaxmi Bank is a very interesting story. "I see a very limited downside in the stock. This is not for the near-term investors or those who have a trading view. Those, who can have a view of about one-year, can buy and look for a target of Rs 75 or so," he suggests. Brokerage calls:Stock: SiemensBrokerage: Bank of America Merrill LynchRating: UnderperformTarget: Rs 530Rationale: Adjusted profit after tax (PAT) of Rs 65 crore, excluding the impact of Rs 120 crore write down, was well below estimates. Poor execution led by project delays impacted margins by 500 bps year on year.Stocks: United SpiritsBrokerage: NomuraRating: BuyTarget: Rs 2,200Rationale: The Diageo deal transforms the long-term story of the company, where profitability and financial profile will improve significantly.Stock: Godrej ConsumerBrokerage: Credit SuisseRating: OutperformTarget: Rs 790Rationale: Earnings momentum should remain strong in the near-term. With the launches in hair colours and soaps doing well, the Indian business should see strong revenue growth.Stock: RanbaxyBrokerage: UBSRating: SellTarget: Rs 470Rationale: While the Atorvastatin disruption is temporary, with seven players in the market, Ranbaxy is likely to face market share erosion.Vini Amesar.
vini.amesar@network18online.com Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
