Expert view: Trading tips on 7 stocks; 2 multibaggers

Moneycontrol Bureau

The Indian market has been very choppy over the last many sessions. 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 is bullish on TCS. "A small base in TCS has already resulted in a breakout on the upside. It seems reasonable to expect that this breakout will be sustained. Today, especially when the markets are showing some signs of cheer, some stocks will go up. IT stocks are likely to be the outperformers. So, for a day trader or a swing trader, who is taking a couple of days of positions, it is a good idea to go long in TCS. For somebody, who wants to build a position for a few weeks, it is still a good idea because we are now buying the stock at its lows," he elaborates.

Sukhani has a 'buy' call on Zee Entertainment. "Zee Entertainment has been a favourite, when it started its up move. For the last three days, it has been consolidating. It is in a strong uptrend. So, it is very fair to assume, probability is very strong that consolidations, in a strong uptrend, are resolved on the upside," he adds.

Sukhani is also betting on Escorts. "It made its bear market low, falling from Rs 130 to Rs 55. Now, it is rallying. It is at Rs 68-69 now, that’s already a 40 percent rally. If a good stock starts rallying then you have very strong movements on the upside. It has built a consolidation head and shoulder pattern. It is breaking out of that. That’s good news because the rally has been supported by a strong chart pattern. I would say go long in it," he explains.

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Brokerage calls:

Stock: BHEL

Brokerage: Goldman Sachs

Rating: Sell

Target: Rs 200

Rationale: Equipment orders for the 12th five year plan have largely been placed and there is little upside for BHEL over the medium term.

Stock: ITC

Brokerage: Religare

Rating: Hold

Target: Rs 295

Rationale: While the cigarettes and FMCG division, continues to grow steadily, the hotels division is likely to stay muted in the near term given weak macro conditions. The stock could remain range-bound ahead of the budget.

Stock: MphasiS

Brokerage: Goldman Sachs

Rating: Neutral

Target: Rs 380

Rationale: Recent capital allocation moves partially remove concerns over efficient utilization of MphasiS's cash reserves but the core business continues to struggle with a consistent decline in hp channel revenues.

Stock: Infosys

Brokerage: Axis Capital

Rating: Hold

Target: Rs 2,400

Rationale: The December quarter is likely to be muted due to lower new deals and delay in the decision making cycles for large deals. Margin will also be subdued due to the lower than expected revenue momentum and salary hikes.

Multibagger ideas:

PN Vijay, portfolio manager, askpnvijay.com has picked up Karur Vysya Bank and Easun Reyrolle as his multibaggers for the day.

He recommends Karur Vysya Bank for the medium-term investors with a price target of Rs 625. “There is no serious risk to this investment except a possible deterioration of the Indian economy and NPAs. But that is a very remote possibility. So, Karur Vysya is a fairly safe bet,” he adds.

According to Vijay, Easun Reyrolle is mainly for the long-term investors with a two-year target price of about Rs 125. “The risk to this investment is that the ramp-up in turnover may not happen with the speed with which the company expects. In that case, the interest costs would hurt them. So, this risk is always there, when you are seeing the major investment activity. But I am still pretty bullish on Easun Reyrolle,” he asserts.

Disclosure: PN Vijay has no holdings in the stocks discussed.