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Last Updated : May 29, 2012 12:03 PM IST | Source: Moneycontrol.com

Bull's Eye: Buy Tata Power, Dena Bank, Sun TV

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, SP Tulsian of sptulsian.com, Ashish Kapur of Investshoppe and Saurabh Mittal of Swadeshi Credits.


SP Tulsian sptulsian.com


Buy Tata Power with a day target of Rs 97 and stop loss of Rs 91. This stock has been witnessing value buying at the lower level which is also forcing the bears to cover their shorts and hence stock qualifies as a technical buy.


Buy NELCO with a day target of Rs 55 and stop loss of Rs 47.50. This Tata group company is providing the services of automation and control and the network services and it is learnt that the company is likely to get a Defense order, which is seem to be quite lucrative for unattended ground sensors and that is seeing the informed buying by the informed circle and hence a buy call.


Buy Shalimar Paints with a day target of Rs 663 and stop loss of Rs 613. It is learnt that the promoters of the company that is Jindals and Jhunjhunwalas who are collectively holding 62% stake in the company are likely to proceed with their stake sell at a very hefty valuation and even the performance of the company for FY12 has been very good with EPS of close to about Rs 38 and the informed buying seen in the stock for the last one week makes it a short-term buy.


Buy Balrampur Chini with a day target of Rs 54 and stop loss of Rs 50. The company has posted very good number for March quarter with an EPS of close to about Rs 5.40 against Rs 4.35 for the same quarter in the corresponding period of the previous year. In fact this results will be treated as the best amongst all the UP sugar mills which have posted the results till now and hence the stock is likely to see the value buying at the current level and hence a buy call.


Ashish Kapur, Investshoppe


Buy Dena Bank with a target of Rs 93 and a stop loss at Rs 85. Dena Bank has reported very strong numbers in the previous quarter and they have done well on various counts. The net profit has increased smartly. More over the loan book as well as the deposits have witnessed a very sharp increase. The non-performing assets have been under control. In fact the asset quality slippages have been checked and reduced. Also the CASA ratio has grown at a very healthy pace.


Buy Max India with a target of Rs 200 and a stop loss at Rs 184. In Max there are number of triggers. Firstly the entire stake of New York Life Insurance has been picked up by Sumitomo Corporation at a very hefty premium which pegs the market cap of Max India at a Rs 105 billion. The management’s decision to exit out of various unrelated businesses including polypropylene and specialty chemicals augers well for the near future.


Buy Exide Industries with target of Rs 133 and a stop loss at Rs 122. Exide is again one midcap company which has reported very strong numbers. Moreover going ahead we expect this momentum to continue because both in the automotive as well in the industrial segment there is reasonable traction. Exide being the market leader is likely to benefit from this. The replacement market in the automotive segment is likely to show very good numbers going ahead.


Short Sun TV with a target of Rs 233 and a stop loss at Rs 255. Sun TV reported pretty dismal numbers in the last quarter. Also the entire media sector has been facing rough weather as the ad revenues are not going up and the competition is increasing. This was clearly evident in the results of Sun TV as well where as the advertisement revenues showed a dip and the overall revenue as well as profitability showed a significant decline.


Saurabh Mittal of Swadeshi Credits


Buy Zandu Realty with a target of Rs 1,550 and stop loss of Rs 1,490. Zandu Realty showed some action a couple of trading sessions back and it was on circuit and it has come down a lot from its high but its got some new projects in hand and I think this stock should do well for the next couple of trading sessions.


Buy Wheels India with a target of Rs 690 and stop loss of Rs 660. Wheels India controls almost 2/3rd of the domestic production of car wheels and also exports internationally and it has a lot of potential and it has shown some strength in the last few trading sessions and I expect this stock to do well today also.


Buy Tata Global with a target of Rs 115 and stop loss of Rs 108. Tata Global Beverage has been trading in a range of about Rs 103 to Rs 120. It has started to pickup from the lower levels and I think it has some more strength left for the next few trading sessions.


Short BPCL Futures with a target of Rs 700 and stop loss of Rs 725. BPCL has seen some weakness in the past few trading sessions and given that the diesel price hike may not happen anytime soon. It looks like the oil marketing companies might be under some pressure for the next few days. So I short BPCL.



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First Published on May 29, 2012 11:55 am
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