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Last Updated : Apr 20, 2012 12:25 PM IST | Source: CNBC-TV18

Bull's Eye: Buy Kalyani Steel, HDIL, Zensar Tech, IFCI

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 Tater of Fort Share Broking and Rakesh Gandhi of LKP battle it out for top honours.


Below their top stock picks and analysis:


SP Tulsian of sptulsian.com


Buy Schneider Electric with a target of Rs 107 and stop loss of Rs 90. This company came into existence after the restructuring of Areva T&D having carried out by Alstom; its promoter into two companies one for transmission and second for distribution and this company is into the distribution. It has learned that Alstom who is holding 73% stake in the company are looking to exit from this company and this stake sale is likely to happen at a hefty price which will also trigger an open offer and in anticipation of that the informed buying has been seen in the stock yesterday and hence a positive call.


Buy Kalyani Steel with target of Rs 68 and stop loss of Rs 59. This company is likely to start the captive Iron Ore mine operations in which they are having the ownership at Karnataka by the Supreme Court order, which is expected today and this Iron ore mine is very rich having reserves of close to 24 million tones with Fe content of 65% and once that happens this will vastly improve the financial working of the company and hence a buy call.


Buy Texmaco Infrastructure with target of Rs 38 and stop loss of Rs 32. This is a KK Birla group company which is holding the real estate assets of the group having very rich valuations, having real estates at Delhi and other parts of India and it is estimated that the present valuations of the real estates are over Rs 3000 crore, while the market cap of the company is close to about Rs 450 crore with debt free status. The value buying is seen in the stock which is likely to continue and hence a buy call.


Buy Asahi India Glass with a target of 74 and stop loss of Rs 65. This is a joint venture company with Maruti, Asahi of Japan and Labro family with 11 plants located in the country. This is the largest automotive and float glass makers in the country with market share of 27% for float class and 77% market share for passenger cars in India and the stock has been witnessing value buying for last couple of days due to the overall positive view on all auto ancillary stocks and hence a buy call.


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Ashish Tater of Fort Share Broking


Long call on IFCI for a target of close to Rs 47. We have a stop loss of around Rs 41 on closing basis till that the chart looks positively shaped for a target of close to Rs 49-50 in the next 4-5 days time frame. Thus a stock that can be looked on any dip and the stop loss should be maintained at Rs 41 on closing basis.


Long call on Bharati Shipyard. Baltic Dry index have again crossed that 1000 mark which is a positive sign for any of the companies. With that momentum even Bharati Shipyard should be a good beneficiary in today’s trade. I have a target of close to Rs 93 on the stock. Fundamentally, if I see we still feel that the stock has got potential to test that Rs 135 to Rs 140 mark from 1 year time frame, thus a good fundamental stock and should be bought around this Rs 80-85 region from a longer term perspective.


Long call on Escorts. There is a strong market buzz that a leading player is going to give for a hostile takeover and day before yesterday there was a block deal on to the stock where Reliance Mutual fund was the seller and an insider bought at Rs 76. The stock technically bottomed out and we feel the stock if it does not close below that Rs 47 mark has got good potential to test even Rs 98 in days to come.


Long call on HDIL for a target of Rs 94.60 with a stop loss of Rs 86.80. The charts have shaped out well and we feel if Rs 86.80 is not traded on closing basis there is a likely possibility that the stock could even see Rs 100. Thus again a stop on this favored fund looks attractive and can be bought with Rs 86.80 as a closing stop loss.


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Rakesh Gandhi of LKP


Page Industries has made a high in the month of February and then retraced 20% from that level and once again recovered yesterday to close at the highest level with heavy volumes. For today, it can be bought for an intraday target of Rs 3,290 with a stop loss of Rs 3,030.


My second call for the day is buy BF Utilities. The stock has been sliding since the month of September 2011 and while sliding down it has made an inverse head and shoulder formation from which it has seen a breakout yesterday with heavy volumes. The stock could see levels of Rs 550 in next three-six months. For today my target for the stock is Rs 458 with a stop loss of Rs 433.


My third call for the day is buy Honeywell Auto. The stock has been in a sideways trading range since last six weeks and yesterday it has seen a breakout from this sideways trend with a heavy volume. Hence it can be bought for a target of Rs 3,550 with a stop loss of Rs 3,180.

My fourth and last call for the day is buy Zensar Technologies. The stock has been in a sideways move since last many years and yesterday it has seen a breakout from the sideways pattern of last five years. I believe the stock can trend further upwards and hence it can be bought for an intraday target of Rs 239 with a stop loss of Rs 219.



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First Published on Apr 20, 2012 11:29 am
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