CNBC-TV18 brings you a brand new week of Bull's Eye. It's the 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, Jagannadham Thununguntla of SMC Global and Nooresh Merani of AMSEC Research battle it out for top honours. Below their top stock picks and analysis: SP Tulsian of sptulsian.com My first call for the day is a buy call on Syndicate Bank with a day target of Rs 91 and a stop loss of Rs 84.90. The buy call has been given on the stock because the bank has posted very good performance for Q3 with net NPA falling to 0.86% which was at 0.93% on Q2 and the gross NPA falling to 2.29% which was at 2.38% for Q2. So this gives lot of comfort on the asset quality. Apart from that the EPS for FY12 is likely to be at about Rs 24 considering its Q3 good numbers. That translates into share ruling at PE of 3.5 times with a price to book at 0.7. The second call for the day is a buy call on Jet Airways with a day target of Rs 245 and stop loss of Rs 227. The Q3 results of the company will be seen quite positive because Q3 net loss is just Rs 101 crore. Though, this Rs 101 crore has been largely because of forex gain of Rs 179 crore and other income of Rs 226 crore. But optically, this will be seen quite positive. And last couple of days, we have seen long positions getting liquidated and results will see renewed interest coming back into the stock. Third call for the day is sell call on Reliance Industries with day target of Rs 753 and stop loss of Rs 808. The sell call has been given largely because of the very poor performance of the company in Q3 where PAT has been even slipped below Rs 4500 crore, which was the lowest consensus of the market. Even this Rs 4400 crore PAT has come largely because of other income of Rs 1700 crore in which interest income constitutes Rs 1300 crore. Apart from that, the buy back announcement of just Rs 10,500 crore at up to Rs 870 per share is also not going to be seen positive by market. Last call for the day is a sell call on HDIL with day target of Rs 75 and stop loss of Rs 80.3. In fact we have been seeing profit booking in the stock at the higher levels because it is seen as unanimous consensus that Q3 results are not likely to be good and in fact lot of run up we have seen in the real estate stocks, maybe other stocks which were quite active and have seen run up in last 2-3 days. Hence profit booking likely to make the stock rule weaker for the day and hence a sell call. _PAGEBREAK_ Jagannadham Thununguntla of SMC Global Buy Godrej Consumer Products with day target price of Rs 415.9. On the back of impressive results by the company and also the company stake sale to Temasek, this should give fresh fillip to the companies expansion plans because the company is already going very aggressively with one more acquisition in Chile of 60% stake, should give one more footprint to one more area in Chile. Overall, the Godrej Consumer Products expansion plans are going very impressively despite the slowing growth conditions. The stock is selected with the day target price of Rs 415.9. Second pick for the day is sell United Spirits with target price of Rs 562. On the back of very bad results and on top of that, the Kingfisher related bank guarantee pressures are already showing on overall group. Plus the very bad results of the Q3 should have very negative impact on the stock. Third pick for the day is buy Syndicate Bank with a day target price of Rs 89.50. Already all these companies in the midcap PSU banks have been battered very badly with the fears of NPA and etc but the results posted by the company are very impressive suggesting that some of the fears were little over exaggerated. It seems the stock rally should continue. Fourth pick for the day is sell Reliance Industries with day target price of Rs 758. On the back of very bad results and disappointing on almost every operational metric that you can think of. Even though buy back is announced, I donDiscover 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!
