SAI KRIPA PARSADAM STOCK MARKET AND MCX PARK

BIG BOSS


VIKAS PARSHURAM SAMWATSARE

DATED 25/10/11

Glenmark

Recommendation: Buy

Uptrend

Last Close: Rs 299.80

Target: Rs 320

Stop Loss: Rs 285

The outlook turned out to be positive after testing the panic bottom of Rs 285. It has moved above the 14-DMA and is likely to test Rs 307 and Rs 320 in the near term. The 10/5 departure oscillators are also giving support at Rs 295 and Rs 290.

Mastek

Recommendation: Sell

Bearish

Last Close: Rs 88.10

Target: Rs 76.55

Stop Loss: Rs 92

The stock has immediate support at Rs 85, if trades below it may test Rs 76.55 in the short term. The weekly MACD has given a strong sell recommendation on every rise. The moving average combinations are also showing weakness. The stock has resistance at Rs 92.

TCS

Recommendation: Buy

Uptrend

Last Close: Rs 1079

Target: Rs 1140

Stop Loss: Rs 1048

The Bollinger band of TCS is suggesting further scope for price appreciation in the near term and it is suggesting a price level of Rs 1,140 in the short term. The 5 day stochastic is also giving a buying signal, along with 10/5 departure oscillator. Buy at declines.

Tata Motors

Recommendation: Buy

Bullish

Last Close: Rs 186

Target: Rs 198

Stop Loss: Rs 179

The stock has completed its consolidation and it is likely to move towards Rs 192 and Rs 198 in the short term. The stock has support at Rs 183 and Rs 179. The MACD has given a positive divergence and the 5-day stochastic too has given a buy signal.

HCL Tech

Recommendation: Buy

Go Long

Last Close: Rs 424.90

Target: Rs 439

Stop Loss: Rs 413

Both stochastic and MACD have given a firm outlook for the stock. The 5-day momentum is also suggesting further uptrend to the stock price. The stock is above the moving average combination of 14, 10 and 9. Use price declines to enter.

NIIT.jpg

Recommendation: Buy

Market price: Rs 46.70

Target price: Rs 60

NIIT is strategically moving towards turning asset light by targeting more annuity-based revenue. Management aims to do so by being selective in government SLS contracts, which are highly capital-intensive and have long debtor cycles (thus impacting returns).

DB Corp

Recommendation: Buy

Market price: Rs 218

Target price: Rs 274

We have revised our earnings estimate downwards considering the higher-thananticipated increase in newsprint price due to increased circulation, forex fluctuations and higher number of loss-making editions. DBCL is trading at 14.9 times.

Federal Bank

Recommendation: Buy

Market price: Rs 383

Target price: Rs 444

While slippages from the SME sector have been at elevated levels in the past few quarters, part of the high credit costs are compensated by relatively high yield on advances. We have factored in NPA provisioning expenses at 0.7% of average assets for FY12E.

FAG Bearings

Recommendation: Buy

Market price: Rs 1308

Target price: Rs 1396

We have a positive view on FAG, considering its strong parentage, debt-free status and cash balance worth .`180/share on books. We expect FAG to register a CAGR of 20% in net sales and ~24% in net profit over CY10-12E. Cash flow is also expected to remain healthy.

Godrej cons products

Recommendation: Buy

Market price: Rs 414.95

Target price: Rs 452

GCPL's recent acquisitions have been in-line with its 3X3 strategy and enable the company to spread its footprint and grow inorganically. Over FY2011-13E, we expect GCPL to post a 16% CAGR in earnings, driven largely by consolidation of the recent acquisitions.

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