SAI KRIPA PARSADAM STOCK MARKET AND MCX PARK

BIG BOSS

VIKAS PARSHURAM SAMWATSARE
STOCK MAREKT TIPS
26/10/11

Top picks of the AND  MID-TERM PICKS day

Check out the top picks of the day by BIG BOSS VIKAS PARSHURAM ,ANALYSIS, EVP & head, retail rsesearch,PARSADAM STOCK MARKET AND MCX MARKET  PARTNEER MAHA LAXMI SHARE INVESTMENT LTD.


Broking House:MAHA LAXMI STOCK MARKET  Securities has suggested these stocks for mid-term picks.

Alok Industries

Recommendation: Buy

Breakout

Last Close: Rs 20.15

Target: Rs 23

Stop Loss: Rs 18.20

The stock is trading in declining channel on weekly chart & recently tested lower band of the channel & rebounding from the same. One may go long in the range of 19-19.50 levels with a closing stop loss of 18.20 levels for a target of 23 levels.

Bharti Airtel

Recommendation: Buy

Bullish

Last Close: Rs 388.45

Target: Rs 410

Stop Loss: Rs 377

The stock is trading with declining bias after testing the resistance zone around 440+ zone. It may gain momentum above 392 levels so one may initiate long position between 384-385 levels with close above stop loss of 377 levels for a target of 410 levels.

MPSEZ

Recommendation: Buy

Uptrend

Last Close: Rs 161.25

Target: Rs 172

Stop Loss: Rs 152

The stock is completing right shoulder of inverted head & shoulder & has also tested 200 EMA around 148 levels on the daily chart. Rise in volume accompanied with positive move in price indicates strength which may help in testing higher levels in coming future.

India Cements

Recommendation: Buy

Breakout

Last Close: Rs 77.85

Target: Rs 84

Stop Loss: Rs 72.50

In line with broader index, the stock witnessed fall and took support around monthly support zone of 62.50 levels & started consolidating between 68-76 levels. It broke out above from the same & significant rise in volume indicating further northward move.

Sterlite

Recommendation: Buy

Reversal

Last Close: Rs 120.75

Target: Rs 182

Stop Loss: Rs 114.50

The stock has taken support at around 103 levels and formed hammer candlestick resultant reversal in the prevailing declining trend. One may go long in the range of 118-119 levels with a closing stop loss of 114.50 levels for a target of 132 levels.

ITC

Recommendation: Buy

Market price: Rs 209

Target price: Rs 230

Pricing power in cigarettes will continue to result in improvement in margins. Simultaneously, a reduction in losses in the FMCG business will also aid overall margins. We valued the stock on SOTP basis and arrived at a fair value of Rs 230/share.

Yes Bank

Recommendation: Buy

Market price: Rs 301

Target price: Rs 369

YES bank is strengthening retail foothold which will help to improve its NIM. It has delivered RoA and RoE of over 1.5% and 20%, respectively, for the past 12 quarters. It will also benefit from saving rate deregulation and hence we maintain our target price.

Strides Arcolab

Recommendation: Buy

Market price: Rs 387

Target price: Rs 439

Strides posted strong set of numbers for Q3CY11 on back of higher licensing income and strong operational performance. We expect Strides to keep performance momentum. We value the stock at Rs 439 based on 9x CY12E EPS of Rs 48.9.

Hero MotoCorp

Recommendation: Hold

Market price: Rs 2090

Target price: Rs 1919

We are cautious on Hero MotoCorp due to cost pressures emanating from re-branding and R&D expenses. However, strong rural demand is a positive. We are jittery and respectful of the "growth premium" assigned by the market in an uncertain global macro.

Hindustan Construction

Recommendation: Hold

Market price: Rs 26

Target price: Rs 27

While 14.5% equity dilution in HCC Concession is a positive development, Lavasa continues to incur cash outflow of ~Rs 2 crore/day. The EPC business has also become a major drag due to slower execution, sharp increase in debt and deteriorating working capital.

(Views expressed are personal. The chartist may have interest in some or all of the stocks. The readers are advised to take their own investment decision or may take professional advice before investing.)