ADD

Tuesday, August 28, 2012

Stock Tips for 29/08/2012


The numbers are not very impressive. The medium and heavy commercial vehicles are clearly in a downtrend. The first quarter MHCV segment has seen 11% drop in the industry as a whole
The Obama Policies does give long term benefits to Indian pharmaceutical companies, which are manufacturer of generic products and that will mostly shift to the US because the US is the biggest growth market.
But how is the RBI going to respond to this situation? We will have the GDP numbers and the inflation numbers also coming out. So it is a mix of all these factors that will weigh on the banking stocks as the entire market seems to be underweight on this sector.
We might see 5% up and another 2% down and that kind of action. But, the banks will not further fall another 20% from the current levels or even 10%.
The stock has been underperforming for the last 1.5-2 years, however cash in profits have been added to the balance sheets and one can comfortably assume a 10% to 20% increase in Reliance Industries from the current levels over the next few months.
I do not know what the news flow is in terms of promoter stake sale or not, how far it is true or not, but I invested in it purely as a value play at very attractive levels.
Divi's Laboratories Ltd is a ‘SELL’ call with a target of Rs 1050 and a stop loss of Rs 1140.
Power Finance Corporation Ltd is a ‘SELL’ call with a target of Rs 150 and a stop loss of Rs 165.
ITC Ltd is a ‘BUY’ call with a target of Rs 282 and a stop loss of Rs 260.

No comments:

Post a Comment