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Saturday, March 31, 2012
Advice on stock market.
This is good strategy, but not reliable.
Buy Ranbaxy Labs at current level: Sukhani
Sukhani told CNBC-TV18, "Coal India is more of a choppy nature rather than a short-term buy. But Ranbaxy is looking good. It's been in my buy list earlier and I think there is more upside here. If not anything we can at least see a very decent correction, a corrective rally and maybe the trend is changing which we will know later. But Ranbaxy at current levels justifies buying."
He further added, "I like Tata Motors a lot and I don't have to like it, the market likes it much more. Stocks that are making new highs, consistently going up, they are buy on dips. So among the auto sector apart from Hero MotoCorp , Tata Motors is a stock traders want to buy. So I would say that if next week, if this market continues its up move, that should be the number one stock in the auto sector."
Buy Hindalco, Tata Steel: Amit Harchekar
Harchekar told CNBC-TV18, "Hindalco and Tata Steel both looks good on charts. If you look into the Hindalco it has rebounded from the good support zone of Rs 125 levels. So that projects you upside target close to Rs 136-137. Tata Steel if you look into it has been outperforming market since last couple of days despite weakness in the global markets."
He further added, "The metal stocks, especially Tata Steel was almost moving or maintaining the support levels of Rs 455. So I believe Tata Steel is likely to outperform the market but since Hindalco has fallen by almost 10% from its intermediate peak you can expect a sharp pullback close to Rs 137. So Tata Steel and Hindalco are both becoming buy. A stop loss can be placed at maybe 5% lower from the current levels. For Nifty trades since this buy signal has been emerged above 5,200 levels so as long Nifty closes above 5,200 levels I believe the trend is positive for short-term target of 5,360 and four-five days the target comes to 5,530."
Buy Hexaware on dips, says Sukhani
Sukhani told CNBC-TV18, " TVS Motor and Pantaloon are in downtrends. All stocks will see days on which they go up. Nothing goes down or nothing goes up day by day relentlessly. There are interruptions but Hexaware has a chart that justifies buying. So if you have a dip you buy. If you have a breakout you buy."
He further added, "Bank Nifty a day trade can be taken even now and with ICICI Bank , State Bank of India and one of the stocks that I always think will go down Canara Bank . But these are essentially day trades."
Friday, March 30, 2012
Accumulate Glodyne Techno; target Rs 440: Unicon Investment
"Glodyne Technoserve Limited (GLTL) is primarily engaged in technology management services, which is platform driven and outcome based. The company is engaged in providing services across 10 sectors, such as government/public sector units (PSU), information technology / information technology enabled services, Banking, Financial Services and Insurance, education in India and North America. As of march 31, 2011, it had 42% of its business coming from the United States geography. During fiscal 2011, the Company had presence in India, Canada and United States of America. During the fiscal year ended March 31, 2011(fiscal 2011), it acquired DecisionOne Corporation."
"Presence in the high growth E-Governance space: GLTL has an established presence in the high growth sectors of E-Governance and Education sectors in India. These sectors are expected to show rapid growth in the years ahead. The e-governance sector is experiencing an expansion driven in part by transparency, accountability and higher service level expectations from the government by citizens. The company has won credible projects from Govt of Bihar and Maharashtra which gives strong visibility over the next few years. Also the company has been able to maintain strong growth and profitability in the e-governance business."
"Expecting turnaround in US IMS business: With the acquisition of DecisionOne, the company has gained a strong global footprint in IMS. GLTL will now have access to the North American technology services market where it can expand its services portfolio. They gain access to service delivery platform and can leverage these capabilities on a global basis. GLTL plans to efficiently manage costs and improve their margins moving ahead by utilizing offshore platforms. The company has taken several steps to improve profitability of the US business. Glodyne expects EBIDTA margins to improve from 8 percent to about 12 percent on account of cost savings which should make the US business profitable which is currently dragging down the consolidated numbers. Also debt component which increased largely on account of this acquisition should be reasonably manageable once the US business turns around."
"Sustainable long-term Financial Inclusion Services (FIS) and Education Managed Services (EMS) model: GLTL is in the process of implementing the largest urban as well as rural financial inclusion schemes in India, with a vision of obtaining market leadership position within this space. Due to their established presence in the e-governance space, GLTL has been able to partner with banks and participate along with BC's to provide end to end solution driven by technology. GLTL is also partnered with leading schools, colleges and institutions in the process of automation using its versatile and comprehensive e-learning platform. The FIS and EMS model implemented by the company has created a long term revenue generation stream which has tremendous growth potential moving ahead."
"GLTL's US business will contribute around 40 percent to the topline while domestic IMS business will contribute to another 25 percent. The rest will be contributed by egovernance, financial inclusion and education software business. For FY12, GLTL consolidated revenue is expected above Rs 26 bln. At CMP the stock trades at 8 X FY12 earnings and thus offers room for upside from a medium term perspective. Given the recent stock price run up in anticipation of some order flow, we would prefer to accumulate the stock on declines from a medium to long term perspective. Changing business mix, turnaround in US business, visible scale up in financial inclusion and education business, reduction in promoter pledges are some of the triggers for the stock from a near term perspective. From a one year perspective, we see a potential target of 440 at 8X FY13e earnings. Accumulate for target of Rs 440," says Unicon Investment research report.
Buy JSPL at current level: Sukhani
He further added, "For the day trader and we are only talking about the day trader or the short-term trader one day, two days, JSPL represents a buying opportunity. Sometimes when the Jindal stocks go up, they go up very sharply. It is quite possible we may be seeing such a day today. So take a position on the long side, it is quite easy to get a big move on the upside."
Buy Century Textiles, Raymond on dips: Sukhani
He further added, "Siemens' chart is a disaster. It fell from lofty levels and then there was that buyback or whatever it was and since then it has not recovered at all. Now it is making a rounding top suggesting a major top is in place and probably going back to those Rs 600 levels, it is not going to do that in a hurry. So the price patterns for the last two-three days suggest that there is significant pressure in the short-term. So I think this is a stock - and once these stocks start trending, they don't reverse back intraday. So if there is any bearish pressure today, it is probably a wise trade to take a short position because you will see a sustained move."
Buy Infosys 2750 Put around Rs 72:VK Sharma
He further added, " Ashok Leyland is one stock which has held up quite well in the last few sessions. It has not gone down below Rs 29. Rs 28 are a good support. So going in the fact that all the positions were cut and the stock did go down by 1% yesterday, buying the 30 call at around Rs 1.30 is my suggestion and one can keep a stop loss of Rs 0.80 in this call and one can hope to sell this at Rs 2.5 total premium. So you double your profits in this."
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