We like Realty, Commodity and some select midcap stocks in todays trade. Watch out for Unitech, Suzlon, Bartronics, Yes Bank, Purvankara projects, as these stocks are likely to trade on the upside.
Commodity stocks like Hindalco, NALCO and Sterlite Ind are likely to be in demand. Tata Steel is our pick in this sector, as the company is well positioned to take advantage of a rebound in the global economy and is a good early cycle play. Hindustan Constructions, which has undeperformed during the pull back looks attractive froma valuations perspective
Buy Wipro (238) Target 248, 250
Buy Tata Steel (196) Target 204, 206
Buy BHEL (1362) Target 1402, 1412
Sell IVRCL (135) Target 129, 127
Asian markets are
trading higher in the range of 1-2% this morning. The bulls are likely to
prevail over the bears in the near term. The current momentum may be
dismissed as a bear market pull-back. Traders should trade with strict
stop losses to avoid being trapped on the wrong side.
The news that the iron ore exports to China from Indian companies is likely to give a boost to stocks like Sesa Goa. R-Com might see some positive action after the company announced that it plans to buy back FCCBs spending nearly $ 650 million. We like Idea Cellular in this space, as the stock looks strong techinically is ready for some more gains
Stock to watch out:
Tata Power (CMP Rs687)
On the daily charts, the stock has made a pattern of the Shooting Star. This pattern indicates that the buyers drove the
prices higher during intra-day session on Monday but encountered selling pressure which brought the prices back down to
close near day’s open. As the incident took place in an uptrend, the selling pressure can be seen as a reversal sign.
However, a move above Rs705, could see the stock touching the levels of Rs740 in the near tern. Similarly, a
fall below Rs670 could see the stock attempting downside levels of Rs640 and below. Traders should watch out
for opening trades, before initiating above strategy.
Insider trades:
Larsen & Toubro: A. M. Naik, CMD has purchased 5,000 equity shares of the company on December 2, 2008.
Aurobindo Pharma: P. Suneela Rani (Promoter Group) has purchased 10,000 equity shares of the company on
December 4, 2008