The stock of liquor major, United Spirits might attract some attention on the pink paper reports that the company is open to divesting up to 49 per cent in Whyte & Mackay it acquired during May 2007 for Rs 4,800 crore.
Another stock that looks attractive from a long term perspective is GMR Infra after getting a major concession to GMR-led consortium Delhi International Airport Ltd that is operating and upgrading Delhi airport, the government has allowed it to impose airport development fees on passengers that will help them raise up to Rs 1,827 crore over three years. We like the stock of GMR Infra at CMP of Rs 82 and recommend a 'BUY' on the stock, as the company might receive a boost from the forthcoming Asian games
Welspun-Gujarat (Rs 70.25): Buy
We recommend a buy in Welspun-Gujarat Stahl Rohren from a short-term trading perspective. It is apparent from the charts of Welspun-Gujarat that it was on a medium-term down trend from its December high of Rs 130, forming lower peaks and lower troughs. The stock had fallen 51 per cent from its December high to its recent low. However, the stock recently found support at significant support levels of Rs 63. After taking support, the stock reversed direction, triggered by the bullish divergence in the daily relative strength index(RSI). Moreover, on February 9, the stock jumped by 7 per cent, experiencing buying interest. We notice that there is an increase in volume over the past two trading sessions. The daily RSI is on the brink of entering the neutral region from the bearish zone. The weekly RSI is also displaying prolonged bullish divergence, indicating further upside. We are bullish on the stock from a short-term horizon. We expect the stock to rally until it hits our price target of Rs 80 in the approaching trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 66.