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Nov 16, 2003 |
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Apollo Tyres - This company is reportedly offering equity to Michellin PLC of UK to augment it's technological needs and to gain inroads in the export market. The news has already seen the stock price surging and a further rally cannot be ruled out. Traded volumes must be kept small on this counter. Suggested action - Buy as long as the stock remains above the 270 mark. Keep a stop loss of 264 and a target of 285. In an enthusiastic scenario, even higher levels of 290 / 292 are a likely possibility. Since no derivatives are available, this is a cash segment play. Bajaj Auto - This counter needs to surge past the 945 mark to signal a fresh buy. Having one of the highest relative strength readings, the stock has so far been insulated from the corrective falls. Suggested action - Buy in small lots in the cash segment above the 945 levels and hold with a stop loss at the 931 levels. Expect the previous top of 960 to be tested in a firm market. Futures players may buy the November series above the 940 mark with a stop loss at the 933 levels. Expect profit taking at the 950 and 955 levels. Options strategy not suggested due to lack of liquidity Exide - This automotive battery major is riding the automobile boom and is likely to see a continued bullishness in the light of higher sales figures. This counter is recommended only for patient delivery based investors looking for 1 - 2 quarters holding time frame. Suggested action - Buy the scrip on declines keeping a room for averaging all the way down to 120 levels. Maintain a protective stop at the 112 levels and expect a price target of 155 in the medium term. Hind Lever - A classic laggard and an under-performer. This counter offers no hope to investors, though it yields good results to patient fixed income players. The stock is losing it's sheen with the institutional and retail segment and barring a corrective bounce back, expect no significant movement from this scrip in the near future. Suggested action - Sell the November 210 calls at a suggested strike price of Re 1 or above. On a margin payout of Rs 28000, the returns will be over 6 % per month. IPCL - another counter which is making higher tops & bottoms and takes good support at the 30 day SMA. Buy on declines with a short term outlook Suggested action - buy near the 190 levels with a stop loss at the 183 levels and a target price of 199 in the near term. Futures traders should buy the November series at a price of 192 with a stop loss of 186 and a target of 200 in the near term. Mah & Mah - This tractor / utility vehicles major is seeing a corrective fall and is likely to see downside support at the 315 levels where short term traders can buy in anticipation of a bounce-back. Suggested action - buy in the cash segment at the 315 / 316 levels in a falling market with a stop-loss at the 311 levels. expect the 334 levels as a target in the near term. Alternately, buy the 330 calls at a premium of Rs 10 MTNL - This counter is likely to confirm a head and shoulder pattern once it closes below the 108 levels. A weak and under-performing counter, this is another fixed income story. Await a decisive close below the 108 levels and short the counter in small lots. Suggested action - Short the November futures, as and when the 108 levels are violated downwards and keep a stop loss at the 112 levels. Expect a target of 101 / 102 in the near term. Alternately, sell the near month 130 / 135 calls at a suggested price of Re 1 / Re 0.80 respectively Satyam Computers - this high volume counter derives support at it's 30 day SMA which is currently poised at the 302 levels. Buying is recommended on declines for short term momentum traders in anticipation of a bounceback Suggested action - buy near the 302 / 305 levels with a stop loss at the 300 levels in the cash market. Maintain a profit target of 311 / 314 in the near term. Futures players may buy the November series at a price of 306 with a stop loss at the 302 levels and a profit target of 316 in the near term. VSNL - strictly a call for intra-day traders as the telecom sector is undergoing a re-rating. The trigger is the Madras - Singapore undersea cable which will give VSNL an edge in the internet access business. Suggested action - Buy only above 142 levels with a stop loss at the 138 levels and a target price of 148 in the near term.
Due to the extra session on saturday, the usual format is available this week. Please trade on very thin volumes as the markets are likely to be highly volatile and can swing either way. Trade in the general trend of the market and avoid aggressive trading strategies. Standby for fresh recommendations via SMS on a real - time basis. Your feedback is important ! Please click here to let us know your views. Click here to inform a friend about this page on our website.
The author is a Mumbai based investment consultant and invites feedback at Vijay@BSPLindia.com and (022) 23438482 / 23400345. SEBI disclosure - The author has no positions in the stocks mentioned above.
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