BIG BOSS
VIKAS PARSHURAM SAMWATSARE
1 Jun, 2011
Top 10 picks of the day
Check out the top picks of the day by VIKAS PARSHURAM SAMWATSARE OWNER OF PARSADAM GROUP 'S
(Views expressed are personal. The chartist may have interest in some or all of the stocks.)
Reliance Industries
Recommendation: Buy
Bullish
Last Close: Rs 951.7
Target: Rs 1,000
Stop Loss: Rs 935
Short-term trend reversal after breakout above Rs 925 has reinforced bullish trend in the counter with immediate resistance seen at Rs 1,000. This up move has been supported with good buying volume activity, along with positive crossover in RSI.
Bullish
Last Close: Rs 951.7
Target: Rs 1,000
Stop Loss: Rs 935
Short-term trend reversal after breakout above Rs 925 has reinforced bullish trend in the counter with immediate resistance seen at Rs 1,000. This up move has been supported with good buying volume activity, along with positive crossover in RSI.
ITC
Recommendation: Buy
Upmove
Last Close: Rs 193
Target: Rs 203
Stop Loss: Rs 189.5
On the daily chart, ITC has signalled a 'symmetrical triangle' breakout above Rs 190, thus putting an end to its consolidation phase and is likely to be followed with sharp up move towards Rs 205. The recent out-performance by ITC against broader markets could accentuate further aboveRs 190, accompanied by fresh buy signal from MACD.
Upmove
Last Close: Rs 193
Target: Rs 203
Stop Loss: Rs 189.5
On the daily chart, ITC has signalled a 'symmetrical triangle' breakout above Rs 190, thus putting an end to its consolidation phase and is likely to be followed with sharp up move towards Rs 205. The recent out-performance by ITC against broader markets could accentuate further aboveRs 190, accompanied by fresh buy signal from MACD.
GCPL
Recommendation: Buy
Positive
Last Close: Rs 418
Target: Rs 438
Stop Loss: Rs 400
Breakout from 'inverted head & shoulder top' on Monday has ignited bullish momentum in the counter. With dual buy confirmation from RSI as well as MACD, the risk reward ratio remains tilted with positive bias. In the near-term, the stock could attempt to touch its all time high
GAIL
Recommendation: Sell
Negative
Last Close: Rs 445.5
Target: Rs 423
Stop Loss: Rs 453
The recent pullback in the counter after testing troughs of Rs 412 has stalled near its 78.6% retracement levels which are placed at Rs 450. A formation of 'shooting star pattern' appearing at resistance levels near the falling resistance line embarks negativity.
Negative
Last Close: Rs 445.5
Target: Rs 423
Stop Loss: Rs 453
The recent pullback in the counter after testing troughs of Rs 412 has stalled near its 78.6% retracement levels which are placed at Rs 450. A formation of 'shooting star pattern' appearing at resistance levels near the falling resistance line embarks negativity.
Bank of India
Recommendation: Sell
Overbought
Last Close: Rs 445
Target: Rs 430
Stop Loss: Rs 457
Prices retreating back after testing resistance of 200 DMA on Tuesday has led to formation of 'shooting star', indicating a short-term trend reversal along with uptick in volumes. Most of the oscillators are indicating an overbought position.
Overbought
Last Close: Rs 445
Target: Rs 430
Stop Loss: Rs 457
Prices retreating back after testing resistance of 200 DMA on Tuesday has led to formation of 'shooting star', indicating a short-term trend reversal along with uptick in volumes. Most of the oscillators are indicating an overbought position.
Jyoti Structure
Recommendation:Buy
Market Price: Rs 86
Target Price: Rs 98
Traction in visibility in terms of order inflows makes Jyoti Structure attractive in terms of valuation. The stock is trading at inexpensive valuation of 6.5x and 5.6x on FY12E and FY13E EPS, respectively. We value the stock at 6.5x FY13E EPS and arrive at a target of Rs 98.
Market Price: Rs 86
Target Price: Rs 98
Traction in visibility in terms of order inflows makes Jyoti Structure attractive in terms of valuation. The stock is trading at inexpensive valuation of 6.5x and 5.6x on FY12E and FY13E EPS, respectively. We value the stock at 6.5x FY13E EPS and arrive at a target of Rs 98.
Apollo Hospitals
Recommendation: Buy
Market Price: Rs 492
Target Price: Rs 545
The stock is currently trading at 17.0x and 14.5x its FY11E and FY12E EV/EBITDA. During our forecast period, we expect revenue CAGR of 22% on account of healthy sector outlook. Hence, we remain positive on the stock, valuing it at 16.5x FY12E EV/EBITDA.
Market Price: Rs 492
Target Price: Rs 545
The stock is currently trading at 17.0x and 14.5x its FY11E and FY12E EV/EBITDA. During our forecast period, we expect revenue CAGR of 22% on account of healthy sector outlook. Hence, we remain positive on the stock, valuing it at 16.5x FY12E EV/EBITDA.
Praj Industries
Recommendation: Buy
Market Price: Rs 73.5
Target Price: Rs 82.0
Orders are flowing in from international markets and there is an increase in demand for ethanol. At CMP, the stock is trading at 12.8x its FY13E EPS of 5.5. With an increase in orderflow from international markets and demand for ethanol, we are valuing the stock at 11x its FY13E EPS of |5.5 and the cash value per share of 21, assigning it target of 82.
Market Price: Rs 73.5
Target Price: Rs 82.0
Orders are flowing in from international markets and there is an increase in demand for ethanol. At CMP, the stock is trading at 12.8x its FY13E EPS of 5.5. With an increase in orderflow from international markets and demand for ethanol, we are valuing the stock at 11x its FY13E EPS of |5.5 and the cash value per share of 21, assigning it target of 82.
Everest Kanto Cylinders
Recommendation: Buy
Market Price: Rs 87
Target Price: Rs 97
With petrol prices constantly rising and growing demand of cylinders in Dubai, China and India, we expect EKC's volume growth to remain intact. We expect the company's earnings to improve going ahead. Hence, we have valued the stock at 10x its FY13E EPS ofRs 9.7
Market Price: Rs 87
Target Price: Rs 97
With petrol prices constantly rising and growing demand of cylinders in Dubai, China and India, we expect EKC's volume growth to remain intact. We expect the company's earnings to improve going ahead. Hence, we have valued the stock at 10x its FY13E EPS ofRs 9.7
McLeod Russel
Market Price: Rs 270
Target Price: Rs 300
With tea production expected to remain stagnant in India and concern about lower production in Kenya and Sri Lanka, we believe tea prices would be higher FY12. Also, with higher volumes being sold by McLeod led by its acquisitions in Vietnam and Uganda would lead to higher profitability in FY11.
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