Stocks to buy today (funda Techno picks)

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Ravi
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Stocks to buy today (funda Techno picks)

Post by Ravi » Mon Feb 06, 2017 5:02 pm

LIC Housing Finance (CMP: Rs 559; Target: Rs 693):

As 50 % of borrowers are government employees, the company expects significant growth as a result of seventh Pay Commission disbursement.

Angel Broking L&T (CMP Rs 1,480; Target Rs 1,634):

Going forward, we expect the com pany to report healthy top-line and bottom-line growth on the back of execution of domestic orders. Order prospects continue to remain strong.

Alkem Laboratories (CMP: Rs 1,803; Target: Rs 1,989):

Strong growth seen in domestic business due to its leadership in acute therapeutic segment.

Bajaj Electricals (CMP: Rs 250; Target: Rs 274):

It has seen improved profitability backed by turnaround in E&P segment; strong order book lends earnings visibility .

IDBI Capital Coromandel International (CMP: Rs 338; Target: Rs 410):

The company will benefit from the government's focus on agriculture.

Siemens (CMP: Rs 1,187; Target: Rs 1,290):

Siemens has an asset-light business model in rolling stocks.

Thereby, increasing the prospects of new orders with high profitability.

Prism Cement (CMP: Rs 104; Target: Rs 125):

It has a cement plant capacity of 7 mtpa in the region where the government has announced low-cost housing. Also,affordable housing getting an infrastructure status will benefit the firm. Nifty witnessed an excellent upmove in the last two weeks and moved into new swing high of around 8757 levels on Thursday.

Over the last 5-6 weeks, we observed formation of more number of long bull candles on the way up and relatively small bear candles during declines or minor corrections.One day weaknessdownward reversals have not seen followthrough moves so far. This pattern is displaying an inherent strength in the market and indicates more upside for near term.

As per weekly timeframe, a bull candle has been formed last week with long lower shadow, indicating an emergence of buying interest from the lows. Nifty is now advancing towards the next important resistance of down sloping trend line (connecting the top of 9119-March-15 with 8968¬Sept 16) around 8925 levels.

What could investor do?

The underlying trend for Nifty as per smaller and larger timeframe is up and some more upside is likely for the next couple of weeks. The next upside levels to be watched is around 8925-9000, which could be achieved in the next 2 or 3 weeks.

Sectorally, PSU Banks, Metal, Realty, Pharma and FMCG are expected to perform in line with the index.
LIC Housing Finance (CMP: Rs 559; Target: Rs 693):

As 50 % of borrowers are government employees, the com pany expects significant growth as a result of seventh Pay Commission disbursement.

Angel Broking L&T (CMP Rs 1,480; Target Rs 1,634):

Going forward, we expect the com pany to report healthy top-line and ANIRBAN BORA bottom-line growth on the back of execution of domestic orders. Order prospects continue to remain strong.

Alkem Laboratories (CMP: Rs 1,803; Target: Rs 1,989):

Strong growth seen in domestic business due to its lead ership in acute therapeutic segment.

Bajaj Electricals (CMP: Rs 250; Target: Rs 274):

It has seen improved profita bility backed by turnaround in E&P segment; strong order book lends earnings visibility .

IDBI Capital Coromandel International (CMP: Rs 338; Target: Rs 410):

The company will benefit from the government's focus on agriculture.

Siemens (CMP: Rs 1,187; Target: Rs 1,290):

Siemens has an asset-light business model in rolling stocks.

Thereby, increasing the prospects of new orders with high profitability.

Prism Cement (CMP: Rs 104; Target: Rs 125):

It has a cement plant capacity of 7 mtpa in the region where the gov ernment has announced low-cost housing. Also, affordable housing getting an infrastructure status will benefit the firm. After hitting the lows around 6825 last year on the Budget day, the Nifty did move onto the high of 8925 in September 2016.However, it failed to cross onto the all-time highs of 9119 that it had created in March 2015. The fact that Nifty has already crossed above the 61.8% retracement level of this recent down leg with quiet a pomp and sustained it on weekly basis speaks of the strength of the markets.

What is in store?

By the logic of higher tops & higher bottoms, the market may climb onto new highs over next 1-2 months. A gradual rise is what we expect from here on, with intermediate corrective moves that may give an opportunity to buy on dips. The immediate hurdles are placed at 8840, followed by the previous swing high of 8925. On the flip side, this week's low at 8537 and the 3-week low at 8327 would be the levels to watch-out for on the lower side.

What could investors do? We feel the markets would continue to remain in a rational uptrend going ahead, and it would be prudent to ride it.The strategy to book profits as and when they come around the hurdles mentioned above would give the tactical edge. Also, it would be a good idea to buy on dips around the supports, as & when the corrections occur.

AK PRABHAKAR, HEAD OF RESEARCH, IDBI CAPITAL MARKETS & SECURITIES

Nifty has crossed 8560 and made a high of 8757 with one of the fastest rallies in the last nine trading days from low of 8327 to 8757, the best weekly rally in 7 months. Till Nifty doesn't breach 8525 then rally can even extend to 8870 or 8960 levels.In case recent high 8968 are crossed, then I would assume worst is over, otherwise still time-wise correction is pending. If Nifty goes below 8520 then correction can get deeper and retest of 7890 could be on cards.

Coromandel Intl, Supreme Ind, Astral Poly,NBCC, PowerGrid, Engineers India, Prism Cement, Cipla, Zee, ITC, are few of our picks.
The market has seen a two short covering rallies -one led by derivative settlement and other by Budget, which didn't announce anything negative. RBI policy meet and Assembly elections are unknown factors, which can impact market either way. Investors should always buy quality stocks asliquidity is helping market in a very big way.
Never give up your dreams

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