The 9 stocks below are the picks for the day across small-, mid- and large-cap companies that offer a wide array of choices to retail as well as long-term investors.
Multinational pharmaceutical companies have traditionally been considered as safe stocks and the best hedge in a falling market. This seems to be true this time, too. Glaxo is trying to cross its all-time high level of Rs 2,435 scaled in January 2011 and attempted the same again a week ago. The stock hit a high of Rs 2,412 on Friday and closed the day at Rs 2,402. If the stock crosses the previous high, it can hit Rs 2,550.
There is considerable interest in SKF after its management explained the benefits of expansion and diversification and gave an outlook of steady margins at its analyst meet. The stock has earlier tried to breach the previous high, but missed it by a whisker. It is likely that the stock can cross the high and move to a new range. We expect the stock to touch the Rs 675 mark provided it penetrates the previous high of Rs 655.
Divi's Laboratories jumped sharply after it announced that it was planning acquisition in the biotech space. The news, however, was not enough to propel the stock to a new high. It does, however, look ready to do so over the next few days and can scale the Rs 825 level once a new high above Rs 788 is achieved.
Jain Irrigation has attempted to breach the yearly low range of around Rs 152-154 for the third time in four months. Though it saw some buying support during the first hour of Friday, it could maintain the momentum and closed near the low of the day at Rs 156.20. This time around, given the market sentiment and higher volume during the decline, we believe this level will be breached and the stock can come down to the Rs 140 mark.
L&T has been pushing to cross the Rs 1,736 level for the last one week, but has been unsuccessful in doing so. On Friday, too, the stock attempted to cross the line in the first hour, but saw higher selling pressure, which dragged the stock down by 1.85% to close near its low of Rs 1,694. The stock can go further down to Rs 1,625.
For nearly a week, MRPL has been moving to cross the Rs 78 benchmark. However, the stock has been meeting with selling activity at these levels, though on lower volumes. The company has further been affected by delays on its project, which is leading to a loss of Rs 80 crore a month. The stock closed lower by over 2% on Friday with a potential of sliding to Rs 73.
We had given a sell call on Reliance Communications on Friday below Rs 92.20. The stock plumbed to a low of Rs 91.80 on Friday and closed the day at Rs 92.50. We have a target of Rs 80 for the stock, which will be maintained.
Our sell call on IDFC was activated below Rs 133.85. The stock slipped to a low of Rs 132.55 on Friday and closed the day at Rs 133.35. We have a target of Rs 128 for the stock.
We were bullish on Idea Cellular above Rs 72.15. On Friday, it went up to a high of Rs 72.95 and ended the day at Rs 71.85. We maintain our price target of Rs 77 and keep a stop loss of Rs 71.50.
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Published Date: Jun 13, 2011 06:48 am | Updated Date: Dec 20, 2014 01:41 pm