Sell Tata Motors, Delta Corp; Buy Areva T&D
Our picks for today are Delta Corp, Areva T&D and Tata Motors.
Tata Motors (Sell below Rs 760.50, target of Rs 740)
Tata Motors released late on Friday evening that its CEO of 18 months has resigned for personal reasons. The news is likely to be taken negatively by the market as the company desperately needed a strong leader to see it through these trouble times.
Areva T&D (Buy above 231.30, target of Rs 240)
Power sector companies involved in the distribution segment are likely to benefit from increased a series of tariff hikes being announced by various state electricity boards. Areva T&D one of the leaders in this segment is witnessing increasing buying interest.
Delta Corp (Sell below Rs 105.40, target of Rs 100)
Delta Corp moved up sharply on news of the company looking at selling a stake. The stock moved up sharply on opening but could not maintain the momentum and closed near the low of the day, in line with the market. Further weakness in the market can pull the stock down further.
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