Indian Ticker : Choose Right Stocks that Ticks Money

On the economic front, Indian Government has taken a firm stand on the issue of the differential duty structure for assembled vehicles stating that it does not intend to review its decision to not lower the import duty under any circumstances what so ever. While the duty before the budget stood at 10%, the government increased it to 60% (which was then brought down to 30%) along with modifying the definition of Completely Knock Down (CKD) units that are assembled in India.

The import-duty on fully-built vehicles, at present, is 60% but taking other levies into account, – counter vailing duty (CVT), VAT etc- total rises up to 110%. The issue has received a mixed response from the industry. While SIAM and most local players, including foreign companies who”ve set up manufacturing units in India, believe that lowering the duty would inhibit the growth of the automobile industry in India as there would be no incentive to invest heavily in setting up manufacturing facilities; luxury car makers like AUDI, BMW and Mercedes are lobbying to get the tariffs reduced.

On the corporate front, Anglo-Australian mining giant Rio Tinto Friday said it would buy up the remaining shares in Riversdale Mining, after acquiring Tata Steel’s stake in the Africa-focused company.

Maruti Suzuki India (MSI) gained over 3% in morning trade on the bourses today after the 13-day strike at its Manesar plant was called off late yesterday.

The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total shares traded 2721 , shares advanced were 1073 while 1524 shares declined and 124 were unchanged.

The top losers of the BSE Sensex pack were Infosys Ltd. (Rs. 2743.45,-2.04%), Tata Consultancy Services Ltd. (Rs. 1130.60,-1.83%), Oil And Natural Gas Corporation Ltd. (Rs. 265.35,-1.45%), Hindalco Industries Ltd. (Rs. 171.00,-1.30%), Mahindra & Mahindra Ltd. (Rs. 650.20,-1.22%), among others.

In BSE, BSE_IT index was at 5832.98 down by -101.04 points or by -1.7%. Infosys Ltd. (Rs. 2743.00,-2.05%), HCL Technologies Ltd. (Rs. 479.10,-1.92%), Tata Consultancy Services Ltd. (Rs. 1130.60,-1.83%), MphasiS Ltd. (Rs. 448.10,-0.73%), Oracle Financial Services Software Ltd. (Rs. 2245.10,-0.64%),.

In BSE, BSE Oil&Gas index was at 9024.7 down by -92.35 points or by -1.01%. Oil And Natural Gas Corporation Ltd. (Rs. 265.40,-1.43%), Reliance Industries Ltd. (Rs. 877.70,-1.16%), Bharat Petroleum Corporation Ltd. (Rs. 623.05,-1.06%), Petronet LNG Ltd. (Rs. 142.05,-0.87%), Cairn India Ltd. (Rs. 330.45,-0.71%),.

The leading Asian bourses are trading negative as Hang Seng, Nikkei 225 and Shanghai Composite trading up by 0.53%, 0.64% and 0.39% respectively.

All the headlines were stating that the RBI raised the repo-rate and the reverse repo, but it seems evertone forgot that the bank had stated in its policy paper at the start of the yeat that repo and repo rate will maintain the difference of 100 basis points. Which essentially means that each time the RBI decision will affect both the rates simultaneously. Moving forward, we bring to you today’s recommendation from the experts on different stock.

Rakesh Mehta, Research Analyst, Fullerton Securities and Wealth Advisors, recommended the following stocks in Economic Times.

Idea: The recommendation on this telecom stock is buy with a target price of Rs 80 and a stop loss at Rs 72. The stock tips has given a positive breakout above Rs 70 after forming a strong base at around Rs 60. It is trading above its important moving averages while the weekly MACD has moved in to positive territory, indicating strong momentum.

Punj Llyod: The recommendation on this stock is buy with a target price of Rs 80 and a stop loss at Rs 66. The stock is showing good resilience at lwer levels. A strong intermediary base around Rs 60 provides support to the stock. All momentum indicators are in the oversold zone. Which indicates there is limited downside.

Bombay Dying: Mehta’s recommendation on this stock is buy with a target price of Rs 355 and a stop loss at Rs 400. The stock currently trades at a lower band of the long-term symmetrical triangle formed on weekly charts. Momentum indicators are in teh oversold zone an the stock may retrace back to the upper band of the triangle. The target is Rs 400.

Godrej Idustries: Mehta recommends this stock as buy with a target price of Rs 188 and a stop loss at Rs 225. The positive momentum build in the stock around the important support of Rs 150 can take the stock to around Rs 225 in the near term. Consistent close above the vital long-term moving averages has improved the probability of momentum sustainability.

Bank of Baroda: Here the recommendation on this stock is sell with a target price of Rs 900 and a stop loss at Rs 800. On Weekly charts, the MACD has turned negative after a very long time signaling, that the momentum is subsiding. The time is ripe for some profit-booking. The immediate resistance lies around Rs 900. Which could act as stoploss.

Meanwhile, for intraday trading tips for  Sharegyan recommeds Aurobindo Pharma to sell below Rs 174 with a target price of Rs 169 and a stop loss at Rs 177.

The website, technicalanalysisofstocks, recommends to buy the stock of DS Kulkarni Developers for a target price of Rs 64 and a stop loss at Rs 56.

Firstpost have picked Tata Steel, SBI, REC, Petronet, Pantaloon, Hero Honda, Bajaj Auto, Lupin and Punj Loyd as the 9 stocks of the day.

Regards,

commoditytipsexpert team

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