Tuesday Market Updates: Sensex Climbs

On Tuesday the Indian Stock saw a climb on its’ radar, with Sensex stopping at16065.42 and benchmark NIFTY at 4812.35. Considering the market here are few updates on particular shares to be taken and sold.

One should stay away from VIP Industries . But if Titan falls below Rs 180 then stock can add 10% in next one month or so. Totally give a pass to VIP Industries. It doesn’t justifies the valuation of Rs 75 considering their major component of import and the way currency has depreciated. But if Titan falls below Rs 180, one can take a call from a technical and fundamental basis with a view to earn about 10% in next one month or so.

Arvind Mills has to move in the range of about Rs 85-95 and keep negative stance on Bombay Rayon.

Taking an individual call, Arvind Mills has to move in the range of about Rs 85-95. There isn’t much of a upside. It will be difficult for the stock to even breach three digit marks considering the expected EPS of Rs 10. S Kumars has taken much more hammering than required. Even their financial performance has been a disappointment. But there were some financing issues. The promoters say that everything has been offered to the collateral. It is not exactly directly in respect to the promoter share but there are definitely in the system the huge amount of shares having pledged and the finance have been availed against that.

Bombay Rayon is very cautious. Here one has to see the difference between cash and future and option. Future and option is ruling at a discount of Rs 25 and that kind of discount being offered is warranted. That means the future view on the stock is very negative. Whenever any kind of news comes in the stock can fall below Rs 230-240. This can be seen as price management but with Bombay Rayon considering the difference in F&O. Cash is ruling at Rs 286, F&O is ruling at around Rs 260, so that’s a clear-cut case of negative view on the stock going ahead.

Suzlon Energy has strong support at Rs 20. The words were little comforting and the projections were given by the management seems to be ambitious. They said that they will be having debt equity of 1 by FY13 year end which means by March 13 that is 18 months from now. If they are able to achieve that, it will be a big positive for the stock. But doubts that market will accept that so quickly. So, near term concerns will remain.

It’s been recommended to hold rating on Cadila Healthcare with a target price of Rs 778, in its November 19, 2011 research report.