Bull’s Eye – Day 4

All the IT major numbers are out of the way.  The big news was the Reliance buyback tba on 20th Jan 2012, this news helped the stock rally 5% a move we haven’t seen in many days.  For me, in the game, Day 3 was not so good.  But that’s the game I guess…so here goes for Day 4

SELL

 

Escorts

 

T  74.50 

 

SL 77.00

 

BUY

 

Exide T 124.00 SL  119.20
BUY

 

Dish TV T  64.00 SL 62.00
BUY

 

ITC T 215.00 SL 207.50

 

I’m playing slightly defensive and have gone for smaller targets and stop losses and also in terms of stock selection I’m being a little conservative.

I sell Escorts on back of the news that some dispute has started at its factory. Earlier we have seen what such an issue can do to stock prices as in the case of Maruti.  While I hope that for Escorts the problems are smaller in magnitude and they are able to control them soon for now for me the stock is a sell.

I buy Exide the battery maker, bad results last quarter due to higher input costs, but the measures taken by the company should ensure that things get back on track in the fourth quarter.

Dish TV numbers are expected, some recovery seen there, also now that digitization will be a reality the kind of subscriber additions that these stocks are likely to see will be phenomenal.  Hathway Cables a stock I recommended on Monday has been the absolute star of the week. Can Dish TV be next?

The last buy is ITC, purely a defensive buy, in slightly unsure markets this stock is normally a contrarian, and even if it is not the stock is not very volatile and doesn’t see wild swings.

 

 

 

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