Bull’s Eye – Day 3

Day -3

Markets have staged a smart recovery and some frontline stocks have seen very sharp upmoves; I must admit I was surprised by the amount that markets went up by.  Now it is time and will be good if we could consolidate at this 4950 level for the Nifty.  For Day-3 I choose 4 stocks from the midcap space from sectors that are staging a recovery.

 

 BUY   Titan   T  190.50    SL 182.50 
 BUY   Thermax  T 490.00  SL 470.00
 BUY   IL&FS Transport  T  193.50  SL 185.50
 BUY   Voltas  T 95.00  SL 91.00

 

 

Titan from the midcap momentum space is recovering from lower levels.  There is concern on the discretionary spending space but I think Titan will ride the storm. This quarter I expect revenues to be up 29% and profit in the range of 19%.  They are expanding Fastrack, Eyeplus and Helios at very rapidly.

Capital Goods sector is under pressure – but as the market starts to factor in a rate cut the sector will see improved performance.  A strong player within that space is Thermax, other stocks that could be looked include Voltas, which was beaten out of shape due to bad numbers in Q2 but is now recovering and I expect the stock to trade and consolidate at 105 levels fairly soon.

IL&FS Transportation is an interesting stock with good road projects underway; recently they were preferred bidders for a 49% stake in a Chinese Road project.  This is a one-off for the company and leads me to believe that it must have very good profitability as a project.

 

 

 

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