Market view & Stock Picks--- Happy Diwali

[Prabhakar A.K]

Nifty (6299) - Nifty has closed highest ever on monthly closing basis and now 6312 above close would become highest ever close on daily & weekly basis if that happens today. Nifty all time highest close is 6312 made on 5^th November 2010 and all time high 6357 made on 11^th January 2008. Today if Nifty holds 6260 then rally for the week ahead of Diwali is sustainable and we can target 6357 & 6425 on higher side, in case Nifty corrects below 6260 then 6220 & 6190 are good support levels.

 

CNX PSUBANK-2482 has rallied 7.4% and Indexed closed highest level in 65trading days and concern about asset quality is overdone is the feeling as pace of slippages is reducing. Results have also been above analyst expectation and PSU bank near 4years low and majority quoting below Book value.

 

News Impact

HCLTECH Rs.1095 - Increase in FII's investment limit from 30% to 49% of the paid up equity share capital of the Company. Stock holding above Rs.1064 then target of Rs.1178.45 which is all time high and Rs.1215 becomes possible in the stock.

TATAMOTORS DVR Rs.193, RBI permitted increase in FII investment limit through differential voting right shares up to 75 per cent. Stock near all time high of Rs.196.95, breaking which 8-10% upside possible.

 

M&M News http://www.mahindra.com/News/Press-Releases/1383133058  Ssangyong Motor Reports 837 Billion Won Revenue in Q3, Profitable for Second Consecutive Quarter

The eight core industries, recorded 8 per cent growth in September, the highest in the last 12 months.

Break-out after strong consolidation

DENABANK Rs.53.80- Stock has consolidated for last 62trading days below Rs.54 making a good bottom formation and any Break-out above Rs.55 then Rs.62 becomes possible.

Market cap Rs.1883crs Book Value-164 Price to book 0.33times 12Month trailing EPS-21.74 and result on 9^th November 2013.

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A.K.Prabhakar