Auto ancillary Steel Strips & Wheels has reported a sharp increase in sales of wheel rims for last two months indicating that good times are back. After commissioning of the new plant in Jamshedpur, its turnover will increase two-fold.
Buy on declines for a target price of Rs 125 in medium term.
Select counters which attracted selling PTC, Punj Lloyd, Orchid, TechMahindra and Dish TV are expected to bounce back to Rs 94, Rs 285, Rs 145, Rs 950 and Rs 49.
Sentiment indicators cle-arly indicate that 4,700 level will hold support in the near term.
Among the sectors that witnessed long build-up were banking, pharma, metals and autos.
A correction is likely in IT, realty, sugar and cement counters.
Metal stocks have attracted good buying interest on the back of rise in metal prices on LME. Reports of a turnaround at Corus have given fillip to Tata Steel counter. Buy on declines for a target price of Rs 540 in near term.
Stay invested in Sail, JSPL and JSW Steel for further gains.
Bank stocks have risen strongly after rerating by a foreign brokerage and also on expectations of improvement in margins due to likely hike in interest rates. Led by SBI, nearly all PSU banks witnessed a sharp rise in open interest. Vijaya Bank, Allahabad Bank, IOB, Dena Bank, Syndicate Bank and Andhra Bank look set to touch new short term highs. Stay invested for further gains. Mild correction not ruled out in private bank counters.
Looking good are Ranbaxy, Mphasis, GE Shipping, GVKPIL, Patel Engg., BEML, Indusind, IFCI, Lupin and Yes Bank for a price target of Rs 368, Rs 630, Rs 315, Rs 58, Rs 525, Rs 1,280, Rs 118, Rs 66, Rs 1,150 and Rs 200.
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