Myiris: Trading strategy for 3 buzzing stocks

Myiris: Trading strategy for 3 buzzing stocks

In an exclusive interview with Myiris.com, Prashanth Tapse, Sr. Research Analyst, Mehta Equities gave views on the following stocks for Dec. 29, 2010:

Gitanjali Gems:

Shares of the diamond jewellery manufacturer and retailer gained Rs 15.10, or 7.64%, to settle at Rs 212.75. It touched a high of Rs 217.40 and a low of Rs 200.20. The total volume of shares traded was 3,425,860 at the BSE (Wednesday).

Prashanth Tapse: Gitanjali Gems (Q,N,C,F)* gained momentum in last couple of days mainly on the back reports says that the jewellery-maker plans to raise USD 100-150 million through the sale of an 8-10% stake to private investors. The upsurge was also supported by recent news on acquisition of a 90% stake in Milan-based Glantti Italia from its Dubai-based, wholly owned subsidiary - Gitanjali Ventures DMCC - for an undisclosed amount. Technically the stock is likely to outperform the broad market and expect 10% to 15% more upside from the level. Fresh position should be traded with a stop loss of Rs 200 with a medium term target of Rs 240-250.

Nitin Fire Protection Industries:

Shares of the fire fighting equipment manufacturer gained Rs 2.7, or 3.48%, to settle at Rs 80.25. It touched a high of Rs 194 and a low of Rs 182.10. The total volume of shares traded was 266,016 at the BSE (Wednesday).

Prashanth Tapse: We believe CIL is well placed to benefit from growing demand for CNG cylinders in India. Today the stock was in action on the back of reports stating that US-based Worthington Industries has picked up 60% stake in Nitin Cylinders, a wholly-owned subsidiary of Nitin Fire Protection Industries, for around USD 21 million. After the deal, the subsidiary will turn into a joint venture between Nitin Fire and Worthington which is in the business of manufacturing pressure cylinders. Technically we expect the stock to consolidate at these levels or even test 74 before taking any fresh upward move. Hence we advice traders to buy with a medium term target of Rs 88-90.

Maytas Infra:

Shares of infrastructure development, construction and project management companies gained Rs 5, or 2.81%, to settle at Rs 182.70. It touched a high of Rs 194 and a low of Rs 182.10. The total volume of shares traded was 233,473 at the BSE (Wednesday).

Prashanth Tapse: Maytas Infra gained momentum on the back of reports says that it has bagged a road widening contract from the government of Nagaland. The total value of the contract is worth Rs 11.31 billion in a joint venture with Gayatri Projects. Technically the stock is in narrow range with no clear trend on charts. Hence, it is better to avoid this stock because lot of better stocks in the infrastructure midcap space is available. Any run-up in the stock could be used as exit option in the counter.

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.