Thursday, December 9, 2010 Trading strategy for 3 buzzing stocks

In an exclusive interview with, Prashanth Tapse, Sr. Research Analyst, Mehta Equities gave views on 3 buzzing stocks on Dec.8, 2010. The same are as follows:


Shares of the packaging company declined Rs 31.95, or 16.39%, to settle at Rs 163. The total volume of shares traded was 5,902,878 at the BSE (Wednesday). It touched a high of Rs 180 and a low of Rs 156.

Prashanth Tapse: Investors continued to reduce exposure in packaging firm UFlex even after company clarified that the conviction of its chief Ashok Chaturvedi in a land-allotment case was in his personal capacity and will not have any financial implication on the company. Technically the chart is negatively biased with no clear sign of recovery in the counter. We expect Uflex to settle down anywhere between 150-155 levels. Hence we stand neutral until and unless there is a clear signal on either side.


Shares of the oil marketing company gained Rs 13.4, or 3.38%, to settle at Rs 409.95. The total volume of shares traded was 442,495 at the BSE (Wednesday). It touched a high of 415.70 and a low of Rs 398.

Prashanth Tapse: Oil marketing firms are in action ahead of reports saying that the Government may consider a marginal hike in petrol and diesel following the recent spike in crude oil prices. Also, reports suggest that the Government would pay Rs. 130bn to public sector oil marketing companies as cash compensation for selling fuels below cost. Technically Rs 422 acts as a strong resistance level and any fresh position should be traded with a target of Rs 460 and stop loss of Rs 488 for medium term. Overall sector trend remains positively biased in the medium term.


Shares of the cement maker gained Rs 16.2, or 1.63%, to settle at Rs 1,010.50. The total volume of shares traded was 111,608 at the BSE (Wednesday).

Prashanth Tapse: We believe ACC`s newly commissioned capacities will benefit to give better volume growth and expect the company to report good growth in dispatches for next fiscal; this can outperform the industry expectations. On cement demand we are bullish and expect industry to report 10-11% growth in FY11E. Even we anticipate the prices to improve further from current levels. We see good positive trend building up along with good volumes on the weekly chart which indicates bullish momentum in the stock. At CMP of Rs 1,012, stock trades at valuation of USD 140 and USD 130 EV/Tonne for CY11E and CY12E respectively. Hence we recommend ``Accumulate`` with a price target of Rs 1,113, upside of 10% from the current levels.


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