Tuesday, 8 September 2009

Buy Rei Agro with stoploss of Rs 46: Gujral

One can buy Rei Agro with stoploss of Rs 46, says Technical Analyst, Ashwani Gujral.

Gujral told CNBC-TV18, "REI Agro is at a great price to buy because all the drought concerns everything has now discounted. At Rs 99 that was a sell price, I doubt whether that will come. If one can buy now the current purchase will yield profit, the stop loss is quite close around Rs 46. It could get to targets of Rs 62 and Rs 69. All these people who like to call themselves investors, you need to buy at good price to be an investor. You don’t buy stocks which are in frenzied mode and then hold on for three years thinking you are an investor. So people need to be careful when they buy stock."

Source: MoneyControl

Buy Hindustan Unilever, target of Rs 303: Sharekhan

Sharekhan has upgraded its rating on Hindustan Unilever from hold to buy with a target price of Rs 303 in its September 7, 2009 research report.

"The positive results of the corrective actions implemented by the company at the mass end and the expectations of a better rabi crop would lead to a pick-up in the sales volume of HUL in the coming quarters. These two factors would considerably ease the risk of a poor performance owing to any slackening in rural consumption due to a poor kharif crop, which had been overhang on the stock. Consequently, we upgrade our recommendation from 'Hold' to 'Buy'. We maintain our price target of Rs 303," says Sharekhan's research report.

Oil India IPO overbid 1.41 times: Should you subscribe?

Oil India Ltd. (OIL), the second largest oil and gas company in India, opened its initial public offering (IPO) of 26.45 lakh equity shares of face value Rs 10 each for subscription today. Its issue price has been fixed at Rs 950-1050 per equity share and it will raise around Rs 2,512 - Rs 2,777 crore.

It has been subscribed 1.41 times so far and has received bids for 3.72 crore shares as against issue size. Till yesterday, its QIB (qualified institutional investors) portion subscribed 2.3 times.

Moneycontrol.com conducted a poll among market experts to find out if you should subscribe to the issue or not. While most experts say 'subscribe', SP Tulsian and Sajeev Dhawan say 'avoid'. Moreover, those who advice to subscribe believe that this will be a long-term bet.

Source: MoneyControl

Frontliners to rally further, midcaps won't: Morgan Stanley

Narayan Ramachandran of Morgan Stanley says that the industrial production (IIP) data as well as economic indicators are showing positive signs, which is helping the markets move higher. "They have broken the upside range," he says, adding that the markets can rally another 10-15% from here. However, he feels that the mid-caps may not outperform going forward.
Ramachandran says he would not buy commodities for the long-term. "Gold remains hedge in every portfolio."

Source: MoneyControl

Buy United Phosphorous, target of Rs 225: Sharekhan

Sharekhan has maintained its buy rating on United Phosphorous with a target of Rs 225 in its September 7, 2009 research report.

"We have fine-tuned our earnings estimates to factor in the details from the annual report of the company. At the current market price the stock trades at 11.0x and 9.1x its FY2010E and FY2011E earnings respectively. We maintain our 'Buy' recommendation on the stock with the price target of Rs 225," says Sharekhan's research report.

DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.