New Stock Ideas

Wednesday, May 07, 2008 | | |

USHA MArtin investment idea Buy for short term target 125.Long term 250.Stop loss 96.

Alex Mathew, head research centre, Geojit Financial Services, said we were witnessing a range bound market with crude riding high and rupee at multi month low. Crude oil prices were lifting the oil exploration companies. Cairn India, Reliance industries, Aban Offshore, Dolphine offshore, Shiv Vani oil, Hindoil Exploration and Solar Exploration were in good demand. Normally higher crude prices may help oil exploration companies to get new contracts.

Sugar stocks and futures were in good demand on short covering seen in Shree Renuka sugar and Balrampur Chini which were moving up.

IT stocks like Infosys, TCS and Mastek moved up on firm dollar, rupee has fallen to a low of 41.41 and likely to test further and will have a positive impact on exporting companies.

General outlook for the market remains subdued and likely to get strong support at 5085. If market remains in a range, fresh buying can be seen after tomorrow. On the other hand a fall below 5085 is a concern for the market. Resistance for Nifty will be at 5220 in the short run.

Buying interest will resume in Reliance Industries HDFC, M&M, Cairn India etc. On the other hand oil refining companies and steel stock may face some sell off at higher levels.

Nifty PC ratio is raising and Nifty volatility has been steady declining, which can give strong support to Nifty in the short run

Anmol Sekhri, fund manager, Bonanza Portfolio, said the fact that the market starts recovering after going down shows presence of value buying and those funds are waiting on the sidelines. One can expect this will go on for a while till there are fresh triggers and of course result linked and fundamentals based action will continue