Quick updates- II

RBI’s actions buoyed the markets and nifty closed nearly 2% up from yesterday.
JP associates (recommended yesterday) has reached its short-term target. The stock has broken resistance levels and therefore is expected to go higher.
RPL (recommended yesterday) also broke the 200 psychological mark and should move towards its short-term target.
Maruti also reacted positively to RBI news and is expected to inch up only.

Indiabulls securities has declared a dividend of Rs 7.5 per share. If approved by the board, given CMP 137.75, this is a tax-free return of 5.4% on capital invested at CMP. The stock has run up almost 10% each day in the past 4 trading sessions. This stock while a high risk, continues to be a good intra-day pick.
Another short-term pick is RNRL. At CMP of 126.85, one can hold the stock for target of 130-135.
BHEL is another under performer. The stock has been languishing for quite sometime. Expect BHEL to touch 2000 in a few trading sessions. This would also be a good long-term hold.

Quick updates

Long-term pick - Maruti Udyog is very close to its 52-week low of 700. Closing at 722.35 yesterday, MUL is a good long-term buy. Immediate support/resistance is seen at 700/760. Stock has been beaten down in recent times due to accelerated depreciation policy. Recommend as the best bullish play right now in the auto sector with at least 30% upsides in the long-term.
The stock is fundamentally strong with the largest market share (50%) in the petrol segment and innovative product line (new product launch ~ every 6 months). Key risk seen from competition to its small-car segment from Tata’s Nano, rising input costs.

Short-term punt – RPL has been showing strong upward trend in recent weeks. For high-risk traders, above 200, RPL is expected to rise to 210-215 levels in the short-term.

Short-term punt – JP associates closed at 251.5. Stock has run up in the last few weeks quite aggressively from 220 levels. Short-term target of 265.

In view of RBI policy today, and Fed meet tomorrow, we expect markets to be volatile. RBI policy will be key determinant of how markets behave today. Support/Resistance seen at 5000/5050 and 5140/5200.