Web Exclusive: Five mid-cap stocks one can buy on decline

The broader markets continue to under perform the benchmark indices in deals today. The BSE Mid-cap index has slumped 0.73% to 6,655 and the small-cap index is down 0.87% at 6,649. Both the Sensex and the Nifty are trading flat with positive bias.

Meanwhile, the annual wholesale price inflation eased more than expected to 6.62% in January from 7.18% in December 2012.

Among the key mid-cap losers, TV18 Broadcast is the top dragger, down over 12%. India Ratings has a negative outlook for the media & entertainment (M&E) sector for H113, as moderate economic growth and cost reduction initiatives by corporates are leading to sluggish growth in advertising spending (ad-spend).

Opto Circuits (India), Network 18 Media & Investments, Financial Technologies (India), Ybrant Digital, Sintex Industries, South Indian Bank and Indiabulls Financial Services are other key losers, down between 4-8%.

Hindustan Oil Exploration Company (HOEC) has dipped over 6% to Rs 91 in opening trades after reporting net loss of Rs 529 crore for the quarter ended December 31, 2012 (Q3) due to impairment loss of Rs 571 crore. The oil exploration and production company had profit of Rs 4.82 crore in a year ago quarter.

Shares of Sahara Housingfina Corporation fell about 15% today after the market regulator Sebi froze bank accounts of Sahara Group companies yesterday.

Orchid Chemicals and Pharmaceuticals is trading lower by 4.4% at Rs 73.60 after reporting over seven-fold year-on-year (YoY) jump in its net loss at Rs 72.36 crore in the October-December quarter (Q3) due to lower operational income and higher interest cost.

Siemens is trading lower by around 3% each on the National Stock Exchange (NSE) after the exchange has decided to exclude these companies from its benchmark index Nifty from April 1.

Shares of mobile phone companies are under pressure on the bourses in late morning deals on reports that the government has demanding additional revenue share for spectrum usage. Reliance Communications and Idea Celluar are down by 4% each.

The overall breadth of the BSE mid-cap index remains weak as 179 stocks are declining while 63 are advancing.

STOCKS TO BUY

Says Ravi Nathani, Technical analyst, Nsetoday.com, “Ambuja Cements has resistance around Rs 197 & Ultratech Cement has resistance around Rs 1,990. Best trading strategy for near term traders would be buy on dips. Godrej Ind is a buy on dips with a target expected around 340.”

Kishor Ostwal, CMD, CNI Research adds, “Broader markets are under performing the benchmark and may continue for some more time as policies are against retail investors come back. I suggest buying IOC, Century Textiles, PFC and OBC for medium to long term perspective. I am extremely bullish on PSU banks as I understand govt is doing lot of reforms in power sectors. Tariff hike is in pipe line. This will revive PSU banks. OBC and Canara Bank should be the best picks in PSU banks.”