Web Exclusive: Stocks to buy & sell from Midcap space

Key share indices are trading volatile in a narrow range, oscillating between negative and positive terrain. The Sensex is up 17 points at 19,700 and The Nifty is higher by 10 points at 5,955. The broader markets are however outperforming the benchmark indices.

The BSE mid-cap index has advanced 0.37% or 6,511 and the small-cap index is up 0.33% or 21 points at 6,355.

The advance decline ratio in BSE Midcap space is positive as 154 stocks advancing while 93 declining.

Amtek Auto is the top gainer from the mid-cap pack. The stock has jumped 7% to Rs 76 after the company said it has acquired NeumayerTekfor Group of Germany for Rs 2,717 crore.

Aviation shares are trading higher after the Cabinet Committee on Security on Friday, 8 March 2013, cleared Flexible Use of Airspace by civil and military users. Jet Airways and SpiceJet have gained by over 3%.

Realty shares are trading higher on hopes of revival of new home sales post the Budget proposal for additional tax deduction for new home loan borrowers up to Rs 25 lakhs. Further, hopes of a rate cut by the central bank at its policy meet next week has also boosted sentiment.

Unitech was the top gainer up 3.1%, DLF gained 2.4%, Indiabulls Real Estate rose 1.3%, Oberoi Realty was up 1.2% and Godrej Properties was up nearly 1%.

Pantaloon Retail (India) is trading higher by 2.3% at Rs 189 after the debt-ridden company said that it is planning to sell its 22.5% stake in Future Generali Life Insurance to Mumbai-based non-banking finance company Industrial Investment Trust Ltd (IITL).

Navneet Daga Derivative Analyst, KR Choksey Securities, “Pantaloon is news based short covering happening but we are seeing shed in OI today and stock is up, it can move a bit more on short covering, while Unitech is building base now near 27 levels, options data suggest strong support zone near that levels and upside is limited currently to 30 zone”.

Other notable Midcap gainers are Opto Circuits (India), Unichem Laboratories, Birla Corporation, Ybrant Digital, Crompton Greaves, TV18 Broadcast and Jain Irrigation Systems, all gaining between 4-7%.

STOCKS TO BUY & SELL

According to Navneet Daga Derivative Analyst, KR Choksey Securities, “Titan, PFC, Century Textiles look weak and should be used to short with 5% downside from here on. Renuka Sugars on charts looking a bit strong of possible move towards 29 levels in short term.”

Adds Gaurav Ratnaparkhi, technical analyst, Sharekhan, “IT stocks have done fairly well recently especially the mid cap stocks. Some of them are still looking good. The one that I like on the long side is Hexaware. Hexaware is trading in an upward sloping channel & within that it has broken out on the upside from a bullish triangle. Key support is at 90, whereas resistance is at 95 & overall the stock can move up till 98.

ABB, Crompton Greaves and Siemens seem to have created a strong base for themselves atleast from short term to medium term perspective & there is significant upside potential in these stocks”.

Britannia is already in pullback mode, Support: 520, Resistance: 550, Target 575. GSK Consumer is clearly in an up trend, support: 4162, Resistance: 4391, Target 4,500”.

Alex Mathews, Head of Research, Geojit BNP Paribas Financial Services says, “One can buy Puravankara Projects and Godrej Properties from current levels”.