Support: 6250 / 6200.
Today's call: Buy Redington (India) Ltd at Rs.65-65.50 for a target of Rs.XXX (intra-day) and Rs.XXX, for the short term. Yesterday, there was movement in Rolta Ltd which jumped from Rs.60 something to the CMP of Rs.74. This could be the next target of the Bulls. Exit Manappurram Finance Ltd (Rs.15.50) and Muthoot Finance Ltd (Rs.102.50) and invest the same funds here. The IT sector has started to look up once again following media reports that the INR could be again heading towards Rs.69-70 mark. Also, for the moment don't buy Suzlon Energy Ltd (Rs.9.70), because the correction is still not complete and the global situation for wind energy has still not improved much.
My recommended Dena Bank Ltd today touched Rs.63, the scrip was recommended around Rs.47-48. In the same vein, SEL Manufacturing Company Ltd, today touched Rs.3.93 and is now trading at around Rs.3.84. This scrip is expected to give stupendous returns going forward, as the textile prices have risen considerably during the last few months, especially the readymade garments. Also, the textile sector is more or less an export oriented sector, it will benefit from the depreciation of the INR against the USD.
BGR Energy Ltd today touched Rs.118, the scrip has an EPS of Rs.23.20 and P/E of only 5 against the Industry average of 12.67. Even if it gets a reasonable P/E of 9-10, the scrip should be trading above Rs.200. In the June, 2013 quarter, its total income came out to be Rs.821.32 against Rs.611.04 Y-o-Y, while its net profit in Q2FY14, came at Rs.37.36 Ct against Rs.33.66 Cr in Q2FY13. The EPS of the company for Q2FY14 was Rs.5.18 against Rs.4.66 in Q2FY143. This gives a natural yearly target of Rs.350-400. Buy the scrip before it moves away.