Tuesday, January 20, 2015
WINNING STROKES: THINK DIFFERENT
Allied Digital Ltd hit the buyer freeze yesterday and closed at Rs.32.85. The scrip reached all my short term target of Rs.31-32. It is time to book short term profits and wait for the scrip to stabilise before fresh positions can be taken. However, medium term investors can look for a target of Rs.41.
Veer Energy and Infrastructure Ltd (Rs.3.49) was recommended yesterday, after there were news reports that FPIs/FIIs are shifting to this sector. The scrip moved up with huge volume yesterday and closed with a gain of 10.79%, after touching an intra-day high of Rs.3.65. Moreover, the percentage of Deliverable Quantity to Traded Quantity was whooping 78.15%. The total quantity traded in the BSE was 5,21,576 and in it the Deliverable Quantity was 4,07,611. This shows that the investors are entering the scrip in bulk. Since the stock is near its 52-week low price and hence the downside is limited with the current set of fundamentals. Its 52-week high price is Rs.7.64 made on 12/06/2014. Earlier there were media reports that, Shruti Power Projects Pvt Ltd, a wholly-owned subsidiary of Veer Energy & Infrastructure Ltd, was sanctioned a loan of Rs.52.56 crore by the Indian Renewable Energy Development Agency (IREDA). This loan was sanctioned for setting up a 12 MW wind farm project, worth Rs.75.60 crore, at Vinjalpur village, Khambhalia (Gujarat). The new project is expected to generate additional revenue of Rs.12 crore per annum to the company by way of power generation. Veer Energy & Infrastructure is also expected to take the benefit of generation based incentive (GBI) as per the policy declared by the central government.
The stock of HOUSING DEVELOPMENT & INFRASTRUCTURE LTD, which was recommended around Rs.66-67, a couple of weeks back, yesterday touched Rs.81.15. The scrip is expected to cross the next target of Rs.84, within 30 days.
Rohit Ferro Tech Ltd (Rs.8.07) fell with low volume yesterday, indicating the end of the downtrend. The scrip could shoot up at any time as it has expressed its intent to divest its stake in one of the group companies. The investors are strongly suggested to buy the scrip at this safe price. There cannot be an infra-boom, without a corresponding rise in the stocks of the building materials.
Suzlon Energy Ltd reached my 2nd target of Rs.17, as the scrip touched an intra-day high of Rs.18, before closing at Rs.17.45. The next medium term target is Rs.20, which the scrip should amble in the next 30 days. But my suggestion for safe traders would be, to shift to either Veer Energy Ltd (Rs.3.49) or to the diversified firm, PVP Ventures Ltd (Rs.7.65)..