Market Mantra: Lack of Follow-on-buying

You must have seen sudden spurt in the stock prices based on the news on a particular sector. The recent fad is to buy the stocks from the NBFC (or to some extent banks) and infrastructure. But what the market is lacking at this point of time is follow on buying or in other words, any short term rally is getting sold. 

It is primarily because of the lack of clarity, in Government of India's policies as the Prime Narendra Modi hops from one country to another burning India's valuable foreign exchange. Mr.Modi is bent on staying as Prime Minister of India, even if he does not understand the difference in governance between 10 crore population and 120 crore. His next aim is to remove another obstacle in his journey, is to promote, Dr.M M Joshi, as a presidential candidate, just on the even of UP elections; instead of his earlier gamble with Mr. L  K Advani. 

Anyway, since this government has been voted to power, we have to bear its consequences, and work according to the given situations. In such a scenario, I find two more stocks attractive, considering that the current trend is towards, Infrastructure, NBFC and to some extent in the banking counters. However, there are some positive news from the shipping sector too. I have chosen two scrips for you, as given below: 

1. ABG Shipyard Ltd: This is a beaten down shipping counter, which is laden with debts. However, there is some good news. Lenders to ABG Shipyard Ltd is looking at the possibility of putting in place a new management but outside the purview of the SDR. Lenders to ABG include State Bank of India (SBI), Bank of Baroda (BoB), Punjab National Bank (PNB), Central Bank, Dena Bank, Yes Bank and ICICI Bank.. The scrip can be bought at the CMP of Rs.32.70 for a short term target of Rs.39-41. 

2. IDFC Ltd: This is a pure chart based call; pivoted on the optimism on the NBFCs (and some extent on the banking counters). The scrip can be bought at the CMP of Rs.49.50, for a short term target of Rs.53.
3. Hindustan Construction Company Ltd: This is also a company which is into infrastructure. The scrip has today given a break out. Buy at the CMP of Rs.20.50, for short term targets of Rs.27-29-31.