Today's Calls

1. Buy Reliance Communications Ltd at Rs.37.80, T: Rs.42, SL: Rs.36.50. Reliance Communications (RCom) has laid off over 600 roles in an ongoing effort towards a leaner organisation, according to some media reports. The country's fourth largest telecom company is in merger talks with Aircel and MTS.

Company officials asking not to be named said job cuts will help the 7,500-strong RCom integrate workforce when mergers with Aircel and MTS materialise.  When RCom announced its merger with Aircel in September 2016, the companies said cost synergies would be about Rs 20,000 crore. Costs would halve following the merger, they said. Much of this will come from job cuts since the infrastructure is already in place and it is unlikely that leasing and rental agreements will change drastically, experts said. 

2. Those who are holding Engineers India Ltd (Rs.151.50), can continue to hold with a SL of

Rs.147, for targets of Rs.171-175. Any buoyancy in oil and gas sector is positive for the stock.

3. Those who are still holding the shares of DLF Ltd (Rs.160.20) from Rs.156 and averaged during intrada dips can book some profits around Rs.160-160.70 and keep holding the rest with a SL at Rs.156.

4. My earlier recommended two steel stocks: Jai Balaji Industries Ltd (Rs.23.65) and Rohit Ferro Tech Ltd (Rs.7.20) are hitting continuous UCs since last few days. I am expecting Jai Balaji Industries to test Rs.31-32 ranges while Rohit Ferro could cross Rs.9. I would suggest a hold on both the counters.