In an exclusive interview with Myiris.com, Shardul Kulkarni, senior technical analyst, Angel Broking has provided views on 3 stocks which were buzzing on Tuesday, Nov. 06, 2012. The same are as under:
Leading drug maker, Cipla surged today after the company posted a sharp rise of 61.8% in profit after tax on year-on-year basis for the quarter ended September 2012 to Rs 5 billion, helped by strong revenue growth and expansion in margins. Gross revenues grew by 23.6% to Rs. 22.20 billion from Rs. 17.96 billion for the same quarter last year.
During yesterday's trading session, the stock soared more than 4% as the market cheered its robust growth in second quarter. In the process, the stock has posted its new ‘all-time’ high of ' 398.90. Considering the positive structure of daily as well as weekly chart, we can infer that the stock has a potential to move higher in next few trading sessions if it sustains above ' 400 level. The price action is also supported by the positively poised momentum oscillators. Hence, we can expect a near term up move towards 420 - 440 levels. On the flipside, the immediate support is seen at 389 level. A breach of this support level may result into a loss of near term upward momentum. In this case, it may correct towards its next support levels of 375 - 370. At this juncture, we have a neutral view on the stock.
Shares of the company gained Rs 15.9, or 4.18%, to settle at Rs 396.35. The total volume of shares traded was 1,271,172 at the BSE.
Tech Mahindra was active today after it reported a rise of 23% in consolidated profit after tax on year-on-year basis for the quarter ended September 2012 to Rs 2.96 billion, helped by higher revenues and better performance by its arm Mahindra Satyam. During the quarter, revenues grew 22% y-o-y basis to Rs 16.31 billion.
The stock has performed well over the past 10 - 12 months. It has almost doubled after posting a 52-week low of ' 529.70 in October 2011. On the broader perspective, the uptrend is still intact. However, in the near term, it has slipped into a consolidation mode, which was quite evident after a strong rally. The stock has a near term trading range of 1,043 to 898. Traders are advised to sell the stock only if it sustains below the lower range i.e. ' 898. In this scenario, we may witness short term pessimism in the stock and as a result, the stock may slide towards ' 860 - 840 levels. This support zone coincides with the weekly '20-EMA'. Hence, it is considered as a decent support zone for the stock. The near term uptrend will be resumed once the stock manages to sustain above 1,043 level.
Shares of the company gained Rs 8.15, or 0.85%, to settle at Rs 963.15. The total volume of shares traded was 91,368 at the BSE.
SKS Microfinance shined today after it raised Rs 2 billion via microfinance securitisation post the issuance of revised securitisation guidelines for Non-Banking Finance Companies by Reserve Bank of India on Aug. 21, 2012, stipulating Minimum Holding Period (MHP) of three months and Minimum Retention Requirement (MRR) of 5%.
The prices took a nosedive for consecutive 14 months after posting its all time high of 1,491.50 in September 2010. In the process, prices corrected below three digits also and eventually settled around ' 54. Since then it is experiencing a consolidation phase. On the broader perspective, it has a strong monthly resistance of 151.50. Hence, we advise investors to create long positions only if the stock sustains above 151.50. In this scenario, it can rally towards 200 - '240 levels. The near term trading range is 135 to 95. Hence, at present, our view is neutral on the stock.
Shares of the company gained Rs 5.6, or 4.99%, to settle at Rs 117.80. The total volume of shares traded was 2,283,094 at the BSE.
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