InvestorQ : Do you have any trading ideas for 08 February? What are the stocks I can book profits on and are there fresh stocks to buy?
prachi Patwardhan made post

Do you have any trading ideas for 08 February? What are the stocks I can book profits on and are there fresh stocks to buy?

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diksha shah answered.
3 weeks ago
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Let me first talk about the existing positions. On Friday, I had suggested booking profits on Manappuram Finance, LIC Housing, Tata Power, Bank of Baroda and JSW Steel. To further lighten, I suggest exiting Trident and Indiabulls Real Estate at around cost or slightly below cost to free up space for fresh allocation on Monday. Here are the two exits suggested.

· Trident at Rs.14.50 (CMP-14.20) – Exit around cost

· Indiabulls Real Estate at Rs.87 (CMP-83) – Exit at small loss

You can hold other positions and the list substantially pruned in the last one week as the opportunities arose in the rally. Let me now turn to the stocks that you can buy for trading on 08 Feb. A clear signal about the direction of the market has emerged from the Union Budget and the Monetary Policy with growth friendly signals. Here is what to buy on 08 Feb.

a) You can buy Birlasoft, formerly KPIT Infosystems, at Rs.272 with a price target of Rs.310 over next 1-2 months. Birlasoft has announced stellar results in the Dec-20 quarter and is also a reasonably valued high-growth bet in the mid-sized IT sector.

b) As vaccination campaign picks, logistics will fill the gap. Buy VRL Logistics at Rs.205 for targets of Rs.230 in next 1-2 months. VRL reported good numbers and is likely to be a big beneficiary of the vaccination drive, for providing the requisite logistical support.

c) A reasonable price pharma bet is Cadila Healthcare at Rs.473 for target of Rs.520 in next 2 months as the company continues to remain a fairly reasonably priced pharma stock. Cadila also has declared strong set of numbers in the Dec-20 quarter.

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