InvestorQ : Do you suggest buying any fresh stocks for the day on 02 February?
rhea Babu made post

Do you suggest buying any fresh stocks for the day on 02 February?

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diksha shah answered.
5 months ago
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With the budget being the big story for 01 Feb that will be the theme to look at. I suggest some very budget specific positions. I am suggesting 3 stocks on Tuesday that will coincide with 3major themes viz. PSU banks, Healthcare and private insurance. All the three are likely to benefit from the budget announcements. Here are my 3 ideas for the day.

· Buy Bank of Baroda at Rs.74 for upside targets of Rs.90 in 1-month time frame. The willingness of the budget to look at PSU banks for privatization of ownership and management rather than mere divestment will be value accretive for stronger banks.

· Accumulate Cipla at Rs.805 for targets of Rs.870 in 2 months. The company has a strong India franchise and certainly benefit the enhanced healthcare allocation in the budget which is higher on a yoy basis by nearly 137%.

· Finally, with insurance FDI at 74%, you can purchase SBI Life Insurance at Rs.877 for targets of Rs.940 in 1-2 months. The leeway for FDI in insurance may not have an immediate impact but sentimentally it will favour the stronger private players.

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