InvestorQ : Hi Diksha; do you suggest buying any fresh stocks for 17 December Thursday? Also, what do I do with all my existing positions as suggested by you?
Dilmini Mercia made post

Hi Diksha; do you suggest buying any fresh stocks for 17 December Thursday? Also, what do I do with all my existing positions as suggested by you?

Answer
image
diksha shah answered.
4 months ago
Follow

Let me talk about our open positions first. For Thursday, I maintain the same view to not make any changes to your existing holdings. There could be some volatility due to the weekly options settlement but one thing is that the rally looks on strong footing. So any open position you can hold on for the time being.

My focus for Thursday will continue to be on the PSU theme as that segment is likely to see the maximum traction in terms of price action and also as a solid value play. I must add that our strategy to average UPL at lower levels has really helped. Let me move to trading ideas.

Today, for 17 Dec, I shall give you two fresh trading tips. While one theme continues to be the PSU theme, the other theme is the auto sector in the light of the recent proposal to hike selling prices to offset the sharp spike in input costs. Here are my two buying tips.

· My first trading tip is to buy HPCL at Rs.230 for short term targets of Rs.260 on the stock. On the one hand, it is a good dividend yield play and HPCL is also likely to benefit from improved marketing margins and better inventory valuations in the coming quarters.

· The second stock is an auto play on M&M at Rs.730 for targets of Rs.775. Apart from the price hike story that is well known across the auto sector to offset input costs, I also see M&M as the strongest franchise to play the sharp growth in rural incomes in India.

Let me quickly summarize. I have now left you with 6 PSU stocks in my list of open positions. While PSU stocks normally run a policy risk, the one good thing for an investor in these stocks is that the dividend yield will offer the required price support. And that dividend yield has to remain buoyant to support the government revenues.

4 Views