What are your top trading picks for 28 September? You can share some delivery trading tips for up to 1-2 months?
Answer
Answer
Friday offered some respite after losing 2800 points in 5 trading sessions as Nifty closed above 11,050. The week has big data points like the Monetary Policy scheduled on October 01, IPO issues of UTI / Mazagon / Likhitha Infra; two IPO listings of Chemcon and CAMS, fiscal deficit and current account numbers, core sector announcement for August 2020, Manufacturing PMI and the auto numbers for Sep-20. All are expected this week. Here is what you can trade on 28 September in the equity markets.
· Buy BPCL at Rs.373 for targets of Rs.430 in 2 month time frame. You can expect a quick divestment push and that is likely to happen closer to the SOTP value.
· It is back to API story. Buy Granules at Rs.378 for targets of Rs.450, despite the 300% appreciation in the stock. Big PE names like KKR are already getting interested.
· Shilpa Medicare at Rs.565 is another good buy with targets of Rs.650 in one month. It is a focused player in the bulk drugs and API space; the fastest growing pharma story.
Two important data points to watch this week will be the RBI monetary policy and the fiscal deficit update. The RBI policy is unlikely to cut rates but the language of the MPC on accommodation will be crucial. Fiscal deficit numbers need to be watched.