Trading Ideas: Avoid Vedanta, Waaree Energies, Bajaj Housing Finance, Say Stock Market Experts
G Chokkalingam, founder & MD of Equinomics Research and Swati Hotkar, assistant vice president of technical research at Nirmal Bang Institutional Equities answer these queries.
Are Waaree Energies and Bajaj Housing Finance trading at expensive valuations? What do the charts of Dixon Technologies and Crompton Greaves indicate? Is Vedanta a good pick?
G Chokkalingam, founder & MD of Equinomics Research, and Swati Hotkar, assistant vice president of technical research at Nirmal Bang Institutional Equities answer these queries.
Bajaj Housing Finance 👎
Chokkalingam: Valuation expensive
Chokkalingam likes the stock, but he is concerned about its valuation. The stock is trading at 7 times price to book value, he said, adding that the entire financial sector is going through a slowdown.
Crompton Greaves 👍
Hotkar: Hold, with stop loss of Rs 380
She said the uptrend is intact and it has formed a W-shaped pattern on the daily chart. Currently, the stock is consolidating between Rs 385 and Rs 400. "A move above Rs 400 on a closing basis will see some extension of bounce back to Rs 420 and Rs 440 levels," she said, adding the outlook is positive.
Waaree Energies👎
Chokkalingam: Don't buy
While Chokkalingam believes that the group has done extremely well, he said valuation and competition remain a concern. "Valuation is enormously priced," he said, advising investors to refrain from buying. "If it recovers 5-10%, one can sell and minimise the loss."
Dixon Technologies 👎
Hotkar: Book profits and re-enter
According to Hotkar, overall view is positive and uptrend is intact. On a weekly basis, stock is showing negative divergence and is likely to witness profit booking, she said, advising investors to book profits at current market price. Any dips towards the Rs 15,500 level can be used to re-enter.
Vedanta 👎
Chokkalingam and Hotkar: Caution advised
Chokkalingam said he prefers Hindalco and Hindustan Zinc over Vedanta as he finds it difficult to understand the frequent restructuring. Hotkar said she is cautious as in November, it saw a rally from Rs 430 to Rs 520 and 80% of it has been retracted.
Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.
