Trading Ideas: Exit Engineers India, Hyundai Motor, Hold International Gemmological, RIL

Market experts advise to exit Engineers India Ltd., Hyundai Motor India Ltd. due to stress in the overall sectors. They suggest a hold on Reliance Industries Ltd. and International Gemmological Institute (India) Ltd.

Should you hold SMS Pharmaceuticals Ltd. or switch to some other pharma stock? Read what Saurabh Jain, equity head, research, SMC Global Securities, and Ajit Mishra, a senior vice president, research, Religare Broking, have to say.

Saurabh Jain: The outlook is that the demand for oil will cool off. That's why there is pressure on oil prices. Hence, the stock is going down. 

The September-quarter numbers showed that there's a decent amount of pressure on both the revenue and profitability front. The profit has dropped from Rs 100 crore to Rs 76 crore. There's a drop in the revenue of Rs 100 crore. "I expect the pressure to continue. I don't expect any kind of upside in the business or in the stock price. My advice would be to 'Exit'."

Saurabh Jain:  The company not only does certification for the national diamonds but also for the lab grown diamonds. A significant amount of growth is coming in from lab grown diamonds. Though the segment is small, there is enough space for International Gemmological Institute (India) Ltd. to grow in this space.

 It's a good company to hold.

Saurabh Jain: Fundamentally, there were expectations in the automobile sector that the car sales will grow at the high single digit. After the first half and recent numbers, it is expected the growth will be sub 5% only. Hence, it's better to take money off the table.

Ajit Mishra: The brokerage is expecting a new high in 12–14 months. The stock looks extremely oversold in the short-term perspective also. There are multiple support levels at Rs 1,150–1,170 zones. Maybe, time-wise, there could some correction in a week or two. Eventually, the stock will recover strongly. The area of hurdle is Rs 1,270–1,320. Then, Rs 1,440 will be a new high.

"So add, if your time horizon is over a year."

Ajit Mishra: In the recent market, pharma companies are doing pretty well. SMS Pharmaceuticals Ltd. is on the other hand as it is still struggling below major averages. So, indications are in the favour that the stock can see some rebound due to the oversold position. Comparatively, it's a weaker structure. Hence, Mishra suggested to switch from this stock to Sun Pharmaceutical Industries or Glenmark Pharmaceuticals Ltd. or Lupin Ltd. 

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.