23 May 2015: There has been a good correction in Larsen & Toubro (L&T) stock during April and May, but solid support has come everytime at 1500-1520 levels, so we can aim for 200 points upmove is Nifty remains positive. There is a short term trade available here. We can buy L&T stock between 1600-1640, for upside target of 1700-1740 in the coming weeks, with stop loss of Rs 1600.
Tata Motors Limited (ADR) (NYSE:TTM) has been trying to form a base at $40 per share for the last 4 weeks after recent correction. This stock has the tendency to bounce back nicely from its lows because of two factors (a) positive results keep coming from Jaguar Land Rover (JLR) unit global sales and (b) very attractive valuation of under P/E 10 for 2015-2016, giving investors adequate safety and no sell off based on over valuation. Tata Motors (TTM) has a solid global franchise, and its own back end integration with Tata Steel for supplying automotive steels, which help in efficiencies. Our view: Tata Motors (TTM) can be bought at current price of $41-42 for upside targets of $49-50 by Nov 2015, giving 15-20% gain in 6 months.
US Markets: The US markets opened lackluster on Monday morning and remained in profit booking mode throughout the weak. Investor sentiment was jittery on the back of better than expected domestic data thereby reviving possibility of an early rate hike by US Federal Reserve and geo-political headwinds. On the macroeconomic data front, a report from the US Commerce Department showed that new home sales grew 7.8% to an annual rate of 539,000 in February (analyst expected it at 462,000). US consumer price index increased up 0.2% in February 2015 after falling by 0.7% in January 2015. A report from the US Commerce Department mid-week also depicted an unexpected drop in durable goods order in Feb 2015 (down 1.4%). US initial jobless claims fell more than expected for the week ended 21st March 2015. Initial jobless claims fell to 282,000 from the earlier week levels of 291,000. Continue reading Markets Review – 27March2015