Markets look weak and the Sensex ended the day week for the second week in a row. Global markets showed a good performance with the US Dow Jones and the Nasdaq gaining. Here are a few share trading tips for the next week.
Most of the PSU banks look weak, as worries over irregular monsoon in certain parts affect sentiments. Punjab National Bank declined sharply in trade and looks weak. The share price has support at Rs 159. Sell above Rs 165 with a stop loss of Rs 167.
Buy Larsen and Toubro Share
Buy Larsen and Toubro at Rs 1675 with a stop loss of Rs 1670. The share has been showing strength in a weakish market, probably due to interest from mutual funds.
Shares to buy for delivery
While PSU banks look weak, they could be bought into for delivery purpose. For example, Syndicate Bank, which has a book value of as high as Rs 190 is currently quoting at just Rs 108. If the stock trades below Rs 100 it is a good buy as the dividend yield itself could work out to more than 5 per cent.
Some analysts are expecting a CRR cut from the RBI in April, which could lead to a relief rally in the stock.
Punjab National Bank
PNB is another stock that one could buy on the basis of fundamentals. Should the NPAs show even marginal improvement for the quarter ending March 31, 2015, the stock could flare since it has come down sharply from levels of Rs 230 after going ex-split to the current levels of Rs 163.
Buy the stock if it falls below Rs 150, which could make it attractive on the basis of price to book and price to earnings ratio. While we have asked traders to go short, long term investors could buy.
The above two stocks should be bought for delivery and only by patient investors. Should the economy show signs of recovery and the non performing assets begin to fall these stocks could give decent returns from the current levels.
DISCLAIMER: GoodReturns provides you with information covering shares, futures and options based on broker's reports as stated on various media. Investors are, however, warned that they should NOT take any buy or sell decision based on these views expressed in the article. Investors should consult their own financial and share advisors before taking purchase or sale decisions. GoodReturns does not take any re-sponsibility for any losses incurred by investors who take their cues from the above article.