Momentum Pick - Welspun Corp

 

Welspun Corp

CMP 225/-

 

Investment Rationale

Welspun Corp Limited is part of the $ 1.5 billion Welspun Group and is Asia's (X-Japan) largest high grade SAW pipe manufacturer with the one stop solution for all kind of transportation pipes. It manufactures LSAW, HSAW and ERW pipes and is also having coating facilities at its plant located in Anjar and Dahej in Gujarat.  Welspun is integrated backard as it has 1.5 mn. tpa. 'Plate cum Coil Mill' at Anjar in Gujarat.

 

Welspun had an order book of over Rs66 bn and is expected to grow as the global capex cycle picks up in coming quarters.

 

Recommendation:

 

The capacity ramp up and backward integration will lead to better earnings outlook for the company. Stronger order book is providing better earnings visibility.

We look forward to price target of Rs 260-270 in medium term, BUY.

 

Daily market Tips

Market Outlook

In the view of negative global markets, today our market may see gap down opening and may witness a minor pullback at lower levels. If S&P CNX Nifty falls below psychological 5000 levels then selling pressure may get intense in the market and we may test 4980-4950 levels. On upside if it sustains above 5050 levels with volume support then only further up move may be seen in the market towards 5080-5100 levels. We would advise to keep the position light and remain cautious in the market at higher levels as global markets are weighing heavy on domestic indices.

TATAMOTORS

Execution Price Range Stop Loss Target

Buy Between Rs 735 to 750 720 788

 

INFOSYSTCH

Execution Price Range Stop Loss Target

Buy Between Rs 2685 to 2705 2670 2745

 

ICICIBANK

Execution Price Range Stop Loss Target

Buy Between Rs 835 to 848 823 882

Daily Trading Tips

Market Outlook

In the continuation of flat global markets, today our market may open steady and move in a range bound manner. If S&P CNX Nifty sustains above 5100 levels with volume support then only further up move may be seen in the market towards 5140- 5160 (which is a crucial medium term resistance for the market) levels. On downside if it falls below 5050 levels then selling pressure may get intense in the market and we may test 5020-5000 levels.

 

JSWSTEEL

Execution Price Range Stop Loss Target

Sell Between Rs 1070 to 1085 1095 1040

 

BIOCON

Execution Price Range Stop Loss Target

Buy Between Rs 288 to 292 286 299

 

ADANI ENTERPRISE

Execution Price Range Stop Loss Target

Buy Between Rs 540 to 550 535 565

Daily trading tips

Market Outlook

Yesterday S&P CNX Nifty moved in a narrow range in early trading session then witnessed up move led by short covering and closed above 5000 levels. In the continuation of positive global markets, today our market may open positive and move in a range bound manner. If S&P CNX Nifty sustains above an important resistance of 5080 levels then only further up move may be seen in the market towards 5110-5130 levels. On downside if it falls below 5020-5000 levels then only selling pressure may get intense in the market.

 

RELINFRA

Execution Price Range Stop Loss Target

Buy Between Rs 1074 to 1092 1065 1124

 

TECHM

Execution Price Range Stop Loss Target

Buy Between Rs 663 to 673 658 690

 

ASHOKLEY

Execution Price Range Stop Loss Target

Buy Between Rs 59.50 to 61.50 58 66