Stocks to watch: DCB, HDFC Bk

The markets ended the volatile week on a high. The indices shrugged off a sluggish start and powerd ahead to close with handy gains. Nifty closed at 4,016 up 90 points, while the Sensex shut shop at 13,454 up 360 points.

Here is how E Mathew views the stocks on board:

On Siemens India:

Siemens is one stock, which has been hammered substantially. A little bit of contrarian buying is certainly emerging in this stock. A very nice bottom is around Rs 360. So, for the short-term as well as medium trade, keeping a stop loss of around Rs 360, one could look for a target of as high as even Rs 465 now that the stock has decisively crossed Rs 405.  

On JP Associates: 

That is not inspiring as much confidence possibly as DCB. But, nevertheless, if we have a pullback rally and this rally is able to sustain above 4,050-4,100 and go to about 4,300, then certainly JP Associates would also participate. But the target that you would look for would be a more humble target around Rs 160 to Rs 170. In fact, I would advocate at those levels one could come out the JP Associates position, if one is a trader.   

On DCB and HDFC Bank:

I was surprised at the way this stock was hammered. The stoploss is very close by at around Rs 48. This stock certainly has got the potential now to rally all the way to Rs 65. In the private sector, apart from DCB, HDFC Bank is another one which looks very interesting.

On Tata Steel & Hindalco:

I did not expect that the stock would collapse. But in spite of that I would still not give up hope on Tata Steel. I would say that if one could gets the stock a little lower, may be at around Rs 615-620, I would go out and venture a buy.

Even Hindalco, the collapse from Rs 170 was very discouraging and a lot of bulls were caught on the wrong foot. But if this market is going to participate in something like a pullback rally, Hindalco has got the capacity to bounce back possibly all the way up to Rs 160-165. Though, the collapse from Rs 170 really has spoilt the chart.

Disclosures:
It is safe to assume that we hold positions and have interest in the stocks and sectors.