This week, Nifty has been in a range of 10100-10350 before Gujarat Elections outcome. Today, after trading hours, many news channels have recently released their exit poles for both Himachal Pradesh and Gujarat election. With the majority, BJP seems to be more powerful again in the nation as exit poles indicating that BJP would make the next government in these two states. However, it is possible that we would not see any great impact of these exit poles on markets as these numbers of seats were expected. But yes, exit poles could help Nifty to maintain above level of 10300. Although, overall short-term direction of the market would be now control by how much of seats BJP win this elections on 18 December.
On Thursday trading session, few stocks found to be very buzzing. Some were from IT sector, few were from Pharma sector and few others.
3i Infotech is a IT related services provider having presence all over the world. It is a smallcap company having market capital of below Rs 1k crore. On Thursday trading session, stock seen a great buying and thereafter it get locked at upper circuit of 20 percent. As per some media reports, management is confident on its growth plans for future. From last few quarters, company is able to post a better set of quarterly results. Overall, i think in long-term, stock can see a good buying which can pull it to levels of 15-20 in next 3-5 years.
Wockhardt is from pharma sector which has seen great selling pressure in last few years. Company from profitable business turn into loss making business for few quarters. However now, managent is focusing on expanding its market presence and new launches. On Thursday, stock of workhardt saw some great buying which help it to close above level of Rs 750.
From long-term view, i think at present valuations, stock looks somewhat good to buy for next few years. Any Margin improvement and growth in revenue could help the stock to see levels of Rs 1000 in next 3-5 months.
IRB is a Infrastructure company having good presence in the country. Recently, CBI had filed a charge sheet against its subsidiary after which we seen some selling pressure on stock. Stock took a dip low but now stock is getting recover. Currently, stock is quoting around Rs 210 which looks quite reasonable. From both short-term and long-term view, company has a great future. But this case against company’s subsidiary is creating some pressure on stock. In such situations, it becomes very difficult to predict stock’s movement for next few weeks. Whereas, pending case could not have a significant impact on its operations, but it affects the confidence investors.
Although, i think stock is available at a very good price to buy for both short-term and long-term. But holding bulk quantity during this time could be a risky choice.
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