CMP 318 BSE 17923
- The short term price Charts seem to indicate a mildly negative tenor. The immediate support for the Scrip is around 295 levels.
- As long as 295 holds out on a closing basis, the overall uptrend in the Scrip remains unscathed.
- In case 295 is decisively broken on the downside we could see the scrip move quickly to 258-260 levels. It is a volatile scrip.
- Even if the macro Market trend weakens I really do not see the scrip breaking 258-260 levels on the downside easily.
- Taking a quick look at the FUNDAMENTALS, even though Q3 FY12 was below par, I would still vote for the Scrip on the sheer strength of its presence in core infra verticals. The softening of the Rate cycle and the subsequent capex cycle pick up will improve the Financials over the next three Quarters.
- Having said all the above, let us remember that the scrip has moved from 172 (30/12/2011) to 370 (22/2/2012) before correcting to CMP 318, thus the need for caution at this stage.
- Overall, my Call would be a BUY ON DIPS with the first lot to be bought around 295-300 levels and then add more on all dips. I would currently place fair value around 250-260 levels.
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