Reliance Energy (BUY, CMP Rs1,573, Target Rs1,710)
A Reliance Energy-led consortium has won a USD1.5 billion bid to build a bridge across the sea, linking the nation'sfinancial hub Mumbai with suburbs. The company gets the rights to own and operate this bridge for 10 years. Thecompany has 45% stake in reliance power, for which embedded value of the company stand at ~Rs2,500 per share. Thecurrent order book of the company stand at ~Rs10,000cr, Back on the current order book company is likely to post robustrevenue growth in coming quarters. We recommend short term traders to buy the stock with a price target of Rs1,710.
Satyam Computers (BUY, CMP Rs423, Target Rs464)
The stock has been on a steady decline from last week of December in the ensuing market correction. However, has foundsupport at Rs406 levels and have bounced back in last few trading sessions. Wit the Rupee trading at a 5- month low, weexpect the IT stocks to stage a rebound in the short term. Moreover, the stock is trading well above its 20-day and 50-daymoving averages. The stock has also retraced 61.8% of its previous downfall. Short term traders cam buy the stock with aprice target of Rs464. All long positions should be protected with a stop loss of Rs405.Among the major bulk deals on Wednesday, Citigroup global markets bought over 2.2 lac shares of Eicher Motors at anaverage price of Rs285 and Merrill Lynch picked up over 5.5 lac shares of Kewal Kiran Clothing at an average price ofRs406.
Other stocks to watch out for: Rolta and Tata Steel.
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