Dec
25Two Interesting Bulk Deals
Filed Under (Stock Observations) by Deepak Singh on 25-12-2009
There is a saying - It always pays to follow institutional activity in terms of what they are buying/selling. Here are two stocks that grabbed my attention in bulk deals segment -
Glenmark Pharma stock Daily Chart
Swiss Finance Corporation on Dec 18 bought 2 million shares of the company at price of 262. Technically, Glenmark Pharma stock has broken out and it seems its just the beginning of the up move.
Source: ChartAlert [www.chartalert.com]
Attractive Relative Valuation + Sectoral Support + Institutional Bullishness at Play: Glenmark stock at cmp is trading at 14 times its FY 11E earnings, which is at a significant discount to the industry average of 20 times. This means there is still adequate margin of safety in the stock. With institutions extremely positive on the sector, Glenmark Pharma can propel on the upside post its breakout above 270-280.
M&M Finance
Franklin India Prima Plus and Franklin India Taxshield fund acquired more than 42000 shares of M&M Finance around Dec 16. This reflects continued bullishness on the stock and the NBFC space.
Source: ChartAlert [www.chartalert.com]
Technically, stock is trading around 2008 highs and it seems the stock is set to breakout to make new all time highs. Fundamentally, institutions are bullish on the company. It is a stock to keep an eye on in 2010, as NBFCs a play on rural credit growth theme gains more popularity.
Mahindra & Mahindra Financial Services Ltd (MMFSL) a subsidiary of Mahindra & Mahindra (M&M) is one of India’s leading non-banking finance companies focused on providing finance for utility vehicles, tractors and cars in the rural and semi-urban sector.
As always, please note the above stocks are not trading recommendations.
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Disclaimer - The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers
Thanks for your great work.
Quick question on Glenmark following the breakout. How would one go about calculating a possible target for a break out stock - for example, 270-280 shows a Breakout for Glenmark. It will probably comeback to test the BO level and then start another move up - but whats your take on a possible target.
Thanks a lot.
..Tomo
Once a stock from strong sector breaks out - one should try to ride it as long as one can. Technically the target seems to be 340-350