Outlook – 2012 “Panic - Consolidation - Rally” :: Anand Rathi

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12 Stocks that look good for 2012 are
SAIL, 
DIVIS LAB, 
CAIRN INDIA,
NMDC, 
BEML, 
EIL, 
HEXAWARE, 
IPCA, 
HUL, 
INDIAN HOTELS, 
WIPRO and 
OBEROI REALTY 

which can be bought in panic

Outlook – 2012 “Panic  - Consolidation -  Rally”

                                              

2012 OUTLOOK - Fundamentals  

"        Year 2012 would be year of consolidation after making panic low, sectors like Infrastructure and Realty can surprise market while IT & Pharma will be very defensive in the year. The rupee weakness (up to levels 55 and may be above that to 59) is to continue which may further impact positively to the export oriented businesses.

"         Stocks which have corporate governance issues, pledged shares, ECB loans or FCCB maturities may witness pressure.

"         On the other hand Cash-Rich PSU stocks with lower debt on books and good quality management stocks will be preferred.

"         After downgrades and a view of India being replaced by Indonesia in BRICs, its just a matter of time as after this bear phase rally we will enter the consolidation phase in 2012 and later 2013, market may see out performance.

"         Gradually the domestic situations will also improve with government action taking place, softening of inflation and reversing of interest rates will support the out performance.   

2012 OUTLOOK - Technical 

"        Sensex to move in the range of 11500 – 17700.

"         Nifty to move in the range of 3500 – 5400.

"         Nifty and  Sensex has closed below 200WMA on 3 continuous weeks which normally leads to more than 20% correction.

"         This bear phase which will see very sharp and short lived correction may see a low of 3500 in Nifty and 11500 in Sensex. This may be experienced H1 CY2012.

"         Later after the bear phase the market may see some consolidation phase followed by a rally which may see a high of 5400 in Nifty and 17700 levels in Sensex. These levels are possibly seen in the H2CY12.

"         This rally will be mainly lead by the top 100 market cap stocks and cash rich companies mainly from PSU and MNC basket.     

12 Stocks that look good for 2012 , which can be bought in panic 

SAIL, DIVIS LAB, CAIRN INDIA, NMDC, BEML, EIL, HEXAWARE, IPCA, HUL, INDIAN HOTELS, WIPRO AND OBEROI REALTY