JSW steel can go to 1500: Emkay Global Financial Services

How would you approach days like this when you suddenly see a spurt in the midcap sector? You have got huge up moves in counter like a Varun industries, OCL, Sunflag Iron. Would you say that there are fundamental factors that play or would you keep a safe distance?

I think there are really two ways to play a market like this and honestly it has been a very difficult market really these last couple of weeks. So I think one is obviously just saying that you find what is really buzzing on that day and irrespective of whether you kind of fully agree with the fundamentals or not you go ahead with it as a play and you play it for the trading upside whatever that it may offer.

For instance if two-three days ago you would spot it the kind of buying that you were seeing in the railway space then you could have got in over there or I think somewhere midweek last week we also saw the buying coming back into the metal space so you could have joined in then.

I think starting with the SAIL bonus news, I think that’s when we started seeing metals recovery slowly. But I think a better strategy would be really to stay with stocks that you believe in terms of the numbers and going ahead where you either like the quarter numbers or you see the recovery coming going ahead. So I think to that effect, perhaps in the metal, space we like a stock like JSW Steel. We think that could easily go to like a 1500 kind of level given the kind of traction that they are seeing in their production. So that’s a stock that we like in the steel space.

In the pharma space there are a couple of stocks that we like. We like Panacea Biotec, we like Unichem Laboratories so that these would be good stocks to go with. I think an IRB Infra - again given the kind of numbers that we have seen - is a very good stock to be with. So perhaps balance it out to stay invested in stocks where you think that you will get the bump up when you see the good numbers coming in for them and you see the recovery in the midcap. But at the same time you obviously cannot completely ignore the momentum side of the market. So even within that space you will have to continuously keep positioning yourself.