Positive on ACC, ABG Shipyard and Shree Renuka: CK Narayan

ET Now spoke to CK Narayan, President Treasury, Sharyans Resources, on his view on ACC, ABG Shipyard and Shree .

ACC, ABG Shipyard and Shree Renuka are your top picks today, why?

I think they have done pretty well. I see all of them having retraced nicely in the previous weeks decline. Second selling in stocks like Renuka and ABG Shipping for example have been absorbed by some larger hands which would be something very positive. In the case of ACC I find that it has been quite resistant to declines.

Cement stocks even though not viewed very bullishly are not really witnessing much of selling so the selling part is done and it has been absorbed, b) the surge in demand has been almost immediate and I think any stock which responds to either reaching a support or trying to respond positively to news like in the sugar stocks I think both of them would rather qualify in my books for a buy.

In this market we need to really be very picky about what is a stock that we trade in so I would look at various pockets of strength and within that I actually find that cement stocks if you take the let say the four cement stocks in the futures I think 3 or all 4 of them are up for the day. So even though the outlook on the sector may not be very hot cement stocks are up and there is never smoke without fire in the markets so I am always happy to follow something which shows me gain.

Similar is the picture in ABG Shipyard’s been up and as far as Renuka is concerned I think that is the best among the lot among sugar picks. It has the upside kicker also from being a player in ethanol and so I think these are the 3 things that I would probably stick with for today and may be even for tomorrow.