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The markets ended in red with moderate losses as selling pressure was seen in capital goods, FMCG, IT, oil stocks. Broader markets ended marginally in green with both midcap and smallcap up 0.5%. On the global front, most Asian markets ended lower. Sensex closed down 190 points; Nifty was down 60 points.

Technical Analysts like Prakash Gaba, Vijay Bhambwani of bsplindia.com and Gaurang Shah of Geojit Financial Services are positive on DCB, Ranbaxy, Vesuvius India, GSK Pharma and AIA Engineering.

Here's how the experts view the stocks on board:

Gaba on DCB:
I like the stock basically because of the structure; we have seen the low on the stock somewhere around Rs 76 levels, structurally there is a place it can bounce from here. So I would have a stop loss of around below Rs 70 at Development Credit Bank, and perhaps have a target between Rs 97 and Rs 100. It may take some time to go up, but structurally it’s a good place to bounce from; it’s a low risk reward ratio point.

Bhambwani on BHEL:
I think what one is seeing is rampant amount of short-covering in BHEL but I would not venture out and say it’s a complete trend reversal. With the kind of decline one has seen over the last 8-10 weeks is not something that can be wished away. Unless you actually see atleast 1/3 rd of the decline covered back by the bulls. I would still say it’s a fairly strong short-covering/technically dead-cat bounce kind of a rally.

Bhambwani on Ranbaxy and Cipla:
I was hoping that Ranbaxy and Cipla would go up higher than where they are right now, but when the markets are sluggish there is no real place to actually run because selling does come in all over.

I think Ranbaxy would be a place where a lot of traders attention is focused at this point in time.

I would not be surprised to see Rs 510-520 levels in the next few trading sessions should the market be conducive.

Bhambwani on Ashok Leyland:
The stock has nothing really to write home about except for the fact that this has been a good strong trading upmove. Support now exists between 34-35 levels. Should one actually violate this support, the stock can start to see a slow and steady slide at this point in time. But Rs 39 or Rs 39.50 is where I would see a lot of overhead supply coming in; stiff resistance is seen there.

Bhambwani on Neyveli Lignite:
Neyveli Lignite has been undergoing a sideways correction and it needs to breakout above the Rs 127-128 levels to actually signal a strong upmove. I would wait and watch for a confirmed breakout above this level before actually venturing out a buy. I would not short it even on declines.

Shah on Vesuvius:
The rational behind choosing Vesuvius is that it is a 55% subsidiary of Cookson Group (UK) and Vesuvius happens to be one of the largest manufacturers of refractories in India. The products of this company basically finds its way to applications in industries like iron and steel, cement, glass, non-ferrous metals, thermal power, petrochemical and fertiliser business.

Apart from the growth potential in these various sectors, the company’s product also has a strong replacement demand. It also has got the access to the parent company’s high-end technology product, which possibly makes it a niche player in the same segment. It declared a decent set of numbers for Q4 CY07 and with this prospective in mind, we have a buy call on Vesuvius India with a price target of Rs 275 plus with a timeframe of around about one or one and half year.

Shah on GSK Pharma:
A: Again over here, it is the largest pharma company in India and going forward with the kind of new product launches it has got, especially along with the parent company’s product lineup, the segment is supposed to grow and also the fact that GSK Pharma is also trying some kind of newer segments in clinical research wherein over there one will see some value addition coming in. It is also trying to launch its cancer drug in the near future. With this kind of a robust product pipeline and of course given the kind of access that GSK Pharma has got to the parent company’s technologies, we feel that a price target of Rs 1,200 per share could be attained over a period of one-year kind of a timeframe.

Shah on AIA Engineering:
We have a price target of around about Rs 2,000 plus for AIA Engineering. AIA Engineering has reported an excellent set of numbers and this company is basically catering to mill internals and they are making high chrome metal goods equipments, which go into the various segments. The company’s products find its application in various industries such as cement, thermal power, mining and the crushing of clinkers in cement and steel. Considering the kind of growth that the sectors have got, we feel that it has already has a good robust order book and also the replacement of this particular industry in various segments is going to be at a very high end.

Disclosure: Gaurang Shah has no personal holdings, but since he has a buy report on all the three companies, their clients might hold positions.

Prakash Gaba doesn't have any holdings in DCB

Source: Moneycontrol.com