InvestorQ : What is the investment theme you suggest for trading these markets? Do you have stock tips to buy for December 15?
Arusha Ray made post

What is the investment theme you suggest for trading these markets? Do you have stock tips to buy for December 15?

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diksha shah answered.
5 months ago
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The PSU stock theme that I had started on Monday, will now continue for Tuesday also. Today I look at two more stocks that could be meaningful for medium term investment. Broadly, there is the outsourcing story that is playing out strongly for PSUs in defence and other segments. Here is how I suggest you to play the story.

· Buy Bharat Electronics or BEL at Rs.116 for a price target of Rs.150 in 2 months time frame. Apart from relatively cheap valuations of 15X earnings, BEL also has the potential to undertake outsourcing defence orders from the armed forces.

· Another PSU stock I suggest is to buy BHEL at Rs.36 with target of Rs.48 in the next 2 months time frame. I expect a strong PSU play on the outsourcing story especially considering BHEL’s existing spare capacity and the hidden assets it carries at book value.

Finally, a small word of caution for all traders and investors! You must keep an eye on the VIX, which is already up at 19.5. Normally, it is the range of 20-22 that is the best level comfort zone and above that risks a temporary peak. It is then better to be hedged.

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