Bhansali Engineering, L&T, Mazagon Dock: Here's what Mayuresh Joshi of William O'Neil India says on these 3 stocks

Mayuresh Joshi, Head-Equity Research at William O'Neil India, on Friday said the headline indices could stay resilient for now. Although, there are some pockets in the broader markets (mid- and small-cap) space which have become overheated, given the recent rally, Joshi told BT TV. Investors need to be more selective while choosing a sector or stock, he added.

The market expert picked specialty chemicals manufacturer Bhansali Engineering Polymers Ltd as one of his top picks for the day. "It is debt-free company with a revenue of over Rs 1,300 crore and a market capitalisation (m-cap) of more than Rs 2,300 crore," he said. For Bhansali Engg, target prices would Rs 110-112 with a stop loss placed at Rs 89, Joshi mentioned.

"Within the frontline space, infrastructure is the theme which one can pursue. As we are near general elections, a lot of pre-ordering is expected to continue, at least for the next few quarters," he stated.

His other pick was Larsen & Toubro (L&T). "Any minor pullback in L&T can be considered as a buying opportunity. The stock has done well in comparison to its peers. Recently, the company bagged two orders worth over Rs 33,200 crore from Saudi Aramco. The company's peak private order book has reached 40 per cent and the management still believes that there's ample scope for 5-10 per cent which can come from the said sector," he said.

When asked about the ongoing rally in Mazagon Dock Shipbuilders Ltd, Joshi said, "Those who are holding the counter can enjoy the moment. But as far levels are concerned, keep stop loss placed at Rs 2,150," he suggested.

The defence manufacturer has signed Master Ship Repair Agreement (MSRA) with the US government, represented by NAVSUP Fleet Logistics Center (FLC) Yokosuka. The agreement is expected to open-up voyage repairs of US Navy Ships at Mazagon Dock.

Meanwhile, Indian equity benchmarks traded higher in early trade today, led by gains in bank, financial, automobile, consumer durables and energy stocks.

14 out of the 15 sector gauges -- compiled by the NSE -- were trading in the green. Sub-indexes Nifty Bank, Nifty Financial Services, Nifty Auto, Nifty Consumer Durables and Nifty Oil & Gas were outperforming the NSE platform by rising as much as 0.21 per cent, 0.54 per cent, 0.47 per cent, 0.82 per cent and 0.41 per cent, respectively. However, Nifty Healthcare shed 0.06 per cent.

On the stock-specific front, NTPC was the top gainer in the Nifty pack as the stock jumped 2.65 per cent to trade at Rs 240.3. Bajaj Finserv, L&T, HCL Tech and PowerGrid gained up to 2.45 per cent.

In contrast, Hindalco, Apollo Hospitals, SBI Life, JSW Steel and Eicher Motors were among the top laggards.

The overall market breadth was positive as 1,993 shares were advancing while 885 were declining on BSE.

Foreign institutional investors (FIIs) sold Rs 759 crore of shares on a net basis during the previous session, while domestic institutional investors (DIIs) bought Rs 28.11 crore of stocks, exchange data showed.

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Also read: Hot stocks on September 8, 2023: Adani Ports, IRFC, Graphite India, Cochin Shipyard, Mazagon Dock and more