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Mid-cap stocks of the week Dec 12, 2004
The Mid cap stocks listed below are Nifty 500 components - liquid, traded easily and benchmarked volatility. These are stocks that we expect to out-perform the markets. It should be remembered that many of these stocks are trading with abnormally high volumes, maybe operator driven, and have appreciated significantly. Therefore, the risk element is likely to be very high. Take limited exposure to these stocks and maintain stop losses as specified.
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Individual stocks. |
Asahi India Safety - this scrip is making an interesting chart patterns - the immediate hurdle is the 155 mark which is the Dec 03 / Jan 04 high and the last mile obstacle before the scrip enters a lifetime high. Also note the head and shoulder formation in progress. The oscillators are pointing towards a bullishness in the undertone and the scrip has a very high relative strength of 417 ( 100 = base ). The traded volumes are on the rise and the outlook remains bullish. We advocate a buy on the counter.
Your call of action - Buy on a breakout above the 155 levels when the scrip confirms strength and maintain a stop loss at the 132 levels. We expect a price of 200 + in the medium term in a conducive market scenario.
Asahi India I Bharat Forge I Indian Hotels I KEC International I Omax Auto I Shriram Transport I Midcap index I Top I Close window I Print page
Bharat Forge - this scrip was recommended in this edition Dtd Nov 21, 2004. The entry price suggested was above the 900 levels as the scrip entered a new trading zone at that breakout. Our prediction has been justified as the scrip has appreciated 5 % since then and entered a new trading zone which is likely to take the scrip into new record zones. We recommend a long term buy on this counter on declines, as a must have counter in your auto ancillary portfolio. technical chartists will note the high relative strength of 905 ( 100 = base ) and a steady rising tops and bottoms formation on the long term charts.
Your call of action - Buy on major declines to the 910 - 920 levels and hold with a liberal stop loss of 865 and a medium term target of 1050 + in a conducive market, probably by budget time.
Asahi India I Bharat Forge I Indian Hotels I KEC International I Omax Auto I Shriram Transport I Midcap index I Top I Close window I Print page
Indian Hotels - this hotels and hospitality major is in a serious bull grip as the chart indicates. The sector is being re-rated as the business is picking up and traded volumes on these scrips is on the rise. Technical chartists will note that the scrip has achieved it's highest ever closing since June 1998 and is making a rounding bottoms formation on monthly charts. The 480 levels are a good floor price for this scrip and a buy in recommended on all declines.
Your call of action - Buy on slight declines to the 515 levels and hold with a liberal stop loss at the 480 levels. Expect to book profits near the 600 levels by budget time in a conducive market scenario.
Asahi India I Bharat Forge I Indian Hotels I KEC International I Omax Auto I Shriram Transport I Midcap index I Top I Close window I Print page
KEC International - this scrip is trading near it's June 1996 highest closing levels and is making rounding bottoms formation. The immediate hurdle is the 145 / 150 levels which will be the first barrier that this scrip needs to surpass to signal fresh strength. On the flip side, the 100 levels will your immediate floor and a stop loss level which needs to be watched out for. We recommend a buy in small lots on this counter.
Your call of action - Buy at current levels and hold with a stop loss at the 100 mark. Expect to book profits partially at the 145 levels and completely at the 175 mark in the medium / long term. Exposure on this counter should be small / medium levels.
Asahi India I Bharat Forge I Indian Hotels I KEC International I Omax Auto I Shriram Transport I Midcap index I Top I Close window I Print page
Omax Auto - this auto ancillary scrip was recommended in our daily PTR edition at 94 levels and has appreciated 8 % since then. The scrip is a market out-performer with high relative strength of 298 ( 100 = base ) and is making a strong chart formation which suggests further appreciation being likely. We recommend a hold for now and buying on declines.
Your call of action - Buy on declines to the 95 levels and hold with a stop loss at the 85 levels. Expect to book profits at the 115 - 120 levels partially and at 150 completely in the longer term.
Asahi India I Bharat Forge I Indian Hotels I KEC International I Omax Auto I Shriram Transport I Midcap index I Top I Close window I Print page
Shriram Transport - this low priced scrip is showing good strength as the chart shows a consistent rising tops and bottoms formation and the scrip has not closed below it's medium term average of 30 weeks, which is a bullish indicator. With a high relative strength of 204, this scrip is a market out-performer. We recommend a buy for the patient and discipline trader.
Your call of action - Buy at current marginally lower levels of 31 - 33 and hold with a stop loss at the 28 mark. Expect to book profits at the 40 levels.
Asahi India I Bharat Forge I Indian Hotels I KEC International I Omax Auto I Shriram Transport I Midcap index I Top I Close window I Print page
CNX Mid-cap Index - this index shows a very high relative strength as compared to the Sensex of 400 + and is outperforming all benchmark indices. That tells us that the mid cap rally remains intact and investors may continue to hold mid cap stocks / buy on declines. A recent flag formation shows that this index is capable of another 100 point rally by the budget time. We remain positive on the mid cap segment.
Your call of action - CNX Midcap index is not tradable and this is an academic study only.
Asahi India I Bharat Forge I Indian Hotels I KEC International I Omax Auto I Shriram Transport I Midcap index I Top I Close window I Print page
- Have a profitable week.
- Vijay L Bhambwani
- Ceo :- Bsplindia.com
The author is a Mumbai based investment consultant and invites feedback at Vijay@BSPLindia.com and ( 022 ) 23438482 / 23400345.
SEBI disclosure :- The author has no positions in any securities mentioned above.
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