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Mid-cap stocks of the week Jan 02, 2005
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 - this safety glass manufacturer was recommended by us earlier vide our edition dtd Dec 12, 2004 and has shown bullishness on the charts. Click here to view the previous reports. Technical analysts may please notice how the chart is showing a continued higher tops and bottoms formation and the scrip is near it's congestion levels of 155, above which it enters a new trading zone. The oscillators are pointing towards a bullishness in the undertone and the scrip enjoys a very high relative strength of 427 ( 100 = base ). We recommend a buy on the counter.
Your call of action - Buy at the 145 - 150 levels and await a breakout above the 155 mark for an accelerated upmove. Maintain a stop loss at the 130 levels and expect to book profits at the 185 - 190 levels in the pre budget run upwards.
Asahi India I BILT I CESC I Essar Steel I KEC Intl I Pricol I Midcap index I Top IClose window I Print page
Ballarpur Industries - this paper scrip is in an uptrend as the monthly chart below shows. Technical traders may note the rounding bottoms formation and the 15 month SMA turning higher in a classic bullish formation. The oscillators are showing a classic bullish formation and the traded volumes are rising. It is interesting to note that the scrip has managed to close at it's highest since Aug 30, 1996. We recommend a buy for the patient and disciplined investor.
Your call of action - Buy the scrip as long as it stays above the 90 levels and enforce a protective stop loss at the 74 levels. Expect to book profits above the 120 levels in a few months in a conducive market scenario.
Asahi India I BILT I CESC I Essar Steel I KEC Intl I Pricol I Midcap index I Top IClose window I Print page
CESC - this electricity generating company was recommended by us earlier vide our editions dtd Sept 05, Sept 19, Oct 03, Oct 10, 2004 ( Click here to view the previous reports ) and has been a profit spinner for traders. The scrip is now a market out-performer with the relative strength reading 116 ( 100 = base ) and the oscillators moving in tandem with the price graph. The price graph shows a closing above it's immediate congestion level of 160. Technical analysts may note that this level is the highest since May 1995. That shows a sign of absolute strength and we recommend a buy for the patient investor.
Your call of action - Buy the scrip near the 160 levels and hold with a stop loss at the 134 mark. Expect to book profits near the 200 mark in a few months in a conducive market scenario.
Asahi India I BILT I CESC I Essar Steel I KEC Intl I Pricol I Midcap index I Top IClose window I Print page
Essar Steel - this steel scrip was recommended vide our earlier edition dtd Sept 19 and Dec 26, 2004. Click here to view the previous reports. The scrip has performed as per our expectations and has rewarded bulls handsomely. It needs to be noted that the scrip is still a poor performer as compared to the benchmark indices with a relative strength less than 100. The scrip has managed a close at near it's Dec 1995 levels and exhibited a rounding bottom formation on the monthly charts. That shows a strength in the upward momentum for now. We recommend a buy on minor declines for the higher risk appetite traders.
Your call of action - Buy in small lots at the current prices and add on minor declines to the 35 / 37 levels. Keep a stop loss at the 32 levels. Expect profit taking at the 50 + levels in the medium term in a conducive market scenario.
Asahi India I BILT I CESC I Essar Steel I KEC Intl I Pricol I Midcap index I Top IClose window I Print page
KEC International - this scrip is another upcoming market out-performer as the relative strength is climbing. Note the rising tops and bottoms formation and support received at the 13 week SMA. That imbibes confidence amongst the bulls and the oscillators are in a buy mode. The scrip has managed to close at it's highest since July 1996 and entered a bull zone after closing above the 95 levels. We recommend a buy on the counter for the patient investor.
Your call of action - Buy the scrip at the 130 levels and hold with a stop loss at the 118 levels. Maintain a target price at the 165 - 170 in the near to medium term and 200 + in the long term.
Asahi India I BILT I CESC I Essar Steel I KEC Intl I Pricol I Midcap index I Top IClose window I Print page
Premier Instruments - This scrip was repeatedly recommended by us in our earlier editions dtd Nov 7, Nov 21 and Nov 27, 2004. Click here to view the previous reports. The scrip has appreciated to the targetted levels and beyond rewarded the bulls handsomely. Technical analysts will note that the scrip has one of the highest relative strengths in the auto ancillary segment at the 477 mark as current reading ( 100 = base ). The scrip trades at it's lifetime highs and that is a sign of strength. We recommend a buy on declines for the patient and savvy player.
Your call of action - Buy on declines to the 50 - 52 levels and hold with a stop loss at the 43 levels. Expect to book profits at the 65 + levels in the pre-budget rally.
Asahi India I BILT I CESC I Essar Steel I KEC Intl I Pricol I Midcap index I Top IClose window I Print page
CNX Mid-cap Index - this index was advocated by us as a out-performer as compared to the BSE & NSE indices and a target of 2625 was advocated last week. The index has missed that mark marginally buy maintained it's bullishness. The flag formation has enabled technical traders to compute the upsides as this formation is a measuring move. Expect the 2750 levels in the pre-budget period in a conducive market scenario.
Your call of action - trade the Nifty 50 instead.
Asahi India I BILT I CESC I Essar Steel I KEC Intl I Pricol I Midcap index I Top IClose 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.
- While all due care has been taken while in compiling the data enclosed herein, we cannot be held responsible for errors, if any, creeping in. Please consult an independent qualified investment advisor before taking investment decisions. This mail is not sent unsolicited, and only advisory in nature. We have accepted no consideration from any company mentioned above and recommend taking decisions on merits of the stocks from our viewpoint. This email is being sent to you as a paid subscriber. Please protect your interests and ours by not disclosing the contents to any un-authorised person/s
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