The Professional Ticker Reader

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Mid-cap stocks of the week July 09, 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.

Individual stocks.

Blue Dart - This scrip was recommended earlier vide editions dtd June 18 and 25, 2005. Click here to view the previous recommendations. This scrip is getting re-rated as is the entire services industry. The breakout above 400 is a positive trigger ( although the poor volumes remain a concern ). The oscillators are pointing towards a bullish outlook and the high relative strength of 268 vis-a-vis the Nifty ( where 100 = base ) is confidence inspiring. The upward momentum is building up and a sustained close above the 400 levels will see a new trading zone where no past resistance exists. We recommend a buy on declines in small lots due to the poor liquidity.

Your call of action - Buy near the 400 - 410 levels and hold with a stop loss at the 370 mark. Expect to book profits at the 460 - 470 levels in the medium term in a conducive market scenario.

Blue Dart I Century Text I Indus Ind Bank I Tata Infomedia I LG Bala I Mothersun Sumi I Neyveli Lignite I Pidilite Inds I Rico Auto I Tata Elxsi I Trent I UTI Bank I West Coast Paper I Midcap index I Top I Close window I Print page

Century Text - this scrip was recommended vide our earlier newsletters dtd. Sept 19, Oct 09 2004 and April 30, June 05 & 26 and July 02, 2005 and has been a multi bagger for our veteran subscribers. Click here to view the previous recommendations. This scrip was facing resistance at the 275 levels, which are now surpassed. The rally has been on higher volumes which is confidence inspiring. The continued higher tops and bottoms formation is pointing towards the scrip surging higher in the months to come. Barring profit sales, we don not anticipate major falls. Maintain a buying bias.

Your call of action - buy on declines to the 275 levels and average in a pyramid fashion till the 250 mark. Hold with a stop loss at the 225 levels. Expect profit taking at the 350 + levels in the medium term. Long term players may expect higher levels.

Indus Ind Bank - This scrip was recommended vide our editions dtd May 28, June 04 & 25, 2005. Click here to view the previous recommendations. This scrip is in the second phase of the upmove and is making a higher tops and bottoms formation which is a bullish indicator. The traded volumes have jumped and the upmove is gaining momentum as can be seen from the oscillators. We stand by our target of 82 / 84 in the short / medium term and recommend a buy.

Your call of action - Hold existing long positions and add on declines to the 71 - 72 levels. Maintain a stop loss at the 67 levels and expect to book profits at the 82 / 84 levels in the short / medium term.

Tata Infomedia - This scrip moves in spurts and has been in a bullish pattern since 24 months. The upward momentum is picking up and the traded volumes are showing signs of perking up. The higher relative strength of 135 vis-a-vis the Nifty ( where 100 = base ) is confidence inspiring and the we feel the scrip warranties a buy on declines.

Your call of action - Buy in small lots on declines to the 180 - 185 mark and average lower till the 165 levels. Maintain a stop loss at the 150 level. Expect to book profits at the 260 - 270 in over 8 - 10 months.

LG Bala - This scrip was recommended vide our earlier editions dtd Mar 19, May 07, 14 & 18 and June 18, 2005. Click here to view the previous recommendations. This scrip has performed well as per our expectations and is likely to surge higher. The chart is indicating a rising tops and bottoms formation and the oscillators are confirming the uptrend. The relative strength is rising rapidly and as long as the scrip stays above the 37 levels, the bullishness should continue. We recommend a buy on declines.

Your call of action - Buy on declines to the 37 levels and hold with a stop loss at the 33 mark. Expect to book profits at the 45 levels in the medium term. Long term players may expect higher levels.

Mothersun Sumi - this scrip exhibits a strong chart formation and is displaying a high relative strength of 673 vis-a-vis the Nifty ( where 100 = base ). The oscillators are pointing towards a strong undertone and the scrip currently trades at the all time highs. As long as the 70 levels are not violated on a closing basis, the uptrend should continue. We recommend a buy on declines for the patient trader / investor.

Your call of action - Buy on declines to the 70 - 72 levels and hold with a stop loss at the 64 mark. Expect to book profits at the 85 + levels in the medium term in a conducive market.

Neyveli Lignite - This scrip has shown signs of breaking out of a congestion pattern after a closing above the 78 mark. The traded volumes need to perk up to confirm the sustainability of the upmove. The high relative strength of 765 is confidence inspiring and we feel a sustained trade above the 80 levels will cause an accelerated upmove on the counter. The oscillators confirm our view that the scrip holds out promise for the bulls. We recommend a buy on advances.

Your call of action - Buy once the 80 levels are breached on a conclusive closing basis and hold with a stop loss at the 74 mark. Expect to book profits past the 92 mark in the medium term.

Pidilite Inds - This scrip was recommended vide earlier editions dtd May 28 and June 11 & 18 2005. Click here to view the previous recommendations. This oft repeated scrip has performed well and the the relatively poor volumes show signs of picking up. The scrip is due for a stock split and higher liquidity is likely to ensue. The relative strength is going up and currently reads 301 vis-a-vis the Nifty ( where 100 = base ). The oscillators are pointing towards a bullish undertone and the the scrip is in the second leg of the upmove. We recommend a buy for the long term investor.

Your call of action - Buy on declines to the 500 - 510 mark and hold with a stop loss at the 470 levels. Expect to book profits at the 570 levels in the medium term.

Rico Auto - This scrip was recommended vide our earlier edition dtd May 07, 2005. Click here to view the previous recommendations. This scrip has signalled a breakout after it managed to close above the 75 levels with high volumes. The auto ancillary segment is doing well and this scrip is exhibiting a strong chart pattern as the higher tops and bottoms formation is confidence inspiring. The oscillators confirm the bullish outlook and the high relative strength of 651 vis-a-vis the Nifty ( where 100 = base ) is a sign of comfort. We recommend a buy.

Your call of action - buy on declines to the 76 - 78 levels and average in pyramid style till the 71 mark. Maintain a stop loss at the 66 levels and expect to book profits at the 100 + levels in the medium / long term.

Tata Elxsi - This scrip is a steady performer and the chart pattern suggests a higher tops and bottoms formation that shows a sustained performance over the last 18 months. The high relative strength of 436 is confidence inspiring and the indications are that of a build-up in the upward momentum. As long as the stock stays above the 190 levels, expect the upmove to sustain itself. We recommend a buy.

Your call of action - Buy at the current levels and average till the 188 levels. Hold with a stop loss at the 175 mark and expect profit taking past the 225 levels in the short / medium term. Over the longer term, expect higher levels.

Trent - This scrip was recommended vide our earlier editions dtd May 21 & 28, June 04, 18 & 25 and July 02 2005. Click here to view the previous recommendations. This scrip is undergoing consolidation and we feel the declines will be a fresh entry opportunity for the bulls who missed out on the earlier upmove. Though the upsides from here are likely to be limited as compared to the recent performance, the high relative strength of 256 vis-a-vis the Nifty ( where 100 = base ) is likely to take the scrip past the 800 mark comfortably. Traded volumes need to pick up if the stock is to witness higher retail participation. Buy on declines.

Your call of action - buy at lower levels of 620 - 625 and average lower till the 600 mark. Maintain a stop loss at the at the 575 levels. Expect to book profits at the 700 + levels in the short / medium term and well past the 800 + levels over the 15 - 18 month time frame.

UTI Bank - This scrip was recommended earlier vide our edition dtd July 02 2005. Click here to view the previous recommendations. This scrip has appreciated since the last recommendation and is poised for fresh upmoves as the scrip has achieved a lifetime high closing price. The oscillators are pointing towards a bullish undertone and the we recommend a trading buy on the counter.

Your call of action - buy at the current levels of 263 and hold with a stop loss at the 252. Expect profit taking at the 284 in the short term. The upmove will be accelerated once the 270 levels are surpassed.

West Coast Paper - This scrip was recommended earlier vide our newsletter dtd July 02 2005. Click here to view the previous recommendations. This scrip is likely to witness fresh upsides as the previous top of 250 has been surpassed with higher volumes. Currently quoting at near lifetime highs, the oscillators are pointing towards a firm outlook. As long as the stock trades above the 250 mark, expect the bullishness to sustain. We recommend a buy as the paper sector itself is out-performing the benchmarks.

Your call of action - Buy at the current levels and hold with a stop loss at the 235 mark. Expect to book profits at the 300 + levels in the medium term.

CNX Mid-cap Index - this index is showing signs of out-performing the broader markets and as long as the 3066 levels are not violated, we feel the index is well poised to test the 3350 levels in the next 4 months. On the lower side, critical support is likely at the 2925 levels.

Your call of action - this is an academic study only.

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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