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Mid-cap stocks of the week June 05, 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. |
Alok Inds - this textile scrip was recommended for small gains last week and performed as per our expectations and profits were booked at 69 levels in the June series. This week, we re-affirm our trading buy for adventurous traders as the scrip has confirmed a breakout from it's bearish channel and closed comfortably above it. The traded volumes have jumped and the scrip is a recent addition in the f&o list. The red trend-line within the channel marks a crude inverted head and shoulder formation ( crude, as the head is not significantly bigger than the shoulders ). Being a measuring move, we forecast a target price of 73 in the spot and recommend a speculative buy for traders. F&o traders will note the huge build-up of positions on the counter recently.
Your call of action - buy at the current levels and hold with a stop loss at the 65 mark. Expect to book profits at the 72 / 73 levels in the near term.
Alok Inds I Electrosteel I Essel Propack I Hind Motor I Indus Ind Bank I Pricol I Trent I Tube Inv I Midcap index I Top I Close window I Print page
Electrosteel - this scrip was recommended recently and is in the news for the right reasons. A consistent performer and an institutional play, the scrip is currently being re-rated. The traded volumes are on the upswing and the scrip itself trends in the bullish channel ( please note the chart is monthly ). A higher tops and bottoms formation is a bullish indicator and so is the high relative strength of 400+ vis-a-vis the Nifty ( where 100 = base ). As long as the scrip stays above the 400 levels, we expect a price target of 700 + in the next 18 - 24 months. A buy for the patient and disciplined investor.
Your call of action - Buy at the current level and hold with deep stop loss at the 350 mark. Expect to book profits at the 515 levels in the medium / long term and above 700 levels in 2 years in a conducive market scenario.
Alok Inds I Electrosteel I Essel Propack I Hind Motor I Indus Ind Bank I Pricol I Trent I Tube Inv I Midcap index I Top I Close window I Print page
Essel propack - this scrip is an erstwhile favourite which is getting back in the circuit after a long hiatus. The chart pattern is enthusiastic as the scrip is in a higher tops and bottoms formation with the previous significant top of 300 being comfortably surpassed. The scrip has higher relative strength of 132 vis-a-vis the Nifty ( where 100 = base ) and the directional indicator shows an uptrend in progress. As long as the 325 levels are not breached lower, we expect the 350 levels in the short / medium term and the 420 levels in 8 - 12 month time frame. Buying is recommended.
Your call of action - Buy as long as the scrip stays above the 325 levels and hold with a stop loss at the 295 levels. Expect to book profits at the 400 + levels in the medium / long term ( maximum 1 year ) in a conducive market scenario.
Alok Inds I Electrosteel I Essel Propack I Hind Motor I Indus Ind Bank I Pricol I Trent I Tube Inv I Midcap index I Top I Close window I Print page
Hind Motor - this scrip has returned back to favour as a momentum play after a decade ( or more ) of isolation. Traded volumes have zoomed and news of the aggressive turnaround in the fortunes of the scrip are doing the rounds. Chartically speaking, the 24 - 25 levels are a crucial support levels to watch out for. As long as the scrip stays above this level, expect the upmove to remain intact. The upsides can see 44 levels being tested / surpassed in the near / medium term in a conducive market scenario. We recommend a speculative buy on the counter.
Your call of action - Buy at the current levels and hold with a stop loss at the 25.50 levels. Expect to book profits at the 40 + levels in a conducive market scenario in the short / medium term.
Alok Inds I Electrosteel I Essel Propack I Hind Motor I Indus Ind Bank I Pricol I Trent I Tube Inv I Midcap index I Top I Close window I Print page
Indus Ind Bank - this scrip was recommended last week and achieved it's target of 70 + levels after triggering a buy above the 65 mark. The stock had been trading in a bearish channel and has broken out after being introducing in the f&o list. Traded volumes have seen a sharp spurt. A speculative buy on declines is advocated.
Your call of action - Buy at 64 / 65 levels and hold with a stop loss at the 61 mark. Expect to book profits at the 71 + levels in the short term in a conducive market scenario.
Alok Inds I Electrosteel I Essel Propack I Hind Motor I Indus Ind Bank I Pricol I Trent I Tube Inv I Midcap index I Top I Close window I Print page
Premier Instruments Controls - this scrip was frequently recommended when it quoted at the 40 - 44 band and has seen a 30 % appreciation. The scrip trades near the lifetime highs and the traded volumes have improved. The high relative strength of 246 vis-a-vis the Nifty ( where 100 = base ) is confidence inspiring and the oscillators are signalling bullishness. A breakout above the 60 levels will be a conclusive buy signal for the bulls and a 20 % appreciation is not ruled out. Buying is recommended.
Your call of action - Buy above a confirmed breakout above the 60 levels with higher volumes. Hold with a stop loss at the 52 - 53 levels. Expect to book profits above the 72 levels in a conducive market scenario in the short / medium term.
Alok Inds I Electrosteel I Essel Propack I Hind Motor I Indus Ind Bank I Pricol I Trent I Tube Inv I Midcap index I Top I Close window I Print page
Trent - This scrip was recommended as a buy above 600 and a target of 700 was specified last week. That target is met and the scrip manages to display higher relative strength as the high RSC reading of 248 vis-a-via the Nifty ( where 100 = base ) shows a positive outlook. As long as the scrip manages to stay above 600 levels, it is likely to remain bullish. We recommend a buy on significant declines only.
Your call of action - buying is recommended at the 640 - 650 levels and a stop loss be maintained at the 600 levels. Expect to book profits at the 750 - 770 levels in a conducive market scenario in the short / medium term. Over the longer term, expect higher levels.
Alok Inds I Electrosteel I Essel Propack I Hind Motor I Indus Ind Bank I Pricol I Trent I Tube Inv I Midcap index I Top I Close window I Print page
Tube Inv - this scrip has seen a stupendous rally since 24 months and has proved to be a multi-bagger ( x 6 ) as our investors will recollect in our previous years recommendation. The rally is on a higher tops and bottoms formation and in a near trend line fashion. As long as the scrip stays above the 300 levels, expect the bullishness to continue. The high relative strength of 214 vis-a-vis the Nifty ( where 100 = base ) is confidence inspiring and the relatively poor traded volumes remain the only concern. Buy only for the long term in small lots.
Your call of action - buy at current levels and maintain a stop loss at the 270 levels. Expect to book profits at the 375 + levels in the medium term.
Alok Inds I Electrosteel I Essel Propack I Hind Motor I Indus Ind Bank I Pricol I Trent I Tube Inv I Midcap index I Top I Close window I Print page
CNX Mid-cap Index - this index has seen a spectacular rise in the last few months as the chart indicates. The support is at the 2900 level and 3060 levels will be a resistance in the coming week. We feel the outlook for the midcap segment is clearly that of consolidation and the risk / reward ratio is evenly matched. We suggest going easy on mid cap investments at these levels and traded / invested quantum to be kept curtailed.
Your call of action - this is a pure academic study only.
Alok Inds I Electrosteel I Essel Propack I Hind Motor I Indus Ind Bank I Pricol I Trent I Tube Inv 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.
- 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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