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Mid-cap stocks of the week June 18, 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. |
Berger Paints - this scrip was recommended by us in the recent weeks and has spiralled higher. The scrip is in a one sided upward trajectory and enjoys a very high relative strength of 690 vis-a-vis the Nifty ( where 100 = base ). The oscillators are pointing towards a bullish outlook and the scrip has not fallen below it's short term SMA on a closing basis. We recommend a buy on all declines as the breakout above the 50 levels was on exceptionally high volumes.
Your call of action - Buy on declines to the 54 levels and average up to the 48 levels. Expect to book profits at the 75 + levels in the medium / long term in a conducive market scenario. Previous long positions may be held for now.
Berger Paints I Blue Dart I Essel Propack I L G Bala I Pidilite Inds I Pricol I Trent I Midcap index I Top I Close window I Print page
Blue Dart - this scrip is another high relative strength counter with a reading of 287 vis-a-vis the Nifty ( where 100 = base ). The rally is in it's second leg of the upmove and is likely to gain momentum once the 400 levels are surpassed on a consistent closing basis with higher volumes. This counter is not a heavily traded one in the conventional sense of the word and exposure must therefore be curtailed. Buying is recommended.
Your call of action - Buy at the current levels and leave room for averaging till the 345 levels. Maintain a stop loss at the 320 mark. Expect to book profits past the 470 levels once the 400 levels are conclusively overcome.
Berger Paints I Blue Dart I Essel Propack I L G Bala I Pidilite Inds I Pricol I Trent I Midcap index I Top I Close window I Print page
Essel Propack - This scrip is in a bullish trend as can be seen from the chart pattern. Currently also in it's second leg of the uptrend, the scrip enjoys a higher relative strength of 131 vis-a-vis the Nifty ( where 100 = base ). The directional oscillators are pointing towards a strength in the uptrend and the congestion level of 345 once surpassed, will see an accelerated upmove. The magnitude of the rally will be determined by the volumes on this breakout.
Your call of action - Buy on a sustained breakout above the 345 levels on higher volumes and hold with a stop loss at the 305 levels. Expect to book profits at the 395 - 405 in a conducive market scenario in the medium term. Long term players may expect 440 - 445 levels in a conducive market scenario.
Berger Paints I Blue Dart I Essel Propack I L G Bala I Pidilite Inds I Pricol I Trent I Midcap index I Top I Close window I Print page
L G Bala - This scrip was another recent recommendation that performed well and still merits a buy. The scrip is gaining strength vis-a-vis the Nifty and the oscillators are showing a powerful upmove in the making above a trading band above the 45 / 47.50 levels. We feel patient traders / investors should add this stock in their portfolios for the long term.
Your call of action - Buy the scrip at the current levels and hold with a stop loss at the 30 mark. Averaging downwards till the 35 levels is also advised. Expect to book profits at the 60 + levels in the medium / long term in a conducive market scenario.
Berger Paints I Blue Dart I Essel Propack I L G Bala I Pidilite Inds I Pricol I Trent I Midcap index I Top I Close window I Print page
Pidilite Inds - this scrip was recommended twice in the recent past and has been a good performer as it has appreciated 10 % since the first recommendation. The only negative being the lower traded volumes, this scrip enjoys a high relative strength of 278 vis-a-vis the Nifty ( where 100 = base ). The oscillators are pointing towards a bullish outlook and we recommend a buy for the patient investors in small lots.
Your call of action - Buy at the current levels and average downwards till the 450 mark. Maintain a stop loss at the 415 levels. Expect to book profits at the 600 + levels in a year's time frame.
Berger Paints I Blue Dart I Essel Propack I L G Bala I Pidilite Inds I Pricol I Trent I Midcap index I Top I Close window I Print page
Pricol - this scrip was recommended when it traded in the 40 - 44 band and has appreciated 30 % since then. The 60 levels are likely to be a hurdle for the counter on the upsides and once a consistent close above this hurdle is achieved with higher volumes, expect the scrip to move into a new zone with almost no resistance. Note the high relative strength of 212 vis-a-vis the Nifty ( where 100 = base ) and the strength in the oscillators. We recommend a hold on existing positions and buy on declines.
Your call of action - Buy at the current levels and hold with a stop loss at the 47 levels. Downward averaging till the 51 levels is advised. Expect to take profits at the 74 levels in a conducive market scenario in the medium / long term.
Berger Paints I Blue Dart I Essel Propack I L G Bala I Pidilite Inds I Pricol I Trent I Midcap index I Top I Close window I Print page
Trent - this scrip was recommended at the 600 levels and was advocated to hit the 700 mark. That target objective has been achieved comfortably and the stock is showing a further sign of strength. The scrip enjoys a high relative strength of 254 vis-a-vis the Nifty ( where 100 = base ) and the oscillators are supportive of an upmove. We recommend a buy on major declines in small lots for the higher risk appetite investors.
Your call of action - buy in small lots on declines to the 655 / 665 levels and hold with a stop loss at the 590 levels. Expect to book profits at the 770 levels in a conducive market scenario in the short / medium term.
Berger Paints I Blue Dart I Essel Propack I L G Bala I Pidilite Inds I Pricol I Trent I Midcap index I Top I Close window I Print page
CNX Mid-cap Index - the midcap index is showing signs of decline as the chart indicates. We have been talking of a 3066 threshold level support which the benchmark has violated. The oscillators are pointing towards a weak outlook and the index may take support at the trend-line at the 2905 levels. Any sustained close below this level with higher volumes and a fresh bout of weakness may ensue.
Your call of action - this is an academic study only.
Berger Paints I Blue Dart I Essel Propack I L G Bala I Pidilite Inds I Pricol I Trent 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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