The Professional Ticker Reader

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Mid-cap stocks of the week June 25, 2005

The Mid cap stocks listed below are Nifty 200 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.

Berger Paints - This scrip was identified by us when it quoted at 40 levels and recommended as a buy. The recommended dates were Feb 12, May 14 and June 18, 2005. Click here to view the previous recommendations. Our investors have made atleast 60 % appreciation on this counter and the prospects still hold good. Technical traders may note the higher relative strength of 825 vis-a-vis the Nifty ( where 100 = base ) which imbibes bullish confidence. The traded volumes have seen a significant spurt and that is a healthy sign. The oscillators are pointing towards a continued uptrend and we recommend a buy on declines.

Your call of action - Hold existing long positions and buy the scrip afresh at lower levels of 55 with a view to average in pyramid style till the 50 mark. Expect to book profits at the 72 - 75 levels in a medium / long term time frame in a bullish market. A stop loss at the 47 levels is advised.

Berger Paints I Blue Dart I Colour Chem I Indus Ind Bank I ITI I Tata Info I Trent I Midcap index I Top I Close window I Print page

Blue Dart - This scrip was recommended as a buy last week and has appreciated since then. Click here to view the previous recommendations. The only negative on this counter is the lower traded volumes which are indicating larger price swings with little buying / selling pressure. The services sector will be the next big story in the equities markets and Blue dart is an established name in the game. The high relative strength of 248 vis-a-vis the Nifty ( where 100 = base ) is confidence inspiring. The scrip currently trades at it's lifetime highs and faces little / no resistance. The directional indicators are pointing towards a continued uptrend and we recommend a buy on all declines.

Your call of action - start buying afresh at the 370 - 375 levels and average in pyramid fashion at lower levels till the 340 mark. Maintain a stop loss at the 300 levels and expect to book profits at the 450 + levels in the medium / long term.

Berger Paints I Blue Dart I Colour Chem I Indus Ind Bank I ITI I Tata Info I Trent I Midcap index I Top I Close window I Print page

Colour Chem - we are initiating coverage on this company with a bullish outlook. Technical traders may note the long period of consolidation between the 200 - 275 range. The traded volumes tend to be subdued and the oscillators are pointing towards a bullish outlook. A confirmatory trade above the 300 mark on a continous closing basis will be a buy signal for the patient and disciplined investors. Buying must be in small lots as the liquidity is a slight concern.

Your call of action - buy once the scrip has traded above the 300 levels for atleast 3 days on relatively higher volumes. Maintain a stop loss at the 265 levels and expect to book profits at the 365 levels in the short / medium term.

Berger Paints I Blue Dart I Colour Chem I Indus Ind Bank I ITI I Tata Info I Trent I Midcap index I Top I Close window I Print page

Indus Ind Bank - previously recommended as a buy above the 66 - 68 levels, this scrip has been proven as a market out-performer. Earlier recommended dates were May 28 and June 04, 2005. Click here to view the previous recommendations. We feel a consolidation in the private banking space is likely to witness a bullish outlook for this scrip which may witness polarised buying focus for some more time.

Your call of action - buy the scrip only after a continous trade over the 70 mark and hold with a stop loss at the 65 - 66 levels. Expect to book profits at the 75 + levels in the near term. Buying is recommended in small lots only.

Berger Paints I Blue Dart I Colour Chem I Indus Ind Bank I ITI I Tata Info I Trent I Midcap index I Top I Close window I Print page

ITI - we initiate coverage on this counter with a bullish outlook and recommend a buy with a conditional view. The scrip must trade consistently above the 30 levels with higher volumes in excess of 5 lakh shares on the NSE per day. A breakout would then be confirmed. The directional index is pointing towards a build-up of upward momentum and traded volumes are a significant improvement over the last 6 months average. Buying is recommended.

Your call of action - Buy only after a consistent closing above the 30 levels is achieved on higher volumes. Maintain a stop-loss at the 25 levels and expect an upmove to the 36 - 38 levels in the short / medium term.

Berger Paints I Blue Dart I Colour Chem I Indus Ind Bank I ITI I Tata Info I Trent I Midcap index I Top I Close window I Print page

Tata Info - this scrip is showing signs of unusual price / volumes activity as the chart indicates. The oscillators are pointing towards a uptrend and the price graph itself shows a higher tops and bottoms formation. The higher relative strength of 117 vis-a-vis the Nifty ( where 100 = base ) is confidence inspiring and a 2 year record of trading above the SMA's a major positive. We recommend a buy for the patient and discerning investor with a medium / long term perspective - in small lots.

Your call of action - buy on declines to the 185 - 195 levels and average lower in pyramid style till the 160 levels. Expect to book profits at the 260 + in a medium / long term time frame. A stop loss at the 140 - 145 levels is advocated.

Berger Paints I Blue Dart I Colour Chem I Indus Ind Bank I ITI I Tata Info I Trent I Midcap index I Top I Close window I Print page

Trent - this scrip was recommended at 600 levels vide our editions dtd May 21 & 28 and June 04 & 18, 2005. Click here to view the previous recommendations. The scrip has performed exceedingly well and is a major retail story in the markets. The higher relative strength of 260 vis-a-vis the Nifty ( where 100 = base ) is a positive indicator and the oscillators are supporting the upmove. The traded volumes are erratic, which makes this counter highly volatile on a day to day basis. We therefore recommend a buy on major declines only.

Your call of action - Buy on major declines to the 620 - 625 levels and hold with a stop loss at the 590 mark. Expect to book profits at the 750 + levels in a medium / long term time frame in a bullish market.

Berger Paints I Blue Dart I Colour Chem I Indus Ind Bank I ITI I Tata Info I Trent I Midcap index I Top I Close window I Print page

CNX Mid-cap Index - this index is now under a consolidation phase after a breath taking run upwards. Having out-performed the BSE Sensex and the Nifty 50, a brief corrective phase is justified. The overall outlook however, remains bullish. The probability of a 3350 - 3400 level in the next 4 - 6 months becomes a fair reality if the current corrective phase does not see a break below the 2910 levels on a closing basis.

Your call of action - since this index cannot be traded, it is a pure academic study only.

Berger Paints I Blue Dart I Colour Chem I Indus Ind Bank I ITI I Tata Info 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