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Mid-cap stocks of the week Nov 07, 2004
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. |
Allahabad Bank - this PSU banking stock is an exception to our cautious view on the PSU sector banks as it is a turnaround story. The restructuring efforts of the bank are showing in the share price and the same is rising in a higher tops and bottoms formation. That is a sign of a bull market pattern. The scrip derives tremendous support at the 30 week SMA and that should be used as a stop loss in the interim. We recommend a buy on the scrip as it is a market out-performer with high relative strength.
Your call of action - Buy on dips at the 45 / 47 levels and hold with a stop loss at the 41 mark. Expect profit taking at the 60 + levels in a few months in a conducive market.
Allahabad Bank I Amtek Auto I BEML I ICI I Infotech Ent I Mico I Pricol I Stride Arcolabs I Sun Pharma I Tube Investments I Midcap index I Close window I Print page
Amtek Auto - This ancillary stock is rising faster than the benchmark indices and has signalled a breakout above the previous congestion levels with a surge in traded volumes. The outlook on the auto ancillary units is being re-rated higher and we recommend a buy in small / medium lots for the discerning investor.
Your call of action - . Buy at the 170 / 175 levels and hold with a stop loss at the 148 mark. Expect profit taking above the 210 levels in the near / medium term.
Allahabad Bank I Amtek Auto I BEML I ICI I Infotech Ent I Mico I Pricol I Stride Arcolabs I Sun Pharma I Tube Investments I Midcap index I Close window I Print page
Bharat Earth Movers - this scrip is another high relative strength story with a bullish chart pattern, which is on a threshold of a breakout of a congestion level. Any sustained trading above the 277 levels will see the scrip clear a congestion hurdle and the outlook will improve tremendously. Buying is recommended if the breakout is achieved on high volumes.
Your call of action - Buy if the scrip shows a strong breakout above 277, hold with a stop loss at the 255 levels and expect profit taking at the 300 - 310 in a conducive market, especially if the breakout is on high volumes.
Allahabad Bank I Amtek Auto I BEML I ICI I Infotech Ent I Mico I Pricol I Stride Arcolabs I Sun Pharma I Tube Investments I Midcap index I Close window I Print page
ICI Ltd - this scrip is another market out-performer with high relative strength which makes it a safer bet in the investment arena. The scrip has broken out above the previous highs and managed a close above the crucial 212 levels. We recommend an investment buy decision on the counter.
Your call of action - Buy at the 210 - 212 levels and hold with a stop loss at the 188 levels. Expect profit booking at the 245 - 250 levels in a firm market in the near term.
Allahabad Bank I Amtek Auto I BEML I ICI I Infotech Ent I Mico I Pricol I Stride Arcolabs I Sun Pharma I Tube Investments I Midcap index I Close window I Print page
Infotech Enterprises - this tech counter has been recommended in the past at the 140 levels and has appreciated 20 % since then. The upmove is accompanied by a saucer formation on the oscillators and the outlook is bullish. The scrip is above a 11 month congestion level and can be bought by momentum players in small / medium lots.
Your call of action - Buy above 165 and hold with a stop loss at the 148 levels. Expect profit taking at the 200 + levels in a few weeks time frame in a conducive market
Allahabad Bank I Amtek Auto I BEML I ICI I Infotech Ent I Mico I Pricol I Stride Arcolabs I Sun Pharma I Tube Investments I Midcap index I Close window I Print page
Mico - This scrip was recommended by us for the serious and patient long term players with atleast a years time frame. The scrip makes new highs and is a strong market out-performer. The relative strength is higher than the indices and we expect the stock to perform well over the next 12 month time frame. We re-affirm a buy even now.
Your call of action - Buy at the current levels and keep a liberal stop loss at the 1650 levels. Expect the profit taking level to be above 2250 - 2300 + in a years time.
Allahabad Bank I Amtek Auto I BEML I ICI I Infotech Ent I Mico I Pricol I Stride Arcolabs I Sun Pharma I Tube Investments I Midcap index I Close window I Print page
Premier Instruments - This auto ancillary is a beneficiary of the automobile boom and is a proven out performer of the indices. The scrip is making consistent highs and an unfailing rising tops and bottoms formation. Once the threshold level of 40 has been cleared, we expect a faster upmove in the near term. Buying is recommended.
Your call of action - Buy at current levels with a stop loss at the 34 / 35 levels and expect to book profits at the 52 / 54 levels in the near / medium term in a conducive market.
Allahabad Bank I Amtek Auto I BEML I ICI I Infotech Ent I Mico I Pricol I Stride Arcolabs I Sun Pharma I Tube Investments I Midcap index I Close window I Print page
Stride Arcolabs - This scrip was recommended by us ever since it surged past the 168 resistance and closed above it. The traded volumes have surged and the trader interest on the counter is fairly high. We recommend a buy for the mid cap / momentum players. Being a highly volatile play, a liberal stop loss with smaller exposure is recommended.
Your call of action - Buy as long as the scrip trades above the 200 levels and hold with a stop loss at the 184 levels. Expect profit taking at the 220 - 225 levels in a conducive market in the near / medium term.
Allahabad Bank I Amtek Auto I BEML I ICI I Infotech Ent I Mico I Pricol I Stride Arcolabs I Sun Pharma I Tube Investments I Midcap index I Close window I Print page
Sun Pharma - This pharmaceutical player is showing a classic bullish formation as the scrip makes higher tops and bottoms formation. The only concern is the poor traded volumes which means investors should take lower exposure on the counter. The scrip is a high relative strength market out-performer and is slated to scale greater heights as the upward momentum gains. We would feel comfortable buying above the 475 levels with volumes on the breakout being consistently higher than 50,000 shares / day on the BSE.
Your call of action - Buy on a breakout above the 475 mark and hold with a stop loss at the 455 levels. Expect profit taking past the 500 levels in a conducive market in the short / medium term.
Allahabad Bank I Amtek Auto I BEML I ICI I Infotech Ent I Mico I Pricol I Stride Arcolabs I Sun Pharma I Tube Investments I Midcap index I Close window I Print page
Tube Investments - This scrip was recommended recently in this newsletter and has exceeded our expectations as the short term flare up has been beyond our expectations. The breakout above the 175 levels has been a trigger that has the bulls lending aggressive support to the stock on declines. We advocate a buy as the scrip is a very strong market out-performer.
Your call of action - Buy on minor declines to the 180 - 185 levels and hold with a stop loss at the 166 levels. Expect to book profits at the 220 - 225 levels in a conducive market in the near / medium term.
Allahabad Bank I Amtek Auto I BEML I ICI I Infotech Ent I Mico I Pricol I Stride Arcolabs I Sun Pharma I Tube Investments I Midcap index I Close window I Print page
CNX Mid-cap Index - The weekly bar chart of the CNX midcap index shows a breakout from a flag formation ( explained in the flavours of the week ) and the possibility of a further upmove from here. The oscillators are in an upmove and the relative strength is higher compared to the BSE Sensex. The 2000 levels will be a floor below which the midcap index is unlikely to go. Watch this level in the coming week. We expect the index to surpass the 2500 levels in 5 - 6 months time frame in a bullish market.
Your call of action - .
Allahabad Bank I Amtek Auto I BEML I ICI I Infotech Ent I Mico I Pricol I Stride Arcolabs I Sun Pharma I Tube Investments I Midcap index 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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