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Mid-cap stocks of the week Nov 27, 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. |
Asian Hotels - This hotels and hospitality stock was recommended vide our edition dtd Nov 21 Click here to view the previous editions. The scrip has appreciated in the previous week and is trading in a low resistance trading zone. The scrip is making higher tops and bottoms formation and is a high relative strength counter as the RSC reads 195 ( 100 = base ). The oscillators are showing a bullish undertone and the outlook remains positive. The entire sector is bullish on improved international traffic and higher occupancy rates. We recommend a hold on existing positions and buy on declines.
Your call of action - Hold the previous positions and buy afresh on declines to the 270 - 275 levels and keep room for averaging till the 255 levels. Maintain a stop loss at the 240 levels. Expect to book profits at the 350 + levels in a few months time frame in a conducive market. Since this counter is not highly liquid, we advocate lower exposure on this counter.
Asian Hotels I BEML I FDC I Premier Instruments I Rane Brakes I Shanti Gears I Voltas I Midcap index I Top IClose window I Print page
BEML - This scrip was recommended in our earlier edition Dtd Nov 05. Click here to view the previous editions. The scrip is trading in a low resistance zone and almost at 10 year highs, which is a sign of strength. A consistent trading above the 285 levels will be a confirmation of a further bullishness and we recommend buying on this counter for the patient and discerning investor.
Your call of action - Patient investors are advised to buy this scrip on all major declines to the 260 - 265 levels in small lots and leave room for averaging to the 245 mark. Maintain a stop loss at the 230 levels and expect profit taking at the 320 + levels in a conducive market in a few months.
Asian Hotels I BEML I FDC I Premier Instruments I Rane Brakes I Shanti Gears I Voltas I Midcap index I Top IClose window I Print page
FDC - this pharmaceuticals player is showing signs of a breakout above the 10 month old congestion levels and the lifetime highs in the bargain. The relative strength reading of this scrip is one of the highest in the market ( 1697, where 100 is the base ) and we recommend a buy on this counter. Technical traders may note the high volumes on the breakout and the inverted head & shoulder pattern on the weekly chart below. That being a measuring move, it enables us to forecast a price target of 80 - 85 in a conducive market in a few weeks.
Your call of action - buy at the current levels and hold with a stop loss at the 50 mark and expect to book profits partially at the 75 levels and complete profit taking at the 80 - 82 levels in the short / medium term.
Asian Hotels I BEML I FDC I Premier Instruments I Rane Brakes I Shanti Gears I Voltas I Midcap index I Top IClose window I Print page
Premier Instruments - this scrip was recommended in our previous editions Dtd Nov 07 & 21. Click here to view the previous editions. The scrip is in the bullish auto ancillary sector and is a strong market out-performer and has high relative strength of 496 ( 100 = base ) which makes this is scrip a good investment. We recommend a hold on existing positions and a buy on significant declines.
Your call of action - Hold existing positions till 57 - 60 levels and buy on declines to the 45 - 47 levels in case the markets react lower. The stop loss on fresh positions maybe kept at 40 levels and a profit target on all positions ( existing and fresh ) is at the 58 - 60 levels.
Asian Hotels I BEML I FDC I Premier Instruments I Rane Brakes I Shanti Gears I Voltas I Midcap index I Top IClose window I Print page
Rane Brakes - This auto ancillary is another bullish story and a strong market out-performer. With a strong relative strength reading of 442 ( 100 = base ), this stock is a good buy on a confirmatory breakout above the 180 levels. The scrip has started trading above the 52 week SMA and the same has been accompanied by heavy volumes. That is a sign of comfort. The oscillators are showing signs of strength and a breakout above the 180 levels will be the conclusive buy signal.
Your call of action - Buy above the breakout level of 182 once the scrip closes above this level for 1 - 2 session with higher volumes. A stop loss be maintained at the 160 mark and profit taking maybe expected at the 210 - 215 levels in the short / medium term in a conducive market.
Asian Hotels I BEML I FDC I Premier Instruments I Rane Brakes I Shanti Gears I Voltas I Midcap index I Top IClose window I Print page
Shanti Gears - this scrip was recommended recently via SMS alert and the chart is self explanatory. This scrip is riding the auto ancillary boom and is a high relative strength scrip with a reading of 392 ( 100 = base ). The oscillators are pointing to a bullish outlook and buying is recommended on declines. This scrip is for the patient and higher risk appetite investor. Buying maybe initiated in small / medium lots.
Your call of action - hold existing positions and add on major declines to the 30 - 31 levels. Hold with a stop loss at the 27 levels. Expect profit taking at the 42 - 45 levels in a conducive market in the short / medium term.
Asian Hotels I BEML I FDC I Premier Instruments I Rane Brakes I Shanti Gears I Voltas I Midcap index I Top IClose window I Print page
Voltas - This scrip was also recommended via SMS alert recently and has shown appreciation in the recent weeks. This scrip is rising on higher volumes and is a high relative strength counter with a reading of 220 ( 100 = base ). The oscillators show signs of strength and the scrip has indicated a breakout above a congestion of 167 levels. It should be noted that the scrip now trades at it's highest after March 1994 and that indicates significant strength. Should it surpass the 190 levels and trade above it, expect the 210 - 215 levels to be a possibility.
Your call of action - Hold the existing long positions and add on declines to the 170 - 175 levels. Maintain a stop loss at the 160 mark and expect to take profits at the 200 + levels in a conducive market in the medium term.
Asian Hotels I BEML I FDC I Premier Instruments I Rane Brakes I Shanti Gears I Voltas I Midcap index I Top IClose window I Print page
CNX Mid-cap Index - The midcap index was advocated by us as being bullish and a flag formation was suggested as a strong breakout indicator. Click here to view the previous editions. The graph is making higher tops and bottoms formation and has the steam to surge ahead further. The index is at an all time high and shows promise of out-performing the benchmark Nifty 50 & BSE 30 in the coming weeks. Our target on the upside is 2334 in the near term and support on the downside is at the 2225 in the coming week.
Your call of action - this is an academic study only.
Asian Hotels I BEML I FDC I Premier Instruments I Rane Brakes I Shanti Gears I Voltas I Midcap index I Top IClose 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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