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Mid-cap stocks of the week Oct 17, 2004
The Mid cap stocks listed below are mostly 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. |
Bombay Dyeing - this Wadia group company is a textile major and restructuring it's business. The company is grabbing market share in the garments business. Lower cotton prices and a bumper crop is likely to add to the bottomline. As recommended in the earlier editions. the scrip has signalled a breakout from a bullish channel and is a positive trigger for the scrip. The price is likely to retrace lower in tandem with the broader markets, where value buying maybe attempted selectively. The oscillators are pointing towards strength and as long as the scrip remains above the 160 mark, the outlook remains positive.
Your call of action - Buy on lower levels at the 165 mark and hold with a stop loss at the 150 mark, which is the 52 week average. Expect to book profits at the 195 - 205 levels in the short / medium term. Buy in small lots only.
Bombay Dyeing I Century Enka I EID Parry I Guj Ind Power I Infotech Ent I Maharashtra Seamless I SKF Bearings I Titan Inds I Close window I Print page
Century Enka - this stalwart is regaining it's sheen as the cotton crop is cause for cheer in this segment. The scrip shows technical strength as the congestion levels of 140 ( a double top formation ) has been surpassed. The moving averages exhibit a bullish formation as the short term averages are above the longer term averages and the price graph is above the averages. The oscillators indicate that the best is yet to come - should the markets remain conducive. We recommend a buy for the patient & discerning investor.
Your call of action - Buy at the current levels of 145 levels with a stop loss at the 132 levels. Expect to book profits at the 165 - 170 levels in the near / medium term. Buy in staggered lots in case the markets correct lower, in order to achieve a better average acquisition cost.
Bombay Dyeing I Century Enka I EID Parry I Guj Ind Power I Infotech Ent I Maharashtra Seamless I SKF Bearings I Titan Inds I Close window I Print page
EID Parry - This sugar / confectionery diversified south based company is riding the wave as the industry gets re-rated. The scrip makes higher bottoms / tops formation and the oscillators are pointing towards a strength in the undertone. The 280 levels were a congestion zone which the scrip has surpassed convincingly. On the downsides, this will become the floor price for the stock. We recommend a buy on declines.
Your call of action - buy on significant declines to the 300 - 305 levels and hold with a stop loss at the 280 mark. Expect profit taking at the 350 - 370 levels in a few weeks time in a conducive market. Since this is not a highly liquid stock, we advocate a lower exposure on the counter as the impact cost is likely to be high.
Bombay Dyeing I Century Enka I EID Parry I Guj Ind Power I Infotech Ent I Maharashtra Seamless I SKF Bearings I Titan Inds I Close window I Print page
Guj Ind Power - This scrip was recommended in our earlier editions, but the buy trigger was not achieved as the much awaited breakout did not occur. The scrip has managed to close at the threshold of the breakout levels ( at Rs 65 ) and a crossover in the upward direction will be a buy confirmation. The oscillators are in the buy mode and any further upmove will result in the upward momentum gaining acceleration. The relative strength oscillator shows a rising strength as the scrip is inching towards the market performer status.
Your call of action - Buy upon a convincing breakout above the 67 mark and hold with a stop loss at the 56 mark. Expect to book profits at the 75 - 80 levels in a conducive market in the near / medium term.
Bombay Dyeing I Century Enka I EID Parry I Guj Ind Power I Infotech Ent I Maharashtra Seamless I SKF Bearings I Titan Inds I Close window I Print page
Infotech Enterprises - This midcap new economy stock was recommended on many an occasion as the technology pack was consistently out-performing the market. The stock is trading above the 52 week average as well as the short term averages. A breakout above the 154 levels will see a fresh upmove as the scrip races towards a 9 month high. The trickle down effect from the frontline technology stocks is likely to see polarised buying momentum in the midcap stocks too. We recommend a buy for the adventurous / aggressive traders above the confirmatory breakout.
Your call of action - Buy above the 154 levels on higher volumes and hold with a stop loss at the 142 levels. Expect to book profits at the 168 levels partially in the short term and at the 175 completely in a slightly longer time frame. Since this scrip is a higher volatility play, we recommend a limited exposure on this counter.
Bombay Dyeing I Century Enka I EID Parry I Guj Ind Power I Infotech Ent I Maharashtra Seamless I SKF Bearings I Titan Inds I Close window I Print page
Maharashtra Seamless - this metals tubes major is showing signs of an intermediate / long term upmove as the entire sector is undergoing a bullish phase. The scrip is a strong market out-performer with a high relative strength as the RSC oscillator indicates. A breakout above the 265 levels will take the scrip in a new trading zone where little or no resistance is likely to be witnessed. Buy in small lots on a confirmatory breakout.
Your call of action - Buy above the 265 mark if the same is accompanied by higher volumes. Hold with a stop loss at the 248 levels and expect profit taking at the 285 / 290 levels.
Bombay Dyeing I Century Enka I EID Parry I Guj Ind Power I Infotech Ent I Maharashtra Seamless I SKF Bearings I Titan Inds I Close window I Print page
SKF Bearings - this scrip was recommended in the earlier editions and has been a strong performer as the demand from the automobile industry has been more than robust. Having a strong parentage, this company is uniquely poised to exploit the automobile boom in the coming quarters. The oscillators are pointing towards a strength in the undertone and the scrip achieves a breakout above the 125 mark, if the same is accompanied by high volumes.
Your call of action - Buy if the scrip closes above the 125 levels and hold with a stop loss at the 108 - 110 mark. Expect profit taking at the 145 - 150 levels in the short / medium term.
Bombay Dyeing I Century Enka I EID Parry I Guj Ind Power I Infotech Ent I Maharashtra Seamless I SKF Bearings I Titan Inds I Close window I Print page
Titan Industries - This company has been going from strength to strength as it carves a niche for itself in the domestic and international markets. The noteworthy aspect is that this company has learnt to add to profits by skillful management of purchases of bullion ( for its branded jewellery / watches ) and that the festive season around the corner is likely to boost sales. We recommend a buy on the counter for the savvy / patient investor. The scrip has achieved it's breakout and is a buy on declines.
Your call of action - Buy in a correcting market at the 150 - 155 levels and hold with a stop loss at the 135 levels. Expect to book profits at the 185 - 190 levels in the short / medium term in a conducive market scenario.
Bombay Dyeing I Century Enka I EID Parry I Guj Ind Power I Infotech Ent I Maharashtra Seamless I SKF Bearings I Titan Inds 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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