- The Professional Ticker Reader TM
- Your accurate, authentic and affordable guide to investing
Mid-cap stocks of the week Oct 30, 2004
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.
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Individual stocks. |
Asian Hotels - this hospitality scrip is showing signs of strength as the chart is displaying a higher tops and bottoms formation. The scrip is trading above it's moving averages and the oscillators are pointing towards a bullish undertone. The scrip is trading near it's 7 year highs and once it trades above the 235 levels consistently, an accelerated upmove is likely. We recommend a buy in small lots as the scrip is not highly liquid.
Your call of action - Buy in small lots once the scrip trades consistently above the 235 mark. Hold with a stop loss at the 203 levels. Expect profit taking at the 275 levels in the medium term in a conducive market.
Asian Hotels I BASF I Guj Ind Power I Guj Alkali I Guj NRE Coke I Infotech Enterprises I MICO I Ramco Systems I SKF Bearings I Sterling Biotech I Tube Investments I Midcap index I Close window I Print page
BASF - this scrip has managed a breakout of a congestion zone with reasonably decent volumes. The oscillators are showing a positive confirmation of the upmove as the stock trades near a 11 month high. Using a rough and ready calculation of the stock price at the absolute bottoms below the trend-line, it is possible to project a price target of 160 - 166 levels in a conducive market. We recommend a buy on major declines in small quantities only.
Your call of action - Buy on major declines of 140 - 142 levels and stay invested as long as the scrip stays above the 134 levels, which is the recommended stop loss. A target of 160 - 165 is recommended.
Asian Hotels I BASF I Guj Ind Power I Guj Alkali I Guj NRE Coke I Infotech Enterprises I MICO I Ramco Systems I SKF Bearings I Sterling Biotech I Tube Investments I Midcap index I Close window I Print page
Guj Ind Power - This scrip was recommended in the previous editions but has still not managed to breakout and close above the 68 mark, which is a confirmatory signal for a buy decision. The oscillators are pointing towards a bullish buildup but will need a confirmatory breakout on the price charts to give a conclusive buy call. Buy only if the market is conducive and the breakout is achieved.
Your call of action - Buy above the 68 mark after a close above this level is achieved for a day, on higher volumes. Hold with a stop loss at the 63 levels and expect a profit target of 73 - 75 levels.
Asian Hotels I BASF I Guj Ind Power I Guj Alkali I Guj NRE Coke I Infotech Enterprises I MICO I Ramco Systems I SKF Bearings I Sterling Biotech I Tube Investments I Midcap index I Close window I Print page
Guj Alkali - this scrip was recommended above 65 levels with a target of 80 which has been successfully achieved. The scrip is on the threshold of a breakout above the intermediate term congestion levels. Should the scrip close above the 85 levels consistently a lower resistance zone is achieved and a price target of 90 - 94 is likely. We recommend a buy on declines for the patient investor and above the 85 levels for traders.
Your call of action - Investors may buy on declines to the 75 - 77 levels and hold with a stop loss at the 69 levels. Momentum traders may buy only above a closing of 85 is achieved. Expect a price target of 90 - 92 in the medium term in a conducive market.
Asian Hotels I BASF I Guj Ind Power I Guj Alkali I Guj NRE Coke I Infotech Enterprises I MICO I Ramco Systems I SKF Bearings I Sterling Biotech I Tube Investments I Midcap index I Close window I Print page
Guj NRE Coke - This scrip has been a frequent feature of this newsletter and has performed well even during adverse market phases. The existing positions can be held with a target specified at the 120 mark. Fresh long positions are advised on all major declines.
Your call of action - Hold existing long positions and add on declines to the 95 - 98 levels in a declining market. Hold with a stop loss at the 87 levels and expect to book profits at the 125 - 130 levels in the short / medium term in a conducive market.
Asian Hotels I BASF I Guj Ind Power I Guj Alkali I Guj NRE Coke I Infotech Enterprises I MICO I Ramco Systems I SKF Bearings I Sterling Biotech I Tube Investments I Midcap index I Close window I Print page
Infotech Enterprises - This technology scrip was recommended above 145 levels and has performed well. The scrip has retraced from a resistance level of 170 levels where selling is expected. Once this level is surpassed, expect a 1 % upside in the short term. Momentum players would do well to buy on that breakout. The oscillators indicate a bullish undertone.
Your call of action - Momentum traders can buy above the 175 levels with a stop loss at the 163 mark and a price target of 195 in the short term. Patient traders may buy on declines to the 148 - 150 levels and hold with a stop loss at the 140 mark. The immediate target would be 170 where part profits maybe booked. Complete profit taking is advised at the 185 - 190 levels. Being a high volatility scrip, exposure must be curtailed.
Asian Hotels I BASF I Guj Ind Power I Guj Alkali I Guj NRE Coke I Infotech Enterprises I MICO I Ramco Systems I SKF Bearings I Sterling Biotech I Tube Investments I Midcap index I Close window I Print page
MICO - This auto ancillary MNC major is in a long term uptrend. Being a strong market out-performer and high relative strength counter, this scrip is a must have for the patient and discerning investor. The scrip is currently trading at it's all time high and once it clears the 1800 mark, expect an accelerated upmove.
Your call of action - Buy on all declines with a long term perspective ( 1 year and above ) and hold with a liberal stop loss at the 1550 levels. Expect to take partial profits above 2000 levels and 2300 - 2400 in a year.
Asian Hotels I BASF I Guj Ind Power I Guj Alkali I Guj NRE Coke I Infotech Enterprises I MICO I Ramco Systems I SKF Bearings I Sterling Biotech I Tube Investments I Midcap index I Close window I Print page
Ramco Systems - this scrip is showing a classic rounding bottoms formation and the same is accompanied by improved volumes and a confirmation from the oscillators. Currently trading at it's 11 month highs, the scrip is above an immediate congestion zone. As long as it stays above the 300 mark, the scrip is likely to remain bullish and merits a speculative buy. Exposure to the scrip must be limited for now.
Your call of action - Buy at the current levels and stay invested as long as the scrip remains above the 290 levels. Expect to book profits at the 345 / 350 levels in the short / medium term in a conducive market.
Asian Hotels I BASF I Guj Ind Power I Guj Alkali I Guj NRE Coke I Infotech Enterprises I MICO I Ramco Systems I SKF Bearings I Sterling Biotech I Tube Investments I Midcap index I Close window I Print page
SKF Bearings - this scrip has been recommended in this newsletter frequently and has performed as per our bullish expectations. The scrip is a MNC market out-performer with a high relative strength reading. Currently trading above it's congestion levels and at 5 years highs. Existing long positions maybe held and fresh longs initiated on declines.
Your call of action - Hold existing long positions and buy afresh on declines to the 120 - 125 levels. Hold with a stop loss at the 105 - 110 levels. Expect to book profits at the 145 - 150 in a conducive market in the short / medium term.
Asian Hotels I BASF I Guj Ind Power I Guj Alkali I Guj NRE Coke I Infotech Enterprises I MICO I Ramco Systems I SKF Bearings I Sterling Biotech I Tube Investments I Midcap index I Close window I Print page
Sterling Biotech - this is a momentum counter with a higher volatility reading as the graphic below indicates. The scrip is displaying a classic higher bottoms and tops formation and is staying above the moving averages. The oscillators are in confirmation with the bullishness and we recommend a speculative grade buy on this scrip in small lots for the adventurous traders.
Your call of action - Buy at the current levels and hold with a stop loss at the 140 mark. Expect to book profits at the 180 - 185 levels in a conducive market scenario
Asian Hotels I BASF I Guj Ind Power I Guj Alkali I Guj NRE Coke I Infotech Enterprises I MICO I Ramco Systems I SKF Bearings I Sterling Biotech I Tube Investments I Midcap index I Close window I Print page
Tube Investments - this scrip is showing exceptional strength and is a market out-performer. Making classic higher tops and bottoms, the averages are trending higher in a textbook bullish formation. Another investment for the patient and discerning investor.
Your call of action - Buy at the current levels and hold with a stop loss at the 150 mark. Once the 180 mark is effectively cleared, expect a fresh upmove to take the scrip to the 225 and beyond.
Asian Hotels I BASF I Guj Ind Power I Guj Alkali I Guj NRE Coke I Infotech Enterprises I MICO I Ramco Systems I SKF Bearings I Sterling Biotech I Tube Investments I Midcap index I Close window I Print page
CNX Mid-cap Index - This mid cap barometer shows signs of cooling off as the composite stocks undergo consolidation at the present levels. After a breakout from the channel a flag formation has been confirmed, which is a measuring move. In a conducive market, levels of 2150 - 2200 are likely as long as the index does not fall back into the channel again. In the coming fortnight, it is crucial that this index stays above the 1925 levels.
Your call of action - this is an academic study only.
- Asian Hotels I BASF I Guj Ind Power I Guj Alkali I Guj NRE Coke I Infotech Enterprises I MICO I Ramco Systems I SKF Bearings I Sterling Biotech 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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