STOCKS TO ADD IN PORTFOLIO --->NBCC,TCI Express Limited,RITES,Sanofi India Limited

IndianMarketPulse maintains buy rating in above stocks and can be added in portfolio for potentially higher returns on yearly basis.

Whereas Jet Airways is Exit from Portfolio.

 

MORE WILL UPDATE SOON!!

Top 10 expert moneymaking ideas that could return 6-12% in 1 month

The Nifty hit a fresh record high on Monday and rallied climbed 11,400 for the first time in history and experts feel that the momentum is likely to continue this week as well. The index closed with gains of nearly a percent for the week ended August 3.

The index witnessed value buying on Friday after consolidating for two days last week. Last week, the index was able to reclaim 11,350 on a closing basis. Also, the action was spread across small and midcaps.

After a strong rally seen in July, some would say that markets are looking overbought at current levels but analysts feel the momentum is likely to continue.

The structure is still strong. Some of the previous laggards have started to participate like ICICI Bank, Axis Bank and public sector banks. The midcap index is probably showing signs of forming a base.

The anticipation has now turned into a confirmation. We believe there is still a lot more to offer in days to come. Friday’s strong rally is the perfect example why one should refrain shorting this market at this juncture and rather capitalise such declines to buy into.

Nifty is likely to move towards 11,430-11,500. "Since it’s an uncharted territory, further legs will keep unfolding as we move forward. For the forthcoming week, 11,290 followed by 11,234 would be seen as immediate support.

Here is a list of top 10 moneymaking ideas from different experts that could return 6-12% in the next 1 month:

Arvind Ltd: Buy| LTP: Rs 419| Target: Rs 469| Stop Loss: Rs 401.70| Return 12%

During the penultimate week, the stock price finally came out of its congestion zone which in technical terms can be interpreted as a breakout from the ‘Triangle’ pattern.

The breakout was accompanied by higher than average daily volumes, providing credence to the breakout. However, due to lack of follow up buying, the stock corrected a bit towards the trend line support placed around Rs 412.

As expected, the strong buying emerged at lower levels, which validates this corrective move as a pullback move and the stock would now possibly start a fresh leg of the rally. We recommend investors to buy the stock for an upside target of Rs.469 and a stop loss placed at Rs.401.70.

Bombay Burmah Trading Ltd: Buy| LTP: Rs 1614.70| Target: Rs 1810| Stop Loss: Rs 1509| Return 12%

This stock has undergone some decent time correction over the past three months. Recently, there were a couple of attempts made to break through this congestion zone in the upward direction; but all turned unsuccessful.

However, the bulls did not lose their hope; in fact, they came back strongly on Friday and provided enough force to confirm a decisive breakout above the sturdy wall of Rs 1,582.

With this, the weekly charts are now looking extremely promising. Thus, looking at the rising slope of ‘RSI-Smoothened’, we expect the stock to do well in days to come.

One can look to go long for a positional target of Rs.1810 in coming weeks. The stop loss needs to be fixed at Rs.1,509.

Bata India: Buy| LTP: Rs 938| Target: Rs 1020| Stop Loss: Rs 900| Return 8.7%

After hitting lifetime highs this counter appears to be on the verge of a fresh breakout above its two-month-old ascending channel. Such a breakout will throw up a new target placed around Rs 1,020 levels.

Hence, positional traders should buy now and can add further on declines around 920 and look for a target of Rs 1,020. A stop loss could be placed near Rs 900.

Havells India : Buy| LTP: Rs 641| Target: Rs 697| Stop Loss: Rs 620| Target: Rs 8.7%

This counter registered a breakout above its three-month-old ascending channel with a new lifetime high which is throwing up a bigger target placed around Rs 730.

Interestingly, this kind of breakout on this counter occurred after a multi-month struggle inside the broader range of 590 – 480 kind of levels.

Hence, such a bigger target can’t be ruled out going forward. Positional traders are advised to buy now and on declines up to Rs 625 and look for a target of 697 by placing a stop below 620 on a closing basis.

Yes Bank: Buy| LTP: Rs 372| Target: Rs 390| Stop Loss: Rs 360| Return 4.8%

After the recent correction from the lifetime highs of Rs 394, this counter appears to have bottomed out at the recent low of Rs 356 and resumed its up move.

As the long-term trend is buoyant in this counter it can be expected to retest its lifetime highs. Hence, positional traders should buy into this counter for a target of 390 with a stop of 360.

JK Paper Ltd: Buy | Target: Rs. 167| Stop-loss: Rs. 135 | Return: 10%

JK Paper remained under a consolidation phase in last six-month from a price band of Rs 149-128, taking a strong support at Rs 99 levels, and made a robust rebound from this level recently.

It also made a crucial breakout from the moving average of 200-days EMA placed at Rs 131, thus indicating a reversal trend. The scrip also witnessed a significant volume growth managing to gain about 25 percent on weekly basis.

On the weekly price chart, the scrip registered a solid bullish candlestick pattern indicating a reversal in trend favoring upward momentum.

Further, the weekly RSI at 60 signaled a buying regime at a current level along with positive cues from MACD suggesting an upward shift.

The scrip is currently holding a resistance at Rs 169 and the immediate support level is placed at Rs 126. We have a buy recommendation for JK Paper which is currently trading at Rs. 151.25

Sical Logistics Ltd: Buy | Target: Rs. 203| Stop-loss: Rs. 174| Return: 8%

Sical Logistics formed a reversal trend favoring upward momentum after consolidating on multiple price level from Rs 232-194 towards Rs 163 levels in the last six months.

Although it remained flat during an early trade of the week, it gained strong momentum towards the weekend to close above 200-days EMA placed at Rs 182 levels.

It also witnessed a substantial support from volume buildup as compared to average level. The positive breakout on the weekly basis aided the scrip to form a strong bullish candlestick pattern indicating a sustained trend at the current level.

The weekly RSI trend registered an upward momentum at 64 suggesting a buying regime along with MACD trading on a bullish momentum.

The scrip has a support at Rs 164 levels and medium-term resistance level at Rs 216. We have a buy recommendation for Sical Logistics which is currently trading at Rs. 188.25

Redington (India) Ltd: Sell | Target: Rs. 98 | Stop-loss: Rs. 115 | Return: 6%

Redington India Ltd continued to consolidate on its long-term price chart, slipping below a price band of 158 levels to form multiple low levels over sustain selling pressure.

Last week the scrip slipped below a long-term moving average level to touch 52-weeks low and thus indicating a sustained pressure on selling regime. Further, the volume support continued to remain subdued over a negative trajectory.

The price chart continued to indicate consolidation phase with a formation of bearish candlestick pattern on its weekly price chart post-breach below important average level.

Further, the secondary momentum trend continued to indicate negative signal with RSI slipping below at 34 coupled with bearish outlook from MACD trend.

The scrip is facing a resistance at 128 levels and crucial support at 95 levels. We have a sell recommendation for Redington India which is currently trading at Rs. 104.20.

APL Apollo Tubes Ltd: Buy| CMP: Rs 1,699.25| Target: Rs. 1,900| Stop Loss: Rs. 1,597| Return: 12%

The stock, which was consolidating for the last several days, has come out with a closing above its recent range high indicating a growing optimism in the stock. Price has closed significantly above 21 EMA for the first time since last May.

Moreover, positive divergence in the daily RSI (14) may induce bullishness in the stock. Overall, the technical set is suggesting a decent recovery on the stock.

ZEE Ltd: CMP: Rs 520.60| Buy| Target: Rs. 573| Stop Loss: Rs. 498| Return: 10%

After a steep correction, the stock has been consolidating around the support of a rising trendline on the daily chart. In addition to that, on the weekly chart, a Bullish Harami candlestick pattern is formed which may propel a rally in the stock.

The stock is in a long-term uptrend and is currently trading around the lower band of the rising channel; we expect demand in stock may return over the short-term.

MORE WILL UPDATE SOON!!

5 sectors that could be safe havens for your funds in the medium term

On midcaps we have cautioned investors to stick to quality companies with good fundamentals and ethical management.

  

With the market touching historic highs on a daily basis, we feels investors should look at state-run banks, realty, pharmaceuticals, cement and oil marketing companies for the medium term.

Speaking on an ideal portfolio set up, an investor can park 40 percent of one’s portfolio in bonds, 30 percent in largecaps, 15 percent in smallcaps and 15 percent in midcaps for appropriate diversification.

On midcaps, he cautioned investors to stick to quality companies with good fundamentals and ethical management.

Despite some global challenges, the breakout in the Nifty and Sensex last month was mainly because the largecaps pulled the market higher. The quarterly results are cheering the market in terms of growth expectations and hence the rally. However, there is a lot of euphoria built-up in the markets and there seems to be a higher probability of a correction soon. But, when this happens only time will tell.

 Since this is a crucial year of politics, investors must remain cautious as there would be high volatility in the markets. Since the divergence between the large and small/midcaps is wide, there can be a correction sometime in the near future. However, the exact time cannot be ascertained.

 As the euphoric rally was a fractured one due to global as well as domestic headwinds, we seem to be in the 5th wave in terms of the Elliott Wave Theory. As per the theory, we are experiencing a large divergence in the breadth of the market and any significant trigger might create a big sell-off in the near future.

As per statistics, only 54 percent of the total stocks are trading above their 200-day daily moving average (DMAs), which is the second lowest in a decade. During the 2008 top, 52 percent of stocks traded above their 200 DMAs. This further confirms the 5th wave theory.

In 2018, politics is the biggest risk which can turn the markets in any direction. Other macro risks are growing inflation, rate hikes by the Reserve Bank of India, Brent crude fluctuations which can impact the currency and last but not the least trade wars. With the US being the largest economy, any significant impact on our imports and exports will affect our widening current account deficit.

 Sectors such as state-run banks, realty, pharmaceuticals, cement and oil marketing companies are likely to hog the limelight this year from a medium term point of view.

At a time when the markets are trading at record highs, one can have 40 percent of one's portfolio in bonds, 30 percent in largecaps, 15 percent in smallcaps and 15 percent in midcaps for appropriate diversification.

Midcaps have experienced tremendous pressure and have spiralled down drastically. As they lagged the largecap rally it seems to be more likely that the midcaps will rebound in line with broader markets. However, one must look at quality companies with good fundamentals and ethical management before investing.

MORE WILL UPDATE SOON!!

brokerage house sees Nifty at 11,500, recommends 5 stocks for returns up to 20%

expect sideways to bullish movement for the coming session, within a range of 11,500 on the higher side and 11,200 on the lower side.

 

Market reaction after the Monetary Policy Committee's move to hike rates was restrained, suggesting strength in the current rally. The minor correction cannot be ruled out as the Nifty is approaching the upper end of the rising channel, along with overbought levels of the relative strength index and stochastic, which indicates caution on the upside.

Nifty's five-day simple moving average (DMA) is placed around 11,325, indicating strong strength unless it trades below it. At the same time, the index has higher gap unfilled around 11,185 levels. So, the possibility of prices retracing to fill the gap cannot be ruled out.

Until the benchmark index breaches 11,300 levels decisively on the downside, it has a potential to extend this rally towards 11,450 and 11,500 levels. Recently, the Nifty has given classical cup and handle pattern breakout on the lower timeframe, which has a target of 11,450 as per the pattern.

Upper acceleration band (of 50-day daily moving average) is around 11,450, which makes 11,450 a major resistance. Also, majority of oscillators are in overbought zone, suggesting possibility of profit booking at higher levels. Option data indicates an immediate trading range between 11,500 and 11,200 levels.

We expect sideways to bullish movement for the coming session, within a range of 11,500 on the higher side and 11,200 on the lower side. However, stock-specific action in midcaps can be seen.

Aurobindo Pharma: BUY | Buy Range: Rs 595-Rs620|Target Rs 750| Stop Loss Rs 565| Upside 20%

Aurobindo Pharma has given trend line breakout. After retracing towards its foot, it bounced back on upside and now it is going to form Inverted H&S on weekly chart which is showing strength in coming sessions. Bullish crossover in MACD along with sustainability of RSI above 9 day EMA indicates bullishness in the stock in coming days. Three white soldier on daily chart also setting a bullish tone for upside. Above mentioned rationale suggest accumulating the scrip from the levels of 620 or on dip towards 595 with the stop loss of 565 for the target of 750 marks.

McDowell: BUY | Buy Range: Rs 605-Rs 610|Target Rs 735| Stop Loss Rs 540| Upside 20%

After hitting the peak of 800, stock slipped lower towards its previous resistance which should be acting as a support & chances of developing of demand is higher as it was 200 WMA too. As of now, point of polarity is giving cues to accumulate this stock at lower levels. The RSI also seems to be bottomed out near the oversold zone which can club with the divergence in RSI on weekly chart. As long as it sustains above 540, possibility of moving on upside is higher and it can hit our first target of 720 and second target is 750 with an ease from current levels.

Reliance Capital: BUY | Buy Range: Rs 405- Rs 410|Target Rs 460| Stop Loss Rs 373| Upside 13%

The scrip has been running in a falling channel since long and bottomed out near its support channel line and formed a tweezers bottom at lower levels. As of now, it has been forming pole and flag pattern on daily chart since last few days. Sustainability of RSI above 50 and positive crossover in MACD above reference line are giving cues of breakout on the upside. One can buy this scrip from the bottom line of Flag mast which comes around 405-410 levels with the stop loss of 373 for the target of 450 and 470 levels.

Piramal Enterprises. : BUY | Buy Range: Rs 2750-2760|Target Rs 3030| Stop Loss Rs 2627| Upside 10%

Piramal Enterprises- has given falling channel breakout after giving short-term consolidation on the daily chart. From last few days, it has been trading above its congestion zone after giving double bottom breakout and retest the neck line of double bottom creates buying opportunity in the scrip again. Moreover, the sustainability of RSI above 9 days EMA giving cues for upside momentum. Strong support is seen near 2627 levels too. By looking at all these factors, trader and investor can buy this scrip around 2750-2760 with the stop loss 2627 for the target of 3000 and 3060 levels.

OFSS: BUY | Buy Range: Rs 3950-Rs 3970|Target Rs 4325| Stop Loss Rs 3750| Upside 9%

Currently stock is trading above short term, midterm moving averages which shows strength in the scrip. It has given breakout with spurt in volume which is showing upside momentum in coming sessions. Indicators and oscillators are lending support to its price action. Formation of strong bull candle suggesting positive rhythm in the scrip. By looking at these factors one can buy OFSS at 3970 -3950 with stop loss of 3750 for the target of 4300-4350.

MORE WILL UPDATE SOON!!