Selling pressure may drag Nifty to 10,100; 3 stocks which could give up to 17% return

The overall data is still running negative for the markets and we can see further selling pressure coming into the market which can drag Nifty towards 10100 levels in coming sessions.

  

The Nifty 50 index hammered down badly after breaching the crucial support of 10,400 levels this week. The fall was majorly supported by banks after investigation deepened in the PNB fraud case.

Since the beginning of the series, we have seen call writers actively selling calls of 10500-10600 and 10700 strikes which clearly indicates discomfort in the market.

The derivative data indicates that selling pressure on higher levels may remain intact with Nifty having major resistance now placed at 10,400 and 10,500 levels.

As far Bank Nifty is concerned the next support is placed at 24,200 spot while resistance is placed at 24,700 and 24,800 levels.

The overall data is still running negative for the markets and we can see further selling pressure coming into the market which can drag Nifty towards 10,100 levels in coming sessions.

Here is a list of top three stock ideas which can give up to 17% return:

Bharat Bijlee Limited: BUY| Target Rs 1870| Stop Loss Rs 1480| Return 14%

After taking a support at its 100-days exponential moving average (DEMA) on the daily charts, the stock has risen sharply in the recent past to reclaim the levels above its short-term moving averages.

On the daily interval, the stock has formed an inverted head and shoulder formation and has also given a pattern breakout above the neckline last week.

The breakout in prices happened with marginally higher volumes which suggest for more upside in prices moving forward. Traders can accumulate the stock in a range of 1630-1660 levels for the target of 1870 with a stop loss below 1480.

V-Mart Retail Limited: BUY| Target Rs 2110| Stop Loss Rs 1625| Return 17%

The stock has been consistently trading higher and has been forming higher highs and higher lows on the daily and weekly interval charts.

At the current juncture, the stock has formed an inverted head and shoulder formation on the daily charts and also given a pattern breakout above the neckline placed at 1700 levels.

Additionally, positive divergences in the secondary indicators like stochastic and RSI also support the next up move in prices. So, traders can accumulate the stock in the range of 1800-1835 for the upside target of 2110 with a stop loss below 1625.

Gujarat Ambuja Exports Limited: BUY| Target Rs 306| Stop Loss Rs 250| Return 13%

The stock has been trading higher on the daily charts since the beginning of 2018 and tested its 52-week high last week. Additionally, the stock has formed a bullish flag formation on the weekly interval and given breakout above the pattern last week.

This week prices have retraced toward 260 levels on the back of profit booking. However, any break above the 270 levels will once again support the next upside move in prices as suggested by momentum indicators.

Traders can buy the stock above 270 levels for the upside target of 306 with a stop loss below 250.

MORE WILL UPDATE SOON!!

Top five sectors which are looking attractive post recent correction

As attractive as PSU banks may seem, we would recommend sticking to private banks i.e. if one wants to invest in the banking space.

 

The selloff by foreign investors (FIIs) that we have witnessed in the recent past is expected to be offset by the liquidity flows into equities from the domestic household savings. We believe that as long as this remains strong, volatility should remain curbed to a large extent.

However, given the high expectations from the earnings – as gauged by the higher multiples that the markets are garnering – as well as the many state elections lined up this year; we expect 2018 to be fairly volatile.

The year will not be anything like 2017, where we saw a run up across the board. A stock specific approach is the way to go.

A good way to have sector-wise allocation would be to mimic the benchmark indices – such as the Nifty 50 or the BSE – 100 or 200 indices.

As attractive as PSU banks may seem, we would recommend sticking to private banks i.e. if one wants to invest in the banking space.

We remain positive on the agri/ rural plays, consumption themes, housing theme as well as the infrastructure space.

A lot more information would be required (such as already existing investment and savings profile, the lifestyle of the investor, the risk appetite, his knowledge on equity investing) to answer such a question.

Let us go with the assumption that the candidate mentioned above has no savings, we would recommend a staggered approach towards investing in equities rather than investing all the amount in one go.

By the end of one year, the investor should have at least 30-40% of his money in fixed income and the balance split between MFs and equities (direct).

While banks will look to pass on the prices, keeping a gauge on the asset quality will be critical.

MORE WILL UPDATE SOON!!

Use pullback rallies to short Nifty; 3 stocks which could give up to 11% return

We expect any bounce back to be mild and short-lived since any retracement will be utilized by lead players who will further jump and cap upside.

  

The Nifty gave a decisive breakout of a Flag pattern that was in place for a month, coupled with negative domestic cues that aided the sentiments of bears.

After a month, consolidation came to an end with this breakout as Nifty hits a fresh low of 2018 and closed at the lowest level in 10,249 on Tuesday. The Bank Nifty followed the path with a decisive break and ending down at 24,448 after hitting a low of 24,362.

A lot of cues, fundamentally or economically, affected the market and primary bulls in the last few weeks. It started off with the global sell-off, correction, and as soon as Nifty was trying to form a base, we witnessed a Banking scam which is widespread to other banks tanking the PSU bank Index more than 20 percent.

Further, a trade war recently announced to fetch a favorable deal in NAFTA further fueled the heavyweight sector like metals which bend down to bears tune.

While in due course of time all the good news related to GDP, PMI and IIP have been absorbed on the domestic front. A flag pattern breakout is seen on the daily chart. It is a continuation pattern out of which we have seen a breakout in a favorable direction of previous swing, bearish.

The flag pattern is a very reliable pattern and thus further indicates the momentum may continue, as we earlier mentioned, towards a deeper cut in prices.

Secondly Nifty has been below its short-term moving averages (MA) and this time it is below its crucial 100-day MA which it was long-standing for a year.

Thirdly, we also see two heavyweight sectors like banking and metal in stress due to recent news flow. While on flipside, the currency market is showing a weakness in rupee, which will further aid overall bearish scenario in coming sessions.

We expect any bounce back to be mild and short-lived since any retracement will be utilised by lead players who will further jump and cap upside. We maintain sell on any rise strategy for lower targets of 10,050 - 9,850.

Here is a list of top three stocks which could give up to 11% return in the short term:

Biocon Ltd: BUY| Target Rs 660| Stop Loss Rs 610| Return 4%

The stock is seeing some bit of consolidation after the recent upward move while a bullish continuation flag is seen which provides an opportunity to rise the primary trend for an upside target towards Rs660 while a stop loss can be placed at Rs610.

NTPC Ltd: BUY| Target Rs 173| Stop Loss Rs 158| Return 6%

The stock is seeing a bottom formation on the daily chart as its trying to reverse from an oversold territory.

The oscillators that gauge momentum are displaying a bullish momentum and a positive divergence that may keep price upward in short-term with a retracement to Rs173 while a stop can be placed at near support of Rs158.

Godrej Consumer Products Ltd: BUY| Target Rs1210| Stop Loss Rs1055| Return 11%

Godrej has given a bullish breakout as per candlestick patterns after a decent pullback in price. On the chart, the trend is positive with prices making higher high and low while volume has also seen a surge in prices coming out of consolidation.

We expect the momentum to continue with next resistance at 1210 while a near-term support at 1055 can be seen as a stop.

MORE WILL UPDATE SOON!!

Brace for volatility in 2018; prudent to follow bottom-up approach: Emkay’s Karwa

Karwa attributes current fall in the market to weak local environment which involves the PNB bank scam, along with global challenges such as hardening of interest rates.

  

The year of 2018 has not been a great year for the market so far as frontline indices have reported negative returns. This especially becomes significant when compared to the stellar returns seen on the Street in 2017.

Experts at Emkay Global believe that the story is not over yet as investors must brace for a volatile year ahead.

At the base of it, our markets were heavy in terms of valuations and a market needed a reason too, and these factors gave the impetus.

Current fall in the market to weak local environment which involves the PNB bank scam, along with global challenges such as hardening of interest rates. Additionally, investors are looking to take their profits off the table in areas where they have made money.

So, it would be prudent for investors to have a strong bottom-up approach, he said, adding that look out for stocks which are undervalued and have strong earnings growth.

Trends for the fourth quarter also reveal that they are on the right track. Having said that, factors such as interest rates hardening could limit the upside on stocks despite good earnings.

In the auto space, he said that two-wheelers and four-wheelers continued to perform well.

Meanwhile, among infra names, ports and roads, among others, offer good opportunities for investment.

For financials, he believes PSU banks can be an opportunity from 12-18 months perspective, but one has to be cautious on a sector such as NBFC on the valuation front. In the long term, there may be opportunities in this space.

Lastly, on the pharma sector, he highlighted how most issues with US FDA are softening. Many companies are reworking their business model. Possibly in 12-18 months, you could see opportunity for patient contra investors..

MORE WILL UPDATE SOON!!

Stocks in the news: HDFC Bank, ACC, Jain Irrigation, M&M, Music Broadcast, Sagar Cements, Jain Irrigation

Here are stocks that are in news today:

HDFC Bank Financial Data Leak Case | HDFC Bank Says

Bank will continue to work closely with SEBI in this regard

Bank re-iterates commitment to highest standards of corporate governance

ACC Says

Not proceeding with merger with Ambuja Cements at this juncture

Merger with Ambuja Cements remains the ultimate objective

Currently there are constraints in implementing merger with mbuja Cements

Arrangement with Ambuja Cements for mutual purchase & sale of materials, svcs

Arrangement with Ambuja Cement will need shareholder approval

Arrangement with Ambuja Cements intended to maximise synergies & unlock value

On CNBC-TV18 Anil Singhvi, Fmr Ambuja MD

Don't think business compulsion behind merger being shelved at present

There is a 'bigger design' behind the merger being called off

Both cos failed at coming out with plan for minority shareholders

This is an effort to frustrate the minority shareholders

Other stocks and sectors in the news

Jain Irrigation subsidiary invests in Innova Food NV Belgium. CY17 turnover of the acquired co - Euro 23.6mn

Mahindra & Mahindra collaborates with LG Chem to for Lio-on battery technology to support EV revolution in India

IOB approves preferential issue of shares to GoI upto Rs 4694cr

Music Broadcast - Radio city and Apple music launch Bollywood countdown show

LT Foods - CRISIL upgrades long term and short term ratings of the Co

Sagar Cements board approves acquisition of hydel power plants (capacity of 4.3 MW and 4 MW) for a sum of 26.9cr

USL - ICRA upgrades ratings of various debt instruments

HDFC Bank says will work closely with SEBI in relation to whatsapp data leak

Simbhaoli Sugar says that in relation to the fraud case registered by OBC- co is in process of submitting the information and clarifications to the investigating agencies

PNB says quantum of unauthorized transactions can increase by USD 204.25 mn Clarifies that govt hasnt asked PNB to pay the fraud liabilities

Indiabulls Real Estate’s EGM on March 23 to seek shareholder approval for divestment of stake in Indiabulls Properties

IMAX inks a new five year pact with PVR Cinemas

JSW Steel, Monnet Ispat creditors OK Aion-JSW Offer for Monnet Ispat - ET

KKR sells 5.9% stake in Coffee Day Enterprises to raise Rs 405cr

RIL-BP’s USD 4bn investment plan in KG-D6 approved

PFC inks MoUs with UP power utilities to provide financial assistance of Rs 50,200cr

Amtek Auto creditors may offer to sell Amtek along with its units - mint

MORE WILL UPDATE SOON!!

Why blockchain is the ‘big’ thing in digital banking

Banks have centralized data and this is the reason behind all the delays.

Most of us have used banking services to transfer money and are always bothered by the lagging time between the transfers initiated to the amount received. But, have you ever contemplated the reason behind it? Banks have centralized data and this is the reason behind all the delays. The processing and confirming of all details of the transaction, take the time to transfer money from one account to another.

What if I tell you that now there is a way that the other side will receive the transferred money from the very moment it is transferred and simultaneously the database will get updated for all the parties on the basis of just an acknowledgment from us! Yes, this is possible if the data resides with all of the participants instead of a centralized location with the bank.

Blockchain in digital banking

The blockchain is a revolutionary mechanism that brings everyone to the highest level of accountability by ensuring that the data is reliable, secure and well synchronized among all the participants. There are no missed or delayed transactions, no human or machine-made errors, no transactions are done without consent from all the parties, and no mismatch and discrepancies in the past data. Blockchain as a mechanism is totally transparent and incorruptible. In fact, Blockchain maintains the record of every transaction not only in the main register but also in all the connected distributed registers.

Blockchain works on the concept of ‘Distributed Ledger,’ which means, all participants within the Blockchain have the same data set, and all data updates happen on consensus. For example, if you buy a vehicle, the vehicle manufacturer provides the same set of data to the bank, the authority, the dealer, and the individual. However, this data is stored in entirely different databases. Therefore, updates on anyone repository will not automatically reflect in all the other databases, which results in data duplication and possible manipulation. Blockchain fills this gap, all the participants will have the copy of the same database, thereby all participants have the similar version of the truth.

Once the data is written into the Blockchain, it cannot be modified; it can only be appended, thus leaving a complete trace of all the changes made. Blockchain will always have references to the previous appended data and a complete track of how data has changed over the period. Data will be encrypted, and one-way hashes will help validate if data was ever modified.

However, this is only possible if there is trust among all participants and the data is strongly encrypted and secured so that nothing can be manipulated. Security, consensus, and trust are the key ingredients to this possibility. If all the participants have the same encrypted datasets and applications and are aware of all the updates on the encrypted datasets, and take all the decisions in consensus, then they will ensure that the hackers can’t manipulate the data so easily and will find new techniques to hack (in terms of processing power and updating multiple databases). The blockchain is the technology that has the potential to make all of this possible.

Future potential of Blockchain

Blockchain technology is called as an era of the new Internet. According to a research report by Transparency Market Research. R3, Chain Inc, and IBM, “The global Blockchain technology market are expected to be worth US$20 bn by the end of 2024 as compared to USD 315.9 million in 2015. The overall market is anticipated to exhibit a CAGR of 58.7 percent.

Initially devised for Bitcoin– Digital Gold in 2008 (a use cases), Blockchain had evolved into something with different and higher potentials. BitCoin shows the durability and robustness of Blockchain.

So, are you ready for what more Blockchain has to show in future? Will it be a technology disruption that will eradicate the need for banks at all? Will this lead to a world that needs no currency printing anymore? Will Bitcoin do away with the current requirement of regulatory bodies and centralized systems?

MORE WILL UPDATE SOON!!

Sensex may reclaim 36K in 2018; These 4 stocks can be multibaggers in 2-3 years

We continue to have a moderate outlook for equity during the year given premium valuation, increase in interest cost and reduction in liquidity.

We maintain a target of 36000 on the Sensex subject to the full development of ongoing Q3 and changes in valuation given the global clampdown.

 To get stability in the domestic market, the global market has to come out of the phase of volatility. The main factors for the recent and sharp collapse in the global equity market was; premium valuation, rise in global bond yield prevailing to inflationary pressure and worries to US fiscal deficit.

Recently, a relief rally has initiated in the global market led by no hike in US Fed in the February meeting, good earnings results, and stability in bond yield.

Global investors were looking for a bargain gain after the last week's collapse which was a weakest weekly loss in the last 18 months.

Dow fell by 12 percent on an intraday basis from 26th Jan to 9th Feb. From this low, Dow has recovered by 5-6 percent during which US 10-years bond yield is holding at 2.9 percent, near the 5-years high. This relief rally will be spread to emerging market like India if this trend is maintained in the near-term.

 Top five sectors which you think are a good buy even at current levels and why?

Chemicals:

MNCs are diversifying their raw material or RM sourcing arrangement from China due to higher regulatory compliance requirement and adding India as an additional sourcing destination.

Additionally, higher allocation towards rural spending in union budget is likely to benefit players in agrochemicals and crop protection.

Auto sector:

After the initial hiccups in the 1HFY18 due to slews of government policy, we see some gradual recovery in the start of H2FY18. During 9MFY18, the sector has registered a growth of 11 percent which was largely led by 12% & 8% growth from the 2W & PV but in line from the pre demonetizations.

We expect the industry to registered 12 percent growth for FY19. We believe premiumisation in the 2W segment to continue followed by government push towards better road infra project and implementation of the scrappage policy will yield higher growth in the M&HCV sector.

Infrastructure:

Infrastructure is the growth driver of the economy. With the increased total capital outlay for infrastructure to Rs5.97lakh cr for FY19 and development of 35,000km of roads under phase 1 of Bharatmala will keep the outlook positive.

Pharmaceutical:

Increasing focus of pharmaceutical companies to domestic market coupled with rapid urbanisation and consumer spending is giving a positive outlook for the sector as the market size is poised to grow to US$100 billion by 2025. Recent promotions given by the government to the healthcare segment will add to the performance of the sector.

IT Sector:

The outlook for the Indian IT sector is cautiously positive in 2018 as challenges remain amidst prospects of greater IT spending with global and US economy improving.

We expect that the early sign of recovery will lead to higher spending in the US banking sector which will result in revival in the BFSI.

Robust growth in the digital platform also indicates higher utilization in the large cap IT companies. We have a Hold rating on these companies valuing at a 5 years historical average.

 Top 4 stocks which you think could turn multibaggers in the next 2-3 years?

UPL:

UPL has achieved healthy revenue CAGR of 16 percent over FY12-17, with stable EBITDA at 17-19%, despite widespread changes in regional weather patterns or swings in commodity prices and currencies.

We expect PAT to grow at a strong CAGR of 14% over FY17-19 led by new launches in fast-growing geographies, backward integration, and sustained market share gains.

UPL, a leading global manufacturer of crop protection products having a presence across the agri-input value chain from seeds to post-harvest chemicals will be a key beneficiary from government higher allocation towards rural spending.

Ashok Leyland:

Ashok Leyland (AL) is the second largest commercial vehicle (CV) manufacturer in India. It has a strong presence in the M&HCV (Heavy Commercial Vehicle) segment with a market share of 34 percent as on FY17.

We believe AL to witness numerous tailwinds like Government’s road & infra spending, the strategy of defence and electric vehicles.

We expect AL’s revenue to grow at 18 percent CAGR over FY17-20E- factoring 11 percent volume growth in M&HCV and 22 percent in its LCV business.

KNR Constructions:

Order book continued to remain strong @ 2x TTM revenue and total outstanding order book stands at Rs 3,333cr as on Q3FY18. During the quarter KNR has received an order of Rs560cr in the state of Telangana for irrigation works.

We expect execution will ramp up going forward as most of the projects are now operational which continue to construct growth. Further, Government’s strong focus on developing road projects will keep the sector outlook positive.

Torrent Pharma:

With the acquisition of branded formulations business of Unichem Laboratories, Torrent is expected to strengthen its presence in the domestic market with further expansion in the chronic portfolio. In addition, recovery in US business will drive their growth going ahead.

MORE WILL UPDATE SOON!!

What to buy in a rangebound market? 5 stocks which could give up to 15% return

The index has some stiff resistance at 10615, where 20 and 50-days moving averages are seen. Thus, the index may see some profit booking above 10600, after a bounce back.

The Nifty opened in the positive and continued to see gains through the day to close at 10,583 levels, up by 0.87 percent on Monday. Following a bullish Dragonfly Doji candlestick pattern on the weekly chart, the index showed a follow-through action on Monday.

In the last couple of days, the broader markets too have participated in the rally. For the last three weeks, the price has largely been trading in a range of 10300 -10640 odd levels and is now approaching its upper end.

The index has some stiff resistance at 10615, where 20 and 50-days moving averages are seen. Thus, the index may see some profit booking above 10600, after a bounce back.

For the rally to continue, the index needs to cross and sustain above 10640 odd levels on the tradable basis. We expect the index to move towards 10736

which will fill the falling gap.

On the downside, breaking 10500 levels, the market will remain in the congestion zone and head towards 10350 levels.

Here is a list of top 5 stocks which could give up to 15% return:

Voltas Limited: BUY| CMP Rs 613| Stop loss Rs 580| Target Rs 700| Return 14%

The stock touched a high of 675 in December 2017 and then witnessed a decline to 555 levels. The fall corrected 61.8% Fibonacci retracement of the rally from 495 to 675 levels and witnessed a bounce back.

The price retested the low to form a double bottom pattern on daily chart. The rally in the last sessions has been on above average volumes, indicating buying participation, coming in at lower levels in the stock.

The price has crossed 20-days moving average which was acting as resistance during the decline phase - indicating a change in trend.

Currently, the price is trading at the neckline of double bottom formation and is likely to break out on the upside considering the price, recent movement, and overall structure. Thus, the stock can be bought at current levels and on dips to 600 with a stop loss below 580 for a target of 700 levels.

Persistent Systems Limited: BUY| CMP Rs 868| Stop loss Rs 825| Target Rs 1000| Return 15%

The stock has been largely range bound between 800 and 550 levels for almost last three years. In the last couple of months, the price had been consolidating at the upper end of the range.

Now, the price has formed a long-term base and gave a breakout from this accumulation pattern. The good part is that it happened on strong price momentum and high volumes indicating strong buying interest in the stock.

The price has also given a breakout from the Bollinger bands with the expansion of bands suggesting that the price is likely to move in the direction of the breakout.

MACD has given positive crossover with its average moving above the neutral level of zero suggesting the tart of a fresh uptrend. Thus, the stock can be bought at current levels and on dips to 835 with a stop loss below 825 and a target of 1000 levels.

Kalpataru Power Transmission Limited: BUY| CMP Rs 478| Stop loss Rs 450| Target Rs 550| Return 15%

The stock touched a high of 535 in the month of January and then corrected down to 401 levels. The fall corrected 61.8% Fibonacci retracement of the rally from 322 to 535 levels.

Also, the decline has tested its previous all-time highs and witnessed a bounce back. This pullback touched a high of 494 to again correct to 448, forming a higher low.

The price has moved above 50-days moving average (DMA) and closed above it. Daily Directional Indicators i.e. DI lines have given positive crossover with each other.

The relative strength index (RSI) has given a positive crossover with its average on the daily chart. Thus, the stock can be bought at current levels and on dips to 465 with a stop loss below 450 for the next target of 550 levels.

Ajanta Pharma Limited: BUY| CMP Rs 1425| Stop loss Rs 1350| Target Rs 1600| Return 12%

The stock had seen a sharp correction from the highs of 1595 levels to a low of 1236. The bounce back faced 1440 levels and corrected down to 1311 levels

and again saw a bounce back.

On the daily line chart, the price has formed a bullish double bottom pattern with slightly higher low. The price has moved above its 20-days moving average and closed above it with a bullish candlestick accompanied by above average volumes which suggest buying participation in the stock.

Thus, the stock can be bought at current levels and on dips to 1400 with a stop loss below 1350 for a target of 1600 levels.

Navin Fluorine International Limited: BUY| CMP Rs 805| Stop loss Rs 760| Target Rs 900| Return 12%

The stock has seen a long-term uptrend forming a higher top and higher bottom formation on the weekly chart. For the last couple of months, the stock has seen a correction from 880 to 730 odd levels.

The price has taken a support at its 100-days moving average which has acted as support on multiple occasion in the past. In the last couple of days, the stock has seen the high volume with positive price action suggesting buying participation.

The weekly directional indicators i.e. DI lines have given positive crossover with each other suggesting price correction is over. Thus, the stock can be bought at current levels and on dips to 795 with a stop loss below 760 and a target of 900 levels.

MORE WILL UPDATE SOON!!

Stay long in Nifty; Top 3 stocks which could give up to 27% return in the next 3-4 weeks

The upper end of the channel is placed at 10630, and a breakout from the upper end of the channel can trigger a short covering rally to levels of 10720-10820 which is being 50 percent and 61.8 percent Fibonacci retracement levels respectively.

The Nifty Index Futures has taken support at the lower end of the Broadening Wedge pattern and is currently consolidating in a channel pattern.

The upper end of the channel is placed at 10630, and a breakout from the upper end of the channel can trigger a short covering rally to levels of 10720-10820 which is being 50 percent and 61.8 percent Fibonacci retracement levels respectively.

However, failure to breakout from the upper end of the channel i.e. 10630 can lead to fresh selling dragging it to levels 10440-10280.

Moreover, the relative strength index (RSI) is currently at the neutral level of 50; a move above can lead to further short covering rallies.

Future Lifestyle Fashions Ltd: BUY| Target Rs 475| Stop Loss Rs 340| Return 27%

On the weekly chart, Future Lifestyle Fashions Ltd. (FLFL) is on the verge of a breakout from a Triangle pattern suggesting resumption of the Bull trend on cards. The neckline of the pattern is placed at 398 (as indicated on chart); breakout from the pattern higher volumes may trigger a bullish breakout.

On the daily chart, the stock is on the verge of a breakout from a consolidation phase started forming the affirming start of a bull trend.

The RSI has formed a positive divergence with respect to price after taking support at the 50 level. The stock may be bought in the range of 370-380 for targets of 440-475, keeping a stop loss below 340.

Castrol India Ltd: BUY| Target Rs 238| Stop Loss Rs 170| Return 20%

On the weekly chart, Castrol India Ltd has turned upwards after testing the lower end of the channel suggesting bullishness. Further, it is approaching upper end of the channel placed at Neckline of the pattern is at 213-228; sustained trade above the neckline with healthy volumes can extend the up move.

On the daily chart, the stock has broken out from a flag pattern on good volumes affirming strong bullishness. RSI has turned upwards breaking out of the upper band of the Bollinger Bands suggesting higher levels in the coming trading sessions.

The stock may be bought in the range of 195-200 for targets of 228-238, keeping a stop loss below 170.

JK Lakshmi Cement Ltd: BUY| Target Rs 510| Stop Loss Rs 400| Return 18%

On the weekly chart, JK Lakshmi Ltd. (JKLAKSHMI) is on the verge of a breakout from a Triangle pattern suggesting the start of a bull trend on cards.

Further, a sustained trade above 462 i.e. neckline of the pattern can extend the uptrend in the coming trading sessions. On the daily chart, it is making higher high and higher lows affirming the strength.

Further, RSI has also broken down from the lower Bollinger band suggesting lower levels.

The stock may be sold in the range of 430-435 for targets of 475-510, keeping a stop loss below 400.

MORE WILL UPDATE SOON!!

Remain long in Nifty with a stop below 10,450; 3 stocks which could give up to 8% return

Nifty may find strong support around 10450-10500 level, where Puts have been written. To conclude, our advice would be to remain long with the stop loss of 10450 level.

  

The Nifty rose sharply for the second consecutive day in a row to close at 10,583 level. On the last Friday, Nifty surpassed the resistance of its 5-days and 10-days exponential moving average (EMA) for the first time since 1st February 2018.

The Nifty also took support at the upward sloping trend line, which adjoins the bottoms of 28-Sept- 2017, 06th December 2018 and 22nd February 2018.

Last week, the Nifty formed a bullish candlestick pattern known as “Dragonfly Doji” on the weekly charts. This pattern signals indecision among traders.

It is formed when the security's high, open, and close prices are the same. The long lower shadow suggests that the forces of supply and demand are nearing a balance and that the direction of the trend may be nearing a major turning point. During the first two days of the March series, we have seen a buildup of long positions in the Nifty Futures’.

We have started new series with a 5 percent lower Open Interest (OI) in stock futures. The OI is the lowest in 3 months which makes it very light and gives us the confidence to say that the Nifty will do better than the last series.

For the short term, Nifty may find strong support around 10450-10500 level, where Puts have been written. To conclude, our advice would be to remain long with the stop loss of 10450 level.

The immediate resistance for the Nifty would be in the range of 10700-10750

Here is a list of top 3 stocks which could give up to 8% return in the short term:

HCL Infosystems Ltd: BUY| Target Rs. 68 | Stop-loss Rs 60| Return 8%

The stock is on the verge of giving the highest monthly close since November 2015. The stock price has given an ‘Ascending Triangle’ breakout on the monthly charts by closing above 54 level indicating primary uptrend.

The stock price is trading above its 20, 50, 100 and 200-DMA, which indicates bullish setup for medium to long term. Oscillators and momentum indicators are showing strength in the medium and long-term charts.

The recent price fall of 10 percent seems to be a running correction in overall bullish trend. We recommend buying HCL Infosystems for the upside target of Rs68, and a stop loss below Rs60.

Tata Global Beverages Ltd: BUY| Target Rs 290 | Stop-loss Rs 260 | Return 6%

The stock has made a Bullish Trend Reversal from the support of the long-term trend line. It has closed above its 5-days EMA Resistance.

The RSI has formed a positive divergence on the daily chart, which indicates selling momentum is slowing down and a rise in trend reversal is on the cards.

The stock has been an outperformer for last 1 year and holds bullish trend on the monthly chart. We believe this recent fall of 20 percent from high is a good buying opportunity for the short term. We recommend buying Tata global for the upside target of 290, keeping a stop loss below Rs260.

Century Textiles: BUY| Target Rs. 1300| Stop-loss Rs 1170| Return 6.60%

Century Textiles reversed northwards after forming a Double Bottom around Rs 1150 level to close above 5-DMA of Rs 1180 level.

The stock price has made a Bullish trend reversal “Doji” pattern on the weekly charts. The RSI has formed a positive divergence on the daily chart indicating that the selling momentum could be slowing down which could lead to a trend reversal.

The recent price fall of 17 percent seems to be a running correction in overall bullish trend. On the higher side, the stock will face resistance around Rs 1,300 which was the recent high. We recommend buying Century Text for the upside target of 1300, and a stop loss below Rs 1170.

MORE WILL UPDATE SOOON!!

Most trusted stocks! Top 20 smallcap stock from 4 MFs schemes which survived the fall

Stretched valuation in the broader market was an overhang but investors should focus on stocks which can deliver growth in the next 2-3 years. With the recent corrections, most of the smallcaps appear less expensive.

The S&P BSE Smallcap index plunged by about 8 percent while there are many stocks which saw a double-digit cut of up to 40 percent so far in the year 2018. But, look who stood the test of time were many smallcap equity funds.

More than 20 equity funds outperformed the S&P BSE Smallcap equity index in the same period. The S&P BSE Smallcap index slipped by about 8 percent compared to 2 percent fall seen in the net asset value (NAV) of HDFC Small Cap growth fund, followed by 4 percent decline seen in the SBI Emerging Business.

Indiabulls value Discovery slipped by about 5 percent, and L&T Emerging Business also witnessed a similar decline which was still lower than 8 percent fall seen in the S&P BSE Smallcap index.

The broader market started underperforming even before the Budget was announced. The selling got further accelerated soon after the Budget was announced and sudden rise in US treasury yields which led to some money moving out of equity markets to bonds globally.

The Small & Midcap stocks which were trading slightly ahead of their long-term averages got hit the most once investors started booking profits at higher levels.

“This group (small & midcap) was the biggest beneficiary of the largely indiscriminate rally last year and is likely to lose most of its accrued gains as prices readjust with underlying fundamentals.

For everyone else, our recommendation would be to take eyes off of the ticker tape and focus only on clean underlying earnings

We have collated a list of top 20 stocks which helped fund managers to beat the index at a time when most stocks collapsed in double digit. The list includes stocks like Sonata, Redington, Aarti Industries, KEC International, Dilip Buildcon, and TV Today Network.

Additionally, P&G Hygiene, Elgi Equipment’s, GE Shipping, Kirloskar, Solar Industries, and Divis Laboratories. Sterlite Technologies, Hexaware Technologies, Gujarat Heavy Chemicals, Elgi Rubber, Jubilant Lifesciences, Phillips Carbon, Rane Holdings, Ramco Cements, Ipca Laboratories, Lakshmi Machine, HEG, and Carborundum Universal.

Stretched valuation in the broader market was an overhang but investors should focus on stocks which can deliver growth in the next 2-3 years. With the recent corrections, most of the smallcaps appear less expensive.

If the correction is so high and it is in high-quality stocks, it is advisable to maintain or average the respective stocks.

It is also a good time to measure your portfolio risk and accordingly add high-quality blue-chips and reduce high beta stocks. Higher exposure to defensive stocks which are available at fair valuation will work in the long-term.

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