3 short-term stock buys which can offer up to 16% returns

At this juncture, 10640 – 10665 zone is a crucial hurdle for the Nifty and any sustainable move beyond this level will drive Nifty higher towards 10703 – 10736 which coincides with the weekly gap area.

   

The Nifty continued to trade in a narrow range of 10,540-10,630 as several factors restricted the rally. Sharp fall in the USD:INR pair, rise in bond yields and surge in crude oil prices were among the top reasons that kept indices rangebound throughout the week.

The Nifty made several attempts to surpass the crucial resistance of 10,640 levels. However, follow-up buying was clearly missing. On an hourly chart, we can see a complex bearish divergence, whereas the weekly RSI (14) is approaching 60 levels.

At this juncture, 10,640–10,665 zone is crucial hurdle for the Nifty and any sustainable move beyond this level will drive Nifty higher towards 10,703– 10,736 levels which coincides with the weekly gap area.

On the flip side, if the Nifty fails to cross and hold 10,640 levels and slides below 10,563 levels, we may see some correction in our market which could take the index towards 10,450–10,355 levels, respectively.

Short rollovers were seen in cement, capital goods, banking, NBFCs and oil & gas sector and that will keep markets under pressure, whereas sectors like technology, metal, pharma, and FMCG saw long positions getting rolled in May series.

From current levels, we don’t expect a big upmove in Nifty and any rally/short covering move towards 10,700-10,740 levels can be used to exit from long positions and initiate fresh shorts.

On the lower end, the level of 10,500 will act as immediate support for the Nifty, post which it can test 10,350-10,300 levels.

Here is a list of top 3 stocks which could give up to 16% return in the short-term:

Wockhardt: Buy at 795| Target 900| Stop Loss 750| Timeframe 15 to 21 sessions| Return 13%

After consolidating near 200-SMA, the stock saw decent buying interest in the past few trading session. The move was also confirmed by the rising volume activity.

On the weekly chart, despite the sharp fall from 1012, the 9-45 EMA on price is positive and indicates that the current trend is still up.

The weekly RSI (14) indicates that stock is likely to resume its uptrend. We advocate traders to buy Wockhardt at the current level of Rs795 with a price target of Rs900 and a stop loss placed below Rs750.

Maruti Suzuki India Ltd: Sell around 9000| Target 8300| Stop loss 9350|Timeframe 15 to 21 trading sessions| Return 7%

Maruti Suzuki has been under pressure since past few trading sessions as stock resumed its medium-term downtrend. Recently, the stock confirmed its breakdown on daily RSI (14) which doesn’t bode well for bulls.

Also, the daily, as well as the weekly RSI, has a signal shift in a range. Hence, we expect a further correction in this stock and recommend traders to short Maruti around 9000 levels with a price target of 8300. Stop loss should be placed at 9350 on a closing basis.

SAIL: Sell around 77 – 78| Target 63| Stop loss 81.50| Time frame 15 to 21 trading session| Return 16%

Last week, stock rested the neckline drawn from its previous support zone which was broken during early March 2017. In line with expectation, stock witnessed decent sell-off and in that pessimism, sail confirmed its breakdown from down sloping trend line drawn from its recent swing low of Rs67.15.

The said breakdown was confirmed by the daily RSI (14) which support our hypothesis. Hence, we expect the resumption of downtrend in this stock, therefore, advice traders to sell this stock in a range of Rs 77 to Rs 78 with a price target of Rs 63. A stop loss should be placed above Rs 81.50.

MORE WILL UPDATE SOON!!

Volatility to rise ahead of April expiry; 3 stocks which return up to 12%

The Nifty50 has been making higher highs higher lows on a weekly scale, with support seen around 10,560 levels and then 10,485 levels which indicates a continuation of the uptrend is still intact.

  

The Nifty 50 managed to close on a positive note for the second straight day backed by earnings boost. After making a cautious start, amid weak global cues, markets traded in red terrain for the most part of the day.

But, it finally managed to close above the 10,600 mark forming a bullish candle pattern on the daily scale. The Relative Strength Index – RSI on the Daily Chart is at 65.42 showing an upward momentum.

The MACD is also trading above the zero line with positive crossover, which indicates that the bias could remain bullish for the next few trading sessions. India VIX fell by 9.51 percent at 11.89. A decline in VIX suggests limited downside and a consolidation.

The Nifty50 has been making higher highs higher lows on a weekly scale, with support seen around 10,560 levels (50 percent retracement of January to March downfall) and then 10,485 levels (mid-band of Bollinger band), which indicates a continuation of the uptrend is still intact.

In the mid-term Nifty has potential to move towards 10,705 levels (61.8 percent retracement of January to March correction) and then 10,981 levels (upper band of Bollinger band).

On the Options front, maximum Call open interest of 45.02 lakh contracts is seen at strike price 10,700, followed by 11,000, which now holds 31.09 lakh contracts and maximum Put open interest of 49.64 lakh contracts is seen at strike price 10,500, followed by 10,400 which now holds 40.47 lakh contracts.

As per the option data, the support level in Nifty has shifted higher in the April series compared to last week and the immediate support seen around 10,500-10,400 levels whereas 10,700 will act as a major hurdle.

Here is a list of top 4 stocks which could give up to 11% return in the short term:

Dalmia Bharat: BUY | Close: Rs 3004 | Target: Rs 3350 | Stop loss: Rs 2770 | Return: 11.52%

Post the correction in January, the stock slipped into consolidation mode. After three and a half months, the stock has given a breakout from this congestion zone with higher volumes.

The daily indicators such as Relative strength index (RSI) and MACD are in buying mode. We expect the stock to extend this rally towards our mid to long-term target of Rs 3350 with a stop loss below Rs 2770 on a closing basis.

Cadila Healthcare: BUY | Close: Rs 404.90 | Target: Rs 452 | Stop loss: Rs 380 | Return: 11.6%

After making a marginal consolidation, the stock has given a breakout from symmetrical triangle pattern above Rs 393-394 levels on Monday.

Volumes during this price action were almost double to its average daily volumes, indicating strong buying interest after this breakout.

The Relative strength index (RSI) is making the higher bottom and higher top and MACD is trading with a positive crossover whereas (+) DI just cross above (-) DI, which indicates that the stock has the potential to move higher.

Traders can buy the stock around current levels and add on dips around Rs 396-399 with a stop loss below Rs 380 (closing) for a target of Rs 452.

Sterlite Technologies: BUY | Close: Rs 354.85 | Target: Rs 392 | Stop loss: Rs 329 | Return: 10.42%

In daily scale, the stock has given a breakout from the Ascending Triangle pattern above Rs 342-344 levels on Monday with higher volumes than its daily average volumes.

The Relative strength index (RSI) found support on its twenty days average and pointing upwards whereas MACD is trading with positive crossover.

Based on the above observations, traders can buy the stock in the range of Rs 350-355 with a stop loss below Rs 329 (closing) for a target of Rs 392.

Yes Bank: BUY | Close: Rs 324 | Target: Rs 360 | Stop loss: Rs 302 | Return: 11.11%

In the daily scale, the stock has formed an Inverse Head and Shoulders pattern and gave a breakout above its neckline of Rs 320-321 levels with higher volumes, indicating strong buying interest.

The Daily Relative Strength Index (RSI) is showing an upward momentum and the MACD is trading with positive crossover whereas (+) DI trading above (-) DI from last seven trading days.

Based on the above observations, the stock is likely to head higher in the near to mid-term. Positional traders can buy the stock in the range of Rs 322-324 with a stop loss below Rs 302 (closing) for the target of Rs 360.

MORE WILL UPDATE SOON!!

These 4 technical short-term stocks could make you richer by 11%

The F&O expiry week and negative divergence coupled with small real bodies sharp and sudden corrections cannot be ruled out.

   

The Nifty 50 index has entered into a sideways consolidation phase as it is approaching resistance of 10,640 being the recent peaks. The Upper end of the range is placed at 10,600-10,640 and the lower end of the range is placed at 10,500 levels.

Failure to cross this resistance can lead to corrections to levels of 10,430-10,320. However, a breakout above 10,640 can take the Index to 61.8 percent Fibonacci retracement level placed at 10,718 and 78.6 percent Fibonacci level placed at 10,925.

Moreover, within the trading range, the real body movements are diminishing suggesting lack of participation. On the shorter time frame, RSI has started forming negative divergences suggesting maturing uptrend.

Therefore, keeping in mind, the F&O expiry week and negative divergence coupled with small real bodies sharp and sudden corrections cannot be ruled out.

Here is a list of top three stocks which could give up to 12% return in 3-4 weeks:

ICICI Prudential Life Insurance: Rating: BUY | Target: Rs 445 | Stop loss: Rs 363 | Return: 6%

On the weekly chart, ICICI Prudential Life Insurance is on the verge of a breakout from a channel pattern placed at Rs 395 after taking support at the 89 percent Fibonacci retracement level placed at Rs 370 (as indicated on chart). A sustained trade above Rs 395 can trigger a breakout from the channel resuming uptrend.

On the daily chart, the stock has formed a sizeable bullish candle with healthy volumes suggesting higher levels in the coming trading sessions.

Moreover, RSI has witnessed a range shift after taking support at the 40-level entering the bull zone affirming bullishness. The stock may be bought in the range of Rs 385-390 for targets of Rs 425-445, keeping a stop loss below Rs 362.

Caplin Point Laboratories: Rating: BUY | Target: Rs 675 | Stop loss: Rs 560 | Return: 12%

On the weekly chart, Caplin Point Laboratories is on the verge of a breakout from the channel pattern placed at Rs 633. Breakout with healthy volumes can trigger a bear trend reversal.

On the daily chart, stock has broken out from a Pennant pattern after taking support at the 50 percent Fibonacci retracement level suggesting further upside in the stock.

The RSI has turned upwards breaking out of the upper Bollinger Bands suggesting extended bullishness in the coming trading sessions. The stock may be bought in the range of Rs 596-602 for targets of Rs 655-675, keeping a stop loss below Rs 560.

Cadila Healthcare: Rating: BUY | Target: Rs 450 | Stop loss: Rs 370 | Return: 11%

On the weekly chart, Cadila Healthcare has turned upwards after taking support at the 50 percent Fibonacci retracement level placed at Rs 382 indicating higher levels in the coming trading sessions. Further, a sustained trade above Rs 403 can extend the uptrend taking it higher.

On the daily chart, the stock has broken out from a consolidation phase on good volumes confirming the bullishness building up in the stock. The RSI has entered in the bull zone after bearing out of broken out from upper Bollinger Band.

MORE WILL UPDATE SOON!!

Short sellers are on back foot; top 3 stocks which could give up to 12% return

As we are heading towards April expiry with two trading session left, the short sellers seem to be on back foot as they still holding outstanding short positions.

  

On every dip, we have been continuously seeing short covering in the Nifty as Call Writers are covering their positions which in turn supporting upside movement in prices.

In the recent weeks, we have observed that put writers are continuously shifting towards the higher band which signifies limited downside in the market ahead of expiry.

Furthermore, we also anticipate that more short covering can be seen in coming sessions which can lead Nifty towards 10,700 on the day of expiry.

The initial rollover data also indicates long rollover to May series. On the technical front, 10,580 spot level should act as support while 10,750 will be the immediate hurdle.

Here is a list of top three stocks which could give up to 12% return in short term:

AU Small Finance Limited Bank : BUY| Target Rs 775| Stop Loss Rs 640| Return 12%

The smart recovery has been seen in prices in recent weeks. The stock held back above its 200 days exponential moving average (DEMA) on the daily interval. Since past few weeks stock has been seen consolidating in range of Rs 680-650.

However, in Tuesday’s session, a fresh breakout in prices along with hefty volumes pushed the stock to surpass its recent resistance levels.

Additionally, the stock has also given a breakout above the Cup and Handle formation which can be visible on a daily interval. So, traders can accumulate the stock in a range of Rs 695-690 levels for the target of Rs 775 with a stop loss below Rs 640.

Praj Industries Limited: BUY| Target Rs 107| Stop Loss Rs 89| Return 12%

On the daily charts stock has formed double bottom formation around 80 levels and bounce back sharply to once again regain the momentum above its 200 days exponential moving average.

In addition, the stock has also formed inverted head and shoulder formation on daily charts and is on verge of a breakout above its neckline.

The positive divergence on secondary indicators are supporting the up move in prices along with multiple supports at its short and long-term moving averages. The traders can accumulate the stock in a range of Rs 95-98 for the upside target of Rs 107 with a stop loss below Rs 89.

SBI Life Insurance Company Limited: BUY| Target Rs 822| Stop Loss Rs 695| Return 11%

Ever since the stock has listed on the stock exchange it is trading in a broader range of Rs 625-725. The consolidation has been seen for more than six months.

However, in Tuesday’s session finally, the bulls took control over the prices as the stock has witnessed a consolidation breakout above the Rs 720 levels with hefty volumes.

Moreover, on the daily interval stock has also given a breakout above the ascending formation which is generally traded as a bullish pattern.

The traders can accumulate the stock in a range of Rs 746-740 levels for the upside target of Rs 822 with a stop loss below Rs 695.

MORE WILL UPDATE SOON!!

Dolly Khanna adds 4 stocks in Q1 CY18, has 8 multibaggers that rose over 100% in 2017

Dolly’s portfolio has more winners than losers. More than 80 percent of the stocks gave positive returns, with eight stocks rising more than 100 percent in the last one year.

One normally associates successful couples in the same profession with lawyers, doctors and even filmstars. But stock market? Yes, that too has one. Chennai-based Dolly and Rajiv Khanna are a couple to beat. Few can rival their ability to spot value small-cap or mid-cap marvels. Dolly counts as one of the top analysts in the fraternity of value pickers in India.

Rajiv started investing in the market in 1996 with an initial investment of Rs 1 crore, which is now worth over Rs 750 crore, according to reports. Their portfolio would also include other companies in which the duo holds less than 1 percent stake.

The two have a knack of spotting multibagger stocks and know when to book profits and when to increase stake in companies offering value after a  correction.

During the March quarter, the duo reduced stake in nine out of 20 companies in which they held more than 1 percent stake. But they continue to hold more than 1 percent stake in each of these nine companies after the sale.

Stocks in which the Khannas reduced their stake include names like Dwarikesh Sugar, Gujarat Narmada, Nitin Spinners, NOCIL, RSWM, Ruchira Papers, Sterling Tools, PPAP Automotive and Thirumalai Chemicals.

The couple added 4 new stocks to their portfolio, namely Associated Alcohols & Breweries, LT Foods, Radico Khaitan, and Som Distilleries and Beverages.

   

The duo added shares of three distillery companies during the recently-concluded quarter. These stocks have given stellar returns in the last one year, having risen around three times. Radico Khaitan rose 237 percent, Associated Alcohols 185 percent, and Som Distilleries rallied 108 percent in the last one year.

Associated Alcohols is a liquor manufacturer and bottles vodka and Scotch whisky for international brands.

Radico Khaitan makes various brands of whisky and rum, including 8 PM, Royal Whytehall, After Dark Whisky, Contessa Rum and 8 PM Bermuda Rum, among others. Som Distilleries & Breweries manufactures beer and whiskys.

Dolly has always been an active trader and believes in playing the momentum game. This is evident from the fact that she has either bought or sold some part of the holding in all the 20 stocks listed in her portfolio.

   

She added four stocks to her portfolio in the quarter ended March but exited or reduced her stake to less than 1 percent in four companies --  Dhampur Sugar Mills, Emkay Global, IFB Industries, and Nandan Denim, according to data available on April 20.

Dolly’s portfolio has more winners than losers. More than 80 percent of the stocks gave positive returns, with eight stocks rising more than 100 percent in the last one year. Only four of the 20 stocks gave a negative return over the same period.

Some of the stocks, other than the three beer and spirit makers that rose more than 100 percent each, include Rain Industries (up 226 percent), Thirumalai Chemicals (up 167 percent), and Butterfly Gandhimathi (up 164 percent), among others.

Four stocks that ended in the red include Dwarikesh Sugar (down 48 percent), Nitin Spinners (down 24 percent), RSWM (down 24 percent), and Ruchira Papers (down 2 percent).

MORE WILL UPDATE SOON!!

Looking for small and midcaps? Top 6 stocks to buy in the April expiry week

Midcap and smallcap indices rose over a percent each this past week, outperforming the headline index, and there are some stocks that investors can look at buying this week.

   

Midcap and smallcap indices rose over a percent each this past week, outperforming the headline index, and there are some stocks that investors can look at buying this week.

The Nifty rose 0.6 percent in the week ended April 20. However, price appreciation was on tepid volumes accompanied with a reduction in the daily price change as the week advanced, indicating lack of participation and maturing pullback rally.

Thin volumes, small real bodies and failure to sustain above 10,640 in the coming week can resume the corrections, dragging the index lower to levels of 10,380-10,300.

Definitely, when a stock trades above the 200-DMA, that’s a healthy sign, a sign of strength. However, only 200-DMA does not provide the complete health score of a stock.

One should also look at the chart patterns along with Dow Theory, which says indices must confirm each other and volumes must confirm the trend.

Technical indicators like RSI, MACD also provide fruitful insight in identifying start and termination of trends. Therefore, one should look at a combination of few filters before initiating a trade, but the idea is to keep it simple and not look at multiple indicators at the same time.

Midcap and smallcap indices over 1 percent each this past week, outperforming the headline index. Both indices have recovered from their oversold territory. However, they are still trading below the 50 percent and 61.8 percent Fibonacci retracement levels.

In a typical counter-trend pullback, rally indices/stocks tend to reverse from these retracement levels (i.e. 50 percent and 61.8 percent). If both indices fail to trade beyond these retracement levels corrections can resume.

Therefore, investors should look to book profits in the midcap and small stocks on rallies to these retracement levels. However, there are few individual stocks within the midcap and smallcap space that can be bought, to name a few.

1) Amara Raja Batteries

2) Apollo Hospitals

3) Biocon

4) Century Plyboards

5) Cochin Shipyard

6) DCB Bank

 What should be the ideal strategy of investors for expiry week?

A) As per options open interest data, Nifty is expected to remain range-bound within 10,500-10,600 levels in the coming week, which happens to be the April F&O series expiry week.

Investors can use this range to take long and short trades accordingly. Alternatively, they can opt for a short strangle strategy.

3 positional calls are as follows:

Avanti Feeds: BUY| Target Rs 2,900

The stock is on the verge of a breakout from a falling channel resistance placed at Rs 2,400. A sustained trade above this resistance with healthy volumes can resume the uptrend taking it to levels of Rs 2,700-2,900.

Further, RSI has turned upwards from its previous support zone of 43, currently trading above the 50 level suggesting higher levels in the coming trading sessions.

ITC: BUY| Target: Rs 320

The stock formed a sizable bull candle with healthy volumes indicating bullishness in the stock. Further, it has closed above the midpoint of the channel and its nine-weeks high of Rs 275.

On the monthly time frame, RSI has turned upwards from the neutral level of 50 suggesting higher levels in the coming trading sessions. A sustained trade above Rs 275 can extend the up move to levels of Rs 290-320 being the GAP area.

REC: BUY| Target Rs140

The stock is on the verge of a breakout from an Ascending Triangle consolidation suggesting a bear trend reversal on cards. A sustained trade above Rs 132 with healthy volumes will trigger a breakout from the pattern taking it to levels of Rs 136-140.

Further, RSI has formed a positive divergence indicating higher levels in the coming trading weeks.

MORE WILL UPDATE SOON!!

Top 10 money-making ideas which could give up to 22% return in April expiry week

Here is a list of top 10 stock ideas from different experts which can offer up to 22% return in the next 30 days.

  

The Nifty rose 0.8 percent for the week ended April 20 and held onto to its crucial support placed at 10,500 levels. The index gained for the fourth straight week but the momentum seems to have disappeared. It is likely to face stiff resistance near 10,600-10,640 levels.

“There are a few technical pieces of evidence that justify 10,600-10,640 levels. First, post the Union Budget, the Nifty corrected from 10,638 and 10,631 on two occasions, which will now act as a strong hurdle,” Sameet Chavan, Chief Analyst, Technicals and Derivatives at Angel Broking, said.

This coincides with its 50 percent Fibonacci retracement of the recent fall from 11,171.55 to 9,951.90. Also, the upward sloping trendline connecting previous bottoms (9,687.55 and 10,276.30) is now converging around the same area.

Chavan sees the index heading to 10,750 levels if 10,600 is breached. “As a chartist, traders are respecting this zone of 10,600–10,640. In case of violation of this hurdle in the upward direction on a sustainable basis, we may see the relief rally getting extended 10,720–10,750. But it certainly does not change the broader outlook, as we still expect the possibility of selling pressure resuming at higher levels.

He advises traders to stay light for a while, focusing on key levels and adopting a stock-centric approach for the next few days.

As far as support levels are concerned, 10,495 followed by 10,355 would now be crucial.

We have collated a list of top 10 stock ideas from different experts which can offer up to 22% return in the next 30 days:

Tata Motors: Buy| Target Rs 372| Stop loss: Rs 327| Return: 10%

This counter is in a downtrend and remains an underperformer. It is moving in a well-defined down sloping channel since the highs of Rs 598 per share registered in September 2016. It again approached the demand line of the said channel, which attracted buying support and propped up prices from the lows of Rs 330 per share a couple of weeks back.

After retracing major part of the said pullback rally from Rs 325-372 levels, this counter appears to have formed a base around Rs 332 per share and looks ready for a take-off. Hence, positional traders should go long for an initial target of Rs 372 per share with a stop of Rs 327 per share.

PNB Housing Finance: Buy| Target Rs 1,469| Stop loss: Rs 1,297| Return: 8%

After the recent breakout above its 200 daily moving average, this counter slipped into consolidation phase and appears to have resumed its upswing from the said congestion zone of Rs 1,360–1,290 levels. In such a scenario it should head towards its logical target of Rs 1,469 per share. Hence, positional trade can create longs for the said target with a stop of Rs 1,297 per share.

Motherson Sumi: Buy| Target: Rs 372| Stop loss: Rs 332| Return: 6%

This counter appears to have resumed its upmove after trading in the recent congestion zone of Rs 350–335. After sustaining above Rs 340 levels, it can be expected to head towards its logical targets of Rs 372 per share. The stop suggested for the trade is Rs 332 per share.

Analyst: Sameet Chavan, Chief Analyst, Technicals and Derivatives at Angel Broking

Wockhardt: Buy| Target: Rs 863| Stop loss: Rs 748| Return: 8%

Post the correction in January, the stock slipped into consolidation mode. After three months, the stock burst through this congestion zone and confirmed a neckline breakout from the inverse head and shoulder pattern. Volumes during this price action were almost thrice its average daily volumes, indicating strong buying interest after the base building process. We expect the stock to extend this rally and eventually climb towards our near-term target of Rs.863 per share. Traders are advised to follow a strict stop loss at Rs748 per share.

Bata India: Buy| Target: Rs 857| Stop loss: Rs 763| Return: 7%

Since the last couple of weeks, this stock has been consolidating in a small range. On Friday, we witnessed a surge in the last couple of hours of trade. The surge was quite abrupt but confirmed a breakout from the near-term hurdle of Rs 791 per share on a closing basis. This was accompanied by massive volumes, providing credence to this move. One can look to go long for a target of Rs 857 per share by following a strict stop loss of Rs 763 per share.

Ramco Systems: Buy| Target: Rs 535| Stop loss: Rs 442| Return: 10%

The breakout from the bullish flag continuance pattern signals resumption of the next up leg after a couple of days breather in the stock. After correcting over 60% from its 2015 peak, the stock has been languishing in the Rs 600-350 range for over a year. In the current week, a swift rally backed by unusually high volumes indicates that the stock has attracted the attention of market participants as most midcap IT stocks have seen a decent rally over the past few months.

The bullish flag formation on the daily chart indicates a breather after the sharp rally and provides a fresh entry opportunity to ride the next up leg. The stock is likely to accelerate momentum and head higher in the near-term towards Rs 535 per share as it is the 80% retracement of the most recent down leg from Rs 572 to Rs 353 per share.

Zensar Technologies: Buy| Target: Rs 1,125| Stop loss: Rs 935| Return: 11%

The share price of Zensar Technologies has been trading in a rectangle formation by oscillating within a broader range of Rs 750–1,130 per share since August 2015. Over the past 15 months, the stock made multiple failed attempts to sustain above the Rs 960 mark, indicating stiff resistance at that level. The stock logged a breakout from the past 11 week’s consolidation range of Rs 857–997, backed by heavy volumes, indicating a resumption of the uptrend.

Among oscillators, the weekly moving average convergence divergence (MACD) found support from its nine week average and is now pointing upward. The Relative Strength Index (RSI) has retested earlier breakout levels indicating an acceleration of momentum after forming a base above the zero line.

The stock’s momentum is likely to accelerate and head higher in the near-term towards Rs 1,125 per share as it is the implicated target of the weekly consolidation (Rs 997-857) coinciding with identical highs near the upper band of the rectangle pattern of Rs 1,130 per share. On the downside, immediate support remains around Rs 935 per share as it is the placement of eight week’s exponential moving average (EMA) coinciding with the current week’s low.

D-Link: Buy| Target: Rs 126| Stop loss: Rs 102| Return: 22%

The D-Link stock has registered a breakout above the bullish flag pattern signalling a positive bias. The breakout was accompanied by strong volume of more than three times the 200-day average volume of 3 lakh shares per session, indicating larger participation in the direction of the trend. Thus, supporting continuance of the positive trend.

During the previous week, the stock witnessed a strong rebound from the support area of Rs 81 per share and rallied to Rs 112 per share in just three sessions. Post this, the index consolidated for the last three sessions during which it retraced its previous up move by just 23.6%, signalling a positive price structure.

We expect the stock to continue its current upmove and test levels of Rs 126 per share being the confluence of the 61.8 percent retracement of the entire decline from Rs 153 to Rs 81 and the high of February 2018 around Rs 126 levels.

PNC Infratech: Buy| Target Rs 205| Stop loss: Rs 166| Return: 15%

The share price of PNC Infratech remains in an uptrend, forming a rising peak and trough on the weekly chart. The stock has rallied to an all-time high of Rs 228 per share in December 2018. Since then, it has been in a corrective decline for the last three months. The recent price activity suggests that the corrective decline has approached maturity and is likely to resume a fresh upmove.

The stock has recently rebounded from the support area of Rs 150-155 per share, being the confluence of its 52-week EMA and 80 percent retracement of the previous up move from Rs 130 to Rs 228. The sharp upmove in the last two weeks from the support area signals a reversal of the corrective trend and offers a fresh entry opportunity. We expect the stock to continue with its current upmove and test Rs 211 per share, being the 80 percent retracement of the entire decline from Rs 228 to Rs 148 per share.

Godrej Properties: Buy| Target: Rs 850| Stop loss: Rs 685| Return: 9%

Godrej Properties’ share price was consolidating in a broader range of Rs 728–859 per share over the past two months. During this two month consolidation, the stock has taken support from the gap area of January 8 on multiple occasions, indicating sturdy base formation around Rs 728 levels.

At present, it registered a breakout from the falling trendline drawn adjoining subsequent high of Rs 912–849 supported by above average volumes, indicating termination of an intermediate correction. Among oscillators, RSI found support at its one-year long support base of 35, pointing upward, confirming base formation. The stock is likely to head higher in the near-term towards Rs 850 per share, which is the placement of identical highs coinciding with the upper band of the broader consolidation range of Rs 859-728.

MORE WILL UPDATE SOON!!

Volatility seen after 6% rally; these 10 stocks can return up to 27%

The market's upward trajectory was in spite of volatility in stocks traded abroad and crude hitting multi-year highs, primarily because investors continued to be hopeful that earnings would keep getting better.

 

The market continued its coasting in the green on Monday, having risen by nearly 6 percent over the past four weeks and recovering more than half the losses it witnessed since February.

The market's upward trajectory was in spite of volatility in stocks traded abroad and crude hitting multi-year highs, primarily because investors continued to be hopeful that earnings would keep getting better.

TCS' healthy Q4 earnings and outlook for FY19, a normal monsoon forecast by meteorological agencies, and consistent inflow from domestic institutional investors, also boosted sentiment.

After a rally of nearly 6 percent in four straight weeks, the market is largely expected consolidate in the coming week. The expiry of April derivative contracts would add to overall volatility.

Investors will continue monitoring earnings performance, crude oil prices and movements in the rupee going ahead, apart from developments pertaining to the Karnataka assembly elections slated to take place next month.

Markets will remain volatile during the next week with impending derivatives expiry and a number of companies’ annual results.

Apart from the ongoing corporate earnings season, markets would start factoring in the sharp rise in crude oil prices, and weakness in the rupee, Gaurav Jain, Director, Hem Securities said.

Brent crude oil futures crossed USD 74 per barrel mark last week, their highest since late 2014.

Here is the list of 10 stocks that can give up to 27 percent return:

Cyient: Buy | Target - Rs 780 | Return - 10%

Cyient reported Q4FY18 numbers wherein revenues were above our estimates mainly on account of higher-than-expected growth in the Rangsons business. A positive outlook for services and DLM, traction across business verticals would lead to strong earnings growth of 16.5 percent CAGR during FY18-20E.

We upgrade Cyient to Buy rating on the back of sustained earning growth momentum and revise target price to Rs 780.

Cyient USD revenues grew 8.3 percent QoQ to USD 164.6 million, above 7.6 percent QoQ growth and USD 163.5 million estimate. Revenues in rupees grew 8 percent QoQ to Rs 1,061.8 crore, above Rs 1,052.3 crore estimates.

EBITDA margins fell 50 bps QoQ to 14.1 percent, below our 30 bps decline, 14.3 percent estimate mainly due to higher material cost (up 76 percent QoQ). Reported PAT of Rs 118.4 crore was above our Rs 96.1 crore estimate on account of lower-than-expected tax rate (ETR of 21.3 percent as a percentage of profit before tax versus our estimate of 28 percent) and higher other income (Rs 40.8 crore versus Rs 27.3 crore in Q3FY18).

Cholamandalam Investment: Buy | Target - Rs 1,775 | Return - 14%

Cholamandalam Investment and Finance Company (CIFL), incorporated in 1978 as the financial arm of the Marugappa Group, is one of the leading vehicles finance (VF) companies in India. Starting business firstlyin South India, CIFL has now presence in around 27 states and AUM is well diversified, both geographical as well as product wise.

CIFL reported significant improvement in assets quality (GNPA ratio reduced to 3.7 percent in Q3FY18 versus 4.5 percent in Q4FY17) and also concern on Home Equity segment’s assets quality eased as the company repossessed 43 properties under SARFESI which will be auctioned soon.

Management’s focus on NPA recovery, reducing credit cost and quality performance of vehicle finance segment would improve the assets quality going forward. AUM is likely to grow at around 20 percent in coming fiscals given strong activity momentum in commercial vehicle (CV) & overall auto industry and expansion into newer segments like LAP and MSME financing.

The stock has already rerated; increased by 45 percent over the last six months, factoring improving operational and financial performance. We assign ‘Buy on Dips’ rating to the stock with potential price of Rs 1,775 per share (upside potential 13 percent, holding period 12-18 months).

Radico Khaitan: Buy | Target - Rs 500 | Return - 15%

We maintain Buy on Radico Khaitan with catalysts expected from strong Q4FY18 results (+55 percent YoY) and faster debt reduction.

Most of the investors were surprised to know that Radico Khaitan has 50 percent share in India's Vodka market and is India's third most profitable liquor company.

Investors showed keen interest in understanding its drivers for earnings improvement in past 2 years. The management highlighted that it would continue its focus on premiumisation and debt reduction.

With improving demand scenario for liquor and execution on track, we remain constructive. We may upgrade our earnings forecasts if the company reduces its debt faster-than-expected. Target price of Rs 500 based on 35x FY20E PER.

Bajaj Electricals: Buy | Target - Rs 735 | Return - 14%

Bajaj Electricals's project business secured two large orders worth Rs 3,000 crore recently in rural electrification segment. The order book has increased by 150 percent to Rs 5,000 crore which is executable over the next 2 years.

We have raised our FY19-20 earnings forecast by 12 percent as we factor in these large orders into our revenue forecasts. As per the management, the margins on these orders are on the expected lines. We now forecast Bajaj Electricals' EPS to rise 50 percent in FY19 and 31 percent in FY20. Our new SOTP based target price is Rs 735 versus Rs 674 earlier.

We maintain strong Buy on the stock as we continue to like its consumer business which contributes 57 percent to Bajaj Electricals' profits. Catalyst from earnings upgrades from new order wins and accelerated growth in consumer business.

Torrent Pharmaceuticals: Buy | Target - Rs 1,570 | Return - 12%

In Torrent Pharmaceuticals, there is likely improvement in its domestic business. We expect Unichem acquisition is a strategic fit for Torrent Pharmaceuticals, as the deal would further strengthen its presence in key chronic therapy segment and improvement in profitability of Unichem’s product portfolio through its own strong field force and robust distribution network.

Its domestic business is expected to clock 25.7 percent CAGR led by Unichem acquisition, while Brazilian and RoW businesses are likely to witness 12.5 percent and 12.2 percent CAGR, respectively over FY17-20E.

Looking ahead, we expect Torrent Pharmaceuticals' sales, EBITDA and PAT to clock 14 percent, 17 percent and 12.5 percent CAGR, respectively through FY17-20E, while EBITDA margin is expected to improve by 197bps to 25.5 percent during the same period.

We maintain our fundamental Buy recommendation on the stock with a target price of Rs 1,570.

Ashok Leyland: Buy | Target - Rs 175 | Return - 13%

We recently attended Ashok Leyland's (AL) global conference, which reinforced our positive stance on the company as: (1) management guided for growth in FY19/20 & expects the shift towards higher tonnage vehicles to sustain; (2) focused strategy on exports/spare parts yielding results—up >30 percent in FY18; (3) product launches across categories.

We were impressed by the company’s effort to create a new 41T (lift-axle) category via intelligent engineering of existing 37T (lift-axle) offering; and (4) management envisages strong profitability in the LCV business. We believe, given the decisive shift in the industry’s product mix and Ashok Leyland, margin can surprise on the upside once the heightened competitive intensity and commodity cost headwinds subside.

We maintain that our robust demand outlook will be driven by ban on overloading, replacement demand, GST and driver shortage; our recent channel checks in South India validate our thesis. We maintain 'Buy/SO' with SOTP-based target price of Rs 175.

Ambuja Cements: Buy | Target - Rs 290 | Return - 17%

Ambuja Cements has strong balance sheet and consistently reporting steady performance on quarter on quarter due to healthy sales. The company

expects with the government's continued focus towards infrastructure development, affordable housing, smart cities, concrete roads and highways, coupled with remonetisation and the structural reforms pursued by the Union Government in the form of GST, it is expected that the economy would return to a high growth trajectory.

With its continued operational excellence programs, combined with segmented marketing and value added special cement products and building solutions, Ambuja Cements is well placed to benefit from economic growth trajectory.

Thus, it is expected that the stock will see a price target of Rs 290 in 8 to 10 months time frame on current P/E of 24.99x and FY19 EPS of Rs 11.61.

Container Corporation of India: Buy | Target - Rs 1,602 | Return - 19%

Container Corporation is well poised to tap the new business opportunities arising from potential growth in EXIM container volumes. In-depth knowledge of multi modal logistics business, availability of fairly large fleet of rolling stock, specialised container handling equipment, customised owned/leased containers and fully computerised commercial operations with internet based customer and customs interface provide

it a strong competitive advantage in availing opportunities for further growth.

Moreover, the management of the company expects increase in container traffic due to development of dedicated freight corridors. Thus, it is expected that the stock will see a price target of Rs 1,602 in 8 to 10 months time frame on a target P/E of 34x and FY19 (E) EPS of Rs 47.11.

Entertainment Network India: Buy | Target - Rs 827 | Return - 20%

Entertainment Network India Limited (ENIL), a Times of India (Bennett Coleman) Group Company is the leading radio network with 76 stations. This will fortify its presence in the top cities with dual stations.

ENIL registered healthy revenue, EBITDA and earnings CAGR of 14/15/17 percent over FY13-16, despite zero inventory addition. Over FY16-18E, ENIL’s operational stations expanded from 32 to 52. Yet, its revenue, EBITDA and PAT grew by 3/-15/-46 percent CAGR. This is primarily owing to economic slowdown and company specific issues in FY18.

Launch of new stations accentuated the decline. Led by economic tailwinds, consequent higher utilisation and price increases in established stations, and as new stations start contributing we expect ENIL to register healthy revenue and earning CAGR of 15 percent and 47 percent from FY18-20E. Initiate Buy with target price of Rs 827 at 30x FY20E FCFE per share.

Music Broadcast: Buy | Target - Rs 492 | Return - 27%

Music Broadcast (MBL), a Jagran Prakashan Group Company, is one of the leading radio networks in India. MBL has expanded from 20 stations in 2015 to 39 now. This includes eight Radio Mantra stations acquired from Jagran group and 11 new stations acquired in phase III, ensuring increased reach and more audiences.

Led by economic tailwinds, consequent higher inventory utilisation, and growth in new stations we expect MBL to register healthy revenue and earning CAGR of 13 percent and 22 percent from FY18-20E. Core return on capital employed (ROCE) will improve from 11.8 percent to 19.1 percent. Initiate Buy with target price of Rs 492 at 30x FY20E FCFE per share.

MORE WILL UPDATE SOON!!