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Mid-cap stocks of the week Oct 10, 2004
The Mid cap stocks listed below are Nifty 500 components - liquid, traded easily and benchmarked volatility. These are stocks that we expect to out-perform the markets. It should be remembered that many of these stocks are trading with abnormally high volumes, maybe operator driven, and have appreciated significantly. Therefore, the risk element is likely to be very high. Take limited exposure to these stocks and maintain stop losses as specified.
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Individual stocks. |
Birla Corp - this diversified company is making higher tops and bottoms and is a strong market out-performer as the chart below indicates. The relative strength reads 385 which is strong for a mid-cap stock. The oscillators are pointing towards a high degree of relative strength and a further upmove is not ruled not. The stock is in a zero resistance zone and is unlikely to witness significant selling pressure, barring adverse newsflow. We advocate a buy on declines.
Your call of action - Buying is recommended on declines to the 130 - 135 mark and a stop loss is advocated at the 120 levels. Profit taking is advocated at the 160 - 165 levels in a conducive market in the near term.
Birla Corp I Century textiles I CESC I Gujarat Alkali I Guj Indl Power I Hind Motors I Neyvelli lignites I Novartis I Tata Sponge I Vesuvius I Visual Software I Welspun Gujarat I Close window I Print page
Century Textiles - This well diversified company is showing a high relative strength as the stock breaks out of a congestion zone on the charts. The company is rapidly re-orienting it's business model and is getting a bigger market share in the branded apparel sweepstakes. Being a cotton textiles player, the company is likely to benefit from lower cotton prices and higher export potential. We recommend a buy on the counter.
Your call of action - Buying is recommended as long as the counter stays above the 150 levels. Hold with a stop loss at the 134 levels. Expect to book profits at the 180 in the near / medium term in a conducive market.
Birla Corp I Century textiles I CESC I Gujarat Alkali I Guj Indl Power I Hind Motors I Neyvelli lignites I Novartis I Tata Sponge I Vesuvius I Visual Software I Welspun Gujarat I Close window I Print page
Cesc Ltd - this RPG group company was recommended earlier with an accurate forecast of higher price projections. The company has not failed it's investors and the outlook continues to appear optimistic. The oscillators are pointing towards a further upmove and a hold on existing positions / buying on declines is suggested. The scrip is a high relative strength, market out-performer.
Your call of action - Buy on the counter as long scrip remains above the 120 mark, maintaining a stop loss at the 108 mark. Expect profit taking at the 140 - 150 levels in the short / medium term in a conducive market. Longer term players can expect higher levels.
Birla Corp I Century textiles I CESC I Gujarat Alkali I Guj Indl Power I Hind Motors I Neyvelli lignites I Novartis I Tata Sponge I Vesuvius I Visual Software I Welspun Gujarat I Close window I Print page
Gujarat Alkali - This counter recommended repeatedly and has performed as per our expectations. The scrip has rallied sharply in the previous week and has turned a market out-performer in the recent past. The oscillators are pointing towards a rally in the coming weeks and we maintain a buy on the counter for the patient investors.
Your call of action - Buy the scrip at the 70 levels and hold with a stop loss at the 59 mark. Expect profit taking at the 80 - 84 levels in the near term in a conducive market. Longer term players may expect higher levels.
Birla Corp I Century textiles I CESC I Gujarat Alkali I Guj Indl Power I Hind Motors I Neyvelli lignites I Novartis I Tata Sponge I Vesuvius I Visual Software I Welspun Gujarat I Close window I Print page
Gujarat Ind Power Supply - this company was recommended in the past but a conclusive buy signal was not triggered as the scrip failed to close above it's congestion levels. A breakout above the 65 mark with high volumes will propel this stock into a lower resistance area where upsides are likely to be accelerated and a 20 - 25 % upsides can be seen in the medium term. We recommend a buy as the scrip is market out-performer.
Your call of action - Buy the scrip above the 66 mark with a stop loss at the 59 levels. Expect profit taking at the 75 - 77 levels in the near / medium term in a firm market.
Birla Corp I Century textiles I CESC I Gujarat Alkali I Guj Indl Power I Hind Motors I Neyvelli lignites I Novartis I Tata Sponge I Vesuvius I Visual Software I Welspun Gujarat I Close window I Print page
Hind Motors - This CK Birla automobiles company is showing signs of revival on the charts as the stock makes higher tops and bottoms formation. The stock is currently trading above it's 52 week SMA and the oscillators are pointing towards the possibility of a fresh upmove. The counter is a market performer and is at best a trading / speculative grade buy.
Your call of action - Buy the scrip as long as it remains above the 11.50 mark and hold with a stop loss at the 9.50 mark. Expect profit taking at the 16 - 18 levels in the short / medium term in a conducive market.
Birla Corp I Century textiles I CESC I Gujarat Alkali I Guj Indl Power I Hind Motors I Neyvelli lignites I Novartis I Tata Sponge I Vesuvius I Visual Software I Welspun Gujarat I Close window I Print page
Neyvelli Lignites - this scrip is making a classic rounding bottoms formation on the weekly chart as the scrip rallies to it's 2004 highs at the 72 mark. Any close above this level will see an accelerated upmove and the scrip may even rise to the 80 mark. We recommend a buy.
Your call of action - Buy the stock at the current levels and hold with a stop loss at the 58 mark. Expect partial profit taking at the 71 levels and complete profit taking at the 75 - 77 mark. Buy in small / medium lots only.
Birla Corp I Century textiles I CESC I Gujarat Alkali I Guj Indl Power I Hind Motors I Neyvelli lignites I Novartis I Tata Sponge I Vesuvius I Visual Software I Welspun Gujarat I Close window I Print page
Novartis - this MNC pharmaceuticals major is showing a text book saucer formation on the charts as the monthly chart below indicates. The WTO deadline of the EMR / patent modifications regime is likely to kick off from Jan 2005 onwards and all MNC's are likely to benefit. We recommend buying this scrip in small lots on declines for the patient investor.
Your call of action - buy on declines to the 520 - 525 levels and hold with a liberal stop loss of 485. Expect profit taking at 600 - 625 by the end of the calendar year in a conducive market scenario.
Birla Corp I Century textiles I CESC I Gujarat Alkali I Guj Indl Power I Hind Motors I Neyvelli lignites I Novartis I Tata Sponge I Vesuvius I Visual Software I Welspun Gujarat I Close window I Print page
Tata Sponge - this ferrous metals scrip has been recommended earlier and has performed as per our expectations. The stock is currently trading at it's 11 year highs and is headed for the 185 - 190 mark in the near / medium term. We re-affirm our buy recommendation.
Your call of action - Buy at the current levels and hold with a stop loss at the 142 mark. Expect profit taking at the 190 or above levels in a quarter in a conducive market.
Birla Corp I Century textiles I CESC I Gujarat Alkali I Guj Indl Power I Hind Motors I Neyvelli lignites I Novartis I Tata Sponge I Vesuvius I Visual Software I Welspun Gujarat I Close window I Print page
Vesuvius - this counter was recommended earlier and has managed to achieve it's price target as advocated. The scrip is headed into the low / zero resistance area once it crosses the 160 mark. The oscillators are supporting the upmove and the scrip is a market out-performer. Buying is advocated in small lots.
Your call of action - buy above a breakout over the 160 levels and hold with a stop loss at the 144 levels. Expect to book profits at the 180 - 185 levels in the medium term. Keep exposure lower on this counter.
Birla Corp I Century textiles I CESC I Gujarat Alkali I Guj Indl Power I Hind Motors I Neyvelli lignites I Novartis I Tata Sponge I Vesuvius I Visual Software I Welspun Gujarat I Close window I Print page
Visual Software - This technology counter has signalled a by for high risk traders as it has closed above it's 200 day SMA. This bullish crossover has been achieved on higher volumes and support from the oscillators which are moving in tandem. We recommend a buy on the counter for the aggressive traders.
Your call of action - Buy on minor declines to the 155 - 157 levels and hold with a stop loss at the 145 mark. Expect profit taking at the 170 - 175 levels in the near term in a firm market.
Birla Corp I Century textiles I CESC I Gujarat Alkali I Guj Indl Power I Hind Motors I Neyvelli lignites I Novartis I Tata Sponge I Vesuvius I Visual Software I Welspun Gujarat I Close window I Print page
Welspun Gujarat - this scrip has been in the limelight and is showing signs of recouping it's lost glory. The higher tops and bottoms formation are evident and the oscillators are supporting the upmove. The scrip needs to close above the 44 mark and will confirm a buy trigger. We expect an upmove to the 55 mark on a confirmed breakout. Buying is recommended on this counter.
Your call of action - Buy above the 44 mark and hold with stop loss at the 39 levels. Expect profit taking at the 55 levels in a firm market in the near term.
Birla Corp I Century textiles I CESC I Gujarat Alkali I Guj Indl Power I Hind Motors I Neyvelli lignites I Novartis I Tata Sponge I Vesuvius I Visual Software I Welspun Gujarat I Close window I Print page
- Have a profitable week.
- Vijay L Bhambwani
- Ceo :- Bsplindia.com
The author is a Mumbai based investment consultant and invites feedback at Vijay@BSPLindia.com and ( 022 ) 23438482 / 23400345.
SEBI disclosure :- The author has no positions in any securities mentioned above.
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