Stock picks for the week: From Hindustan Unilever to Apollo Hospital, 7 shares to profit from
Indian markets finished on a slightly positive note last week, withhe benchmark Sensex indices finished at 35,622.14 above 22.32 points or 0.06%, whereas Nifty 50 closed at 10,817.70 up 9.65 points or 0.09%. However, the Indian rupee plumb a 17-month low - as it weakened against dollar index at 68.470 down 0.605 points or 0.89% on Friday.
The domestic gains in the index were also led by the IT majors Tata Consultancy Services Ltd and Infosys on the back of TCS' buyback announcement. However, the gains were capped due to the prevailing caution during the fractious G7 meet and the US Fed FOMC interest rate hike. Higher domestic inflation, widened current-account deficit and the concerns about US-China trade frictions also affected the domestic sentiment negatively.
According to SMC Global Securities, factors such as progress of monsoon, trend in global markets, investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs), the movement of rupee against the dollar and crude oil price movement will continue to dictate the trend of the markets.
While we are just few hours away to begin trading in Indian market tomorrow. If you are planning to make investment in equities, here’s a list of seven stocks that can be good options for you.
According to Karvy Traders, there are list of four stocks which are best bet this upcoming trading sessions.
This company gave a positive return of more than 1% in the last trading session. On a weekly basis, the stock has gained more than 1.50% during the last week, whereas the broader index i.e. NIFTY 50 has gained around 0.50% in the said timeframe.
The stock has also been trading with decent volumes. The 14-day RSI period has also given a positive crossover with the 9-day signal line and is pointing northwards on the daily charts. Hence, it is recommended to Smart Traders for initiatiating a long position around the current levels with a stop loss of Rs 765 levels for the target of Rs 810 levels.
Cholamandalam Investment and Finance Company
CHOLAFIN witnessed a strong up move from the lower levels of 1365 to 1760 within a short timeframe of 30-40 days. Thereafter, the stock has corrected from higher levels and took support around 61.8% Fibonacci retracement levels of the said rally and bounced back, suggesting an end of the correction.
The stock is trading well above the major moving averages and among the leading indicators, the parabolic SAR is trading well below the current market price of the stock, indicating the upward move is likely to continue in the near-term. Karvy has fixed a target price of Rs 1,614.55 for this company.
DALMIABHA is hovering around the immediate support levels around Rs 2500 and hinted at a possible reversal from lower levels. Coupled with this, the DMI- (26.11) is also pointing downwards, thereby indicating that once it breaches the important 25 mark, the pullback will get stronger. Hence, we recommend smart traders to get into long positions in the counter around the current levels and maintain a stop loss of Rs 2440 for a potential downside target of Rs 2675.
HINDUNILVR gave a positive return for the week where it gained more than 1.50%. The sector index i.e. NIFTY FMCG closed on a flat note with gains of around 0.10% in the said timeframe.
The stock has also been trading with decent volumes. The 14-day RSI period is also about to give a positive crossover with the 9-day signal line on the daily charts. Hence, we recommend Smart Traders to initiate a long position around the current levels with a stop loss of Rs 1565 levels for the target of Rs 1685 levels.
According to IIFL Research, the stock has formed a large bullish candlestick on the daily chart backed by a surge in volumes. Derivate data indicates fresh long formation in the stock. It has also witnessed positive momentum on the daily MACD histogram, which affirms our bullish view on the stock. IIFL has set a target of Rs 1,100.
According to SMC Global, the company, to enhance customer experience and continuous customer engagement, has undertaken series of initiatives such as automated credit decision, 360 degree customer view across all business, best in class customer on boarding experience using India stack, enhancing available modes of payments mthrough, wallets, payment banks, UPI, net banking and gradually moving to e-communication.
Thus, it is expected that the stock will see a price target of Rs 201 in 8 to 10 months time frame on a one year average P/Bvx 1.78 and FY19 (BVPS) of Rs 112.71.
SMC explains that the company has reported strong growth, which has been higher than industry growth in respective segments i.e. two-wheeler, commercial vehicle and passenger vehicle, indicating that GIL is gaining market share and is growing faster than the industry.
Thus, it is expected that the stock will see a price target of Rs.187 in 8 to 10 months time frame on a target P/E of 23x and FY 19 (E) earnings of Rs.8.12.