Mid-Cap Picks With Anil Singhvi: Gujarat Alkalies, Atul Ltd and KNR Constructions are stocks to buy, says Jay Thakkar
Gujarat Alkalies, Atul Ltd and KNR Constructions are recommended as long-term, positional and short-term picks.
Market expert Jay Thakkar, Vice President & HOR Equity Research (Fundamental, Technical, Derivatives & Algo) at Marwadi Shares and Finance Ltd while talking to Zee Business Managing Editor Anil Singhvi on the Special Mid-cap Picks show was as bullish as the wider markets and recommended Gujarat Alkalies, Atul Ltd and KNR Constructions as his long-term, positional and short-term picks. The stock market on Friday closed with minor gains. Notably, BSE Sensex jumped 127 points to close at 40685 today even as NSE Nifty was up 34 points and ended the day at 11,930.
Stocks to Buy: Gujarat Alkalies (Long Term pick)
Picking Gujarat Alkalies as a long-term pick, Jay Thakkar clearly said he has always recommended this stock in the other show called “Dus Ki Kamaai” and it had made good profits 3 to 4 times. The stock has consolidated in last 5 months in range of Rs 300 – Rs 400. On monthly time frame the stock is extremely oversold. Thakkar says he is expecting a reversal soon after having consolidated for so long and is also eyeing a big breakout on this stock. There is high probability the next move will be on the upside. The stock should be bought for long term at current market price of Rs 317 with stop loss of Rs 260 and target of Rs 425-460.(Time frame 9 to 12 months).
Stocks to Buy: Atul Ltd (Positional pick)
Jay Thakker said he would pick Atul Ltd as positional pick. The stock has formed falling wedge pattern, after consolidating the stock has given breakout today. One can buy at current market price of Rs 6200 with target of 7500 and stop loss of Rs 5600. Risk reward of 1:2 is in favour because stop loss is Rs 600 points away from current market price of Rs 6200 and target is Rs 1300 away at Rs 7500. The stock is trading in upward channel, 4th wave of correction is over and stock has reversed after taking support at lower levels. Also considering the falling wedge pattern it seems many technical parameters are in favour to pick the stock. (Time frame 3 to 6 months)
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Stocks to Buy: KNR Constructions (Short term pick)
Picking KNR Constructions as short-term pick, Jay Thakkar said that KNR construction has formed Symmetrical triangle pattern. One should buy at current market price of Rs 251 with target of Rs 275 to 282 and stop loss of Rs 237. On daily charts the momentum indicators are extremely oversold. Seeing reversal on hourly charts has happened and on daily charts also reversal may happen soon. Considering the symmetrical triangle pattern the stock zones seems to be ready for a breakout, once the stock reverses and comes into buy crossover zone, it can move towards the upside due to strong momentum. So, strength can be seen in this stock. The stock has finish consolidating in 4th wave and now in 5th wave it will reverse strongly according to the pattern formed.
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