Stock picks for the week: Reliance Industries to Infosys, 7 shares to profit from

Indian markets finished on a negative note last week, with Sensex tumbling by over 95 points or 0.27% at 35,227.26 and Nifty 50 lower by 40 points or 0.37% at 10,696.20. These two benchmark declined despite India bouncing back and retaining its tag as the fastest growing economy. India’s GDP growth rate came in at 7.7% in Q4FY18 compared to 7% in Q3FY18. The outcome of GDP was taken positively the by Indian rupee against US dollar index, however, domestic indices reacted oppositely. Going ahead, this week Indian markets performance will be focussed on the Reserve Bank of India (RBI) three day monetary policy meet. 

Analysts at Ashika Institutional Research said, “On the forthcoming week outcome of the RBIs monetary policy meeting will dictate the trend where the Committee will meet on 4-6 June 2018, there are expectations that with inflation inching up and growth getting firmer RBI may take a hawkish stance.”

So, for now, 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 Smart Traders, companies like Godrej Industries, Reliance Industries, Cholamandalam Investment & Finance, Infosys and Hero Motorcorp are best picks of the week. Here’s what the report says. 

Godrej Industries

The stock is trading above all moving averages within the consolidation space and is making cycles of higher tops and higher bottoms on hourly charts from the past few sessions. Hence, it is recommended for smart traders to get into long positions in the counter as per the levels mentioned above. Karvy has set a target price between Rs 647 per piece compared to current price of Rs 599 piece. 

Reliance Industries

Being from the low beta pack, the stock is expected to outperform the markets in volatile market conditions and may trade with upside momentum. Karvy recommend short-term traders to buy the stock at current levels for the targets of Rs 970 with the stop loss placed below Rs 899 levels.

Cholamandalam 

The price has moved above the mean and is moving to test the upper band in Bollinger band in the daily chart supporting our bullish conviction about the stock. 14 day RSI is trading above the 9 period average further supporting our bullish bias in the stock. Karvy has set a target price of Rs 1,660 per piece compared to market price of Rs 1,587 per piece. 

Infosys 

Infosys has outperformed its broader index NIFTY IT in the last trading week and has settled with marginal loss. The stock is placed well above the consolidation range breakout on the weekly chart and on the daily chart it is hovering above all its major moving averages. It is recommended to keep a stop loss placed below Rs 1150 for an upside target of Rs 1250 levels for the upcoming week. 

Hero Motocorp

The company gained more than 2% in the last trading session. The stock has given a return of around 2% during the last week, whereas, NIFTY AUTO has gained around 1.75% in the said time frame. The stock has outperformed the sector index and the outperformance in the counter is likely to continue in the coming trading sessions as well. 

To initiate long position around the current levels, one can keep a stop loss of Rs 3540 levels for the target of Rs 3790 levels. 

According to Moneywise Financial Services report two stocks can be good investment option. 

Manappuram Finance 

The company is witnessing healthy financial growth across all business segments. Diversification efforts paid off as growth in the overall business is well supported by the robust growth witnessed in the new businesses such as housing finance and vehicle finance.

It is expected that the stock will see a price target of Rs 132 in 8 to 10 months time frame on 2 year average P/Bv of 2.50x and FY19 BVPS of Rs 52.71.

Cyient 

The Company’s outlook for FY 19 is strong, backed by a strong pipeline and order backlog. Management expects a double digit growth in services business while DLM business is expected to grow in the range of 20%. The management expects a double digit growth in operating profit. 

It is expected that the stock will see a price target of Rs 855 in 8 to 10 months time frame on a current P/E of 20.37x and FY 19 (E) earnings of Rs 41.98.

In a year, Sensex has given 23.98% return, whereas Nifty 50 has managed to soar by 21.19%.