Want to invest in equities this week; these four stocks can be good bet
Indian markets finished on a positive note last week, with Sensex surging over 289 points at 35,535.79 and Nifty 50 above 90 points at 10,806.50. These two benchmark posted gains in the week gone by, ignoring concerns pertaining to high crude prices, deceleration in domestic currency. Also it needs to be noted that, foreign institutional investors are seen on the sell side in both equities and debt market since start of 2018. Now in the upcoming days, there are list of factors that will reflect in the movement of Indian markets.
According to Moneywise Financial Services report, going next week, Macroeconomic data, next batch of January to March 2018 quarterly earnings, 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 prices will dictate trend on the bourses next week.
On the political front, the report highlighted over Karnataka Assembly elections single-phase polling which was held on May 12. Results will be announced on Tuesday, 15 May 2018. Karnataka is one of only three states to be ruled by the Congress.
However, while the above mentioned factors will decide the fate of Indian markets performance this week, here’s a list of four stocks which can be a good bet of investment, as per the report.
There is a love for equities and considering markets are at booming stage, everyone would want to have a piece of it. Hence, if you plan to invest in equities, then have a look at these four stocks selected by Moneywise Financial Service.
The Company plans to continue to grow through a judicious mixture of owned and leased hotels, a derisked model along with its ability to attract management contracts. Its command and long & successful track record in operating hotels for third party owners would facilitate growth for the future.
Moreover, it has ability to deliver improved returns on capital would be driven through product renovation, rigorous asset management, revenue maximization, cost control and reduced leverage and exit from noncore underperforming assets.
Thus the report said, “we expect the stock to see a price target of Rs 171 in 8 to 10 months time frame on an expected P/Bvx of 4.50 and FY19 (BVPS) of Rs38.01.”
The company has a healthy balance sheet and strong cash balance. It is the best placed to benefit from revival in Oil & Gas capex, given its dominant position in the segment. Company’s order inflows have improved in the last one-two years. The company has a healthy mix of domestic and overseas orders.
Thus, it is expected that the stock will see a price target of Rs.185 in 8 to 10 months time frame on a target P/E of 25x and FY19 (E) earnings of Rs.7.39.
Container Corporation of India Limited (CONCOR)
The stock is trading in a rising channel on weekly interval and forming higher highs and higher lows formations. Additionally it has also formed inverted head and shoulder formation which is generally traded as bullish pattern.
The hefty volumes with rise in prices suggest that bulls are taking control over the stock and may witness more upside in prices in coming sessions as well. Therefore, one can buy the stock in the range of Rs 1405-1410 levels for the upside target of Rs1525-1535 levels with SL below 1335.
Arvind Limited (ARVIND)
After taking multiple support around 375 levels stock finally gave recovery and once again risen above its key resistance level of 425 levels. On weekly charts stock has also given upside breakout above the ascending triangle formation along with hefty volumes.
Additionally on daily interval stock has also formed an inverted head and shoulder formation and given breakout above the neckline placed at 420 levels which supports the follow up buying in coming sessions.
Therefore, one can buy the stock in the range of Rs 425-430 levels for the upside target of Rs 460-462 levels with SL below 405.
In a year, Sensex has given 23.98% return, whereas Nifty 50 has managed to soar by 21.19%.