The Week Ahead & Stocks to buy in Samvat 2071

The Week Ahead:27^th to 31^st OCT-2014

Technically the markets are in Bulls move but a consolidation with short covering from the low of 7726 level. The markets rallied from 7930 level and has steam to touch 8070 level.

The expiry is round the corner, the markets wills ee a choppy session from Tuesday to Thursday.

The Diwali saw a gap up opening and continued with positive gains may continue on Monday first half with Bulls support and some short covering, the challenge may open up from Tuesday.

The run-up in the equities is dried up and results will dominate the moves. The PNB results are not exiting put the counter down from a high of 975 level to 920 level but it bounce from a low of 860 levels, whereas the BoB counter is struggling to stay above 880 level.

The quarterly results of HUL, Bharati Infratel and India Bulls Hsg on Monday, ABB, LUPIN, Ranbaxy on Tuesday, DrReddy, Grasim, OBC, SESASETERLITE, Tata Elxsi, Tech Mahindra on Wednesday, ACC, AMBUJA, ALBK, AndhraBank, BHARATI, ICICI Bank, IDFC, IOB, YES, TITAN on F&O Expiry day will announce results, ITC, GAIL, M&M, IDBI, NMDC, CENTURY, UNION BANK, NTPC and others like JSW Energy KTK Bank…etc will announce their quarterly numbers… The filter is ON with the results,… The growth stocks has bright future ahead.

Now, Nifty is in Bulls grip so long it stays above 7930 level but shorts can be initiated only below 7850 level. The buying at these levels is advisable with long perspective rather than quarterly basis. The Nifty has serious of resistances above 8050 level at 8070, 8135. The Nifty is good above 8120 when crossed the resistance at 8130-40 level. The Bank Nifty is good above 15850 and likely to cross 16750, may touch and face resistance at 16993. The Reliance and ONGC may find buyers interest at the lower levels.

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Stocks to buy in Samvat 2071

Here are a few stock recommendations for Samvat 2071 by leading brokerage and research houses

Puneet Wadhwa  |  New Delhi  

October 22, 2014 Last Updated at 22:48 IST

Samvat 2070 has been an eventful year for the Indian stock market, with the benchmark indices – the S&P BSE Sensexand the CNX Nifty rising 26 per cent each – hitting an all-time high of 27,354.99 and 8,180.20, respectively, in a liquidity and hope-driven rally that a stable government at the Centre after the general election outcome in May will help kickstart the comatose reform process and implement key policy decisions.

The BSE Mid-and Small-cap indices outperformed their larger peers rising 72 per cent and 52 per cent, respectively, during Samvat 2070.

Outlook and stock picks
While most analysts believe that the Indian markets are likely to trend higher and see a multi-year bull run on the back of an improvement in the economy as well as corporate earnings, they are mindful of the possible slowdown in global economy and its impact on India.

“For FY15, we would expect a Sensex EPS growth of around 15 per cent. We would expect earnings growth to accelerate once investment activity is revived and average at 20–25 per cent for the next several years. Considering that the valuation in several sectors like public sector banks, capital goods and infrastructure are extremely subdued, we would expect significant outperformance from these sectors in the next few quarters,” points out Varun Goel, head of portfolio management services at Karvy.

While capital goods, consumer durables, auto, banking and pharma indices rallied between 40 per cent and 60 per cent in Samvat 2070, a look at the top 10 stock recommendations (based on potential upside in percentage terms from the current levels) for Samvat 2071 from leading brokerage and research houses in the country suggests that select stocks can gain up to 70 per cent.

Infosys, ICICI Bank, Punjab National Bank, Reliance Industries, State Bank of India (SBI), ACC and Hero MotoCorp are some of the large-cap stocks that are part of the top recommendations across brokerages.

Analysts at HDFC Securities, for instance, believe that FY15 is a year of transition for Infosys and expect the company's growth to accelerate in FY16. “We see scope for Infosys to narrow the growth differential with peers, which could boost P/E expansion for the stock. Better clarity on capital allocation could be an additional trigger,” they said in a report.

SBI remains Motilal Oswal's preferred pick to play the recovery in Indian economy. Since SBI is highly levered to macro-economic conditions, an improvement in investment climate and interest rates would assuage asset quality fears, they believe.

Kolte Patil Developers, KNR Constructions and Prestige Estate Projects are some of the stocks brokerages remain bullish on in the real estate/infrastructure sector.


http://www.business-standard.com/article/markets/stocks-to-buy-in-samvat-2071-114102200188_1.html