If you are an investor in stocks which have already more than doubled so far in 2017, it warrants your attention now.
The S&P BSE Sensex might have rallied over 17 percent so far in 2017 but there are plenty of stocks which gave multibagger returns of up to 700 percent in the same period.
Prominent stocks which more than doubled investor’s wealth include names like Indiabulls Ventures (up 711 percent), followed by Venky’s India (up 242 percent), Indiabulls Real Estate (up 179 percent), Shakti Pumps (up 215 percent), Future Retail (up 190 percent), Avanti Feeds (up 177 percent).
The Nifty is trading close to its lifetime high of 9,709 and if the momentum sustains we might be able to make history in June. The index looks ripe for an up move towards 9,700 but could come under pressure at higher levels.
The stocks which have given multibagger return belong to the mid and smallcap space which has already outperformed Nifty by a wide margin in the last 5 years. Even though, the macro story for India still remains intact but analysts are slowly turning cautious.
Hence, if you are an investor who has invested in stocks which have already more than doubled so far in 2017, it warrants your attention now.
“We are slightly cautious on the midcap and largecap space. The valuations there have become really expensive and on a whole also the markets have become fairly expensive,” Prashasta Seth, CEO at IIFL Asset Management Ltd told Moneycontrol.
“Till the point earnings start to come back, it is better to be in my mind largecaps than in midcaps or in smallcaps. Midcaps and smallcaps have outperformed largecaps by a big margin in the last 2-3 years. And there are companies trading at 40-50 times earnings in the midcap space,” he said.
Technically, the Nifty is forming higher tops higher bottoms on the weekly chart, which suggests that the medium-term trend is bullish as per the Dow Theory.
However, the daily & weekly momentum indicators are showing exhaustion, which indicates that there is scope for a pause before the index stretches further on the upside, suggest experts.
“From short term perspective Nifty can consolidate in the range of 9,700-9,500 before it resumes the larger up trend. Once the consolidation is over the index can head towards 10,000 & 10,300, which will be the medium term targets to watch out for,” Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan told Moneycontrol.
We have collated view from experts as to what investors should do with stocks which have more than doubled investors’ wealth so far in the year 2017:
Analyst: Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan
Analyst: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in
Venky’s India: Hold the stock
This counter is in a strong uptrend after hitting a higher bottom of Rs 220 in February 2016 and since then it has almost vertical multiplies itself by 7 times.
On the daily charts, it appears to be in a consolidation mode and investors can continue to hold this counter with a stop below Rs 1,370 on a closing basis and they should also seriously consider locking their profits if this stop loss is violated.
If the stock manages to sustain and resumes its uptrend, then the next possible target for the stock is near Rs 1,730 level in next 2-3 months.
Indiabulls Real Estate: Ride the rally with strict stop loss
Albeit this counter is in a strong uptrend. Technically, the level which may trigger intermediate downtrend is at Rs 150 level, which is far away from current market price and also doesn’t make any sense for long-term investors to maintain such a steep stop loss in a counter where there is uncertainty about upsides.
The best thing for investors can be to ride the rally with a stop below Rs 190 on a closing basis. If the rally extends this may extend its up move up to Rs 218 levels.
Avanti Feeds: Exit or book profits and re-enter after a breakout
For the last 15 days, this counter appears to be in a distribution mode and formed a rounding top formation. If correction kicks in then it may come back all the way towards Rs 1,125 level.
Hence, the best course of action for investors appears to be to exit at this level and re-enter the scrip once it registers a fresh breakout above Rs 1,460 levels on a closing basis.
Future Retail: Hold the stock
Despite its vertical up move from the lows of Rs115 in the last 7 months this counter appears to be providing fresh entry point as it corrected in last 8 trading sessions.
Investors can continue to hold this with a stop below Rs349 on closing basis where as fresh buyers should maintain a stop of Rs360 and continue for a target of Rs440 levels.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.