For the week, Nifty has strong support at 11,370-11,310 and resistance at 11,550-11,650
Finally, some profit booking was seen at higher levels and benchmark indices closed off from their respective highs on March 22. Nifty rallied 987 points from February 19 largely led by strong inflows from FIIs, who have poured more than Rs 26,000 crore in March and more than Rs 40,000 crore since February.
During March 2017, FIIs had poured Rs 26,473.17 crore, which was highest ever monthly investment by FIIs in India. This time FIIs have already invested Rs 26,232.6 crore during March as of now and it can become best ever month in history for FIIs investment.
We strongly believe that bullish momentum will continue in the market till May 23, so use every dip for buying.
For the week, Nifty has strong support at 11,370-11,310 and resistance at 11,550-11,650.
Here are the top stock trading ideas that can give good returns in mid to long term:
Maharashtra Seamless is a DP Jindal group company and largest producer of seamless pipes in India with a capacity of 550 KPTA. It is also one of the major producers of ERW pipes in India with a capacity of 220 KPTA. It also has 43 MW solar and wind energy portfolio. The company has reported strong results for Q3FY19. Its sales grew 40 percent to Rs 785.88 crore and EBITDA grew 158 percent Rs 157 crore, while it’s PAT zoomed 139 percent Rs 92.77 crore.
During 9MFY19, its PAT grew 156 percent to Rs 281.61 crore on 37 percent higher sales of Rs 2,096.14 crore. It has an order book of Rs 1,300 crore. L&T Mutual Fund holds 5.1 percent and IDFC Mutual Fund holds 1.4 percent stake in this company. Currently, the stock trades at a P/E of 9x. The stock has given a superb breakout on the weekly chart. We recommend buying in a staggered manner for medium to long term.
Voltamp Transformers has installed facility to manufacture Oil filled Power and Distribution Transformers up to 160MVA, 220kV Class, Resin Impregnated Dry type Transformers up to 5 MVA, 11KV Class (in technical collaboration with Mora, Germany) and Cast Resin Dry type Transformers up to 12.5 MVA, 33 KV Class (in technical collaboration with HTT, Germany).
The company’s production facilities are located at Makarpura and Savli in Vadodara, Gujarat with an aggregate installed capacity of 13,000 MVA per annum. The company has posted stable numbers for 9MFY19. During 9MFY19, its net profit stood to Rs 52.67 crore from Rs 53.38 crore YoY on 32 percent higher sales of Rs 570.04 crore.
EBITDA grew 11 percent to Rs 82.08 crore during 9MFY19. Currently, the stock trades at a P/E of 15.9x. With an equity base of just Rs 10.12 crore, the company has a huge reserve of around Rs.622 crore.
Mutual Funds hold 18.74 percent and FIIs hold 15.57 percent stake in this company. Promoters have also increased their stake, which is a positive sign. It is regularly dividend paying company and it has paid a healthy 150 percent dividend for FY18. We recommend buying in a staggered manner for medium to long term.
Bharat Electronics Limited designs, manufactures, supplies, and exports electronic equipment and systems for the defence and civilian markets. It has reported excellent results for Q3FY19. Sales grew 8.32 percent YoY to Rs 2656.38 crore while EBITDA grew 59 percent to Rs 785.74 crore and PAT increased 68 percent to Rs 507.63 crore as against Rs 302.84 crore.
It’s PAT increased 50 percent to Rs 1,258.67 crore in 9MFY19. It has an order book or above Rs 50,000 crore, which is above five times its FY18 revenues and provides strong revenue visibility.
At CMP, the stock is trading at P/E of just 12x. Being a Navratna Company, it is paying a huge dividend to shareholders. It has paid 200 percent dividend for FY18 and paid 100 percent interim dividend for FY19. Technically also stock is ready for a upmove. We recommend buying in a staggered manner for medium to long term.
The author is Founder of Equity99Disclaimer: 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.
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