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Last Updated : Dec 03, 2019 10:29 AM IST | Source: Moneycontrol.com

No signs of revival for BHEL; short December Fut for target of Rs 48

BHEL has been trading in a downtrend for the last several years and still there’s no sign of reversal.

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Ajit Mishra

The Indian equity indices continued to consolidate on December 3 and ended on a flat note after a volatile session amidst mixed global cues. The Nifty50 index closed at 12,048, down 8 points.

Both the broader market indices - BSE Midcap and BSE Smallcap underperformed the benchmark and declined 0.8 percent and 0.4 percent respectively.

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The sectoral indices exhibited a mixed trend as Telecom, Metal and Energy were the biggest gainers, while Auto, IT and Healthcare were the biggest losers.

The weak Q2 GDP data and subdued auto sales numbers are likely to impact the investor sentiments in the short term. All eyes will now be on RBI monetary policy for economic revival measures going forward.

On the global front, investors are eagerly awaiting a positive outcome of the US-China trade negotiations which could strengthen the rally in the global markets. In addition, currency and crude price movement will continue to impact investor sentiments.

Indications are pointing towards some profit-taking initially but the bias would remain on the positive side.

We are eyeing 12,300 in Nifty and in case of any decline 11,800-11,900 zone, it would act as a cushion. Amid all, we expect broader markets to do well thus traders should focus more on the stock selection.

Here is a list of top three stocks which could give 3-7 percent return in the next 3-4 weeks:

Asian Paints Ltd: Buy | Target: Rs 1,800 | Stop-Loss: Rs 1,700 | Upside 3.5 percent

Asian Paints is witnessing a rebound after spending nearly a week around the support area of 100-Days EMA on the daily chart.

It was a marginal profit taking phase and the chart pattern now indicates a resumption of the up move. We thus suggest initiating fresh longs in the given range of 1725-1735. It closed at 1738.25 on Dec 2, 2019.

Manappuram Finance Ltd: Buy | Target: Rs 168 | Stop-Loss: Rs 150 | Upside 7 percent

Manappuram Finance has retraced marginally from its record high in the last one month, after the sharp surge from roughly Rs 107 to over Rs 170 zone.

We believe that it is a healthy correction, offering fresh buying opportunities to those who had missed the chance earlier. We advise creating longs in the mentioned range of 154-156. It closed at 156.95 on Dec 2, 2019.

Bharat Heavy Electricals Ltd: Sell Dec Futures | Target: Rs 48 | Stop-Loss: Rs 55 | Downside 6 percent

BHEL has been trading in a downtrend for the last several years and still there’s no sign of reversal. In line with the past instances of counter moves, it had rebounded sharply in October but couldn’t surpass the major hurdle of 200-Days EMA on the daily chart and gradually inching lower since then.

It has witnessed a fresh breakdown on Monday i.e. December 2 and is likely to see fresh decline ahead. We suggest creating fresh shorts within 52.50-53.50. It closed at 51.40 on Dec 2, 2019.

(The author is VP - Research, Religare Broking Ltd)

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are his 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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First Published on Dec 3, 2019 10:28 am
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