The market moved higher last week on the back of buying interest from FIIs. The DIIs also turned net buyers after many weeks. Crude oil prices moved to a 5-month high with Brent futures crossing $72 per barrel.
We saw huge selling pressure in the market on the last trading day of the week. Due to the election, the non-stop rise in VIX is an alarming sign for traders.
Reliance Industries posted a bumper profit on strong Jio and retail performance. HDFC Bank also posted superb numbers on strong loan growth.
Earning season is going on and this week with F&O expiry many frontline companies like ACC, Tata Global, Bharti Infratel, Hexaware, ICICI Prudential Life, Indiabulls Housing Finance, M&M Financial, Tata Elxsi, UltraTech Cement, Biocon, Maruti Suzuki, MCX, Nestle, Axis Bank, Hero Motocorp, Yes Bank etc will declare their Q4 results.
For next week, Nifty has strong support at 11,650-11,580 and resistance at 11,825-11,900.
Here are three stocks that can be bought for medium-to-long term:
JSW Steel is the flagship company of the diversified $13 billion JSW Group and is one of the foremost integrated steel company in India with an installed capacity of 18 MTPA.
Company has posted strong numbers for 9MFY19. For 9MFY19, it posted 86.42 percent higher PAT of Rs 6,029 crore on 20.26 percent higher sales of Rs 62,389 crore and an EPS of Rs 25.30. Its EBITDA grew 56 percent to Rs 14,666 crore in 9MFY19. FPIs hold 18.58 percent while Mutual Funds hold 1.96 percent stake in this company.
At the CMP, the stock traded at a P/E of 8x. We recommend buying in a staggered manner for medium to long term.
Ipca has posted stellar performance in 9MFY19. During 9MFY19, its net profit zoomed 90 percent to Rs 345.44 crore from Rs 181.80 crore on YoY basis on 15 percent higher sales of Rs 2,839.35 crore. Its domestic formulation business grew 17 perrcent during 9MFY19 while APIs exports grew 25 percent during this period.
FPIs hold 14.87 percent while Mutual Funds hold 23.21 percent stake in this company. It paid 50 percent dividend for FY18.
At the CMP, the stock traded at a P/E of 30x. We recommend buying in a staggered manner for medium to long term.
Established in 1989, Vinati Organics Limited is a specialty chemical company. It has posted strong numbers for Q3FY19. Its net profit increased 122.79 percent to Rs 70.68 crore from Rs 31.73 crore YoY on 63.24 percent higher sales of Rs 303.05 crore. For 9MFY19, it posted 118 percent higher PAT of Rs 199.96 crore on 49 percent higher sales of Rs 811.53 crore and an EPS of Rs 38.91.
At the CMP, the stock traded at a P/E of 36x. FPIs hold 3.63 percent while Mutual Funds hold 6.34 percent stake in this company. We recommend buying in a staggered manner for medium to long term.
The author is Founder of Equity99.
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