By Kunal Saraogi
All good things come to an end, they always do. Can bull markets be any different? Markets have rallied unidirectional through 2017 making traders and investors edgy about them at these levels.
This is understandable given that almost everyone has been expecting for the rally to come to an end any time now with a jolt. This is acrophobia or the irrational fear of heights.
This fear has kept a large section of the investing public particularly retail investors from buying aggressively into the markets. But, is the rally finally coming to an end? Are these fears justified?
If we dive deep into history and if charts point to any early signs of a meaningful reversal seen before the market tops of 2008, 2010 and more recent top of 2015, all these tops were presaged by clear and definitive divergences.
Key technical indicators on medium term charts that are usually a sure sign that markets are beginning to tire out and may reverse big time are also not giving any negative signals.
Glad to report, I see no such icebergs up ahead for the markets, just yet. Also, the rally no matter how steep it may seem to those sitting on the fences have not seen a blow off move yet.
Don't be surprised if the rally continues uninterrupted for a while longer.
The right thing to do would be to wade right in and buy quality stocks at seemingly high prices and not let the heights scare you too much, but keep watching your back and place a stop loss at 9,100 on the Nifty just in case the naysayers are right for a change.
Some stocks that you might want to look for short to medium term:
Avanti Feeds: Target Rs2000
This stock has seen a whopping 60% jump this month but looks like a winner even at the current levels acrophobia notwithstanding. So go ahead and buy this debt free company whose earnings are no chickenfeed. Buy with a medium-term target of 2000.
Monsanto: Target Rs3500
This global agree inputs giant is looking great on the charts so fight off vertigo and buy Monsanto for an accelerated rise to 3500 levels from the current 2792 levels.
Mirza International: Target Rs225
This little cared for leather and footwear business is breaking out afresh on charts after consolidating last few months buy with a medium-term target of 225.
Motilal Oswal Financial: Target Rs2000
This cracker of a stock has been on a tear for a few months now and has scaled a hurdle at 1000. It shows potential to become a Rs. 2000 stock in good time. So Buy Motilal which is a direct play on the rise of equity markets.
FAG Bearings: Target Rs6000
This is a quality stock that has seen some correction this month and is now at the perfect place to be bought from a medium-term perspective with a target price of 6000.
TVS Motors: Expect upside of 20-30%
TVS Motors trades above all averages and above all previous resistances in uncharted territory. Can be bought for a further 20-30% upside over the next 9-12 months.
Timken India: Target Rs1000
Timken India trades at an all-time high and is poised for speedy ascent if its long term charts are anything to go by. Buy with a target if 1000 for the next 9-12 months.
Tata Coffee: Target Rs175
This rather slow moving stock is finally breaking out after having done its time forming a major and rare consolidation pattern. Buy for a target of 175 over the next few months and you won't regret.
Disclosure: The author is CEO, Equityrush.com. 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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
