Jayant Manglik
Markets in the last week of the financial year posted decent gains amid volatility. Fear of global slowdown triggered a weak start but it gradually moved higher, taking note of favourable local cues.
The latest monsoon update by the IMD and hopes of rate cut by the RBI in upcoming meet boosted the sentiment. On the macroeconomic front, Nikkei India Manufacturing PMI data and Nikkei India Services PMI data will be announced on April 2 and April 4, respectively.
We believe that Nifty is set for a new record high and is likely to touch 11,800 in the near future. However, we may see some intermediate correction as it has gained nearly 8 percent last month.
Banking and financials may take a breather after the exceptional run. IT, metal and auto would help the benchmark to move higher from hereon. We advise continuing with “buy-on-dips” approach and focusing more on stock selection.
Here are three stocks that could give 4-12 percent return in next 1 month:
Zee Entertainment Enterprises: Sell April Futures| Target: Rs 415| Stop loss: Rs 446| Downside: 4.8 percent
ZEEL has been trading with a negative bias for the last ten months now. Though it had rebounded sharply for a while but it couldn’t surpass the hurdle of long term averages.
After spending nearly a month around that zone, it has formed a fresh shorting pivot. We suggest using any technical bounce in the given range of Rs 436-440 to short. It closed at Rs 432.15 on April 1, 2019.
Bharat Electronics: Buy| Target: Rs 108| Stop loss: Rs 90| Return: 12.5 percent
Bharat Electronics (BEL) has been consolidating within 70-100 range for the last seven months, after a sharp decline from its record high.
It is currently trading around the upper band of the range and is likely to see a breakout from the same in the near future. The chart pattern combined with the positioning of indicators is adding to the confirmation.
We suggest traders not to miss this opportunity and accumulate within the range of Rs 93-96. It closed at Rs 95.90 on April 1, 2019.
Hexaware Technologies: Buy| Target: Rs 380| Stop loss: Rs 346| Return: 6.1 percent
In line with other IT counters, Hexaware has recovered swiftly of late and is looking strong for a further surge. It has also surpassed the hurdle of multiple moving averages on the daily chart. In short, all indications are in the favour of fresh surge. We advise initiating fresh longs within Rs 354-358 range. It closed at Rs 358.45 on April 1.
The author is President - Retail Distribution, Religare Broking Ltd.
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