Some Indian Mid Cap stocks to consider

[jaideep]

A very small midcap consideration:

Sun Beam Infotech

The company has made a grand profit ( results in ET 21st Jun)
The target price is 17+ in a time span of a quarter.

It is Sensex independent stock.

Buy preferrably below 6.4

Steadily crashing down...........closing @ 4.30 today. What's with this scrip?? Looks a very much hyped up scrip to me.

 

[supratik]

Hi Jaideep,

Honestly I was expecting a correction at 7.80 itself. However the panic I see in the script is unreasonable. If I can rightly justify the reason for this is what follows

People entering a penny counter say at Rs 3, the stock goes upto 6 and he sells off without considering the future prostects. A traders mentality looks at a stock like this in an alternate way- a stock bought at 300, it has reached 600, doubled so lets quit(or book profit).

Also considering other factors like The sensex has crossed 7k mark, but you can very well say it was none others but Reliance. Few other counters like Bharat Forge, Bajaj Auto and L&T have moved up smartly is also worth mentioning.
Analysing a bit further into the mid-caps, we find that this sector has turned out to be completely flat in the past couple of weeks, counters like VSNL posting a profit rise of 400% have base points of 224 and an above limit of 237.

Coming back to small caps, a traders mentality right now is "BUY A SHARE WITH STRONG FUNDAMENTALS". This is why at a 7k benchmark the milestone for small caps is being seen nowhere. That is why even counters like Sun Beam are trading far below their expected price.
The counter has posted a net rise of 185%, ok thats possible in a penny couter.
But the selling pressure is what I see as a panic.
Let us hold this counter in controlled quantity.

I will not suggest to start averaging currently because further downside is possible if this is the mentality of the investors.

I have myself bought this script at 5.70.

I have always believed that the share market is not a place to gamble, it is a place where you know the company and you have tracked the counter for long before you invest.

Sun Beam is one such which has growing fundamentals. I would suggest you to look at the company stats yourself before you invest or take any action on your the stock.

I would suggest to enter the stock on a strong closing above a 5.8-6.0 level and watch out for the next target of 7. Look carefully that the stock has always visited the 6.7 and 6.9 mark recently but failed to cross it, if it crosses that it should go up to the suggested level.

Any further suggestions are always welcome.

 

[jaideep]

Hi Jaideep,

Honestly I was expecting a correction at 7.80 itself. However the the reason for this is ..............................Any further suggestions are always welcome.

Thanks for your explanation supratik. Just so you know, I too am holding a few @ 6.18 & targetting 7+. Let's wait & watch. Good luck to us!!

 

[dvs_solanki]

From Mid Cap space following scripts shows strengh.
Tata Tea
TV 18
Glenmark
Sun Pharma
IVRCL

 

[supratik]

Hi Jaideep,

Best of luck to us, what else can I say at this juncture.

I am holding Samtel Color at 118 level, know that it is quite a high price, but could you suggest me what to do? Should I average it out or keep a stoploss and exit.

Also dvs_solanki
I saw the scripts you mentioned and in the pharma counter I would put a buy on Elder Pharma and Pfizer for a couple of months. Ofcourse no doubt Glenmark and Sun Pharma are good.
Again buy the stocks on dips in the sensex, the play for now would be "enter the bear and crack the bull"

Adding one more script Gammon India again. Buy in small quantity at this level and exit around 300. The script has again shown a rise in trading volumes today. I will not recommend any stoploss for the counter as for now but if it comes to 235-240 level(hopefully it wont) you can buy in bulk.
It has received some good projects and will rally in the coming few weeks.

 

[supratik]

VSNL at last breaks out.

We shall set our target for VSNL for 270 for a short term.

But for long term investors I would suggest to hold on for a company like this will have "immense prospects".

Long term targets would be 400-450 in a year or so.

 

[creameeee]

for getting a techno funda view on some great stocks visist my thread "mark my words "and please participate in the poll

 

[TATrader]

My suggesstion for you would be to include a link to the topic of your thread so it will be easier for all to find it.

 

[joy_mitali]

Hi Supratik,
Even though I m sure,that u have been long in the market---ur modesty is really praiseworthy----though probably being a much junior to u----I m not sure---whether I have the right to compliment u---Ur analysis of SunBeam Infotech is really mindblowing---
I m saying all this in the context--that ----some of the newcomers joining here(mostly not---but a selected few)---r too arrogant in their way of presentatation---not that aggresiveness is bad-----but it is not the perspective of an open Forum----
Here we r not here to do expand our business or make a forceful emphasis to notice a particular thread----Not that I envy them----but the decorrum of such a beautiful forum gets disturbed----Hope we all understand this--
Regards,
joy_mitali

 

[creameeee]

I Agree With U Mr Joy But I Think We Juniors Also Deserve Some Respect .i Think Seniors Like U Should Take The Initiative To Visit Our Threads And Voice Yor Opinion About Our Analysis .that Will Encourage Us. Ihope U Understand