Keep some cash in hand as analysts raise alarm; 10 stocks which could give up to 20% return
The Indian market has seen a tremendous run-up so far in the year 2017, fuelled by strong liquidity from both global as well as domestic investors which have made valuations a tad bit expensive at current levels.
The structural story for India still remains intact, but could see some bit of downside after a sharp run-up in prices seen in the last 6 months. The Nifty rose nearly 18 percent from its December low of 7,900.
Jyotivardhan Jaipuria, Founder & MD of Veda Investment Managers said he is waiting with cash to deploy into the market on days of panic.
The Indian equity market is likely to consolidate in the near-term because a lot of the positives are already factored in, he said while talking about market fundamentals in an interview to CNBC-TV18 last week.
Although there are no immediate triggers which could possibly lead to a breakdown on charts apart from hawkish US Federal Reserve and implementation of goods and services tax (GST) which could lead to near-term disruptions.
The market valuations are significantly above long-term average currently with almost 30 percent of the stocks trading at over 40 PE, the highest ever, suggest experts.bonaz capital
“The trailing PE for the BSE500 Index (or BSE200 for that matter) at ~26x the highest ever. In December 2007, the median PE for the market was 21x and 24 percent of the stocks were trading over 40x trailing PE,” Prakarsh Gagdani, CEO, 5Paisa.com told Moneycontrol.com.
“Therefore a large part of the market is indeed expensive even by historical standards. Does high valuation necessarily imply a crash? Probably not,” he said
We have collated a list of ten stocks from different brokerages which could give up to 20 percent return in short term
On Thursday, this stock confirmed yet another breakout from the trading range with rising volumes. However, due to lack of follow-up buying, the stock prices corrected a bit and have managed to retest the breakout point.
However, this move can be construed as a pullback move and soon we expect the buying interest to come back in this counter. Angel Broking recommends this as a good buying opportunity for a target of Rs.460 in coming 14 – 21 sessions. One should now keep a stop loss at Rs.405.
This stock has undergone a massive correction over the past 14 months and now it seems as if the stock is in process of forming a strong base around 460 – 480. On Friday, the stock prices finally managed to traverse the ‘200-day SMA’ (489) on a closing basis, which has been acting as a stiff hurdle since last 5 – 6 trading sessions.
In addition, the volume activity has picked up substantially in the recent bounce back. Thus, Angel Broking expects a continuation of this bounce back rally towards Rs.521 in coming 1 – 2 weeks. One should now keep a stop loss at Rs 479.