Chartists betting on these 10 stocks to deliver gains in next three weeks

Top equity indices consolidated in thin trading and managed to eke out gains during the truncated week gone by. The BSE Sensex rose 146 points, or 0.42 per cent, for the week to 35,158, while NSE’s Nifty added 32.20 points, or 0.31 per cent, to end the week at 10,585.

Nifty’s next critical resistance appears to be placed around 10,710, whereas on the downside, the bears may pick up momentum on a strong close below 10,500, said Mazhar Mohammad, Chief Strategist-Technical Research & Trading Advisory, Chartviewindia.

“It is looking like a directionless market, and for the time being, traders should focus on stock-specific opportunities on both directions until Nifty registers a The stock has traded in a rectangle formation for all of 2018 so far. A couple of signals have emerged, which point towards likely upward move in prices. The RS Line against Nifty Infra index has remained in an upward rising channel and has broken out of that as well. Against the broader CNX500 index too, the RS Line has broken out of a formation giving a strong move. Both of the RS Lines presently remain above its 50-week moving average which can be seen as a confirmation of the present set up. The PPO (Price Oscillator) has turned positive. The weekly RSI is also seen breaking out of a pattern while marking a bullish divergence against the price. Full stochastic has just bounced back from the oversold area. Resumption of an uptrend on the counter cannot be ruled out over coming days.

After marking a high around Rs 102, this stock has remained in a corrective decline. Though it slipped below the 50-week moving average (WMA), it is seen attempting to form a base in the Rs 67-72 area. The RS Line, when compared against the broader CNX500, is moving up again and is also seen crossing its 50-WMA, which can be seen as a confirmation, PPO has flattened its trajectory and is seen moving towards getting positive. The weekly MACD, too, is likely to report positive crossover in the coming days. A fresh buy signal is seen on weekly stochastic. Some upward revision in price in this stock cannot over the coming days be ruled out.

This counter appears to have registered a sustainable breakout above its 100-Day Moving Average which acted as a resistance in the past by thwarting the pullback rallies. With consecutive positive closes, it looks ripe for a decent pullback with targets placed around Rs 210. Hence, positional traders are advised to buy into this counter for a target of Rs 210 with a stop loss below Rs 174 on a closing basis.

For quite some time 100-day moving average acted as a supply point to this scrip which this counter appears to have successfully absorbed. With new swing highs in this pullback phase and a decent base around Rs 360 level, this counter appears to be gaining momentum. In such a scenario, we expect it to reach its target of Rs 447 level over time. Hence, positional traders should buy into this with a stop below Rs 360 on a closing basis.

This counter is looking ripe for a breakout as volumes are picking up as it is moving towards its higher of the consolidation zone Rs 185-192 levels. Hence, on such a breakout it can swiftly move towards its initial target of Rs 203 level. In anticipation of a breakout, positional traders shall buy at current prices and add further if available around Rs 187 level with a stop loss below Rs 184 on a closing basis.

This stock has taken off its weekly trendline resistance with a buy crossover in its momentum indicator MACD. The stock has started it Wave 5 up and it is expected to achieve minimum equality target of Rs 855 on the upside. On the lower side, Rs 797 is an immediate support, hence with that as a stop loss we recommend buying this stock.

This stock has provided a breakout from a falling wedge pattern and with that, it seems to have completed five waves declining structure. The momentum, indicator MACD has provided a buy crossover on the daily chart with a positive divergence whereas on the weekly chart the stock has provided a positive close, hence a 38.2% retracement of the entire fall is expected, so we recommend buying this stock.

This stock has formed multi bottoms on the daily charts. It has also closed in the positive territory in the last week after six consecutive positive closes. A minimum of 38.2% retracement of the entire fall is expected which comes to Rs 347.70. On the lower side Rs 308 is a crucial support hence that should be the stop loss on a closing basis. The momentum indicator MACD has also provided a buy crossover on the daily charts whereas on the hourly charts it has provided a buy crossover with a positive divergence thus supporting the short-term uptrend.

On the hourly chart, it seems that the stock is on a verge to give a breakout of its Inverse Head and Shoulder formation, which is a bullish reversal pattern and indicates an upside movement in the counter. Daily momentum indicator RSI has formed a positive divergence which points out for a positive breath in the stock.

This stock has been trading above its 21-day moving average, which is placed at Rs 496 level, indicating a positive trend in the stock. On a smaller time frame, the stock has given a breakout of its range-bound movement with above average volume which indicates a robust upside movement.

breakout on either side,” he said.

As crude cools, impact stocks see surge in traders’ interest

fall in oil prices has reduced fear that oil marketing companies may be asked to share fuel subsidy burden. In October, the government had cut excise duty on petrol and diesel by Rs 1.5 per litre and asked OMCs to subsidise the two fuels by Rs 1 per litre. Analysts see more upside in BPCLNSE 4.10 %. “BPCL may see some more up-move. It has support near Rs 282 and upside till Rs 309. If it goes above Rs 309, it can go up to Rs 330,” said Chandan Taparia, derivative analyst, Motilal Oswal.

The near-term prospects for the companies which have their fortunes tied to crude oil prices look bright.
Oil marketing, paint, and aviation sector companies are slowly seeing the tide turning in their favour as crude oil prices — a key factor for their businesses — have fallen 20 per cent from their recent highs. Derivatives data show traders are covering short positions and adding bullish bets in these stocks, while in the cash market these stocks have surged as much as 13 per cent so far in the November derivatives series. The near-term prospects for the companies which have their fortunes tied to crude oil prices look bright as many of them had fallen sharply in the recent market correction, analysts said. ET takes a look at five such oil price movement-linked stocks which derivative analysts are bullish on and details their outlook in the near term:

Why Jet Airways stock rose in trade today after airline reported Rs 1,261-crore loss in Q2

Jet Airways stock rises after airline reports Rs 1,261 crore loss in Q2

The Jet Airways stock rose in early trade today after the airline reported Rs 1,261-crore loss for the quarter ended September. However, net loss narrowed from Rs 1,323 crore loss reported in the first quarter of the current fiscal. Brent crude price falling back below $70 per barrel to $69.12 per barrel also supported sentiment for the stock.

The stock rose up to 3.34% to 250.15 compared to the previous close of 242.05 on the BSE. It opened at a loss of 5.80% at 228 on the BSE.

The small cap stock has lost 65.17% during the last one year and fallen 70.32% since the beginning of this year. However, the stock has delivered 21.88% returns during the last one month.  The stock is trading above its 50 day moving average of 210.87 but lower than its 200 day moving average of 321.72 level.

The stock recorded volume of 3,81,181 shares traded on the BSE compared to the average three month volume of  7,27,410 and average 10 day volume of 8,44,400 .

The stock hit a 52 week high of 883.65 on January 5, 2018 and 52 week low of 163 on October 1, 2018.

Higher fuel costs that soared 59 percent, and a steep rupee fall that led to a sevenfold spike in forex losses resulted in Rs 1,261 crore net loss for the airline in the second quarter. It had posted a net profit of Rs 71 crore in the same period last fiscal.

The cash-strapped airline, which is reportedly looking for investors tide over the liquidity crisis, said its fuel bill jumped 58.6 percent to Rs 2,419.76 crore during the quarter. In the year-ago period, it had spent Rs 1,525.66 crore in fuel cost.

Another crippling factor was the forex loss, which jumped more than six-times to Rs 416.69 crore from Rs 72.99 crore in the year-ago period.

However, the airline reported a 9.50% rise in net sales to Rs 6,161.15 crore in Q2 compared to Rs 5,626.61 crore sales in the corresponding quarter of the previous fiscal. Net sales in Q1 of the current fiscal stood at Rs 6,010. 46 crore.

The management sounded confident of surviving the crisis, underlining the massive cost-saving plans underway.

“With our clearly defined focus on profitability, we are in the midst of turning the ship around and are closely engaged with all our partners to navigate the challenges posed by the current industry environment,” chief executive Vinay Dube said.

Despite these forex and fuel bill losses in Q2, the airline registered a 7.3 percent growth in capacity or available seat kilometres (ASKMs) during the quarter while the revenue passenger kilometers (RPKMs) or passenger volume grew 10.5 percent, flying 7.45 million, which was 2.2 percent more than the comparable numbers in the year-ago period, the airline said.

Meanwhile, the airline has decided to cut flights on less profitable routes and add capacity to more lucrative markets, as part of its effort to lower costs and boost revenues as it struggles to stay aloft.

“The airline has embarked on a comprehensive review … The measures will include rationalisation of operations on select, uneconomic routes,” Jet said in a statement, adding that it will redeploy planes to more productive domestic and international sectors.


Coal India stock fails to impress, but government made a cool Rs 74,000 crore

The BSE Sensex has climbed 231 per cent during the same period.
  • Centre to offer 99 lakh Coal India shares to staff at 5% discount
  • Institutional buyers offer bids worth Rs 4,300 crore for Coal India shares
  • Coal India OFS fully subscribed
Coal India, which made a smashing market debut eight years ago, has failed to live up to investor expectations till now.

The stock is down nearly 7 per cent at Rs 268.20 against its listing price of Rs 287.75. However, it’s up 9 per cent from the issue price of Rs 245.

Retail investors, who got around 5 per cent discount on the IPO, have gained around 15 per cent since the listing of the coal major.

The BSE Sensex has climbed 231 per cent during the same period.

But the underperformance of Coal IndiaNSE 0.63 % on Dalal Street has not stopped it from announcing a hefty dividend year after year since listing. The central government, the biggest shareholder in the PSU firm, has made Rs 74,267 crore by way of dividend during 2010-11 to 2017-18. Overall, the company announced a dividend of Rs 88,916.80 crore during the past eight years, according to data available with Ace Equity.

Total number of shares at the end of each financial year is considered for the calculation of dividend.

Coal India handed out a minimum of 39 per cent of dividend over its face value of Rs 10 in FY11 and a maximum of 290 per cent in FY14. It did not announce any stock split or bonus during these years.

The government held 78.32 per cent stake, or 4,86,16,80,228 shares, in the company as of September 2018.

The Centre on Friday announced an offer for sale of 99 lakh shares of Coal India reserved for its employees at Rs 252.7 per share. It is expected to fetch the government Rs 250 crore.

The current offer for employees is part of the divestment tranche that concluded last week in which the Centre divested 3.19 per cent of its stake at a final price of Rs 266 per share to financial institutions and retail investors.

The Centre is likely to raise Rs 5,267 crore through sale of 19.8 crore equity shares of the company from the recently concluded offer for sale. After last week’s sale, the government will continue to hold a majority stake of 75.13 per cent in the coal behemoth.

The state-owned firm is slated to announce its financial results for the quarter to September on Monday.

For 2018-19, the company posted 24 per cent year-on-year fall in consolidated net profit at Rs 7,019 crore against Rs 7,281.50 crore last year. It posted a net profit of Rs 14,267.90 crore, Rs 13726.60 crore and Rs 15111.60 crore in FY16, FY15 and FY14, respectively.

Last year, Coal India announced 165 per cent dividend on the face value. The figure was 199 per cent in FY17.

A report issued by CIMB Investment Bank Berhad, or CIMB, on November 2 assigned ‘Reduce’ rating to Coal India with a target price of Rs 245. However, it showed that the consensus has 26 ‘Buy’, 5 ‘Hold’ and 1 ‘Sell’ on Coal India.