5 Stocks for next week (11th Sep- 15th Sep)

5 Stocks for next week (11th Sep- 15th Sep)
by Gautam Upadhyaya 09/08/2017

Radico Khaitan  - Buy


Stock

Radico Khaitan

Recommendation

The stock has given a Flag Pattern breakout on the daily chart. Volumes have backed the price outburst, which affirms our positive outlook on the stock. The stock has also managed to give a close at its 52 week high.

Buy/Sell

Range

Target

Stop Loss

Buy (Cash)

174-176

192

167

BSE Code

NSE Code

Market Cap(Rs in Cr)

52-week High /low

200 M.A

532497 

RADICO

2352

178-84

130

2) Arvind Ltd- Buy


Stock

 Arvind Ltd

Recommendation

The stock has given a breakout from a Rectangle Formation after four months of consolidation on the daily chart. The  breakout is backed by a surge in volumes. The stock has also shown good strength on the daily MACD Histogram, which further confirms our bullish view on the stock.

Buy/Sell

Range

Target

Stop Loss

Buy(Cash)

404-407

440

384

BSE Code

NSE Code

Market Cap(Rs in Cr)

52-week High /low

200 M.A

500101

  ARVIND 

10516

426-286

370

 

3) JSW Energy- Buy


Stock

JSW Energy Ltd

Recommendation

 The stock has given a breakout from its sideways consolidation on the daily chart. The price outburst is backed by a surge in volumes which accentuates our positive stance on the stock.  

Buy/Sell

Range

Target

Stop Loss

Buy (Cash)

71.5-72.2

79

67.4

BSE Code

NSE Code

Market Cap(Rs in Cr)

52-week High /low

200 M.A

533148

JSWENERGY

11800

85.85/53.5

65.9

 

4) Dish TV- Sell

Stock

Dish TV

Recommendation

The stock is in the Lower Top Lower Bottom chart structure. The stock has faced Resistance on every bounce. A negative crossover signal on daily MADC further confirms our negative view on the stock.

Buy/Sell

Range

Target

Stop Loss

Sell (Sep Futures )

75.6-76

68

79.8

BSE Code

NSE Code

Market Cap(Rs in Cr)

52-week High /low

200 M.A

532839

DISHTV

8069

110.9-69.55

86.65

5) Bank of Baroda – Sell

Stock

Bank of Baroda

Recommendation

The stock has given a breakdown from a Rising Channel formation on the weekly chart and is currently trading at its 52 week low. The stock is also currently trading below its 200 period EMA.

Buy/Sell

Range

Target

Stop Loss

Sell(Sep Futures)

137.4-138

130

143.9

BSE Code

NSE Code

Market Cap(Rs in Cr)

52-week High /low

200 M.A

532134

BANKBARODA

31606

135.8-202.4

162.3

 

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How To Use SIP Based Investment To Buy Home?

How To Use SIP Based Investment To Buy Home?
by Priyanka Sharma 14/08/2017

Buying your own home might be a long time desire for you. You have everything planned right from the location, the type of property, to your interiors and furniture. You even make a proper budget regarding your spending so as to be eligible for a better home loan. But, is a home loan the only option for buying an expensive property?

Systematic Investment Plan is a great option when it comes to contributing dedicatedly for your future. Here, you invest a fixed amount for a fixed period of time and it helps you meet your goals in an organized manner; just like Equated Monthly Installment (EMI), you pay for your home loan. Yes, you have read it right. Do you want to know the reason behind it? Read this:

Why is SIP based investment a valid option to buy a home?

1) Timing the market is not necessary
SIP is a systematic way of investing in the market and therefore you do not need to time the market for it. Once you make a goal of owning a house and you have a plan to reach that goal, don’t wait for the right time to invest. SIP’s ensure that the time you invest is the right time for you. 

2) Investment convenience
SIP allows the investor to invest in mutual fund without any hassle or intervention required from their part. The investor only needs to give standing instruction to their bank to transfer a stipulated amount on a fixed day every month towards SIP. This reduces the trouble of the investor to remember and deposit it manually. It also ensures that you do not delay in payments.

3) Rupee cost averaging reduces risk
As mentioned earlier, the time you invest is going to be the right time for you. You can tackle the market fluctuation and gain maximum profit on investments with a long term investing approach of Rupee Cost Averaging. It ensures that when the rates are low, you get more NAV (Net Asset Value) and when the price is high, you get a lesser number of shares. Not only is this automated, it also saves you from the risk of buying more when prices are high. Investing a monthly fixed income maintains the average cost of investment at a lower level thus, giving you profit in a long term.

4) Power of compounding increases chances of meeting long-term plans
‘The earlier, the better’ is the mantra to be successful in investments. Compounding is a key factor for investments and returns. The power of compounding comes into play when your returns are reinvested and you earn interest on your interest earned too. The profit is much higher when you do this for a longer period of time. 

5) Offers liquidity and is flexible in terms of investment
SIP offers you tremendous amount of flexibility when you invest in it. You can choose the amount which can be as low as Rs. 500 to the tenure of your investment. You can also choose the frequency of your investment as being daily, weekly, every fortnight or every month depending on your convenience. You can stop and close your SIP at any time as well and hence, it provides you with a fair amount of liquidity too. 

In a nutshell
SIP’s can help you accumulate money for the down payment or for buying your home with full payment if you dedicatedly plan and invest in it for a longer term. If you invest the amount in an SIP which you would otherwise invest in your EMI, the profit through the effect of compounding is much more, than in the long run. 

untitled

Hence, from a financial point of view, it is advisable to invest in a long-term SIP of around 15 years rather than spending the same amount on EMIs and not getting anything out of it.

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5 Stocks for next week (21st-25th Aug)

5 Stocks for next week (21st-25th Aug)
by Gautam Upadhyaya 18/08/2017
Untitled Document

    Petronet Lng  - Buy

Stock

Petronet Lng

Recommendation

Petronet  Lng has managed to give a close above its resistance levels on the weekly chart. The stock is also in a higher top higher bottom chart structure.

Buy/Sell

Range

Target

Stop Loss

Buy (Cash)

226-229

252

213

BSE Code

NSE Code

Market Cap(Rs in Cr)

52-week High /low

200 M.A

532522 

PETRONET

34,380

236-158

200

Eicher Motors- Buy


Stock

Eicher Motors

Recommendation

Eicher Motors is seeing a strong uptrend, the stock has taken support along its weekly 10-EMA. The weekly MACD Histogram is also indicating good strength.

Buy/Sell

Range

Target

Stop Loss

Buy(Cash)

31400-31550

33600

29760

BSE Code

NSE Code

Market Cap(Rs in Cr)

52-week High /low

200 M.A

505200

EICHERMOT

85,817

32464/19570

26205

HUL - Buy


Stock

HUL

Recommendation

HUL has given a closing at its all time high; the stock has also formed a bullish engulfing candlestick pattern. We expect this uptrend to continue and recommend a buy in the stock.

Buy/Sell

Range

Target

Stop Loss

Buy (Cash)

1195-1204

1270

1145

BSE Code

NSE Code

Market Cap(Rs in Cr)

52-week High /low

200 M.A

500696

HINDUNILVR

259,930

1209/783

998

Piramal Enterprises – Sell


Stock

Piramal Enterprises

Recommendation

Piramal has shown weakens in the last few trading sessions giving a close below its short term EMA. In addition, the stock has shown weakness on the weekly MACD Histogram.

Buy/Sell

Range

Target

Stop Loss

Sell Aug Futures

2704-2714

2500

2852

BSE Code

NSE Code

Market Cap(Rs in Cr)

52-week High /low

200 M.A

 500302 

PEL

46,384

3008/1366

2333

Fortis Healthcare - Sell


Stock

Fortis  Healthcare

Recommendation

Fortis Healthcare has given a breakdown below its support levels on the daily chart. Furthermore, the stock has shown weakness on weekly MACD Histogram.

Buy/Sell

Range

Target

Stop Loss

Sell(Aug Futures)

145.5-147.5

134

154.6

BSE Code

NSE Code

Market Cap(Rs in Cr)

52-week High /low

200 M.A

532843

FORTIS

7,521

230/142

178

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5 High-Dividend yielding stocks that you should know

5 High-Dividend yielding stocks that you should know
by Nikita Bhoota 22/08/2017

Generally, investors in India avoid taking risk while investing. They look for investment instruments which offer consistent returns and are less volatile. However, one may prefer investing in high dividend yielding stocks which give stable income vs. high value/expensive stocks that involve more risk. Before discussing high-dividend yielding stocks, let us understand what exactly is the dividend yield?

Dividend yield is the annual return which the stock pays in the form of dividends. Dividend yield is calculated by dividing the dividend per share by current market price. High dividend yield could be a result of either fall in the stock price or payment of higher dividend. Therefore, one should also consider the fundamentals of the company while selecting high dividend yielding stocks.

Below-mentioned are some of the high-dividend yielding stocks.

Stock

Dividend Yield (%) 2017

3 Years Average Dividend Yield (%)

Coal India Ltd.

8.1

9.2

Hindustan Petroleum Corporation Ltd.

6.1

6.0

Oil India Ltd.

5.4

6.3

Oil & Natural Gas Corporation Ltd.

4.8

5.4

Indiabulls Housing Finance Ltd.

3.4

3.3

Source: Ace Equity

Coal India (CIL)

CIL is the largest coal producer in the world and controls 80% of the Indian coal market. Its product portfolio largely consists of thermal coal - 97% while the rest is cooking coal. The company is debt free and has net cash of ~ Rs 29,000 cr (FY17) in its books. The company has a mature business and may not require major capex going forward, which will help it maintain healthy cash flows. The average dividend yield for the past 3 years is 9.2%, while it was 8.1% in FY17.

Hindustan Petroleum Corporation Ltd (HPCL)

HPCL is a leading oil and gas refining and marketing company in India with a market share of 21.44% as on FY17. It operates two major refineries producing petroleum fuels with a capacity of 7.5 MMTPA (Mumbai) and 8.3 MMTPA (Visakhapatnam). The company has consistently maintained its average dividend payout ratio in the range of 30% in the past 5 years and is expected to improve further on account of government push on PSU’s to double their dividend payout ratio. Government holds 51% stake in HPCL. The company’s average dividend yield stood at 6% for the past 3 years.

Oil India Ltd

Oil India is the second largest oil and gas exploration and production companies in India. The company has healthy debt to equity ratio of 0.5x (FY17) and average dividend payout ratio of 47% in the past 5 years. However, the company has shown poor financial performance historically. Therefore, in order to maintain its ROE and reward the shareholders, we expect the company to maintain its dividend yield in the future. The average dividend yield for the past 3 years stood at 6.3%.

Indiabulls Housing Finance Ltd (IHFL)

IHFL has transformed from a diversified lender to a focused mortgage player. Its outstanding loans stood at ~Rs 81,422 cr as of FY17. Loan book mix was ~79% mortgage loans and ~21% corporate financing. GNPA & NNPA presently stands healthy at ~0.85% and ~0.36% respectively. IHFL’s PAT has tripled to Rs 2,900 cr in FY17 in the past five years. We believe that strong profitability growth and adequate capital will help the company to maintain its average dividend payout ratio of ~65% in the past 3 years. The average dividend yield for the past 3 years was 3.3%.

Oil & Natural Gas Corporation Ltd (ONGC)

ONGC is the largest oil and gas exploration and production company in India. It accounts for ~70% of India’s oil and gas production. ONGC has maintained dividend payout ratio of more than ~40% in the past 5 years and has reached to 51% in the FY17. We expect the company to maintain a higher dividend payout ratio given its strong growth prospects with the commencement of new fields and efforts for redevelopment in existing fields. The average dividend yield for the past 3 years was 5.4%.

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Robo-Advisors V/s Direct - Advisors - Which is the better one?

Robo-Advisors V/s Direct - Advisors - Which is the better one?
by Nutan Gupta 23/08/2017

This is the age of machines. Machines have been making life easier for humans in all walks of life. Even in the finance sector the entry of Robo-advisors spells the beginning of a new era. However, the term Robo-advisors doesn’t paint a clear picture. A robo-advisor simply runs algorithms to determine the perfect investment for you.

However, finance and investment are very personalized fields with a lot of decisions made on the basis of trust and familiarity. This kind of a bond exists between investors and their Direct Investment advisors.

The tussle between Robo-advisors and Direct Investment advisors will determine the methods of investment in the future. Hence, we decided to pit these two together and compare their pros and cons to get a better understanding of the correct option:

Factor 1# Price
Robo-advisors
have a fairly straightforward and transparent pricing structures which is clearly explained on their websites. It might not have a minimum amount you must invest to avail their services. Robo-advisers charge 0.25% as average fee along with around 0.15% additional charge.

Direct Investment advisors, on the other hand, sometimes require a minimum portfolio value to take up your account. They can be unclear about how exactly they're charging you. Direct Investment advisors traditionally charge a comparatively higher average fee of 1.31%.  

Factor 2# Convenience
Robo-advisors
are a viable choice for people who simply aren't going to take the time to learn about managing their money. It's a good fit if you have a personality where you just don't want to deal with it. You set it and forget it.

Direct Investment advisors can be contacted with modes of modern technology like email, Skype on your cell phone itself. It's not like you have to trek to your investment advisor's office anymore. It's more that you can check in with them at regular intervals.

Factor 3# Accountability
Robo-advisors
take only the information you give it and formulates a plan based on numbers. In this process your financial future is rarely focused on just the numbers. The way a robo-advisor does it, setting and forgetting your investments may not be the most effective way to achieve your goals.

Direct Investment advisor's strength lies in their ability to translate your dreams of an oceanfront beach house into a dollar figure, and to create a plan to get there.

Factor 4# Effectiveness
Robo-advisors
tend to be heavily invested in conservative products like Exchange Traded Fund (ETF) because they suit a wider range of people. ETFs are not known to be risky but they aren't known for their staggering returns either. This means that is more of a less risk as well as less return approach.

Direct Investment advisors are in touch with you and you can give them the perspective and context to adjust investments to your needs. However, they certainly aren't guaranteed to outperform their robotic friends. Go to a financial advisor if you are investing a larger amount don’t use a robo-advisor.

Conclusion
To sum up this debate there are positives in both sides. The clients of the Direct Investment advisors and Robo-advisors are completely different and have different needs.

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5 Stocks for next week (28th Aug-1st Sep)

5 Stocks for next week (28th Aug-1st Sep)
by Gautam Upadhyaya 24/08/2017
Untitled Document

Aurobindo Pharma  - Buy

Stock

Aurobindo Pharma Ltd

Recommendation

The stock has given a breakout from a symmetrical triangle formation on the daily chart; the breakout has been backed by a surge in volumes. Positive crossover on the MACD further accentuates our bullish view on the stock.

Buy/Sell

Range

Target

Stop Loss

Buy (Cash)

728-732

777

695

BSE Code

NSE Code

Market Cap(Rs in Cr)

52-week High /low

200 M.A

524804

AUROPHARMA

42,921

895/504

687

Bajaj Finserv- Buy

Stock

 Bajaj Finserv

Recommendation

The stock has given a breakout from its sideways consolidation of the past three weeks; the stock is currently trading at its all time high and is in a higher top higher bottom chart structure. We expect the uptrend to continue.

Buy/Sell

Range

Target

Stop Loss

Buy(Cash)

5490-5510

5900

5210

BSE Code

NSE Code

Market Cap(Rs in Cr)

52-week High /low

200 M.A

532978 

BAJAJFINSV 

                87,582

                5523-2515

4019

Bharat Electronics- Buy

Stock

Bharat Electronics

Recommendation

The stock has managed to give a flag pattern breakout on the daily chart. Volumes have also supported the price outburst, which affirms our positive stance on the stock.

Buy/Sell

Range

Target

Stop Loss

Buy (Cash)

186-188

198

180

BSE Code

NSE Code

Market Cap(Rs in Cr)

52-week High /low

200 M.A

500049

BEL

41,947

189/118

161

Gruh Finance- Buy

Stock

Gruh Finance

Recommendation

The stock has form a bullish engulfing pattern on the daily chart. Also, it has managed to give a breakout on the weekly chart. A closing at its all time high further accentuates our positive view on the stock.

Buy/Sell

Range

Target

Stop Loss

Sell Aug Futures

508-512

546

486

BSE Code

NSE Code

Market Cap(Rs in Cr)

52-week High /low

200 M.A

511288

GRUH

18,681

515/270

403

Bosch Ltd – Sell

Stock

Bosch  Ltd

Recommendation

The stock has shown weakness over the past few trading session. The stock has also given a breakdown from the descending triangle formation on the daily chart and is currently trading below its 200-EMA.                  

Buy/Sell

Range

Target

Stop Loss

Sell(Aug Futures)

21740-21770

20880

22490

BSE Code

NSE Code

Market Cap(Rs in Cr)

52-week High /low

200 M.A

500530

BOSCHLTD

66,145

25649/18005

         22904

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