Top swing trading ideas you should not miss.

Top swing trading ideas you should not miss!
by 5paisa Research Team 07/10/2021

Best Swing Trading ideas based on price and volume percentage surge. Minda Industries, Escorts, Pidilite Industries.

Price and volume are two of the most prominent inputs used by traders across the world while swing trading. When used in isolation, they reveal very little but when used in conjunction, they help us to sort the wheat from the chaff. So, this swing trading system is based on the deadly combination of price and volume percentage surge, which helps us to discover high probability swing-trading candidates.

So, here is the list of stocks that fulfil the criteria of volume and price surge and as a result, they flash in our swing-trading system:

  1. Minda Industries: The stock jumped over 5% on Thursday. The stock’s daily range was twice its 10-day average range. In addition to this, the volume for the day was greater than its previous trading session and in fact, was the highest since September 17. Furthermore, it was greater than 10 and 30-day average volume. As a result, the stock met the norms of the swing trading system. In the near term, the stock has the potential to touch levels of Rs 810, while on the downside the support is seen around levels of Rs 743.

  1. Escorts: The stock has formed a bullish candle on Thursday as it surged over 4% on Thursday. The stocks' daily range on Thursday was greater than its 10-day average range. Additionally, the volume for the day was greater than its previous trading session and it was the highest since September 30. With price and volume criteria met, this stock looks ripe for a decent up-move from current levels in the coming days, hence, swing traders can keep this on the radar for up-move towards the level of Rs 1571, while immediate support is seen around Rs 1470.

  1. Pidilite Industries: The stock had gained over 2% on Thursday. Interestingly, the stock has met the criteria of volume and price surge on Thursday. The volumes were higher than its previous trading session and it was higher than 10 and 30-days average volume. In addition to this, the daily range of the stock was greater than its 10-day average range. Considering the strong price movement witnessed in the stock along with volume uptick, Swing traders should not miss this stock as it can touch levels of Rs 2525 in the near term followed by Rs 2565 in the medium term. On the downside, support is seen around Rs 2400 levels.

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Why the Q2 updates by Titan, Kalyan Jewellers buoyed investor sentiment

by 5paisa Research Team 07/10/2021

Titan Company Ltd’s shares touched a new high on Thursday while Kalyan Jewellers India Ltd’s stock soared more than 13% after the two companies said business was fast turning normal after the disruption caused by Covid-19.

Titan, the watches and jewellery arm of Tata Group, crossed a valuation of more than Rs 2.1 lakh crore as its shares jumped 10.7% to Rs 2,376.20 apiece on the BSE. Earlier in the day, the shares touched a high of Rs 2,383.35 apiece.

Shares of Kalyan Jewellers climbed as much as 13.75% to Rs 80.50 apiece, before closing at Rs 80 on the BSE.

The strong show came after Titan said it recorded strong recovery in demand after the second wave of Covid-19 across its consumer businesses with sales moving swiftly above or close to pre-pandemic levels in most divisions.

Titan said that most stores were now fully operational, barring a few in select towns with localised restrictions, and that overall store operation days exceeded 90% for the quarter. Apart from its thrust on digital channels, the company also accelerated its retail network expansion during the quarter. Tier-2 cities are seeing better recovery in walk-ins compared to metros, it said.

The company said revenue at its jewellery division jumped 78% during the July-September quarter from a year earlier. Revenue at the watches and wearables segment climbed 73%, and at the eyewear vertical rose 74%. Revenue at online jewellery unit Caratlane surged 95%.

“The demand postponement triggered by the second wave of the pandemic in avenues like gift purchases, occasions—milestone buying, weddings, investments in gold etc. witnessed a strong comeback in Q2,” Titan said.

Titan also said that Digital Gold is a new pilot offering that helps customers purchase gold online and lock-in the gold prices with an ability to convert it into jewellery at a later stage. “The early response has been good with enrolment of many digitally-savvy young customers,” it said.

Kalyan Jewellers

The jewellery company said it recorded robust momentum in both footfalls and revenue across all its markets in India and the Middle East in the second quarter.

“There has been a greater acceptance of the ‘new normal’, leading to increased walk-ins and more time spent at our showrooms by customers,” the company said.

Kalyan Jewellers recorded revenue growth of about 60% for its India operations during the recently concluded quarter, as compared with the same period in the previous year. This was despite the fact that there were lockdown-related disruptions in showroom operations in one of its key states, Kerala. The company’s showrooms in Kerala resumed operations fully by the second week of August.

The company said that same-store sales growth in its southern markets came in at around 40% during the quarter. Non-south markets recorded a higher same-store sales growth of about 70%. “This differential was predominantly due to the temporary closure of showrooms in Kerala during the recent quarter,” it said.

Kalyan’s overall same-store sales growth in India during the quarter was about 50%.

The overall revenue growth in India has been more broad-based across geographies, driven largely by the fact that eight of its 10 newly opened showrooms in the current financial year were launched in south India. Non-south markets recorded a revenue growth of about 70% and south markets recorded a growth of about 60%.

During the quarter, 92% of the company’s showrooms were operational compared with 88% during the same period in the previous year. However, as of September 30, 100% of its showrooms were operational.

In the Middle East, Kalyan saw a significant improvement in customer sentiment during the quarter, resulting in revenue growth of about 60% as compared with the same quarter during the prior year, despite the travel restrictions between India and the region for most of the recently concluded quarter. The growth was largely driven by same-store sales since it did not add any showroom in the region during the last 12 months.

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SIP Performance – Kotak Small-Cap Fund – Direct Plan.

SIP Performance – Kotak Small-Cap Fund – Direct Plan.
by 5paisa Research Team 07/10/2021

Kotak Small-cap fund is one of the highly-rated equity funds within the category and has outperformed its benchmark since inception and on 1, 3, 5-year period.

Systematic Investment Plan (SIP) through this option, an investor can invest a sum of money of at least Rs 500 periodically, monthly or quarterly. Such plans are generally suitable for small and moderate-income level individuals as it allows to invest with small amounts. This encourages youngsters i.e., individuals who start their journey of earnings to invest right from a young age. This enables the creation of a large corpus if investors invest for a longer time.

Mutual funds offer various types of schemes such as equity-oriented, debt-oriented, hybrid and other schemes. These schemes are further divided into various categories. Kotak Small-Cap Fund is an open-ended small-cap fund.

Let’s look at the SIP performance of Kotak Small-Cap Fund which invests majority of its corpus in 251st company onwards in terms of full market capitalization. This fund is outperforming its benchmark in 1, 3, 5-year periods and since inception it is outperforming the benchmark i.e. NIFTY Small cap 100 TRI. It is the highest-rated fund within its category. If you had invested just Rs 1,000 every month i.e. Rs 12,000 p.a. from October 1, 2018, till the present date i.e. October 7, 2021, then your worth of investment would have been ₹77,846 as against the amount invested of ₹37,000.

Now the question arises, what rate of return the above investment delivers? Let’s look at the same:

 

As you can see, in the above calculation if you had invested Rs 1,000 every month for three years you would have received a 46.00% return.

Following table depicts the performance of the fund over its benchmark as of October 6, 2021:

 
 

Let’s look at the top 5 holdings of Kotak Small-Cap Fund – Direct Plan:

Company  

% Assets

Carborundum Universal  

4.47  

Century Plyboards (India)  

4.46  

Sheela Foam  

3.52  

Galaxy Surfactants  

3.32  

Persistent Systems  

3.18  

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Vakrangee to launch P2P lending platform by partnering with LenDenClub.

Vakrangee to launch P2P lending platform by partnering with LenDenClub.
by 5paisa Research Team 07/10/2021

Under this tie-up, Vakrangee, through its BharatEasy mobile application and Nextgen Kendras, will now offer lending and borrowing platforms in the remotest parts of the country.

Vakrangee has announced that it has tied up with LendDenClub to provide borrowing and investing options to its customers. This integration will help customers of Vakrangee to invest and borrow through LenDenClub smoothly. Under this tie-up, Vakrangee, through its BharatEasy mobile application and Nextgen Kendras, will now offer lending and borrowing platforms in the remotest parts of the country.

LenDenClub is the largest peer-to-peer platform in India, having disbursed more than Rs 1000 crore worth of loans. They currently enjoy a user base of 20 lakh borrowers and disburses on an average of 4.5 lakh loans annually. With a registered base of 8 lakh investors, LenDenClub enjoys more than 50% market share in the fresh loan disbursements in the Indian P2P market. It aims to foster financial inclusion by leveraging technology to support borrowers with hassle-free loans while providing a new-age investment option for investors.

The company has said in a filing with the exchange that, “Borrowers will get hassle-free Instant digital loans, even in the remotest parts of the country. It is one of those rare lending platforms to offer loans across 19,000+ pin codes across the country, higher than some banks. Additionally, the customers will get an excellent alternative investment opportunity on its P2P investment platform and earn attractive interest income.”

With 70% of Nextgen Vakrangee Kendra outlets in Tier-5 and Tier-6 towns, the company will furnish borrowing to the community in the unserved parts of the nation.

Incorporated in 1990, Vakrangee is a unique technology-driven company focused on building India's largest network of last-mile retail outlets to deliver real-time banking and financial services, ATM, insurance, e-governance, e-commerce, and logistics services to the unserved rural, semi-urban, and urban markets. The Assisted Digital Convenience stores are called as “Vakrangee Kendra” which acts as the ‘one-stop shop’ for availing various services and products. Vakrangee currently has close to 11,900 Nextgen Vakrangee Kendras spread across 27 States and UTs, more than 520 districts and 4,620 postal codes.

On Thursday, October 7, 2021, the share price of Vakrangee closed at Rs 41.15 per share, up by 1.35% on BSE.

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Closing Bell: Indian Market rebounds; Sensex ends higher by 488 points, Nifty hovers on 17,790 level.

Closing Bell: Indian Market rebounds; Sensex ends higher by 488 points, Nifty hovers on 17,790 level.
by 5paisa Research Team 07/10/2021

At the closing bell, the Sensex ended 488 points or 0.8% higher at 59,677.8 and the broader Nifty 50 benchmark was up by 144.4 points or 0.8% to settle at 17,790.4.

Domestic equity benchmarks Sensex and Nifty 50 started Thursday's session on a strong note tracking gains across global markets. Investors showed keen buying interest across sectors which was led by auto, metal, financial, and consumer durable shares. Gains witnessed in broader markets also aided investor sentiment, with the midcap and smallcap indices up 1.1% and 1.3% respectively in early trade.

At the closing bell, the Sensex ended 488 points or 0.8% higher at 59,677.8 and the broader Nifty 50 benchmark was up by 144.4 points or 0.8% to settle at 17,790.4. Around 2096 shares have advanced, whereas 1023 shares declined, and 119 shares remain unchanged.

On the sectoral front, all the indices ended the trading session in green, except BSE Telecom and BSE Oil & Gas. BSE Realty, BSE Consumer Durables and BSE Auto have rallied up to 6.03% in Thursday's trading session.

Among the top gainers on October 7, 2021, were Tata Motors, Titan Company, M&M, Eicher Motors and Maruti Suzuki.

Tata Motors today, surged to their highest levels in nearly four years after Morgan Stanley Research upgraded the stock on expectations of encouraging annual earnings from the Jaguar Land Rover parent.

The brokerage increased its rating on Tata Motors to overweight from equal-weight maintained since 2017. It expected the automaker's India business to post a full-year profit after eight years of losses.

The other big gainer on Thursday was Titan which rallied over 10% to hit a record high of Rs 2,384.25. This movement was triggered after the company informed exchanges that it witnessed a strong recovery in demand after the second wave across its consumer businesses with sales moving swiftly above or close to pre-pandemic levels in most of the divisions.

Tomorrow is the RBI's scheduled policy review.

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These penny stocks were locked in the Upper Circuit on Thursday.

These penny stocks were locked in the Upper Circuit on Thursday.
by 5paisa Research Team 07/10/2021

Penny stocks are the ones that trade below Rs 10 per share and have low market capitalization. With a risk-on mood in the markets on Thursday, several penny stocks were seen outperforming the markets.

Nifty opened with a 'gap-up' and then inched up till about 1.15 pm when it made an intraday high. Some profit-taking post that level was seen. At close, Nifty was up 0.82% or 144.3 points at 17790 levels. To summarize, about 2096 shares advanced, 1023 shares declined, and 119 shares remained unchanged. Tata Motors, Titan Company, M&M, Maruti Suzuki and Eicher Motors were the top gainers on Nifty.

Realty, Consumer Durables and Auto indices gained the most while Oil & Gas and Telecom were the two indices that ended in the negative. The volumes were on the higher side on Thursday which is a good sign.

The commencement of the festive season boosted activity in textiles, consumer durables and real estate stocks. Meanwhile, despite the global semiconductor shortage, auto stocks witnessed a rally in hopes of demand revival during the festive season. Ahead of earnings starting from Friday, the IT index also lent good support.

For the next trading session, the markets are likely to be glued to the outcome of the MPC’s monetary policy review meet and the result of the IT major TCS which is scheduled on Friday.

Participating in the rally of the markets, the penny stocks also attracted the investors by gaining up to 8.7%. Some of the penny stocks are locked in the upper circuit.

Here is the list of penny stocks that gained up to 8% with a spurt in volume on a closing basis on Thursday:

Sr No  

Stocks  

LTP  

Price Gain (%)  

Siti Networks  

2.3 

4.55 

JD Power  

4.35 

2.35 

Sintex Plastics Technology  

5.8 

4.5 

Lloyds Steels  

3.95 

3.95 

Orient Green Power  

3.75 

8.7