Delivery Pick Newsletter

Stock Picks:

PUNJ LLOYD (22.55): Buy this stock as our risk is barely 25% from the last traded We put a stop-loss below 16.90 on the close. Our 3-year target is 55 – 59. This company is not so dependent on local growth since it operates in quite a few foreign locations. Its troubles from the Middle East is on the wane, and it is also in to defence. The long term technical chart suggests that you would be buying this stock at a level close to its all-time low. Given below is the quarterly chart of the stock since its listing at the NSE.

SELAN Exploration (188.40): Its fortunes are dependent on the price of crude oil. Three years back SELAN ruled at the north of 600 and crude was above US$ 100-mark. Both the charts–US Light Sweet NYMEX crude and SELAN–are suggesting a turnaround in their Crude above $57 and SELAN crossing 230 on closing price basis would signal such a bullish reversal.

Based on technical chart reading, we see quite a high probability of that happening during this fiscal. Thus, SELAN presents a low-risk-high-gain potential opportunity. Put a closing price stop below 145 buy it with a target of 375 over the next two to three years would be a good positional long-term play.

 

GMR Infra (18.15): Infrastructure would be the growth story of the next decade, the current overvaluation in other sectors of the market notwithstanding. This was, until recently a pariah stock—only in circa 2017 it has started attracting fresh buying but there are no dearth of naysayers for stocks in the sector. Our point is @120 without any significant boost to its earnings it was bearish and that really panned out but its movement from 12 to 18 over the last 9 months can’t be brushed aside saying it is only speculative buying.

The accompanying quarterly chart clearly shows that it has happened on very large In fact, since the beginning of 2016, this stock saw exasperated tired old bulls liquidating and smart money building up positions. Its real bull run would happen when it will double up from current levels and cross the 36-mark decisively. Yet, projecting an upside target of 36 for the next two years and keeping a stop at levels below the 12-mark is still a good buy. In fact, such levels could come even earlier. Given below is the quarterly chart of the stock since inception.

Note: Please act on these recommendations at your own risk. Since they are technical recommendations, the stop-loss level should be adhered to though we tend to think that it is highly unlikely that it would get triggered.

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