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Stock of Day | Portfolio Yoga

Tag: Stock of Day

Stock of the day – Indus Ind Bank

Couple of days back, I wrote on CNX PSU Bank Index. While huge problems exist for PSU Banks, I believe that if one looks at it with the sector with a horizon of 5 years or more, this is as good a time to enter as any other. Unlike other indices, with Banks, one has the opportunity to enter with a ETF as well (Kotak PSU Bank ETF).

In the short term though, Private Sector Banks shall continue to show good performance and the stock that came to my sights is Indus Ind which (like almost all the big private sector banks) is breaking out (its all time high is now pretty close by and if markets continue to remain bullish, certain to be broken).

Markets are overheated and a reaction is certain – question though is when? I doubt anyone knows and since risk has to be taken at one point or the other, why not take the risk with the trend than trying to predict the end of the trend.

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Stock of the Day – Heritage Foods

With elections taking off in India, Heritage Foods which can be called a “Politically linked Enterprise” has been on a over-drive in recent days. But the recent rise is nothing if one shifts the focus from daily charts to Monthly charts for here you can see a clear cut Pole and Flag pattern. If this pattern is true and the stock finally moves to the target area (Pole length is 220 Rupees and breakout is at 250, you do the calculation 🙂 ), this can be a true multi-bagger identified using long term technical charts.

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Stock of the Day – Repco Home Finance

One of the stocks that I am hearing a bit lot in recent times has been Repco Home Finance. The stock today made a all time high though it did close only slightly higher. The chart of Repco is interesting in the way it has moved from the time of listing till date. Has broken out two times, tested the break-out but not pierced them before moving to the next band.

In the fundamental circles, people have been pretty gaga on the stock owing to its strong financials (Highest NII among its peers, highest 5 year CAGR ratio (profits) among others). Looks like a good stock to own for the medium to long term.

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Stock of the Day – Godrej Industries

A observation of the chart of Godrej Industries tells you one thing – the stock likes to consolidate a lot. Since the rise in 200, the stock moves higher and then falls back to consolidate before attempting and making a fresh peak. Unfortunately that pattern seems to have ended in 2013 and since Jan has been in a pretty long term consolidation pattern.

While even now, the break-out is yet to happen, as you can see on the chart, the stock has finally been able to close above the recent peaks. Lack of volumes mean that there is still a probability of a re-test of the 200 EMA (currently at 280) which would then be a ideal point to enter the stock.

On the other hand, if the stock continues to rise, a break-out above 330 would be the place to enter 

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Stock of the Day – BF Utilities

The best entry for a stock is when it breaks through a Resistance level which has been tested multiple times in the past. Then again, this is no guarantee to the trade being profitable but do this long enough, and the odds will be in favor of you. 

BF Utilities is just below one such major resistance and if broken, can result in pretty strong gains owing to its resistances coming at much higher levels. Of course, there is also a risk factor in the sense that this stock is not as Liquid as many other stocks in its sector. In fact, during its recent surge, it has on many days been locked on circuit which while indicating strong demand for the stock is not a sign that one should be comfortable with. After all, if it starts to hit circuit on the way down, it would be tough to even get out at a loss (and even his has happened in the past in this very stock). All in a all, a high risk (and probable high gain) stock.

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Stock of the Day – Gujarat Fluorochemicals

While the Indices are hitting new all time highs, a lot many stocks are still waking up just now. Gujarat Fluoro is one of those companies that haven’t delivered any strong returns over the years. As on date, the stock trades at 320, a price which the stock first saw in early 2006 (that is 8 years of non performance if one ignores the upside we saw in 2011 and the downside we saw in 2009.

The stock after making the high in 2011 lost nearly 65% before it started bouncing back once again. With today’s move, it has crossed one hurdle in terms of a major resistance though a lot needs to be done before the stock can claim to be out of the woods. Of course, its not that the stock alone has been a under-performer. If we look at its peers, there is not much to choose from and this suggests that unless there is a turnaround in the industry itself, the risk of the stock being beaten back remains high.

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Stock of the Day – J K Tyres

Tyre stocks have been on a roll in recent months with even Apollo Tyres which was crushed on back of its proposal to buy Cooper Tyres having doubled once it was seen that the deal had no way to go but out. As can be seen in the Relative Strength chart below, the best performance in the last 6 months has been CEAT which has beaten the returns of other peers by a pretty wide margin. J K Tyres has not done too badly either and has been the third best performing stock (among its peers) in the last 6 months.

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The chart of the stock is showing pretty strong trend though it failing today at the resistance level of 180 does mean that we may either see a small reaction before the longer term trend emerges or this may be the end for now. The pattern we are seeing in the stock is a Cup pattern. If the stock reacts a bit before breaking out, that would be a good sign of the trend having not yet exhausted. But on the other hand, if the stock starts to strongly react from here, it may be a while before we see a breakout above these levels (in recent times, I remember Mindtree which too reacted exactly at the rim of the cup and is as we speak down 21.50%).

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