Winning Strokes: Think Different

Though many of my ardent blog readers have been requesting me to update my blog, unfortunately I was not getting the required time to do the same. Today, I thought I would do it by hook and crook.

Anyway, the Indian stock markets witnessed yet another remarkable week, culminating on May 24. The primary indices reached unprecedented peaks, propelled by a 2% surge buoyed by  boosted by select index heavyweights.

This upward momentum was fueled by robust March quarter earnings in crucial sectors, coinciding with the impending Lok Sabha election results slated for June 4. 

Additionally, the market found support from further easing in FII selling, consistent DII buying, RBI's substantial dividend payout, and healthy domestic macro data (including record surge in exports, and employment at a 18-year high in May).

Experts anticipate a buoyant atmosphere to continue, albeit coupled with significant volatility, as the market navigates through the release of exit polls and general election outcomes. Market participants will also monitor monthly automobile sales figures, alongside India and the US's GDP data for the March quarter.

The Nifty 50 surged by 2%, equivalent to 455 points, reaching 22,957, while the BSE Sensex witnessed a gain of 1,404 points, constituting a 1.90% increase, closing at 75,410. However, the broader markets exhibited a mixed performance, with the Nifty Midcap 100 index climbing by 1% and the Smallcap 100 index witnessing a decline of 0.70%.

Meanwhile, I anticipate the mid and small cap indices to pick up as the day of election results progresses.

#The stock of Indiabulls Real Estate Ltd (Rs.138.70) which was recommended around Rs.60 and which made a new 52 - week high at Rs.145.70, few weeks back, may touch Rs.171/177 in the coming months. However, those who have entered near my recommended prices should book some profits.

#The stock of Zomato Ltd (Rs.182.90) which was recommended around Rs.53, went on to give multibagger returns during the last couple of years. This is the fruit of holding a good counter for the long term. Now book complete profits and wait for the scrip to come near Rs.167, to take fresh positions.

#The stock of Zee Entertainment Enterprises Ltd (Rs.151.65) continue to do well, as the company's CEO, Puneet Goenka has embarked on an austerity drive. This revolutionary exercise is expected to further strengthen its Bottomline. The stock has already given a smart rally from its 52 - low price post declaration of March, 2024 quarter results.

However, it is equally necessary for the scrip of ZEEL to give a closing above Rs.152 to further move up. I'm looking for short term targets of Rs.175/211.

#The stock of Indowind Energy Ltd (Rs.22.20) is consolidating around the current ranges for the start of next round of upmove towards Rs.33/42.

The renewable energy sector in India (and likely still is) experiencing growth, driven by increasing awareness of climate change and government incentives for renewable energy project's. This growth potential could make Indowind Energy an attractive investment opportunity. Moreover, with cutting of debts and doing away with two lean seasons (December - March Quarters), we can look forward for superb results from the June, 2024 quarter onwards. Accumulate in market declines.

#The stock of Vodafone Idea Ltd (Rs.15.10) on last Friday rallied to Rs.15.70, achieving Motilal Oswal Securities' target of Rs.15. The should consolidate around Rs.14/15 before moving towards the targets of Rs.18/22/24. Accumulate in declines.

#Deebock Industries Ltd (Rs.7.90), a company into agricultural equipments, real estate, hotels, graphite mining, etc will come up with March, 2024 results on 30 May, 2024. But I don't expect any fireworks in the results, however from June quarter its fundamentals are expected to improve. We can look for targets of Rs.27/31 in the coming days. 

My sources are talking of tentative completion of some of the company's projects in the June, 2024 quarter. The company last year came up with rights issue at Rs.15. 

#The demand for cylinders is going to spike up in the coming years as Indian population surges. The BSE listed Sarthak Industries Ltd (Rs.26.35) is set to give good returns once a full fledged rally in the small and mid cap commences, post declaration of the results of Lok Sabha Elections.