Outlook:
Post breakout from an important hurdle at or around the 8300 level, the NIFTY GROWSECT 15 index has shown a good amount of traction by attaining a fresh high at 8830.70 in the week ended.
Although it missed by a mere 30 to 40 odd points to record a fresh level on a closing basis, we believe it could be achieved in the sessions ahead.
Top constituents from this universe that contribute more than 15 percent like ITC and HINDUNILVR have delivered more than 29-30% returns in the past five-six months, whereas M&M has marked its fresh all-time high levels at 1338 in the session that ended. MARUTI & SUN PHARMA has also shown a great run-up over the past few months.
Also, there have been a few underperformances like LUPIN which has eroded more than 69 percent of wealth from its peak and DR REDDY which is seen trading 29 percent lower from the high marked in the year 2015.
After discussing the top and underperformance, let’s focus on the stocks we like and could outperform the underlying index and also generate a good amount of return from the current juncture.
The stocks that require attention are EICHERMOT which has registered a bullish breakout on the longer-term charts and is trading into uncharted territory and has the potential to add another 35-40% of the return from current levels. APOLLO HOSP which is currently trading at 4460 has witnessed a healthy correction and has recently registered a bullish trendline breakout that hints at a resumption of the primary trend in the month ahead. The third and final stock we like is CIPLA which was seen under a larger degree of consolidation and has recorded a fresh closing on weekly basis at the 1058 level indicating the stock might conquer new highs going forward.
Post breakout from an important hurdle at or around the 8300 level, the NIFTY GROWSECT 15 index has shown a good amount of traction by attaining a fresh high at 8830.70 in the week ended.
Although it missed by a mere 30 to 40 odd points to record a fresh level on a closing basis, we believe it could be achieved in the sessions ahead.
Top constituents from this universe that contribute more than 15 percent like ITC and HINDUNILVR have delivered more than 29-30% returns in the past five-six months, whereas M&M has marked its fresh all-time high levels at 1338 in the session that ended. MARUTI & SUN PHARMA has also shown a great run-up over the past few months.
Also, there have been a few underperformances like LUPIN which has eroded more than 69 percent of wealth from its peak and DR REDDY which is seen trading 29 percent lower from the high marked in the year 2015.
After discussing the top and underperformance, let’s focus on the stocks we like and could outperform the underlying index and also generate a good amount of return from the current juncture.
The stocks that require attention are EICHERMOT which has registered a bullish breakout on the longer-term charts and is trading into uncharted territory and has the potential to add another 35-40% of the return from current levels. APOLLO HOSP which is currently trading at 4460 has witnessed a healthy correction and has recently registered a bullish trendline breakout that hints at a resumption of the primary trend in the month ahead. The third and final stock we like is CIPLA which was seen under a larger degree of consolidation and has recorded a fresh closing on weekly basis at the 1058 level indicating the stock might conquer new highs going forward.