DELIVERY CALLS - FANTASTIC 25-10-14

 

Pipavav Defense and Offshore Engineering Ltd

Buy Pipavav Defense and Offshore Engineering Ltd  at 41 Target 88 Stop loss 30.80

The previous rise in the stock was a clear five-wave rise wherein wave 2 was an expanded flat pattern and wave 4 was a zigzag pattern. This five-wave rise completed a larger wave (1), following which wave (2) retraced 86% of wave (1). Now, it seems that the wave (3) has begun which has an equality target of Rs88. The stop loss for this trade is the swing low of wave (1), ie Rs30.80. Hence, the risk/reward ratio is quite favorable for bulls. The daily Know Sure Thing (KST) has come well into buy mode whereas the weekly KST is about to provide a buy cross-over. So, based on the above observations we recommend buying the stock

Mangalam Cements Ltd 256.20

Buy Mangalam Cements Ltd  At 256.20 Target 561 Stop Loss 179

The stock has provided a clear break-out from the symmetrical triangular pattern of which wave E was an overshoot. The volumes had increased during the break-out which is one confirmation of an uptrend. The weekly Moving Average Convergence Divergence (MACD) is in sell mode but the monthly MACD is well in buy mode and that increases the probability of an up move. The minimum equality target on the upside comes to Rs561 whereas the stop loss on the lower side is pegged at Rs179  just below the break-out point. So the risk/reward ratio at the current market price of Rs 239 is very favorable for the bulls. Based on these observations we recommend buying the stock for the above mentioned targets.

Network 18 Media & Investments Ltd

Buy Network 18 Media & Investments Ltd  At 50.30 Target 100 Stop Loss 33

The stock has been correcting since June this year. Our sense is that the stock is in a strong up trend and the current fall should be used as an opportunity to buy into it. The stock is currently trading near multiple supports, it is trading around the 40-week moving average it is also trading around a medium-term rising support trend line. In terms of Fibonacci retracements, it has reached the 61.8%retracement level of the rise from Rs28 toRs72, which is also a crucial support. It has been consolidating near these crucial supports and we sense that it is forming a base for the next up move. We expect this crucial support area to hold good and the stock should resume its uptrend very soon. Investors can buy the stock at the current market price for targets of Rs72, which is the high it touched in June this year, and Rs100, which is a psychological level. A stop loss should be placed at Rs33

Eros International Media Ltd

Buy Eros International Media Ltd  At  244 Target 393 Stop Loss 190

The stock has been consolidating in a sideways manner since early September this year. Our sense is that it is consolidating in wave 4 of a larger degree impulse formation, ie we expect the stock to form wave 5 on the upside. The current consolidation can continue for some more time and investors can use this as an opportunity to accumulate the stock at the current levels and add more if it falls to Rs215 levels. Rs215 is the 38.2% retracement level of the rise from Rs106 to Rs 283. Wave 2 of the stock was sharp which retraced 61.8% of wave 1.Hence, we expect wave 4 to be sideways as per the guideline of alternation, which should terminate around the 38.2% retracement level(Rs215). The targets on the upside are placed atRs349, which is the target for a truncated wave5, and Rs393, which is the equality target (Wave1 = Wave 5). A stop loss should be placed at Rs194

Snowman Logistics 101.60 TGT 135 COMING MONTH NOV

Snowman Logistics (SLL), an integrated temperature-controlled logistics services provider, operates 23 temperature-controlled warehouses across 14 locations in India (including Kolkata, Mumbai, Delhi, Chennai and Bengaluru). It plans to set up another such 6 and 2 ambient warehouses at 6 cities at the cost of around Rs 140 core.

The client base of the company is also strong, which include various industry sectors such as dairy products, ice creams, chocolates, pharma, seafood, fruits and vegetables, and poultry and meat. Top 20 customers contributed 44 percent of total revenues in the year ended March 2014. Some of the prominent clients are Hindustan Unilever, Novozymes South Asia, McGain Foods India, Karnataka Co-operative Milk Producers’ Federation, Graviss Foods, Saguna Food, West Coast Fine Foods India etc.

To improve the customer proposition, Snowman’s has introduced various value added services such as knitting, labelling, sorting, packing and re-packing of goods. Such services add significantly to SLL both in term of value to clients as well as bottom line. Further, consignment services such as indenting, order booking, invoicing, etc. for select customers improves SLL’s USP. SLL, being the largest cold chain solutions provider, has huge potential for growth in the organized services sector.

Domestic temperature-controlled logistics industry is estimated at Rs 12,000-15,000 core and is expected to grow at 15-20 percent year-on year  for the next three to five years. With the strong growth prospects of cold chain industry and company being a leading integrated cold chain player in India with presence across the value chain of the industry, the stock looks good for long term We recommend a BUY on the stock with a target of Rs.135.

 Biocon Ltd.

 From the Pharma space, BIOCON has underperformed significantly as compared to its peers whereas the long term trend for the stock is still up.

  Monthly support for the stock is seen at 420-425 levels; CMP 475

  Trade with a positive bias above 475/480 Targets at 575/600; CMP 479.95

SL close below 450

Bharat Heavy Electricals Ltd.

 BHEL has been consolidating in the range of 200-240 for quite some time now.

 It is in yearly uptrend, Previous year high of 245.7; low of 100.15 and close of 176.9. Current year High of 291.5 low of 145.55 Cmp 240  Bullish gap as seen on charts is between 202-208 and bearish gap between 237-235.

Max OI of PE seen at 210 PE strike indicating Strong support at 202-210 levels.

Wait for this rate  Buy in the dip range of 215-220 stop loss close below 202 Target 260/290; CMP@240.40