Smallcaps that can give good returns in near term

MUMBAI: The Indian markets retreated from higher end of the trading range following a sharp correction in banking stocks after the Reserve Bank of India took more steps to support rupee by sucking out liquidity from the system.

According to analysts, the market is likely to remain volatile in the near term with stock specific action ahead of July series expiry and the Reserve Bank of India's frst quarter monetary policy review meet.

"Nifty may find support near 5,950-5,970 in the near term but its turning on the downside. The index after a failed attempt a pull-back will continue to slip lower," said Ashwani Gujral, Fund Manager, ashwanigujral.com.

Following are Ashwani Gujral's recommendations on stocks which can give good returns in the short term:- Buy Transformers & Rectifiers around Rs 83.6 with stoploss of Rs 75 for a target of Rs 100. The stock is coming out of its range with volume.

Buy Gallantt Ispat near Rs 75 with stoploss of Rs 68 for a target of Rs 90. The stock has corrected to its 200 DMA and is bouncing back.

Buy Sonata Software near Rs 26.75 with stoploss of Rs 24 for a target of Rs 32. It corrected to its 200 DMA and is bouncing back.

Buy Shakti Pumps near Rs 43.2 with stoploss of Rs 39 for a target of Rs 52. It has corrected to its good support which is at 42 and bouncing back.

Buy Zicom Electronic Security Systems near Rs 66.4 with stoploss of Rs 60 for a target of Rs 80. It corrected to its support which is at Rs 64 and is bouncing back.

Buy Kalindee Rail near Rs 75.5 with stoploss of Rs 68 for a target of Rs 91. The stock is continuing its uptrend and braking its range after coming out of its 200-DMA.

Buy KSK Energy Venture near Rs 55.5 with stoploss of Rs 50 for a target of Rs 67. The stock is coming out of its 200-DMA with volume.
Note: The recommended stocks are to be held for a period of 2-3 sessions with strict stoploss. If they don't move in the mentioned time-frame, traders are advised to book profits.

Disclaimer: The above recommendations are based on technical views and information given by the analyst. Please consult your financial advisor before taking any position in the stocks mentioned.