Smallcaps that can give good returns in the near term

MUMBAI: The Indian markets are down on profit-booking in the absence of fresh buying and lack of supportive cues from global peers.

Banks, capital goods, metals and power are leading the decline while oil & gas, FMCG and IT are showing some gains.

According to analysts, the trade is expected to remain rangebound with a negative bias in the near term.

At 02:30 p.m.; the Sensex was at 19,798.45, down 95.40 points or 0.48 per cent. It touched a high of 19,981.57 and a low of 19,757.20 in trade today.

The S&P BSE Midcap Index was up 0.27 per cent and BSE S&P Smallcap Index gained 0.52 per cent.

Following are some short-term trading recommendations from Ashwani Gujral, Fund Manager, ashwanigujral.com, which can give good returns in the short term:-

Buy Kec International with a stop loss of Rs 25 for a target of Rs 32. The stock is showing strength on increased volumes.

Buy Sterlite Tech with a stop loss of Rs 18 for a target of Rs 25. It is in an uptrend and coming out of its range.

Buy Chennai Petro with a stop loss of Rs 55 for a target of Rs 63. The stock is coming out of its range with price and volume action.

Buy Finolex Cables with a stop loss of Rs 52 for a target of Rs 60. The stock is coming out of range with price and volume action.

Buy Mercator Lines with a stop loss of Rs 13 for a target of Rs 19. It is in an uptrend and coming out of its range.

Note: The stocks recommended should 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.