Multibagger Tyre stocks to give 50% return in 6 months time

 

On the Weekly charts JK tyre has broken out of the CUP and handle pattern and the volumes for the week have been huge.

We can also see that the stock is moving in an uptrend, and now it is facing the channel resistance of the upper band, also the Rs.110 levels have been huge resistance for the stock for quite some time.

Now if the next week the stock manages to stay above the Rs.110 mark and sustains above it, it is possible that the stock can then show a target of rs.160, however the time target that appears for the stock to reach the levels would be close to 27 weeks. (i.e almost 6 months time frame)

Also what remains to be seen is whether the stock now break this upward moving channel and manages to trade above it.

Considering the volume action it is quite possible the stock can well break above these levels. The stock is also getting ex-dividend on the 23^rd of august, the dividend per share is Rs 2.5

Considering the above price action it is advisable to wait for the stock to move in either direction to take a call on the same….i.e either accumulate the stock on fall or buy it once it crosses and maintains the Rs.115 levels

On a Fundamental level as well J.K tyre Chennai Capacity has come in this qaurter which is going to add to the bottom line of the company, also the Natural rubber prices which is a key raw material for Tyre companies have come down drastically helping them in the process........

Weekly Charts: Ceat

Another tyre stock that looks promising at the moment is CEAT, it has been forming an Inverted head & shoulder pattern and a close above the Rs.115 levels will give the confirmation.

Once the Breakout is achieved the stock can give upward targets to rs.160 levels. This both stocks have the potential of becoming multi bagger stocks. The time target would be the same approximately 27 weeks of time.

 

But one should wait for the stock to close above the Rs.115 levels on weekly closing basis and then enter the stock.

Ambuja Cement: "Is cement mai Jan Hai" Targets of Rs.216

Ambuja Cement has broken out of Inverted Head & Shoulder pattern, and the stock is now at Rs.192 levels.

On the Breakout from these levels, the stock has a target of Rs.210 an approximate rise of 10% from the current levels. The Stop loss of the stock is at Rs.178 on daily closing basis.

The advise would be enter into the stock once it gives a correction from the current levels of Rs.192 to Rs.185 odd levels. This in turn will also maximize the return on your investments.

On the Weekly charts as well the stock has made similar pattern and the break out has been achieved at least 2 weeks before ( I apologise for posting this a bit late...but still it will give u opportunities to make money.) 

The time target for the targets to be achieved would be within 2 months from now i.e prior to October 10 the target should be achieved.

The additional comfort in the stock is. it is a "A" group stock. So relative safety element is definately there in the stock.

I Hope you will be able to make Handsome returns from the stock. Till then Happy investing and Remember Follow the stop loss strictly to avoid capital erosion.

" JM FINANCIAL" A Penny Stock...which can give returns in Many

This post is on request of one of my dear friend, who wanted to invest in a stock of close to Rs.10

So i came out with this idea of JM financial, which is consolidating at the current levels and is about to give a breakout very soon. The Stock is forming a Ascending triangle formation, which is a bullish pattern.

At present the stock is at Rs 13.45 my advise would be enter into the stock close to Rs.12.80 and Rs. 12.60 that is where the stock should find support at the lower levels.

Interesting about the stock is at the current price levels it has a dividend yield of  5% (i.e 0.60 paise) the stock went ex-dividend of 1st August.

At the price levels of Rs. 12.80 the stock can be entered into with a price target of minimum of rs.14 first and then one can good partial profit at those levels if one wants to and can book full profits at Rs.16 the stop loss in the stock should be Rs. 12 on daily closing basis

Till then Keep investing and remember Trend is your best friend.

Dishman Pharma...Targets of Rs.90

Dishman pharmaceuticals has made a nice chart setup.....On the
Weekly charts the stock looks very attractive and after giving a breakout with huge volumes this week.

The stock is currently at Rs.80 and u can expect a price levels of Rs.90 in the stock within a short span of time. although the entry is certainly at a higher level, but the advise would be to enter the stock in a staggered manner rather than entering at one go.

For example 30% quantity can be bought at the current levels and the remaining can be bought at levels of Rs. 77 and Rs.74. So as to gain the maximum profit. The Stop loss for the stock would be Rs.70 on weekly closing basis

The time target would be 3 weeks that is by the end of August the target should be achieved in the stock.

Till then Keep visiting the blog for more interesting stock ideas.....Your comments are very much appreciated.