[Premium] Stock Trade Ideas For The Second Quarter

JC Parets
April 3, 2018

As we enter the second quarter I would say there are mixed signals coming from different markets. My conclusion is that there are more positives than negatives. One in particular that stands out is the strength in Indian Banks. A few of them are pushing up against new highs and both the relative strength and positive momentum in such an important sector can't be ignored. Also, we're seeing strength around the world in Emerging Markets, India included. I think we're finally seeing the rotation back into India on a relative basis.

Today we're going over some of the more favorable risk vs reward opportunities within the NIFTY50 Stocks:

 

HDFC Bank continues to be a leader - showing both relative strength and positive momentum. These are the types of stocks we want to be buying. If we're above 1780, $HDFCBANK is a long with a target above 2300:

INDUSIND Bank is another one. As some stocks around the world are falling, we see interesting strength from emerging markets and India as well. I think we go to 1960 and we want to be long $INDUSINDBK if we're above 1750:

Look at Kotok Bank pushing up against new highs already. We want to be long $KOTOKBANK if we're above 1100 with a target above 1290:

In Energy, Reliance is still above the 2008 highs. It's hard not to be bullish if we're above that. We want to be long $RELIANCE if we're above 829 with a target near 1200:

We want to be buying this dip in Tata Consultancy. We want to be long $TCS if we're above 2800 with a target above 3300:

Here is a closer look. With momentum in a bullish range, and a little failed breakout last week, the higher probability outcome here is a squeeze to new highs:

Hindustan Unilever has been a favorite of mine. After this consolidation, momentum in a bullish range and price in an uptrend is pointing to an upside resolution. If we're above 1330 in $HINDUNILVR we want to be long with a target near 1680:

Look at Mahindra & Mahindra pushing up against new highs trying to complete this base:

Here is a closer look. We want to be long $M_M if we're above 755 with a target above 868:

I like Larsen & Toubro here if we're above 1262. We want to be taking profits above 1623:

I think from the short side, the breakdown in $IOC is not one to ignore. Momentum is in a bearish range and now stuck below the 38.2% retracement of the entire 2016-2017 rally. If we're below 176 we want to be short with a target under 142.

Tomorrow we will go over stocks in the NIFTY Next 50 and I will try and point out which ones offer the best risk vs reward opportunities on both the long side and short side.

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Cheers,

JC

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