04 Jul , 2022 By : Kanchan Joshi
Amid weakness in secondary markets, positional investors are busy scanning quality stocks available at discounted price. However, some stocks have managed to deliver stellar return despite weakness in stock market. For example, Jamna Auto Industries shares. This share has given 25 per cent return in 2022 whereas some quality stocks like SKF India has remained sideways losing mere 1.60 per cent in YTD time.
For those who believe in discounted shopping, Muthoot Finance shares have tumbled over 30 per cent in year-to-date time. According to Ventura report, it seems that stocks that have remained strong in recent sell-off are expected to gi9ve sharp upside moves when there is trend reversal in the market.
Here we give what Ventura suggests in regard to Jamna Auto Industries, SKF India and Muthoot Finance shares:
Jamna Auto Industries: "The stock price started its UP move from 21 (March 2020) to 124.9 (Jan 2022), making series of higher bottoms & higher tops. During the move the stock continuously traded above averages & Super Trend was in Positive mode. Slight profit booking followed and the stock corrected to 95 in March 2022."
Ventura report went on to add that a higher bottom at Rs97.65 followed and the stock again started its up move. From January 22 to June 22, Jamna Auto stock traded in ( Rs95 to Rs125) price range.
If the stock price corrects downwards the buy levels are Rs121 Rs116 and Rs108 to Rs105 apiece, maintaining stop loss at Rs99 per share levels, suggests Ventura report. The long term target that Ventura sees for this stock is Rs200 per share.
Buying levels suggested by Ventura in regard to Jamna Auto shares is Rs116 to Rs121 per share range and the long term target expected is Rs200. This means Ventura is expecting this auto stock to deliver up to 65 per cent return to its shareholders in long term.
SKF India: "The stock price started its UP move from 1238 (March 2020) to 4245 (Dec 21), making series of higher bottoms & higher tops. During the move the stock continuously traded above averages, & the Super Trend was in Positive mode. Slight profit booking followed and the stock corrected to Rs2984 in May 2022. From February 2022 to June 2022, most of the time the stock traded within averages," says Venture report.
A Weekly Bullish candle, supported by volumes has been formed. The stock has made a high of 3790 surpassing intermediate high of Rs3,689. The KST, ADX & Demand Index Indicators have generated a Primary buy signal. The possible targets are Rs4500 to Rs5700. If the stock price corrects downwards the buy levels are Rs3600 to Rs3480 and Rs3292 to Rs3238. Stop Loss to be observed in the trade is Rs2975," report said.
SKF India share price today is Rs3695 and the long term target expected by Ventura is Rs5700. This means Ventura is expecting 55 per cent upside in the scrip in long term.
Muthoot Finance: "The stock price started its downtrend from Rs1446 (March 2022) to Rs961 (June 22). Continuous Lower tops and bottoms were formed during the downtrend. Keltner Channel is formed by set of two AVERAGE TRUE RANGE (ATR) VALUES above & below a defined EMA. Possibility of Reversal arises when Price moves above the channel and the channel itself turns its previous direction. These conditions have been formed in the above chart. The KST, Demand Index & MACD Indicators have generated a Primary buy signal," Ventura report says.
"The stock can reverse its trend upside for a corrective up move. The possible targets are Rs1175 to Rs1350. If the stock price corrects downwards the buy levels are Rs1026 to Rs1014 and Rs993 to Rs987. Stop Loss to be observed in the trade is Rs958," Ventura said.
Muthoot Finance share price today is around Rs1060 apiece and the long term target predicted by Ventura is Rs1350, which means the report is expecting more than 25 per cent upside in long term