5Gem

5 Gems #3

In announcing the Gems, we have tried to create a balanced portfolio of stable and aggressive stocks.
Castrol India Ltd & Cupid Ltd has limited downside while 20Microns Ltd and Shree Pushkar Chemicals as aggressive stocks.
 
Canara Bank may turn out to be a good positional trade of Aug21 expiry.
 

Gem 1

20 Microns Ltd

Daily Chart CMP 66.25

Range Play that offers scope for uptrend.

  • Face Value: 5.00
  • Book Value: 56.4 
  • Price to Earnings (PE): 10.5
  • ROCE: 15.9%
  • Yield: 0.91%

 Stock has scope for better valuation by another 50% till 100.00 conservatively. Company announcing Quarterly results on Tuesday 10thAug21.

Stop Loss can be 57 in the event of bad results.

Below Monthly Chart, with future possibilities on valuation.

 

Stock is in Monthly Momentum as CCI 34 Monthly > 100 since end of May21

Daily Chart shows Compression Breakout on Line Chart with 67.60 / 61.85 as upper / lower thresholds for direction price flow below:

 Invest for Medium Term CMP 66.25 SL 57 TGT 86 in 1-2 months.

Any Monthly Close here on above ATH 86 raise Target to 127 for 6-7 months and Target 153 for yearly scenario

Gem 2

Canara Bank Ltd

Daily Chart CMP 157.40

Price is ready for an Impulse Wave as seen on Line Chart.

Last three days sizeable volumes are been absorbed without much decline in Price. The stock ended well on Friday vis-à-vis SBI. The SBI Bulls seems to have entered now in Canara Bank.        

The Candlesticks Daily Chart CMP 157.40 as below:

The rising Indecision Candles may have something positive in store.

The Long Term Scenario is surely good for banking sector with tapering of QE expected in U.S. around first week of Oct21 for 2022 that may signal rising bank interest in the coming decade across the globe.

Monthly Chart Can Bank offers return to 2017 Levels as below:

Invest with a Short Term View of 222 by Sept21.

Oct-Dec21 expecting to see 293. Stop Loss 118 in case of any adversity.

Gem 3

Castrol India Limited

Daily Chart CMP 141.60

The company is owned by Castrol Ltd UK which is a globally trusted multinational brand.

In coming months, post-pandemic, the stock can be a good bet now at PE 18 and hefty ROCE 56% in this evergreen darling stock of Dalal Street over the decades.

Monthly Chart for Long Term Targets:

Invest for Short Term CMP 141.00 Target 176.00 SL 129 in 3-5months.

Gem 4

Cupid Ltd

Daily Chart CMP 241.10

A Personal Product company the market is too shy about Investing.

It may not be enjoying a ‘Pharma’ product status or else why would it be languishing at a PE of 11.1 CMP 241.00 ROCE 29.0%.

It can be an ideal stock for compounding at this valuation.

Long Term Scenario

Monthly Chart

In Jan18, the market”s highest price was at 423.00 when it’s Sales & EPS was half of what it is today CMP 241.00

Cupid could also be a part of your One-Stock-Portfolio.

It has strong brands and a FMCG set-up across the country. Its manufacturing facility makes it a Moat in itself.

INVEST CMP 241.10 Target 352 in 5-6 months with 490-500 in a ye

Gem 5

Shree Pushkar Chemicals & Fertilisrs Ltd

Daily Chart CMP 180

  • PE: 24
  • BV: 103
  • ROCE: 8.7%
  • FV: 10.00

YEARLY H/L 209 / 95.2

Expect to Rise till 251.00 SL 161

It is a Short Term Trade.

Monthly Chart belowL

Trading Candlestick Course

 13-17 August 2021

 

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One Comment

  1. Hello Sir,

    I have been buying your recommendations albeit in small quantities as i am a very small retail investor. It is a great work by you I feel with the Gems initiative which I have been looking forward to every week now. I like the way you present the cases (Fmcg) as well.

    I want to express my gratitude and millions of thank you to you as I feel you are doing a selfless service for the benefit of the small retail investors like me.

    Please accept my humble thank you again.

    Mein bahut chota hun aap se umar aur tajurbe mein lekin aapke achche swasth aur lambi ayu ki bhagwan se prarthana karta hun.

    Pranam 🙏

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