The 5 Next Biggest Stocks in India

(short term perspective)

Disclosure

Please click on the above link to view the

disclosure document before reading this
S und article. The contents may not be reproduced
ara mu in any form without obtaining prior
rthy Vadivelu permission from the publisher.

Please send your feedback

In this article let us discuss 5 India stocks that are bullish for short
term.

Bhagwati Banquets and Hotels Limited

(Group: B1, Scrip Code: 532845):

The Grand Bhagwati is situated in the outskirts of Ahmedabad. It has

35 guest rooms and 2 grand suite rooms. It also has a conference hall
with an open area of over 7,000 square foot suited for special events
like exhibitions, fashion shows, product launch, premieres etc. besides
large wedding & reception parties. In April 2007 the company came
out with an IPO to raise funds for its proposed hotel project near Surat.
The company declared a net profit of Rs.1.55 crores for the quarter
ended June 2007.

The stock’s IPO issue price was 40. There was a mixed reaction to this
IPO from the media that the valuations are stiff.

In the daily chart shown below, it can be seen that on the day of listing
it made a high of 57.35 and closed at 49.05. The stock was on a
downtrend and touched a low of 25.60 on August 6. On September 6 it
had broken its previous resistance at 39.60 and closed above it; it
continues to trade above it. The stock is likely to test its previous high
of 57.35 in short term.

http://groups.google.com/group/theindiastreet/web/BHAGWATIHO_1609
07.jpg

BOC India Limited (Group: B1, Scrip Code: 523457):

This company specializes in industrial gases production. It was

established in 1935 as Indian Oxygen and Acetylene company and
currently it is a subsidiary of BOC group, which is a pioneer in air
separation technology. BOC India produces industrial gases such as
oxygen, nitrogen, acetylene, hydrogen, carbon dioxide and special
purpose gases that are used in medical/industrial applications. The
company’s net profits were worth Rs.44.6 crores in 2006 – 07.
 http://groups.google.com/group/theindiastreet/web/BOC_160907.jpg

The stock has been hit badly in the last one year. It made a high of
242.90 on May 9, 2006. On April 3, 2007, it registered a low of 122.
This support has not yet been broken, though the stock came down to
122.05 recently. After about 4 months consolidation pattern, it had
broken its resistance at 149.90 and closed above it. The stock is
expected to target 198 in short term.

De Nora India Limited (Group: B1, Scrip Code: 590031):

The company was formerly known as Titanor Components Limited. The

Italian group De Nora has 51% stake in this company. De Nora group
has developed membrane cell technology for the chlor alkali industry.
Denora India supplies cathodic protection systems, ion exchange
membrane cell components, electrochlorination systems etc. The
company’s net profit for the quarter ended June 2007 was Rs.1.23
crores.

http://groups.google.com/group/theindiastreet/web/DENORA_160907.jp
g

Like BOC, this stock too had lost severely in the last one year. It fell
from a high of 379 in May 2006 to a low of 80.05 in March 2007. It
registered a higher low of 93 on July 30. On September 13, it broke its
previous high at 122 and closed above it with very good volumes .
There is a possible downside risk of 10 rupees for this stock. However,
it is likely to test 164 in the short term.
FDC Limited (Group: A, Scrip Code: 531599):

FDC Limited (formerly Fair Deal Corporation) is a leading

pharmaceutical company in India with more than 70 years of
operation.

Electral, a popular oral rehydration salt formulation by FDC

FDC manufactures formulations as well as active pharmaceutical

ingredients. Formulations include antibiotics, antivirals, antifungals,
oral rehydration salts, cardiovascular drugs, opthalmics etc. FDC
exports its products to over 50 countries, including advanced markets
such as the United States, United Kingdom and Japan. The company
declared a net profit of Rs.65.6 crores for the financial year 2006 – 07.

http://groups.google.com/group/theindiastreet/web/FDC_160907.jpg
This stock had made a high of 66 in December 2004. It fell to a low of
27.05 on August 22, 2007. On September 14, it broke the previous
high of 31.80 made on September 4 and closed above it with very
good volumes. This is the first bullish breakout for the stock after a
long time. The stock is expected to test its resistance at 36.80 in the
short term. It has entered the third wave in daily chart; but it is still in
the first wave in weekly chart. A correction after achieving the target
of 36.80 cannot be ruled out.
TVS Motor Company Limited (Group: A, Scrip Code: 532343):

TVS Motor Company is the third largest two-wheeler manufacturer in

India and among the top ten in the world, with an annual turnover of
over USD 650 million. TVS first rolled out the TVS 50 moped in 1980
and later TVS Suzuki motorcycle. It reported total two wheeler sales of
102,734 units in August 2007 compared to 135,533 units in August
2006. The company’s net profit for the year 2006 – 07 was Rs.77.75
crores.

TVS Apache motorcycle

Like BOC and FDC, this too was a casualty since last year. Its high was
186.50 on April 5, 2006. From this, it had fallen to a low of 51 on April
3, 2007 (a loss of 72% in one year).

http://groups.google.com/group/theindiastreet/web/TVSMOTOR_160907
.jpg
Over the last 5 months, the support at 51 has not been broken. On
September 10 the stock had broken its resistance at 72 and closed
above it with reasonably good volumes. The short term target for the
stock works out to 90.

Sundaramurthy Vadivelu

LABELS: SHORT TERM PICKS, BHAGWATI HOTEL, BOC, DE NORA, FDC,

TVS MOTOR

Suggested Reading

• 5 India Stocks You Need to Own in the Short

Term
• 5 India Stocks You Need to Own Now
• These 5 India Stocks Set to Move Up in the
Short Term
• The Top 5 Bullish Stocks for this Week
• 5 Reasons to Remain Bullish on India Stocks in
the Short Term
• Buy these 5 Stocks before the run up