STOCK DISCOVERY 28-AUG-2021

Based on the weekly analysis, we have found out few good stocks which can be included in your watchlist.

Placed below the analysis based on Fundamental as well as Technical Chart for traders to go through.

1. ADSL - Allied Digital Services Ltd.

FUNDAMENTAL QUICKLOOK

• Consistent Growth in Revenue YoY basis.
• Net Profit is also Steady
• Very Low Debt to Equity (0.11)
• Current RoE is 4.08% and has potential to yield more
• Recently the company has won a  6 Year Contract valued at Rs.650 cr for providing services to a US based automotive giant.

TECHNICAL CHART:

TECHNICAL VIEWPOINT:

• Placed above is the Monthly Chart of ADSL
• The stock has formed a huge W pattern and is trading near the resistance zone which seems to be broken in coming trading sessions.
• In case it breaks the next immediate target looks like 250.
• The change of breaking the W pattern resistance is very high because there is a news mentioned in the fundamental section of this blog.

Stock Discovery 21-Aug-2021

The below stocks look good as per Weekly Chart Analysis.

1. FIEM Industries Ltd. 

Symbol: FIEMIND

Segment: Manufacturer of Automotive Lighting and signaling equipments for 2 and 4 wheelers

• Good Quarterly Growth during recent quarters
• Revenue growth is Steady registering 1221 Cr as of Mar-2021
• Net Profit was Rs.46 Cr in Mar-2021. The figure was Rs. 78 Cr in Mar-2020. The decline is mainly due to Covid Pandemic.
• The company has very low Debt to Equity i.e. 0.08

Recently there is a news in the Business Standards about the company FIEM Industries Ltd. becoming the sole supplier of headlamps, tail lamps, indicators, rear fender assemblies and mirrors for Ola Electric's newly launched scooters.

It has potential to touch 1500 mark, if it crosses its immediate resistance of 1000.

Technical Chart (Weekly): FIEMIND

2. MPS Ltd. 

Symbol: MPSL

Segment: Deals with Publishing solutions, data digitization and activities related to books, journals yellow page advertising, etc.

• Good Quarterly Growth during recent quarters
• Revenue growth is Steady registering 422 Cr as of Mar-2021
• Net Profit was Rs.58 Cr in Mar-2021 and maintains steady profit since 2017 onwards.
• The company has zero debt to equity.
• Volume has been increasing during the past few weeks.
• Has got potential to reach 1100.

Technical Chart (Weekly): MPSL

StockSense

Way to Stock Market

We can find a number of stocks listed in a stock market. Choosing an appropriate stock that too, at an appropriate time, out of those huge number of stocks, is really a herculean task.

Retail novice traders normally randomly pick a stock by hearing some news or getting tips through SMS or on social medias. Beginners, who have actually gathered some knowledge on stock market through books or attending seminars or trainings on stock market, also pick the stocks based on their limited knowledge. Some people take the trade based on news and some people take it on the basis of technical chart analysis. Some people also put random amounts on stocks they buy. With limited knowledge and temperament on stock market, the retail investors or traders use to fail in the long run.

Some trainers say Fundamental Knowledge is a must and some say only Technical Chart Analysis is good enough for one’s sustenance in the stock market. So, the question is what knowledge is required for a person to be successful in stock market.

Before deciding on the knowledge area, one should know about different type of activities available in a stock market which a normal retail person takes chance on it. They are:

Stock Market Activities:

• Short Term - called as Trading (Buying and Selling happens for a limited period may be in a day or few days or weeks).
• Intraday
• Swing
• Investing (Longer Term) - Called as Investing (Holding a stock for a reasonably higher period of time may be more than 6 months to many years).

In each of the above area there are again different types of segments one can deal. They are:

• Cash - One can buy 1 to any number of quantities of any stock.
• Futures - Not all but only specific stocks are traded in this market and buy or sell happens on the lot size.
• Options - Option trading deals with the trading of contracts and not the actual stocks. This is allowed only on the stocks which operate in Futures market and buy sell of the contracts happen only on lots.

People who are successful in stock market do the above activities which suits to their personalities. Some are comfortable with Cash and some trade in Futures and Options (FNO) segments. Some do day trading and some prefer long term investments. 

Technical charts may be referred to when one trades for a short time period but when the question comes about long term investment, then Fundamental knowledge is very much required.

We will publish insights on the related topics in our coming publications.

Thanks for reading.