Sectorally, all indices ended in the red, with metals, realty, pharma, auto, private banks, and consumer durables losing 1-2%, signalling pervasive bearish sentiment. Broader markets underperformed, with the BSE Midcap and Smallcap indices falling 1.5% and 1%, respectively.
On to the best stock picks for 11 August, recommended by India’s leading market experts.
Two stock recommendations by MarketSmith India
Buy: Caplin Point Laboratories (Current price: ₹2,102)
- Why Caplin Point is recommended: Strong import and export position, expanding global footprint, robust manufacturing infrastructure
- Key metrics
- P/E: 27.60
- 52-week high: ₹96.86
- Volume: ₹2,641.00 crore
- Technical analysis: Reclaimed its 21-DMA on above-average volume
- Risk factors: Regulatory and compliance risk, product portfolio and R&D risk, operational and supply chain risk, and competition and pricing pressure
- Buy: ₹2,111
- Target price: ₹2,360 in two to three months
- Stop loss: ₹1,990
Buy: ITC Ltd (Current price: ₹414)
- Why ITC is recommended: Diversified business portfolio, strong brand equity and distribution network
- Key metrics
- P/E: 25.67
- 52-week high: ₹499
- Volume: ₹406.59 crore
- Technical analysis: consumption play
- Risk factors: Commodity price volatility, competitive pressure in FMCG
- Buy at: ₹410-415
- Target price: ₹450 in 2-3 months
- Stop loss: ₹399
Best phosphate industry stocks to buy, recommended by NeoTrader’s Raja Venkatraman
Madhya Bharat Agro Products Ltd (Cmp: ₹422.40)
MBAPL: Buy above ₹422 and on dips near ₹405 | Stop below ₹398 for a rise towards ₹470-490
- Why it’s recommended: Madhya Bharat Agro Products has been undergoing some consolidation, and in the last couple of days, steady buying interest has helped to curtail the bearish momentum. With demand at every decline has pushed prices ahead. Ahead of the next week, the prices have pushed beyond the median line, which spells well for the counter. The RSI has dipped into the neutral zone and is looking for a revival to push for more upside, and can be considered as a continuation of the positive sign of resumption.
- Key metrics
- P/E: 49.88
- 52-week high: ₹465
- Volume: 203.64k
- Technical analysis: Support at ₹345, resistance at ₹490
- Risk factors: Regulatory policy changes affecting the fertilizer industry, high dependence on government subsidies, volatility in raw material prices, and the impact of monsoon vagaries on agriculture.
- Buy: Above ₹422 and dips to ₹405
- Target price: ₹470-490 in 1 month
- Stop loss: ₹398
Khaitan Chemicals and Fertilizers Ltd (Cmp: ₹103.72)
KHAICHEM: Buy above ₹105 and dips to ₹99 | Stop: ₹97 | Target: ₹113-116
- Why it’s recommended: Khaitan Chemicals holds a market leadership position in single super phosphate (SSP) fertilizers, and manufactures a range of other chemicals. This counter has managed to hold above key resistance zones to head strongly higher in the latter half of the week. The pullback post its upward charge seen lately offers us an opportunity to initiate some long. With the TS line firmly inching higher since the last few days, as per Ichimoku, TS & KS lines are hinting at possible upward drift.
- Key metrics
- P/E: 25.22
- 52-week high: ₹114.28
- Volume: 10.50m
- Technical analysis: Support at ₹350; resistance at ₹500
- Risk factors: The company’s debt-to-equity ratio, price volatility for raw materials like rock phosphate and sulphuric acid, exposure to foreign exchange rate fluctuations, and government policy changes.
- Buy: CMP and dips to ₹99
- Target price: ₹113-116 in 1 month
- Stop loss: ₹97
Paradeep Phosphates Ltd (Cmp: ₹224.77)
PARADEEP: Buy CMP and dips to ₹211 | Stop: ₹205 | Target: ₹250-260
- Why it’s recommended: Paradeep Phosphates has shown strong financial performance, evidenced by robust sales and profit growth, positive operational trends, significant capacity expansion, and a strong market position in the Indian fertilizer industry. The trends have been consolidating over the past few days, and the steady price despite the market declines indicates that prices may pick up once the bullish momentum is reinstated. Consider a long at current levels.
- Key metrics
- P/E: 22.83
- 52-week high: ₹234.05
- Volume: 413.61k
- Technical analysis: Support at ₹100; resistance at ₹140
- Risk factors: Issues from rising input costs, price volatility for raw materials like rock phosphate and sulphuric acid, exposure to foreign exchange rate fluctuations, and government policy changes.
- Buy: CMP and dips to ₹211
- Target price: ₹250-260 in 1 month
- Stop loss: ₹205
Top three stock picks by Ankush Bajaj for 11 August
Sarda Energy and Minerals Ltd (Current price: ₹534.95)
Why it’s recommended: Sarda Energy and Minerals‘ daily RSI is 65, indicating steady bullish momentum. MACD is positive at 26, and ADX at 28 reflects a strengthening trend. After making a new lifetime high, the stock witnessed some profit booking and is now trading at a recent major demand zone. This zone is expected to act as strong support, potentially triggering a rebound from current levels.
Key metrics: Demand zone trading near major demand support after lifetime high
Pattern: Pullback to support within ongoing uptrend
MACD: Positive at 26
RSI: Daily RSI at 65 shows bullish bias
ADX: At 28, indicating trend strength
Technical analysis: Demand zone support suggests a bounce towards ₹610
Risk factors: A close below ₹498 would weaken the support and warrant caution
Buy at: ₹534.95
Target price: ₹610
Stop loss: ₹498
Global Health Ltd—Medanta (Current price: ₹1,423.20)
Why it’s recommended: Global Health Ltd’s daily RSI is 71, showing strong bullish strength. MACD is at 31, and ADX at 35 confirms a robust trending phase. On the daily chart, the stock has broken out of a triangle pattern — a continuation setup often leading to further upside. The breakout is supported by strong momentum indicators, making the stock poised for a move towards ₹1,540.
Key metrics: Breakout zone: Triangle breakout confirmed
Pattern: Continuation pattern indicating trend resumption
MACD: Positive at 31
RSI: Daily RSI at 71, reflecting strong buying pressure
ADX: At 35, confirming trend strength
Technical analysis: Breakout suggests further upside towards ₹1,540
Risk factors: A close below ₹1,362 would invalidate the breakout
Buy at: ₹1,423.20
Target price: ₹1,540
Stop loss: ₹1,362
Cummins India Ltd (Current price: ₹3,806.90)
Why it’s recommended: Cummins India shows strong momentum with a daily RSI at 76, MACD at 71, and ADX at 31, all confirming bullish dominance. The stochastic oscillator has also given a strong breakout above the ₹3,700 level, turning that zone into a crucial support. Sustaining above this breakout point keeps the bias positive, with potential for an upward move towards ₹3,955.
Key metrics: Breakout zone: Stochastic breakout above ₹3,700
Pattern: Momentum continuation
MACD: Strong positive at 71
RSI: Daily RSI at 76, reflecting overbought, but powerful uptrend
ADX: At 31, indicating a strong trend
Technical analysis: Sustaining above ₹3,700 supports bullish continuation towards ₹3,955
Risk factors: A close below ₹3,735 would weaken bullish momentum
Buy at: ₹3,806.90
Target price: ₹3,955
Stop loss: ₹3,735
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. Trade name: William O’Neil India Pvt. Ltd. (Sebi Registered Research Analyst Registration No.: INH000015543).
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
Ankush Bajaj is a Sebi-registered research analyst. His registration number is INH000010441.
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
