Kerbside
The recommendations provided in this column are taken from various market sources such as brokers, analysts, dealers and investment strategists, etc. These recommendations may not be backed by strong fundamentals. Therefore we advise readers to use their own discretion before investing in these recommendation.
KEEPING GOOD HEALTH
Cadila Healthcare BSE Code: 532321 CMP: Rs.278.80
Cadila Healthcare is one of India’s leading integrated pharmaceutical companies. It manufactures finished dosage forms, active pharmaceutical ingredients, animal healthcare products and wellness products. As per one of our sources, the stock is being accumulated by a group of high net worth individuals (HNIs). Dealers from leading brokerage firms when asked about the order flow in this stock suggest sudden interest in this counter with an aggressive demand. On further researching we found out that the company is developing a drug which may help to cure the virus and this could lead to re-rating of the stock. Hence, aggressive traders can look into this stock for short-term gains.
SPURRED BY GOOD DEMAND
Nestle India BSE Code: 500790 CMP: Rs.13555.40
FCMG is one of the sectors which in the current market mayhem have performed better vis-à-vis Nifty. Nestle India, the makers of Maggi instant noodles, is witnessing buying orders on the dealer desk by HNIs and informed market participants. According to our sources, FMCG majors are ramping up production to meet a steep rise in demand as the general public are indulging in panic buying amidst the Covid-19 lockdown. Though temporary, this marks a reversal from the blip witnessed earlier in the FMCG market.
BLACK GOLD
Coal India BSE Code: 533278 CMP: Rs.128.30
The rapidly spreading Covid- 19 pandemic has led to heightened worries of a slowdown and sharp downfall in economy. Under such circumstances, market investors and specialists are likely to invest in stocks which are known for a high dividend payout. Coal India is one of the world’s largest explorers of coal mines and a ‘Maharatna’ PSU. The stock is quoting at 52-week low and becomes extremely attractive. Also, if we see the track record of the dividend yield of the company, this stock certainly calls for attention in an otherwise scary market.
REPUTATION COUNTS!
Divis Laboratories BSE Code: 532488 CMP: Rs.1919.85
Divi Laboratories is recognised as one of the top API manufacturers in the world. It is a leading producer of active pharmaceutical ingredients, intermediates and registered starting materials offering high-quality products with the highest level of compliance and integrity to over 95 countries. The stock is technically showing signs of rebound as the histogram suggesting downward momentum is waning. The RSI is also bouncing and has reached near the 50s level. Among all the sectors, pharmaceuticals is outperforming, expecting the dollar revenues to improve. Last week’s volumes are highest since June 2019. This indicates interest in the stock. One can look at this stock on the buy side with a stop-loss.
(Closing price as of Mar 24, 2020)