1. 3 stocks to buy for short-term after Brexit

3 stocks to buy for short-term after Brexit

Brexit is behind us, the mandate is out and the markets are back to where it was.

By: | Published: June 30, 2016 12:48 PM
BSE Sensex, NSE Nifty, stocks to buy, brexit 3 stocks to buy for short-term after Brexit (Reuters)

Brexit is behind us, the mandate is out and the markets are back to where it was. We are pleasantly surprised by the way the Indian markets panned out. There was no excessive panic sale in the market, in fact this makes us believe the markets are poised for another leg up.

3 short-term stock picks:

TCS – Technology stocks, especially large and well capitalised companies like TCS were under pressure concerning the Brexit issue. Delayed IT spends plus earnings concerns weighed down heavily on these stocks. However, we think this is an overreaction to the event. Also, TCS is close to its 100 day average, and we do expect market participants to buy in the stock here. Considering these factors, we expect TCS to bounce back over the next few days.

South India Paper Mills Limited – The stock has been hitting the upper circuit regularly, and has steadily gained momentum over the last two weeks. The volumes too seem to be quite impressive suggesting an institution activity in the scrip. We expect the momentum to continue over the next few trading sessions. One can buy the stock based on the strength showcased, keeping Rs 135 as a stoploss.

Bata India Limited – After a decline of nearly 15 per cent, market participants are finally buying Bata India Limited. The stock has rebounded from its 100 day moving average of Rs 520, and is now trading at Rs 540. We expect this momentum to continue over the next few trading sessions. One can look at buying the stock at its current market price with a stoploss of Rs 515. We expect the stock to scale back to its recent high of Rs 595.

(The author is VP, education services at Zerodha)

  1. ShortTermPicks
    Jan 24, 2017 at 8:49 am
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