According to our market research, Indiabulls Housing Finance Ltd. and Kansai Nerolac Paints Ltd. are the best stocks for swing trading this week 10.
| Indiabulls Housing Finance Ltd. | Kansai Nerolac Paints Ltd. |
| With the help of our Swing Trading Strategies, we believe that Indiabulls Housing Finance Ltd. can rise to 60% approx from the current price in the upcoming weeks. | By utilizing our Swing Trading Strategies, we believe that Kansai Nerolac Paints Ltd. can show an upside momentum of 53% approx from the current price in the upcoming weeks. |
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Important key elements about both stocks :
| Indiabulls Housing Finance Ltd. | Kansai Nerolac Paints Ltd. |
| Indiabulls Housing Finance Ltd. has recently posted quarterly results with Sales of 2143 cr. at a Sales down growth of 9.1% from last quarter and Net profit increased by 3.96% to 303Cr. The little bit of downfall in Sales in one quarter is normal because the overall net profit growth every year is positive. | Kansai Nerolac Paints Ltd. has posted quarterly results with a Revenue growth of 4.79% to 1919Cr. and a Net Profit of 152Cr, with a growth of 28%. |
Indiabulls Housing Finance Ltd’s Net profits are also increasing. Though the company has faced an allegation in the past but its resolved now and the company is almost on its track again to make good profits. | Nerolac paints are doing well co considering its sales growth and net profits. But the stock price is still at the cheapest valuation. |
| In the future, the management has decided to change the company’s name to Sammaan Capital Limited. It has also received the NOC from the RBI(Reserve Bank of India), | It’s the best opportunity to make an entry into the stock. Eventually, the stock price will follow the net profits. |
Technically both stocks are the best fit according to our tried and tested cup with handle Swing Trading Strategy which we will discuss in the technical analysis segment of this article.
Note – The information is for education purposes only. We are not a SEBI-registered advisory. Please consult your financial advisor before trading or investing money in the stock market.
Indiabulls Housing Finance Ltd.
Having been established in 2005, Indiabulls Housing Finance Ltd is a company that offers house loans and loans secured by property. It is registered with and subject to the regulations of the National Housing Bank (NHB). It also offers residential development financing and corporate mortgage loans with lease rental discounting. With an average ticket size of Rs. 35 lakhs for urban/semi-urban loans and Rs. 25 lakhs for rural loans, the company specializes in middle-class, affordable housing loans.
Fundamentals of Indiabulls Housing Finance Ltd.
( For a better understanding of fundamentals you can visit screener.in )
| Indiabulls Housing Finance Ltd. Fundamentals |
|---|
| Market Cap – ₹ 10,299 Cr. |
| Stock P/E – 8.95 |
| Current Price – ₹ 172 |
| High / Low – ₹ 209 / 93.5 |
| Book Value – ₹ 249 |
| Debt to Equity – 2.63 |
| Return on Equity – 10 Years – 18% |
| Return on Capital Employed – 10 years – 11.5 % which is Ok. |
| Compounded Profit Growth – 10 years –-1% |
| Stock Price CAGR – 10 years – -4% which is good. |
| Institutions Shareholding Holding – 27% which is very good. |
Some fundamentals looks unconvincing but this is because of the allegation company face in past as we discussed at the start of the article. But Comany has changed its management now and ready to show tremendous gtrowth from here.
After careful analysis, we firmly believe this is one of the best stocks for swing trading this week -10 among the two we suggested above.
Technical Analysis of Indiabulls Housing Finance Ltd.
As you can see from the chart below, The Stock has made a Cup with a Handle pattern. It’s on the verge of giving a breakout. It can be early to make an entry into the stock, but we have conviction in the performance of the company. Although it’s not an advice to buy or sell stock. The information is for educational purposes only. Please do your research before investing.
( For a better understanding of charts you can visit tradingview.com )
- Entry – 204 or below
- Exit – 327
The company is posting good profits and the management has big plans for the company’s growth to take it to the next level. It can be a long-term trade but as per technical analysis, 60% can’t be achieved in the short-term horizon.
Take note – The price can go further down after the buying or move upwards depending on the market conditions. That’s how the Stock market works. The market doesn’t move continuously upwards or downwards, It always moves in a zigzag format.
Note – The information is for education purposes only. We are not a SEBI-registered advisory. Please consult your financial advisor before trading or investing money in the stock market.
Kansai Nerolac Paints Ltd.
The primary business of Kansai Nerolac Paints is the production of paints, and it dominates the industrial coatings market. It is the leader in industrial coatings is KNP
The business is a subsidiary of Kansai Paints Co. Ltd. in Japan, from which it regularly receives help and direction for raising quality standards and obtaining cutting-edge technological advancements.
With 99 sales locations, 500+ supply material suppliers, and 29,500+ satisfied clients, KNPL has a presence throughout all of India.
Fundamentals of Kansai Nerolac Paints Ltd.
( For a better understanding of fundamentals you can visit screener.in )
| Kansai Nerolac Paints Ltd. Fundamentals |
|---|
| Market Cap – ₹ 22,453 Cr. |
| Stock P/E – 34.7 |
| Current Price – ₹ 278 |
| High / Low -₹ 357 / 250 |
| Book Value – ₹ 65.7 |
| Debt to Equity – 0.06 |
| Return on Equity – 10 Years – 14% |
| Return on Capital Employed – 10 years – 20.5 % which is good. |
| Compounded Profit Growth – 10 years –8% |
| Stock Price CAGR – 10 years – 14% which is good. |
| Institutions Shareholding Holding – 17% which is Ok. |
As you can, the company’s foundation looks good. Because of that we firmly believe this is one of the best stocks for swing trading this week 10.
Technical Analysis of Kansai Nerolac Paints Ltd.
As you can see from the chart below, The Stock has wonderfully made a Cup with a Handle pattern. It started moving towards the target but lately because of the overall market condition it retraced below the buying level. So it is available at a cheaper price because the company’s performance is as good as before.
( For a better understanding of charts you can visit tradingview.com )
- Entry – 334 or below
- Exit – 420
the stock price can go further down after buying. but that doesn’t mean the company has gone bad. It’s just because of the overall market scenario. All paint & chemical company’s stocks are under pressure because of inflation. But it’s a temporary situation.
It will improve and the stock price will eventually follow. Kansai Nerolac’s profits are growing regularly, and the results are good. All these strong fundamentals will support the price to move upward. Kansai Nerlac Paints Ltd. can show an upside move of 53% to the Target of 420 soon.
Note – The information is for education purposes only. We are not a SEBI-registered advisory. Please consult your financial advisor before trading or investing money in the stock market.
Conclusion
To sum it up in short as you can see through the article, the best stocks for swing trading this week 10. Indiabulls Housing Finance Ltd and Kansai Nerlac Paints Ltd. have a great scope for short and medium-term trading. Both stocks technically and fundamentally sound good and their profit is increasing annually in the inclined direction. We urge you to grab this chance to gain good returns on your investment.
Happy Investing!!!
