My stock choices for investment this Diwali

More than the new year or the financial year, traders in the stock market consider Diwali to be the beginning of their investment year. If you look at the performance over the last Samvat to this one we will see that the Sensex and Nifty have given about 10 % returns whereas the mid cap and the small cap index have given returns in excess of 20 %.

How will things work out for the next one year? From all indications the following outcomes are quite probable, with the normal caveat of all market projections being a hazardous game at the best of times:-

  • Nifty will probably be choppy through the year and end up with about a 7-8% gains from the current levels. 9500 will be a great level to achieve, I do not see Nifty crossing 10000 in 2017.
  • Mid caps are doing quite well now and will face a correction. Unlike in 2016, the next year will be the one where large caps will probably do better than mid caps.
  • Small cap index will continue to do well and will be the best performer.

Which stocks will be worth buying this Diwali with a hope of gaining at least 30 % and above in the next 12-18 months? I have been following a few of the good analysts and traders to understand what they are recommending and why. Based on that here are some of the stocks which are likely to do rather well. Make sure you do your own learning before you invest in any of these.

  • Kingfa Science
  • Rajratan Global wires
  • Cineline India
  • Jayant Agro
  • EPC Industries
  • Praj Industries
  • BEL
  • Vindhya Telelinks
  • CARE
  • Sadbhav Engg
  • ILFS Transportation
  • UCAL Fuel
  • KEC International
  • INOX Leisure
  • Indo National
  • Umang Dairy

While I have a few of these stocks I am planning to add some of these to the extent of 3-4 lacs between now and end of year, based on the right pricing levels. The idea will be to see if the investment can give an XIRR of about 18-24 % and double in the next 3-4 years. I plan to use the amount for a family vacation outside India for all 4 of us.

How do I know that such returns will be there? Well, I do not really but having looked at these stocks closely, it does seem to me that these companies will definitely have great chances of growth in the next few years.

MF managers are not yet into some of them, so go ahead and grab your chance while these are still reasonably priced. Wishing all my readers a very happy and prosperous Diwali.

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7 thoughts on “My stock choices for investment this Diwali

  1. Closer to general elections, GST implementation, US interest rate cycle, do not expect stocks to do well. Keep an eye on how newly listed stocks of 2016 perform for possible picks.

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  2. Hi Sir…….Thanks for you Diwali Gift!

    I have some questions :

    BEL means Bharat Electronics Ltd ?

    CARE means Credit Analysis & Research Limited?

    ILFS Transportation means IL&FS Transportation Networks Ltd?

    should we opt DMA 200 approach for reasonable price?

    Which blogs/websites/channals/sources should we follow to gather this kind of information? So that we can prepare and fish ourself in future?

    Thanks,
    K C Rana

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    • Yes the stock names given by you are correct. The DMA approach is best, you can get the values from some websites. I will check and let you know. However, if Nifty comes down to 8500 and below start buying anyway.

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  3. Thanks for your recommendations.

    Have you starting accumulating or waiting for nifty to be around 8000?
    What should be the investment ratio in the above stocks?
    And any recommendations for mid – large cap stocks?

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