Friday’s closing bell witnessed a positive finish, with lesser intra-day losses when looking at the broader market. The Nifty advanced by 0.22%, settling at 25,461, and the Sensex toppled it with a 0.23% rise, ending at 83,433. This upward momentum was primarily carried by the financial, real estate, and FMCG sectors. Oil & gas and realty sectors managed to seize the headlines as the best performers, while the metals sector took the rear, underperforming the rest.
The India VIX, volatile index, demonstrated a placid climate in the market with its 9-month low. However, the overall market wasn’t so consistent on a weekly basis, as the Nifty experienced a slight setback, dipping by 0.69%. The market sentiment was guarded, hinting at investor prudence due to impending Q1 results and geopolitical instability.
Shifting our focus to individual stocks, three paper stocks appear notably attractive. WSTCSTPAPR, with a current market price (cmp) of 563.15, is recommended for purchase above ?565 or when it dips near the ?533 mark. The safeguard here is a stop below ?520, and the anticipated upward bounce could be towards ?615 – ?635.
There has been a noticeable uplift in WSTCSTPAPR recently, owing to constant purchases. This strong surge indicates a potential continuation of the upward trend, with the sector experiencing a consistent inflow of buyers. The Relational Strength Index (RSI) maintains its positive outlook on the stock, suggestive of more upside.
The spotlight also falls on JKPAPER (Cmp 406.30). It is advised to buy it above ?407 and during dips around ?380, maintaining a stop below ?365. The price target range is estimated to fall between ?450 and ?470.
Paper stocks, in general, have been inviting increased interest, outperforming over the past few months. JKPAPER, in particular, has successfully sustained crucial support zones around 380, and the stock price has rebounded effectively above the immediate support levels, gaining robust momentum during the week’s latter half.
PDMJEPAPER is another paper stock to consider. With a current market price of 121.42, it is suggested to buy at the current market price and during dives to ?113, with a stop at ?111. The price target for this stock stands between ?134 to ?140.
The trends in PDMJEPAPER indicate a promising future. Marked by consistent peaks and valleys, it insinuates a positive movement in the time ahead. The presence of the Cup and Handle pattern over the past several weeks also anticipates a potential upward trend.
Taking a glance at other sectors, two stocks come up as interesting options for the day – Castrol India Ltd and GAIL (India) Ltd.
Castrol India Limited, a key player in the industrial and automotive lubricants segment, enjoys a considerable market share of over 20% in the Indian lubricant market. A part of Castrol Limited from the BP Group, it stands tall as one of the leading domestic manufacturers.
The company boasts three blending facilities and an extensive distribution network that spans across more than 150,000 retail outlets in India. Its prominence in its sector rightly designates it as an option worth considering.
GAIL (India) Limited, a Maharatna PSU, has a myriad of operations under its wing. Established in 1984, it is the unrivaled natural gas front-runner in India today, with trading, transportation, Liquefied Natural Gas (LNG) re-gasification, petrochemicals, city gas, exploration, and LPG production under its belt.
GAIL commands a 50% market share in gas trading, 70% in gas transport, and a 15% domestic market share in polyethylene related to petrochemicals. It is an operationally integral part of India’s natural gas pipeline network, managing a colossal stretch of around 16,420 kilometers.
The giant also operates five robust processing plants, with an impressive production capacity of 1.4 MMTPA. Further, it has a commendable transmission capacity of 4.58 MMTPA for LPG. These substantial figures, along with its proud standing in the industry, make it a prolific candidate for consideration.