Stock market is blooming because FII and domestic Investor are continuously buying stock. Everyone is assuming that country will get better government under leadership of Narendra Modi but what happen if election results are adverse. Adverse election result will adversely affect stock market & market may crash. If market crash on 16th may few midcap stocks will be badly affected we are herewith details of these stocks.
5 Midcap Stocks to sell before election result
Our first pick for profit booking is Modi Stock – Adani Enterprise. Adani Enterprise stock has given magnificent return of 87% in three months. On 5th Feb, 2014 this stock was trading on 230 Rs/- and today it is quoting price of 430 Rs/-. This group will get major benefit if Narendra modi become Prime minister. On the other if situation will not go in favor of Narendra modi this stock will observe major slash in price.
Our second midcap stock is HPCL. HPCL is oil marketing company. In last three month this stock price climbed up by 42%. On 5th Feb, 2014 this stock was trading on 239 Rs/- and today it is quoting price of 342 Rs/-. Certain rise observed in this stock due to belief that stable government will take some policy based decision for oil marketing company which will be beneficial of HPCL.
Crompton greaves is mid side company. From last three months Crompton Greaves gave 44% return to investors. This stock was trading on 117 Rs/- in February but today it is trading on 170 Rs/-. Price rise observed in this stock mainly due to investor are assuming that new stable government will work on infrastructure development.
In banking side we advise to do profit booking in OBC. Oriental bank of commerce gave return of 48% in just three months. Stock was trading on 160 Rs/- in February now trading on 241 Rs/-.
Majority of banking stock shown outperformance in ahead of election assuming that new stable government will take appropriate measures to boost economy.
NBCC is associated with construction business. In last three months NBCC stock gave return on 55%. Stock was trading on 145 Rs/- in February but today it is trading on 227 Rs/-. Rise in this stock was observed mainly due to assumption that new infrastructure project will come after formation of new stable government.
Why it is advisable to sell this stocks?
Current rally in stock market is on assumption that country will get stable government. If election result will not favor formation of stable government FII will run away from market & market will crash.
Under this circumstance midcap stock of capital goods, infrastructure and banking will be crushed by market.
It is better to clear off 50% of these stock from your portfolio so that if stock market crash affect to your portfolio is very less & if stock market blossom you still have 50% stock on hand in which you can make profit.
Do share your views on above!
Also read:- 5 stock you must buy before election result