Friends markets have been under relentless pressure since last many weeks and investor’s wealth have been getting eroded significantly.  Current fall is caused by mostly NBFCs, Housing Finance companies and some IT companies as well.  Let’s see what we can expect in the coming week from mid-caps.

ASM Impact:

The big news for Mid-Caps is the BSE-NSE announcing the exclusion of 111 companies from the ASM list from Tuesday 30th Oct. Remember most of the companies have fallen significantly since their inclusion in this ASM list. And most of these companies have been in this list for a very long time. Many of them were on the list for 5 months or more.

Because of stocks in ASM list, most of them have seen trading volume disappearing and traders interest in such shares were gone. These shares were not allowed to trade with margin, and the circuit was fixed at 5%. But now the margin trading will be allowed from Tuesday 30th Oct onwards. Circuit filter change has not been announced yet, so most probably all of them might remain in 5% circuit range for a couple of weeks.

So what might be the impact of this announcement? I am not an expert, but based on previous such instances Fineotex Chemicals, Venky’s and many more, we can expect fireworks in these shares on Monday and maybe for the entire week.

If global market is not extremely weak, these 111 mid-cap shares will lead the mid-cap index and pull along many other mid-caps to positive closing. Since they will be out of ASM only from Tuesday, they will have to buy with full margin on Monday. So many traders will try to garner as many shares on the opening itself. Most of the fundamentally strong companies might go in upper circuit quickly. 

In my opinion, few stocks look good for more than 20-20% gain in this week from Friday’s closing prices.

Rain Industries: Pet Coke ban issue is now past. The stock has gone into 5% circuit on Friday. But couldn’t hold it till close. Looks set for crossing 200 again this week.

Radico Khaitan: With very strong results in Q1 and Q2, the stock looks set for a solid run this week. It is one of the few companies with consumption as a theme and good brand value for its products.  It does not get impacted by rising crude or falling rupee. And in elections around the corner, things can get only better.

Associated Alcohol: This is out of ASM long back. But because of a rally in mid-caps is expected, it might also follow the uptrend and quickly cross the 300 marks again this week and has the potential to cross 325 also in coming days. Remember during elections in Madhya Pradesh, alcohol consumption will increase and this company has most of the revenues coming from this state only.

VIP Industries:  Also from consumption basket, has already run up a lot despite being in ASM. This was one of the very few shares which have created new 52 weeks high after being added in ASM list. But after that has seen a good correction. Still, traders might find this as an opportunity to push it towards new highs. But be careful, the stock price is not cheap. If trading in it. Keep booking profits.

Graphite India: It has also seen many ups and downs while in ASM for the last 5 months. The only hangover now is court case running for its Bengaluru plant. Supreme court will be hearing the case again on Monday 29th Oct. SC will determine the penalty to be imposed on the company as well. But more or less company should be ok after paying the fine. It should also perform well in this week unless any severe or unexpected punishment comes from the Supreme Court.

There are many traders favourite’s which can also show good strength because of this ASM news. Few of them, in my opinion, can give good returns on a trading point of view are: Apex Frozen Foods, Action Construction Equipment, Butterfly Gandhimathi Appliances, Den Networks, Emami Infrastructure, Globus Spirits, GM Breweries, Gujarat Ambuja Exports, Hindustan Foods, India Glycols, IOL Chemicals, V-mart retail and Weizman Ltd.

I would avoid few shares from this 111 companies. Few of them are Bombay Dying, Indiabulls Venture, Reliance Naval, Mirc Electronics, Jaypee Infratech and Alok industries.

There are many companies in this list of 111 where the company’s promoter’s management quality is not up to mark and we need to be extra careful in investing any of them.

Before you invest, anytime, keep the following points in mind:

1.       Never go overboard while buying or selling. Don’t buy with borrowed money. Never ever hold only one or two companies’ shares. We should keep our portfolio diversified across at least 10 companies from different sectors. It will help in minimizing the losses from one sector/company.

2.       Keep booking profits whenever there is 10-20-30% returns. The market is and will remain volatile for time to come and we should not be too greedy for many fold returns in one go.  

   List of securities moving out of ASM Framework w.e.f. October 30, 2018:

Sr. No. Scrip Code ISIN Name of the Company
1 532762 INE731H01025 Action Construction Equipment Ltd
2 541450 INE364U01010 Adani Green Energy Ltd
3 539254 INE931S01010 Adani Transmission Ltd
4 521070 INE270A01011 Alok Industries Ltd
5 520077 INE130C01021 Amtek Auto Ltd
6 540692 INE346W01013 Apex Frozen Foods Ltd
7 530565 INE149B01015 Archana Software Ltd
8 516064 INE570D01018 Arrow Greentech Ltd
9 540024 INE361S01010 Ashari Agencies Ltd
10 590021 INE838B01013 Bharat Rasayan Ltd
11 533321 INE607L01029 Bil Energy Systems Ltd
12 500060 INE800A01015 Birla Cable Ltd
13 500020 INE032A01023 Bombay Dyeing & Manufacturing Company Ltd
14 532678 INE589G01011 Bombay Rayon Fashions Ltd
15 540006 INE595R01015 Bullish Bonds & Holdings Ltd
16 517421 INE295F01017 Butterfly Gandhimathi Appliances Ltd
17 531595 INE180C01026 Capri Global Capital Ltd
18 511742 INE583D01011 Chokhani Securities Ltd
19 534758 INE675C01017 Cigniti Technologies Ltd
20 533137 INE947J01015 Den Networks Ltd
21 500119 INE041A01016 Dhampur Sugar Mills Ltd
22 506405 INE505A01010 Dharamsi Morarji Chemical Company Ltd
23 533218 INE778K01012 Emami Infrastructure Ltd
24 504008 INE078A01026 Emco Ltd
25 533090 INE688J01015 Excel Realty N Infra Ltd
26 502865 INE518A01013 Forbes & Company Ltd
27 539730 INE194R01017 Fredun Pharmaceuticals Ltd
28 539228 INE480S01026 Gala Global Products Ltd
29 533265 INE528K01029 Gallantt Ispat Ltd
30 532959 INE181G01025 Gammon Infrastructure Projects Ltd
31 500655 INE291A01017 Garware Polyester Ltd
32 539407 INE854S01022 Generic Engineering Construction and Projects Ltd
33 533104 INE615I01010 Globus Spirits Ltd
34 507488 INE075D01018 GM Breweries Ltd
35 509488 INE371A01025 Graphite India Ltd
36 532775 INE221H01019 GTL Infrastructure Ltd
37 524226 INE036B01022 Gujarat Ambuja Exports Ltd
38 532708 INE251H01024 GVK Power & Infrastructure Ltd
39 533162 INE982F01036 Hathway Cable & Datacom Ltd
40 519126 INE254N01018 Hindustan Foods Ltd
41 500201 INE560A01015 India Glycols Ltd
42 532960 INE274G01010 Indiabulls Ventures Ltd
43 524164 INE485C01011 IOL Chemicals & Pharmaceuticals Ltd
44 530773 INE875A01025 IVRCL Ltd
45 538539 INE075K01013 J. Taparia Projects Ltd
46 533207 INE099J01015 Jaypee Infratech Ltd
47 514034 INE187A01017 JBF Industries Ltd
48 531543 INE247D01021 Jindal Worldwide Ltd
49 532054 INE291D01011 KDDL Ltd
50 532967 INE415I01015 Kiri Industries Ltd
51 530149 INE219A01026 KSL & Industries Ltd
52 532081 INE216D01026 KSS Ltd
53 506079 INE651C01018 Lakshmi Precision Screws Ltd
54 532778 INE785C01048 Lanco Infratech Ltd
55 539207 INE122R01018 Manpasand Beverages Ltd
56 540023 INE621I01018 Millitoons Entertainment Ltd
57 500279 INE831A01028 Mirc Electronics Ltd
58 531453 INE954E01012 Mohit Industries Ltd
59 500288 INE083A01026 Morepen Laboratories Ltd
60 523160 INE599F01012 Morganite Crucible India Ltd
61 532376 INE398B01018 MRO-TEK Realty Ltd
62 532895 INE245I01016 Nagreeka Capital & Infrastructure Ltd
63 507813 INE296D01010 National Oxygen Ltd
64 513179 INE088B01015 National Steel and Agro Industries Ltd
65 532439 INE260D01016 Olectra Greentech Ltd
66 533317 INE474L01016 Omkar Speciality Chemicals Ltd
67 530381 INE742A01019 Petron Engineering Construction Ltd
68 511116 INE527B01020 Quadrant Televentures Ltd
69 532497 INE944F01028 Radico Khaitan Ltd
70 500339 INE855B01025 Rain Industries Ltd
71 523289 INE763B01013 Rama Vision Ltd
72 514223 INE410D01017 Ramgopal Polytex Ltd
73 533262 INE874I01013 Ramky Infrastructure Ltd
74 533107 INE542F01012 Reliance Naval and Engineering Ltd
75 505509 INE688D01026 Responsive Industries Ltd
76 539875 INE616F01014 RSD Finance Ltd
77 531307 INE951M01037 S R K Industries Ltd
78 523025 INE429E01023 Safari Industries India Ltd
79 538557 INE706P01020 Sai Baba Investment And Commercial Enterprises Ltd
80 526807 INE497B01018 Seamec Ltd
81 533389 INE510K01019 Shilpi Cable Technologies Ltd
82 541540 INE624Z01016 Solara Active Pharma Sciences Ltd
83 532651 INE978G01016 SPL Industries Ltd
84 530943 INE416A01036 Sri Adhikari Brothers Television Network Ltd
85 539363 INE094T01015 Sri Krishna Constructions (India) Ltd
86 536799 INE002J01027 SRS Finance Ltd
87 533569 INE219H01039 SRS Ltd
88 533305 INE953I01023 SRS Real Infrastructure Ltd
89 570005 INE224E01036 Stampede Capital Ltd - DVR
90 512299 INE324C01038 Sterling Biotech Ltd
91 508969 INE673M01029 Sulabh Engineers & Services Ltd
92 532711 INE305H01028 Sunil Hitech Engineers Ltd
93 521180 INE662A01027 Super Spinning Mills Ltd
94 530677 INE822E01011 Supreme Holdings & Hospitality (India) Ltd
95 532904 INE550H01011 Supreme Infrastructure India Ltd
96 539353 INE724G01014 Swaraj Automotives Ltd
97 533164 INE141K01013 Texmo Pipes and Products Ltd
98 540980 INE868X01014 The Yamuna Syndicate Ltd
99 500414 INE064A01026 Timex Group India Ltd
100 532812 INE804H01012 Transwarranty Finance Ltd
101 540083 INE871L01013 TV Vision Ltd
102 532513 INE236G01019 TVS Electronics Ltd
103 526957 INE493E01029 Uniply Decor Ltd
104 500254 INE292A01023 Uttam Value Steels Ltd
105 517015 INE707A01012 Vindhya Telelinks Ltd
106 507880 INE054A01027 VIP Industries Ltd
107 534976 INE665J01013 V-Mart Retail Ltd
108 523011 INE080A01014 Weizmann Ltd
109 522108 INE384C01016 Yuken India Ltd
110 533339 INE251B01027 ZEN Technologies Ltd
111 512553 INE058B01018

Zenith Exports Ltd


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