The stock market remains relatively stable, with Sensex trading at 66,450 and Nifty at 19,800.
In just two days, Nifty witnessed a 300-point increase, rising from 19,500 to 19,800, but some profit-taking is evident at this level.
Global market signals are positive, and the Israeli conflict hasn’t had a significant impact so far.
Short-Term Investment Picks by Vikas Sethi
In the current market, Vikas Sethi of Sethi Finmart recommends short-term investments in KPR Mills and NELCO. Here’s the investment strategy for each:
KPR Mills
Experts favor KPR Mills for short-term investors. The stock has surged by over 4%, reaching Rs 755. KPR Mills is a textile company, and the short-term target price is Rs 780, with a stop loss at Rs 730. Monthly returns show a slight decline of 1.5%.
Textile Stocks to Benefit from Free Trade Agreement
Textile stocks are in the spotlight due to the expected benefits from a free trade agreement. KPR Mills, apart from textiles, is also involved in sugar, ethanol, power, and captive mines.
The company boasts strong fundamentals, with an operating profit margin of 20%, a return on equity of around 22%,
and a return on capital employed at 27%. Foreign institutional investors (FII) and domestic institutional investors (DII) have substantial stakes, and the company carries minimal debt.
NELCO
The second choice is NELCO, currently priced at Rs 795 with a 1.3% increase. NELCO, a Tata Group company with a 50% stake held by Tata Power, offers satellite-based communication solutions to banks and serves the oil, energy, gas, and defense sectors.
The company stands to benefit from the Make in India initiative, and its flight communication services are expected to gain traction in the near future.
The target price is set at Rs 830, with a stop loss at Rs 775. Over the past month, NELCO hasn’t yielded returns, and it has shown negative returns of approximately 6% over three months.
