MODEL PORTFOLIO 2019
-By Ishank Ravi | TheLearnEarn | 07/01/2019



Indian market is going to witness the highest volatility this year taking into the consideration some of the most important events lined up like budget and election we need to invest smartly and to do so we need to build a model portfolio. But the question arises what are those important things we need to look for before constructing a model portfolio. So the answer is very easy and there is nothing to worry about it because if we go for a Portfolio allocation technique everything will be taken care of. This technique broadly focuses on picking the right stock at right time at right price and allocating the fund accordingly.
Let me make it very clear all findings are based on my personal views regarding the company future performances including fundamental analysis, technical analysis and recent press release by the company.
And now the question arises which are those top Stocks for 2019 which will be a part of our model portfolio.

1.  MARUTI - India’s largest car manufacturer Maruti Suzuki India faced sharp fall in the first two treading session of the year due to the weak December sale report which was 1.3% decline in sales at 128338 units in December as compared to previous year December which was up 1.8% at 130066 units. The price fell from Rs.7465.50 which was the closing price for 31st Dec 2018 to Rs.7267.85 on 02nd Jan 2019 so the total fall was of Rs.197.65. Buy call should be initiated on the support levels at Rs.7200 (S1) Rs.7050 (S2) Rs.6600 (S3). And profit can be booked around Rs.9500-9900 levels which can be seen in next 8-10 months.
 
2.     INFOSYS (INFY) – Infosys is one of the major player in IT space for India markets. This IT major has reported a strong result in the quarter ended 30th Sep 2018 the company has reported up 7.74 % from last quarter Sales up 17.32 % from last year in the same quarter. Company has reported net profit after tax of Rs. 4110.00 Cr. in latest quarter.
     From a recent press release it was found that major IT firms will generate more revenue than even before from outsourcing deals signed in 2018 and Infosys will be the beneficiary of such deals. Let us focus on the important support levels which are Rs.643 (S1) and Rs.620 (S2) and profits can be booked around upper resistance which is Rs.750 in a 6-8 month’s time frame.

Infosys is about to announce its Q3 earnings on 11th of January2019 in a common press conference which is scheduled at 4:45 PM which is post market.

3.    PIDILITE- India based adhesive manufacturing company which has a monopoly in this segment is one of our favorite stock to watch for. Pidilite is something which is connected to every individual throughout his life, major reason to recommend this stock is because it owns the largest market share and it is in such an industry that has nothing to do with the external factors. The company has shown a positive view for the coming quarter earnings.
Major support points for Pidilite are Rs.1030 (S1) Rs.997 (S2) Rs.913 (S3) Profit booking can be made around Rs.1200 levels.

4.    INDUSIND-  Another great pick will be Indusind bank. Indusind bank has the capacity to be one of the most successful private sector banks in next 2-3 years. Looking at the standalone September 2018 Net Interest Income (NII) at Rs.2203 Cr. which is 20.99% up on Q-o-Q basis which is positive for investment purpose.
       After the sharp fall from Rs.1820 levels now it is range bound and taking a support at Rs.1550 levels. Break out can be observed above Rs.1600 we can initiate a buy position above Rs.1610 levels for a decent target of  Rs.2025. Important levels will be Rs.1825 (R1) Rs.1905 (R2) and Rs.2025.
09th Jan will be a crucial date as Oct-Dec Q result will be declared and will decide its trend accordingly.

5.    Bombay Stock Exchange Ltd. (BSE) - BSE is the 10th largest Stock Exchange in the entire world its current market capitalization is Rs.3119.40 Cr. This stock is one of my personal favorite just because of the promoters holding and the business model.
     BSE is the only listed stock exchange in India.  it has a good track record in terms of dividend declaration, most Importantly Bombay Stock Exchange has witnessed a sharp correction in the share prices from Rs.962 level to Rs.600 levels which is 37.6 2% fall within 1 year but even after such a huge fall in the share prices stock has been able to hold a support at Rs.600 levels, Such fall can be used to pick right stock at discounted price.
     Important support Level is at Rs.600 and potential up side can be seen around Rs.780 (R1) Rs.885 (R2) and Rs.960 (R3). Duration of investment 12- 15 months     

 For SIP and Mutual funds related information do read my previous blog

Top 5 Mutual funds for SIP in 2019

           



Disclaimer- The views expressed are based solely on information available publicly and believed to be true. Investors are advised to independently evaluate the market conditions/risks involved before making any investment decision.
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