Trading Inputs From Experts For Next 3 To 4 Weeks As Bulls Hold
The outlook for interest rates, inflation, and a global recession is expected to remain low as the market begins a new week. But even with a softer outlook, stocks are still reasonably priced. One stock that’s currently cheap is JSW Steel. Another is Oshkosh, a great bet for investors. But don’t get too excited just yet. This article reveals some trading ideas from experts for the next three to four weeks as the bulls hold.
Stocks Should Be Priced At Rs 1,125-1,115
The stock is forming an inverted head and shoulders pattern on the weekly charts, with a possible retest of the recent highs. On the chart, RSI is indicating positive momentum, and the stock has broken out above its recent support. This suggests that a bigger uptrend could be in the works. The stock has also broken through its recent support at the weekly 20 EMA, so buying at that level could be a smart move.
In terms of trend, analysts have been recommending buying in the Rs 3,180-3,220 range. This suggests that the stock is ready to break out of its recent lows, which correspond to the intermediate lows of September 2020. In addition, the 14-day RSI is currently rising, suggesting that there is a chance of further upside from current levels. For example, the stock of Sobha has been forming a cup-and-handle pattern. The stock has recently broken out of the pattern and is positioned to resume its uptrend.
While many economists lowered their economic outlooks in recent months, analysts were more optimistic about the future. They cite the invasion of Russia in Ukraine as one of the reasons that prices of global benchmark Brent crude oil will reach $140 per barrel in Q1 2022. Oil prices are on the rise, but energy stocks are trading at a discount. While the technology sector has been in a bull market for many years, investors might prefer a slower pace this time around.
JSW Steel Has Recovered Smartly From Swing Lows
Shares of JSW Steel have rebounded from recent swing lows, breaking out of falling trendline resistance. RSI oscillator is hinting at a positive momentum, indicating that the stock is on an uptrend. In the short term, the stock is likely to continue the uptrend. Traders can buy the stock at Rs 685-680, setting a stop-loss below Rs 655 to avoid a loss. The potential target is around Rs 725.
While JSWS’s standalone and consolidated EBITDA increased by 31% and 40%, the company’s margins narrowed compared to its peers. The company’s standalone EBITDA/tonne margin increased by 40%, helped by a rebound in global steel prices. While analysts expect the steel margin to narrow further to USD140/t by FY23, JSWS reported a 40% year-over-year increase in consolidated EBITDA/tonne in its 9MFY21 quarter.
In recent months, the company has made several strategic acquisitions. It has formed a joint venture in Georgia with JFE Steel Corp. of Japan to establish a steel plant there. In addition, JSW Steel has acquired mining assets in the United States and Mozambique. These investments should provide additional growth opportunities to the company. Its recent acquisitions include Welspun Maxsteel Ltd (WEL) for 1,000 Crores.
Alibaba Shares Are Cheap
After nearly two years of selling off, Alibaba shares have retreated further in the last three to four weeks. The reason for this steep drop is a speech given by Jack Ma to the most powerful economic policymakers in China at a high-profile financial conference. In the speech, Jack Ma criticized central government regulators for being risk averse and stifling innovation and growth. Investors should not let this speech fool them into thinking that Alibaba is going to fall, but it’s far too early to call the end of the company’s rally.
Despite this recent move, Alibaba shares have remained relatively cheap in recent days. Many investors believe that the company’s reversal in fortune suggests it is a good time to buy the stock. Warren Buffett, whose personal fortune is nearly $240 billion, has also urged investors to get in on the action by purchasing Alibaba. Despite the company’s recent turmoil, the stock remains at a strong value for the next three to four weeks.
In addition, Chinese e-commerce growth is slowing, causing Alibaba’s shares to fall by about 65%. Alibaba’s stock has suffered from regulatory hurdles in China and the end of the e-commerce tailwind. However, the company’s business fundamentals remain solid and Wall Street analysts are very bullish on the stock. Only one analyst has a sell recommendation on the stock, while all the rest hold a strong buy stance.
While the Chinese tech equity market is in free fall, Alibaba’s stock remains a good investment. Shares of Alibaba fell 7% yesterday, but the S&P 500 closed green. China is also looking to regulate the internet, which will crimp profit potential in the future. That’s a recipe for disaster. Nevertheless, this market is in a unique position.
Oshkosh Is A Solid Bet For Investors
Oshkosh is a leader in heavy-duty electric vehicles. President Biden scaled back his green ambitions in the social spending bill, but renewable energy is a key policy priority. The Biden administration recently awarded a contract to Oshkosh to update the mail truck fleet. This contract is for new electric trucks. If the Biden administration sticks with its plan, Oshkosh could be the best stock to buy in the next three to four weeks.
LHC Group Is A Solid Bet For Investors
LHC is well positioned for growth with its partnerships with local hospitals. Partnerships give LHC access to large referral sources without hurting its margins. Most of the company’s patient base is on Medicare, which means its margins are not hurt by its partnership with a hospital. In addition, LHC has a low employee turnover rate, which speaks to its operational excellence.
LHC Group, Inc. (LHC) is a provider of post-acute care services. Its service segments include home health agencies, community-based services, and hospices. Hospices provide end-of-life care for patients through interdisciplinary teams of physicians and nurses.
LHC’s recent announcement of a partnership with SCP Health will vastly increase its SNF@Home programs. The merger combines LHC’s home health workforce with SCP’s 7,500 physician team. This move will help LHC capitalize on its existing hospital partnerships and leverage Optum’s scale to deliver value-based care to patients. This move will disrupt the traditional hospital-based model of care delivery.
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