SRF, Jindal Steel: Will the likely inclusion in MSCI index trigger a rally?

Shares of SBI Cards, Cholamandalam Investment, Adani Enterprises, Adani Total Gas, and Adani Tranmission surged as much as 9 per cent on the BSE on Tuesday on report that these stocks are among the 'high probability' inclusions for the MSCI Standard index in the upcoming semi-annual review of the index provider in May.
 

According to a report by IIFL Alternative Research, Jindal Steel, Voltas, SRF, Godrej Properties and Bharat Electronics are ‘medium probability’ inclusions.

Tata Motors DVR, Intellect Design and SKF India are among the stocks that may be added to the MSCI SmallCap index after the index provider does its semi-annual review next month. The review could help these stocks garner $9.2 million, $7.8 million and $7.7 million in flows, respectively, according to IIFL Alrernative Research. READ MORE

Here's how some of these stocks look on the charts

SBI Cards and Payment Services Limited (SBICARD)
 
Likely target: Rs 1,060 - Rs 1,080 (after conquering Rs 1,010)

Upside potential: 4.95% - 6.93%

The current momentum indicates the support of the 100-day moving average (DMA), placed at Rs 933 levels. Only after the breach below the Rs 900 levels, which is the major support for the upward bias, may the counter see further weakness. On the higher side, upon crossing the resistance of 50-DMA, placed at Rs 1,010 levels, the breakout may rally in the direction of Rs 1,060 to Rs 1,080 levels. CLICK HERE FOR THE CHART
 
Cholamandalam Investment and Finance Company Ltd (CHOLAFIN)

Likely target: Rs 600 - Rs 620 (After closing above Rs 580)

Upside potential: 3.45% - 6.90%

Negative divergence on the Relative Strength Index (RSI) has hampered the stock's upside sentiment. However, both momentum and strength are expected to stay have a positive bias until the counter defends the support of Rs 506 levels, which is its 50-DMA. On the upper side, a strong close above Rs 580 may lead to a breakout towards Rs 600 and Rs 620 levels, as per the daily chart. CLICK HERE FOR THE CHART
 
JINDAL STEEL & POWER (JINDALSTEL)

Likely target: Rs 402 – Rs 420

Upside potential: 3.61% - 8.25

The medium-term outlook of this stock is highly bullish with a formation of “Double Bottom”, as per the monthly chart. The steepest rally of over 30 per cent in the last seven sessions may see some profit booking, as RSI enters the overbought category. However, underneath strength to remain optimistic with the immediate support of Rs 350 levels. The current momentum is indicating a rally towards Rs 404 and Rs 420 levels. CLICK HERE FOR THE CHART
  
Voltas Ltd (VOLTAS)

Likely target: Rs 916

Downside potential: 6%

The counter is strongly resisting the 50-DMA, placed at Rs 1,011 levels. Now, as the Moving Average Convergence Divergence (MACD) has fallen below the zero line, the momentum and direction are likely to have a downward bias, as per the daily chart. The counter may rally towards Rs 916, which is its 100-DMA. CLICK HERE FOR THE CHART
 
SRF Limited (SRF)

Likely target: Rs 6100 - Rs 6,250

Upside potential: 3.74% - 6.29%

A move above Rs 5,850 level has given the stock an upward breakout by crossing the horizontal resistance.  This move is supported by MACD, which is attempting to conquer the zero line upwards. The overall trend is moving towards a new all-time high of Rs 6100 to Rs 6,250 levels, which are the immediate resistance. CLICK HERE FOR THE CHART
 
Godrej Properties Ltd (GODREJPROP)

Likely target: Consolidation range

Potential: 10% (after the breakout of consolidation on either side)

The counter is firmly trading in the moving average range of 50-DMA and 100-DMA. Unless the counter shows a strong up move above Rs 1,425 levels, which is its 50-DMA, the positive sentiment may not attract market participants. Similarly, a decisive break-down below Rs 1,345 may lead to more shorting opportunity. One can expect a rally of nearly 150-200 points after the breakout of the consolidation range. CLICK HERE FOR THE CHART
 
Bharat Electronics Limited (BEL)

Likely target: Rs 145 to Rs 150 (after conquering Rs 135)

Upside potential: 7.65% - 11.36%

After breaching the 100-DMA, the counter has shown a sharp recovery in trades. This move needs to scale 50-DMA, placed at Rs 135.50 levels. If that happens, the breakout may see Rs 145 to Rs 150 levels. The RSI has recovered after falling below 30 value, which is its oversold territory. If the upward breakout happens, the counter may see aggressive strength of the RSI, as per the daily chart. CLICK HERE FOR THE CHART