Food and food related stocks
Health Care stocks
Among above three, some food related stocks have very attractive value and strong outlook now.
Factors to watch
Low interest rate
Higher agriculture output such as rice, maize and soya output locally due to good weather
Good hydro power generation
Increased tourists numbers
Can expect rising tea prices in the coming weeks and months (it is time to follow tea price chart) Prices of Tea stocks are at the rock bottom now. In higher tea prices they can appreciate rapidly.
Lower raw materials locally as well as globally (they will go down further toward end of 2016 and 2017 in a strong USD environment.
Ability to maintain higher growth rate (over 5) annually in South Asia including Sri-Lanka.
Attractive valuation due to correction of few overvalued counters.
There are plenty of value stocks available in the market now
Stability in rupee due to rupee devaluation in advance.
It is not bad as some others think. Stock prices already have factored to few bad news. But there is some good news as highlighted above. Don’t miss some of the biggest rallies for some stocks in the market.
It is also wise to pick stocks in any sector having one of the following as well.
Stocks in the accumulation stage
Break out stocks having temporary pause (need to identify their current base)
Stock changing Weak hands to strong hands
Investors are getting in stocks
Pull back stocks ready to go up strongly
Base building stocks