Mid-Cap Picks With Anil Singhvi: In yet another stock recommendation, market expert Rajat Bose today picked a company which manufactures speciality chemicals. This stock should be bought with a long term view. Bose revealed why this stock got a buy recommendation to Zee Business Managing Editor Anil Singhvi and reason behind his belief that it will give fabulous returns to investors. 

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Top Stocks To Buy: Rain Industries 

Bose today picked Rain Industries as has his long term buy. The company produces calcined petroleum coke – a material used in the aluminium industries. This stock is currently trading around Rs 116. This stock was riding on a high, probably two years back. It then saw correction primarily due to a Supreme Court decision on calcined pet coke. Now that order is removed and this material can be used in India. Many foreign investors still continue to hold shares in the company.  

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This stocks is undergoing a base formation, the technical analyst said. Rain Industries has the potential to give high returns with a long term investment perspective. He puts the stop loss at Rs 75 on the closing basis while his target is Rs 200-Rs 230 with a 1 year view. It is a strong small cap counter, he said adding that he considered companies with market capitalisation between Rs 500 cr and Rs 5000 cr as small cap stocks.

It is poised to show good movement according to the chart formations. The chart formation indicates an inverted saucer pattern which will take the stock towards the upper levels, he added. He further said that this stock could even go beyond the Rs 230 price if held for a longer period. 

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Rain Industries manufactures calcined petroleum coke, coal tar pitch and other basic and specialty chemicals. While, the annual production capacity for calcined petroleum coke stands at 2.1 million tons, the tar distillation capacity is around 1.5 million tons, as per the information present on company website.