Thursday, 27 July 2017

Indiabulls Real comes out of F&O ban, soars 9%; CLSA initiates coverage with buy call

The brokerage has a buy call on the stock with a target of Rs 282.

NSE STOCK TRADING TIPSShares of Indiabulls Real Estate rose nearly 9 percent intraday on Thursday as investors cheered a ratings initiation on the stock.

While the stock rallied post its removal from the F&O ban, CLSA too initiated coverage on the stock with a buy rating and a target price of Rs 282.

CLSA said that the portfolio shift towards office income should double the lease income over the next five years.

The company, the brokerage added, will complete 20 msf of ongoing residential development projects over 3-4 years. FREE TRAILS TIPS

The recent steps for reorganization should lead to value discovery, it added.

The stock has multiple triggers to gain 50 percent over the next two years.

The scrip has gained over 15 percent in the past one month, while its three-day gain stood at over 10 percent. At 09:21 hrs Indiabulls Real Estate was quoting at Rs 238.00, up Rs 14.00, or 6.25 percent on the BSE. It touched a 52-week high of Rs 244.50.
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Wednesday, 26 July 2017

Nifty likely to close above 10,000 in July series; 5 stocks which can give up to 14% return

There has been aggressive put writing in near strikes with 9900 strike holds the maximum put open interest indicating strong support zone.

SMC Global

 INTRADAY FREE TIPSThe Nifty is moving up and has been making new highs on regular basis with a decent addition in open interest (OI) which indicates the strength in the current trend.

The Option writers were active last week as we have seen Put writing in 9900, 9800, 9700 strikes and unwinding in calls. The foreign institutional investors (FII’s) options data also indicates fresh buying in index calls (9900, 10000 strikes).

Moreover, from derivative data, it is quite possible that Nifty may expire above 10,000 levels in the current series. As in the recent past, we have seen aggressive put writing in near strikes with 9900 strike holds the maximum put open interest indicating strong support zone.

On Tuesday, Call writers were unwinding call short position which once again indicates the possibility of upside before expiry. On the technical front, 9920-9930 spot levels are strong support zone and the current trend is likely to continue towards 10,050-10,100.

Top five stocks which can give up to 14% return in the short term:

Bharat Wire Ropes: BUY| Target Rs120| Stop Loss Rs97| Upside 14%

The stock has been consolidating in the broader range of Rs110-90 from the last 4-5 months. However, in the recent sessions buying interest has been once again seen in the stock with marginally higher volumes. INTRADAY FREE TIPS

Alongside, it is trading well above its short and long term moving averages. Moreover, on the daily charts, it has made a bullish flag formation and is on verge of upside breakout.

Traders can accumulate the stock in a range of Rs108-105 for the target of Rs120 with a stop loss below Rs97.

Raymond: BUY| Target Rs890| Stop Loss Rs750| Upside 11%

After giving sharp rise from Rs700 to Rs820 levels, the stock went into consolidation phase and traded in a narrow range of Rs775-820.

On daily charts, it has formed bullish flag formation and is on verge of giving a breakout. In addition, the positive divergence in RSI indicator supports the prices for next up move going forward.

Traders can accumulate the stock in a range of Rs810-800 for the target of Rs890 with a stop loss below Rs750.

Strides Shasun: BUY| Target Rs1,215| Stop Loss Rs1,000| Upside 13%

Smart recovery has been seen in the stock from lower levels after testing 900 levels on the downside. Currently, the scrip is trading well above its 200-days EMA and has given symmetrical triangle breakout above Rs1050 levels.

The consistent volumes along with the rise in price suggest that the recovery should remain sustainable going forward. So, traders can accumulate the stock in a range of 1085-1075 for the target of 1215 with a stop loss below 1000.

Federal Bank: BUY| Target Rs130| Stop Loss Rs110| Upside 11%

The stock has been consolidating in the range of Rs110-120 from last one month. In past few sessions once again rise in price has been seen along with hefty volumes.

On the weekly charts, it has formed ascending triangle formation in an uptrend which is considered as a bullish signal for the scrip going forward.

Traders can accumulate the stock in a range of Rs120-117 for the target of 130 with a stop loss below 110.

Pidilite Industries: BUY| Target Rs905| Stop Loss Rs780| Upside 10%

After taking support at its 200-days EMA on the weekly charts, the stock has been consistently maintaining its uptrend and making higher highs and higher lows.

In the recent week, once again, the stock has given a sharp upside and is on the verge of giving breakout above its five-week consolidation range.

Moreover, on the daily charts, it has formed a diamond pattern and giving upside breakout. Traders can accumulate the stock in a range of Rs830-820 for the target of Rs905 with a stop loss below Rs780.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol are their own, and not that of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decision.

Tuesday, 25 July 2017

HDFC Bank is on course to become $100 billion Market Cap Company: Goldman Sachs

Goldman Sachs reiterates buy and has a target price of Rs 2,028 which represents 17 percent upside potential

NSE stock tips Following a strong operating performance in the June quarter numbers, Goldman Sachs expects HDFC Bank to continue its out-performance compared to the Bankex and is on track to hit a market cap of $100 billion by FY20.

“We think the stock’s premium valuation can be sustained given high visibility into strong earnings growth from (1) market share gains and rising penetration in retail lending,” said the report.

Also, robust lending profitability (on loan mix and CASA franchise) and fee income growth along with improving branch and employee productivity are some factors which will augur well for the private sector lender. free intraday tips

Goldman Sachs reiterates buy and has a target price of Rs 2,028 which represents 17 percent upside potential. “We see HDFC Bank market cap rising to above US$100bn by FY20 on the back of a 23 percent FY17-21E EPS CAGR,” it said.

The Loan growth accelerated to a six-quarter high of 23 percent on a YoY basis or 5 percent on a QoQ basis on continued market share gains.

The growth in products such as personal loans/credit cards/business banking remained strong (37%-58% yoyYoY).

Operating performance was healthy due to (1) improving NIMs (up 10bps YoY), (2) strong growth in fee income (30%; c.20% ex-one-offs), and (3) lower cost to income ratio (350bps YoY).

However, in the June quarter, the asset quality of HDFC Bank saw a blip with a higher slippage ratio of 2.6 percent, elevated due to farm loan waivers (with 60% of the QoQ increase due to agriculture, on which HDBK prudently made 50% provisions), said the Goldman Sachs report.

Monday, 24 July 2017

ITC gains 2% on price hike of Gold Flake Kings, Classic Rich, Navy Cut cigarettes

ITC hiked Gold Flake Kings and Classic Rich prices to Rs 300 per 20 pack each while Navy Cut Filter price increased to Rs 188 per 20 pack.

INTRADAY TRADING TIPSITC shares gained as much as 2.4 percent in morning trade Monday as the cigarette major hiked select product prices following GST Council hiked cess to pre-GST level.

The company increased cigarette prices of its three brands effective July 18, reports CNBC-TV18 quoting sources of Cogencis.

It hiked Gold Flake Kings and Classic Rich prices to Rs 300 per 20 pack each while Navy Cut Filter price increased to Rs 188 per 20 pack.

Macquarie also said based on its channel checks with several distributors, ITC has taken price hikes to compensate for higher cess in the GST regime.

According to the brokerage firm, the 84mm segment (Gold Flake Kings and Classic) price increase is of 7 percent to Rs 15 per stick. In 69mm segment, the price increase in Gold Flake franchise is 6-11 percent. In the 64mm segment, the price increase in Gold Flake Superstar and Gold Flake Century is around 9 percent. For other 64mm brands, while Bristol saw price increase of 20 percent (to Rs 6/stick), Capstan saw no price increase.

The price hike is taken across significant part of the portfolio keeping the coinage factor and competitive intensity in mind, it said. FREE INTRADAY STOCK TIPS

The weighted average price hike is around 7-8 percent, which the research believes will compensate for increase in cess.

"While, the price hike will help ITC to maintain its realisation per stick, we believe it will put pressure on the volume," Macquarie said.

It further said, "We are not building significant decline in FY18 as we believe phased price increase will not lead to similar impact as against price increase at one go. Also, we believe a rural recovery in second half of FY18 will help compensate the impact of price hike. Lastly, we expect volume growth in Q118 (based on channel checks) which will help offset volume decline in few quarters."

Macquarie believes the stock will underperform in the near term on a lower earnings growth trajectory and valuation discount, though it has retained outperform rating on the stock with target price of Rs 340.

Morgan Stanley reiterated its equal-weight rating on the stock and believes that the next catalyst for the stock will likely be the Union Budget (February 2018) and the tobacco tax policy therein.

The stock price lost 13 percent on last Tuesday, especially after the GST Council, on July 17, reviewed the compensation cess rates in cigarettes and raised tax by 10-14 percent for all cigarette lengths other than the King Size (KSFT) segment wherein the tax increase is around 23 percent.

At 10:00 hours IST, the stock price was quoting at Rs 293.45, up Rs 4.95, or 1.72 percent on the BSE.
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Friday, 21 July 2017

Balaji Telefilms soars 8% after Reliance picks up 25% stake for Rs 413 crore

The investment will take place through a preferential issue of 2.52 crore shares at Rs 164 apiece, Balaji Telefilms said in a statement on Thursday.

stock trading tipsShares of Balaji Telefilms soared over 8 percent intraday on Friday as investors cheered a stake purchase by Reliance Industries on Thursday.

In a late evening announcement, Balaji Telefilms announced that Reliance Industries invested Rs 413.28 crore to purchase 24.9 percent stake in the company. Free Trails Tips

The investment will take place through a preferential issue of 2.52 crore shares at Rs 164 apiece, aggregating to the said amount, Balaji Telefilms told the exchanges in a notification.

The proceeds from the transaction would be used to further speed up content development initiatives, especially for ALT (its digital content platform), thereby providing it with a strong ability to compete with other OTT service providers- both global and Indian.

“We welcome Reliance Industries as a partner in our growth journey towards becoming the preferred content producer for the Indian diaspora across all means of video consumption and across all geographies. This investment is a vote of confidence to the Company’s strategic move to own our IP and our viewers,” Jeetendra Kapoor, Chairman, Balaji Telefilms, said in a statement.

Axis Capital acted as the sole investment banker for the transaction.

The company was also in the news recently after one of its top executives exited the firm. It announced the stepping down of its Group CEO Sameer Nair from an executive capacity.

"Nair was formerly in an advisory role with the company and now, on the successful completion of his 3-year term, he relinquishes his executive role with effect from July 15 and returns to an advisory capacity," the media company told the exchanges.

The stock has witnessed strong movements in the recent past. It gained over 38 percent in the past one month, while its three-day gain stood at 7.4 percent. At 09:16 hrs, Balaji Telefilms was quoting at Rs 197.50, up Rs 10.85, or 5.81 percent on the BSE. It touched a 52-week high of Rs 201.90.

Thursday, 20 July 2017

Move to GST is positive; see normalcy in coming quarters: Havells India

Havells India posted disappointing numbers for Q1FY18. The operational front performance was weak. “This was a special quarter because of the transition of value added tax (VAT) regime to the goods and services tax (GST) regime. Things should come back to normal in the coming quarters,” Anil Rai Gupta, CMD of Havells India told CNBC-TV18.

Havells India posted disappointing numbers for Q1FY18. The operational front performance was weak.

“This was a special quarter because of the transition of value added tax (VAT) regime to the goods and services tax (GST) regime. Things should come back to normal in the coming quarters,” Anil Rai Gupta, CMD of Havells India told CNBC-TV18.

The whole quarter was marred by the GST transition. The company saw huge destocking at the trade level in the month of May and June which has brought down the sales of high margin products.

It is too early to judge GST impact in July, it might take a month or two for things to normalise, he said.

According to him, the growth in cables is transitional. It is due to some preponement of the cable and wire demand because of the higher GST rate coming from the month of July, he added.

Don’t see any change in the trade set up, over a period of time this whole move to GST is positive and should generally improve the industry sentiment over the longer period of time. It should improve the overall demand cycle in coming futures, he further mentioned.

Wednesday, 19 July 2017

Nifty likely to open on flat to positive note led by mixed global cues: ICICIdirect

Nifty is likely to open flat to positive on the back of mixed global cues. Sell Nifty in the range of 9895-9905 for target of 9845-9825, stop loss: 9925, says a report by ICICIdirect.

Nifty future tips NSE tipsNifty

Benchmark indices opened nearly 75 points lower on the back of ITC that opened 13 percent down. However, banking and a few other heavyweights tried to provide a cushion. Still, towards the end, the index ended 90 points down. Nifty futures ended at a premium of 19 points. India VIX rose 0.3 percent and ended at 11.4.

FIIs bought Rs 317 crore while DIIs sold Rs 975 crore in the cash segment. FIIs bought Rs 325 crore in index futures and Rs 597 crore in index options. In stock futures, they sold Rs 1372 crore.

The highest Put base is at the 9800 strike with 59 lakh shares while the highest Call base is at the 10000 strike with 67 lakh shares. The 9900 and 10000 Call strikes saw additions of 17.6 and 20.2 lakh shares, respectively, while the 9800 and 9900 Put strike saw reductions of 5.9 and 17.0 lakh shares, respectively.

Nifty Bank

Despite the Nifty correcting sharply, the Nifty Bank index remained firm above supports of 24000 and saw fresh long accumulations. We feel the current leg of long accumulation is likely to take the index towards 24200. A close above this would open further upside.

Nifty Future: The Nifty is likely to open flat to positive on the back of mixed global cues. Sell Nifty in the range of 9895-9905 for target of 9845-9825, stop loss: 9925.

Nifty Bank Future: Despite the Nifty correcting sharply, the Nifty Bank index remained firm above supports of 24000 and saw fresh long accumulations. We feel the current leg of long accumulation is likely to take the index towards 24200. A close above this would open further upside. Buy Nifty Bank in the range of 23950-24000, target: 24100-24200, stop loss: 23890.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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