Monday, 23 October 2017

Market Update: RIL hits record high, Axis Bank most active, Adani Ports, Ambuja Cements top gainers

The top gainers in the Nifty were Adani Ports and Ambuja Cements which added over 2 percent each closely followed by UltraTech Cement and Hero MotoCorp.

NSE Stock Market tipsThe Indian market opened the week on a positive note with both the benchmark indices, Nifty and the Sensex reclaiming some lost grounds. The Nifty was up 0.56 percent or 56 points at 10202.50 while the Sensex gained over 150 points and trading at 32540. The Nifty midcap index was again the outperformer, up 0.77 percent led by Jubilant Foodworks, L&T Finance Holdings and Power Finance Corporation.

Bank Nifty was also trading in the green led by Federal Bank and State Bank of India which gained close to 1 percent. Punjab National Bank was other top gainers in the Bank Nifty which added 0.73 percent while Yes Bank was up 0.75 percent.

The top gainers in the Nifty were Adani Ports and Ambuja Cements which added over 2 percent each closely followed by UltraTech Cement and Hero MotoCorp. HCL Technologies from the IT space was the othet top Nifty gainer, up 1.7 percent. Themost active stock was Axis Bank which was however down 1.18 percent. Reliance Industries and Bharti Airtel were the other moost active stocks in the Nifty index. NSE STOCK MARKET TIPS


On the BSE, the top gainers were GNFC which jumped 4.75 percent while Shriram Trasnport gained 4.13 percent. Idea Cellualar, Rajesh Exports and Indian Hotels were the other top Sensex gainers.

The stocks which hit 52-week high on the NSE included reliance Industries, HCL Tech, Avanti Feeds, Tata Chemicals, IFB Agro, Havells India, Bharti Airtel and GNFC. From the BSE, the stocks that hit 52-week high were National Perox, Britannia Industries, KSB Pumps, Repro India, Pondy Oxides and Siyaram Silk.

The market breadth was strong in the Monday morning trade with 34 advances as against 15 declines. On the BSE, 1056 stocks advanced while 937 declined.

Technical Analyst Mitessh Thakkar of mitesshthakkar.com has a buy on Federal Bank with a stop loss at Rs 119 for target of Rs 134.
Ashwani Gujral of ashwanigujral.com has a buy on Reliance Industries with a stop loss of Rs 900 and target of Rs 935 and a sell on Punjab National Bank with a stop loss of Rs 134 and target of Rs 122.

CLSA has upgraded UltraTech Cement to ‘Buy’ from ‘Outperform’ and has hiked price target to Rs 4,900 from Rs 4,700 while Nomura has maintained ‘Buy’ with price target of Rs 5,150. Morgan Stanley has maintained an overweight on UltraTech with price target of Rs 4,892.

Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd

Wednesday, 18 October 2017

Axis Bank cracks 7% after sharp spike in Q2 slippages, analysts cut target price

While retaining buy call on the stock, Bank of America Merrill Lynch cut its target price to Rs 590 from Rs 650 per share and estimated Rs 12,000 crore of further new slippages in second half of FY18.

stock market tipsAxis Bank share price fell as much as 7.4 percent in morning trade Wednesday as analysts slashed target price on the stock after the sharp spike in Q2 slippages.

While retaining buy call on the stock, Bank of America Merrill Lynch cut its target price to Rs 590 from Rs 650 per share and estimated Rs 12,000 crore of further new slippages in second half of FY18.

"We cut EPS forecasts by 34/13 percent for FY18/19 but good retail franchise value will drive back return on equities to 14/19 percent by FY19/20," the research house said. STOCK MARKET TIPS

CLSA also slashed its target price on the stock to Rs 612 from Rs 620 per share following lower earnings estimates, but maintained buy call as it expects asset quality/earnings to normalise.

Key positives were the pick-up in loan growth and healthy CASA growth, the research house said.

Credit Suisse lowered its target price to Rs 485 from Rs 506 per share as it cut EPS estimates by 25 percent on higher provisions. Equity dilution is likely in coming quarters, it feels.

Deutsche Bank also maintained its buy call on the stock but slashed target price to Rs 575 from Rs 598 as there was big disappointment on asset quality, though loan growth revived.

It feels recovery & resolution of non-performing loans are now even more critical. Deutsche has reduced its earnings estimates by 13/7 percent for FY18/19.

Axis Bank's asset quality registered a sharp worsening as net NPAs came in at Rs 14,052 crore against Rs 9,766 crore in the previous quarter. The net NPA ratio too rose to 3.12 percent against 2.3 percent quarter on quarter.

The gross NPAs were reported at Rs 27,402 crore against Rs 22,031 crore in the previous quarter and the ratio came in at 5.9 percent against 5.03 percent in the previous quarter.

Its gross slippages for the quarter were at Rs 8,936 crore, which were sharply higher compared with Rs 3,519 crore in previous quarter.

The private sector lender's September quarter net profit increased 35.5 percent year-on-year to Rs 432.4 crore due to low base in year-ago quarter.

At 09:30 hours IST, the stock price was quoting at Rs 479.80, down Rs 33.40, or 6.51 percent on the BSE.
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Thursday, 12 October 2017

Will TCS Q2 show set the tone for markets? Here’s how to trade the stock

TCS has been consolidating in a narrow range so far in the year 2017. It rose by about 6 percent compared to nearly 20 percent rally seen in the S&P BSE Sensex.

stock market tipsTata Consultancy Services is scheduled to report its results for the quarter ended September later today, post market hours on Thursday.

The profit after tax (PAT) for the quarter is expected to increase 4 percent sequentially to Rs 6,183 crore and revenue may grow 2.6 percent to Rs 30,356 crore, according to an average of estimates of analysts polled by CNBC-TV18.

Revenues in dollar terms are likely to register a 3 percent at USD 4,731 million in the quarter ended September 2017, compared with USD 4,591 million in the previous quarter.

The stock has been consolidating in a narrow range so far in the year 2017. It rose by about 6 percent compared to nearly 20 percent rally seen in the S&P BSE Sensex. STOCK MARKET TIPS

The IT sector has been under pressure throughout this year weighed down by appreciating currency, demand environment, visa ruled and automation.

The anecdotal evidence suggests that TCS gave a negative return in 2 out of 4 times on the day of results while it slipped 3 out of 4 times post quarterly results, BSE data showed.

“If we analyze the behaviour of stock for last four quarters stock witnessed cool off action post results. The corrective action generally comes in the range of 4-8 percent post result outcome,” Rajesh Palviya, Head – Technical & Derivative Analyst at Axis Securities Ltd told Moneycontrol.

“However, post-consolidation of 15-20 days after results outcome, the stock bottoms out and has shown recovery and witnessed around 8-14 percent gain from the bottom made after results. Broadly we can say that the stock manages to recoup all its losses which had come after the announcement of quarterly results,” he said.

Chart pattern indicates that if the stock faces any profit booking, it may find support around Rs 2420-2400; however, any breakdown below Rs2400 would accelerate the selling in stock which may drag it towards Rs 2330-2300 in short-term, suggest experts.

Since the last three months, the stock has undergone a consolidation phase wherein the prices have traded in a broad range of Rs 2,400 to Rs 2,600. This consolidation phase seems to be a time-correction in the prices.

For the past 3-4 quarters, TCS has been trading with a positive bias. It is also part of a triangle and is trading near its apex suggesting that a breakout or a breakdown is on cards.

The stock remained lacklustre for the past few months is likely to find a directional move.

“Immediate resistance is seen at 2550 levels, above which it can bounce till 2700 levels, where Major resistance is seen. However, for the past 3 quarters, while Stock Price have been Moving Higher, Volume has been Declining,” Pragnesh Jain, AVP Technical Research - Institutional Equities, Systematix shares told Moneycontrol.

“We have seen no major underlying strength in the trend, signaling that, even if the breakout happens it won’t sustain at higher levels for long, unless breakout happens with decent volumes,” he said.

Jain further added that failure to breakout above Rs 2550 can see the stock remain under pressure & a breakdown below Rs 2420 will lead to weakness to the tune of 10 percent in the stock.

We have collated views from various experts as to how to trade the stock on the result day:

Analyst: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in

There may not be any negative surprises on this counter as negativity surrounding the sector is well captured in the prices. Technically, since November 2016 low of Rs 2051, this counter appears to be moving in some sort of ascending channel suggesting a durable bottom in place around those levels.

Besides, the last couple of weeks price behaviour after retracing 62 percent of its last leg of the rally from the lows of Rs 2323 is pointing towards base building around Rs 2424 levels.

Hence for positional traders, it is looking like a good buying opportunity for a target of Rs 2650 with a stop below Rs 2420 on a closing basis.

Analyst: Aditya Agarwala, Technical Analyst, YES Securities (I) Ltd

TCS has been oscillating in an Ascending Triangle pattern i.e. making higher lows but highs are locked at the same level. The neckline of the pattern is placed at Rs 2550 and a breakout on healthy volumes from the neckline can trigger a trend reversal taking it higher to levels of Rs 2670.

Historically post quarterly result stock tends to enter into a corrective phase, keeping this in mind a Short Strangle strategy can be exercised i.e. Selling Out of the Money (OTM) CALL and PUT Options. An investor can continue to hold the stock as the major trend is still bullish keeping a target of Rs 2670-2870.

Analyst: Ruchit Jain, Equity Technical Analyst, Angel Broking Pvt Ltd

The prices are vacillating in a range of Rs 2400-2600 since last three months. A trended phase in the stock is expected only post breakout of the mentioned range.

Hence, while we are not expecting a significant move on the result day, positional traders and investor can continue to hold their existing long positions.

It is also advisable to keep a stop loss below Rs 2400; because a violation of the mentioned support could then lead to a corrective leg.

Analyst: Rajesh Palviya, Head – Technical & Derivative Analyst at Axis Securities Ltd.

We can expect TCS to remain in the range of Rs 2300-2700 for few more months and consolidates further.

Trading Strategy 1:

Buy on dips: Looking at the behavior of stock Post results, if the stock reacts negatively one can look for buying it around Rs 2420-2400 followed by Rs 2350 levels with a final stop-loss of Rs 2300 to play for a pullback action with a target of Rs 2450-2500 in 1-2 months time frame.

Trading Strategy 2:

Buy on a breakout: As mentioned the stock is in process of forming a contracting triangular pattern on the weekly chart, so if it manages to break out above Rs 2530-2550 one can buy the stock from a near term trading perspective with a target of Rs 2600-2630 and stop-loss of Rs 2500.

Trading Strategy 3:

If we look at the long-term structure of the stock, though it is in bullish trend it faces multiples resistance at Rs 2730-2750 on higher degree chart.

Looking at the underperformance of IT sector, it looks unlikely that TCS would cross 2700-2730 in the near/short term.

If the stock rallies towards Rs 2630-2660 range one can book profits of their holding positions or future traders can look for going short in the stock on the higher side with a stop-loss of Rs 2700.

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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Wednesday, 11 October 2017

Sical Logistics rises 6% on proposal to acquire stake in subsidiary company

The company's board in its meeting held on October 10, has in-principle approved the proposal to initiate the buying of 26 percent stake held by MMTC in the company's subsidiary Sical Iron Ore Terminals.
free stock tips
Share price of Sical Logistics added 6.5 percent intraday Wednesday as the company is going to acquire stake in subsidiary company.

The company's board in its meeting held on October 10, has in-principle approved the proposal to initiate the buying of 26 percent stake held by MMTC in the company's subsidiary Sical Iron Ore Terminals.

The said acquisition is subject to all statutory and regulatory approvals.

The share rose 19 percent in the last one year. free stock tips

At 09:46 hrs Sical Logistics was quoting at Rs 216, up Rs 13.30, or 6.56 percent on the BSE.

The share touched its 52-week high Rs 285 and 52-week low Rs 162.15 on 11 May, 2017 and 21 November, 2016, respectively.

Tuesday, 10 October 2017

Market update: Nifty in green led by pharma & IT; Bata, TVS Motor hit 52-week high

Siyaram Silk, HEG Limited, Jindal Worldwide, Goa Carbon and VIP Industries were the stocks that hit 52-week high in the Nifty while within the BSE Index, stocks like Gillette India, Kotak Mahindra Bank, Bharat Financial, Bata India, Tata Steel, TVS Motor and TVS Electronics hit 52-week high in today's trade.

Past PerformanceThe Nifty on Tuesday opened on a positive note above that psychological mark of 10,000, up by 23.75 points backed by healthcare, metals and select banks stocks. Within the pharma space, Lupin was the top gainer, up by 2.64 percent after the company received USFDA final approval for gCorgard Tablets used to treat chest pain & hypertension.

Infosys was up by 1.19 percent after the company fixed November 1, 2017 as record date for Rs 13,000 crore share buyback. It was closly followed by Bharti Infratel which gained 1.18 percent and Aurobindo Pharma added over 1 percent.
Past Performance

Biocon was the other pharma stock which was up 2.47 percent. However, USFDA has issued a Complete Response Letter (CRL) for proposed biosimilar pegfilgrastim. Within the IT space, HCL Technologies was the top gainer, up by 1.13 percent.

Reliance Infra was the other stock which was up 1.6 percent after the company announced transferring its Western Region System Strengthening Scheme (WRSSS) transmission undertakings to its two subsidiaries as part of the process to sell the businesses to Adani Transmission Limited.

The most traded stocks in the Nifty Index were Infosys which was trading at Rs 935.75 per scrip, up 1.31 percent and HEG which jumped 4.68 percent. Lupin from the pharma space was also among the most traded stock in the Index.

In the BSE Index, the top gainers were Religare Enterprises, up close to 10 percent while Bombay Dyeing gained 4.99 percent and NCC added 4.26 percent.

Within the Nifty Index, the stocks that hit 52-week high included names like Siyaram Silk, HEG Limited, Jindal Worldwide, Goa Carbon, Apex Frozen Foods and VIP Industries. Within the BSE Index, stocks like Gillette India, Kotak Mahindra Bank, Bharat Financial, Bata India, Tata Steel, TVS Motor and TVS Electronics hit 52-week high in today's trade.

In the Nifty50, the advance-decline ratio was in favour of the advances with 30 stocks advancing and 20 stocks declining. On the other hand, the BSE Index saw 1381 stocks advance and 650 stocks decline.

Technical Analyst Ashwani Gujral of ashwanigujral.com has a buy on TVS Motor with a stop loss of Rs 670 and target of Rs 695, Kotak Mahindra Bank with a stop loss of Rs 1,040 and target of Rs 1,075 and Bata India with a stop loss of Rs 750 and target of Rs 785.
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Monday, 9 October 2017

Market Now: Jewellery stocks shine - PC Jeweller, Titan up 3-4%; ICICI Bank top gainer

Jewellery stocks, the likes of PC Jeweller and Titan Company which were up between 3-4 percent while ICICI Bank was the top gainer in the Nifty50 Index while SPARC plunged 11 percent intraday.

Market Live: Sensex nse tipsThe Nifty50 Index started the week on a subdued note but the stocks which were really shining were the jewellery stocks, the likes of PC Jeweller and Titan Company which were up between 3-4 percent. ICICI Bank was the top gainer in the Index up by 1.08 percent and quoting at Rs 274.90 per scrip while Aurobindo Pharma gained 1.02 percent after the company received the USFDA approval for Moxifloxacin Hydrochloride Ophthalmic Solution.

Among the other pharma gainers, Cipla was up 0.79 percent while Sun Pharma added 0.73 percent. However, Sun Pharma Advanced Research Company (SPARC) in the BSE plunged 13 percent as Baclofen GRS did not meet primary end point in placebo controlled studies.

Jaiprakash Associates clocked the highest traded stock in terms of volumes while on the other hand SPARC topped the list in the BSE Index. MARKET LIVE NSE BSE TIPS

NSE Nifty50 index was up 24.90 points at 10,004.60, while BSE Sensex was up 85.34 points at 31899.56, around the same time. In the BSE, the stock that gained the most was Religare Enterprises up close to 10 percent quoting around Rs 49.90 per share while real estate firm Sobha gained 6.8 percent and Bombay Dyeing was up 4.98 percent.

Among the top losers in the BSE Index, SPARC topped the charts cracking over 11 percent intraday while Adani Enterprises slipped 3.69 percent and Oriental Bank of Commerce fell 2.71 percent.

In the Nifty50 Index, 37 stocks advanced while 12 stocks declined. On the other hand the BSE Index witnessed 1476 advances while 642 stocks declined.
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Friday, 6 October 2017

Market Live: Sensex gains over 170 pts, Nifty above 9950; metal stocks rally

ONGC, Tata Steel and GAIL were the top gainers, while Tata Motors, Tata Motors DVR and Zee Entertainment lost the most.

MCX COMMODITY FREE TIPS10:06 am Market Check: Benchmark indices extended their gains from the morning session, with the Nifty clocking 9950-mark during the day’s trade.

The Sensex was up 173.50 points at 31765.53, while the Nifty was up 63.60 points at 9952.30. The market breadth was positive as 1,448 shares advanced against a decline of 437 shares, while 58 shares were unchanged.

NTPC, Tata Steel and GAIL were the top gainers on both indices, while Tata Motors, Tata Motors DVR, Hero MotoCorp lost the most. MCX COMMODITY FREE TIPS

9:55 am Moody's view: The sale of stake by few Indian banks in their insurance arms is credit positive for these lenders as the proceeds received would strengthen their loss-absorbing buffers, Moody's said.

Earlier this week, State Bank of India's life insurance subsidiary, SBI Life Insurance, listed its shares on the Bombay Stock Exchange, less than a week after ICICI Lombard General Insurance (ICICI Lombard), the general insurance subsidiary of ICICI Bank did the same.

"The initial public offerings (IPOs) of these banks' insurance subsidiaries are credit positive because the banks will receive proceeds that will strengthen their loss-absorbing buffers," the report said.

9:35 am Buzzing Stocks: Shares of Future Retail and Shoppers Stop rose 6-9 percent intraday on Friday as investors cheered the deal to buy HyperCity.

On Friday, Future Retail announced that it will acquire Shoppers Stop's loss-making retail chain HyperCity for Rs 655 crore in a part cash and part stock deal.

The deal, which is likely to be completed in the next three to five months, will see HyperCity Retail India Limited become a wholly-owned subsidiary of Future Retail.

In a stock exchange filing, Future Retail said it will allot 9.310 million shares of Rs 2 face value to HyperCity Retail’s 15 shareholders at Rs 535 per share on a preferential basis.

9:15 am Market Opens: Frontline indices began the session on a positive note, with the Nifty reclaiming 9900 in the opening tick.

The Sensex was up 51.66 points at 31643.69, while the Nifty was up 22.75 points at 9911.45. The market breadth was positive as 454 shares advanced against a decline of 132 shares, while 22 shares were unchanged.

Midcaps continued their outperformance from the previous sessions, while metals led the charts among sectoral indices.

ONGC, Tata Steel and GAIL were the top gainers, while Tata Motors, Tata Motors DVR and Zee Entertainment lost the most.

Asian stocks rose on Friday after optimism over US tax reform plans lifted Wall Street shares to new highs, while the dollar hovered near a seven-week peak following additional indications of solid economic growth.

MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.1 percent, poised for a 1.4 percent gain on the week.

Japan's Nikkei climbed 0.3 percent, Australian stocks rose 0.7 percent and South Korea's KOSPI advanced 0.9 percent.

US stocks notched record closing highs again on Thursday as investors cheered increased prospects for a tax overhaul with Congress moving closer to agreement on a budget resolution.

The day's move extended a run of records that began last week.

The benchmark S&P 500 set a record-high close for the sixth straight day, its longest such run since an eight-day streak in June 1997. It also rose for eight sessions in a row, matching a winning streak from July 2013.
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