IL&FS crisis: India's busted Macquarie clone must go under the knife

When even a 24-year-old Indian entrepreneur has no difficulty raising $1 billion in a day from global investors, it’s easy to forget that it wasn’t always like this.

Only two decades ago, a storied Mumbai financier could get away with raising $25 million of debt for a client, giving it just about half of that money five years later, and making the company service the full amount thereafter.

But what goes around, comes around. The institution that made a business of exploiting India’s desperation for funds, particularly for long-gestation infrastructure projects, is now seeking to protect its assets from unpaid creditors trying to push it into bankruptcy.

Infrastructure Leasing & Financial Services Ltd. had 30 years to spawn an Indian clone of Macquarie Group: a powerhouse of finance, investments, asset ownership and risk management. Instead, Ravi Parthasarathy, the founder who stepped down recently as chairman, went on to build an unwieldy, debt-fueled empire that has now crumbled. Shareholders will have to move in to rescue IL&FS in their meeting on Saturday.

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Commodity outlook by Tradebulls Securities: Sell copper, buy natural gas

Commodity outlook and trading ideas by Bhavik Patel - Sr. Technical Analyst (Commodities), Tradebulls:

The dollar index (DXY) this week has traded roughly in the range of 93.30-94.08. We expect Indian Rupee (INR) to trade in the range of 72.50-73.30 next week. Any correction in Indian Rupee will only come if it manages to sustain below 72.20. If USDINR breaches 73.06 in Future, we may see rapid depreciation in our currency till 73.30-73.50. INR got a small boost with a decline in US Treasury yields reducing support for the greenback. US 10 yr yield decline from 3.110 to 3.05 which has put brakes on DXY. However given the hawkish view of Fed, we expect DXY to trade above 94.50 and so we are not expecting a significant correction in our currency. Next week chances are high for RBI’s rate hike so INR may get support but as long as 72.20 is not breached, we remain convinced that USDINR will remain weak.

Sell Copper
Target: Rs 438
Stop loss: Rs 460
Copper made ‘shooting star’ candlestick pattern at 463.25 and now has retraced to 452. In last 3 trading session, Copper has made lower high which is an indication of buyers strength getting exhausted and bears trying to capture the trend. Copper has broken the last 3 trading session low which further confirms bears getting hang of the commodity. RSI_14 has also retraced from oversold territory and is now currently at 62. We expect Copper to re-test the lows of 738 where 200 DMA is placed and recommend short with a stop loss of 460.

Buy Natural Gas
Target: Rs 226
Stop loss: Rs 207
Natural Gas has made ‘hanging man’ candlestick pattern on the daily scale near 223.4 and has since retraced back to 216.40. Overall trend remains bullish but risk-reward ratio settles better near creating long position near Rs.212. On the daily scale, 20 DMA comes near 212 with previous swing high also collaborating near 212 making it important support. We would recommend creating long position near 212 with a target of 226 and stop loss below 207 on a closing basis.

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Today's picks: From TCS to Tata Motors, hot stocks to watch on Friday

Nifty
Current: 10,977 (fut: 11,043)
Target: NA
Stop-long positions at 10,950. Stop-short positions at 11,125. Big moves could go till 11,175, 10,900. A long 10800p (111) short 10,700p (86) will pay 10-15 if the index drops to 11,900.

Bank Nifty
Current: 25,042 (futures: 25,269)
Target: NA
Stop-long positions at 25,100. Stop-short positions at 25,400. Big moves could go till 25,600, 24,900. Trend remains negative.

TCS
Current price: Rs 2,188
Target price: Rs 2,220
Keep a stop at Rs 2,170 and go long. Add to the position between Rs 2,210 and Rs 2,215.
Book profits at Rs 2,220.

Tata Motors
Current price: Rs225
Target price: Rs220
Keep a stop at Rs 228 and go short. Add to the position between Rs 221 and Rs 222. Book profits at Rs2 20.

Sensex, Nifty fall as RBI and govt measures fail to cheer investors

The benchmark indices fell on Thursday as concerns over the effects of a weaker local currency and crude oil prices on the economy outweighed steps by the government and the central bank to restore investor confidence.

Most global markets, too, were down as investors digested the likelihood of more Federal Reserve interest-rate increases stretching into next year.

The Sensex declined 0.6 per cent to 36,324.17, after falling as much as 0.8 per cent. The benchmark is now headed for its worst month in two and a half years, and volatility is back to levels seen in February. The index is down 5.9 per cent in September.

The Nifty declined 0.7 per cent to close at 10,977. The index has ended with losses in seven of eight past trading sessions. From its peak touched a month ago, the 50-share blue chip index is down 6.5 per cent.

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Aadhaar: What happens to firms like Jio, Paytm as SC strikes down sec 57?

Finance minister Arun Jaitley on Wednesday indicated that the Centre would examine whether separate legal backing is needed for Section 57 of the Aadhaar Act, a provision which allows private entities access to the core Aadhaar database.

The Supreme Court on Wednesday struck down Section 57 of the Aadhaar Act, which deals with private entities, and read down a few others, stating that they were unconstitutional.

“If it is backed by law, it is not unconstitutional,” Jaitley said when asked about Supreme Court striking down Section 57, which allows ‘any body corporate or person’ or ‘private entity’ to demand Aadhaar.

He added that the Centre would see if the court’s decision arose from a “procedural concern”.

“So let us first read the judgement. There are two-three prohibited areas. Are they because they are totally prohibited or are they because they need legal backing. So my answer in general, the generic answer will depend on what is the rationale… for instance on these private entities, it needs to be backed by law. That’s my understanding. I still have a detailed reading of the judgement to do,” Jaitley said

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Nifty outlook and top trading ideas by Prabhudas Lilladher for today

Nifty outlook and few trading ideas by Vaishali Parekh, research analyst - technical research at Prabhudas Lilladher:

NIFTY VIEW
Nifty has held on to the support of 10900 levels & Bank Nifty at 24600 with Rupee & Crude remaining where it is. Volatility would continue with the expiry of September series. The support for the day is seen at 36270/10080 while resistance is seen at 36800/11120. Bank Nifty would have a range of 25100-25650. Among the metal sector, Vedanta and Hindalco look positive while Cement sector has also got into momentum-ACC, Ambuja, Shree cement etc. look positive.


BUY GUJARAT ALKALIES & CHEMICALS
CMP: Rs 620.55
TARGET: Rs 680
STOP LOSS: Rs 580

The stock has been in a consolidation phase for quite some time at around 550-565 levels and currently has indicated a breakout with a positive bullish candle pattern in the daily chart and we anticipate an upward rise with strength and potential in the coming days. The RSI also has indicated a positive bias with a trend reversal and has signalled a buy. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 680 keeping a stop loss of 580.

BUY AMBUJA CEMENTS
CMP: Rs 226.10
TARGET: Rs 250
STOP LOSS: Rs 215
The stock has been consolidating for some time gathering strength and currently has moved past the 50 DMA moving average and has maintained a positive bias and we anticipate an upward rise in the coming days. The RSI looks positive and with the chart looking attractive, we recommend a buy in this stock for an upside target of 250 keeping a stop loss of 215.

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US Fed raises interest rates by 0.25%; top takeaways from the FOMC meet

As expected, the US Federal Reserve raised short-term interest rates by a quarter percentage point or 0.25 per cent in its latest policy meet, that concluded Wednesday. It was the third rate hike by the US Fed this year and the eighth such move since December 2015.

Here're the key takeaways from the latest FOMC meet -
Rates move up
The Federal Open Market Committee (FOMC) increased the interest rates by 25 basis points, thus setting a new range of 2 per cent to 2.25 per cent. The move reflected an upbeat assessment of the economy that was identical to the Fed’s last policy statement eight weeks ago, despite concerns over Trump’s escalating trade war, Bloomberg reported. Growth and job gains have been “strong” and inflation remains near the central bank’s 2 per cent target, the FOMC said in its statement. Also, it has signalled one more rate hike this year and three more in 2019.

Analysts at Rabobank International said, "We would like to add that with recent data indicating that domestic momentum remains strong – the Atlanta Fed’s GDP nowcast for Q3 stood at 4.4 per cent on September 19 – it would take time for the trade war to slow US economic growth down to a pace that would concern the FOMC. Therefore, we now change our call to four hikes this year, with the next hike in December."

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Top trading ideas by Tradebulls Securities: Buy United Spirits, sell TVS

Nifty outlook and top trading ideas from Sacchitanand Uttekar, DVP – Technical (Equity), Tradebulls Securities:

Nifty Outlook:
Nifty did display some resilience & witnessed a bounce after facing relentless selling from 11,500 zone. The market breadth has not been that comforting while the volatility index continued to scale higher. On the pattern front, the index did witness a Harami formation on Tuesday session but the confirmation of the same is yet awaited in terms of an affirmative close. Hence, any non-sustenance above 10970 could unlock fresh pessimism & push the index towards its 200 DEMA placed around 10,780. As the broader trend looks weak pullback towards 11,170 zone should be used to create fresh shorts with a Stop above 11,310.

Stock: United Spirits
Reco.: BUY
CMP: Rs 533
Since May 2018 the stock has been declining within the bounds of a channel pattern. The wave formation within the pattern also resembles a Bullish Three Drives Harmonic structure. The support near 520 looks strong & a Bullish Harami formation confirms the same. Positional longs could be deployed with a stop below 505 & a move back to 600 could be witnessed in the coming month.

Stock: TVS Motor Company
Reco.: SELL
CMP: Rs 584
Rising wedge on the daily scale with the stock facing resistance near its 200 DEMA around 595. Shorts could be initiated below 575 with a Stop above 596 for a pattern target up to 545.

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Sebi issues show-cause notices to 300 brokerages in NSEL case

The Securities and Exchange Board of India (Sebi) has issued a show-cause notice to 300 brokerages whose clients lost significant money in the infamous Rs 56-billion National Spot Exchange (NSEL) scam.

Sebi’s notice alleged that these brokerages no longer meet the “fit and proper person” criteria and hence should not be allowed to continue as intermediaries.

The regulator asked these brokerages to explain why the action recommended should not be taken against them under the prescribed provisions of Sebi (intermediaries) and Sebi (stock-brokers and sub-brokers) regulations.

Sebi’s fit and proper criteria define basic conditions that intermediaries need to fulfil in order to perform their duties and responsibilities. Among key conditions are integrity, absence of any conviction and not being a willful defaulter.

The regulator said that it has initiated adjudication proceeding and appointed designated authority on September 21 to inquire into the alleged violation of the fit and proper norms.

Business Standard

Aadhaar not mandatory for bank account, mobile connection: Key takeaways

The Supreme Court on Wednesday declared government's Aadhaar scheme as Constitutionally valid and also struck down Section 57 of Aadhaar Act permitting private entities to avail Aadhaar data. "Robust data protection regime has to be brought in place as early as possible," Justice Sikri said while reading out the majority judgement.

The court said that the Aadhaar authentication data cannot be stored for more than six months.

The apex court's five-judge Constitution bench said Aadhaar means unique and it is better to be unique than being best. The first of the three judgements was pronounced by Justice A K Sikri. Justice Sikri pronounced the judgement for himself, Chief Justice Dipak Misra and Justice A M Khanwilkar.

Here are the key takeaways:

1. Individuals and corporates cannot collect Aadhaar data

2. Government not to give Aadhaar to illegal immigrants

3. Aadhaar need not be made compulsory for school admissions

4. Linking Aadhaar to telecom services unconstitutional

5. No person can be denied govt benefits only due to absence of Aadhaar

6. No need to link bank accounts, mobile numbers to Aadhaar

7. Aadhaar card is mandatory for PAN linking, Income Tax return

8. Aadhaar can be passed as Money Bill

9. Nothing in Aadhaar Act that violates right to privacy of individual

10. No child can be denied benefits of any schemes on not being able to bring their Aadhaar number

11. CBSE, NEET, UGC cannot make Aadhaar mandatory, also not compulsory for school admissions

Nifty outlook and top trading ideas by Prabhudas Lilladher for today

Nifty outlook and few trading ideas by Vaishali Parekh, research analyst - technical research at Prabhudas Lilladher:

NIFTY VIEW
Nifty after correcting from 11750 levels to a low of 10860 levels has taken support and is attempting to bounce from here on. Bank Nifty too has given a substantial corrective move now with support taken at 24670 levels and now likely to bounce up to 25500-25800 levels. The support for the day is seen at 36400/11000 while resistance is seen at 36920/11140. Bank Nifty would have a range of 25060-25620. HDFC twin along with Kotak & IndusInd and among Auto sector Maruti looks very promising for a bounce-back rally.

BUY MARUTI
CMP: Rs 7,999.45
TARGET: Rs 8,800
STOP LOSS: Rs 7,680
The stock has given a decent correction from the peak of 9470 to bottom out at around 7590 levels and has given a good bounce to signify strength and potential to rise further in the coming days. The RSI has touched the highly oversold zone and has indicated a trend reversal to signal a buy with a positive bias. With the chart looking attractive and good volume participation witnessed, we recommend a buy in this stock for an upside target of 8800 keeping a stop loss of 7680.

BUY HDFC BANK
CMP: Rs 1,952.40
TARGET: Rs 2,100
STOP LOSS: Rs 1,900
The stock has witnessed a good correction in the last two months from the peak of 2210 to bottom out at around 1910 levels and has given a good bounce to signify strength and potential to rise further in the coming days. The RSI has touched the highly oversold zone and has indicated a trend reversal to signal a buy with a positive bias. With the chart looking attractive and good volume participation witnessed, we recommend a buy in this stock for an upside target of 2100 keeping a stop loss of 1900.

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Global trade war concerns hurt most S-E Asian stocks; Singapore rises

The Philippines stocks fell on Tuesday on the peso’s continued slide coupled with renewed trade war concerns, while Singapore extended gains for a fifth session thanks to “window dressing” attempts by portfolio managers ahead of the third quarter close. Broader Asian stocks struggled as the latest round of US-China tariffs revived fears the trade dispute would knock global growth, with neither side looking to be in a mood to compromise.

MSCI’s broadest index of APAC shares outside Japan edged down 0.3 per cent.

“The failure of China and the US to come to terms on the negotiation table ... is creating weakness in major economies in Asia, and has resulted in most Southeast Asian equities to retreat from what they gained last week,” said Manny Cruz, a Manila-based analyst at Asiasec Equities Inc.

Filippino stocks fell the most in the region, down about 0.7 per cent after two days of gains, with financials and real-estate stocks weighing on the index.

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Today's picks: From BPCL to Cipla, hot stocks to watch on Wednesday

Nifty
Current: 11,067 (fut: 11,097)
Target: NA
Stop-long positions at 11,000.
Stop-short positions at 11,175. Big moves could go till 11,250, 10,950. A long 11,000p (32), long 11,200c (22) has breakevens at 11,254, 10,946 with 2 sessions to go.

Bank Nifty
Current: 25,330 (fut: 25,390)Target: NA
Stop-long positions at 25,200.
Stop-short positions at 25,450. Big moves could go till 25,000, 25,750. Trend could go negative again.

Indiabulls Hsg
Current price: Rs929
Target price: Rs945
Keep a stop at Rs920 and go long. Add to the position between Rs939 and Rs942.
Book profits at Rs945.

BPCL
Current price: Rs364
Target price: Rs359
Keep a stop at Rs367 and go short. Add to the position between Rs360 and Rs361.
Book profits at Rs359.

Cipla
Current price: Rs662
Target price: Rs675
Keep a stop at Rs656 and go long. Add to the position between Rs669 and Rs672.
Book profits at Rs675.

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Nifty outlook and top technical calls by HDFC Securities for today

Nifty outlook and technical calls by Vinay Rajani Technical Analyst, HDFC Securities:
Nifty View
Nifty managed to hold above the previous week’s low of 10866 and recovered nicely, to close at 11067. Bank Nifty also recovered sharply on the back of short covering. Due to the oversold condition of many of the beaten-down stocks in large cap segment, the market witnessed a pullback rally. On the upside, Nifty has got resistance at 11170-11200. It would be advisable to hold Nifty longs with 10866 stop loss.

Buy BIOCON
CMP: Rs 701.55
Target: Rs. 740
Stop-loss: Rs 675
The stock price has registered a new all-time high with significant volumes. The stock price has also broken out from last 8 month’s consolidation. Pharma Sector has also been outperforming. Oscillators are also showing bullish momentum for the stock. We recommend buying Biocon for the target of 740, keeping SL at 675.

Buy DIVIS LAB
CMP: Rs 1388
Target Rs. 1500
Stop-loss Rs 1328
The stock price has been hovering around its all time. Despite a heavy sell-off in the most of the stocks, Divis has been able to show resilient movement in the recent downswings in markets. Short term moving averages are trading above long-term moving averages, indicating a bullish trend. We recommend buying Divislab for the target of 1500, keeping SL at 1328.

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How tech startups are disrupting traditional stock trading with smart apps

Stock Trading - Let's say you're a retail investor who wants to put some money in some stocks of large US-listed firms. What do you do? You go to a big brokerage firm, probably associated with a well-known bank or an established financial services firm. The relationship manager gives you a list of documents required to open a demat account. It takes about a week on average to make your account live. Then, you receive some recommendations from the brokerage firm to invest in some stocks. You either go by the advice or use your own intuition to pick up a few. Also, for investing in US stocks, you may be required to maintain a minimum balance of $10,000, and pay a transaction fee of around $50 per order. In this cumbersome process, there is little guarantee that you will actually gain from the investment.

Now, let's think of another scenario. You download a mobile app from the trading platform of a discount-based brokerage firm. This app provides you stock recommendations drawn from the best research firms such as Barclays, Goldman Sachs and Nomura. It takes few minutes to open a demat account for trading in US stocks. And you avail all these benefits with an investment corpus of $100, which is a fraction of the $10,000 that traditional brokerage firms were asking you. What's more, the transaction charges is only $5 per order.

YES Bank gains 6% ahead of board meeting today

Shares of YES Bank were up 6% at Rs 239 per share on the BSE in intra-day trade on Tuesday ahead of the board meeting to be held later in the day to decide the future course of action after the Reserve Bank of India (RBI) curtailed the term of its managing director (MD) and Chief Executive Officer (CEO) Rana Kapoor and asked the bank to look for a replacement by January 2019.
“Reserve Bank of India has vide letter dated September 17, 2018, intimated that Rana Kapoor may continue as the managing director (MD) & CEO till 31 January 2019, and the board of directors of the Bank are scheduled to meet on September 25, 2018 to decide on the future course of action,” YES Bank said on Wednesday, September 19, 2018, in a regulatory filing.

After the announcements, the stock of YES Bank had slipped 29% in past two trading days till Monday. It touched a 52-week low of Rs 210 on Friday in intra-day trade.

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Bad news for creditors as IL&FS, 40 arms move NCLT seeking debt protection

Debt-laden infrastructure financier IL&FS and its 40 subsidiaries have filed a petition with the Mumbai Bench of the National Company Law Tribunal (NCLT) seeking to restructure its debt under Section 230 of the Companies Act 2013.

The company moved the NCLT Mumbai on Monday “seeking certain reliefs” in connection with filing of scheme of arrangement under Section 230 of the Companies Act, said IL&FS in a filing with the exchanges. The scheme will be prepared in compliance with applicable laws and subject to necessary consents of shareholders, creditors and boards of directors of the relevant entities.

IL&FS subsidiaries include IFIN, ITNL, IL&FS Energy Development and IL&FS Engineering & Construction Ltd. The other companies include roads and construction companies.

The Section 230 to 240 of the Companies Act, 2013, contains provisions on ‘Compromises, Arrangements and Amalgamations’, that covers compromise or arrangements, mergers and amalgamations, corporate debt restructuring, demergers, fast track mergers for small companies/holding subsidiary companies, cross border mergers, takeovers, amalgamation of companies in public interest, etc.

OMCs, aviation stks drop as crude rises; IndiGo, Jet Airways hit 52-wk lows

Shares of aviation and oil and gas companies came under selling pressure on Tuesday as the crude oil prices hit a four-year high.

State-run GAIL was trading over 4 per cent lower at Rs 365.65 apiece on BSE, after hitting an intraday low of Rs 364.90. BPCL was down nearly 3 per cent at Rs 357.40.

Shares of Hindustan Petroleum (HPCL) was trading two and a half per cent lower at Rs 242 while those of Indian Oil was down 1 per cent at Rs 153.5. Oil India was trading at Rs 217, down 0.37 per cent.

At the time of writing this report, the S&P BSE Oil & Gas index was down 1 per cent at 14,762.

In the aviation space, all the three stocks - SpiceJet, IndiGo and Jet Airways, hit their respective 52-week lows.

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HCL Technologies hits record high; stock up 24% in three months

Shares of HCL Technologies hit a record high of Rs 1,125 per share, up 2.6% in intra-day trade, surpassing their previous high of Rs 1,107 per share recorded on April 23, 2018, on the BSE.
The stock was trading above its share buyback price of Rs 1,100.

In the past three months, HCL Technologies has outperformed the market by surging 24% after the company announced the share buyback proposal. In comparison, the S&P BSE Sensex was up 4% during the period.

The stock had turned ex-date for buyback of shares on August 30, 2018. IT services firm said its Rs 40 billion buyback offer will commence on September 18 and will close on October 3.

Analysts at JP Morgan overweight on HCL Technologies with Jun-19 price target of Rs 1,180 (previously Rs 1,050).

“Our price target is based on a one-year forward P/E multiple of 15.5x mildly increased from 15x as weaker INR allows HCL Technologies to make investments that it might have otherwise deferred helping the cause of revenue growth. We factor in higher margins in FY19 vs. FY20 as gains from the weaker INR (in FY19) will get passed on to clients effective FY20,” the brokerage firm said in IT Services sector update.

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OnePlus 6T launch soon: Know confirmed features, expected specs and price

Chinese smartphone manufacturer OnePlus is gearing up to launch the OnePlus 6T soon. Like previous launches, the key changes that would be part of the upgrade from the current-generation flagship have already been confirmed by the company. These changes include the use of an in-display fingerprint sensor and the removal of the 3.5mm audio jack. Apart from these changes, several other enhancements are expected from the upcoming smartphone, such as a new screen format, enhanced camera module, bigger battery, etc. Though there has been no official confirmation on these features, the company’s past record hints that these features would make way in the OnePlus 6T.

OnePlus 6T confirmed upgrades
Speaking of upgrades, the OnePlus 6T is confirmed to get an in-display fingerprint sensor technology in which the fingerprint sensor is placed beneath the screen, allowing the phone to sport a true unibody design. The in-display fingerprint sensor technology allows a part of the screen to double up as a biometric recognition module for identifying fingerprints to unlock the phone. OnePlus’ sister company, Vivo, has been offering this technology in some of its premium models, such as the Vivo X21, Vivo Nex and the Vivo V11 Pro.

Business Standard

Mukesh Ambani's Reliance Jio continues eating into incumbent subscriber pie

Mobile broadband subscriber base growth since last year clearly shows that Jio has continued to get the benefit of the closure of smaller operators as the increase in subscriber base of Jio is way ahead in speed and scale compared to that of incumbents as shown by Trai’s July subscriber addition numbers.

Mobile broadband subscriber net addition, over the past few months, clearly shows that Jio has benefited from the twin impact of telco consolidation and the change in the Jio feature phone offer, which has positively impacted its numbers

Data subscriber base growth over the last year has been phenomenal for all other telco players, but Jio has continued to lead the growth

Active subscriber base numbers indicate that Jio still has some catching up to do in terms of becoming the primary usage SIM of consumers

Business Standard

Usha Martin hits 52-week high as Tata Steel to acquire steel business

Shares of Usha Martin hit a 52-week high of Rs 36.40 per share, up 16% on the BSE in the opening deal after Tata Steel has executed a definitive agreement for the acquisition of the company’s steel business through a slump sale on a going concern basis.
“The company has executed definitive agreements for sale of its steel business to Tata Steel or its subsidiaries through a slump sale on going concern basis for consideration being in the rage of Rs 43 billion – Rs 47 billion,” Usha Martin said on Saturday in a press release.

The closing of the acquisition is subject to the fulfilment of various conditions under the agreements. The parties shall jointly work towards fulfilment of conditions precedent which are largely regulatory approvals required for the transfer of the business undertaking. All the employees pertaining to the steel business will transfer as part of the acquisition, Tata Steel said in a statement.

The steel business undertaking of Usha Martin inter-alia comprises of a specialized around 1.0 mtpa alloy based manufacturing capacity

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Short-term outlook for market remains negative: Devang Shah

NIFTY 
CLOSE- 11143.10 (21.09.2018)
Market closed third consecutive week in negative territory. It has fallen sharply beyond anticipation during the week. It has completely deteriorated wave count structure on main indices as expected. It made a low of 10,866.45 levels on Nifty and 35,993.64 levels on Sensex so far in this correction. Break of these lows will lead to extension of correction for further lower levels targets as mentioned below in short term. Till then, market may trade in range with high volatility. Short term outlook for market remains negative till it finally confirms end of these wave-IV short term correction

Stock Picks:

GRASIM - BUY
CLOSE – Rs 1,048.40
TARGET – Rs 1,100 -1,150 GRASIM closed the week in negative territory. Its consolidating in narrow range in short term. Its daily momentum indicators are in BUY. It’s trading above 40DMA. Risk Reward is favourable to BUY at current levels. One can BUY with a stop loss of Rs 999 for the target of Rs 1,100-1,150 levels in short-term.

POWERGRID - BUY
CLOSE – Rs- 200.20
TARGET – Rs- 210
POWERGRID closed the week in positive territory. Its Outperforming in short term. Risk Reward is favorable to BUY at current levels. Its daily momentum indicators are in BUY. One can BUY with a stop loss of Rs 186 for the target of Rs 210 levels in short-term.

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Buy Biocon for a target of Rs 730, stop loss at Rs 650: Prabhudas Lilladher

Nifty outlook and few trading ideas by Vaishali Parekh, research analyst - technical research at Prabhudas Lilladher:

NIFTY VIEW
Nifty has corrected by 7.5% from the peak of 11,750 levels, however, has recovered from the intraday low of 10866, but still no clarity on market bottoming out. 200 DMA lies at 10,750 levels with the RSI at 37. Bank Nifty too corrected by 11.8%, already broken the 200 DMA. The bias remains corrective until we see some signs of reversal. The support for the week is seen 36,060/10,900 while resistance is seen at 37640/11400. Bank Nifty would have a range of 24,830-26,380. OMCs are now showing some signs of reversal.

BUY BIOCON
CMP: Rs 676.90
TARGET: Rs 730
STOP LOSS: Rs 650
The stock has maintained its rising trend in spite of the weak market scenario maintain above the significant moving averages of 50DMA and 200 DMA and look poised for further still upward move in the coming days. The RSI is on the rise and with improving volume participation, we recommend a buy in this stock for an upside target of 730 keeping a stop loss of 650.

BUY IOC
CMP: Rs 158.15
TARGET: Rs 180
STOP LOSS: Rs 148
The stock has maintained a strong support at around 150 levels and has indicated a decent revival to signify strength and has potential to rise further. The stock has almost given a breakout above the 50DMA and with the RSI on the rise has maintained the positive bias. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 180 keeping a stop loss of 148.

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Newly-launched Apple iPhones, Watch Series 4 now on sale globally

Apple has announced that its newly-launched iPhone XR, XS, XS Max and 'Watch Series 4' are going on sale globally from Friday.

The new iPhones and Apple Watch Series 4 will be available in India starting September 28.

In India, one would have to shell out Rs 12,075 a month, as zero-cost EMI, for a period of one year to own the 512GB variant of iPhone XS Max -- the most expensive iPhone released this month -- that would cost Rs 1,44,900.

The iPhone XS with 512GB storage model would be priced Rs 134,900 and the cheapest of the lot, iPhone XR (64GB)would hit the shelves at a starting price of Rs 76,900 in India.

The iPhone XS and XS Max support dual SIM and dual standby functionality and are fuelled by Apple's latest A12 Bionic chipset built on 7-nm design and a new neural engine with an 8-core dedicated machine learning (ML) processor.

YES Bank gets a ratings cut after RBI order on Rana Kapoor

Brokerages including Citigroup and IDFC Securities have slashed their ratings on YES Bank, citing weak business outlook. This follows the Reserve Bank of India’s direction to CEO Rana Kapoor to step down after January 31, rejecting the lender’s request to extend his tenure by three years.

Kapoor’s departure might make raising fresh capital, as well as growing deposits and fee income, harder for the Mumbai-based lender, the brokerages said.

Citigroup, in a note, said the premium attached to YES Bank’s shares for Kapoor “can go away”. The bank’s senior management is competent, but Kapoor played a significant role in building the bank, it added. The note added that YES Bank might have to defer its capital raising plans, which could slow down growth. The brokerage downgraded the stock to ‘sell’ from ‘buy’. It cut its price target by 39 per cent to Rs 270.
Domestic brokerage IDFC said in a note that Kapoor’s departure will lead to a slowdown in loan and fee growth, which could “lead to a sharp fall in valuations”.

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Buy GAIL with a target of Rs 397, stop loss of Rs 375: Anand Rathi Research

Nifty outlook and top trading ideas by Jay Anand Thakkar, CMT -Assistant Vice President - Equity Research, Anand Rathi Research:

NIFTY: BUY
Target: 11,420
Stop Loss: 11,085
Nifty closed in the negative territory in the last trading session in the last trading session and it has broken the previous swing low of 11,250 levels which is a negative reversal. The Index has started to form lower tops and lower bottoms and so now till the previous swing high is not taken off then trend remains down. The resistance on the upside is pegged at 11,525 levels whereas the support is pegged at 11,085 levels.

DEEPAK NITRATE - BUY
Target - Rs 329
Stop Loss - Rs 276
The stock has started to form higher tops and higher bottom with a reversal in its momentum indicator MACD. The Stock seems to have started wave III of wave 5 up.

TECH MAHINDRA - BUY
Target - Rs 794
Stop Loss - Rs 755
The stock has been rising in an upward sloping parallel channel with an increase in volumes and buy crossover in its momentum indicator MACD. The wave III of wave 5 up seems to have started.

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Nifty outlook and top trading ideas by Prabhudas Lilladher

Nifty outlook and few trading ideas by Vaishali Parekh, research analyst - technical research at Prabhudas Lilladher.

NIFTY VIEW
Nifty after breaking the previous support of 11,250 along with Bank Nifty too and weekly trend being down, we continue to have a corrective bias. The support for the day is seen at 36,860/11,160 while resistance is seen at 37,350/11,300. Bank Nifty would have a range of 26,000-26,500. Market is witnessing selling in almost all sectors; hence we need to wait for stability. RSI, too in the daily chart is at 41 levels, which cannot rule out scope for further correction.

BUY NILKAMAL
CMP: Rs 1,828.90
TARGET: Rs 1,970
STOP LOSS: Rs 1,760
The stock has formed a higher bottom formation pattern at around Rs 1,755 levels which is also where the 200 DMA lies and has indicated a positive revival. The stock has also maintained above the significant 50DMA moving average and with the RSI also showing a trend reversal, a positive bias is maintained. With good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 1,970 keeping a stop loss of Rs 1,760.

BUY COAL INDIA
CMP: Rs 280.65
TARGET: Rs 302
STOP LOSS: Rs 270
The stock has formed a higher bottom formation and has moved past the significant 50DMA moving average to signify strength and has potential to rise further in the coming days. The RSI also has indicated a trend reversal to signal a buy and with a positive bias maintained the stock is almost on the verge of a breakout above the 200DMA which lies at Rs 281 levels. With good volume participation witnessed, we recommend a buy in this stock for an upside target of Rs 302 keeping a stop loss of Rs 270.

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Stocks to watch: YES Bank, Jet Airways and Hotel Leelaventure

Global cues are likely to dominate investor sentiment on Friday. US equities hit a fresh record high on Thursday, boosted by gains in industrial companies on continued relief that fresh US and China tariffs were less damaging than feared. Asian stocks, too, rose in the early trade.

Here's a list of top stocks that may remain on investors' radar in today's session -

YES Bank: The stock is likely to remain in focus today as the RBI has curtailed the term of Yes Bank's founding CEO Rana Kapoor and asked the private sector lender to look for his replacement by January 2019. Brokerages such as IDFC Securities and Citi have downgraded the stock while Macquarie have maintained 'Outperform' rating.

Hotel Leelaventure: The cash-strapped company on Thursday said it had defaulted on payment of quarterly interest of Rs 21.2 million to LIC. Hotel Leelaventure, which currently has a debt of over Rs 36.62 billion, had issued secured redeemable NCDs on private placement basis, aggregating Rs 900 million to LIC in December 2008.

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Is Kohli the victim of excessive self-belief by trusting his own rhetoric?

One week ago, James Anderson’s delivery crashed into Mohammed Shami’s stumps and India had lost the last test match and, with it, the series against England. As was to be expected, analyses followed in an attempt to make sense of our loss. Mike Brearley, who is now justly acknowledged as a leading thinker on the game, wondered whether Virat Kohli had become too dominant a figure in Indian cricket. The corollary was clear – was this affecting India’s ability to function as a team? An excessively strong personality as a captain could suppress a counter view in the team.

This refusal to entertain any other point of view came across in the reactions of the captain and the coach, Ravi Shastri, of the Indian cricket team. Both of them insisted it was not as devastating a defeat as the final scores would suggest. One cannot help but think that it is that very attitude that was the root cause of our defeat. It really looked as if captain and coach were in denial. It is interesting to see how we arrived at this stage.

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Vivo V11 Pro review: Feature-rich smartphone with good camera, battery life

Chinese smartphone manufacturer Vivo started its journey with devices tuned to deliver best-in-class audio capabilities. With fast-changing dynamics of the smartphone game, the company soon shifted its focus to imaging by integrating higher megapixel cameras in its devices. Now, at a time when the specification race has saturated and the mobile phone game has moved to features, Vivo V Pro is seemingly taking the lead in shaping the future of smartphones — the Vivo Nex, with a three-side all-screen front and motorised pop-up camera is an example.

While the Vivo Nex seems to be a concept phone setting the benchmark for future smartphones, a Business Standard review of the recently launched Vivo V11 Pro revealed that the new device fits just perfectly as a smartphone filling the gap during thr transition. The Vivo V11 Pro features a modern design with glass body, a tall stance due to its 19.5:9 aspect ratio screen with a tiny notch on top (called Halo FullView), and respectable specifications.

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OnePlus 6T teaser goes live on Amazon, TV ad with Amitabh Bachchan out too

Chinese smartphone manufacturer OnePlus is gearing up to launch the OnePlus 6T soon. The phone teaser is now live on e-commerce platform Amazon, and a television commercial featuring Bollywood celebrity Amitabh Bachchan is out too. This is exactly how OnePlus started promoting the yesteryear flagship OnePlus 5T before the launch. With the teaser page out and television commercial featuring on different channels, it is safe to assume that the launch is now only days away.

While the teaser on Amazon India does not reveal anything, the television commercial provides some details on the design aspect of the upcoming OnePlus flagship. In the commercial, Amitabh Bachchan is seen holding the phone and his index finger resting below the rear camera module. The phone shown in the advertisement wears midnight black design (matte black edition) that was introduced with the OnePlus 6. In recent reports, the OnePlus 6T was speculated to feature a tri-camera module on the back. In the commercial, however, the phone is shown sporting a dual camera module and Amitabh Bachchan’s index finger strategically covering rest of the space, leaving the speculation unanswered.

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SBI in international bond market to raise nearly $500 mn in green bonds

The nation's largest lender State Bank of India Wednesday raised the first tranche of USD 650 million through a maiden green bond offering, which is part of its planned USD 3 billion in such funds for onward lending to green projects.

The five-year dollar money is priced at the US treasury plus 165 basis points, while from for an British investor the coupon will be 3 Libor plus 151 bps.

"SBI has successfully priced our maiden green bonds, a five-year money for USD 650 million at T+ 165 bps, corresponding to 3L + 151 bps approximately," a merchant banking source official said.

The money is raised through the bank's London branch, the source added.

With this issue SBI will become compliant with the global standards as prescribed by the Climate Bonds Initiative, a global not-for-profit investor-focused organisation.

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Equity, currency & commodity markets shut today on account of Muharram

India's currency, debt and equity and commodity markets are closed on Thursday on account of Muharram. Trading will resume on Friday.

On Wednesday, the S&P BSE Sensex ended at 37,121, down 169 points while the broader Nifty50 index settled at 11,234, down 45 points.

HDFC Asset Management Company (down over 8 per cent) and Reliance Nippon Life Asset Management (down over 11 per cent) lost ground on Wednesday, a day after the capital markets regulator Sebi announced major changes to the fee structure for the Rs 25-trillion mutual fund (MF) industry, a decision that will hit the profits of asset management companies (AMCs) but result in savings for investors. The regulator capped the so-called total expense ratio for fund houses with equity assets up to Rs 500 billion at 1.05 per cent, down from as much as 1.75 per cent charged earlier.

Global Markets
Asian stocks rose in early trade on Thursday following a second day of gains on global share markets amid easing investor concern over the impact from the U.S.-China trade war, but markets remained cautious.

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New iPhones worth the cost as they replace many other gadgets: Tim Cook

Defending the high cost consumers would have to pay to own the most expensive iPhone released this month, Apple CEO Tim Cook has said that the device is worth the cost as it replaces many other gadgets one might need, a media report said.

Apple's newest line of iPhones -- the iPhone XR, XS and XS Max -- cost as much as $1,449 for the most expensive model, CNBC reported late on Tuesday.

"The phone has replaced your digital camera. You don't have a separate one anymore. It's replaced your video camera. It's replaced your music player. It's replaced all of these different devices," Cook was quoted as saying to ABC's "Good Morning America".

"And so arguably the product is really important. And we've found that people want to have the most innovative product available and with that, it's not cheap to do."

Stock calls by HDFC securities: Sell RIL, Escorts

Nifty outlook and technical calls by Vinay Rajani, Technical Analyst, HDFC Securities for today:

Nifty View
Nifty closed at 11,279, the lowest levels on closing basis of the recent down swing started from 11,760. Lower top and lower bottom formation, bearish moving average setup and bearish oscillator setup clearly shows that markets are in a down trend. Next support for Nifty is seen in the range of 11,000-11,100, which is derived from 100 DMA and long term upward trend line on the daily charts. Resistance is shifted down to 11,400 in Nifty. Bank Nifty to likely to test 200 DMA support of 26,100.

Sell Reliance
CMP: Rs 1,217
Target: Rs 1,160
Stop-loss: Rs 1,250
Stock price has closed below its 20-DMA. Bearish head and shoulder breakdown is also seen on the daily charts. Oscillators like RSI and MACD have turned bearish on the charts. We recommend selling Reliance for the downside target of Rs 1,160, keeping SL at Rs 1,250.

Sell Escorts
CMP: Rs 761
Target: Rs 725
Stop-loss: Rs 787
Stock has been forming lower tops and lower bottoms on the daily charts. Auto stocks have been underperforming for last couple of months. After 5 days of consolidation, stock resumed its downtrend with higher volumes, indicates continuation of a bearish trend. We recommend selling Escorts for the downside target of Rs 725, keeping SL at Rs 787.

HDFC AMC, Reliance Nippon tumble 8% after Sebi cuts total expense ratio

Shares of asset management companies tumbled on Wednesday, a day after the capital markets regulator Sebi announced major changes to the fee structure for the Rs 25-trillion mutual fund (MF) industry, a decision that will hit the profits of asset management companies (AMCs) but result in savings for investors.

The regulator has capped the total expense ratio (TER) for fund houses with equity assets up to Rs 500 billion at 1.05 per cent, down from as much as 1.75 per cent charged earlier. AMCs with lower assets under management (AUM) will be allowed to charge a higher TER, based on slabs. Sebi also said the industry would have to move to a full “trail model” for commissions. It also capped fees for exchange-traded funds (ETFs) at a maximum of 1 per cent. READ MORE

“The mutual fund industry has grown by leaps and bounds. However, the benefits of economy of scale have not been fully shared with investors,” said Ajay Tyagi, chairman, Sebi.

At 10:12 am, shares of Reliance Nippon Life Asset Management was trading 8 points lower at Rs 197 apiece on BSE. HDFC Asset Management Company was also down 8 per cent at Rs 1,417.80. 

Technical calls by Religare Broking: Buy Exide Industries, GAIL

Top trading ideas by Religare Broking:

Exide Industries Limiteda
Rec: BUY
Last Close: 268.85
Initiation range: 267-270
Target: 284
Stop loss: 263
After making a record high at 304.70, EXIDEIND has been witnessing profit taking for past almost one month. It is currently consolidating around the support zone of multiple moving averages on different time frames and likely to see swift rebound in near future. Traders shouldn’t miss this chance and accumulate fresh longs in the given range.

GAIL (India) Limited
Rec: BUY
Last Close: 374.80
Initiation range: 369-373
Target: 394
Stop loss: 362
GAIL has retraced marginally of late, after making a record high in August 2018 and found support around the short-term moving averages (50/100) EMA on the daily chart. We believe it’s an excellent buying opportunity, considering the overall chart structure and positioning of confirmations indicators. Traders can accumulate within the given range.

Stocks to watch: RCom, ICICI Bank, Sun Pharma and sugar stocks

Investors are likely to take cues from global peers on Wednesday. In a tit-for-tat move, China added $60 billion of US products to its import tariff list in retaliation for President Donald Trump’s planned levies on $200 billion worth of Chinese goods. That apart, movemement in the rupee will also be keenly watched. At 07:39 am, the Nifty futures on the Singapore Stock Exchange (SGX) were trading 2.50 points or 0.02 per cent lower at 11,312.50.

Below is the list of top stocks that may hog the limelight in today's session -

Reliance Communications: At the 14th AGM, RCom Chairman Anil Ambani announced that the company will exit telecom business completely, owing to intense slugfest in the sector and instead focus on real estate.

MCX: The stock may remain in focus today after Sebi on Tuesday has approved a proposal to allow foreign investors to trade in commodity derivatives market.
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Merger negative for Vijaya Bank, BoB; don't rush to buy PSBs, say analysts

The three state-owned banks ‐ Bank of Baroda, Dena Bank and Vijaya Bank ‐ saw a mixed reaction at the bourses on Tuesday, a day after the government proposed to amalgamate them into a combined entity.

The largest of the three, Bank of Baroda, tanked over 10 per cent in intra-day deals to Rs 116 levels on the NSE, Dena Bank hit its upper circuit limit for the day of 20 per cent at Rs 19.05. Vijaya Bank, too, moved up over 2 per cent to hit an intra-day high of Rs 66 on the NSE. In comparison, the Nifty 50 was trading flat.

While calling it a step in the right direction, analysts say this merger could be a game changer for the PSU banking space and throws up the possibility of public sector banks (PSBs) being ultimately consolidated into seven large entities going ahead.

“The move is a step in the right direction. Vijaya Bank is concentrated in southern India where Bank of Baroda does not have much presence. Dena Bank has a focus in Maharashtra. Such a strategy would also minimise the need for retrenching a significant number of employees and also for shutting down of a large number of branches as the concentration of these three banks are largely unique in terms of geographies and they would complement each other,” says G Chokkalingam, founder and managing director at Equinomics Research.

Bank of Baroda tanks 14%, Dena Bank hits upper circuit on merger news

Shares of state-run lender Bank of Baroda declined as much as 14 per cent in the early trade on Tuesday after the government on Monday announced it will will merge state-owned Vijaya Bank, Dena Bank and Bank of Baroda to create India's third largest lender.

Cheered by the news, Dena Bank hit an upper circuit limit of 20 per cent in the opening deals while Vijaya Bank was trading flat at Rs 60.20 apiece on BSE, up 0.67 per cent.

The central government on Monday proposed to create the country’s third-largest bank by amalgamating Mumbai-based Dena Bank and Bengaluru-based Vijaya Bank with much larger Bank of Baroda (BoB) in an all-stock deal. The banks’ boards are expected to meet in 10 days to take a call. The deal, though, is almost a certainty since the government is the majority owner. READ MORE

“The government had announced in the Budget that consolidating banks was on our agenda and the first step has been announced,” Finance Minister Arun Jaitley said. He justified the action, stating that the government and the Reserve Bank of India (RBI) were forced to take “concrete steps” once the asset quality review of banks revealed the bad debt rot in Indian banks was far deeper than what was projected earlier.

BoB, Dena Bank, Vijaya Bank, HCL Tech among top stocks to track

Below is the list of top stocks that may remain on investors’radar in today's session -

BoB, Dena Bank, Vijaya Bank: Shares of the three lenders are likely to remain in focus after the government on Monday proposed to create the country’s third-largest bank by amalgamating Mumbai-based Dena Bank and Bengaluru-based Vijaya Bank with much larger Bank of Baroda (BoB) in an all-stock deal. The banks’ boards are expected to meet in 10 days to take a call.

Tata Motors: Tata Motors-owned Jaguar Land Rover on September 17 confirmed a cut in its production schedule at the Castle Bromwich plant manufacturing Jaguar cars in the West Midlands region of England due to "continuing headwinds" impacting the British car industry.

Idea Cellular: According to news reports, the board of Vodafone Idea has approved the merger of its unit Aditya Birla Telecom (ABTL) with itself, moving a step closer towards monetizing the company's 11.15 per cent stake in Indus Towers to pare debt.

Avenue Supermarts: The company said in a BSE filing that it has issued Commercial Papers of Rs 70 crore on September 17, 2018.