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.

For updates on current events subscribe to Business Standard

Ambuja Cements hits 52-week low, falls 11% so far in May

Shares of Ambuja Cements hit a 52-week low of Rs 222 per share, down 1%, falling 11% thus far in the month of May in otherwise firm market. The S&P BSE Sensex was up nearly 1% so far in the current month.
In past one week, the stock declined 7% after the company reported lower than expected 3% year on year (YoY) volume growth in March quarter (Q1CY18) against industry volume growth at 8% YoY.


Net sales of the company in Q1CY18 grew 9% at Rs 27.63 billion on a y-o-y basis attributable to improved realisations and sales growth of premium brands - Compocem and Roof Special. Net profit was up 10% at Rs 2.72 billion over the previous year quarter, Ambjua Cements said in a press release.

“Despite healthy industry volume growth, severe infighting among producers is keeping cement prices suppressed amid increasing costs. Standalone volume growth for Ambuja Cements is likely to be subdued in the medium term on account of nil capacity expansions till 2HCY20,” analysts at IIFL Institutional Equities said in result review with ‘reduce’ rating on the stock and target price of Rs 222.

“In Q1CY18, the company’s growth was mainly driven by healthy realisation growth while volume growth has been a laggard. However, going forward, the pick-up in road tendering activities, improved sand availability in certain key states and healthy demand from government’s low cost housing programme are expected to be key drivers of cement demand,” analysts at ICICI Securities said in result update.

Cement shares trade firm; ACC, Ambuja Cements up 3%

MARKET - Shares of cement corporations were buying and selling higher by way of as much as 7% on the BSE in midday deal on expectation of production recovery in October-December (Q3) zone of FY17.

The frontline cement shares like ACC, Ambuja Cements, India Cements, UltraTech Cement and Shree Cement have been up within the variety of 1% to 4% at 01:35 PM; in comparison to 0.06% upward push inside the S&P BSE Sensex. Sanghi Industries, Saurashtra Cement, NCL Industries, Mangalam Cement and KCP have been up between 2% to 5% on BSE.

For the length April‘17 to July’17, the cement production has declined by means of 3.5% to 95.37 million tonnes vs 98.87 million tonnes in the course of the equal period last year.

real estate and housing which constitutes -0.33 of the cement consumption has seen very low inventory addition as claimed with the aid of numerous enterprise sources.

CARE ratings expects the same to persist as clarity on RERA implementation could hold to conform at some point of the coming quarters. The newly carried out Act (RERA) along with the guidelines and compliances is making builders careful.
Infrastructure previously contributed for 13% of the overall consumption in India. With multiplied government spend and low interest in real property, Infrastructure’s share in cement consumption would inch upwards of 15% all through the modern fiscal 12 months. Roads and Public infrastructure improvement is predicted to push the demand for cement in the two coming quarters, the rating employer said in cement quarter replace.

Nifty outlook and 3 trading ideas for today's session: Prabhudas Lilladher

STOCK MARKET - Few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher:

Nifty Outlook

Nifty is showing some resistance at the peak levels, post RBI announcement market witnessed some selling pressure. However near-term support lies at 10,020 while a decisive break can drag it to 9,960 level. The support for the day lies at 10,030 while resistance is seen at 10,125.


BUY AMBUJA CEMENTS    

CMP: Rs 266.60    
TARGET: Rs 290      
STOP LOSS: Rs 256

The stock after giving a small correction has made a higher bottom formation pattern in the daily chart with a positive candle and also has been accompanied by decent volume participation. The RSI indicator has given a positive trend reversal to signal a buy and we anticipate the stock to further rally to reach new targets on the upper side. We recommend a buy in this stock for an upside target of Rs 290 keeping a stop loss of Rs 256.

BUY IRB INFRA    

CMP: Rs 225.85    
TARGET: Rs 245      
STOP LOSS: Rs 213

GET LIVE UPDATES ON MARKET