Buy Apollo Tyres, Aptech and Future Enterprises: Prabhudas Lilladher

STOCK MARKET - Nifty view and few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher:

Nifty View:
The view remains corrective, though on intraday basis we may keep seeing some pull back rally. Only a decisive move in Nifty past 9,850-9,930 levels would change the scenario. The MACD & RSI indicators in the daily chart still indicate a downward bias, however, the support for the day is seen at 9,720 while resistance is seen at 9,810.

APOLLO HOSPITALS - BUY    
CMP: Rs 1,098.50      
TARGET: Rs 1,200      
STOP LOSS: Rs 1040
The stock has given a very steep correction and now has bounced back with decent volume participation making a hockey stick candle pattern in the daily chart to indicate positive bias. The RSI has hit oversold zone and now is making a recovery attempt with a trend reversal signaling a buy. We anticipate further up move in the coming days and hence we recommend a buy in this stock for an upside target of 1200 keeping a stop loss of 1040

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Apollo Hospitals hits 34-month low

STOCK MARKET - Apollo Hospitals Enterprise has slipped 7% to Rs 1,069, its lowest level since October 23, 2014 on BSE, in an otherwise firm market.

The National Pharmaceutical Pricing Authority (NPPA) on Wednesday fixed the price for primary knee replacement of titanium alloy at Rs 38,740 while the price for revision knee replacement of any material was pegged at Rs 62,770.

"It is noticed that orthopedic knee implants are having unjustified, unreasonable and irrational high trade margins leading to their exorbitant prices, which affects the out-of-pocket expenses of patients and lakhs of patients are not able to pay for arthoplasty procedures due to exorbitant prices," said the NPPA notification.

Meanwhile, in past three trading sessions, the stock of healthcare services company tanked 12% after the company’s net profit more-than-halved in June 2017 quarter (Q1FY18).

The standalone net profit of the company declined 51% year-on-year (YoY) to Rs 35 crore from Rs 72 crore in the corresponding quarter of previous fiscal. Income from operations grew 15% to Rs 1,684 crore from Rs 1,465 crore in year ago quarter.

“Earnings before interest, taxation, depreciation and amortisation (EBITDA) declined 7% YoY to Rs 165 crore, affected by regulations on stent pricing, loss from its newly operational Mumbai hospital, higher doctor guaranteed fees and one-time settlement charges,” analyst at Elara Capital said in quarterly update.

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