Buy Asian Paints for target of Rs 1370, SL of Rs 1190: Prabhudas Lilladher

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

NIFTY VIEW
Nifty with its one way fall from 11,750 to a low of 10,200 with oversold zone, a bounce is expected up to 10,500-10,550. The support for the day is seen at 34,220/10,280 while resistance is seen at 34,730/10,420. Volatility index too in its overbought zone, its time it retraces which would bring instability under control. Bank Nifty would observe a range of 24,350-24,880. A close below 10,260 would negate the view and perhaps witness new round of selling.

BUY ASIAN PAINTS
CMP: Rs 1,247.80
TARGET: Rs 1,370
STOP LOSS: Rs 1,190
The stock has corrected from the peak of 1490 and currently has shown signs of bottoming out at around 1190 levels and produced a positive bullish candle to signify strength and potential to rise further in the coming days. The chart looks attractive for initiating a buy call and with RSI indicating a trend reversal from the highly oversold zone, a positive bias has been maintained. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 1370 keeping a stop loss of 1190.

BUY BATA INDIA
CMP: Rs 893.80
TARGET: Rs 1,000
STOP LOSS: Rs 840
The stock has witnessed a steep correction in the past one month from the peak of 1115 to indicate signs of bottom out at around 845 levels and has made the chart look very attractive. The RSI has witnessed a steep fall and currently from the oversold zone has indicated a pullback with a trend reversal to maintain a positive bias and also with good volume activity maintained in the stock, we recommend a buy in this stock for an upside target of 1000 keeping a stop loss of 840.

Buy Voltas for a target of Rs 675, stop loss of Rs 575: Prabhudas Lilladher

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

NIFTY VIEW
Nifty and Bank Nifty gets its weekly trend down, so for now this would be considered a bounce back rally. The support for the week is seen at 37,400/11,300 while resistance is seen at 38,620/11,680. Bank Nifty would have a range of 26,480-27,700. Nifty still has a lower top formation unless it crosses 11,580 decisively, further up move can be expected. Cement stocks have shown some momentum. NBFC too after correcting has given a bounce.

BUY ASIAN PAINTS
CMP: Rs 1,333.90
TARGET: Rs 1,440
STOP LOSS: Rs 1,280
The stock has made a higher bottom formation like pattern in the daily chart and looks very attractive with a decent bounce back to signify strength and potential to rise still further upward in the coming days. The RSI has also hit the oversold zone and has shown a trend reversal to maintain a positive bias. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 1440 keeping a stop loss of 1280.

Sensex falls as rupee slides, oil jumps; SBI, ICICI Bank stocks down

Stock prices tumbled on Tuesday as investors took money off amid rising macro-economic headwinds. The benchmark Sensex fell for a fifth day, while the broader markets clocked their worst single-day performance in nearly two months. Investors were spooked by the sliding rupee, surging bond yields, and oil prices. The rupee dropped to a record low of 71.56 against the dollar, the 10-year government bond yield ended at 8.06 per cent, and Brent crude prices neared $80 a barrel, a level last seen in May.

The Sensex fell 0.4 per cent to close at 38,157.92 points, while the Nifty declined 0.54 per cent to 11,520.3. Sharp gains in technology stocks helped the benchmark mitigate losses. The magnitude of the correction was witnessed in the broader market, with the Nifty Midcap 100 dropping 2.72 per cent — most since February 2 and the Nifty Smallcap 100 index declining 2.6 per cent — most since July 16. On the BSE, there were nearly three declining stocks for every one advancing.

The spike in bond yields and weakness in the rupee took a toll on banking stocks, as investors speculated that the Reserve Bank of India (RBI) maybe once again forced to raise interest rates. The Bank Nifty index fell 1.4 per cent, while the Nifty PSU Bank index declined 3.55 per cent, the most since August 10. Shares of State Bank of India fell 3.2 per cent, while ICICI Bank declined 1.72 per cent. Asian Paints fell 3.5 per cent amid rising oil prices, a key raw material.

Paint stocks in focus; Asian Paints, Berger Paints hit new high

Stock Market - Shares of paint companies were in focus with Asian Paints and Berger Paints India hitting their respective new highs on the BSE on expectation of a healthy volume growth in April-June quarter (Q1FY19).
Berger Paints India has rallied 4% to Rs 307 on the BSE in intra-day trade, surpassing its previous high of Rs 305 recorded on May 29, 2018. Asian Paints hit a new high of Rs 1,348, up 1.7%, extending its past two days 2% gain on the BSE.

Asian Paints earlier today said that the board of directors of the company will meet on Tuesday, 24th July, 2018, to consider and approve the audited standalone financial results of the Company for the quarter ended 30th June, 2018 (Q1FY19).

“Asian Paints likely to record sales growth of around 15% year on year (YoY) to Rs 43.88 billion in Q1FY19 mainly due to around 12% YoY volume growth. Higher volume growth would be largely on account of lower base (GST related de-stocking of inventory),” ICICI Securities said in Q1FY19 results preview.

Asian Paints hits all-time high post Q4 results

Asian Paints hit an all-time high of Rs 1,279, up 5% on the market in early morning trade, after the decorative paint business reported a double digit volume growth in March 2018 quarter (Q4FY18) with improved demand conditions. The stock surpassed its previous high of Rs 1,261 touched on September 14, 2017 on the BSE in intra-day trade.
Net profit of the company increased 4.6% to Rs 4.81 billion in Q4FY18 as compared to Rs 4.59 billion in the previous corresponding period. Revenue from operations grew 14.1% to Rs 44.92 billion over the previous year quarter.

“Good demand conditions in the auto OEM and general industrial business segment led to improved performance of the automotive coating JV (PPG-AP). The performance of industrial coating JV (AP-PPG) saw an improvement in the current quarter based on good growth registered in the powder coating segment,” said K.B.S. Anand, Managing Director & CEO, Asian Paints.

Asian Paints 4QFY18 operating performance was healthy and slightly better than our expectations. Domestic paint volumes grew at estimated 11% YoY, which was an improvement over the previous quarters of FY18. EBIDTA (EBITDA (Earnings before interest, tax, depreciation and amortization) margin expanded 62bps YoY due to lower pressure on gross margins and control on discretionary expenditure, analysts at Antique Stock Broking said in result preview.

Nifty outlook and top trading ideas from Prabhudas Lilladher

STOCK MARKET - Nifty outlook and key trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher:
NIFTY VIEW:
Nifty for now has made a U-turn getting its daily trend turned up after 6 days; however Nifty needs to cross 10,200 levels for further target of 10,280-10,350. The support for the day is seen at 10,120 while resistance is seen at 10,220. This still continues to be a bounce back rally till we see some confirmation above 10,350.

BUY ASIAN PAINTS
CMP: Rs 1,144.40    
TARGET: Rs 1,245    
STOP LOSS: Rs 1,100
The stock has given a decent correction from the  peak of 1200 levels and now has bottomed out at 1099 and produced a positive bullish candle pattern in the daily chart to signify potential and strength to rise further in the coming days. The RSI has hit the oversold area and has indicated a steep rise with a trend reversal thus signaling a buy in this stock. The volume activity has been tremendous in the recent times and thus we recommend a buy in this stock for an upside target of 1245 keeping a stop loss of 1100

BUY RAMA STEEL AND TUBES
CMP: Rs 185    
TARGET: Rs 204    
STOP LOSS: Rs 175
The stock has been consolidating for some time between the range of 180 and 188 levels and now has indicated a positive candle in the daily chart. The indicators are showing a positive bias with favorable factors like the RSI has indicated a steep rise from the bottom to show a trend reversal and signal a buy. The stock looks promising and we recommend a buy in this stock for an upside target of 204 keeping  a stop loss of 175

Nifty outlook and top trading calls for today's trade: Prabhudas Lilladher

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

NIFTY VIEW:
Nifty has been correcting since seven days after making a high of 10,490 to now a low of 10,094. At this juncture, we may see some bounce coming in. However, the near term resistance would be at around 10,250-10,260 levels. The support for the day is seen at 10,060 while resistance is seen at 10,160.


BUY KOTAK BANK
CMP: Rs 1011.50    
TARGET: Rs 1090  
STOP LOSS: Rs 970
The stock has made a double bottom formation pattern in the daily chart after correcting from the peak of 1115 and has indicated a revival with a positive candle to signify potential and strength to rise further in the coming days. The RSI has also shown a trend reversal from the oversold zone and has signaled a buy in this stock. With the stock looking attractive for further gains and with good volume participation, we recommend a buy in this stock for an upside target of Rs 1090 keeping a stop loss of Rs 970.

BUY ASIAN PAINTS
CMP: Rs 1181.55    
TARGET: Rs 1270  
STOP LOSS: Rs 1140
The stock has been more or less in a consolidation phase and has been indicating a bullish candle pattern in the daily chart, signifying further potential and price rise to come. The stock looks well set for an upward movement with positive bias and RSI also indicating a steep rise has shown a trend reversal. With volume activity on the rise, we anticipate the stock to move till Rs 1270 levels and thus recommend a buy for an upside target of Rs 1270 keeping the base support  at Rs 1140.

Technical calls: Buy Pidilite Industries, Asian Paints, Kajaria Cements

STOCK MARKET - Few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher
NIFTY VIEW:
Market continues to consolidate at these levels for now with THE Nifty holding the support of 10,250. The support for the day lies at 10,240, while resistance lies at 10,350. Select stocks are in round of momentum and we maintain a cautious view if Nifty breaches the level of 10,200 downside.

BUY PIDILITE INDUSTRIES
CMP: Rs 812.75    
TARGET: Rs 880  
STOP LOSS: Rs 760
The stock has taken support at the significant 200-DMA and it has given a good bounce-back from there on to signify strength and potential to rise still further upward in the coming days. The RSI has indicated a steep rise and has shown a trend reversal signaling a buy in this stock. With tremendous volume witnessed, we recommend a buy in this stock for an upside target of Rs 880 keeping a stop loss of Rs 760.

BUY ASIAN PAINTS
CMP: Rs 1195.60    
TARGET: Rs 1270  
STOP LOSS: Rs 1140
The stock has got a good strong base at around Rs 1120-1135 levels and now it has regained strength producing a positive candle pattern in the daily chart and we anticipate the stock to move towards the previous peak level of Rs 1260 in the coming days. The RSI has also indicated a trend reversal signaling a buy and thus supporting our view of a positive bias to move in the upward direction. We recommend a buy in this stock for an upside target of Rs 1270 keeping a stop loss of Rs 1140.