Infibeam Avenues turns volatile; surges over 80% in intra-day trade

Shares of Infibeam Avenues have turned volatile on Monday surging over 80% from their record low touched in early morning trade on the BSE on back of heavy volumes.
Infibeam Avenues has moved higher by 20% to Rs 70.55 on the BSE in intra-day, bouncing back 84% from its record low of Rs 38.40 touched in early morning trade today.

The stock plunged 35% in early morning trade today, tanked 82% in past three trading days from Rs 215 on Wednesday, September 26, 2018. Despite today’s gain from its record low, the stock was still down 70% in past three trading days. It hit an all-time high of Rs 243 on September 18, 2018, on the BSE in intra-day trade.

At 10:07 am; the stock was up 14% at Rs 67.10 against its Friday’s close of Rs 58.80. The trading volumes on the counter more than doubled with a combined 70 million equity shares changed on the BSE and NSE.

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Bandhan Bank tanks 20% as RBI bars it from opening new branches

Shares of Bandhan Bank are locked in lower circuit of 20% at Rs 451 per share on the BSE following Reserve Bank of India’s (RBI's) decision to stop the private sector lender from opening new branches and freezing the remuneration of its managing director & chief executive officer (MD & CEO) Chandra Shekhar Ghosh.
The stock was trading at its lowest level since its listing on March 27, 2018. It has fallen 39% from its all-time high level of Rs 741 touched on August 9, 2018, on the BSE in intra-day trade.

The trading volumes on the counter more than doubled with a combined 3.79 million shares changed hands on the NSE and BSE till 09:30 am. There were pending sell orders for 3.57 million shares on both the exchanges so far.

“The RBI has communicated to us that since the Bank was not able to bring down the shareholding of Non Operative Financial Holding Company (NOFHC) to 40% as required under the licensing condition, general permission to open new branches stands withdrawn and the Bank can open branches with prior approval of RBI,” Bandhan Bank on Friday said in a regulatory filing.

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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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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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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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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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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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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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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. 

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.
Read More

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.

Today's picks: From Asian Paints to M&M, hot stocks to watch on Friday

Nifty
Current: 10,957 (fut: 10,983), Target: NA
Stop-long positions at 10,900. Stop-short positions at 11,055. Big moves could go till 11,100, 10,850. A long 10,900p (49), short 10,800p (29) could gain 15-20 if the index dips below 10,900.

Bank Nifty
Current: 26,790 (fut: 26,852)
Target: NA
Stop-long positions at 26,725. Stop-short positions at 26,975. Big moves could go till 27,150, 26,500. Slight negative bias.

Asian Paints
Current price: Rs 1,403
Target price: Rs 1,425
Keep a stop at Rs 1,395 and go long. Add to the position between Rs 1,415 and Rs 1,420. Book profits at Rs 1,425.

PowerGrid
Current price: Rs 177
Target price: Rs 174
Keep a stop at Rs 179 and go short. Add to the position between Rs 175 and Rs 176.
Book profits at Rs 174.

Mahindra & Mahindra
Current price: Rs 913
Target price: Rs 930
Keep a stop at Rs 905 and go long. Add to the position between Rs 923 and Rs 927. Book profits at Rs 930.

Today's picks: From Hindalco to HDFC, hot stocks to watch on Thursday

Nifty
Current: 10,980 (fut: 10,986) Target: NA
Stop-long positions at 10,900. Stop-short positions at 11,075. Big moves could go till 11,100, 10,850. A long 10,900p (51), short 10,800p (32) could gain 10-15 if the index tests 10,900.

Bank Nifty
Current: 26,880 (futures: 26,968)
Target: NA
Stop-long positions at 26,825. Stop-short positions at 27,100. Big moves could go till 27,275, 26,700. Trend may have a negative bias.

Hindalco
Current price: Rs 212.5
Target price: Rs 208
Keep a stop at Rs 215 and go short. Add to the position between Rs 209 and Rs 210. Book profits at Rs 208.

Lupin
Current price: Rs 811
Target price: Rs 795
Keep a stop at Rs 820 and go short.
Add to the position between Rs 797 and Rs 802. Book profits at Rs 795.

HDFC
Current price: Rs 2,009
Target price: Rs 2,040
Keep a stop at Rs 1,990 and go long. Add to the position between Rs 2,030 and Rs 2,035. Book profits at Rs 2,040.

Today's picks: From Indian Oil to Bharti Airtel, hot stocks to watch today

Nifty
Current: 11,008 (fut: 11,027), Target: NA
Stop-long positions at 10,945. Stop-short positions at 11,105. Big moves could go till 11,150, 10,900. A long 10,900p (36), long 11,100c (41) can be offset with a short 10,800p (21), short 11,200c (17). The position costs 39, with breakevens at 11,139, 10,961.

Bank Nifty
Current: 27,008 (futures: 27,063)
Target: NA
Stop-long positions at 26,900. Stop-short positions at 27,200. Big moves could go till 27,350, 27,750. Trend may be slightly positive.

Indian Oil
Current price: Rs 165
Target price: Rs 168
Keep a stop at Rs 163 and go long. Add to the position between Rs 166 and Rs 167.
Book profits at Rs 168.

Bharti Airtel
Current price: Rs 342
Target price: Rs 337
Keep a stop at Rs 345 and go short. Add to the position between Rs 338 and Rs 339.
Book profits at Rs 337.

Bharti Airtel, Idea Cellular, Tata Comm hit 52-week lows

Shares of telecom services providers (telcos) are under pressure with all major listed stocks – Bharti Airtel, Idea Cellular and Tata Communications – hitting their respective 52-week lows on the BSE, on concerns of weak earning in June quarter (Q1FY19).
Idea Cellular (down 6% to Rs 49.50), Tata Communications (5% at Rs 543) and Bharti Airtel (3% at Rs 331) were down in the range of 3% to 6%, as compared to 0.32% rise in the S&P BSE Sensex at 11:17 am.

In past one month, these three stocks have fallen in the range of 10% to 20% against 3% rise in the benchmark index.

According to Motilal Oswal Securities, the spillover of the fresh round of undercutting by operators from 4QFY18 to 1QFY19 continued to take a toll on telcos’ revenue.

Further, consolidation in the telecom sector had fuelled the exit of tenancies, leading to higher tenancy cost per operator. This, coupled with installation of cell sites on fresh towers (non-loading) and soaring diesel prices, is expected to increase the QoQ network cost for all operators, the brokerage firm said in Q1FY19 results preview.

YES Bank hits new high; rallies 15% in 9-days on SEBI nod to launch MF biz

Shares of YES Bank hit a new high of Rs 386 per share, rising 2% on the BSE, and moving higher for the ninth straight trading session after the bank said that it has received approval from capital markets regulator SEBI to start mutual fund business. The stock surpassed its previous high of Rs 385 recorded on July 12, 2018 in intra-day trade.
“This approval is subsequent to the Reserve Bank of India’s (RBI) approval granted to Yes Bank to sponsor a mutual fund followed by SEBI’s in-principle approval received subsequently,” the bank said in a statement on July 4, 2018.

In past nine trading sessions, YES Bank has rallied 15% as compared to 2% rise in the S&P BSE Sensex.

Meanwhile, Motilal Oswal Securities expect YES Bank’s loan growth to be significantly ahead of the system at 57% YoY on the back of refinancing opportunities and strong growth in retail banking.

Hindustan Unilever slips 3% post Q1 results on profit booking

Shares of Hindustan Unilever (HUL) have slipped 3% to Rs 1,701 per share on the BSE on Tuesday due to profit booking after the fast moving consumer goods (FMCG) company reported strong numbers for June 2018 quarter (Q1FY19), broadly in-line with analyst estimates.
The stock has fallen 4.4% from its all-time high of Rs 1,780 recorded in early morning trade on BSE today. The S&P BSE Sensex was trading 0.17% higher at 36,384 points at 10:09 am.

In calendar year 2018, HUL had outperformed the market by surging 28% as compared to 7% rise in the benchmark index till Monday. In past one year, it had rallied 54% against 13.4% gain in the Sensex.

HUL Q1FY19 performance was in line with expectations though the growth in domestic consumer sales volumes at 12% was better than expectations. During the quarter, reported revenue grew at 11%YoY at Rs 95 billion. EBIDTA and net profit grew at a higher rate of 21% YoY and 19% YoY respectively to Rs 22.5 billion and Rs 15.7 billion, respectively.