Top trading calls by Anand Rathi Research for today: Buy Tech Mahindra, HUL

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

NIFTY: BUY
TARGET: 11,157
STOP LOSS: 10,920
Nifty closed well in the positive territory in the last trading session and has formed a bullish engulfing candlestick pattern which is quite a positive sign for the bulls in the short term. On the lower side, the Index has again taken a good support at its 200DMA which is also quite positive in the short term. So, now till 10775 levels aren’t broken the Index can bounce till 11157 levels.

TECH MAHINDRA: BUY
TARGET: Rs 839
STOP LOSS: Rs 724
The stock has formed a symmetrical triangular pattern and the momentum indicator has also provided a buy crossover on the daily charts which is a positive sign going forward. The minimum target comes to 839; one can buy this with a stop loss of 724 levels.

AUROBINDO PHARMA: BUY
TARGET: Rs 810
STOP LOSS: Rs 730
The stock seems to have completed a three wave corrective fall and with that, it seems to have completed a wave 4 correction on the daily, as well as weekly charts. Now, wave 5 up seems to have started which has a minimum target of 810 and thereafter 730 levels.

HINDUSTAN UNILEVER: BUY
TARGET: Rs 1,680
STOP LOSS: Rs 1,610
The stock seems to have completed a five-waves declining structure and a three wave corrective bounce is expected. The daily momentum indicator MACD has come into buy mode, hence we recommend buying this stock.

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.

Hindustan Unilever hits new high ahead of Q1 results

Shares of Hindustan Unilever (HUL) hit a new high of Rs 1,770 per share, up 1.6% on the BSE in intra-day trade so far on Monday, ahead of its results for the June quarter (Q1FY19) later in the day.
Since May 14, 2018, after March quarter (Q4FY18) results, HUL has outperformed the market by surging 17.5% as compared to 2.8% rise in the S&P BSE Sensex. Thus far in the calendar year 2018, the stock of fast moving consumer goods (FMCG) company has rallied 29% against 7.3% gain in the benchmark index.

HUL is the largest FMCG Company in India, operating across a host of categories in home care, personal care and foods.

ICICI Securities expect HUL to post 12.9% comparable sales growth in Q1FY19 mainly led by volume growth of 8% as GST rate cut on detergents in November 2017 has led to price cuts by the company during the quarter along with its focus on premiumisation and market share gains.

“Due to higher raw material and advertisement costs, the operating margin is expected to remain flat at 21.7%. We expect net profit to grow 16.5% to Rs 14.95 billion,” the brokerage firm said in Q1FY19 result preview.

IT, Private Banks, RIL, HUL help Sensex to hit record high

Shares of heavyweight companies from the information technology (IT) sector, private banks along with Reliance Industries (RIL) and Hindustan Unilever (HUL) have helped the S&P BSE Sensex hit a record high of 36,463 on Thursday. The benchmark index surpassed its previous high of 36,2443.98 recorded on January 29, 2018.

Nifty 50 index, which touched high of 11,015.45 in intra-day trade today, is 1.4% away from its all-time high of 111,71.55 recorded in January this year.

Besides Tata Consultancy Services (TCS) and Infosys from the IT pack, a rally in Kotak Mahindra Bank, IndusInd Bank and HDFC Bank from private banking space, Asian Paints and Mahindra & Mahindra (M&M) are some of the stocks that helped the S&P BSE Sensex record a new high today.

FMCG index hits new high; HUL, Godrej Consumer at record levels

Shares of fast moving consumer goods (FMCG) companies continued at their upward march on Wednesday with the Nifty FMCG index hitting a new high of 29,958 on the National Stock Exchange (NSE), fuelled by expectations of a healthy performance in June quarter, aided by a low base and a healthy underlying demand scenario.

Hindustan Unilever (HUL), Godrej Consumer Products (GCPL), Jubilant FoodWorks and Marico from the Nifty FMCG index hit their respective record highs on the NSE in intra-day trade today. At 11:43 am; Nifty FMCG index was up 0.75% at 29,938, as compared to 0.10% decline in the Nifty 50 index.


Thus far in the current calendar year 2018 (CY18), the FMCG index has rallied 11% against 4% rise in the benchmark index. Jubilant FoodWorks (up 61%), Britannia Industries (35%), GCPL (26%) and HUL (23%) were up more than 20% during this period.

Hindustan Unilever, Maruti Suzuki, ACC, Power Grid hit new highs

STOCK MARKET - Five companies – Hindustan Unilever (HUL), Maruti Suzuki India, Adani Ports and Special Economic Zone (SEZ), ACC and Power Grid Corporation – from the Nifty50 index hit their respective all-time highs on the National Stock Exchange (NSE) in intra-day trade on Tuesday.

Other companies like Biocon, Birla Corporation, Dalima Bharat, Future Consumer, OCL India, Quess Corp and Tata Investment Corporation from the Nifty 500 and S&P BSE 500 indices hit their record highs too in today's trade.

HUL hit a new high of Rs 1,190, up 3% on BSE in intra-day, ahead of April-June quarter (Q1FY18) results today.

Analysts at Edelweiss Securities expect HUL to record a volume decline of around 1-2% year-on-year (YoY) on a base of 4% YoY (volumes grew 4% YoY in Q4FY17 on a base of 4% YoY) owing to impact in CSD (canteen-store-departments) sales (CSD offtake has been negligible over past 1 month – CSD contributes 5-6% of sales), destocking in wholesale channel owing to GST.

GST albeit will not impact the consumer demand but destocking by wholesalers is inevitable - share of wholesale lower for HUL and hence impact would be lower compared to many other staple companies.

Sensex flat, Nifty hovers around 9,800 in noon deals; ONGC, HUL top gainers

STOCK MARKET NEWS - Benchmark indices pared some morning gains to trade flat in the noon deals with Nifty trading hovering around 9,800 ahead of June CPI data, to be announce later in the day. Investors expected the inflation to be at record low, which will put pressure on RBI to cut rates in the coming monetary policy review meet.

Asian Markets were also trading mixed amind political controvery surrounding Donald Trump after  emails disclosed by President Donald Trump's eldest son cited Russian support for his father's 2016 election campaign. Street also watched out for US Fed Chair Janet Yellen's testimoney to get clues on timeline of further rate hikes by Fed.

At 11:40 am, the S&P BSE Sensex was trading at 31,768, up 21 points while the broader Nifty50 was ruling at 9,800 up 14 points

In the broader market, the S&P BSE Midcap and S&P BSE Smallcap index rose 0.4% each.

"The overall trend is still positive in the short term wherein 9,900 levels is an immediate target in the short term whereas above 10,000 levels in the medium term. On the lower side, 9,740 is an immediate support and below that 9,710. The momentum indicator MACD is well in the buy mode on the daily charts which is very supportive and bullish in the short term," said Anand Rathi Technicals in a note.

ONGC, HUL, Tata Motors and RIL contributed the most to BSE Sensex while TCS, Bajaj Auto, HDFC Bank and HeroMoto Corp shed the most on the index.

Religare Enterprises extended yesterday's losses, down over 5% after ending in the 20% lower circuit on Tuesday amid speculation that lenders had sold some shares, pledged by the company’s promoters, in the open market. 

Patanjali claims to take on KFC, but its anti-MNC stand is self-destructive

PATANJALI - It was the early 2000s, and as a reporter I was on the trail of the country's biggest food marketer venturing into categories as diverse as pizzas, ice-cream mixes and value-added milk confectionery. There was a bravado in the way the top team of Gujarat Cooperative Milk Marketing Federation (GCMMF) -- popularly known for and as Amul after its larger-than-life brand -- was dismissive of multinational firms dominant in the new markets it was entering.

"We know the modus operandi of the MNCs. We'll embarrass them everywhere," one senior manager told me. In fact, going by the tone and tenor of the conversation I had with the top team at GCMMF's Anand headquarters that sultry July afternoon 14 years ago, it was clear to me that anti-multinationalism, an article of faith with the cooperative besides cost-competitiveness, was getting the better of this otherwise fine institution.

Not that the deep-pocketed multinationals that GCMMF was taking on at that time were intimidated, but any competition from the country's largest integrated food marketer could not be taken lightly. For a while there was a din in the north Indian markets on Amul's plans for frozen Utterly Delicious ready-to-cook pizzas and Snowcap ice-cream mixes.

Fortunately for GCMMF that bravado didn't last long, and the firm quietly withdrew from the new markets, letting the Domino's, Pizza Huts and Perfettis rule the roost. Today, GCMMF is a much stronger firm, with revenues of over Rs 20,000 crore, and a target to more than double it to Rs 50,000 crore in the next four years. It is investing Rs 5,000 crore in its core milk procurement, processing and manufacturing facilities across the country.
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