Nifty outlook and top stock recos from Prabhudas Lilladher for today

STOCK MARKET - Nifty outlook and few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher:
NIFTY VIEW
Market was trading almost flat throughout the session and the last final hour saw some profit booking to see the indices Nifty and Sensex to close in the mild red erasing the early gains. The support for the day is seen at 10,380 while resistance is seen at 10,500.

LIC HOUSING FINANCE – BUY
CMP: Rs 569.50  
STOP LOSS: Rs 540      
TARGET: Rs 600
The stock has made a good correction from around 675 price to consolidate near the 536 levels which is forming a good support level. The stock has made a good recovery with huge volume participation and with RSI indicator on the rise, we recommend this stock for a Buy keeping a stop loss of 540 for an upside target of 600

SADBHAV INFRA - BUY
CMP: Rs 145.05      
STOP LOSS: Rs 135    
TARGET: Rs 160
The stock after making a higher bottom formation has recovered to bounce back to its previous peak level of around 150 and is on the verge of a breakout with increasing volume participation. Also with the positive RSI indicator supporting the upward move, we recommend to Buy this stock for an upside target of 160 keeping a stop loss of 135.

LARSEN & TOUBRO – BUY
CMP: Rs 1,230.15          
STOP LOSS: Rs 1,175  
TARGET: Rs 1,350
The stock has been consolidating for some time at around 1180 to 1220  levels and now it has given a spurt with a positive candle pattern accompanied with good volume. The RSI indicator has been on the rise, we recommend a buy in this stock for an upside target of 1350 keeping a stop loss of 1175

LIC to take it slow in equity investments after bumper buy this year

STOCK MARKET - State-owned Life Insurance Corp of India (LIC) will likely slow stock purchases for the rest of the fiscal year after nearly doubling its equity market investments in the first half from a year earlier.

LIC, with assets of Rs 2,726,000 crore ($423.3 billion) as of end-September, had a target of investing Rs 50,000 crore in stocks through the year which ends in March.

During the first six months of that period, LIC’s stock market investments more than doubled from a year earlier to Rs 39,224 crore. As of end-November it had bought equities worth about Rs 44,000 crore, top executives said.

They added they would look at opportunities to take some profit off the table.

Powered by strong fund inflows, Indian markets have hit a string of record highs this year, with the main market index gaining nearly 24 percent year-to-date.

“We will sell wherever we have opportunity,” V.K. Sharma, LIC’s chairman, told reporters. “We are contrarians and market is at peak.”

The surge in LIC’s equity investments to date has been partly driven by the insurer subscribing to some of the stakes being sold by the Indian government in a clutch of companies as part of its asset sales programme.

LIC reduces 2.14% stake in Tata Global Beverages, sells 1.35 crore shares

STOCK MARKET - Life Insurance Corporation (LIC) has reduced its stake in Tata Global Beverages by 2.14 per cent, selling 1.35 crore shares in the market.

The public sector insurer, which had 9.85 per cent stake earlier, brought down its shareholding in the company to 7.70 per cent by selling shares between July 20, 2016, and July 4, 2017, Tata Global Beverages (TGBL) said in a filing to BSE.

TGBL's tea brand includes Tata Tea, Tetley, Good Earth Teas, Vitax, teapigs and JEMCA.

It is the world's second-largest manufacturer and distributor of tea with significant brand presence in over 40 countries across Asia, Europe, North America, the Middle East, Africa and Australia.

In coffee segment, it has brands as Eight O'Clock and Grand. The Tata group firm also operates a coffee chain with Starbucks in India in a 50:50 joint venture.

Shares of TGBL were trading at Rs 175 apiece, down 1.02 per cent, on BSE.

Govt raises Rs 6,700 cr from 2% stake sale in ITC

India has sold a 2 per cent stake in consumer goods and cigarettes maker ITC Ltd, raising about Rs 6,700 crore ($995 million) for the government, three sources with direct knowledge of the deal said on Tuesday.

State-owned Specified Undertaking of Unit Trust of India (SUUTI), which owned 11.12 per cent of ITC as of end-December, pared the stake via block deals in the market, the sources said.

Life Insurance Corp (LIC), which typically invests heavily in government divestments, bought the stake, the sources added. While LIC is fully owned by the government, its financials are independent of the government's budget.

ITC shares rose as much as 5.5 per cent in early trade to a record high of Rs 292.15 after news of the sale.

Neeraj Gupta, the top bureaucrat looking after state stake sales, confirmed a deal had happened, but declined to give details. India plans to raise Rs 45,500 crore from asset sales in the year to March to help fund its fiscal deficit.(Read More)