Short-term outlook for market remains negative: Devang Shah

NIFTY
CLOSE- 10,930.45 (28.09.2018)
The markets closed the 4th consecutive week in negative territory. It was highly volatile for the week. It was traded in the broad range of 11,170-10,850 levels during the week. It made a low of 10,850.30 levels during the week. Break of this lows will confirm the extension of correction for further lower levels targets as mentioned below in short term. Till that market may trade in a range with high volatility. As Market is in oversold zone, we may see surprise pullback rally in short term. But one should follow trend till it reverses. The short-term outlook for the market remains negative till it finally confirms the end of these wave-IV short-term corrections.Stock Picks:

TATA GLOBAL - BUY
CLOSE – Rs 232.50
TARGET – Rs 242-252
TATA GLOBAL closed the weekly in negative territory. Its outperforming in short term. Its consolidating in a narrow range in short term. Its daily momentum indicators are in BUY. It’s trading above 20DMA. Risk Reward is favourable to BUY at current levels. One can BUY with a stop loss of Rs-212 for the target of Rs 242-252 levels in short-term.

NTPC - BUY
CLOSE – Rs 167.60
TARGET – Rs- 178
NTPC closed the weekly in positive territory. Its Outperforming in short term. Risk Reward is favorable to BUY at current levels. Its weekly momentum indicators are in BUY. It closed above 40 DMA. One can BUY with a stop loss of Rs-163.80 for the target of Rs-178 levels in short-term.

Business Standard YouTuve channel

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.

Business Standard

Short-term outlook for market remains negative: Devang Shah

NIFTY 
CLOSE- 11143.10 (21.09.2018)
Market closed third consecutive week in negative territory. It has fallen sharply beyond anticipation during the week. It has completely deteriorated wave count structure on main indices as expected. It made a low of 10,866.45 levels on Nifty and 35,993.64 levels on Sensex so far in this correction. Break of these lows will lead to extension of correction for further lower levels targets as mentioned below in short term. Till then, market may trade in range with high volatility. Short term outlook for market remains negative till it finally confirms end of these wave-IV short term correction

Stock Picks:

GRASIM - BUY
CLOSE – Rs 1,048.40
TARGET – Rs 1,100 -1,150 GRASIM closed the week in negative territory. Its consolidating in narrow range in short term. Its daily momentum indicators are in BUY. It’s trading above 40DMA. Risk Reward is favourable to BUY at current levels. One can BUY with a stop loss of Rs 999 for the target of Rs 1,100-1,150 levels in short-term.

POWERGRID - BUY
CLOSE – Rs- 200.20
TARGET – Rs- 210
POWERGRID closed the week in positive territory. Its Outperforming in short term. Risk Reward is favorable to BUY at current levels. Its daily momentum indicators are in BUY. One can BUY with a stop loss of Rs 186 for the target of Rs 210 levels in short-term.

Business Standard YouTube Channel

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.

Get latest updates on News from Business Standard YouTube channel

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.

Get more updates on Market on Business Standard

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

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.

Nestle India market cap crosses Rs 1-trillion; stock rises 50% from Feb low

Nestle India on Tuesday became the third listed fast moving consumer goods (FMCG) company to join the elite club of firms that have seen their market capitalisation (market cap) soar past the Rs 1 trillion mark.
With Rs 1.01 trillion market cap, Nestle India stands at 28th position in overall market-cap ranking at 11:23 am; the BSE data shows. The stock is trading at its all-time high level of Rs 10,450, up 2.4% in otherwise subdued market. The S&P BSE Sensex was trading 0.12% or 45 points higher at 36,369 levels.

Hindustan Unilever (HUL) is the country’s most valued FMCG Company with a market cap of Rs 3.67 trillion, while ITC have market cap of Rs 3.32 trillion, data shows.

Thus far in the calendar year 2018, Nestle India has outperformed the market by surging 33%, as compared to 7% rise in the Sensex. The stock rallied 50% from its February 9, 2018 low of Rs 6,959 against 7% rise in the benchmark index.