Today's picks: From TCS to Tata Motors, hot stocks to watch on Friday

Nifty
Current: 10,977 (fut: 11,043)
Target: NA
Stop-long positions at 10,950. Stop-short positions at 11,125. Big moves could go till 11,175, 10,900. A long 10800p (111) short 10,700p (86) will pay 10-15 if the index drops to 11,900.

Bank Nifty
Current: 25,042 (futures: 25,269)
Target: NA
Stop-long positions at 25,100. Stop-short positions at 25,400. Big moves could go till 25,600, 24,900. Trend remains negative.

TCS
Current price: Rs 2,188
Target price: Rs 2,220
Keep a stop at Rs 2,170 and go long. Add to the position between Rs 2,210 and Rs 2,215.
Book profits at Rs 2,220.

Tata Motors
Current price: Rs225
Target price: Rs220
Keep a stop at Rs 228 and go short. Add to the position between Rs 221 and Rs 222. Book profits at Rs2 20.

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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Ashok Leyland, Bajaj Auto gain; Maruti Suzuki falls post August sales

Shares of select automobiles companies such as Ashok Leyland, Bajaj Auto, and Eicher Motors were trading higher by up to 4% on Monday after reporting good vehicle sales in the month of August.
Ashok Leyland, the largest gainer among the auto pack, was up 4.4% to Rs 135 on the National Stock Exchange (NSE) as the company reported a growth of 27% year-on-year (yoy) in its total sales at 17,386 units for August. It had sold 13,637 units during the same month of last year, according to its filing to the exchanges.

Sales of medium and heavy commercial vehicles (M&HCV) grew 24% to 13,158 units from 10,570 in the year-ago month. It had sold 10,996 units in the month of July 2018.

Bajaj Auto was up 2% to Rs 2,808 after the company today said it posted highest ever monthly sales in the month of August. The company sold total 437,092 units, 30% higher as compared to 335,031 units sold in the same month last year.

Customise your car: Tata Motors to let buyers configure their Harrier SUVs

Tata Motors will soon shift gears to “Do it Yourself” (DIY) mode as a business strategy with the launch of Harrier, a five-seater sports utility vehicle.

Customize Car - As part of the plan, a digital configurator comprising a three-dimensional graphics-based front-end application (app) will allow customers to choose the power train, brakes, suspension types, seating configuration, add-on kits and align the output generated by the tool to company’s back-end manufacturing and supply chain, to churn out the specific order.


The DIY will also straddle to its core truck business empowering buyers to configure the vehicle of their choice. Given the high number of variants and multiple needs of the trucking industry, the technology can be of immense value in reduction in time-to-market, enhance efficiency and create a differentiation, Rajendra Petkar, chief technology officer, Tata Motors, told Business Standard in an interview.

Tata Motors hits over 5-year low; stock falls 41% in 2018 on JLR concerns

Shares of Tata Motors hit an over five-year low of Rs 253 per share, down 5% in intra-day trade, after the CEO of company owned Jaguar Land Rover (JLR), Britain’s biggest carmaker, reportedly warned that a hard Brexit would cost 1.2 billion pounds a year. The Stock Market was trading at its lowest level since April 8, 2013 on the BSE.
“Extra costs and delays in parts deliveries coming from outside the U.K. would cut profit by 1.2 billion pounds a year, Ralf Speth, chief executive officer of the manufacturer owned by Tata Motors Ltd., said late Wednesday in an emailed statement,” the Bloomberg report suggested.

Thus far in the calendar year 2018, Tata Motors underperformed the market by falling 41%, has seen market capitalisation erosion of Rs 547 billion at Rs 822 billion. On comparison, the S&P BSE Sensex was up 4.7% during the period.

Analysts at Prabhudas Lilladher expect volumes for JLR to be subdued over the next few quarters due to global headwinds and uncertainty over diesel engines, however the brokerage firm believe the management’s aggressive cost reduction efforts would enable JLR to achieve its stated near term EBIT margins of 4-7% over FY19-21.

Tata Motors' market-cap falls below that of Bajaj Auto, Eicher Motors

Stock Market - Tata Motors market capitalisation (market-cap) has fallen below that of Bajaj Auto and Eicher Motors after a 10% decline in the market price of the company amid concerns over auto tariff threat by the US.

At 01:33 pm; Tata Motors market-cap stood at Rs 799.65 billion, lower than Bajaj Auto (Rs 812.19 billion) and Eicher Motors (Rs 799.71 billion), the BSE data shows.

However, if one includes the Tata Motors DVR market cap of Rs 84 billion, the truck maker would still rank third, after Maruti Suzuki India (Rs 2.68 trillion) and Mahindra & Mahindra (Rs 1.13 trillion).

Tata Motors slipped 5% to Rs 276, falling 10% in past two trading sessions from Rs 308 on Friday. The stock trading at its lowest level since February 12, 2016, declined 36% thus far in the current calendar year 2018. On comparison, the S&P BSE Sensex was up 4% during the same period.

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Tata Motors extends gain as JLR reports strong retail sales in May

Tata Motors was up 2.4% to Rs 312, extending its past two days 7% rally on the BSE, after Jaguar Land Rover (JLR) reported total retail sales of 48,281 vehicles in May 2018, up 6.1% year on year. The growth for JLR (Ex-China geography) stood strong at 11% YoY which has been highest growth in last 14 months.
The sales growth was primarily driven by the introduction of new models including the Range Rover Velar, the Jaguar E-PACE and the new Land Rover Discovery, Tata Motors said in a statement.

Thus far in the calendar year 2018, Tata Motors had underperformed the market by falling 34% as compared to 2.5% rise in the S&P BSE Sensex till Tuesday, June 5, 2018.

Analysts at Elara Capital believe Tata Motors is currently pricing in extreme pessimism of a flattish volume growth for JLR for FY19E.

“We have factored in a volume CAGR of 7% over FY19-20E for JLR. YTDFY19 retail volume growth for JLR stands at 9% with China yet to bounce back; while we remain watchful of Europe (-9% in YTDFY19) and UK growth sustainability (+23% YoY). The mgmt in their India business analyst meet too highlighted their path to sustained FCF and achieving EBIT margin guidance of 3-5%,” the brokerage firm said in company update.

Tata Motors hits lowest level since February 2016 on weak Q4 results

Tata Motors plunged 8% to Rs 286, its lowest level since February 2, 2016 on the market in early morning trade, after the Tata Group Company reported a consolidated net profit of Rs 21.75 billion against an average analysts estimates of Rs 42.30 billion for the March quarter (Q4FY18). The company’s profits for the March quarter nearly halved from Rs 43.36 billion in year ago quarter, due to higher expenses and a one-time impairment charge.

The consolidated income from operations at the firm rose to Rs 912.79 billion over Rs 787.46 billion in the year-ago quarter. The earnings are not strictly comparable due to the implementation of goods and services tax from July, after which the revenue from operations was reported net of GST.

Management expects a strong all-round performance in FY19, with improvement in volume and profitability. JLR EBIT margin target stands at 4-7% (vs 3.8% in FY18) between FY19-21, led by better scale, cost reduction efforts, ramp up of low cost Slovakia plant and reduction in forex losses. In comparison, Standalone EBIT margin target stands at 3-5% (vs 0.5% in FY18), led by better scale and cost reduction efforts.

Tata Motors up 4% after rise in JLR April retail sales

Shares of Tata Motors have moved higher by 4.4% to Rs 347 per share on the BSE after the company owned car-maker in UK, Jaguar Land Rover (JLR) reported 11.9% year on year (y-o-y) growth in total retail sales of 45,180 vehicles in April 2018.
Sales were primarily driven by the introduction of new models including the Range Rover Velar (winner of the 2018 World Car Design of the Year award), Land Rover Discovery and the Jaguar E-PACE, the company said in a press release.

Retail sales for April were up significantly y-o-y in China (28.9%), the UK (25.9%), Overseas markets (21.3%) and North America (2.5%) but down in Europe (-10.2%), with continuing uncertainty over diesel in the UK and Europe, it added.

"It's pleasing to see a marked improvement in the UK. This is mainly due to two all-new models now being on the market but also an artificially low April 2017 caused by taxation changes. The legislative uncertainty around diesel and the resulting lower demand in the UK and Europe continue to have a negative impact on our business,” said Felix Brautigam, Jaguar Land Rover Chief Commercial Officer.

Tata Motors rallies 14% in four days on strong JLR, domestic sales

Shares of Tata Motors have moved nearly 5% higher to Rs 372 per share, extending their 9% surge on BSE in the past three days, after Jaguar Land Rover (JLR) India reported a strong 83% rise in FY18 sales.
Tata Motors-owned JLR on Tuesday said it plans to bring 10 new products in India in 2018-19 (FY19), riding high on 83% jump in sales in the last fiscal.

Meanwhile, in March 2018, Tata Motors registered a growth of 35% at 69,440 units as against 51,309 units over last year due to the continued strong sales performance of its commercial and passenger vehicles business in the domestic market.

The cumulative domestic sales performance of the commercial and passenger vehicles business for FY18 was 586,639 units compared to 478,362 units, a growth of 23%, over FY17, Tata Motors said in a press release.

Market tailwinds help Tata Motors arrest decline in key CV segments

Tata Motors, the country’s biggest commercial vehicle maker, has largely arrested the declining market share in most segments of the business. In fact, the company has increased its Tata Motors Share Price  in light commercial vehicles (LCV) while maintaining the share in medium and heavy commercial vehicles (M&HCV) or trucks. This has helped its domestic business turn profitable during the October-December quarter after five successive loss-making quarters.

The company reported a standalone profit of Rs 1.83 billion in third quarter of FY18 against losses of Rs 10.46 billion in the corresponding quarter of the previous year. Standalone revenues (domestic business) for the quarter rose 59 per cent to Rs 161 billion. The Ebitda (earnings before interest, depreciation, taxation, and amortisation) of the standalone business margin improved 750 basis points to nine per cent during the quarter.

Tata motors stocks gain on file JLR income in 2017; should you make investments?

Stocks of Tata Motors BSE 0.34 % advanced over 2 per cent in early exchange after the car main-owned Jaguar Land Rover (JLR) on Monday published 6.five according to cent upward thrust in international sales to a record 6,21,109 gadgets in 2017.

sales of Jaguar emblem of vehicles all through the year had been at 1,78,601 gadgets, a boom of 20.1 consistent with cent, the corporation stated in a announcement. Land Rover range published income of 4,42,508 gadgets within the year, an increase of 1.8 in line with cent, it added.

For the month of December, JLR mentioned 0.6 consistent with cent increase in retail income to 55,697 cars in December 2017 over December 2016. The assertion became made after market hours on Monday, 8 January 2018.

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Tata motors cruises beyond Honda, becomes country's fourth-biggest vehicle player

Tata Motors’s sales increased 19 per cent this financial year, helping it to race ahead of Japanese carmaker Honda Cars and secure the fourth spot among peers in the domestic market. In the same period, Honda’s sales rose by 17 per cent.

Between April 2017 and January 2018, Tata Motors share price sold 149,284 units of passenger vehicles. Honda Cars sold 144,802 units in the period. In FY17, Tata Motors had sold 153,151 units, compared to Honda’s 157,313 units.

Honda, however, claimed to be unperturbed by the change in the pecking order.

“What we try to achieve is a higher market share. We require at least a 10 per cent share in the Indian market to have a sustainable position,” said Yoichiro Ueno, president and chief executive officer, Honda Cars India. 

Tata Motors, Ashok Leyland up 3% post December sales

Tata Motors and Ashok Leyland were trading higher by 3% each, recovering from their respective intra-day lows, after they reported a strong set of sales numbers in December 2017.

Tata Motors was up 3% at Rs 439, its highest level since November 10, 2017 on the BSE, after the company’s commercial and passenger vehicles domestic sales grew 52% at 54,627 units in December. The company attributed strong growth due to increasing demand for vehicles across segments, new product launches and strategic customer initiatives. It had sold 35,825 units in December 2016.

“The commercial sector has shown good recovery after the headwinds and regulatory challenges last year. The steady production ramp-up of the new range of BS4 vehicles and continued uptick in sales in consumption-driven sectors have led the growth,” Tata Motors said in a press release.

The company recorded highest ever December sales of 14,180 units for passenger vehicles since 2012 and the retail sales for this month was also the highest in past 6 years, it added.

Ashok Leyland was too up 3% at Rs 123 on back of two-fold jump in trading volumes. A combined 16.91 million shares changed hands on the BSE and NSE till 12:27 PM;

The company reported a rise of 79% in its total sales for the month of December 2017 at 19,253 units as compared with 10,731 units sold in the same month a year-ago.

The medium and heavy commercial vehicle (M&HCV) sales grew sharply by 82% to 15,950 units as compared with 8,782 units sold in November 2016. Light commercial vehicle (LCV) sales increased 69% to 3,303 units as compared with 1,949 units sold in the same month a year-ago.

Tata Motors flags off first batch of Tigor electric cars from Sanand plant

Tata Motors on Wednesday rolled out the first batch of the Tigor electric vehicle (EV) from its Sanand facility in Gujarat.

The vehicles are part of the tender floated by the Energy Efficiency Services Ltd (EESL) for 10,000 EVs.

"This occasion is a significant milestone for Tata Motors and a proud moment for the entire team," Tata Group Chairman N Chandrasekaran said in a statement.

He further added: "As we work together to build the future of e-mobility in India, I am confident that our customers will respond very favourably to this electric model.

Tata Motors CEO & MD Guenter Butschek said with Tigor EV, the company has begun its journey in boosting e-mobility and offering a full range of electric vehicles to the Indian customers.

"This tender (EESL) has effectively paved way for connecting our aspirations in the e-mobility space with the vision of the government," he added.

In September, Tata Motors had emerged as the lowest bidder for 10,000 electric cars tender issued by EESL.

For phase one, Tata Motors is required to deliver 250 Tigor EVs to EESL.

Tata Nano may be back in an electric avatar; Ola to operate 400 in Delhi

Once billed as the world's cheapest car, the Tata Nano is set to make a comeback in an electric vehicle (EV) avatar, according to reports.

The Tata Nano electric, according to an Autocar India report, will be launched on November 28 under a new name — the Jayem Neo.

However, Tata has a limited role in the Nano's comeback. According to the report, Tata Motors will only supply complete Nano body shells to Coimbatore-based Jayem Automotives. These shells will be supplied sans the engine and transmission. Subsequently, the report adds, Jayem will manufacture and market the EV. In fact, this version of the Neo will not carry the Tata badge.

Citing sources in the know, the Economic Times reported that the electric motor and power train will be fitted into these empty shells at Jayem's facility in Coimbatore. The report added that the vehicle's launch announcement was likely to be made in the next few days.

According to the Autocar report, Jayem will be sourcing the electric powertrain from Electra EV, which is a specialist firm that designs, develops, and supplies electric powertrains, battery packs, and charging infrastructure.

Powered by an electric system that generates 17Kw (23hp), the new EV, according to the report, will be able to travel 140 km on a full charge with four occupants and air-conditioning. The report described the Neo's power output as "modest" for a car its weight and added that this version of the EV would be available only for the commercial market.

Further, according to the report, currently, the Neo will be sold under the Jayem brand, but Tata Motors is likely to come out with its own version of the Neo in the future.

Top stock recos for today: Buy Tata Motors, Bharat Forge and Tata Elxsi

STOCK MARKET - Nifty outlook and few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher

NIFTY VIEW:
Indices are retracing from its overbought zone with RSI too showing signs of reversal. The support for the day is seen at 10,240 while resistance is seen at 10350. The significant moving average of 34WMA lies at 10,230 which should act as good support for Nifty else can drag down to 10,000-9,980 levels in the coming days.

BUY TATA MOTORS
CMP: Rs 438.20    
TARGET: Rs 475  
STOP LOSS: Rs 420
 The stock has made a new high recently and now a higher bottom formation is anticipated and we can expect a further rise with potential and strength and can scale up to 475 levels. The MACD indicator has been on the rise and is showing a positive bias and we anticipate a gain in this stock in the coming days. We recommend a buy in this stock for an upside target of 475 keeping a stop loss of 420.

BUY BHARAT FORGE    
CMP: Rs 730.75    
TARGET: Rs 800    
STOP LOSS: Rs 690
The stock has been on a good run with an upward trend and it has scaled new heights in recent times with strength and we anticipate it to continue the good run with more further upside potential in the coming days. The RSI has been on the rise and also the MACD has been showing  good positive bias in the past 2-3 weeks. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 800 keeping a stop loss of 690.

Technical calls: Buy Voltas, Tata Motors and Apollo Hospitals

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

NIFTY VIEW:
Market is unable to sustain at higher levels, though for now there is no negative bias unless 9,680 breaks decisively. With the RSI bouncing back from the oversold zone in the daily chart, we may not rule out a bounce back going to even 10,000 levels. The support for the day is seen at 9,820 while the resistance is seen at 9,900.
 
BUY VOLTAS
CMP: Rs 522.95      
TARGET: Rs 563  
STOP LOSS: Rs 494

The stock after a short correction has taken support at around Rs 500 and is now showing a positive candle with potential to rise further with strength. Also it has taken support at the significant moving average of 144-WMA and looks attractive for further upward move. The RSI has indicated a trend reversal signaling a buy and is supporting our positive bias. We recommend a buy in this stock for an upside target of Rs 563 keeping a stop loss of Rs 494.

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Tata Motors, Tata Motors DVR down over 5% on disappointing Q1 results

STOCK MARKET - Tata Motors (down 6% to Rs 393) and Tata Motors DVR (down 7% to Rs 226) have hit their respective fresh 52-week lows after Tata Motors reported disappointing April-June quarter (Q1FY18) performance with sharp fall in operational performance of  Jaguar Land Rover (JLR).

The company has reported a consolidated net profit of Rs 3,200 crore in Q1FY18, mainly on account of one-time gain of Rs 3,609 crore relating to the changes made to the JLR pension plans. It had posted profit of Rs 2,551 crore in the same quarter of last fiscal year.

“Consolidated profit for the quarter was lower by Rs 793 crore due to translation impact from British pound to rupee,” the company said in its filing.

Consolidated revenues for the quarter declined 10% to Rs 58,651 crore, as its operating performance was hit by lower wholesale volume sales of JLR, excluding sales from the group’s China joint venture, and a slowdown in its heavy vehicle business, among other factors.

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stock markets continue trading subdued in afternoon trade ahead of June CPI data

STOCK MARKET NEWS - Benchmark indices continued trading subdued but in green in the afternoon trade with Nifty above the 9,800-mark 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 2:12 pm, the S&P BSE Sensex was trading at 31,789, up 42 points while the broader Nifty50 was ruling at 9,809 up 23 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.

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