Nifty outlook and top trading ideas 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
Nifty as of now took support at around 10,550 levels and recovered to move past 10,700 levels but still the conviction has not been maintained for further upward movement until it moves past 10,750-10,770 levels decisively.

BUY LARSEN & TOUBRO
CMP: Rs 1,275.10
TARGET: Rs 1,360
STOP LOSS: Rs 1,225
The stock has witnessed a decent correction from the peak of 1,424 to bottom out at around 1210 levels and has produced a positive bullish candle pattern in the daily chart to signify strength and potential to rise further in the coming days.

BUY JET AIRWAYS
CMP: Rs 346.90
TARGET: Rs 420
STOP LOSS: Rs 320
The stock has witnessed a great erosion from the levels of 650 to shown signs of bottoming out at around 330 levels and we anticipate a bounce back from here on to scale till 420-440 levels. The RSI has shown a steep rise from the highly oversold zone and has indicated a trend reversal to signify strength and potential to rise further in the coming days.

Jet Airways hits fresh 52-week low on net loss of Rs 10-billion in Q4

Shares of Jet Airways have slipped by 8% to Rs 386 per share, their fresh 52-week low on the BSE in early morning trade, after the airline company reported a standalone net loss of Rs 10.36 billion in March quarter (Q4FY18), due to higher fuel cost. It had posted a net profit of Rs 6.02 billion in the same quarter last fiscal.

The country's second-largest airline company by market share, posted 9% year on year growth in revenue from operations at Rs 59.25 billion during the quarter under review, while aircraft fuel expenses surged 31% to Rs 20.63 billion over the previous year quarter.

On consolidated basis, Jet Airways has posted a net loss of Rs 6.36 billion in entire financial year 2017-18 (FY18) against a net profit of Rs 14.98 billion in FY17.

“The Company has incurred a loss during the year and has negative net worth as at 31st March, 2018 that may create uncertainties. However, various initiatives undertaken by the Company in relation to saving cost, optimize revenue management opportunities and enhance ancillary revenues is expected to result in improved operating performance,” Jet Airways said in a note.

Airline stocks fall on weak InterGlobe Aviation results; IndiGo tanks 18%

Shares of airline companies - InterGlobe Aviation (IndiGo), Jet Airways and SpiceJet – have tanked up to 18% after the IndiGo reported weak set of numbers for the quarter ended March 2018 (Q4FY18)

IndiGo plunged 18% to Rs 1,111 on the BSE after the company reported a sharp 73% decline in net profit to Rs 1.17 billion for the March quarter (Q4FY18), due to higher fuel costs and adverse forex exchange positions. The country’s largest airline had profit of Rs 4.4 billion in year ago quarter.
With today’s fall, the market value of IndiGo has declined 26% in past four trading sessions after the resignation of its president Aditya Ghosh.

SpiceJet (down 9% at Rs 120) and Jet Airways (down 6% at Rs 556) were down more than 5% on the BSE in intra-day trade today. On comparison, the S&P BSE Sensex was trading 0.16% lower at 35,122 points at 09:55 am.

IndiGo’s revenue from operations during the quarter under review grew 19.6% at Rs 57.99 billion against Rs 48.48 billion during the same period last year.

Air India privatisation: Will IndiGo exit force govt to ease bidding terms?

Following IndiGo’s decision of not bidding for state-run Air India, the government might be pressured to tweak some of the key areas in the preliminary information memorandum that, according to many carriers, make it difficult to bid for the national carrier.

There is no doubt, say experts, that IndiGo was the only domestic airline with the cash reserves (over Rs 120 billion) and management wherewithal to turn around Air India. It was also the only carrier that met the net worth criterion of Rs 50 billion on its own. Now, IndiGo’s withdrawal from the race is surely a major setback for the government, and it also raises the red flag for other potential bidders.

The other two aviation companies that have reportedly shown interest in Air India are Tata-SIA and Jet Airways with KLM, though the latter does not have a great financial health. The names of Air Asia, SpiceGet, Go Air and Qatar Airlines, and even the Adanis, have been doing the rounds, but many of them have denied or not commented on the issue.

According to an aviation analyst, “the IndiGo decision is good in one way, as it will make the government rethink – you cannot push so many clauses down a buyer; they will rethink (their interest in bidding).” Global consultants to airlines say that most carriers are looking for more clarifications on some key issues before they would take a decision.

Jet Airways falls 5% post Q2 results

Jet Airways (India) dipped 5% to Rs 665 on the BSE in intra-day trade after the company reported a 91% drop in standalone net profit at Rs 50 crore in September quarter (Q2FY18), due to higher fuel expenses. It had profit of Rs 549 crore in the same quarter year ago.

Revenue from operations grew 3% at Rs 5,627 crore against Rs 5,453 crore in the corresponding quarter of previous year.
Quarterly total expenses rose 9.2% to Rs 5,709 crore with aircraft fuel expenses rising about 17% at Rs 1,526 crore over the previous year quarter.

“Various initiatives undertaken by the company in relation to cost synergies, revenue management opportunities, enhanced ancillary revenues have resulted in significant improvement in operating cash flows. Further, the company’s thrust to improve operational efficiency and initiatives to raise funds are expected to result in sustainable cash flow,” Jet Airways said in a note.

The stock had a strong run-up in past two months, appreciated 43% as compared to 3.6% rise in the S&P BSE Sensex till Thursday.

At 10:20 AM; it was trading at 3% lower at Rs 675 against 0.71% rise in the benchmark index. A combined 2.93 million shares changed hands on the counter on the NSE and BSE.

Buy Bajaj Auto, Gail and Jet Airways says Prabhudas Lilladher

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

BAJAJ AUTO - BUY      
CMP: Rs 2,874.65      
TARGET: Rs 3,120      
STOP LOSS: Rs 2,820
The stock has made a higher bottom formation in the daily chart and is in a trending mode and now the positive candle formed indicates further strength and potential to rally upward to scale new heights. The RSI indicator has made a steep rise and also has made a trend reversal signaling a buy in the stock. With good volume participation, we recommend a buy in this stock for an upside target of 3120 keeping  a stop loss 2820

JET AIRWAYS - BUY      
CMP: Rs 609.40      
TARGET: Rs 665      
STOP LOSS: Rs 580
The stock has taken a breather after it rallied from 455 levels to touch the peak of 624 and now after a gradual correction, it has made a higher bottom formation like pattern and now has produced a bullish candle formation indicating positive bias in the stock. The RSI indicator has indicated a trend reversal signaling a buy and thus we recommend a buy in this stock for an upside target of 665 keeping a stop loss of 580.

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Nose wheel snag, pilot error may have led to Jet flight veering off runway

Breaking News - A snag in nose wheel steering or a pilot error may have led to the veering of Jet Airways Mumbai-bound Boeing 737 flight at Goa airport on Tuesday morning.

The incident took place  at 4.45 am  when the aircraft carrying 154 passengers and seven crew was lining up for take off at the runway. Ten passengers were hurt during evacuation.

An investigation is underway to find the reasons behind the incident. Investigators will check the aircraft digital flight data recorder to know the cause.

Investigators will also check runway surface conditions and the work patterns of the pilots.

The Boeing aircraft veered 250 metres off the runway and its nose gear collapsed after getting bigger down in soft ground.

Human error may have led to the incident. An incorrect application of take off go around thrust (TOGA) can lead to runway excursions. "If the switch is pressed at an inappropriate time, before stabilising of thrust  and proper line up on the runway, the aircraft can achieve take off thrust and lose directional control," a senior commander said.

The other probability could be a malfunction in aircraft auto throttle system which is designed to provide the required level of thrust to engines in various stages of flight(Read More).