IndianMarketPulse-Investment Advice

The stock price has recently taken support on its 200-week Exponential moving average and reversed north. Action Construction  is trading 52 percent lower than its January 2018 high of 204. On the long-term charts, the stock has turned extremely oversold. For the last 3 months, the stock has been trading in a consolidation zone of 85 to 105. In the month of October and December 2018, the stock took support on the upward sloping trend line on the weekly charts. This trend line has acted nicely in the past. For the week ended 4th Jan 2018, the stock broke out from the contracting range on the  daily charts with a higher delivery percentage and  higher volumes. Indicators like MACD and Oscillator like RSI has turned bullish on the weekly charts. The stock price has recently taken support on its 200- week Exponential moving average and reversed north. Considering the technical evidences discussed above, we recommend buying the stock at CMP and average it at...

Volume activity is gradually improving along with the price rise. The stock price has surpassed the resistance level of 50-week EMA. Coromandel International  formed an Inverse Head and Shoulder breakout on the weekly  charts. The stock formed a higher tops and higher bottom formation on the daily as well as the weekly charts. Volume activity is gradually improving along with the price rise. The stock price has surpassed the resistance level of 50-week EMA. The stock  price has surpassed the resistance of its 200-DMA. Considering the technical evidences discussed above, we recommend buying the stock at CMP for the target of 535, and keeping a stop loss at 420 on closing basis. MORE WILL UPDATE SOON!!

Traders can accumulate the stock in a range of Rs 360-364 for the upside target of Rs 386 levels and a stop loss below Rs 345. For more than six weeks, ICICI Bank has been trading in a broader range of Rs 340-365 and is maintaining well above its short and long-term moving averages. At the current juncture, the stock formed an inverted head and shoulder pattern on the daily interval chart. Additionally, the positive divergences on secondary indicators are pointing toward upward movement in prices. So, traders can accumulate the stock in a range of Rs 360-364 for the upside target of Rs 386 levels and a stop loss below Rs 345.  MORE WILL UPDATE SOON!!

Traders can accumulate the stock in a range of Rs 710-720 for the upside target of Rs 785 levels and a stop loss below Rs 660. Escorts witnessed a V-shaped recovery from Rs 585 levels in the recent past to reclaim Rs 700 levels in a short span of time. However, after that prices seen consolidating in range of Rs 660-710 from last two weeks. The stock witnessed a fresh breakout above its 100-days exponential moving average on the daily interval along with marginally higher volumes. Traders can accumulate the stock in a range of Rs 710-720 for the upside target of Rs 785 levels and a stop loss below Rs 660. MORE WILL UPDATE SOON!!

Bharti Airtel Ltd is world’s leading provider of telecommunication services with presence in 16 countries across Asia and Africa. It had over 444 million customers across its operations at the end of September 2018. Out look and Valuation:  We believe near-term challenges will persist in India’s mobility segment considering Reliance Jio’s aggressive push to grab subscriber market share. Though ARPU is expected to remain under pressure in the near term due to downtrading of subscribers, it is expected to recover in the medium to long term considering ongoing consolidation in the sector and industry repair, which will help Airtel drive market share gains. We believe deleveraging of balance sheet with USD1.25bn equity infusion in the Africa business will help company meet rising investment in network. Further, higher data consumption driven by increasing smartphone penetration & investments in up-gradation and expansion of network towers and increase in content consumption w...

Highlights: - Profitability of paper companies on an uptrend - IPAPPM well placed to take advantage of the growth in paper industry - Stellar operating and financial performance - High margin looks sustainable - Valuations reasonable despite run-up in the stock  India is the fastest growing market for paper globally and is expected to grow over six percent per annum over the next few years. With an estimated domestic turnover of about Rs 50,000 crore, it accounts for about three percent of the world’s paper production. This presents an exciting scenario as paper consumption is poised for a big leap forward in sync with economic growth. Paper companies turned around sharply in FY17 and their profitability is on an uptrend. H1 FY19 earnings of paper companies reaffirmed the growth momentum. While JK Paper remains our top pick in the sector, we delved further to identify another paper company that benefits from an upturn in the sector. After all, a rising tide lift...

MORE WILL UPDATE SOON!!

Equity benchmarks continue to witness sharp decline as it closed lower by more than 2.5% during previous week on the back of weak global cues. Index closed lower for four out of the five trading sessions during previous week. Nifty formed an intraweek high of 10408 on Monday's session and kept on dragging lower as the week progressed. Index breached its recent low (10138) and formed a seven month’s low of 10004 on Friday’s session. Broader markets also continue to witness sharp decline as the Nifty Mid cap and small cap indices closed lower by 1.7% and 4.2% respectively. The S&P BSE Sensex closed at 33349, down by 966 points or 2.8% while the NSE Nifty closed at 10030, down by 273 points or 2.7% for the week. Among the Nifty Constituents, Bharti Airtel, HDFC, Coal India, Bajaj Finance and Titan were the major gainers for the week. Whereas the Asian Paints, ITC, Axis Bank, Indusind Bank, State Bank of India, Yes Bank, ONGC, Reliance Industries, Cipla, Sun Pharma, Grasim, U...

We expect JSW Steel to move higher towards its potential target of Rs 442 in the medium term.   JSW Steel is in a solid uptrend and has also been maintaining its higher top higher bottom structure. In fact, the upswing is so strong that the stock doesn’t even breach below its short-term 5-DEMA which indicates every decline is being used as a buying opportunity. We expect JSW Steel to move higher towards its potential target of Rs 442 in the medium term. MORE WILL UPDATE SOON!!

   TVS Motor Company  has been defying all the selling pressure in the recent past, in fact, it has been moving higher. In addition, it has also broken out from the consolidation phase and surpassed its long-term 200-DEMA which further accentuates our bullish stance on the stock. MORE WILL UPDATE SOON!!

Watch out for "underdog Stock" Bajaj Corp;...May test 500--520+ Soon;Accumulate on DIP....,IndianMarketPulse Stock Just Breached its 200 DMA and may just outperform its peers in category. RSI of 65 and increasing suggest stock may see more buying momentum if volumes increases gradually.    MORE WILL UPDATE SOON!!

Traders can buy the stock around current levels and further add on dips around Rs 1340-1345 with a stop loss below Rs 1300 for the target of Rs 1490.   On the daily scale, Divis Laboratories has given a breakout from its Flag pattern above Rs 1330-1332 levels on Monday with higher volumes. The Relative strength index (RSI) is showing positive momentum and MACD is trading above zero line with a positive crossover which indicates limited downside for the stock. Based on the above observations traders can buy the stock around current levels and further add on dips around Rs 1340-1345 with a stop loss below Rs 1300 (closing) for the target of Rs 1490. MORE WILL UPDATE SOON!!

The stock is well placed above its 20, 50 and 100 day SMA which supports bullish sentiments ahead. It can be bought in the range of Rs 985-975.   With current week's strong gains Godfrey Phillips India has decisively broken out its “Down Sloping Trendline” breakout at 860 levels on the closing basis. The stock price has also formed a rounding bottom pattern which indicates a positive bias in the near-term. This breakout is accompanied with rising volumes which supports bullish sentiments ahead. The daily and weekly strength indicator RSI and the momentum indicator Stochastic both are in the positive terrain which supports upside momentum to continue in the near term. The stock is well placed above its 20, 50 and 100 day SMA which supports bullish sentiments ahead. It can be bought in the range of Rs 985-975. MORE WILL UPDATE SOON!!

Traders can accumulate the stock in the range of Rs 1230- 1240 for the target of Rs 1310 with a stop loss below Rs 1187.   Kotak Mahindra Bank has been witnessing a correction since it made a new record high of Rs 1417. At the lower end, it has just found support at the 200-EMA which led to an increase in demand for the stock. The momentum indicator RSI (14) is having a bullish divergence with the stock price. In addition, an engulfing pattern around the crucial support may set a rally in the stock. Traders can accumulate the stock in the range of Rs 1230- 1240 for the target of Rs 1310 with a stop loss below Rs 1187. MORE WILL UPDATE SOON!!

Traders can accumulate the stock in the range of Rs 1620-1630 for target of Rs 1757 with a stop loss below Rs 1569. On the daily chart, Hindustan Unilever has been consolidating after a correction from its lifetime highs. The daily momentum oscillator, RSI (14) is having a positive divergence which suggests that the price may react positively in the near-term. In addition, an ‘Alternate Shark Harmonic’ pattern has formed on the daily chart of the HUL which may propel a rally in the stock. Traders can accumulate the stock in the range of Rs 1620-1630 for target of Rs 1757 with a stop loss below Rs 1569. MORE WILL UPDATE SOON!!

Digital is growing strong at 8 percent QoQ CC (28 percent of revenue) and now even financial service is expected to improve from Q2 onward.   After a long time Infosys management issue looks sorted out. Focus is all on volume growth. Infosys signed USD 1.1 billion TCV of deals recently and cited a strong pipeline, deals and digital to drive growth ahead. Digital is growing strong at 8 percent QoQ CC (28 percent of revenue) and now even financial service is expected to improve from Q2 onward. Our near term target is Rs 840. MORE WILL UPDATE SOON!!

We recommend traders to buy this stock at the current level of 270 with a price target of 305. A Stop loss should be placed at 254 on a closing basis.   Looking at the daily chart, Tata Motors has formed a strong base near 250 levels and is trading in a narrow range. As a result, it has formed an inverse head & shoulder pattern on the daily chart. The said pattern will be activated if Tata Motors starts sustaining above 275. The daily Bollinger band has contracted significantly and indicates the period of low volatility. Considering the above technical evidence, we recommend traders to buy this stock at the current level of 270 with a price target of 305. A Stop loss should be placed at 254 on a closing basis. MORE WILL UPDATE SOON!!

  MORE WILL UPDATE SOON!!

Traders can accumulate the stock in the range of Rs 340-345 for the target of Rs 388 and a stop loss below Rs 324. YES Bank has fallen sharply from 404 to 332 in few trading sessions. On the daily chart, an engulfing pattern has formed which suggests a possibility of the bullish reversal in the stock. Also, the stock has just made a low around its previous swing low of 327. A positive divergence is also visible in the daily RSI (14) which may set a bullish momentum in the stock price. Traders can accumulate the stock in the range of Rs 340-345 for the target of Rs 388 and a stop loss below Rs 324. MORE WILL UPDATE SOON!!

We recommend a 'Buy' with a target price of Rs 800 by FY19 end implying an upside of 20 percent. We believe life insurance segment is underpenetrated, rising share of insurance in financial savings and given the big opportunity present in this sector, we recommend investors to have a slice of it in their portfolio. India continues to be under penetrated as compared to countries like Thailand and Korea. At CMP of Rs 664, SBI Life Insurance is valued at 3x of Market Cap/Embedded Value. The company boasts of a strong distribution network owing to its parent SBI reach in the country and low cost to income ratio as compared to peers. We recommend a 'Buy' with a target price of Rs 800 by FY19 end implying an upside of 20 percent. MORE WILL UPDATE SOON!!

We expect a target of Rs 544 by FY19 end (P/BV of 3.2x on estimated FY19E Book Value of Rs 170) implying an upside of 17 percent. We believe Mahindra & Mahindra Financial Services is cheap as compared to other listed NBFCs. The company improved its Return on Assets significantly from 1 percent in FY17 to 1.9 percent in FY18. With improving rural cash flows, recovery from NPAs would help the company to improve its ROA of 2.6-2.8 percent by FY20. The management is optimistic on improving rural cash flow which should lead to growth of 18-20 percent in FY19 across segments. NPAs in the rural housing is expected to reduce in coming quarters as Maharashtra has improved in cash flow and which will translate towards recoveries. PCR stood at 58.1 percent in FY18. We expect a target of Rs 544 by FY19 end (P/BV of 3.2x on estimated FY19E Book Value of Rs. 170) implying an upside of 17 percent. MORE WILL UPDATE SOON!!

Market Strategy Nifty has remained above 11600 once it moved above these levels in the early part of the week. The index is expected to remain in the range while the stock specific moves are likely to come on surface. The volatility has remained low which signifies that the current trend should continue. Move above 14% in India VIX only would lead to any major profit booking in near term. The recent rollovers in Nifty are seen on rising roll cost of 0.5% which is higher than the last three series average of 0.3%. This means the market may consolidate for sometime before picking up the uptrend again. Index Outlook Bank Nifty :  The Bank Nifty ended the August F&O series on a muted note where the private banks continued to witness profit booking whereas the fall extended in Yes Bank which slipped nearly 6% on the last day of the week. Short covering trend seen in few PSU banks which has provided cushion to the index. Derivatives strategies Buy Shree Cement (...

We expect company to grow at a CAGR of around 29 percent over next two years which should also improve better profit margins going ahead.    Biocon has reported a growth of 21.2 percent in its consolidated revenues at Rs 1,123 crore in Q1-FY19 as against Rs 927 crore in Q1-FY18. Profit after tax for the company grew by 47 percent and stood at Rs 119 crore in Q1-FY19 against Rs 81 crore in Q1-FY18. The top 10 brands in its India portfolio reported a strong double digit growth. The key developments during the quarter were approval of Fulphila (Pegfilgrastim) Biosimilar co-developed by Biocon and Mylan for launch in US markets. The company’s sterile Drug Product manufacturing facility in Bengaluru received EIR from US FDA and EUGMP certification Syngene extended its collaboration with Baxter upto 2024 and strengthens its growing client base amongst others. Going ahead, we continue to expect company to get benefits of first wave of Biosimilar commerc...

We expect L&T Tech to grow its consolidated revenues at CAGR of 23 percent for the next two years and reach Rs 4895 crore in FY19 and Rs 5696 crore in FY-20 on back of large opportunity present across capex intensive business and sustained momentum of ramping up of existing clients.   With the rise of enabling technologies like 5G, IoT, Artificial Intelligence etc, the digital disruption now has expanded to almost each and every part of the global industrial complex including manufacturing and process industries. This has opened a new and bigger opportunity of more than USD 1.1 trillion market for engineering outsourcing market. Larsen & Toubro Technology Services’ has multi-sectoral presence and domain expertise enables cross-pollination of ideas and best practices leading to differentiated engineering solutions. During the latest quarterly results, the company has reported robust growth in revenues; it grew 33.2 percent in Q1-FY19 to USD 168.9 million as...