IndianMarketPulse-Investment Advice

We expect, M&M Finance to move higher towards its potential target of Rs 535 which translates into a 9 percent returns. M&M Financial Services has been in a declining phase for the past eight weeks and has finally broken out from a Symmetrical Triangle pattern on the daily chart. The breakout has also been accompanied with a smart uptick in traded volumes. Relative strength index (RSI) indicates a positive crossover which further accentuates our bullish stance on the stock. We expect, M&M Finance to move higher towards its potential target of Rs 535 which translates into a 9 percent returns. MORE WILL UPDATE SOON!!

We expect the stock to move higher and every long position should be protected with a stop loss below Rs 579 on a closing basis.     Our weekly chart analysis indicates that Glenmark Pharma has broken out from the falling channel pattern. The stock has also managed to surpass its long-term 200-DEMA on the daily chart and has also managed to close above the same. In addition, other momentum oscillators also indicate that the current momentum is likely to extend further. We expect the stock to move higher and every long position should be protected with a stop loss below Rs 579 on a closing basis for target of Rs 652. MORE WILL UPDATE SOON!!

A close above resistance zone of previous peaks and higher volume participation is likely to keep the bullish momentum. Kaveri Seed Company has given a breakout after a long consolidation which started in early 2018. A close above resistance zone of previous peaks and higher volume participation is likely to keep the bullish momentum. The upward target for the stock is placed at Rs 625 - 630. At 11:27 hrs Kaveri Seed Company was quoting at Rs 588.50, up Rs 5.15, or 0.88 percent. It has touched an intraday high of Rs 591.95 and an intraday low of Rs 581.60. MORE WILL UPDATE SOON!!

We recommend buying Jyothi Lab for the target of Rs 502 and keep a stop loss below Rs 445.   In the month of June 2016, Jyothy Labs broke out from the long-term multi-month consolidation and registered an all-time high at Rs 471. Thereafter stock witnessed healthy correction of 16% from Rs 471 to Rs 396 in the next 2 weeks. On 6th June 2018, the stock found support at Rs 396 and bounced sharply to surpass previous top of Rs 471 and registered a new all-time high placed at Rs 487 on 12th June 2018. FMCG sector has been outperforming and Jyothi lab is also likely to extend the gains for investors. We recommend buying Jyothi Lab for the target of Rs 502 and keep a stop loss below Rs 445. MORE WILL UPDATE SOON!!

  On the weekly chart, GHCL is on the verge of a breakout from a Triangle pattern suggesting bullishness building up in the stock. Further, stock witnessed buying on good volumes as it approaches trendline breakout level of 290; a successful breakout and sustained trade above this can extend the uptrend. The RSI has entered in the bull zone affirming bullishness. The stock may be bought in the range of Rs 288-290 for targets of Rs 306-320, and a stop loss below Rs 275. MORE WILL UPDATE SOON!!

We have a buy recommendation for Nava Bharat Ventures which is currently trading at Rs 145.60 for target of Rs 163.   Nava Bharat Ventures traded in a positive trajectory on its weekly price chart post its correction from its 52-week high of Rs 184 levels. It took a strong support at Rs 120 levels. Despite a muted market breath, the scrip witnessed a strong momentum as it managed to break out from its multi-long moving average level of 200-50-days. It also witnessed a substantial volume breakout on the weekly chart which indicates an upward trend. On the weekly price chart, the scrip registered a solid bullish candlestick pattern indicating a sustained rally post current breakout from crucial level. Further, the weekly RSI is placed at 58 which suggests a buying regime at a current level along with positive cues from MACD suggesting an upward shift. The stock is likely to face resistance around Rs 168 while support level is placed at Rs 288. We have a buy ...

Traders can accumulate the stock in the range of Rs 910-916 for the target of Rs 1,010 with a stop loss below Rs 870.   Titan Company has moved above its recent consolidation pattern. On the lower end, the price has found support above 61.80% of the previous rise from Rs 752 to Rs 999. In addition, on the weekly chart, the price has formed a ‘Hammer’ pattern which suggests growing optimism in the stock. The momentum oscillator, RSI (14) has come out from the oversold zone. Traders can accumulate the stock in the range of Rs 910-916 for the target of Rs 1,010 with a stop loss below Rs 870. MORE WILL UPDATE SOON!!

We have a buy recommendation for Hindustan Nat Glass which is currently trading at Rs 104.90 for target of Rs 113.   After witnessing a sharp correction from Rs 167 odd levels in the past few months, Hindustan National Glass & Industries witnessed a reversal trend in the recent period. A strong support is placed at Rs 78-76 levels. The scrip registered a strong pullback throughout the session as it managed to decisively break out from its crucial moving average level of Rs 94 levels on closing basis coupled with positive volume growth above average. The scrip gained about 12 percent on an intraday basis and about 32 percent on the weekly basis. The positive breakout on the weekly basis aided the scrip to form a long-solid bullish candlestick pattern indicating a strong reversal trend for a couple of sessions. The weekly RSI trend registered an upward momentum at Rs 67 suggesting a buying regime along with MACD moving near bullish crossover. The scri...

With a healthy dividend payout and becoming net long term debt free company, we believe FSL could witness a massive upside going ahead. We are recommending a buy.   Firstsource Solutions has posted revenue growth of 1.1% on a QoQ basis. EBITDA margins expanded by 170 bps QoQ aided by lower-than-expected employee expenses and lower other expenses. The board has recommended a dividend of Rs. 1.5 per share for the first time and indicated at maintaining a payout ratio of ~35-40% of PAT, going ahead. Management expects revenue growth to be at the top end of industry growth rates in CC in FY19 despite downward bias in the customer management division, driven by healthy deal pipelines, signing of  contracts, and traction in mortgage business in BFSI. MORE WILL UPDATE SOON!!

We expect slippages from the corporate book to shrink as the bank increases its exposure to higher-rated corporate bodies. Thus, we model a gross-NPA ratio of 0.97 percent in FY20.    IndusInd Bank continues to report robust operating performance after having absorbed the high NPA divergence reported this quarter, keeping profitability intact. Low credit costs, steady NIM and high credit growth would keep profitability high through FY19-20. The strategic BHAFIN deal would be synergistic in the medium term. We expect the bank to maintain stable asset quality over FY19- 20, aided by its well-diversified loan mix. We expect slippages from the corporate book to shrink as the bank increases its exposure to higher-rated corporate bodies. Thus, we model a gross-NPA ratio of 0.97 percent in FY20. We factor in 26 percent overall credit growth through FY19-20. The corporate book was largely driven by gaining market share from PSBs and working-capital loans to better...

We expect earnings to come at Rs. 1390 Cr, leading to an EPS of Rs 24.3 in FY20 and maintain a buy.   The continuing strong demand due to the anti-dumping duty and sales of higher-ton CVs is benefiting Apollo Tyres, in our view. Hence, we expect double-digit replacement growth in FY19, too. Strong growth in truck radial tyres. The company plans to increase its Radial capacity in Chennai from 10,000 tyres a day to 12,000 by September 2018. The Hungary plant’s capacity is expected to be increased by FY19 to 16,000 tyres a day and would be the volume growth catalyst in FY19 and FY20. Operating margin of its European business to improve from 2.6% in FY18 to 4% in FY19. The company has started foundation work for a new passenger-car-tyre plant in Andhra Pradesh and expects volumes to scale up in FY20. We expect revenue to clock a 19% CAGR over FY18-20 to Rs. 21,100 Cr and expect the margin to expand from the present 11.1% in FY18 to 12.5% in FY20. Accordingly, we exp...

The stock may be bought in the range of Rs 918-922 for a target of Rs 1,000-1,040, with a stop loss below Rs 875.    On the weekly chart, Sun TV Network has resumed the uptrend after taking support at the neckline of the channel pattern indicating bullishness dominant in the stock. Further, the stock witnessed buying on good volumes as it approached trendline breakout level of Rs 942. A successful breakout and sustained trade above this can extend the uptrend. RSI has entered in the bull zone affirming bullishness. The stock may be bought in the range of Rs 918-922 for a target of Rs 1,000-1,040, with a stop loss below Rs 875. MORE WILL UPDATE SOON!!

The stock may be bought in the range of Rs 644-648 for targets of Rs 680-695, with a stop loss below Rs 625. On the daily chart, Godrej Agrovet is on the verge of a breakout from a bullish Flag pattern suggesting bullishness dominant in the stock.     Further, the stock has taken support at the 38.2 percent Fibonacci retracement levels and volumes have declined within the Flag suggesting a temporary pause before it resumes the uptrend. The RSI has turned upwards breaking out of the upper Bollinger Bands suggesting extended bullishness in the coming trading sessions. The stock may be bought in the range of Rs 644-648 for targets of Rs 680-695, with a stop loss below Rs 625. MORE WILL UPDATE SOON!!

The stock has retraced marginally in the last two sessions and is now hovering around the support zone of multiple moving averages (100 and 200 EMA) on the daily chart, offering a fresh buying opportunity.    After retesting the support zone of 100-EMA on the weekly chart, GAIL India is now witnessing a rebound. It is showing tremendous resilience while we’re seeing noticeable pressure on the broader front. The stock has retraced marginally in the last two sessions and is now hovering around the support zone of multiple moving averages (100 and 200 EMA) on the daily chart, offering a fresh buying opportunity. Traders shouldn’t miss this chance and accumulate stocks within Rs 330-335. It closed at Rs 335.05 on June 4, 2018. MORE WILL UPDATE SOON!!

The scrip has a support placed at Rs 114 levels and resistance level at Rs 172. We have a buy recommendation for Bodal Chemicals which is currently trading at Rs. 143.60 Bodal Chemicals witnessed a sharp correction in the last six-month from Rs 172 levels towards Rs 114-111 zone where it formed two consecutive bottom trend-channel which indicated a strong support. Recently, it witnessed a strong upward momentum where it made two higher peaks after breaching its 20-days EMA level placed at Rs 135 levels. Substantially, the scrip also witnessed a strong volume growth on the weekly basis and formed a bullish candlestick pattern on the weekly price chart with about 13 percent gain in same period despite closing lower on Friday. The weekly RSI level up at 55 coupled with positive divergence on MACD which indicates a buying regime at the current level. The scrip has a support placed at Rs 114 levels and resistance level at Rs 172. We have a buy recommendation...

Traders can accumulate the stock in the range of Rs 420-426 for the target of Rs 480 and a stop loss below Rs 399 can be kept for all long positions.   Reliance Capital has formed a Bullish Harami pattern on the weekly chart which suggests waning bearishness. On the daily chart, the price has moved above its 50-exponential moving average (EMA) which suggests a shift in prevailing trend from negative to positive. In addition, positive divergence is visible in the momentum indicator RSI (14) on the weekly chart. Traders can accumulate the stock in the range of Rs 420-426 for the target of Rs 480 and a stop loss below Rs 399 can be kept for all long positions. MORE WILL UPDATE SOON!!

We expect the company to be a beneficiary of good monsoon as it would drive the consumer spending and also expect the company's consolidated revenue to grow by 14 percent CAGR over the next 2-3 years.    Supreme Industries holds leadership position in the organized domestic plastic piping market and is the second largest player in moulded plastic furniture. Further, it has a strong presence across other segments of plastics like packaging products and industrial products. We expect the company to be a beneficiary of good monsoon as it would drive the consumer spending and also expect the company's consolidated revenue to grow by 14 percent CAGR over the next 2-3 years, led by demand revival, steady capacity additions and enhanced product offerings. GST transition would clearly yield benefits over the medium-to-long-term. We have a buy on the stock with target of Rs 1,473 per share. MORE WILL UPDATE SOON!!

With 18.4 percent capital adequacy (tier-1 13.2 percent), the bank is well capitalised for 30 percent loan growth over FY’19-20. Our April 2019 target of Rs 407 is based on the two-stage dividend discount model.   Strong traction in Yes Bank’s balance sheet continues. Asset quality as one of the best in the industry among corporate lenders persists. The credit book increased 54 percent YoY, driven equally by its corporate and commercial books. We believe the growth momentum would persist. Deposits rose 40.5 percent YoY with strong traction in CASA deposits. We expect its retail-deposit franchise and granularity in deposits to further improve. The GNPA ratio improved to 1.28 percent (down 24bps YoY, 44bps QoQ). We expect the bank to maintain stable asset quality over FY19-20. With 18.4 percent capital adequacy (tier-1 13.2 percent), the bank is well capitalised for 30 percent loan growth over FY’19-20. Our April 2019 target of Rs 407 ...

Traders can accumulate the stock in the range of Rs 1,230-1,240 for the target of Rs 1,370 and a stop loss can be placed below Rs 1,182.    On the weekly chart, an engulfing pattern is visible in ABB which suggests waning bearishness among the traders. On the daily chart, the price has moved above 13-EMA in its recent price action which shows the growing optimism in the stock. In addition, positive divergence is visible in the momentum indicator RSI (14), on the daily chart. Traders can accumulate the stock in the range of Rs 1,230-1,240 for the target of Rs 1,370 and a stop loss can be placed below Rs 1,182. MORE WILL UPDATE SOON!!

Traders can buy the stock in dips around Rs 377-380 with a stop loss below Rs 364 (closing) for a target of Rs 408. On daily scales, Dabur India has taken a support around on its 23.6 percent retracement level of 23rd March to 18th May up move and bounced back with moderate volumes, which suggests that the stock has made a temporary bottom at around Rs 365 levels. The Daily Relative strength index (RSI) showing upward move and MACD is trading above zero line and trying to crossover its signal line whereas (+) DI continuously trading above (-) DI, which indicates that the bias could remain bullish for the next few trading sessions. Based on the above observations, traders can buy the stock in dips around Rs 377-380 with a stop loss below Rs 364 (closing) for a target of Rs 408. MORE WILL UPDATE SOON!!