IndianMarketPulse-Investment Advice

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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...

You may also refer this portfolio to start your investments using SIP route for buying stocks at different price and time points. Investing in this portfolio will help you diversify your investments and reduce the risk. MORE WILL UPDATE SOON!!

On the back of this improved performance and technical structure, we are recommending a buy for short to medium term. BHEL  posted stellar performance in Q1FY19. During Q1FY19, its net profit zoomed 93 percent to Rs 156 crore from Rs 81 crore on a YoY basis on 8 percent higher income of Rs 5,790 crore. Its order booking increase by two and half time to Rs 4,371 crore compared to Rs 1,744 crore in the corresponding quarter last year. BHEL has a total order book of Rs 117,000 crore by end of Q1FY19.  It has formed small inverted head and shoulder pattern on the daily chart which is bullish in its nature. On the back of this improved performance and technical structure, we are recommending a buy for short to medium term. MORE WILL UPDATE SOON!!

About the Company: Elgi Equipments (Elgi) manufactures a complete range of compressed air solutions including a wide range of air compressors. It is the second largest Indian player (~22%) only behind global market leader Atlas Copco Globally, it is the eighth largest player commanding ~1.3% market share. Its manufacturing facilities are spread across India, Europe & America. Investment Rationale: Indian manufacturing cycle uptick to strongly benefit Elgi:  India's compressor market is pegged at ~ 4,000 crore, implying a 4% share of the global air compressor market. Elgi has a domestic market share of 22.3%, second to Atlas Copco India (~33%). India & exports contributed  894.5 crore (~55.7%) to the total consolidated topline reporting steady growth of 12.6% YoY. Sustained turnaround in foreign subsidiaries remains key -  Elgi has several foreign subsidiaries in key markets like the US and Europe. Faced with stiff competition and continued losses, Elg...

Traders can buy the stock around current level and add on dips around Rs 242-244 with a stop loss below Rs 235 for the target of Rs 270. After making a marginal consolidation, Torrent Power has given a breakout above Rs 246-247 levels on Tuesday with higher volumes. The daily Relative strength index (RSI) showing positive momentum and (+) DI trading above (-) DI whereas OBV –on balance volume showing upward momentum and MACD trading around zero line with positive crossover, which indicates that the stock has the potential to move higher. Traders can buy the stock around current level and add on dips around Rs 242-244 with a stop loss below Rs 235 (closing) for the target of Rs 270. MORE WILL UPDATE SOON!!

We recommend traders to accumulate IGL in the range of Rs 279 to 275 with a price target of Rs 320 – 340 levels respectively. A stop loss should be placed below Rs 250 on a closing basis. After forming a strong base near Rs 240, Indraprastha Gas (IGL) saw a spectacular run-up during late June 2018 through early August 2018. Subsequently, it witnessed a decent profit booking and corrected towards Rs 273 – 275. Looking at the daily chart, the previous daily resistance of early June 2018 which was acting as a strong resistance had reversed its role post breakout and is likely to provide strong support. The daily RSI (14) is approaching towards the 40 levels. Hence, we recommend traders to accumulate IGL in the range of Rs 279 to 275 with a price target of Rs 320 – 340 levels respectively. A stop loss should be placed below Rs 250 on a closing basis. MORE WILL UPDATE SOON!!

We recommend buying Tech Mahindra for the upside target of Rs 730 and keeping a stop loss placed below Rs 665. Tech Mahindra has broken out from the downward sloping trendline, adjoining the high of June 28, August 1 and August 14, 2018 on the daily chart by closing above the Rs 675 levels with higher volumes. The short-term moving averages are trading above the long-term moving averages, indicating a bullish trend. The momentum indicators and Oscillators are indicating strength in the stock for the short to medium-term. Technology as a sector is doing well and looking good for the short-term. Therefore, we recommend buying Tech Mahindra for the upside target of Rs 730 and keeping a stop loss placed below Rs 665. MORE WILL UPDATE SOON!!

The stock can be bought at current level and on dips to Rs 183 with a stop loss below Rs 178 for a target of Rs 210-215 levels. After hitting an all-time high of Rs 213.85 in the month of October 2017,  L&T Finance Holdings witnessed correction down to Rs 145-140 levels. It has seen consolidation between Rs 186 and Rs 140 odd levels for nine months and formed a base. After a strong rally from the bottom of the base to Rs 186 levels, the stock has been consolidating in a narrow range between Rs 186 and Rs 172 levels for last three weeks. On Monday, the stock witnessed a breakout from the pattern with momentum and volumes indicating buying participation in the stock. The daily MACD line has given positive crossover with its average and the weekly line has moved above equilibrium level of zero suggesting consolidation phase is over and resumption of the uptrend. Thus, the stock can be bought at current level and on dips to Rs 183 with a stop loss below Rs 178 for ...