Look at our call......Still waiting to trade

Today we had given call to Buy kotak Mahindra Bank 1460 PE option call to buy at premium around. 22.50—21.00 with Stop loss of 20.00

The call proved fruitful as it made a high of 35.95 and now CMP 35.35…..Hope you minted Profit.

We made a profit of Rs 5000 on 1 Lot or Profit of approx. 55% on 1 Lot…….

Keep Trading and following our free Intraday call Blog: https://tradingcalls-indianmarketpulse.blogspot.com/

MORE WILL UPDATE SOON!!

IGL call Proved fruitful--Check It out can be carry for Tommorrow.....

Today we had given call to Buy IGL 320 PE option call to buy at premium around. 4.00—4.20 with Stop loss of 4.00.

The call proved fruitful as it made a high of 6.50 and now CMP 5.00…..Hope you minted Profit.

We made a profit of Rs 6325 on 1 Lot or Profit of approx. 54% on 1 Lot…….

Keep Trading and following our free Intraday call Blog: https://tradingcalls-indianmarketpulse.blogspot.com/

MORE WILL UPDATE SOON!!

Congratulations to Chandrayaan -2 Mission Team for There Extraordinary success-- Make India Proud Again

  

Jai Hind ...

Stocks in the news: RIL, HDFC Bank, Amara Raja, InterGlobe, Dabur, SpiceJet, Automobile Corp, Cipla

Amara Raja | InterGlobe Aviation | SpiceJet | Cipla | Strides Pharma | CG Power and IOL Chemicals are stocks which are in the news today.

Results on July 22: Kotak Mahindra Bank, United Spirits, Lakshmi Machine Works, Dewan Housing Finance Corporation, Oriental Bank of Commerce, Can Fin Homes, Hindustan Media Ventures, TVS Motor Company, Aptech, ICICI Securities, Just Dial, GlaxoSmithKline Pharmaceuticals, Just Dial, Wendt (India), Cupid, Mastek, Coromandel International, Allsec Technologies, Srikalahasthi Pipes.

Reliance Industries Q1: Consolidated profit falls 2.5 percent to Rs 10,104 crore versus Rs 10,362 crore, revenue rises 13.2 percent to Rs 1.57 lakh crore versus Rs 1.38 lakh crore QoQ.

Reliance Jio Q1: Profit rises 6.1 percent to Rs 891 crore versus Rs 840 crore, revenue climbs 5.2 percent to Rs 11,679 crore versus Rs 11,106 crore QoQ.

Reliance Industries: Brookfield to invest Rs 25,215 crore in units by Tower Infrastructure Trust. Reliance Industrial Investments & Holdings holds 51 percent stake in Tower Infrastructure Trust.

Reliance Industries: Company will merge Reliance Holding USA Inc and Reliance Energy Generation and Distribution Limited with itself.

HDFC Bank Q1: Profit grows 21 percent to Rs 5,568.2 crore versus Rs 4,601 crore, NII jumps 22.9 percent to Rs 13,294 crore versus Rs 10,813.6 crore YoY; gross NPA rises to 1.40 percent versus 1.36 percent and net NPA increases to 0.43 percent versus 0.39 percent QoQ.

Future Lifestyle Q1: Profit falls to Rs 24.5 crore versus Rs 26.6 crore, revenue rises 16.8 percent to Rs 1,540.3 crore versus Rs 1,318.9 crore YoY.

Amara Raja Batteries Q1: Standalone profit jumps 24.7 percent to Rs 140.9 crore versus Rs 113 crore, revenue rises 2 percent to Rs 1,814.9 crore versus Rs 1,778.7 crore YoY.

L&T Technology Services Q1: Profit rises 6.5 percent to Rs 204 crore versus Rs 191.5 crore, revenue increases 0.3 percent to Rs 1,347.5 crore versus Rs 1,343.1 crore QoQ.

L&T Finance Holdings Q1: Profit increases 2 percent to Rs 549 crore versus Rs 538 crore, revenue rises 15.7 percent to Rs 3,595 crore versus Rs 3,106 crore YoY.

InterGlobe Aviation Q1: Profit surges to Rs 1,203 crore versus Rs 27.8 crore, revenue jumps 44.7 percent to Rs 9,420.1 crore versus Rs 6,512 crore YoY.

Avanti Feeds Q1: Profit rises to Rs 92.96 crore versus Rs 85.67 crore; revenue increases to Rs 1,093.5 crore versus Rs 1,040.2 crore YoY.

Dabur told CNBC-TV18: Company has Rs 50 crore exposure each to DHFL and Reliance Home Finance.

Jet Airways: Resolution Professional invites expression of interest for the airline, last date of receipt of EoI set for August 3.

June Aviation Data: IndiGo passenger load factor at 90.1 percent against 90.9 percent and market share at 48.1 percent versus 49 percent; SpiceJet passenger load factor at 93.7 percent versus 93.9 percent and market share at 15.6 percent versus 14.8 percent MoM.

Cipla: United States Food and Drug Administration (USFDA) conducted a routine cGMP inspection at API manufacturing facility in Bengaluru and issued 7 observations, none of which were repeat or related to data integrity.

CG Power and Industrial Solutions: Company bagged contract for 400 MW wind farm in Saudi Arabia.

Bharat Heavy Electricals (BHEL) has secured a prestigious order for erection work of reactor side equipment of 2x1000 MWe (Units 3&4) Kudankulam Nuclear Power Project in Tamil Nadu

Strides Pharma: Company announced successful completion of US FDA inspection at its flagship facility in Bangalore, with a Voluntary Action Indicated (VAI) classification.

Cipla's wholly owned step down subsidiary InvaGen Pharmaceuticals Inc. receives final approval for generic version of Pfizer's Lyrica Pregabalin Capsules.

Edelweiss Financial Services: CRISIL re-affirmed its credit rating of A1+ assigned to the short term borrowing programmes of the company.

Vodafone Idea: Board of Directors of associate company Aditya Birla Idea Payments Bank approved the voluntary winding up of itself due to unanticipated developments in the business landscape that have made the economic model unviable.

REC: Company raised $650 million via bonds.

IOL Chemicals & Pharmaceuticals: Company has made the pre-payment of term loan of Rs 15.39 crore due to banks in addition to regular repayment schedule.

Anuh Pharma: Company facility has passed the joint inspection by AEMPS - Spain, EDQM and WHO-Geneva conducted on November 26-28, 2018.

OM Metals Infraprojects: Company acquired additional 24 percent shareholding in Gujrat Warehousing Private Limited by way of conversion of loan into equity shares, thereby making it as subsidiary company.

McNally Bharat Engineering Company: Company received one order from NLC India Limited, relating to work of Formation of Internal & Peripheral roads and Construction of culverts' located at Talabira R&R colony in Odisha worth Rs 10.43 crore.

Automobile Corporation of Goa: Board to consider buyback of equity shares of the company on July 24.

IndiGo: Board to seek shareholders approval at AGM to enable induction of an independent Woman Director.

Axis Bank: Board approves raising up to Rs 18,000 crore via securities.

DCM Financial Services: Company appointed Somali Tiwari as Chief Financial Officer.

Piramal Enterprises: Company made payment on NCDs due on July 19.

Reliance Home Finance: Company made principal/interest payment on NCDs due on July 19.

Indo Count Industries: ICRA revised rating of company's short term credit facilities from A1+ to A1, and long term credit facilities from AA- to A+(A plus) with outlook revised to stable from negative.

Brickworks Ratings India has revised the ratings of NCDs worth Rs 50 crore of Cox & Kings to BWR D from BWR C

ARSS Infrastructure Projects: Company's JV received work order of Rs 77.96 crore for construction of earth work, bridge work, protection work for minor and major bridges, slope of bank, buildings, site facilities, general electrical works and other miscellaneous works in connection with the doubling of Sambalpur - Titlagarh in Sambalpur Division of East Coast Railway, from Rail Vikas Nigam Limited.

Century Textiles: Company appointed Kumar Mangalam Birla as Chairman.

Godawari Power & Ispat: CARE revised its rating on company's long term bank facility to BBB+ with stable outlook from BBB earlier.

Dr Reddy's Laboratories: Company sold its US and select territory rights for Zembrace Symtouch (sumatriptan injection) 3 mg and Tosymra (sumatriptan nasal spray) 10 mg, which were commercialized through its wholly owned subsidiary, Promius Pharma, LLC, to Upsher-Smith Laboratories, LLC.

Century Enka: Board elected Rajashree Birla as chairperson.

Bulk deals

MORE WILL UPDATE SOON!!

HDFC Bank Q1: Brokerages remain positive but flag loan growth, asset quality concerns

Brokerages have retained their positive stance on the stock on strong operating performance and expect stock to return 14-16 percent over a period of one year.

Shares of HDFC Bank fell nearly 3 percent intraday on July 22 after moderate weakness in Q1 asset quality and slow down in retail loan growth, but brokerages remain positive on the stock.

The private sector lender registered a 21 percent year-on-year increase in profits and 23 percent rise in net interest income with loan growth at 17 percent for the quarter ended June 2019, which all came in line with analyst expectations.

The loan growth was moderated due to a consistent slowdown in retail book and auto segment.

However, on the asset quality front, gross non-performing assets and net non-performing assets increased 4bps each sequentially to 1.4 percent and 0.43 percent, respectively.

Provisions for bad loans also increased significantly by 38.3 percent sequentially and 60.4 percent year-on-year to Rs 2,613.7 crore in the June quarter due to unsecured book and NBFC accounts.

The stock has lost 7 percent in the last 15 trading sessions. It was quoting at Rs 2,312.45, down Rs 63.50, or 2.67 percent on the BSE at 0931 hours IST.

Here is what brokerages say: 

Morgan Stanley

While maintaining overweight call on the stock, global brokerages said core pre-provision operating profit was 2 percent above its estimate, helped by strong NII.

The research house further said loan growth moderation was broad-based, led by corporate banking. Morgan Stanley is positive on bank's strong balance sheet.

Jefferies

The brokerage has retained its buy call on the stock with a target price at Rs 2,755, implying 16 percent potential upside from current levels.

Retail loan growth has slowed down for two quarters. Management has likely taken a counter-cyclical approach on unsecured loans and didn't indicate any early 'red flags', it said.

But it is still one of the best managed banks out there and rise in provisions compensated by higher other income, Jefferies added.

Credit Suisse

The brokerage has an outperform rating on the stock with a target price at Rs 2,700, implying 14 percent potential upside from current levels.

Growth has moderated but core profitability is intact. Credit Suisse cut its FY20/21 EPS estimates by 3 percent.

Motilal Oswal

HDFC Bank's operating performance remained strong, although business growth has shown moderation, reflecting weakness in the consumption-linked lending segments and cautious stance on unsecured loans, Motilal Oswal said.

It lowered its growth estimates marginally. The brokerage expects the bank to deliver 19/20 percent loan book/PAT CAGR over FY19-21, led by stable margins and a continued improvement in operating leverage.

It maintains buy call on the stock with a target price of Rs 2,750, implying 16 percent potential upside from current levels.

Prabhudas Lilladher

Bank continues to deliver on most of its core operating metrics with a well-managed portfolio mix, Prabhudas Liladher said.

Hence, HDFC Bank remains its most preferred pick in banking universe. The brokerage retained buy call with a target price at Rs 2,700, implying 14 percent potential upside from current levels.

MORE WILL UPDATE SOON!!

Nifty likely to remain weak; deploy Long Put Butterfly Spread this week

Bank Nifty after holding 30,000 for almost two months breached the level on July 19. The index seems to have lost the interest of Put writers

The last week started on a positive note but then the momentum fizzled out in the last two trading sessions and pushed Nifty below 11,500-11,450 for the week ended July 19.

Nifty lost 1.2 percent for the week while outperforming Bank Nifty lost 2.7 percent.

On the options front, the upside remains capped at 11,700 with heavy call built up, and at the lower end strong support was seen at 11,600 and 11,500, but this scenario was relevant at the beginning of the week.

After witnessing a fall of over 1.5 percent in the last session, it brought the lower level congestion down to 11,300 for Nifty.

Bank Nifty after holding 30,000 for almost two months breached the level on July 19. The index seems to have lost the interest of Put writers.

The only silver lining that one can see in this week is that the weakness did not attract a lot of short additions in any of the indices.

India VIX, on the other hand, keeps making fresh lows one week after the other.

Initial signs suggest that option writers are not getting worried, and that is a good sign. However, the mean-reverting characteristic of the Risk index does indicate a potential threat.

Lack of OI in futures amid recent weakness and aggregate OIPCR close to 1 still keeps the gyrating element active in Nifty.

With relative heaviness at 11,300, the ongoing move can be traded via moderately bearish Long Put Butterfly.

Long Put Butterfly Spread is a range-bound strategy that offers decent reward to risk at a low cost. Under the strategy, we sell 2 Puts close to the expected level in sight on the lower side and buy equidistant Puts one on the higher and one on the lower side of the strike sold.

As we are trading weekly options, faster time decay will be beneficial to the strategy. Maximum profit is made if the index closes at the strike of the option so

MORE WILL UPDATE SOON!!

Kotak Mahindra Bank likely to post robust profit growth in Q1, asset quality to be stable

Kotak Bank has maintained its asset quality at a pristine 2 percent level (gross non-performing assets).

Kotak Mahindra Bank, country's third largest private sector lender by market capitalisation, is expected to report healthy year-on-year growth in profit and net interest income, with stable asset quality on sequentially in Q1.

Profit growth in Q1 could be up to 40 percent on fall in provisions, and net interest income over 20 percent compared to a year-ago with stable NIM and strong loan growth.

"Most metrics like business growth, CASA, NIMs and earnings will be strong, while we also don't see major hiccups in asset quality with credit cost close to 50-55bps," said Prabhudas Lilladher that expects 35 growth in profit and 22 percent in net interest income for the quarter YoY.

The brokerage expects gross non-performing assets at around 2.16 percent in Q1FY20 against 2.14 percent in Q4FY19 and 2.17 percent in Q1FY19.

Kotak Bank has maintained its asset quality at 2 percent level (gross non-performing assets).

Motilal Oswal expects the bank to report loan growth of around 22 percent YoY and deposit growth of around 19 percent YoY in Q1FY20. It said margins are likely to remain at around 4.4 percent in June quarter against 4.48 percent in the previous quarter and 4.3 percent year-ago.

CASA retention would be a key driver of NII and NIM, the brokerage said, adding with strong digital initiatives and fast-paced customer acquisition, fee income would be a key growth driver for the bank.

Motilal Oswal, which expects 33 percent growth in profit YoY, further said it factored in other income growth of around 8 percent in Q1FY20, driven mostly by healthy fee traction and expects the trend to continue.

Most brokerages expect pre-provision operating profit growth could be over 15 percent YoY.

Key issues to watch out for would be guidance on balance sheet growth, CASA and fee income growth; trend in customer acquisition post the Aadhaar verdict; GNPAs in the MSME segment; and update on the stake reduction.

MORE WILL UPDATE SOON!!

Rupee extends losses, trades lower at 68.99 per dollar

On July 19 the Indian rupee ended 17 paise higher at 68.80 against the US dollar as market participants pinned their hopes on an aggressive rate cut by the US Federal Reserve later this month.

The Indian rupee has extended the morning losses and trading lower by 19 paise at 68.99 per dollar versus Friday's close 68.80.

On July 19 the Indian rupee ended 17 paise higher at 68.80 against the US dollar as market participants pinned their hopes on an aggressive rate cut by the US Federal Reserve later this month.

MORE WILL UPDATE SOON!!

Stock picks of the day: Grasim, Adani Ports & Bajaj Finance top shorting ideas

If Nifty trades below 11,485 levels then we may see some profit booking initiating in the market, which may correct up to 11,330-11,245-11,090 levels.

 

The Nifty started the week on a flat note and extended positive momentum in the initial half, but selling pressure at higher levels dragged the index towards the lower to end the week on a negative note. The Nifty closed at 11,419 with a loss of 133 points for the week ended July 19.

On the weekly chart, the index has formed a bearish candle forming lower High-Low compared to the previous week indicating negative bias. On the daily chart, Nifty has decisively broken down its past eight sessions Up-sloping Trendline support on a closing basis which signals further weakness.

The chart pattern suggests that if Nifty crosses and sustains above 11,500 levels then it could upward momentum which would take the index towards 11,580-11,700.

However, if the index breaks below 11,400 levels it would witness selling which would take the index towards 11,320-11,260. The Nifty is trading below 20, 50 and 100-day SMA's which are important short term moving average, indicating negative bias in the short term.

The Nifty continues to remain in a downtrend in the short term, so buying near to major supports on dips continues to be our preferred strategy. For the week, we expect Nifty to trade in the range of 11,550-11,270 with a negative bias.

The trend deciding level is 11,485. If NIFTY trades above this level then we may witness a further rally up to 11,575-11,725-11,815 levels.

However, if Nifty trades below 11,485 levels then we may see some profit booking initiating in the market, which may correct up to 11,330-11,245-11,090 levels.

Here is a list of top three stocks which could give 4-7 percent return in the next three-four weeks:

Grasim Industries (Aug Fut): Sell| selling range: Rs 888-900| LTP: Rs 881.30| Target: Rs 855-840| Stop Loss: Rs 911| Downside 4-6 percent

On the daily chart stock, the price has decisively broken down from its Horizontal Channel levels of 950-885 on a closing basis and is also sustaining below the same.

This breakdown is accompanied with an increase in volumes which supports bearish sentiments ahead. The daily strength indicator RSI and the momentum indicator Stochastic both are in negative territory which supports downside momentum to continue in the near term.

The stock price has broken its 20 and 50-day SMA which supports bearish sentiments ahead.

Adani Ports (Aug Fut): Sell| Selling Range: Rs 410-418| LTP: Rs 408| Target: Rs 395-387| Stop Loss: Rs 423| Downside 5-7 percent

On the daily chart, the stock price has again failed to cross its resistance zone and witnessed selling pressure at higher levels.

This breakdown is accompanied with an increase in volumes which supports bearish sentiments ahead.

The daily strength indicator RSI and the momentum indicator Stochastic both have turned negative which supports downside momentum to continue in the near term.

The stock price has broken its 20 and 50 day SMA which supports bearish sentiments ahead.

Bajaj Finance (Aug Fut): Sell| Selling Range: Rs 3,380-3,420|LTP: Rs 3,346.60| Target: Rs 3,260-3,180| Stop Loss: Rs 3,500| Downside 4-6 percent

On the daily chart, the stock price has decisively broken down from its Upsloping Trendline levels of Rs 3,475-3,480 levels on a closing basis and sustaining below the same.

This breakdown is accompanied with an increase in volumes which supports bearish sentiments ahead. The weekly strength indicator RSI and the momentum indicator Stochastic both are in negative territory which supports downside momentum to continue in the near-term.

The stock price is sustaining well below its 20 and 50-day SMA which supports bearish sentiments ahead.

MORE WILL UPDATE SOON!!

Two-thirds Nifty stocks trade at 10-70% discount to their 52-wk highs; should you buy?

Sensex stocks are also following a similar trend and 18 of them are trading at 10-70 percent lower than their respective 52-week highs.

Over two-thirds of Nifty stocks are trading at a double-digit discount to their respective 52-week highs, which has also pulled the index 5 percent lower in June-July.

These 34 stocks include Cipla, Titan, ONGC, Hero MotoCorp, ZEE Entertainment, Sun Pharma, JSW Steel, M&M, Maruti Suzuki and YES Bank, among others.

Sensex stocks are also following a similar trend and 18 of them are trading at 10-70 percent discount to their 52-week high.

Experts suggest investors wait for the cues rather buying due to attractive valuations. “Nifty has time and again disappointed the Street and the macros are also not lifting the sentiment either. In the midst of so much negativity, it is best to wait rather than jump into any stock.

There is still room for further decline. "Investors should look at the return on equity, free cash flows, exposure to debt, promoter pledge, operating efficiency, and other fundamental factors before catching a falling knife,” he added.

Table: Top 20 stocks based on returns that have fallen 10-70 percent from their respective 52-week highs.

The situation in the broader market is not encouraging either. 56 stocks in the top 500 on the NSE are trading at a discount of 50-90 percent from their respective 52-week highs.

They include SREI Infra, Jain Irrigation, Central Bank, Infibeam, HEG, Graphite India, Reliance Capital, Jet Airways, DHFL, Reliance Communications and Cox & Kings Ltd, among others.

These stocks though have fallen far from their respective highs and look reasonably valued, but unlikely to see a reversal soon, suggest experts. Hence, long term investors should stay away.

Table: Top 20 of NSE500 stocks that have fallen the most from their 52-week highs. 

The underperformance in the broader market is mainly a result of weak domestic sentiments and muted earnings expectations for Q1FY20.

Investors generally prefer investing in stable markets. Political uncertainty, unexciting earnings growth dampen their sentiments and keep them away from the markets.

In volatile markets, investors should avoid catching the falling knife and rather focus on fundamentally sound stocks with strong corporate governance, healthy balance sheet, comfortable valuations and good growth prospects.

MORE WILL UPDATE SOON!!

Market Live: Indices recover with Nifty around 11,350, Sensex falls 250 pts; Yes Bank rises 7%

Among the sectors, except metal all other indices are trading lower led by bank, pharma, infra, FMCG and IT.

Rupee Update: The Indian rupee has extended the morning losses and trading lower by 19 paise at 68.99 per dollar versus Friday's close 68.80.

Lupin’s Nagpur facility wins ENR global best project award: Lupin has won the Engineering NewsRecord’s (ENR) Global Best Project Award of Merit in the Manufacturing category. The award was given to Lupin’s Oral Solid Dosage (OSD) and Injectable Pharmaceutical Manufacturing Facility at Nagpur, India.

• Brokerages bullish on Dabur after strong Q1 growth
• Shares of Dabur India gained nearly 2 percent intraday as global brokerages remained bullish on the stock, citing strong earnings growth though management commentary was cautious about demand outlook ahead.

  The brokerages expect the stock to return 10-22 percent over a period of one year.

Nifty Around 11,350:

Benchmark indices extended losses for third consecutive session with the Sensex falling 273.84 points to 38,063.17 and the Nifty declining 70.30 points to 11,349 amid asset quality concerns.

More than two shares declined for every share rising on the BSE.

Results Today

Kotak Mahindra Bank, United Spirits, Lakshmi Machine Works, Dewan Housing Finance Corporation, Oriental Bank of Commerce, Can Fin Homes, Hindustan Media Ventures, TVS Motor Company, Aptech, ICICI Securities, Just Dial, GlaxoSmithKline Pharmaceuticals, Just Dial, Wendt (India), Cupid, Mastek, Coromandel International, Allsec Technologies and Srikalahasthi Pipes will announce their June quarter earnings today.

HDFC Bank Falls Nearly 3%

Brokerages retained their positive stance on the stock on strong operating performance and expect stock to return 14-16 percent over a period of one year, but they concerned about moderation in loan growth (due to slowdown in auto & retail segment) and hike in provisions related unsecured book & NBFC/HFC accounts.

MORE WILL UPDATE SOON!!