Asian Paints, Dabur among 5 stocks that can return 10-16% in August series

The market has good support at 11,340-11,300 levels. But, the index needs to clear immediate resistance of 11,400-11,420 for the bounce back.

 

Nifty failed to hold on to its gains after a late surge as the market turned volatile towards the close of the session on July 23. Nifty finally settled at 11,331 marginally lower by 0.13 percent.

The broader market indices i.e. the BSE Midcap lost 0.56 percent while the BSE Smallcap was up by 0.38 percent for the day. For the last couple of days, the index is hovering around rising support trend line connecting lows of 10,005 and 10,586 which comes around 11,340.

The market has good support at 11,340-11,300 levels. But, the index needs to clear immediate resistance of 11,400-11,420 for the bounce back to be seen towards 11,500 and then possibly 11,600 levels.

A break below 11,300 could extend the decline towards 11,100-11,000 where the next support is seen.

Here are top five stocks that could give 10-16 percent return in August series:

Power Grid Corporation: Buy| LTP: Rs 210| Stop loss: Rs 199| Target: Rs 245| Upside: 16 percent

The stock touched an all-time high of Rs 226 in July'17 and then corrected down towards Rs 172. It has consolidated between Rs 205 and Rs 172 for the last one year with above-average volumes that suggests accumulation at lower levels.

The lows of the consolidation were formed at the 200-week moving average that indicates a value area for the stock. In late June, the stock witnessed a breakout from the consolidation range with strong momentum and volumes.

It crossed the falling resistance trend line of the correction connecting highs of Rs 226 and Rs 216. For the last four weeks, the stock has been consolidating in the range of Rs 211 and Rs 200 above the breakout level and closed at a high of the range.

The Relative Strength Index (RSI) and Stochastic have given a positive crossover with their respective averages on the daily chart suggesting that it is likely to resume its uptrend.

Thus, the stock can be bought at current levels and on dips towards Rs 207, with a stop loss below Rs 199 and a target of Rs 245.

Asian Paints Ltd: Buy| LTP: Rs 1,429| Stop loss: Rs 1,370| Target: Rs 1,600| Upside: 12 percent

The stock is in an uptrend forming higher tops and higher bottoms on the weekly charts. It is trending higher in a rising channel on the weekly chart.

The stock formed a double bottom pattern with lows at Rs 1,300 odd levels. It witnessed a strong momentum from lower levels. The stock took support near the recent low formed around 100-week moving average.

The price has also given a breakout on the upside from Bollinger Band with the expansion of bands indicating a continuation of the trend in the direction of the breakout on the daily chart.

The Relative strength index and Stochastic have given a positive crossover with their respective averages on the weekly chart. Thus, the stock can be bought at current levels and on dips towards Rs 1,405 with a stop loss below Rs 1,370 and a target of Rs 1,600.

HDFC Life Insurance: Buy| LTP: Rs 508| Stop loss: Rs 480| Target: Rs 580| Upside: 14 percent

The stock witnessed consolidation between Rs 420 and Rs 345 to form a base. In late May, it witnessed a breakout. Since then, it has been in an uptrend forming higher tops and higher bottoms.

The stock has seen good volumes since its February low of Rs 345 indicating continuous buying momentum during its up move. Looking at the broader structure, the stock is forming a bottoming pattern on the weekly chart and will see a fresh breakout above Rs 548.

The Average Directional Index (ADX) line, an indicator of uptrend strength has moved above the equilibrium level of 20 with rising Plus Directional line above the neutral level on the weekly chart.

Thus, stock can be bought at current levels and on dips towards Rs 500 with a stop loss below Rs 480, and a target of Rs 580.

Dabur India Ltd: Buy| LTP: Rs 424| Stop loss: Rs 405| Target: Rs 480| Upside: 13 percent

After hitting an all-time high of Rs 490 in August last year, the stock declined towards Rs 360. It has seen a bounce back from the strong support level of Rs 360 where multiple lows and previous highs are seen. Thus, indicating as value area for stock.

The price has moved above the long-term 200-day moving average with strong momentum and volumes. It is trading at an almost four-month high.

ADX line has moved above the equilibrium level of 20 with Plus Directional line above the neutral level on the daily chart.

Thus, the stock can be bought at current levels and on dips towards Rs 418 with a stop loss below Rs 405 and a target of Rs 480.

Apollo Tyres Ltd: Sell| LTP: Rs 168| Stop loss: Rs 174| Target: Rs 150| Downside: 10 percent

The stock is in a downtrend forming lower tops and lower bottoms on daily and weekly charts. The stock has broken the key support level of Rs 172 and closed below it.

It has formed long bearish candle with high volumes indicating selling pressure and suggesting a continuation of the downtrend.

The price has given a breakout on the downside from the Bollinger Band, and with an expansion of bands indicates a continuation of the trend in the direction of breakout on the daily chart.

ADX line has moved above the equilibrium level of 20 rising Minus Directional line above the neutral level on the weekly chart.

Thus, stock can be sold at current levels and on rise to Rs 170 with a stop loss above 174, and a target of 150.

MORE WILL UPDATE SOON!!

Dolly Khanna trims stake in 11 cos in Q1 as small and midcaps continue to tumble

Most stocks in their portfolio have given negative returns so far in 2019, which has led the duo to reduce holdings or book profits in stocks where valuations were high.

Chennai-based Dolly and Rajiv Khanna, famous for picking quality mid and smallcap stocks, cut their stake in 11 companies in the June quarter, according to shareholding data as of July 22.

Most stocks in their portfolio (primarily mid and smallcaps) have given negative returns so far in 2019, which has led the duo to reduce holdings.

There are six companies in which the duo reduced stake in June quarter but kept it above 1 percent. They are IFB Agro Industries, Nocil, Muthoot Capital, Rain Industries, Nilkamal and Radico Khaitan.

For the last 18 months, the broader market has been under pressure. The small and midcap indices are still trading significantly lower than their life highs. No surprise that the stocks of all the six companies in which the duo cut stakes have given negative returns, falling 20-50 percent.

Table: Six stocks in which Dolly and Rajiv Khanna cut stakes in April-June period but kept it above 1 percent. Please note that this is not the exhaustive list of companies in which the duo hold stakes, but an indicative list of companies in which they have more than 1 percent stake. They have also cut stake in another five companies, bringing it to below 1 percent. 

 

In five companies, the duo either exited or brought their stake below 1 percent. They are Butterfly Gandhimathi Appliances, JK Paper, RSWM, Ruchira Papers and Som Distilleries & Breweries.

Small and midcaps have been largely weighed down by corporate governance issues, absence of earnings growth, and persistent selling by institutional investors as fears of growth slowdown looms.

IFB Agro, Nocil, and Muthoot Capital in which the duo decreased their stake has fallen over 40 percent so far in 2019. Other stocks such as Rain Industries, Nilkamal, and Radico Khaitan fell 20-30 percent in the same period.

Rajiv Khanna started investing in equities in 1996 with an initial investment of Rs 1 crore. His portfolio is now worth over Rs 700 crore, according to some reports.

MORE WILL UPDATE SOON!!

HDFC Life climbs 5% to hit 52-week high after Q1 show; brokerages raise target

Global brokerage house Citi upgraded its rating on HDFC Life to buy from sell and also raised target price to Rs 600 from Rs 390, as value of new business (VNB) delivery was much ahead of expectations in Q1.

   

Shares of HDFC Life Insurance Company rallied nearly 5 percent intraday to hit 52-week high of Rs 532.90 on July 24. Global brokerage houses raised price target sharply after stellar earnings performance in Q1.

At 0925 hours IST, the stock was quoting at Rs 526.50, up Rs 17.90, or 3.52 percent on the BSE.

HDFC Life reported 11.7 percent year-on-year growth in profit at Rs 424.62 crore, driven by growth in new business premiums.

New business margins jumped to 29.8 percent in Q1FY20, compared to 24.2 percent a year ago. The 13th-month persistency also rose to 88.8 percent in Q1FY20 from 85 percent in the year-ago period.

Global brokerage house Citi upgraded its rating on HDFC Life to buy from sell and also raised target price to Rs 600 from Rs 390, as value of new business (VNB) delivery was much ahead of expectations in Q1.

Stock can still do well on the back of VNB CAGR Of 39 percent over FY19-21, the investment firm said, adding HDFC Life expects product mix to get more balanced with growth in par & ULIP improving.

Company's individual annualised premium equivalent (APE) increased 64 percent YoY and new business premium jumped 47 percent in the June quarter.

There was a stark change in HDFC Life's product mix in the June quarter. Unit-linked products mix dropped to 26 percent of individual APE in Q1 compared to 54 percent a year ago. On the other hand, the share of non-par savings rose to 63 percent in Q1FY20 from 11 percent in Q1FY19.

"We have recorded stellar topline growth, with strong traction witnessed across savings, protection and retirement solutions whilst maintaining our focus on profitability. Our diversified distribution mix coupled with product innovation has helped us address niche customer segments and emerging profit pools.

The company has stepped up efforts within the protection and retirement space, which she expects would fuel growth across market cycles, he added.

Another global research firm CLSA also maintained buy call on the stock and upped target price to Rs 610 from Rs 490 per share earlier as it sees margin of 27 percent and return on embedded value (RoEV) of 20 percent over FY19-22.

HDFC Life's operating return on embedded value (EV) stood at 19.9 percent in Q1 compared to 18.4 percent a year ago. Operating Return on EV is the ratio of EVOP (Embedded Value Operating Profit) for any given period to the EV at the beginning of that period.

MORE WILL UPDATE SOON!!

Stocks in the news: L&T, HUL, Zee Entertainment, Torrent Pharma, MCX, Praj Ind, Strides Pharma

Zee Entertainment | Torrent Pharma | MCX | Praj Industries | JK Paper | M&M Financial and Everest Industries are stocks which are in the news today.

Here are stocks that are in the news today:

Results on July 24: Asian Paints, Canara Bank, Bharti Infratel, GE T&D India, Sagar Cements, Orient Bell, Liberty Shoes, Quess Corp, Monnet Ispat & Energy, MPS, Security and Intelligence Services, NELCO, Kewal Kiran Clothing, ICICI Prudential Life, Monsanto India, Sharda Cropchem, V-Guard Industries, Syngene International, KSB, Reliance Nippon Life Asset Management, Oberoi Realty, IDFC First Bank, Tube Investments of India, Newgen Software Technologies, Jubilant Foodworks, Rane (Madras), Intellect Design Arena, Umang Dairies, Syndicate Bank, Karur Vysya Bank, Crompton Greaves Consumer Electricals, Shriram Transport Finance Company, Cigniti Technologies, PI Industries, Tejas Networks, Maharashtra Scooters

L&T Q1: Profit grows 21.2 percent to Rs 1,473 crore versus Rs 1,215 crore, revenue increases 9.7 percent to Rs 29,636 crore versus Rs 27,004.8 crore YoY. Company retained FY20 order inflow growth forecast at 10-12 percent and sales growth guidance at 12-15 percent.

HUL Q1: Profit rises 14.2 percent to Rs 1,755 crore versus Rs 1,529 crore, revenue grows 6.6 percent to Rs 10,114 crore versus Rs 9,487 crore YoY.

Zee Entertainment Q1: Consolidated profit jumps 62.6 percent to Rs 530 crore versus Rs 326 crore, revenue rises 13.3 percent to Rs 2,008 crore versus Rs 1,772 crore YoY.

M&M Financial Q1: Profit at Rs 108.5 crore; disbursements grows 2.5 percent YoY to Rs 10,598 crore. AUM growth at 21.6 percent YoY. Gross NPA rises to 7.4 percent versus 5.9 percent QoQ.

Torrent Pharma Q1: Profit surges to Rs 223 crore versus Rs 122 crore, revenue increases to Rs 1,603 crore versus Rs 1,452 crore YoY.

Praj Industries Q1: Profit jumps to Rs 8.8 crore versus Rs 3.5 crore, revenue rises 10.4 percent to Rs 211.6 crore versus Rs 191.6 crore YoY.

Everest Industries Q1: Profit falls 16 percent to Rs 24.6 crore versus Rs 29.3 crore, revenue rises 3.2 percent to Rs 432.2 crore versus Rs 418.9 crore YoY.

Asian Hotels (North) Q1: Loss at Rs 13.99 crore versus loss Rs 19.67 crore; revenue falls to Rs 56.12 crore versus Rs 57.40 crore YoY.

JK Paper Q1: Consolidated profit jumps to Rs 127.11 crore versus Rs 95.19 crore, revenue falls to Rs 713.06 crore versus Rs 795.01 crore YoY.

Oriental Hotels Q1: Consolidated loss at Rs 7.55 crore versus Rs 3.83 crore, revenue dips to Rs 66.55 crore versus Rs 81.52 crore YoY.

Bharat Seats Q1: Profit falls to Rs 3.8 crore versus Rs 7.12 crore, revenue dips to Rs 170.3 crore versus Rs 238.84 crore YoY.

CRISIL Q1: Consolidated profit falls to Rs 66.85 crore versus Rs 77.13 crore, revenue declines to Rs 415.76 crore versus Rs 436 crore YoY.

Schaeffler India Q1: Profit dips to Rs 82.48 crore versus Rs 111.4 crore, revenue rises to Rs 1,116.7 crore versus Rs 1,100 crore YoY.

NIIT Technologies Q1: Consolidated profit falls to Rs 87.6 crore versus Rs 105.5 crore, revenue declines to Rs 962.7 crore versus Rs 972.2 crore QoQ.

Sundaram Clayton Q1: Consolidated profit declines to Rs 89.30 crore versus Rs 96.89 crore, revenue rises to Rs 5,307 crore versus Rs 4,968 crore YoY.

GE Power India Q1: Consolidated loss at Rs 8.76 crore versus profit at Rs 2.37 crore, revenue falls to Rs 428.66 crore versus Rs 443.12 crore YoY.

Bayer CropScience Q1: Profit falls to Rs 59.3 crore versus Rs 147.2 crore; revenue dips to Rs 663.6 crore versus Rs 831.8 crore YoY.

Linde India June Quarter: Profit jumps to Rs 20.16 crore versus Rs 5.25 crore, revenue falls to Rs 498.2 crore versus Rs 549.6 crore YoY.

Reliance Infrastructure, Reliance Capital: NSE to remove both stocks from F&O segment with effect from September 27, 2019.

Strides Pharma Science: Formulations facility (KRSG Gardens) in Bangalore which was inspected by the USFDA in May 2019, has received the Establishment Inspection Report (EIR), thereby confirming the successful closure of the inspections.

Deccan Healthcare: Board unanimously decided to expand the company's business with strategic partners through subsidiaries in different geographies, both domestic and international.

MCX: SEBI granted renewal of recognition to Multi Commodity Exchange Clearing Corporation Limited (MCXCCL), a wholly owned subsidiary of MCX, for a period of three years, to act as a clearing corporation.

Mishra Dhatu Nigam: Company supplied special ultra high strength steel & titanium alloys to Chandrayaan-2.

India Ratings and Research affirmed IDBI Bank's Long-Term Issuer Rating at IND A and Short-Term Issuer Rating at IND A1. Rating outlook has been changed from "Rating Watch Negative" to "Negative".

TV Today Network: National Company Law Tribunal sanctioned the composite scheme of arrangement & amalgamation between Mail Today Newspapers Private Limited, India Today Online Private Limited and TV Today Network.

Bulk deals

MORE WILL UPDATE SOON!!

D-Street Buzz: Nifty PSU Bank falls 3% dragged by PNB; Kotak Bank rises, VIX spikes

870 stocks advanced and 871 declined while 357 remained unchanged on the NSE. On the BSE, 1139 stocks advanced, 1234 declined and 171 remained unchanged.

 

The Indian stock market is trading in the red with Nifty down 31 points at 11,314 while the Sensex is down 95 points and is trading at 37,935 level.

Nifty PSU Bank is down over 3 percent dragged by Punjab National Bank, Bank of Baroda, State Bank of India, Union Bank of India, Central Bank of India, Oriental Bank of Commerce and Bank of India among others.

Midcap index shed over a percent, the top losers are Shriram Transport Finance, Motilal Oswal, M&M Financial Services, GRUH Finance, Union Bank of India and Cholamandalam Investment.

The top smallcap losers are Mastek, Kellton Tech, Talwalkars Healthclubs, SVP Global and V2 Retail among others.

India VIX spiked 4.23 percent and is trading at 13.56 levels.

The top gainers from NSE include Kotak Mahindra Bank, Hero Moto, Power Grid, ITC and Asian Paints while the top losers are State Bank of India, HDFC, Indiabulls Housing, Dr Reddy's Labs and Adani Ports.

The most active stocks are YES Bank, HDFC Bank, Kotak Mahindra Bank, Reliance Industries and HDFC.

420 stocks have hit 52-week low on BSE including Duke Offshore, Ruchi Soya, Cox & Kings, Andhra Cements, Eros Media, Prime Focus, Ballarpur Industries, Burnpur Cement, Capital Trust, Apollo Tyres, M&M Financial and Castex Technologies among others.

870 stocks advanced and 871 declined while 357 remained unchanged on the NSE. On the BSE, 1139 stocks advanced, 1234 declined and 171 remained unchanged

MORE WILL UPDATE SOON!!

L&T Q1: Global brokerages maintain rating; Nomura cuts target price

Brokerage firms are of the view that the results are a mixed bag, but the stock is a good proxy to play the domestic growth story.

 

Morgan Stanley and CLSA maintained their rating on L&T while Nomura slashed target price after the Engineering & infrastructure major reported a 21.2 percent growth in June quarter consolidated profit at Rs 1,473 crore year-on-year.

Profit in the corresponding quarter last fiscal was at Rs 1,129 crore. Profit from continuing operations increased 20.5 percent YoY to Rs 1,361 crore.

Larsen & Toubro in its BSE filing said its consolidated revenue was at Rs 29,636 crore from continuing operations, growing 10 percent year-on-year on good execution progress.

Brokerage firms are of the view that the results are a mixed bag, but the stock is a good proxy to play the domestic growth story.

Nomura maintained its buy call on L&T but slashed its target price to Rs 1,725 from Rs 1,745 earlier.

Growth guidance has been retained as prospects remain robust, which is a good sign. On the other hand, the core margin still remains flattish, but Nomura expects a revival in H2FY20.

The global investment bank slashed earnings per share (EPS) estimates by 7-9 percent.

The company retained its full-year order inflow growth guidance at 10-12 percent and sales growth forecast at 12-15 percent. The company won new orders worth Rs 38,700 crores at the group level during the quarter ended June 2019 registering a growth of 11 percent, which included international orders of Rs 9,005 crore.

CLSA maintained its buy rating on L&T with a target of Rs 1,730 as inflows came as a surprise in a tough macro environment.

Although the results were a mixed bag, the company surprised on new orders, but on the other hand, execution slowed. Weak infrastructure margin is transient in nature, feel CLSA.

A positive surprise in the quarter gone by came from large order wins in power, infra and hydrocarbon. L&T is a good proxy for domestic capex. It has a credible strategy to improve both growth and return on equity (ROE).

Morgan Stanley maintained its overweight call on L&T with a target price of Rs 1,786. The infrastructure major reported decent numbers in a challenging quarter which is a positive sign.

The order book, as well as the balance sh eet, remain strong. The stock has corrected about 13 percent in the last three weeks, providing a good opportunity to buy, Morgan Stanley said.

MORE WILL UPDATE SOON!!

Our Chandrayan-2 Call Of the day-->Asian Paints 1440 CE (Aug 29)............

Today  we had a call  to buy Asian Paints in option ( 29 Aug ) @ 1440 CE  for premium around 32--28 with target of 50--76..

Look at our call as it skyrocketed and made a day high of 75.25 and still trading at 72.60.

Hope You minted Profit

If you bought a single lot of Asian paint according us 

the profit would be 600*(76-32)=24400 in a single day.....

Chandrayan 2-> CALL OF THE DAY-IndianMArketPulse

Call was given free on our blog for free  !!

So what are you waiting for

Still confused....Join Us and follow our team.

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

or FOLLOW our Blog>>

https://indianmarketpulse.blogspot.com/p/free-intraday-calls.html

MORE WILL UPDATE SOON!!

skyrocket call of the day-.Asian Paints --- (10:53 AM)

Today  we had a call  to buy Asian Paints in future ( 29 Aug ) @ 1420--1410 for the Target of 1440--1475 with Stop loss of 1375

Look at the call-->

It Skyrocketed AND MADE HIGH OF 1482 

Hope You minted Profit

If you bought a single lot of Asian paint according us 

the profit would be 600*(1475-1420)=33000 in a single day.....

ROCKET CALL OF THE DAY-IndianMArketPulse

Call was given free on our blog for free  !!

So what are you waiting for

Still confused....Join Us and follow our team.

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

or FOLLOW our Blog>>

https://indianmarketpulse.blogspot.com/p/free-intraday-calls.html

MORE WILL UPDATE SOON!!

Rounding Bottom candlestick Visible in HDFC Life in......Can You see It!!

Lets see:

HDFC Life:

 

A rounding bottom candlestick pattern is clearly visible in 3 year technical chart of HDFC life.

If Important positional support of 510 is positively breached and sustained then we for consecutive session then we may see stock making new highs.

RSI of 68+ also suggest that stock may be soon entering overbought territory and we may see bull enter aggressively once mentioned resistance is sustained.

MACD of positive 1.80 also suggest that trend is positive and we may see positive trend to continue if it increases.

Immediate Support at 500--481

Immediate Resistance at  520-540

One May look foe dips to build long term position for high return potential.

Entry Zone 510--500

Stop Loss 480

Target 540+

MORE WILL UPDATE SOON!!

Asian Paints may heading for new Highs--Where to enter

Lets See:

Asian Paints:

 

Asian Paints is looking very good on charts and slowly breaching its immediate hurdles and may form new highs among volatile market.

CMP 1418

Immediate Support at 1370--1335

Immediate Resistance at 1140--1460

RSI of 60 and increasing also indicate that stock may soon enter into overbought territory and we may see more upside if mentioned resistance levels are breached successfully and sustained for upcoming consecutive session.

MACD of Positive 9.61 also indicate that a positive trend is imminent in stock and we may see it to continue.

200 DMA of 1370 could act as a positional support for going long.

Entry Zone: 1420--1140 

Stop Loss 1370 

Target 1500--1525

Use Averaging techniques to make fruitful positions for high long term return potential.

MORE WILL UPDATE SOON!!

Bajaj Finserv is looking extremely weak on charts....What to do??

Let Look at Bajaj Finserv:

 

Bajaj Finserv is looking extremely weak on charts as crucial important supports of 7770--7700 is negatively breached and not sustained and since then we have seen a negative trend to persist on the stock.

RSI of 27.31 also indicate that bears are aggressively dominating the stock as stock enters into oversold territory and one may wait to enter in stock unless a consolidation phase is seen in the stock

MACD of negative 99 and decreasing also suggest that stock is in downward trend and we may continue to see bearish trend for few weeks.

200 DMA of 6975 should act as an important support for all long position for all existing long positions as below this level we may see  more downside panic.

Immediate Support 6795--6600

Immediate Resistance 7315--7440

MORE WILL UPDATE SOON!!

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