Top 11 largecap stocks which are likely to remain in action in December series; do you own any?

At the current juncture, 10,000 put and 10,500 call options are attracting trader’s attention and will remain in a range for the index for the few sessions.

The November series started on a positive note as a lot of long positions rolled from the October expiry. The bullish momentum of the penultimate month continued in starting sessions of the November expiry and as a result, the index made a new ‘all-time high’ of 10,490.45.But, foreign institutional investors (FIIs) didn’t participate in that up move as they started taking short positions in the index futures right from the start of the series.They continued their selling momentum in the index futures throughout the first fortnight of the November series and as a result, their ‘Long Short Ratio’ (LSR) in index futures too came down from 70.40 percent (October 26) to 48.90 percent (November 16).

The Nifty50 failed to abide their selling pressure and corrected by around 400 points from its peak. Average of FIIs’ short positions in Nifty was around 10,370–10,420 and they defended that territory in the latter half of the November expiry when Nifty bounced back.

To get an exit with the profits, they didn’t give any chance to the Bulls on the expiry session and dragged the index lower below 10,250 level. At the current juncture, they exited 53 percent of their total positions in index futures on the expiry day ahead of events like RBI policy, US Federal Reserve meeting and Gujarat election; wherein shorts were more than the longs and as a result, the ‘LSR’ stood at 68.30 percent.

The November series F&O expiry ended with the loss of 1.13 percent over its previous expiry close. Rollovers in Nifty (63.28 percent) were below its quarterly average of 66.84 percent.

Also, rollovers were low in terms of open interest, indicating that the most of the positions formed in the last couple of months didn’t get carried forward to the next series.

At the current juncture, 10,000 put and 10,500 call options are attracting trader’s attention and will remain in a range for the index for the few sessions.

Rollover in BANKNIFTY (55.62 percent) was much below its quarterly average of 67.18 percent. In November series, we witnessed a good amount of open interest reduction in the banking index and as a result, open positions (Open Interest) in BankNifty are at the lowest level of the three years.

It indicates that most of the long positions, formed in the recent up move, are now out of the system. Since BankNifty is light on positions; formation of new positions will dictate the further movement of the index.

At the current juncture, strong support for the banking index is placed in the zone of 24,800-25,000 and a sustainable move below the same may not bode well for the Bulls as it will open a door for 24,000-mark.

On the flipside, 25,800-26,000 will remain a strong hurdle for the Bulls.

Stocks like Indian Bank, Biocon, Hexaware, Voltas, PC Jeweller, Jain Irrigation, Tata Power, Tata Elxsi, SRF and Dalmia Bharat added huge longs in the November series and the same got rolled to the coming month.

While in terms of stocks there were a good amount of short positions got rolled to the next series include names like Lupin, PFC, HPCL, Muthoot Finance, Vedanta, REC, Coal India, PNB, L&T Finance Holdings and Canara Bank.

Observations on Some Large-cap Counters:

Reliance Industries (RIL)

RIL started correcting right from the start of the November expiry along with a decent amount of short build-up. However, the stock rebounded in the latter half of the month; but we didn’t witness fresh buying in that.

High rollovers (88.42 percent) indicates that the shorts got rolled to the December series. Thus, the stock may remain under pressure and may even correct towards Rs860 – 850 levels. On the flipside, resistance for the stock is placed in the zone of 960 - 965.

Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.

L&T

L&T traded in a narrow range of Rs1210 – 1270 throughout the November series; wherein, we witnessed the formation of mixed positions.

Rollovers were also in line with its averages. Thus, a sustainable move beyond mentioned range will result in a directional move in coming days.

ITC

ITC continued its bearish momentum for yet another month. In last month, the stock formed a good amount of short positions and the same got rolled to the December series.

At the current juncture, the stock has a support around Rs250 mark and a sustainable move below that may drag the stock towards Rs233 – 230 levels.

Bharti Airtel

By looking at the month-on-month (MoM) data, it seems that Bharti Airtel added a good amount of short positions in the last month. But, a daily derivative activity clearly shows that the stock has formed mixed positions which are still intact in the system.

We would be vigilant on further development on derivative data front before initiating any direction trade in the counter.

Aurobindo Pharma

November series, was not good for Aurobindo Pharma as it started correcting after the first week of the November expiry. The stock added a decent amount of shorts and the same got rolled to the December series.

Currently, the stock has a support around Rs670 – 675 and a breach of the same may lead to a correction towards Rs640 levels.

Coal India

After a strong rally in the October series, Coal India started correcting from the first day of November expiry. The stock continued to add short positions along with the fall. Since rollovers (80.71%) are above its quarterly average, we may see a continuation of the bearish momentum in the counter.

HDFC

HDFC corrected from its strong resistance zone of Rs1790 – 1800 and formed fresh short positions. High rollover clearly indicates that the shorts are still intact in the system. Thus, this stock will remain a sell on rise counter for us.

HPCL

HPCL corrected sharply in the last month with huge short build-up. Rollovers (87.43%) are high than its averages and indicates that the shorts are still intact in the system. Currently, the counter has a support around 410 levels and a move below that may accelerate the correction towards 385 – 380 levels.

Maruti Suzuki India

Maruti Suzuki witnessed a rally of more than 6 percent in the last series. But, we didn’t witness any meaningful open interest build-up in the expiry gone by. Rollovers (80.84%) are low in both percentage and open interest terms. Currently, the stock is light in positions and fresh build-up will decide the further move in the counter.

Tata Steel

Tata Steel corrected by around 5 percent in the last (November) series with the rise in open interest on a month-on-month basis. If we look at the daily activities, the stock has mixed positions; wherein shorts are more than the longs. Rollovers (90.32 percent) are also on the higher side.

Yes Bank

After the sharp correction in October series, Yes Bank corrected in November series too. Short formed in last month got rolled to December series too.

At the current juncture, the stock has a strong support in the zone of 285 – 290 and any positive development around that zone may result in a decent short covering move in the counter.

MORE WILL UPDATE SOON!!

Lucky 7! Stocks which could double their EPS by FY19; do you have them on your list?

The liquidity rally has already pushed valuation of many companies near their long-term averages and any corrections could be a welcome sign for long-term investors.

Equity markets love one thing i.e. earnings. The Indian market has been hitting record highs largely on the back of flows as earnings have taken a back seat.

The S&P BSE Sensex and Nifty’s fiscal year 2018 consensus earnings per share (EPS) estimates have already been pared by 11.1 percent and 9.45 percent, respectively since the start of the fiscal year and are now at Rs 1,528.89 and Rs 494.46, said a media report.

But, things might just be turning around for some companies going by their forward EPS projections. Forward EPS is nothing but an estimate based on numbers which are projections.

Investors are more interested in knowing the forward EPS to get some indications about the future earning a potential of the company.

e have collated a list of companies which are likely to grow their earnings by double digits towards the end of FY19.

The stocks where forward EPS is higher due to an improvement in the demand scenario or fundamentals can be accumulated on dips as they look attractively valued, suggest experts.

The stocks where EPS is likely to more than double in FY19 include names like M&M Financial, Tata Motors DVR, DLF, Power Finance, Shriram Transport, Tata Motors, Bharti Airtel, and Shree Cements, according to data collated from Reuters.

Most of the stocks have under performed benchmark indices so far in the calendar year leaving aside DLF which rose over 100 percent are Shriram Transport which has already rallied 45 percent, Bharti Airtel rose 62 percent, and M&M Financial gained 63 percent in the same period.

Before coming to a conclusion that all these stocks will do well, we have to access the base impact and the trend of re-rating in valuation and prices. Basically, to understand how much of that is already factored.

Nair further added that if the outlook of these companies is likely to revive strongly, they will be able to outperform the respective index over the next one year.

The Nifty50 fell by about 2.5 percent last week which looks like we are heading for a turbulent December. If the market does see corrections, some of these stocks could turn out to be good long-term picks.

The liquidity rally has already pushed valuation of many companies near their long-term averages and any corrections could be a welcome sign for long-term investors.

Most of the companies mentioned in the list are quoting at high valuations (based on historical trends of their valuations). Hence, a lot of the positives in their stories are already being captured in their current prices.

Banks & finance companies may see lower provisioning going forward (and hence higher profits) in case the NPA resolution measures take effect soon. Telecom companies could perform if the consolidation story plays out.

Jasani further added that realty stocks could also do well (though they have already run up) as the sector undergoes gradual rerating led by macro events and policy changes.

Earnings revival possible!

The September quarter numbers i.e. Q2FY18 came as a welcome relief with earnings, topline and profits meeting expectations. The net profit growth improved to 6 percent which was negative 11 percent in Q1FY18, mainly owing to GST-led re-stocking.

The Nifty FY18/19 earnings estimates were broadly restored in Q2FY18, after 3-4 percent cuts in each of the past 3 quarters. With this, H1FY18 Nifty EPS growth is 0 percent.

While the base is supportive in second half of FY18 thanks to demonetization, the asking rate is still steep (24 percent on our estimates and 16 percent on consensus estimates). We peg our FY17/18E/19 Nifty EPS at Rs 450/500/625 , 15-17 percent earnings CAGR over next 2 years.

The September quarter results were better than most analyst estimates. The market was hoping for a PAT growth of 6 percent, 14 percent and 13 percent for Sensex, Nifty50, and BSE100 respectively on a YoY basis.

If we adjust for one-time or extraordinary cases the actual growth is about 5 percent, 10 percent, and 14 percent, respectively. That is maybe marginally lower, but is good in spite of the economic pressure. Importantly, about 45 percent of the results are above expectation while bad results are for those companies which were already under poor expectations,

Given the positive outlook by many management and also an improvement in the real economy, we are bound to engage in a better period ahead.

The impact was seen in consumer-oriented sectors like discretionary, durables, electronics and ancillaries, while uptick in infrastructure spending, reduction in interest cost, increase in commodity prices and restructuring in NPA's provided an upsurge in the horizon.

The sectors which have done well with surprises were finance, chemicals, cement, auto, infra, and metals whereas, neutral performers are FMCG and oil & gas, while the poor performers are power, telecom, pharma and IT.

MORE WILL UPDATE SOON!!

Nifty Bank Outlook for the Week (Dec 04, 2017 – Dec 08, 2017)

BANK NIFTY

   

Nifty Bank closed the week on negative note losing around 2.30%.

As we have mentioned, last week that minor support for the index lies in the zone of 25550 to 25600. Support for the index lies in the zone of 25000 to 25100 from where the index broke out of triple top pattern. If the index manages to close below these levels then the index can drift to the levels of 24500 to 24600 where break out gap for the index is lying. During the week the index manages to hit a low of 25153 and close the week around the levels of 25200.

Support for the index lies in the zone of 25000 to 25100 from where the index broke out of triple top pattern. If the index manages to close below these levels then the index can drift to the levels of 24500 to 24600 where break out gap for the index is lying.

Minor resistance for the index lies in the zone of 25400 to 25500. Resistance for the index lies in the zone of 25900 to 26000 where channel resistance for the index is lying. If the index manages to close above these levels then the index can move to the levels of 26300 to 26400.

Range for the week is seen from 24500 to 24600 on downside & 25700 to 25800 on upside.

MORE WILL UPDATE SOON!!

Nifty Outlook for the Week (Dec 04, 2017 – Dec 08, 2017)

  NIFTY 50

Nifty closed the week on negative note losing around 2.60%.

As we have mentioned last week, that minor support for the index lies in the zone of 10300 to 10320. Support for the index lies in the zone of 10200 to 10250 where break out levels for the index is lying. If the index manages to close below these levels then the index can drift to the levels of 10050 to 10150 where short term moving averages are lying. During the week the index manages to hit a low of 10109 and close the week around the levels of 10122.

Support for the index lies in the zone of 10000 to 10050 where medium term moving averages and low for the month of November-2017 are lying. If the index manages to close below these levels then the index can drift to the levels of 9650 to 9700 where 200 daily moving averages and lows for the month of August-2017 and September-2017 are lying.

Resistance for the index lies in the zone of 10200 to 10300 where short term moving averages and break down levels are lying. If the index manages to close above these levels then the index can move to the levels of 10480 to 10520 where trend-line joining highs formed in the month of September-2016 and August-2017 is lying.

Broad range for the week is seen from 9700 on downside & 10400 on upside.

MORE WILL UPDATE SOON!!

Dow Jones 30 and NASDAQ 100 Price Forecast for the Week of December 4, 2017, Technical Analysis

With volatility peaking on Friday, we still saw the buyers come back into the marketplace, showing just how strong US stock markets are.

Dow Jones 30

The Dow Jones 30 broke out during the week, breaking above the 24,000 level again. By closing towards the top of the candle, it looks as if we are ready to continue the bullish run higher, and currently, it looks as if the 23,500 level is a bit of a floor. Obviously, algorithmic traders come in and pick up every short-term pullback, and I think that there is plenty of support at various levels underneath, so given enough time I think that the market will eventually go looking towards the 25,000 level, which is the next major round number. Expect the “Santa Claus rally” to come in full effect, but we do have a lot of volatility due to the General Flynn announcement during the Friday session that he was willing to testify against the White House.

NASDAQ 100

The NASDAQ 100 got absolutely pummeled at one point during the week but turned around to form a nice-looking hammer. The hammer is pressing against the 6400 level, and it looks very likely that we are going to see this market go looking towards the 6500 level given enough time. Pullbacks remained buying opportunities as algorithmic traders jump into the marketplace, and continue to drive to the upside. I think that the 6000 level underneath is the “bottom or floor” of the overall trend. This is a market that continues to be very noisy, but quite frankly it’s likely that the algorithms will continue to pick up any time we see value as robots has taken over Wall Street trading. Keep your position size very small, if nothing else to protect your account.

MORE WILL UPDATE SOON!!

S&P 500 Price Forecast December 4, 2017, Technical Analysis

The S&P 500 showed massive amounts of volatility during the trading session on Friday, and that truly showed itself as General Flynn decided to flip state’s evidence.

The S&P 500 was very volatile during the Friday trading session, and as you look at the hourly chart, you can see that the volatility has extended in both directions, and was getting worse by the end of the day. The massive negative candle formed on the hourly chart was due to General Flynn suggesting that he was willing to testify against the White House, and that sent the markets into a bit of a shock. However, we turned around and gained back most of those losses, and by the end of the day Friday it looks like we are very bullish again. A break above the 2650 level should send this market to the upside, perhaps looking towards the 2700 level. The 2600 level underneath should be massively supportive, and I believe that the market will continue to have a lot of a “buy on the dips” type of mentality. The algorithmic traders continue to take advantage of these pullbacks, as we have not had a proper pullback in ages. Any time we see the market pull back the way it has during the day on Friday, it seems like the buyers are willing to jump in. Friday was no different as you can see.

I believe that the 2600 level underneath should be thought of as a bit of a “floor” in the market, and I think that the general attitude of the market is very bullish, and a break above the 2650 level is possible, even on Monday. However, over the weekend we have a lot of potential for headlines coming out of the news that will cause this market to move quickly, be it up or down.

MORE WILL UPDATE SOON!!

Weekly Investment Stock Pick- Sunflag Iron & Steel Company.

Today we have picked our weekly investment pick from a steel sector namely Sunflag iron and steel company.Steel sector has been buzzing for  long time an d to meet the investment demand of our invsetors we have come up with this stock as an long term mutltibagger potential pick.Stock is relatively a low beta stock and investors may not be affected by volatile movements.

Sunflag Iron & Steel Company

  

On carefully looking at  the charts stock is trading near  52-week high high and has shown stable consolidation moves even in the recent turmoil markets.If one look carefully a bullish pennant candlestick pattern may form if breakout at 85--90 is met with high increase of volumes.

 Stock is currently trading around 78 and has immediate support around 68--64 levels and one may wait for these level to enter for long term view.Stock has immediate resistance around 85--90 and  if these resistance are successfully breached and sustained then we make see stock making new life time high.

RSI of 53 and increasing also suggest that stock may be entering overbought zone soon which will be accompanied by rise in volumes to push the stock for a a strong upward trend as market improves.

MACD of positive divergence of 0.14 also suggest that a strong upside momentum may be just around the corner.

Fundamentals of stock

Market Cap:1423.73 crore

EPS:3.62

Face Value 10

P/E:21.83

Qualified Foreign Investor:0.29

About Company

Sunflag Iron and Steel Co. Ltd. is a prestigious unit of the SUN FLAG GROUP. The plant is located in the central part of India at Bhandara, Maharashtra & it is 70 Kms from Nagpur. The plant has a capacity to produce 360,000 tonnes per annum of high quality special steel using liquid pig iron and sponge iron as basic inputs.

The main processes at the plant are,

– Iron making (Mini Blast Furnace, Sponge Iron Plant, Sinter plant).

– Steel Making

– Continuous Casting

– Rolling Mills

– Heat Treatments

– Bright Bar Making

– Inspection

– Quality Assurance

The profiles are Round Bars, Round Cornered Square, Round & Hexagonal wire Rods, Hexagonal straight bars, Flats, Bright Bars (Peeled/Drawn/Ground bars) etc.

The Steel is produced using 100% Iron ore as a basic raw material input. No scrap is sourced from outside.

The steel has very low tramp element contents & free from Radioactive or other harmful & hazardous contamination.

Within a short period of its inception in 1989, the SUNFLAG STEEL has established itself as a major global force. Started as a Spring Steel producer, the company today produces variety of steels. Carbon Steels, Alloy steels, Free & semi free cutting steels, Micro-alloyed steels, Stainless Steels, Spring Steels, Valve Steels, Bearing Steels, Cold Heading Quality Steels, Tool Steels, etc.

Sunflag Steel produces majority of the Steel for Automobile use in Engine, Drives, Transmissions, Suspensions etc. applications. Sunflag Steel also supplies steel to Indian Railways, Ordnance Factories, General Engineering & Power sectors.

Sunflag Iron & Steel Co. Ltd. has a collaboration with Daido Steel Co. Ltd., Japan from 2010. The association is useful for process & Quality enhancements, New Grade Developments, Localization of Indian Steel by the Automobile companies, Continual Improvements, etc.

Apart from catering to the Domestic steel requirements, Sunflag Steel also exports to South East, Middle East, European countries, United States etc.

Sunflag Steel is ISO 9001, TS 16949, ISO 14001 , OHSAS 18001, AD-2000-Merkblatt WO certified & ISO/IEC 17025 approved Testing laboratories by NABL.

Sunflag is Actively engaged in Pollution Control and accrediated by EMS Award.

Conclsuion

Immediate Resistance 85--90

Immediate Support 70--68

Buy Zone:78--70

Target 120--150+ In three months

MORE WILL UPDATE SOON!!

Which Stocks to buy for safe returns in Bears Vs Bulls Market?

 

Symphony: BUY| CMP Rs1632| Target Rs1920| Stop Loss Rs1490| Return 18%| Time Frame 6 month

The share price of Symphony remains in a long-term structural uptrend as defined by the rising peaks and troughs on the long-term price charts.

The recent price action has resulted in a breakout from the major consolidation of over two years thereby signalling the resumption of a primary uptrend and provides fresh entry opportunity to ride the next up move over the medium term.

The entire secondary consolidation phase since the life-time high of Rs1637 in April 2015 till date represents a bullish Cup & Handle formation as highlighted in the adjoining weekly chart.

A cup and handle formation is a bullish continuation pattern, which marks a secondary corrective phase within the larger degree uptrend.

The strong up move in the current week has led the share price above the neckline of the bullish cup and handle pattern around Rs1550, thereby, signalling the end of the long-term consolidation phase and implies resumption of the primary uptrend.

Based on aforementioned technical observations, we believe the stock is likely to test levels of 1925 being the minimum measuring implication of the bullish cup and handle pattern i.e. the width of the handle (1570-1215=355 points) as projected from the breakout point of Rs1550 provides upsides towards 1925 over a medium-term horizon

GlaxoSmithKline Consumer: BUY| CMP Rs6109| Target Rs6700 | Stop Loss Rs5780| Return 10%| Time Frame 6 months

The share price of GlaxoSmithKline Consumer remains in a structural uptrend as it continues to stride northward in a rising peaks and troughs manner. Currently, the stock is seen emerging out of a two-year-long corrective phase that forms part of the larger degree uptrend.

We believe the stock is set to embark upon its next major up move, going forward. Therefore, it provides a good buying opportunity for medium-term investors

The stock entered into a secondary corrective phase after hitting a lifetime high of Rs6800 in December 2015. The price wise correction halted precisely near the key value area of Rs4900 being the 61.8% Fibonacci retracement of the 2013-15 rally (Rs3800 to Rs6800).

The stock witnessed a steady base formation around Rs4850-4900 region towards the end of 2016 before gradually rising to a high of Rs5780 by August 2017. The ensuing correction saw the share price once again revisit the value area of Rs4850-4900 in September 2017.

The two identical lows formed in December 2016 and September 2017 represent a bullish Double Bottom formation highlighting strong demand at the key value area.

We believe the stock has concluded a healthy corrective phase and is set to embark upon its next up move going forward. We expect the stock to head towards our target of Rs6700 in the medium term as it is the measuring implication of the Double Bottom pattern i.e. the neckline and base of the pattern (5780-4850=930 points) added to the breakout point of Rs5780 projects upside towards Rs6700.

South Indian Bank: BUY| CMP Rs33.00| Target Rs38| Stop Loss Rs30| Return 15%| Time Frame 3 months

South Indian bank has been in a steady uptrend in the CY 2017 characterized by sharp rallies and shallow corrections signalling positive price structure.

The stock on Wednesday’s session registered a resolute breakout above a falling trendline joining the highs 25th October 2017 (Rs33.25) and 21st November 2017 (Rs32.15) signalling a resumption of up move after last two months consolidation.

The breakout from the trendline resistance was accompanied by a strong volume of almost double of the 200 days average volume of 1.6 crores signalling larger participation in the direction of the trend.

We expect the stock to rally towards 38.00 in the coming months being the 138.2% price extension of the previous up move from Rs27.40 to Rs33.25 as projected from the recent trough of Rs29.70 signals upside towards 38.00 in the short term.

OTHER NOTABLE PICKS:

There is lot of action around specialty Chemicals. Porinju recently picked up stake in Ashapura Minechem. The firm has purchased 7.42 lakh shares (representing 0.85 percent of total paid-up equity) of the company via an open market transaction on November 16.

Equity Intelligence's shareholding in the company increased to 5.35 percent from 4.5 percent earlier. Ashapura Minechem has niche products with revenue of over Rs 1,000 crore. However, it might not be a good buy at current levels after a brief rally that we saw soon after Porinju picked up stake.

Tata Coffee and Tata Global Beverages

Both Tata Coffee and Tata Global Beverages are my important picks and Tata Global is the leader in the country. The consumption story will always click on D-Street. The stock doubled in the last five months.

Future Group companies: Most of the future group companies have done extremely well. Most of them have given about 200 percent return in the year 2017.

Infrastructure sector

If we look at the next 5-10 years infrastructure is one sector which is likely to get a big boost. The market cap of all the companies in the sector it comes to be around dew billion dollars which is too small. This market cap could be 5x-10x from current levels – could be a function of new companies entering the sector.

Logistics

Logistics sector has a long way to go. The market cap of India’s logistics sector is too small.

UFO Moviez India

In the media space, Porinju likes UFO Moviez. Recently, they have decided to merge with Chennai-based Qube Cinema Technologies to solidify its position in the digital cinema distribution and in-cinema advertising spaces.

The business could give about Rs1000 crore turnover and the market cap is 1x revenue. It is a very niche business with the potential to improve further. It is a good stock, but investors need not have to go and buy today.

MORE WILL UPDATE SOON!!

Crucial support for Nifty at 10094; 4 top stocks to buy or sell for handsome returns:

According to Technical Analysis , looks like the Nifty is trying to test the 10094 mark. The crucial support for the index is at 10094 and the resistance is at 10260-10300. Bank Nifty has support at 25000-25100 and resistance at 26600.The Nifty 50 started on a weak note on Thursday and succumbed under selling pressure after fiscal deficit at the end of October hit 96.1 percent of the Budget estimate for 2017- 18.

The Nifty 50 opened at 10,332 which also became the intraday high level. The index slipped near its crucial support level placed around 10,200 and hit its intraday low of 10,211. It closed 134 points lower at 10,226.55.

India VIX moved up by 3.75 percent at 13.55. Rising volatility has again given the grip in hand of bears which could pose a short-term concern for long positions.

The Nifty 50 futures on the Singapore Stock Exchange were trading 2 points higher at 10280 indicating a flat opening for the domestic market.

Two broad factors could turn out to be big wealth creators for investors; a) companies with old-style managements turning professional, and b) underestimation of long-term impact of reforms.

The smallcap czar further added the structural migration of the economy from black to white is tremendous. India, in terms of economy, is like a midcap when compared with the rest of the world, and in terms of per capita income as also the market cap, India falls in the smallcap category.

However, with India moving toward equal opportunity for every Indian, it will not remain a smallcap in terms of economy. We will go to midcap and then largecap.

Below are the stocks which are good trades today:

Jain Irrigation Systems: Indicator Buy | Rating: Buy | Target: Rs 128, stop loss: Rs 116

Nestle India: Base Formation | Rating: Buy | Target: Rs 7875, stop loss: Rs 7575

Tata Steel: Exhaustion | Rating: Sell | Target: Rs 675, stop loss: Rs 705

Yes Bank: Indicator Sell | Rating: Sell | Target: Rs 298, stop loss: Rs 310

MORE WILL UPDATE SOON!!

Market taking a breather, 9700 on Nifty key; see FY19 earnings at 18-20%

   

FY19 earnings could be anywhere between 18-20 percent and if those come through, then one could see selective opportunities in financials, consumer discretionary, autos etc.

The week gone by very difficult for bulls and the market was decisively down at the end of the week. It was a 2.6 percent cut for the week. Financials were the worst hit. Moreover, the market did not participate in the global run.

So to analyse the week gone by and what to expect from the market going forward,However, going forward in the coming months as people get confidence that recovery is building on itself, there are earnings upgrades, the market may take its next leg up in the first quarter of next year.

As people get more confidence on earnings recovery, there will be more allocation from foreigners towards emerging markets including India. Retail investors have also been increasing their allocation to domestic equities.

 FY19 earnings could be anywhere between 18-20 percent and if those come through, then one could see selective opportunities in financials, consumer discretionary, autos etc.

Gujral clearly believes the 10,100 on Nifty is just a formality and even if Nifty bounces, it will be a shallow one, so one should short it. 9700 on Nifty is the 200 day moving average and that becomes the port of call.

The Nifty Bank also looks vulnerable because it is sitting on a bigger rally and bigger out performance. Moreover, the negative news is also relative to financials and fiscal deficit etc. If Nifty gets to 9700, the Bank Nifty will be likely close to 24,000.

However, if people are still looking at buying opportunities when the market falls, then Rupa is a buy with a stop of Rs 470 and target of Rs 510. Jubiliant Life has also bottomed out, so it is a buy with stop of Rs 680 and target of Rs 715.

MORE WILL UPDATE SOON!!