Market Week Ahead: Gujarat polls, Fed meet among 10 things to keep investors busy

If the BJP wins by a big margin then the market could rally or hit fresh record highs, but if it scrapes through then there could be correction in the short term which would be a good buying opportunity.

 

Sharp recovery in last two sessions helped the market gain more than 1 percent in the passing week, ahead of the first phase of Gujarat elections on Saturday. The rally was backed by a latest survey which said that BJP is likely to win the Gujarat elections and positive global cues post Brexit deal. At the start of the week, the market was concerned after ABP-CSDS's opinion poll said that there could be tough fight between BJP and Congress.

The two-day rally indicates that the market may have digested BJP victory in Gujarat, but has not priced in a landslide victory, experts suggest.

According to them, there could be some more upside, but as we move closer to exit polls (after second phase voting on December 14) and the outcome of Gujarat elections on December 18, the volatility is likely to increase.

Majority of experts feel the BJP is likely to win Gujarat elections but the Congress may manage to get some voting share of BJP due to demonetisation and GST concerns.

If the BJP wins by a big margin then the market could rally or hit fresh record highs, but if it scrapes through then there could be correction in the short term which would be a good buying opportunity, experts said.

The market rallied 23 percent in 2017 as it, so far, has been hopeful that BJP is likely to win general elections 2019 and as result of which there will be consistency in economic policies and reforms.

"We feel other factors will take a back seat now as all eyes are on Gujarat election. The recent opinion polls indicate the ruling party, BJP, will retain the state, but may see loss of vote share," Jayant Manglik President Retail Sales Religare Securities said.

Hence, all focus in the coming week would be on Gujarat elections, though there are other important factors like Federal Reserve rate decision, CPI inflation and factory data due to be announced.

Manglik suggests keeping leveraged positions hedged, considering the possibility of volatile swings ahead. Nifty has next hurdle at 10,350, he said.

Mustafa Nadeem, CEO, Epic Research said as derivatives data suggested earlier as well the range for Nifty may continue to be larger as active strikes were at 10,100 to 10,500.

He expects the range in the coming week to be further squeezed to 10,150 to 10,400. A lot of action will depend on voting percentage in state and polls that may further give much decisive direction to the market, he said.

Here are 10 things that will keep investors busy next week:-

Gujarat Elections

Gujarat elections are very important for BJP being a ruling party in the state for more than two decades and Narendra Modi who had been chief minister before becoming the Prime Minister of the India.

The voting for first phase (for 89 seats of Saurashtra and south Gujarat) began in Gujarat on December 9 and the second phase (for 93 seats of north and central Gujarat) will take place on December 14. The results of polls will be announced on December 18.

All state elections lined up before Loksabha elections 2019 are very important for Modi government.

Federal Reserve Meet

The Federal Reserve is scheduled to meet next week (December 12-13). Analysts largely expect the central bank to raise interest rates by 25 basis points on Wednesday, for third time in current year. Short-term interest rate is currently at 1-1.25 percent.

Macro Data

In the coming week, we have few crucial numbers - November CPI & October industrial output data on December 12 and WPI inflation on December 14 - which were acting as breathing space for RBI to continue to maintain status quo.

"India's Industrial production which was at 3.8 percent, is crucial to watch as the revival seen in numbers need to be maintained or it was a one-off event. CPI inflation which was at 3.59 percent, highest in last few month but around comfortable levels will also be eyed," Mustafa Nadeem, CEO, Epic Research said.

Apart from that, balance of trade data will be released on Monday, current account on Tuesday and foreign exchange reserves for the week ended December 8 on Friday.

India's foreign exchange reserves increased by USD 1.2 billion to touch USD 401.94 billion in the week to December 1, according to the RBI data.

IPO and Listing

Hospital operator Shalby will debut on Friday, after its issue was oversubscribed 2.82 times on December 7.

The Rs 70-crore initial public offer of Astron Paper & Board Mill will open for subscription on Friday and close on December 19, with a price band of Rs 45-50 per share.

Technical Outlook

The 50-share NSE Nifty formed a solid bull candle for the second consecutive day in a row on Friday. With the 221 points rally in two straight sessions, the index is now trading above its crucial short-term moving averages and is on track to hit 10,350 levels as long as it trades above 10,121, experts feel.

"The sharp upside bounce in Nifty could be cheering factor for bulls to make a comeback and this upside momentum is likely to continue for next week," Nagaraj Shetti, Technical Research Analyst, HDFC securities said.

The overall chart pattern is indicating a possibility of further upside potential up to 10350-75 levels by next week and there is a possibility of near term downward correction from the highs, he added.

Chandan Taparia, Derivatives, and Technical Analyst at Motilal Oswal Securities said, "The Nifty formed a Bullish Candle on the Daily chart. It managed to surpass its 50 DEMA and covered its half of the losses made in a previous week. It has to continue to hold above 10,178 to extend its move towards 10,350-10,400 zones while on the downside support exists at 10,150 then 10,094 mark."

FIIs and DIIs

FIIs and DIIs data will be of a crucial importance to watch out for in the coming week, especially before and after the outcome of Gujarat elections (December 18).

Foreign institutional investors were net sellers in four out of five sessions last week as they sold Rs 4,161 crore worth of shares but they were net buyers to the tune of Rs 19,180 crore worth of shares in November.

Domestic institutional investors have been net buyers since April 2017. In current month, they bought nearly Rs 5,200 crore worth of shares, following Rs 9,200 crore worth of buying in November.

Stocks in Focus

On Monday, Unitech may continue to lock at upper circuit after The National Company Law Tribunal on Friday allowed the government to appoint 10 nominee directors.

Hexaware may react positively after a media report indicated that Baring Asia is looking to sell 10-15 percent stake in company through block deals.

Axis Bank will be in focus as the bank received approval from shareholders to raise Rs 11,626 crore by selling a stake marquee investors.

IL&FS Engineering Services stock is likely to open higher on Monday on winning pipeline laying contract worth Rs 216 crore.

Small steel companies will be in focus after CNBC-TV18 reports quoting Cogencis that Steel Minister will consider iron ore price cap.

Max India may react negatively after Delhi Health Minister cancelled license of Max Hospital at Shalimar Bagh.

Global Cues

Global cues are likely to help the Sensex open on a positive note on coming Monday. Stronger-than-expected jobs report pushed Wall Street to record close.

Crude oil price movement will be closely watched as Brent crude futures have been trading in a range of USD 61-65 a barrel after it crossed the USD 60-mark. On Friday, it settled at USD 63.40 a barrel on Chinese crude demand and threats of a strike in Africa's largest oil exporter.

Apart from FOMC's rate decision on Wednesday, Bank of England and European Central Bank's monetary policy meeting will be held on Thursday. Analysts don't expect any change in interest rates from both central banks but the commentary would be keenly watched.

On the economic data front, Japan's producer price index (PPI) data for November will be released on Tuesday, core machinery orders for October on Wednesday and manufacturing PMI on Thursday.

In the US, November PPI data will be announced on Tuesday, CPI on Wednesday, manufacturing and services PMI on Thursday and November industrial & manufacturing production on Friday.

Europe's October industrial production data will be released on Wednesday and China's November industrial production on Thursday.

Some of the key economic data releases includes inflation data from the UK (CPI) and US (CPI and PPI), retail sales numbers from the US and UK, and jobs data from the UK and Australia.

MORE WILL UPDATE SOON!!

These top 4 stocks could give up to 61% return in 9-12 months

The Sensex ended at 33,250.30, rising 1.27 percent over previous week while the Nifty ended with a gain of 1.42 percent at 10,265.65 in the week gone by.

         

he benchmark indices bounced back in last two trading sessions to close the week with a gain of over 1 percent on hopes that BJP may win Gujarat elections.

The Sensex ended at 33,250.30, rising 1.27 percent over previous week while the Nifty ended with a gain of 1.42 percent at 10,265.65 in the week gone by.

Havells India | Rating: Upgrade to Buy | Target: 590 | Upside: 16 percent

The recent acquisition of Lloyd gives the company a strong foothold in the fast growing durables segment. The company's aim is to double revenue in the next three years through new product launches, expansion of existing product portfolio and increased channel penetration

The firm expects the sales growth of the company to accelerate, led by lighting, consumer durables, and Lloyd Electric and market share gains in cables/wires and switches.

The company is likely to report 21 percent EPS CAGR over FY17-20, with EBITDA margin expanding 40bp to 13.8 percent.

Granules India | Rating: Buy | Target: 200 | Upside: 61 percent

GRAN-Omnichem is a joint venture between the company and Ajinomoto’s subsidiary, Omnichem. But sales growth from the JV business will be impacted in the near term due to deferral of sales by a key client, though the company maintains its medium-term revenue growth guidance (of 20-25% CAGR) from Omnichem JV.

The company is planning to file approximately 25 ANDAs in the US till FY19. Of these, 12-15 complex ANDAs will be filed from its US-based Virginia facility and rest from India facility located in Gagilapur.

We firm believes that the stock has the potential to deliver more than 50 percent return in 12-18 months on the back of multiple re-rating and strong PAT CAGR of 27 percent till FY20E.

IOC | Rating: Buy | Target: 541 | Upside: 39 percent

Paradip complex, with its upcoming projects, would be a key earnings driver for the company, going forward.

The refinery is expected to produce 27% petrol, in addition to 42% diesel, 5% ATF and 8.6% petcoke.

Polypropylene with 2x340ktpa capacity is expected to be commissioned by December 2018 at a cost of Rs 35 billion. This would be even more profitable than the conventional projects due to the Indmax technology.

Among the OMCs, IOC has the most diversified EBITDA profile, with one-third coming from refining and marketing each, and the rest divided between petrochem and pipeline.

Colgate Palmolive | Rating: Buy | Target: 1355 | Upside: 30 percent

With the launch of Colgate Swarna Ved Shakti, along with a bevy of products likely to be rolled out over the next few years under this brand, the company can emerge as a strong play in the herbal/natural/ayurvedic sub-segment.

Colgate is an attractive play on a rural recovery and as the government schemes are falling in place and monsoon has been near normal, which is likely to lead to a sharp revival in earnings growth off a low base FY19 onward.

With the General Elections likely to be held in 2019, there is a strong possibility of the government coming up with more schemes to support rural demand in 2018.

MORE WILL UPDATE SOON!!

S&P 500 Price Forecast December 7, 2017, Technical Analysis

The S&P 500 had a choppy session on Wednesday, testing the 2620 handle, but then bouncing to show signs of life again.

  

The S&P 500 initially fell during the trading session on Wednesday, but found enough support at the 2620 handle again to rally, suggesting that we are going to continue to be very choppy but algorithmic traders seem to be hell-bent on lifting the market. I think eventually we will go looking towards the 2650 handle above, which has been massive resistance. I think pullbacks are helpful in this market though, because we are bit overextended anyway, and I believe that the 2600 level underneath should continue to be massively important for the uptrend. In fact, it’s a bit of a “floor” from what I can see.

If we break down below the 2600 level, then I think the market probably goes down to the 2550 level after that. In general though, I believe that easy money and corporate profits continue to favor the S&P 500 going higher. I think that longer-term, the markets probably go looking towards the 2700 level, but these pullbacks are necessary to build up enough momentum as we had rallied far too far into short of an area. For me, I believe that this market is probably best traded in the options market if you have that ability, perhaps selling premium. However, CFD markets work as well, as you can use small positions to bet on the upside as we see plenty of interest in this market every time it dips. The algorithmic traders have been a major driver of the S&P 500, and even though we are a bit overstretched, at this point it looks as if selling pressure simply cannot last for very long.

MORE WILL UPDATE SOON!!

Technical Analysis-Aries Agro

ARIES AGRO

  

Aries Agro is looking good in charts a and seems to have corrected itself from the strong upward trend where it made life time highs of 290 and now looking to enter consolidation phase trading around 225 where an fruitful position can be made for long term potential high return where in these level averaging can be done easily to make a sustaining position.
in stock.

RSI of 48.42 and gradually increasing shows that we may see some consolidation before stock enters in a strong upward trend as it enter overbought zone of 60+ .This is presenting a case to build position and averaging the same accordingly to get good short term result.

MACD of -ve 2.02 and improving can be seen as an anticipation a positive crossover as consolidation mode will enter upward move.

It is also placed well on Ichimoku charts and if 9-day conversion base line of 229 is positively breached and sustained for consecutive sessions then one may see some more sharp upside move.

Immediate Support  215

Crucial Support 205--195

Immediate Resistance (236--240)

Upper Resistance 260

Target 290+

MORE WILL UPDATE SOON!!

Do you know? These 7 stocks gave double digit return in 4 out of 5 years in December

Stocks on the lucky 7 list include names like Alankit, Chowgule Steam, HBL Power System, 3i Infotech, Bartronics India, Vikas Ecotech, and Mahamaya Steel.

 

The S&P BSE Sensex which hit record highs earlier in the year 2017 lost some momentum towards the closing of the year weighed down by both local as well as global factors. But, there are plenty of stocks which have hit double-digit returns in at least 4 out of 5 years.

If not the whole market Santa Claus rally is seen in 7 stocks on the BSE which have given double-digit returns of up to 54 percent in the last 4 out of 5 years, according to data from Capitaline showed.

Most of the stocks belong to the small and midcap segment but a consistency of returns on year-on-year period makes them stand out. The year 2016 was a washout year as benchmark indices closed on a flat note; hence not many stocks gave stellar returns.

Stocks on the lucky 7 list include names like Alankit, Chowgule Steam, HBL Power Systems, 3i Infotech, Bartronics India, Vikas Ecotech, and Mahamaya Steel.

Topping the charts is Alankit which has given double-digit returns in all the five years along with Chowgule Steamships Ltd. Alankit Ltd is the flagship company of Alankit Group which is a leading e-Governance service provider in India.

Major services offered by the company is TIN Facilitation Center and PAN Center, authorized person for National Insurance, UID enrolment (Aadhaar), Aadhaar Seeding, Printing of PVC Aadhaar card etc. among others.

Other companies on the list include 3i Infotech which is a global information technology company committed to empowering business transformation. The company also provides solutions for other verticals such as Government, Manufacturing, Retail, Distribution, Telecom, and Healthcare.

HBL Power Systems Ltd which is in business since 1977 gave up to 31 percent return in the month of December alone in 4 out of 5 years. Their expertise are in batteries generated opportunities.

The first products selected and successfully developed were Aircraft batteries - eventually leading to HBL offering the world’s widest range of specialized batteries.

Bartronics is engaged is engaged in the business of Bar Coding and Smart Card technology, the company made a foray into the field of Automatic Identification & Data Capture (AIDC) solutions.

Vikas Ecotech which has given up to 40 percent return in the last 4 out of 5 years is an emerging player in the global arena of the high end specialty chemicals players.

Mahamaya Steel deals with the manufacturing steel structures in the shape of Angles, Beams, Joist, Channels, Rounds, Flats, Railway sleepers etc. It has high capacity structural rolling mills with full-fledged supportive SMS.

Mahamaya is one of the few in the country who manufactures 600 MM joist and 250 MM angles, and the turnover of the group is close to Rs1000 crore. The stock gave up to 30 percent return in last 4 out of 5 years in the month of December.

December challenges:

Unlike the rest of 2017, the month of December might be tough on bulls. The S&P BSE Sensex which climbed Mount 33K is now trading around 32,700 levels.

Benchmark indices climbed to record highs in the month of November but since then the trend shifted downwards.

It looks like market participants prefer to be on the sidelines ahead of key events such as US Federal Reserve policy meet and back home, the outcome of state election results. However, analysts advise investors to buy stocks on dips whenever possible as the structural bull market is still intact.

Nilesh Shah, MD, and CEO of Envision Capital sees a shallow correction for the Street. “It looks like there could be 4-5 percent correction ahead. That is how markets have behaved and it is unlikely to move in some other way. This could be year-end profit booking,” Shah told CNBC-TV18 in an interview.

Will political outcomes from state and general elections ahead make any impact on the market ahead? Shah said he won’t be surprised if political debate takes over the market between 2018 and 2019.

Frontline indices are going through a corrective phase, with the Nifty shedding around 300-350 odd points from record highs.

While some investors could raise concerns over it, but market veterans such as Madhusudan Kela see this time as a positive thing.

“There are plenty opportunities which are there in the markets, both in midcaps and large-caps. Corrections like these give investors to capture the opportunity,”Kela told CNBC-TV18 in an interview.

Further, he said that such a correction was long overdue as there has not been one since Nifty’s levels of around 7,800.

Speaking on the impact of upcoming Gujarat elections, Kela believes that if the verdict goes, either way, a meaningful correction is unlikely.

MORE WILL UPDATE SOON!!

Trade setup for Thursday: Top 10 things you should know before Opening Bell

Both MACD as well as Supertrend indicators are in ‘sell’ mode and if Nifty breaks below 10,030 then decline towards 9,850 is possible, suggest experts.

 

The Nifty, which was reeling under pressure, extended the decline soon after the Reserve Bank of India (RBI) kept its key lending rate — the repo rate— unchanged at 6 percent on Wednesday, but warned about lurking inflation worries in the New Year.

The index formed a bearish candle on Wednesday and breached its 100-day simple moving average placed at 10,071. The index took support at its 100-days exponential moving average placed around 10,038 which also forms a crucial support in days to come.

Formation of a bearish candle after a Doji pattern clearly gives an advantage to the bears but a small technical bounce back could be on the cards as Indian markets are trading near key support levels after seven straight sessions of bearish candles.

Both MACD as well as Supertrend indicators are in ‘sell’ mode and if Nifty breaks below 10,030 then decline towards 9,850 is possible.

The Nifty opened at 10,088 and rose to an intraday high of 10,104 but then bears took control of the index and pushed the index below 1oo-SMA to touch its intraday low of 10,033. Nifty finally closed 74 points lower at 10,044.

“The Nifty continued its slide before registering a bearish candle as selling got accelerated especially after RBI policy meets.

The Nifty breached its crucial 100-days moving average after two months as selling pressure weighed on investor sentiments after RBI maintained the status quo.

The Nifty continued the selling spree for the seventh consecutive session in a row. The index also closed below 10,100 which was being sustained in last three days.

“Initial supports which were last hope for bulls placed at 10,100-10,090 levels has also been breached coupled with 10,071 which was 100 Days SMA. In a continuous downward trend, we are seeing selling pressure on any marginal bounce and is being aggressively utilized by bulls.

“In the short-term, a bounce towards 10,200 - 10,180 is being observed as resistance while support may be seen at 9,980 - 9,950. Technically price structure also suggests a bearish sentiment is prevailing with a recent low around 10030 being a lower bottom.

Mustafa further added that a breach of previous swing low which was formed in November around 10,100 may also act as a resistance.

We have collated the top ten data points to help you spot profitable trade:

Key Support & Resistance Level for Nifty

The Nifty closed at 10,044.1 on Wednesday. According to Pivot charts, the key support level is placed at 10,016.87, followed by 9,989.63. If the index starts to move higher, key resistance levels to watch out are 10,087.77 and 10,131.43.

Nifty Bank

The Nifty Bank closed at 24,851.8. Important Pivot level, which will act as crucial support for the index, is placed at 24,751.13, followed by 24,650.46. On the upside, key resistance levels are 25,014.93, followed by 25,178.07.

Call Options Data

Maximum Call open interest (OI) of 67.36 lakh contracts stands at strike price 10,500, which will act as a crucial resistance level for the index in the December series, followed by 10,400, which now holds 53.23 lakh contracts in open interest, and 10,300, which has accumulated 50.44 lakh contracts in OI.

Call writing was seen at strike prices of 10,100 (8.55 lakh contracts were added), followed by 10,200 (7.93 lakh contracts added), and 10,400 which added 7.13 lakh contracts.

Call unwinding was seen at strike price 10,000, which shed 0.81 lakh contracts.

Put Options Data

Maximum Put OI of 83.49 lakh contracts was seen at strike price 10,000, which will act as a crucial base for the index in December series, followed by 9,800, which now holds 50.35 lakh contracts and 10,100 which has now accumulated 37.87 lakh contracts in open interest.

Put writing was seen at strike prices 9,800 (5.30 lakh contracts added) and 10,000, which saw the addition of 3.06 lakh contracts and 10,100, which saw the addition of 2. 74 lakh contracts.

Meanwhile, Put Unwinding seen at the strike price of 10,200, which saw shedding of 2.05 lakh contracts, followed by 10,400, which saw 1.24 lakh contracts.

FII & DII Data

Foreign institutional investors (FIIs) sold shares worth Rs 1,217.92 crore, while domestic institutional investors bought shares worth Rs 995.11 crore in the Indian equity market.

Stocks with high delivery percentage

High delivery percentage suggests that investors are accepting the delivery of the stock, which means that investors are bullish on the stock.

MORE WILL UPDATE SOON!!

Dow Jones 30 and NASDAQ 100 Price Forecast December 6, 2017, Technical Analysis

With the volatility comes pullbacks, and these pullbacks look as if they are offering value for the astute trader, and of course algorithmic black box systems.

Dow Jones 30

The Dow Jones 30 has fallen a bit during the trading session on Tuesday, reaching towards the 24,200 level. I believe that the market should continue to go much higher. Ultimately, I think that the 25,000 level will be targeted, but in the meantime the initial target will be the 24,500 level after that. Currently, I look at the 24,000 level below as the “floor” in the market, and therefore I like buying these dips as it appears Wall Street is ready to do the same. The so-called “Santa Claus rally” is likely to happen, so therefore as money managers try to pad their funds with stocks, to show signs of progress for the year. That provides a little bit of a bullish attitude in the month of December.

NASDAQ 100

The NASDAQ 100 has been out of control lately, as we continue to see so much in the way of negativity, and then bounced rather radically from the 6225 level. It looks as if we are going to try to fill the gap from a couple of days ago again, meaning that the markets going to find support near the 6370 level. The stochastic oscillator is looking very likely to cross over in the overbought range, so therefore I think that it’s a matter of time before you pull back. The volatility the NASDAQ 100 has been very difficult to deal with, and I think that it is easier to play the Dow Jones 30 to the upside, or perhaps even the S&P 500. Tech stocks continue to look very volatile around the world, and the NASDAQ 100 isn’t any different.

MORE WILL UPDATE SOON!!

S&P 500 Price Forecast December 6, 2017, Technical Analysis

The S&P 500 had a slightly positive session on Tuesday, as we continue to dance around the 2650 level. The uptrend seems to be very much intact.

The S&P 500 rallied during the trading session on Tuesday, reaching towards the 2650 level again. We had fallen on Monday to fill the gap, and now it appears that the gap is going to hold as support for the longer-term move. Because of this, a break above the 2650 level should send fresh money into the marketplace, looking for a breakout to the upside yet again. At this time of year, you quite often get the “Santa Claus rally”, which is simply larger money managers trying to buy stocks to show clients that they are in fact invested in something. Managers that have not done well this year will be chasing returns frantically, to get the right amount of return for their clients to keep the business going.

We have algorithmic trading that is also keeping the market afloat as well, and I think that the machine trading will continue. That being the case, I like buying pullbacks in the S&P 500 but I also recognize that there is a lot of noise in the marketplace, with a lot of focus being on the US Congress passing some type of tax bill. Ultimately, the market should continue to go higher if we get signs of progress. Alternately, if we fail to get that passage, that should be very negative for stock markets. Currently, it looks as if the corporate rate is going to be 20% in the United States, which makes it very competitive with the rest of the world, thereby having the S&P 500 looking cheaper than it did just a few weeks ago. Ultimately, the 2600 level is the “floor” in the uptrend.

MORE WILL UPDATE SOON!!

Index trend and stocks in action December 06, 2017:"STOCKS TO BUY"

During the previous trading session, after opening gap and testing its 100-SMA, Nifty rebounded to close flat with negative bias. The price action has resulted in the formation of doji candle which indicates indecision. Going forward, a follow through correction below the 100-SMA, which is placed around 10,070, may see the Nifty extending its correction towards levels of 10,000, while on the upside the level of 10,180 followed by 10,210 is a stiff barrier for the index. Today being a crucial event, i.e. RBI bimonthly policy release, the outcome of policy could the dictate the near term trend for the Nifty. 

Essel Propack: The Company is issuing Commercial Papers (CP) for Rs. 30 crore on private placement basis.  

Reliance Communication: Fitch Ratings (Fitch) has withdrawn “C” rating of Company’s Long-Term Foreign and Local Currency Issuer Default Ratings and Bonds listed in Singapore Stock Exchange due to commercial reasons.    

Byke Hospitality: Company announced acquisition of the 3 hotels, The Byke Nature Villas in Shimla, The Byke Puja Samudra in Kovalam and The Byke Brightlands Resorts in Matheran.  

Infosys: Inspired by the success of past funding initiatives to train thousands of public school teachers, Infosys Foundation USA will host the Pathfinders Summer Institute 2018, a national convening for K-12 teacher education in Computer Science and Making.  

Hatsun Agro Product: Paid Rs 2.07 crore to the income tax authorities as per the settlement commission order.  

Shilpa Medicare: Company has received Form 483 observations from the USFDA for it Telangana facility, a total of 10 observations was cited during the close up meeting.  

Punjab Chemicals: The board meeting is to be held on December 8, 2017 to consider fund raising.  

MORE WILL UPDATE SOON!!

Buy, Sell, Hold: Here are 6 stocks that are in focus today:Intraday

Bharat Forge, Dish TV and Axis Bank, among others, are being tracked by investors on Wednesday.

Bharat Forge

Brokerage: CLSA | Rating: Buy | Target: Rs 905

The global research firm said that outlook for exports has improved significantly. It sees demand picking up in key industrial export segments and a strong 34 percent EPS CAGR over FY17-20. The brokerage said that the firm had valuations at 30x one-year forward PE are not cheap but should sustain.

Dish TV

Brokerage: CLSA | Rating: Buy | Target: Raised to Rs 108

CLSA said that Q2 earnings were underlined by slow recovery in ARPU & subscriber additions. It lowered EBITDA estimates by 5-8 percent, but remains positive. It sees significant synergy benefits for the firm from Videocon D2H merger.

Brokerage: IDFC | Rating: Outperform | Target: Rs 92

The brokerage said that the second half of FY18 ARPU is expected to be higher than the first half. Further, the D2H merger may yield revenue and cost synergies. It cut FY18/19 earnings by 51%/35% as we increase D&A expenses.

Brokerage: Morgan Stanley

Morgan Stanley said that the company’s Q2 revenue was in-line with estimates; EBITDA Beat Of 3% was seen. Further, average revenue per user improved marginally in Q2 but net subscriber additions remain soft. The research firm believes that GST will aid margin expansion, benefits to mainly accrue over H2FY18.

Axis Bank

Brokerage: Nomura | Rating: Buy | Target: Cut to Rs 620

Nomura said that core PPOP/asset is readjusting downwards to a new normal. It expects a normalised RoEs of 15-15.5 percent for the bank.

Arvind

Brokerage: Edelweiss | Rating: Buy | Target: Rs 493

Edelweiss said that garments, advanced materials are the ‘wheels for future’, says management. Given the growth plans for brand and retail, future cash flow requirement will be the key. It believes that carved-out textile unit may figure among fastest growing textile firms.

M&M

Brokerage: Citi | Rating: Buy | Target: Raised to Rs 1,700

Citi said that farm equipment remains on a solid footing and it forecasts 15%/10% tractor volume growth in FY19/20. Further, weak UV performance has led to the stock treading water for over three years.

Voltas

Brokerage: Motilal Oswal | Rating: Neutral | Target: Rs 580

The brokerage house said that AC portfolio overhaul is likely post energy rating norm changes. One could watch out for the company’s pricing on inverters. Meanwhile, projects business has also stabilised with margin recovering to 5-6%.

MORE WILL UPDATE SOON!!

Stay with winners! Nifty falls 372 points from record highs; 20 stocks which rose 20-40%

Even if BJP does win Gujarat election we could see a sigh of relief but if the results disappoint then chances of a big cut could be on cards, suggest experts.

The bull’s part fizzled out soon after the benchmark indices hit record highs back in the month of November. The S&P BSE Sensex slipped over 1,000 points from its record high of 33,865 while the Nifty50 dropped 372 points from its record high of 10,490 recorded on November 6.

The index did make a recovery but the trend started drifting lower post November 20. The Nifty50 now trades below key short-term moving averages but there was plenty of stock specific action which kept traders busy throughout the period.

The Nifty50 hit a record high of 10,490 on November 6 but as many as 20 stocks gave returns in the range of 20-40 percent in the same period, according to data collated from Capitaline.

Stocks which outperformed Nifty50 in the last one month includes many small and midcap names such as Jai Corp, Praj Industries, Minda Industries, Vakrangee, McLeod Russel, Sonata Software, Religare Enterprises, L&T Technology, VIP Industries, La Opala, Coffee Day Enterprises etc. among others.

After a sharp rally seen in the first 10 months of the calendar year 2017, most analyst were expecting the rally to take a halt in the month of November and December.

There are many events lined up for the month of December which could halt rally on D-Street at least in the short term. Nervousness on D-Street is clearly visible ahead of key events such as RBI policy outcome, US Fed Monetary policy review, as well as the outcome of state elections, suggest experts.

The market is likely to stay rangebound until the time state election results especially Gujarat election results are out; hence, a big rally or a Santa Claus rally might have to wait for another year.

Even if BJP does win Gujarat election we could see a sigh of relief but if the results disappoint then chances of a big cut could be on cards, suggest experts.

 Do not expect a win by Modi to move the markets up or have too much of an upside based on this news alone but a loss and upset from BJP could take the markets lower.

Looking at the market, we believe this inherent weakness in the market will continue and we expect the market to move lower into the 10,000 to 10,100 region in the coming expiry, i.e. the December expiry.

In the short term, it is essential for investors to opt for bottom-up ideas which can offer superior value in terms of their valuation. Many stocks did correct up to 20 percent in the last one month, but investors must do their research before putting their money.

Many stocks fell up to 20 percent in the Nifty500 index which includes names like Marksans Pharma, Reliance Communications, Lupin, MTNL, Welspun Corp, GSFC, Aurobindo Pharma, Vedanta, Cadila Healthcare, Punjab National Bank, Suzlon, Tata Motors, MMTC, Hindalco Industries, Power Finance Corporation etc. among others.

  Despite the sharp correction, analysts feel that the Bull Run remains intact and investors should be focused on building their portfolio with quality stocks. Investors should use these dips to accumulate quality stocks.

“We continue to believe that Indian markets are in a phase of a secular bull run. Hence, even if there are event-based intermittent corrections in the Indian markets, the long-term trend remains bullish

These events in the immediate future could be the outcome of the state elections or the US Fed policy review but we firmly believe that it will not reverse the overlying trend of upward asset values.

MORE WILL UPDATE SOON!!