Porinju Veliyath Portfolio Holdings:Do you own any??

Fan and follower of Porinju always seek information about buying and selling activity of him. In order to help them here is a comprehensive list of Stocks held by Mr.Porinju.

Porinju Veliyath Portfolio Holdings

Eastern Treads Limited

IZMO Limited

Simran Farms

Stylam Industries

Samtex Fashions

BDH Industries

Emkay Global

Flex Foods

Tara Jewels

Alpa Labs

V2 Retail

ABC India

Linc Pen

Harrisons Malayalam

Palred Technologies

Sahyadri Industries

Archies

Gokaldas Exports

Arvind Infrastructure

Globus Spirits

Tera Software

KNR Construction

Jubilant Life Sciences

Nirvikara Paper Mills

Porinju is indeed successful stock market investor. So question arise that what makes him a successful & billionaire Investor?  How he invest in the stock market?  So, here is some simple points which makes him successful value picker.

Porinju Veliyath Investment Style

Identify and Invest in future multi baggers

Porinju has always identified and invest in future multi-bagger companies. The first example was Geojit Finance. The second example is Shreyas Shipping & Logistics. He invested in this stock in the year 2012. At that time stock was trading at Rs.30.The stock has reached an all-time high on 7th Aug 2015 Rs.839.

Make strategy when to Exit from stock

Porinju exited from Shreyas Shipping by booking profit at the level of Rs.700. After reaching all-time high stock price is now reduced to Rs.271. So, it is important to know when to exit from stock.

Buy lesser-known, high quality businesses to derive maximum portfolio value.

Entire portfolio holding of porinju is full of less –known, high-quality business. E.g No one was aware of stock such as Gokaldas Exports or Nirvikara Paper Mills before he invested.

Invest in companies with clean balance sheet, honest management and clear business visibility

Porinju always invests in companies with a clean balance sheet, honest management, and good business potential. He invested in Geojit Financial Services for these qualities only.

MORE WILL UPDATE SOON!!

Use rallies to build short positions; 4 stocks which can give up to 18% return

Overall, we expect Nifty to trade in a broad range of 10,000-10,400 levels where any pullback towards 10,350-10,400 can be used to exit from trading longs and initiating fresh shorts.

 

The Nifty has formed a downward sloping channel formation on a daily chart and recently it saw sharp reversal from the upper band of the channel formation. Looking at the daily chart, we are seeing lower highs & lower lows on Nifty as well as on the daily RSI (14) momentum indicator.

At this juncture, the index is finding support near the 61.8 percent retracement of its entire move from the bottom of 10,033 to the top of 10,329 which is likely to be taken out in a coming trading session as we are expecting a range shift on a daily chart.

Going forward, we maintained our sideways to bearish view on the index and expect Nifty to correct towards 10,050-10,000 level; hence, positional traders are advised to use any meaningful bounce if any,

On the higher side, 10,330 / 10,407 zone has a cluster of resistance and as long as the index is trading below this zone our view will remain cautious in the near term.

If we analyse option data than that also indicates the same broad range for Nifty. On lower side maximum put writing at 10,000 strike option will act as strong support zone whereas call writing at 10,400-10,500 strike options continued to be a supply zone for this series.

Overall, we expect Nifty to trade in a broad range of 10,000-10,400 levels where any pullback towards 10,350-10,400 can be used to exit from trading longs and initiating fresh shorts.

Here is a list of top 4 stocks which can give up to 18% return in 15-21 sessions:

Sun Pharma: BUY around Rs514| Target Rs610| Stop loss Rs460| Time frame 15 to 21 sessions| Return 18%

Looking at the daily chart, we are seeing a formation of a Bullish divergence and the impact of said pattern was seen last week when the stock rebounded sharply towards Rs572.

Subsequently, the bears tried to pull the stock lower but it bounced back from the support near 50% retracement of its entire swing move. The daily RSI (14) also found support near 40 levels.

Hence, we expect this stock to see a decent up move in the coming week and therefore we recommend traders to buy this stock at the current level of Rs514 with a price target of Rs610. A Stop loss should be placed below Rs460.

ONGC: BUY around Rs185 – 182| Target Rs205| Stop loss Rs175| Time frame 15 to 21 trading sessions| Return 10%

After taking a support near the daily 89-EMA, the stock witnessed a decent buying interest. On a daily chart, the RSI (14) took support near 40 and started heading northward.

On the daily chart, 9-45 EMA is still positive indicating the current trend is still up. Also, the rising crude oil price is a favorable for upstream companies.

Thus, we advocate traders to buy this stock in a range of Rs185 – 182 with a price target of Rs205. A stop loss should be placed near 175.

Can Fin Homes: SELL around Rs460 to 465| Target Rs410| Stop loss Rs481| Time frame 15 to 21 trading session| Return 10.8%

The stock has formed Lower Highs & Lower Lows on the daily charts. Recently, the stock saw a pullback from the low of Rs431 but saw strong resistance near the daily 45-EMA and formed a triangle pattern.

In Thursday’s trading session, stock confirmed its breakdown from triangle pattern. The 9-45 EMA on price is negative indicating the current trend is down.

Hence, we suggest traders to build a short position in Canfinhome around 460 /465 with a price target of 410 and stop loss placed above 481.

Indiabulls Housing Finance: SELL around Rs1190 – 1200| Target Rs1100| Stop loss Rs1230| Time frame 15 to 20 trading session| Return 7.5%

After witnessing a sharp rally, the stock breached the Higher Top Higher Bottom sequence on the daily chart and thereafter it is consolidating in a narrow range since past several days.

The 9-45 EMA has signaled negative crossover and with this stock also broke the rising trend line on daily chart. Looking at the placement of candlestick pattern on the daily chart, we expect further weakness in this counter hence one can take a short position in a range of 1190 – 1200 with a price target of 1100. Stop loss should be placed at 1230.

MORE WILL UPDATE SOON!!

Outcome of Exit Polls in Gujarat among top 5 factors cheering Sensex, Nifty

Frontline indices witnessed a gap-up opening, with the Sensex gaining over 300 points in the first few minutes of trade, while the Nifty managed to reclaim 10,350 mark.

   

The Indian market on Friday cheered the exit poll outcomes for Gujarat and Himachal Pradesh Legislative Assemblies, which predicted a comfortable victory for the ruling Bharatiya Janata Party (BJP).

The positivity in the market is on the back of assurance of a political stability, which is key to passing of important reforms for the economy at the State and Centre levels.

Frontline indices witnessed a gap-up opening, with the Sensex gaining over 350 points intraday in the first few minutes of trade, while the Nifty managed to reclaim 10,350 mark.

Exit Polls suggest victory for BJP

Exit polls released by various news organisations and survey agencies on Thursday revealed that the ruling-Bharatiya Janata Party (BJP) is likely to retain power in Gujarat following the 2017 assembly election.

While most polls suggested that the Congress had improved its tally in north Gujarat, the ruling party continues its dominance in south Gujarat.

In the 2012 assembly polls, the BJP won 115 seats, just short of the two-thirds mark, while the Congress won 61 seats in the 182-member assembly. BJP and Congress had a vote share of 47.90 and 38.90 percent, respectively. Former chief minister Keshubhai Patel's Gujarat Parivartan Party (GPP), which was hoping to dent the BJP, ended up winning only two seats. The party was later merged with the BJP. The Nationalist Congress Party (NCP) and the Janata Dal (United) bagged two and one seat respectively.

Meanwhile, exit polls released by various news organisations and survey agencies on Thursday revealed that the Bharatiya Janata Party (BJP) is set to end Congress' rule in Himachal Pradesh. The poll results also indicated that the BJP would win with a 51 percent vote share in the Himalayan state, while Congress's vote share would be 38 percent. Other candidates will take home the remaining 11 percent votes. The agency said that the final result could be somewhere between plus or minus seven in terms of the seat share and three percent in terms of the vote share.

Technical Breakout

Ahead of the announcement of exit polls on Thursday, the Nifty ended above 10,250, making a Hammer-like pattern on the daily charts.

A Hammer which is a bullish reversal pattern is formed after a decline while Hanging Man is a bearish reversal pattern. In this pattern, market witnesses a significant selloff towards opening but manages to recoup some of the losses and closes near the opening level.

Formation of a bullish candle after two successive bearish candles suggests that market is now factoring in a favourable victory of BJP in the upcoming poll results next week.

For the bullish momentum to continue, experts had suggested that the index has to surpass its crucial resistance level placed around 10,350 levels. In this case, the Nifty has managed to surpass that in the opening tick, setting the course for the market ahead.

Booster from US Fed -- no aggresive rate hikes in 2018

The US Federal Reserve, in its recent policy meeting, announced that there could be no aggressive rate hikes in the following year, leading to some relief among emerging markets.

The US central bank came through on a widely expected interest rate hike on Wednesday following its two-day policy meeting and sharply raised its economic growth forecast for 2018.

In their decision, the central bank policymakers mostly followed the script, though they did indicate that one less hike is on the way for 2019. Two Fed presidents voted against the increase — Charles Evans of Chicago and Neel Kashkari of Minneapolis.

The move will push the target range to 1.25 percent to 1.5 percent. The rate is pegged to a wide variety of debt instruments, such as credit cards and adjustable-rate mortgages. The Fed has persevered in hiking rates gradually, with this week's raise being the third quarter-point move in 2017. Projections for 2018 remained unchanged at three more increases.

Global brokerages betting on macro visibility

On the macro front, market experts are looking forward to improving economic and macro scenario. This, if transpired, would lead to more upward moves on the market going forward.

The Indian division of Credit Suisse sees India’s macro economic visibility improving in 2018. However, the growth prospects for the economy are likely to remain weaker than currently expected, according to Neelkanth Mishra, Managing Director and India Equity Strategist at Credit Suisse. "Structural reforms have weakened visibility on most macroeconomic parameters," Mishra said.

“We have long considered India as a ‘house under renovation’. Structural reforms such as the Good and Services Tax (GST), the Insolvency and Bankruptcy Code (IBC) and the setting up of Real Estate Regulators (RERA) in states while structurally positive, have introduced significant uncertainty around growth, fiscal deficits, inflation, interest rates and banking system health,” he added.

Fundamentally, we are turning a corner in terms of economic and earnings growth, Pramod Gubbi, Head of Equity at Ambit Capital, told CNBC-TV18 in an interview. He expects December quarter earnings to see a pick up on the back of a recovery in environment and a weak base from the last quarter. “In terms of sectors, consumer discretionary and IT could show improvement in terms of growth,” he told the channel. Overall, he expects around 15 percent growth in earning for FY19.

Oil stable on tighter market

After witnessing a sudden spike to USD 65 levels, oil prices seem to have stabilised by now.

Oil markets were stable on Friday as the Forties pipeline outage in the North Sea and the ongoing OPEC-led production cuts supported prices, while rising output from the United States kept crude from rising further.

US West Texas Intermediate (WTI) crude futures were at USD 57.15 a barrel at 9:40 hours IST, up 0.19 percent from their last settlement.

Brent crude futures, the international benchmark for oil prices, were at USD 63.26 a barrel, down 0.08 percent from their last close.

Traders said markets were overall well supported by efforts led by Organization of the Petroleum Exporting Countries (OPEC) and Russia to withhold supply to prop up prices.

MORE WILL UPDATE SOON!!

Global brokerages see up to 12% rise in Sensex in 2018; more than 30 stocks to bet on

Global brokerages such as BofAML, Morgan Stanley, Credit Suisse, and BNP Paribas see Indian market to touch fresh record highs in the next calendar year.

 

The year 2017 has been a blockbuster year for India markets with benchmark indices breaking above key resistance levels and the year 2018 is unlikely to disappoint investors. The S&P BSE Sensex which has already rallied over 25 percent could well see another 12 percent rally from current levels.

Global brokerages such as BofAML, Morgan Stanley, Credit Suisse, and BNP Paribas see Indian market to touch fresh record highs in the next calendar year.

BNP Paribas has the most aggressive target on Sensex among all the other global investment banks’ which have come out with their strategy reports. BNP Paribas maintains its overweight stance on Indian markets and sees the S&P BSE Sensex heading towards 37,500, which translates into an upside of nearly 12 percent from current levels.

The global investment bank said that it wants to play the upcoming recovery and benefit from the impact of the previous year’s policy measures, and we like the ease of stock selection. India suffered from reform-related economic destruction, but a recovery seems clear underway.

Morgan Stanley:

The global investment bank in its most bullish scenario see Sensex climbing Mount 40K by December 2018 if earnings growth accelerates to nearly 20 percent. A combination of supportive global growth, improving capex, fiscal spending and a buoyant consumer augur well for growth in the year 2018.

Morgan Stanley introduced its December 2018 Sensex target at 35700 (base case). In the base case scenario which has a probability of 50 percent, the BSE Sensex would trade at 15x one-year forward earnings, which is below its historical average.

In the bull case scenario which has a probability of 30 percent, the S&P BSE Sensex could rally towards 41,500 on better-than-expected on policy measures as well as global factors. The earnings growth would also accelerate to 19 percent in FY2018and 27 percent in FY2019.

Credit Suisse:

As the 2019 general elections get closer, state elections are likely to get more market attention. This has limited direct economic impact, particularly after the budget is presented, but changes in market sentiment may drive volatility.

The market as a whole is not expensive on a relative basis, and while cuts should resume, we could still see double digit EPS growth in FY19. Top outperformers include names like SBI, ONGC, Tata Steel while Bajaj Finance, UltraTech, and Dr Reddy’s could underperform.

Nomura:

Saion Mukherjee of Nomura said the research house is bullish on India Equities with Nifty December 2018 target of 11,880. Their top stock picks are Reliance Industries, GAIL, HDFC Bank, SBI, Shriram Transport, Maruti Suzuki, M&M, Ashok Leyland and L&T.

Business is on the cusp of an upcycle which will drive strong earnings growth as corporate earnings-to-GDP ratio is at its lows, with significant contraction in margins and return on equity.

Nomura is overweight on financials, energy, infra/construction and healthcare while underweight sectors include IT, consumer staples, utilities & cement.

B0fAML:

The global investment bank sees the index slipping towards 32K towards the end of the next. BofAML said that bank said that it arrived at the valuations for the Sensex by using top-down estimates for earnings growth i.e. 15 percent and a 16.5x forward P/E multiple.

The S&P BSE Sensex currently trades at 18.5x forward which is well above its historical average of 15.3x. Large positive returns from current levels are only possible if the current elevated P/E multiple sustain so that the growth in earnings can drive stock prices. But, downgrades to estimates are still likely in 2018.

MORE WILL UPDATE SOON!!

The year 2018 will be all about individual stocks; 6 sectors looking attractive

The market is unlikely to break out in a hurry and sectors which did well so far could underperform in the next one year, while the beaten-down sectors such as PSU banks, roads, metals, industrials etc. will remain in demand in the next 6-9 months.

   

The S&P BSE Sensex rallied by about 25 percent so far in 2017, largely on the back of P/E re-rating while earnings stayed flat. Going into 2018, earnings are likely to pick up and P/E multiple could see de-rating, Manish Sonthalia, Head Equities- PMS at Motilal Oswal AMC said in an interview with CNBC-TV18.

The market is unlikely to break out in a hurry and sectors which did well so far could underperform in the next one year, while the beaten-down sectors such as PSU banks, roads, metals, industrials etc. will remain in demand in the next 6-9 months.

Here is a list of top 6 sectors which are looking attractive:

NBFCs which outperformed benchmark indices in the year 2017 may underperform in the next 12 months. “We are going to see rate increase sometime in FY19 and rates are going to harden with inflation and twin deficit coming back could weigh on NBFCs,” said Sonthalia.

Dairy:

The dairy theme is likely to do well given the fact that PM Modi plans to double the farm income in the next 3-4 years. In the dairy sectors, the focus will be on companies who are selling liquid milk rather than value-added products because the work capital cycle and cash conversion cycle is much more favourable in liquid milk.

Midcap IT & Pharma:

In the Midcap IT segment, Sonthalia likes L&T Technology Services and in terms of pharma space, we are betting on Ipca Laboratories, and Alkem Laboratories.

Gas stocks:

We are positive on City gas distributors — Indraprastha Gas Ltd (IGL) and Mahanagar Gas Ltd (MGL). The economy is moving towards a gas economy which augers well for both the stocks. The valuations might look stretched but with PNGRB having a chairman, decision on new notified will come soon which will be positive for both these companies.

Real Estate:

Real Estate is entering into interesting times going into the future. The whole retailing space and residential housing space is witnessing a shift from unorganised to organised. The known industry plays are likely to see a bigger traction in terms of volume size as opposed to lesser known ones.

Jewellery:

In the jewellery space, Sonthalia likes Titan Company Ltd. The company is a major thematic play on the unorganised shifting to the organised. The hyper growth is here to stay.

MORE WILL UPDATE SOON!!

Volatility grips Dalal Street as Sensex slips 174 pts ahead of Fed rate decision

Investors could be cautious ahead of key events such as US Fed meet outcome, along with Gujarat elections’ second phase and the following opinion polls which will be out on Thursday.

 

In what could be termed as a volatile day of trade on D-Street, benchmark indices witnessed wild swings in both directions, before ending the day on a weak note. Investors could be cautious ahead of key events such as US Fed meet outcome, along with Gujarat elections’ second phase and the opinion polls which will be out on Thursday. Sentiment could also have been hit on the back of subdued economic data.

A gap-down opening was seen on the Indian market, but the index soon trimmed some of those losses to trade rangebound in the afternoon. But things took a turn for good, when a rally in banks, along with other frontline indices helped them trade positively. Sensex gained around 176 points intraday, before witnessing a sudden U-turn and falling over 200 points intraday in the penultimate hour of trade. The Nifty, too, had gained around 59 points intraday.

The Sensex closed down 174.95 points or 0.53 percent at 33053.04, while the Nifty was down 47.20 points or 0.46 percent at 10193.00. The market breadth was negative as 944 shares advanced, against a decline of 1718 shares , while 150 shares were unchanged.

Kotak Mahindra Bank, ONGC, HPCL and IOC were the top gainers, while BHEL, Tata Motors DVR, Vedanta and Cipla lost the most.

Nifty Midcap was down 1 percent. About two shares declined for every share rising on the NSE. All sectoral indices ended in red. Metal, pharma, realty and PSU bank fell the most, down 1-2 percent, followed by auto, FMCG and IT.

It was another day of losses on the bourses as key indices started the day on a subdued note and traded in the negative zone on mixed Asian cues and data showing a surge in India's consumer price inflation and a moderate growth in industrial production. This becomes a very tricky situation for the Central Bank to handle. While lower interest rates in the economy should likely give a boost to economic growth, higher inflation discourages the Central Bank to reduce rates as it might further spike inflation. This means that the markets could be more volatile in the near future as indecisiveness dominates sentiment. Both the benchmark Sensex and the Nifty finally closed the day with losses.

Meanwhile, oil stocks IOC, HPCL, BPCL bounced back, up 1.5-2 percent, after Brent crude cooled off after hitting USD 65 per barrel in the last two days.

Shree Cement, UltraTech Cement, JK Lakshmi Cement, JK Cement and Prism Cement gain 1-6 percent post SC order that allowed the use of petcoke.

Canara Bank, Allahabad Bank, LIC Housing Finance, Manappuram Finance, HDIL, DLF, Peninsula Land, Indiabulls Real Estate, Voltas, Havells, Petronet LNG, Century Textiles, Tata Elxsi, Religare Enterprises, HEG, Graphite India and Rain Industries were down 1-5 percent.

Bharti Airtel shares closed over 1.3percent lower after gaining nearly 2 percent intraday after the company decided to sell 20 percent stake in its DTH arm to US private equity firm. The rally had spilled over to Dish TV as well, which gained 4 percent, before falling around one percent.

InterGlobe Aviation shares fell 4 percent on equity dilution by promoter entities through offer for sale that opened for subscription. Two promoter entities of the IndiGo owner planned to offload shares worth at least Rs 1,245 crore through the offer for sale route on Wednesday and Thursday.

JB Chemicals & Pharmaceuticals ended flat, before gaining 3 percent on receiving approval from the US health regulator for anti-hypertensive drug.

Rico Auto Industries shares rallied more than 3 percent intraday Wednesday on signing a joint venture agreement with Singapore-based company. The stock ended 0.20 percent higher.

Markets continue to look weak overall with the real estate sector beginning to sell off too; what went up the highest in the preceding rally, looks to be correcting now. Ahead of the Fed policy decision tonight and the Gujarat exit polls soon after, we recommend a wait-and-watch policy at this juncture with a bias on the short side.

MORE WILL UPDATE SOON!!

Nearly 30 stocks where MFs raised stake more than doubled wealth in 2017; do you own any?

Retail investors have pumped in Rs1.26 lakh crore into mutual funds in the month of November, driving industry assets under management to an all-time high of Rs21.8 lakh crore.

After a flat 2016, bulls clearly dominated D-Street in 2017 as benchmark indices rallied nearly 25 percent in the year. The biggest contributor to the rally were retail investors as more household savings got channelized into equity markets via mutual funds (MFs).

Small and midcap stocks rallied, thanks to record inflows from mutual fund throughout the year 2017. As many as 28 stocks in which fund managers raised stake throughout 2017 more than doubled investors’ wealth which includes names like HEG, Yuken Ltd, V2 Retail, Dilip Buildcon, Minda Industries, SpiceJet, JM Financial, NOCIL, Ramkrishna Forging, Tata Metaliks, Jindal Steel etc. among others.

Majority of stocks mentioned in the list belong to the small and midcap space. It looks like mutual fund managers are testing new waters as some of the investment made are for the very first time in the year 2017.

Fund managers raised stake from 0.04 percent to 1.6 percent in HEG which has already given a return of over 1000 percent so far in the year 2017.

Similarly, Fund managers raised stake in Dilip Buildcon from 2.92 percent in the March quarter to 5.04 percent recorded in the September quarter.

We have just around three-four percent of our retail assets in mutual funds and equity. It is almost 15-20 percent for the developed markets. Provided these midcaps and smallcaps don’t mess in terms of going for badly priced acquisitions or taking some steps which are not in the right spirit of the corporate governance, they should be able to do well over the next four-five years.

Indian markets rallied in one straight line without giving investors any big opportunity to enter. The market bounced back swiftly after 3-4 percent correction; hence, plenty of money is still standing on the sidelines ready to get invested.

If there is a big correction in the market, it will be quickly bought into especially by the institution which are sitting on a big cash pile.

Retail investors have pumped in Rs 1.26 lakh crore into mutual funds in the month of November, driving industry assets under management to an all-time high of Rs 21.8 lakh crore.

With the latest inflow, total infusion in MF schemes reached Rs 3.8 lakh crore in the first eight months (April- November) of the current fiscal, latest data with Association of Mutual Funds in India (Amfi) showed.

Equity and equity-linked schemes attracted over Rs. 20,300 crore. In addition, more than Rs 7,600 crore was invested in balanced funds. Further, over Rs 9,300 crore was put in the debt funds. In contrast, gold ETFs continued to see a net outflow of Rs 89 crore.

If we look at the trend for equity schemes, MFs have poured in more than Rs 30,000 crore in the December quarter, according to data collated from Capitaline.

The amount of money going into equity schemes more than doubled in the last three years. Fund managers were pouring a little over Rs 14,000 crore in the December quarter, back in the year 2014 which has now reached well above Rs 30,000 crore in the year 2017.

Fund managers have already poured in a little over Rs 31,000 crore so far in the December quarter of 2017.

 

Inflows into domestic Mutual Funds continue to remain strong since mid-2014. Domestic flows have contributed significantly to equity investments while foreign investments, on the other hand, remained volatile. Increasing return on equity in the US may shift the flow of funds,” BofAML said in a report.

Primary issuance in India too has been strong in FY18. Further, equity issuance to the tune of USD 5 billion is expected in the near future. The supply of money will create demand and help in growing infrastructure.

Stocks in which MF have a double-digit stake:

Many small and midcap stocks in which fund managers have a double-digit stake have managed to outperform Nifty50 returns so far in the year 2017. As many as 30 out of 83 stocks have given negative return while the rest managed to outperform Nifty.

Some of the stocks in which fund managers have double-digit stake include names like Equitas Holdings, Max Financial, KNR Construction, Federal Bank, India Terrain, Repco Home Finance, HSIL, Atul, Tata Chemicals, BEML, PNC Infratech, and CG Power etc. among others.

MORE WILL UPDATE SOON!!

Buy, Sell, Hold: 7 stocks on analysts radar today??

CLSA has maintained its buy rating on Arvind with increased target price at Rs 538 (from Rs 440 per share) but reduced FY18/19 EPS estimates by 16/2 percent.

 

Bharti Airtel

Brokerage - HSBC | Rating - Buy | Target Rs 575

While maintaining buy call on Bharti Airtel with a target price of Rs 575 per share, HSBC said it believes company's operations in Africa have further upside.

The company may be keen to unlock value in its African operations sooner rather than later, according to the research house.

HSBC estimates FY17-20 revenue CAGR at 1.4 percent and EBITDA CAGR at 11.1 percent for Africa operations.

Catalysts for Africa are improvement in revenue growth, particularly from data, it said. "The downside risk to our outlook for African operations is lower capex spend."

India remains the priority for Bharti Airtel. Company may lower Africa capex if India recovery is delayed beyond FY19, HSBC feels.

Tech Mahindra

Brokerage - Citi | Rating - Sell

Citi has maintained sell call on Tech Mahindra, saying overall margin is expected to improve over the next few quarters. At 15x FY19, the stock is not cheap, the research house said.

Tech Mahindra will continue to evaluate M&A for capability addition, it feels.

Meaningful surprises are difficult to achieve given the industry headwinds, it said.

Arvind

Brokerage - CLSA | Rating - Buy | Target Rs 538

CLSA has maintained its buy rating on Arvind with increased target price at Rs 538 (from Rs 440 per share) but reduced FY18/19 EPS estimates by 16/2 percent.

Cash flow from brands business is critical to a rerating, it said, adding value unlocking depends on Brand & Retail (B&R) business being able to fund its own growth.

CLSA sees business getting stronger both in textiles & B&R. It values the B&R business at A 22x EV/EBITDA.

SBI

Brokerage - Goldman Sachs | Rating - Buy | Target Rs 396

Goldman Sachs has upgraded SBI to buy from neutral with target price at Rs 396 per share as it feels the bank is best positioned to benefit from improving asset quality cycle.

The research house expects bank’s return on assets to improve to 0.95 percent by FY20 from 0.22 percent in first half of FY18.

It is a prime candidate to get growth capital under government's SOE recapitalisation plan, Goldman said.

Maruti Suzuki

Brokerage - Morgan Stanley | Rating - Buy | Target Rs 10,563

Morgan Stanley has overweight call on Maruti Suzuki with increased target price at Rs 10,563 (from Rs 9,102 per share).

"End-market opportunity & superior return on capital employed justifies the valuation," the research house said while maintaining forecast of 22 percent FY18-20 EPS CAGR.

Jet Airways

Brokerage - Edelweiss | Rating - Buy | Target Rs 822

Edelweiss has upgraded Jet Airways to buy from hold and raised target price to Rs 822 from Rs 548 per share as measures initiated by new CEO would turnaround company's stressed financials.

The company is focussing on sustaining growth via cost rationalisation. The strategy is to focus on cost efficiencies & debt reduction, it said.

Edelweiss raised FY18 EBITDAR margin to 16.8 percent from 15.5 percent.

Motherson Sumi Systems

Brokerage - HSBC | Rating - Buy | Target Rs 425

HSBC has maintained buy call on Motherson Sumi with increased target price at Rs 425 from Rs 376 per share as it expects innovation & cross-selling to support business growth.

It is well placed to benefit from increasing role of auto component suppliers, it feels.

With the recent fundraising, Motherson is ready for multiple acquisitions, HSBC said.

The research house said slowdown in global car market and rupee appreciation are downside risks its rating.

MORE WILL UPDATE SOON!!

Nifty likely to face resistance at 10,350: 3 stocks which can give up to 10% return?

The strong reversal trend in the Nifty index from the last two trading sessions translates to a possible breakout from its short-term hurdles placed at 10,350 level and likely to trade near 10,400 level if its holds above 10,350 level.

The Nifty index witnessed a strong comeback after trading near its crucial support level placed at 10,040 zone and managed to close above its critical 20 & 50-days EMA level.

On the daily price chart, it made a strong bullish candlestick pattern coupled with index closing above its 20 & 50-day EMA indicating a shift in sentiment.

Further, the secondary momentum indicator suggests an uptick in trend with relative strength index (RSI) entering buy zone coupled with continued uptrend momentum depicted in the trend line.

Based on the Fibonacci retracement, a major support is seen at 10,183 level followed by 10,089 level and immediate resistance will be seen at 10,350 level.

The strong reversal trend in the Nifty index from the last two trading sessions translates to a possible breakout from its short-term hurdles placed at 10,350 level and likely to trade near 10,400 level if its holds above 10,350 level.

However, it may also witness a weak support for the uptrend if it fails to close above this trend line.

Here is a list of top 4 stocks which could give up to 10% return in the short term:

Kesoram Industries: BUY| Target Rs 163| Stop-loss Rs 137 | Return 10%

Kesoram Industries witnessed a major breakout during the last week’s trade after facing consolidations near Rs119-123 level. But, the price action gave a positive outlook on the weekly chart despite closing lower from the previous level.

The strong sentiment prevailed as it witnessed a major volume breakout which enabled the stock to rally. On charts, Kesoram formed a “cup & handle” kind of a candlestick pattern along with its bullish trend pattern in its daily price chart.

Further, the secondary momentum indicator suggested a similar support for the scrip with price trading above all the level at current regime.

The MACD at 4.69 also suggests strong support for the rally with bullish crossover. Based on Fibonacci Retracement, the stock is facing a resistance at the Rs174 level and support level at Rs136.

We have a BUY recommendation for Kesoram Industries which is currently trading at Rs. 148.35

Graphite India: BUY| Target Rs 684 | Stop-loss Rs 634 | Return 4%

Graphite India witnessed a strong bullish reversal trend after consolidating at a crucial support level placed at the Rs540-555 level and continued with uptrend trajectory.

Despite witnessing a negative outlook last week, it witnessed a major breakout from higher circuit towards the weekend session. The breakout was coupled with volume support along the trend-line. The stock gained about 12 percent on the weekly basis.

On the daily price chart, the stock formed a bullish trend as it ended the weekend session on positive cues. Following a momentum indicator, which supports bullish uptrend with an increase in RSI at 67 level coupled with MACD at 19.8 showing signs of crossover from its signal-line.

Further, the stock managed to close above its 20 & 50-days EMA, and thus strengthening the positive sentiment in forward-looking session.

The stock is currently facing upper-resistance at 808-level and immediate support at 598-level. We have a BUY recommendation for Graphite India which is currently trading at Rs. 659.70

West Coast Paper Mills: BUY| Target Rs299 | Stop-loss: - Rs. 268 | Return 4%

West Coast Paper witnessed a strong uptrend momentum forming peaks on its long-term chart despite a flat movement during the initial trading session. It was further aided by growth in volumes along with its upward movement and gained about 15 percent on an intraday basis.

The scrip formed a strong bullish candlestick-pattern on its weekly price chart and continued to trade laterally on 60-degree trend line touching an upper band which indicates a positive signal.

The secondary momentum indicator further suggested a strong support for an uptrend regime with incremental in its RSI level from the previous zone along with MACD still continuing above Signal Line.

The stock is currently facing a resistance at 310 level and support level at 256. We have a BUY recommendation for West Coast Paper Mills which is currently trading at Rs. 287.20

MORE WILL UPDATE SOON!!