Budget 2018: Waiting for a dip? 10 years’ data shows Nifty rising up to 9% in following month post Budget

Investors’ are advised to remain stock-specific and avoid leverage play at current levels. They should sit on some cash which could be deployed on every dip.

    

Are you looking to enter the market but unsure about the timing? Is this market expensive? Are you waiting for a decline to enter? If you constantly ask these questions to yourself, then you are not alone.

Investors are waiting for a decline to commit fresh capital, but will the decline come in 2018 post Budget, especially after a strong rally seen in the equity market so far this year?

Well, history says otherwise. If you are waiting for a decline, chances of that happening are low based on anecdotal evidence. In the last 3 out of 10 years, Nifty rose in the month post Budget.

However, the trend is reverse if we look at 1-month ahead of the Budget wherein Nifty slipped in 6 out of last 10 years in the run-up to the big event.

The Nifty rallied 9 percent in the following month post Budget in year 2016, followed by 7 percent gain in the year 2010 and 2011.

Even the Economic Survey released on Monday highlighted some risks for the equity markets such as fund flows, higher crude oil prices, as well as high valuations. But, the way markets reacted and hit fresh record highs, looks like it has taken everything in stride.

This time, market volatility in the pre-budget period is the lowest as compared to the past 10 budgets. This indicates that unless the event springs up a huge surprise in terms of a surge in fiscal deficit estimate or a regressive measure such as a retrospective LTCG (long term capital tax) regime, we do not envisage market volatility will increase post budget, ICICI Securities said in a note.

Is sell on news possible?

With history suggesting fall in the preceding month, there was always chance of a bounceback post this event.

However, in 2017, Nifty rose 11 percent ahead of the event and rose 3 percent post the event in the next one month. But, for 2018, analysts are expecting some profit booking to trigger post the Budget.

One possible reason for the rally in 2017 was the fact that the index was reeling under the pressure of demonetisation as well as US elections. Hence, 2016 closed with mild positive bias.

However, for the year 2018, the conditions are opposite. We saw a strong rally in the year 2017 and in January as well. Hence, the possibility of some profit booking cannot be ruled out.

There has been a possibility of some profit booking since the last couple of months. But it seems that the market is in no mood to give any respect to recent hurdles.

However, the important event is around the corner now and the index has reached the important level of 11100 (161% Price Extension of the rally seen in 2008-2010). This level needs some attention and hence, a possibility of ‘Exit on News’ kind of scenario cannot be ruled out post the budget.

What should investors do?

Investors’ are advised to remain stock-specific and avoid leverage play at current levels. They should sit on some cash which could be deployed on every dip.

Short to medium term investors should look to take some money off the table in this rally. One can never predict a precise top and hence, it is always a prudent strategy to be safe than sorry, said Chavan of Angel Broking.

Analysts’ see Nifty climbing all walls of worries and hitting Mount 12K by December 2018. But, this time the leadership will be different, suggest experts. High beta small and midcap stocks which led the rally could see some pressure while largecaps could lead the rally on D-Street.

We see Nifty at 12,000 levels by December 2018. The last rally was led by small and midcap stocks but this time it can be largecaps which will contribute to the new highs in the market.

Yes, profit booking can be there in March. Investors can adopt buy on dips strategy. The current rally is the part of strong Q3 earning and expectations from upcoming Budget. Investors should remain invested in quality stocks and quality management.

Ashar further added that in bull markets, corrections are fast and the recovery is also fast. I don’t feel there is any problem at current levels but in case it drops towards 11000 which is “the shagun" level.

MORE WILL UPDATE SOON!!

Market Week Ahead: Union Budget, Economic Survey & earnings among 10 factors to keep investors busy

For the upcoming week, the big bang event will be the Union Budget, followed by earnings as well as the auto sales figures. Among global cues, US Fed meet as well as domestic and global data could dominate the Street as well.

The benchmark indices lost ground for the first time in last seven consecutive sessions, with the Sensex falling more than 100 points on Thursday but the Nifty ended the January series with 6 percent gains.

Profit booking in technology, auto, pharma stocks, and PSU banks after the announcement of recapitalisation amount for current fiscal pushed the market lower. However, gains in private banks, metals and infra stocks capped losses.

A sharp rise in oil prices and weak Asian cues due to losses in the US dollar dampened the market sentiment. Also, there was an increase in volatility during the day as traders rolled over their positions to the February series.

The 50-share NSE Nifty managed to hold 11,000-mark amid selling pressure throughout the session, before closing lower 16.30 points at 11,069.70.

In January series, the Nifty rallied 5.65 percent and the Sensex rose 6.5 percent while for the week, frontline indices gained more than 1.5 percent.

"Before Budget announcement on February 1, we can see a further short covering, which can take the Nifty higher towards 11,200. In case of no negative surprise, the Nifty would continue to form a base near 11,000. This uptrend should continue," ICICIdirect said.

For the upcoming week, the big bang event will be the Union Budget, followed by earnings as well as the auto sales figures. Among global cues, US Fed meet as well as domestic and global data could dominate the Street as well.

The Union Budget & Economic Survey

This is the biggest event for the markets and economy, in general. The government will be presenting the Union Budget 2018 for the next financial year next week.

It assumes significance as it is seen as the last full-fledged Budget in this tenure of Narendra Modi-led BJP government. The Street will watch out for cues from the event, whether populist or reforms-oriented and could see some reactions on that day.

The Budget Session will begin on January 29, 2018, and will end on February 9. The commencement will also see the tabling of Economic Survey. Meanwhile, presentation of the Union Budget by Finance Minister Arun Jaitley will take place on February 1. A second part of the Budget Session will be held from March 5 to April 6, 2018.

Q3 earnings of 465 BSE companies

Along with the Union Budget, there are several major companies that will be declaring their results for December quarter between January 28, 2018 and February 2, 2018.

Companies such as Divi’s Laboratories, Persistent Systems, Century Textiles, Emami, Wockhardt, ICICI Bank, Larsen and Toubro, Oriental Bank of Commerce, IDBI Bank and JSW Steel, among others, will be declaring their results.

Two major index heavyweights will be declaring their results on Monday — Tech Mahindra and HDFC.

The IT services firm is expected to report a profit after tax (PAT) of Rs 775 crore against Rs 836 crore during the previous quarter, a poll of analysts by CNBC-TV18 showed.

Meanwhile, the dollar revenue could rise 2 percent at Rs 1,200 crore against Rs 1,179 crore, while the rupee revenue could rise to Rs 7,760 crore. The company may also report a constant currency growth of 1.8 percent, lower than 2.3 percent in the previous quarter.

Meanwhile, Housing Development Finance Corporation (HDFC) may report a jump in its Q3 net profit of Rs 4,949.1 crore against Rs 1,701.2 crore, according to a poll of analysts by CNBC-TV18 showed. The jump of 190.9 percent is likely to be on the back of post-tax income of Rs 3,675 crore from stake sale in HDFC Life.

IPO

With an intention to raise around Rs 937 crore from its initial public offering (IPO) in its second attempt, Galaxy Surfactants is set to open the issue on January 29, 2018.

MUST READ | Galaxy Surfactants IPO to open on Jan 29: 10 things you should know

The price band for the issue has been set at Rs 1,470-1,480 per share.

The company plans an IPO of up to 6,331,674 equity shares of face value of Rs 10 each for cash.

ICICI Securities, Edelweiss Financial Services and JM Financial Institutional Securities will manage the company’s public issue. The company's equity shares are proposed to be listed on BSE and NSE.

Corporate Action

The Street will watch for a few stocks that will be in focus due to Board-related developments.

For instance, the Boards of Tata Steel and Piramal Enterprises will be meeting on January 31, 2018 for a rights issue. Moreover, companies such as Gayatri Projects, Sundaram Finance, IRB Invit, and eClerx will be in news for a scheme of arrangement as well as a buyback issue. Additionally, the Boards of companies such as HCL Tech, Bharti Airtel, Wipro, JM Financial, and Indiabulls Housing will be meeting to discuss their interim dividend.

Global Cues

The Street will also monitor any developments from the US, where the Federal Reserve will be holding its two-day monetary policy meeting. For now, investors could have factored in a ‘no rate hike’ scenario as it had recently raised it during the December meeting. Having said that, the Fed’s comments and outlook will be watched for cues.

Additionally, moves on the dollar will also be watched. The dollar index has been in a year-long decline, defying forecasts that it should strengthen from the fact that the Federal Reserve is raising interest rates and normalizing monetary policy faster than its counterparts, CNBC reported. But the opposite has happened, and the dollar weakened as flows increased into the euro and yen, as those economies improved, and central bankers in Europe and Japan look closer to removing their own heavy-handed accommodation.

Stocks in Focus

Apart from earnings scenario, a few stocks could be in focus on the back of corporate developments.

Maruti Suzuki Q3 profit up 3 percent; revenue, operational nos in line; cuts royalty payment

Indoco Remedies: The firm's Unit 1 in Goa inspected by USFDA in Jan 2018 received 8 observations

Avenue Supermarts Q3 net profit soars 66 percent to Rs 251.8 crore; revenues rise 23 percent.

LIC Housing Finance: The company’s Q3 net profit has fallen around 2 percent at Rs 491 crore.

JSPL: Net loss for Q3 trimmed to Rs 272.7 crore against Rs 453.3 crore year on year.

Macro Data

Among macro data in India, the annual GDP figures will be out next week along with as well as purchasing managers’ index (PMI) data.

On the global front, Japan will be releasing its industrial production data, along with Europe that will be declaring CPI expectations, among others. The US too will be declaring its employment data, which will be a metric to measure jobs scenario there.

Technical Factors

Bulls failed to keep the momentum going as Nifty50 snapped its 6-day winning streak on Thursday and made a ‘Hanging Man’ kind of pattern on the daily charts.

The index took support at its crucial 5-day’s exponential moving average (DEMA) before bouncing back. The index closed above 11,000 for the third day in a row.

A Hanging Man is a bearish reversal candlestick pattern which is usually formed at the end of an uptrend or at the top. In a perfect 'Hanging Man' pattern either there will be a small upper shadow or no upper shadow at all, a small body and long lower shadow.

“The near-term trend of Nifty as per smaller and larger timeframe is up and still there is no confirmation of any reversal pattern at the highs. Next important resistance to be watched is around 11,115 and 11,300 levels, which are 1.382 percent and 1.618 percent Fibonacci projections,” HDFC Securities said in a report.

It also said that Budget could lead the market for next week, but a top reversal is likely in the next 1-2 weeks. “The confirmation of top reversal pattern from the highs is likely to set the significance of reversal and quantum of expected weakness in Nifty the next couple of weeks,” the report added.

FII Data

The Street will watch out for cues from foreign institutional investors (FIIs). Interestingly, after five consecutive months of being net sellers, they have been net buyers for this month, buying around Rs 9,518 crore worth of shares so far this month.

Meanwhile, domestic investors have been net sellers of Rs 700 crore worth of shares.

Experts have earlier hinted how domestic liquidity has been driving the market ahead. With FIIs joining the party, they had also hinted at further highs on the market.

Oil movement

Crude oil prices touched USD 71 per barrel mark earlier this week, which, in some ways affected the market here. The trajectory of crude movement could likely impact the economy in India going forward, which in turn could affect the market as well.

Oil prices were firmer on Friday after hitting fresh three-year highs in the previous session, as weakness in the dollar continued to underpin prices with crude on track for a weekly gain.

"One has to question if this rally is sustainable. Downside protection is going to be warranted," said Brian LaRose, technical analyst at United-ICAP. Additionally, several experts have also spoken about demand getting reduced as well, which could possibly bring down these prices as well.

Auto sales

The new month will also signal auto sales figures for the month of January. Investors in auto stocks are on their feet, with the Nifty auto index falling over 1 percent. All major stocks have ended in the red, with auto ancillaries falling the most.

MORE WILL UPDATE SOON!!

Nifty likely to open with gap-up on Monday; likely to touch 11200-11300 ahead of Budget

The index is likely to hold the ground on the higher side till Budget unfolds and Nifty is likely to scale up towards 11200-11300 in the pre-budget rally.

  

The market witnessed a lot of action on the largecap front especially in IT, Banking and Metal sector which led Nifty to scale up above 11,000 and Sensex above 36,000 level.

Quarterly earnings growth is also on expected line which is giving comfort to the bulls.  The market looks little nervous ahead of the Budget especially on LTCG front and fiscal consolidation roadmap.

Most of the midcap stocks have witnessed profit booking and midcap index has corrected significantly ahead of the Budget.

We feel that the index is likely to hold the ground on the higher side till Budget unfolds and Nifty is likely to scale up towards 11200-11300 in the pre-budget rally.

Note: SGX Nifty closed 63 points higher at 11,137.

One should look to buy the stocks from the sectors which have shown a lot of expectation buildup for the forthcoming budget.

Sectors which are bullish on their long-term charts and have witnessed outperformance viz., sectors like Cement, Infrastructure, FMCG, and Automobiles are likely to exhibit bullishness ahead of budget as the near/short term charts are sustaining above breakout levels.

 Weekly and Monthly charts look positive and are forming a higher top, higher bottom formation indicating sustained uptrend. Weekly and monthly strength indicators are in positive territory, signifying sustained strength ahead.

Weekly chart pattern suggests that Nifty is likely to continue its uptrend in the short term and it can move towards 11,250-11,400 levels. However, on the downside 11,000-10,800 is likely to act as good support if any corrective action happens in the near-term

 Top 3-5 stocks which are looking attractive at current levels based on technical?

A) Technically private banks, Metal, FMCG, Fertilizer and IT space looks attractive for near-term play. We like HDFC Bank, Kotak Bank, VEDL, TATA Steel, ITC, HCL Tech, TechM, NIIT Tech from the above-mentioned space.

Escorts: CMP Rs 836.8| Target Rs 905| Stop Loss Rs 790| Time 8-15 days| Return 8%

Escorts is in up-trend across all the time frames forming higher top - higher bottom formation. Since June 2017, the stock was in major consolidation mode within Rs820-590 band on the weekly chart.

It gave breakout at Rs820 levels and is sustaining above the same. On the daily chart, the stock has given a breakout of up sloping trend line at Rs825 levels.

The stock is also sustaining above its 20, 50 and 100 and SMA which supports bullish sentiments ahead. Both weekly and monthly strength indicator such as RSI along with the momentum indicator Stochastic are in bullish territory.

Both are sustaining above their reference lines which signals strength and upward momentum in price. Thus, taking into consideration the above factors, the maximum upside can be expected to 890-905.

Vedanta Ltd: CMP Rs 345.4| Target Rs 370-376| Stop Loss Rs 325| Time 8-15 days| Return 9%

The most prominent observation on the price chart of Vedanta is that the entire consolidation underway since November 2017 till date has formed a Cup and Handle formation.

The breakout of this formation is witnessed at 345 levels on the daily chart. The stock is sustaining above its 20, 50, 100 & 200 day SMA which supports bullish sentiments ahead.

On the volumes front, the stock has witnessed a significant rise in breakout level indicating increased participation on the rally.

Both weekly & monthly strength indicator RSI is in bullish territory and sustaining above their reference lines which signals strength and upward momentum in price. Thus, taking into consideration the above factors, the maximum upside can be expected to 370-376.

Sudarshan Chemical Industries Ltd: CMP Rs 465.4| Target Rs 490-500| Stop Loss Rs 530| Time 8-15 days| Return 7.5%

The most prominent observation on the price chart of Sudarshan Chemical Industries is that the entire sideways consolidation underway since May 2017 till date has taken the shape of a "Horizontal Channel" continuation pattern formation.

The breakout of the "Horizontal Channel" continuation pattern formation was witnessed at 430 levels. The measuring implication of the price pattern i.e. the range of the consolidation (430-360 = 70 points) projected from the breakout level of 430 provides upside target of 490-500 approximately.

Stocks is sustaining above its 20, 50, 100 & 200 day EMA which supports bullish sentiments ahead. The stock is moving in higher Top higher Bottom formation across all the time frame indicating sustained uptrend. Volumes are significantly rising around breakout level.

Adani Ports: CMP Rs 436| Target Rs 460-470| Stop Loss Rs 418| Time 8-15 days| Return 7.8%

The stock has witnessed the breakout of symmetrical triangle pattern breakout on weekly chart at427 level. The stock was consolidating in range of 380-425 range since last three months.

The breakout of the Triangle pattern suggests stock can move towards 460-470 level in the short term. The stock is sustaining above all its important moving averages which support bullish sentiment ahead.

The weekly and the daily strength indicators are in positive territory which indicates the bullish trend to continue in short term.

MORE WILL UPDATE SOON!!

Budget 2018: Union Budget to keep market volatile; 3 stocks which can give up to 24% return

Here is a list of stocks which can give up to 24% return in 15-21 sessions:

  

During the last week, the benchmark indices hit another milestone as Nifty & Sensex registered a fresh all-time high of 11,110.10 & 36,268.19 levels respectively in Wednesday’s trading session.

However, in Thursday's session, traders decided to take some money off the table on the back of F&O expiry and the crucial event i.e. Union Budget.

Looking at the overall chart structure, Nifty had confirmed its breakout from a Rising Channel formation and resultant indices saw a sharp rally in past few weeks.

Now, the weekly RSI (14) has signaled medium term bearish divergence. Also, the 161.8% price extension of its entire move from the bottom of 850 to the top of 6357 which added to the bottom of 2253 comes near 11163.

The Brent Crude Oil crossed 70 marks and the Bond yield has started inching higher. In such scenarios, we advise traders to stay light with the position as the volatility likely to increase ahead of Union Budget.

On the index front, 10900 will act as an immediate support and any move below this level will pull index further lower towards 10780 / 10665 levels respectively.

Here is a list of stocks which can give up to 24% return in 15-21 sessions:

LIC Housing Finance: Buy at CMP 559| Target Rs627| Stop loss Rs535| Timeframe 15 to 21 sessions| Return 12%

Looking at the daily chart, the stock has formed a strong base near 540 – 535 zone and due to recent consolidation stock formed inverse head & shoulder pattern on daily chart.

The daily RSI (14) has signaled a probable range shift. Hence, we recommend traders to buy this stock at current level off Rs565 with a price target of Rs627. A Stop loss should be placed at Rs535 on a daily closing basis.

Motherson Sumi Systems Ltd: Sell around Rs370 – 375| Target Rs340| Stop loss Rs389| Time frame 15 to 21 trading sessions| Return 8%

Looking at the daily chart, the stock has been in a long-protracted uptrend since past several months and in that optimism, the stock hit a fresh all-time high of around Rs396.

Subsequently, stock saw mild profit booking which was followed by consolidation. As a result, the stock is forming a triangle pattern. The daily RSI (14) is struggling to cross 60 levels which doesn’t bode well for bulls.

Also, we are observing three-point bearish divergences on the weekly chart. Hence, we advocate traders to go short in this stock around Rs370-375 with a price target of Rs340 and a stop loss placed above Rs389.

Suven Life Sciences: Buy above Rs223| Target Rs268| Stop loss Rs196| Time frame 15 to 21 trading session| Return 24%

Looking at the weekly chart, the stock has confirmed its breakout from downward sloping trend line during mid-October 2017 which triggered a fresh buying interest.

In that optimism, the stock rallied towards 230. Subsequently, stock witnessed profit booking which led to gradual correction followed by consolidation.

Now, the daily chart has formed a Bullish Cup & handle pattern and the formation of handle formation is in process. The said pattern will be confirmed once stock breaches the Rs223 levels.

In that case, we expect an acceleration of bullish momentum and stock likely to rally towards Rs 268. A stop loss should be placed below Rs 196.

MORE WILL UPDATE SOON!!

Budget 2018: Short coverings ahead of the Budget could push Nifty towards 11,200

In case of no negative surprise, Nifty would continue to form base near 11,000 and this uptrend should continue. However, there has been some weakness seen in the midcap space which is not visible looking at the Nifty prices.

The Nifty has started closing above 11,000 levels amid some volatility. Before Budget announcement on February 1, we can see further short covering which can take Nifty higher towards 11,200.

In case of no negative surprise, Nifty would continue to form base near 11,000 and this uptrend should continue. However, there has been some weakness seen in the midcap space which is not visible looking at the Nifty prices.

The reason being the market participants were quite overboard on the midcaps instead of largecap stocks. This is where profit booking is quite visible in this space before the major Budget announcement.

The support from private banking and other non-banking heavyweights is continued. The first leg of profit booking was seen in IT heavyweights after continuous move in January series. These stocks are expected to pick up momentum back after a while.

The volatility has risen before the event. This is the same pattern what was seen before the last budget announcement in 2017.

After the Budget in 2017, volatility had cooled-off quite sharply from 17 percent to 12 percent within few sessions. We believe the same decline may be seen this time around in absence any major event after this.

The roll spread in Nifty turned negative from 25 points on the expiry day which shows rollover of short positions in the index. Sustainability of Nifty above 11000 post-budget should lead to short covering in the index.

Nifty Bank:

After re-writing history books, the Bank Nifty index ended at a new life high by moving above 27000 levels in the January series with broad-based participation in private as well as public sector banks.

Participants booked marginal profits in PSU stocks after the government moves to infuse more Capital.

The intraday volatility can be high ahead of the Union Budget 2018 and sharp intraday whipsaws can be seen going ahead as the volatility index has seen its sharpest up-move in the last few months and rose to 18 percent from 11 percent.

Rollovers were in line with the expectations and the short rolls is also seen for the February series. We feel in case of any major fall, this short positions will be covered which will further provide a cushion to the index and in absence of any negativity from the budget, we feel the index is likely to witness support near 26900 levels.

The current price ratio (BankNifty/Nifty) is near 2.47 levels. We feel the ratio is likely to move towards 2.52 levels on the back of outperformance in banking stocks whereas, on the lower side, support for the same can be seen near 2.43 levels.

Risk-on sentiment continues to drive FIIs inflows:

Melt up in equities continues unabated with MSCI world Index up 7 percent in 2018 (1.5 percent in a current week) and MSCI EM Index up 9 percent in 2018 (2 percent in a current week).

Money flow has strongly supplemented this flow as bond markets continue to grapple with higher bond yields and the bulk of incremental fund flows are seen in equity segment and that holds true for emerging markets as well.

YTD inflows in Indian equities have aggregated close to the US $ 1.6 billion already (1.1 billion in last 5 days) and other EM-like Taiwan & South Korea also has seen inflows of US $ 2.5 billion each.

In the F&O segment as well, there was bullish stance by FIIs, as they bought Index Futures worth over the US $ 100 million and Stock futures worth in the US $ 750 million.

Despite India VIX moving to 18 levels, there was option selling worth over the US $ 850 million, suggesting a bet on a strong January series expiry).

Rise in yields in the bond market has still not made inroads into long-dated part of the curve (e.g. US 30Yr) (where major bond portfolio lies) and hence the weak dollar story continues to ramp up strong EM FX and resultant strong EM equities.

This trade is strongly anchored into Dollar weakness and as long there is no swift and sharp reversal to dollar strength, the EM risk-on rally will continue to have a strong tailwind.

However, the key risk for the equity segment remains the sharp up move in 2018 already (the current rally has the strongest start to any year in a long time frame) and some profit taking around current levels.

MORE WILL UPDATE SOON!!

Free Share Market Intraday Tips for NSE 29th January 2018

DO NOT TRADE BEFORE 9:30 AM and do not Buy or Sell if the Buy above or sell below rates are not reached. Violation of the same may lead to losses. PLEASE READ THE INSTRUCTIONS PROVIDED IN THE LEFT SIDE before using this tips for trading.

MORE WILL UPDATE SOON!!

Stock Watch: 29 Jan - 2 Feb 2018--International Market

Expect to hear about the Brexit effect when recruitment agency SThree (STHR) posts its full-year results on Monday. A year on from the Brexit vote SThree, which provides specialist recruitment services in the science, technology, engineering and mathematics (STEM) industries, said the slowdown in hiring activity in the UK was weighing heavily on the market for City investment banking jobs.

  

It wasn’t alone then and it’s not alone now. According to the CBI/PwC Financial Services Survey just released, optimism in the financial services sector fell for the third consecutive quarter in 2017 in the three months to December,

While Brexit uncertainty still hangs heavily over the City of London, it will be interesting to see how the group has fared overall. Around 80% of its profits have typically been generated outside the UK and Ireland, from Europe and the US.

The collapse of Monarch and Air Berlin brought the potential fragility of Europe-based airlines in an over-crowded market to the forefront. So all eyes will be on Flybe Group (FLYB) which is due to give its trading update on Wednesday.

Back in October shares in the Exeter-based budget airline group fell 20% after it posted its second profit warning in a year. Blaming an over-supplied European market, it said first-half pre-tax profits would be in the range of £5 million to £10 million, down from a consensus estimate of £15 million. This compares with a £15.9 million adjusted pre-tax profit a year ago.

Over supply doesn’t appear to be bothering Jozsef Varadi though. So it will interesting to hear more of his plans when his Budapest-based low-cost carrier, Wizz Air (WIZZ), posts Q3 results on Wednesday. Varadi intends to go from the current 87 or so aircraft Wizz operates, to around 250 after securing a multi-billion dollar aircraft order in November.

Calling the move away from the traditional sales and leaseback model and into aircraft ownership a “game changer”, he said the move would make Wizz even more competitive. And competition is the name of the game.

When the final jet from the order is delivered in 2026 there will be around 250 aircraft in the Wizz fleet and that will have the company snapping at rival easyJet’s tailfins, in terms of aircraft numbers.

But aircraft numbers and easyJet aren’t its only targets. It also has an eye on filling the gap left behind by Monarch and AirBerlin, with plans to cash-in on the growing number of central and eastern European travellers. That will put it in direct competition with Ryanair.

Wizz wants to increase its own capacity by 23% by the end of 2018 and one way it could do this is by bidding for the four aircraft spaces left empty by Monarch at London Luton airport, where Wizz Air opened a UK base last year. Each space would give it scope to add between 20 and 24 additional routes from the UK to Europe.

Analysts at Investec are forecasting full-year pre-tax profits of £261 million to March 2018, up from £207 million in 2017.

You may not have heard of AIM-quoted Angle (AGL), but that could be about to change if its Parsortix system, which measures cancer levels in later stage prostate cancer sufferers, becomes widely used.

With one in three people worldwide expected to develop some form of cancer in their lifetime and over 90% of deaths actually arising from secondary cancers, the race is on to find ways to stop cancers spreading.

This is where Angle’s Parsortix system comes in. It is designed to be a companion diagnostic for major pharmaceuticals companies in helping to identify patients that will benefit from particular drugs that stop, or at least slow, the metastasis.

As well as cancer, Angle says its technology has the potential to be with several other important cell types in the future.

Staying with biotech and the treatment of cancer, on Tuesday we get full-year results from Oxford BioDynamics (OBD).This is another AIM-listed biotech company that works on the discovery and development of biomarkers. Earlier this month it signed a second agreement with a major US biopharmaceutical company to extend its development of predictive biomarkers for immuno-oncology (IO) therapies. These work by equipping the body's immune system with the tools to kill cancer cells.

So far, Oxford BioDynamics has entered into four agreements to discover and develop predictive biomarkers for IO therapeutics - two with pharmaceutical companies, one with a major US healthcare concern and the latest agreement with a major US biopharmaceutical company.  Its shares have risen almost 35% in the past year.

Then on Friday we hear from pharmaceuticals giant AstraZeneca (AZN).Its full-year results will give us an update on its many medicines with the potential to generate big sales, as well as those which more bearish analysts place no value on in the immune-oncology pipeline. Something of a Marmite stock, fans remain convinced that at least one of its cancer drugs in the late stage of development will kick-start an earnings recovery. We’ll have to wait until Friday to see whether the bulls or the bears are right.

Key company announcements in the week ahead 

Monday

Petra Diamonds Ltd (PDL)

Yu Group (YU.)

Conviviality (CVR)

Porvair (PRV)

SThree (STHR)

Tuesday

Domino’s Pizza group (DOM)

Oxford Biodynamics (OBD)

Filtronic (FTC)

PZ Cussons (PZC)

Wednesday

Angle (AGL)

Best of the Best (BOTB)

Joules group (JOUL)

Wizz Air Holdings (WIZZ)

Flybe Group (FLYB)

Britvic (BVC)

SSE (SSE)

Thursday

Royal Dutch Shell (RDSA and RDSB)

Rank Group (RNK) AG Barr (BAG)

Glencore (GLEN)

3i Group (III)

Friday

BT group (BT.A)

AstraZeneca (AZN)

Gem Diamonds Ltd (GEMD)

MORE WILL UPDATE SOON!!

Penny Stocks to Watch for January 2018:International Markets

Penny stocks limped into December, under performing other investments, with the majority of speculative capital pouring into red-hot blockchain and cryptocurrency plays. Small baskets of low-priced biotech and industrial metals lifted to monthly highs but the majority just ran in place or ticked lower, grinding through multi month consolidation patterns or entering new downtrends.

  

Sierra Oncology, Inc. (SRRA)

SRRA

Sierra Oncology Inc

3.44

+5.85%

 

posted the most substantial gains on the December watch list, rising more than 30% to an 18-month high. That stock and four previous picks have been added to January’s penny stocks list because their technicals continue to forecast even higher prices. Also, the first penny stocks to watch list for 2018 includes three perennial laggards who have recently shifted out of traditional operations into blockchain technology. Keep in mind these are highly volatile issues that require well-honed risk management skills to avoid steep and painful losses.  

January will signal the most favorable seasonality of the year for small caps and low-priced stocks. The prior year’s laggards and beaten down issues often post their strongest yearly gains in the first quarter, for two reasons. First, tax loss selling ends on December 31, allowing weak performers to float higher. Second, winners get sold with equal fervor in January as market players take profits to incur capital gains exposure, often rotating into more speculative plays.

Penny Stocks to Keep Watching

1. Medical Transcription Billing, Corp. (MTBC)

MTBC

Medical Transcription Billing Corp

3.90

+8.63%

 

Medical Transcription Billing, Corp. (MTBC)

MTBC

Medical Transcription Billing Corp

3.90

+8.63%

 

entered a steep decline after coming public at $5.00 in July 2014, posting lower lows into the second quarter of 2017 when it finally bottomed out at 29-cents. It surged to $3.84 less than three weeks later and pulled back, consolidating gains into a failed October breakout attempt. The stock has spent the last three months grinding sideways in the upper third of the 9-month trading range while the 200-day EMA continues to tick higher, predicting that resistance will break and lift the uptrend into an all-time high.

2. EVINE Live, Inc. (EVLV)

EVLV

EVINE Live Inc

1.30

-2.26%

 

EVINE Live, Inc. (EVLV)

EVLV

EVINE Live Inc

1.30

-2.26%

 

rallied to a 4-year high at $8.73 in 2011 after dropping to an all-time low at 18-cents during the economic collapse. That level marked resistance at the top of a rectangle pattern that broke support at $1.40 in January 2016. The stock fell into a higher low at 41-cents in September 2016 and turned higher, reversing at the breakdown level into 2017, It bounced at 90-cents in August and is testing resistance once again, with a breakout predicting excellent upside that could test double digits.

3. Sierra Oncology, Inc. (SRRA

SRRA

Sierra Oncology Inc

3.44

+5.85%

 

Sierra Oncology, Inc. (SRRA)

SRRA

Sierra Oncology Inc

3.44

+5.85%

 

posted an all-time high at $33.75 during its IPO session in July 2015 and turned sharply lower, dropping to an all-time low at $1.10 in June 2017. Committed buyers took control in July, generating an uptrend that’s nearly quadrupled the stock’s price in just six months. The rally is now filling the June 2016 gap between $6.70 and $2.96, raising odds for healthy upside into the fill price in coming months. On Balance Volume (OBV) has already reached an all-time high, predicting that price will continue to play catch-up.

4. Ladenburg Thalmann Financial Services, Inc. (LTS)

LTS

Ladenburg Thalmann Financial Services Inc

3.13

+1.95%

 

Ladenburg Thalmann Financial Services, Inc. (LTS)

LTS

Ladenburg Thalmann Financial Services Inc

3.13

+1.95%

 

 rallied to a 15-year high at $4.50 in October 2014 and entered a decline that posted lower lows into November 2016 when it bottomed out at $1.63. The stock bounced into range resistance at $2.80 one month later and pulled back, grinding out a higher low above $2.00 in May 2017. It broke out in October and has been crisscrossing resistance near the November 2015 high at $3.28 for the last 6-weeks. A buying spike above $3.50 should clear this obstacle, opening the door to a test of the 2014 high.

5. Limelight Networks, Inc. (LLNW)

LLNW

Limelight Networks Inc

4.36

+1.63%

 

Limelight Networks, Inc. (LLNW)

LLNW

Limelight Networks Inc

4.36

+1.63%

 

posted an all-time low at 90-cents in February 2016 and entered a new uptrend that remounted broken range support at $2.00 after the presidential election. The rally reached the 2015 high at $4.43 in October 2017, yielding a breakout that now favors additional upside into the 2010 high at $8.97. The uptick stalled above $6.00 in November, generating a decline that’s just filled the October breakaway gap at $4.50. This price action may signal a low-risk buying opportunity, ahead of a bounce that resumes the strong uptrend.

6. Nova Lifestyle, Inc. (NVFY)

NVFY

Nova Lifestyle Inc

2.40

+0.42%

 

Nova Lifestyle, Inc. (NVFY)

NVFY

Nova Lifestyle Inc

2.40

+0.42%

 

recently formed I Design Blockchain Technology, Inc., a wholly-owned subsidiary. The furniture maker came public at $2.05 in January 2013 and posted an all-time high at $10.35 one year later. The subsequent decline accelerated into July 2016, dumping the stock to an all-time low at 38-cents while a bounce into October ended at $5.15. It carved a higher low in the summer of 2017 and spiked to yearlong range resistance at $2.75 after the magical transformation, with a breakout favoring continued upside into last year’s high.

7. Long Blockchain, Corp. (LTEA)

LTEA

Long Blockchain Corp

6.44

-2.28%

 

Long Blockchain, Corp. (LTEA)

LTEA

Long Blockchain Corp

6.44

-2.28%

 

 formerly known as Long Island Iced Tea, Corp., rallied to $15.00 in February 2015 and sold off, finding support near $3.60 in 2016. It broke down in September 2017, dropping into December’s multi-year low at $1.70 just a few days before its name change triggered a furious pre-market rally into the mid-teens, testing the prior high. The stock opened the regular session in single digits and has been pulling back since that time. A Fibonacci grid stretched across the vertical uptick predicts a buying opportunity at the .786 retracement level near $3.40. As of Dec. 29, the stock is hovering just below the $5.00 penny stock threshold, it may not be a penny stock for long. 

8. Nxt-ID, Inc. (NXTD)

D

Dominion Energy Inc

75.50

-1.55%

 

Nxt-ID, Inc. (NXTD)

NXTD

Nxt-ID Inc

2.32

-0.43%

 

joined the blockchain bandwagon on December 20 when it announced the development of a cryptocurrency payment platform. It came public at $30 in 2013 and posted an all-time high at $72.50 one month later. A decline accelerated into December 2015, dropping the stock to $1.60 ahead of even lower lows into November 2017. A vertical rally spike and deep pullback followed the blockchain news while a Fibonacci grid stretched across the uptick predicts a buying opportunity at the .786 retracement level near $2.75.

9. Viking Therapeutics, Inc. (VKTX)

VKTX

Viking Therapeutics Inc

5.63

+11.93%

 

Viking Therapeutics, Inc. (VKTX)

VKTX

Viking Therapeutics Inc

5.63

+11.93%

 

came public at $8.50 in April 2015 and topped out at $10.00 just one month later. The subsequent downtrend found support just under a buck in November 2016, yielding an August 2017 test that completed a bullish double bottom reversal. Buying power exploded in September, lifting the stock into December’s 2-year high at $4.40. It’s been consolidating gains in a narrow trading band for the last three weeks and could head higher in January, lifting toward broken 2015 range support near $5.70.

10. Aptevo Therapeutics, Inc. (APVO)

APVO

Aptevo Therapeutics Inc

3.37

+0.60%

 )

Aptevo Therapeutics, Inc. (APVO)

APVO

Aptevo Therapeutics Inc

3.37

+0.60%

 

spiked up to $50 shortly after entering the public exchanges at $8.00 in July 2016 and settled into a downtrend that found support at $1.75 in the first half of 2017. It broke down in August, dropping to an all-time low at $1.15 and remounted broken support in September, setting off fresh buying signals. The subsequent uptrend reached a 16-month high at $4.50 in early December and eased into a high tight pennant that could generate fresh upside to $7.50.

MORE WILL UPDATE SOON!!