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Published on 15/05/2019 9:14:36 AM | Source: Religare Securities Ltd

We advise investors to focus on fundamentally sound companies - Religare Securities

Posted in Market Outlook| #Market Outlook #Religare Securities Ltd

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Nifty Outlook

After opening on a flat note amid weak global cues, the Indian equity indices recovered sharply post nine sessions of continuous decline. The Nifty index traded range-bound before touching day’s high of 11,295 in the second half and closed higher by 0.7% at 11,222 (up 74 points). The broader market indices - BSE-Midcap and Smallcap too ended higher by 0.6% and 0.3% respectively. Amongst the sectoral indices IT witnessed correction, while buying interest was seen across all the other sectors with Telecom, Oil & Gas and Capital Goods gaining the most in the range of 1.2-2.8%.

We have a cautious outlook on the markets in the near-term given the recent escalation in US-China trade war. On the domestic front too, mixed corporate earnings as well as speculations regarding central election outcome would continue to induce volatility in the markets. Further, Oil price and currency movement will also keep investors on guard. Hence, we advise investors to focus on fundamentally sound companies with reasonable valuations and traders should hedge their positions. 

 

Stock in News

Siemens’ Q2FY19 revenue grew by 8% YoY to Rs 3,550cr. EBITDA grew by 27% YoY to Rs 410cr while margins expanded by 172bps to 11.6%. Profit for the quarter grew by 28% YoY to Rs 280cr. New orders for the quarter stood at Rs 3,635cr, up by 24% YoY. (The company follows October-September financial year).

* Westlife Development reported Q4FY19 consolidated revenue at Rs 339cr, up by 12% YoY. EBITDA grew by 35% YoY to Rs 25cr while margins expanded by 125bps to 7.3%. Profit for the quarter came in at Rs 7cr. The profit growth was restricted to 8% YoY on account of higher finance cost and lower other income.

* Cera Sanitaryware’s Q4FY19 standalone revenue grew by 14.5% YoY to Rs 413cr. On operational front, the company reported good set of numbers as EBITDA grew by 25% YoY to Rs 64cr, while margins expanded by 132bps to 15.4%. Profit for the quarter grew by 24% YoY to Rs 38cr. 

 

Religare Super Ideas

State Bank of India (SBIN)

BUY State Bank of India Limited @ 309-313 Stop Loss 302 Target 330 CMP 314.65

Unlike other PSU banking majors, SBIN has been trading strong while holding firmly above the support zone of major moving averages. It has recently tested crucial support zone around 290 and rebounded sharply thereafter. The chart pattern combined with positioning of oscillators is pointing towards strong up move in near future. We advise initiating fresh longs in the given range. 

Strides Pharma Science Limited (STAR)

SELL FUTS Strides Pharma Science Limited @ 445-450 Stop Loss 465 Target 410 CMP 439.95

In line with other pharma counters, STAR has also witnessed sharp decline of late and looks weak overall. Besides, it’s trading on the verge of breakdown from a consolidation pattern. We recommend using any bounce to create fresh shorts in the given range.

 

Derivative Ideas

CIPLA

added around 6.2% in open interest as long buildup was seen in it in previous session. Current chart pattern also indicates further upmove in its price. We suggest buying CIPLA MAY FUTURES as per below levels.

Strategy:- Buy CIPLA MAY @554-555, Stoploss at 547, Target at 570.

 

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