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Published on 17/05/2019 9:05:37 AM | Source: Religare Securities Ltd

Markets are trading volatile, awaiting the outcome of general elections - Religare Securities

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

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Nifty Outlook

Markets managed to post decent gains and settled around the day’s high amid mixed cues. The first half was dull as widening trade deficit data and possible delay in monsoon was weighting on the sentiment. However, tone changed in latter half with sharp recovery in select index majors which aided the benchmark to end around the day’s high.

Markets are trading volatile, awaiting the outcome of general elections and tracking mixed global cues. We do not see this changing any time soon thus advice limiting leveraged trades. Nifty has immediate hurdle at 11,300 and its breakout would trigger further recovery else decline may resume.

 

Stock in News

Hindalco announced its standalone plus Utkal Alumina Q4FY19 results, wherein revenue grew by 6.5% YoY to Rs 12,455cr. On operational front, EBITDA declined by 4% YoY to Rs 1,733cr while margins contracted by 160bps to 13.9%. Net profit for the quarter de-grew by 18% YoY to Rs 506cr.

* Bank of India reported Q4FY19 NII at Rs 4,044cr, up by 58% YoY. Net profit came in at Rs 252cr against a loss of Rs 3,969cr in Q4FY18. Asset quality improved as GNPA and NNPA for the quarter stood at 15.84% and 5.61% vs 16.31% and 5.87% in Q3FY19. Provisions for the quarter were at Rs 1,897cr, down 79% QoQ and 72% YoY.

* Bajaj Finance Q4FY19 consolidated revenue grew by 52% YoY to Rs 5,308cr. NII stood at Rs 3,395cr, up by 50% YoY. The company reported highest ever quarterly profit of Rs 1,176cr, a growth of 57% YoY even as loan losses and provisions grew by 80% YoY to Rs 409cr.

 

Religare Super Ideas

REC Limited (RECLTD)

BUY REC Limited @ 134-135 Stop Loss 131 Target 142 CMP 135.55

We’re reiterating our long recommendation on RECLTD with the updated levels as it was not initiated in the previous session. 

Hero MotoCorp Limited (HEROMOTOCO)

BUY 2600CE Hero MotoCorp Limited @ 48-52 Stop Loss 35 Target 80 CMP 57

HEROMOTOCO has been hovering in a congestion zone, after witnessing decent correction from its record high. Considering its chart pattern and existence of crucial support zone, we expect possible rebound in near future. We advise traders creating fresh longs through Call option in the given range.

 

Derivative Ideas

UJJIVAN

added around 18% in open interest as long buildup was seen in it in previous session. Current chart pattern also indicates further up move in its price. We suggest buying UJJIVAN in cash as per below levels.

Strategy:- Buy UJJIVAN between 315-318, Stoploss at 308, Target 345.

 

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