Published on 20/03/2017 9:00:34 AM | Source: Religare Securities Ltd
Suggest focusing more on the auto, banking & NBFCs for fresh buying alongside with select FMCG & capital goods counters- Religare Sec
Markets settled almost unchanged in a volatile session today as participants preferred to book some profit taking at higher levels. The news of GST Council clearing important legislations combined with firm global cues led a gap up start, but soon it fizzled out as traders opted to book some profit after the recent surge. Mostly sectoral indices traded in line with the benchmark and closed flat.
Almost all the sectoral indices are participating in the rally so far but we still prefer auto, banks and NBFCs over others, at least in the short run. Select stocks from the FMCG and capital goods space also look upbeat. Traders should align their positions accordingly and go for staggered buying.
* The Goods and Services Tax (GST) Council cleared a proposal to cap the cess on tobacco and cigarettes. The cap would be 290% or Rs. 4,170 per 1,000 cigarette sticks, or a combination of the two. Stocks of ITC, VST Industries and Godfrey Phillips closed up 1.5-7.5%.
* A parliamentary panel - Committee on Petitions, suggested the merger of state-run telecom firms BSNL and MTNL for their long-term survival. MTNL stock price closed up 2.9%.
* United Bank of India announced that it will receive capital allocation of Rs. 418 Cr from the Government of India, as a part of turnaround linked capital infusion plan. The bank’s stock closed up by 7%.
Religare Super Ideas
Buy JK Tyre & Industries Limited @128-130 Stoploss 123 Target 144 CMP 129.45
Buy Kesoram Industries Limited @ 145-147 Stoploss 140 Target 160 CMP 146.10
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