Published on 20/05/2019 9:21:13 AM | Source: Religare Securities Ltd

Traders should prefer hedged trades and avoid overtrading - Religare Securities

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

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Nifty Outlook

Markets showed tremendous strength and gained nearly one and half percent amid mixed cues. Participants took note of Finance Commission’s report which states that India’s GDP shows sign of continue growth despite volatile global trend. Besides, encouraging earnings announcements further boosted the sentiment. Mixed trend was witnessed on sectoral front wherein media, FMCG, auto and bank posted decent gains while IT, pharma and metal ended lower.

Markets will react to exit polls in early trade on Monday and that could set the tone for the rest of the day as well. Besides, the prevailing negotiations between the US and China would also be on the traders’ radar. In short, we expect volatility to inch higher. Traders should prefer hedged trades and avoid overtrading. 


Stock in News

* Bajaj Auto reported Q4FY19 standalone revenue at Rs 7,395cr, up 9% YoY led by 14% increase in volumes. On operational front, EBITDA de-grew by 13% YoY to Rs 1,162cr, while margins contracted by 388bps to 15.7%. Profit for the quarter grew by 21% YoY to Rs 1,305cr on account of exceptional gain of Rs 342cr related to reimbursement of NCCD paid to the government earlier.

* Indian Oil Corp’s Q4FY19 revenue de-grew by 9.8% QoQ to Rs 1,26,214cr. Its EBITDA grew by 202% QoQ to Rs 10,876cr while margins expanded by 600bps to 8.6%. Profit for the quarter grew by 750% QoQ to Rs 6,099cr led by higher other income.

* Arvind reported Q4FY19 consolidated revenue at Rs 1859cr, up by 1% YoY. Its EBITDA grew by 4% YoY to Rs 184cr while margins improved by 34bps to 9.9%. PAT de-grew by 41% YoY to Rs 64cr on account of profit from discontinued operations (engineering and branded apparels) in the base quarter. Profit from continued operations grew by 8% YoY. 


Religare Super Ideas

Marico Limited (MARICO)

BUY Marico Limited @ 355-358 Stop Loss 348 Target 375 CMP 360.45

MARICO has surged strongly today i.e. on 17 May, after hovering in a narrow range around its support zone of multiple moving averages on daily chart. The chart pattern and confirmation indicators are pointing towards positive momentum to continue ahead. We advise initiating fresh long positions as per the mentioned zone.

Larsen & Toubro Limited (LT)

BUY 1380 CE Larsen & Toubro Limited @ 25-28 Stop Loss 20 Target 44 CMP 31.50

LT has been consolidating in a broader range 1200-1450 for more than a year now, while holding firmly above its support zone of 100 EMA on weekly chart .Today i.e. on May 17, it has surpassed the hurdle of multiple moving averages on the daily chart, with noticeable rise in volume. We advise initiating fresh longs through Call option in the given range.


Derivative Ideas


added around 15% 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 GODREJIND in cash as per below levels.

Strategy:- Buy GODREJIND between 443-445, Stoploss at 435, Target 470.


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