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Published on 16/08/2019 10:21:22 AM | Source: Religare Securities Ltd

We expect the markets to remain volatile in the near term and maintain our cautious stance - Religare Securities

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

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Nifty Outlook

The Indian equity benchmark indices rebounded in Wednesday’s session and ended positive amid supportive global cues. The Nifty index opened in the green and traded with positive bias throughout the session, touching an intra-day high of 11,078, before closing up 1% at 11,029 levels. Amongst the broader market indices, BSE Midcap and Smallcap ended higher by 0.9% and 0.5%, respectively. Barring Healthcare, which witnessed selling pressure, all the other sectoral indices ended in the green with Metals, Banks, Capital Goods and Oil & Gas being the top gainers, up 1-2.7%.

We expect the markets to remain volatile in the near term and maintain our cautious stance. Further, in the absence of any fresh domestic triggers as well as the end of earnings season, investors will take cues from global developments. Market participants would keep a watch on the movement of crude oil price and rupee/dollar. Besides positive progress on US-China trade talks would boost investors sentiments. Given the uncertainty, we advise investors and traders to maintain stock-specific approach and avoid risky trades.

 

Stock in News

Grasim’s Q1FY20 consolidated revenue rose by 4.4% YoY to Rs. 5000 cr, while its net profit fell by 69% YoY to Rs 202 cr due to one-time loss of Rs 290 cr with respect to its investment in Aditya Birla Payments Bank that ceased operations last month.

Wockhardt’s Q1FY20 consolidated revenue de-grew by 14.2% at Rs 871.2 cr YoY, while it loss narrowed to Rs 45 cr from Rs. 89.2 cr in Q1FY19. During the quarter, it repaid Rs 351 cr towards various long-term debt obligations and current outstanding debt stood at Rs 2,119 cr.

US-based Kora Management, an existing investor, has committed to invest US$75 million (around Rs 525 cr) in Edelweiss Global Investment Advisors (EGIA) subject to structuring. It plans to make additional investment of US$50 million (around Rs 350 cr) at a later stage.

 

Religare Super Ideas

Kajaria Ceramics Limited (KAJARIACER)

Buy Kajaria Ceramics  Ltd @478-482  Stoploss 470  Target 505  CMP 484.45

KAJARIACER has been hovering in a range for past three weeks or so, after the sharp decline and looks upbeat for a rebound. The chart pattern combined with positioning of the confirmation indicators is adding to the positivity. We advise initiating fresh longs as per the given levels.

 

LIC Housing Finance Limited (LICHSGFIN)

Sell Aug Fut  LIC Housing Finance Ltd @484-487 Stoploss 498  Target 460  CMP 481.55

LICHSGFIN has been struggling below the resistance zone of 200 EMA on daily chart and formed a fresh shorting pivot. We advise using any bounce to initiate fresh shorts as per the recommended levels.

 

Derivative Ideas

MANAPPURAM added around 20% 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 MANAPPURAM in cash as per below levels.

Strategy:- BUY MANAPPURAM BETWEEN 116-118, STOPLOSS AT 113, TARGET 127.

 

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