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Published on 8/11/2019 9:26:11 AM | Source: Religare Securities Ltd

We remain cautious on the markets as it is hovering near its peak levels - Religare Sec

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

Nifty Outlook

The Indian markets witnessed highly volatile trading session and ended on a positive note. The Nifty index opened gap up and traded range bound throughout the day. Finally, the index ended 0.4% higher at 12,012. Amongst the broader markets, BSE Midcap and BSE Smallcap too ended in the green with gains of 0.7% and 0.5%, respectively. On the sector front, mixed trend was witnessed wherein Consumer Durables, Metals and Realty were the top gainers while Auto, Capital Goods and Oil & Gas were the laggards.

We remain cautious on the markets as it is hovering near its peak levels, consequently some consolidation can be expected in the near term. On the domestic front, investors’ sentiments were boosted by recent government booster for real estate, which is also likely to benefit sectors like Banks and NBFC’s going forward. Globally market participants would keep an eye on progress on trade talks between US-China. 

 

Stock In News

* Sun Pharma’s Q2FY20 revenue rose by 17% YoY to Rs 8123cr driven by robust sales in India and Rest of the world. Its EBITDA jumped 17% YoY, while margin remained flat. Further, the company reported profit of Rs 1,065cr as against loss of Rs 270cr in Q2FY19 (one-time loss of Rs 1,214cr with respect to Modafinil antitrust litigation).

* GSK Consumer reported revenue of Rs 1,345cr which grew by 5.7% YoY in Q2FY20. Its EBITDA was up 12% YoY at Rs 396cr as against Rs 354cr in Q2FY19. PAT went up 25% YoY at Rs 345cr.

* Power Grid’s consolidated revenue for Q2FY20 grew by 4.8% YoY to Rs 8,685cr. On operational front, its EBITDA was up 8.3% YoY to Rs 7,557cr. PAT for the quarter grew by 9.7% YoY at Rs 2,527cr.

 

Religare Super Ideas

REC Limited (RECLTD) 

Buy REC Ltd @ 142-143 SL 138 Target 152 CMP 142.80

RECLTD has swiftly rebounded of late after testing its major support zone of 200 EMA on weekly chart. Also, it has surged strongly today i.e. on Nov 7 supported with noticeable rise in volume, indicating positive momentum to continue ahead. We thus suggest traders to initiate fresh long position as per the mentioned zone.

 

Motherson Sumi Systems Limited (MOTHERSUMI) 

Buy Motherson Sumi Systems Ltd @ 132-133 SL 128 Target 142 CMP 134.20

We’re seeing recovery in Auto space and MOTHERSUMI is also following the trend. It has recently posted a fresh breakout from its resistance hurdle of 200 EMA on daily chart and gradually inching higher. Indications are in favour of fresh surge ahead. We advise initiating fresh longs in the given levels.

Derivative Ideas

BERGEPAINT added around 6% 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 BERGEPAINT in cash as per below levels.

Strategy:- BUY BERGEPAINT BETWEEN 500-505, STOPLOSS AT 492, TARGET 530.

 

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