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Published on 7/05/2019 9:16:29 AM | Source: Religare Securities Ltd

Nifty may inch further lower if it fails to hold 11,600 - Religare Securities

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

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Nifty Outlook

Markets started the week on feeble note and lost nearly a percent. Weak global cues led gap down start and failed to see any respite till the end. Mostly sectoral indices traded in line with the benchmark index and closed lower.

The news of brewing trade tension between the US and China has again fuelled the possibility of tariff war. Markets are already under stress, in absence of positive trigger and such reports deteriorate the sentiment further. We advise keeping limited exposure and waiting for clarity. Nifty may inch further lower if it fails to hold 11,600. 

 

Stock In News

* First source solutions reported Q4FY19 consolidated revenue at Rs 967cr, down by 1.8% QoQ and up by 0.7% QoQ on constant currency basis. EBIT for the quarter grew by 2.1% QoQ to Rs 120cr while margin came in at 12.4%. PAT growth on sequential basis stood flat at Rs 98cr.

* Mahindra CIE Automotive’s Q4FY19 consolidated revenue grew by 9% YoY to Rs 2,174cr. On operational front, EBITDA grew by 9% YoY to Rs 283cr while margin stood flat at 13%. The company reported PAT growth of 17% YoY at Rs 154cr led by higher other income.

* Marico’s Q4FY19 consolidated revenue grew by 8.7% YoY to Rs 1,609cr. On operational front, EBITDA grew by 12% YoY to Rs 283cr while margin expanded slightly by 56bps to 17.6%. Net profit nearly doubled to Rs 405cr, because of tax credit of Rs 188cr in the quarter. However, profit before tax grew by 11% YoY to Rs 274cr. 

 

Religare Super Ideas

Voltas Limited (VOLTAS)

Buy Voltas Ltd @ 597-602 Stop Loss 585 Target 635 CMP 606.05

VOLTAS, after the recent surge, has been consolidating in a range for last two months while forming a strong base around 50 day EMA on daily chart. Indications are in the favour of fresh up move in near future. We advise accumulating fresh longs in the given range. 

Asian Paints Limited (ASIANPAINT)

SELL FUTS Asian Paints Ltd @ 1430-1440 Stop Loss 1465 Target 1360 CMP 1423

ASIANPAINT has been inching lower for last one month, after retesting its record high. It has formed a fresh shorting pivot and likely to see sharp decline in near future. We suggest using bounce to initiate fresh short in the given range.

 

Derivative Ideas

BALKRISIND

added around 8% in open interest as short buildup was seen in it in previous session. Current chart pattern also indicates further down move in its price. We suggest SELLING BALKRISIND FUTS as per below levels.

Strategy:- Sell BALKRISIND FUTS Between 878-880, Stoploss at 889, Target at 855.

 

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