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The bulls continued to dominate, as the equity benchmark indices registered fifth straight session of gains, largely on hopes of a dovish RBI monetary policy tomorrow. The Nifty index opened gap up and traded on a strong note throughout the session before closing near the day’s high at 11,062 levels, up 1.2%. The broader market indices continued their underperformance, with BSE Midcap reporting marginal losses and BSE Smallcap closing flat. On the sectoral front, barring Consumer Durables and Power, which ended in the red, healthy buying was witnessed across all the other sectors, with Metals, Oil & Gas, Auto & IT being the top gainers, up 1-2.5%. Globally, the European markets were trading on a weak note. We remain cautiously optimistic on the markets in the near term. Tomorrow’s RBI monetary policy will provide further direction to the markets. The recent softening in CPI inflation, disappointing IIP numbers and US Fed’s signal to slow the pace of interest rate hikes have built-in expectations of a rate cut or a change in policy stance in tomorrow’s RBI monetary policy meeting. We feel the commentary on the outlook of interest rates will hold significance. Further, with more results scheduled in the next couple of weeks, stock specific volatility will remain high. Globally, crude oil price and INR-USD movement would continue to remain on market radar. With indices likely to exhibit high volatility in near term, traders should avoid risky leveraged positions.
Stock In News
*Graphite India’s consolidated revenue grew by 81% YoY to Rs 1,855cr, while EBITDA and PAT nearly doubled to Rs 1,083cr and Rs 764cr. EBITDA margins improved sharply by 540bps YoY to 58.4%. However, the numbers on QoQ basis were not encouraging as revenue, EBITDA and PAT declined by 21%, 34% and 31% respectively, impacted by lower graphite electrodes prices and higher input cost.
* Venky’s India’s Q3FY19 revenue grew by 17% YoY at Rs 812cr. On operational front, the company registered poor set of numbers as EBITDA fell by 10% YoY to Rs 112cr, while margins declined by 398bps YoY at 13.7% on account of higher input cost. PAT declined by 2.5% YoY at Rs 67.7cr.
* Lupin’s Q3FY19 revenue grew by 13.3% YoY to Rs 4,505cr. EBITDA grew by 9.3% YoY to Rs 753cr, while margins declined by 60bps YoY to 16.7%. The company reported net loss for the quarter at Rs 151.7cr, led by an exceptional loss of Rs 342.2cr related to Perindopril litigation.
Religare Super Ideas
Bharti Infratel Limited (INFRATEL)
Buy Bharti Infratel Ltd @ 292-294 Stop Loss 285 Target 315 CMP 296.35
After retesting its crucial support zone around 240 levels, INFRATEL consolidated for nearly two months and rebounded sharply to test resistance zone of multiple moving averages on weekly chart. It has formed a fresh buying pivot after spending nearly a month around that zone and looks all set for a fresh surge. We advocate accumulating in the given range.
TVS Motor Company Limited (TVSMOTOR)
Buy 480PE TVS Motor Ltd @ 10 - 12 Stop Loss 6 Target 24 CMP 13.40
We’re seeing mixed trend in auto space and TVSMOTOR is currently showing sign of weakness. Though it bounced of late after the sharp plunge but couldn’t surpass the hurdle of multiple moving averages. The chart pattern also indicates further fall in near future. We advise initiating fresh short positions through Put option.
FUT added around 8% 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 BATAINDIA 1200 CE option as per below levels .
Strategy:- BUY BATAINDIA 1200 CE BETWEEN 35-37, STOPLOSS AT 21, TARGET 70.
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