Indian Equity

RepleteBell Equity Market Update

Thursday  14th December, 2017

Indian equity benchmarks rose in a volatile trading session ahead of Gujarat and Himachal Pradesh exit polls which will be declared later in the day.

The S&P BSE Sensex rose 0.59 percent or 194 points to 33,246.70 and the NSE Nifty 50 Index advanced 0.58 percent or 59 points to 10,252.10.

For the most part of the day, the Sensex and Nifty swung between gains and losses.

Fifteen out of 19 sector gauges compiled by BSE ended higher led by the S&P BSE Oil & Gas Index’s 1 percent gain. On the flipside, the S&P BSE Consumer Durables Index was the top sectoral loser, down 0.6 percent.

Fab Four Stocks Of The Day

  • Oberoi Realty: Shares of the Mumbai-based real estate developer rose as much as 6.72 percent, the most in over a month, to Rs 482 after domestic brokerage Motilal Oswal initiated coverage on the stock with a ‘buy’ for target price of Rs 580.
  • Religare Enterprises: The Delhi-based financial services firm rose as much as 5 percent, the most since Dec. 1, to Rs 60.25 after 1.1 crore shares (6.2 percent equity) changed hands in a single block.
  • Prataap Snacks: The Indore-based snack maker rose as much as 10.46 percent, the most since Nov. 29, to Rs 1,415 after it reported strong earnings in September quarter.
  • Sandur Manganese: Shares of the Karnataka-based miner rose as much as 5.45 percent, the most since Dec. 11, to Rs 1,215 after the Supreme Court increased the cap on iron ore mining from 30 million tonnes to 35 million tonnes in Karnataka.

Oberoi Realty Surges After Motilal Oswal Initiates Coverage

Shares of the Mumbai-based real estate developer rose as much as 6.72 percent, the most in over a month, to Rs 482 after the domestic brokerage Motilal Oswal initiated coverage on the stock with a ‘buy’ for target price of Rs 580.

Motilal Oswal in a note said:

  • Sharp focus and trusted brand are the key strengths.
  • Company to be a key beneficiary of likely consolidation post RERA.
  • Annuity business – portfolio expansion to provide consistent cash flows.
  • Recent foray into affordable housing should help it enjoy tax incentives.
  • Low net debt provides ample room to acquire large land parcels in the Mumbai.
  • Expect revenue and net profit to grow at a compounded rate of 47 percent and 56 percent respectively by March 2020.
  • High operating margins to be backed by premium pricing.
  • Strong cash flow visibility for 10-12 years from ongoing/planned projects.
  • Bull case price target of Rs 638.

India’s Wholesale Inflation Climbs To 3.93% In November

India’s wholesale inflation rose to 3.93 percent in November up from 3.59 percent in October.

Analysts polled by Bloomberg estimated wholesale inflation to come in at 4 percent.

Manpasand Beverages Gains After RBI Raises Foreign Investment Limit

Shares of the Gujarat-based beverage maker rose as much as 10.11 percent, the most in three months, to Rs 409.55 after the Reserve Bank of India hiked foreign investment limit in the company to 49 percent from 24 percent.

Ruchi Soya Slumps; IDBI Bank Declares It As Wilful Defaulter

Shares of the Mumbai-based edible oil producer fell as much as 16.49 percent, the most in 17 months, to Rs 15.70, its lowest level in thirteen years. The state-run lender IDBI Bank declared the company as a wilful defaulter, Ruchi Soya said in a stock exchange filing.

Everest Industries Gains After Brokerage Initiates Coverage

Shares of the Delhi-based asbestos sheet maker rose as much as 10.4 percent, the most since Nov. 28, to Rs 581.70 after domestic brokerage Ventura initiated coverage on the stock with a ‘buy’ for target price of Rs 712.

Ventura in a note said:

  • Government policies to promote housing sector is positive.
  • Boards and panels segment to lead to better profitability.
  • Roofing – new product launches to maintain growth momentum.
  • Change in product mix to boost profitability; To reduce dependence on roofing.
  • Expect revenue, operating income and net profit to grow at a compounded rate of 11 percent, 53 percent and 173 percent by March 2020.
  • Benefits from low base of previous financial year, which was impacted by demonetisation and high material costs.
  • Margin expansion and debt repayment to boost return ratios.

*News Source-Bloomberg

Technical Summary By Replete Equities for 15th December,2017

Indian Equity

Yesterday we gave a level of 10147.50 and today nifty reverse expect from a low of 10144.55. Due to Gujrat Election market will remain highly volatile, any naked position in Futures not advisable at current scenario. trade with the only proper hedge to safeguard your capital. 10147.50-10336 is the range for Nifty, Breakout or Breakdown will lead to further levels. overall Uptrend is under Pressure so wait until Market gave a good reason to entre in any fresh position.

NSENIFTY is long term Bullish as the 144 days moving average of 9,912.55 is increasing. The Relative Strength Index is at 50.95 in the neutral territory. The Relative Momentum Index is at 52.99 in the neutral territory. An important indicator for Elliott waves, the Elliott oscillator is at -35.84, in negative territory; this is a bearish sign. An equally important indicator, the STORSI is at 71.95. This value is in the overbought territory.

Weekly Pivot Point Resistance and Support

The first weekly resistance level is at 10,346.55 while the second resistance level at 10,427.45. The first weekly support level is at 10,109.05 while the second support level is at 9,952.45.

Additional information:-

Tomorrow’s projected High: 10,331.38, the projected Low:10,196.83. The top 21-day Bollinger band is at: 10,436.03 while the bottom 21-day Bollinger band is at: 10,041.95.

DISCLAIMER: – we are not a SEBI research analyst. Views posted here only for educational purposes. There is no liability whatsoever for any loss arising from the use of this product or its contents. This product is not a recommendation to buy or sell, but rather a guideline to interpreting specified analysis methods.  This information should only be used by investors and traders who are aware of the risk inherent in securities trading.

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