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Yes Bank Stock Market Research Report

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Company Overview:

 

 

YES BANK has been recognized amongst the Top and Fastest Growing Banks in various Indian Banking League Tables by prestigious media houses and Global Advisory Firms, and has received several national and international honours for our various Businesses including Corporate Investment Banking, Treasury, Transaction Banking, and Sustainable practices through Responsible Banking. YES BANK is steadily evolving as the Professionals’ Bank of India with the long term mission of “Building the Finest Quality Bank of the World in India” by 2020.

Key points

Strong NII, declining COFs help profits:

Yes Bank posted strong results for Q3FY2017 with a strong net interest income (NII) growth as well maintaining the asset quality. The NII for Q3FY2017 increased by 30.3% year on year (YoY) to Rs1,507.5crore on the back of strong advances and growth in the current and savings account (CASA). The net interest margin (NIM) expanded to 3.5% (up 10 basis points [BPS] from Q2FY2017). NIMs expansion was mainly due to the cost of funds (CoF) coming down due to softening interest rates and a rise in CASA deposits. While the treasury profit helped the Other income grow by 33.8% YoY to Rs998.3 crore, the bank is steadily building its fee income stream.

 Strong growth traction continues:

Yes Bank saw strong growth traction as its advances grew smartly by 38.7% YoY to Rs117,087 crore with Corporate Banking (which accounts for 68.9% of the advances) was up 42% YoY and Retail & Business banking business (including micro, small & medium enterprises [MSME]; forming 31.1% of the advances) was by 32% YoY. Deposits grew by 30.5% YoY to Rs132,375.8crore.

 

Performance highlights:.

The performance on CASA deposits front was robust (CASA ratio up 300BPS from Q2 to 33.3%), helped partly by the demonetisation drive but also indicating the improvement in retail segment. Both SA deposits (Rs29,348crore) and CA deposits (Rs14,778 crore) grew by 13% and 14% respectively since Q2FY2017. The management has indicated that amongst the small and medium enterprises (SME) clients, most are adopting the formal banking channel which is positive for the long term.

Brand Pillars:

The YES BANK brand is built around key Brand Pillars, which epitomize the growing strengths of the Bank. All communication and advertising has been created around these key brand pillars.

  • Growth: YES BANK's core promise is growth for its internal and external stakeholders symbolized in ‘Say YES to Growth!’

  • Trust: YES BANK's Promoters, Investors, and Top Management team are all of the highest pedigree with a demonstrated track record, thus inspiring and establishing a Trust Mark – ‘Say YES to Trust!’
  • Innovation & Technology: YES BANK is establishing the highest standards in customer service by adopting cutting-edge, innovative Technology. The only thing constant about technology used at YES BANK is Evolution.

Valuation :

 

Particulars

FY 15

FY 16

FY17E

Net Interest Income(cr)

3487.8

4566.7

5459.1

Net Profit

2005.4

2539.4

3133.2

EPS

48.7

60.4

74.5

EPS Growth (%)

8.57

23.98

23.38

PE (X)

21.8

17.6

14.2

Book Value

283.0

327.0

386.1

P/BV

3.7

3.2

2.7

RoE (%)

21.3

19.9

20.9

RoA (%)

1.6

1.7

1.8

 

Highlights the fact:

1)Yes Bank, by virtue of its size (and thereby avoiding large-ticket problem loans), and business mix has been able to perform better than peers.

2)Yes Bank has consciously decided to pursue balance sheet growth via customer assets (advances plus credit substitutes).

3)Yes Bank’s asset quality has been good with the gross non-performing advances (GNPA) stable at 0.85% and net non-performing advances (NNPA) also stable at 0.29% as compared with Q2 and credit cost at only 8BPS for Q3FY2017.

4)Faster deposit repricing compared to assets may actually help the bank to sustain or improve its margins in the near term.

5)The standard restructured advances were at Rs500 crore (42BPS of advances) having reduced from 0.67% (Rs568.3 crore) in Q3FY2016. There was no additional restructuring and no sale to asset reconstruction company during the quarter and the total security receipts (SRs) stood at Rs258 crore (22BPS of the advances) which make for a robust performance in the backdrop of rampant asset quality stress among its banking peers.

 

Technically View:

 

The stock is currently trading around 50 days and 100 days, moving average that is all about good positive moov& uptrend signal on daily base. RSI &MFI is present at 57 and 78respectivally, which is uptrend& showing the sideways formation for the short term period. The stock is currently in the upward formation and when it hold above 1400 then somemore upside is expecting with major support is found 1360 level. MACD line is greaterthen signal line 10 day Avg Volume is very high.

 

VALUATION & OUTLOOK:

 

Yes Bank is available at 2.9x FY2018 BV which is attractive given its comfortable capital position. It has a capital to risk (weighted) assets ratio (CRAR) of 16.9% (Tier-1 at 12.2%), attractive return on equity (RoE) of 20+% and return on asset (RoA) of 1.8+%.

 

It has successfully built an attractive franchise and a steadily growing retail business. We are positive on Yes Bank and maintain a “Buy” rating on the stock with an unchanged price target of Rs1,520.

 

We retain our Buy recommend in this script with a price target of Rs 1500-1520 in the very short term outlook. So Entry would be around 1360-1380as recomanded in this counter.

 

Markets start week on cautious note with profit booking on the anvil.US$ sees weakness as Trump immigration policy causes debate on the same on wider forum!!

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Major headlines:

·         Oil extends declines on rising U.S output

·         NPPA slashes prices of 33 essential medicines

·         Demonetisation to bring revenue to Government

INDEX PERFORMANCE

 

 

Indices

Support

Resistanes

Sensex

8525

8645

Nifty

27519

27820

 

Indian Indices:With most Asian markets shut for holiday the cues from Australia & Japan were weak with both indices seeing cuts of nearly 1%. Globally after a superb start to the New Year profit booking seems the theme for this week as caution returns at higher levels.US$ weakened further while bond yields also softened as gold prices rallied indicating flight to safety after a heady run for equities.


Nifty will also see initial weakness after rising sharply last week as 8700 proves a resilient top. With the Union Budget to be announced on Wednesday expect range bound market movement for today &tomorrow with rumours on stock/sector driving prices. Foreign flows to stay positive with US$ weakness prompting value buying.


The BSE Sensex is currently trading at 27859.52, down by 22.94 points or 0.08% after trading in a range of 27813.32 and 27916.20. There were 12 stocks advancing against 18 stocks declining on the index. The broader indices were trading mixed; the BSE Mid cap index was up by 0.13%, while Small cap index was down by 0.08%.

The CNX Nifty is currently trading at 8627.50, down by 13.75 points or 0.16% after trading in a range of 8617.75 and 8650.15. There were 16 stocks advancing against 35 stocks declining on the index.


MARKET INDICATORS

·           

 

Group ATopGainers

 

 

Company

Price (Rs)

% chg

IDEA

83.55

7.39

RDEL

60.80

6.20

RCOM

32.45

5.02

Jindalstel

83.00

4.53

Group ATopLosers

 

 

Aplltd

560.50

-2.50

CUB

150.75

-2.43

Edelweiss

110.10

-2.35

MRF

52150.00

-2.10

Market Statistics

 

 

 

BSE

NSE

Advances

1084

1020

Declines

1146

470

 

Technical view: Nifty faces resistance around 8700-8720 while support emerges around 8580-8600.Bank Nifty finds resistance around 19800 while support emerges around 19400.

Market Sentiment:

The market breadth on BSE was negative in the ratio of 1084:1146, while 168 scrips remained unchanged.

 

Trading ideas :EICHERMOT (Buy above Rs 23600 for target of Rs 24300, SL at Rs 23250): Stock has given a breakout from downward sloping trendline on daily charts, which connected two previous lower highs. Also stock managed to successfully close above its 100-DMA placed at Rs 23070 levels. The breakout has been confirmed on lower time frame charts with spurt in volumes, which may augur well for the stock. We advise to Buy Eicher Motor above Rs 23600, stop loss at Rs 23250 and Target of Rs 24300.

Corporate SnippetsLokesh Machines Ltd is set to enter into an agreement with EMCO GmbH of Austria for the manufacture and sale of the latters machines in India and export supplies.

Jain Irrigation Systems will raise USD 200mn through issuance of dollar bonds—for the first time –to overseas investors, primarily to retire debt.

Aditya Birla Group plans to invest Rs 70 bn in the next two years in Andhra Pradesh on expanding existing businesses.

MarutiSuzki India Ltd said that it will increase prices of products ranging from Rs 1500 to Rs 8014 (ex-showroom, Delhi) across models.

Nifty Movers:  The top gainers on Nifty were Idea Cellular up by 7.05%, BhartiAirtel up by 4.49%, Grasim Industries up by 2.19%, Sun Pharma up by 1.60% and Dr. Reddy’s Lab up by 1.39%.

On the flip side, AurobindoPharma down by 2.14%, Tata Motors - DVR down by 1.77%, BhartiInfratel down by 1.27%, Hero MotoCorp down by 1.24% and Wipro down by 1.19% were the top losers.

Top Sectoral& Stock Screening: The top gaining sectoral indices on the BSE were Realty up by 1.00%, Capital Goods up by 0.38% and FMCG up by 0.22%, while IT down by 0.86%, Auto down by 0.65%, Consumer Durables down by 0.60%, Oil & Gas down by 0.40% and Bankex down by 0.32% were the losing indices on BSE.

The top gainers on the Sensex were BhartiAirtel up by 4.44%, Sun Pharma up by 1.74%, Dr. Reddy’s Lab up by 1.28%, Power Grid up by 0.71% and Lupin up by 0.70%.

 

 

 

On the global front: On the global front, Asian markets were exhibiting mixed trend at this point of time, though most of the Asian equity benchmarks are closed on Monday for Lunar New Year holidays. The US markets made a mixed closing in last session after a lack luster trade, as investors weighed disappointing fourth-quarter data on domestic economic growth and a spate of earnings.

 

Global Signals: The Asian markets were trading mixed; Nikkei 225 decreased 108.27 points or 0.56% to 19,359.13, while Jakarta Composite increased 3.98 points or 0.07% to 5,316.82.

Markets in China, Singapore, South Korea, Taiwan, Malaysia and Hong Kong were shut on Monday for the Lunar New Year holiday.

 

Global equity rally building momentum as bond yields rise with return of 'risk on' trade. Gold falls as oil consolidates after sharp pullback, Dow tops 20000, with Nikkei hitting new 52 week highs!!

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Major headlines:

·         Higher debt limits room to cut fiscal deficit.

·         NPPA slashes prices of 33 essential medicines

·         Infrastucture sector may get a rise in budget allocation

INDEX PERFORMANCE

 

 

Indices

Support

Resistanes

Sensex

8525

8645

Nifty

27519

27820

 

Indian Indices: Asian indices opened flat after 2 days of huge rallies as the Japanese index hit new 52 week highs along with the Dow Jones index which easily topped 20000. The return of 'risk on' trade is seeing rise in US bond yields which is seeing money chase equities for higher return. Gold prices after a sharp rally saw un winding as defensive assets took a back seat, while oil consolidated after seeing a sharp upswing in the last week.

Nifty will test fresh 3 month highs as the markets open after a holiday on Thursday. The sharp move in the Nifty on expiry days caught most by surprise with 'bears being squeezed' as the Nifty closed above 8600.With foreign investors also joining the bull market expect any decline to be used as buying opportunity as money on the sideline would re enter. For today expect the broader mid cap stocks to outperform as risk returns with investors betting on the mid & small cap stocks.

The BSE Sensex is currently trading at 27955.18, up by 247.04 points or 0.89% after trading in a range of 27759.48 and 27959.38. There were 21 stocks advancing against 9 stocks declining on the index. The broader indices were trading in green; the BSE Mid cap index was up by 1.12%, while Small cap index was up by 0.94%.

 

MARKET INDICATORS

·           

 

Group ATopGainers

 

 

Company

Price (Rs)

% chg

IIFL

307.00

8.44

Ashokaley

92.15

6.41

Welcorp

90.15

5.93

Unitech

4.85

6.36

Group ATopLosers

 

 

IDFC

57.00

-3.72

Prestige

78.60

-3.62

TRENT

247.20

-2.60

Edelweiss

112.75

-2.08

Market Statistics

 

 

 

BSE

NSE

Advances

1487

1020

Declines

730

470

 

Technical view: Nifty easily closed above most resistances with 8570 now being the strong support & resistance now coming close to 8720. Bank Nifty also finds support @19260 while resistance now comes @ 19740.


Market Sentiment:

The market breadth on BSE was positive in the ratio of 1487:730, while 149 scrips remained unchanged.

 

Trading ideas: BANKBARODA (Buy above Rs 162 for target of Rs 170, SL at Rs 158.5): Stock has been consolidating in a trading band of Rs 153-160 from past ten trading sessions. Multiple attempts to close above Rs 160 went futile, as stock reversed direction from Rs 159-160 zone. On daily charts, stock not only managed to give a close above the crucial resistance of Rs 160, but also closed above all the major averages (100-200 DMA). We advise to Buy BANKBARODA above Rs 162, stop loss at Rs 158.5 and Target of Rs 170.


Rollover Analysis: Nifty has posted highest gains (eoe) since March 2016. For this series, Nifty Bank index outperformed Nifty Index by 1.88% after the lackluster December series. Call option writers were among the biggest loser's as the call base kept on shifting from 8200 to 8600. A huge short covering in 8500CE strike helped Nifty regain 8600 level for the first time since 01 Nov.2016. Long gamma positions were the flavor of the series.

FII's continued its selling spree in the Cash segment for the January series while forming long positions in Index Futures. Long/Short ratio of Index Futures was above 2x for almost entire series. Rollovers of Nifty/Banknifty stood at 73%/61% (1.91cr/20 lakh shares) as against 69%/68% (1.68c/19 lakh shares) previous expiry. Rollover is higher for both Nifty and Banknifty in terms of Open Interest and with rising cost of carry, a positive start to the new series can be expected. On the options front, February series has maximum calls base at 9000 strike (3.6mn shares) and maximum put base at 8400 strike (3.2mn shares) indicating a trading range ceiling and floor at the start of the month.

Nifty Movers: The top gainers on Nifty were BHEL up by 3.90%, Bank of Baroda up by 3.03%, Axis Bank up by 2.98%, Eicher Motors up by 2.45% and ICICI Bank up by 2.40%.

On the flip side, Bosch down by 1.39%, Wipro down by 1.38%, Kotak Mahindra Bank down by 1.02%, Lupin down by 0.97% and Cipla down by 0.82% were the top losers.

Top Sectoral& Stock Screening: The top gaining sectoral indices on the BSE were Oil & Gas up by 1.39%, PSU up by 1.38%, Capital Goods up by 1.28%, Bankex up by 1.27% and Consumer Durables up by 1.20%, while there were no losers.

The top gainers on the Sensex were Axis Bank up by 2.87%, ICICI Bank up by 2.48%, HDFC up by 2.12%, GAIL India up by 2.11% and Maruti Suzuki up by 2.03%.

 

 

On the global front: On the global front, Asian shares were mostly trading in red, with several markets shut. Japan reported national core CPI rose 0.2% year-on-year in December, below the expected 0.3% pace. Back home, the NSE Nifty and BSE Sensex were trading above the psychological 8,650 and 27,900 levels respectively.

Global Signals: The Asian markets were trading mostly in red; Hang Seng decreased 13.39 points or 0.06% to 23,360.78, FTSE Bursa Malaysia KLCI decreased 5.86 points or 0.35% to 1,686.36 and Jakarta Composite decreased 5.17 points or 0.1% to 5,312.47.On the other hand, Nikkei 225 increased 30.04 points or 0.15% to 19,432.43.

South Korean markets are closed for holidays on Friday and Monday. Chinese markets are shut for the Lunar New Year holiday and will resume trade on Friday, February 3. Taiwan is also closed for Lunar New Year and will reopen on Thursday, February 2.

 

Union Budget 2017 expectation report by Sharetipsinfo.com

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The Union Budget is round the corner, Will this budget heal the demonetization pain?

 

The Finance Minister (FM) ArunJaitley will present NDA’s fourth budget under the current term on February 1, 2017. We believe that the government is likely to relax its FY2018E fiscal deficit target of 3% by 30-50 bps. This is likely to increase its spending ability by `50,000cr-`80,000cr in FY2018E. While this could move the focus away from fiscal discipline path, the possible gains of ~`1lakh crore by taxing the black money deposits would support the government’s spending in FY2018E. We are positive on the interest rate, as banks are expected to witness lower cost of funds by retaining the low cost deposits received through demonetization. Overall we expect 1) increase the tax slab limits to boost consumption, 2) Infrastructure spending to revive capex cycle, and 3) rural schemes to remove distress from rural economy.

Demonetization has created short term pain for the economy

The sudden liquidity crunch after the note ban has seen consumption sectors such as auto, real estate, building materials, consumer durables, etc., take a severe beating. The rural economy has also been adversely affected, as cash crisis led to a slowdown in the small scale businesses resulting in job losses. However, the economy is expecting remedial action through the budget.

One-off gain to maintain fiscal discipline

Over the last three years, government has achieved significant progress towards achieving Fiscal Responsibility and Budget Management (FRBM) Act target of 3%. The government is likely to step up rural infrastructure spending, which may partially pressurize its financials; however the one-off gain of ~`1 lakh crore by taxing the black money deposits supports these spends without pressurizing the financials. The collection of lower one-off taxes, however, may pose risk to FY2018E fiscal deficit.

Budget likely to take corrective measures

We believe that the government is likely to take corrective measures which would offer remedy to the demonetisation wounds. In our opinion, increase in individual income tax slab limits and reduction in corporate tax rate is expected to be the highlight of the budget in order to revive the consumption cycle. The PM’s address on December 30, 2016 announced various corrective measures to fix the rural economy, such as affordable housing, interest subvention, credit support for small businesses, etc. We expect more measures in the upcoming budget to remove distress from rural economy.

Before we try to gaze at what it might have in store, there are 4 points to be noted at the outset:

1) Deviating from the tradition of presenting the Union Budget on the last day of February, this year the Budget will be presented on the 1st day of February. This is primarily from the point of view of getting the Budget announcements implemented from the 'beginning' of the new fiscal instead of its implementation after a few months into the new fiscal.

2) Almost a century old practice of presenting a separate Railway Budget is getting done away with from this Budget onwards, as the Railway Budget presentation is getting merged with the Union Budget.

3) The Budget date is just a few days ahead of the elections in 5 states, which includes the politically crucial state of Uttar Pradesh. This holds significance considering the fact that the Union Budget (including the Railway Budget) is an event wherein various social and welfare schemes get announced, tax and fiscal incentives are given out, the influence of which on the voter community is debatable.

4) The Budget will be presented in the backdrop of the government's recent demonetization drive, which has had an impact of varying degrees across sectors and has perceptibly affected both – consumer and business sentiments.

Of the above, while points 1 & 2 are just facts-to-be-noted, point 3, though important, the decision w.r.t. the Budget presentation date is as yet pending with the Election Commission. However, whether the eventual date will have a significant bearing on the final contours of the Budget is difficult to guess, we believe it is point 4 that is of relevance this time around.

Reeling under the challenges posed by the government's demonetization drive, businesses and consumers at large have seemingly built high expectations from the Budget. These largely revolve around getting reliefs aimed at higher disposable income in the hands of the population and/or improving affordability, which in turn will aid in improving consumer sentiments and support business and economic growth.

Higher tax exemption limits, lower duties on products, higher tax incentives to encourage home buying, incentivize savings, etc. are among the usual desired expectations, which will help in meeting the objective of improving consumer and business sentiments to a certain extent. Apart from these, in wake of the short-term impact witnessed on the rural and the informal segments of the economy, the government is expected to enhance its focus here.

Notably, while the government has already expressed its intention to double farmers' income by the year 2022 and this Budget could spell few measures aimed at this, the MSME segment, which has also been adversely impacted on account of it representing a good part of the informal economy with cash being the primary exchange for transactions, is also expecting few relief measures to flow its way.

Focus on government's pet projects like Make in India, Digital India and Swachh Bharat are expected to continue to receive considerable attention considering the potential objectives that can be achieved through these. While the Make in India and Swachh Bharat campaigns can be a great source for job creation considering the investments that they could attract, strengthening of the Digital India campaign will support the government's initiative of transforming the Indian economy to a less-cash economy.

Efforts at job creation and lifting the rural economy, which has been particularly impacted post-demonetization, is likely to be amongst the key agendas, which could be addressed through greater focus on agriculture and micro small and medium enterprises (MSME) sectors. Increased emphasis on the latter will aid in the revival of investment cycle, which will boost credit demand in the system.

On the taxation front, the expectations of a largesse are high by consumers and the business community alike in wake of the pain inflicted by the recent demonetization drive and are looking up to the government to bring things back to normalcy in the economy. However, considering the fact that the government's financial gains in the near-term have been restricted from the demonetization drive, its capability to deliver an out-of-theordinary budget also gets curtailed.

Nonetheless, to alleviate the challenges recently cropped up in the economy, and also with an eye on the upcoming state elections, tweaking in personal income-tax slabs could be announced. Further, with the Finance Minister having indicated in his earlier Budget the reduction in corporate tax rate, the current Budget is an opportune time to initiate this move. The Service Tax, however, may be hiked to move towards greater alignment with the GST rates, which is expected to be implemented in 1HFY18.

On the Fiscal path front, while the government has targeted a fiscal deficit of 3% of GDP, considering that it will have to be the front-runner in pump-priming the economy in wake of lack of private investments, a 25-50 bps increase may be considered by the government.

In conclusion, we expect the Budget to keep its focus relatively higher on the rural economy and the various social and welfare measures related to healthcare, education, agriculture, etc. along with investments in infrastructure / housing. This is primarily in wake of the challenges thrown up by the demonetization drive and the upcoming state elections. But with the limited benefits yielded by the former to the government in the near-term, it is unlikely that the government has much scope to deliver a 'populist' budget. Nonetheless, in terms of sectors, we expect Infrastructure (Roads / Power / Cement), Housing (Banks / NBFCs), Agriculture (Agro-chemicals / Irrigation / Fertilisers / Tractors) and Rural (Consumer Durables / FMCG) to benefit from the budget announcements.

Lower interest rates + tax cuts = Consumption boost

We believe that government’s aim is to leave consumers with more disposable income and fuel the consumption demand. Therefore, increase in tax slabs and lowering corporate tax rate will play an important trigger, as interest rates have come off in a big way. With banks retaining low cost deposits, their cost of funds is expected to remain low for a long period, indicating that interest rates will also remain low going ahead. The low interest rate and low taxes would accelerate revival in consumption demand.

Budget conviction picks

With the focus on tax reduction we expect consumption sector is likely to be a direct beneficiary from this budget. We expect FMCG, consumer durables, automobile sectors to benefit going ahead. We prefer companies like ITC, P&G, Asian Granito, Mirza International, etc. in this space. We also expect the credit cycle to revive with lower interest rates and government’s impetus on housing sector and companies like Axis Bank, LIC Housing and DHFL to remain our best play. We like L&T, Powergrid and KEI industries in the infrastructure space. 

Nifty ends Jan F&O series at 8063, Sensex up 332 pts

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Major headlines

·         India’s petroleum products consumption growth strong

·         S&P advocates fiscal consolidation ahead of budget

·         India signs oil reserves pact with UAE

INDEX PERFORMANCE

 

 

Index

Close

% Chg

Sensex

27,708.14

1.21

Nifty

8,602.75

1.50

Indian Indices: Indian bourses extended early gains in late afternoon session as most of the sectoral indices rose amid higher opening in European counter parts. The Sensex rose by more than 189 points to trade above 27,500 mark, while the Nifty 50 reclaimed its crucial 8,550 level. The broader indices, BSE Mid cap and Small cap also traded with more than half a percent gains. 

Sentiments remained optimistic with report that Donald Trump and NarendraModi have discussed opportunities to strengthen the partnership between the United States and India in broad areas such as the economy and defense. Some support also came with report that Foreign Portfolio Investors (FPIs) bought shares worth a net Rs 93.95 crore, while Domestic Institutional Investors (DIIs) also bought shares worth a net Rs 533.49 crore, on January 24, 2017.To boost digital payments, panel has suggested to provideAadhaar-enabled micro ATM infrastructure for 1.54 lakh post offices and 50 per cent subsidy on Aadhaar Pay, Biometric (FP & Iris) sensors should be given to all merchant points.

The BSE Sensex is currently closed at 27708.14, up by 332.56 points or 1.21% after trading in a range of 27439.68 and 27715.59. There were 21 stocks advancing against 9 stocks declining on the index.The broader indices were trading in green; the BSE Mid cap index was up by 0.64%, while Small cap index was up by 0.72%.

The CNX Nifty is currently shut up at 8602.75, up by 126.95 points or 1.50% after trading in a range of 8493.95 and 8607.00. There were 37 stocks advancing against 14 stocks declining on the index.

MARKET INDICATORS

·           

 

Top Movers (Group A)

 

 

Company

Cmp

% chg

Gainers

 

 

Bharatfin

749.20

10.70

Muthootfin

320.95

7.63

Bajfinance

1000.15

7.61

Welcorp

85.10

7.59

Losers

 

 

Wockard

663.00

-2.84

Tataelxsi

1463.00

-2.82

Ajantaphar

1708.20

-2.75

Bluedart

4483.05

-2.44

Market Statistics

 

 

 

BSE

NSE

Advances

1397

648

Declines

1190

811

 

Crporate Front:  India's demonetization drive is "a big failure" and has put the Indian economy back by at least a decade, an influential Chinese daily said on Wednesday. Prime Minister NarendraModi's November 8 announcement to scrap Rs 1,000 and Rs 500 notes was akin to "promising homeless people houses on Mars in one month's time.

 

Market Sentiment:

The market breadth on BSE was positive in the ratio of 1397: 1190, while 159 scrips remained unchanged.

Macroeconomic front:

Disruptions caused by demonetisation and the general caution on the part of buyers will hit property sales in India by at least 20-30 per cent in 2017, Fitch Ratings said in its latest report.

"We expect home prices also to decline this year because demand for residential property has weakened significantly in the fourth quarter of 2016, following the demonetisation of large denomination notes in November last year.

 

On the global front:

On the global front, European markets were trading in green as Santander's fourth-quarter profit beat estimates and investors resumed bets that Donald Trump's polices will help fuel economic growth in the United States over the next two years. Asian markets were trading in green. Back home, in scrip specific development, Indian Bank jumped after it reported around eight-fold jump in its net profit at Rs 373.48 crore for the quarter ended December 31, 2016, as compared to Rs 48.48 crore for the quarter ended December 31, 2015.


Commodity Updates:

Commodity Prices (MCX):

Commodity

Rs

% Chang

Gold

28544.00

-0.63

Silver

41161.00

-1.34

Crude oil

3610.00

-0.93

Natural Gas

224.70

-1.27

Alluminium

126.20

-0.83

Copper

406.30

-0.33

Top Sectoral& Stock Screening:The top gaining sectoral indices on the BSE were Consumer Durables up by 1.61%, Bankex up by 1.45%, Realty up by 1.41%, Capital Goods up by 1.10% and Oil & Gas up by 0.93%, while TECK down by 0.01% and IT down by 0.01% were the few losing indices on BSE.

Top Nifty Movers:The top gainers on Nifty were Kotak Mahindra Bank up by 5.47%, Zee Entertainment up by 4.11%, Bosch up by 4.03%, HDFC up by 3.41% and Yes Bank up by 2.88%. On the flip side, BhartiAirtel down by 2.59%, Wipro down by 1.41%, Tech Mahindra down by 0.78%, GAIL India down by 0.74% and Reliance Industries down by 0.71% were the top losers.

 

Global Signals:

All Asian markets were trading in green; KOSPI Index increased 1.18 points or 0.06% to 2,066.94, FTSE Bursa Malaysia KLCI increased 2.08 points or 0.12% to 1,682.77, Shanghai Composite increased 7 points or 0.22% to 3,149.55, Jakarta Composite increased 10.04 points or 0.19% to 5,302.13, Hang Seng increased 99.26 points or 0.43% to 23,049.12 and Nikkei 225 increased 269.51 points or 1.43% to 19,057.50. Taiwan Stock Exchange was closed on account of ‘Non Trading Day’.

All European markets were trading in green; France’s CAC increased 31.32 points or 0.65% to 4,861.35, UK’s FTSE 100 increased 33.5 points or 0.47% to 7,183.84 and Germany’s DAX increased 83.7 points or 0.72% to 11,678.64.

 

Persistent Stock Report: Know why stock market investors should invest in this share

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SECTOR:Computers software

Sensex:

27,698.17

 

CMP (Rs):

616

 

Target price (Rs):

775

 

52 Week h/l (Rs):

798/575

 

FV (RS)

2.00

 

Market cap ( cr):

4925.20

 

Avg volume(Nse)

92815

 

Industry P/E

17.90

 

 BOOK VALUE

204.91

 

EPS

38.13

 

BSE code:

533179

 

NSE code:

PERSISTENT

 

Prices as on 31 DEC,2016

 

Shareholding pattern

 

DEC‘16

(%)

 

Promoters                         

36.2

 

Institutions

59.5

 

Public & others

4.3

 

Performance rel. to sensex

 

 

Opm%

Npm

%

EPS

 

PERSISTENT

31.32

18.77

10.85

 

TCS

34.97

26.24

30.88

 

MPHASIS

27.53

20.12

7.32

 

NIITTECH

15.51

7.39

4.61

 

Company Overview:

 

Established in 1990, Persistent Systems (BSE & NSE: PERSISTENT) is a global company specializing in software product development services.  For more than two decades, Persistent has been an innovation partner for the world's largest technology brands, leading enterprises and pioneering start-ups. With a global team of 6,600+ employees, Persistent has 350+ customers spread across North America, Europe, and Asia. Today, Persistent focuses on developing best-in-class solutions in four key next-generation technology areas: Cloud Computing, Mobility, BI & Analytics, Collaboration across technology, telecommunications, life sciences, consumer packaged goods, banking & financial services and healthcare verticals.

Business Growth Outlook.

The PSL management expects Q4FY2017 to be strong, as it has acquired new logos for its digital business. Further, the recent partnership with Dell Boomi will drive its digital business going ahead.  The company has successfully completed the transition of the IBM IOT business and could be able to take the entire team into its Board. The management foresees traction in this IBM CE/CLM product and expects a strong growth in FY2018; for the nine months ended December 31, 2016, the partnership has fallen short of its revenue target of $50 million (contributed $48 million; the management expects some contribution to come by the end of FY2017).  Digital, Alliance and Accelerite will continue to deliver sustainable growth in the coming years. The management stated that the Services segment (43.9% of total revenue in Q3FY2017) has bottomed out and believes this business may do well in the coming quarters (for Q4FY2017, the management has indicated it could trim some tail-end clients).

 

 

 

 

Performance highlights:.

Investment Rationale:

Revenue beats estimate, but margins fall short of expectations:

During Q3FY2017, Persistent Systems’ (PSL) revenue grew at better-than-anticipated pace of 4.6% QoQ to $110.0 million, driven by a 6.9% QoQ growth in IP-led revenue and a 3.7% QoQ growth in IT Services (3.9% QoQ growth in volume and 0.2% QoQ drop in realisations). However, the company delivered lower-than-expected EBITDA margin at 15.9% (up 18BPS QoQ and down 284BPS YoY), owing to reduced billing days and higher provision for doubtful debt (relating to two customer accounts), partially offset by improvement in utlisation and benefit of currency depreciation. Forex gain increased by 327.3% QoQ, led by rupee depreciation, partially offset by lower other income (down 29.2% QoQ) and higher tax provision (up 140BPS QoQ), resulting in a 11.4% QoQ growth in the net profit at Rs81.9 crore (vs our estimate of Rs81.7 crore).

FY 17 Outlook:

All the investments for the IBM LoT deal have already been taken into account in the Q1 P&L; Therefore, revenue growth from now should lead to higher margins. Management feels that the impact on margins would be within the guided to range (<200bps) while quarterly fluctuations cannot be ruled out. A sales team will be hired but, as a percent of revenue, may hold at a similer level. The effective tax rate (ETE) for FY17 is expected at ~24-25%.

Financials :

 

Particulars

Q1FY17

FY 16

FY15

Sales

7018

23123

18913

Other Sales

105

352

309

EBITDA

1058

4171

3906

EBITDA Margin

15.1

18.0

20.7

EBIT

715

3206

2967

EBIT MARGIN

10.2

13.9

-183

PBT

968

3956

3900

Tax

-235

-985

-993

Tax Rate(%)

-24.3

-24.8

-25.5

Net Income

733

2974

2906

 

Highlights the fact:

1) SL is not perturbed about any hostile regulatory developments in relation to the current US visa regime, as the company has around 47% in terms of local US hires. In a major development with regard to potential change in the minimum wage hike, the management stated that the company will take a hit of $1.5-2 million per annum.


2) The management foresees traction in its Sentient and Concert products, and plans to launch these products during Q4FY2017.


3)Digital, Alliance and Accelerite will continue to deliver sustainable growth in the coming years.


4)The company has successfully completed the transition of the IBM IOT business and could be able to take the entire team into its Board. The management foresees traction in this IBM CE/CLM product and expects a strong growth in FY2018

 

Technically View:

 

The stock is currently trading around 50 days and 100 days, moving average that is all about good bullishmoov& uptrend signal on daily base. RSI &MFI is present at 58 and 69respectivally, which is showing the consolidationformation for the short term period. The stock is currently in the sideways formation and when it hold above 630 then someupside is expecting with major support is found 590 level. MACD line is greaterthen signal line 10 day Avg Volume is very high.

VALUATION & OUTLOOK:

 

The  Companyhave marginally tweaked our revenue estimates for FY2017/FY2018, led by higher-than-expected revenue growth in Q3FY2017, sharpening focus on IP and Digital businesses, and some green shoots in the Services business. However, we have broadly maintained the earnings estimates for FY2017/ FY2018 in anticipation of higher investments (on account of ongoing shift in the business model and intensifying competition).

 

We continue to remain positive on PSL, as the company has been continuously focusing on strengthening its digital capabilities to remain relevant to customers in the ongoing IT industry transition. The stock is currently trading at a reasonable valuation of 14.0x FY2018 earnings estimates.

 

We retain our Buy recommend in this script with a price target of Rs 765-775 in the very short term outlook. So Entry would be around 610-620as recomanded in this counter.

 

Global indices rally as US$ rebounds with yields, metals turn on the heat with huge upsurge in Copper prices.

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Major headlines:

·         FRBM panel for liberal view on fiscal  deficit

·         RBI Central Board okayed design of Rs 500, Rs 2000 notes in May

·         Airtel gets board nod to raise up to Rs 10000 cr via NCDs

 

INDEX PERFORMANCE

 

 

Indices

Support

Resistanes

Sensex

8389

8488

Nifty

27380

27504

 

Indian Indices: Asian indices are trading in the green with an over 300 point upsurge in the Japanese 'Nikkei" index as the yen weakens against the US greenback. Metals saw a huge surge led by copper prices as globally the 'risk on' trade re emerged with the US $ bouncing back & treasury yields on the US 10 year rising.


Nifty seems set to hit 8500 today on expiry of derivative contracts for the January series with 'bears being squeezed' as the index rallies over 3.6% for the month touching levels last seen on 10th November 2016.The better than expected results, improving macro data have downplayed the 'devil of demonetization' which had seen the Nifty hit 7900 due to the fear factor. For today expect banks, metals & energy stocks to gather further momentum as Nifty will test 8500 & above.


The BSE Sensex is currently trading at 27487.70, up by 112.12 points or 0.41% after trading in a range of 27439.68 and 27514.49. There were 19 stocks advancing against 11 stocks declining on the index.The broader indices were trading in green; the BSE Mid cap index gained 0.37%, while Small cap index was up by 0.59%.The CNX Nifty is currently trading at 8512.30, up by 36.50 points or 0.43% after trading in a range of 8493.95 and 8519.25. There were 35 stocks advancing against 16 stocks declining on the index.

MARKET INDICATORS

·           

 

Group ATopGainers

 

 

Company

Price (Rs)

% chg

Bharatfin

722.15

6.70

Welcorp

83.70

5.82

Deltacorp

128.00

5.05

Muthootfin

311.50

4.46

Group ATopLosers

 

 

Kajariacer

570.30

-2.53

Wockpharm

667.10

-2.24

TRENT

242.35

-1.90

Ashokley

87.20

-1.75

Market Statistics

 

 

 

BSE

NSE

Advances

1249

1168

Declines

633

307

 

Technical view: Nifty has crossed the 100 DMA @ 8425 which will now act as support while 8598 will be the next resistance the level from where the Nifty corrected after the event of 'demonetization' on 10th November 2016.Bank Nifty also closed near the 100 DMA @ 19037 which should be crossed today.

Market Sentiment:

The market breadth remained in favour of advances, as there were 1,249 shares on the gaining side against 633 shares on the losing side while 121 shares remain unchanged.

 

Trading ideas :Indian Bank (Buy above Rs 258 for target of Rs 270, SL at Rs 252): Stock has been trading in a narrow trading band of Rs 242-252 from the past eight trading sessions. In yesterday's trading session, Indian bank managed to break out from the consolidation, and closed above the resistance of Rs252. Volumes have been impressive, and the stock is poised to move towards target of Rs 270. We advise to Buy Indian Bank above Rs 258, stop loss at Rs 252 and Target of Rs 270.

 

MacroeconomicFront: The Indian Government has said that India will soon submit a proposal at the World Trade Organisation to start discussions on trade facilitation agreement in services before the WTO ministerial meeting in Argentina.


Corporate Snippets: Ajanta Pharmasaid that there is no import alert by the USFDA on the company's manufacturing unit in Aurangabad and it continues to supply to the US market.

 

Lupinhas launched generic version of contraceptives Ortho-Cyclen tablets after getting approval from the US health regulator.

 

BASF,whose global business portfolio includes chemicals, agricultural solutions, and oil and gas, plans to launch five products for rice crop protection in India.

 

Cyientsaid its subsidiary has signed a definitive agreement to acquire 100% equity in the Certon Software Inc. in an all-cash deal.

Top Sectoral& Stock Screening: The top gaining sectoral indices on the BSE were Metal up by 1.27%, Consumer Durables up by 1.03%, Realty up by 0.94%, Bankex up by 0.64% and Capital Goods was up by 0.60%, while TECK down by 0.15%, Power down by 0.03% and IT was down by 0.02% were the few losing indices on BSE.

Nifty Movers:The top gainers on Nifty were Tata Steel up by 2.38%, Zee Entertainment up by 1.77%, HDFC up by 1.63%, Hindalco up by 1.39% and Yes Bank was up by 1.31%. On the flip side, BhartiAirtel down by 2.61%, Idea Cellular down by 1.38%, BHEL down by 0.72%, AurobindoPharma down by 0.64% and Infosys was down by 0.59% were the top losers.

 

 

 

 

On the global front:On the global front, all the Asian equity indices were trading in green at this point of time taking cues from the US markets, as corporate results reignited investors’ optimism in economic growth, while a surge in commodities prices bolstered raw-materials companies. The US markets coming out of their consolidation mood rallied in last session.

 

Global Signals:All the Asian markets were trading in green; KOSPI Index gained 2.12 points or 0.1% to 2,067.88, FTSE Bursa Malaysia KLCI rose 2.42 points or 0.14% to 1,683.11, Shanghai Composite jumped 7.36 points or 0.23% to 3,149.92, Jakarta Composite increased 10.08 points or 0.19% to 5,302.17, Taiwan Weighted added 23.9 points or 0.25% to 9,447.95, Hang Seng edged higher 39.76 points or 0.17% to 22,989.62 and Nikkei 225 was up by 206.09 points or 1.1% to 18,994.08.

 

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How to earn money from stock market tips from experts


Get LIVE STOCK MARKET TIPS FOR SURE PROFIT FROM INDIAN SHARE MARKET


Stock trading is a very risky affair that too if anyone is untrained and inexperienced in this market. But any person who has an eye for details and is a quick learner than earning some quick cash is not that difficult.Once upon a time stock trading was a simple job of buying stocks and then selling them according to one’s own conviction. But now in present time the scenario has changed drastically. The use of technical analysis which is a form of use science used to predict the probable future prices of stocks from previous data has enabled experts to provide great tips and insights into the world of stock market. This is how the tips provided by the experts help us in maintaining a strong footing in the stock market

Working Mechanism - Technical and qualitative analysis is performed based on historical data regarding the price movement which is plotted on some chart. The main reason for the popularity of these charts is the ease with which they can be understood and interpreted by everyone.

Picking a Stock - Good volume of stocks and also high volatility are some essentials required to gain from the trading in the stock market. Identification of the correct stock as well as fixing of a stop-loss point is of utmost importance.Every trader has to maintain the stop-loss in order to avert big losses. In general the stop-loss level is held stable at 1.5-2%. This signifies that when the stock below this percentage of the purchase price the sock is sold. Experts usually advice traders to maintain a stop-loss level of about the one third level of their expected margins of profit. After any stock has been identified to be bought, experts suggest traders to study its price trends as well as the volumes.The norm is that an uptrend is signified by a high volume with higher price. But exceptions do happen as several people misinterpret the stock volumes because in certain case if both the prices and the volume keep on increasing,it indicates the end of the rally of the stock

Identifying Stock Trends – It is very important to identify stock trends. But it is a very difficult task as the trends do not follow a simple straight line in all occasions. No stock falls continuously on one day and rises continuously on the nest day. All the experts of the stock market us e take the help of various criteria to identify a stock which has high potential. Some of the most popular analytical tool used by experts is the moving average or Fibonacci retracement or even the index of relative strength method. Though these techniques may sound a bit overwhelming, experts are able to use modern software to provide very apt predictions about the stock market.

The Resistance and support levels – Many technical experts always suggest traders to use and maintain support as well as resistance levels while buying or selling stocks. And it is very easy to plot a support as well as a resistance curve and also finding their original values.It is a well-known fact that stock prices always move in a zigzag pattern and have various highs and lows in each and every trading cycle.The support level is always plotted against the low prices which occur in a day and the resistance  level is plotted against the high price of the day.

Further we discuss some of the main quantitative tools used by the experts to define the market trends–

Moving Average Method – The method of 200-day moving average is one of the most widely used tools by experts. This method involves plotting the 200-day consolidated moving average over the very price of the shares present in the price chart.

Index of Relative Strength (RSI) – RSI is mainly used by experts to compare the rate of the recent gains which have taken place against the recent losses occurred during that period. It is done just to asses if any stock has been overbought or has been oversold.

Fibonacci Retracement –An assumption is mainly built up this trend. The assumption is that the market always retraces a certain percentages which are easily predictable by the experts. When the market retraces then they easily produce a buy or even a sell call which is dependent on the very trend predicted.

Nifty ends at 8476, Sensex up 258 pts; Bharti down

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Major headlines

·         Tata Communications net jumps over 12-fold in Dec Quarter

·         India hopes to complete oil storage talks with UAE on Tuesday

·         Top execs of UAE’s Etiad to quit but airline says committed to strategy

INDEX PERFORMANCE

 

 

Index

Close

% Chg

Sensex

27,375.58

0.95

Nifty

8475.80

1.00

Indian Indices: Indian equity benchmarks continued to extend their gains in late afternoon session on the back of healthy buying in Power, Capital Goods and Auto counters. Sentiments remained positive with SBI’s research report Ecowrap, which said that the Government is likely to make sweeping recast of direct taxes in the ensuing Budget to give a boost to the economy following demonetisation. Some support also came with the report that the government is likely to set fiscal deficit target in the range of 3.3-3.4 percent of GDP for the financial year 2017-18 in the upcoming Budget or will target a fiscal deficit of 3.5 percent of GDP -- same as that of 2016-17. 

However, investors remained cautious with credit rating agency Care’s report that upcoming budget is expected to come up with some major changes to the tax framework for individuals and corporate following the demonetisation measure. Meanwhile, a high-level committee the government had set up to review fiscal responsibility rules recommended a framework to allow greater fiscal space for the government to spend more on development.

The BSE Sensex is currently closed at 27375.58, up by 258.24 points or 0.95% after trading in a range of 27140.85 and 27315.48. There were 24 stocks advancing against 6 stocks declining on the index.The broader indices were trading in green; the BSE Mid cap index was up by 0.49%, while Small cap index was up by 0.62%.The CNX Nifty is currently  shut at 8475.80, up by 84.30 points or 1.00% after trading in a range of 8398.15 and 8454.95. There were 42 stocks advancing against 9 stocks declining on the index.

MARKET INDICATORS

·           

 

Top Movers (Group A)

 

 

Company

Cmp

% chg

Gainers

 

 

Trent

243.60

15.38

Kajariacer

585.10

6.08

CESC

736.75

5.76

TVSMotor

401.20

5.50

Losers

 

 

KTKBank

113.90

-4.92

DEN

88.25

-4.23

GSFC

110.45

-4.08

Suzlon

17.04

-2.80

Market Statistics

 

 

 

BSE

NSE

Advances

1397

648

Declines

1190

811

 

Market Sentiment: The market breadth on BSE was positive in the ratio of 1397: 1190, while 159 scrips remained unchanged.

 

Crporate Front:

The Union Cabinet on Tuesday approved interest waiver for November and December 2016, for farmers who have taken short term crop loans from cooperative banks for the Rabi sowing season.

Macroeconomic front:

Initial inquiry reports of recent rail accidents may point to sabotage, but a former Railway Minister and officials held the "faulty financing model" and delay in implementing the required technological measures responsible for the poor infrastructure of the railways that may also be responsible for some train accidents.

 

On the global front:

On the global front, European markets were trading in green as investors wait for fresh economic data and earnings reports. Asian markets were trading mostly in green. Back home, in scrip specific development, Lupin was trading in green after the company launched its Norgestimate and Ethinyl Estradiol Tablets USP, 0.25 mg/0.035 mg having received approval from the United States Food and Drug Administration (USFDA) earlier to market a generic version of Janssen Pharmaceuticals, Inc.’s Ortho-Cyclen 28 Tablets (Norgestimate/Ethinyl Estradiol).


Commodity Updates:

Commodity Prices (MCX):

Commodity

Rs

% Chang

Gold

28727.00

-0.26

Silver

41601.00

-0.22

Crude oil

3641.00

0.69

Natural Gas

226.10

2.68

Alluminium

126.30

0.16

Copper

399.25

0.25

Top Sectoral& Stock Screening:The top gaining sectoral indices on the BSE were Power up by 1.36%, Capital Goods up by 1.18%, Auto up by 1.15%, PSU up by 1.11% and Oil & Gas up by 1.07%, while IT down by 0.34%, TECK down by 0.20% and FMCG down by 0.15% were the top losing indices on BSE.

Top Nifty Movers:The top gainers on Nifty were BHEL up by 2.96%, Idea Cellular up by 2.52%, Tata Power up by 2.45%, Ultratech Cement up by 2.29% and AurobindoPharma up by 2.09%. On the flip side, Yes Bank down by 2.04%, Hindustan Unilever down by 1.50%, HCL Tech down by 1.31%, BhartiAirtel down by 1.03% and Infosys down by 1.02% were the top losers.

 

Global Signals:

Asian markets were trading mostly in green; Shanghai Composite increased 5.78 points or 0.18% to 3,142.55, FTSE Bursa Malaysia KLCI increased 6.37 points or 0.38% to 1,677.68, Taiwan Weighted increased 23.9 points or 0.25% to 9,447.95, Jakarta Composite increased 41.61 points or 0.79% to 5,292.58 and Hang Seng increased 51.34 points or 0.22% to 22,949.86. On the flip side, Nikkei 225 decreased 103.04 points or 0.55% to 18,787.99 and KOSPI Index decreased 0.23 points or 0.01% to 2,065.76.

All European markets were trading in green; UK’s FTSE 100 increased 3 points or 0.04% to 7,154.18, France’s CAC increased 6.24 points or 0.13% to 4,827.65 and Germany’s DAX increased 10.62 points or 0.09% to 11,556.37.

 

 

US$ falls to 2 month lows as emerging markets rebound with stocks & currencies seeing pullback.

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Major headlines:

·         Buying support lifts Indian equities

·         HCL Tech Q3 net rises 7.8 % at Rs 2070 cr

·         Government to use geo spatial tech to build smart cities

 

INDEX PERFORMANCE

 

 

Indices

Support

Resistanes

Sensex

8389

8488

Nifty

27380

27504

 

Indian Indices: Asian indices ex Japan opened in the green as the US$ weakness saw the Dow Jones close in the red albeit marginally. This US$ weakness saw emerging markets bounce very strongly with the Brazilian 'Bovespa" hitting fresh 52 week highs. The Bovespa has in this month moved up over 13% as value buying emerges in emerging markets.


Nifty saw a smart pullback from the 8350 levels as short covering coupled with fresh buying emerged at lower levels. Metals lead the rally with energy stocks as the Nifty closed near the high point of the day @ 8400.For today expect another gap up opening with Nifty attempting to hit 8450 as the Rupee strength improves sentiment.


The BSE Sensex is currently trading at 27240.98, up by 123.64 points or 0.46% after trading in a range of 27140.85 and 27254.39. There were 26 stocks advancing against 4 stocks declining on the index.The broader indices were trading in green; the BSE Mid cap index was up by 0.53%, while Small cap index was up by 0.54%.The CNX Nifty is currently trading at 8433.75, up by 42.25 points or 0.50% after trading in a range of 8398.15 and 8437.50. There were 43 stocks advancing against 8 stocks declining on the index.

 

MARKET INDICATORS

·           

 

Group ATopGainers

 

 

Company

Price (Rs)

% chg

Trent

223.60

6.37

Fortis

191.50

5.22

Tatacomm

703.70

4.67

Cyient

483.80

3.83

Group ATopLosers

 

 

GSFC

107.35

-6.77

KTKBANK

113.50

-5.26

DEN

89.25

-3.15

Voltas

328.20

-3.04

Market Statistics

 

 

 

BSE

NSE

Advances

1426

1168

Declines

706

307

 

Technical view: Nifty has rebounded from the 200 DMA @ 8317 which now acts as strong support while resistance comes @ 8428 which is the 100 DMA. Bank Nifty is the under perfomer& finds support @ 18723 which was the yesterday low & will face resistance @ 19042 which is the 100 DMA.


Market Sentiment:

The market breadth on BSE was positive in the ratio of 1426:706, while 125 scrips remained unchanged.

 

Trading ideas: SAIL (Buy above Rs 61.5 for target of Rs 65, SL at Rs 59.5): The stock has broken out from a rising channel rectangle pattern on the weekly chart. The price outburst is accompanied with expansion in trading volumes. The stock has also breached past its immediate previous peak of Rs60.55. Other momentum oscillators are also indicating strength in the current up move. We advise to Buy SAIL above Rs 61.5, stop loss at Rs 59.5 and Target of Rs 65.

 

MacroeconomicFront: The Commerce Ministry has said that the online portal launched for government purchases of goods and services would result in savings of Rs 40,000 crore annually for the exchequer. Commenting on the issue, a Commerce Ministry Official told the media, "Demand aggregation for most of the common use goods and services is estimated to result in annual savings to the tune of Rs 40,000 crore per annum."


Corporate Snippets: Reliance Industries is in talks to raise as much as USD2.25bn (Rs153bn) in what could be one of the biggest offshore debt issues by an Indian corporate as the energy-to-retail conglomerate seeks to replace existing high-cost borrowings as well as build a war chest for its aggressive expansion strategy in telecom.

 

Manpasand Beverages Ltdis planning to increase its production capacity to more than double in the next 12-18 months. The company will set up four new manufacturing plants having total production capacity of 0.2mn cases per day as against the current 0.17mn cases per day.

Top Sectoral& Stock Screening:  The top gaining sectoral indices on the BSE were Capital Goods up by 1.25%, Consumer Durables up by 1.01%, Power up by 0.99%, PSU up by 0.91% and Metal up by 0.88%, while IT down by 0.55%, TECK down by 0.41% and FMCG down by 0.11% were the losing indices on BSE.

Nifty Movers: The top gainers on Nifty were Idea Cellular up by 2.66%, BHEL up by 2.26%, Coal India up by 1.99%, IndusInd Bank up by 1.97% and Larsen & Toubro up by 1.97%.  On the flip side, Hindustan Unilever down by 1.86%, HCL Technologies down by 1.67%, BhartiAirtel down by 1.41%, Infosys down by 1.12% and TCS down by 0.24% were the top losers.

 

 


On the global front: On the global front, Asian shares were trading mostly in green, as investors continue to digest what Donald Trump means to their holdings. Japanese equities are a noted laggard as the yen leads broad currency gains in the dollar, rising nearly a full yen from late-Friday levels in the US.

 

Global Signals:The Asian markets were trading mostly in green; Shanghai Composite increased 2.74 points or 0.09% to 3,139.51, FTSE Bursa Malaysia KLCI increased 6.49 points or 0.39% to 1,677.80, Jakarta Composite increased 29.6 points or 0.56% to 5,280.56, Taiwan Weighted increased 34.8 points or 0.37% to 9,458.85 and Hang Seng increased 76.5 points or 0.33% to 22,975.02. On the other hand, Nikkei 225 decreased 83.47 points or 0.44% to 18,807.56 and KOSPI Index decreased 3.65 points or 0.18% to 2,062.34.

 

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