Business News›Traders’ Diary: Builtup of long positions in Infratel, Kotak Bank, Berger
Economic Times | 06 Dec, 2019 | 06.32PM IST
Traders’ Diary: Builtup of long positions in Infratel, Kotak Bank, Berger
Midcap index snaps 3-week winning run, Nifty IT index rises for second straight week.
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Dalal Street witnessed breakdown from Head and Shoulder pattern on the hourly chart, which doesn’t bode well for the bulls. On the weekly scale, Nifty formed a Bearish Engulfing pattern and a sustainable move below 11,888 may lead to a correction towards 11,800 and then 11,700. On the flipside, immediate hurdle is placed at 12,050 and 12,100 levels
Clouds over economic growth outlook and premium valuation influenced investors to stay away from rate sensitive stocks. While rising 10-year yield due to spike in inflation and potential slip in fiscal path may result near term consolidation in the market
- Vinod Nair, Head of Research Geojit Financial Services
Markets lost nearly a per cent and settled closer to the day’s low, pressurised by weak local cues. The beginning was upbeat; thanks to firm global markets, however, profit taking pushed the benchmark lower as the session progressed. Selling was witnessed across the board wherein PSU banks and media pack lost maximum. The broader indices too remained under pressure and lost over a percent each. The recent decline shows disappointment among the participants post the RBI policy outcome as the majority were hoping for a rate cut. And, since the Nifty has breached its immediate support at 11,900, we may see further profit taking ahead. However, we feel it’s a healthy correction and 11,700-11,800 zone would continue to act as a cushion
- Ajit Mishra, VP - Research, Religare Broking
Sensex declined 0.9% this week. Market remained weak as major economic data remained subdued. YES Bank, Tata Steel and Sun Pharma were the top losers in Sensex, while Bharti Airtel, Kotak Mahindra Bank and TCS were the top gainers. On the economic front, real GDP growth moderated sharply to 4.5%. However, the MPC kept the repo rate unchanged at 5.15% noting rising inflationary risks despite a continued slump in GDP growth. FPIs sold equities worth $66 million over the past five sessions while DIIs bought$192 miillion
Expect RIL's outperformance to sustain: Nomura India
RIL stock has has outperformed the market by gaining 38 per cent year-to-date compared with Nifty's 10 per cent rise during the same period. "However, given a strong earnings outlook (29 per cent CAGR for FY19-22F), slowing capex intensity and efforts to reduce debt, we believe RIL’s outperformance will sustain," the brokerge said, while suggesting a target of Rs 2020 on the stock.
ANMI survey: 58% brokers to invest in algos as part of their technology software spends in 2020
86% brokers say technology will be an important factor for their business by 2020
58% brokers look to invest in algos as part of technology software spends in 2020
79.1% of the 900-odd member organisations invest in technology
62.8% brokers have faced IT-related issues in the last two years
In 48.8% of boardroom meetings, technology is the key driver
Majority of stakeholders are willing to increase their technology budget
Maruti recalls 63,493 units of Ciaz, Ertiga, XL6 to fix faulty part
Price as on 06 Dec, 2019 01:54 PM, Click on company names for their live prices.
Dr Reddy's Labs gains 2% as drug maker launches chronic iron overload treatment tablets in US
The drug maker said it has launched its Deferasirox tablets for oral suspension used for treatment of chronic iron overload, in the US market. The company has launched its product, a generic version of Novartis Pharma AG's Exjade tablets for oral suspension, after getting the nod from the USFDA, Dr Reddy's Labs said in a filing to the BSE. At 1.50 pm, the stock was trading 2.3 per cent higher at Rs 2,936.35.
MMTC, TCS and Asian Paints see strong momentum, suggests technical indicator MACD
NPAs have not grown like it does normally, in the first half and then starts coming down. This year, NPAs stabilised and in fact, has come down and not gone up. That is nothing but a direct indication of customers having money and willing to discharge liability even though they are a little reluctant to add asset.
- Ramesh Iyer, M&M Finance
Vodafone Idea tumbles 9% as Birla warns of shutting shop in absence of govt relief
Price as on 06 Dec, 2019 12:59 PM, Click on company names for their live prices.
Retail onion prices touch Rs 140/kg mark in some cities (Source: PTI)
For long-term investors, this is a good point of entry. Till the time we do not see recovery, or till probably the earnings will keep disappointing but equity investment is a waiting game. One has to look for opportunities in troubled times and wait for the time to change or wait for the cycles to start moving up. That is how one should look at equities from the long-term view.
- Vinit Sambre, DSP Mutual Fund
Vodafone Idea will shut in absence of govt relief: Birla
Vodafone Idea will have to be closed down if the government doesn't provide relief that the company has sought, its chairman Kumar Mangalam Birla said on Friday.
"We will have to shut shop," Birla said on a query about the course of action for the company going ahead in the absence of government relief. (Source: PTI)
Soon there won't be any difference between brokers based on price: Nikhil Kamath
Oil companies' shares fall on OPEC output cut buzz
Price as on 06 Dec, 2019 11:50 AM, Click on company names for their live prices.
Sandip Sabharwal on YES Bank
It is important for @YESBANK to raise as much capital it can ASAP. Even if its not $ 2 billion then should just rai… https://t.co/MAou4r3Lp8
Around 39 stocks fell to touch their 52-week lows on NSE in Friday's session. Among the stocks that touched their 52-week lows were Apar Industries, Bhageria Industries, Bodal Chemicals, Finolex Cables, Gyscoal Alloys, Global Offshore Services, MVL, Kalyani Forge, Premier Explosives, Sagar Cements, S H Kelkar and Company, Texmaco Rail & Engineering, Visesh Infotecnics and Thomas Cook.
RBL Bank raises Rs 2,025 cr through QIP
RBL Bank on Friday said it has raised Rs 2,025.27 crore from institutional investors through a qualified institutional placement offering (QIP) and will utilise the proceeds to fund business growth. In a statement RBL Bank said "it has successfully concluded the QIP of Rs 2,025 crore at an issue price of Rs 351 per share (including premium of Rs 341) pursuant to the allotment of 5.77 crore equity shares."
Anand Rathi has a Buy rating on Dr. Lal Path Labs; here's why
Several favorable macro traits including low penetration levels of healthcare services in India, increasing awareness of preventive testing, increasing disposable income, will continue to drive demand in the sector.
Growing distribution network with multiple channels should continue to support DLPL’s growth momentum. The network and business model should help the company enter new markets while its technology platform should help in introduction and enhancement of its services.
Further, DLPL’s wide range of test portfolio coupled with disciplined performance and strong brand value will help in sustaining the leadership position of the company in the market.
At CMP the stock is trading at 43.4x times FY21E earnings.
We initiate our coverage on Dr.Lal Pathlabs(DLPL) with a BUY rating and a target price of ?1,999 per share.
The crisis at Karvy Stock Broking has rival firms vying for its client base. As clients worry about the safety of their shares and securities in Karvy in the wake of regulatory restrictions, other brokerages are going all out to lure them with discounts on various services and cheaper fees. Brokerage officials said these offers are for all potential clients but, in private, agreed that they have been launched to attract clients of Karvy.
Karvy fallout: NSE issues advisory to investors
The National Stock Exchange (NSE) has issued an advisory on steps to keep stocks safe whereby the bourse has asked the investors to ensure timely payouts. "Ensure that payout of funds/securities is received in your account within one working day from the date of payout," the NSE advisory said.
Bajaj Finance participates in RBL Bank QIP, gets 4.3 million shares at Rs 351 apiece
Price as on 06 Dec, 2019 10:16 AM, Click on company names for their live prices.
RIL gains as CLSA ups target on Jio booster
Shares of Reliance Industries gained over 1 per cent in Friday’s trade after foreign brokerage CLSA said hiked its target for the scrip to Rs 2,010 from Rs 1,710 earlier, citing good chances of further upside to Jio’s profit. The brokerage expects the recently announced tariff hike on the JioPhone may result in higher Arpu as customers may prefer 28-day over 84-day plans. Following the development, the scrip rose 1.07 per cent to hit a low of Rs 1567 on BSE.
YES Bank tanks 5% on Moody's downgrade, negative outlook
Shares of YES Bank dropped 5 per cent in Friday’s trade after Moody's Investors Service downgraded the private lender’s credit ratings, citing stressed assets and low loss-absorbing buffers against those assets. It also assigned a 'negative outlook' to the company. Stressed assets related issues are seen adding pressure to funding and liquidity, creating additional risks to standalone credit profile of YES Bank.
Today, USDINR pair is expected to quote in the range of 71.40 and 71.80
- Motilal Oswal Financial Services
Vodafone Idea, RCom, YES Bank & MMTC among most active stocks on NSE
Price as on 06 Dec, 2019 09:24 AM, Click on company names for their live prices.
Pre-open session: Sensex jumps 240 pts, Nifty above 12,100; rupee trades at 71.32 against dollar
Singapore trading sets stage for positive start
Nifty futures on the Singapore Exchange traded 24 points, or 0.20 per cent, higher at 12,068, indicating a positive start for Dalal Street.
Tech view: Nifty forms small bearish candle
The index formed a small bearish candle on the daily chart. Analysts said Nifty has support at 11,950-11,960 levels, and unless this range is breached, the outlook will remain positive.
Asian shares up on trade deal optimism
Asian stocks held firm on Friday as US President Donald Trump's rhetoric kept investors' hopes up on a trade deal with China, while oil sat near two-month highs after producers led by Saudi Arabia and Russia agreed on further output cuts. Japan's Nikkei rose 0.28 per cent and MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.19 per cent.
US stocks settled higher on jobs data
US stocks closed higher on Thursday as investors digested the latest jobs data. On Thursday, the Dow Jones Industrial Average was up 28.01 points, or 0.10 per cent, to 27,677.79. The S&P 500 rose 4.67 points, or 0.15 per cent, to 3,117.43. The Nasdaq Composite Index was up 4.03 points, or 0.05 per cent, to 8,570.70
Crude prices rise on OPEC output cut
Oil edged up in early Asia trade on Friday, with US crude trading near a two-month high after OPEC agreed to increase output curbs by nearly 50 per cent in early 2020, although the cartel stopped short of promising any further steps after March. WTI oil futures were up by 2 cents at $58.45 a barrel. Brent futures were up 1 cent at $63.40.
FIIs buy Rs 653 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 653.36 crore on Thursday, data available with NSE suggested. DIIs were net sellers to the tune of Rs 410 crore, data suggests.
Opec, allies agree on deep output cuts
Opec and allies led by Russia on Thursday agreed one of the deepest output cuts this decade to support crude prices and prevent a glut but were still debating how long the curbs would last next year. The Organization of the Petroleum Exporting Countries (OPEC) is meeting to discuss supply policy in Vienna. OPEC will then meet on Friday with Russia and other producers, a grouping known as OPEC+.
US jobless claims at 7-month low
Initial claims for state unemployment benefits dropped 10,000 to a seasonally adjusted 203,000 for the week ended November 30, the lowest level since mid-April, the US Labor Department said. Data for the prior week was unrevised. Economists polled by Reuters had forecast claims increasing to 215,000 in the latest week.
Aramco IPO misses $25 billion mark
Aramco IPO has missed the mark, but is still set to be biggest in history. The oil giant priced its IPO at 32 riyals ($8.53) per share, the top of its indicative range, raising $25.6 billion and beating Alibaba's record $25 billion listing in 2014.
Sensex on Thursday
After swinging between gains and losses, the 30-share BSE Sensex finally ended 70.70 points or 0.17 per cent lower at 40,779.59. Similarly, the 50-scrip NSE Nifty settled with a loss of 24.80 points or 0.21 per cent at 12,018.40. On the Sensex chart, Bharti Airtel, Tata Steel, IndusInd Bank, HeroMoto Corp and Tata Motors were among the major laggards, declining up to 2.96 per cent.
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