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Published on 11/02/2019 9:55:49 AM | Source: Religare Securities Ltd

Nifty clearly indicates lack of decisiveness at higher levels - Religare Sec

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

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Nifty Outlook

Nifty plunged sharply lower and lost over a percent, tracking weak global cues. It opened with a down tick and drifted gradually lower in the first half. However, the pace of decline intensified in last hour of the trade and the benchmark settled around the day’s low. Mostly sectoral indices ended lower wherein metal and auto pack lost over 3% each.

The decline in Nifty clearly indicates lack of decisiveness at higher levels and it will remain so until broader market joins in. Unfortunately, there’s no sign of reversal yet thus we reiterate our cautious view on markets and suggest keeping positions on both sides. By and large, IT and FMCG pack are maintaining their positive stance while PSU banks and metal are reeling under pressure and may see further fall ahead. Traders should plan their positions accordingly.

 

Stock In News

* VIP Industries’ Q3FY19 consolidated revenue grew at a healthy pace by 27% YoY to Rs 430cr. EBITDA declined by 8.2% YoY to Rs 37.8cr, while EBITDA margins contracted by 338bps YoY to 8.8%, led by a sharp rise in the material cost. Further, PAT de-grew by 11.4% YoY to Rs 23.8cr.

* Consolidated revenue of M&M & MVML grew by 12% YoY to Rs 12,892.5cr on the back of volume growth across segments. However, EBITDA reported marginal increase of 0.7% YoY to Rs 1702.9cr, while margins declined by 150bps YoY to 13.2%. Profit for the quarter grew by 7% YoY to Rs 1,396cr led by 3x increase in other income.

* AIA Engineering reported its Q3FY19 consolidated revenue at Rs 726.4cr, up by 27% YoY. EBITDA for the quarter grew by 30% YoY to Rs 165.2cr, while margins improved slightly by 57bps YoY to 22.7%. PAT increased by 11% YoY to Rs 129.2cr.

 

Religare Super Ideas

LIC Housing Finance Limited

Buy 460PE LIC Housing Finance Ltd  @ 10-12 Stop Loss 7 Target 20 CMP 14.20

Post breakdown from its month long distribution phase, LICHSGFIN witnessed a marginal bounce of late and has reached closer to its immediate resistance hurdle of moving averages i.e.(100,50)EMA on daily chart. It has formed a fresh shorting pivot and likely to see fall ahead. We advise to initiate fresh short positions in the given range through Put option.

 

UltraTech Cement Limited

 SELL FUTS  UltraTech Cement Ltd  @ 3580-3600 Stop Loss 3650 Target 3440 CMP 3563

We're reiterating our short recommendation in ULTRACEMCO with the updated levels as it was not initiated in the previous session.

 

Derivative Ideas

CEATLTD FUT added around 11% 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 buying CEATLTD 1080 PE as per below levels .

Strategy:- BUY CEATLTD 1080 PE BETWEEN 36-38, STOPLOSS AT 25, TARGET 70.

 

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