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Published on 26/04/2019 9:08:30 AM | Source: Religare Securities Ltd

We advise preferring options strategies instead of naked longs in futures segment - Religare Securities

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

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Nifty Outlook

Markets turned volatile on the F&O expiry day and settled with a cut of over half a percent. The first half was positive, in continuation to the previous trading session but limited participation capped the upside. It momentum fizzled out in the latter half, with sharp decline in index majors. Mostly sectoral indices ended lower and the market breadth too showed the similar trend.

This volatility indicates caution among the participants and it’s not going to subside soon. Mixed earnings announcements combined with weak global cues are currently weighing on the sentiment. Besides, the recent surge in the crude has further deteriorated the condition. We advise preferring options strategies instead of naked longs in futures segment. Investors, on the other hand, shouldn’t worry much these short term whipsaws and keep a tab on earnings announcements. 

 

Stock In News

Maruti Suzuki reported its Q4FY19 numbers wherein revenue came at Rs 21,459cr, marginal increase of 1.4% YoY while total volumes declined by 0.7% YoY. On operational front, EBITDA de-grew by 25% to Rs 2,263cr and margin declined by 370bps YoY to 10.5%. Decline in net profit was restricted to 4.6% YoY to Rs 1,795cr led by decrease in finance cost and increase in other income.

* Zydus Cadila received USFDA approval to market Leflunomide Tablets. The medicine is indicated to treat rheumatoid arthritis, a condition affecting multiple small and large joints of the body. The group has received 263 USFDA approvals and has filed over 350 ANDAs (Abbreviated New Drug Application) since the commencement of its filing process.

* Indiabulls Ventures’ Q4FY19 consolidated revenue grew by 55% YoY to Rs 600cr. The company reported net profit of Rs 110cr in the quarter vs 55cr in Q4FY18 and also declared an interim dividend of Rs 1/share.

 

Religare Super Ideas

Lupin Limited (LUPIN)

Buy Lupin Ltd @ 860-865 Stop Loss 840 Target 910 CMP 869.20

After retesting its crucial support zone around 722 levels, LUPIN has witnessed a sharp recovery of late and surpassed the hurdle of long term moving average ( 200 EMA) on the daily chart. Its chart pattern combined with indication from the pharma index is pointing towards stable up move ahead. We advise initiating fresh long positions as per the levels. 

Bharat Forge Limited (BHARATFORG)

SELL MAY FUTS Bharat Forge Ltd @ 490-494 Stop Loss 506 Target 465 CMP 485.50

BHARATFORG has been witnessing correction for last one year, after making a record high in February, 2018.Though it had made recovery attempt of late but couldn’t surpass the hurdle of long term moving averages on weekly chart. After hovering in a range for almost two months, it is gradually now inching towards its 52 week low. We suggest traders to use any uptick to go short in the given range.

 

Derivative Ideas

TATAGLOBAL

added around 19% 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 TATAGLOBAL as per below levels.

Strategy:- BUY TATAGLOBAL BETWEEN 208-209, STOPLOSS AT 202, TARGET AT 224.

 

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