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Published on 25/04/2019 9:02:45 AM | Source: Religare Securities Ltd

We expect markets would remain volatile in the near term - Religare Securities

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

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Nifty Outlook

After three consecutive days of decline, the bulls staged a smart comeback as the Indian benchmark indices ended with strong gains of led by supportive global cues. The Nifty index ended with gains of 1.3% to close at 11,726. The broader markets underperformed the benchmark with BSE Midcap and Smallcap ending with gains of 0.4% each. On the sector front, barring auto which ended with losses of 0.3%, all the other sector indices ended with healthy gains. Notably, Oil & Gas, IT and Banking were the top gainers.

We expect markets would remain volatile in the near term given the earnings outcome and central election progress. On the global front, crude oil is trading at 2019 highs after US announcement of ending all Iran sanction waivers by May thereby putting pressure on importers. India is one of the key importers of Iranian oil and hence the developments on the sanction waiver would be closely monitored along with currency movement. We believe that any correction in quality large / mid cap companies with strong growth prospects should be considered as a good buying opportunity for long term investors.

 

Stock In News

UltraTech Cement reported its Q4FY19 numbers wherein standalone revenue came in at Rs 10,500cr, up by 18% YoY largely led by 16% YoY increase in domestic sales volume. On the operational front, EBITDA grew by 30% YoY to Rs 2,213cr while margin improved by 188bps YoY to 21.1%. PAT for the quarter more than doubled to Rs 1017.5cr.

* Hexaware Tech reported Q1CY19 results wherein consolidated revenue was at Rs 1,264cr, up by 1% QoQ and 2% QoQ in constant currency terms. EBIT for the quarter de-grew by 1% QoQ to Rs 174cr, while margin came in at 13.8%. Net profit grew by 12.2% QoQ to Rs 138.5cr led by 33% QoQ increase in other income.

* Tata Elxsi’s Q4FY19 revenue de-grew by 0.5% QoQ to Rs 405cr. On the operational front, the company reported poor set of numbers wherein EBITDA de-grew by 4.7% QoQ to Rs 98.5cr while margins declined by 110bps QoQ to 24.3%. However, net profit showed growth of 8% QoQ on back of lower tax expense for the quarter. 

 

Religare Super Ideas

HCL Technologies Limited (HCLTECH) 

Buy HCL Technologies Ltd @ 1130-1135 Stop Loss 1100 Target 1190 CMP 1138.95

HCLTECH is one of the strongest counter in IT pack, continuously maintaining the uptrend since 2009. Today, i.e. on 24 April, it has posted a fresh breakout from its 3-week long consolidation phase and also made a new record high. The move was supported with strong rise in volume indicating buying interest. Considering all, we advise initiating fresh longs as per the mentioned levels

Kotak Mahindra Bank Limited (KOTAKBANK)

Buy Kotak Mahindra Bank Ltd @ 1350-1360 Stop Loss 1320 Target 1440 CMP 1366.75

KOTAKBANK has been consolidating in a narrow range for last one month, after the sharp surge from 1220 levels. It has recently witnessed a dip in line with profit taking across the board, offering fresh buying opportunity to those who missed the chance earlier. We advise accumulating in the given range.

 

Derivative Ideas

GAIL

added around 30% 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 GAIL as per below levels .

Strategy:- BUY GAIL BETWEEN 340-342, STOPLOSS AT 329, TARGET AT 364

 

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