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Published on 9/11/2018 9:34:23 AM | Source: Religare Securities

We feel the recent consolidation is healthy for markets - Religare Securities

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

Nifty Outlook

In a volatile trading session, the equity benchmark indices started on a positive note led by supportive global cues. However, it witnessed stiff resistance at higher levels and the index ended flat at 10,530 levels. The broader markets witnessed mixed trend. While BSE Midcap underperformed the benchmark ending lower by 0.6%, the Smallcap index ended on a flat note. On the sectoral indices front, Consumer Durables, Metals and Banking were the top losers whereas, sectors like IT and Realty ended the day in green. Amongst the global markets, Asian indices traded on a mixed note whereas European indices were trading lower.

While there have been some encouraging news for Indian equities with correction in crude oil prices and reversal in USD/INR, we remain cautiously optimistic in the near term given the headwinds which persist both on domestic as well on the global front. The liquidity concerns in the NBFC sector is likely to keep investors on the edge. On the global front, US midterm elections and US FOMC meet is also likely to be on market radar. Further, with more results to be announced in 1-2 weeks, we expect stock specific volatility to continue. Thus, we would advise maintaining stock specific trading approach and focus more on position management.

 

Religare Super Ideas

MARUTI BUY 7200CE At 130-140 Stoploss 80 Target 260

After a decent profit taking from its record high, MARUTI has found support around its long term moving averages on weekly chart. Considering its current chart pattern, we expect consolidation followed by swift recovery ahead. We suggest traders to accumulate fresh longs in the given range through Call option

 

BANKBARODA BUY 110PE At 3-4  Stoploss 2 Target 8

BANKBARODA has witnessed marginal bounce of late and reached closer to its immediate resistance hurdle around 115, offering fresh shorting opportunity. We advise traders not to miss this chance and create fresh shorts through Put option.

 

Derivative Ideas

RECLTD added around 8% in open interest as Long buildup was seen in it in previous session. Current chart pattern also indicates further surge in its price. We suggest buying RECLTD options as per below levels. Strategy:- Buy RECLTD 117.50 CE between 4.50-4.70, Stop loss - 3.50, Target - 8 for 4-6 trading sessions.

 

Stock in News

Voltas reported its Q2FY19 numbers wherein Net sales grew by 37.1% yoy to Rs. 1,421 cr. EBITDA came in at 154.6 cr, up by 13% yoy. Lower growth in EBITDA was on account of lower than expected margins in the room AC segment. Net profit was up by 9.3% to Rs. 103.5 cr.

Sanghi Industries reported its Q2FY19 numbers wherein Net sales grew by 18.7% yoy to Rs. 244 cr. However, net profit was down sharply by 82.1% to Rs. 2 cr mainly on account of contraction in operating margin for the company.

Suven Life Sciences Ltd announced the grant of one product patent from Israel and one product patent from Japan corresponding to the New Chemical Entities for the treatment of disorders associated with Neurodegenerative diseases and patents which are valid through 2036 and 2034 respectively.