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Published on 11/01/2019 9:04:30 AM | Source: Religare Securities Ltd

We reiterate our cautious view and suggest preferring hedged bets - Religare Sec

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

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NIFTY OUTLOOK

Markets remained sideways for yet another session and lost nearly half a percent. Participants preferred to sit on sidelines in absence of fresh trigger and caution ahead of TCS results. Mostly sectoral indices traded in tandem with the benchmark index and settled marginally lower.

Markets will react to the TCS results in early trades on Friday and then anxiety of another IT major, Infosys results would take over. In short, IT pack would lead the market in the next session. We reiterate our cautious view and suggest preferring hedged bets.

 

Stock In News

Bandhan Bank reported its Q3FY19 net profit at Rs 331cr, registering an increase of 10.4% YoY. NII grew by 53.5% YoY at Rs 1,124cr while NIM was 10.5% vs 9.9% in Q3FY18. GNPA for the quarter stood at 2.4% vs 1.7% in Q3FY18 while NNPA was 0.7% vs 0.8% in Q3FY18.

HG Infra was declared the lowest bidder by NHAI for up-gradation work of four lane of Rewari-Ateli Mandi section of NH11 in Haryana. The construction cost of the project is Rs 580cr and it will be executed on Hybrid Annuity Mode. The construction and operation period will be of 2 years and 15 years respectively.

* Sonata Software announced that its wholly owned subsidiary Sonata Software North America Inc., has acquired remaining 40% stake in Rezopia Inc., making it the company’s wholly owned subsidiary. Rezopia, a California corporation is a cloud based travel platform that provides services to online travel companies. The company paid $ 3 lac for the acquisition.

 

Religare Super Ideas

Amara Raja Batteries Limited (AMARAJABAT)

Buy Amara Raja Batteries Ltd @ 740-750 Stoploss 725 Target 800 CMP 755.10

AMARAJABAT has been trading in a prolonged consolidation phase for last four years. It has recently tested the lower band of that range and rebounding sharply since then. Indications are in the favor of further surge in near future. We advise creating fresh longs in the given range.

 

Canara Bank (CANBK)

Buy Canara Bank 280 PE @ 7-8 Stoploss 5 Target 14 CMP 9.15

In line with other PSU banking counters, CANBK has also witnessed decent rebound in last three months. It has now reached closer to resistance barrier of 200 EMA on the weekly chart and likely to see profit taking in near future. We advise initiating fresh shorts through Put option as per the mentioned zone.

 

Derivative Ideas

ULTRACEMCO added around 2% in open interest as short buildup was seen in it in previous session. Current chart pattern also indicates further decline in its price. We suggest buying ULTRACEMCO PE option as per below levels .

Strategy:- BUY ULTRACEMCO 3800 PE between 80-82, stop loss 55, Target 130.

 

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