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Published on 19/07/2019 9:54:04 AM | Source: Religare Securities Ltd

We suggest preferring hedged bets instead of naked trades on stock specific front - Religare Securities

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

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Nifty Outlook

Nifty couldn’t surpass its crucial hurdle at 11,700 and lost nearly a percent. Weak global cues combined with mixed earnings announcement triggered feeble start. It gradually inched lower as the day progressed and settled around the day’s low. Mostly sectoral indices traded in tandem with the benchmark index and the broader indices remained under pressure.

We do not see this pressure easing anytime soon, citing mixed earnings announcements and not so supportive global cues. Traders have no option but to align their positions accordingly and use rebound to create shorts in the benchmark index. Also, we suggest preferring hedged bets instead of naked trades on stock specific front, especially before the result announcement.

 

Stock in News

* Colgate Palmolive’s Q1FY20 revenue grew by 4% YoY to Rs 1,085cr led by 4% volume growth. On operational front, EBITDA grew by 7% YoY to Rs 300cr while margins expanded slightly by 59bps to 27.6%. Net profit for the quarter de-grew by 11% YoY to Rs 169cr because of an exceptional income of Rs 34cr in the base quarter.

* DB Corp announced its Q1FY20 results wherein consolidated revenue fell by 4% YoY to Rs 607cr. Segment wise, revenue from advertising and circulation declined by 2.8% and 2.3% respectively while radio business revenue (6% of total revenue) grew by 19% YoY. EBITDA grew by 4% YoY to Rs 176cr while margins expanded by 230bps to 28.9%. Net profit declined by 4% YoY to Rs 94cr.

* BHEL bagged an order worth Rs 750cr for emission control equipment from Bhartiya Rail Bijlee Company, a JV between NTPC and Indian Railways. With this order, BHEL will be executing 27 units of Flue Gas Desulphurization (FGD) systems of NTPC and its JVs. In FY19, the company’s order book stood at Rs 1,09,000cr.

 

Religare Super Ideas

Adani Ports and Special Economic Zone Limited (ADANIPORTS)

Buy Adani Ports and Special Economic Zone Ltd @410-413 Stoploss 400 Target 438 CMP 412.40

ADANIPORTS rebounded swiftly after retesting its crucial support zone of 100 EMA on daily chart. Recently, it has witnessed a marginal dip, offering fresh buying opportunity. We suggest traders not to miss this chance and initiate fresh longs as per the given levels.

 

Vedanta Limited (VEDL)

Sell Vedanta Limited Futs @165-166 Stoploss 170 Target 155 CMP 163.85

Metal stocks are trading under pressure and VEDL is also trading in line with the others. Though it has witnessed marginal bounce of late but couldn’t surpass the hurdle around 170 and formed a fresh shorting pivot. We advise initiating fresh shorts as per the recommended levels.

 

Derivative Ideas

KAJARIACER

KAJARIACER added around 18% 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 selling KAJARIACER FUTS per below levels.

Strategy:- SELL KAJARIACER FUTS BETWEEN 540-543, STOPLOSS AT 554, TARGET 510.

 

 

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