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Traders’ Diary: High valuation a concern
28 Jan, 2020 | 11:22:25 AM IST
Extending gains for a second day, BSE Sensex rose 227 points today on rally in banking stocks.
1 New Update
How market may perform during Budget week
Bank of Baroda posts Q3 loss of Rs 1,407 crore as provisions spike 54%
Public sector lender Bank of Baroda on Friday reported a standalone loss of Rs 1,407 crore for December quarter, as provisions for bad loans jumped 54 per cent to Rs 6,365 crore. The lender had posted a profit of Rs 436 crore in the year-ago period. Fresh slippages for the quarter was at Rs 10,387 crore.
Near-term oscillators continued to be in ‘sell’ mode, but the index could extend its rise towards the 12,300-12,400 range on back of broad buying interest in the market. To maintain the current bullish tempo the index has to stay above 12,170
- Arun Kumar, Market Strategist, Reliance Securities
A close below 12,225 next week can set the tone for a sharper correction on the downside. Sustainability of the up-move of last two sessions remains doubtful, even as the current pullback swing has a logical target placed in 12,290-360 range. Therefore, it looks prudent for traders to book profit as Nifty heads closer to the 12,300 level
- Mazhar Mohammad, Chartviewindia.in
On the weekly scale, the index formed a Bearish Engulfing-type pattern at the new high of 12,430. This along with a long lower shadow on the weekly candle could raise concern over the negative pattern confirmation
- Nagaraj Shetti, Technical Research Analyst, HDFC Securities
Nifty formed a bullish candle on the daily chart and a Bearish Engulfing Pattern on the weekly chart, which implied supplies at higher levels. At the same time, every decline got being bought into. Momentum oscillator RSI took support around its recent swing lows in the 44 – 46 zone and turned northward. Going forward, if Nifty holds above 12,150 level, then an up-move towards 12,300 and 12,350 levels cannot be ruled out. However, major support remains intact at 12,100 and 12,050 levels
- Chandan Taparia, Technical & Derivative Analyst, MOFSL
JSW Steel Q3 results: Profit plunges 88% to Rs 211 crore, misses Street estimates
JSW Steel on Friday reported 88 per cent fall in consolidated net profit at Rs 211 crore for December quarter compared with a net of Rs 1,624 crore in the same quarter last year.
Analysts in an ET NOW poll had estimated the number at Rs 457.10 crore.
Net sales fell 12.13 per cent to Rs 17,416 crore from Rs 19,821 crore on a yearly basis.
The market continued its upward momentum despite unsupportive global cues. We reiterate our cautious view given the stretched valuation and muted start to the earnings season. The expectations are high from Budget, as market participants are pinning hopes on additional measures from the government to revive the economy. This is likely to drive momentum in the market in the coming sessions. Further, earnings announcements from corporates would also induce stock-specific volatility
- Ajit Mishra, VP - Research, Religare Broking
Index heavyweights consolidated last week due to marginally lower-than-expected results for IT, bank and infra sectors. Midcaps and smallcaps extended their rally on expectations of revival in growth and liquidity from institutional investors. In anticipation of a good Budget & Q3 results, the pre-Budget rally has been solid. For this rally to maintain, a lot will depend on the outcome of Budget and final Q3 earnings trajectory. Market is turning a bit cautious before the big event
- Vinod Nair, Head of Research, Geojit Financial Services
CLOSING BELL: Bank & finance stocks give Sensex a 227-pt lift; Nifty near 12,250; AU Small Finance Bank rallies 12%, Wockhardt 7%
NLC India to raise Rs 525 cr via bonds
State-owned NLC India on Friday said it will raise Rs 525 crore through issuance of bonds on a private placement basis. The proceeds of the proposed issue will be utilised to replace the equity deployed in the projects and operation over the normative level by the debt, and for other corporate requirements.
We certainly expect growth momentum to continue in FY21. You are going to see a very strong performance by biologics for sure because this is the year where we expect the continued growth momentum of both pegfilgrastim and trastuzumab not only in the US but also across global markets.
- Kiran Mazumdar Shaw, CMD, Biocon
UltraTech Dec quarter profit soars 49% YoY to Rs 643 crore; misses estimates
Ultratech Cement on Friday reported a 48.63 per cent rise in standalone profit at Rs 643.15 crore compared with Rs 432.70 crore in the same quarter last year. Analysts in an ET NOW poll had estimated the number at Rs 740 crore.
Westlife Development climbs 6% on 3-fold rise in Q3 profit
Shares of Westlife Development, the owner of master franchisee of McDonald's restaurants in West and South India, on Friday jumped over 6 per cent after the company reported over three-fold jump in profit for the third quarter. The company's scrip climbed 6.43 per cent to Rs 448.40 on the BSE.
Infy says not received Sebi request for further audits
Infosys said it had not received any request from Indian stock market regulator SEBI to conduct further audits, following media reports that the regulator was looking to appoint a forensic investigator to look into allegations of financial impropriety by the company’s management.
Top 10 NSE gainers in afternoon session
Price as on 12:06:50 PM 12:06 PM, Click on company names for their live prices.
Adani Gas cracks 14% as report suggests PNGRB seeks to cancel its licence
Shares of Adani Gas cracked 14 per cent in Friday’s trade amid reports suggesting that PNGRB has sought to cancel the company’s licence over violation of CGD regulations. Petroleum and Natural Gas Regulatory Board of India has sent a notice to AdaniNSE -1.02 % Gas for failing to disclose crucial information regarding a scheme of arrangement with Adani Enterprises, CNBC Awaaz reported.
Strides Pharma arm gets tentative USFDA nod for skin ointment
Price as on 11:42:25 AM 11:42 AM, Click on company names for their live prices.
Induslnd Bank launches wealth management platform
Private sector lender IndusInd Bank on Friday said it has launched its wealth management platform Pioneer Banking, which caters to high net-worth customers. "Induslnd Bank announced the launch of 'PIONEER' Banking, its wealth management platform," the private sector lender said in a BSE filing.
ITI falls 3% as Rs 1,400 crore IPO kicks off
Shares of state-run ITI (Indian Telephone Industries) declined 3 per cent in Friday’s trade as its Rs 1,400 crore follow-on public offer (FPO) kicked off. The company intends to sell its 18 crore shares, including one per cent quota for the employees, in the price bracket of Rs 72 to Rs 77 per share. At the upper limit of the price band, the FPO issue size comes around Rs 1,399.86 crore.
Alembic Pharma rises 2% on getting final USFDA nod for hypertension drug
Price as on 11:17:46 AM 11:17 AM, Click on company names for their live prices.
PNB Housing dives 12% on poor Q3 results
Shares of PNB Housing Finance fell 12 per cent in Friday’s trade after the company reported a 22 per cent drop in net profit at Rs 237 crore for the December quarter amid lower credit growth, despite easing interest rate cycle and adequate liquidity. The lender's net interest margin, a key profitability ratio, shrunk to 2.98 per cent for the December quarter, the lowest in last five quarters. The outstanding loan book de-grew to Rs 69,194 crore from Rs 74,023 crore in March 2019.
Coffee Day hits 5% upper circuit limit as co sells Way2Wealth Securities
Shares of Coffee Day Enterprises jumped 5 per cent in Friday’s trade after the Coffee Day Group entered into the definitive agreement with the Chennai-based Shriram Group to sell one of its financial services units, Way2Wealth Securities, for an undisclosed sum. The move is seen as a part of Coffee Day’s efforts to cut debt and shore up resources for working capital by disposing non-core assets.
FY20 is expected to be largely driven by robust growth in biologics mainly on the back of new launches across developed markets and geographical expansion in emerging markets. With better visibility, the company has optically accelerated the scalability capex and R&D, which is likely to push related expenses higher in the near term. Biosimilar launches in developed as well as emerging markets and Syngene’s performances remain key levers for the company.
- ICICI Direct on Biocon
YES Bank, Vodafone Idea, IB Housing among most active stocks on NSE
Price as on 09:50:53 AM 09:50 AM, Click on company names for their live prices.
OPENING BELL: Sensex drops 80 pts, Nifty tests 12,150; Zensar Tech plunges 11%, Adani Group stocks tank up to 9%
Pre-open session: Sensex drops 150 points, Nifty below 12,150; rupee trades at 71.33 against US dollar
Day Planner
Singapore trading sets stage for negative start
Nifty futures on the Singapore Exchange traded 24.50 points, or 0.20 per cent, lower at 12,172, indicating a negative start for Dalal Street.
Tech view: Nifty forms bullish Harami candle
A Bullish Harami pattern has a bullish connotation for the near term, provided Nifty50 sustains above the 12,094 level and sees follow-through buying on Friday, said Mazhar Mohammad of Chartviewindia.in.
Asian stocks edge higher
Stocks made a barely positive start in early Asian trade on Friday after the world’s health body called it a little too early to declare a coronavirus outbreak a global emergency. MSCI's broadest index of Asia-Pacific shares outside Japan rose a marginal 0.1 per cent, while Japan's Nikkei stood flat and Australian stocks added 0.4 per cent.
US stocks end mixed
In overnight trade, the Dow Jones Industrial Average index fell 26.18 points, or 0.09 per cent, to 29,160.09, the S&P500 index gained 3.79 points, or 0.11 per cent, to 3,325.54, and the Nasdaq Composite added 18.71 points, or 0.2 per cent, to 9,402.48.
Oil prices fall in early trade
In early trade, West Texas Intermediate (WTI) crude futures were up a marginal 0.05 per cent at $55.61 a barrel, after hitting $54.77 in the previous session, the lowest level since November 20.
UltraTech, JSW Steel to report Q3 earnings today
UltraTech Cement, JSW Steel, Bank of Baroda, Indian Bank, Prestige Estates and EIHare some of the companies which will report their Decemner quarter earnings today.
FPIs buy Rs 1,352 crore worth stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 1,352 crore on Thursday, data available with NSE suggested. DIIs were net sellers to the tune of Rs 985 crore, data suggests.
Sensex on Thursday
The Sensex closed 271 points higher on Thursday after three consecutive days of decline, primarily owing to the fall in oil prices. Brent futures fell to their lowest in seven weeks on concerns that the virus outbreak in China may dent fuel demand. Sensex closed 271 points higher at 41,386.40 while the Nifty closed at 12,179.90, up by 73 points. All the sectors ended in green except the media index.
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