'BUY' or 'SELL' ideas from experts for Thursday, 06 March 2014
(source - Economic Times)- Ashwani Gujral of ashwanigujral.com
Info Edge India Ltd is a 'BUY' call with a target of Rs 665 and a stop loss of Rs 620
NIIT Technologies Ltd is a 'BUY' call with a target of Rs 462 and a stop loss of Rs 437
Tinplate Company of India Ltd is a 'BUY' call with a target of Rs 54 and a stop loss of Rs 46
LIC Housing Finance Ltd is a 'BUY' call with a target of Rs 225 and a stop loss of Rs 209
Bank of Baroda is a 'BUY' call with a target of Rs 640 and a stop loss of Rs 605
SRF Ltd is a 'BUY' call with a target of Rs 242 and a stop loss of Rs 224
- Mitesh Thacker of miteshthacker.com
Bata India Ltd is a 'BUY' call with a target of Rs 1115 and a stop loss of Rs 1059
GSK Consumer Healthcare Ltd is a 'BUY' call with a target of Rs 4575 and a stop loss of Rs 4345
ICICI Bank Ltd is a 'BUY' call with a target of Rs 1140 and a stop loss of Rs 1084
LIC Housing Finance Ltd is a 'BUY' call with a target of Rs 226 and a stop loss of Rs 209
BF Utilities Ltd is a 'BUY' call with a target of Rs 600 and a stop loss of Rs 559
- Sandeep Wagle, Founder & MD, APTART Technical Advisory Services
Canara Bank is a 'BUY' call with a target of Rs 238 and a stop loss of Rs 224
Prestige Estates Projects Ltd is a 'BUY' call with a target of Rs 156 and a stop loss of Rs 141.50
LIC Housing Finance Ltd is a 'BUY' call with a target of Rs 224 and a stop loss of Rs 210
Grasim Ltd is a 'BUY' call with a target of Rs 2740 and a stop loss of Rs 2610 ..
Bharti Airtel Ltd is a 'SELL' call with a target of Rs 272 and a stop loss of Rs 286.50
(Views and recommendations expressed in this section are the analysts' own and do not represent those of EconomicTimes.com. Please consult your financial advisor before taking any position in the stocks mentioned.)
News that matters:
1) Current account deficit plunges to 8 year low of 0.9% of GDP down from 6.5% a year earlier and 2.3% for April-December2) Tatamotors: Tatamotors to tieup with China's Cherry Automobile. Both firms to explore tie-uos and sharing of platforms
3) Financial Technologies : Merill Lynch buys 2.35lac shares of Financial Technologies at average price of Rs 347.76, valuing the transaction at Rs.8.18 crore
4) GSK Pharma : Shares of GlaxoSmithKline Pharmaceuticals dropped by 7.5 % ahead of open offer closure
5) Sanofi India & Glenmark Pharma: French drug-maker Sanofi filed patent infringement petition against Glenmark on cardiac drug Multaq, in the district court of Delaware, on three counts.
6) Tata Power Ltd: The board committee of Tata Power will be meeting on Saturday to finalise on the proposed rights issue to raise Rs 2,000 crore.
7) Alstom India Ltd: Private power gear maker Alstom said it has won a 85 million euro (around Rs 722 crore) contract from state-run BHEL for supplying equipment for Darlipalli thermal power project in Odisha.
8) Reliance Industries Ltd: With new gas price announcement being held hostage to technicalities, British energy giant BP and Niko Resources of Canada have told Oil Ministry that they are party to the arbitration initiated by Reliance Industries on KG-D6 gas production lagging targets.
9) Manappuram Finance Ltd: The leading gold loan lender, has come out with another public issue of secured, redeemable, non-convertible debentures aggregating to Rs 100 crore to finance capital expenditure.
10)Samtel India: Foreign investors would not be allowed to buy further shares in technology products maker Samtel India, as their shareholding has crossed the prescribed limit. Reserve Bank said that Samtel has been included in its ban list for purchase of equity shares by NRIs/persons of Indian origin, as the aggregate net purchases of equity shares in the company has reached trigger limit.
11)Bajaj Auto Ltd: The Pune industrial court on Wednesday restrained workers of the Chakan plant of Bajaj Auto from giving any undertaking, acknowledging wage hike till further hearing in the matter, said media reports.
Pre-market: Nifty seen opening higher; may reclaim 6350 levels
(source : Economic Times)The 50-share Nifty index is expected to open higher on Thursday following positive trend seen in other Asian markets.
At 07:30 a.m., Nifty India stock futures in Singapore were trading 31.50 points higher at 6381.50, indicating a higher opening on the domestic market.
In a highly volatile session, NIFTY managed to close above 6,300 levels; however, it did slip into the red for a while but strong buying emerged thereafter on Wednesday.
Comments from Putin that "Russiareserved the right to use all options to protect compatriots who were living in "terror" in Ukraine, but that force was not needed for now" relieved frayed nerves across the globe and investors breathed easy for now.
The immediate support level for Nifty is now placed at 6,285 and a breach of this level would imply further decline to the next support of 6,210 levels. "On the upside, the level of 6355 - 6360 is now a very stiff resistance to watch out for. If Nifty is unable to breach 6355 - 6360 range then we expect a decline till 6285 and below that 6200 in a short span of time," GEP Capital said in a note. "The level of 6,130 is an important support level for the index and a breach of this level would signal a trend reversal and a deeper decline," added the note.
Technically, the candlestick pattern on daily chart is that of a 'Hanging Man' pattern in Nifty.
It is created when there is a significant sell-off near the market open, but buyers are able to push this stock back up so that it closes at or near the opening price. "This formation does not mean that the bulls have definitively lost control, but it may be an early sign that the momentum is decreasing and the direction of the asset may be getting ready to change," LKP said in a report.
"The reliability of this signal is drastically improved when the price of the asset decreases the day after the signal," added the report.
The brokerage firm is of the view that 'Hanging man' formations can be more easily identified in intraday charts than daily charts and are a very popular formation used by day traders .
Expect big swings on either side in markets in March
(source : Economic Times)The March F&O series started with lower open interest (OI) base in Nifty futures and Bank Nifty futures. Nifty has seen a rally in the past 3-4 trading sessions with OI increasing ~10-15%, indicating a long build-up in both the indices. However, the number of shares in open interest is still lower than average of the past six months.
In the past 2-3 trading sessions, we have seen strong put writing in 6100/6200/6300 strikes, indicating a positive bias for Indian markets in the near term.Nifty options chain suggests strong support at 6200 while resistance is placed at 6400 as open interests in respective strikes have maximum number of shares.
The India Volatility Index (VIX), continues its corrective trend after making a high of 20% in mid-February. VIX closed at 13.8% near its 2-year low. Our
Nifty seasonality analysis indicates that whenever the index's month-on-month return is less than 5% for four consecutive months, the following month will witness big swings. Last 10 years' data suggest that after making sideway move, market swings ~8% on either side in the concluding month.
Month-on-month return of Nifty for the past four months is in 2-3%, which suggests that we can see big swings in current month on either side. To play this scenario, we recommend buying Nifty March series 6300 strike straddle at CMP ~160 with a stop loss of 90. This strategy involves buying 6300 call at 82 and simultaneously buying 6300 put at 79.
It will make money if we see big swing sin Nifty on either side. Also, if we see spurt in IVs during this period, it will further add profits to our positions.
(The above mentioned are only views expressed by experts. Please consult your broker or financial adviser for investment in the stock markets.)
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