Footwear Q1: Premium products, asset-light expansion to determine re-rating

While Relaxo and Sreeleathers reported healthy top-line growth YoY, Bata was the standout performer on the margin front.

Most consumer discretionary companies reported sluggish revenue traction in the quarter gone by on account of a high base in the same quarter a year ago, that saw a surge in buying ahead of the implementation of the Goods and Service Tax (GST) from Q2 FY18.

Barring Relaxo and Sreeleathers, other players in the industry exhibited modest top-line performance. On the margin front, Bata India was clearly the standout performer.

Company-specific review

Bata India

An increase in average selling prices of footwear was the main contributor to the company’s revenue growth, while year-on-year (YoY) volume growth was minimal.

Although advertising expenses doubled YoY, cost control measures and a higher percentage of sales from premium products helped its operating profit margin expand.

Khadim India

Revenue growth was muted because of slow traction in the company’s 'retail' segment, that deals in premium footwear. The 'distribution' segment, through which economically priced footwear is sold, maintained its growth trajectory.

High lease rentals, expenditure relating to branding and an increase in freight expenses led to a contraction in margins.

Mirza International

While the company’s branded footwear segment (primarily B2C in nature) sales witnessed strong growth, there was a sharp de-growth in the B2B footwear and leather segments. The weak top-line performance took a toll on margins.

Relaxo

The company registered good revenue growth YoY on the back of higher sale volumes. Cost efficiencies kept the disadvantage of high raw material and employee costs at bay.

Sreeleathers

Store additions and higher footwear volumes contributed to the company’s top-line growth. In spite of controlled staff spends, margin declined because of higher operating expenses.

Expansion                                     

Addition of new stores enables footwear majors to tap new geographies and/or establish themselves more strongly in existing markets. This is particularly important not only in augmenting sales, but also tackling any future weakness in same-store sales growth.

Cost rationalisation

Company-owned company operated (COCO) outlets entail high capital investments and result in higher fixed overheads. This impacts profitability, especially when asset turns are lower than expected.

To offset this, footwear players are trying to keep rent expenses low by resizing stores and renegotiation of agreement terms with property owners.

Product launches

Introduction of new products/brands can be done keeping purpose-specific (sports, occasions, lounging etc), customer-specific (children, men and women of different age groups) or price-specific (economy, high-end) objectives in mind.

Considering how fragmented and diverse the Indian market is, the process could be challenging and generally involves high investments in initial years to position the product correctly in the minds of prospective buyers.

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Top buy & sell ideas by Ashwani Gujral, Sudarshan Sukhani, Prakash Gaba for short term

Prakash Gaba of prakashgaba.com suggests buying India Cements with target at Rs 133 and stop loss at Rs 124, ITC with target at Rs 325 and stop loss at Rs 315 and Sun Pharma Advanced with target at Rs 425 and stop loss at Rs 390.

The Nifty50 continued to be rangebound for the second consecutive session and closed the August expiry day on a flat note with a negative bias on Thursday.

The index opened flat and remained weak throughout the session, forming small bearish candle, which resembles like a 'Hammer' kind of pattern on the daily candlestick charts.

The market recovered from intraday low in the late trade but that does not change the short term outlook, experts said, adding the index is expected to be weak and remained in a consolidation mode.

The Nifty Midcap index continued to outperform frontline indices, rising 0.13 percent while the sectoral trend remained mixed with Nifty Bank, Auto and Financial Service falling around half a percent each. FMCG and Pharma indices gained over a percent each.

The Nifty50 opened below 11,700-mark at 11,694.75, tad higher over previous day's close of 11,691.90. In early trade itself, it touched an intraday high of 11,698.80 but immediately turned lower to hit an intraday low of 11,639.70 (down 52 points) in the last hour of trade. It managed to recoup some losses in the late trade and closed 15.10 points lower at 11,676.80.

According to Pivot charts, the key support level is placed at 11,644.73, followed by 11,612.67. If the index starts moving upwards, key resistance levels to watch out are 11,703.83 and 11,730.87.

The Nifty Bank index closed at 28,103.25, down 120.85 points on Thursday. The important Pivot level, which will act as crucial support for the index, is placed at 27,965.44, followed by 27,827.67. On the upside, key resistance levels are placed at 28,237.34, followed by 28,371.47.

In an interview to CNBC-TV18, top market experts recommend which stocks to bet on for good returns:

Ashwani Gujral of ashwanigujral.com

Buy Glenmark Pharma with a stop loss of Rs 654, target of Rs 680

Buy ICICI Bank with a stop loss of Rs 340, target of Rs 354

Buy Sun Pharma with a stop loss of Rs 634, target of Rs 660

Buy NIIT Tech with a stop loss of Rs 1340, target of Rs 1380

Buy Tata Steel with a stop loss of Rs 600, target of Rs 625

Sudarshan Sukhani of s2analytics.com

Buy ACC with a stop loss at Rs 1610 and target of Rs 1670

Buy Ajanta Pharma with a stop loss at Rs 1235 and target of Rs 1280

Buy Godrej Consumer with a stop loss at Rs 1425 and target of Rs 1485

Sell ICICI Prudential with a stop loss at Rs 381 and target of Rs 372

Sell IRB Infra with a stop loss at Rs 194 and target of Rs 185

Prakash Gaba of prakashgaba.com

Buy India Cements with target at Rs 133 and stop loss at Rs 124

Buy ITC with target at Rs 325 and stop loss at Rs 315

Buy Sun Pharma Advanced with target at Rs 425 and stop loss at Rs 390

Buy Tata Steel with target at Rs 620 and stop loss at Rs 602

Capital Ways Investment Adviser
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Top buy & sell ideas by Ashwani Gujral, Sudarshan Sukhani, Mitessh Thakkar for short term

Mitessh Thakkar of mitesshthakkar.com is of the view that one can buy Bharat Forge with a stop loss of Rs 658 and target of Rs 690 and Century Textiles and Industries with a stop loss of Rs 940 and target of Rs 1000 and can sell Sun TV with a stop loss of Rs 781 and target of Rs 740.

The Nifty50 after opening flat traded rangebound throughout the session but started correcting gradually in late morning deals. It fell below psychological 11,700-mark in the last half an hour of trade and closed tad below the same level on Wednesday.

The index formed bearish candle on the daily candlestick charts ahead of expiry of August futures & options contracts on Thursday.

The Nifty50 opened at 11,744.95 and closed at 11,691.90. In the morning, the index after flat opening dipped and immediately bounced back to hit an intraday high of 11,753.20 followed by volatility. It started correcting gradually in late morning deals and hit a day's low of 11,678.85 in late trade. The index closed 46.60 points lower at 11,691.90.

After today's correction, the index is likely to correct further and if it breaks 11,600 levels then major fall is likely, experts said, adding the volatility is likely to be high on Thursday due to expiry of August futures & options contracts.

According to Pivot charts, the key support level is placed at 11,662.73, followed by 11,633.57. If the index starts moving upwards, key resistance levels to watch out are 11,737.13 and 11,782.37.

The Nifty Bank index closed at 28,224.10, down 45.55 points on Wednesday. The important Pivot level, which will act as crucial support for the index, is placed at 28,146.57, followed by 28,069.04. On the upside, key resistance levels are placed at 28,322.87, followed by 28,421.63.

In an interview to CNBC-TV18, top market experts recommend which stocks to bet on for good returns: 

Ashwani Gujral of ashwanigujral.com

Buy SRF with a stop loss of Rs 2000, target of Rs 2125

Buy Capital First with a stop loss of Rs 640, target of Rs 665

Buy Bajaj Finance with a stop loss of Rs 2970, target of Rs 3020

Sell IndusInd Bank with a stop loss of Rs 1920, target of Rs 1865

Sell Hindustan Petroleum Corporation with a stop loss of Rs 261, target of Rs 247

Sudarshan Sukhani of s2analytics.com

Buy Escorts with a stop loss at Rs 887 and target of Rs 900

Buy Strides Pharma with a stop loss at Rs 470 and target of Rs 500

Buy United Breweries with a stop loss at Rs 1365 and target of Rs 1425

Sell BEML with a stop loss at Rs 835 and target of Rs 790

Sell Can Fin Homes with a stop loss at Rs 322 and target of Rs 307

Mitessh Thakkar of mitesshthakkar.com

Buy Bharat Forge with a stop loss of Rs 658 and target of Rs 690

Buy Century Textiles and Industries with a stop loss of Rs 940 and target of Rs 1000

Sell Sun TV with a stop loss of Rs 781 and target of Rs 740

Buy PVR with a stop loss of Rs 1344 and target of Rs 1405

Capital Ways Investment Adviser
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Buy or sell: Top stock trading ideas by market experts which are good short term bets

Rajesh Agarwal of AUM Capital recommends buying JSW Steel with stop loss at Rs 360 and target of Rs 375, Sterlite Technologies with stop loss at Rs 357 and target of Rs 377 and Universal Cables with stop loss at Rs 208 and target of Rs 225.

Indian market hit fresh records on August 28 supported by positive global cues. The Nifty50 hit a new high of 11,760, but witnessed profit booking at higher levels and closed near its opening level forming a ‘Doji’ type of candle on the daily candlestick charts.

Although the Nifty50 surpassed 11,750, it witnessed profit booking near 11,760 which pushed the index towards 11,700 levels. However, bulls managed to pull the index near its opening level of 11,731. The index finally closed 46 points higher at 11,738.

According to Pivot charts, the key support level is placed at 11,712, followed by 11,686. If the index starts moving upwards, key resistance levels to watch out are 11,762 and 11,786.

The Nifty Bank index closed at 28,269, up 5 points. The important Pivot level, which will act as crucial support for the index, is placed at 28,152, followed by 28034. On the upside, key resistance levels are placed at 28,388, followed by 28,506.

Here are the top stock trading ideas which can give good returns in the near term:

Abhishek Mondal of Guiness Securities

Buy Vedanta with target at Rs 255 and stop loss at Rs 217

Buy Kotak Mahindra Bank with target at Rs 1330 and stop loss at Rs 1250

Buy Gujarat Narmada Valley Fertilizers and Chemicals with target at Rs 135 and stop loss at Rs 110

Rajesh Agarwal of AUM Capital

Buy JSW Steel with stop loss at Rs 360 and target of Rs 375

Buy Sterlite Technologies with stop loss at Rs 357 and target of Rs 377

Buy Universal Cables with stop loss at Rs 208 and target of Rs 225

Buy Jet Airways with stop loss at Rs 287 and target of Rs 307

Buy Axis Bank with stop loss at Rs 648 and target of Rs 678

Capital Ways Investment Adviser
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Top buy & sell ideas by Ashwani Gujral, Sudarshan Sukhani, Mitessh Thakkar for short term

Sudarshan Sukhani of s2analytics.com suggests buying Hindalco Industries with a stop loss of Rs 227 and target of Rs 236, Cipla with a stop loss at Rs 648 and target of Rs 675 and TCS with a stop loss at Rs 2035 and target of Rs 2100.

The Nifty50 continued its northward journey for the sixth consecutive week as it crossed another milestone of 11,700 on first day of August expiry week and ended at record closing high, driven by positive global cues. The rally in bank stocks on hope of early resolution to non-performing assets also boosted investors’ sentiment.

The index formed robust bullish candle on the daily candlestick charts on Monday. The broader market also participated in the rally with the Nifty Midcap rising over a percent while all sectoral indices ended in the red with Nifty Bank, IT and Metal rising around 1.5 percent each.

The consistent upward movement has been taking indices to newer highs every week which seems to be indicating that the Nifty may be heading towards 11,800-12,000 but one should keep cautious stance as the Nifty rallied more than 6 percent for five consecutive weeks, experts said, adding the volatility may increase ahead of expiry of August derivative contracts on Thursday.

The Nifty50 after opening directly above 11,600 levels gradually moved up as the day progressed and hit an intraday record high of 11,700.95 in late trade. The index closed 134.90 points higher at 11,692.

India VIX fell 0.76 percent to 12.31 levels and overall lower volatility suggests that bulls are likely to hold the tight grip on the market, experts feel.

According to Pivot charts, the key support level is placed at 11,624.73, followed by 11,557.47. If the index starts moving upwards, key resistance levels to watch out are 11,730.13 and 11,768.27.

The Nifty Bank index closed at 28,264.20, up 429.50 points on Monday. The important Pivot level, which will act as crucial support for the index, is placed at 28,042.34, followed by 27,820.47. On the upside, key resistance levels are placed at 28,401.94, followed by 28,539.67.

Ashwani Gujral of ashwanigujral.com

Buy ICICI Bank with stop loss of Rs 335, target of Rs 352

Buy Havells India with stop loss of Rs 714, target of Rs 740

Buy Hindalco Industries with a stop loss of Rs 225, target of Rs 240

Buy Jubilant Foodworks with a stop loss of Rs 1535, target of Rs 1580

Buy GSFC with a stop loss of Rs 114, target of Rs 126

Sudarshan Sukhani of s2analytics.com

Buy Hindalco Industries with a stop loss of Rs 227 and target of Rs 236

Buy Cipla with a stop loss at Rs 648 and target of Rs 675

Buy TCS with a stop loss at Rs 2035 and target of Rs 2100

Buy Torrent Pharma with stop loss at Rs 1750 and target of Rs 1800

Sell Tata Motors with stop loss at Rs 260 and target of Rs 252

Mitessh Thakkar of mitesshthakkar.com

Buy Adani Power with a stop loss of Rs 32.8 and target of Rs 35

Buy GSFC with a stop loss of Rs 114 and target of Rs 125

Buy TVS Motor with a stop loss of Rs 550 and target of Rs 590

Buy Balmer Lawrie with a stop loss below Rs 220 for target of Rs 238

Capital Ways Investment Adviser
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Future Retail surges 6% on report of Google, Paytm teaming up to buy 7-10% stake

Deal valuation pegged at Rs 3,500-4,000 crore, according to a report in The Economic Times.

Shares of Future Retail soared 6 percent on Monday morning as investors reacted to a report that Google and Paytm were looking to buy stake worth Rs 3,500-4,000 crore in the firm.

The stock touched an intraday high of Rs 552.00 and an intraday low of Rs 540.00.

According to a report in The Economic Times, the internet giant and e-wallet major are likely to form a consortium to buy 7-10 percent stake in Future Retail. This more puts the group in competition against Amazon, which has also reportedly submitted a term sheet to buy the same stake in the firm, the publication reported, citing sources.

Kishore Biyani of Future Group recently told the paper that a deal was likely to be closed with a foreign investor in the next two months. The fund infusion, he added, could be through primary and secondary share sale.

The company recently reported 3.56 percent rise in net profit for the June quarter at Rs 153.12 crore, against a net profit of Rs 147.85 crore in the same period a year ago. Future Retail also announced resignation of Rajan Bharti Mittal as non-executive director of the company "due to preoccupations".

In June 2018, three years after the merger, Bharti group sold more than half of its stake in Future Retail for nearly of Rs 1,697 crore through open market transactions. Bharti group entity Cedar Support Services disposed of 3.03 crore shares, amounting to 6.04 percent stake in Future Retail.

The stock has been trading flat in the past one month as well as in the past three days. At 09:20 hrs, Future Retail was quoting at Rs 545.90, up Rs 26.75, or 5.15 percent, on the BSE.

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Indian ADRs: Wipro gains nearly 3%, Tata Motors, HDFC Bank up

Indian ADRs ended mostly higher on Friday. Dr Reddy's Laboratories was up 0.37 percent and HDFC Bank rose 0.97 percent.

Indian ADRs ended mostly higher on Friday. In the IT space, Wipro added 2.77 percent at USD 5.19 and Infosys was down 0.39 percent at USD 20.30.

In the banking space, HDFC Bank rose 0.97 percent at USD 100.13 and ICICI Bank shed 0.74 percent at USD 9.45.

In the other sectors, Tata Motors rose 0.94 percent at USD 18.35 and Dr Reddy's Laboratories was up 0.37 percent at USD 34.97.

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Top buy & sell ideas by Ashwani Gujral, Prakash Gaba, Mitessh Thakkar for short term

Mitessh Thakkar of mitesshthakkar.com is of the view that one can buy HCL Tech with a stop loss of Rs 1008 and target of Rs 1060 and can sell Indian Bank with a stop loss of Rs 339.5 and target of Rs 322 and Repco Home with a stop loss of Rs 593 and target of Rs 560.

The Nifty50 after crossing 11,600 levels for the first time and hitting a fresh record in the opening cooled off in initial half an hour of trade itself to remain in a consolidation mode for rest of the session on Thursday.

The index closed mildly higher, forming Hanging Man kind of pattern on the daily candlestick charts as the opening value is lower than closing value.

The Nifty50 crossed 11,600 levels for the first time and opened at all-time intraday high of 11,620.70 but lost all gains in initial half an hour of trade itself to hit an intraday low of 11,546.70 and traded in a range of about 40 points for rest of the session. The index closed 11.90 points higher at 11,582.80.

According to Pivot charts, the key support level is placed at 11,546.1, followed by 11,509.4. If the index starts moving upwards, key resistance levels to watch out are 11,620.1 and 11,657.4.

The Nifty Bank index closed at 28,027.90, down 230 points on Thursday. The important Pivot level, which will act as crucial support for the index, is placed at 27,887, followed by 27,746.1. On the upside, key resistance levels are placed at 28,247.1, followed by 28,466.3.


Sell Jindal Steel & Power  with a stop loss of Rs 205, target of Rs 190

Sell Can Fin Homes with a stop loss of Rs 335, target of Rs 320

Buy Pidilite Industries with a stop loss of Rs 1150, target of Rs 1185

Buy Colgate Palmolive with a stop loss of Rs 1175, target of Rs 1230

Buy Exide Industries with a stop loss of Rs 296, target of Rs 312

Prakash Gaba of prakashgaba.com

Buy Ashok Leyland with target at Rs 137 and stop loss at Rs 130

Buy HCL Tech with target at Rs 1040 and stop loss at Rs 1016

Buy Maruti Suzuki with target at Rs 9365 and stop loss at Rs 9150

Buy Pidilite Industries with target at Rs 1190 and stop loss at Rs 1150

Mitessh Thakkar of mitesshthakkar.com

Buy HCL Tech with a stop loss of Rs 1008 and target of Rs 1060

Sell Indian Bank with a stop loss of Rs 339.5 and target of Rs 322

Sell Repco Home with a stop loss of Rs 593 and target of Rs 560

Buy Bharat Forge with a stop loss of Rs 640 and target of Rs 675

Buy NTPC with a stop loss of Rs 160 and target of Rs 172

Capital Ways Investment Adviser
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Check out insider trades for August 21; Tata Motors, Axis Bank, Biocon, RIL in focus

Shashikant Rathi sold 11,500 shares of Axis Bank through market sale on August 20, 2018. K.V.N.Yesubabu sold 26,600 shares of Yes Bank through market sale on August 20, 2018. Deepak Datta sold 42,824 shares of Reliance Industries through market sale on August 20, 2018

Skipper Ltd.: Siddharth Bansal (promoter) bought 1,04,68,725 shares through market purchase on August 21, 2018

Tata Motors Ltd: Tata Sons Ltd bought 98,13,81,852 shares through market purchase on August 20, 2018

Motor & General Finance Ltd.: GEE GEE Holdings Pvt. Ltd. bought 3,28,772 shares through market purchase on August 20, 2018

Nava Bharat Ventures Ltd.: A.N.Investments Pvt.Ltd. bought 89,35,000 shares through market purchase on August 20, 2018

Websol Energy System Ltd: Sohan Lal Agarwal bought 18,83,108 shares through market purchase on August 20, 2018

Axis Bank Ltd: Shashikant Rathi sold 11,500 shares through market sale on August 20, 2018

Yes Bank Ltd: K.V.N.Yesubabu sold 26,600 shares through market sale on August 20, 2018

Reliance Industries Ltd.: Deepak Datta sold 42,824 shares through market sale on August 20, 2018

Biocon Ltd: Mukesh Kamath sold 16,270 shares through market sale on August 20, 2018

ICRA Ltd: L.Shivakumar sold 9,872 shares through market sale on August 20, 2018

K.M.Sugar Mills Ltd: Umadevi Jhunjhunwala sold 26,64,683 shares through market sale on August 19, 2018

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Ashish Kacholia cuts 7% stake in Vadilal Industries in 2 consecutive sessions, stock down 21.5%

The total stake, which Ashish Kacholia offloaded in two days, was worth Rs 30 crore.

Ace investor Ashish Ramchandra Kacholia reduced his stake further in ice cream maker Vadilal Industries for second consecutive session on Tuesday. The stock was down 2 percent today, taking total loss to 24.80 percent in four straight sessions.

In fact, when he offloaded 5 percent stake on Monday, the stock was locked at 20 percent lower circuit.

Kacholia on Tuesday sold 1,42,527 equity shares (representing 1.98 percent of paid-up equity) of the company at Rs 548.35 per share.

On Monday, he sold 3.62 lakh equity shares (3,06,045 shares on NSE and 56,260 shares on BSE) through open market transactions, at a price of Rs 612.18 per share and Rs 604.05 respectively.


The total stake, which he offloaded in two days, was worth Rs 30 crore.

As of June 2018, Kacholia held 5,18,432 equity shares (representing 7.21 percent of total paid-up equity) of the company, which after these bulk deals reduced to 13,600 shares (0.19 percent of total equity).

Vadilal has reported healthy 31 percent year-on-year growth in June quarter consolidated profit to Rs 32.34 crore but revenue declined 3.44 percent to Rs 229.16 crore YoY.

The company in June quarter lowered its outstanding debt to Rs 94.4 crore from Rs 102.6 crore a year ago, leading to 14 percent reduction in interest payout.

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Looking for momentum plays? Top 5 stocks which could give 9-15% return

If Nifty holds above 11,480, we expect the rally to continue towards 11,700-11,750 levels. On the downside, immediate support is seen at 11,480. A break below this level would see profit booking towards 11,340, says Ashish Chaturmohta of Sanctum Wealth Management.

Sanctum Wealth Management

The Nifty started the week on a strong note by hitting a fresh high of 11,565 on Monday and 11,581.75 on Tuesday. BSE Midcap outperformed benchmark indices, gaining 1.05 percent, while the BSE Smallcap lagged with a 0.14 percent gain on Monday.

On the daily chart, the Nifty has taken support from its rising trend line connecting the lows of 10,558 and 10,946 to cross the previous high of 11,495. It has formed a bullish candlestick pattern above the breakout level, which indicates that momentum is likely to continue.

The Nifty continues to maintain its sequence of higher highs and higher lows. If it holds above 11,480, we expect the rally to continue towards 11,700-11,750 levels. On the downside, immediate support is seen at 11,480. A break below this level would see profit booking towards 11,340.

In options, the highest open interest for puts is seen at 11,400 strike, followed by 11,300, which indicates supports are shifting higher. A significant amount of put writing is seen at 11,500. Call unwinding was witnessed in 11,400, 11,500 and 11,600 strikes, suggesting that market participants expect the index to move higher from current levels.

India VIX was down a percent at 13.03 levels. It has been easing from the recent high of 13.86 and resistance zone of 14-14.5 levels. A further decline will be supportive for the market.

Here is a list of top 5 stocks which could give 9-15% return in the next 1 month:

L&T Finance Holdings: Buy| CMP: Rs 187| Stop Loss: Rs 178| Target: Rs 210-215| Return: 15%

After hitting an all-time high of Rs 213.85 in the month of October 2017, stock witnessed correction down to Rs 145-140 levels. It has seen consolidation between Rs 186 and Rs 140 odd levels for nine months and formed a base.

After a strong rally from the bottom of the base to Rs 186 levels, the stock has been consolidating in a narrow range between Rs 186 and Rs 172 levels for last three weeks.

On Monday, the stock witnessed a breakout from the pattern with momentum and volumes indicating buying participation in the stock.

The daily MACD line has given positive crossover with its average and the weekly line has moved above equilibrium level of zero suggesting consolidation phase is over and resumption of the uptrend.

Thus, the stock can be bought at current level and on dips to Rs 183 with a stop loss below Rs 178 for a target of Rs 210-215 levels.

RBL Bank: Buy| CMP: Rs 590| Stop Loss: Rs 560| Target: Rs 675| Return: 14%

The stock had witnessed rally from low of Rs 274 in September 2016 to high of Rs 600 odd levels in May 2017. Since then the stock has been consolidating its gains Rs 600 and Rs 450 levels to form a base.

For the last six weeks, the price has seen range bound between Rs 590 and Rs 550 odd levels. Yesterday stock witnessed breakout from this short-term consolidation with momentum and volumes indicating buying participation in the stock.

The price has given a breakout from Bollinger band on the upside with the expansion of band on daily chart suggesting the start of the fresh uptrend and likely to see a breakout from major consolidation pattern.

MACD line on the daily chart has given positive crossover with its average after turning up from equilibrium level of zero. Thus, the stock can be bought at current levels and on dips to Rs 580 with a stop loss below Rs 560 and a target of Rs 675 levels.

Pidilite Industries: Buy| CMP: Rs 1145| Stop Loss: Rs 1105| Target: Rs 1250| Return: 9%

The stock is in a long-term uptrend forming tops and higher bottoms on the weekly charts. After touching a high of Rs 1195 in the month of May, the stock corrected down to Rs 1019 levels.

The price took support at 50 percent retracement of the rise from Rs 845 to Rs 1195. After consolidating between Rs 1019 and Rs 1100 odd levels stock witnessed breakout on the upside and trading in above breakout levels.

Price has been holding above 21-day moving average that has acted as support and resistance for the stock in the past. In Monday’s session, the stock witnessed momentum and volumes suggesting stock starting uptrend.

Thus, the stock can be bought at current level and on dips to Rs 1130 with a stop loss below Rs 1105 for a target of Rs 1250 levels.

Sun Pharmaceutical Industries: Buy| CMP: Rs 623| Stop Loss: Rs 590| Target: Rs 710| Return: 14%

The stock had been downtrend from an all-time high of Rs 1201 to low of Rs 432. Over the past one-year stock has formed a double bottom pattern on weekly between Rs 600 and Rs 432 levels. The rally from the second bottom has seen high volumes indicating value buying at lower levels.

Last week stock witnessed a breakout from the pattern on strong momentum and high volumes after consolidating below the neckline level. Price has moved above long-term 200-day moving average and recent swing took support at the average to move higher.

Thus, the stock can be bought at current level and on dips to Rs 610 with a stop loss below Rs 590 and a target of Rs 710 levels.

Larsen & Toubro Infotech: Buy| CMP: Rs 1881 | Stop Loss: 1800| Target: Rs 2100| Return: 11%

The stock is in long-term uptrend forming higher tops and higher bottoms on weekly charts. For the last six weeks stock has been consolidating between Rs 1880 and Rs 1650 odd levels.

The stock has closed at breakout levels. MACD line on the daily chart has moved above neutral level of zero and given positive crossover with its average suggesting stock is likely to see a breakout on the upside.

Thus, the stock can be bought at current level and on dips to Rs 1860 with a stop loss below Rs 1800 for a target of Rs 2100 levels.

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MFs added this recently-listed stock to their portfolio last month

Data showed that on a month-on-month basis, the financials sector emerged as the top gainer, having risen over 10% in July

Recently-listed TCNS Clothing and International Paper were two stocks that mutual fund houses added to their portfolios in July, according to data provided by IDBI Capital.

The data, based on market value, saw fund houses buying TCNS Clothing shares worth Rs 204.71 crore and International Paper shares worth Rs 1.37 crore.

Reliance Mutual Fund was the biggest buyer of TCNS Clothing, having bought shares worth Rs 99.43 crore. Axis Mutual Fund bought shares worth Rs 58.83 crore, and Sundaram MF, Edelweiss MF and Aditya Birla MF were the other buyers.

In the case of International Paper, the entire Rs 1.37 crore worth of shares was bought by Principal Mutual Fund.

Max Ventures and Industries was among those companies that witnessed exits by asset management companies. Reliance Mutual Fund sold Max Ventures shares worth Rs 60 lakh.

The data also throws up sectoral trends in terms performance. On a month-on-month basis, the financials sector emerged to be the top gainer, having risen over 10 percent in terms of market value.

The consumer goods and energy sectors were next in line from the top, while the media and metals sectors made up the bottom two.

On an annual basis, the telecom sector is the biggest gainer, up around 94 percent, followed by the IT and consumer goods sectors, which rose 85 and 65 percent, respectively.

"Domestic mutual funds turned out to be net equity buyers for July 2018. Mutual Funds were net equity buyers in 22 trading session for an amount of Rs 3,995.02 crore against net buying of Rs 9,231 crore in June 2018. In July, mutual funds were net buyers in equities for 15 trading sessions and net sellers in the remaining 7 sessions. Net buying in equities were recorded highest at Rs 1,095 Cr on 17th July 2018; while net selling was recorded at Rs 2,326 crore on July 26, 2018," analysts at IDBI Capital wrote in their report.

Mutual funds' asset base rose by 5 percent month on month to Rs 23.96 lakh crore, as at the end of July, driven by participation from retail investors and a spirited investor awareness campaign by the industry.

The total assets under management (AUM) of the mutual fund industry, which has 42 players, was Rs 22.86 lakh crore as at the end of June, according to the data by Association of Mutual Funds in India (AMFI).

"The monthly rise in the asset base is mainly due to the industry body's investor awareness campaign and strong participation from retail investors," AMFI Chief Executive NS Venkatesh told PTI.

Besides, Systematic Investment Plan (SIPs) continue to be the fancy of retail investors and people continue to invest through the route as it allows investors to invest in small amounts periodically instead of investing everything at one go, Venkatesh said.

Retail equity AUM touched Rs 10 lakh crore last month. It stood at Rs 9.61 lakh crore as at the end of June.

As many as 9 lakh new folios were added last month, taking the total to an all-time high of 7.55 crore folios as at the end of July, up from 7.46 crore folios at the end of the previous month.

Capital Ways Investment Adviser
605, Industry House , AB road Indore (MP) 452001
info@capitalways.com
Contact Us: 08517810864


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Top buy & sell ideas by Ashwani Gujral, Sudarshan Sukhani, Prakash Gaba for short term

Prakash Gaba of prakashgaba.com suggests buying Berger Paints with target at Rs 350 and stop loss at Rs 320, Eicher Motors with target at Rs 30000 and stop loss at Rs 28500 and Kotak Mahindra Bank with target at Rs 1310 and stop loss at Rs 1272.

The bears managed to take control at Dalal Street as the Nifty50 snapped a five-day winning streak on August 10. The index after opening lower remained in the negative territory throughout the session, forming a bearish candle on the daily charts and Spinning Top pattern on the weekly scale.

The index continued to gain for a third consecutive week, rising 0.6 percent taking the total three-week gain to 3.8 percent.

The 30-share BSE Sensex lost 155.14 points to 37,869.23 and the Nifty Midcap index participated in the fall, shedding half a percent while the sectoral trend was mixed.
The Nifty50, after opening lower at 11,474.95, extended losses as the day progressed and hit an intraday low of 11,419.65, dragged by banking and financials, and metals. The index closed 41.20 points lower at 11,429.50.

According to Pivot charts, the key support level is placed at 11,406.53, followed by 11,383.57. If the index starts moving upwards, key resistance levels to watch out are 11,465.63 and 11,501.77.

The Nifty Bank index closed at 28,124.25, down 195.75 points on Friday. The important Pivot level, which will act as crucial support for the index, is placed at 28,015.3, followed by 27,906.4. On the upside, key resistance levels are placed at 28,305.5, followed by 28,486.8.

In an interview to CNBC-TV18, top market experts recommend which stocks to bet on for good returns: 

Ashwani Gujral of ashwanigujral.com

Sell Tata Motors DVR with stop loss of Rs 145, target of Rs 132

Sell Can Fin Homes with stop loss of Rs 325, target of Rs 310

Sell Jindal Steel & Power with stop loss of Rs 208, target of Rs 192

Buy Berger Paints with stop loss of Rs 324, target of Rs 338

Buy Jubilant Foodworks with stop loss of Rs 1500, target of Rs 1545

Sudarshan Sukhani of s2analytics.com

Sell UPL with stop loss at Rs 638 and target of Rs 615

Sell Ujjivan Financial Services with stop loss at Rs 359 and target of Rs 332

Sell Tata Motors with stop loss at Rs 252 and target of Rs 240

Buy United Breweries with stop loss at Rs 1190 and target of Rs 1240

Buy Strides Shasun with stop loss at Rs 404 and target of Rs 417

Prakash Gaba of prakashgaba.com

Buy Berger Paints with target at Rs 350 and stop loss at Rs 320

Buy Eicher Motors with target at Rs 30000 and stop loss at Rs 28500

Buy Kotak Mahindra Bank with target at Rs 1310 and stop loss at Rs 1272

Sell Canara Bank with target at Rs 270 and stop loss at Rs 295

Capital Ways Investment Adviser
605, Industry House , AB road Indore (MP) 452001
info@capitalways.com
Contact Us :08517810864


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Top buy & sell ideas by Ashwani Gujral, Mitessh Thakkar, Prakash Gaba for short term

Mitessh Thakkar of mitesshthakkar.com suggests selling Aurobindo Pharma with a stop loss of Rs 731 for target of Rs 696 and Bank of Baroda...