Wednesday, April 7, 2021

STEEL BECOMING PILLAR FOR NIFTY!!!!

CONSUMER STOCKS
In upcoming days we will see very decent volume growth, particularly from the Q4 perspective. Given that we are in a semi lockdown situation, in certain pockets like Britannia, HUL and Marico, the volume growth could be a little better. Overall, though we do not expect a very strict lockdown, this thing really can’t be allowed to go out of hand. But in any case, we have a very positive outlook for companies like Britannia, Tata Consumer and HUL even otherwise. From a one year perspective, these stocks can give a decent amount of upside from current price point.

HIKE IN STEEL STOCKS


This quarter is all about metal and the general Street consensus is that there is going to be a lot of room for a positive surprise. One thing which we have to bear in mind is that in case of metals, for most of the companies, the EBITDA growth will come from higher pricing. The only company which would deliver a very strong double digit volume growth would be JSW Steel. But we think that from a short-term perspective, Tata Steel can give a good amount of positive surprise but from investment perspective, we prefer SAIL, JSPL and JSW Steel because these companies have a larger story in terms of debt repayment and much better upgrades post Q4, the overall environment being better in India.

BHARTI AIRTEL & RELIANCE



In case of Reliance we have already seen a big outperformance and it was one of the best performing stocks from April till December 2020. After that, the stock is consolidating as we are not seeing any incremental growth triggers on the telecom part and a large part of the story in terms of retail and the OTC has been known. So the market is just trying to see some sort of a consolidation till we see fresh triggers in terms of the earnings growth for the next one or two quarters.Unlike Reliance, Bharti has not been able to attract any major global investors and it continues to remain a very slow moving telecom play with no price increase. So after some point people have got a little frustrated with the fact that we are not going to see any meaningful earning growth at least in the near term. So the stock has correspondingly underperformed. But we think that telecom is not a short term or two quarter story. So people who have let us say one or two year kind of timeframe should definitely look at allocating a good amount of money into both Reliance and Bharti because a decent amount of growth will come through in earnings over next two years.
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Monday, April 5, 2021

MARKET DECLINED DUE TO RISE IN CORONA CASES

SELL  HINDALCO BELOW 350 TARGET 348/343 SL 356


Last week, market jumped 2% rejuvenated by the buying interest post-stimulus package announcement in the us. Last week sensex added 1021 points to end at 50029 &nifty rose 360 points, to close at 14867 levels while this week market started on a negative note for the mainly due to sharp surge in covid-19 cases across the country. Despite, stable global cues, the indian indices lost its ground and ended with losses of nearly 1.5% to end at 14638 levels. The sharp surge in covid-19 cases has dented investor sentiments and has increased fear of harsh restrictions which would impact economic activity. The upcoming q4 fy21 earnings season will begin in a week’s time, so investors’ focus will be shifting back to fundamentals. This time investors’ expectations are rife for a strong earnings season led by healthy demand recovery and low base effect. On the earnings front, revenue growth, margins expansion and management commentary will be key things to watch out. Further, the upcoming rbi monetary policy would be actively tracked by investors. We expect the rbi to maintain its dovish stance and leave key rates to be unchanged.
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Thursday, April 1, 2021

UPL DANCED ON MY TUNE

 UPL Ltd., incorporated in the year 1985  is a Large Cap company (having a market cap of Rs 49032.Operating in  Pesticides/Agro Chemicals sector. For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 9193.00 Crore, up 1.99 % from last quarter Total Income of Rs 9014.00 Crore and up 3.15 % from last year same quarter Total Income of Rs 8912.00 Crore. Company reported net profit after tax of Rs 951.00 Crore in latest quarter. UPL has been struggling to sustain above its long term mean+1*sigma levels since September 2019. As the stock was able to move above these levels in the recent up move, further momentum towards its 2*sigma, placed above Rs 700 cannot be ruled out.
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Saturday, March 27, 2021

HOW TO CHOOSE THE RIGHT INTRADAY TRADING STOCKS



TRADE ONLY IN LIQUID  STOCKS
Liquidity is the most important intraday trading tip while choosing the right stocks to trade during the day. Liquid stocks have huge trading volumes whereby larger quantities can be purchased and sold without significantly affecting the price. Generally, lesser liquid stocks do not provide traders the opportunity to purchase and sell larger quantities due to lack of too many buyers. Some traders may argue that illiquid stocks offer bigger opportunities with rapid price modifications. However, statistics show that volatile stocks show greater movements in a short period of time. Thus, most of the possible gains dissipate while the downside risk still looms. Nonetheless, the liquidity of the stocks depends on the quality of the trades placed by the traders. For example, a volume of 50,000 to 75,000 shares is sufficient if the trade is for 50 or 100 Rs; however, if the volume is a few hundred or thousands, volume requirements significantly become larger.While selecting liquid stocks, don’t forget to check liquidity at various price levels. You will find some stocks that are highly liquid at a lower price level, but the volume drops drastically after reaching a certain price zone. Understanding the variability of liquidity at different price levels will help you buy these stocks at the right time.
STAY AWAY FROM VOLATILE STOCKS
It is commonly noticed that a low daily volume of traded stocks or those where some huge news is expected to move in an unpredictable way. Sometimes, the stock may show volatility even after the announcement of the big news. Traders are recommended to avoid intraday trading in such stocks. A few volatile stocks are in the mid-size segment while most stocks traded in the low-cap categories like S, T, and Z are highly chaotic. In addition to being volatile, these stocks have low daily volumes, making them illiquid.Keeping the above warning in mind, let’s now also tell that a certain degree of volatility indicates active market and intraday traders can profit by successfully betting in these stocks. Although there is no rule, most intraday traders acknowledge shares with 3-5 percent of price movement on either side as the best intraday stocks.
TRADE IN GOOD CORRELATION STOCKS
An intraday tip for choosing the right stock is to opt for those that have a higher correlation with major sectors and indices. This means when the index or the sector sees an upward movement, the stock price also increases. Stocks that move according to the sentiment of the group are reliable and often follow the expected movement of the sector. For example, strengthening of the Indian Rupee against the Dollar will generally affect all information technology companies dependent on the US markets. A stronger rupee implies lower earnings for the IT companies and weakening rupee will result in higher export incomes for these companies.
PICK AFTER REASERCH
Undertaking quality research is one of the most vital intraday tips that traders must always remember. Unfortunately, most day traders avoid doing their research. Identifying the index and then finding sectors that are of interest is recommended. The next step is to create a list of several stocks with these sectors. Traders need not necessarily include sector leaders, but rather identify stocks that are liquid. Technical analysis and determining the support and resistance levels along with studying the fundamentals of these stocks will help traders find the right stocks to profit through intraday/day trading.Intraday trading has inherent risks, but speed plays a vital role in making all the difference. Earning profits through small price fluctuations during the few trading hours is not an easy task. Angel Broking Angel Eye helps to monitors stocks in real-time. Being browser-based, you can easily do online share trading from anywhere, without the speed being affected. The platforms help in taking Quick decisions, thus enabling traders to book profits.
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Wednesday, March 24, 2021

BEARS GOT ACTIVE BEFORE MARCH F&O EXPIRY

The market ended near a 1-month low on March 24 amid weak global cues and fears of a second wave of COVID infections in India. At close, Sensex was down 871 points at 49180, and Nifty was down 265 points at 14549. Among sectors, Nifty Metal and PSU bank indices slipped 3 percent each, while Nifty Auto and Nifty Bank shed over 2% each. BSE Midcap and Smallcap indices shed over 1.5% each. More than 100 stocks, including Mindtree, KPIT Technologies, Inox Wind, Godrej industries, Adani Enterprises and Ambuja Cements, hit a fresh 52-week high on the BSE.

Though we have not seen any major correction in the benchmark yet, the uneasiness is certainly increasing with the rapid rise in the COVID cases. Besides, global cues are also mixed. We were hoping for some respite from the banking front but it failed to build on the previous session’s gain. Put together, indications are now pointing towards further slide in the index while volatility is likely to remain high due to the scheduled expiry of March month contracts. We reiterate our bearish yet cautious view and suggest maintaining positions on both sides.

Tuesday, March 23, 2021

WHAT TO BUY FOR 50-60% RETURN?

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For those who want to bet on a little higher risk, cyclicals would probably generate faster returns. However, I think the consumption space and FMCG in particular, could generate a steady return and that is why some of the long-term investors like them.
There are a few companies which remain in the merit list for us. One among them is a company called Infibeam. It is a company which is in the fin tech space and it is emerging stronger. They are facing a certain amount of challenges as far as the market perception is concerned, but in my view, given the track record that they have demonstrated and executed, I would think that this company has a relatively strong proposition to provide a multiplier set of returns. In the Indian market, analysts and investors probably understand a little less about the fin tech space. With some degree of understanding, these companies could command relatively better valuations. Along with that, there are opportunities in the mid tier IT companies which are basically aligning themselves largely with the cloud computing and digital space. Here, one could see a CAGR of around 25-30% over the next 4-5 years. There are select companies in the portfolio where we feel that opportunity is there and risk is worth taken.
On one hand, there is content and on the other hand, there is distribution. If you can plug your content to the distribution well, that is where the larger growth is going to be. The growth in the market cap of some of the companies in recent times can be linked to the OTT platforms which have generated a significant amount of wealth for these companies who are willing to expand globally. In India, most of the companies have got strong content -- be it the Zee group & Network 18 Group they are basically registering higher amounts of returns on the OTT side. That is an area where we think one can think of creating wealth.

Thursday, March 11, 2021

Wednesday, March 10, 2021

WHAT SHOULD INVESTOR DO ON 12 MARCH ????

"BUY ASHOKLEY FUT ABOVE 126 TGT 127.80/129 SL 122"

Today  market closed in the green for the third consecutive day in a row on March 10 following a positive trend in global markets. The Sensex rose by over 250 points while the Nifty closed above 15100 levels. In Sector stocks up move was seen in metals, IT, healthcare, consumer durables, capital goods while profit taking was seen in oil & gas, utilities, energy and power stocks. Market will remain shut on Thursday on account of a public holiday.
On Friday market we expect market witnessed yet another day of lackluster movement. The expected level in nifty should range between 14900 & 15250. Going forward, the IT sector can be expected to be an out performer in a defensively-positioned market environment, and an extension of recent underperformance by midcaps appears likely.
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