D-Street Buzz: Nifty PSU Bank falls dragged by Central Bank; Zee Entertainment jumps 3%

The breadth of the market favoured the declines with 427 stocks advancing and 1204 declining while 421 remained unchanged. On the BSE, 716 stocks advanced, 1549 declined and 135 remained unchanged.

The Indian benchmark indices continued to trade in the red in this Wednesday afternoon session session with the Nifty50 down 65 points, trading at 10,597 while the Sensex shed 255 points and was trading at 35,215.

Nifty midcap was down a percent dragged by Bank of India, Cholamandalam Investment, DHFL, Federal Bank and Jubilant Foodworks among others.

The Energy index was also weak with loses from Reliance Industries which shed 1.5 percent followed by BPCL and ONGC.

PSU banks were trading in the red dragged by Central Bank of India, Union Bank of India, Indian Bank, OBC, PNB, State Bank of India and Syndicate Bank.

However, Nifty Media was up close to a percent with gains from Zee Entertainment which jumped 3 percent followed by DEN Networks and Network18.

The top gainers from NSE include Zee Entertainment, UPL, Titan Company, Adani Ports and UltraTech Cement while the top losers included Indiabulls Housing, YES Bank, Sun Pharma, State Bank of India and IndusInd Bank.

The most active stocks were Indiabulls Housing Finance, YES Bank, Jubilant Foodworks, Reliance Industries and Zee Entertainment.

Aavas Financiers, Apollo Sindoori Hotels and Proseed India have hit new 52-week high on NSE in this afternoon session.

52 stocks have hit new 52-week low including names like California Software, Deepak Nitrite, Mcleod Russel India, Rolta India and Stampede Capital among others.

The breadth of the market favoured the declines with 427 stocks advancing and 1204 declining while 421 remained unchanged. On the BSE, 716 stocks advanced, 1549 declined and 135 remained unchanged.

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Buy Delta Corp, target Rs 280

We recommend buying the stock at CMP for the target of Rs 280, keeping stop loss at Rs 225 on closing basis, says Vinay Rajani of HDFC Securities.

In Delta Corp downward sloping trend line breakout is seen on the weekly charts. Breakout from the consolidation was also seen, which held for last many weeks. Volumes have been gradually improving along with the price rise. Bullish Moving average and Oscillators setup on the daily charts indicates the strength in the uptrend.

Considering the technical evidences discussed above, we recommend buying the stock at CMP for the target of Rs 280, keeping stop loss at Rs 225 on closing basis.

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Buy Coromandel International, target Rs 499

We recommend buying the stock at CMP for the target of Rs 499, keeping stop loss at Rs 415 on closing basis.

Inverse head and shoulder breakout is seen in Coromandel International on the weekly charts. Higher tops and higher bottoms on the daily and weekly charts are developing. Volumes gradually improving along with the price rise. Stock price has surpassed the resistance of its 50 Week EMA. Stock price has surpassed the resistance of its 200 DMA. Bullish “Hammer” candlestick pattern was formed on month ended October 2018.

Considering the technical evidences discussed above, we recommend buying the stock at CMP for the target of Rs 499, keeping stop loss at Rs 415 on closing basis.


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TCS, Infosys shares gain over 1% as IT hiring grows for 8th successive month

CLSA said the commentary of IT companies is positive on improving demand environment in BFS & telecom segments.

The Nifty Information Technology index gained around 100 points in morning on Monday after global brokerage house CLSA said Indian IT hiring grew for the 8th successive month. TCS gained 1.7 percent and Infosys 1.2 percent whereas HCL Technologies declined 1.5 percent in morning.

IT hiring increased by 8 percent in November 2018.

The research house said IT outperformed the 50-share NSE Nifty index after 2 months and outperformed on a-12 month basis too.

In last one year, the Nifty IT was the biggest gainer among all indices, rising 23.5 percent while Nifty50 advanced 2.5 percent.

The rally in IT stocks attributed to strong US economy, recovery in earnings, overall rupee depreciation (more than 9 percent fall against US dollar to trade around 70), improvement in BFSI segment etc.

CLSA said the commentary of IT companies is positive on improving demand environment in BFS & telecom segments.

It feels valuations are not cheap for TCS & Infosys which are trading above 3-year average PEs. TCS is the biggest gainer among IT stocks, rising 43 percent followed by Mindtree (up 41 percent), Tech Mahindra (41 percent), KPIT Technologies (30 percent), Infosys (24 percent) and HCL Technologies (7.6 percent).

HCL Technologies & Infosys offer the most value & TCS offers momentum among IT stocks, CLSA said.

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Hero MotoCorp falls 3% on Goldman Sachs downgrade

Hero stock has rallied 23 percent from October 25, 2018 as investors expect rural benefit for the company.

Hero MotoCorp shares fell 3.4 percent in morning on Monday after global brokerage house Goldman Sachs downgraded the stock to sell from neutral.

The research firm also slashed its target price sharply by 12.66 percent from Rs 3,175 to Rs 2,773, implying 16.5 percent potential downside from December 21 closing levels.

Goldman Sachs believes near term volumes & results will be muted.

Hero stock has rallied 23 percent from October 25, 2018 (when it hit lowest closing level of 2018) as investors expect rural benefit for the company.

At 11:20 hours IST, the stock was quoting at Rs 3,217.40, down Rs 102.55, or 3.09 percent on the BSE. It fell 12 percent year-to-date.

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Gold prices to trade sideways today

According to Angel Commodities, Last week, spot gold prices rose by 1.72 percent to trade at $1260 per tonne while MCX gold prices traded lower by 1.2 percent as rupee appreciation led to the fall in the Indian markets.

Last week, spot gold prices rose by 1.72 percent to trade at $1260 per tonne while MCX gold prices traded lower by 1.2 percent as rupee appreciation led to the fall in the Indian markets. Investors have dumped risky assets and dollar has lingered to near one month lows after the Federal Reserve signalled fewer interest rate hikes over the next two years and expressed caution about the U.S. economic outlook. In a sign of demand for precious metals, sales of U.S. Mint American Eagle gold and silver coins are closing out their weakest year since 2007, as investors favoured higher - yielding assets, despite volatility in global stock and bond markets late in the year.

We expect gold prices to trade sideways today, as western world are in holiday mood for Christmas and there will be less volatility. On the MCX, gold prices are expected to trade lower today, international markets are trading higher by 0.5 percent at $12 62 per ounce.

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GE Power India climbs 3% on electrical and mechanical works contract in Malaysia

GE Power India will be responsible for the design, manufacture and supply of the main electro-mechanical equipment.

GE Power India shares gained more than 3 percent intraday on Monday after the company bagged electrical and mechanical works contract in Malaysia.

"The consortium of GE Power India, GE Hydro France, GE Renewable Malaysia Sdn. Bhd. and Sinohydro Corporation (M) Sdn. Bhd. has been awarded the order for the main electrical and mechanical works for the 1285MW Baleh Hydroelectric Project in Sarawak, Malaysia by SEB Power Sdn. Bhd," the company said in its filing.

The total value of the contract is approximately MYR 595 million and $159 million.

"The value of the order for the Company is approximately $98.4 million exclusive of taxes (i.e. approximately Rs 689 crore)," GE Power said.

The company will be the leader of the consortium and will be responsible for the design, manufacture and supply of the main electro-mechanical equipment involving five 257MW Francis turbines as well as part of the balance of plant equipment for the Baleh Hydroelectric project.

At 11:48 hours IST, the stock was quoting at Rs 840.00, up Rs 17.85, or 2.17 percent on the BSE.

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