Published on 10/11/2017 9:58:34 AM | Source: Religare Securities Ltd
Nifty ended almost unchanged in a volatile session - Religare Sec
Nifty Outlook
Nifty ended almost unchanged in a volatile session, taking a breather after the recent fall. The beginning was upbeat, thanks to firm global cues but selling pressure at the higher levels pushed the benchmark lower. Sectoral indices too witnessed mixed trend and majority ended on flat note. Amid all, activities remained high on stock specific front, on the buzz that the GST Council is likely to announce reduction in tax slab for roughly 165 items from 28% to 18% in the two-day meet starting today.
We’ve hardly noticed any change in global trend nor do we have any major negative on local front thus recent correction in Nifty should be seen as normal profit taking. No doubt, volatile swings in stocks during such corrective phase are hard to handle and in fact it becomes bigger issue during earnings season. Avoid going overboard and preferring only hedged positions, to effectively deal in the present scenario.
News
* Tata Motors reported a robust three-fold growth in profit for July-September quarter, driven by better-than-expected JLR's operational performance. Consolidated profit increased to Rs 2,501.7cr, from Rs 848.2cr in same quarter last fiscal. Consolidated revenue from operations (net of excise) jumped 10.3% to Rs 70,156cr, compared with Rs 63,577.4cr in year-ago, driven by better product mix in JLR and higher volumes in standalone business.
* Amara Raja batteries posted profit after tax of Rs 127.2cr, lower by 6.7% from year-ago period but higher than analyst estimates. Revenue during the quarter grew by 7.1% to Rs 1,427.5cr and operating income increased 3.6% to Rs 238.1cr but margin contracted by 50 basis points to 16.7% compared with corresponding quarter last fiscal.
* HPCL reported 87.6% jump in its Q2FY18 (July-September) net profit at Rs 1,735cr versus net profit of Rs 925cr in the quarter ended June 2017. The company’s revenue (excluding excise) was up 15% at Rs 47,523cr against Rs 41,328cr. Its EBITDA was at Rs 2,905.6cr against EBITDA loss of Rs 10,513cr. The company has reported gross refining margin at USD 7.61/bbl, which includes inventory gain of USD 2/bbl.
Recommendation
Buy BIOCON Ltd @ 393-395 Stoploss 380 Target 425 CMP 400.85
SEL LVEDL Ltd FUTS @ 332-335 Stoploss 340 Target 315 CMP 327.
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