MARKETS LIVE: Corporate earnings, crude oil prices, rupee to be in focus

Markets at pre-open Index Current Pt. Change % Change   S&P BSE SENSEX 35,391.98 +72.63 +0.21   S&P BSE SENSEX 50 11,241.63 +21.38 +0.19   S&P BSE SENSEX Next 50 33,837.88 -200.29 -0.59   S&P BSE 100 11,098.12 +7.82 +0.07   S&P BSE Bharat 22 Index 3,604.87 +2.16 +0.06 (Source: BSE) Centrum Broking on Pfizer We maintain Buy rating for Pfizer and  revise our target price of Rs2,900 (earlier Rs2,740), based on 23x March’20E EPS of Rs126.1. Pfizer’s Q4FY18 results were in line with our estimates. The drug maker reported a 15% YoY growth in revenues, while margin improved by 570bps to 26.6% and net profit grew 54%YoY. We expect the company to deliver superior performance due to strong growth in its major brands. Recently, the company  launched new line extension Corex-T and Corex LS. Pfizer has launched  Meronem and Neksium in India, which are acquired from Astra Zeneca Pharma. The key downside risk to our assumption is slowdown of domestic  pharma market  and  additional brands coming under price control Oil jumps 3 percent after US quits Iran deal, US stock drawdown Oil prices rose about 3 percent on Wednesday and hit fresh 3-1/2 year highs after a bigger-than-expected drawdown in U.S. oil inventories extended gains from the United States' decision to quit a nuclear deal with Iran. Brent crude futures rose $2.36, or3.2 per cent to settle at $77.21 a barrel. The global benchmark hit a session high of $77.43, the highest since November 2014. US West Texas Intermediate (WTI) crude futures rose $2.08 to settle at $71.14 a barrel, a 3-per cent gain.   Both contracts notched their biggest daily percentage gain in a month. READ MORE Centrum Wealth on Can Fin Homes Since our last update (Outperformer; Rs443 on 25 Jan’18) the stock of CHFL has corrected ~9% on concerns of slowing growth, higher NPAs and delays in implementation of RERA in the company’s key market - Karnataka. However, during Q4, the improvement in sanctions and disbursements has resulted in a +18% loan growth thus giving comfort on growth revival. Further, the management has guided improving recoveries in FY19 along with better loan growth of about 24% to Rs19,500 crore. Considering the management pedigree and focussed approach towards growth and better asset quality, we maintain Outperformer rating on the stock with target price of Rs475 MARKET COMMENT Gaurav Ratnaparkhi, senior technical analyst, Sharekhan by BNP Paribas The Nifty opened in red but ended the trading session on a positive note. In the near term, the index has support at 10,600 – 10,630 on the way down whereas on the way up, 10,785 will be a crucial resistance. The index is likely trade sideways within the range of 10,600 – 10,785 unless it does not breach either side of the range decisively. Once the index breaches above 10,785, it is likely to head higher towards 10,910 i.e. 78.6% retracement level of its previous fall. Overall, we have a bullish outlook on the index for the short term with a target 10,910 and reversal placed at 10,500 Top trading ideas for today's trade: Buy Tata Motors, Amararaja Batt Stock: TATA MOTORS Reco.: Buy CMP : Rs 342   Occurrence of a bullish harami formation at on the monthly scale near the 78.6% retracement support of its previous impulse upmove, reconfirms the strength in the support around 330. The recent rebound from the said support augurs well for a fresh directional momentum in the offing. Short term longs could be considered around 340 with a stop below 324 for an immediate move back towards 385. READ MORE