Stock Picks of the Day: Why Dishman Carbogen, Tata Steel & Avenue Supermarts are a 'buy'

On the daily chart, Nifty gave a breakout of a falling trend and rested the trend line. On the weekly chart, the index is in an upward rising wedge, which suggests a bullish trend.

Also, Nifty formed a Golden Cross of 50-EMA and 200-EMA, visible on the daily chart, which again supports the bullish setup. The weekly oscillator RSI (14) has given a falling trend line breakout which is bullish in nature.

On the options front, maximum open interest position is visible in 11,000 CE (43.76Lakh shares) and 10,500 PE (37.13Lakh shares); followed by 10,900 CE (35.60Lakh shares) and 10,800 PE (32.54Lakh shares).

Going forward, 10,800 is expected to act as crucial support for the Nifty, and any fall towards 10,800 may get bought. On the higher end, 11,000 is expected to act as initial resistance.

Sustained trades above 11,000 may induce a rally towards 11,200. On the other hand, breakdown below 10,800 may trigger short-term bearishness in the market.

Also, Nifty formed a Golden Cross of 50-EMA and 200-EMA, visible on the daily chart, which again supports the bullish setup. The weekly oscillator RSI (14) has given a falling trend line breakout which is bullish in nature.

On the options front, maximum open interest position is visible in 11,000 CE (43.76Lakh shares) and 10,500 PE (37.13Lakh shares); followed by 10,900 CE (35.60Lakh shares) and 10,800 PE (32.54Lakh shares).

Going forward, 10,800 is expected to act as crucial support for the Nifty, and any fall towards 10,800 may get bought. On the higher end, 11,000 is expected to act as initial resistance.

Sustained trades above 11,000 may induce a rally towards 11,200. On the other hand, breakdown below 10,800 may trigger short-term bearishness in the market.

Here is a list of top three stocks which could give 7-10% return in next 1 month:

Dishman Carbogen: Buy| LTP: Rs.219.25 | Target: Rs 240| Stop loss: Rs 212| Return 9.50%

On the daily chart, the stock price has made a bullish AB=CD harmonic pattern which suggests a reversal of the current trend is likely.

In addition, the price is finding support around historical trough on the daily chart. Moreover, an inverted Hammer is visible on the daily chart of the stock. Traders can accumulate the stock in the range of Rs 217-220 for the target of Rs 240 and a stop loss below Rs 212.

Tata Steel: Buy| LTP: Rs.464.60 | Target Rs 505| Stop Loss: Rs.445| Return 8.6%

The stock has formed a Bullish Harami candlestick pattern on the daily time frame. On the Weekly chart, the stock has completed bullish Butterfly Harmonic pattern.

Moreover, the stock has taken support at 50 percent retracement level at Rs 448, from its previous rally of Rs 188 to Rs 720. Traders can accumulate the stock in the range of Rs 460-470 for the target of Rs 505 and a stop loss below Rs 445.

Avenue Supermarts: Buy| LTP: Rs.1397.30 | Target: Rs 1470-1500| Stop Loss: Rs.1349| Return 7%

On the daily chart, the stock has given a downwards consolidation breakout which suggests a reversal of the previous downtrend. The rise in price was backed by increased volume.

On the daily chart, a positive divergence in the RSI (14) is seen which is likely to initiate a positive breadth in the stock. Traders can accumulate the stock in the range of Rs 1390-1400 for the target of Rs 1470-1500 and a stop loss below Rs 1349.

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Source: Moneycontrol

Prepare your investor nerve before Lok Sabha elections 2019

Elections tend to bring out the more emotional side of our personalities.

The 2019 elections are due in another six months and investors have already started prepping themselves up for the D-Day. From what I gather, there is a lot of conjecture, to and fro of information most of which is not duly validated; and I believe in the coming months we are going to be bombarded with such half-baked information more so.

Hence, given the volatility in the markets and the investors nerve being on the brink of jitters, how do you gather your save to face the elections? I have two important tips for you.

• Stick to the original plan of action!

Ideally, it is essential for every investor to have annual portfolio goals and plan their overall return on the basis of it. Your target return can be designed to remain as conservative as 5 percent or as aggressive as 15 percent based on your retirement or savings level. Either way, by knowing where you are at, you can make a better decision going forward.

For example, say your current portfolio has returned 10 percent for the year and your goal is to hit 12 percent. Additionally, let's say you are petrified of the election results and expect a sharp decline in the market no matter who wins. Well, if you have nearly reached your goal and don't want to risk your gains or principal, then it may make sense to reduce your equity positions and raise some cash.

But in either case, do not take any radical decisions to completely alter your portfolio. Counter the market situation with a short-term plan based on your individual analysis and gut instinct than any opinion polls or projections. After all, at the end of the day, it is your money, not your advisors.

• SIPs – to save the day

If the last few months have taught us anything, then it is that there is no one clear trend emerging on who will win the 2019 elections. But that nowhere means you devoid your portfolio of a growth trajectory.

I truly believe that the best way to counter and thereby benefit from any market fluctuation is to invest in a systematic investment plan (SIP). A SIP is based on the idea of averaging your investment cost over time. It's the simplest and, yet, the most effective technique of benefitting from volatility. You invest a fixed amount every month and keep doing it for a long time.

When the markets drop, stock prices are low and so are the net asset values (NAVs) of equity mutual funds. Therefore, the sum you invest gets you more units of the fund. Eventually, when you redeem your money, all units fetch an equal amount. However, your gains are higher because of the volatile periods, when you were able to invest at a low price. That's an actual benefit from volatility.

Therefore, in May 2019 -- no matter who takes over the mantel at the central government, I am pretty sure if you follow these tactics, your investment portfolio will smoothly sail through the winds of the central elections.

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Source: Moneycontrol

HDFC Bank Q3 profit could rise 20%; asset quality could be stable

HDFC Bank is likely to continue to report over 20 percent growth in profit as well as net interest income year-on-year (YoY) with stable asset quality and a slight increase in provisioning due to IL&FS quarter-on-quarter (QoQ), analysts said.

"Bank should continue to deliver stable 20 percent YoY earnings growth on stable margins and loan growth. Other income could improve on treasury gains," Prabhudas Lilladher said, adding provisions could be slightly higher despite MTM gains as the bank could likely have exposure on IL&FS and could make provisions on the same.

Emkay said cost ratios will largely remain under current levels and that is structurally positive for return on assets. "Slippages to be similar to Q2; the impact of farm loan waiver on crop loans will be largely visible in Q4, while on Term Loans will be visible in Q3 itself."

Loan growth is expected to remain healthy at 25 percent YoY, driven by retail loans, while deposit growth is also likely to pick up to around 24 percent YoY, led by an increase in CASA and retail bulk deposits, according to Motilal Oswal.

"Asset quality is expected to remain stable, with GNPA at 1.3 percent. We estimate profit after tax to be at Rs 5,640 crore," an analyst at the firm wrote in their report.

Key issues to watch out for would be whether the management indicates some stress in SME and retail book; trends in digital banking/payments and various initiatives; overall balance sheet growth outlook and economic recovery, the research house said.

The stock has gained around half a percent in the past three days. At the close of market hours, HDFC Bank was quoting at Rs 2,131.20, up Rs 2.15, or 0.10 percent, on the BSE.

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Source: Moneycontrol

Federal Bank Q3 net profit rises 28% YoY to Rs 333.63 crore; NII up 13%

Federal Bank reported a rise of 28 percent (year-on-year) in its net profit for the December quarter at Rs 333.63 crore from Rs 260 crore last year.

The Kochi-based lender also posted a growth of 13 percent (YoY) in its net interest income to Rs 1,077.3 crore against Rs 950 crore posted last year. For the uninitiated, the difference between interest earned and spent is known as net interest income.

Other income reported by the bank stood at Rs 345.5 crore against Rs 228.6 crore last year.

The gross NPA ratio rose margially to 3.14 percent from the previous quarter’s ratio of 3.11 percent. Meanwhile, the net NPA ratio stood at 1.72 percent. It improved from 1.78 percent in the previous quarter.

The gross NPAs stood at Rs 3,361 crore against Rs 3,185 crore posted during the last quarter. While, net NPAs rose to Rs 1,817 crore against Rs 1,796 crore last quarter.

The provisions reported a drop from the previous quarter to Rs 190.1 crore against Rs 289 crore. On a year on year basis, it reported a jump from Rs 162.4 crore.

Other key metrics

The lender reported slippages at Rs 435 crore against RS 477 crore last quarter. The SME slippages stood at Rs 192 crore against Rs 169 crore posted last quarter.

The net interest margin stood at 3.17 percent against 3.15 percent in September quarter.

The loan growth stood at 25 percent year on year, while its restructured book stood at Rs 1,150 crore.

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Source: Moneycontrol

Today Gold Updates Trading Rules

Buy Signal: When all the mcx gold short-term Exponential Moving Averages (EMA) crosses the long-term Exponential Moving Averages (EMA) from below, signals for a uptrend.

SELL Signal: When all the mcx gold short-term Exponential Moving Averages (EMA) cross the long-term Exponential Moving Averages (EMA) from above, signals for a downtrend.

Trend Strength: Another application of Guppy multiple moving average system is to analyze the strength of the current trend in gold. If the EMA lines of short term and long term moving averages are wide separated by a uniform distance then the trend in gold is seen as stable. If there's no wide separation, then the prevailing trend is weak and vulnerable.

We provide you sure shot Commodity & Equity Market Tips, Intraday tips, share market tips, Mcx bullion tips, Mcx tips, Crude tips, Stock tips, Future and Cash tips with Technical & Fundamental Research.

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