Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
The Nifty has closed around its resistance area of 14,550-14,600. If we manage to get past that level, we should be headed to 14,800-14,900. The index has made a strong base at the 14,200 levels which acted as good support. Keeping a close below this level as a stop, traders can initiate long positions for higher targets.
Market At Close
- Market Regains Yesterday’s Losses; Frontlines Indices Up 1-2%
- 46 Nifty Stocks Close Higher; HDFC Twins, ICICI RIL Top Contributors To Nifty
- Sensex Rises 834 Points To 49,398 & Nifty 240 Points To 14,521
- Nifty Bank Climbs 613 Points To 32,425 & Midcap Index 499 Points To 21,969
- Market Breadth Favours Advances; Advance-Decline Ratio At 3:1
- All Sectoral Indices Rise While Volatility Index Falls Over 6%
- Bajaj Finance & Bajaj Finserv Amongst Top Nifty Gainers Ahead Of Q3 Earnins
- Federal Bank Rises Over 5% Ahead Of Results; NII Seen Up 19% YoY
- CEAT Surges Over 5% & Indiabulls Real Over 11% After Strong Showing In Q3
- Mindtree Ends 1% Higher On Better-than-expected Q3 Results
Closing Bell | Indian benchmark equity indices ended with strong gains on Tuesday led by across the board buying. The Sensex ended 834.02 points or 1.72 percent higher at 49,398.29, while the Nifty gained 239.85 points or 1.68 percent to close at 14,521.15. All sectors ended in the green with Nifty Realty surging more than 4 percent followed by Nifty Metal, Nifty PSU Bank and Nifty Financial Services. Broader indices, Nifty Midcap100 and Nifty Smallcap100 outperformed the benchmarks.On the Nifty50 index, Bajaj Finserv, Bajaj Finance, Tata Motors, Hindalco Industries and Sun Pharmaceuticals Industries were the top gainers while ITC, Tech Mahindra, Britannia and M&M were the only stocks in the red for the day.
Indian Railway Finance Corporation IPO fully subscribed
The public offer of Indian Railway Finance Corporation has been subscribed 1.01 times on January 19, the second day of bidding, largely supported by retail investors so far. The IPO has received bids for 126.7 crore equity shares against offer size of over 124.75 crore equity shares (excluding anchor book portion), as per the subscription data available on the exchanges. The portion set aside for retail investors witnessed subscription of 1.95 times and that of employees 18.27 times, while the reserved portion of non-institutional investors was subscribed 17.4 percent and that of qualified institutional buyers 0.02 percent.
Confident of keeping margin over 20% going forward, says Mindtree
Mndtree on Monday reported a 65.7 per cent rise in consolidated net profit to Rs 326.5 crore for the December 2020 quarter.
CNBC-TV18’s Mugdha Variyar caught up with Debashis Chatterjee, MD and CEO of the company and asked him about the deal pipeline as well as the business growth.
“In terms of deals, the pipeline has been pretty strong and we have had a good orderbook this quarter. We have crossed the billion-dollar mark in terms of orderbook which is a significant achievement,” he said. Read more here.
Tata Metaliks Q3FY21 | The company's net profit rose 63.8 percent to Rs 75.2 crore from Rs 45.9 crore while revenue increased 1.5 percent to Rs 526.2 crore from Rs 518.6 crore, YoY. EBITDA surged 61.6 percent to Rs 126.5 crore as against Rs 78.3 crore and EBITDA margin stood at 24 percent as against 15.1 percent, YoY.
Market Watch: Shrikant Chouhan of Kotak Securities
We like Tata Steel which is currently trading at Rs 672-673. In the morning there was some block deal also. We should look for adding Tata Steel at current levels with stop loss at Rs 665 and we are expecting stock to move towards Rs 700 again.
We like L&T Finance which is currently trading at Rs 107. There we feel that it is heading for at least Rs 114-115. So it is a buy at current levels with a stop loss at Rs 104.
Gateway Distriparks Q3FY21 | The company's net profit jumped 98.3 percent to Rs 32.7 crore from Rs 16.5 crore while revenue rose 5 percent to Rs 313.8 crore from Rs 298.2 crore, YoY. EBITDA increased 36.2 percent to Rs 82.5 crore as against Rs 60.6 crore and EBITDA margin expanded to 26.3 percent from 20.3 percent, YoY.
Hatsun Agro Q3FY21 | The company reported net profit at Rs 67.3 crore as against Rs 27.9 crorel, YoY. Revenue rose 4.1 percent to Rs 1,394.6 crore as compared to Rs 1,340.2 crore, YoY. EBITDA jumped 55.3 percent to Rs 207 crore from Rs 133.3 crore while EBITDA margin stood at 14.8 percent versus 9.9 percent, YoY.
CLSA sees 104% upside in Tata Motors in bull case scenario; stock jumps 40% in 2021
Shares of Tata Motors jumped nearly 5 percent on Tuesday after brokerage house CLSA maintained a positive stance on the stock and said that the firm is its top 2021 pick in the Indian auto industry. The stock rose as much as 4.7 percent to its day's high of Rs 257 per share on BSE. Just in 2021, the stock has surged around 40 percent.
It retained a 'buy' call with the target at Rs 290 per share.
Resultant bull case valuation (TP at Rs 500) implies a 104 percent upside from current levels (Current TP at Rs 290).
As per CLSA, expectations of a turnaround at JLR and India business could lead to a valuation re-rating. Read more here.
Maintain buy on UltraTech but prefer Ambuja Cements more: Edelweiss
"I will go with Ambuja Cements in largecap space,” said Navin R Sahadeo, Research Analyst of Edelweiss in an interview with CNBC-TV18.
“Valuation comfort and robust earnings growth – this combination makes Ambuja my clear top pick from results perspective, in general I am very bullish on this stock,” he said.
“I have a reduce recommendation on India Cements because fundamentally nothing is changing except for some buzz of merger and acquisition. Except for that, I don’t think there is much. It wouldn’t be a very compelling pick for me,” he said. Watch here.
Yash Gupta Equity Research Associate, Angel Broking
Apollo Hospitals Enterprise will conduct a meeting of the Fund Raising Committee of the Company on January 22, 2021 to consider and determine the issue price of Equity Shares to be issued pursuant to the QlP, including any discount on the floor price calculated in accordance with Securities and Exchange Board of India i.e. Rs 2,508.58. As per the market news indicative price band is of Rs 2,457-2,511 per equity share, indicative discount to closing price of Rs 2,607 at 3.77% to 5.84%.
Company raising capital to acquire a stake in one of the hospitals and to repay certain debt, stock has rallied more than 15% in this month. We expect the stock to correct from its closing price of Rs 2,607.
Bank of Maharashtra | The bank’s Q3FY21 net profit rose 13.9 percent to Rs 154.1 crore from Rs 135.3 crore while net interest income increased 10.1 percent to Rs 1,306.1 crore from Rs 1,186.1 crore, YoY. Other income stood at Rs 570.2 crore versus Rs 442.3 crore, YoY. Provisions during the quarter were at Rs 497.7 crore as against Rs 557.2 crore QoQ and versus Rs 917.4 crore YoY.
Buzzing | Shares of Indiabulls Real Estate jumped over 12 percent after the company reported a 64 percent YoY rise in its consolidated net profit to Rs 80.69 crore for the quarter ended December. The company's total income was Rs 756.81 crore in Q3FY21 as against Rs 1,317.70 crore a year ago.
Market Watch: Ajit Mishra of Religare Broking
After couple of months of consolidation, we have seen a fresh breakout in Reliance Industries. Yesterday we saw a dip but today it opened strong and is holding those gains. So, we believe this momentum after long consolidation will distant further and Rs 1,980 should be a stop loss on Reliance with target up around Rs 2,130.
Among the defensive pack we like Marico. After almost a week of correction, it is formed a fresh buying pivot on the daily charts. So one can accumulate Marico at current levels with stop loss of Rs 412 and target of Rs 428.
Yash Gupta Equity Research Associate, Angel Broking
GAIL India board has approved the buyback of 6,97,56,641 fully paid up equity shares of face value of Rs 10 each, representing 1.55% of the total number of fully paid-up equity shares in the paid-up share capital of the company from the shareholders of the company at a price of Rs 150. Total buyback size is Rs 1,046.35 crore.
This is very positive news for GAIL India as well as for PSU, as now PSU companies are also looking for buyback of their own stocks as market valuations are very low. Short term investors can buy the stock at the current market price of Rs 137.75 and tender their shares in buyback. Even we expect a heavy dividend from the company in a couple of months. So this is a good opportunity for retail investors to earn dividends as well as to apply for buyback at a premium of 8.89%.
AAI, Adani Group to sign concession agreement for three airports today
The Airports Authority of India (AAI) is likely to sign a concession agreement with Adani Group today for the three airports of Jaipur, Guwahati and Thiruvananthapuram, sources close to the development told CNBC-TV18. The group is also likely to submit an undertaking that it will abide by the legal outcome in the pending cases as far as Thiruvananthapuram and Guwahati airports are concerned. Once the agreement is signed, Adani Group will get six months to take over the three airports, the sources added. Continue reading.
Home First IPO to open on Jan 21: Here are the key things to know
The initial public offer (IPO) of affordable housing finance company Home First Finance Company (HFFC) will open for subscription on January 21 with a price band of Rs 517-518 per share. The issue will close on January 25. The Rs 1,153.72-crore public issue of the Mumbai-based company comprises of a fresh issue of Rs 265 crore and an offer for sale (OFS) of Rs 888.72 crore by promoters and existing shareholders. The OFS consists of Rs 435.61 crore worth of shares by promoter True North Fund V LLP, Rs 291.28 crore shares by promoter Aether (Mauritius), Rs 120.46 crore by investor Bessemer India Capital Holdings II, Rs 28.43 crore by PS Jayakumar, and Rs 12.92 crore by Manoj Viswanathan.
More here
CLSA sees 104% upside in Tata Motors in bull case scenario; stock jumps 40% in 2021
Shares of Tata Motors jumped nearly 5 percent on Tuesday after brokerage house CLSA maintained a positive stance on the stock and said that the firm is its top 2021 pick in the Indian auto industry. The stock rose as much as 4.7 percent to its day's high of Rs 257 per share on BSE. Just in 2021, the stock has surged around 40 percent. It retained a 'buy' call with the target at Rs 290 per share. Resultant bull case valuation (TP at Rs 500) implies a 104 percent upside from current levels (Current TP at Rs 290). As per CLSA, expectations of a turnaround at JLR and India business could lead to a valuation re-rating. More here
Ceat Q3 earnings: Here’s what to expect
Tyre manufacturer Ceat will be reporting its Q3 earnings on January 19. The street is expecting a strong set of numbers due to recovery in demand. The revenue growth is expected to be at around 24 percent or Rs 1,950 crore. EBITDA is expected to go up by 30 percent. Margins could improve to 12.5 and profits to go up by 77 percent. CNBC-TV18’s Sonia Shenoy gets details on what to expect from the numbers. Watch video for more.
Rallis India Q3 net up 20.23% at Rs 45.64 crore
Rallis India, a subsidiary of Tata Chemicals, on Monday announced a 20.23 percent growth in consolidated net profit for the quarter ending December 31, 2020, at Rs 45.64 crore compared to the same period of the previous financial year. The company’s net profit in the third quarter of the last fiscal stood at Rs 37.96 crore, Rallis India said in a regulatory filing. Total income of the company for the quarter under review went up by 6.33 percent to Rs 578.11 crore compared to Rs 543.68 crore in the corresponding quarter of the previous financial year. ”During the current crop season, our business has witnessed a favourable demand resulting in overall growth of 7 percent. In the domestic market, growth in Rabi’s sowing area was supportive and our domestic crop care business grew by 15 percent and seeds business by 38 percent albeit on a smaller base, Rallis India Managing Director and CEO Sanjiv Lal said.
Indiamart Q3 net profit up 29% to Rs 80 crore
B2B e-commerce firm Indiamart Intermesh on Monday posted a 29 percent rise in its consolidated net profit to Rs 80 crore for the third quarter ended December 31, 2020. The company had reported a net profit of Rs 62 crore in the year-ago period, a regulatory filing said. Its revenue from operations stood at Rs 174 crore in the third quarter of 2020-21, up 5 percent from Rs 165 crore in the corresponding period last fiscal, it added. It attributed this growth to ”marginal improvement in realisation of existing customers and increase in number of paying subscription suppliers”. Indiamart Intermesh Chief Executive Officer Dinesh Agarwal said, ”We are pleased to report a resilient financial performance this quarter with steady recovery in the business parameters while maintaining healthy margins and cashflows.” He added that the firm sees improvement in overall demand environment and business activity.
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