Nifty 18210.95 (-0.31%)
Sensex 61143.33 (-0.34%)
Nifty Bank 40874.35 (-0.88%)
Nifty IT 35503.9 (0.97%)
Nifty Financial Services 19504.75 (-0.74%)
Adani Ports 745.85 (-0.54%)
Asian Paints 3094.65 (4.20%)
Axis Bank 787.50 (-6.46%)
B P C L 427.70 (-0.78%)
Bajaj Auto 3776.50 (-0.40%)
Bajaj Finance 7482.15 (-4.75%)
Bajaj Finserv 18012.00 (-1.86%)
Bharti Airtel 702.35 (0.88%)
Britannia Inds. 3697.85 (0.14%)
Cipla 922.50 (1.65%)
Coal India 173.60 (-0.83%)
Divis Lab. 5149.35 (2.60%)
Dr Reddys Labs 4662.70 (-0.08%)
Eicher Motors 2583.90 (-0.25%)
Grasim Inds 1728.40 (-0.63%)
H D F C 2915.00 (0.12%)
HCL Technologies 1177.15 (0.89%)
HDFC Bank 1642.80 (-0.60%)
HDFC Life Insur. 693.85 (0.55%)
Hero Motocorp 2690.15 (-0.38%)
Hind. Unilever 2396.60 (-1.65%)
Hindalco Inds. 479.85 (-1.28%)
I O C L 130.80 (-0.53%)
ICICI Bank 835.00 (0.68%)
IndusInd Bank 1142.55 (-1.07%)
Infosys 1728.95 (1.48%)
ITC 238.45 (0.74%)
JSW Steel 684.90 (-1.36%)
Kotak Mah. Bank 2188.25 (-1.03%)
Larsen & Toubro 1784.55 (-0.65%)
M & M 886.80 (-0.87%)
Maruti Suzuki 7356.25 (0.81%)
Nestle India 19004.60 (-1.11%)
NTPC 141.30 (-1.33%)
O N G C 157.90 (-3.19%)
Power Grid Corpn 190.25 (-0.08%)
Reliance Industr 2627.40 (-1.26%)
SBI Life Insuran 1186.00 (1.19%)
Shree Cement 28107.75 (1.19%)
St Bk of India 519.15 (1.29%)
Sun Pharma.Inds. 825.10 (1.43%)
Tata Consumer 818.75 (1.22%)
Tata Motors 497.90 (-2.11%)
Tata Steel 1326.15 (-1.30%)
TCS 3489.75 (0.21%)
Tech Mahindra 1567.85 (0.29%)
Titan Company 2460.10 (0.22%)
UltraTech Cem. 7354.20 (1.17%)
UPL 741.50 (3.96%)
Wipro 671.10 (0.44%)

5 Stocks for next week - 4th Dec-8th Dec 2017

5 Stocks for next week - 4th Dec-8th Dec 2017
by Gautam Upadhyaya 12/01/2017

ADANI PORTS - SELL

Stock ADANI PORTS
Recommendation The stock has given a breakdown from a descending triangle formation on the daily chart. It has also formed a strong bearish engulfing candlestick pattern on the daily chart. We expect the bearish trend to continue next week.
Buy/Sell Range Target Stop Loss
Sell (Dec Futures) 385-388 369 400
NSE Code Market Cap(Rs in Cr) 52-week High /low 200 M.A
ADANIPORTS 80787 443/257 369

AUROBINDO PHARMA - SELL

Stock Aurobindo Pharma
Recommendation The stock has given a bearish flag pattern breakdown on the daily chart. Also, the stock has witnessed bearish crossover on the MACD indicator, which affirms our negative view on the stock.
Buy/Sell Range Target Stop Loss
Sell (Dec Futures) 676-681 648 702
NSE Code Market Cap(Rs in Cr) 52-week High /low 200 M.A
AUROPHARMA 39576 808/504 713

PETRONET LNG - SELL

Stock Petronet Lng
Recommendation The stock has given a breakdown after forming a rounding top formation on the daily chart. The stock also has breached its support levels and has given a close below its short term 10 period exponential moving average. We expect the downtrend in the stock to continue. 
Buy/Sell Range Target Stop Loss
Sell (Dec Futures) 245-247 233 255
NSE Code Market Cap(Rs in Cr) 52-week High /low 200 M.A
 PETRONET 36600 276/171 224

VOLTAS - SELL

Stock Voltas
Recommendation The stock has formed a bearish gravestone doji formation on the weekly chart. It has also formed a large bearish candlestick pattern on the daily chart. The bearish crossover on the daily MACD indicator affirms our negative view on the stock.
Buy/Sell Range Target Stop Loss
Sell (Dec Futures) 621-624 605 637
NSE Code Market Cap(Rs in Cr) 52-week High /low 200 M.A
VOLTAS 20451 653/300 492

JUBILIANT LIFE SCIENCE - BUY

Stock Jubiliant Life Science
Recommendation The stock has managed to give a double bottom breakout on the daily chart. It has also managed to give a close above the declining trend line on the weekly chart. The trend and strength analysis indicated that that the current momentum is likely to extend further.
Buy/Sell Range Target Stop Loss
Buy(Cash) 690-695 735 671
NSE Code Market Cap(Rs in Cr) 52-week High /low 200 M.A
JUBILANT 11031 879/552 671

Research Disclaimer

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
There is some issue, try later
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

Top Large-Cap Stocks for Investment

Top Large-Cap Stocks for Investment
by Nikita Bhoota 12/01/2017

The companies with large market capitalization are known as large-cap stocks. These stocks are less volatile as compared to mid-cap and small-cap companies, therefore considered best investment options for investors demanding low risk in stock market. However, at present, picking up the right large-cap stock for investment is a challenge, as the Indian markets have reached record highs. Based on fundamentals, management outlook and business prospects, below mentioned are some of the large-cap stocks, which are good long-term investment bets.

Larsen & Toubro Ltd (L&T)

L&T is the largest engineering and construction company in India. We expect revenue CAGR of 12% over FY17-FY19E on account of strong order book and pickup in domestic investment cycle particularly in infrastructure, defence, and power sectors. L&T has a total order book of ~Rs 2,57,500cr, which provides strong revenue visibility over next 2 years. EBITDA is estimated to grow at 14% CAGR over FY17-FY19E due to L&T’s strong efforts to expand its high margin hydrocarbon business and favorable product mix. We forecast PAT CAGR of 11% over FY17-FY19E. The company will also consider divestment of non-core assets (Nabha Power, Katupalli Port, etc.).  We project an upside of 16% from CMP of Rs1,216 over the next 12 months.

Year Net Sales (Rscr) OPM (%) Net Profit (Rscr) EPS (Rs) PE (x) P/BV (x)
FY18E 122,662 11.5 7360 52.6 23 3.1
FY19E 137,995 11.8 8280 59.2 20 2.8

Source: 5paisa Research

HDFC Bank

HDFC Bank is the largest private sector bank in India in terms of loan book.  As on 31st March 2017, the bank had a customer base of ~4 cr and branch network of 4,715.Its CASA ratio stands at 42.9% as on Q2FY18.  Retail & whole sale forms ~54% & ~46% (Q2FY18) of its loan mix respectively. The rising proportion of high yielding retail segment is likely to increase the NIMs from 4.2% to 4.5% over FY17-FY19E. HDFC bank’s has registered ~21% loan book CAGR over past 3 years to ~Rs 5.46 lakh cr as of FY17. It is projected to grow at similar run rate of ~21% CAGR over FY17-FY19E on account of diversified product mix and strong branch network. It is expected to register ~19% PAT CAGR over FY17-FY19E as a result of improving advances and better loan mix. The company’s GNPAand NNPA ratio stands at 1.2% and 0.4% as on Q2FY18. We expect an upside of 12% from CMP of Rs1,852 over next 12 months.

Year Net profit (Rscr) P/BV (x) ROE (%)
FY18E 17,458 4.5 16.9
FY19E 20,810 3.9 17.3

Source: 5paisa Research

ICICI prudential (IPru) Life Insurance Company

IPru Life is well positioned to capture growth opportunities arising from the buoyantequity markets, given its predominant positioning as seller of unit-linked products (ULIPs) and aided by robust distribution architecture and cost competitiveness. IPru Life has strong financials and a healthy balance sheet.We forecast IPru Life to deliver ~26% CAGR in value of new business (VNB) overFY17-19E driven by 14% CAGR in NBP (new business premium) and 390bps increasein VNB margins. Embedded Value (EV) will likely grow at ~11% CAGR over FY17-19E.Return on Embedded Value (ROEV) should remain robust at 14-16.5% over themedium term.A strong market and capital position, rapidly improving profitability metrics andpotential upside to earnings from stronger franchise growth should place IPru Life favorably among competitors. We project an upside of 18% from CMP of Rs.375 over the next 12 months.

Years Net Premium Income (Rs in Cr) VNB Margins (%) EPS P/EV (x) RoE (%)
FY18E 26,400 12.0 11.7 3.0 24.3
FY19E 31,200 13.0 13.5 2.7 24.1

Source: 5paisa Research

Petronet LNG

Petronet LNG Limited (PLNG) imports, re-gassifies and markets liquefied natural gas (LNG) in the Indian market. We expect revenue CAGR of 24% over FY17-19E on account of expected ramp-up in the Dahej terminal and increase in utilisation at Kochi terminal. The company’s Dahejcapacity expansion project to 17.5 MT is on track, and is projected to be completeby March 2019.Kochi utilisation is likely to improve further with completion of the Kochi-Mangalore pipeline by December 2018. In addition, PLNG is also evaluating options of setting up LNG terminals in Bangladesh (5m MT) and Sri Lanka (1m MT).  We expect EBITDA margins to improve by 70bps over FY17-19E on account of improvement in capacity utilization. We expect PAT CAGR of over FY17-19E. We project an upside of 15% from CMP of Rs.251 over the next 12 months.

Year Net Sales (Rs Cr) OPM (%) Net Profit (Rs Cr) EPS PE
FY18E 27,124 12.1 2,041 13.6 18
FY19E 30,719 11.6 2,310 15.4 16

Source: 5paisa Research

Reliance Industries

Reliance Industries (RIL) is one of the largest private sector enterprises in India. Its business revenue includes refiningbusiness (64%), petrochemical business (24%) and others (12%).  We expect revenue CAGR of 15% over FY17-19E on account of expansion of RJio and strong refining margin outlook.The company has rapidly grown its broadband business (4G) through RJio owing to strong operating competitiveness and healthy consumer traction. Jio’s RMS (revenue market share) is expected to be ~30% over next few years. Refinery off-gas cracker (ROGC) has been commissioned and will be ramped up to full utilization by FY18E. In addition, company has commissioned 4 of its 10 petcoke gasifiers, which will ramp up over FY18-19E.  RIL’s margins are expected to improve due to firm demand and improving utilization in polyester segment. We expect margins to remain in US$11-11.5/bbl range. Consequently, we expect PAT CAGR of 14% over FY17-19E.We project an upside of 12% from CMP of Rs 922 over the next 12 months.

Year Net Sales (Rscr) OPM (%) Net Profit (Rscr) EPS (Rs) PE (x)
FY18E 384,781 10.0 19,239 32.5 28
FY19E 409,792 15.3 30,734 51.9 18

Source: 5paisa Research

Research Disclaimer

Next Article

Different Emotions You Can Feel During Investing In The Stock Market

Different Emotions You Can Feel During Investing In The Stock Market
by Nutan Gupta 12/01/2017

The share market relies on people with rational minds to enter into a trade to make profits and avoid losses, but most investors are not rational robots who always take a sound and efficient investment decision. Instead, the decisions that the investors make are mostly affected by their sentiments and emotions which forces them to incur massive losses while trading.

Trading psychology defines a specified range of emotions that an investor can go through while taking an investment decision. While it is the truth that we can never fully avoid our emotions while trading, knowing what can affect our decisions emotionally can go a long way to avoid losses and to become a rational and successful investor.

1. You get optimistic: This is the primary emotion an investor feels before even entering the share market. The will to make money and the optimism that the investor will not incur a loss encourages the investor to enter the market and buy stocks.

2. You get Excited: As your ideas and decisions start to prove profitable, you begin to get excited and start considering what your life would be if you make big in the share market. This allows you to get motivated to invest further in the market.

3. You get Thrilled: As your investments begin to prove successful you feel thrilled as you never imagined that you would make such good profits while trading. It is an emotion that will make you feel proud of yourself, and you will feel that your every decision from now on will be undoubtedly profitable.

4. You get Euphoric: This is the highest point of financial risk which an investor can achieve. As you have made quick and easy profits, you begin to feel like a financial wizard and start to ignore risk in your investment decisions. You expect that every trade you make from now will be profitable no matter what.

5. You get Anxious: This is the first time the market goes against you. Having made good profits until now, you feel agitated as you realize that you can also incur a loss. This emotion is that primary reason for an investor to identify himself as a long time investor and wait until the market goes up again in the future.

6. You go into Denial: Even after waiting for a long time, when the market has still not rebounded you begin to go in the denial phase that you have made poor choices and that it is the time to sell your stocks and incur a loss. At this time, you still think that the market will go your way and you will make profits on your investments.

7. You get afraid: You begin to worry as the market has still not risen and you know that there is no way that you are going to make profits on your investments now. This is the emotion that de-motivates most of the investors, and they think they should quit the market.

8. You get into desperation: You cannot believe that this is happening to you and you start to become desperate to seek any idea from anyone that would make you go profitable again so that you don't lose your money in the market.

9. You get Panicked: Having exhausted every idea, you are at a loss of what to do next. This is the emotion that forces the investor to question his/her's knowledge about the market and if he/she should have researched before investing.

10. You start to Capitulate: You understand at this point that you have made a bad investment decision and your portfolio will not increase again. This emotion enables the investor to consider selling the all the stocks to avoid further losses.

11. You become Despondent: Having incurred massive losses on your investments, you have decided to exit the market. You believe that you will never again buy stocks of any company. This emotion becomes the main reason for an investor to miss out on great financial opportunities as the investor is unwilling to trade irrespective of how good the opportunity is.

12. You get into Depression: When you realize that you passed on an opportunity that could have made you great profits, you feel depressed and ask yourself: How can I be so foolish? This emotion gives you the required motivation that the market is still profitable for the ones who are careful enough.

13. You become Hopeful: As the market returns to its former glory, you revert to the market in the hope of making profits once again. This is the emotion that makes the investor more careful and eventually leads to profits.

14. You get Relieved: Having made a profit once again, you feel relieved that you can still make profits in the market if you are careful enough. This emotion re-establishes the faith of an investor in trading and lead the investor to buy stocks once again. 

Next Article

7 things to not do while trading

7 things to not do while trading
12/01/2017
Untitled Document

It is easy for everyone to enter a trade but sustaining it is tough. A lot of discipline and planning is required to stay in the race with viable earnings. It is important to trade slowly, patiently and logically, avoid losses thereby safeguarding your investments.

These are the seven things trader should not do while trading;

1.    Risk huge amount of capital

Everyone has the expectations to earn high amount of money & for that reason, he or she believes in putting huge capital into a single trade. It is not always true that high investment will lead to greater gains. So it is always advisable to not put more 1% of the total capital into a single trade. Don’t put all your eggs in one basket.

2.    Trading immediately after the news breaks out

The market may or may not react rationally to a particular news or event. So wait till the dust settles and see how stable trend emerges. One should analyze the event/happening and predict the market conditions after careful calculations. Failing to do so will lead to significant losses without anyone to blame.

3.    Unrealistic expectations

The market is very dynamic and volatile. It might behave in anirrational manner at times. So it is necessary to have proper strategies to deal with it. Stock trading, should be considered as a business and not as a gamble. Having unrealistic expectations out of even the most performing trade can also prove fatal. Losses should be hedged wherever possible instead of riding on it.

4.    Proper positioning

Many things happen around the world which will have an impact on the sharemarket. We can only assume what impact it will have, but we cannot predict what will occur in the future. So it is imperative to position yourself accordingly with sound trading strategies.

5.    Stay focused on strategies rather than potential outcomes

Do not focus much on the obstacles and maintain a trading discipline. Try to focus on single strategy instead of trying different strategies. Always test your strategy beforehand before applying it in live trade. If you find it useful then only use it for livestock trading.

6.    Entering the market at the time of closure

The incidents around the globe have a significant impact on the market. Entering the time of closure further increases the risk of trading. Because certain things are beyond our hands and failure to take this into account will lead to significant losses.

7.    Method of averaging down

People do not have the intentions of averaging down when they enter the markets. However, when their expectation rises, then without realizing the outcomes, they start the concept of averaging down. Then they began to hold their positions for a more extended amount of time. They then dive deep into losses riding on them instead of booking them when possible. So avoid this practice, instead have careful prior calculations for hedging the maximum of losses.

Next Article

Why You should Have A Demat Account?

Why You should Have A Demat Account?
by Nutan Gupta 12/01/2017

As Indians, we can proudly say that banks have successfully penetrated 99% of households in all of India. Banks are making sure that they provide essential services in each corner of the country. So, most of us now know how bank functions and what services they provide. Let’s go further and try to understand what a demat account is.

Simply put, a demat account is like a bank account. A bank account holds money of the account holder and a demat account holds securities. These securities can be in the form of shares of a company, bonds, exchange-traded funds or mutual funds. Demat account enables the holder to store shares in an electronic form. Investors hold shares and securities in a dematerialized (demat) account instead of physical certificates.

If you want to invest in stocks, it is necessary for you to have a demat account. It is opened with Depository Participants (DP). Depository Participants are those organizations that enable contact between investors and depositories. There are two depositories registered with SEBI – NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited). Demat account is the account that you hold with a Depository Participant.

Depository Participant is a broker who spells out the requirements, terms, fees, etc. to maintain a demat account with them. An investor would comply with all the requirements and open an account with the DP.

Here are the steps enumerated to open a demat account:

  • Approach a Depository Participant
  • Fill the required forms and submit the documents
  • On successful completion of this process, account number is generated
  • Access the demat account

Check: Procedure to Open a Demat account and necessary document required to open a Deamt account

It is mandatory now to link your Aadhar UID with the demat account. Also, it is compulsory to fulfill the KYC norms too. Primary documents are required to get this done. Once this process is over, you will be able to buy and sell shares online. Just like a bank account, you can have multiple demat accounts with various depository participants.

Demat account thus enables an investor to trade online. Buying and selling happen through online stock trading platforms; these platforms are provided by DP to the investors. Through these trading platforms, an investor can place an order to either buy or sell in the stock market. Once the order is placed, the money is debited, and the demat account is credited with the shares of the company.

What are you waiting for? Invest in the share bazaar, open demat account today!

Next Article

5 reasons to start trading immediately

5 reasons to start trading immediately
12/01/2017

When someone advises you to start trading, it doesn't necessarily mean that you have to give up your current job and become a full-time stockbroker. It means to invest your hard earned money in your free time through best trading platforms to receive the best returns. While surfing the internet, you might have come across numerous new ways to invest in the stock market.

Here are some expedient reasons to invest in the share market:

 

A legit source of second income

Investing in stocks is a perfect way to earn extra money. You can keep working on your current professions and trade online at your convenience. This second income can help you fulfill your materialistic whims and desires.

You are your decision maker with the online trading account. Also, online trading companies provide you with discounted brokers to take care of your investments.

Education is no barrier

Many professions require a formal degree. In the share market, you don't need to have any specific training; just an acumen to hit the online share trading. You can quickly rope onto some stock market tips on how to buy shares online, the best stocks to buy, and stock market basics. The trading websites teach you how to trade stocks online.

Multiplicity of options

There isn't one market-one trade which limits you. You can explore from the pool of stock market. With forex trading, options, futures trading, derivatives, equity shares, bitcoins, etc.; the possibilities are endless. You don't have to go for something that you don't like.

No need to leave your bedroom

You can sit in your pajamas and trade online, sipping on a beverage of your choice. You can trade online at your convenience. All you need is a steady internet connection and a laptop (or a computer). You can even work while traveling; all you need is your smartphone and the best trading apps.

Make it your own business

Once you've amassed a substantial amount of wealth through online trading and you are confident about your skills in the share market, you can become an online trading expert. In this way, you can make a profitable business in the share market.