5 Stocks to Buy Today: September 9, 2021
Every morning our analysts scan through the markets universe and chose the best momentum stocks to buy today. The stocks are recommended from a wider list of momentum stocks and only the best ones make it to the top 5 list. We also update on the performance of earlier recommendation every morning to help you with your trading journey. Read on to know the momentum stocks to buy today. The average holding period could be between 7-10 days on average.
List of 5 Stocks to Buy Today
1. Affle India Ltd. (AFFLE)
Affle India is a technology company with a proprietary consumer intelligence platform that delivers consumer acquisitions, engagements, and transactions through relevant mobile advertising. It's a Singapore-based company founded in 2005 and entered India in 2006. They work on Paas (Platform as a Service).
AFFLE Stock Details for Today:
- Current Market Price: Rs.4,800
- Stop Loss: Rs. 5,075
- Target 1: Rs. 5,265
- Holding Period: One week
5paisa Recommendation: Buying interest is visible based on trends, thus making it our top stock recommendations for the day.
2. Nippon Life India Asset Management Ltd. (NAM-INDIA)
Nippon Life is one of the fastest growing mutual funds in India, offering investors a well-rounded portfolio of products to meet varying investor requirements. The company has presence in 300 cities (as on March 31, 2019) across the country. Nippon life constantly strives to launch innovative products and customer service initiatives to increase value to investors.
NAM-INDIA Stock Details for Today:
- Current Market Price: Rs. 436
- Stop Loss: Rs. 426
- Target: Rs. 454
- Holding Period: One week
5paisa Recommendation: Sideways move is expected to end and expected to continue holding the grip, thus making it one of the best stocks to buy today.
3. Laxmi Organic Industries Ltd. (LXCHEM)
Laxmi Organic Industries is a global player in the crop science, life science and pigment segment. Based across various contries around the globe, the company produces the entire product range of Acetyl Intermediates and Speciality Intermediates, and different countries manage the marketing leg of these acetyl intermediates.
LXCHEM Stock Details for Today:
- Current Market Price: Rs. 505
- Stop Loss: Rs. 490
- Target 1: Rs. 527
- Target 2: Rs. 543
- Holding Period: One week
5paisa Recommendation: Trends suggest the stock has picked up and there is buying at support.
4. HDFC AMC (HDFCAMC)
HDFC AMC is a large stock company (of Rs. 62693 Crore), operating in financial services sector.
HDFCAMC Stock Details for Today:
- Current Market Price: Rs. 3,268
- Stop Loss: Rs. 3,194
- Target: Rs. 3,410
- Holding Period: One Week
5paisa Recommendation: Experts observe a strong volume for this stock, making it feature on our list of 'Best Stocks to Buy Today'.
5. Indian Energy Exchange (IEX)
The Indian Energy Exchange is an Indian electronic system based power trading exchange regulated by the Central Electricity Regulatory Commission. IEX started its operations on June 27, 2008.
IEX Stock Details for Today:
- Current Market Price: Rs. 591
- Stop Loss: Rs. 577
- Target: Rs. 610
- Target: Rs. 628
- Holding Period: One week buy
5paisa Recommendation: The stock pattern shows recovery and uptrend is likely to start.
Also Read: BTST Trading Stock Recommendations
Performance of our Previous 'Buy' Stock Calls
As we promised, here's how our previous stock call recommendations have worked.
1. Swing trade IRCTC went up 13.8% from recommended level, both target touched
2. Swing trade INDIAMART went up 5.2% in 2 days SUNDRMFAST went up 4.9% from recommended level, touched 1st target
3. MASTEK is 6% up, hits target (target was 2965, today's high 2965)
4. BALAMINES recommended yesterday touched Target
5. APLAPOLLO recommneded yesterday went up 6.2%
6. BTST NAM-INDIA touches target, profit Rs 17.6k per lot
7. BTST HDFCAMC touches target
Share Market Today
The Indian stock market is expected to open in the red as trends on SGX Nifty indicate a negative opening for the index in India. SGX Nifty Levels 17,332.50 down 53.75 points at 8:06 am.
US markets see profit booking for the 2nd day running as caution prevails on growth as jobs numbers disappointment lingers on.
Bond yields fall to 1.33% even as US$ recoups losses to close at 92.72. Nasdaq sees deeper correction as China-dominated tech stocks take a beating.
Asian markets opened in the red led by the Japanese 'Nikkei' which has seen a superb rally in the last 5 days on the back of the new Prime Minister-elect.
The 'Nikkei' was trading lower by over 125 points in early trade as were most other indices down nearly 1%.
This also as Chinese stocks see selling pressure due to weakness in the financial firm 'Evergrande' seeing huge currency hedge losses rising with exposure as high as US$150 billion.
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BTST Trading Tips for Today: 9th September, 2021
5paisa analysts bring the best intraday ideas, short-term ideas and long-term ideas for you. In the morning we provide best momentum stocks to buy today, while in the last trading hour we provide buy today sell tomorrow (BTST) ideas.
BTST Trading Ideas for Today
1. BAJAJFINSV SEP FUT
- Current Market Price: Rs. 16,820
- Stop Loss: 16,670
- Target: Rs. 17,100
2. HAVELLS SEP FUT
- Current Market Price: Rs. 1,451
- Stop Loss: Rs. 1,438
- Target: Rs. 1,474
3. BHARTIARTL SEP FUT
- Current Market Price: Rs. 685
- Stop Loss: Rs. 680
- Target: Rs. 699
- Current Market Price: Rs. 125
- Stop Loss: Rs. 122
- Target: Rs. 132
5. KOTAKBANK SEP FUT
- Current Market Price: Rs. 1,815
- Stop Loss: Rs. 1,832
- Target: Rs. 1,782
Specialty Chemicals Companies to Hike CAPEX by 50% in FY-22
After a lull in capital spending in the midst of the pandemic in 2020, specialty chemical companies will see capital expenditure (capex) rising by 50% yoy to Rs.6,200 crore in FY22. This takes the capex of specialty chemical companies back to pre-COVID levels. Specialty chemicals are specialized chemicals that go into a number of user industries like pharmaceuticals, paints, petrochemicals, metal products etc.
Specialty chemicals companies are seeing solid traction from domestic and export demand. Domestic demand has been rising with revival in most of the user industries back to normal levels of output. The latest IIP numbers reflect that Indian economy is back to pre-COVID levels of output. In the Indian markets, specialty chemical companies have gained from higher demand and better price realizations.
Also Read: Rally in Specialty Chemical Companies
The big shift has happened on the exports front. In last 2 years, the Chinese government clamped down heavily on the Chinese chemical companies that did not comply with environment norms. That drastically reduced the chemical output from China in the global export market.
Additionally, the pandemic highlighted the risks of depending too much on China for the supply chain. Till 2019, most countries relied on China to supply specialty chemicals for various applications. However, the pandemic led to severe supply chain embarrassments forcing global companies to look at India as an alternative.
There were other factors favouring Indian companies. Lower supplies from American hubs due to hurricanes and blockade of Suez Canal impacted global supply chains of specialty chemicals. Since demand was robust, specialty chemical companies could easily pass on higher crude costs via higher prices. This has encouraged a surge in capex this year.
Last year, revenue growth for specialty chemical companies fell to 10% and is expected to revive to 20% in FY22. Apart from the China factors, Western nations are increasingly looking at India, which is already among the top-3 specialty chemicals manufacturers in the world. Higher capacities will just underscore that advantage.
Fabindia Plans to File for IPO worth Rs 7,400 Cr
Fabindia, which is already a household name in ethnic wear and local arts and crafts, is looking at an IPO to raise close to $1 billion or approximately Rs.7,400 crore. The IPO will be a mix of a fresh issue and an offer for sale. Reportedly, Fabindia has already shortlisted I-Sec, SBI Caps, JP Morgan, Credit Suisse and Nomura Advisory as their investment banks to lead manage their public issue.
While the specifics of the issue are not yet available, it is estimated that Fabindia could look at an overall valuation for the business at $2 billion. Out of this, 25% of the shares or nearly $500 million could be an offer for sale or OFS while another $500 million may come from fresh issue, leading to infusion of funds into the company.
At Rs.7,400 crore, this will be among the largest issues in recent times. The only issue this year that was larger was Zomato which raised Rs.9,375 crore via its public issue in July this year. The other large issue was Nuvoco Vistas which was worth Rs.5,000 crore. Of course, there is the Paytm IPO that will be close to Rs.16,000 crore and the biggest of them all, LIC, which is expected to be a Rs.75,000 crore issue.
Fabindia counts Premji Finvest, the family office of Azim Premji, as well as Nandan Nilekani and Rohini Nilekani among its current equity investors. While it is almost confirmed that Premji Finvest may look at a partial exit in the OFS, it is not clear what the Nilekani family proposes to do with its stake.
Fabindia sells wares of over 40,000 artisans and craftsmen across the length and breadth of India. They have a large number of dedicated stores across India through which these ethnic products are reached out to the public. Fabindia plans to use the fresh funds to expand its store presence. IPOs have already raised close Rs.60,000 crore this year across a total of 36 public issues.
Coal India to Hike Prices by 11% to Cover Cost Spike
In what promises to have cascading inflationary impact on the economy, Coal India is looking to hike coal prices by 10-11%. The chairman, Mr. Pramod Agarwal, confirmed that the need to hike prices had been felt in internal discussions and there was almost a consensus on the subject. However, since the government is the majority owner of Coal India, the final decision will vest on the government.
The current average regulated price of coal is Rs.1,394 per tonne. The last price revision had happened in 2018. However, Coal India management admitted that costs had spiralled on a variety of fronts in the last two years making a strong case for a hike in the price of coal. However, the bigger issue is the wage revision that is due shortly.
In the last wage agreement signed with the employees, Coal India had give a hike of 20% to its employees. The wage revision will again become due this year and this price hike is meant to compensate CIL for that. Coal India has an annual wage bill of Rs.37,000 crore and the wage revision that is due from July will cost the company another Rs.10,000 crore. All these factors need to be compensated for.
The big challenge is the inflationary impact. It is estimated that a 10% spike in coal prices will increase the power cost by 30 paisa per unit. That could have a downstream cascading effect. That would be the contentious issue at a time when the RBI is trying hard to hold inflation under 6%.
The real reason for CIL looking to hike prices is the sharp in global coal prices. This reduces the advantage for most power companies to import coal from other countries. Even with a hiked price, Indian coal can still be competitive. That is what is driving CIL to urge the government for a price hike.
Zomato pulls out of Groceries and Nutraceuticals
One of the unique features of digital players is speed and flexibility. In a show of alacrity, Zomato has taken a decision to pull out of groceries retailing and its nutraceuticals business and concentrate on its core food delivery business. Zomato will also exit its much smaller nutraceutical business selling health and fitness products.
Zomato was running grocery deliveries on a beta basis. However, its experience was of poor customer experience as well as gaps in order fulfilment. In the last few years, a number of dedicated logistics focused companies have come up in the digital space, and substantially crunched the time to delivery. Zomato did not see too much value in investing resources in this area.
There is one more reason for Zomato to stay away from delivery of groceries. It recently picked up 10% stake in Grofers and would prefer to leverage the groceries delivery franchise of Grofers to spearhead that side of the business. Grofers has fine tuned groceries down to delivery in under 10-20 minutes through a fine-tuned collection and deep-tech delivery model. Zomato would rather develop on this model rather than reinvent the wheel.
Zomato had entered the groceries delivery business during the pandemic last year but with activities getting back to normal, it does not see too much benefit. Also, Zomato hopes to derive better outcomes from its Rs.745 crore investment in Grofers. Hence, Zomato has already clarified that it does not intend to get into this activity of groceries delivery and would prefer to leave to specialists like Grofers.
Zomato has already communicated to all its grocery partners, that it will shut its grocery pilot effective 17th September. Grofers offers delivery of groceries in as short as 10 minutes. Grocery delivery is a different ball game relying on smart hub locations, supply chains and deep tech to understand customers better. That is not the core competency of Zomato anyways.