Nifty 17196.7 (-1.18%)
Sensex 57696.46 (-1.31%)
Nifty Bank 36197.15 (-0.85%)
Nifty IT 35848.05 (-0.86%)
Nifty Financial Services 17779.5 (-1.13%)
Adani Ports 737.45 (-0.22%)
Asian Paints 3110.45 (-2.21%)
Axis Bank 673.00 (-0.46%)
B P C L 385.90 (1.86%)
Bajaj Auto 3287.85 (-1.22%)
Bajaj Finance 7069.25 (-1.55%)
Bajaj Finserv 17488.70 (-1.52%)
Bharti Airtel 718.35 (-1.94%)
Britannia Inds. 3553.75 (-0.69%)
Cipla 912.05 (-1.00%)
Coal India 159.75 (0.28%)
Divis Lab. 4757.05 (-0.42%)
Dr Reddys Labs 4596.50 (-1.42%)
Eicher Motors 2455.55 (0.16%)
Grasim Inds 1703.90 (-1.16%)
H D F C 2771.65 (-1.29%)
HCL Technologies 1171.40 (-1.12%)
HDFC Bank 1513.55 (-0.80%)
HDFC Life Insur. 690.95 (-2.03%)
Hero Motocorp 2462.45 (-0.41%)
Hind. Unilever 2343.65 (-1.66%)
Hindalco Inds. 424.65 (-1.72%)
I O C L 122.20 (1.28%)
ICICI Bank 716.30 (-0.84%)
IndusInd Bank 951.15 (0.59%)
Infosys 1735.55 (-0.73%)
ITC 221.65 (-1.69%)
JSW Steel 644.55 (-0.34%)
Kotak Mah. Bank 1914.20 (-2.55%)
Larsen & Toubro 1801.25 (0.67%)
M & M 836.95 (-1.48%)
Maruti Suzuki 7208.70 (-1.59%)
Nestle India 19321.35 (-0.93%)
NTPC 127.00 (-1.32%)
O N G C 145.90 (1.32%)
Power Grid Corpn 206.10 (-3.92%)
Reliance Industr 2408.25 (-3.00%)
SBI Life Insuran 1165.95 (-1.86%)
Shree Cement 25914.05 (-1.43%)
St Bk of India 473.15 (-0.81%)
Sun Pharma.Inds. 751.80 (-1.89%)
Tata Consumer 774.30 (0.14%)
Tata Motors 480.10 (0.21%)
Tata Steel 1118.00 (0.50%)
TCS 3640.45 (-0.07%)
Tech Mahindra 1593.30 (-2.23%)
Titan Company 2369.25 (-0.72%)
UltraTech Cem. 7332.45 (0.13%)
UPL 712.75 (2.08%)
Wipro 640.75 (-0.94%)

Chart Busters: Top trading set-ups to watch out for Friday

Chart Busters: Top trading set-ups to watch out for Friday
by 5paisa Research Team 22/10/2021

The benchmark index, Nifty has continued its downward journey for the third consecutive day. However, the index has taken support at the 13-day EMA level and recovered almost 130 points from the days low. The index has closed at the 18178.10 level with a loss of 88.50 points or 0.48%. The banking benchmark index, Bank Nifty has gained 512 points or 1.30%. From the daily low, the Bank Nifty has recovered almost 602 points and ended above the 40000 mark for the first time. Among the constituents of Bank Nifty, the Kotak Mahindra Bank and RBL Bank were top gainers.

Here are the top trading set-ups to watch out for Friday.  

Kotak Mahindra Bank: After registering the high of Rs 2077.80, the stock has witnessed minor throwback along with low volume. The throwback was halted near the 38.2% Fibonacci retracement level of its prior upward move (Rs 1688.90-Rs 2077.80). On Thursday, the stock has given a cup like pattern breakout. The depth of the cup pattern is 7% and its length is 15 trading sessions. Further, this breakout was supported by a robust volume of more than double of 50-days average volume, indicating strong buying interest by market participants. All the moving averages based on trade set-ups are showing a bullish strength in the stock. Daryl Guppy’s multiple moving averages is suggesting a bullish strength in the stock. The stock is trading above all the 12 short and long term moving averages. The averages are all trending up, and they are in a sequence. Interestingly, the leading indicator, 14-period daily RSI has taken support near the 60 zone, and bounced back sharply. This indicates a super bullish range shift as per the RSI range shift rules. The ADX is reasonably good at 22.15 levels. The +DI is above the -DI and ADX shows strength in the trend. Technically, all the factors are currently aligned in support of the bulls. Hence, we would advise the traders to be with a bullish bias. As per the measure rule of the cup pattern, the upside target is placed at Rs 2230 level. While on the downside, the 20-day EMA is likely to provide the cushion in case of any immediate decline. The 20-day EMA is currently placed at the Rs 1997 level.

Jindal Worldwide: Majorly, the stock is displaying a bullish trend as it is marking the sequence of higher tops and higher bottoms on the daily chart. Further, it is trading above its short and long-term moving averages. These averages are edging higher, which is a bullish sign. After registering the high of Rs 121.90, the stock has witnessed minor correction, which is halted near the 20-day EMA level. On Thursday, the stock has given a 9-days consolidation breakout on the daily chart. This breakout was supported by above 50-days average volume. The momentum indicators and oscillators are also suggesting further bullish momentum in the stock. The leading indicator, 14-period daily RSI is in the super bullish zone and it has given bullish crossover on Thursday. The daily MACD stays bullish as it is trading above its zero line and signal line. The MACD histogram is suggesting further bullish momentum. The stock is clearly on uptrend and trend strength is extremely high. The Average Directional Index (ADX), which shows trend strength, is as high as 56.16 on a daily chart and 45.36 on a weekly chart. Generally above 25 levels is considered as a strong trend. In both time frames, the stock is meeting the criteria. Based on the above observations, we expect the stock to continue its upward movement and test levels of Rs 133.60 followed by Rs 140 in the medium term. On the downside, the 13-day EMA is likely to act as strong support for the stock.

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Biocon Q2 profit drops 18% but revenue inches up on biosimilars boost

by 5paisa Research Team 22/10/2021

Biopharmaceuticals company Biocon Ltd reported an 18% drop in its consolidated net profit for the second quarter, as a slowdown in sales of generic drugs offset the growth in its biosimilars business.

Net profit after exceptional items for the July-September period fell to Rs 138 crore from Rs 169 crore a year earlier. However, net profit before exceptional items rose 11% to Rs 188 crore.

Earnings before interest, tax, depreciation and amortization (EBITDA) jumped 35% to Rs 551 crore while the core EBITDA margin expanded to 33% from 32% from a year earlier.

Kiran Mazumdar-Shaw, executive chairperson at Biocon, said the exceptional item related to modification of the optionally convertible debentures of a private equity investment in unit Biocon Biologics Ltd and reversal of claims related to the government’s Service Exports from India Scheme.

Biocon’s consolidated revenue from operations inched up 5% to Rs 1,840 crore from Rs 1,750 crore, primarily driven by good performance of the research services unit Syngene International and biosimilars business Biocon Biologics. The biosimilars portfolio includes insulins, monoclonal antibodies and recombinant proteins across developed and emerging markets.

Biocon Q2: Other highlights

1) Pre-tax profit before exceptional items rises 27% to Rs 276 crore.

2) Revenue from generic APIs and generic formulations falls 12% to Rs 530 crore.

3) Pre-tax profit from generics business drops 28.5% to Rs 498 crore from Rs 697 crore.

4) Syngene Q2 revenue at Rs 610 crore, up 17% year-on-year.

5) Biocon Biologics Q2 revenue rises 10% to Rs 743 crore

6) Biocon Biologics Q2 EBITDA at Rs 303 crore, up 72% YoY

7) Biocon Biologics Q2 EBITDA margin at 38% and core EBITDA margin at 42%.

Biocon management commentary

Mazumdar-Shaw said Biocon Biologics made strategic moves in the last quarter that will drive future growth of its biosimilars business and deliver long-term value for its shareholders. The quarter also marked Biocon Biologics’ strategic entry into vaccines and the infectious diseases segment through partnerships with Serum Institute Life Sciences and Adagio Therapeutics.

“With the waning pandemic and improvements in supply chain conditions, I believe all three business segments, generics, biosimilars and research services, are well positioned for sustained growth in H2FY22,” she added.

Biocon CEO and MD Siddharth Mittal, said the generics business witnessed a muted performance for the quarter as it encountered continuing pricing pressure in the US for its formulations portfolio, and a slower than expected ramp up of demand for some key APIs.

“Operational and supply challenges in the earlier part of the quarter also impacted the performance of the API business. There was advance buying by customers in the corresponding period of the previous fiscal, apprehending COVID-19 related disruptions and is reflected in the year-on-year decrease in revenue,” he added.

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Trending Stock: Is Federal Bank all set to zoom?

Trending Stock: Is Federal Bank all set to zoom?
by 5paisa Research Team 22/10/2021

The Federal Bank gave a bullish pennant breakout, indicating trend continuation. Is it all set to zoom? Let’s find out.

The recovery in Bank Nifty can be well attributed to a few of the well-deserved banking stocks. The Federal Bank is one of them. From the lows in March 2020, the Bank Nifty surged almost 150%, whereas the Federal Bank has jumped almost 175%, outperforming Bank Nifty by 25%. It has given breakout from bullish pennant pattern indicating trend continuation.

A bullish pennant pattern is a continuation chart pattern, which is usually witnessed when a stock experiences a large upward movement, followed by a brief consolidation, before continuing its northward journey. Remember, in order to complete this pattern, the price needs to break out from the upper slope of the triangle with higher volumes.

Having said that, the stock was under pressure since October 2017. Last week the stock broke out this downtrend suggesting a trend reversal. Presently, the stock is trading at an important Fibonacci level of 61.8%. Breaching the same would further invite bullishness. However, there few important levels that you need to look for that is 108, 128 and 185. There might be a potential pullback from these levels.

Technical indicators such as the Relative Strength Index (RSI) is also supporting the stock’s northward journey. It is presently hovering around 68, whereas its 20-week Exponential Moving Average (EMA) is at 57. Moreover, if we look at Moving Average Convergence Divergence (MACD) then it is also supporting bullishness in this stock. MACD is in the positive territory, in fact it has also given positive crossover.

The price opened at 94.8, made a high of 98 and a low of 93.3 before closing at 96.55 on October 21, 2021.

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These penny stocks are locked in the upper circuit on Friday, October 22

These penny stocks are locked in the upper circuit on Friday, October 22
by 5paisa Research Team 22/10/2021

Several penny stocks are locked in the upper circuit on a day when Sensex is seen trading in green with realty stocks and banking stocks outperforming.

The markets have recovered in style on Friday with Bajaj Finserv leading the BSE Sensex gainers list after jumping higher by more than 3% on an intraday basis. Bajaj Finance and Bajaj Auto feature amongst the top BSE Sensex gainers on Friday on an intraday basis. HDFC Bank and Kotak Mahindra Bank are amongst the top-performing private banks on October 22. HDFC Bank is trading above 17000 levels comfortably.

BSE Smallcap index and Midcap index even though in green are seen underperforming the frontline indices on Friday on an intraday basis. BSE Realty index is the top-performing sectoral index along with BSE Bankex. BSE IPO index is up by more than 1%. The shares of Rail Vikas Nigam Ltd are soaring higher after the stock saw a breakout with huge volumes. 

Several penny stocks are trading with gains, with few of the penny stocks locked in the upper circuit.

Following is the list of penny stocks that are locked in the upper circuit on Friday, October 22

Sr No   

Stock   

LTP (Rs) 

Price gain (%) 

1  

Llyods Steels  

5.6  

4.67  

2  

Shriram EPC   

6.15  

4.24  

3  

Prakash Steel   

2.8  

3.7  

4  

Viji Finance   

2.5  

4.17  

5  

Ankit Metal Power   

3.6  

4.35  

6  

Gayatri Highways   

1.1  

4.76  

7  

Reliance Naval and Engineering   

3.15  

5  

8  

Indowind Energy   

9.95  

4.74  

9  

Indosolar  

3.35  

4.69  

10  

National Steel   

6.6  

4.76  

11  

Hotel Rugby   

3.5  

4.48  

12  

Zenith Birla   

1.05  

5  

13  

Continental Seeds 

9.7  

4.86  

14  

TV Vision   

2.7  

3.85  

15  

DCM Financial  

3.6  

4.35  

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Asian Paints: What does the historical drawdown indicate?

Asian Paints: What does the historical drawdown indicate?
by 5paisa Research Team 22/10/2021

Does this fall in Asian Paints share price present a good buying opportunity for long term investors? Read on to know more.

Asian Paints, one of the best compounder for investors came out with its second-quarter result recently and is down by almost 10% since in last five trading sessions. From its all-time high of Rs 3505 reached in September 2021, the stock is down by almost 16%. The reason for such a fall is a miss on the earnings front given the rise in material cost. It is highest in the last four decades according to the management.

Does this fall present a good buying opportunity for long term investors? To know this we did a historical analysis of the drawdown (A drawdown is a peak-to-trough decline of a share price during a specific period for an investment), of the share price of Asian Paints. The last time we saw such a fall was in the share price of Asian Paints was in February 2021, when it dropped by 20% soon after it recovered its losses.

The following table shows the top 5 drawdowns of Asian Paints since 2002.

Worst drawdown periods  

Net drawdown in %  

Peak date  

Valley date  

Recovery date  

Duration  

1  

44.14  

16-06-2008  

12-03-2009  

22-07-2009  

288  

2  

28.68  

13-10-2016  

21-12-2016  

01-09-2017  

232  

3  

27.44  

06-02-2006  

08-06-2006  

06-11-2006  

196  

4  

24.8  

18-07-2013  

28-08-2013  

22-10-2013  

69  

5  

23.89  

08-01-2008  

22-01-2008  

29-04-2008  

81  

The above table shows that the company’s share price has been quite resilient even in tough times. For example, during the great financial crisis, though the frontline indices fell by more than 50%, shares of Asian Paints fell by 44%. Even during the recent fall of March 2020, shares of the company fell by 20% compared to a 38% fall by the index.

Purely going by the historical analysis of Asian Paints share price, it seems that we will witness a very limited fall from here. It presents a good opportunity for long term investors.

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5 Stocks to Buy Today: October 22, 2021

5 Stocks to Buy Today: October 22, 2021
by 5paisa Research Team 22/10/2021

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 October 22

1. KOTAK MAHINDRA (KOTAKBANK)

KOTAK MAHINDRA Stock Details for Today

- Current Market Price: Rs. 2,144

- Stop Loss: Rs. 2,085

- Target 1: Rs. 2,200

- Target 2: Rs. 2,275

- Holding Period: One week

5paisa Recommendation: Our technical experts see end in sideways move of the stock hence making this stock best stock to buy.

 

2. SRF LTD (SRF)

SRF LTD Stock Details for Today: 

- Current Market Price: Rs. 2,269

- Stop Loss: Rs. 2,210

- Target 1: Rs. 2,350

- Target 2: Rs. 2,415

- Holding Period: 1 week

5paisa Recommendation: Our technical experts expects further buying in the stock and recommends buying this stock.

 

3. EICHER MOTORS (EICHERMOT)

EICHER MOTORS Stock Details for Today: 

- Current Market Price: Rs. 2,663

- Stop Loss: Rs. 2,595

- Target 1: Rs. 2,735

- Target 2: Rs. 2,800

- Holding Period: 1 week

5paisa Recommendation: Positive momentum in stock is expected and thus making this stock as one of the best stocks to buy today.

 

4. IIFL WEALTH (IIFLWAM)

IIFL WEALTH Stock Details for Today: 

- Current Market Price: Rs. 1,766

- Stop Loss: Rs. 1,715

- Target 1: Rs. 1,820

- Target 2: Rs. 1,900

- Holding Period: 1 week

5paisa Recommendation: Positive momentum in stock is expected and thus making this stock as one of the best stocks to buy today.

 

5. RAIL VIKAS (RVNL)

RAIL VIKAS Stock Details for Today: 

- Current Market Price: Rs. 36

- Stop Loss: Rs. 34

- Target 1: Rs. 38

- Target 1: Rs. 41

- Holding Period: 1 week

5paisa Recommendation: Our technical experts see strong volume in this stock hence making this stock best stock to buy.

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