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Adani Ports 717.15 (-5.94%)
Asian Paints 3143.10 (-0.04%)
Axis Bank 661.75 (-2.67%)
B P C L 376.85 (-5.81%)
Bajaj Auto 3334.60 (-1.68%)
Bajaj Finance 6807.05 (-4.47%)
Bajaj Finserv 16682.55 (-3.95%)
Bharti Airtel 738.75 (-3.45%)
Britannia Inds. 3555.30 (-0.51%)
Cipla 966.70 (7.42%)
Coal India 155.90 (-1.67%)
Divis Lab. 4937.80 (2.88%)
Dr Reddys Labs 4750.90 (3.47%)
Eicher Motors 2433.90 (-3.43%)
Grasim Inds 1690.10 (-4.34%)
H D F C 2741.70 (-4.40%)
HCL Technologies 1110.05 (-1.31%)
HDFC Bank 1489.90 (-2.36%)
HDFC Life Insur. 670.65 (-2.64%)
Hero Motocorp 2529.40 (-2.52%)
Hind. Unilever 2335.10 (-0.59%)
Hindalco Inds. 417.00 (-6.72%)
I O C L 120.95 (-3.74%)
ICICI Bank 722.20 (-3.84%)
IndusInd Bank 901.80 (-5.99%)
Infosys 1691.65 (-1.79%)
ITC 224.00 (-3.16%)
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Kotak Mah. Bank 1964.30 (-3.48%)
Larsen & Toubro 1778.15 (-3.88%)
M & M 853.75 (-4.20%)
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Shree Cement 25945.80 (-2.72%)
St Bk of India 470.50 (-4.09%)
Sun Pharma.Inds. 767.30 (-1.99%)
Tata Consumer 766.70 (-5.09%)
Tata Motors 460.20 (-6.61%)
Tata Steel 1112.30 (-5.23%)
TCS 3446.85 (0.03%)
Tech Mahindra 1527.40 (-2.05%)
Titan Company 2292.30 (-4.40%)
UltraTech Cem. 7394.75 (-2.81%)
UPL 703.80 (-3.23%)
Wipro 621.45 (-2.40%)

Chart Busters: Top trading set-ups to watch out for on Monday.

Chart Busters: Top trading set-ups to watch out for on Monday.
by 5paisa Research Team 18/10/2021

The benchmark index Nifty has marked a fresh all time high of 18350.75 level. In the last four trading sessions, the index has gained 443.35 points or 2.47%. On Thursday, barring the Nifty Auto index, all other sectoral indices have ended in positive. The Nifty Midcap 100 and Nifty Smallcap 100 has also marked the fresh all time high. From the Nifty 500 space, almost 65 stocks have marked a 52-week high.

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

Alkali Metals: The stock has formed a hammer candlestick pattern as of September 22, 2021, and thereafter witnessed a nearly 63% upward journey in just 9 trading sessions. However, after registering the high of Rs 111.70, the stock has witnessed correction. During the period of correction, the volume activity was mostly below the 50-days average volume. Hence, it should be viewed as a routine decline after a robust move. The correction is arrested near 50% Fibonacci retracement level of its prior upward move. On Thursday, the stock has taken support near the 13-day EMA level and resumed its upward journey.

The 14-period RSI on the daily timeframe is in bullish territory and it has given positive crossover on Thursday. Furthermore, in the recent corrective phase, the RSI never breached its 60 mark, which indicates that the stock is in a super bullish range as per RSI range shift rules. The MACD is above the zero line and signal line on the daily chart. The MACD histogram suggests bullish momentum. And most importantly, the MACD line crossed the prior swing highs.

Technically, all the factors are currently aligned in support of the bulls. Hence, we would advise the traders to be with a bullish bias. On the upside, the prior high of Rs 111.70 will act as minor resistance for the stock. While on the downside, the zone of Rs 90-Rs 88 will act as a strong support zone for stock as it is the confluence of swing low and 13-day EMA level.

Indiabulls Real Estate: Considering the daily chart, the stock has given a breakout of a downward sloping trendline resistance on Thursday. With this trendline breakout, the ADX, which shows the strength of the trend, turned upside and moved above the -DI. Further, this breakout was supported by above 50-days average volume. In addition, the stock has formed a sizeable bullish candle on breakout day, which adds strength to the breakout. 

Currently, the stock is trading above its short and long-term moving averages. These averages are in rising mode. The stock's Relative Strength Index (RSI) has reached its highest value in the last 14-days, which is bullish. Also, it has managed to close above its prior swing high. The MACD stays bullish as it is trading above its zero line and signal line.

Based on the above observations, we expect the stock to continue its upward movement. The prior swing high of Rs 174.75 will act as minor resistance for stock and on the downside, the zone of Rs 152-149 is likely to act as strong support for the stock.

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Fund manager’s favourite stock in September 2021.

Fund manager’s favourite stock in September 2021.
by 5paisa Research Team 18/10/2021

Financials remain the favourite stock of fund managers in the month of September 2021.

The month of September 2021 saw Nifty 50 inching up by almost 3%, while the broader market is up by almost 5%. The Nifty Bank that has been underperforming for a long was also up by 4.5% in September 2021. This is also reflected in the purchases made by domestic mutual fund managers last month. Out of the top 10 stocks where fund managers were most bullish among large-cap in September 2021, six were from the financial sector. SBI Cards and Payment Services was the stock where around Rs 1285 crore worth of shares was purchased by fund managers.

Following table shows the shares where MFs invested most in September 2021:

Large-Cap stocks

Stock Name 

Sector 

Net Qty Bought 

Approx. Buy Value(In Rs. cr) 

SBI Cards And Payment Services Ltd. 

Financials 

11844889 

1285.26 

HDFC Bank Ltd. 

Financials 

6807882 

1081.23 

SBI Life Insurance Company Ltd. 

Financials 

7788557 

937.41 

Axis Bank Ltd. 

Financials 

10827092 

840.76 

Bajaj Finance Ltd. 

Financials 

1061178 

806.1 

Adani Enterprises Ltd. 

Miscellaneous 

4255194 

650.13 

Bajaj Finserv Ltd. 

Financials 

345665 

603.77 

Bajaj Auto Ltd. 

Automobile and Ancillaries 

1576452 

595.91 

Tech Mahindra Ltd. 

Technology 

3383743 

478.5 

Power Grid Corporation Of India Ltd. 

Energy 

26018509 

475.22 

  

Mid-Cap Stocks

Stock Name 

Sector 

Net Qty Bought 

Approx. Buy Value(In Rs. cr) 

Max Healthcare Institute Ltd. 

Healthcare 

52457815 

1954.18 

Ashok Leyland Ltd. 

Automobile and Ancillaries 

48093037 

616.91 

Bharat Forge Ltd. 

Automobile and Ancillaries 

5728799 

430.99 

Aditya Birla Sun Life AMC Ltd. 

Financials 

5266140 

374.95 

Bata India Ltd. 

Retail and Other Services 

1699789 

301.71 

Coforge Ltd. 

Technology 

549741 

287.24 

Canara Bank 

Financials 

16117977 

267.64 

Oberoi Realty Ltd. 

Construction 

2754279 

229.68 

Vodafone Idea Ltd. 

Media and Communications 

237559131 

213.8 

The Phoenix Mills Ltd. 

Construction 

2246445 

204.56 

  

 Small-Cap Stocks

Stock Name 

Sector 

Net Qty Bought 

Approx. Buy Value(In Rs. cr) 

Vijaya Diagnostic Centre Ltd. 

Healthcare 

14447792 

823.45 

Multi Commodity Exchange Of India Ltd. 

Financials 

1544906 

245.35 

Sansera Engineering Ltd. 

Automobile and Ancillaries 

3005483 

242.27 

Cyient Ltd. 

Technology 

2250869 

229.61 

Can Fin Homes Ltd. 

Financials 

2696066 

169.55 

V-Guard Industries Ltd. 

Capital Goods 

5605192 

140.52 

AMI Organics Ltd. 

Healthcare 

1009251 

129.46 

JB Chemicals & Pharmaceuticals Ltd. 

Healthcare 

724054 

129.23 

Arvind Fashions Ltd. 

Retail and Other Services 

4856220 

126.5 

eClerx Services Ltd. 

Technology 

494353 

109.44 

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HDFC Bank’s Q2 numbers show positive signs, analysts see 15-20% stock upside

by 5paisa Research Team 18/10/2021

HDFC Bank posted robust earnings growth for the second quarter, thanks to a rise in advances due to a pickup in retail lending as well as strong commercial and rural loans.

Improved asset quality and thereby lower provisioning costs also helped India’s most valued lender match street estimates for quarterly earnings.

HDFC Bank: Basic Numbers

HDFC Bank’s standalone net profit rose 17.6% to Rs 8,834 crore for the three months ended September 30 from Rs 7,513 crore a year earlier.

Some analysts had expected a slightly higher profit, but this was more or less in line with general consensus. The bank’s net interest margins stayed at 4.1%, which took away some sheen off the bottom line.

Net interest income at Rs 17,684.4 crore increased 12.1% year-on-year and 4% from the first quarter ended June 30.

HDFC Bank: Credit growth

HDFC Bank’s credit growth improved to 15.5% compared to the same quarter last year and 4.4% sequentially, backed by a pickup in retail loans that grew nearly 13% even as wholesale loan growth moderated to 6%. Retail credit growth was driven by advances in home, auto, personal loans and payment products (including cards).

This is a critical sign as it shows pickup in consumer sentiment and sets the right tone for the current quarter where retail advances could improve net interest margins for the bank, thereby shining the profit numbers. Since the Reserve Bank of India has lifted a ban on the company’s new credit card customer acquisition programme, it is also likely to provide a fillip for the bank.

The bank’s credit growth was in the 20% range before the pandemic hit the economy. But with two consecutive quarters of sequential improvement, HDFC Bank appears to have seen the worst and is set for better credit picture in the current quarter.

HDFC Bank: Asset quality and provisioning

The bank’s gross non-performing assets (GNPA) ratio improved to 1.35% in Q2 from 1.47% in Q1. The net NPA ratio declined to 0.4% from 0.48% in Q1 and 0.5% in the preceding quarter ended March 31, 2021.

Its NBFC arm, HDB Financial Services, also reported an improvement in the GNPA to 6.1% from 7.8% in Q1.

Provision and contingencies rose 6% year on year to Rs 3,924.7 crore, though the amount declined by nearly a fifth from Rs 4,830.8 crore in Q1.

Analysts’ view

As the most valued lender in the country, HDFC Bank is also seen a bellwether for the credit growth scenario for the economy and especially consumer sentiment due to its large presence in the retail loans space. Over the last year or so, banking sector stocks have underperformed as investors remain wary of asset quality as well as concerns about credit offtake. To that extent, the improving financial picture of HDFC Bank rings the right bells.

Most brokerage houses have a buy call on the stock with the average target price around Rs 1,950-2,050 a share. This leaves room for 15-20% upside on the stock.

Emkay: The brokerage has a buy rating with a target price of Rs 2,050 a share. “We believe that growth acceleration and the lifting of the embargo on the credit card business are positive. However, lower margins and higher restructuring in Q2 were a tad disappointing,” it said.

Nirmal Bang: It maintains a buy call on the stock with a target price of Rs 1,962 a share. The brokerage said the pick-up in the retail segment, where growth had been lacklustre in the last few quarters, was encouraging.

“Accordingly, we expect margins to improve progressively and NII should revert to 15% YoY growth level in a few quarters. We remain sanguine about the bank’s growth prospects given that it is taking multiple measures to capture emerging opportunities in commercial/rural and retail banking.”

ICICI Securities: The brokerage has also maintained a buy rating but has increased the target price from Rs 1,818 to Rs 1,955 a share.

Motilal Oswal: It has also maintained its buy call on the stock and revised the target price to Rs 2,000 per share. “High provision coverage and contingent provision buffer provide comfort on asset quality. A pickup in loan growth particularly retail would aid NII and margins, which would drive profitability,” it said.

IDBI: The brokerage has a buy rating with the new target price of Rs 2,020 compared with Rs 1,790 earlier.

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PNB Housing Finance hits 5% lower circuit after scrapping Carlyle stake sale.

PNB Housing Finance hits 5% lower circuit after scrapping Carlyle stake sale.
by 5paisa Research Team 18/10/2021

Concerns regarding asset quality and growth re-emerge with the deal being called off.

The stock on PNB Housing Finance hit its lower circuit of 5% in the early trading session on Monday in reaction to the board decision of terminating the Rs 4,000 crore stake sale to investors led by Carlyle Group.

The Carlyle Group affiliate Pluto Investments has initiated the process to withdraw the open offer, the mortgage lender said in an exchange filing. The cause of the deal termination is said to be caused by delays in pending legal proceedings. Had the deal gone through, the Carlyle Group would have held close to 50% in PNB Housing Finance, helping to ease concerns about capital availability and growth.

In May 2021, investors led by Carlyle announced an investment of Rs 4,000 crore in PNB Housing. The investment by Carlyle was crucial for PNB Housing because it came at a time when the mortgage lenders financials were hit by liquidity crunch that hit NBFCs following the collapse of Infrastructure Leasing and Financial Services Ltd (IL&FS) in September 2018 and then followed by the pandemic.

However, the transaction soon came under the scrutiny of the Securities and Exchange Board of India (SEBI) after the Stakeholders Empowerment Services (SES) termed the deal ‘unfair and abusive’ to the minority shareholders. The market regulator halted the stake sale and asked PNB Housing Finance to conduct an independent valuation before pricing any capital-raising deal.

PNB Housing Finance challenged the regulators directive at Securities Appellate Tribunal (SAT), which allowed the company to seek shareholders approval. This was followed by SEBI approaching the Supreme Court after SAT delivered a split verdict.

With the eventual cancellation of the deal, the mortgage lender will have to look at other funding sources to support growth. The company has been looking to raise funds over the past few years however, the Reserve Bank of India (RBI) barred parent Punjab National Bank from infusing capital into its housing finance subsidiary.

In the early trading session on Monday, the stock of PNB Housing Finance was locked in its lower circuit of 5%. The trading was suspended at Rs 607.10 per share, down by 5% or Rs 31.95 on the BSE. The stock’s 52-week high is Rs 924 and the 52-week low is Rs 315.85 on BSE.

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These Penny Stocks are locked in the Upper Circuit on Monday.

These Penny Stocks are locked in the Upper Circuit on Monday.
by 5paisa Research Team 18/10/2021

The markets are trading at high levels with benchmark indices holding on to the early gains with Sensex crossing the 61,000 mark and Nifty around the 18500 level. Vedanta is the top BSE Sensex gainer with attractive gains of 12.31% while Hindalco and JSW Steel have gained by more than 6.03% and 3.54% each.

The BSE Metal Index is leading the sectoral peers and is up by 4.29%. Vedanta is seen shining the BSE Metal index on an intraday basis, up by 12.79%.

The broader market is seen outperforming the frontline indices with the BSE Midcap index up by 1.33% and SmallCap index up by 1.12%.

Tata Power is the top BSE Midcap index gainer, the stock has jumped attractively from its previous weeks close. On Monday, the stock is up by more than 15%, while NHPC has zoomed more than 13% and SJVN has soared by more than 10%.

BSE Oil & Gas, BSE IT, BSE Bankex and BSE Power indices are outperforming the benchmark indices on Monday.

In the small caps space, Vishwaraj Sugar Industries has given a positive breakout. The stock has broken the current resistance level on charts and is trading with a positive RSI.

Amid the bullish sentiment in the markets on Monday, several penny stocks were seen outperforming the markets.

Here is the list of penny stocks that are locked in the upper circuit on Monday:

  

Sr No   

Stock Name   

LTP   

Price gain (%)   

1  

Vikas Multicorp   

3.7  

4.23  

2  

FCS Software   

1.6  

3.23  

3  

Llyods Steels   

4.7  

4.44  

4  

Prakash Steel   

2.45  

8.89  

5  

Rolta India  

3.2  

4.92  

6  

Sintex Industries   

4.55  

4.6  

7  

Viji Finance   

2.1  

5  

8  

Gayatri Highways   

0.9  

5.88  

9  

National Steel and Agro Industries 

5.5  

4.76  

10  

Indosolar   

3.05  

3.39  

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Superstar Stocks: BTST Trading and stocks that could deliver good returns till October 19, 2021.

Superstar Stocks: BTST Trading and stocks that could deliver good returns till October 19, 2021.
by 5paisa Research Team 18/10/2021

Stocks that are in focus, Stocks to buy for tomorrow, Superstar Stocks selected on basis of a three-factor model, Rain Industries, Reliance Industries and JK Tyre.

Many times market participants see a stock opening with a gap-up and wish they should have bought this superstar stock a day before to take advantage of the gap-up move. To fulfil this wish, we have come out with a unique system, which would help us to get the list of candidates that can be the probable superstar stocks for tomorrow.

The superstar stocks for tomorrow selected are based on a three-factor prudent model. The first important factor for this model is price, the second key factor is pattern, and last but not least is the combination of momentum with volume. If a stock passes all these filters, it would flash in our system and as a result, will help traders to spot the superstar stocks for tomorrow at the right time!  

Here are the superstar BTST stocks for October 19, 2021.

Rain Industries: The stock has gained nearly 4.5% on Monday and it has formed a supersized bullish candle along with a surge in the volumes. The volume for the day has already surpassed its previous trading session. The RSI on an hourly, daily and weekly time frame is in the bullish territory. The stock can probably test levels of Rs 259 followed by Rs 264 on the upside, while on the downside, support is seen around Rs 244.

Reliance Industries: The stock of Reliance Industries is among the top two contributors to the Nifty 50 index as it has contributed nearly 31 points to Nifty’s kitty. The stock has logged a fresh 52-week high on Monday. The stock has formed a supersized bullish candle along with a surge in the volumes. The stock has already surpassed the volume of its previous trading session. The 14-period RSI is in the bullish super territory on hourly, daily and weekly time frame. The stock has the potential to test levels of Rs 2785 followed by Rs 2800 on the upside. On the downside, the level of Rs 2685 is likely to act as immediate support for the stock.

JK Tyre: The stock is seeing good action on Monday as it has gained over 4% along with a rise in volumes. The volume for the day is the highest single-day volume since September 3. The RSI on the hourly, daily and weekly chart is in bullish territory. The stock has the potential to test levels of Rs 164-166 and immediate support for the stock is placed at Rs 155.5.

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