Nifty 17026.45 (-2.91%)
Sensex 57107.15 (-2.87%)
Nifty Bank 36025.5 (-3.58%)
Nifty IT 34606.1 (-1.97%)
Nifty Financial Services 17614.7 (-3.56%)
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%)
JSW Steel 628.65 (-7.67%)
Kotak Mah. Bank 1964.30 (-3.48%)
Larsen & Toubro 1778.15 (-3.88%)
M & M 853.75 (-4.20%)
Maruti Suzuki 7170.50 (-5.31%)
Nestle India 19222.25 (0.23%)
NTPC 128.85 (-4.70%)
O N G C 147.10 (-5.16%)
Power Grid Corpn 202.00 (-1.10%)
Reliance Industr 2412.60 (-3.22%)
SBI Life Insuran 1130.35 (-2.51%)
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%)

Penny Stock Update: These stocks gained up to 9.00% on Wednesday

Penny Stock Update: These stocks gained up to 9.00% on Wednesday
by 5paisa Research Team 17/11/2021

On Wednesday, the Indian equity market closed in negative. BSE Auto index is the top gainer whereas the BSE Realty index is the top loser in today’s trade.

Today the Indian equity market closed on a negative note.

At close, the Nifty 50 and BSE Sensex indices closed negative down by 100.55 points i.e., 0.56% and 314.04 points i.e., 0.52% respectively. Stocks pulling the BSE Sensex and Nifty 50 index up were Asian Paints, ITC and Bajaj Finance. Whereas, stocks that dragged the BSE Sensex and Nifty 50 down were HDFC Bank, HDFC, TCS and Reliance Industries. On Wednesday, the BSE Sensex and Nifty 50 index opened down by 0.23% and 0.33% from the previous close.

In Wednesday's trading session the S&P BSE Auto, S&P BSE Utilities, S&P BSE Midcap Select Index and S&P BSE Smallcap Select Index were top gainers. BSE Auto index consisting of stocks such as Maruti Suzuki India Ltd, Tata Motors Ltd, Tube Investments of India Ltd and Bosch Ltd are the top gainers.

Among the sectoral indices, S&P BSE Realty, S&P BSE Energy, S&P BSE Oil & Gas and S&P BSE Telecom were top losers. BSE Realty consists of stocks such as Godrej Properties Ltd, Sunteck Realty Ltd, Prestige Estates Projects Ltd and Mahindra Lifespace Developers Ltd.

Here is the list of penny stock that gained up to 9.00% on a closing basis on Wednesday, November 17, 2021:  

Sr No.                 

Stock                 

LTP                  

Price Gain%                 

1.                 

Sanwaria Consumer Ltd  

0.65  

8.33  

2.                 

JIK Industries Ltd  

0.85  

6.25  

3.                 

Visagar Polytex Ltd  

0.85  

6.25  

4.                 

Hilton Metal Forging Ltd  

17.85  

5.00  

5.                 

Cinevista Ltd  

19.05  

4.96  

6.                 

Hindustan Motors Ltd  

12.75  

4.94  

7.                 

Energy Development Company Ltd.  

14.90  

4.93  

8.                 

PAE Ltd  

7.45  

4.93  

9.                 

Indowind Energy Ltd  

15.00  

4.90  

10.                 

Sintex Industries Ltd  

9.70  

4.86  

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

Top 10 stocks in overbought and oversold zones

Top 10 stocks in overbought and oversold zones
by 5paisa Research Team 17/11/2021

The Relative Strength Index (RSI) is one of the most widely used momentum indicators. Here we have listed stocks having RSI in overbought and oversold zones.

A not so good day for Nifty 50 today as it shed almost 0.56% or 100.55 points. In fact, since the last two trading sessions, Nifty 50 is forming lower highs and lower lows on a 5-minute time frame. Time and then, conviction is increasing for the resistance levels of 18,210-18,604 that Nifty 50 is not breaching at the moment. Having said that, the index notoriously takes support on the 50-Day Exponential Moving Average (EMA).

In the current market situation, it demands to have a more stock-specific view. However, checking the momentum indicator would definitely help you screen stocks. And one of the most popular and widely used momentum indicators is the Relative Strength Index (RSI). 

RSI is an indicator that helps you measure the magnitude of recent price changes to evaluate overbought or oversold situations. RSI is usually displayed as a line graph on a scale of 0 to 100 which moves between two extremes. It is believed that stocks with an RSI of 70 or above suggest overbought or overvalued conditions and probably signals a trend reversal or correction. On the flip side, an RSI of 30 or below suggests an oversold or undervalued situation.

Here is the list of the top 10 stocks with RSI in overbought and oversold zones.

Top 10 Stocks with RSI in overbought zone 

Stock Name 

Last Traded Price (LTP) 

Day's Change (%) 

RSI 

Rajesh Exports Ltd. 

741.3 

7.90% 

83.9 

Century Plyboards (India) Ltd. 

700.7 

0.20% 

83.4 

Thermax Ltd. 

1,744.6 

-2.70% 

83.3 

Sheela Foam Ltd. 

3,206.5 

1.20% 

83.0 

Finolex Cables Ltd. 

600.0 

2.10% 

80.9 

Page Industries Ltd. 

40,966.1 

-0.60% 

78.0 

Apollo Hospitals Enterprise Ltd. 

5,734.0 

12.50% 

77.2 

Lux Industries Ltd. 

4,546.1 

7.70% 

77.0 

KPIT Technologies Ltd. 

466.4 

6.70% 

76.9 

Macrotech Developers Ltd. 

1,428.8 

0.90% 

76.3 

 

Top 10 Stocks with RSI in oversold zone 

Stock Name 

Last Traded Price (LTP) 

Day's Change (%) 

RSI 

IOL Chemicals and Pharmaceuticals Ltd. 

478.9 

-3.3% 

22.5 

Tasty Bite Eatables Ltd. 

13,862.6 

-2.4% 

22.8 

Bajaj Consumer Care Ltd. 

201.4 

-2.5% 

22.9 

FDC Ltd. 

294.6 

-0.7% 

23.8 

Solara Active Pharma Sciences Ltd. 

1,052.5 

1.2% 

25.1 

BASF India Ltd. 

2,884.5 

-0.6% 

25.7 

JM Financial Ltd. 

81.2 

1.9% 

26.6 

PNB Housing Finance Ltd. 

462.8 

-1.0% 

28.8 

Aarti Drugs Ltd. 

539.5 

-1.8% 

29.2 

Bayer Cropscience Ltd. 

4,623.3 

-0.3% 

29.8 

 

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

F&O Cues: Key support & resistance levels for Nifty 50

F&O Cues: Key support & resistance levels for Nifty 50
by 5paisa Research Team 17/11/2021

Today the Nifty F&O action for November 18 expiry shows feeble support at 17,800.

The Indian equity market continued to close in red for the second day in a row. It opened with a negative note and moved up steadily to cross the 18,000 mark during the first one hour of trade. Nevertheless, it could not sustain the momentum and fell after that. The surge in covid cases in some countries along with a not very positive view of FIIs has made the market nervous.

Activity in the F&O market for the weekly expiry on November 18, 2021, shows that resistance has remained at 18,200. The highest call option open interest (136379) for Nifty 50 stood at a strike price of 18,200. In terms of the highest addition of open interest in the call options front, it was at 18,000 in the last trading session. A total of 67,918 open interest was added at this strike price. The next highest call option open interest stands at 18,000 where total open interest stood at 133,159.

In terms of put activity, the highest put writing was seen at a strike price of 17,900 (19,949 open interest added on November 17), followed by 17,800 (13,914 open interest added on November 17). The highest put open interest unwinding was seen at a strike price of 18,100 (13,432 open interest shed on November 17).

Highest total put open interest (75,788) stood at a strike price of 17,800. This is followed by a strike price of 17,900, which saw a total put option open interest of 70,503 contracts.

The Nifty 50 put call ratio (PCR) closed at 0.56 compared to 0.6 in the previous trading session. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish.

Following table shows the difference between call and put options at strike price near to max pain of 17900. 

Strike Price  

Open Interest (Call option)  

Open Interest (Put option)  

Diff(Put – Call)  

17,800.00  

16606  

75788  

59182  

17,900.00  

62586  

70503  

7917  

18,000.00  

133159  

43057  

-90102  

18100  

118364  

12183  

-106181  

18,200.00  

136379  

8816  

-127563  

18,300.00  

96266  

3426  

-92840  

18,400.00  

59061  

1114  

-57947  

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

LIC’s mega IPO inches closer: Target size, valuation and other details we know so far

by 5paisa Research Team 17/11/2021

Come early 2022 and India could have its biggest ever initial public offering (IPO), with the government deciding to list the insurance behemoth Life Insurance Corp (LIC) of India by the fourth quarter of the current financial year. 

Tuhin Kanta Pandey, who heads the government’s department of investment and public asset management, or DIPAM, said Wednesday that the apart from LIC the Indian government is also looking to privatise as many as five-six companies it owns, within the current financial year. 

So, how much is the government looking to raise from the LIC IPO?

The government is looking to raise as much as Rs 1 trillion, or $13.3 billion, by listing India’s biggest insurer. The government will dilute 10% of LIC’s shares, effectively valuing it at Rs 10 trillion ($133 billion). Some reports, however, say the IPO size could be around Rs 40,000 crore as the mega share sale of Rs 1 trillion may not be feasible.

But wasn’t this IPO announced last year itself?

Yes, it was. Finance minister Nirmala Sitharaman had announced the listing in February 2020, but the government had to shelve its plan in the wake of the coronavirus pandemic, owing to which the country went into a complete lockdown from March 2020, and the stock market tanked. 

How much money does the government plan to collect from disinvestment this year and how much is LIC expected to contribute to the figure?

The government has budgeted for collecting Rs 1.75 trillion from disinvestment during the current financial year. Of this, it hopes Rs 1 trillion, or more than half the target, will be met by selling LIC shares. 

How big will LIC really be as compared to other index heavyweights?

At current levels, LIC will be the third-biggest company by market capitalization behind only Mukesh Ambani-led Reliance Industries Ltd, which is valued at Rs 15.6 trillion, and Tata Consultancy Services, which is worth just over Rs 13 trillion. 

For perspective, LIC will be more than twice as valuable as the State Bank of India, which at Rs 4.45 trillion, is currently the most valuable government-owned entity in terms of market capitalization. 

What steps has the government already taken for listing LIC?

The government has amended the LIC Act via the Finance Act of 2021, to allow for a higher share of profits to be distributed among shareholders, in line with the norm that other insurance companies follow. The amendment also allows for the government to reduce its stake in LIC to 51%, via an enabling provision. 

Will the government have to dilute further stake after the listing?

Yes, it will have to bring its stake down to 75% in two years, to meet the shareholding norms set by the capital markets regulator, the Securities and Exchange Board of India.

What else will change for LIC after the listing?

After it is listed, like all other listed companies, LIC will have to announce its results every quarter and, therefore, will be open to full public scrutiny, unlike now. 

When was LIC set up and how big are its assets under management? 

LIC was set up in 1956 and manages assets worth more than Rs 32 trillion. As the only government-owned life insurer, it has a market share of 68%. 

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

Indian Paints Sector Q2 FY22 analysis- Revenues rise by 17-33%

by 5paisa Research Team 17/11/2021

Due to the unanticipated double digit raw material cost inflation of 20%, the paints sector reported a sharp decline in gross margins by 450-1000bps in Q2 FY22. Post the 15% inflation registered in Q1 FY22, there was a 6% increase in the inflation in Q2. The key raw material prices were driven up by the increase in price of crude oil, supply chain disruption and increased freight charges. Among all its peers, Berger paints reported the least amount of Gross margin compression of 450 bps.

The players in the industry chose to engage in an aggressive price hike of 10%, following the 6% hike in the first half of FY22. Asian paints has announced a 5% price hike from 5 December and rest of the companies are expected to follow suit. If there are no further price hikes in raw materials, then this price hike will help in offsetting the margin pressures thus leading to an increase in the gross margins.

The companies have witnessed a 17-33% YoY rise in revenue and 8-19% 2 year CAGR. The decorative segment of the business grew substantially in this sector. There was a high amount of pent up demand this quarter, which has more or less been fulfilled and there is speculation that the high volume growth period is ending. The price hikes will surely increase the revenue but demand growth is not expected to rise as much.

Sales growth of all the players:

COMPANIES

Q2 FY22

Q1 FY22

Asian Paints

32.6%

91.1%

Berger Paints

27.7%

93.2%

Kansai Nerolac Paints

17.1%

121.3%

Akzo Nobel

22.1%

142.3%

Indigo Paints

26.7%

49.2%

 

EBITDA Margins of all the players: (In %)

COMPANIES

Q2 FY22

Q1 FY22

Asian Paints

12.7

16.4

Berger Paints

15.9

13.3

Kansai Nerolac Paints

10.0

13.6

Akzo Nobel

12.8

14.5

Indigo Paints

11.9

12.9

 

Gross Margins of all the players: (In %)

COMPANIES

Q2 FY22

Q1 FY22

Asian Paints

34.7

38.4

Berger Paints

38.3

38.6

Kansai Nerolac Paints

28.9

33.9

Akzo Nobel

40.2

42.4

Indigo Paints

41.7

45.5

 

1. Asian Paints:

In Q2 FY22, the sales/revenue of Asian Paints grew by 33% YoY which was 8% more than the analysts estimates. This high growth was offset by the weaker than expected gross margin which decreased by 370bps QoQ. The PAT was reported to be 37% lower than what was estimated. Despite these issues, management made a very prudent decision to use excess revenue to cover a large part of the rise in raw materials, which was one of the main reasons behind the steep drop in gross margin in the second quarter.

The company plans on using this exact method to overcome the problem within the next three months and aims at reaching an 18-20% EBITDA margin by the 4th Quarter.

The increase in the revenue was mainly because of the increased demand in the Tier 3 and Tier 4 cities. According to the Management, a strong demand is expected to sustain for the near future amid the upcoming festive season and the pick up in the housing sector as the lock-down rules are taken off the table. The specialty waterproofing paints segment also saw significant growth during this monsoon season, which is reflected in second quarter results. There are a few advantages of Asian Paints that make it a very good addition to anyone's portfolio- a very strong brand name, a highly diversified portfolio which will help company overcome tough times and also sustain its growth due to its specialty segments.

The company has also added some new and innovative products to its portfolio such as emulsion, wood coating and water repellent products. Furthermore, Asian Paints dominates in the field of decorative paints which is expected to sustain a volume growth of 12-15% (according to the 2 year CAGR), which in itself is very attractive to potential investors and will help the company to grow long term.

The EPS is expected to grow by 42.7% in FY23, along with a 22.5% growth in ROE in FY22 itself. The EV/EBITDA value is also estimated to increase from 58.3 in FY21 to 60.9 in FY22.

In the Home Decor segment of the company, 26 home stores were opened in Q2 FY22. 500 sites were booked in Q2 for home décor and painting services along with the launch of a new range of wallpapers.

Overseas business

The revenue growth in this side of the business was very weak due to the long drawn lock-down in the Middle east and some local issues in Africa. Due to this, a good decision by the management was taken to increase the prices of the products in order to mitigate the increase in raw material cost.

Home Improvement

The modular kitchen making segment registered an increase in revenue of 70% YoY and the bath segment registered a growth of 69% YoY due to the premium products offered by the company.

2. Berger Paints:

The value growth of Berger paints exceeded the volume growth by 5-5.5% due to the price hike of 5% in the decorative segment and 10% in the industrial business. Tier 1 and Tier 2 cities have shown a much stronger volume growth than Tier 3 and Tier 4 cities. The demand for the decorative segment took off in larger towns. The company expects the price hikes to help offset the inflation in Q3 and lead to increase in margins. The cost of materials has shot up from Rs.750 crore to a whopping Rs.1,303 crore. Revenue from operations showed a significant increase of 27.70% YoY, from Rs.1,743 crore in Q2 FY21 to Rs.2,225 crore in Q2 FY22. But, the total expenses witnessed an increase of Rs.468 crore in Q2 FY22. The EBITDA margin has been compressed by 333bps YoY.

3. Kansai Nerloac Paints:

Nerolac paints reported a 48% fall in PAT from Rs.167.96 crore in Q2 FY21 to Rs.87.28 crore in Q2 FY22. In contrast, the revenue from operations increased by 17.1% YoY from Rs.1383.21 crore in Q2 FY21 to Rs.1619.64 crore in Q2 FY22. The total expenses also reported an increase of 29.88% YoY. The Board of directors approved an interim dividend of Rs.1.25 per share. The company also launched two new products in the construction chemicals segment.

4. Akzo Nobel:

Sales in Kerela contributes 30% to the total amount of sales, which saw a very low demand till July due to the Covid norms and it bounced back in August and September when it grew more than the company average. The company reported a decrease in PAT from Rs.66.28 crore in Q2 FY21 to Rs.55.72 crore in Q2 FY22. In contrast, the total income of the company showed a 21% YoY increase.

5. Indigo Paints:

Indigo paints saw the highest value growth and volume growth of 43% and 31% respectively, in the category. The revenue from operation increased by 26.65% YoY from Rs.154.8 crore in Q2 FY21 to Rs. 196.11 crore in Q2 FY22. The net profit reported a decrease of 27.95% YoY. The company increased prices in the cement paint segment as well as all other categories. Another price hike is planned fro Q3 to support the gross margins in Q3 and Q4. Indigo also expects to complete the expansion of its Tamil Nadu manufacturing facility by Q2 FY23.

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
Next Article

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

Chart Busters: Top trading set-ups to watch out for Thursday
by 5paisa Research Team 18/11/2021

On Wednesday, the benchmark index, Nifty has lost over 100 points or 0.56%. The price action has formed a bearish candle with a long upper shadow. For the last 13 trading sessions, the index is trading in a rising channel. Currently, the index is at a lower trendline of the rising channel and any sustainable move below the zone of 17870-17850 will lead to a sharp fall in the index.

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

Aarti Industries: Considering the daily chart, the stock has given a downward sloping trendline breakout as of October 04, 2021, and thereafter witnessed a 21% upside in just 11 trading sessions. On October 19, 2021, the stock has formed a bearish engulfing candlestick pattern and thereafter witnessed correction.

During the correction, the stock has retested the breakout level. The stock formed a strong base near the trendline support and started rising higher. On Wednesday, the stock has formed a sizeable bullish candle on the daily chart. The reversal from trendline support was further justified by above 50-days average volume. Further, on Wednesday, the stock has surged above its 20-day EMA and 50-day EMA level, which is a short-term bullish sign.

The momentum indicators and oscillators are also supporting the overall bullish price structure. The 14-period daily RSI took support in the zone of 40-38 historically many times and this time also it bounced exactly from the same level. The daily RSI is trading above its 9-day average and it is in rising mode. The MACD histogram is about to cross the zero line and stochastic has already given bullish crossover.

Going ahead, as the stock has reversed from the support zone, the risk-reward is quite favourable at the current level for initiating the long position. On the upside, the level of Rs 1017, followed by Rs 1046 will act as minor resistance for the stock. While on the downside, the 100-day EMA will act as major support for the stock.

Welspun Corp: On Wednesday, the stock has given downward sloping trendline breakout on the daily chart. This breakout was supported by robust volume. Further, the stock has formed a sizeable bullish candle on breakout day.

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.

The leading indicator, 14-period daily RSI is currently quoting at 68.76 level and it is in rising mode. The directional movement index is also at a strong point. The ADX is at 26.48 and +DI is above the –DI and ADX on the daily time frame. The MACD is above the zero line and the signal line. The MACD histogram suggests bullish momentum. And most importantly, the MACD line has 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 downside, the 8-day EMA will act as strong support for the stock, which is currently placed at Rs 143.75 level.

Open Demat Account

Enter First Name & Last Name
Enter Mobile Number
Enter correct otp
Please enter referal code
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order