MARKET WRAP: Sensex ends at record high of 36,985; hits 37k in intraday

Photo: Shutterstock.com
The benchmark indices ended at their record highs on Thursday on expiry of July Futures and Options (F&O) contracts.

The S&P BSE Sensex that breached 37,000 mark for the first time ever to hit an intra-day high of 37,027 levels, ended a tad lower at 36,985 levels, up 126 points. The broader Nifty50 index settled at 11,167, up 35 points. The 50-share index had surged to a high of 11,185 levels in intra-day deals.

MARKET OUTLOOK 

"Once the Nifty closes above the 11,171 mark, expect this to become the new support level for the index. The next resistance could come in at 11395 – 11,400 levels, a 100% extension level of swing seen from 9,952 (bottom of March 23) to 10,929 (top of May 15) and from 10,929 to 10,417 (bottom of May 23)," said V K Sharma, Head Private Client Group & Capital Market Strategy at HDFC Securities in an exclusive note. READ MORE HERE

MARUTI Q1FY19 DISAPPOINTS

Among individual stocks, Maruti Suzuki India (MSIL) closed around 4% lower to at Rs 9,390 on the NSE, after the company reported lower-than-expected 26.9% growth in net profit at Rs 19.75 billion in June quarter (Q1FY19). The country’s largest car maker had profit of Rs 15.56 billion in year ago quarter.

GLOBAL MARKETS

Asian stocks edged higher on Thursday, taking comfort from gains on Wall Street after US President Donald Trump and European Commission President Jean-Claude Juncker agreed to work towards eliminating trade barriers on industrial goods.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2 per cent while Japan's Nikkei stock index was 0.2 per cent lower.

(with Reuters inputs)

5:02 PM IST MARKET COMMENT Rahul Mishra, AVP (Derivatives), Emkay Global This is the first expiry where unexpired future contracts will be physically settled (list of 45 such stocks is provided). Average rollover this time in these stocks is higher compared to their historical level (on an average 78% of the positions have been rolled compared to 52% last month). As a result of this Market wide roll over is also higher compared to historical level (61% v/s 53% last month). Nifty made a new intraday high of 11185 and we saw good buying on July Expiry

3:42 PM IST Nifty PSU Bank settles 5.45 per cent higher. Top gainers: COMPANY LATEST PREV CLOSE GAIN() GAIN(%) BANK OF INDIA 95.60 88.20 7.40 8.39 CANARA BANK 278.90 258.95 19.95 7.70 INDIAN BANK 354.25 331.90 22.35 6.73 SYNDICATE BANK 43.20 40.80 2.40 5.88 ST BK OF INDIA 287.70 271.85 15.85 5.83

3:39 PM IST Nifty sectoral gainers and losers of the day

3:37 PM IST BSE Sensex: SBI, ICICI Bank, Powergrid among top gainers of the day, Maruti top loser

3:34 PM IST Market at close The S&P BSE Sensex that breached 37,000 mark for the first time ever to hit an intra-day high of 37,027 levels, ended a tad lower at 36,985 levels, up 126 points. The broader Nifty50 index settled at 11,167, up 35 points. The 50-share index had surged to a high of 11,185 levels in intra-day deals.

3:16 PM IST YES Bank falls 6% on profit booking post Q1 results Shares of YES Bank have slipped 6% to Rs 359 per share on the BSE on profit bookings after the bank reported 30.5% year on year (yoy) jumped in net profit at Rs 12.6 billion in June quarter (Q1FY19) on the back of healthy growth in net interest income (NII) & other income. READ MORE

3:04 PM IST Elara Capital on Sanofi India We marginally increase our EPS by 4.5% in CY18E and by 2.2% in CY19E. At the CMP, the stock is trading at a valuation of 17x CY19E EV/EBITDA, which is at a discount to other MNC peers. Given the recent run-up in the stock price, we revise our rating to Accumulate from Buy with a new target price of Rs 6,130 from Rs 6,000 on 32x (unchanged) CY19E P/E. Any regulatory headwinds to drug pricing in domestic market is key risk to our call.

2:57 PM IST COMMODITY WATCH: Sugar Backed by Government measures, domestic sugar prices have recovered to around Rs. 33,500/MT (ex-mill UP) from a low of Rs. 26,500/MT in May. Recent Government measures such as creation of 3 million MT buffer stock and fixing of minimum selling price (MSP) for sugar at Rs. 29,000/MT, has helped the sugar industry. However, as per an ICRA note, the sustainability of the same is uncertain, given the likelihood of another year of bumper production in SY2018-19. Further, the hike in FRP is likely to result in margin pressures and provide further impetus to farmers to sow sugarcane, which is likely to exacerbate the oversupply conditions

2:46 PM IST Bank stocks trade mixed COMPANY NAME LATEST HIGH LOW CHG () CHG(%) ICICI BANK 285.05 286.15 273.20 10.45 3.81 PUNJAB NATL.BANK 80.70 81.70 79.75 1.45 1.83 ST BK OF INDIA 283.80 285.75 273.55 12.35 4.55 KARUR VYSYA BANK 98.00 99.85 96.65 -1.00 -1.01 YES BANK 362.85 386.35 358.75 -20.60 -5.37

2:44 PM IST TOP LOSERS ON THE BSE TODAY COMPANY PRICE() CHG() CHG(%) VOLUME INTELLECT DESIGN 193.05 -16.85 -8.03 142382 JAGRAN PRAKASHAN 125.00 -10.75 -7.92 50764 SECURITY & INTEL 1060.05 -76.70 -6.75 6277 YES BANK 361.10 -22.35 -5.83 1393947 AVANTI FEEDS 433.25 -26.15 -5.69 79263 » More on Top Losers

2:43 PM IST Centrum on Glaxo SmithKline Pharma We maintain Sell rating on GlaxoSmithKline Pharma (GSK) and revise our TP to Rs1,900 (earlier Rs1,650) based on 24x March’20E EPS of Rs79.1. GSK’s Q1FY18 results were in-line with our estimates. GSK revenue grew by 21%YoY, EBIDTA margin improved 1,590bps to 19.1% and net profit before EO item grew 596% YoY on a lower base. GSK’s major brands grew by high single digit to double digit during the quarter. That said, the company has a strong presence in the vaccines segment and launched Infanrix Hexa during Q1FY19

2:30 PM IST Crowd thins at the last place to trade shares of RSE-listed companies The herd is thinning at the last place you could buy and sell shares of companies that were previously listed only on regional stock exchanges (RSEs). The latter began to shut down over the past few years. By now, firms transferred from there to the dissemination board of established exchanges have seen a number of exits. READ MORE

LIVE UPDATES

MARKET COMMENT Rahul Mishra, AVP (Derivatives), Emkay Global

This is the first expiry where unexpired future contracts will be physically settled (list of 45 such stocks is provided). Average rollover this time in these stocks is higher compared to their historical level (on an average 78% of the positions have been rolled compared to 52% last month). As a result of this Market wide roll over is also higher compared to historical level (61% v/s 53% last month). Nifty made a new intraday high of 11185 and we saw good buying on July Expiry
Nifty PSU Bank settles 5.45 per cent higher. Top gainers:

COMPANY LATEST PREV CLOSE GAIN() GAIN(%)
BANK OF INDIA 95.60 88.20 7.40 8.39
CANARA BANK 278.90 258.95 19.95 7.70
INDIAN BANK 354.25 331.90 22.35 6.73
SYNDICATE BANK 43.20 40.80 2.40 5.88
ST BK OF INDIA 287.70 271.85 15.85 5.83

Nifty sectoral gainers and losers of the day


BSE Sensex: SBI, ICICI Bank, Powergrid among top gainers of the day, Maruti top loser


Market at close

The S&P BSE Sensex that breached 37,000 mark for the first time ever to hit an intra-day high of 37,027 levels, ended a tad lower at 36,985 levels, up 126 points. The broader Nifty50 index settled at 11,167, up 35 points. The 50-share index had surged to a high of 11,185 levels in intra-day deals.
YES Bank falls 6% on profit booking post Q1 results

Shares of YES Bank have slipped 6% to Rs 359 per share on the BSE on profit bookings after the bank reported 30.5% year on year (yoy) jumped in net profit at Rs 12.6 billion in June quarter (Q1FY19) on the back of healthy growth in net interest income (NII) & other income. READ MORE

Elara Capital on Sanofi India

We marginally increase our EPS by 4.5% in CY18E and by 2.2% in CY19E. At the CMP, the stock is trading at a valuation of 17x CY19E EV/EBITDA, which is at a discount to other MNC peers. Given the recent run-up in the stock price, we revise our rating to Accumulate from Buy with a new target price of Rs 6,130 from Rs 6,000 on 32x (unchanged) CY19E P/E. Any regulatory headwinds to drug pricing in domestic market is key risk to our call.
COMMODITY WATCH: Sugar

Backed by Government measures, domestic sugar prices have recovered to around Rs. 33,500/MT (ex-mill UP) from a low of Rs. 26,500/MT in May. Recent Government measures such as creation of 3 million MT buffer stock and fixing of minimum selling price (MSP) for sugar at Rs. 29,000/MT, has helped the sugar industry.

However, as per an ICRA note, the sustainability of the same is uncertain, given the likelihood of another year of bumper production in SY2018-19. Further, the hike in FRP is likely to result in margin pressures and provide further impetus to farmers to sow sugarcane, which is likely to exacerbate the oversupply conditions
Bank stocks trade mixed

COMPANY NAME LATEST HIGH LOW CHG
()
CHG(%)
ICICI BANK 285.05 286.15 273.20 10.45 3.81
PUNJAB NATL.BANK 80.70 81.70 79.75 1.45 1.83
ST BK OF INDIA 283.80 285.75 273.55 12.35 4.55
KARUR VYSYA BANK 98.00 99.85 96.65 -1.00 -1.01
YES BANK 362.85 386.35 358.75 -20.60 -5.37

TOP LOSERS ON THE BSE TODAY

COMPANY PRICE() CHG() CHG(%) VOLUME
INTELLECT DESIGN 193.05 -16.85 -8.03 142382
JAGRAN PRAKASHAN 125.00 -10.75 -7.92 50764
SECURITY & INTEL 1060.05 -76.70 -6.75 6277
YES BANK 361.10 -22.35 -5.83 1393947
AVANTI FEEDS 433.25 -26.15 -5.69 79263
» More on Top Losers
Centrum on Glaxo SmithKline Pharma

We maintain Sell rating on GlaxoSmithKline Pharma (GSK) and revise our TP to Rs1,900 (earlier Rs1,650) based on 24x March’20E EPS of Rs79.1. GSK’s Q1FY18 results were in-line with our estimates. GSK revenue grew by 21%YoY, EBIDTA margin improved 1,590bps to 19.1% and net profit before EO item grew 596% YoY on a lower base.

GSK’s major brands grew by high single digit to double digit during the quarter. That said, the company has a strong presence in the vaccines segment and launched Infanrix Hexa during Q1FY19
Crowd thins at the last place to trade shares of RSE-listed companies

The herd is thinning at the last place you could buy and sell shares of companies that were previously listed only on regional stock exchanges (RSEs). The latter began to shut down over the past few years. By now, firms transferred from there to the dissemination board of established exchanges have seen a number of exits. READ MORE

Macro economy gives confusing signals to MPC on policy rate front

The Monetary Policy Committee (MPC) will gauge weakening macroeconomic parameters like surging inflation, subdued industrial growth, and widening trade deficit to take a call on the policy rate in its three-day meeting commencing July 30. READ MORE

Kesoram Industries refutes allegation of short-changing public shareholders

Basant Kumar Birla-promoted Kesoram Industries on Thursday refuted all allegations of "short-changing" public shareholders and listed the steps taken by the management to save the company from becoming sick or potentially sick over the past few years. READ MORE
Maruti Suzuki dips 4% post Q1 results

Shares of Maruti Suzuki India (MSIL) have slipped 4% to Rs 9,391 per share on the BSE after the company reported lower-than-expected 26.9% growth in net profit at Rs 19.75 billion in June quarter (Q1FY19). The country’s largest car maker had profit of Rs 15.56 billion in year ago quarter. READ MORE

RESULT IMPACT Maruti slips 2.7% post Q1FY19 numbers on the NSE



EARNINGS ALERT (Image source: Company release)

Maruti Q1FY19 performance (yoy change)



EARNINGS ALERT: Maruti says: While the operating profit increased by 59.7%, the net profit increased by 26.9% on account of lower non-operating income due to mark-to-market impact on the invested surplus, compared to last year
InterGlobe Aviation down for seventh straight day; hits 52-week low

Shares of InterGlobe Aviation, operator of IndiGo, are trading lower for the seventh straight day, down 2% at Rs 1,002, in otherwise firm market. The stock is quoting at its 52-week low level, and has dipped 11% from Rs 1,122 on July 17 as media reports suggested that the company has grounded five A320 aircraft in Delhi. READ MORE

EARNINGS ALERT: Maruti Suzuki's net profit in Q1 (2018-19) at Rs 19,753 million, up 26.9% compared to the same period last year.
Facebook stock falls 24 percent on forecast for slowing growth, rising expenses

Facebook Inc's stock fell as much as 24 percent after hours on Wednesday over concerns about the impact of privacy issues on the social media company's business, with executives warning that revenue growth would slow and expenses would rise. The plummeting stock price wiped out about $150 billion in market capitalization in under two hours. READ MORE

COMPANY UPDATE Kesoram Industries refutes allegation of short-changing public shareholders

Basant Kumar Birla-promoted Kesoram Industries on Thursday refuted all allegations of "short-changing" public shareholders and listed the steps taken by the management to save the company from becoming sick or potentially sick over the past few years.
 
Minority shareholder Janardan Kothari had made the allegations at the company's annual general meeting. Subsequently, stock exchanges had sought a clarification based on reports READ MORE HERE
BS SPECIAL Nifty50 index may be on course for the 11,400 level

The markets opened in positive territory on Thursday, with the Sensex breaching the 37,000 mark for the first time ever in early trade. On the National Stock Exchange (NSE), the Nifty50 index, too crossed its previous record high to scale a fresh high of 11,179.60 levels in intra-day trade. We had stuck our neck out at the beginning of the month and said that the markets will reach a new high before the Independence Day READ MORE HERE
Equirus Securities on L&T Finance Holdings

With Rs 18bn of provisions for wholesale stressed assets adjusted in opening reserves, 1QFY19 and subsequent results will be a true reflection of the company’s operations. With books cleaned, we revise estimates to factor in IND-AS based assumptions, leading to FY19E/FY20E RoEs of 19.5%/19.3% with NIM/Loan growth of 4.8%/21% in each year. We UPGRADE to LONG (from ADD) with a revised SOTP-based Sep’19 target of Rs 215 (Rs 205 earlier) at 2.9x Sep’19 BV.
Edelweiss on Bhel

We retain ‘BUY’ on account of improved P/L and balance sheet potential over the ensuing two-three years given sustained operating margin improvement from current lows and reasonable rise in cash flow. However, we revise down our DCF-based target price to Rs 90 (Rs 110 earlier) as we prune our thermal market size estimate given government’s sharpened focus on renewable and a higher risk-free rate of 8%, in line with our house call.
TOP CONTRIBUTORS TO SENSEX'S GAIN TODAY

COMPANY LATEST CHG(RS) CHG(%) FREE FLOAT
MKT CAP
(RS CR)
CONTRIBUTION
(POINTS)
ICICI BANK 282.55 7.95 2.90 149832.07 39.68
ST BK OF INDIA 283.75 12.30 4.53 71541.97 32.82
HDFC BANK 2188.30 14.60 0.67 210795.90 24.64
ITC 288.40 2.35 0.82 261575.10 16.21
H D F C 2007.00 6.60 0.33 193778.42 8.95
TATA MOTORS 261.75 4.45 1.73 73217.95 7.40


Click here for the full list
Market Check

INDEX LATEST PREVIOUS CHANGE CHANGE(%)
BSE SENSEX 36984.40 36858.23 126.17 0.34
BSE 500 15055.45 14996.19 59.26 0.40
BSE MID-CAP 15754.29 15644.91 109.38 0.70
BSE SMALL-CAP 16309.59 16255.43 54.16 0.33
S&P BSE LARGECAP 4329.93 4314.39 15.54 0.36
> More on BSE Indices
Prabhudas Lilladher on Kansai Nerolac

We estimate CAGR of 14% in volumes, 17.7% in revenues and 16.9% in PAT over FY18-20. Kansai is currently trading at 36.7xFY20 EPS. We rollover and value the stock at 40xJune20 EPS of Rs13.7 and arrive at a target price of Rs549 (Rs526 earlier). We believe current input cost scenario provides an opportunity to accumulate stock for medium to long term gains. Retain Accumulate.
Motilal Oswal on Hero MotoCorp

We cut FY19/20E EPS by 4-5% to factor in lower spare sales, higher RM cost and a higher tax rate. The stock trades at 16.1x/14.2x FY19/20E EPS. We lower our valuation multiple to 15x (v/s 16x earlier), a 10% discount to 10-year average P/E, to factor in higher competitive intensity in the 2W industry. Maintain Neutral with a target price of Rs 3,442.
 
Larsen & Toubro: Concall takeaways from Motilal Oswal

Key highlights: (a) Private sector capex is still muted – a revival is at least two years away. (b) Order opportunity of INR5.4t for the 9MFY19 period. (c) NWC to sustain at ~20% of sales. (d) Domestic tendering activity remains strong; overseas tendering improving as well. Valuation view: Maintain Buy with an SOTP-based target price of Rs 1,540 (E&C business at 22x FY20E EPS, at the higher end of the five-year trading band, to which we add Rs 530 for subsidiaries)
COMMENT Hemang Jani, head advisory at Sharekhan on markets hitting new high

NIFTY and Sensex are at all time high levels, but one is not sensing the exuberance or excitement across participants as the rally has been primarily led by heavyweights such as TCS, Reliance Industries, Kotak Bank and the HDFC twins which have given spectacular returns over the last one year, where as the mid cap index and stocks are still significantly lower than their highs.

We feel that from here on earnings will play a major role in determining further upside. Factors such as global trade wars and upcoming general elections in India will keep investors cautious in the short term. However the longer term picture for Indian equities looks positive and we continue to prefer sectors such as private banking, consumer discretionary, Information technology and Pharma. With the rupee hovering close to 69 mark we feel certain IT and pharma companies will benefit from these tailwinds
Sebi mulls UPI-based payments for IPOs to reduce listing period to 3 days

Capital market regulator Securities and Exchange Board of India (Sebi) on Wednesday proposed Unified Payments Interface (UPI)-based payments for retail investors investing in initial public offerings (IPO). The move will help cut down the time taken between closing of an IPO and listing of the security from current six days to just three days, Sebi said. It will also do away with physical movement of application forms.
 
UPI is an instant payment system developed by the National Payments Corporation of India (NPCI), an entity regulated by the Reserve Bank of India (RBI). READ MORE

Nifty PSU Bank index rally over 4%; SBI, Canara Bank, BOB up more than 4%

Shares of public sector banks have rallied by up to 5% on the National Stock Exchange (NSE), after Canara Bank reported a net profit of Rs 2.81 billion in June quarter (Q1FY19) on the back of higher net interest income (NII). Analysts on average had expected the state-owned bank to post a loss during the quarter. READ MORE

Sebi pulls up mutual fund industry over dividend distribution practice

The Securities and Exchange Board of India (Sebi) on Wednesday pulled up the mutual fund industry over the practice of distributing dividends without the consent of trustees. According to sources, the market watchdog took a serious view of this breach during a meeting with independent trustees, who sit on the boards of asset management companies (AMCs). READ MORE

Hero to focus on scooter, premium bikes segments to boost growth

Hero MotoCorp reported a lower-than-estimated June quarter performance on lower realisations and higher material costs, which impacted both revenue growth and margins. The firm registered a 10.5 per cent year-on-year growth in revenues, led by volume growth of 13.6 per cent. READ MORE

Private financials, IT, FMCG, Reliance lead Nifty 50 to record high

Shares of private lenders which include non-banking financial companies (NBFC), information technology (IT), fast moving consumer goods (FMCG) and Reliance Industries (RIL) have helped the Nifty 50 index to hit a record high of 11,172.20 on Thursday in early morning trade. The benchmark index surpassed its previous high of 11,171.55 recorded on January 29, 2018. READ MORE

Is LIC bailing out debt-laden IL&FS?

In what could end up as one of the biggest bailouts in the financial sector, without portraying it as such, Life Insurance Corporation of India (LIC) is stepping in to ‘take charge of’ Infrastructure Leasing & Financial Services (IL&FS), an unlisted infrastructure behemoth with scores of complex subsidiaries, some of which are listed and a giant load of debt, the full details of which are not easily available in the public domain. READ MORE

With 36% growth in Q1 profit, L&T takes a strong start to fiscal year 2019

Larsen & Toubro (L&T) put out a robust performance in the first quarter, reporting good order flow growth and stable financial performance. Order flows of Rs 361.42 billion during the quarter, marking a growth of 37 per cent, indicates better days for the firm ahead. READ MORE

Market Check

INDEX LATEST PREVIOUS CHANGE CHANGE(%)
BSE SENSEX 36976.37 36858.23 118.14 0.32
BSE 500 15052.57 14996.19 56.38 0.38
BSE MID-CAP 15732.17 15644.91 87.26 0.56
BSE SMALL-CAP 16304.45 16255.43 49.02 0.30
S&P BSE LARGECAP 4330.30 4314.39 15.91 0.37
> More on BSE Indices
Ambuja Cements gains 6% on strong June quarter results

Shares of Ambuja Cements were trading higher by 6% at Rs 222 per share on the BSE at 09:30 am, after the company reported a better-than-expected a 27% year on year growth in standalone net profit at Rs 4.99 billion in June quarter (Q2CY18), on account of higher cement sales and lower expenses. It had profit of Rs 3.92 billion in year ago quarter. READ MORE

Nifty Sectoral trend


BSE Sensex gainers and losers


Market at open
 
At 9:17 AM, the S&P BSE Sensex was trading at 36,974, up 117 points while the broader Nifty50 was ruling at 11,158, up 26 points.
Markets at pre-open

Index Current Pt. Change % Change
 
S&P BSE SENSEX 36,924.14 +65.91 +0.18
 
S&P BSE SENSEX 50 11,672.06 +20.91 +0.18
 
S&P BSE SENSEX Next 50 32,638.90 +102.89 +0.32
 
S&P BSE 100 11,394.61 +20.64 +0.18
 
S&P BSE Bharat 22 Index 3,437.24 +27.08 +0.79

(Source: BSE)
Same-store sales fire up Jubilant FoodWorks' Q1 numbers; revenue up 26%

Led by robust same store sales (SSS) growth, Jubilant FoodWorks reported a better than expected performance in the June quarter, with a 26 per cent rise in sales over the same period a year before to Rs 8.6 billion. Profit rose over threefold to Rs 746.8 million. The consensus estimate had pegged sales and profit at Rs 8.2 billion and Rs 663.4 million. READ MORE

Result Calendar

Company Board meeting date
Bharat Fin Incl 26-07-18
Bharti Airtel 26-07-18
Biocon  26-07-18
CESC 26-07-18
Chola Inv 26-07-18
Colgate 26-07-18
Containr Crp 26-07-18
Dr Reddys 26-07-18
ITC 26-07-18
Maruti Suzuki 26-07-18
Petronet LNG 26-07-18
Shriram TrFn 26-07-18
Tata Power 26-07-18
Yes Bank 26-07-18

HDFC Securities on ICICI Prudential Life

For 1QFY19, IPRU recorded New Business and Renewal Business premiums of Rs 17.7bn (-13.0%) and Rs 36.3bn (+29.1% YoY) respectively. Growth in renewal premium is impressive and displays high quality of business written. PAT for the quarter was down 30.5% YoY to Rs 2.8bn due to new business strain, higher costs and lower investment income.

We fine tune our topline and margin assumptions resulting in VNB increasing by 2/1.5% for FY19E/20E. We continue to like IPRU as it benefits from increasing need of protection, and financialization of savings. We maintain BUY with a target price of Rs 484 (FY20 EV+ 26x FY20E VNB).
Kotak Securities on Persistent Systems

Over FY14-18, Persistent has posted revenue growth of 16% CAGR, generated healthy RoCE/ROE of above 18%/16%, respectively and maintained 23% plus dividend payout. We expect EPS to grow at 26% CAGR over the next two years (FY18-FY20E), driven by higher revenue growth and improvement in EBITDA margins. Lot of headwinds such as volatility in profitability and delay in revenue generation from IBM IoT deal during FY18 seems to be over
Nifty outlook by Tradebulls Securities for today

Nifty remains on the set course towards 11245 as it trades comfortably above 11100 mark. The ADX in the lower panel has jumped to 35.85 which is a good sign of incremental strength. The shift in OI build up range from 10900 to 11100-11000 also compliments the bullish setup. Hence expect the index to continue higher & declines if any should be used to add longs with a revised stop now at 10970 below the rising trend line support. READ MORE
MUST READ Higher probability of correction in major indices

The Sensex is currently at all-time highs. The Nifty is very close to breaking its all-time intraday highs in January 2018. However, most market watchers are anything but euphoric. This is because the latest uptrend has been extremely narrow in its scope and it has not been backed by breadth indicators. CLICK HERE FOR MORE
Top trading ideas by Prabhudas Lilladher: Buy Kajaria Ceramics, Escorts

BUY KAJARIA CERAMICS
CMP: Rs 444.30
TARGET: Rs 500
STOP LOSS: Rs 415
 
The stock has witnessed a decent erosion from the peak of 580 to signs of bottoming out at around 414 levels and has indicated a good bounce with rising volume to signify strength. The RSI has indicated a trend reversal from the oversold zone and has signaled a buy. The chart looks attractive for an entry at this levels with minimum risk reward ratio. With good volume activity seen, we recommend a buy in this stock for an upside target of 500 maintaining a stop loss of 415 levels.
 
BUY ESCORTS
CMP: Rs 886.30
TARGET: Rs 965
STOP LOSS: Rs 830
 
The stock has made a double bottom formation pattern in the daily chart at around 825 levels making a good base and has indicated a good bounce to signify strength and potential to rise further and give a breakout above 920 levels to witness fresh upward move. Also the stock has moved past the significant 34WMA moving average making the bias positive and with good volume participation witnessed, we recommend a buy in this stock for an upside target of 965 keeping a stop loss of 830. READ MORE
Emkay Global on JSW Steel Q1FY19 numbers

Headline numbers are better than estimates, primarily on account of higher-than-expected realization of Rs 49,514/tonne, up 26% yoy (+6% qoq). During the quarter, offtake volume stood at 3.83mn tonne, in line with our estimate. 

We expect this strong performance to continue on the back of better product mix and consequently higher realizations. Underlying demand is likely to be supportive. However, due to weak global sentiment, we value the stock at 6.5x FY20E EV/EBITDA. We upgrade the stock to Accumulate with a revised target price of Rs 358
Market outlook by Angel Broking

We believe that hitting record highs is merely a formality now and whether it will happen tomorrow or later, it should not matter much as a positional trader. We would remain upbeat and hence, advise traders to trade with a positive bias.

For the coming session, 11092 would be seen as a key intraday support and any decline towards it should ideally be interpreted as a buying opportunity for intraday traders. On the upside, 11171.55 remains to be an immediate resistance and surpassing this would unfold the uncharted territory for the index
Markets on Wednesday

INDEX LATEST PREVIOUS CHANGE CHANGE(%)
BSE SENSEX 36858.23 36825.10 33.13 0.09
BSE 500 14996.19 14994.47 1.72 0.01
BSE MID-CAP 15644.91 15664.48 -19.57 -0.12
BSE SMALL-CAP 16255.43 16218.54 36.89 0.23
S&P BSE LARGECAP 4314.39 4313.92 0.47 0.01
> More on BSE Indices
Emkay Global on Ambuja Cements

CY18E/CY19E EBITDA estimates are largely in-tact and we introduce CY20E estimates. Clarity on expansion project in the North region is awaited. Valuations are attractive at 10.6x CY19E EV/EBITDA and EV/tonne of US$119/tn (standalone). Upgrade rating to ACCUMULATE with SOTP based target price of Rs240 (roll-forward to mid-CY20E).
Today's picks: From HDFC to PowerGrid, hot stocks to watch on Thursday

HDFC
Current price: Rs 2,000
Target price: Rs 2,030
 
Keep a stop at Rs 1,985 and go long. Add to the position between Rs 2,015 and Rs 2,025. Book profits at Rs 2,030.
 
PowerGrid
Current price: Rs 176
Target price: Rs 172
 
Keep a stop at Rs 178 and go short. Add to the position between Rs 173 and Rs 174. Book profits at Rs 172. READ MORE

SGX Nifty

The SGX Nifty was at 11,162, up 0.22 per cent from the previous close.
Asian Markets

Asian stocks edged higher on Thursday, taking comfort from gains on Wall Street after US President Donald Trump and European Commission President Jean-Claude Juncker agreed to work towards eliminating trade barriers on industrial goods.
 
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2 per cent while Japan's Nikkei stock index was 0.2 per cent lower.
Wall Street

Wall Street rose on Wednesday as US President Donald Trump secured concessions from the European Union on trade, while a disappointing quarterly report from Facebook after the bell slammed its stock and threatened to put the brakes on a tech rally.

The Dow Jones Industrial Average rose 172.16 points (0.68 per cent) to 25,414.1, the S&P 500 gained 25.67 points (0.91 per cent) to 2,846.07 and the Nasdaq Composite added 91.47 points (1.17 per cent) to 7,932.24.
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