MARKET WRAP: Nifty at new high, Sensex up 284 pts; banks, FMCG stocks rally

Photo: Shutterstock.com
The benchmark indices settled higher on Friday taking cues from their Asian peers.

The S&P BSE Sensex ended at 37,948, up 284 points while the broader Nifty50 index settled at a new high of 11,471 levels, up 86 points.

Among key stocks, the fast moving consumer goods (FMCG) major ITC rose over 2 per cent to end at Rs 313 levels on the BSE. The stock hit a fresh 52-week high of Rs 315 earlier today. ICICI Bank and State Bank of India also ended higher in a range of 1.8 to 3.0 per cent on the BSE.

Among sectors, the Nifty Pharma index ended higher for the fourth straight day, hitting an over six-month high on the National Stock Exchange (NSE). Sun Pharmaceutical Industries, Dr Reddy’s Laboratories, Glenmark Pharmaceuticals, Lupin, Aurobindo Pharma and Cadila Healthcare from the index, were up in the range of 1 per cent to 4 per cent on the NSE.

The money and bond markets are closed today on account of Parsi New Year.

Global Markets

Asian shares won a modest reprieve on Friday after China and the United States agreed to hold their first trade talks since June next week and as the Turkish lira extended gains from its record low earlier this week.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.46 per cent, a day after it hit its lowest level in a year. Japan’s Nikkei advanced 0.5 per cent.

The gains came after a Thursday rebound in US markets, with a string of positive news ranging from strong corporate earnings to reports of a revival in US-China trade talks all boosting investor sentiment.

The meeting is set to take place as the world’s two largest economies are due to slap tariffs on billions of dollars of each other's goods on August 23, 2018, in addition to levies that took effect on July 6, 2018.

The Turkish lira strengthened against the dollar on Friday as investors weighed up a US warning that Turkey should expect more economic sanctions unless it hands over detained American pastor Andrew Brunson.

Economists see GDP rising at 7.5 per cent

Back home, India's economy is expected to grow at a healthy 7.5 per cent in the first quarter (Q1) of 2018-19 (FY19), lower than a seven-quarter high of 7.7 per cent in the fourth quarter (Q4) of 2017-18 (FY18), economists have said.

(with inputs from Reuters)


3:45 PM IST Nifty Pharma index ended around 1% higher. Top gainers: COMPANY LATEST PREV CLOSE GAIN() GAIN(%) CADILA HEALTH. 357.80 340.20 17.60 5.17 LUPIN 879.95 849.75 30.20 3.55 GLENMARK PHARMA. 601.45 583.25 18.20 3.12 AUROBINDO PHARMA 654.55 635.30 19.25 3.03 DIVI'S LAB. 1176.50 1164.40 12.10 1.04

3:42 PM IST Nifty sectoral gainers of the day

3:40 PM IST BSE Sensex: Yes Bank, SBI, ITC, ICICI Bank among top gainers of the day

3:37 PM IST Markets at close The S&P BSE Sensex ended at 37,948, up 284 points while the broader Nifty50 index settled at 11,471, up 86 points.

3:17 PM IST Nifty PSU Bank index gains 3% after falling 7% in past four trading days Shares of public sector undertaking (PSU) banks were in focus with Nifty PSU Bank index gaining 3% on Friday after falling 7% in past four trading days on the National Stock Exchange (NSE). READ MORE

3:03 PM IST Top gainers in Nifty 500: COMPANY PRICE() CHG() CHG(%) H D I L 34.15 3.55 11.60 DR LAL PATHLABS 1057.55 91.15 9.43 KIOCL 175.00 13.45 8.33 EDELWEISS.FIN. 297.40 22.85 8.32 GMR INFRA. 18.90 1.25 7.08 » More on Top Gainers

2:47 PM IST FCI plans to hasten foodgrain sales, may expedite wheat selling in bulk With record inventory, government-owned Food Corporation of India (FCI) wants to expedite foodgrain sales to make warehouse space available for next season’s procurement, as well as to calm the heated market. READ MORE

2:33 PM IST Gold nudges up, but set for biggest weekly fall in 15 months Gold eked out small gains in Asian trade on Friday after declining to a 19-month low in the previous session, but the metal remained on track for its biggest weekly decline since mid-2017.   Spot gold was up 0.1 per cent at $1,175.22 an ounce, while US gold futures were down 0.2 percent at $1,181.30 an ounce. READ MORE

2:20 PM IST Paper stocks extend rally; JK Paper zooms 75% in one month Shares of paper companies were trading higher on the bourses on expectations of a positive outlook for the current July-September quarter. READ MORE

2:04 PM IST Market Check Index Current Pt. Change % Change   S&P BSE SENSEX 37,956.69 +293.13 +0.78   S&P BSE SENSEX 50 12,008.05 +94.10 +0.79   S&P BSE SENSEX Next 50 33,973.62 +344.98 +1.03   S&P BSE 100 11,744.79 +96.08 +0.82   S&P BSE Bharat 22 Index 3,601.63 +30.75 +0.86

1:47 PM IST Top gainers in BSE 500: COMPANY PRICE() CHG() CHG(%) EDELWEISS.FIN. 296.30 21.25 7.73 IL&FS TRANSPORT 35.55 2.55 7.73 H D I L 32.95 2.20 7.15 GMR INFRA. 18.85 1.25 7.10 PNB HOUSING 1348.00 86.25 6.84 » More on Top Gainers

1:29 PM IST EMs on cusp of a bear market; investors cautious amid global headwinds Turkey may have helped buoy the lira, but the rest of the developing world is reeling — with stocks on the verge of a bear market. The MSCI Emerging Markets Index has tumbled almost 20 per cent from a January peak, while a currency measure slipped to the lowest since May 2017. READ MORE

LIVE UPDATES

Nifty Pharma index ended around 1% higher. Top gainers:

COMPANY LATEST PREV CLOSE GAIN() GAIN(%)
CADILA HEALTH. 357.80 340.20 17.60 5.17
LUPIN 879.95 849.75 30.20 3.55
GLENMARK PHARMA. 601.45 583.25 18.20 3.12
AUROBINDO PHARMA 654.55 635.30 19.25 3.03
DIVI'S LAB. 1176.50 1164.40 12.10 1.04

Nifty sectoral gainers of the day


BSE Sensex: Yes Bank, SBI, ITC, ICICI Bank among top gainers of the day


Markets at close

The S&P BSE Sensex ended at 37,948, up 284 points while the broader Nifty50 index settled at 11,471, up 86 points.
Nifty PSU Bank index gains 3% after falling 7% in past four trading days

Shares of public sector undertaking (PSU) banks were in focus with Nifty PSU Bank index gaining 3% on Friday after falling 7% in past four trading days on the National Stock Exchange (NSE). READ MORE

Top gainers in Nifty 500:

COMPANY PRICE() CHG() CHG(%)
H D I L 34.15 3.55 11.60
DR LAL PATHLABS 1057.55 91.15 9.43
KIOCL 175.00 13.45 8.33
EDELWEISS.FIN. 297.40 22.85 8.32
GMR INFRA. 18.90 1.25 7.08
» More on Top Gainers
FCI plans to hasten foodgrain sales, may expedite wheat selling in bulk

With record inventory, government-owned Food Corporation of India (FCI) wants to expedite foodgrain sales to make warehouse space available for next season’s procurement, as well as to calm the heated market. READ MORE

Gold nudges up, but set for biggest weekly fall in 15 months

Gold eked out small gains in Asian trade on Friday after declining to a 19-month low in the previous session, but the metal remained on track for its biggest weekly decline since mid-2017.
 
Spot gold was up 0.1 per cent at $1,175.22 an ounce, while US gold futures were down 0.2 percent at $1,181.30 an ounce. READ MORE

Paper stocks extend rally; JK Paper zooms 75% in one month

Shares of paper companies were trading higher on the bourses on expectations of a positive outlook for the current July-September quarter. READ MORE

Market Check

Index Current Pt. Change % Change
 
S&P BSE SENSEX 37,956.69 +293.13 +0.78
 
S&P BSE SENSEX 50 12,008.05 +94.10 +0.79
 
S&P BSE SENSEX Next 50 33,973.62 +344.98 +1.03
 
S&P BSE 100 11,744.79 +96.08 +0.82
 
S&P BSE Bharat 22 Index 3,601.63 +30.75 +0.86

Top gainers in BSE 500:

COMPANY PRICE() CHG() CHG(%)
EDELWEISS.FIN. 296.30 21.25 7.73
IL&FS TRANSPORT 35.55 2.55 7.73
H D I L 32.95 2.20 7.15
GMR INFRA. 18.85 1.25 7.10
PNB HOUSING 1348.00 86.25 6.84
» More on Top Gainers
EMs on cusp of a bear market; investors cautious amid global headwinds

Turkey may have helped buoy the lira, but the rest of the developing world is reeling — with stocks on the verge of a bear market. The MSCI Emerging Markets Index has tumbled almost 20 per cent from a January peak, while a currency measure slipped to the lowest since May 2017. READ MORE

Strong advertising outlook, launch of channels positives for Sun TV Network

Strong advertising growth, additional subscription revenue, launch of channels and entry into new markets could stem the tide for Sun TV Network, which has been impacted by stiff competition in its core markets. READ MORE

US firms cement their dominance in the top 500 league, Indian tally falls

Despite the growing prominence of emerging markets (EMs) such as India on the world stage, the big-boy club of global markets continues to be dominated by US-based corporations. According to data, 203 of the world’s 500 biggest companies in terms of market capitalisation are from the US. A decade ago, there were only 164 US companies in the list. READ MORE

Ashok Leyland bags order for 300 double-decker buses from Bangladesh

Ashok Leyland has won an order of 300 double-decker buses from Bangladesh Road Transport Corporation (BRTC). READ MORE

Stock Quote:


COMMENT Morgan Stanley on global currencies

We expect JPY to gain as global liquidity conditions tighten, undermining risk markets and pushing volatility higher. We continue to favor JPY-bullish cross-trades. We believe EM will stay under selling pressure. Idiosyncratic risks have led to volatility spikes, and while more bad news seems to be in store, we underscore the importance of liquidity.

Not only has global liquidity tightened, but we also see increasing liquidity redistribution benefiting the US. Cross-border lending statistics have put our focus on Asia, where credit tightening meets highly indebted economies. Our results suggest selling IDR, INR, PHP, and MYR, given these economies' exposures to USD wholesale funding flows, which loo k poised to continue falling.

The corporate logo of financial firm Morgan Stanley is pictured on the company's world headquarters in New York, New York January 20, 2015. REUTERS

RITES hits new high; zooms 70% against issue price

Shares of railways consultancy firm RITES hit a new high of Rs 315 per share on the BSE, rising 10% on the back of heavy volumes. The state-owned firm was trading at its highest level since listing on July 2, 2018. It has rallied 70% against its issue price Rs 185 per share. READ MORE

COMMENT MPC minutes signal a pause, says Kotak Securities report

The minutes seem to have been broadly in line with the August policy statement signaling a pause in the near term, especially given the moderation in the recent inflation readings. Easing growth momentum in 2HFY19 on the back of tighter financial conditions and adverse global growth is expected to begin dragging core inflation lower. Additionally, stable crude oil prices and partial pass-through of MSP on inflation (25-30 bps) seem less of a concern in FY2019. The weekly improvement in sowing pattern and reservoir levels should further keep a lid on food prices.

While the growth-inflation dynamics and the assessment of monetary policy transmission may keep the MPC on hold through rest of FY2019, we remain watchful of the INR depreciation on the back of ongoing EM meltdown in financial assets. Persistence of global risk-off and a consequent runaway depreciation in INR may warrant unconventional measures by the RBI, including further rate hikes.
MUST READ Reforms and growth: GDP to inflation, Vajpayee govt's economic report card

Former prime minister Atal Bihari Vajpayee scripted path-breaking reforms in telecom, road, power, and taxes. Despite sanctions following Pokharan-II in 1998 and the Kargil War in 1999, the government managed to keep economic growth above 6 per cent till 1999-2000. Growth slowed in 2002-03, with drought, but recovered soon CLICK HERE FOR MORE
TOP BSE 500 GAINERS

COMPANY LATEST PREV CLOSE GAIN() GAIN(%) VOLUME
IL&FS TRANSPORT 35.65 33.00 2.65 8.03 80670
H D I L 33.10 30.75 2.35 7.64 3649153
REDINGTON INDIA 99.55 92.90 6.65 7.16 20171
EDELWEISS.FIN. 292.70 275.05 17.65 6.42 278877
H F C L 25.75 24.35 1.40 5.75 1647507

Prabhudas Lilladher on Ashoka Buildcon

The stock is trading at 8.5x FY20E core earnings. We expect EPC segment to deliver Sales and PAT CAGR of 28% and 15%, respectively, over FY18-20E. We believe improving visibility/macro environment, both in Road and T&D sector, should enhance visibility in the EPC segment. Falling interest rates and improving traffic growth should augur well for BOT assets. Maintain 'BUY' with target price of Rs191
HDFC Securities on Ahluwalia Contracts (AHLU)

AHLU envisages further opportunities in the commercial realty segment. Balance sheet remains robust with gross debt of Rs 340mn and a net cash of ~Rs 0.6bn. AHLU may outperform its annual order inflow guidance. We maintain BUY with a SOTP of Rs 489/sh (EPC segment at 476sh (EPC segment at 10x Mar-20E EV/EBITDA, Kota BOT – 1x P/BV).
Market at Noon

Index Current Pt. Change % Change
 
S&P BSE SENSEX 37,960.51 +296.95 +0.79
 
S&P BSE SENSEX 50 12,012.02 +98.07 +0.82
 
S&P BSE SENSEX Next 50 33,936.56 +307.92 +0.92
 
S&P BSE 100 11,746.22 +97.51 +0.84
 
S&P BSE Bharat 22 Index 3,592.40 +21.52 +0.60

(Source: BSE)
Anand Rathi on Cadila Healthcare

On the lower-than-expected revenue in the US and a higher depreciation charge, we trim our FY19 and FY20 estimates: revenue by ~3% each year, EBITDA by 6% each and PAT by 9% each. We maintain a Buy, with a revised price target of Rs 444 (earlier Rs 489), based on 21x FY20e EPS. Risks: Delay in product approvals; regulatory issues on any plant.
Reliance Securities on Sun Pharma

Looking ahead, we expect strong traction in US business to continue led by launch of specialty products along with healthy growth in India business and we upgrade our recommendation on the stock to BUY from HOLD with a revised Target Price of Rs685 (from Rs545 earlier).
Heat Map (Sensex)



Motilal Oswal Securities on Crompton

We like CROMPTON for its strong product portfolio, established brand, market leadership, wide distribution network and a robust RoE/RoCE profile. We maintain
our Buy rating, with a target price of Rs 305 (38x FY20E EPS, in line with Havells)
EMs on cusp of a bear market; investors cautious amid global headwinds
 
Turkey may have helped buoy the lira, but the rest of the developing world is reeling — with stocks on the verge of a bear market.
 
The MSCI Emerging Markets Index has tumbled almost 20 per cent from a January peak, while a currency measure slipped to the lowest since May 2017. South Africa’s rand was battered by a downbeat assessment by Moody's Investors Service, while a surprise rate hike by Indonesia failed to lift the rupiah for long. A rout in Chinese technology shares spiraled into a broad selloff, with the yuan weakening past 6.9 per dollar. The lira climbed as Turkey took its boldest steps to ward off a financial crisis. READ MORE
Nifty Pharma index hits over six-month high; Sun Pharma at 14-month high
 
Shares of pharmaceutical companies in focus with Nifty Pharma index was trading higher for the fourth straight day, hitting an over six-month high on the National Stock Exchange (NSE).
 
Sun Pharmaceutical Industries, Dr Reddy’s Laboratories, Glenmark Pharmaceuticals, Lupin, Aurobindo Pharma and Cadila Healthcare from the index, were up in the range of 1% to 4% on the NSE. READ MORE
Sebi cuts timeline for listing of debt securities to six days from 12
 
Markets regulator Sebi on Thursday drastically cut the timeline for listing of debt securities to six days from 12 at present, in order to make the existing process of issuance of such securities simpler and cost effective.
 
Besides, the Securities and Exchange Board of India (Sebi) has made ASBA (Application Supported by Blocked Amount) mandatory for all investors for making payment, while applying in a public issue of debt securities. READ MORE
Top Nifty50 gainers

COMPANY LATEST PREV CLOSE GAIN() GAIN(%) VOLUME
GRASIM INDS 1030.80 999.45 31.35 3.14 859071
TATA STEEL 581.25 567.55 13.70 2.41 2765211
LUPIN 870.20 849.75 20.45 2.41 1382771
DR REDDY'S LABS 2400.80 2353.45 47.35 2.01 430630
ADANI PORTS 377.70 370.30 7.40 2.00 874069

PNB Housing: Margins will continue to be under pressure even in medium term
 
The stock of PNB Housing Finance (PNB Housing) has declined by over three per cent after the company announced its June quarter results last week. Given the Street’s concerns on profit margins, the stock is likely to remain under pressure.
 
While the company clocked strong growth in loan book (47 per cent year-on-year) and asset quality was also satisfactory (gross bad loans flat at the year-ago level of 0.43 per cent), a net interest margin (NIM) compression, amid lower spread, disappointed investors. READ MORE
ITC hits fresh 52-week high; stock surges 17% in one month
 
Shares of ITC hit a fresh 52-week high of Rs 315, up 2.5% on the BSE in early morning trade, extending gains of the past 4 weeks after the company’s June quarter net profit beat the Street estimates.
 
The stock of fast moving consumer goods (FMCG) company was the largest gainer among the S&P BSE Sensex. It outperformed the market by surging 17% in past one month, as compared to a 4% rise in the benchmark index. READ MORE
Jefferies on Repco

1Q PAT grew 8.9%YoY to Rs609 mn (Ind AS) vs. our Rs 564mn est. (GAAP). Loan growth was muted and spreads fell YoY, but this was partly offset by much lower credit cost under Ind AS. GNPA is back to recent peak. We tweak our estimates. Slow resolution of TN issues, high loan attrition should weigh on loan growth. Spreads may moderate. Asset quality could take longer to stabilize. However, at 2x FY20E BV, downside appears limited. We maintain our Hold
Jefferies on Yatra

We initiate on Yatra with Buy and price target of $6.75. We expect it to benefit from strong air traffic growth in India and low online penetration in hotel booking. Though Yatra is distant No. 2 to Makemytrip, it differentiates by targeting 1) B2E and B2B2C segments and 2) budget hotels in Tier 2/3 cities. We expect revenue growth of 15-23% over FY19-21E and losses to narrow helped by lower marketing expenses. Valuation discount makes risk-reward favorable
Elara Capital on Simplex Infra

Improvement in payment cycle and recovery of receivables is the key thing awaited for the turnaround story to play out. After several years of muted performance, the management has given a bold guidance of strong double digit revenue growth which is planned to be achieved with Rs 17bn of execution in 2Q and thereafter Rs 8bn of execution per month.

We remain cautious and maintain our execution estimates and rating on the stock at Reduce with a revised target price of Rs 392 valuing FY20 earnings at P/E of 16x (unchanged)
PSUs get 3rd lifeline to meet free-float norms, deadline extended by 2 yrs
 
The Securities and Exchange Board of India (Sebi) has thrown another lifeline to public sector undertakings (PSUs) to achieve 25 per cent public shareholding, a key corporate governance requirement, which private sector listed entities had to achieve by June 2013. According to sources, the capital markets regulator has extended the August 21 deadline by another two years.
 
The move comes as a relief to over three dozen PSUs in which the government shareholding is in excess of 75 per cent. READ MORE
Market Check

Index Current Pt. Change % Change
 
S&P BSE SENSEX 37,927.16 +263.60 +0.70
 
S&P BSE SENSEX 50 11,998.15 +84.20 +0.71
 
S&P BSE SENSEX Next 50 33,912.94 +284.30 +0.85
 
S&P BSE 100 11,733.47 +84.76 +0.73
 
S&P BSE Bharat 22 Index 3,601.05 +30.17 +0.84

INTERVIEW OF THE DAY No 2017-like IPO pipeline in second half this year: UBS India's Anuj Kapoor
 
It is unlikely that this year’s equity fundraising tally will surpass that of last year. Anuj Kapoor, head of investment banking, UBS India says that rising global and domestic uncertainties could weigh on equity capital raising in the near-term. Click here to read full interview


Edelweiss on Jain Irrigation

Jain Irrigation (JISL) reported in-line Q1FY19 with revenue jumping 24% YoY to Rs 20.9bn and EBITDA surging 15% to Rs 2.7bn. While interest cost also increased, one-off rise in other income propelled PAT 84% YoY. Key highlights: 1) broad-based growth across all segments, with growth also returning to the agro processing division; 2) project business spurred MIS growth, but  retail segment’s growth was muted; and 3) net debt spiked by ~Rs 5bn YoY due to currency and acquisition impact.

Factoring the higher interest cost, we revise down FY19/20E PAT 5%/8%. Though we retain our confidence in JISL’s EBITDA growth, the spike in debt remains a monitorable. Hence, we revise down FY20E EPS multiple to 12x (from 15x) and target price to Rs 126 (Rs 150 earlier). Maintain ‘BUY’
WEB EXCLUSIVE Investors richer in Modi's 'acche din' than under Vajpayee's 'India shining'

The markets have performed better under the National Democratic Alliance’s (NDA’s) Narendra Modi, as compared to Atal Bihari Vajpayee’s tenure as India’s Prime Minister (PM).
 
The Nifty 50 index (Nifty as it was known then), notched up a gain of 5.7 per cent, while the Sensex lost one per cent on an absolute basis between October 13, 1999 when Vajpaee assumed charge as the PM, till May 19, 2004 when he left office, data shows READ MORE HERE

Narendra Modi, Atal Bihari Vajpayee

MARKET COMMENT Chris Wood of CLSA

Turkey will also be viewed as idiosyncratic. It has certainly been the case that Turkey has long been viewed as a prime candidate for triggering a crisis. The reasons are high dollar borrowing and a habit of running large current account deficits.
 
The key driver of Turkey’s problems of late are political not economic. Turkey, under the recently re-elected President Recep Tayyip Erdogan, is no longer in the Western camp, as was made extraordinarily clear by the Donald’s gratuitously provocative tweet last Friday when he stated that he has authorised a doubling of tariffs on steel and aluminium imports from Turkey.

The choice facing Erdogan is now clear. He can play the orthodox game and raise interest rates aggressively and appoint a new finance minister who is not his son-in-law. Or he can follow the precedent set by Mahathir in Malaysia in 1998 and close the capital account with a view, in Turkey’s case, of obtaining emergency funding from the likes of Russia and China and friends in the Middle East.

The possibility of such a development, in terms of the closure of the capital account or some other form of constraint on convertibility, has grown significantly over the past week given the scale of the Turkish currency’s collapse and the unhelpful reaction from Washington in terms of the threat of Turkey targeted sanctions. Any mooted IMF bailout of Turkey is also likely to have its conditions dictated by America.

Christopher Wood, Managing Director & Equity Strategist, CLSAChristopher Wood, Managing Director & Equity Strategist, CLSA

IDBI Capital on Lemon Tree Hotels

Lemon Tree Hotels reported a net profit of Rs22mn for 1QFY19, down 80.9% QoQ and up from a loss of Rs31mn in 1QFY18. The decline in earnings on QoQ basis was because of: 1) Decline in other income from Rs78mn in 4QFY18 to Rs19mn in 1QFY19. 

However, on YoY basis the company reported positive earnings on account of: 1) Rise in ARR (average revenue per room) from Rs3,373 in 1QFY18 to Rs3,899 in 1QFY19, up 15% YoY. 2) Rise in occupancy rate by 336bps to 76.8% in 1QFY19. Rise in ARR and occupancy rate led RevPar (Revenue Per Available Room) to increase by 19% to Rs2,994.  3) Addition of 678 rooms since 1QFY18. 572 rooms have been added under management contract and 106 rooms have been added under the owned and leased portfolio. We have retained our Buy rating on the stock with a target price of Rs92
Nifty sectoral trend


Top Sensex gainers and losers


Market at open
 
At 9:17 AM, the S&P BSE Sensex was trading at 37,854, down 190 points while the broader Nifty50 was ruling at 11,435, down 50 points.
Markets at pre-open

Index Current Pt. Change % Change
 
S&P BSE SENSEX 37,871.89 +208.33 +0.55
 
S&P BSE SENSEX 50 12,006.83 +92.88 +0.78
 
S&P BSE SENSEX Next 50 33,695.57 +66.93 +0.20
 
S&P BSE 100 11,729.45 +80.74 +0.69
 
S&P BSE Bharat 22 Index 3,591.00 +20.12 +0.56

Commodity outlook by Tradebulls Securities
 
Sell Zinc
Target: 162
Stop loss: 172
 
Zinc had broken its recent swing low of 170.70 made on 16th July. From July till mid- August, it was trading in a range and consolidating. The foundation for the base was nullified after zinc broke its trading range on the downside. Now since it is in oversold territory, it would not be prudent to take a position from current juncture but sell on a rise near 168. Risk-reward ratio justifies taking position near 168. We expect downside to continue till 162 and recommend short position near 168 with a stop loss of 172.
 
Stock ideas by Anand Rathi Research:
 
HINDUSTAN UNILEVER: BUY
TARGET: Rs 1,790
STOP LOSS: Rs 1,715
 
The stock has formed a clear symmetrical triangular pattern on the daily charts and the momentum indicator MACD has also provided a buy crossover. So, we recommend buying this stock.
 
Nifty outlook by Anand Rathi Research:
 
The Index closed in the negative territory in the last trading session and so the wave IV consolidation continues. The Index seems to have completed a third wave up and a retracement of the same seems to have started, hence we recommend selling Nifty for the target of 11,296 with a stop loss of 11,461.
Top trading ideas by Prabhudas Lilladher
 
BUY DLF
CMP: Rs 206.70
TARGET: Rs 240
STOP LOSS: Rs 180
 
The stock has been in consolidation phase at around 185 -190 levels and has now given a breakout above that range and also above the significant 50 DMA moving average to indicate strength and has potential to carry the momentum still further upward in the near future. The bias has been maintained positive and with decent volume activity witnessed, we recommend a buy in this stock for an upside target of 240 keeping a stop loss of 180.
 
Nifty outlook by Prabhudas Lilladher:
 
Nifty continues to oscillate holding the crucial support of 11,370 levels, so unless Nifty gets below 11,350 bias still remains positive for an upward move supported by Bank Nifty, Pharma and IT Index. The support for the day is seen at 37,450/11,320 while resistance is seen at 37,880/11,450. Bank Nifty would have a range of 27,580-28,060. Rupee continues to be at all time low, while crude was stable. Tech and Pharma should continue to show strength.
Today's picks: From Sun Pharma to Vedanta, hot stocks to watch on Friday
 
Sun Pharma
Current price: Rs 620
Target price: Rs 630
 
Keep a stop at Rs 615 and go long. Add to the position between Rs 625 and Rs 628. Book profits at Rs 630.
 
Vedanta
Current price: Rs 209
Target price: Rs 205
 
Keep a stop at Rs 211 and go short. Add to the position between Rs 206 and Rs 207. Book profits at Rs 205.

Click here for more
MPC minutes of RBI: Inflation fears, driven by oil prices, led to rate hike
 
Risk of inflationary pressures, triggered by rising crude oil prices, drove five-member of the monetary policy committee (MPC) in its August review to favour a hike in policy rate for the second time in a row.
 
The MPC members raised concerns about the risk to the inflation target due to the impact from minimum support price (MSP) rise for crops, elevated crude prices and other factors such as increase in house rent allowance and monsoon conditions. Positive growth outlook and indications of output gap closing were also key factors for the rate hike vote. READ MORE
SGX Nifty
 
Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 10 points or 0.09 per cent. Nifty futures were trading around 11,432- level on the Singaporean Exchange.
Oil prices fall amid fears over global economic growth
 
Oil prices fell on Friday, with US crude heading for a seventh weekly decline amid increasing concerns about slowing global economic growth that could hit demand for petroleum products. Brent crude oil futures LCOc1 were down 5 cents at $71.38 a barrel. US West Texas Intermediate (WTI) crude futures CLc1 dropped 4 cents to $65.42 a barrel.
 
Brent is heading for a 2 per cent decline this week, a third consecutive weekly drop. WTI is on track for a seventh week of losses, with a fall of more than 3 per cent.
Chinese official to visit US to resume talks to end trade war
 
Amid a stalemate in the trade war with the US, China will send a top official to Washington this month to resume the high-level dialogue to resolve the deadlock over President Donald Trump's demand to drastically reduce the $375 billion trade deficit.
 
Wang Shouwen, vice-minister of commerce, will lead a delegation to the US at the end of August to discuss bilateral trade issues with a team led by David Malpass, secretary of treasury for international affairs, the Chinese Commerce Ministry said in a statement yesterday. The initiative to resume talks followed a spate of tit-for-tat tariffs slapped by both the counties.
Asian shares gain on US-China trade talks
 
Asian shares won a modest reprieve on Friday after China and the United States agreed to hold their first trade talks since June next week and as the Turkish lira extended gains from its record low earlier this week.
 
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2 per cent in early trade, a day after it hit its lowest level in a year and Japan’s Nikkei gained 0.5 per cent.
Wall Street rallies on solid earnings, US-China trade talks
 
US stocks rebounded on Thursday with the Dow posting its biggest percentage gain in over four months, as positive earnings and waning trade jitters buoyed investor confidence. The Dow Jones Industrial Average rose 396.32 points, or 1.58 per cent, to 25,558.73, the S&P 500 gained 22.32 points, or 0.79 per cent, to 2,840.69 and the Nasdaq Composite added 32.41 points, or 0.42 per cent, to 7,806.52.
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