Nifty 8607/Sensex 27902/Bank Nifty 19217
33 Advances /18 Declines/ 0 Unchanged
Most Active Stocks: TATA Motors,SBI,Reliance
“Nifty ends above 8600, Sensex up 120pts; Tata Motors, RIL gain”
Tata Motors, Reliance, Hero MotoCorp, Adani Ports and ICICI Bank were gainers while Wipro, Lupin, HDFC Bank, Bharti Airtel and Asian Paints were losers in the Sensex.
Nifty 50:Nifty 50 showed a highly volatile session for the day as bull and bears were undecided to take nifty in either direction as immediate support of 8580 was sustained again and as 8600 was also hold and hence we saw nifty test its immediate resistance of 8660 and this has been the range in which nifty has been trading in consolidation mode. Nifty 50 opened weak with gap down at 8584 and from there made low of 8544 but showed resilience to make a strong pullback to make high of 8622 before closing the highly volatile session at 8607 with gain of 35 points or increase of 0.41% to the index.
Company Result Summary & Analysis:
IOC Q1 net jumps 390% to Rs 8269 cr; GRMs at $9.98/bbl:
*IOC has posted better-than-expected net profit at Rs 8269 crore in June quarter up by a whopping 390 percent from Rs 1685.3 crore in last quarter. Total income also rose to Rs 1,07,200.7 crore against Rs 98,704.7 crore on sequential basis.
TATA Motors Ltd:
*With a buy rating, CLSA expects Tata Motors to see a strong rebound in JLR’s margins in balance FY17 and FY18 driven by FX loss contraction, benefits of the post-Brexit GBP depreciation, operating leverage and platform consolidation:
*Forex losses that Tata Motors incurred in June quarter is troubling analysts though most feel that the auto major will weather the turbulence. Tata’s Q1 results were dragged down by forex losses at Jaguar Land Rover (JLR) even as India business continued to improve.
DLF Q1 net seen up 19% at Rs 144 cr, sales slowdown likely:
*In Q1 its EBITDA is seen up 5 percent at Rs 870 crore from Rs 828 crore while its operating profit margin (OPM) may stand at 38.9 percent against 37.1 percent year-on-year.
*DLF is likely to post another weak quarter due to slowdown in sales. According to CNBC-TV18 poll, its net profit may see growth of 19 percent at Rs 144 crore in April-June quarter from Rs 121 crore in corresponding quarter last fiscal. During the quarter, its revenue is expected to be flat at Rs 2240 crore against Rs 2231 crore on annual basis.
Engineering India Ltd:
*EIL reported much better than expected set of numbers on the back of sharp improvement in operating margins:
While revenues declined by 12.7% driven by 56.1% dip in turnkey segment's revenue, operating margins improved by 1263 bps YoY to 21.4% driven by shift in sales mix to high margin consultancy segment and partly owing to provision write back on one of the LSTK project which EIL had provided for during 4QFY16. Order inflows in the last quarter surged by 4.2x to INR 20.5 bn, resulting in 1.5x growth in order backlog to INR 54.7 bn (3.8x book to bill). We continue to retain our BUY rating with a revised target of INR 298 on the stock.
PNC Infratech (PNCINF):
* PNC Infratech’s (PNC) topline grew 18.6% YoY to | 515.0 crore (our expectation: | 500.8 crore) led by better execution.
* EBITDA margin declined 81 bps YoY to 13% (vs. our estimate: 13.2%) .
* PAT grew 2.5x YoY to | 64.0 crore (vs. our estimate: | 39.4 crore) on account of higher other income (| 17.4 crore in Q1FY17 vs. | 1.9 crore Q1FY16), lower interest expenses (| 2.2 crore in Q1FY17 vs. | 10.3 crore in Q1FY16) and lower effective tax rate (8.9% in Q1FY17 vs. 34.5% in Q1FY16 due to MAT credit entitlement of | 8.2 crore).
Indraprastha Gas:
*Accelerated volume growth to continue: MNGL expects volume growth of over 15% CAGR through FY20E. The company expects CNG sales volume of 0.55mmscmd in FY20 (0.35 in FY16) led by demand from private vehicles and likely introduction of 500 new CNG buses in FY17E (1300 buses currently on CNG out of total 2,000). Also, improving pipeline connectivity will help MNGL grow industrial and commercial demand to 0.25mmscmd in FY20 (0.14 in FY16). MNGL is positive about commercial demand prospects along with opportunities from the defence industry.
Allahabad Bank:
*ALB reported disappointing set of numbers with ~25% QoQ increase in GNPA led by 13% annualized slippages of INR 50.87bn. NII declined by 12.22% YoY to INR 13.93bn on back of 3.15% growth in advances and 50bps decline in NIM. Decline in NIM was due to interest reversal on back of higher slippages. PPOP declined by 22% YoY as there was write back of excess wage provisioning last year. CI ratio improved 196bps QoQ to 50.28%. PCR declined by 219bps to 46%.
HDFC Bank Ltd:
* HDFC Bank has consistently maintained healthy performance across all the parameters despite slowdown in the economy.
* Net interest income (NII) grew 22% YoY in Q1FY17 led by 23% YoY rise in advances coupled with stable net interest margin (NIM) of 4.4%.
* Asset quality remained broadly stable with Gross non performing asset (GNPA) of 1.0% and Net NPA (NNPA) of 0.3%.
*We expect NII and net profit to grow at a healthy CAGR of 20% and 19%, respectively over FY16-18E supported by 19% CAGR growth in advances over the same period.
* HDFC Bank is the best placed among peers given its higher than system credit growth with best in-class asset quality and superior return ratios. We assign BUY rating on the stock with target price of Rs1,387 based on 3.7x FY18E P/ABV.
Our Call To Buy Hind Zinc around 229--228 proven great as it flared and made high of 234.30 before settling at 229.15 on closing. We booked part profit around 234.
Hope you all enjoyed in Reliance Infra and other recommended stocks too.
We Minted Money even in Volatile market. Is there any one providing fruitful calls with all technical levels……….
“Hope you all Minted money” Just trade with level only.
Now what next??
Nifty futures is showing immediate resistance at 8680. If this level is positively breached and sustained then next resistance around 8730--8770.
It has support at 8600--8580. If this level is negatively breached and not sustained then we may see next support building around 8520—8450.
Today's Top Pick
Yesterday we recommended buying in Hindalco above 157 with stop loss of 154. If made a high of 159.
Now what to expect???
It looks positive today above 160. Once break and sustain above 160 for 10---15 minutes will take to 163---164.50+++ mark in days to come.
Support at 157---154.
