Nifty 8709 /Sensex 28179/ Bank Nifty 19808
24 Advances / 27 Declines/ 0 Unchanged
“Nifty ends above 8700, Sensex up 102 pts; ONGC, ICICI Bank lead”
Equity benchmarks extended gains on Monday with the Nifty closing above 8700 level for the first time since October 6, supported by ICICI Bank, Tata Motors and ONGC. Positive global cues also lifted the market sentiment.
After a consolidation, the 30-share BSE Sensex was up 101.90 points at 28179.08 and the 50-share NSE Nifty gained 15.90 points at 8708.95. The BSE Midcap underperformed benchmarks despite positive breadth. About 1679 shares advanced against 1168 declining shares on the exchange.
Experts continue to expect the market to be in range of 8500-8900 till the end of December as US elections and Federal Reserve's December meeting will add to volatility.
On the global front, European stocks were higher with investors focused on fresh economic data and corporate earnings. France's CAC and Germany's DAX gained 0.8 percent each at the time of writing this article. Asia ended mixed with Japan's Nikkei rising 0.3 percent while China's Shanghai and Hong Kong's Hang Seng advanced 1 percent each.
State-run oil & gas explorer ONGC surged 4.6 percent as the board of directors will consider a proposal for declaration of bonus issue, if any, in its meeting, scheduled on October 27.
*PNB Housing Finance Ltd IPO (PNB Housing Finance IPO) Detail
Incorporated in 1988, PNB Housing Finance Ltd, a subsidiary of Punjab National Bank offers housing loans to individuals and corporate bodies for the construction, purchase, repair, and upgradation of houses, as well as loans for commercial space, purchase of residential plots, loan against properties, and loans for real estate developers.
Competitive Strengths
1. Fifth largest HFC in India and the fastest growing HFC among the leading HFCs in India
2. Strong distribution network with deep penetration of key Indian urban centres
3. Scalable operating model and centralised and streamlined operational structure
4. Access to diversified and cost-effective funding sources
5. Diversified product offering with specific focus on self-employed customers
6. Customer-centric approach resulting in strong brand recognition
7. Prudent credit underwriting, monitoring and collection processes
8. Managed by experienced and qualified professionals with strong industry expertise
9. Support from their parent and promoter PNB
Company Promoters
The Promoter of the Company is Punjab National Bank (“PNB”). PNB (directly and through its nominees) holds 64,730,700 Equity Shares which constitutes 51.00%, of the Company’s pre-Issue paid-up and subscribed Equity Share capital.
Objects of the Issue
Company intends to utilize the Net Proceeds towards the following:
1. Augment the capital base to meet their future capital requirements;
2. General corporate purpose; and
3. Enhance visibility and brand name among existing and potential customers.
Issue Detail
»» Issue Open: Oct 25, 2016 - Oct 27, 2016
»» Issue Type: Book Built Issue IPO
»» Issue Size: [.] Equity Shares of Rs 10 aggregating up to Rs 3,000.00 Cr
»» Face Value: Rs 10 Per Equity Share
»» Issue Price: Rs. 750 - Rs. 775 Per Equity Share
»» Market Lot: 19 Shares
»» Minimum Order Quantity: 19 Shares
»» Listing At: BSE, NSE
BUY or NOT!!
Keep following our team for more analysis during market hour……
Our recommendations
Our Call To buy Coal India (FUT) around 316—315 proved great as it flared and made high of 322.95 before settling at 321.80 on closing. We Booked full profit at 322.
[Profit of Rs 11900 on 1 Lot]
Our Call To Buy BPCL (Fut) around Above 675 proved great as it flared and made high of 987.45 before settling at 686.80 on closing. We Booked part profit at 686.70
[Profit of Rs 14040 on 1 Lot]
*Key Results Today
-Zee Entertain
-Polaris Consult
-Deep Industries
-Delta Corp
-Kotak Mahindra
-Dr Reddys Labs
-CG Consumer
-Arvind
-Adani Ports
-HDFC Bank
-ICICI Prudential
-IDBI Bank
-IDFC Bank
-M&M Financial
-PI Industries
-Shriram Transport
-L&T Finance
Kotak Mahindra Result 25th October 2016
Expectation : Kotak Bank Q2 profit seen up 36%, loan growth may be 16-17%
-Kotak Mahindra Bank's second quarter (July-September) standalone profit is seen rising 36.5 percent year-on-year to Rs 777.5 crore, according to consensus estimation.
-Net interest income, the difference between interest earned and interest expended, may grow 17.4 percent to Rs 1,970.5 crore in the quarter ended September 2016.
-Standalone earnings comprise of only bank while consolidated numbers include bank as well as brokerage firm, mutual fund, insurance business etc.
-Key things to watch out for would be net interest margin, loan growth and asset quality.
-If net interest margin in Q2 comes above 4.2 percent (in Q1 it was at 4.4 percent) and gross non-performing assets (NPA) below 2.6 percent ((Q1 was at 2.5 percent) then that will be positive, analysts say.
-Loan growth may be at a moderate rate of 16-17 percent, similar to Q1 (16.55 percent).
-Consolidated profit during July-September quarter may increase 25.7 percent year-on-year to Rs 1,184.3 crore and net interest income is seen rising 17.9 percent to Rs 2,686.3 crore compared with year-ago period.
*Technical levels of Kotak Mahindra Bank
-Kotak Mahindra Bank has immediate resistance at 800. If this resistance is breached and sustained positively then next resistance at 825—840. Above 840... stock will be positionally strong and may make a case for upside rally on strong quarterly results.
Support is intact at 780. If this immediate support is not sustained and breached negatively then Lower supports at 750—750 mark
Now what to expect next?
Nifty and Bank Nifty future levels
Nifty has immediate support at 8680 and resistance is at 8750.
A move and sustain below 8680 will take to 8650—8620 and then to 8550 mark else it could test it's resistance level of 8750 again.
Break and sustain above 8750 will take to its next hurdle at 8820—8850.
On the other hand, Bank Nifty has immediate support at 19600 and hurdle is intact at 20000.
Break and sustain below 19600 can take Bank Nifty to 19250—18900 else could test it resistance level of 20000 again.
Trade with levels only
Today's Top Pick
Yesterday we have seen sharp downside fall in CEAT. Still looks weak and on rise will sell. Sell CEAT on rise around 1280---1290 with stop loss above 1325.
Target looks 1220---1195
