Market Mantra
Flat start for Sensex, Nifty on eve of F&O expiry
The market saw a fantastic finish on Tuesday with stocks racing to the finish line with added acceleration. Interest rate sensitives like banking, auto and realty stocks led the rally followed by capital goods, IT and utilities stocks. For now Moody's has warned over the bad loan situation saying rising credit profile of corporate India may pose a rating risk to the country. Meanwhile, reports stated that the major rating agencies are scheduled to meet the Finance Ministry in the coming months. The street hopes some upgrades happen.
The opening may see some follow up buying initially. The Nifty needs to sustain above 7978 for another confident upmove. Asian markets are flat for now. US stock indices finished mixed on Tuesday, with the Dow and the S&P 500 posting modest gains while the Nasdaq ended lower ahead of Apple's earnings. Investors on Wall Street remained jittery before a spate of technology sector earnings and an updated policy statement from the Federal Reserve on Wednesday.
Trading ideas (Time period: 1-3 days)
SPARC (BUY, above Rs304, Target Rs318, SL Rs297): It has given a breakout after going through base building pattern. For last seven weeks, stock was moving in a narrow range moving sideways. This movement eventually resulted in a breakout in yesterday's trade after 4% move backed by impressive volumes. Moreover, on broader charts, the stock has given a breakout from a triangle pattern at the bottom, suggesting reversal. (Duration 4 days)
Derivative strategies (Time period: Till expiry)
² Buy Put JSWSteel 1300 May below Rs20 with SL of Rs10 for target of Rs50, 60
Lot size: 600 Remarks: Net maximum profit of Rs18,000 and net maximum loss of Rs6,000 (duration 20 days)
Corporate Snippets
² In the first disinvestment of current fiscal, the government will sell 11.36% equity shares in NHPC Ltd at Rs21.75 a piece to raise about Rs27bn. (BS)
² The board of directors of Bharti Infratel Ltd approved a share buyback for Rs20bn. (BS)
² Bharat Forge said that aircraft maker Boeing has awarded a contract to the firm for supply of titanium forgings for Boeing 777X. (BS)
² Glenmark Pharmaceuticals has received tentative nod from the US health regulator for generic version of oral contraceptive tablets Lo Loestrin Fe. (BS)
² As many as 701 accounts with bad loans exceeding Rs1bn owed public sector banks (PSBs) Rs1.63tn at the end of December, with State Bank of India accounting for the biggest chunk. (BS)
² DCB Bank reduced both base rate and the marginal cost of funds-based lending rate (MCLR), a move which will lower EMIs for its borrowers. (BS)
² Pidilite Industries, has approved execution of definitive agreements with Industria Chimica Adriatica Spa (ICA), a wood finish manufacturer based in Italy. (BL)
² Aurobindo Pharma has received final approval from the US health regulator to manufacture and market generic version of blood pressure treatment drugs Amlodipine and Valsartan tablets. (BL)
² Linde India Ltd has commissioned its second air separator unit at Kalinganagar in Odisha. Linde, under a long-term gas supply contract with Tata Steel Ltd at Kalinagar plant, has set up two air separation units with the total capacity of 2,400t a day. (BL)
Economy snippets
² The total telephone subscriber base in the country rose marginally in February to 1051.8mn on the back of growth in wireless users even as wireline base continues to decline. (BS)
² Implementation of new pay scales recommended by the 7th Pay Commission is estimated to put an additional burden of Rs1.02tn, or 0.7% of GDP, on the exchequer in 2016-17. (BS)
² The Environment Ministry accorded 349 environmental clearances in the mining sector from April 1, 2014 to March 31, 2016. (ET)
² The government owes more than Rs430bn to the fertiliser industry on account of subsidy. (ET)
² Subsidy on petroleum products has come down by nearly 29% in 2015-16, marking a saving of Rs542bn from the year-ago period on the back of low crude prices and market reforms. (ET)
² The National Pharmaceutical Pricing Authority (NPPA) has issued notices to 263 firms that were found overcharging during 2015-16. (ET)
² Foreign direct investment (FDI) in agriculture sector increased toRs5.53bn during the first 11 months of 2015-16. (ET)
Result table
| Rs m | Revenue | YoY % | PAT | YoY % |
| Agro Tech Foods | 1,975 | 6.6 | 72 | (50.6) |
| Axis Bank | 45,526 | 19.8 | 21,543 | (1.2) |
| Bharti Infratel | 33,413 | 7.2 | 6,617 | 18.7 |
| IDFC Bank | 18,155 | NA | 1,651 | NA |
| Maruti Suzuki | 154,269 | 10.6 | 11,336 | (11.7) |
| Rallis India | 3,570 | 11.1 | 323 | 51.3 |
Warm Regards,
Amar Ambani
IIFL
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