Today's Stock,Equity Market News-Sensex @ fresh record high! 10 investment ideas that can return up to 38% in 1 year

The S&P BSE Sensex hit a fresh record high of 31,332.56 while Nifty recorded a fresh lifetime high of 9,673.50 on Friday. The Indian market has already gained over 17 percent so far in the year 2017.

Global brokerage firms such as Citigroup remains bullish on India markets, although with the slightly cautious stance.

Citi India has upped the Sensex target for FY18 to 32,200. Explaining this upgrade, Surendra Goyal, Director and Head of India Equity Research at Citi Research said that Q4 FY17 earnings have come in slightly ahead of estimates, so this change in the target is more of a roll forward.

He is overweight on healthcare, especially in hospitals and midcap pharmaceutical companies. His pecking order for financials is private banks, NBFCs and then public sector banks.

“We are positive on financials in general, bigger overweights are still in the private sector banking, we have buy on a lot of non-banking financial companies (NBFCs) and selective on public sector banks”, he further mentioned.

However, BofA-ML raised its cautious stance on Indian market in the short term. The market is expensive and the breadth of re-rating is extraordinary, Sanjay Mookim of Bank of America Merrill Lynch said in an interview with CNBC-TV18.

He said the market is expensive and the breadth of re-rating is extraordinary.

There is a strong chance the current valuations driven rally turns, Mookim said, adding the brokerage house stayed cautious with a Sensex December 2017 target of 30,000.

It looks like benchmark indices are likely to trade in a range but there will be stock specific action.

We have collated a list of top 10 stocks recommended by different brokerage firms such as CLSA, JPMorgan and Macquarie in separate notes to their clients in separate notes to their clients for an investment period of 1 year:

Maruti Suzuki: BUY| Target Rs 7,400| Upside 4%

Deutsche Bank maintains a buy rating on Maruti Suzuki but raised its 12-months target price to Rs 7400 from Rs 7000 earlier.

Maruti’s overall volumes including both domestic and exports came at 136,534 units, up over 11 percent on a YoY basis. The domestic volumes were at 130,676 units.

Cars grew at 18 percent on a YoY basis while SUV segment grew by 66 percent YoY. However, on a YTD basis, market-share for Maruti is at 51 percent which is higher than FY17 market share of 50 percent.

“Maruti continues to be in a sweet spot from a demand perspective as the products launched in the past 2 years continue to have a waiting period. In addition, this year the company is likely to launch the all-new versions of two of its most successful models (Swift & Dzire),” said Deutsche Bank.

Astral Poly: BUY| Target Rs 685| Upside 13%

CLSA maintains a buy rating on Astral Poly with a 12-months target price of Rs 685. It is one of the top picks in CLSA’s midcap portfolio. Astral reported strong EBITDA/net profit growth of 38%/51% on a year-on-year (YoY) basis in 4QFY17.

The EBITDA margin expanded 286bps YoY led by backwards integration benefits in pipes and operating leverage benefits in adhesives.

“We believe the competitive advantage of manufacturing its own CPVC compound and scale up in the adhesives business will lead to a robust 33 percent earnings per share (EPS) CAGR over FY17-19,” said the CLSA note.

Max Financial: BUY| Target Rs 700| Upside 13%

CLSA maintains a buy recommendation on Max Financial but raised its 12-month target price to Rs 700 from Rs 680 earlier. FY17 was a good year for Max Life Insurance with 27 percent growth in premiums, healthy value of new business (VNB) margins of 18 percent and return on enterprise value (ROEV) of 20 percent.

Demonetisation helped premium growth and better product mix as well as persistency ratio aided margins. As per management, a tie-up with Axis Bank (58% of premium) will stay until 2021 and management is committed to consummate the merger with HDFC Life; clarity on regulatory approvals will be key.

Prestige Estates: BUY| Target 318| Upside 28%

CLSA maintains a buy rating on Prestige Estates with a 12-months target price of Rs 318. The company recorded 52 percent QoQ improvement in pre-sales and 22 percent QoQ growth in customer collections show that it has recovered from the demonetisation lows.

After sales missing targets for two consecutive years, declining 25 percent on a YoY basis in FY17, management has guided for over 40 percent growth in FY18.

“While presales growth may run the risk of new launch revivals, we are much more sanguine on the lease income growth target of 20% YoY, despite recent job slowdown worries,” said the CLSA note.

Apollo Hospitals (AHEL): Overweight| Target Rs1537| Upside 23%

Morgan Stanley maintains an overweight rating on Apollo Hospitals with a 12-month target price of Rs1537. Apollo Hospitals targets 7 percent volume growth and 4-5 percent improvement in average revenue per occupied bed (ARPOB) (pricing and case mix), which together should translate into 12 percent rise in health-care services revenue (55% of the total sales).

“We expect SAP (stand-alone pharmacies; 45% of overall sales) to grow faster driven by new stores, volumes and value. AHEL is planning to take price increases in line with inflation (4-5%) across its network in F2Q18,” said the note.

Fortis Healthcare: Outperform| Target Rs270| Upside 38%

Macquarie maintains an overweight rating on Fortis Healthcare with a 12-month target price of Rs270 even though the March quarter results were marginally lower than Morgan Stanley’s estimates.

The company remains buoyant about its FY18 growth and margin outlook, with the situation having largely normalised by now. With improving efficiencies in FEHI and SRL, FORH is well poised to deliver profitable growth.

“We think current levels provide an attractive entry opportunity with a 12-month view on the name. We believe a demerger and separate listing of SRL could help unlock significant value for Fortis shareholders,” said the Macquarie note.

Hindalco Industries: Outperform| Target Rs250| Upside 27%

Macquarie maintains an Outperform rating on Hindalco Industries with a 12-month target price of Rs250.

Management has maintained its low CapEx focus with FY18E CapEx guidance of Rs10bn. With $500mn QIP in 4Q17 and free cash generation, Hindalco has reduced its net debt by 20 percent on a YoY basis in FY17. The management remains focused on deleveraging and plans to spend only towards only low capital intensity projects.

“Our commodity team expects aluminium prices to remain strong and we forecast mid-teens FCF yield to further strengthen the balance sheet,” said the Macquarie report.

Mahindra & Mahindra (M&M): Overweight| Target Rs 1600| Upside 12%

JPMorgan maintains an Overweight rating on M&M with a 12-month target price of Rs 1,600. M&M’s farm equipment market had a good year with Revenues/EBIT growing 23%/31%, respectively.

Market share at 42.7 percent and margins at 17 percent are at multi-year high levels. F17 growth was aided by lower base over F16/15 and pent up demand.

New product introductions/better distribution helped market share improvement. Jivo range of tractors targeting horticulture application has just been launched. “For F18 as well the company hopes that the industry will deliver double-digit volume growth aided by a normal monsoon,” said the JPMorgan report.

Aurobindo Pharma: Overweight| Target Rs 800| Upside 35%

JPMorgan maintains an Overweight rating on Aurobindo Pharma with a 12-months target price of Rs 800. Europe sales were muted in the quarter (flat on constant currency) but continued to improve profitability.

However, Aurobindo remains confident of improving growth to 5-8 percent in the existing business aided by new launches and increasing supplies from the newly commissioned facility for Europe (transferred 69 products to India and commissioning of Unit 15 in Mar). This should be augmented by the recently concluded Generis acquisition (around 70 million euro annually).

“Gross margin expansion in an existing business (from production in India), integration of Generis (~20+% margin) and expected synergies from the deal should improve profitability,” said the report.

Britannia Industries: BUY| Target Rs 3,950| Upside 8%

Citigroup maintains a buy rating on Britannia Industries but raised its 12-month target price to Rs 3,950 from Rs3700 earlier. Britannia continues to execute, a) distribution/penetration strategies, b) product initiatives, and, c) cost management drive which ensures it to deliver outsized growth in a tough market.

The near-term volatility post demonetisation and GST transition aside, it remains one of the best plays in India's packaged foods market. “We estimate 11% / 18% revenue / EPS CAGR over FY17-19E. The management expects the market to pick up in next 3-6 months with which competitive intensity could also ease,” said the Citi report.

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Use intraday day dips to buy; Top 5 stocks which can give up to 12% return can in short term

Action post the strong 25th and 26th May rally has been lacklustre (Yet again in Thursday’s trade, Nifty formed a narrow trading range of just 45 points, unable to build on previous week’s swashbuckling move).

In Wednesday’s trade, it hit a new high of 9,650 but thereafter lacked the momentum to sustain at the top. On the downside, 180 degrees from the recent low of 9342 is placed around 9530. The same also coincides with the earlier peak (seen on 17th May 2017), acting as immediate support.

The Nifty midcap 100 index is back in focus as it rallied 0.6% in Thursday’s trade. Post a consolidation at the bottom, around the support of four-digit gann number 1702(0), the midcap index has staged a breakout which indicates more upside in the near term for the broader markets.

As the index hovers around the multiple supply points between 9600-9640, sector rotation is likely to continue. Traders are advised to use intraday dips around the support levels as a buying opportunity.

With Nifty unable to register a close above the resistance of 9640, chasing the momentum at the top won’t be the ideal approach.

Here is a list of top five stocks which can give up to 12% percent return in short term:

DCB Bank: BUY| Target Rs 225| Stop Loss 194| Return 12%

DCB Bank has been consolidating at the top after a strong rally from January to May 2017. From last one month, it has been moving sideways between Rs183 and Rs200. However, in recent phase of consolidation, the stock continues to find support around its 35-DMA.

On several occasions, it found support at the above mentioned critical moving average. In fact, the same is acting as a strong support since January 2017.

Moreover, it continues to trade above the three-digit gann number of 169, implying strength in the recent sideways phase. Since it is an up trending stock, traders should always use any phase of consolidation and also breakout from the same to build a long position.

A confirmation of a move above Rs202 would result in an upside breakout and the stock could attempt Rs225 in the medium term. Based on above rationales, we recommend a buy on DCB Bank above Rs202 with a stop loss of Rs194 and a target of Rs225.

Karnataka Bank: BUY| Target Rs196| Stop Loss 172| Return 10%

After failing to build on the momentum seen during the start of the previous month, it finally staged a breakout on the upside on Thursday. It is showing the trait of a stock which is in a strong uptrend since November 2016.

In the month of May, it went through a phase of correction after it failed to sustain above gann number of 169 and declined towards Rs154.

It took support at its 35-DMA and staged a pullback and in the process broke out above the previous peak of Rs176. Fresh breakout was seen in Thursday’s trade, suggesting resumption of the ongoing uptrend.

Up trending stocks like Karnataka Bank tend to find support at declines and also tend to recover sharply. Keeping in mind above-mentioned parameters, we recommend a buy on Karnataka Bank above Rs179 with a stop loss of Rs172 and a target of Rs196.

Colgate-Palmolive: BUY| Target Rs 1130| Stop Loss 1010| Return 9%

It is currently going through a phase of consolidation at the top of its rally. It is displaying characteristic of a stock which is in a strong uptrend. It is moving higher along with the support of its 13-WEMA since March 2017, wherein every pullback towards this critical moving average has resulted into buying opportunity.

Since April 2017, the sideways consolidation at the top of its trend can be termed as bullish consolidation. The outcome of such sideways movement is dealt positively during an uptrend.

Moreover, it continues to trade above the gann number of 961. Sustenance above the same for last one month suggests that the stock has moved into a new orbit.

However, a fresh breakout from the recent sideways activity above Rs1,045 would provide the much ammunition for the stock to ascend higher. Based on above analysis, we recommend a buy on Colgate-Palmolive above Rs1,045 with a stop loss of Rs1,010 and a target of Rs1,130.

Voltas: BUY| Target Rs 550| Stop Loss Rs 492| Return 8%

With a breakout from a pennant pattern on the daily chart, Voltas is likely to replicate the movement it had in the last week of May 2017. It rallied sharply from low of Rs403 (support of its 35-DMA) to a high of Rs502 before going into a phase of consolidation, which led to a formation of the pennant.

This pattern is normally found in an uptrend. A descending trend line extended from the peak of Rs502 has been pierced on the upside in this week’s trade, thus putting an end to the short-term downtrend. Also in the process, the stock regained ground above the midpoint of current gann channel.

Thursday’s move of 5 percent suggests the beginning of the previous uptrend. We expect the stock to witness follow-up buying and build on recent momentum. Buy Voltas above Rs509 with a stop loss of Rs492 and a target of Rs550.

Cholamandalam Finance: BUY| Target Rs1150| Stop Loss Rs 1010| Return 10%

The recent corrective phase in the counter came to an end around the start of the current gann channel. The same also coincides with the support of rising trendline which is in place since December 2016.

Moreover, on the daily chart, the stock has made a bullish ABCD pattern as it took support at the 161.8% extended move of the last leg. In Thursday’s session, the stock also attempted a breakout from the downward sloping trendline resistance.

A move above Rs1,049 would result in an end of recent consolidation phase at the bottom of last two weeks. An early confirmation is seen with regards to breakout on the daily RSI. Price confirmation is awaited on the charts. Traders are advised to initiate buy on a move above Rs1,049 with a stop loss of Rs1,010 for a target of Rs1,150.

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Daily Nifty News Letter

Outlook Of Nifty/bank nifty today Nifty Outlook:   The Indian economy grew at 7.1 percent in 2016-17, the government said in new estimates on Wednesday, identical to the expansion projected in February, but slower than the previous year’s 8 percent growth. A 6.1 percent growth in January-March quarter, however, indicated that the economy is still smarting under the demonetisation shock that the sudden flush out of high-value notes and restricted cash access had caused on household spending and corporate investment. India also lost its status of fastest growing major economy, slipping sharply behind China’s 6.9 percent growth in January-March 2017 quarter. Bank Nifty Outlook:   The Finance Minister said that the government is in the final stage of implementation of the Goods and Services Tax (GST). Jaitley said that implementation of the GST will add to the economic growth of the country and reiterated that the GST Council would stick to the rollout date of July 1. Rates of 90 percent of the goods and services under the new indirect tax regime, have already been finalised. Regarding requests from the various sectors towards a change in the proposed GST, he said that using media propaganda for getting the rates varied will not make any significant impact. Nifty Trends    R1 9640 R2 9700 S1 9570 S2 9500 Technical Outlook: Top Gainers ADANIPORTS 350.50 INFRATEL 377.00 HINDUNILVR 1,094.55 TECHM 398.50 BOSCHLTD 23,812.10 Top Losers IOC 413.65 VEDL 231.10 ICICIBANK 319.90 HINDALCO 197.70 BHARTIARTL 366.05 To Get Free Trial Missed call @8817002233  Mail Us - starindiamarket@gmail.com visit - http://www.starindiaresearch.com/freetrail.php

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Top 4 stocks which could give up to 21% return in the next 6 months

The Nifty is seen consolidating in a narrow range over the last three sessions while digesting strong gains amassed in the previous week. The current consolidation has occurred above the breakout area of 9,550 that had acted as a crucial hurdle in the previous week.

Structurally, the index has posted a faster retracement of its last falling segment as the five-session decline (9,532 to 9,341) was completely overhauled in just two trading sessions.

We believe faster retracement of the last falling segment highlights robust price structure and opens further positive options for extension of current up move towards 9,750 regions in the short-term.

The upper band of rising channel encompassing the up move since February 2017 and price wise equality with last rising segment (9088 to 9532 =444 points) projected from recent higher bottom of 9341 provides upsides towards the 9785 region

The sharp recovery last week has pushed the short-term stochastic oscillator into the overbought territory with a reading of 92, which may lead to some consolidation in the coming sessions.

Further, the ongoing profit booking trend across recently run up sectors/stocks will lead to stock specific action in coming sessions.

The immediate support base for the index is placed at 9,350 region as it is the confluence of lower band of rising channel and higher bottom formed in last week trade.

Here is a list of top 4 stocks which can give up to 21% upside in next 6 months:

Mahindra CIE: BUY| Target Rs290| Stop Loss Rs212| Upside 20%| Time Frame 6 months

The stock had registered a strong volume-led a breakout from 12-month consolidation above Rs222 in April 2017. After the strong breakout rally from Rs180 to Rs257 in just four months, the stock entered a sideways consolidation mode and oscillated between the broad range of Rs257 and Rs225 in the last six weeks.

The entire consolidation over the last six weeks occurred above the breakout level of Rs222 highlighting the change of polarity principle as per which a significant resistance once taken out reverses its role and acts as a support for future price movement.

We believe the six weeks consolidation above the previous breakout area has laid the platform for the next up move. The volume behaviour also supports the positive bias in the stock as the breakout from the major consolidation range was accompanied by a strong volume of more than double of the 50 weeks average volume highlighting larger participation.

Dabur India: BUY| Target Rs320| Stop Loss Rs265| Upside 14%| Time Frame 3 months

The NSE FMCG index has recently registered a resolute breakout above the long-term bullish Cup & Handle pattern. It is a sign that the FMCG space is likely to outperform the benchmark indices going forward.

The share price of Dabur India is attractively poised at its key value area and presents a good buying opportunity with a favourable risk/reward for medium term perspective.

The price wise correction from June 2016 all-time high of Rs320 got arrested precisely near the major value area for the stock placed around Rs260 region, as it is the confluence of a long term rising trend line drawn off October 2014 bottom and 61.8% Fibonacci retracement of 2016 up move placed around Rs265 region.

We believe the corrective phase in the stock has approached maturity and it is attractively poised above its major value area. We expect the stock to challenge its key overhead trendline joining the highs of August 2015 and July 2016 placed around Rs320 over the coming months.

Bata India: BUY| Target Rs635| Stop Loss Rs510| Upside 17%| Time Frame 3 months

The sharp up move from the December 2016 low of Rs400 saw the stock register a resolute breakout above the long-term trendline resistance joining the major highs since January 2015.

After the major breakout rally, the share price moved into a sideways consolidation phase and marked time between the broad range of Rs590 to Rs520 levels over the last two months.

We believe the two months consolidation above the major trendline breakout area has laid the foundation for the next major up move going forward and the stock provides a good investment opportunity.

The stock has displayed classic attributes of change of polarity as the previous trendline resistance has reversed its role and acted as the base for the last two months consolidation.

The sideways consolidation over the last two months highlights accumulation by stronger hands above the major breakout area ahead of the next leg of up move going forward.

Rallis India: BUY| Target Rs295| Stop Loss Rs214| Upside 21%| Time Frame 6 months

The share price of Rallis India remains in a strong uptrend forming rising peaks and troughs on the long term charts. Within the structural uptrend, the stock has witnessed periodic secondary corrections that have provided fresh entry opportunities.

Recent developments on the price front suggest that the stock has concluded an elongated corrective phase and is poised to embark upon its next major up move thereby providing a fresh entry opportunity to medium term investors.

The entire corrective price action over the past two years took the pictorial form of a well defined ‘Cup & Handle’ pattern which is a bullish continuation price pattern having a positive implication on the price front upon resolution above the neckline of the pattern.

The stock registered a strong volume-led a breakout from bullish price pattern above Rs230 in early February 2017. After the strong breakout rally from Rs188 to Rs254 in just two months, the stock entered a sideways consolidation mode and oscillated between the broad range of Rs265 and Rs235.

The entire consolidation has occurred above the breakout level of | 230 highlighting the change of polarity principle as per which a significant resistance once taken out reverses its role and acts as a support for future price movement. We believe the current consolidation above the previous breakout area has laid the platform for the next up move.

We expect the share price to head towards Rs295 over the medium term being the price parity with the previous up move from Rs206 to Rs266 (266-206=60 points) added to the recent trough of Rs235 (235+ 60=295) project upside towards Rs295 levels in the medium term.

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Daily Nifty News Letter

Outlook Of Nifty/bank nifty today Nifty Outlook:   Even as midcap stocks have come under some pressure in the last two weeks after being on a one-way journey in the last five years, it makes sense for investors to remain invested in quality midcap stocks which are in the portfolio of top five midcap funds. Top five midcap funds according to Sharekhan advisory have given an annualised return of 25-32 percent and more than 70 percent of the top five stocks have more than doubled in the last 5 years, data showed. Bank Auta Outlook:   Select auto stocks were in action ahead of sales data for the month of May. "While passenger vehicle will continue its growth momentum in May led by Maruti Suzuki, 2-wheeler volume is also expected to be strong led by increase in retail off-take due to marriage season. Commercial vehicle sales are expected to be weak YoY," Maruti Suzuki ended at record closing high of Rs 7,214.90, up nearly a percent from previous close while Tata Motors lost over a percent. Mahindra & Mahindra surged 4 percent on value buying as brokerage houses turned bullish on the stock post earnings and on hopes of good monsoon that may boost its tractor sales in rural. Escorts also gained 4 percent. Nifty Trends    R1 9640 R2 9700 S1 9570 S2 9500 Technical Outlook Top Gainers M&M 1,413.70 IBULHSGFIN 1,150.50 ULTRACEMCO 4,199.00 LUPIN 1,159.75 IOC 429.15 Top Losers VEDL 238.50 INFY 976.05 AUROPHARMA 570.05 COALINDIA 263.10 TATAPOWER 81.00 To Get Free Trial Missed call @8817002233  Mail Us = starindiamarket@gmail.com visit = http://www.starindiaresearch.com/freetrail.php