Weekly stock market update

NIFTY post biggest weekly loss in nearly two months. The 50-share NSE index NIFTY fell 0.81% to finish at 10596.40 on Friday. The Indian benchmarks fell for fourth straight day dragged down by widespread losses across all sectors in the last trading session of the week.  On weekly basis, the benchmarks NIFTY tumbled 1.94% and posted their worst performance in nearly two months. The domestic investors were quiet all over the week on weaker-than-estimated earnings results, high global crude oil prices and the uncertainties around the composition of the next government in the southern state of Karnataka weighted on sentiment.

Looking overseas, European markets trading lower while Asian markets which mixed on Friday. The Global equity markets are subdued this week as geopolitical tensions and trade war talks are back in focus.

Ten out of eleven sector gauges compiled by the NSE ended lower led by NIFTY METAL, NIFTY PHARMA, NIFTY PSU BANK, NIFTY AUTO, NIFTY REALTY and NIFTY MEDIA as top losers. On the flip side, NIFTY FMCG is the only gainer.

From the NIFTY 50 basket of shares, CIPLA, WIPRO, IBULHSGFIN, SUNPHARMA, TATAMOTORS, TATASTEEL, and LT underperformed as top losers while BAJFINANCE, TECHM, BAJAJFINSV, HINDUNILVR, and KOTAKBANK are top gainers.

Top stocks to watch on Monday 21 May

VOLTAS plunged by 5.39% and ended at Rs.551.75. It witnessed Star pattern on daily chart. Trading volume spiked by 1294 percent at last trading day. The firmness of the bears is indicated by the opening gap. It is trading below its recent support zone. The Near-term resistance is seen around 652.

KOTAKBANK climbed by 1.87% and closed at Rs.1294.4. Trading volume increased by 71 percent. Surprisingly 79% of the trades gone for delivery. It is likely to witness bullish trend formation. Derivative traders were aggressive in adding long positions. Open interest increased by 5.32 %. This stock is currently settled above the recent resistance zone. We see short-term support around 1150.

COLPAL gained by 3.92% and to close at Rs.1222.2. At the same time, it recorded significant returns in last five sessions. Trading volume inflated by 132 percent on 18 May 2018. It is likely to witness positive breakout. It is steadily advancing for 6 days. This stock is currently settled above the recent resistance zone. We see short-term support around 1088.

HINDUNILVR advanced by 2.29% and to close at Rs.1605.8. Also, it secured a considerable margin over recent days. There could be bullish trend formation. Derivative traders were aggressive in adding long positions. Open interest gained by 3.27 %. This stock is currently settled above the recent resistance zone. We see short-term support around 1443.

SUNPHARMA is listed in top traded counters. It suggests for a bearish breakout. Derivative traders were aggressive in unwinding long positions. Open interest reduced by 2.76 %. The momentum of the sellers is indicated by the today’s gap. It is trading below its recent support zone. The Near-term resistance is seen around 532.

BAJFINANCE surged by 4.02% and closed at Rs.2149.65. Also, it maintained exceptional gains on the weekly basis. Trading volume hiked by 647 percent on Friday. It is likely to witness bullish breakout. This stock is currently settled above the recent resistance zone. We see short-term support around 1836.

RCOM plunged by 6.71% and to close at Rs.15.3. Trading volume rose by 576 percent at last trading day. But numerous trades were settled intraday. The technical indicator RSI signals overbought scenario. It is trading inside the trading range. The Support is seen around 11 and resistance is seen around 21.

BAJAJ-AUTO volume hiked by 734 percent. Yet numerous trades were intraday trades. It gives an impression of a bearish breakout. The firmness of the bears is acknowledged by the opening gap. It is trading below its recent support zone. The Near-term resistance is seen around 2989.

SRF plunged by 13.61% and to close at Rs.1924.4. Trading volume hiked by 1267 percent. Yet a majority of them are intraday in nature. There is an evidence of a bearish trend. It is trading below its recent support zone. The Near-term resistance is seen around 2408.

BIOCON rose by 1.3% and finished at Rs. 649.65. Trading volume rose by 149 percent at last session. But numerous trades were settled intraday. The momentum of the sellers is evident from the unfilled gap. It is oscillating nearer to its resistance zone of 668.

Q4 Results Insights

Ashok Leyland

  • Revenue increased by 32% to Rs. 8,772 crores as against Rs. 6,654 crores, same period last year.

  • Total MHCV Volumes including exports increased by 15% to 44,425 units.

  • Volume for LCV increased by 59% to 14,309 units.

  • Ashok Leyland, flagship of the Hinduja Group closed FYl8 with record revenues of Rs. 26,248 crores and record profits of Rs. 1,563 crores. It posted a 10.4% EBITDA margin for FY18.

  • Ashok Leyland volumes grew by 14% to 116,534 number for FY 2017-18 in the domestic market. Exports recorded a 36% growth in the fiscal and the Aftermarket revenues also saw a healthy growth of 26%.

  • Board recommends a dividend of Rs. 2.43 per share.

Viewpoint: Ashok Leyland has increased its market share across all the segments. The company being in its growth phase is looking to gain furthermore market share in the automobile industry and increase its top-line and bottom-line across all segments.

Bajaj Auto Limited

  • The EBITA margin for this quarter remained at 20.9% and its total turnover was at Rs 7140 crores.

  • The operating EBITA was at Rs 1431 crores and profit after tax remained at Rs 1080 crores.

  • The Board of Directors recommended a dividend of Rs 60 per share.

  • FY18 sales volume recorded a growth of 18% – to 1,662,577 units.

  • The company recorded its highest ever volume of 369,637 units in the domestic market – growth of 46% over FY17.

  • Cash and cash equivalents as on 31 March 2018 stood at Rs 15,542 crore as against Rs 12,368 crore as on 31, March 2017.

Viewpoint: Bajaj Auto Ltd grew its market share in the automobile segments and its sales in both domestic market and international grew substantially. The company is poised to capitalize on the future growth of the auto industry.