Daily market update
NIFTY resume rally after a day breather, thanks to metal stocks. The 50-share NSE index NIFTY rose 0.37% to settle at 10565.30 on Thursday. The Indian benchmark NIFTY resumed its winning streak after a day breather on gains in metal stocks which rose after a sharp up move in aluminum prices. However, gains were capped by losses in oil marketing company stocks after crude prices rose to year highs. The sentiment in India was supported by optimistic earnings expectation by investors, rally in aluminum prices and positive global cues.
Looking overseas, European markets trading mixed to higher tracking Asian markets which finished broadly higher on Thursday. The global markets rose and building gains on an upward rally in oil prices and cheerful corporate earnings outcome.
Ten out of eleven sector gauges compiled by the NSE ended higher led by NIFTY METAL, NIFTY IT, NIFTY PHARMA, NIFTY REALTY, NIFTY FMCG and NIFTY MEDIA as top gainers. On the flip side, NIFTY FIN SERVICE is the only loser.
From the NIFTY 50 basket of shares, HINDALCO, VEDL, TATASTEEL, YESBANK, and BHARTIARTL outperformed as top gainers while BPCL, HINDPETRO, IOC, and TITAN are the top losers.
Top stocks to watch on Friday 20 April
BPCL: This stock plunged by 7.07% and to close at Rs.376.55. Derivative traders were aggressive in adding short positions and Open interest increased by 24.96 %. The intensity of the bears is acknowledged by the todays gap. This stock is trading below its recent support zone and the near-term resistance is seen around 447.
APOLLOHOSP: This stock surged by 4.27% and finished at Rs.1122. Derivative traders were aggressive in exiting short positions and Open interest reduced by 22.54 %. This stock is currently settled above the recent resistance zone and the short-term support around 1007.
MINDTREE: This stock gained by 3.76% and settled at Rs.897. This stock Trading volume rose by 154 percent. However, most of the trades are intraday trades. This stock is currently settled above the recent resistance zone and the short-term support around 759.
ADANIENT: This stock gained by 3.58% and closed at Rs.141.65. This stock did rise in the last trading session but fell by a significant margin on a weekly basis. This stock Currently it is trading around the lower range of its price band and the crucial support zone is around 134.
HINDALCO: This stock surged by 9.04% and settled at Rs.264.75. The aggressive nature of buyers is evident from the unfilled gap. This stock is currently settled above the recent resistance zone and the short-term support around 203.
VEDL: This stock surged by 7.08% and ended at Rs.311.7. The firmness of the bulls is evident from the unfilled gap. This stock is currently settled above the recent resistance zone and the short-term support around 273.
JSWSTEEL: This stock surged by 4.16% and finished at Rs.322.85. This stock is currently settled above the recent resistance zone and the short-term support around 282.
HINDPETRO: This stock plunged by 5.66% and finished at Rs.301.5. This stock registered significant decline over a recent day. This stock t is trading below its recent support zone and the Near-term resistance is seen around 365.
BHARATFIN: This stock weakened by 1.73% and ended at Rs.1119.5. This stock trading volume rose by 245 percent on 19 April 2018 with 62% of the trades gone for delivery. This stock is trading inside the trading range and the support is seen around 1065 and resistance is seen around 1159.
CASTROLIND: This stock weakened by 1.73% and closed at Rs.204.2. This stock trading volume spiked by 166 percent to 74% of the trades are taken for delivery. This stock is trading inside the trading range and the support is seen around 198 and resistance is seen around 212.
Q4 Result Insights
· TCS showed a topline growth of 8% to 33069cr when compared to this quarter last fiscal year.
· Net profit margin remained 20.9% and the profit for the current quarter showed a significant growth of 4.5% on YoY basis.
· An amount of 2,862 crores (the US $ 440 million) is disclosed as a contingent liability.
· The EPS increased marginally 6% to 36.07 from 34.12 on QoQ basis.
· The Board of Directors at its meeting held on April 19, 2018, has declared a final dividend of Rs.29.00 per equity share.
· The Board of Directors at its meeting held on April 19, 2018, approved a bonus issue of equity shares of ratio 1:1, subject to the approval of the shareholders.
Viewpoint: TCS ended the year with the strong results, despite showing negative profit growth in previous three quarters of the financial year.
· INDUSIND showed a significant rise in profit of 953crs an increase of 27% but its net profit margin to decline to 16.26%.
· Return on asset (annualized) declined to 1.86% to 1.96%.
· For the year ended March, the board recommended a dividend of Rs.7.50 per share, subject to the approval from the shareholders at the annual general meeting.
· Net NPA (bad loans) increased from 592cr to 745cr, an increase of 26%.
· Capital adequacy ratio remained to 15.03.
· Total income of the bank stood at Rs.5,858.62cr against Rs.5,041.31cr in the corresponding quarter last fiscal.