NIFTY post best monthly gain on earnings outlook. The 50-share NSE index NIFTY rose 0.44% to finish at 10739.35 on Monday. The Indian benchmark NIFTY rose for third straight day & posted their biggest monthly gain in over two years on the last trading session of the month. The sentiment at traders and investors’ desk boosted by stronger than anticipated earnings result from Housing Development Finance Corp and Kotak Mahindra Bank. As markets will remain shut tomorrow on account of “Maharashtra Day”, While resuming on Wednesday investors will look on to upcoming corporate earnings results for cheering NIFTY to reclaim 11,000-mark.

Looking overseas, European markets trading higher following Asian markets which finished broadly higher on Monday. The Global stock markets advanced today ahead of a bundle of economic data from around the world & market-moving U.S. jobs data for April.

All sector gauges compiled by the NSE ended higher led by NIFTY PSU BANK, NIFTY REALTY, NIFTY IT, NIFTY FMCG and NIFTY PHARMA as top gainers.

From the NIFTY 50 basket of shares, YESBANK, TCS, KOTAKBANK, HINDUNILVR, LT, ASIANPAINT and VEDL outperformed as top gainers while AXISBANK, RELIANCE, UPL and GAIL are top losers.

Trade plan for Wednesday 2 May

UPL: This stock declined by 2.72% and ended at Rs.729.85 on Monday. Derivative traders were aggressive in adding short positions and Open interest surged by 9.21 %. This stock is trading below its recent support zone and the near-term resistance is seen around Rs.772.

BATAINDIA: This stock trading volume increased by 119 percent with most of the trades are settled intraday. The aggressive nature of buyers is recognized by the unfilled gap appeared in the daily chart. This stock is currently settled above the recent resistance zone and the short-term support is around Rs.737.

IBULHSGFIN: This stock trading volume spiked by 120 percent with 72% of the trades gone for delivery. Derivative traders were aggressive in adding short positions and Open interest gained by 14.1%.  This stock is trading inside the trading range and the support is seen around Rs.1254 and resistance is seen around Rs.1385.

ANDHRABANK: This stock surged by 6.28% and closed at Rs.39.75. This stock did rise in the last trading session but fell by a significant margin on a weekly basis. This stock is currently trading around the lower range of its price band and the crucial support zone is around Rs.37.

BANKINDIA: This stock surged by 5.74% and to close at Rs.104.05. This stock did rise in the last trading session but fell by a significant margin on a weekly basis. This stock is currently trading around the lower range of its price band and the crucial support zone is around Rs.99.

TATACHEM: This stock surged by 5.67% and finished at Rs.763.75. This stock trading volume rose by 252 percent with most of the trades are settled intraday. This stock is currently settled above the recent resistance zone and the short term support is around Rs.693.

RELIANCE: This stock fell by 1.24% and ended at Rs.963.3 at last session. Derivative traders were aggressive in adding short positions and Open interest surged by 2.85 %. This stock is oscillating nearer to its resistance zone of Rs.969.

DHFL: This stock is the most active stock in today’s trade with majority of them are settled intraday. The aggressive nature of bulls is recognized by the unfilled gap appeared in the daily chart. This stock is regularly heading higher levels for 3 days and currently settled above the recent resistance zone and the short-term support is around Rs.516.

KPIT: This stock trading volume inflated by 72 percent with most of the trades are settled intraday on Monday. The aggressive nature of sellers is evident from the todays gap appeared in the daily chart.  This stock is continuously rising for 3 days and currently settled above the recent resistance zone and the short-term support around Rs.216.

CEATLTD: This stock trading volume increased by 74 percent with numerous trades were intraday on 30 April 2018. The strength of the bulls is acknowledged by the opening gap appeared in the daily chart. This stock is trading inside the trading range and the support is seen around Rs.1519 and resistance is seen around Rs.1658.

Q4 Result Insights

HDFC

·        Consolidated revenue of HDFC grew   by 17.7%   to Rs.21248 crores  in this quarter from   Rs.18046 crores on YoY basis.

·     Consolidated net profit grew to Rs.3370 crores in this quarter from Rs.2464 crores, an increase of 36.7% on YoY basis.

·        Consolidated earnings per share remained at Rs.23.37 in this quarter, an increase of 25% on YoY basis.

·        The net profit margin remained at 15.8% in this quarter, an increase of 15% on YoY basis.

·        The company’s board has proposed a final dividend of Rs 16.50 per share, subject to the approval of the members at the upcoming annual general meeting.

·        Provisions for the quarter stood at Rs 180 crore against Rs 150 crore in the year-ago period. 

·        Standalone net profit for March quarter at Rs 2,846.22 crore against Rs 2,044.22 crore, an increase of 39.2% on YoY basis.

·        Standalone earnings per share remained at Rs.16.53 in this quarter, an increase of 36% on YoY basis.

Viewpoint: HDFC ended the financial year positively as its NII (net interest income) for the bank stood at Rs 3,617 crore, up 12.4 per cent YoY against Rs 3,216 crore in the corresponding quarter last year. The increase in NII in coming quarters would drive the growth of the company.

Kotak Mahindra bank

·       On a consolidated basis, Kotak Mahindra bank posted a 27 % YoY rise in net profit at Rs 1,789.24 crore against Rs 1,404.34 crore reported for the year-ago period.

·        In FY18, PAT grew to Rs 4,084 crore. Subsidiaries and associates contributed Rs 2,117 crore to bottom line. 

·        Consolidated NII stood at Rs 3,388.56 crore for this quarter, a 17% YoY rise against Rs 2,889.71 

·        Standalone net interest income (NII) for the quarter rose 19.4% YoY to Rs 2,580 crore in this quarter compared with Rs 2,161 crore in last year same quarter. 

·        Consolidated advances stood at Rs 2,05,997 crore as of March 31, 2018. On a standalone basis, advances as of March 31, 2018, grew 25% to Rs 1,69,718 crore 

·        The company’s board has recommended a dividend of Rs 0.70 per equity share having face value of Rs 5 for the year ended 31st March,2018.    

·        March quarter net NPA fell to 0.98% compared with 1.09% in December quarter and 1.26% in the year-ago quarter. 

Viewpoint: At the end of the financial year asset quality improved marginally. It is evident from the fact that, March quarter NPAs fell to 0.98% compared with 1.09% in December quarter and 1.26% in the year-ago quarter and its Gross non-performing assets (NPAs) for the quarter eased to 2.22% from 2.31% in December quarter. The growth momentum for this bank looks strong in the coming years driven by improve in asset quality.