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Trade Spotlight | What Should Investors Do With Jindal Steel & Power, Sun Pharma, Trident?
Here’s what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today.
Crude Updates:
Oil prices eased for a second session on Friday on growing concerns that Washington may soon act to cool prices, while movement controls in China to rein in a COVID-19 outbreak weighed on fuel demand.
Brent crude futures fell 30 cents, or 0.4%, to $84.17 a barrel at 0150 GMT. U.S. West Texas Intermediate crude was down 45 cents, or 0.6%, at $81.67 a barrel.
HCL Tech: Q3 Results Preview – PAT May Increase ~4 Percent QoQ, Revenue May Grow ~5 Percent
Strong quarter expected for IT Services, product platform and ERD businesses but supply side headwinds persist
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
Inflation is turning out to be a major worry for markets this year. December PPI inflation in the US has spiked to a record 9.7%. Inflation in the Euro Zone is already at record highs. If inflationary expectations get entrenched, the Fed will have to act early, perhaps in March itself. ECB too is likely to follow suit.
Even though such an emerging scenario is unfavorable for equity, markets may not react negatively since the high negative real return from fixed income makes returns from equity attractive. Since retail investors are now a force to reckon with, whether in the US or India, their response to market corrections on rate hike expectations will be crucial.
FIIs again moving to sell mode (Rs 1391 crore selling yesterday) may act as temporary headwind for some large private banking stocks in which FIIs have large holdings. This can turn out to be a buying opportunity for long-term investors.
Aurobindo Pharma’s Hyderabad unit gets warning letter from USFDA
Aurobindo Pharma has received a warning letter from the USFDA for Unit I, an API manufacturing facility of the Company in Hyderabad, company said in its release.
This action follows the recent inspection of the Unit by the USFDA in August 2021. The company believes that this will not impact the existing business from this facility.
The Company will be engaging with the regulator and is fully committed in resolving this issue at the earliest. The company is also committed to maintaining the highest quality manufacturing standards at all of its facilities across the globe, it added
Aurobindo Pharma was quoting at Rs 701.00, down Rs 16.90, or 2.35 percent on the BSE.
Gainers and Losers on the BSE Sensex in the early trade:
Market Opens: Indian indices opened lower on January 14 with Nifty below 18150 on the back of weak global cues.
At 09:16 IST, the Sensex was down 392.12 points or 0.64% at 60843.18, and the Nifty was down 114.30 points or 0.63% at 18143.50. About 909 shares have advanced, 1151 shares declined, and 89 shares are unchanged.
HDFC, HCL Tech, Asian Paints, Wipro and UPL were among major losers on the Nifty, while gainers were Cipla, IOC, L&T, Titan Company and Divis Labs.
Mohit Nigam, Head – PMS, Hem Securities:
Benchmark indices are expected to open on a negative note as suggested by trends on SGX Nifty. US markets closed in red whereas European markets closed with minuscule gains. Asian markets are trading in negative terrain.
The indices can witness some consolidation at these levels or can be faced with minor corrective fall which presents a good opportunity to deploy additional funds in good quality stocks.
Investor sentiments got a push with the Commerce and Industry minister Mr Piyush Goyal statement that India’s strong Start-up ecosystem will help the country to change from assembly line economy to knowledge-based economy.
On the technical front, the key resistance levels for Nifty50 are 18300 followed by 18330 and on the downside 18190 followed by 18120 can act as strong support. Key resistance and support levels for Bank Nifty are 38670 and 38320 respectively.
ICICI Direct
Indian markets are likely to open on a weak note tracking mixed global cues after the highest US inflation reading in ~40 years kept concerns about price pressures and monetary policy risks alive. Also, IT stocks will be in focus as investors await HCL Tech’s quarterly earnings.
US markets ended lower tracking losses in technology stocks amid fear of rising interest rate in the near future.
Market at pre-open: Benchmark indices are trading weak in the pre-opening session with Nifty below 18100.
The Sensex was down 98.35 points or 0.16% at 61136.95, and the Nifty was down 162.50 points or 0.89% at 18095.30.
Motilal Oswal on Mindtree
The management’s increased focus on annuity revenue and strategic accounts is reflected in its revenue and client mix.
A strong outlook on strategic accounts, decent deal signings, and the ability to sustain improved margin are key positives.
As the key positives are already captured, we see limited upside hereafter. Our target price of Rs 4,880 per share implies 35x FY24E EPS. We maintain our neutral rating.
