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Benchmark indices which are already down by about 8 per cent from the recent highs could fall by another 5-10 per cent if tensions between Ukraine and Russia escalate further, suggest experts. 
 
The Nifty50 had a touch-and-go moment with 200-DMA on Tuesday. The technical bounce back is unlikely to sustain as there is plenty of resistance at higher levels, caution experts if things escalate further and crude oil continues to boil.

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Western nations on Tuesday punished Russia with new sanctions for ordering troops into separatist regions of eastern Ukraine and threatened to go further if Moscow launched an all-out invasion of its neighbour, said a Reuters report. 
 
U.S. sanctions are being applied to VEB bank and Russia's military bank, Promsvyazbank, which does defence deals, the report added.

History suggests that equity markets globally tend to overreact to geopolitical events. For example, after the Iraqi invasion of Kuwait, the global markets fell but later regained its level within the next six months. 
 
“If we proxy tensions by looking at Ukrainian EMBI spreads or gold then clearly tensions remain high. In this situation, we think that the key transmission mechanism is not via economic contagion or financial contagion but via commodities,” Motilal Oswal, MD &amp; CEO, Motilal Oswal Financial Services, said. 
 
“We believe central banks would not change the policy unless the rise in commodity prices were to cause a sharp downturn in global growth,” he added. 
 
Motilal Oswal highlights 3 scenarios: 
 
1) Central scenario: Equity market likely to stabalise 
 
No major further escalation: In this scenario, we assume President Putin wins important concessions about Ukraine not joining NATO and over Nordstream. I would expect the oil price to fall modestly and Indian markets finding support at current levels. 
 
2) Risk scenario: Indian market may fall by 5% 
 
Limited incursion (in a similar style to Crimea): We assume in this scenario that there is less disruption to the Russian banking system and trade in oil and gas exports continues. I would not see this leading to meaningful disruption. Indian markets may fall c5% from current levels. 
 
3) Low probability scenario: Full-scale invasion: Indian market could fall by 10% 
 
There is little apparent public support for a full-scale invasion among Russians, it would make little strategic sense, and full-scale sanctions risk significant damage for the Russian economy. 
 
The subsequent rise in resources prices risks a c10% fall in markets from current levels. 
 
Keep an eye on crude: 
 
The major impact of any escalation of the Russia-Ukraine conflict will be reflected on crude oil prices. Being a net importer of crude oil, India will not just take a hit on import bill but also a rise in inflation which remains to be the biggest threat for central bankers not just for India but across the globe. 
 
"The major impact of the Ukraine crisis in India is the implications of crude at $97. If crude sustains at around these high levels, inflation in India is sure to go up,” Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said. 
 
“If inflation rises it would force the RBI to revise its FY 23 inflation target upwards and signal withdrawal from the accommodative monetary stance. This would be negative from the growth and earnings perspective,” he said. 
 
For India, the main effect will be via the indirect impact on global oil prices. Russia accounts for 11 per cent of global crude-oil exports. 
 
“If sanctions take about 60% of this off global markets (with China, Belarus, and a few other customers possibly defying the sanctions), world crude-oil supply would decline by 3mmbd, and the Brent crude price would likely shoot above US$110/bbl,” ICICIdirect said in a report. 
 
“The possible revival of the Iran nuclear deal (JCPOA), now at a crucial stage of negotiations, could restore about half of this supply, adding about 1.5mmbd of production and exports within a few months,” it said. 
 
Even with the possible restoration of Iran as a major crude oil exporter, the brokerage firm sees Brent to still remain above US$100/bbl for much of 2022. 
 
(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

History suggests that equity markets globally tend to overreact to geopolitical events. For example, after the Iraqi invasion of Kuwait, the global markets fell but later regained its level within the next six months


Ukraine-Russia row: A 5-10% fall possible in Indian markets if tensions escalate

Indian market closed lower for the fifth consecutive day in a row on Tuesday tracking muted global cues. The S&amp;P BSE Sensex fell nearly 400 points while the Nifty50 closed below 17100 levels. 
 
Sectorally,&nbsp;buying was seen in power, utilities while&nbsp;selling was seen in realty, telecom, public sector,&nbsp;and&nbsp;metal stocks. 
 
Stocks that were in focus include&nbsp;MCX&nbsp;which closed&nbsp;with&nbsp;losses of over 4 per cent,&nbsp;Dhani&nbsp;Services plunged 20 per cent&nbsp;and&nbsp;PB Fintech was&nbsp;down by nearly 6 per cent on Tuesday. 
 
Here's&nbsp;what&nbsp;Vijay Dhanotiya Lead of Technical Research, CapitalVia Global Research Limited, recommends&nbsp;investors&nbsp;should&nbsp;do&nbsp;with&nbsp;these stocks when the market resumes trading today: 
 
MCX: Avoid 
 
MCX has broken the previous support levels near 1450&nbsp;and&nbsp;closed below the support levels. The next support levels are near the levels of 1200&nbsp;and&nbsp;hence we&nbsp;don’t recommend&nbsp;investors&nbsp;to&nbsp;buy&nbsp;MCX&nbsp;India at these levels. 
&nbsp;

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Dhani: Avoid 
 
Dhani has been trading below the levels of 200-Days EMA&nbsp;and&nbsp;is trading near the 52-week lower levels. We&nbsp;do&nbsp;not recommend&nbsp;buying&nbsp;Dhani&nbsp;at these levels. 
 
Policy&nbsp;Bazaar: Avoid 
 
Policy&nbsp;Bazaar&nbsp;is trading near its all-time low&nbsp;and&nbsp;is consistently breaking the lower levels. We have not observed any reversal signs at this time&nbsp;and&nbsp;hence we&nbsp;don’t recommend&nbsp;investors&nbsp;to&nbsp;buy&nbsp;Policy&nbsp;Bazaar&nbsp;at these levels. 
 
(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult&nbsp;with&nbsp;their investment advisers before making any financial decision.)

&nbsp;

Indian market closed lower for the fifth consecutive day in a row on Tuesday tracking muted global cues. The S&amp;P BSE Sensex fell nearly 400 points while the Nifty50 closed below 17100 levels.
&nbsp;


Buy, Sell or Hold: What should investors do with MCX, Dhani and Policy Bazaar?

Eveready Industries Ltd has rallied over 46 percent over the past 12 months versus a 15 percent upside seen in the Nifty50. The rally in Eveready Industries is not over yet. Investors who plan to put fresh money can look at buying the stock on dips for a possible target of Rs 475-600 in 2022. The view is based on technical indicators according to experts.

Eveready Industries, a small cap company, with a market capitalization of more than Rs 2500 cr hit a 52-week high of 413 on 6 October and post that the trend went sideways.

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But the recent price action suggests that bulls have taken control of the stock. It rallied nearly 20 per cent in a week, and over 13 per cent in 1 month, compared to a nearly 2 per cent fall in Nifty in a week, and about 3 per cent decline seen in a month, Trendlyne data showed.

The stock has been an outperformer in the smallcap space, and if there is mild profit booking after a steep rally, investors should consider buying the dip.

Eveready is the undisputed market leader in the batteries segment, commanding over 50% of India's market share, and holding 75% of India's organised flashlights market.

Although December quarter results highlighted over 50 per cent year-on-year (YoY) fall in the net profit of the company to Rs 23 cr. The battery category saw an unprecedented cost-push exceeding 20 per cent in the quarter necessitating increase of prices to the market, resulting in market resistance, said a PTI report.

Despite muted results, foreign investors raised their stake in the company in Q3 while the stake of fund managers remained unchanged.

FIIs increased their holding from 2.21 per cent in the September quarter to 2.47 per cent in the December quarter, data from Trendlyne showed.

<img alt="image" src="https://i.ibb.co/5GRxSCx/image.png" />

The stock price started its upward move from Rs 45 (March 2020) to Rs 413 (October 21), making series of higher bottoms &amp; higher tops. During the move, the stock continuously traded above averages.

“The stock saw slight profit booking followed and the stock corrected to 255 in January 2022. From October 2021 to Jan 2022 most of the time the stock traded within averages,” Bharat Gala, President - Technical Research, Ventura Securities Ltd, said.

“A Weekly Bullish Candle, supported by volumes has been formed. The stock has made a high of 366 surpassing the previous 3-months highs. From Oct 2021 to Jan 2022 most of the time the stock traded within averages,” he said.

‘The KST, Demand Index &amp; ROC Indicators have generated a Primary buy signal. The possible targets are 475-600,” recommends Gala.

“If the stock price corrects downwards the buy levels are (340-323)-311-(298-290). Stop Loss to be observed in the trade is 265,” he added.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

Eveready Industries Ltd has rallied over 46 percent over the past 12 months versus a 15 percent upside seen in the Nifty50.&nbsp;


Technical Check: About 20% in a week! This smallcap company is a perfect buy on dip stock; fresh highs likely in 2022

Heavy electric equipment maker Siemens Ltd has risen more than 30 per cent in last one year versus over 15 per cent rise seen in the Nifty50. A similar return was seen in the BSE 100 index.

The stock has been an outperformer and investors who are already invested should hold on to the stock as Siemens witnessed a breakout from a 2-month consolidation range on the weekly chars in February, suggest experts.

If the momentum stays intact the stock could well surpass its 52-week high of Rs 2577 recorded on 13 December 2021, to head towards a larger target of Rs 2800 as well as Rs 3190 translates into an upside of 14-30 per cent from Rs 2457 recorded on 18 February.

In terms of shareholding, both foreign investors as well as mutual funds raised their holding in Siemens in the December quarter. FIIs increased their holding from 5.2 per cent in the September quarter to 5.4 per cent in the December quarter.

Mutual Funds also increased their holding in Siemens from 2.16 per cent in the September quarter to 2.72 per cent for the quarter ended December, data from Trendlyne showed.

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On the long-term charts, Siemens is showing strength since March 2020 and continued to move with higher highs and higher lows formation maintaining the strong bullish trend.

The stock has shown relative outperformance compared to Nifty and has managed to sustain at higher levels even in the current market weakness.

“Currently the stock trades only 4.8% away from the life high whereas the Nifty is 8% lower from its life highs. On the weekly charts the stock is continuously taking support at the 20-week SMA (2315) and holding above the same with some mild whipsaws,” Malay Thakkar, Technical Research Associate, GEPL Capital, said.

“In the current week, the stock has broken out of a 2-months long consolidation with good volumes and has started moving higher,” he said.

On the indicator front, RSI plotted on the weekly scale is comfortably sustaining above the 50 mark and moving higher indicating bullish momentum in the underlying.

“Going ahead the stock has the potential to continue its outperformance and move higher towards 2800 (61.8% Fib extension 1565-2402) followed by 3190 (100% fib extension 1565-2402),” recommends Thakkar.

 
He further added that a stop loss of 2315 (Swing low) on a Daily closing basis should be maintained for this trade.

<img alt="" src="Heavy electric equipment maker Siemens Ltd has risen more than 30 per cent in last one year versus over 15 per cent rise seen in the Nifty50. A similar return was seen in the BSE 100 index. The stock has been an outperformer and investors who are already invested should hold on to the stock as Siemens witnessed a breakout from a 2-month consolidation range on the weekly chars in February, suggest experts. If the momentum stays intact the stock could well surpass its 52-week high of Rs 2577 recorded on 13 December 2021, to head towards a larger target of Rs 2800 as well as Rs 3190 translates into an upside of 14-30 per cent from Rs 2457 recorded on 18 February. In terms of shareholding, both foreign investors as well as mutual funds raised their holding in Siemens in the December quarter. FIIs increased their holding from 5.2 per cent in the September quarter to 5.4 per cent in the December quarter. Mutual Funds also increased their holding in Siemens from 2.16 per cent in the September quarter to 2.72 per cent for the quarter ended December, data from Trendlyne showed. Image 1 On the long-term charts, Siemens is showing strength since March 2020 and continued to move with higher highs and higher lows formation maintaining the strong bullish trend. The stock has shown relative outperformance compared to Nifty and has managed to sustain at higher levels even in the current market weakness. “Currently the stock trades only 4.8% away from the life high whereas the Nifty is 8% lower from its life highs. On the weekly charts the stock is continuously taking support at the 20-week SMA (2315) and holding above the same with some mild whipsaws,” Malay Thakkar, Technical Research Associate, GEPL Capital, said. “In the current week, the stock has broken out of a 2-months long consolidation with good volumes and has started moving higher,” he said. On the indicator front, RSI plotted on the weekly scale is comfortably sustaining above the 50 mark and moving higher indicating bullish momentum in the underlying. “Going ahead the stock has the potential to continue its outperformance and move higher towards 2800 (61.8% Fib extension 1565-2402) followed by 3190 (100% fib extension 1565-2402),” recommends Thakkar. He further added that a stop loss of 2315 (Swing low) on a Daily closing basis should be maintained for this trade. (Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)" />

Technical Check: Siemens sees breakout on weekly charts; stock likely to surpass 52-week high

Indian market closed in the red for the fourth consecutive day in a row on Monday following muted global cues. The S&amp;P BSE Sensex fell by nearly 150 points while the Nifty50 managed to hold on to 17200 levels.

Sectoral buying was seen in banks while selling pressure was seen in oil &amp; gas, metals, utilities, power, and healthcare stocks. The S&amp;P BSE Small-cap index fell 2.2 per cent while the S&amp;P BSE Mid-cap index was down 0.8 per cent.

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Stocks that were in focus include Manappuram Finance that closed with losses of over 2 per cent, Equitas Small Finance bank Ltd fell nearly 4 per cent and Linde India rose nearly 10 per cent on Monday.&nbsp;&nbsp;

Here's what Jatin Gohil, Technical Analyst at Reliance Securities, recommends investors should do with these stocks when the market resumes trading today:

Manappuram Finance: Buy on dips | Target: Rs 180-195 | Duration: 4-6 months

On 10th November 2021, the stock recorded a lifetime-high of Rs 224.50, but after a profit booking, it has witnessed a sharp fall.

Due to continuous decline, the stock reported a fall of 48% from its peak level (i.e. from Rs224.50-117.25). Historically, the stock bounced after a 46-62% decline from its peak level.

Major technical indicators have tested their oversold zone on a short-term timeframe chart. We believe history will repeat itself, which could help the stock to recover prior damages quite swiftly.

On the lower side, the stock will find support around psychological level Rs 100. However, its long-term supply zone, which is placed between Rs 180 and Rs 195 will cap the up move.

Equitas Small Finance Bank: Buy | Target: Rs 67-71 | Duration: 2-3 weeks

The stock formed a double bottom around Rs 52 and bounced subsequently. On 21st February 2021, the stock breached its prior daily falling trend and rose to a 1-month high.

Its daily RSI has given a buy signal post bullish divergence. This could lead the stock towards Rs 67 initially and Rs 71 subsequently.

On the lower side, the stock will find support around Rs 49 (on a closing basis).

Linde India: Buy | Target: Rs 3,615 | Time Duration: 2-3 Months

On 21st February 21, the stock given breakout from a prior wide range of Rs 2,273-2,945 and recorded a new life-time-high of Rs 3,005.

Major moving averages are sloping upwards on short-term as well as medium-term timeframe charts.

The key technical indicators are in favour of bulls. The stock has the potential to move towards Rs 3,450 initially and Rs 3,615 subsequently.

On the lower side, the stock will find support between Rs 2,550 and Rs 2,475.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

Here's what Jatin Gohil, Technical Analyst at Reliance Securities, recommends investors should do with these stocks when the market resumes trading today


Buy, Sell or Hold: What should investors do with Manappuram Finance, Equitas Small Finance Bank and Linde India?

Tracking weak global cues Indian market started on a weak note on Monday. Bears took control and pushed benchmark indices towards crucial support levels. 
 
The S&amp;P BSE Sensex fell more than 650 points in intraday trade to breach its crucial support placed at 58000 while the Nifty50 took support near 17000. However, the markets recovered from day's lows with sensex salvaging over 500 points while the 50-share Nifty50 index gaining close 150 points. At 11:15 am, Sensex was trading at&nbsp;57,739.76, down 93 points or 0.16 per cent. Meanwhile, Nifty50 was trading at 17,230.55, down 0.26 per cent.

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Asian markets fell while crude oil prices surged amid warnings Russia was set to invade Ukraine, risking sanctions that could trigger a further spike in energy costs and stoke global inflation, said a Reuters report. 
 
“There are strong headwinds for the market arising from Ukraine tensions and monetary tightening by the Fed expected from March onwards,” Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said. 
 
“Adding to these headwinds there are concerns specific to India like sustained FII selling and rising crude. Brent crude at around $ 94 a barrel can aggravate inflation in India and depreciating rupee may further prompt FIIs to sell. Retail investor optimism and cash-rich DIIs are positives,” he said. 
 
Foreign portfolio investors (FPIs) have withdrawn a net Rs 18,856 crore from the Indian markets in February so far amid geopolitical tensions and chances of a rate hike by the US Federal Reserve. This is the fifth consecutive month of foreign fund outflows, PTI reported. &nbsp; 
 
We have collated a list of 4 trading ideas by experts for the next 3-4 weeks: 
 
Expert: Rajesh Palviya Jain, VP Research (Head Technical &amp; Derivatives) at Axis Securities Ltd 
 
HDFC Ltd: Buy| LTP: Rs 2440| Target Rs 2575| Stop Loss Rs 2330| Upside 5% 
 
The stock has witnessed a strong rebound from its one-year “multiple support” zone of 2370 levels which remains a crucial support zone. 
 
The weekly price action has formed a “hammer” candlestick pattern which is a short-term trend reversal pattern. Hence, any follow-up close above 2451 levels will confirm the pattern. 
 
Rising volumes over the past couple of weeks signal increased participation. The daily strength indicator RSI is in bullish mode along with positive crossover which supports rising strength in the near term. 
 
The above analysis indicates an upside of 2500-2575 levels. The holding period is 3 to 4 weeks. 
 
Hero MotoCorp Limited: Buy| LTP Rs 2716| Target Rs 2960| Stop Loss Rs 2630| Upside 9% 
 
In the past couple of months, the stock has witnessed strong buying momentum from lower levels. With the current close, the stock has formed an “inverse head and shoulder” pattern with a neckline of 2800 levels. 
 
The past couple of weeks rising volumes implies increased participation. The stock is sustaining above its 20, 50, and 100 as well 200 Day SMA which reconfirms bullish sentiments ahead. 
 
The daily, weekly and monthly strength indicator RSI is in bullish mode along with positive crossover which supports rising strength. The above analysis indicates an upside of 2880-2960 levels. 
 
Brokerage Firm: SMC Global Securities Ltd 
 
Bajaj Auto: Buy| LTP Rs 3635| Target Rs 3890| Stop Loss Rs 3420| Upside 7% 
 
Bajaj Auto made a 52-week low at Rs 3027.05 on 20th December 2021 and a 52-week high of Rs. 4347.00 on 01st June 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 3556.42. 
 
The stock has witnessed a healthy correction from a high of 4000 levels and tested 3100 levels in a single downswing within a short span of time. Then after, it consolidated in a narrow range for 3 weeks and gave the breakout of same and trading higher. 
 
Apart from this, the stock has formed an “Inverse Head and Shoulder” pattern on daily charts, which is considered to be bullish. 
 
Last week, the stock has given the pattern breakout along with high volumes and also closed near week high. So, follow-up buying may continue for the coming days. 
 
Therefore, one can buy in the range of 3600-3610 levels for the upside target of 3850-3890 levels with a stop loss below 3420 levels. 
 
Siemens: Buy| LTP RS 2457| Target Rs 2630| Stop Loss Rs 2330| Upside 7% 
 
Siemens made a 52-week low of Rs 1717.80 on 12th April, 2021, and a 52-week high of Rs. 2576.85 on 13th December, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 2166.80 
 
Short-term, medium-term, and long-term bias are looking positive for the stock as it is trading in higher highs and higher lows on charts. 
 
Apart from this, the stock is forming a “Continuation Triangle” pattern on weekly charts which is bullish in nature. 
 
Past week, the stock tried to give the breakout of the pattern but could not hold the due to high volatility across the board, managed to close with positive bias along with high volumes so further buying is anticipated from the stock from current levels. 
 
Therefore, one can buy in the range of 2420-2430 levels for the upside target of 2580-2630 levels with a stop loss below 2330 levels. 
 
(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

Asian markets fell while crude oil prices surged amid warnings Russia was set to invade Ukraine, risking sanctions that could trigger a further spike in energy costs and stoke global inflation, said a Reuters report


Sensex, Nifty recover from day's lows even as muted cues weigh on markets! These 4 stocks could give 5-9% return in next 3-4 weeks

Deepak Jasani, Head of Retail Research, HDFC Securities said that as interest rates go north, growth stocks could become less attractive especially if they fail to deliver on the high expectations of growth in top and bottom line.

A Chartered Accountant by profession, Jasani has broad-based domain expertise of more than sixteen years in capital markets. He brings remarkable insights across multiple verticals in the capital markets.

In an interview with Zeebiz's Kshitij Anand, Jasani said investors need to be careful in participating in stocks that have only promises/potential and are yet to deliver, and turnaround stories need to be avoided till there is a reasonable assurance of a genuine turnaround.

Edited excerpts:

Q) RBI maintained the status quo on rates in February and maintained a dovish stance which came as a welcome surprise for markets. What is the trajectory you foresee for rates in near future?

A) With inflation remaining high, the RBI may be forced to sooner or later start the process of raising rates and tightening liquidity, especially if the growth seems to be returning in the economy.

A lot of economists feel that the RBI has fallen behind the curve and in case the rate hikes are delayed, inflation may continue to remain high for longer than the RBI expects.

However, in case this is done with some forewarning and in a measured pace, the markets may not be unduly hurt by the rate hikes.

Q) Indian market picked up momentum post Budget after initial US Fed jitters stabilised. What are your views on markets for 2022? What will be next trigger for markets?

A) Indian markets seem to be fairly valued going by the Nifty EPS projected for the next few years. However, the worry remains as to whether the projected EPS will be met or undershoot, like in the recent past.

Also, the interest rate hikes across the globe could mean lower valuation ascribed to equities and a reduction in FPI flows from abroad.

However, in case Indian macro and micro continue to perform, India will still remain the most attractive market among emerging economies.

More stability in local politics and in the economy, stability in crude prices, and fewer geopolitical shocks could be the triggers for the Indian market in 2022. 
&nbsp; 
Q) Budget 2022 was focused on boosting growth – do you see sectoral rotation taking place? Which should long-term investors focus on?

A) Interest rates seem to be on the way up due to the higher-than-expected FY23 fiscal deficit and no provision to enable inclusion of Indian Sovereign bonds in global bond indices in the latest Budget.&nbsp;&nbsp;

This may lead to a shift in investments from expensive sectors to cyclical. Capital Goods, Metals, and Cement are the apparent beneficiaries of the Budget.

Q) Which theme will dominate markets in 2022 – value of growth? We saw a lot of liquidity chasing many mid and small-cap stocks in 2020-2021 to tap growth. What are your views?

A) As interest rates go north, growth stocks could become less attractive especially if they fail to deliver on the high expectations of growth in top and bottom line.

Alpha generating possibilities abound in the small and midcap companies that have adjusted well to the disruption seen over the past few years.

However, investors need to be careful in participating in stocks that have only promises/potential and are yet to deliver.

Also, turnaround stories need to be avoided till there is a reasonable assurance of a genuine turnaround.

Q) Crude seems to be on the boil. What is your call on the commodity market in 2022?

A) Crude oil prices have a lot of tailwinds currently due to the geopolitical issues and rebound in economic growth post the Covid-related slowdown.

However, the oil producers will be wary of too high a price in the face of Iran supplies likely to be available post the US Iran accord and the OPEC members wanting to benefit out of the current uprun in prices.&nbsp;&nbsp;

&nbsp;A shift to green energy could accelerate in case the oil price remains too high for too long.

Q) Given the government's focus on pushing CAPEX are there any sectors poised for re-rating?

A) Capital Goods, and Metal stocks could benefit out of the Govt thrust on Capex; however, one will have to watch the execution speed of the Govt and the areas of Capex to ensure that the listed engineering companies benefit a lot out of this promise.

Import threat remains omnipresent and the Govt’s thrust on PLI is likely to take some time before coming into effect.

Q) Any new age developing themes which investors can look at for next 2-3 years? And the ones which one can avoid amid high valuations?

A) New age companies whose business models are unclear or sketchy and businesses that require frequent fund infusion can be avoided. Also, the themes where the entry barriers are not large can be avoided.

The new-age businesses could see competition emerging from investors with deep pockets who want to offer a well-rounded experience or from new innovation whereby the core business moat gets threatened.

New age businesses came out with IPOs at valuations that discount the upside in the business of the next 5-7 years leaving little on the table for new investors.

Pricing in most new age IPOs was not in sync with the prospects of the company.

The fact that the IPO investors have been allotted shares at a much higher price than the last round of funding by PE/VC investors a few quarters back also leave a bad taste and IPO investors end up taking much higher risk than the so-called risk investors (PE/VC).

The high valuation has been aided by multiple rounds of funding by VC/PE investors who raise the valuation of the entire company by putting incrementally smaller sums at high valuations in each subsequent round.

Investors who put money in such IPOs should restrict the amount to be invested in each such IPO and keep a stoploss in terms of absolute loss per IPO if they do not have any medium-term conviction on the business prospects of the company.

Investing in such high-priced IPOs pays off only in times of bubbly market conditions; investors should keep this in mind.

Having said that themes like EV, Green energy, Digital are some which can be tracked by investors for investment provided the entry valuation is reasonable and not out of whack.&nbsp;&nbsp;

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

Deepak Jasani, Head of Retail Research, HDFC Securities said that as interest rates go north, growth stocks could become less attractive especially if they fail to deliver on the high expectations of growth in top and bottom line.


Dalal Street Voice: As interest rate go up in 2022 growth stocks could become less attractive: Deepak Jasani of HDFC Securities

Indian market started off on a strong note but persistent selling by foreign investors as well as rising geopolitical concerns dented sentiment and pushed benchmark indices in red for the year 2022.&nbsp;&nbsp;

The S&amp;P BSE Sensex fell 0.7 per cent, while the Nifty50 is down 0.4 per cent so far in the year 2022, data as on 18 February showed.&nbsp;&nbsp;

However, investors who have a long-term horizon can look at putting fresh money into equity markets now or on dips as the structural trend still remains to be on the upside.&nbsp;&nbsp;

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The S&amp;P BSE Sensex could well surpass its peak of 62245 and head towards 66,000 while Nifty50 could also surpass 18,600 and hit 20,000, said a report.&nbsp;&nbsp;

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Most of the volatility is seen in Indian markets is largely on account of external events. The commentary from Budget 2022 as well as the Reserve Bank of India (RBI) highlighted that the government wants growth.&nbsp;&nbsp;

Once we find some stability. the focus will shift back to earnings. Global as well as Indian equity markets have been quite volatile in the recent past, primarily tracking inflation-led interest rate hike outlook by global central banks, geopolitical tensions, and rise in crude prices.&nbsp;&nbsp;

“Corporate earnings, a true barometer of the health of the market, on the other hand, have been quite resilient with growth momentum continuing unabated,” ICICIdirect said in a report.&nbsp;&nbsp;

“FY23E estimates remain unchanged at Rs 815/share. Incorporating FY24E numbers, we expect Nifty earnings to grow at over 20% CAGR over FY21-24E,” it said.&nbsp;&nbsp;

Keeping our index targets intact ICICIdirect now value the Nifty at 20,000 i.e. 23x PE on FY23-24E average EPS of | 870/share, and about 66,600 for the S&amp;P BSE Sensex.&nbsp;&nbsp;

What should investors do?&nbsp;&nbsp;

The December quarter earnings were strong and most of the micro and macro indicators suggest that economic growth is likely to remain strong – investors should not miss out on the opportunity to buy the dip.&nbsp;&nbsp;

ICICIdirect in the report said that the management commentary is optimistic and hopeful of a strong rebound, going forward. Other macroeconomic indicators viz. GST collection, e-way bill generation, advance tax collection, etc, also point to a better-than-expected economic rebound.&nbsp;&nbsp;

The shot in the arm is the capital expenditure outlay in Union Budget 2022-23 (Rs 7.5 lakh crore, up 35% YoY) that is expected to have a multiplier effect across the domestic economy.&nbsp;&nbsp;

At the Nifty index level, on QoQ basis, sales, PAT growth for Q3FY22 is pegged at 11%, 9% respectively, highlighted in the ICICIdirect note. On a YoY basis, growth is even more stupendous at 25%+ each tracking commodity price-led benefits in metals and oil &amp; gas space.&nbsp;&nbsp;

“We believe that the present market volatility offers an opportunity to build a long-term portfolio of quality companies, which have lean b/s, are capital-efficient &amp; have growth longevity,” it said. Bet on Capex linked capital goods, commercial vehicle space and PLI oriented domestic manufacturing play&nbsp;&nbsp;

Preferred Investment Destination:&nbsp;&nbsp;

Foreign portfolio investors (FPIs) have withdrawn a net Rs 18,856 crore from the Indian markets in February so far amid geopolitical tensions and chances of a rate hike by the US Federal Reserve. This is the fifth consecutive month of foreign fund outflows, PTI reported.&nbsp;&nbsp;

<a href="https://www.zeebiz.com/india/news-fpis-pull-out-rs-18856-cr-from-indian-markets-in-february-so-far-179217">Also Read: FPIs pull out Rs 18,856 cr from Indian markets in February so far&nbsp;</a>

But experts feel that outflows are temporary and flow will reverse as India is still the preferred investment destination amid strong macros and expectations of double-digit earnings growth, suggest experts.&nbsp;&nbsp;

“The market welcomed the bold CAPEX-oriented budget and reacted positively post the announcement. However, FPI outflow continues to impact near-term performance and exert pressure,” Mitul Shah, Head of Research – Institutional Desk at Reliance Securities, said.&nbsp;&nbsp;

“Going forward we expect this volatility would settle in the next 1-2 months and FPI inflow would begin in FY23. We expect Indian equities to outperform with double-digit returns. Our year-end 2022 target for Nifty is 20,000 at 22x FY24E earnings,” he said.&nbsp;&nbsp;

Shah expects the Nifty to enjoy premium valuation for the next 1-2 years on the back of higher earnings CAGR (before reaching a stable earnings pace of growth), as India becomes a preferred destination for global manufacturing, going ahead.&nbsp;&nbsp;

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers consult with their investment advisers before making any financial decision.)&nbsp;

Indian market started off on a strong note but persistent selling by foreign investors as well as rising geopolitical concerns dented sentiment and pushed benchmark indices in red for the year 2022.&nbsp;&nbsp;


Even as Sensex turns negative so far in 2022, index likely to test 66,600 by FY24; Stay Put says ICICIdirect

Indian market closed in the red on Friday for the third consecutive day in a row weighed down by muted global cues. The Nifty50 failed to hold on to 17300 levels.

Sectorally, buying was seen in capital goods, banks while selling was seen in realty, oil &amp; gas, healthcare, energy, and telecom stocks.

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Stocks that were in focus include Coal India which closed with gains of over 2 per cent, Quess Corp rallied over 8 per cent and India Cements rose over 3 per cent on Friday.

Here's what Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd, recommends investors should do with these stocks when the market resumes trading today:

Coal India: Hold

On the daily charts, the stock is holding a higher bottom formation but from the last couple of weeks, the stock is hovering in the range of 160 to 170.

Currently, the stock is witnessing a non-directional activity. It looks like traders are waiting for an either side breakout.

A fresh technical breakout is possible if the stock closed above 170 levels.&nbsp; And if the stock manages to close above the same then we can expect a quick uptrend move towards 175-177.

On the flip side, if the stock trades below 163 or 20-Day SMA, the weakness may extend towards 158.

Quess Corp: Avoid

After a sharp correction, the stock took the support near 575. In this quarter so far, the stock corrected over 25 per cent. The stock is now witnessing a promising pullback rally.

From the lowest level of 575, it has recovered over 13 per cent. The incremental volume activity and reversal formation indicates a further uptrend.&nbsp;&nbsp;

We are of the view that the medium-term trend is still weak, but in the short run, pull-back-formation is likely to continue, if it succeeds to trade above 620.

On the higher side, 680 and 690 would act as an immediate hurdle for the traders.

India Cement: Buy

After a medium-term price correction, the stock took support near 200-Day SMA. The promising reversal formation near 200-Day SMA indicates a short-term uptrend.

On Friday, despite tepid market conditions, India Cement Ltd maintained positive momentum and rallied over 4 per cent.

The short-term texture is bullish, and the trend decider level is 200-202. A close above the same could take the stock towards 225-230.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

Indian market closed in the red on Friday for the third consecutive day in a row weighed down by muted global cues. The Nifty50 failed to hold on to 17300 levels.

&nbsp;


Buy, Sell or Hold: What should investors do with Coal India, Quess Corp and India Cement?

Indian market closed in the red for the second consecutive day on Thursday following muted global cues.

Sectoral buying was seen in power, utilities, energy, oil &amp; gas, and capital goods while selling was visible in banks, healthcare, and telecom space.

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Stocks that were in focus today included KRBL which closed over 6 per cent lower while, ITI Ltd fell more than 5 percent. Eveready Industries closed with gains of over 8 percent on Thursday.

Here's what Mazhar Mohammad, Chief Strategist – Technical Research and Trading Advisory, Chartviewindia.in, recommends investors should do with these stocks when the market resumes trading today:

KRBL: Avoid fresh positions

This counter appears to have remained a complete underperformer with an intermediate top around 339 levels. Moreover, on long-term charts, it seems to have carved out a large trading range in the zone of 339 to 173 levels.

As this counter, registered a fresh breakdown on daily charts it can initially extend the weakness towards 173 levels.

Therefore, fresh positions should be avoided and any pullback towards 200 levels shall be used to sell existing positions if any.

ITI: Avoid

This counter seems to be in an intermediate downtrend, since the high of 143 registered in July 2021.

Moreover, it has strong support around 107 levels and a close below this can amount to a fresh breakdown with an initial target of 102 levels.

Any stability around current levels may take this counter towards 121 to 125 levels. For time being it looks prudent to avoid this counter.

Eveready Industries: Buy on Dips

This counter seems to have resumed its up move after culminating its corrective and consolidation phase from the highs of 413 registered in August 2021.

However, sharp raise of the last 4 sessions from the lows of 279 to 354 may result in profit booking which should be used as an opportunity to create fresh long positions.

Sustaining above 317 levels it can eventually head higher towards 383. Existing investors can hold their positions with a stop below 317 levels whereas fresh buying can be considered on a dip into the zone of 328 – 322 levels.&nbsp;&nbsp;

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

Here's what Mazhar Mohammad&nbsp;recommends investors should do with these stocks when the market resumes trading today.


Buy, Sell or Hold: What should investors do with KRBL, ITI and Eveready Industries?

The telecom sector has shown resilience in the past few weeks amid rise in volatility, but Reliance Industries has remained resilient and is a preferred proxy plays for the sector.

The stock has risen 18 per cent in last one year compared to 14 per cent upside seen in Nifty50 in the same period.

Reliance Industries is one of India’s biggest conglomerates with a presence in oil refining and marketing and petrochemicals (O2C), oil &amp; gas exploration, retail, digital services, and media, etc. making it a well-diversified business entity.

At the EBITDA level in 9MFY22, O2C and oil &amp; gas contributed 50% while retail, digital, and others contributed 10%, 34%, and 6%, respectively, ICICIdirect said in a report.

RIL with a market capitalization of more than Rs 16.5 lakh cr hit a 52-week high of Rs 2750 on 19 October and post that the trend went sideways.

However, the stock has been finding support near the 52-week EMA to form a triple bottom pattern on weekly charts which suggests strong base formation.

Strong base at the 52 weeks EMA coincided with change of polarity zone of 2300 (base level). A breakout from this level suggests a higher target of Rs 2670 that translates into an upside of Rs 2412 that translates into an upside of over 10 per cent, suggest experts.

A triple bottom is considered a bullish chart pattern in technical analysis which is formed when the stock price bounces back three times from a similar price level on three different occasions.

The stock rose a little over 2 per cent in last week but fell nearly 4 per cent in 1-month, Trendlyne data showed compared to 0.4 per cent fall in a week, and nearly 5 per cent decline seen in a month in Nifty50 in the same period.

The stock is trading above crucial short-term moving averages such as 30, and 50-DMA. However, it is still trading below the 100-DMA placed at 2472, data from Trendlyne showed.

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“The telecom sector has shown resilience despite recent elevated volatility. One of the preferred proxy plays for the sector is Reliance Industries, which has formed a potential triple bottom at 52 week’s EMA,” Pankaj Pandey, Head – Research at ICICI Securities Limited, said.

“Over the past three months, the stock has retraced 61.8% of August-October 2021 rally (2016-2751) at 2300. A slower pace of retracement indicates inherent strength,” he said.

Pandey believes that the recent higher base formation has set the stage to resolve higher and head towards Rs 2670 levels as it is the 80% retracement of secondary correction (2751-2247).

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

Reliance Industries is one of India’s biggest conglomerates with a presence in oil refining and marketing and petrochemicals (O2C)


Technical Check: This proxy play in telecom space forms triple bottom pattern; experts see 10% upside

Mitul Shah Head of Research – Institutional Desk Reliance Securities Ltd expects the Nifty50 to enjoy premium valuation for the next 1-2 years on the back of higher earnings CAGR (before reaching a stable earnings pace of growth), as India becomes a preferred destination for global manufacturing, going ahead.

Shah has over 17 years of work experience in the industry. He has been actively tracking auto and auto Ancillary companies for the past 11 years as a Lead Analyst.

Indian equities are likely to outperform with double-digit returns, Shah said in an interview with Zeebiz's Kshitij Anand. Our year-end 2022 target for Nifty50 is 20,000 at 22x FY24E earnings. Edited excerpts:

Q) RBI's dovish stance and status quo on interest rates was a welcome surprise for markets. What rate trajectory do you foresee in near future?

A) The MPC [Monetary Policy Committee] kept the key policy rates unchanged and maintained its focus on the economic growth revival by continuing with the so-called ‘accommodative’ stance.

During an accommodative monetary policy, a rate hike is ruled out. The policy is largely a non-event for markets and only suggests the continuation of the growth-supportive policy stance.

The central bank sees inflation below 5% for FY23 is a key positive which was cheered by the market on that day.

Q) The Indian market picked up momentum post Budget 2022 after initial US Fed jitters stabilized. What are your views on markets for 2022? What will be the next trigger for markets?

A) The market welcomed the bold CAPEX-oriented budget and reacted positively post the announcement. However, FPI outflow continues to impact near-term performance and exert pressure.

Going forward we expect this volatility would settle in the next 1-2 months and FPI inflow would begin in FY23. We expect Indian equities to outperform with double-digit returns. Our year-end 2022 target for Nifty is 20,000 at 22x FY24E earnings.

We expect Nifty to enjoy premium valuation for the next 1-2 years on the back of higher earnings CAGR (before reaching a stable earnings pace of growth), as India becomes a preferred destination for global manufacturing, going ahead.

This trend would continue over the next 4-5 years, supported by the China+1 policy and the government’s support for various industries.

Q) Budget 2022 was focused on boosting growth – do you see sectoral rotation taking place? Which should long-term investors focus on?

A) The pro-growth Union Budget was on sustaining growth momentum and job creation. The finance minister tried to ensure all necessary measures to support development activities by sharply increasing capital expenditure by 35% for FY23E, along with a higher allocation for infrastructure projects.

PM GatiShakti is a transformative approach for economic growth and sustainable development. The approach is driven by seven engines, namely, Roads, Railways, Airports, Ports, Mass Transport, Waterways, and Logistics Infrastructure.

All seven engines will pull forward the economy in unison. We expect the long-term focus to shift on cyclical including capital goods and Infrastructure from defensive sectors like FMCG.

Most importantly, Rs195bn of additional allocation for PLI for manufacturing high-efficiency solar modules has been provided. This would create new-age infrastructure for green energy and EV ecology over the next decade. We believe that renewable energy and EV ecology would be themes of the next decade.

Q) Which theme will dominate markets in 2022 – value or growth? We saw a lot of liquidity chasing many mid and small-cap stocks in 2020-2021 to tap growth. What are your views?

A) While the government has focused on sunrise sectors with due importance to support climate change, it received the maximum allocation. Renewable energy, electric mobility, and infrastructure development have received the maximum attention.

The government would frame a Battery Swapping Policy to allow EV charging stations for automobiles as a step towards rapid electrification.

Besides, the private sector will be encouraged to create sustainable and innovative business models for battery and energy as a service, improving the efficiency in the EV ecosystem.

All these initiatives would support small and medium-sized companies going forward. Therefore, we expect midcap to outperform large-cap in 2022.

Q) Crude seems to be on the boil. What is your call on the commodity market in 2022?

A) We expect commodity prices to remain firm over the next 3-4 months amid high-level uncertainty globally and demand-supply mismatch.

However, going forward by mid FY23, we expect commodity prices to soften and correct from the current high levels. Such a record high level of commodity prices is not sustainable.&nbsp;&nbsp;

Q) Given the government's focus on pushing CAPEX are there sectors which are poised for re-rating

A) Government's focus on CAPEX and investments could lead to re-rating in the capital goods and infrastructure sectors.

Most importantly, Rs195bn of additional allocation in PLI for manufacturing high-efficiency solar modules would support the renewable energy sector.

Q) Any new age developing themes that investors can look at for the next 2-3 years? And the ones which one can avoid amid high valuations?

A) We expect new age sunrise sectors with due importance to support climate change to receive the maximum allocation which is likely to outperform the market going ahead.

Renewable energy, electric mobility, and infrastructure development have received the maximum attention.

On the other hand, few recently listed unicorns and new-age technology-based companies are trading at stretched valuations despite recent price corrections.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

Mitul Shah&nbsp;expects the Nifty50 to enjoy premium valuation for the next 1-2 years on the back of higher earnings CAGR, as India becomes a preferred destination for global manufacturing, going ahead.


Dalal Street Voice: Mitul Shah of Reliance Securities sees Nifty50 at 20,000 by December-end

Indian market pared gains of Tuesday and closed lower on Wednesday . The S&amp;P BSE Sensex fell more than 100 points while the Nifty50 managed to hold on to 17300 levels.

Sectoral buying was seen in telecom, realty, consumer durables, and oil &amp; gas stocks while selling was visible in metals, banks, capital goods, and public sector.

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Stocks that were in focus include GMDC which closed with gains of nearly 3 per cent. Meanwhile, RHI Magnesita rose nearly 4 per cent and Mirza International closed with gains of over 10 per cent on Wednesday.

Here's what Santosh Meena, Head of Research, Swastika Investmart Ltd, recommends investors should do with these stocks when the market resumes trading today:

GMDC Ltd: Buy

The counter has a strong bullish setup where it has given a breakout from a Flag formation. It has retested its previous breakout level after hitting a fresh 52-week high.

On the upside, 156 is an immediate trendline resistance area; above this, we can expect a run-up towards 180 level in the near term, Meena said. On the downside, Rs 120 is major support at any correction.

RHI Magnesita Ltd: Buy

The counter is in a classical uptrend and witnessed a breakout of triangle formation with strong volumes. The overall structure is very bullish as it trades above its all-important moving averages.

The pattern suggests immediate targets of Rs 600, while it has the potential to move further upside.

On the downside, Rs 450 will act as an immediate support level. MACD (Moving average convergence divergence) is supporting the current strength.

Mirza International: Buy

The counter has witnessed a breakout of flag formation on the weekly chart however it has given a meaningful correction to retest the previous breakout level of 134 after making a 52-week high.

Now, it is starting the next leg of a rally where 190 is an immediate multi-month resistance level; above this, we are expecting a move towards the 220+ level. On the downside, Rs 128 is major support at any correction.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

&nbsp;

Sectoral buying was seen in telecom, realty, consumer durables, and oil &amp; gas stocks while selling was visible in metals, banks, capital goods, and public sector.


Buy, Sell or Hold: What should investors do with GMDC, RHI Magnesita and Mirza International?

Value of promoter pledged holding as a percentage of promoter holding increased to 1.6% in December 2021 quarter from 1.5% in the September quarter, data from Kotak Institutional Equities said in a note.

However, on a year-on-year basis, the promoter pledged holding as a percentage of promoter holding has come down.

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The aggregate pledged shares as a percentage of total promoter holding and of total holding in value terms (%) stood at 2.09 per cent at the end of December 2022 quarter, and 2.28 per cent at the close of the December 2019 quarter, data showed.

Promoters of 78 companies in the BSE-500 Index had pledged part of their holdings in the December 2021 quarter.

The value of pledged promoter holdings was Rs1.97 tn at the end-December 2021, which is about 0.81% of the total BSE-500 Index’s market capitalization, the report showed.

Promoter pledge is an important parameter used by analysts to gauge the health of the company but pledging of shares does not necessarily imply that a company or a promoter is under financial stress.

Banks (lenders) could have sought additional security in the form of promoter shares, said the Kotak note.

Companies in which promoters increased their pledged holdings in the December quarter on a QoQ basis include names like Max Healthcare, Solara Active Pharma Science, and Strides Pharma Science.

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There are 7 companies in which promoters reduced their pledged holdings including names like HFCL, Delta Corp, Sun Pharma, NOCIL, Ashok Leyland and Emami.

Companies whose promoters pledged more than 90% of their holdings in the BSE500 index at the end of the December quarter include names like Thyrocare Technologies.

Companies whose promoters pledged 40-90% of their holdings in the BSE500 index include names like Jindal Steel &amp; Power, Max Healthcare, IndusInd Bank, Wockhardt, SpiceJet, Max Financial Services, and Kalpataru Power etc.

Fresh promoter pledges in the December quarter were seen in companies like Max Healthcare, IIFL Wealth, Bajaj Electricals and Gujarat Fluorochemicals, highlighted the report.

Companies in which promoters released entire pledged holdings: HFCL and Delta Corp.

Companies in the Nifty-50 with more than 5% of pledged promoter holdings: Adani Ports &amp; SEZ (15.3%), Asian Paints (7.6%), IndusInd Bank (45.5%), and JSW Steel (17.8%).

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

&nbsp;

&nbsp;

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Value of promoter pledged holding as a percentage of promoter holding increased to 1.6% in December 2021 quarter from 1.5% in the September quarter, data from Kotak Institutional Equities said in a note.

&nbsp;


These 15 companies in BSE 500 firms increased their promoter pledge holdings; know what it means for investors

Indian market recovered most of the previous day losses on Tuesday tracking positive global cues. The S&amp;P BSE Sensex rallied over 500 points while the Nifty50 closed above 17350 levels.

Sectorally, buying was seen in auto, banks, consumer discretionary, telecom, consumer durables, and IT stocks.

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Stocks that were in focus include Manappuram Finance which closed with losses of over 10 per cent, Zomato closed flat after hitting a 52-week low and Coffee Day rose 10 per cent on Tuesday.

Here's what Vijay Dhanotiya Lead of Technical Research, CapitalVia Global Research Limited, recommends investors should do with these stocks when the market resumes trading today:

Manappuram Finance: Avoid

Manappuram has broken the previous support levels near 140 and closed below the support levels. The next support level is around Rs 80 and hence we don’t recommend investors to buy Manappuram at these levels

Zomato: Avoid

Zomato has been trading at its lowest levels and is constantly trading at the lowest levels. We do not recommend buying ZOMATO at these levels.

Coffee Day Enterprises Ltd: Buy

Coffee Day Enterprises has reversed from the previous breakout levels, and it also has a support of 40 EMA. We have observed indicators like RSI and MACD indicating reversal from these levels.

We recommend a buy in Coffee Day near the levels of 62 with a target of 90, and a stop loss can be placed below 48.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

Indian market recovered most of the previous day losses on Tuesday tracking positive global cues.&nbsp;


Kshitij Anand