MARKET-HUB
After losing more than 4 percent in
the Budget week, the Indian markets
registered a V-shape recovery in the
post Budget rally amid positive global
cues, falling oil prices, earnings from
India Inc and inline Reserve Bank of
India's Monetary Committee
Policy.The market ended on a positive
note for the first four days of the
week, while with profit booking on
February 7 dragged the Nifty below
12,100 level.
Reliance Infrastructure: Vanguard
Energy Fund sold 20,89,713 shares of
the company for Rs 4.6 crore in a bulk
deal on NSE on February 6.
Indiabulls Housing Finance: Credit
Suisse Singapore sold 40,21,973
shares of the company for Rs 127.1
crore in a bulk deal on NSE on
February 6.
Wipro: Company bagged multi-year
strategic IT deal from Marelli.
Adani Enterprises - Airbus signs
aircraft services MoU with Adani
Defence & Aerospace
Bharti Airtel - DOT has conveyed that
the schemes of arrangement w.r.t.
demerger of consumer mobile
business of Tata Teleservices
(Maharashtra) and Tata Teleservices
have been taken on record
BEML Unveils Latest Products at
DEFEXPO 2020
Adani Transmission's subsidiary
Adani Electricity Mumbai has priced
the issuance of USD 1 billion 10Y
senior secured notes
Minda Industries approved the Draft
Scheme of Amalgamation of Minda
iConnect with the company
Aurobindo Pharma: Q3 profit dips 1
percent to Rs 705.3 cr, revenue rises
11.9 percent to Rs 5,895 cr YoY.
United Bank Q3: Net profit at Rs
113.6 crore versus loss of Rs 1,139.3
crore, NII at Rs 819.4 crore versus Rs
380 crore, YoY
US stocks gained for a fourth straight
session on Thursday and Wall Street's
main indexes hit record highs as
concerns eased over the economic
fallout from the coronavirus outbreak
in China.
Shares of Eicher Motors fell almost 4
percent in morning trade on the BSE
on February 7 a day after the
company had reported a 2.5 percent
decline in its third-quarter standalone
net profit at Rs 488.9 crore.
The market cap of state-run Indian
Railway Catering & Tourism
Corporation (IRCTC) has zoomed
past that of its private competitor
MakeMyTrip during the last week.
Data shows that histoically, the
market cap of the NASDAQ-listed
MakeMyTrip, currently at about USD
2.45 billion (or Rs 17,395 crore), has
been higher than that of IRCTC.
NEWS LETTER
Beyond Research,
Beyond Advice
8th February 2020
Issue – 385
Market News
MARKET-HUB
Results & Corporate Action
MARKET-HUB
Nifty Spot in Last Week:-
As we saw the Price Movement in Nifty Spot in last week that In Upside is
12,160.60 and in Downside 11,614.50.
Nifty Spot in Upcoming Week:-
There is strong Resistance is 12,222 if not close above this level then we will see sell
on rise down side target 12,000 to 11,950 if close above 12,222 then we will new
upside rally 12,500 possibility.
Bank Nifty in Upcoming week:-
There is strong support is 30,500 if not close below this level then we will see upside
target 31,500 to 31,700 level possibility.
Market Technical
Page: - 2
BANKNIFTY WEEKLY CHART
NIFTY WEEKLY CHART
Recommendation for next week
MARKET-HUB
COPPER: - Sell on rise with stop loss 452 down
side target will be 418 possibilities, down side 418
level strong support.
CRUDEOIL: - Buy in deep with stop loss
3,510 upside target will be 3,750 to 3,850
possibilities.
.
.
SILVER: - Buy in deep around 45,200
levels with stop loss 44,100 upside target will
be 47,100 to 47,800 possibilities.
GOLD: - Sell on rise with stop loss 41,100
down side target will be 40,000 possibilities.
Commodity Market
MARKET-HUB
Currency
FUT
LEVEL
DEMAND
ZONE
LEVEL
CLOSE SUPPLY
ZONE
LEVEL
D2 D1 S1 S2
USDINR 71.00 71.20 71.25 71.80 72.20
GBPINR 91.80 92.17 92.55 92.80 93.13
EURINR 77.80 78.20 78.47 78.78 79.00
JPYINR 64.30 64.66 65.21 65.44 65.93
USDINR: - Investors can buy on deep with stop
loss of 71.00 upside target will be 71.80 to 72.00
possibility, sell on rise with sl 72.20 target will be
71.00 possibility.
GBPINR: - Investors can buy in deep with
stop loss of 91.80 upside target will be 93.50
to 94.00 possibilities.
EURINR Investors can sell on rise with
stop loss of 79.40 down side target will be
77.82 possibility.
.
JPYINR: Investors can buy in deep
with stop loss of 64.00 upside target will
be 65.70 possibilities.
-
Currency Market (Future Levels)
MARKET-HUB
Premium / Discount
(USD/ INR) Based on
Forward Rates
Duration Premium
One
month
Forward
0.22
Three
month
Forward
0.42
Six
month
1.22
One year 2.63
RBI reference Rates
Currenc
y
Rates
USD 71.26
GBP 92.52
Euro 78.38
100 Yen 64.82
Currency Corner
MARKET-HUB
How to pick quality stocks using the CANSLIM strategy:
There are many approaches to the investment. For lay man it is difficult to
understand and practice many of such approaches. In that reference it is
important to have an approach which is easy and effective. CANSLIM is
one of them. The detail as appeared on Economic Times is presented here
(Read more at:
https://economictimes.indiatimes.com/wealth/invest/how-to-pick-quality-stocks-using-the-can-
slimtrategy/articleshow/57957480.cms?utm_source=contentofinterest&utm_medium=text&utm_campaig
n=cppst).
With the market hitting new highs, picking stocks has become even more
difficult. Investors also face the eternal dilemma: should they go by the
fundamentals of a company or decide on the basis of technical factors that
help time the market? Putting the two together, say experts, can be a
winning strategy.
“A combination of the two works better. Fundamentals give the conviction
to hold the stock, and technicals provide attractive entry and exit points,”
says A.K. Prabhakar, Head of Research at IDBI Capital Markets. If you
are wondering about how to combine the two approaches, the CAN SLIM
methodology is just the thing for you.
Developed by investor William O’Neil, CAN SLIM is a techno-
fundamental strategy that helps picks quality stocks. This strategy focuses
on companies that show acceleration in earnings because of innovation
and suggests buying them before the stock price witnesses a major spike,”
says Anupam Singhi, Chief Operating Officer, and William O’Neil India
(see graphic). For investors who cannot hold stocks for an extended
period—more than five years—techno-fundamental strategy promises
potentially better returns.
Page: - 3
MARKET-HUB
How the CAN SLIM method works
Focus on both a firm’s fundamentals and market technicals helps pick
quality stocks.
C: Current quarterly earnings of a firm
Growth of at least 25% is a good starting point. Also, look at earnings
acceleration over the last three quarters.
A: Annual earnings growth
Look for annual earnings and sales growth of at least 25% for the past
three years and a return on equity of more than 17%.
N: New product, service or management
The biggest winners of the past had one thing in common: New products,
new services, new leadership, new pricing or a new condition in the
industry.
S: Supply and demandLook for heavy-volume accumulation by
institutional investors, particularly at key moments like when the stock is
breaking above prior resistance levels.
L: Leader or laggard
Buy leading stocks from the leading industry groups.
I: Institutional sponsorship
For a stock to be a top performer, it must have institutional support to fuel
its price movement.
M: Market direction
Three out of four stocks follow the market’s trend, so trade in sync with
the market.
Since its inception three years ago, MarketSmith India Performance Index,
part of William O’Neil India, has been growing at a CAGR (compound
annual growth rate) of 22%. The Nifty has grown by 11% during the same
period—24 March 2014 to 24 March 2017. Like William O’Neil India,
other brokerages, who have relied on techno-fundamental strategies, have
also done well.
CAN SLIM methodology not only helps you pick stocks that have a
greater possibility of seeing a price appreciation, it can help you stop loss
MARKET-HUB
in case a company’s fortunes take a turn for the worse—as was the case
with Satyam. “As advised by CAN SLIM method, cutting losses at 8% can
help investors protect their capital from a huge loss,” says Singhi.
If you want to book profits, especially when a stock you own is up more
than 20% in just a few weeks, but are unsure whether or not to sell, CAN
SLIM can help you make the decision. If the stock is still being bought by
institutional investors, there’s a possibility of further upside to it. In such a
case, say experts, hold it for at least eight weeks, before you decide to sell
it.