Thursday, February 22, 2018

Market Pulse
Domestic stocks nudged lower in early trade on negative Asian stocks. At 9:20 IST, the barometer index, the S&P BSE Sensex, was down 96.74 points or 0.29% at 33,748.12. The Nifty 50 index was down 34 points or 0.33% at 10,363.45.

Trading could be volatile as traders roll over positions in the F&O segment from the near month February 2018 series to March 2018 series. The February 2018 F&O contracts expire today, 22 February 2018.

The S&P BSE Mid-Cap index was down 0.31%. The S&P BSE Small-Cap index was down 0.33%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 849 shares fell and 360 shares rose. A total of 48 shares were unchanged.

Overseas, Asian shares slipped on the risk of faster hikes in US interest rates. US stocks ended a tumultuous session yesterday, 21 February 2018 firmly lower after minutes from the Federal Reserve's most recent policy-setting meeting sparked a fresh wave of volatility. Minutes of the January 30-31 Federal Open Market Committee meeting showed that officials saw a stronger economy than at the end of 2017 and that more rate increases were in the offing.

An index that tracks US manufacturers rose to a nearly 3½-year high in February and a gauge for service-oriented companies hit a six-month peak, according to IHS Markit's flash PMI. The manufacturing index rose to 55.9 from 55.5. The services barometer climbed to 55.9 from 53.3.

Back home, ONGC (down 1.45%), Maruti Suzuki India (down 0.91%) and HDFC (down 0.74%) edged lower from the Sensex pack.

Mahindra & Mahindra (M&M) slipped 0.78%. M&M said that it has signed a share subscription & shareholders agreement and a share purchase agreement for acquisition of up to 1,296 equity shares and subscribing upto 6,074 compulsory convertible cumulative preference shares which on an as-converted to equity share basis, would result in the company holding in aggregate 22.9% of the equity share capital of Carnot Technologies on a fully diluted basis. The announcement was made after market hours yesterday, 21 February 2018.

Carnot Technologies is an Indian company, which provides products and services related to internet connected devices for monitoring performance of vehicles and equipment. It had a turnover of Rs 1.2 crore for FY 2016-17.

Acquisition of shares in Carnot is expected to support company's businesses by developing information technology solutions for its products. The indicative time period for completion of the acquisition is 31 March 2018. The cost of acquisition is Rs 6.06 crore.

Today's Calls:
#Intraday BUY Apollo Tyres Ltd at around Rs.262.25, SL: Rs.258, T: Rs.268-272. You can take delivery position also. 

#Buy Infosys Ltd at around Rs.1154, SL: Rs.1132, T: Rs.1180-1195. You can take delivery positions also.
Infosys  Ltd, a global leader in consulting, technology and next-generation services, has been positioned as a Leader in The Forrester Wave™: Applications Management and Digital Operations Services (AMDOS), Q4 2017. The report published by independent research firm Forrester Research Inc recognizes Infosys with the highest possible scores in the industry momentum, strategy for digital transformation and strategy for personnel criteria.
The Forrester Wave - AMDOS study evaluated 12 top service providers in an in-depth assessment across 26 criteria for capabilities in delivering application management and digital operation services in a growing digital era. These 12 service providers were evaluated under three high-level classifications: current offerings, strategy and market presence.
Moreover a weak INR is likely to push up  most of the stocks in the Information Technology sector and Infosys Ltd being a leader in this field is likely to get 1st mover advantage. Indian IT industry expects to grow exports at 7-9% in the coming fiscal, slightly higher than its expected growth of 7.8% in the current financial year, Nasscom said.

#Intraday buy Biocon Ltd\ around Rs.588, SL: Rs.580, T: Rs.605-609. This is an intraday call and hence don't take delivery positions. Target of Rs.609 has almost been achieved as it made a high of Rs.608.40, till now.

#Buy USD-INR at around Rs.65.00, SL below Rs.64.85, T: Rs.65.30 on T+1 basis.

#The market is likely to recover in the 2nd half and keep your buy positions open albeit with stop losses. 

~~with inputs from Capital Market - Live News..
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