Is the Sony-Zee merger in jeopardy? That might be the case, according to a Bloomberg report.
Get all your stock-related queries answered by our technical and fundamental guests with Smriti Chaudhary on Ask Profit. #NDTVProfitLive
Get all your stock-related queries answered by our technical and fundamental guests with Smriti Chaudhary on Ask Profit. #NDTVProfitLive
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00:00 Sahina Mukadam, she's an independent market expert along with Nirav Chheda of Nirmalbang
00:08 Securities. Welcome Nirav and Sahina. Hope you're good. And we'll start off with the
00:17 questions in just a bit. But before that, let's take a quick look at the markets. Nifty
00:22 and the benchmarks are buzzing today in green up about 8/10 of a percent and the broader
00:31 markets the Nifty 150 index is half a percent up. Nifty small cap is at par with the benchmark
00:38 indices. So that's how the market overall looks right now. But if we look at the Nifty
00:44 50 constituents, we have Adani Enterprises and Adani Ports taking the cake there up and
00:54 followed by L&T and Infi also up in trade today. Couple of losers there ONGC along with
01:00 the Britannian Ultratech. So that's how the Nifty 50 looks at this juncture. Among the
01:06 sectors Nifty IT is buzzing today up over 1%. Actually most of the sectors are in green
01:12 today. So apart from media that's down 2% more than 2% actually 3% in trade down today.
01:21 That's the only losing sector. And from there we'll go on to the focus of today which is
01:26 Zee Entertainment. Now the stock is down 10% in trade today after media reports suggest
01:33 that there may be a breakdown of the Zee Sony merger. While there is no clarity or an official
01:39 word on this from either parties, the market is still reacting quite negatively to the
01:46 news. So Shaheena, I'm going to come to you on this. If the talks eventually break down,
01:54 how does it look for Zee in particular? Doesn't look like a very positive road from here on.
02:04 I totally agree with you. In fact, I'm so disappointed. I personally hold the stock
02:08 and for quite some time. So though it has performed a bit in the last year or so, but
02:16 for the long term investor, it's been a very big disappointment. As an investor, what I
02:21 would probably do is sell half my holdings because this is a very risky development.
02:29 And maybe the second half, one just needs to wait and watch what happens. At the same
02:36 time, I would not advise any fresh investment because the timeline that we're hearing, now
02:42 there's no confirmed news, the timeline that we're hearing where Sony may actually say
02:49 that they are not going to carry this discussion forward is pretty close, couple of days. So
02:54 I think it's extremely risky and no fresh investment, I would advise at current levels.
02:59 All right, we might get clarity on this in the next couple of days. But until then, let's
03:07 start off with the questions. And the first one is from Padman Bhan. I hope I'm saying
03:14 that right. And he's talking about Angel One. Now Nirav, tell us a little bit about how
03:19 Angel One looks on the charts. And would you still suggest buying into the stock at this
03:26 juncture?
03:27 Yeah. Hi, everyone. Thank you for having me on the show. See, Angel One has had a dream
03:37 three to six months, actually. Ever since it broke out about its range, it was in consolidation
03:46 for about a couple of years and the range breakout came in around that 1700 odd levels.
03:52 It has more than doubled from there, you know, within from June 2023 to up to now. So, you
03:59 know, within six months, it has doubled. Even at current juncture, you know, there is no
04:06 stopping the stock. The overall pattern is still positive and there's no topping out
04:12 formation that is seen. Volumes are still sustainable. The indicators are still obviously
04:19 on the overbought zone, but they're not showing signs of weakness at this point of time. So
04:25 you can continue to hold on to your longs and probably, you know, if you get a fall
04:29 up to the 3600, 3640 odd levels, up till then, you know, you can look to buy again. So, you
04:37 know, for me, the target comes to around 4200 odd for this stock from a near-term perspective.
04:44 So for that target, you can look to hold on.
04:47 All right. Shaheena, what about the longer term for Angel One? Now, it has given about
04:51 more than 100% returns, close to 195% returns in the last one year. Now, even though the
05:00 fundamentals look really strong, it has come out with the earnings, the previous earnings
05:05 look quite strong. But in the longer term, do you still see an upside from here on?
05:12 I believe so. I think they are got a very, very good tech platform and they have done,
05:19 they are doing pretty well, as you mentioned, last quarter numbers. And in terms of valuation,
05:23 it is now slightly expensive. But I think any dips should be used to add positions because
05:30 it looks good for the longer term. I think they're doing pretty well in terms of growth
05:34 and market share.
05:35 Right. Next up, we have a question from Kailash. He's writing to us on WhatsApp from Nagpur.
05:41 He's talking about Nestle. Now, he is asking a short-term view on Nestle, the stock. He
05:47 says that the stock has been sliding after the split. Now, that's kind of expected when
05:53 a stock split happens. But how does Nestle look on the charts, Nirav?
05:58 Yeah. See, the overall trend is positive. No doubt, there has been corporate action
06:06 and the stock from 25,000 odd levels has become a 2,500 odd stock. So this is expected, as
06:16 you said, it can probably come back to its mean, which is around the 2,500 level, which
06:22 is the 50-day moving average. So from a near-term perspective, that is a good level to buy.
06:29 So if you're holding on, it is already broken down below 26,000, which was a support area.
06:36 So now the next real support is around the 2,500 odd level. So look to buy again around
06:42 those areas with a stop-loss of 24,50.
06:45 Right. Next up, we have a question from Rakesh Panawali from Dubai. He's talking about two
06:53 counters now. One is Mother-Son Sumi Wiring that he bought at 65 levels and Electra Green
06:58 Tech that he bought at 1,252 levels. In these two stocks, he's asking if he should continue
07:05 holding these two or should book profits. Shaheena, based on the fundamentals, what
07:09 would you suggest?
07:10 I think both the stocks are decent stocks to be invested in for the medium to longer
07:16 term. Wiring has done pretty well in terms of growth and I think they are getting good
07:21 orders also. So one can remain invested. Valuation is also pretty decent. As far as Electra Green
07:28 goes, there I think, while if you look at it in the short-term valuation, it looks expensive,
07:35 but since the growth, they are doubling their profitability, their turnover. So I think
07:40 they have got very good order book also. So to an extent, if you are a longer-term holder,
07:44 I think one can continue holding. In the medium term, it could consolidate, but it is a stock
07:50 where one can continue holding.
07:52 Right. Next up, we have a question from Mitesh. He's writing from West Bengal. He's talking
07:58 about R Power, Reliance Power. Now, he wants to know if this is a good time to enter the
08:03 stock. Nirav, how does it look in the charts? Would you suggest buying at this juncture?
08:07 The stock is under a little bit of pressure today.
08:10 See, taking nothing into perspective from the fundamental side, just looking at the
08:18 chart, it is a screaming buy. This is one formation that you need to buy. And I do believe
08:27 this stock can move up towards the 55-60 levels and probably within no time. The overall volume
08:34 profile of the stock, the overall reversal has been in place and it is a tremendous pattern
08:40 at this point of time. Just take out the name and look at the pattern. It is a beautiful
08:45 pattern. So I definitely believe this is one stock which needs to be bought at current levels.
08:52 Keep an appropriate stop loss of around 27 for your launch. If that goes, just exit it.
08:58 But the volumes also are very terrific. Just go ahead and buy it. 55-60 are coming soon.
09:06 Next up, we have a question from Siddharth from Mumbai. He's talking about Easy Trip
09:10 Planners. He bought at 42 levels. The stock is trading 5% higher, around 45 levels. He
09:19 wants a long-term view for this. So, Shaheen, how does it look for the longer term based
09:23 on the fundamentals, Easy Trip Planners?
09:26 Easy Trip Planners is one of the cash-making, I would say they are making profits even on
09:32 the cash level. So it is one of the platform stocks that I like. Valuations are decent.
09:38 So I think one can be invested in this stock for the longer term.
09:42 All right. Next up, we have a question on YouTube. This one is from Navadit. He's talking
09:47 about Dr. Lal Patlabs and he wants a short to medium-term view. Neeraj, now we have already
09:54 seen a little bit of positivity in the pharma space, but specifically on this stock, how
10:00 does it look on the charts?
10:03 It's decent, but I don't think in the near term, this stock will move up quite much.
10:12 Probably in the medium term, it should move up. But this stock has a resistance around
10:18 that 2750-2770 zone. And that is where every time this stock keeps coming down from those
10:25 levels. So until it really moves up above that 2770 odd levels, I don't think much of
10:33 buying aggression will come in. So at this point of time, I would avoid the counter.
10:38 I'll buy only above the breakout and then ride a target of around 3200 to 3300 within
10:45 a very near-term perspective.
10:47 Would you give a stop loss if they're already holding the stock?
10:51 Yeah, the stop loss would be 2470.
10:55 Got it. Okay. Next up, we have a question from Aditi and she's talking about Praj Industries.
11:00 She's bought the stock at 428 levels. And if you look at how currently the stock is
11:07 faring, it's around 540 levels. Shaheen, how does it look? It looks like considerable profit
11:14 for Aditi there.
11:15 Well, it's a smaller stock in the overall equity universe. At the same time, I think
11:24 there's a lot going for it because you have distillery capacity that is being added continuously.
11:30 There is a government push towards increasing the composition for mix on petrol-diesel.
11:42 So I think to that extent, Praj Industries does get good orders. I would continue holding
11:47 the stock for the medium to longer term.
11:49 Fair. Next up, we have a question from Hemu. He's talking about Suvain Life Sciences and
11:54 he wants a target for the stock. So, Nirav, any sort of six-month or one-year targets
12:01 that you have on the stock?
12:02 Yeah. So, there are two Suvains actually. One is Pharma and one is a different one which
12:10 is trading at 100 odd. Which one are you talking about actually?
12:14 In Life Sciences.
12:15 So, I think it's the 100 one.
12:18 Yes, it's trading around Rs. 105, up about 4.5% right now.
12:25 So, see, this stock has a history of long consolidations and then huge breakouts post
12:33 it. So, another long consolidation has taken shape. It has broken out above and now a very
12:44 important resistance is likely to be broken, which is around that 115 odd zone. Even though
12:52 near-term breakout is in place, I definitely believe 115 will come. But once 115 is broken,
13:00 you might see a big move in the stock and it can probably even double from there. So,
13:05 yeah, that's a longer-term perspective. From a near-term perspective, at 115, book some,
13:11 wait for the breakout and then you can probably aggressively again add the stock. You can
13:17 keep a stop loss of about 96 on a trailing basis till then.
13:23 All right. We'll slip into a short break right now, but we'll take more questions on the
13:29 other side. Stay tuned.
13:30 Thanks, everyone.
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16:17 Thanks, everyone.
16:34 Welcome back. You're watching Ask Profit. Let's begin with the queries. The next one
16:40 we have is on Tata Steel. This one's from Pandhari and his average buy price for Tata
16:45 Steel is 126. He wants to know if he should continue holding the stock or should he sell
16:51 it. Now, based on the fundamentals, Shaheena, what's your view on Tata Steel for the longer
16:55 term?
16:56 He should continue holding. You know, after the decline that we saw last year in steel
17:02 prices, they're consolidating as of now. And while I feel that the stock may consolidate
17:08 for some time in line, I think the demand scenario is pretty good and it is one of the
17:13 best in the space. So one should continue holding Tata Steel for the medium to longer
17:19 term.
17:20 Right. And for the shorter term, Neerav, how does it look on the charts?
17:24 I think I concur with my colleague, Dev. I believe a breakout has come in and the breakout
17:33 is above that 120-odd zone. So I think he's bought it just above the breakout level only.
17:39 It can now move up towards that 150-160-odd zone from a near-term perspective. Overall
17:46 setup is still positive. Volumes are nice as well. Importantly, if you look at the derivatives
17:52 data in this, the open interest is quite low. So not many people are holding it. So follow-up
17:58 selling is unlikely to come in. I believe this stock is headed upwards.
18:03 All right. We're getting updates on the Zee Sony merger deal and we have Tamanna joining
18:10 us today to talk about us. Tamanna, what's happening there? We've already seen the stock
18:15 tank 10%.
18:17 So the stock has seen a big hit because of a Bloomberg story that we covered first on
18:22 NDTV Profit yesterday that said that Sony is looking to call off the deal. Now, sources
18:28 close to the deal have told me that good faith negotiations are very much on. So they're
18:34 reiterating that the story is not closed as far as the Zee Sony merger is concerned because
18:40 good faith negotiations are on. Now, technically the last date of the deal has been extended
18:45 to the 20th of January. But seen in light of what the reports were yesterday that Sony
18:52 has sort of made up its mind, it's important to note that negotiations are still on.
18:57 The other part of the whole story is, and what these sources are telling me, is that
19:02 the deal could still go either way. It's not a done deal one way or the other. The tussle,
19:08 of course, remains that Sony is keen to go ahead with the merger. The question is about
19:13 Mr. Puneet Goenka at the helm of affairs. And what they're trying to say is that Puneet
19:18 Goenka is not fighting for the chair as is being portrayed, but simply wants what the
19:25 shareholders have approved to be implemented. Now, if you read between the lines at the
19:30 end of the day, what the shareholders have approved and in Zee's reading of the whole
19:35 matter ends up with Puneet Goenka at the helm of affairs, something which Sony is not keen
19:39 on. Having said that, this has been a point of tussle for the longest time between the
19:44 two sides on the entire deal. And this is what will continue to be the issue. Another
19:50 point that is being highlighted is that if this deal falls through or if it doesn't go
19:56 through, it goes back to the drawing board in a sense. You go back for re-approvals to
20:00 all the desks, to all the shareholders as well. So there's a lot at stake. The story
20:05 is very much alive. The last word has not yet been seen on the whole Zee-Sony merger.
20:11 It's a tussle that's going on and it's important for both sides, needless to say. So for Sony
20:17 to also walk away very easily is not the case. They have a huge competition in the face of
20:24 after Jio has taken over Disney Hotstar. So there is a big behemoth waiting in the wings
20:28 and they need to muscle up. So Zee fits in perfectly in that sense. The question about
20:34 leadership of the merged entity still remains in the balance, but negotiations are very
20:38 much on.
20:39 Right. Tamanna, you rightly mentioned that just breaking down the merger based on who's
20:45 going to lead, the analysts also feel that it's a lose-lose situation for both the entities.
20:51 And that's rightly, if Puneet Goenka is not, is okay with stepping down and if that's the
20:59 point of kind of a fight between Sony and Zee, then we'll…
21:06 It's not as simple as saying that. So what they're reiterating is that it's not that
21:11 he's keen to hold on to a chair. So the portrayal is a little different. But what that side
21:18 is sticking to is what the shareholders have agreed to and what the current scheme is.
21:25 And that is what they're holding on to. That work in the interest of shareholders, if you
21:30 call off the deal at this stage is going to be detrimental to shareholders at the end
21:33 of the day. You'll have to go back to the drawing board, go back through the entire
21:37 process. And since this is what the shareholders have decided, why not stick to it? At the
21:41 end of the day, net-net, if it does go through, then Puneet Goenka comes out tops.
21:45 Right. Fair point, Tamanna. Thank you so much for that update. And we'll be bringing you
21:52 more updates as and when we get it. And we still wait for the official word on these.
21:59 Now let's go back to queries. And this one's on Bajaj Consumer. Now they want a short-term
22:06 view on this. And they've bought the stock at 217 levels. This one's from Centel. So
22:13 Nirav, how does it look, Bajaj Consumer, for the shorter term?
22:18 Yeah. So, you know, from the shorter term perspective, a small flag kind of a formation
22:26 was taking shape and a breakout has come in post that. But definitely believe, you know,
22:33 this stock, the volumes are missing and that is a big problem. And, you know, that is why,
22:40 you know, that momentum is not coming. Still, you can hold on to this stock with a stock
22:45 loss of around 219. It's a good support area. This stock can come up slowly and steadily
22:52 up to the 240-245 zone. Once it comes there, look to book profits and go to some other
22:58 stock which is aggressive. This stock isn't aggressive enough at this point of time to
23:03 get very good returns.
23:05 And what about the fundamentals, Shaheena? How does Bajaj Consumer look?
23:10 Is there a small gap in the overall space? They have got good products, definitely. But
23:15 as Nirav has said, they have been a bit slow in terms of capturing the overall market.
23:21 But fundamentally, I still think it looks decent. Valuations also much below the rest
23:26 of the stocks in the group. So, if I am a long-term investor looking for a decent return,
23:31 I would continue holding.
23:32 All right. Next up, we have a question from Sumana Mukherjee from Kolkata. And they are
23:37 talking about amalgamation of TSL and tinplate. They want to know a little bit about it and
23:44 should they enter the stock in the next 6 to 9 months? Shaheena, what's your view on
23:49 this one?
23:50 I didn't get the question actually, stock.
23:55 Amalgamation of TSL and tinplate.
23:57 Sorry, I am not totally on top of this. The outcome of the amalgamation.
24:03 All right. Nirav, for the shorter term, is it a good buy in the next 6 to 9 months?
24:12 In terms of tinplate, yes, it is a good buy. But see again, what is happening on a fundamental
24:19 front, I don't know. Volumes are missing here. I am someone who looks at the volumes very
24:25 closely and I am very comfortable when the volumes are high because that gives us confirmation
24:31 that the trend will take shape and it will continue to move up. But at this point, I
24:37 can only say that breakout has come in at around 435 odd levels. It is very near to
24:44 the breakout, retested it. But it can move up towards that 480-500 band from a near-term
24:50 perspective. Keep very strong stock losses here. 415 should be your stop loss. If it
24:57 goes below, just exit the company.
25:00 All right. Next up, we have a question from Gargi and he is talking about Biocon. She
25:07 wants to know if it still merits a buy at this juncture. Now, if we look at the stock
25:12 performance in the last one year, it has given about 11% gains. Nirav, would you still suggest
25:17 buying the stock?
25:19 Yes, definitely. See, this stock from 2020 onwards, December onwards has done nothing.
25:28 From that sub 450 odd level, it came down towards the 200. Three-year consolidation
25:35 went in. So the consolidation period is over. This stock has broken out above a very, very
25:41 important level of 270 odd. A double bottom kind of a formation also took shape. So, and
25:48 volumes are good. So all in all, everything is in favor of this particular company. And
25:53 I believe probably in the next three to six months, this is the one pharma company which
25:59 will do very well going forward. It can probably come up towards the 375-400 band, even higher
26:05 probably. So, you can continue to hold on if you want to buy. This is a good level to
26:10 buy because that breakout of 270 is very near. It is just coming. So you can keep a stop
26:16 loss of around 265 for your longs and near-term target would be 325 and medium-term, I would
26:24 be holding on for 400 plus.
26:26 On that note, we have to wrap up the show. We're completely out of time. Thank you so
26:31 much, Shaheena and Neeraj for joining us and for answering so many questions. And viewers,
26:37 thanks a lot for tuning in and writing to us. But we'll be back tomorrow, same time
26:40 at 11.30am. Until then, stay tuned.
26:42 [Music]
26:58 [End]