- #Sensex, #Nifty trade flat
- Life insurance companies in focus
Get all your stock-related queries answered by our technical and fundamental guests with Alex Mathew and Smriti Chaudhary on Ask Profit. #NDTVProfitLive
- Life insurance companies in focus
Get all your stock-related queries answered by our technical and fundamental guests with Alex Mathew and Smriti Chaudhary on Ask Profit. #NDTVProfitLive
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TVTranscript
00:00 On the show are Saurabh Jain of SMC Global Securities and Kunal Rambia of The Street.
00:05 Welcome Kunal and Saurabh and thank you for taking the time out today.
00:09 Now before we move into the questions, let's take a quick look at the markets. Benchmarks
00:15 have largely flat today but have turned green as we speak, kind of flattish day for the markets
00:23 today. Nifty remains range bound between 21,400 to 21,600. If we look at the constituents of Nifty 50,
00:34 we have among the gainers HCL Tech that's buzzing up 3% followed by Cipla Adani Enterprises both up
00:42 about 1.5-2% thereabouts. And among the life insurance companies we have SBI Life and HDFC
00:50 Life both above 1-1.5% there and we'll talk a little bit about this in detail. But before that
00:59 let me take a look at the losers on the index as well. We have NTPC that's down more than 2.5%
01:05 followed by ONGC and BPCL where we're seeing some profit booking down about 2.5% as well
01:12 followed by Coal India, Ayesha Motors down over a percent there. Among the sectors we have Nifty
01:20 IT that's in the green today up about half a percent. Now this may be on the back of the
01:25 results that are expected from tomorrow. We have TCS Infosys coming out tomorrow and
01:32 followed by HCL and Wipro the day after. So that's maybe that's the positivity that's playing
01:38 today in the IT space. Nifty Bank is flattish today not a lot happening there and among the
01:45 broader indices on the broader end of the spectrum the indices are underperforming the benchmarks as
01:54 of now. Nifty Midcap is down about one tenth of a percent and Nifty Small Cap mostly flattish today
02:01 in trade. So that's where the markets are currently at but as I promised the focus for today is life
02:08 insurance companies. Now if you look at the stocks the stocks are buzzing today from ICICI approved
02:14 to LIC to SBI Life. This is on the back of numbers that came out yesterday. So there was a release of
02:22 December month for the December month the numbers were released yesterday and SBI Life came out with
02:29 pretty strong strong numbers even though HDFC Life was on the weaker end of things. So based on all
02:38 of these things based on the numbers where there's a mixed bag in life insurance companies. Saurabh
02:43 I'd like to understand from you within the life insurance space what stocks are you currently
02:50 constructive on? See we like among the LIC among the stocks LIC and SBI are the two stocks which
02:58 we like. This time around if you see the LIC has surprised the most in the December month their
03:03 premium having jumped by close to 95 percent. That is primarily because of the single premium from
03:11 the group businesses insurance where they saw growth of approximately 195 percent. So if you
03:16 look at the number it looks that LIC has been able to you know arrest the fall in their market share
03:24 and if you look at the year to date number also they still have negative growth compared to the
03:28 last year. So this time around the LIC is surprised and we see we expect that LIC can inch up close to
03:35 10-15 percent from these prices also and for the SBI we feel the stock can reach approximately 1600.
03:42 Kunal I'd like to draw your attention to LIC as well because we have a viewer talking about LIC
03:50 they've bought the stock at 889 levels and they want to understand if they should continue holding
03:56 on from here. Morning everyone so if you look at the LIC in fact you know when after the IPO the
04:05 counter came down substantially and then there was a inverse head and shoulder formation on the chart
04:08 if you look at the breakout that was placed at around 700 levels and from 700 now it's
04:13 sitting at 850 because our viewers entry was pretty at the higher level I would say but the
04:19 trend is positive so right now you can stay invested if the counter reaches near to say by
04:24 any chance if it comes down and reaches near 800 level think of adding little more. I think this
04:28 trend is positive and he might get a decent exit also and if he's able to buy near 800 mark I think
04:34 then the targets can be placed as high as 920 to 925 which is the previous high and yes for now he
04:40 can hold on but he can even head near the 800 levels. Right understood let's move on to the
04:47 next one we have a question from Ankur and he's talking about Trident he bought the stock at 44
04:52 levels now Trident is up in trade no it's actually under pressure today down about 5% but has given
04:59 about 40% returns in the last one year. Kunal is there is it a good time to buy the stock since
05:07 it's under pressure what kind of trajectory do you see for the stock in the shorter term?
05:10 See if you look at the last four days performance the counter was up by almost around 17%
05:16 three days back and before that it was about on seven six seven percent so almost 23-24%
05:21 up and now this country is showing some kind of profit booking. Just a request to all our viewers
05:26 that you know whenever you try to chase such counters always check first where your exit is
05:30 gonna be certainly our viewer ended up buying little at the higher price but the trend is still
05:35 positive so you can certainly hold on to it the stop loss and the support on the chart is near to
05:40 43 levels so hold on for now if the counter reaches near to 43 think of averaging and buy little more
05:48 I think if the trend emerges decent enough then this counter has a potential to show us the levels
05:52 of 60 to 65 levels also I'm talking about positional trade but yes as of now you can hold
05:57 on and think of buying near 43 again. Right fair point next up we have a question from Akshay from
06:02 Varanasi and he's talking about Vedanta now we saw some downgrade yesterday and that's probably why
06:08 we have we're seeing some downtick in the stock around two three percent right now but he's already
06:15 bought the stock at 290 levels now should he continue holding for the longer term? Saurabh
06:21 what's your view on this one? It's difficult to take a call on Vedanta because of the plate overhang
06:26 on the group and yesterday also the sub agency came out with that negative report on it so
06:32 definitely this is not the perfect I mean a good pick in the metal pack I think in the metal pack
06:37 if you want to wish if you want to bet I think GSDF steel, Jindal steel are much safer and
06:44 Hindalco can be a good bet in this stock I'll recommend to you know it is better to exit and
06:51 jump the stocks that I have just said. All right fair point next up we have a question on Ayesha
06:57 Motors and I marked the stock during the market check as well we have Elviroid who bought the
07:06 stock at 4050 levels should he hold or sell this stock? Saurabh I'm gonna come to you on this
07:12 I we also saw some auto numbers come out a couple of days back so based on that what's
07:20 your view on Ayesha Motors for the longer term? I think for the long term I think Ayesha Motors
07:26 makes a case for a hold if you look at the numbers the numbers are going decently the
07:30 company is planning to come up with the new launches of the commercial side of the business
07:33 the company is looking you know strong and then the two-wheeler motorcycles the new additions
07:40 which they are coming up I think they will continue to hold their markets here so for
07:45 the longer term perspective I think it's a good. And for the shorter term Kunal the stock has
07:50 given gains of nearly 21 percent in the last one year is there potential upside from here on?
07:55 So if you look at the last two months performance then on the Ayesha Motors we saw the counter
08:00 rallying from a 3850 mark to almost 4200 and it has come back to the same level and right now
08:07 it's placed near to the support itself so yes the trend is definitely intact the trend is positive
08:12 with sideways consolidation certainly one can hold on to the position the stock loss on this has to
08:16 be near 3700 mark and by any chance the counter manages to close above 3890 so that's let's round
08:23 it off to 3900 I think we can see the rally emerging again till 4200 to 4250. All right fair
08:30 point next up we have a question from Khurshid he's talking about TV18 broadcast now it's in the
08:37 news today because of the stock is actually up 20 percent it was up 20 percent in the morning but as
08:43 has now paired some gains and is giving gains of 16 percent at this point but sort of talk to us a
08:50 little bit about TV18 what's happening there? I think it will be difficult for me because
08:56 all right fair point Kunal talk to us about the chart performance and the stock performance on
09:03 the charts and should they continue holding the stock now they have a considerable number of
09:08 shares they have 7000 shares bought at around 50 levels. See now again if you look at the recent
09:15 chart formation from May 2022 so far this counter was clearly underperforming and this counter
09:20 wasn't able to cross actually 50 mark it attempted almost four to five times but it was a failure
09:25 the day it crossed this 50 mark decisively we are seeing the levels of 65 so this entire sideways
09:30 consolidation is now coming to an end and emerging as a new trend so it's certainly one can hold on
09:35 to the position the trailing stop loss here will be a little far away because of a massive rally
09:39 in the recent times so the stop loss is going to be around 55 levels and hold on I think this
09:44 counter has the potential to show us the levels of 75 to 80 when soon. Right while we're at it
09:49 let me also point out the nifty media is up and buzzing today it's up four percent in trade we
09:57 saw some weakness yesterday because of Zee entertainment dragging down the index but
10:02 today Dish TV is up nine percent, Hathway up five percent talk to us sort of about the media
10:09 pack what's happening there we're seeing a sudden rise now is there a fundamental reason that that's
10:16 happening in the media space? I think not exactly I mean the deal of the Sony and Zee seems to be
10:22 falling apart there has been a lot of buzz around the around this theme in the last year or so I
10:28 think nothing consolidation what was believed is suddenly not looking on the end will and that is
10:35 that that might be the reason that the CNBC group is you know investor are betting on this group and
10:42 we are seeing a good amount of rise coming in these stocks. All right fair point next up we
10:48 have a question from Soumya Mukherjee he's talking about Star Health he's bought the stock at 310
10:54 levels what should be his strategy should he continue holding on to it Kunal Star Health
11:01 how does it look? So I missed out the buying price of our viewer but if you look at the chart
11:07 this counter has met the extreme lows near 500 mark if you look at July 2022 there was an extreme
11:12 low near 472 and since then it is maintaining the support of 500. I think this is a good level to
11:17 accumulate even from the long-term perspective so manage to close below 500 will take an exit
11:22 but otherwise this 500 level seems to be a good strong support I don't know the momentum is still
11:26 missing so it will not it might not deliver the results in the short period of time but if the
11:31 counter manages to close above 600 mark then I think this entire downtrend which we are witnessing
11:37 on the chart might just come to an end so from long-term point of view I think 500 level is a
11:41 good support and for momentum trader one should buy above 600 and then we'll see the targets at
11:46 that point in time. Okay so a pretty decent target there Soumya had bought the stock at 310 levels
11:52 Kunal so target being 500 is a pretty considerable positive for the stock but before we take more
11:59 questions we'll slip into a short break here but stay tuned we'll take lots more queries after the
12:04 break.
12:11 So
12:19 Learn.
12:32 So
12:39 So
12:48 So
13:02 So
13:19 So
13:43 So
14:09 So
14:20 Welcome back you're watching Ask Profit and if you want to write your queries to us you can
14:27 write to us on the whatsapp number that will be flashing on your screen as we speak you can also
14:32 write to us on any of our social media channels or on the YouTube live chat we'll take your questions
14:37 from there as well. Now let's dive into the questions quickly this one's from Rashida and
14:42 she's talking about Nestle she wants to know if it's a safe price to buy and she wants a technical
14:48 view on this so Kunal Nestle from here on if you look at the last year's performance it's lost 12
14:55 percent 11 12 percent but would you would you suggest buying from these levels?
15:00 Obviously we recently saw the corporate action coming in the counter right and the counter made
15:06 a high of almost around 2770 kind of levels and yeah it's in correction right now but the trend is
15:13 definitely intact I would not really be keen to buy at this present level rather I'll wait for
15:17 the level to say the price to reach near 2550 to 2525 I will revisit and see how the counter is
15:24 behaving because I don't consider this pretty you know elevated level as be comfortable or safe level
15:30 to invest for I'll wait for the counter to consolidate after the correction then we'll
15:34 revisit so tentatively the levels are 2525 to 2550 levels at that time I would advise our
15:40 viewer to come back to our channel again and re-ask the question I think that can be a good
15:44 level to accumulate. All right so as rightly Kunal rightly pointed out come back to the channel
15:51 and ask for the advice again. Next up we have a question from Amit Rastogi he's talking about
15:57 Polycab he's bought 2500 shares and we saw some IT searches happening in the company offices but
16:07 it came out with a clarification yesterday on the news saying that they haven't received any
16:13 communication from the IT department which is probably why the stock is seeing some uptick
16:18 after it lost about eight nine percent in the last couple of sessions. Saw Polycab now fundamentally
16:25 it's a strong company but if we look at the recent actions by the IT department does that
16:32 affect the stock in the longer term should they continue holding it or is it a good time to get
16:37 out of the stock? Yes of course I mean the stock is likely to continue to be in pressure because of
16:43 this news that came over last week I mean till the clarity emerges I think the investors
16:49 investors will be you know afraid of betting on this company albeit the fundamentals are good
16:53 but the valuations are also stretchy so till the time clarity emerges I think there is no point
16:58 in shipping in this company similar company in the domain which looks attractive to me is Hedges.
17:03 Right next up we have a question from Mamta and she's writing to us from Delhi she's talking about
17:11 Muthut Microfinance. Saurabh have you gotten a chance to look at this this was a recent listing
17:17 and if I remember correctly it listed on a discount from its IPO price should they continue
17:23 holding the stock if they bought it in the IPO? See if you have taken the stock in the IPO it is
17:30 better to stay for a quarter to I mean the group is very good see the numbers how the numbers pan
17:35 out for the December and the March quarter and then take a after taking a note of the numbers
17:40 then make a plan whether to remain whether to hold or to exit the company for the next
17:48 three four months I think it is better to boot. Better to sorry? It is better to hold for next
17:55 one. All right got it next up we have a question from Rajiv Singh he's talking about Amararaja
18:02 batteries they bought the stock at 831 levels should they continue holding it Kunal how does
18:07 it look on the charts? See again this counter has been an underperforming counter if you look at the
18:13 broader formation from November 2022 so far it has made kind of higher top higher bottom but it's
18:19 quite muted even at the present level so I'll stay cautious as of now on Amararaja and rather you know
18:25 I'll go ahead with if I want to trade in the battery segment I'll go ahead with say XRIDE
18:31 for time being the viewer can have the stop loss of around 790 and hold the position on the higher
18:38 side we can expect the levels of around 900 to sorry 875 to 880 kind of levels. Right understood
18:46 next up we have a question from Piyush he's talking about Indian Energy Exchange he's already
18:53 bought the stock at 250 levels the current price is around 162 so a bit of a law notional loss there
19:02 rather. He wants to understand if he should average out and get out of the stock at this juncture.
19:10 Fundamentally how does the stock look? I won't recommend to average at me if you look at the
19:18 valuation side it is trading at 18 times to book value the monopoly has already been challenged
19:23 if you look at the last one to where the stock was the stock has clearly underperformed and on
19:27 the valuation side it is clearly expensive so my sense is better to get if you get any
19:32 opportunity better to exit. And Kunal would you give this same suggestion exit at this point?
19:38 I do have a little different view and the only reason being that if you look at the overall
19:43 formation the counter was in downtrend it entered into sideways consolidation from October 22 so
19:49 far and now in the recent times we saw massive volumes happening on the chart and the breakout
19:53 was seen at around 150 levels so in fact you know I consider this to be like the beginning of an
19:59 up rally this is purely on the technical basis so yes with the stock loss of 150 I think one
20:04 can hold on to the position one can even think of buying at the present levels and we are looking
20:08 at the levels of around 200 to 225 as the you know next two to three months target on the chart.
20:14 Understood. Next up we have a question from Mandy and they've written to us on YouTube they're
20:20 talking about Mangalore chemical fertilizer and they want a fundamental view and they're
20:27 also talking about the budget 2024 so are we expecting something in the chemical space
20:33 and will it affect Mangalore chemical fertilizer?
20:36 See this time the budget in the February will be worked out and the budget will be presented after
20:44 the after the general elections so yes the government will focus surely on the agri side
20:49 of the economy I think they are quite there to boost the agri-herbal economy and the fertilizer
20:54 are the proxy for the for any kind of government soaps that comes in. In the fertilizer space the
21:01 stock which we like is Gujarat state fertilizer I think Mangalore chemical is a smaller much
21:06 smaller company and if you want to look at the fertilizer space I think GSFC is much better
21:12 much better bet. Okay understood. Next up we have a question from Neelam from Rampur
21:18 they have bought the stock Ashok Lelen at 189 levels the stock is currently trading below that
21:24 price around 175 levels should they continue holding the stock is the question. Kunal
21:31 what would you suggest? Yeah again see June 2023 to so far this counter is being in positive trend
21:39 but again sideways and muted the support on the chart is straight away at 170 but I think 170 is
21:44 a good level where one can think of adding even more now our view is already holding the position
21:49 I would say stay stay on to this counter keep the stop loss of around 165 and again at that point
21:55 in time take an opinion but I think this counter slowly and steadily may it remain positive so with
22:01 the stop loss of 165 I would say I would advise him to stay invested and by any chance it reaches
22:07 near to 170 think of averaging the position I think in the spike of around 185 you might get
22:13 a decent exit and a good profit on the newly created position. And Saurabh what's your view
22:17 on Ashok Leland the news flow yesterday was that they've signed MOU with the Tamil Nadu governments
22:23 for about 1200 crores do you see that this playing out in the stock there's some pressure
22:30 the stock is still under pressure even after this announcement but for the longer term how does Ashok
22:34 Leland look in the space? I think for the long term prospects are look prospects for the commercial
22:40 vehicle segment looks right considering the infrastructure capex that is happening considering
22:45 the orders that the state government is are coming up with and the company's positioning also for the
22:50 long term I don't expect any I don't feel any problem with the company and the you know the
22:56 earnings are likely to inch up in the next fiscal year. Right all right that's all the time we have
23:03 today on this edition of Ask Profit thank you Saurabh and Kunal for joining us and for answering
23:08 so many questions for us and viewers hope we were able to answer some of your queries today but if
23:14 not we'll be back tomorrow same time at 11 30 a.m so do keep writing to us and stay tuned for more
23:20 updates on IndyTV Profit.
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