Nifty, Sensex Trade Higher As HDFC Bank, M&M Lead Gains | India Market Close | NDTV Profit
- #AtherEnergy in talks with banks for $400 million IPO
- M&M Q3: Profit jumps 61% as SUV sales surge to highest ever
Niraj Shah and Hersh Sayta dissect key market trends and explore what's to come tomorrow, on 'India Market Close'. #NDTVProfitLive
- M&M Q3: Profit jumps 61% as SUV sales surge to highest ever
Niraj Shah and Hersh Sayta dissect key market trends and explore what's to come tomorrow, on 'India Market Close'. #NDTVProfitLive
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00:00:00 rate and then pull up the intraday chart of the small cap index as well. 161 points, 1.09% higher
00:00:06 and I think it's a bit of a, how do I say, a positively trending day for the mid cap and
00:00:14 the small cap end of the market. So that is what is pretty heartening. Look at this, it's kind of
00:00:18 stayed stable and currently the nifty small cap 250 just about trading at the highest point of
00:00:23 the day where it was. Now bring up the heat map and let's talk about the large caps first. Harsh
00:00:28 will speak about the mid caps. M&M at 7% is really ruling the roost, extremely strong showing.
00:00:35 We will, we should show to the viewers that we have M&M coming in at 3 p.m because viewers you
00:00:41 should stay tuned for that conversation. At 3 p.m Anisha will talk to us about what's led to the
00:00:47 kind of performance, more importantly the confidence that the brokerages have on the
00:00:51 outlook for Mahindra and Mahindra. So that is the top gainer but oil and gas as a space and power
00:00:56 as a space I think deserve a mention. All of them have done really well for itself. Large cap,
00:01:01 mid cap, small cap, I'm highlighting the large caps. Harsh will speak about the broader end of
00:01:05 the spectrum but BPCL and ONGC at the nifty end and then there is NTPC and Power Grid also doing
00:01:11 well. So a bit of a resurgence for the PSUs as well. What's not done well, Apollo Hospital is
00:01:16 down about a couple of percentage points. Axis is a bit of a lone star in the banking space which is
00:01:20 sulking so much about 2% lower so that is a bit weak and FMCG has had a very weak day. HUL,
00:01:27 ITC, Britannia, Nestle all of them in the red and the broader end too we've seen some pressure there.
00:01:32 Harsh, what is it that you're spotting at the broader end of the spectrum? Well, earnings
00:01:37 continue to be in focus Neeraj and that's been the trend and those are some of the stocks that
00:01:42 I'll try to cover first off. Let's pull up something like a Muthoot, let's pull up Gateway
00:01:47 District Parks, let's pull up ABFRL all three of which are lower on the back of the numbers that
00:01:54 they've declared. So you can see anything between 2 to 3% lower on all three of these counters.
00:02:01 Then let's pull up something like a Jindal Poly, National Fertilizers, Jyoti CNC all three of which
00:02:07 are gaining and gaining significantly. PTC India has given up some of those gains as you can see
00:02:13 but outside of that National Fertilizers up 9%. Sequentially the numbers look much better,
00:02:20 margins have improved for National Fertilizer when I'm looking at it sequentially. Jyoti CNC
00:02:24 what an amazing stellar set of numbers there. But let's also pull up the likes of Dishman and NMDC,
00:02:31 they have done also fairly well. Jindal Poly as well doing fairly well in trade today. So
00:02:37 those are some names within the mid and small cap. Also let me point out Concor and West Coast,
00:02:43 both of those are also doing well in trade. We are looking at Concor which has signed an MOU with
00:02:50 Government of Bangladesh and West Coast, new facilities with regard to their optic fiber cable
00:02:57 facilities coming on stream which will of course aid some of the numbers there for Q4 for West
00:03:03 Coast. So keep your eye out on both of those as well. Neeraj. Okay, well let's get in our guests
00:03:09 to try and understand what to do in a scenario of this. Rajesh Palviya, SVP Technical and Derivatives
00:03:13 Research at AXIS Securities and Vijay Chopra, MD and CEO Enoch Ventures on the Fundamentals.
00:03:18 Gentlemen, thanks so much for taking the time out. Rajesh, I'll start off with you. In some sense
00:03:22 PSU is making a bit of a comeback today. To my mind that stood out from amongst everything else
00:03:27 but it's not a bad market at the broader end of the spectrum. What is your trading approach this
00:03:32 afternoon? Yeah, good afternoon. So short covering is happening in both the indices, Nifty, Bank Nifty.
00:03:40 We have seen that short covering started in previous session and today also we have
00:03:45 witnessed the short covering is going on. As Nifty is holding about 21,850 marks, so
00:03:52 that is the comfort zone for most of the index trader at this moment on the buying side.
00:03:57 If it continues to hold about 21,850 then possibly we could see Nifty to take a attempt towards
00:04:04 21,950 zone also. That's the major supply zone at this moment based on the call concentration area.
00:04:11 So that level we may see in today's session also towards the weekly option expiry. So Nifty may
00:04:19 try to attempt toward 21,950 also. Bank Nifty is looking one notch better compared to Nifty
00:04:25 in today's session. Almost Bank Nifty is now continuously holding about 45,800 marks. That's
00:04:32 the important level based on the put base concentration. So if it continues to hold
00:04:37 above that level then possibly we could see a breakout above 46,200 for Bank Nifty and possibly
00:04:43 Bank Nifty can inch up further higher to 46,600. That's the level we can see in today's session.
00:04:50 Most of the PSU banks are participating. Even the HDFC bank has also started recovering from its
00:04:56 oversold trajectory. So that is also giving some support to the
00:04:59 Bank Nifty. So this is one added advantage to Bank Nifty in today's session.
00:05:04 In light of that, Rajesh, what are the stock recommendations for the afternoon?
00:05:09 So Neeraj, first stock is from PSU Bank that is PNB. Stock is continuously holding above 120 level
00:05:18 and looking at the breakout on the medium term, long term structure, we believe that PNB can
00:05:23 continue further more upside from the current level as whole PSU banking basket is moving up.
00:05:29 So we picked up PNB for upside target of 135 to 140. One can buy this stock with stop loss of 122.
00:05:36 And the second stock is from the power space that is NTPC. Strong uptrend is going on in the stock.
00:05:43 Continuously, stock is making higher top, higher bottom formation. After a brief corrective move,
00:05:48 again, now stock is resuming its upward trajectory. Looking at the overall structure,
00:05:54 we believe that NTPC can continue further more upside from the current level.
00:05:58 In a previous session also, there was a long buildup. Again, continuity is there. So we expect
00:06:04 target of 347, 350 for NTPC with stop loss of 333. And the third stock is Gujarat Pipava Port.
00:06:12 It's a mid cap stock and looking at the overall structure, the stock managed to break out of its
00:06:16 previous swing high on the daily chart, almost 7 days consolidation range breakout is taking place,
00:06:22 falling trend line breakout is happening on the daily chart. So this breakout indicates that we
00:06:28 can see a further more upside towards 205 to 210. So Gujarat Pipava Port, one can buy with stop loss
00:06:35 of 186. Very interesting, Rajesh, including Gujarat Pipava which is up 9.5% in trade today.
00:06:44 So let me come across to Vijay. Vijay, firstly, welcome. Good having you here.
00:06:50 Give us your views with regard to how you're looking at sectors at the moment, which sectors
00:06:56 are looking good to you from a valuation as well as from a fundamental perspective, structural.
00:07:02 Thanks for having me on the show. So today, the kind of bounce back we are seeing in the markets,
00:07:08 it might be a pull off from the oversold zone. But definitely, I would say that markets,
00:07:16 there are certain companies, certain stocks, which are overvalued and we should constantly
00:07:22 keep on booking profits because when the markets correct, the stock corrects much more, like we
00:07:27 have seen in the PSU space. So even today, as we talk, so there are certain sectors which are like,
00:07:32 I think that metals should do well over a period of time. Companies related to solar,
00:07:38 they should do well. I think that speciality chemicals and certain tech stocks, especially
00:07:44 mid-cap IT, you know, some of the companies have, I think that they have kind of bottomed out,
00:07:49 bottomed out or bottoming out. So there I see a lot of opportunities. So I think that the
00:07:54 market should do well. So there I see a lot of opportunities. So if you allow me, there are a
00:07:58 few companies I would like to recommend as well. Sure, Vijay, and we get to the ideas as well,
00:08:04 but can we first talk Vijay about some of the high flyers today in the session? Why is it that the
00:08:09 oil and gas pack is moving the way it did? We'll talk about your stock ideas, but let's first talk
00:08:13 about the ones which are standing out today. So Oil India up 12%. Yes, there is a brokerage node,
00:08:17 but it's a substantial uptick. Some of the others, MRPL up 17%. Why is it that this is happening?
00:08:24 You know, there are times when there is a certain interest in the funds or, you know,
00:08:31 in the HNI's or the big funds or the mutual funds or offshore funds. So I think that today it's just
00:08:37 a sector rotation. We are seeing a major focus on oil and gas space. So, you know, starting from
00:08:44 Reliance, I think that, you know, it has started and people are buying. Reliance somehow, you know,
00:08:51 seemingly looks very good to me. So MRPL, Chennai Petro, all these companies are doing well. So I
00:08:59 think that nothing much has happened in the sector, you know, overnight, but yeah, just a sector
00:09:04 rotation, I would say. And that's how the interest in the market, you know, changes hands. So from
00:09:12 one sector to the other sectors of people might have booked some profit out of the PSU's, the
00:09:17 money would definitely, you know, flow somewhere else. So it is flowing to the oil and gas sector.
00:09:21 And I think that, you know, markets are chasing good valuations as well. So there are a lot of
00:09:25 companies which still have good valuations. They have good numbers under the belt, good profitability.
00:09:32 So I think the refining companies are doing very well. The GRMs are quite stable. So, you know,
00:09:40 money has just, you know, moved out from one sector to the other.
00:09:43 Yes, Vijay, that's right. And, you know, we had an MK note earlier coming through with regard to
00:09:50 oil India, they've hiked their target price on oil India by 50%, giving it a target price now of 670.
00:09:56 What they are suggesting is that firstly, their valuations as well as estimates were more
00:10:03 conservative. So they've tweaked that. I'll come to the valuations. But let me first talk about what
00:10:08 they are talking from a fundamental perspective. They are expecting the company to deliver on their
00:10:14 growth target. And what they are seeing over the last few quarters is that the company is following
00:10:20 their guidance and which is one positive and which is where MK seems to be getting some confidence
00:10:24 from. What they are also suggesting is that the standalone refining peers are enjoying better
00:10:31 valuations versus oil India. And this is a bit of, there is a correction warranted there, which is
00:10:36 the other piece that's probably playing out. And they've basically raised their medium term
00:10:43 upstream estimates. And therefore, what they've done is they're a fight 24 to 26 EPS by 18 to 19%,
00:10:49 thereby valuing oil India at 670 rupees. A lot of that catch up possibly has happened already,
00:10:58 but there's still some way to go. If I can also have your views, which is specifically with regard
00:11:08 to oil India, if any, before I go and take a quick technical view from Rajesh.
00:11:14 Excuse me, there was a definite valuation catch up, which was in the waiting, I would say it's
00:11:24 not recent. It has happened in the last one year. Look at MRP, look at Chennai Petro. I clearly
00:11:30 remember on one of the major leading business channels, I said that the profitability of
00:11:35 Chennai Petro is more than the MCAP. And it was trading close to about 230 rupees. Today,
00:11:40 it is close to 900 rupees. So all these oil related companies or refining companies or maybe
00:11:47 OMCs, there was a time there was a lot of undercutting happening. These companies were
00:11:52 not able to make profits. But now since the government has freed them to, and again, there's
00:11:58 a huge differential they're earning every quarter. So look at what happened to BPCL, IOC,
00:12:03 and HBCL. So similarly with OIL, I think that Oil India Limited has a valuation catch up to do.
00:12:09 It can comfortably go up to 600, 650. So I won't be surprised that we see these levels happening.
00:12:14 Understood. BPCL also being the second top gainer, or rather the second largest gainer on the Nifty
00:12:24 50 today. There you go, BPCL also up 5%. Rajesh, your views with regard to some of these OMC stocks,
00:12:32 how are they looking on charts? What should one do in this market?
00:12:35 So Harsh, very strong buying action is happening in all these oil marketing company. If we talk
00:12:42 about BPCL, this is the fourth consecutive month where we are seeing higher, higher low formation,
00:12:48 very strong buying action is happening in the stocks. Stock managed to view, most of the
00:12:55 stocks like BPCL, HBCL and IOC managed to view breakout on its long term consolidation range on
00:13:01 the monthly as well as on the yearly chart. That clearly shows that long term trend has shifted
00:13:07 and this bullishness is likely to continue further. For BPCL now one should trail their
00:13:14 stop losses towards 625 until the stock is holding above those levels. Possibly we can see
00:13:20 momentum can continue further and possibly we can see target towards 720, 730 also on the BPCL as
00:13:28 overall structure is on the bullish side. Even if we talk about HBCL, HIND, PATRO, that stock is
00:13:35 also looking promising. If we look at the monthly setup, stock managed to view breakout of rounding
00:13:41 bottom formation on the monthly chart and it's a multi-year breakout is taking place. Stock managed
00:13:47 to now cross this 2017 swing high. So that is a long term breakout is happening on the stock.
00:13:55 That clearly shows that now the stock holds above 535, 40 level, then possibly we can see target
00:14:01 towards 650 for HBCL. So very strong buying action is happening in whole oil and gas basket. So I
00:14:10 think this sector is likely to continue further more upside in coming weeks also. So one can
00:14:15 hold their long position and keep trailing the stop loss on the higher side. That's the strategy
00:14:21 one can adopt at this moment for oil and gas sector. Recovering GRM, auto fuel marketing margin,
00:14:27 something that my colleague Varsha just messaged me are the views that are coming in from some oil
00:14:31 and gas analysts as well. Well, VPHP IOC clearly ruling the roost today. The other stock which is
00:14:36 actually the main one and before we hit that break, we need to talk about NNM. We'll talk to
00:14:42 the management at 3pm today. But Tushar who tracks this space closely joins in to tell us why is it
00:14:47 that the analyst community has been so constructive post the day of the results. Tushar attended the
00:14:53 press conference, asked the questions as well. Tushar, you heard what the management said,
00:14:56 you've seen what the brokerages are saying, juxtapose the two. So thank you Neeraj for that.
00:15:01 So essentially what the story is a day after the earnings is that this is an SUV story,
00:15:07 not a tractor story. And that's quite a departure from say a couple of years ago when Mahindra's
00:15:13 tractor sales were actually outpacing SUVs. So what is the basic sense that we're getting from
00:15:18 brokerages is that the jump in the share price that we see today, that's about more than 7%
00:15:23 to a record high is actually justified because at least two brokerages have indicated a double
00:15:28 digit upside for the stock going ahead. First among them is Bernstein, which has a 13% upside
00:15:33 on the stock with a target price at 1,880 compared to the current market price at least a previous
00:15:39 close was 1,657. Bernstein also says that tractors will remain the weak point in Q4 with FI24 seeing
00:15:47 a 5% decline in overall volumes. The guidance, the company in its con call guided for a mid to
00:15:55 high teens growth in the SUV volumes, that will actually be industry beating which will be around
00:16:00 10% to 12%. So essentially we are looking at M&M building on its market leader position as far as
00:16:07 revenue market share is concerned. Also remember in Q3 it clocked its highest quarterly volume
00:16:13 that the company has seen so far. Margins will also continue improving sequentially, Bernstein
00:16:19 said, because of the improving mix. We are selling more costlier SUVs over and over as the numbers
00:16:26 suggest. Secondly, the stock is still fairly valued. According to Motlal Oswal, M&M's implied
00:16:33 core PE stands at about 16.8 times for FI24 and about 15.2 times for FI25, which is still
00:16:43 attractive as compared to peers like Maruto Suzuki, Atata Motors, which have also seen a run up in
00:16:48 their prices. So as far as Motlal Oswal is concerned, it's looking at a target price of 2,005
00:16:54 rupees, which is a 21% upside. Q3 was operationally in line, but the last three numbers are very
00:17:02 important. That is from the FI23-26. Motlal Oswal expects that the company will report a CAGR of 12%
00:17:09 revenue in FI23-26. EBITDA will clock a CAGR of 15%. Net profit will have a CAGR of 16%. So the
00:17:20 next three years look very good for M&M. Well, interesting. So higher contribution on the EBITDA
00:17:27 front and therefore a better bottom line growth than the top line growth. Tushar, thanks for that.
00:17:31 Well, of course, you'll hear from the management. We'll ask him this question at about 3 p.m.
00:17:35 on Anisha Johnson. We need to slip into a break. Stay tuned. We'll talk more with our guests and,
00:17:40 of course, get in the group CEO of M&M on the other side.
00:17:46 Thank you.
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00:21:06 Thank you.
00:21:19 Back with India market close right here on NDTV Profit. Now, we spoke about how PSUs have done very well. You could argue that power has done very well too because across the board from power grid to NTPC to the Inoxes of the world, that whole value chain has done extremely well for itself.
00:21:35 I believe Morgan Stanley has come out with a note on some of these. Let's go across to Harsh to try and understand what is the rationale that they are putting out there and what are the stocks that they seem to be constructive on. Harsh, take it away.
00:21:49 Well, yes, Neeraj. So, let me first start off with what Morgan Stanley is saying with regard to the sector as a whole. First off, they are suggesting that the power demand for both FY23 and 24 has been ahead of what the government has projected and therefore, the kind of supply that has come through has been lesser than the kind of demand that was, that actually translated in both FY23 and 24.
00:22:15 What has driven this demand? Well, what they are suggesting is manufacturing as well as the use of appliances by the common man is what is driving power demand at the moment. And there is no doubt on either of these because there has been a huge thrust on manufacturing and that seems to be playing out on power.
00:22:35 Now, the situation is expected or was expected to worsen and that's also because of delays that have happened with regard to capacity additions being insufficient. Now, in terms of the specific names and yes, there is renewable capacity also coming through and renewable capacity will take more time and therefore, they have booted up and they have also started leaning on thermal capacity now.
00:23:02 So, who are they overweight on? Who is Morgan Stanley overweight on? NTPC power grid. NTPC of course, the largest power supplier, power grid, the largest power transporter, no point in having supply without transport and then you have renew energy which Morgan Stanley continues to be overweight on.
00:23:20 They have upgraded BHEL from two equal weights. So, that's one big positive for BHEL and you can see it's moved fairly well. It was at the 205 mark at the start of this week. It's moved fairly well again. It's come up to that 220 level and they are underweight Tata Power and Torrent Power.
00:23:41 They feel that some of these have played out in a significant fashion and hence they are underweight these two. Okay, but well, wondering Vijay if you believe that some of these have played out already or it's a long runway and people can stay invested.
00:24:01 First of all, that it's a long runway. When India is talking about becoming a superpower in 2047, the finance minister said it's going to be the Amrit Kaal and a lot is going to unfold. So, I think that we have just started or it is the beginning and we're going to see a lot of things unfold.
00:24:22 I think India is a developing country and going towards being developed. Look at what has happened in the EV space. So, we were talking about demand. A lot of action has happened in the cities and even in the rural areas where there was no electricity earlier.
00:24:39 So, companies like REC have done a great job. I think that most of the Indian rural diaspora have been connected with electricity. There are very, very few villages now which do not have electricity connection. So, this demand definitely, whether it's urban, rural, industrial, it is going to increase.
00:24:58 There's going to be an add-on of EVs. Now, Prime Minister Modi has recently announced that there are going to be 1 crore households having solar rooftops. So, this electricity is not going to be used entirely by the households. It is going to be ploughed back into the system and it's going to be used eventually.
00:25:20 So, primarily, the government is working upon using the real estate for free and people will definitely not use the entire electricity because we have a good 9 to 10 months of sunlight and a lot of electricity would be produced.
00:25:36 So, I think that all these things would add up to the growth of the ancillary industry around power and, of course, power distributors, power generators. And yes, in the last few years, a lot of effort has been made regarding the smart metering.
00:25:55 Earlier, there was a lot of leakage. There was a lot of theft around power and these companies, all the power distributors and power companies were dealing under a lot of losses. So, with smart metering coming in, there are lakhs and lakhs of smart meters which are still to be installed.
00:26:13 Companies like Genus Power and others who are already involved in this business. So, I think there's a lot to happen. We have just started. So, when this leakage stops, this money starts flowing into the system. There are rooftop solar provisions.
00:26:30 So, the entire pressure which is there on the grid is going to loosen a bit and we're going to grow left, right and center. Of course, the EV thing is going to take it further as well. So, I think that we have just started. Number two, regarding getting into the stocks right now or wait for the correction, for some more correction.
00:26:46 I don't think that the correction is over and long-term players should be invested. Traders, be very cautious. We'll have sharp corrections in this journey way up. So, I would recommend that long-term players stay invested. NTPC, PowerGrid, PTC are great companies to have in a portfolio, even Tata Power. Don't panic if there is a 10-20% correction. Don't panic at all. These companies are going to be potential multi-baggers of the future.
00:27:14 Absolutely. Multi-baggers of the future. Quite bullish on that one. But rather suggesting that investors wait for a bit of correction. Thanks for that Vijay. Let's slip into a very short break. You have M&M on the other side along with top buy and sell recommendations post that. Stay tuned.
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00:47:41 >> I hope you remember that Mahindra took over Sanyong Motors in Korea.
00:47:51 >> I think that from the times they used to make vehicles which are primarily pickup trucks and they were used for rugged terrains like villages and mountains, for the first time when I personally saw XUV700, I was quite impressed with the kind of vision Mahindra is carrying.
00:48:13 >> Now, definitely, you will go to any Mahindra showroom, there's a waiting line, and this is a problem also. This is a problem with most of the luxury cars. You want to buy a BMW or a Mercedes or even a Toyota, Innova or a hybrid car, so there's a waiting line of two to three months.
00:48:30 >> I don't know if this is becoming more and more of a norm in the premium segment, but I think that M&M has reinvented itself. I would rather use the word that they have metamorphosed into a butterfly, which is much better to see.
00:48:46 >> Earlier, the vehicles they used to make, they were not eye-pleasing at all. Now, look at an XUV700 top model, which boasts of certain features which are at par with the likes of BMWs and even Mercedes.
00:49:01 >> At that price point, they're offering wonderful product. I think that they have done a fantastic job. The management is talking about EVs and again, metamorphosing into a new-age company where they have a lot of EV offering as well, apart from the design and the features they're offering.
00:49:19 >> I'm quite happy with the way Mahindra has come out to be in the last two, three years. There's a deflection in the stock price as well. It was reading around 900, 1000 almost a year ago, and here you are at a 70% growth in the stock price.
00:49:37 >> I think that it's again a long-haul stock. Apart from the little play where they're very, very strong in practice, they also have an offering for the urban customer and the new-age urban customer, which primarily prefers SUVs over sedan cars.
00:49:55 >> I would say M&M is a great company. The shape looks good. The valuations are not at all stretched as compared to the peers. I think that it can go up to 2000. Keep on holding the stock. As the management says, they're coming up with newer products. I'm very hopeful they're going to be eye-pleasing to the masses of the country.
00:50:15 >> Well, bullish on technical and fundamental there, M&M. But, Rajesh, let me come back to you with regard to those power stocks which we missed taking your views on. On charts, some of these stocks have now run up substantially. How are they looking on charts? What should viewers do?
00:50:39 >> Sorry, you were on mute. Please go ahead.
00:50:45 >> The NTPC that I've already mentioned looks good at this moment from the power space. I think that stock is likely to continue. Tata Power, after the corrective move, is now trading near to its 20-day moving average. I think that stock is also looking attractive after this corrective move.
00:51:03 Looking at the overall structure for Tata Power, it's again available at a very correct level in this correction. So I think one can look to buy Tata Power also with a stop-loss of 365 upside target we expect for the stock towards 440-450 on a positional basis. So, NTPC and Tata Power, these two stocks are looking promising from their pack.
00:51:27 >> Understood. The other one that's been in focus today is NMDC. If you can pull up the intraday chart for that, what you'll see is 5% uptake on NMDC. And what a journey this one has had. It was at Rs. 65 a share pre the demerger and now we're seeing Rs. 250 almost on the counter. Day is high, Rs. 250+.
00:51:55 Vijay, what has changed so fundamentally and so drastically in something like NMDC and how are valuations looking now to you?
00:52:07 >> I think that most of the public sector stocks which we talk about, especially the mining ones, there was a lot of deep value. NMDC still is available at a PE of 12. So I think that it's still as compared to the peers, private peers. Look at Glencore valuation.
00:52:24 So I think that if we do an apple to apple comparison, NMDC should trade at about 500-600 if you compare it with the international peers. So I think there's a deep value there. And the demerger of Nagarnagar Steel Plant where NMDC had spent close to Rs. 18,000 crores in developing that.
00:52:46 I think that even post the demerger, Nagarnagar is again a great investment, so to say, because there are many private players which are trying or eyeing to take over this asset. So I think that NMDC Steel is also a great company to hold.
00:53:06 Even NMDC at these levels, long term players don't worry at all. Somebody wants to get into the stock, wait for about 220 levels, that would be a lovely level to get into NMDC. So I think the valuations are still not stretched. There's a lot of valuation catch up in the mining companies. So NMDC is one of my favorite stocks has been and would be until I see the valuation stretch. So valuations are quite okay. Wait for a correction, get into the stock and stay there.
00:53:34 You know, amongst the other stocks that have done well, Emphasis out of the blue is about 6% higher. It didn't come out of the best of quarters really. But the stock has had a good run today on higher than average volumes. So Rajesh, any thoughts on Emphasis 2704 currently?
00:53:52 Yeah, very strong run up in today's session and almost now stock has managed to give a breakout of almost 15-20 days consolidation. So that seems to be looking very interesting after today's move. Now if stock holds about 2660-2670 mark, then possibly this momentum can exceed further and we can see target towards 2800-2840 kind of level also.
00:54:17 Very strong buying action is taking place in the stock. Stock is holding about 20-50 day moving average. That also adding up the strength of the near term as well as of the short term structure. So those who have already bought the stock can hold their position 2660 should be your stop loss upside target 2840.
00:54:35 And Rajesh, your BTST recommendations while we are at it?
00:54:42 So first stock is from banking space that is Federal Bank is looking very promising. Long build up is there. Stock is now approaching to its multiple supply zone looking at the overall structure. We believe that this stock can deliver good return in coming trading session.
00:54:58 168-170 is the immediate target which we are expecting. One can buy with stop loss of 153. Second stock is Polycap. Very strong buying action in last half an hour of trade. Stock now managed to give breakout of its contracting triangle on the daily chart if you look at the last 15-20 days behavior.
00:55:20 So very strong buying action is taking place. Stock is now penetrating to its 200 day moving average. Looking at the buying action, we believe this momentum can extend 4650-4700 with the immediate target on Polycap. One can buy with stop loss of 4540.
00:55:39 And the third stock is NoSilk. That stock is also looking very promising. Very strong buying action is taking place. NoSilk can be a buy for upside target of 295. Keep your stop loss at 275.
00:55:52 Vijay, if I can come to you. Again, very interesting play. Federal Bank, Rajesh suggested it for BTSD. How do you look at it fundamentally? If just back of the hand, Matt, this is trading at roughly 1.4 times price to book if I'm not wrong.
00:56:10 It's a company where there has been or rather NDTV Profit exclusively has broken news suggesting that there is a possibility KVS, Manian of Kotak Bank, senior management who heads wholesale banking for Kotak has joined in or may join in as managing director.
00:56:31 Shalini Wariya is obviously there already. Do you think that this looks good among the mid and the small tier banks?
00:56:40 Banking is a very cluttered space now. Doing profits is such a herculean task with all the small finance banks and all kinds of banking licenses which have been doled out. They are definitely getting a lot of competition from fintech.
00:56:56 Leave BTM aside, but again, we have ESAB, small finance bank, we have Jena small finance bank. There are scores of small finance banks which have come up and cluttered the market.
00:57:08 I think that management change, yes, positives are there. There might be certain strategic changes. We saw a lot happening in IDFC Bank post where they joined. But I think that federal bank can do good.
00:57:23 I don't see that it will be some multi-bagger, but yes, it can go up to maybe 200 odd. And then probably there are certain fundamentals which change drastically, then probably we can take a look.
00:57:33 But yes, as of now, even on the charts, technically, fundamentally, as far as the numbers are concerned, it looks good. It can go to 200.
00:57:43 Okay, gentlemen, both of you, thank you so much for taking the time out and being with us on the show today. Really appreciate your time. The market is just about to close.
00:57:50 And close well. You have to admit, two days on a trot now. We haven't done a bad day. We are back to kissing distance of 22,000. So that's part one.
00:57:59 But more importantly, today is yet another day when the broader end of the spectrum has done much better. So while you see the Sensex and the Nifty do well, it is the mid caps and the small caps which have done well.
00:58:09 And by the way, this also kind of camouflages what the real powerful move at the broader end of the spectrum has been.
00:58:16 If you just look at the BSE 500 index gainers, or if you look at BSE small cap gainers, you will see the kind of gains and the moves that are happening.
00:58:24 MRPL, we spoke about an emphasis, we spoke about Oil India. I mean, those stocks have done had a really, really powerful rally.
00:58:32 The number of stocks at 52-week highs is also very large. So that is good. And if you pull up the heat map on the index, you will see that some stocks have moved like the way mid caps move.
00:58:42 I mean, M&M is 7% higher. BPCL, NTPC, Power Grid, ONGC, SBI, Coal India. That's a whole clutch of PSU names which have done well.
00:58:50 You know, before I give it to Harsh, we should pull up the PSE ETF ones as well. But on the weak side, it is FMCG which has sulked really badly in the session today.
00:59:00 Can we just pull up the PSE ETF chart if we can, because I think that will show you how strong the moves have been.
00:59:07 But while we wait for that, the other aspect to notice is that IT is not sulking too much in the session today. Infreeze above 0.83, Bipro about 0.6.
00:59:16 So net-net, not a bad day to go home with. But Harsh, like I was saying, the broad end of the spectrum is the one which has got this really powerful move in the session today.
00:59:25 Well, yes, Neeraj, that's where all the action, at least since the start of the day, is while we slowly went towards the larger caps.
00:59:34 But yes, the mid caps and the small caps is where the action is. Let me pull up the Nifty mid cap. There you go, a percent higher on the Nifty mid cap.
00:59:42 And among that, the top gainers, MRPL, you have something like an LLC India, which is up nearly 8 percent.
00:59:49 You have Aegis Chemicals up around 10 percent as well among the gainers. Among the losers, you have the likes of an LG, Jyoti Labs, Credit Access, all of which down just about 2 to 3.5 odd percent.
01:00:02 So those are on the mid cap side of things. On the small cap, OIL, that's the one in focus. Top gainer on the small cap index.
01:00:13 Sorry, my apologies on the mid cap index, that one 12 and a half percent higher. Torrent Power, 7 and a half percent.
01:00:20 Polycap, 6 percent of gains. Doing well in trade again today. Zee, Paytm, Macrotech are among the losers.
01:00:29 Zee is down just about 6 plus percent. Paytm down 5 percent. Loda, Macrotech, which is down 3.3 percent odd.
01:00:38 But that's the way we'll probably be going home at close today. In terms of a quick sectoral check, if I may, Nifty Auto has done particularly well.
01:00:49 And we have the Nifty PSU Bank, which has gone up 3 percent. And Nifty Energy has gone home with 2 plus percent of gains.
01:00:56 But with that, we're completely out of time on this edition of the India Market Close.
01:01:01 From Neeraj, myself, everyone who puts the show together, thanks so much for watching.
01:01:06 Have a great evening and we'll see you tomorrow morning for India Market Open.
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