LIC In Focus | Ask Profit | NDTV Profit

Name: LIC In Focus | Ask Profit | NDTV Profit
Uploaded: 2024-02-19T06:34:40+00:00
Duration: 28 min 6 s
Channel: NDTV Profit

NDTV Profit

10 months ago

With #LIC hovering just over the Rs 1,000 mark, is now a good time to sell?

Get all your stock-related queries answered by our technical and fundamental guests with Alex Mathew and Smriti Chaudhary on Ask Profit. #NDTVProfitLive

Guest List:
Gaurang Shah, Head Investment Strategist, Geojit Financial Services
Rajesh Palviya,SVP - Technical & Derivatives Research, Axis Securities
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00:00 today and also what are we focusing on? Well, it is in fact a day of records. You have the

00:08 benchmark index up as much as a third of a percent. In fact, Smriti, I'm going to ask

00:13 you to take over because I've kind of lost track. Sure, let's, let's, Niftyifty as Alex

00:18 said is up a fourth and a percent at this juncture. Let's also look at the broader markets

00:23 and see where they're at. Let's look at the Nifty mid cap 100 there. It's actually a sixteenth

00:31 of a percent up. So doing much better than the benchmark index as of now. Nifty small

00:36 cap also up about sixteenth of a percent. A great day for markets. Touching records

00:41 high. Let's also pull the Nifty contributors and see what is pulling the index up today.

00:47 If we can have the yes, there you have it. You have the likes of ICICI bank, ITC pulling

00:53 the index up. There's also Bharti Airtel. That's there's some news flow around it. So

00:58 that's that's also there. We're seeing 77 point contribution total. So pretty much looks

01:06 like a broad based kind of increase in the markets today. Let's also pull up the mid

01:10 cap contributors and see what is kind of taking the index up today. If we can have the mid

01:18 cap contributors as well. Yes, it's up six tenths of a percent, but the gainers on the

01:26 mid cap index, if we can have that. Yeah, we have the likes of Gujarat Gas, Biocon and

01:33 Polycab. Now, Gujarat Gas has been seeing some gains after its results, but that was

01:38 a week ago. But since then, it's been it's been on a gaining streak. So that's pretty

01:44 much where we're at. However, we're focusing on LIC today. Now, LIC, according to I think

01:52 on Friday, it came out with a notification that said that it's going to get about twenty

01:56 one thousand seven hundred forty crores as a as a refund from the IT department. Now,

02:03 this is not the first one. They've come out with a similar sort of a refund earlier as

02:07 well. However, we've also seen a strong uptick in the LIC stock. And if you can see if you

02:15 pull up the last one month of the LIC, we can see it's again about in about 17 percent

02:22 and 12 months, it's up 75 percent. It's crossed the one thousand rupees mark. Now, Gaurang,

02:28 I'll come to you on LIC. Do you think there's more upside to the stock left or based on

02:35 the fundamentals, of course, or has the rally we've seen the best of it and it's time to

02:40 maybe book some profits in the stock? Thank you, Smriti, for having me on the show and

02:46 morning to all of you. So give me 30 seconds to answer this, please. We had our coverage

02:53 during the IPO. IPO was at nine hundred plus nine hundred and thirty or forty rupees. Correct

02:59 me if I'm wrong. And then after listing, there was a lot of you cry on the street when the

03:04 IPO was going to hit the market on the street. And then, of course, we saw the listing and

03:11 for a prolonged period of time, the share traded below the IPO price. As a brokerage

03:17 house, we are due to financial services remain positive on the life insurance sector. And

03:21 along with LIC, we have coverage on SPI Life HDFC Life and ICFC Prudential Life. We also

03:28 believe that the entire approach, which was earlier the pandemic in terms of you take

03:36 a term insurance so that you can save a tax. But now, of course, the pandemic, I think

03:41 wisdom has prevailed upon a lot of people. Not only are they taking insurance policy,

03:46 but also they are taking higher sum assured. And because of that, the premium outflow from

03:52 the person who takes an insurance to the insurance companies is very, very high. And that's going

03:58 to be a huge positive even as we go into the future. So we remain positive because the

04:03 stock has enough. You might see intermediate bouts of profit booking. But from a long term

04:08 point of view, we remain positive on all these four things.

04:11 It's not often that the reason for absence is as visibly described as it was right now.

04:20 But it is, in fact, good to be back, as I was pointing out. Gaurang, as well as Rajesh,

04:24 thanks so much, as always, for taking the time. And good morning to the both of you.

04:27 Let's jump straight into the questions. And we've got a lot that have already started

04:31 pouring in. The first one that we're taking today is from Mohit. And he's writing in from

04:36 Ludhiana. He's asking about Trident, which he has bought at a very low price when it

04:41 was, of course, a penny stock. It has gained since that point. And it's currently trading

04:46 at 45 or thereabouts. He's bought at levels of 3.9. His outlook is slightly longer. I

04:53 am going to go to Rajesh, you on the technicals, though. How does it look on the charts on

04:58 the longer term time frames?

05:00 Good morning. Looking at the near term short term structure, the stock is looking positive

05:06 on the long term chart. Yes, on the monthly chart also, we have seen a breakout in the

05:10 previous month and stock is now consolidating post that breakout. So looking at the short

05:16 to medium term perspective, he can hold it. But for long term perspective also, he can

05:21 hold the position as there is a strength on a monthly chart. And looking at the breakout,

05:26 we believe that until the stock is holding above 40 level, possibly again, the stock

05:31 may exhibit some amount of really towards 58 to 65. But it may take time. It's a slow

05:37 mover stock. Stock has given a breakout of long consolidation. So maybe in a couple of

05:43 months we can see a target towards 60. Keep your stop loss at 40 to hold position.

05:49 All right. Understood. Next up, we have a question on SJVN. This one is from Visu. He

05:54 has written to us on YouTube and he's already bought the stock at the current price. And

05:59 he wants to know if he should continue holding on to it. Now, Gaurang, based on the fundamentals,

06:06 how does SJVN look?

06:07 So let me give you a brief outlook on the entire power generation sector. At GeoGeth,

06:15 we believe that all the power generating companies, now this is not a straight up recommendation.

06:20 I'm just mentioning the names which are into this power generation. So your names like

06:23 SJVN, NHPC, your names like Tata Power, Torrent Power, NTPC, CSE and others. All these companies

06:32 and especially NHPC as well as SJVN, if you see over a long period of time, these stocks

06:39 were also languishing at around about 30, 40, 50 rupees for a long period of time. And

06:46 then whatever changes the government did for the entire power generation, transmission,

06:50 distribution and power equipment sector has resulted in the kind of performance that we've

06:54 seen in all the power generating companies. Not a straight away recommendation, but yes,

07:01 SJVN, one can see, I mean, there is no doubt, you know, any stock which goes up in a matter

07:07 of three months, six months period, you do get profit booking into that stock. But we

07:11 are extremely positive on the power generation pack. The names that we are positive on coverage

07:16 fundamentally Tata Power, Torrent Power, NTPC, CSE. These are some of the power generating

07:21 companies that we are positive. But these companies are also, more than that, they are

07:25 government owned companies. So definitely, that looks to be a very promising future.

07:31 You know, while we are at it, why don't we also discuss the power finance companies and

07:37 among them a new entrant to the stock markets, IREDA, is something that we've discussed often

07:44 on this platform as well. It's a stock that has gained quite significantly, Gorang. And

07:49 some people have said that along with it, it has fuelled PFCREC as well, because those

07:56 that did not get IRIDA, because of the prospects of the space have jumped into PFCREC. At least

08:01 that's one theory. We've got Murali Krishna from Mumbai, who's got allotment, I think

08:06 at the IPO stage, and he's looking to hold for at least a year more. The question is,

08:13 should he take some money off the table considering that the stock has risen quite substantially?

08:17 Gorang, an extension to the conversation you were having just now about power.

08:22 So I think if power generating, we are positive Alex. Power finance project companies will

08:26 also do well, because eventually we'll need financing and financial closures for creating

08:33 new infrastructure. And with the kind of capacity that the government has lined up, almost about

08:36 500 gigawatts to be in the next three to five years, most of it is going to be solar wind.

08:42 Some of it is going to be hydro. And maybe a small part is going to be coal fired. But

08:48 if new projects are going to come up as far as power generating capacities are concerned,

08:52 power finance companies are also likely to do well. So we had coverage on PFC a while

08:56 back. We have removed the coverage now. We don't have it. On IREDA, I was listening into

09:01 the commentary from the management post listing, and I was very impressed in terms of the entire

09:07 lineup in terms of order book that is in front of them. Stock came out with an IPO very recently.

09:14 I think the floor was 30 or 36 rupees, correct me if I'm wrong, Alex. And from that level,

09:19 we saw almost 200 rupees. And then we saw circuit up, circuit down. In terms of valuation,

09:24 it looks a little bit expensive, given the kind of earnings that we already have in the

09:28 backdrop. And if you, you know, in stock market, you invest so that you earn some profit on

09:35 your investments. And when you're getting a decent profit, you should never feel shy

09:38 to book that profit.

09:40 Okay, got it. Next up, we have a question from Uday Shivkumar. This one's on Union Bank

09:46 of India. They bought the shares at 40 rupees. It's currently trading around 140. Rajesh,

09:54 from a technical standpoint, do you think there's a most upside into the stock or should

09:59 one book maybe half the profits and keep holding on to the rest of it?

10:07 So very strong, really, we have seen in most of the PSU bank. If you talk about Union Bank,

10:12 stock is in process of forming a rounding bottom kind of formation on a long term chart.

10:17 Looking at the longer term timeframe, yes, he can hold the position as overall structure

10:23 is turning on the bullish side for long term structure also, even on the short term timeframe

10:29 also, there was a corrective move since last couple of weeks. But still, the stock is holding

10:33 the ground on the near term chart and stock is comfortably holding above 50 day, 100 day

10:39 moving average. That clearly shows that yes, we may again see a buying interest to continue

10:44 in this stock and possibly Union Bank can move further higher. So we expect that till

10:51 the stock is holding above 130 level, possible target on the higher side, we can see towards

10:55 165 to 170 in short period of time. So hold is the recommendation at this moment for Union

11:02 Bank. Got it. Gaurav, coming back to you, Natco Pharma

11:05 is the name of the counter and we've got a question coming from Babu. He's been holding

11:10 since IPO and he's wondering whether to keep holding. The stock is of course up and about

11:16 in trade today as well. It's up about four and a half percent. Gaurav, what's the view

11:24 on Natco Pharma? Sorry, sorry. So on the fundamental side,

11:28 we have coverage on Natco Pharma and the stock was in the news for some good and bad news

11:34 both together. He's gotten that, I believe IPO price. I don't even remember what the

11:38 floor was because it must be quite some time back. At current levels, I think where the

11:43 stock is trading, if he's not in need of money, Alex, if he doesn't, and if he's got time

11:48 by his side, he can give a little bit of more time or else maybe he can possibly consider

11:53 part profit booking in case if he needs the money. But we have a positive coverage on

11:58 Natco Pharma from a long term point. Okay. Next up, we are talking about Azad

12:03 Engineering. This one's from Rakesh Arora. They've already bought the shares at 600 and

12:10 it's a recent listing, Gaurang. If you can give us your view from a fundamental standpoint,

12:15 I think it's been doing quite well. If you look at the share, it's up about 77% in the

12:22 last one month itself. It's a recent listing and one of niche plays

12:28 in terms of the sector that it is associated with. Unfortunately, we didn't have a coverage

12:35 nor do we have a fundamental coverage. I won't be able to give out specific in terms of buy,

12:40 sell and hold, but it's a promising company in terms of future and post the listing and

12:45 before the IPO was going to hit the street, the management was very optimistic as far

12:50 as the business prospects are concerned. Unfortunately, no coverage, so no specific coverage.

12:55 Okay, fair point. Sula Vineyards is a stock that is moving quite a bit in trade today.

13:01 In fact, let's pull up the intraday chart just to give you an inkling of the kind of

13:05 movement in the price. It is down about 6.9% and very close to the low point of the day.

13:11 There are apparently very large trades that are taking place in this particular counter

13:16 or have taken place in the very recent past. The question is coming in from Karthik. He

13:20 is writing in from Vishakhapatnam and he is asking about whether or not he should average

13:25 or add more at the current levels. He is currently holding but he has not told us what level

13:30 he is holding at and he is in it for the long term. So I will ask Rajesh on the charts,

13:35 is this an opportune moment based on the price action to enter or do you think you should

13:40 wait for a little longer? So since last couple of weeks, some supply

13:47 pressure is taking place in the stock now. In this process, the stock is now almost trading

13:52 near to its 50-day moving average. So if it slips below to 570 mark, then possibly we

13:58 can see further lower level towards 535 also as near term trend is slightly on the bearish

14:05 side. So I think he should wait for another one or two trading sessions. If it breaks

14:10 below 570, I think then possibly 535 would be the level where he can try to buy or average

14:17 some of the quantity in the decline. If at all the stock does not break below 570, some

14:24 pullback we can see towards 600-610. That's the major challenging level at this moment

14:30 for near term setup until the stock not crosses above 610. It may remain in consolidation

14:37 for some time. So I think wait for a dip towards 540-535 to add a further position in the decline

14:46 world. Alright, so those are the levels to watch

14:48 out for in Sula if you want to add more of it. Now we'll slip into a short break but

14:55 after the break we'll take more of your questions. So stay tuned.

14:58 Thanks for watching.

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18:50 Welcome back. You're watching Ask Profit and we're in the midst of the queries that we've been taking from social media and in case you've got a question for us you can send them to us on our WhatsApp number which is on your screen right now.

19:02 So, let's get started. So, let's get started. So, let's get started. So, let's get started.

19:12 So, let's get started. So, let's get started. So, let's get started.

19:32 The question is where does it go from here?

19:35 Would you buy right now if you have the ability to?

19:37 Vijay Kumar is asking what the target is for about a year down the line?

19:43 Alex honestly speaking, I think when the stock was at about 15 or 20,000 rupees, we had coverage

19:50 on MRF.

19:51 Our targets were in place and where the stock is trading right now is way beyond the targets

19:58 that we had in mind.

19:59 So currently, we don't have any coverage.

20:01 I will not be able to answer this particular question right away in the form of buy sell

20:07 hold.

20:08 But let me say this, it's one of the best placed companies in the auto tire manufacturing,

20:14 that is auto ancillary sector, point number two.

20:18 Based out of South India, has a huge rubber plantation, which is the core commodity to

20:24 make a car tire or maybe an automobile tire.

20:28 Has large presence not only in India, but also in the overseas market.

20:34 Unfortunately, I will not be in a position to give a straight out buy sell and hold because

20:38 we don't have a coverage, but it's a very strong balance sheet.

20:42 Rajesh, anything to add on the technicals?

20:45 And I do understand that even from your perspective, it's a little challenging considering that

20:50 it's not a stock that is very, that sees high volumes at all.

20:55 Yeah, a very thinly traded counter.

20:59 And those who are looking to invest for a longer term perspective, they only generally

21:05 participate in these kind of stock.

21:08 When market gives you opportunity in volatile market, like, you know, if you get any kind

21:12 of significant dip or corrective move, then it's a stock again, you know, to keep in their

21:17 long term portfolio is across all time frame, the stock is moving in, you know, or showing

21:23 the strength.

21:24 And I think buy on dip should be your always a strategy in these kind of stock.

21:30 On looking at the near term short term structure, 1,44,000 is the immediate support area on

21:37 the near term perspective.

21:39 So if you get any opportunity around those level for near term trading perspective, you

21:45 can buy around those level.

21:46 And again, the trend is likely to continue further higher and you can see further more

21:51 higher level as overall structure is still in the bullish trajectory.

21:55 Right.

21:56 Next up, we have a question from Devang.

21:59 And they're talking about two counters, Rajesh.

22:01 The first one is DCW that they've bought at 61 levels.

22:05 It's currently below that price.

22:07 And the second one is KCP Sugar that they bought at 43 levels and that the current price

22:13 is below that as well.

22:15 What would you suggest Devang to do with it?

22:18 Any specific targets that they should look out for?

22:23 So DCW is in the corrective.

22:29 Stock is now trading near to its important and critical support area of 58.

22:35 So that level needs to watch.

22:36 If it's hold those levels, some pullback action we can see.

22:40 On the higher side, 65, 66 is the immediate hurdle.

22:44 So where one can look to book profits.

22:47 Understood.

22:48 Sankara Kumar is writing from Chennai.

22:51 He's asking about endurance technologies, which he's bought at levels of 1786.

22:55 And he's asking whether to hold or sell.

22:58 Gaurang, do you have any coverage on this one?

23:01 And would you suggest holding on?

23:03 Well, it's one of the niche plays again, you know, likes of endurance technologies, big

23:10 send technologies, Amber Enterprises, just to name a few companies which are into niche

23:15 segments.

23:16 So endurance tech, we have a fundamental buy coverage.

23:19 We remain extremely positive on the long term prospects of the company.

23:24 And post the third quarter numbers, the momentum that was given out by the management in terms

23:28 of business outlook, that looks very, very strong.

23:32 So if you have a long term investment, or if you're planning to buy in your portfolio

23:37 from a long term perspective, I think we should definitely do that.

23:40 Or even older stock in case if you already invested.

23:43 Got it.

23:44 Next up, we're talking about Nalco.

23:46 Now, this stock has gained in the last couple of days after its third quarter earnings,

23:51 it's up about 16% in the last five sessions itself.

23:56 But Gaurang, would you suggest buying at this point?

24:00 I'm sorry, which is the name of the company?

24:04 Nalco, Nalco, National Aluminium Company.

24:06 Well, at current, see, if you have it already, you can definitely continue to hold it.

24:12 We have coverage on Nalco.

24:14 And in terms of the outlook of business, I was reading a report and the management

24:18 was mentioning about some amount of offtake, picking up steam as far as the products are

24:25 concerned.

24:26 If you want to add to the stock, you can definitely add to it.

24:29 But at a lower level, I think you can definitely add to the stock if you want to make a new

24:34 investment.

24:35 But if you already invested at lower level, you can continue to hold this stock.

24:39 Unfortunately, it's not going to be enough time for another question.

24:41 But I'll quickly take a view on the benchmark and where it's heading today.

24:45 Rajesh, I know it's hard on a day when it's making new fresh highs.

24:51 But what's the likelihood of ending at a fresh record today?

24:57 So Alex, Nifty manages to cross its call concentration area of 22,100.

25:03 So if it's more than those levels, then possibly this really can extend 22,300 is the possible

25:08 target we can see in next coming trading session.

25:11 So I think till Nifty is holding about 22,100, one should be on the buying side of the market.

25:19 Even on the Bank Nifty also, 46,500, that's the important level on the spot.

25:23 And now comfortably, Bank Nifty is also holding those ground.

25:27 So I think these two levels are very important to continue this uptrend.

25:32 If it's a hold 46,500, then possible target for Bank Nifty we can see towards 46,800 to

25:38 47,000 also.

25:39 So both indices are looking bullish, long built up setup is there.

25:43 So I think one can hold their long position.

25:45 We see that this momentum can extend further in next couple of days also.

25:50 All right.

25:51 Thank you so much, Rajesh and Gaurang for joining in and for answering so many questions

25:55 for us.

25:56 And viewers, thanks for tuning in.

25:58 And we'll be back tomorrow, same time at 11.30am.

26:02 But stay tuned, lots more coming up on NTV Profit.

26:04 Thank you.

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LIC In Focus | Ask Profit | NDTV Profit

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