Wind Energy Stocks In Focus | Ask Profit | NDTV Profit - video Dailymotion

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With reports of the government is considering a change in how they buy wind energy, will there be an impact on such companies going forward?   Get your queries answered by our 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 and Derivatives Research, Axis Securities  ______________________________________________________   For more videos subscribe to our channel: https://www.youtube.com/@NDTVProfitIndia Visit NDTV Profit for more news: https://www.ndtvprofit.com/ Don't enter the stock market unaware. Read all Research Reports here: https://www.ndtvprofit.com/research-reports Follow NDTV Profit here Twitter: https://twitter.com/NDTVProfitIndia , https://twitter.com/NDTVProfit LinkedIn: https://www.linkedin.com/company/ndtvprofit Instagram: https://www.instagram.com/ndtvprofit/ #ndtvprofit #stockmarket #news #ndtv #business #finance #mutualfunds #sharemarket Share Market News | NDTV Profit LIVE | NDTV Profit LIVE News | Business News LIVE | Finance News | Mutual Funds | Stocks To Buy | Stock Market LIVE News | Stock Market Latest Updates | Sensex Nifty LIVE | Nifty Sensex LIVE

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01:38 Good morning and thanks so much for joining in.

01:39 You're watching Ask Profit.

01:41 My name is Alex Matthew, with me is Smriti Chaudhary.

01:43 And we'll take you through the next half an hour or so of trade.

01:46 Like the name suggests, the show is aimed at getting you answers to all of

01:49 your stock related questions.

01:50 And so if you have them, send them to us on the WhatsApp number on your screen.

01:55 Or in fact, on any one of our social media platforms.

01:58 Let's very quickly take you through how the markets are looking right now.

02:01 And you have the benchmark Nifty 50.

02:03 That's trading in a range.

02:04 It's up about a tenth of a percent or so at this juncture.

02:08 And it has traded in a very narrow range today.

02:11 And the broader markets more or less reflecting that as well,

02:14 at least the mid cap indexes.

02:16 It's just about flat right now.

02:18 You have the small cap index.

02:20 It's trading with cuts of about half a percent at this juncture.

02:24 In terms of the key indices that are moving in trade today,

02:26 it's the energy pack as a whole that's in focus, which is up about 1.6%.

02:32 In fact, a lot of the power companies in focus and

02:36 they're gaining quite a bit in trade today.

02:38 You have oil and gas, which is also about 1.4% higher.

02:43 And you have pharma as a pack that is also doing reasonably well.

02:46 Among the losers, you have the media index.

02:49 It's down about 1.6% and is the worst performer sectorally.

02:53 You have the IT index is also lower by about half a percent and

02:56 metals are a little bit under pressure.

02:58 But interestingly, you have a couple of counters that are related to

03:03 the metal index that are doing quite well or metal sector that are doing quite well.

03:07 Those are the graphite manufacturers,

03:09 HEG as well as graphite up and about in trade today.

03:13 But we're focusing on a different set of stocks in trade today and

03:18 that has to do Smriti with the wind companies, right?

03:23 Right, yes.

03:25 We are seeing some downtick in wind stocks.

03:27 And if you look at some specific names, you look at Suzlon,

03:31 that's down about 4.5%, Orion Green down 3%, Sterling Wilson down about 1.5%.

03:37 Inox is down 5%, both the stocks, Inox Wind and Wind Energy as well.

03:43 But we have Varsha joining in to tell us a little bit more about this and

03:48 why the stocks are down today.

03:50 So hi Smriti, so if you see as you rightly pointed out,

03:54 Wind Energy stocks are under pressure.

03:56 So Inox Wind is down 5%, Samvi Movers is also down 7% and

04:00 KP Energy is down almost 5%.

04:02 Now according to some media reports,

04:04 ministry had decided to bring back reverse bidding as wind tariffs have risen in auction.

04:10 Now ministry had sent letters to the agencies for the same.

04:13 Now this is on the back of under subscription and

04:15 higher tariff discovery in recent wind bids.

04:18 So if you see there are, just to give you in context,

04:21 there are two types of bidding, one is reverse and the other is closed bidding.

04:25 Under reverse auction method, bidders continue to bid against each other after

04:29 the initial bids are opened and until a bid tariff goes unchallenged by a counter bid.

04:36 Now incidentally the ministry had given up this reverse auction method at

04:41 the beginning of this financial year.

04:43 This method did bring down the tariff but the problem was company had lot of

04:47 inventory that they sold off the inventory at very low prices,

04:50 which led to poor capacity installation which affected the wind industry as a whole.

04:56 So the reverse auction then was given up and

04:58 closed bidding system was adopted, post which tariff did rose.

05:03 Now NDTV profit did spoke with management of INOX wind in Q2 FY24,

05:08 where he said was that last time this was a problem as everyone had excess inventory

05:12 and sector was not doing well, but now situation is different.

05:15 Government has target and company don't have excess inventory.

05:19 So according to him this shouldn't affect the industry as a whole,

05:24 but we are seeing pressure on this stock, so let's see what happens.

05:27 All right, thank you Varsha for that.

05:29 On that note, let me introduce you to the guests for today.

05:32 We have Gaurang Shah of Jiodit Financial Services and

05:35 Rajesh Palviya of Axis Securities joining in.

05:38 Welcome to both of you.

05:40 Now, Gaurang, you heard Varsha talk about how energy companies

05:45 may bring back reverse bidding.

05:47 I've seen that the street is not taking positively to it, but

05:51 how are you viewing this development to play out for these energy stocks?

05:55 >> Thank you, Smriti, for having me on the show and

06:00 good morning to all of you also.

06:02 I mean, power generation, power transmission, and power equipment.

06:08 All these sectors are going to go through a major changes because of

06:13 the new power capacities that has gonna come up in the next three to five years.

06:18 What I've been given to understand is somewhere close to about anywhere between

06:21 350 to 500 gigawatts is the new capacity lined up.

06:25 This is the initial part.

06:26 As we go forward, there'll be more capacities that will be added.

06:30 So definitely power generating companies are gonna be benefited,

06:33 whosoever is present in the solar or wind energy.

06:36 We do have positive coverage, Smriti, on some of the companies which are also into

06:43 conventional and also into solar as well as wind.

06:46 We are also positive on power transmission and distribution companies,

06:50 power equipment companies, because all these things will go together.

06:54 It's not like one single sector is gonna perform.

06:56 So in the power generation, we are positive on Tata Power, NTPC, and CESC.

07:02 We don't cover stocks like Suzlon or

07:04 the rest of the down the line small cap or micro cap companies.

07:10 We are positive on power transmission and distribution, and

07:12 hence we have a positive coverage on power grid.

07:15 In power equipments, we are positive on company like KEC International,

07:20 L&T, Siemens, etc.,

07:25 because they are into making of power equipments which enable

07:29 transmission process from manufacturing to the end user.

07:33 So my sense is that being invested in fundamentally sound companies from a long

07:37 term point of view will make a lot of difference rather than going in for

07:42 small and micro cap companies.

07:44 >> Got it, all right.

07:46 Gauran, good morning to you and good morning to Rajesh as well.

07:49 It's time to jump into the queries.

07:50 We've got Amit Murkutef, who's riding in from Mumbai,

07:54 who's got the first question today.

07:55 And he's asking about a couple of counters, different sectors, of course.

07:58 Hindustan Zinc is one and Bata India is the other.

08:01 He's asking if these two are good buys at the current levels for

08:04 a period of two years.

08:06 I'll come to you, Rajesh, on the technicals of this one, of these two counters.

08:12 Do they look interesting to you?

08:13 >> See, Bata is in downtrend.

08:16 And since last couple of months,

08:19 we are seeing that continuous supply pressure is taking place in the stock.

08:22 The stock is making lower top, lower bottom formation on the daily chart.

08:26 Stock now slipped below to all its near-term, short-term,

08:29 as well as long-term moving averages.

08:31 So trend is still on the weaker side.

08:33 Though stock is attempting to show some pullback action from its recent swing low.

08:40 But still it's failed to cross above 1450, 1460.

08:44 That's the immediate supply zone for Bata at this moment.

08:49 Until the stock not crosses above 1460, 1470 level on a weekly closing basis,

08:54 trend is likely to remain on the weaker side and we may see further more supply.

08:58 So I think Bata, I think they should avoid at this moment for

09:04 trading perspective as the structure is on the weaker side.

09:07 Hindustan Zinc is consolidating again in the consolidation mode.

09:12 If we analyze the longer term time frame,

09:14 almost it's consolidating in the same price range of 330 to 300.

09:21 That's the price range since last 8 to 10 months.

09:25 And still stock not manages to break out above 330 kind of zone on a closing basis.

09:32 So once the stock crosses above 330, yes, he may look to buy this stock.

09:37 Then possible really we can see on the higher side towards 380,

09:41 even 400 kind of zone in Hindustan Zinc.

09:44 So at this moment, if he wished to buy an equivalent,

09:48 then he can keep a stop loss of 290 to buy an equivalent stock.

09:52 On the breakout above 330, he can add more positions.

09:56 Alright, understood.

09:57 Next up, we have a question from Manasi and they're talking about two counters,

10:01 Oberoi Realty that they bought at 1518 and SJVN that they bought at 147.

10:08 I think both the stocks are below, were bought at elevated prices, Gaurang.

10:14 Now we have seen Realty sector, Oberoi Realty is also up over a percent as we speak.

10:19 Based on these two stocks, what's the long term view for both of them?

10:25 Firstly, let me speak about the real estate sector,

10:29 because this sector was down and out, bad part of the market.

10:34 We had a lot of high beta moments in all the counters,

10:39 whether it is Oberoi Realty, whether it is Prestige Estates,

10:42 whether it is Shoba Limited, whether it is DLF or whether it is Godrej Properties.

10:46 But then a lot of changes came into this sector because of the government policy

10:51 and RERA brought in a lot of discipline, which was missing.

10:54 On Oberoi Realty, we had a buy recommendation earlier,

10:59 but in the recent run up, the targets that we had set aside were achieved.

11:03 And hence we have given out book profits or sell recommendation on Oberoi Realty.

11:08 This is not only restricted to Oberoi Realty, even on Godrej Properties,

11:12 we have similarly, because our targets were met,

11:15 we have given out book profits or sell recommendation.

11:18 Though having said that, I think lower levels can be revisited

11:22 in terms of long term investment ideas, provided you have the numbers

11:27 encouraging you to take a long term call on the counters.

11:32 And I am quite sure, today itself, I think one of the companies that came out with a record

11:36 the sales is the signature global. This is not a recommendation.

11:39 I am just quoting a news item that I read this morning.

11:42 So there is a lot of appetite for new properties, be it residential or commercial.

11:46 But in the immediate short to medium term, the valuation looks a little bit stretched.

11:51 On SJVN, unfortunately, we do not have coverage.

11:54 Then let me very quickly ask Rajesh, what is your view on SJVN is on the technicals.

12:00 Rajesh, what is your view?

12:01 So Alex, after the correction, stock is consolidating and holding the ground

12:11 around its important support area of 115. That is the important and critical support

12:16 area of this corrective move. If it breaks below 115, then we may see furthermore,

12:20 extended supply pressure and that possible we can see lower target towards 100 kind of level also.

12:26 So at this moment, I think he may hold the position with stop loss of 115.

12:32 If the stock manages to cross above 130 mark, then yes, possible we can see really towards

12:39 145 to 150 kind of zone the stock in the short term basis.

12:44 But looking at the near term short term structure, we see that it may take time as

12:52 stock is showing a long consolidation kind of behaviour at this moment. So I think it may take

12:57 time if he can remain invested for some longer period, then yes, keep stop loss of 115 to hold

13:03 position. All right. Let's get the next question in and this is on Titagarh Rail. I am just pulling

13:10 up the share price as we speak. It is currently at about 940 or thereabouts and we have got

13:17 a viewer that is Shri Kishore Sharma writing in from Motihari, Bihar that is bought at levels of

13:24 225. Now that's quite the buy price and the question is Gaurang, what the prospects are for

13:32 the next couple of years? This is of course part of a pack that is gained quite significantly on

13:36 the back of the government's push for expansion in the space. Absolutely. So I'll comment on the

13:42 sector, Alex, for the benefit of the viewers and this investor. My sense is that with the kind of

13:49 changes that the Rail Ministry and Government India is bringing into the Indian Railways to

13:55 resolve the last mile connectivity issue is going to offer extremely well, not only for those

14:00 companies which are government companies associated with Indian Railways, but also

14:03 private sector companies which are associated with Indian Railways. So it is going to be the case

14:08 that you have huge opportunity in terms of orders coming in, whether it is going to do with

14:13 upgradation of wagons, it is going to do with laying new railway tracks or whether it is going

14:17 to do with changes of passenger coaches, improving the speed of the train, etc. My sense tells me that

14:26 for the next three to five years, if you invested in railway related stocks, then I think it's going

14:31 to be a great opportunity. Next up, we have a question on YouTube. This one's from Sid.

14:37 And this is specifically for Rajesh. They've specifically mentioned to take this to you.

14:44 This is on GPPL, Gujarat Pipa and they've not mentioned the buy price, but they want to know

14:51 the mid to long term view on this. So what are the charts showing on this specific counter and

14:56 if there are any levels you should watch out for? So we have seen already there is a breakout

15:03 happened in this stock and looking at the overall structure for short to medium term perspective,

15:08 we believe that if the stocks continues to hold above 195, 200 kind of level, then there is a

15:14 high possibility we can see again resumption of really in the stock. Once the stock crosses about

15:20 218 level, then possible target in very short period of time, we can see towards 250 to 260.

15:27 So that's the immediate target which we can see on the short term basis. But if we wish to hold

15:33 it for longer term perspective, I think this stock has potential to again reach to its previous all

15:41 time high trajectory also as overall structure is looking bullish and on the monthly chart,

15:47 stock also showing strength. So we believe that one should hold the position with stop loss of 195

15:52 possible target we can see in short term towards 250 to 260 also.

15:56 Fair point. All right, we have to slip into a very quick break.

16:00 Viewers as well as gentlemen, do stay with us. We'll be back very quickly.

16:15 Thank you.

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20:20 Thank you.

20:26 Welcome back. You're watching Ask Profit on HDB Profit. Let's quickly jump into the questions.

20:32 The first one is from Srimati Sridharan on YouTube. They're talking about BLSE services.

20:37 They bought the stock at 316 a piece. And let's pull up the chart and see where the stock. Yeah,

20:44 it's about 369 as we speak. It's down about two and a half percent. Rajesh, on this stock,

20:51 what are the key levels that you should watch out for? So this is recently listed stock and we have

20:57 very limited data to analyze this stock. But whatever data we have, that clearly shows that,

21:04 you know, on the downside, the immediate support area is at around 350 levels. So that level needs

21:09 to watch on the near term perspective, which brings below 350. Then we may see further more

21:15 profit booking in the counter and then it may slide further towards 320 level also. On the

21:20 higher side, 400 is likely to act as a immediate supply zone on the higher side. If it stops

21:25 crosses those level, then possible again buying interest. We may see in the stock and then stock

21:32 can really further higher from the current level. So 400 is the key resistance and 350 is the

21:38 immediate support area. All right. Gaurang, interesting question for you. Mohit from

21:42 Ludhiana is talking about State Bank of India, which he's bought at levels of 184. Now,

21:49 obviously, given the buy price, you can assume that he's bought quite a while back. He's got

21:54 1000 shares. Yeah, Covid lows. So 1000 shares of SBI. The stock is currently trading at 771.

22:02 He's looking for an outlook for the next five years. What is the kind of upside that you would

22:06 expect? This is really a difficult one to answer very straight off. So let me give this reply.

22:16 Bro, you wanted at 180, the stock is at about 780. You got 1000 shares. At least do this.

22:26 First of all, we have a positive coverage. Let me give a disclosure from a long term point of view.

22:31 And I think the targets that we had set aside, Alex, we've discussed State Bank of India many

22:36 times, was 740 or 760 or thereabouts. Today's share price, the first target is already in place. So

22:41 do as a small thing, sell about 100 shares. You will bring in whatever you have invested

22:49 and a decent amount of profit. The balance 900 shares will be of zero cost, which will leave

22:55 you with a lot of elevated risk appetite because you will not be putting in any money. It's a zero

23:00 cost valuation. On fallback of earning visibility, my sense is that the public sector banks'

23:05 difference in terms of underperformance compared to the private banks is now a thing of the past.

23:11 I think our fourth quarter numbers are just around the corner, Alex. We'll wait for the

23:16 fourth quarter numbers to come through. But as of now, we have a positive coverage on State Bank

23:19 of India. Given the price that he's bought it, he can book share profit in 100 shares,

23:24 bring in whatever he's put in and some profit and make the remainder costless.

23:29 All right. Got it. Next up, we have a question from Amit Rastogi and this one's on INOX wind

23:34 energy. While we've discussed the fundamentals of this as part of focus, Rajesh, Amit bought

23:41 the stock at 5500 levels and they want to know the selling range for this particular stock.

23:46 Smriti, you're talking about INOX wind?

23:50 INOX wind energy.

23:51 Yeah, only sellers in the stock right now.

23:53 It's, yeah, it's down about 5, yeah.

23:56 More time? Is it delivered today or tomorrow?

23:59 Sorry?

24:00 So it's at lower circuit at this moment.

24:03 Yes, yes.

24:04 Stock is now trading almost near to its 20-day moving average, which is placed at around

24:11 550 kind of zone. If it continues to hit this kind of furthermore supply pressure,

24:18 we can see furthermore supply pressure likely to continue. As INOX wind is also at lower circuit,

24:24 INOX wind energy is also at a lower circuit. So I think these stocks are under pressure

24:30 since last couple of trading session and we can see furthermore a down move.

24:34 So as he has bought at lower price, so I think he can now keep stop loss at around 6350. That's

24:43 the immediate level he can keep in eye. If that level breaks, then he should book the whatever

24:50 profit is left with the stock. So 6350 needs to be keep as a stop loss if he's already holding

24:58 these positions. Coming back to you, Rajesh, on this next one, Tata Steel, we've got a question

25:03 coming from Rajesh Maheshwari. He's asking about this counter. He's bought 2800 at an average price

25:08 of 105.5. He's looking for the short to medium term outlook. What level should he look at?

25:13 So whole metal basket is showing good traction and Tata Steel after a very long period

25:19 stock managed to give breakout of this consolidation range. If we analyze on the

25:23 longer term time frame, after almost a consolidation of two years, stock managed

25:29 to give this breakout. So looking at this breakout in the previous week and the stock is sustaining

25:35 above 148 level, that's the immediate level and important level for the stock at this moment.

25:41 If it's hold above 148 level for some more couple of trading session, then possible

25:46 follow up really we can see towards 160 to 165 for trading perspective. And if he can hold for

25:53 further more longer period, then possible target we can see towards 180 also in the stock. So 148

25:59 needs to keep as a stop loss as he has bought recently. That's the important and critical

26:06 level for Tata Steel now. Alright, got it. Next up, we have a question from Shrikant and this

26:11 one is on Vascon Engineering. They bought the shares at Rs. 87 apiece and they bought 555

26:18 shares for this. They want to know if they should sell the stock. If you look at the stock,

26:22 it's down about 1.5% as we speak at around Rs. 74, so below the buy price here. Rajesh,

26:29 what are the key levels that you should watch out for and would you suggest selling at this juncture?

26:34 The stock now slipped below to its 20-day, 50-day moving average and moving average crossover is

26:40 also suggesting that we may see further more pressure in the stock. So I think he may try to

26:46 exit the stock as on the higher side, 82 is the key supply zone at this moment. Until the stock

26:53 not crosses those levels, the stock may remain under pressure only. Even in the recent fall,

26:59 the stock is now approaching to its previous swing low also, that is at around 72 kind of level. If

27:06 it breaks below 72, then we may see further more extended supply pressure towards 65 kind of zone.

27:11 So I think he may try to exit the position as the trend is on the near term as well as on the

27:16 short term is on the weaker side and we may see further more pressure in the stock in coming

27:22 trading sessions. Got it. Coming back to you, Rajesh, on the option strategy that you would

27:27 suggest for ITC, this is a question coming from Abhishek and he is looking for the target to pay

27:33 attention to with regard to the March expiry. See, if we analyse the overall structure for ITC,

27:42 stock is in very tight consolidation range. Since last couple of weeks, we are seeing that stock is

27:50 moving in very limited price action. So looking at the overall structure, we believe that till

27:57 stock not crosses above 420, there won't be any traction we will see in the March series itself.

28:04 But looking at the near term short term structure, if you wish to buy a call option as stock has

28:10 already shown some consolidation action, some momentum is there in FMCG pack. So we believe

28:16 that at this moment, he should look to buy at the money call option that is at trading 410 call

28:23 option that is trading at around 9 rupees 90 paisa. That call option he can keep because

28:28 looking at the consolidation, we believe that 400 needs to keep as a stop loss. For this option,

28:34 he should place a stop loss at around 4 rupees. And if at all stock crosses above 420, then

28:39 possible target for this option, he may get around 18 rupees to 20 rupees. So keep a stop loss of 4

28:45 rupees to buy 410 call option for ITC for this March series. Already consolidation has been done.

28:52 So there is a high possibility that stock may attempt to give some pullback from current level.

28:58 All right, got it. Now, unfortunately, we're completely out of time. Thank you so much,

29:03 Gaurang and Rajesh for joining and for answering questions for us and viewers. If you were not

29:09 able to take your questions today, we'll definitely try and take them tomorrow. But

29:14 stay tuned. Lots more coming up on NDTV Profit.

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Wind Energy Stocks In Focus | Ask Profit | NDTV Profit

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