Market Snaps Two Days Winning Streak As Fresh Concerns Mount Over Paris

 Market Wrap-up:

Market snaps two days winning streak as fresh concerns mount over Paris.

A market which looked set to extend gains for the third consecutive trading session, turned direction and fell more than 1 percent after tension gripped Paris in the wake of fresh gun firing. Nifty ends below 7750 mainly led by banking & Financials, IT and metal stocks.

  

HEADLINES FOR THE DAY:

• Cabinet toady approves 10 pct divestment on Coal India.
•  Pipavav defense gains for second day after RBI ups FII limit.
• Dr Reddy's Lab acquires Fondaparinux sodium property rights.
• Dishman Pharma moved higher as clarifies reports on Clovis issue.

STOCKS WERE IN FOCUS:

• GMR surged as the amalanga energy plant gets a favorable tariff order from CERC, which will boost the company's operating profit.
• Railway stock such as kalindee Rail Nirmal, BEML moved higher with volumes after Cabinet approves 4 railway projects worth Rs. 7500 crore.
• Sugar shares rallied for the second day in a row on hopes of higher realizations on account of low production of sugar during this monsoon season.
• Hindalco shares tanks on the back of reports that the company plans to raise up to US$1.5 billion through bond Issue.
• Aviation stocks were in focus as CCI fines for cartelization and aviation companies like jet airways, indigo have decided to challenge CCI's order of Rs 2.58 billion penalty for concerted action in fixing and FSC (revising fuel surcharge) for transporting cargo.
• Gammon India rallied in a negative market as the company gives nod from the company’s board to transfer the Civil EPC business to reduce its high debt by raising fresh money in the new firm.
• Maruti Suzuki today reported that company expects 10 percent growth for the full year in financial year 16 on the back of Strong November sales.

CALLS FROM TECHNICAL FRONT:

• Astramicro EQ gains with huge trading volumes and able to give breakouts of strong resistance as well as close above it which indicates more buying from here. Buy above 147.70 targets 149.20/150.70/152.20 maintain SL of 146.
• The Haritaseat EQ trend is full bullish as the stock is trading near its fresh time high more buying seen in stock in coming sessions , buy above 430 targets 434.30/438.70/433 SL 425.

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Rural Electrification Corporation

Pre Results Estimates

REC Ltd (Rural Electrification Corporation) is coming up with its Q2 results, i.e. July-Sept quarter on Monday i.e. on 9th November 2015.

CURRENT NEWS IN STOCK:

·        As per the information released Company appoints S.K. Gupta as director.

·        They plan to raise Rs 700 crore via public issue of tax-free NCB, which stands for non-convertible bonds.

NOW Q2 PRE RESULTS ESTIMATES:

·        Net profit for the quarter two is seen up by nearly 4.7% on a yearly basis, which can be stood to near around Rs 1,571.3 crore.

·        NII (Net interest income) may also jump nearly 18.5% to Rs 2407 crore from to Rs 2032 crore in the same quarter last fiscal.

·        Loan growth and disbursements may remain steady on Y-o-Y basis (year on year basis)

KEY FACTOR OF RESULT (NPA)

Asset quality is the key factor to watch out in quarter two results so it has been largely healthy in previous quarters. NPA which stands for Non-performing assets were at 0.7 percent in the last quarter i.e. Q1 and company also declared Rs 240 crore of NPAs in June quarter. Provisions will also seen as the company had ramped up provisions (on incremental standard assets) 0.25 percent in the previous quarter.

FROM TECHNICAL FRONT:

Stock tanks more than 10 percent on Friday as well as given major breakouts of its support level. If the results came as per expectation stock will move up will heavy volume, for short term or intraday buying could be seen above 245 and now support could be seen around 255.

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Rajnish Singh is a staff writer at www.trifidresearch.com/blog
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