Monday, 16 July 2018

4 Stock Recommendations for July 16 to July 20, 2018


Stock PickObservation
CompanyNCC LtdThe stock is trading in a lower top-lower bottom chart structure and has witnessed a breakdown below its support levels. It has also shown bearish momentum on the weekly MACD-Histogram. Derivative data indicates fresh short formation.
Recommendation
Buy or SellSell (July Futures)
RangeRs88.5-89.5
TargetRs83
Stop LossRs93.1
Duration1 week
200-D-EMARs111
NSE Code NCC
 
Stock PickObservation
CompanyAmbuja Cements LtdThe stock is trading in a lower top-lower bottom structure on the daily chart. Derivate data indicates fresh short formation in the stock.
The stock has also witnessed a bearish crossover on the daily MACD-Histogram, which affirms our negative view on it.
Recommendation
Buy or SellSell (July Futures)
RangeRs197.8-199.8
TargetRs186
Stop LossRs206.4
Duration1 week
200 D-EMARs236
NSE CodeAMBUJACEM
 
Stock PickObservation
CompanySanofi India LtdThe stock has witnessed a breakout from its sideways consolidation on the weekly chart backed by an uptick in volumes. It has also shown positive momentum on the daily and weekly MACD-Histogram. We expect the positive momentum to continue in the following week and recommend a buy with a target of Rs5,810.
Recommendation
Buy or SellBuy  
RangeRs5460-5510
TargetRs5810
Stop LossRs5260
Duration1 week
200 D-EMARs4847
NSE CodeSANOFI
Company Name - Tata Chemicals - BUY
CMP: Rs706; Target; Rs826; Upside: 17%
 
Tata Chemicals Ltd (TCL), the third-largest producer of soda ash globally, stands to benefit from the rising end-user industry demand. This would aid maintain margins under this segment. A greenfield project with an investment of Rs270cr for biotechnology manufacturing unit (~5k MT) of food ingredients and formulations in Nellore, Andhra Pradesh, augurs well for TCL. TCL has planned to foray into highly dispersible silica business with an investment of Rs295cr. This would enhance its margin and diversify its portfolio under the specialty business. 


We estimate revenue to grow at 9% CAGR led by higher volumes under soda ash and new product launches under consumer business in FY18-20E. We expect EBITDA CAGR of 11% over FY18-20E with an increase in margin by ~90bps to 22.2% in FY20E. However, we expect moderate rise in PAT on account of higher effective tax rate. 

NIFTY FUTURE TIPS

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