- #Sensex, #Nifty decline
- #CochinShipyard in focus
Get all your stock-related queries answered by our technical and fundamental guests with Alex Mathew and Smriti Chaudhary on 'Ask Profit'. #NDTVProfitLive
- #CochinShipyard in focus
Get all your stock-related queries answered by our technical and fundamental guests with Alex Mathew and Smriti Chaudhary on 'Ask Profit'. #NDTVProfitLive
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02:15 >> Good morning, you're watching Ask Profit on NETV Profit.
02:19 I'm Smriti Chaudhary and with me is Alex Matthew.
02:21 And for the next 30 minutes, we'll take all your stock related queries.
02:24 You can write to us on any of our social media channels or
02:27 through the WhatsApp number that will be flashing on your screen.
02:30 You can also write to us on the YouTube live chat and
02:33 we'll be tracking that as well.
02:34 Now let me introduce you to the guests for today.
02:37 We have Saurabh Jain, Equity Head Research,
02:40 SMC Global Securities and Swati Hodkar,
02:43 Senior Equity Technical Analyst, Research Nirmalbang Securities.
02:49 Thank you so much to both of you for joining.
02:52 Now Alex, markets have cracked a little bit at this point.
02:57 But what stocks and within the broader markets as well, how is that faring?
03:02 >> Yeah, in fact, let's take a look at the benchmark Nifty 50.
03:05 You see that a bit of a wobble after just over the last one hour or so,
03:11 and it's quite a sharp fall, relatively speaking.
03:14 Of course, in percentage terms, we're still talking about the drop of about
03:18 six tenths of a percent for the benchmark index.
03:21 For the broader markets, of course, you have a little sharper cut.
03:24 So the benchmark Nifty Mid Cap 150 index down about 1%.
03:28 You have the Small Cap 250 index down about 1.3%.
03:32 Both of them trading very close to the low point of the day.
03:35 And then Nifty 50 as well.
03:36 In fact, let's pull up the advanced decline ratio and
03:38 that's probably going to give you an indication of how things have turned.
03:41 And there is a pretty sharp divergence as you can see.
03:44 So what we're trying to get, and we'll get to that in just a bit,
03:48 is why there has been such a big deviation midway through the session so far.
03:55 But let's take a look at some of the movers on the sectoral end.
03:58 And you have most sectors that are underperforming at this juncture.
04:02 And let's pull up the key outperformers.
04:05 There's only one index that is holding out in the green.
04:08 The Nifty IT index is up about two tenths of a percent,
04:11 but everything from media to PSU banks to realty,
04:14 and even the banking index is down about seven tenths of a percent
04:18 or thereabouts at this juncture, or six tenths of a percent at this juncture.
04:22 So it's looking just a tad weak right now.
04:25 I want to go to Swati first.
04:27 Swati, just to get a perspective on whether or not there are any indicators
04:31 and levels that you're watching closely heading into the monthly expiry tomorrow,
04:36 and any inkling as to why we're seeing a little bit of choppiness
04:41 and volatility in trade today?
04:44 First of all, good morning to all of you.
04:47 From the last seven to eight trading sessions,
04:49 we are witnessing that the Nifty got stuck within the range of 22,000
04:53 to 22,200 levels on the higher side.
04:56 On one day, we have seen that the Nifty somehow manages to show the pullback rally
05:01 from 21,800, but back it got stuck within this 200-point range.
05:06 A breakout on either side will decide the clear trend of the market,
05:10 but from the last few trading sessions, on the intraday basis,
05:13 we are witnessing that the Nifty somehow manages to put a tick above 22,200,
05:18 but on the closing basis, it doesn't.
05:20 It fails to give the same.
05:22 So I believe on higher levels, we are witnessing a continuous selling pressure,
05:27 because on the lower side, it got stuck within the 22,000.
05:31 If today we get a breakdown below 22,000 psychological mark,
05:34 then more selling pressure is likely to be intensified,
05:37 which might take a Nifty towards 21,800 to 21,600 levels.
05:41 I believe that the market will like to face some selling pressure,
05:45 whereas on higher side, as I said, 22,200 is acting as a very strong resistance levels.
05:52 Unless and until we don't get a positive closing,
05:54 at least for 2-3 trading sessions, a major pullback rally
05:57 or the positive momentum cannot be seen into the market.
06:00 So the view is a bit cautious.
06:01 If we look towards the market breadth also, today is almost,
06:04 the market breadth is almost 1 is to 5, which gives a cautious sign.
06:08 The bears are just running their rise as of now.
06:11 So I will suggest the view limit cautious, but any dips towards 21,800,
06:16 600 level will act as an opportunity to take a buy call.
06:19 But at the current level, one should book their profits on every rise.
06:23 I would suggest as long as Nifty trades below the mentioned resistance level.
06:27 All right. Got it. Let's dive into the questions now.
06:30 The first one is from Sheetal and this is for UPL.
06:34 They've bought 300 shares at 657, slightly elevated levels.
06:40 If you look at the current share price, it's somewhere around 481 rupees.
06:44 Now the share, sort of the shares have been on a downturn.
06:48 Q3 results were dismal. Brokerages have downgraded the stock.
06:52 Would you suggest getting out book losses or would you suggest holding on for a little bit more?
06:58 I think there's no point in staying with this company because, you know,
07:02 if you look at the numbers, they were quite pathetic and they are a bit tough.
07:06 And also they have posted net loss and all their businesses,
07:09 chemicals and their pesticides, psychochemicals, all of these segments are not doing well.
07:15 And I think there is a quite huge amount of debt on the balance sheet also.
07:19 It's a quite large company. Certainly got mismanaged.
07:23 So I don't feel like staying with this company. I'll say exit from the company.
07:30 Having said that, so if you're saying exit on the fundamentals,
07:33 do you like anything from the chemical space at this juncture?
07:36 I know that it's going through a little bit of a rough patch,
07:39 but if you're buying, say, for the next three, five years,
07:42 would you pick any of the counters available right now?
07:45 See, chemical company name that is coming to my mind is Apti Industry.
07:50 I think these companies are doing good. They have been able to bag a large order.
07:55 The existing production capacity will be able to fulfil that order.
07:59 And these companies are trying to push their capacity utilisation to the maximum.
08:03 And yes, there is some kind of pressure on their margins,
08:08 but I think over a period of time, they will be able to handle that also.
08:12 And the valuations are now on the comforting side.
08:15 I mean, from the peak valuation, now the valuations have also subsided.
08:18 So from that perspective, I think one can look at this company.
08:21 So switch from UPL and perhaps look at Apti Industries as an option
08:26 if you want to stay with the chemical space, which, by the way,
08:29 has had a rough couple of quarters, and we don't know when the turnaround is going to take place.
08:33 The next question is coming in from Sachin Marathe.
08:35 He's writing in from Pune and he's asking about Larsen and Toubro.
08:39 It's had quite the run over the last 12 months or so.
08:43 The stock is currently trading quite significantly above his buy price at Rs. 3460.
08:48 He has bought at levels of Rs. 986.
08:50 He's asking if he should accumulate at this point.
08:53 Swati, what's the indications that you're getting on the charts right now for Larsen and Toubro?
08:58 See, the overall stock is definitely positive on the technical front.
09:02 It's one of the very good stocks. One should be continued in their portfolio as well.
09:07 But since his buying price is at the current level, I will not suggest to average it out
09:12 or buy at the current market price.
09:14 If the stock continues on a dip towards Rs. 3200, Rs. 3300 will be a good level to take a buy call,
09:21 but at the current market price, I will not suggest.
09:24 But the overall overview on this particular account is really positive.
09:28 I believe that it has the strength to continue this rally up to Rs. 3800 to Rs. 4000 levels in a longer term horizon.
09:36 So, my view is definitely positive, but current market levels, I'm not recommending to take a buy call.
09:41 Since his buying price is currently trading at the CMP only, any dips it's coming towards to Rs. 3200,
09:47 definitely one can take a long positions.
09:49 Alright, got it. Next up, we have a question from Shyam Sundar on YouTube.
09:54 Now, they're talking about two counters, Repco Home Finance or India Bulls Housing.
09:59 They want to put in, invest into this from a one-year perspective.
10:04 Shwethati, either of the two, which one would you suggest?
10:09 And what kind of buying levels and targets do you have on these two stocks?
10:14 If I want to compare these particular two counters on the technical front,
10:18 I will suggest, I will go for Repco Home because this particular counter on the monthly chart is on the verge of giving the breakouts.
10:26 In the 2020 levels, we have seen this particular stock has just formed a high of Rs. 430.
10:33 And in this month, it has given the breakout after the two years of consolidation phase or some sideways momentum.
10:39 So, I believe on the monthly chart also the stock has formed the flat pattern,
10:43 which is very attractive formation on the technical front.
10:46 And it has given the breakout of the same with the decel volumes.
10:49 Upside, I'm looking for a target of 550 to 600 level for a short-term perspective.
10:54 For a longer-term horizon on the yearly basis, 700 levels can be seen.
10:58 At the current market price, one can take a long position, but only 20 to 30% can be accumulated at the same peak
11:04 because we are witnessing some hit at the higher levels.
11:07 So, any dips, if the stock is countering up to 400 levels, one can add on.
11:12 And I'm looking for a short-term target of 600 to 700 levels.
11:16 Got it. Alright. So, Sumana Mukherjee is writing in from Kolkata and she's got the next question.
11:20 And she's asking about a couple of counters.
11:22 There is LatentView as well as Indian Oil, which she has bought at levels of 467 for LatentView
11:29 and about 68 rupees for Indian Oil Corporation of India.
11:33 Of course, IOC has seen quite a run since she bought the stock at 68 levels.
11:37 So, the question is, should she hold on on the basis of the fundamentals?
11:41 Saurabh, what's your view?
11:43 See, I think LatentView business, I think this sector has been pretty much well taken by the markets
11:49 and the valuations have not been at the comforting level.
11:52 I mean, the markets have already discounted forward year profits into the prices right now.
11:57 So, I don't feel like staying with the LatentView because of the not comforting valuations.
12:04 With respect to the Indian Oil Corporation, I think a lot of problems are there.
12:08 I mean, the food problem, the government can take measures on the retail price of the petrol and diesel.
12:14 So, there is a lot of hue and cry on the street.
12:17 So, in that sense, I will not recommend to buy again.
12:20 Rather, I will say book profits at current levels.
12:23 But what about IOC?
12:25 For the IOC, only I am saying.
12:28 Oh, sorry. So, LatentView, it's already priced and I got that.
12:31 Alright, let's take the next question.
12:32 Next one is from Bhaskar on YouTube.
12:35 They want to know if they should buy Canfin homes.
12:39 Now, Saurabh, from a fundamental standpoint, a good buy at this juncture?
12:43 See, rather than chipping into the home finance, I would say it is better to buy good PSU banks.
12:51 For example, Canberra Bank, Indian Bank and Union Bank.
12:54 All these banks are doing pretty well.
12:56 If our economy has to take off from here, I think all the segments of the economy will grow.
13:04 And the banks will be beneficial more than the only home financers.
13:08 So, in that sense, I feel that it is better to chip in the PSU banks that I have spoken about.
13:14 Let's pull up Jio Financial Services because this is a counter that has gained quite substantially in the year-to-date period.
13:20 Just over the last couple of months, this is a stock that is up as much as 32%.
13:25 And we've got Tarun Agarwal who is writing in from Ranchi and he is asking about whether or not it can be bought at the current market price.
13:32 He is also wondering about AstroDM Healthcare.
13:35 What's your view on these two, Swati?
13:38 Talking about the Jio Finance, this particular counter as of now is witnessing some sort of a profit booking
13:45 because the stock has given a very spectacular rally from almost 250 to 340, 350 levels.
13:51 So, profit booking cannot be denied at the higher level.
13:54 If he is interested to take a buy call, I would suggest to buy on deeps towards 280.
13:59 Because from the last three months, I am witnessing a trend that the stock takes the support of 20 days moving average
14:04 and again mounts a bank towards the new high.
14:06 So, I will suggest if the counter comes towards 280 levels, one can take a long positions.
14:11 By keeping a stop loss of 260, then again we can see some positive momentum towards 320 to 340 levels.
14:18 And another stock he was asking about Astril. Astril is definitely positive on the technical side.
14:23 Let me clarify, it's not Astril, it's AstroDM Healthcare.
14:27 Okay, it's about AstroDM. This particular counter is also well placed above all the important moving averages
14:34 and trading in the pattern of the higher tops, higher formations which is a very positive indication.
14:38 So, if you are having any long positions, they can definitely hold on.
14:41 I am looking for a target of 520 to 540 as long as this particular counter sustains the 450 levels
14:48 which is a support provided by its 50 days moving average.
14:51 So, one can hold the long positions but cannot be created a long position at the current market price.
14:56 As long as this particular stock doesn't give the breakout of 500 levels.
15:02 So, I will suggest to hold the long positions with a stop loss of 450 or a target of 500 levels.
15:07 Alright. Next up we have a question from Rajiv Verma.
15:11 They are asking about HDFC Bank. And we have seen a bit of a downturn post the third quarter results.
15:21 However, Saurabh, from a longer term perspective, would you suggest buying at dips for this counter?
15:28 I think management has already suggested that they will be going at a tipping pace.
15:33 I mean, they want to raise the share of the deposit and they want to shed off the higher cost of borrowing
15:41 which have come after the annihilation of the HDFC.
15:44 So, I think it will take a while. I don't feel like chipping in at this time.
15:48 I think wait for 2-3 more quarters. See how things shape up.
15:51 How the, you know, CASA goes up and the high borrowing gets reduced.
15:57 And what sort of advance growth comes in. I think it may take some 2-3 quarters.
16:02 So, at this point in time, I think it is better to open.
16:07 HDFC Bank is a call from Saurabh. We have to slip into a quick break, Swarabh as well as Swati.
16:13 Do stay with us. And viewers, we will be back on the other side to take more of your questions.
16:17 So, do stay tuned.
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19:28 Welcome back. You are watching Ask Profit.
19:30 And in the break, we were having quite the interesting discussion here.
19:33 Because one of our queries today, we have got Vimal from New Delhi who is asking quite the interesting question.
19:39 He is asking whether or not you would pick or whether you would pick Devyani International over Restaurant Asia, Restaurant Brand Asia.
19:47 And in case you were not aware, this is basically a fight between KFC and Burger King.
19:54 Swati here says that she would pick KFC.
19:56 For sure.
19:57 KFC. So, KFC. Why don't you guys tell us in the comment section what you would pick.
20:02 And meanwhile, let me go to Saurabh to ask him about the companies themselves, right.
20:06 Saurabh, not a question of which tastes better, but which would you pick?
20:10 I think KFC is coming with the novel ideas. They are coming with the new things, new restaurants, if I remember correctly.
20:21 So, in that sense, I think it makes more sense to chicken back up.
20:25 But then would you buy, look there are some people who say I will buy KFC during the week and then I will pick Burger King over the weekend.
20:34 So, why not pick both?
20:35 I think out of the two, KFC is much better.
20:38 Okay, fair point.
20:39 Alright, next up we have a question from Yash from YouTube.
20:44 He is talking about this MSME lender, YouGrow Capital.
20:48 Now, he wants to know, he wants a short term and a longer term view.
20:51 So, Saurabh, do you have coverage on this stock and would you suggest holding out on to it from a longer term perspective?
20:59 I think YouGrow is in the finance, but it is a kind of a print and company giving loans on the basis of some parameters
21:07 and by checking the credentials of the borrower through systems.
21:14 I feel that these companies have grown quite rapidly and the take down that, you know, recently the RBI has taken on FinTechs and something like that may not bode well for the future growth.
21:28 So, in that sense, I will say better do about it.
21:31 I believe we have a comment on YouTube, Smriti.
21:36 Yes, Sid also prefers KFC over Burger King.
21:40 Alright, so there you go.
21:44 I haven't got lunch today, so maybe, you know, that's where I should look at ordering from.
21:49 We've got the next question coming in from Shrikant and he's asking about BGR Energy and he's asking why the stock is falling.
21:56 Swati, on the technicals, is there anything to suggest why the stock is under pressure?
22:02 On the technical front, on the weekly chart, the stock has given a signal of the negative divergence in the last month itself.
22:11 So, that is why the reason and we have seen a multiple cluster resistance at around 120 levels.
22:16 From the thrice, we have seen that the stock has tested a 120 but fails to give the breakout of the same levels.
22:23 From there onwards, we are witnessing a selling pressure.
22:26 I believe when the selling pressure is likely to be continued towards at least 45 levels because that is the previous swing lows which has formed in the year 2023, the month of the Feb, I guess.
22:39 So, till that level, we are likely to witness a selling pressures but from there onwards, we will witness some sort of a pullback because overall that period of time, stock will enter into the oversold zone.
22:50 So, long positions should be avoided at the current market price. If anyone is interested, wait for a dip towards to 45 levels.
22:56 Okay. Next up, we have a question from Anitya Pal Kaur on YouTube. They are talking about the counter Trident.
23:03 They bought at 40 rupees a share. It's currently around 42 rupees.
23:08 From our technical perspective, Swati, how does it look? The holding period is 6 to 8 months and I am looking at 6 months performance. It's up about 15%.
23:19 Definitely, the stock has given a very good rally in the month of Jan itself.
23:25 Once it manages to give a breakout of 40 levels, non-stop it has performed up to 52 levels within a very short span of time.
23:32 As of now, the structure is really looks very cautious because from there onwards, we have seen that the stock has entered into the downward sloping channel.
23:41 Interesting fact that it is getting in the formation of the low tops and low bottom and it has also given the breakdown of 20 days moving average.
23:49 So, there are the few technical parameters which are not in the favor of a buy side, but definitely we are witnessing a selling pressure on every rise towards to 47 to 48 levels.
23:58 I will suggest if we are getting any pullback rally towards to 47, 48 levels, one should exit their long positions.
24:05 We might attract more selling pressure which might take a stock towards to 35 to 38 levels. So, I would go long positions or exit the longs whenever you get any rise on the high side.
24:16 Alright, let's turn to a question on the healthcare space and this is on Fortis Healthcare.
24:22 We have got Mohit who is tuning in from Ludhiana who is asking about a stock that he has bought.
24:27 He has bought at levels of 270. His time horizon is as much as 2 years.
24:31 Saurav, the question is for you. Would you suggest holding on at these levels?
24:36 See, I think if the horizon is more than 2 years, I think there is no point. I think he can stick with the company.
24:44 Fortis is doing pretty well. If you look at the hospital space, be it Apollo or Narayana Dhane or more of like that, all are gaining traction in the market.
24:55 I think this space is going to grow at a good pace.
25:01 Alright, next up we have a question on Vodafone Idea. The stock is cracking today even though late night we got an announcement that they are going to raise Rs. 25,000 through equity.
25:15 Saurav, people who are holding on to the stock and this one Raman here is holding 50,000 shares currently. What should they do with the stock?
25:24 At Rs. 16. At Rs. 16 a share, yes.
25:27 See, I have always said in all the shows that there is no point in investing in a company like this.
25:33 There is a huge debt in the balance sheet and the company is consistently making losses.
25:39 In the history also, when they come up with the right issue, that money got burnt in a matter of few quarters only.
25:46 So, they have lowest ARPUs in the industry. They are losing out their customer base. They have lowest ARPUs.
25:53 So, I think even if the yesterday announcement has come that the company is going to lose Rs. 40,000 crore, but I don't think so.
26:00 The fortunes will get changed. So, in my sense, I think it is a setback.
26:04 Okay. Shri Kishore is writing in from Motihari in Bihar and he is asking about Prince Pipes, which he has bought at levels of 600 and he has got 350 shares.
26:16 He is thinking of holding this for the next three years.
26:19 Now, Saurav, this is another company from the allied industry to the real estate space, right?
26:28 Correct me if I am wrong. Building Materials, it is a stock that has done well on the back of that play.
26:34 Would you suggest that he can add on to his holdings or do you think he should just hold on to what he has?
26:40 I think he can hold on to this company. This company has proven to have the power and things are pretty in their favour.
26:48 I mean, if you look at the macros, the real estate, government spending and all things, I think all the things are in the right tick box.
26:56 So, I think in that sense, I think it is better to stay with the company.
27:00 All right. Next up, we have a question from Abhinav Singh on YouTube. They are talking about Gujarat Pipah.
27:07 They say they are in a notional profit of 30% on this stock. I don't know the buy price here.
27:13 Should they stay invested for more upside, Swati?
27:16 Yes, definitely. This particular company is really doing very well from the last three to four months as such.
27:22 As of now, it's well placed above the important moving averages.
27:26 The only concern is that it has entered into the overbought zone. So, small profit booking cannot be denied at the higher levels.
27:32 But if he is looking for a larger degree or for a long-term horizon, definitely this counter looks very positive on the monthly as well as on the weekly chart.
27:40 So, they can hold on the long positions for a target of 50 to 60 levels or on a higher size.
27:46 If they want to keep a stop loss, they can maintain the long positions by maintaining a stop loss of 185 levels and hold their long positions.
27:53 All right. Swati, thanks so much for that view and indeed for all of the answers that you gave us today.
27:58 Saurabh as well, thanks so much for joining in and for answering all the questions.
28:02 Viewers, we are completely out of time on this particular edition of Ask Profit.
28:06 It's been a pleasure as always to bring the show to you from Smriti and myself and the team that put this show together.
28:13 Thank you so much for watching. Do stay tuned. Lots more coming up on NDTV Profit.
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