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Nifty opened with a gap up on Tuesday and made a new lifetime high of 15,431, but could not sustain at higher levels. During the day, the index witnessed some profit taking and fell to 15,242 level and touched the previous day’s low. However, the second half of the session saw some support-based buying and recovery to settle the day on flat note. The index formed a bearish candle on the daily scale, but formed higher highs for the fourth session in a row. Now it has to hold above 15,200 level to continue the bullish momentum towards 15,500 level, while on the downside major support can be seen at 15,100 and 15,000 zones.
Maintain ADD on Godrej Consumers - In-line revenue; international margin shines - HDFC Securities
Posted On: 2021-02-15 01:38:10 (Time Zone: Arizona, USA)
Mr. Varun Lohchab, Head Institutional Research, HDFC Securities & Mr. Naveen Trivedi, Institutional Research Analyst, HDFC Securities
GCPL s 3QFY21 was a mixed bag with in-line revenue but a marginal miss in EBITDA. Domestic revenue/EBIT grew by 11/5% YoY, while International revenue/EBIT grew by 11/21% YoY. Domestic volume growth was at 7%, with strong market share gains, specifically in soaps. Recovery in discretionary demand drove the growth in Hair Colours while an increased focus on cleanliness aided soaps. HI was dragged by a weak performance in the burning format, although aerosol, electric and non-mosquito portfolio posted strong growth. GCPL continued to improve its performance in GUAM (17% cc growth) and LATAM & SAARC (35% cc growth). GUAM and LATAM led the international margin expansion. The company is focusing
Nifty has to hold above 15,000 level to continue its bullish momentum towards 15,250 and then 15,500 levels, while support can be seen around 15,000 and then 14,750 levels.
Are you disappointed to see Reliance lagging behind the index?
This is part and parcel of the market. Stocks outperform and underperform for a while. Reliance has been a fabulous outperformer in the last three years or so. Now it has more to do with long term triggers which may play out and which is why investors need to be a bit patient. Sentimentally, the decline which we are seeing in Nasdaq seems to be impacting Reliance Industries as well because it was positioned more as a digital business and that is where a lot of the value creation got generated.
Remain Bullish with 13,900 Stoploss in Nifty; Target 14,310 Nifty is expected to remain in an uptrend. Every dip is getting absorbed by the market and momentum has been in the favour of the bulls. Support for the index has shifted to 13,950 levels; and unless that breaches, traders should remain bullish. Insurance and Capital good sectors are likely to perform well for the short term. Immediate resistance for the Nifty is seen at 14,310. Stoploss in longs should be kept on trailing basis.
Stock recommendation
Buy Godrej Consumers (761) | Target: Rs 795 | Stop-loss: Rs 740 The stock has formed rounding bottom formation on the daily chart. The stock price has surpassed the previous top resistance of 762 with fair volumes. It is placed above all important moving averages. Indicator and oscillator setup is bullish on daily and weekly chart.