Markets Live: Equity indices edge down, Sensex skids 160 points to 37291

RBL Bank has been the stock market darling ever since it hit the primary market in 2016. But the stock has come under severe pressure recently, …

12:25 pm

Oil prices drop on concern over US economy

Brent crude was up 64 cents, or about 1.1 per cent, at $59.28 a barrel at 0255 GMT. – Bloomberg

Oil prices fell on Thursday for the first time in three days after San Francisco Federal Reserve President Mary Daly sounded a note of concern about the strength of the US economy.

Brent crude was down 31 cents, or 0.5 per cent, at $60.18 a barrel by 0638 GMT, while US crude was down 18 cents, or 0.3 per cent, at $55.60 a barrel. Oil prices rose around 1.5 per cent in the previous session. Click here to read in full the global oil markets report.

12:15 pm

Indiabulls Housing Finance shares drop 8% on Nifty replacement

Shares of Indiabulls Housing Finance on Thursday dropped 8 per cent as Nestle India will replace the company in the benchmark Nifty 50 index from September 27.

The scrip tanked 7.97 per cent to Rs 420.80 on the NSE. Shares of Nestle India, however, rose 2.97 per cent to Rs 12,890.

Nestle India will replace Indiabulls Housing Finance in the benchmark Nifty 50 index from September 27, the National Stock Exchange (NSE) said on Wednesday.

“The replacement will also be applicable to Nifty 50 Equal Weight Index,” the bourse said in a release. – PTI

12:05 pm

Equities struggle on recession, Brexit fears

MSCI Asia-Pacific index up 1 per cent. File Photo – Reuters

Global bond yields flirted with record lows while stocks inched down on Thursday, as global recession worries from intensifying US-China frictions and the spectre of a no-deal Brexit drove investors to safer harbours.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.15 per cent, Singapore shares hit eight-month lows, while Japan’s Nikkei shed 0.07 per cent.

On Wall Street, the S&P 500 gained 0.65 per cent on Wednesday, due in part to gains in the energy sector following a rebound in oil prices. But US stock futures lost 0.2 per cent in Asia. Click here to read in full the Asian markets report.

11:55 am

USFDA nod bodes well for Unichem Labs

Unichem Laboratories has received ANDA approval from the USFDA for Solifenacin Succinate Tablets, 5-mg and 10-mg to market (a generic version of Vesicare tablets of Astellas Pharma US, Inc). The tablets are indicated for the treatment of overactive bladder with symptoms of urinary incontinence, urgency, and urinary frequency. Unichem will commercialise the product from its Goa plant. Shareholders of the company will closely monitor the execution.

11:45 am

Shell makes Series-B funding in PRESPL

Global energy major Shell, along with SBI Ventures Neev Fund has jointly made a Series-B funding of Rs 55 crore in Mumbai based bio-energy company- PRESPL.

This is the first investment of the Anglo-Dutch behemoth in Indian a bio-energy firm, and has been directly cleared by the Shell management in the Netherlands. Shell clocked $ 388.4 billion in revenues for 2018. Click here to read in full the report on Shell’s Series-B funding in PRESPL.

11:25 am

Govt sops boost sugar stocks

Stocks of sugar companies soared in an otherwise bearish market, with the Cabinet clearing fresh export concessions for sugar mills.

On Wednesday, the Cabinet approved incentives of Rs 6,268 crore ($876.74 million) to encourage cash-strapped mills to export 6 million tonnes of sugar in the sugar marketing year starting from October 1.

Shares of Bannari Amman Sugar rose two per cent to Rs 1,150, Dhampur Sugar Mills was up 0.15 per cent at Rs 151, Shashi Sugar rose 5 per cent at Rs 8, Dharani Sugar was up 17 per cent at Rs 8 and Bajaj Hindustan Sugar was up 4 per cent at Rs 6.

India is expected to produce 285 lakh tonnes of sugar in this sugar marketing year. With an inventory of 145 lakh tonnes, the total sugar supply is expected to be the highest ever at about 430 lakh tonnes, exerting huge pressure on prices. _ Our Bureau

11:10 am

Gold, silver open firm as rupee remains weak

Quick funds: With NBFCs turning cautions to lending, many customers are option for gold loans, say players. – iStock.com

Gold and silver prices opened with marginal gains in the futures market on Thursday as currency pressure prevailed.

On Thursday, the rupee weakened further to inch towards the Rs 72 levels against the dollar. The Indian rupee opened lower at Rs 71.90 and depreciated further to Rs 71.95 in the early trades.

This comes despite Wednesday’s Cabinet announcements triggering positive sentiment for the sugar industry and farmers for increased incomes in the coming days and better job prospects through the 100 per cent contract manufacturing decision. Click here to read in full the domestic gold market report.

11:00 am

Company News: Kalpataru Power Transmission

Kalpataru Power Transmission informed the exchanges on Wednesday that it received a notice from the World Bank alleging process violations in bids submitted by its transmission business on two projects in Africa more than 7 years ago. The company disagrees with the Bank’s position and intends to contest the proceedings vigorously, it added. Shares of Kalpataru Power slumped 6.95 per cent at ₹441.05 on the BSE on Wednesday.

10:45 am

Gold prices tick up on recession fears, trade uncertainty

Gold prices eked out gains on Thursday against the backdrop of recession fears, with traders tracking signs of progress on the US-China trade talks and global central banks for direction on interest rates.

Spot gold rose 0.2 per cent to $1,542.06 per ounce, as of 0331 GMT. On Wednesday, the bullion ended lower but remained around its over six-year peak of $1,554.56 hit on Monday. US gold futures were up 0.1 per cent at $1,550.80 an ounce. Click here to read in full the global gold report.

10:25 am

Rupee falls 17 paise against US dollar in early trade

Identification of currency notes is key to successful completion of cash-based transactions by visually impaired persons – FRANCIS MASCARENHAS

The rupee depreciated by 17 paise to 71.95 against the US dollar in early trade on Thursday, tracking a weak domestic equity market and persistent foreign fund outflows. Pessimism over US-China trade talks also put pressure on the domestic unit, forex dealers said.

However, a weak dollar against other major currencies overseas and softening crude prices restricted the rupee’s fall, they added. Click here to read in full the rupee report.

10:05 am

Sensex, Nifty trade on a weak note

The benchmark indices, the BSE Sensex and the NSE Nifty, were trading around 0.5 per cent lower in early session on Friday. The Sensex was at 37,291, down 160 points or 0.43 per cent lower, while the Nifty was at 11,003, down 42 points or 0.39 per cent weaker on its overnight close.

The top gainers on the Sensex were Sun Pharma, Vedanta, Tata Motors, Maruti and IndusInd Bank, while the laggards were YES Bank, ICICI Bank, HCL Tech, HDFC and Axis Bank.

The healthcare, metals, capital goods and auto sector shares rose between 0.3-0.55 per cent to prop up the BSE index, while the finance, capital goods, IT and technology sector shares weighed on the benchmark index, losing between 0.40-0.65 per cent during the session.

According to an agency report, the Sensex, which dropped over 250 points in early trade, was dragged by heavy selling in banking stocks ahead of the expiry of August derivatives amid weak cues from other Asian markets.

In the previous session, the BSE barometer settled 189.43 points, or 0.50 per cent, lower at 37,451.84. Similarly, the broader NSE Nifty fell 59.25 points, or 0.53 per cent, to 11,046.10.

During the day, investors can expect greater volatility in the market on the back of weekly and monthly expiration of the August futures and options (F&O) contracts, said Shrikant Chouhan, Head Technical Research, at Kotak Securities.

Foreign portfolio investors sold shares worth a net of Rs 935.27 crore on Wednesday, while domestic institutional investors purchased shares worth Rs 359.32 crore, provisional data showed.

The rupee, meanwhile, depreciated 18 paise against its previous close to trade at 71.95 in early session.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Korea and Japan were trading on a negative note in their respective late morning sessions.

Exchanges on Wall Street ended in the green on Wednesday.

Global oil benchmark Brent crude was trading 0.57per cent lower at 59.59 per barrel. (with inputs from PTI)

9:55 am

Oil prices pegged back by mounting concern over US economy

Oil prices fell on Thursday for the first time in three days after San Francisco Federal Reserve President Mary Daly sounded a note of concern about the strength of United States (US) economy. Click here to read in full the crude oil market report.

9:45 am

Yen on backfoot as returning confidence dulls safe-haven allure

The dollar held gains against the safe-haven yen on Thursday as ebbing recession worries soothed markets after earlier volatility although the pound nursed its losses as investors became increasingly worried about a hard Brexit. Click here to read in full the global forex markets report.

9:35 am

Why the stock of RBL Bank has fallen 40 per cent over the past month

RBL Bank has been the stock market darling ever since it hit the primary market in 2016. But the stock has come under severe pressure recently, losing about 40 per cent over the past month, since it announced its June quarter results. While the bank delivered strong performance, the management indicating possible deterioration in its asset quality in the next 2-3 quarters, had rattled investors. Click here to read in full the report on why the RBL stock has fallen 40 per cent over the past month.

9:25 am

Asian shares struggle on darkening global outlook

MSCI Asia-Pacific index up 1 per cent. File Photo – Reuters

Global bond yields flirted with record low levels while stocks struggled to recover on Thursday as economic turbulence from intensifying United States (US)-China frictions and the spectre of a no-deal Brexit drove investors to safer harbours. Click here to read in full the global markets report.

9:15 am

Opening bell

The Sensex and the Nifty opened Thursday’s session in the red. The Sensex was at 37,283, down 168 points or 0.45 per cent lower, while the Nifty was at 10,988, down 57 points or 0.52 per cent weaker.

9.00 am

Today’s Pick: Tata Global Beverages (₹280): Buy

The stock of Tata Global Beverages jumped 5 per cent breaking above a key resistance at ₹270 on Wednesday. This rally has strengthened the short-term uptrend and also provides traders with a short-term horizon an opportunity to buy the stock at current levels.

The stock has been in an intermediate-term uptrend since early February 2019 low at ₹177. During the uptrend, the stock had decisively breached a key resistance at ₹220 in May and continued to trend upwards. Short-term trend is also up for the stock. Click here to read in full Today’s Pick on Tata Global Beverages.

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The Elon Musk of China: Dr. Wang Jian of BGI

Since the passing of Steve Jobs, the crown of the bold inventor, innovator and high-tech businessman passed to Elon Musk who despite frequent …
Dr. Wang Jian, the founder of Beijing Genomics Insitute

Dr. Wang Jian

The portrait was provided by the Beijing Genomics Institute

There are many famous innovators in the Western world who have a bold vision, go after massively transformative projects and despite investor and public criticism deliver on their promises. Jeff Bezos, Larry Page, Sergey Brin, Mark Zuckerberg, and Steve Jobs are household names who went against the current, pushed their vision through and succeeded touching everyone on the planet and making the world a better place.

Since the passing of Steve Jobs, the crown of the bold inventor, innovator and high-tech businessman passed to Elon Musk who despite frequent criticism is the undisputed leader of disruptive entrepreneurship. However, when I ask some of the most informed westerners in my network to recall one global entrepreneur with an Asian name disrupting their life in the same positive way and at the same scale as Elon, very few can recall anyone besides Jack Ma, Dr. Lee Kai-Fu, or Dr. Ge Li. Even fewer would be able to name the exact contribution these people made to their health and wellbeing. For example, few people know that Dr. Ge Li’s companies that act as global open research platforms assisted in the discovery of many of the cutting-edge life-saving treatments that are benefiting everyone on the planet. There will be books written about the transformative role of these people in the future and, hopefully, Netflix documentaries.

But there are many great innovators and entrepreneurs, who are working on bold new ideas and technologies that will change everyones’ life in a very impactful and positive way but are not known to the general public in the West. These innovators often face criticism from the investor community which wants to see business models and projects that they can understand, projects they can believe and get the immediate returns. Like Elon Musk they face a lot of resistance but over time prevail and will impress every one of us. They will go down in history as pioneers and their names will be known in every household.

As a CEO of a leading technology company serving the healthcare industry I get to speak at almost one scientific or industry conference every week and meet some of these brilliant personalities. In my new article series, “Elon Musk of China” I will try to highlight the individuals who are defying the conventional boundaries and focus on realizing their disruptive vision despite all odds and my first hero will be Wang Jian, the founder of Beijing Genomics Institute (now called BGI and, despite the name, based in Shenzhen, China’s technology hub located over 2000km South of the capital), the largest genomics sequencing facility in the world and the home to the many innovations in life sciences.

BGI is one of the fastest-paced genomics sequencing and diagnosis companies in the world. I visited BGI for the first time in 2012 and met with the co-founder, Henry Yang and his team through the introduction from Charles Cantor, the founder of Sequenom, which fiercely competed with them for the Non-Invasive Prenatal Testing (NIPT) market. Sequenom invented the technology and the market but by the time they launched the test, BGI was already doing over twenty thousand tests a month beating everyone to the market. Back then it was located in three old industrial buildings on the outskirts of Shenzhen but was already one of the most prominent scientific institutions in the world.

In 2018 I visited their new location called the China National Genome Bank, which technically belongs to the government but is operated by BGI. I could not believe my eyes. The architectural marvel of steel and concrete sitting at the hillside and overlooking the ocean combines the best features of the Scripps, Sanger and the Buck. Outside there is abundant space for exercise, flamingo gardens, horizontal farming facilities, etc.

China National Genome Bank (CNGB) operated by the Beijing Genomics Institute (BGI)

China National Genome Bank operated by the Beijing Genomics Institute

Image provided by the Beijing Genomics Institute

Employees do not use elevators unless they need to move heavy machinery, there are pollution sensors everywhere and monitors describing the status of the company. It hosts one of the largest sequencing facilities and data centers in the world. In addition, they have the entire institute dedicated to the study of health and aging. Recently, the Wang Jian, the founder of this amazing place introduced a new concept – he came out and publicly stated that he would like his employees to remain healthy until they are 100 years old. And the employees took this seriously. Most employees consented to being tested in every way and sequenced. They regularly provide physiological test data, sensor data, advanced blood tests, high-resolution MRI imaging, facial imaging, microbiome and cell-free circulating nucleic acid testing. The program looked far more advanced than the prized Google Verily’s baseline project.

Recently, I told this story to one of the people I deeply respect, a prominent Asian entrepreneur and technology investor with extraordinary personality and worldview. He told me that for this exact reason many of the Chinese institutional investors do not like BGI and Wang Jian because they do not understand how these initiatives can convert into revenue and profits. He said that the company is too academic and science-driven and that some of the projects are very hard to understand. Like for example heavy academic publishing and the publication of the rice genome and many other Nature publications. Honestly, I was puzzled by this question and tried to explain that these studies are needed to convince the world that your group is capable of running such mega projects in order to win business and expand into new business areas. I also tried to explain that Wang Jian is the true Elon Musk of China and that e put China on the map in sequencing. But with the exception of Neuralink and Hyperloop, Elon Musk is operating mostly in the industries where the proof of concept was established a long time ago and it is up to incremental innovation, operational efficiency, agile management and creative funding to launch rockets, electric cars, and satellite networks. Biotechnology is orders of magnitude more complex.

To understand this this giant scientist and entrepreneur a little bit better I took a trip to BGI and asked him a few questions in person.

1. You managed to build one of the most venerated biotechnology companies and research institutes in the world. How did you manage to do this and what was the critical part which contributed to your success?

BGI was established to represent China to participate and contribute to the Human Genome Project. BGI learned from the success and experience of HGP. The tremendous outcome and impact of HGP has led to revolutionary technology development and scientific discoveries, which further strengthen the confidence of BGI in the future of the genomics industry.

BGI has had 20 years of history, including a strong foundation in scientific research and many successful global partnerships. We have made strategic investments in new technologies, so we can now focus on developing original technology.

BGI wants to lead China’s future model and lead social development. I have this dream. The entire human society has gone through several historical stages of agriculture, animal husbandry, industry, and information. Today, the next stage must be the bio-economy, and this bio-economy is endless from the current perspective.

2. What were the main challenges on your path to success?

In leading development, the biggest challenge facing BGI has been how to adapt to the current era and go beyond this era. The first challenge has been science and technology understanding, which is reflected in lags in understanding and evaluating basic science, application and education. The second challenge has been social humanity understanding, embodied in laws, policies and regulations, and even ethical and moral aspects; there are other challenges we have not yet encountered. In facing these challenges, we have continued to focus on creating benefits for more people.

For example, when BGI first introduced NIFTY (non-invasive prenatal tests) to doctors, it was hard for them to believe that such technology was available. As genomics technology disrupts or replaces some conventional or traditional systems, there may be hesitation or even resistance, and certainly a need for greater education and new policy and regulation implemented.

3. Most of the people I met at BGI are very young. Often without a doctorate from a prestigious university. But they are incredibly smart and productive and manage to publish in Nature, Science and other top journals. When I first visited BGI the average age was 27 and today it is around 31. Even the CEO is very young. How do you find these people and how do they manage to ramp up so quickly in science and business?

In fact, most famous scientists have realized achievements in youth and middle age or have laid a good foundation for scientific achievements. And a new business must be created by people who are full of passion and less restricted in their thinking. This is a necessity.

BGI does not judge people by their background but by their ability. Genomics is a multi-disciplinary science and an emerging field, so those young talents can get the best training and most advanced experience at BGI through participating in real projects.

4. You publicly stated that you want your employees to be healthy and live until they are at least 100. With the average age of 31 it is not such an outrageous statement. What are the chances of this happening in the next 10, 20, 30 years?

When a person is doing something very advanced, it is difficult to convince the community to accept you. If you want to change the world, you must change yourself first, and benefit mankind to benefit yourself. First, we involve nearly 7,000 employees around the practice of their health, illness, aging, and basic necessities of life. We will become a benchmark for the support and leadership in controlling factors that affect our health, birth defects, infections and tumors. Human life and health are fundamental.

The leading role of BGI’s development is fundamental innovation. The core principles are the central dogma of life (the first principle of life science) and instrument determinism.

The central dogma of molecular biology is the most basic law of life science and the principle of science first. Therefore, understanding and interpretation must follow this basic law, that is, interpretation starts from DNA, throughout the whole cycle, micro to macro, and life-long.

Throughout the history of human innovation, tools can precipitate major advances. When we make tools, we must first look at whether we can lead in science, and secondly can we do it cheaply and serve the public. If these two are combined, the mind can be fully liberated and less restricted in terms of applications that can be explored. From this, I came to the conclusion about tool determinism; that is, with tools, we can have core competitiveness.

But to achieve the goal of living a healthy and long life also requires self-discipline. That’s also the challenge for BGI to lead in this new era of life science, starting with BGI employees and families to practice and apply genomics in everyday life. It takes a lot of effort to move from changing a mindset to changing behavior.

5. What projects do you find particularly exciting and rewarding?

There are still many different ways of thinking in life sciences, industrial thinking and business thinking. What is my ultimate pursuit? I must make health and longevity the first priority. At this time, I am more concerned about our contribution to society. The greater the contribution, the greater the return society will naturally give to us. Because it is an integrated balance. BGI’s goal will always be to benefit human beings.

The Elon Musk of Asia series to be continued…

While there is a trade war between the East and the West, resulting in much negative publicity and emotional boundaries, China has leapfrogged through technology in many areas. And it is positively contributing to the global economy in many ways. There are more electric vehicles in China than anywhere else in the world, amazing high-speed trains link all major cities, and the mobile phone serves as the wallet and as a one-stop solution for most of your day-to-day needs. In many areas people do not accept cash substantially reducing corruption and increasing efficiency. The country is rapidly turning from the “me too” and “me better” approach to technology development to “me first”, and “me disrupt”. Many of these innovations will impact everyone on the planet in the most benevolent way. One of the most impactful areas is healthcare. Cancer, Alzheimer’s, cardiovascular diseases, and aging in general do not differentiate between the economies, races, or nations. These are the common enemies for every country and for every individual. In my following articles I will continue profiling the most brilliant scientists and entrepreneurs from Greater China, Korea, and Thailand, who are accelerating the rate of progress in healthcare and saving the lives worldwide.

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12 money-making ideas that can deliver solid returns in 4 weeks

Jay Thakkar, CMT-Head Technical and Derivatives Research, AVP Equity Research, Anand Rathi Shares and Stock Brokers said Nifty’s daily MACD …
Domestic equity indices kicked off the week on an optimistic note on Monday after Finance Ministry’s Friday announcements helped improve sentiments.

The 50-share NSE Nifty rallied over 200 points in early trade but gave up the gains within an hour to trade flat. Sensex was up 40 points at 36,741 at 10.30 am (IST).

The government on Friday rolled back a tax surcharge on overseas portfolio investors and announced a slew to sector-specific measures, trying to pump-prime the economy.

Jay Thakkar, CMT-Head Technical and Derivatives Research, AVP Equity Research, Anand Rathi Shares and Stock Brokers said Nifty’s daily MACD is in buy mode. “Hence, there is a positive divergence for the index on the daily chart, indicating the possibility of a sustained short-covering rally for a few days. On the lower side, 10,637 and 10,550 levels would be immediate supports while the immediate resistance is at 10,900. Above 10,900, Nifty can zoom towards 11,100 level,” he said.

Based on various brokerage recommendations, here are 12 stock strategies that can potentially deliver solid gains over the next 11-21 sessions.

Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst, Gemstone Equity Research and Advisory

IndianOil | Buy | Target price: Rs 135 | Stop loss: Rs 115

The stock is set for a probable technical bounceback. After failing to break above the Rs 160-165 range, this stock saw a steady decline and attempted to form a base in the Rs 115-120 zone. The stock has tested a nine-month extended trend line support and crawled back above it after a minor violation. The stock is oversold, and the RSI has moved above 30 from the oversold area, which shows a potential bottom formation. An engulfing bullish candle has emerged on the charts and it may make the case for a technical pullback as it appeared near the key support, adding credibility to the support zone. Any close below Rs 115 will be a stop loss for this trade.

Sameet Chavan, Chief Analyst- Technical & Derivatives, Angel Broking

Tata Elxsi |Buy | Target price: Rs 685 | Stop loss: Rs 631

The stock consolidated for nearly three weeks after taking a strong knock of more than 30 per cent in the first half of July. On Friday, the market witnessed strong buying at lower levels, which accelerated a bullish breakout from the recent congestion zone on the counter. The kind of volume activity witnessed during this intraday surge was quite encouraging and added credence to the move. Going ahead, Angel Broking expects a decent relief rally on this counter. One can buy this stock for a target of Rs 685 over the next few days. The stop loss should be fixed at Rs 631.

Bharat Electronics | Buy | Target price: Rs 111 | Stop loss: Rs 92.40

On the daily chart, this stock has traded between two crucial moving averages for last one month with the 200-SMA acting as a strong base and 100-EMA acting as a stiff resistance. Now, the price has broken out of this range on the higher side by closing above the 100-EMA. The said breakout is supported by sizable volumes and a strong bullish candle. In addition, momentum oscillator RSI has entered the positive zone above 50, supporting the optimistic stance. “Going with all the above evidence we recommend buying this stock at current levels for a target of Rs 111 over the next few days. The stop loss can be placed at Rs 92.40,” the analyst said.

Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia

Axis Bank | Buy | Target price: Rs 720 | Stop loss: Rs 642

After three weeks of price action, this stock is looking quite interesting on the weekly charts with a Hammer kind of formation, as this counter bounced back from around Rs 645 level, suggesting some accumulation. Hence, sustaining above Rs 643 level, this counter can eventually head to much higher levels. “Positional traders should take this opportunity and buy into this counter for a target of Rs 720 with a stop loss of Rs 642,” the analyst said.

Britannia Industries | Buy | Target price: Rs 2640 | Stop loss: Rs 2,390

The price action of the last two trading sessions, with solid bullish candles, is looking interesting on this counter as it remained resilient during the violent downswing seen in last two sessions. This kind of price behaviour is clearly hinting at some sort of accumulation and near-term bottom around those levels. “Positional traders should buy into this counter with a stop below Rs 2,390 level on a closing basis and look for a target of Rs 2,640,” the brokerage said.

Vikas Jain, Senior Research Analyst, Reliance Securities

GAIL | Buy | Target price: Rs 145 | Stop loss: Rs 115

The stock has made a double bottom near Rs 120 and witnessed a sharp bounce from this level with positive momentum in last one month. A convergence in RSI is signalling an overall positive trend, and oversold stochastic is indicating limited downside for the stock. The stock has closed near to its short-term averages, confirming the uptrend to test the medium-term average of Rs 145 in next few weeks. Long positions can be initiated for a target of Rs 145 with a stop loss of Rs 115.

L&T | Buy | Target price: Rs 1,520| Stop loss: Rs 1,210

This stock has multi-month support near to its 34-month average and it has always witnessed a strong move from those levels to reinforce a positive stance. On the higher side, the stock will face a minor hurdle around Rs 1,390, which coincides with the long-term average on the daily charts and a crossover of the same would give a breakout. However, in case of any decline, its lower band of the falling channel near Rs 1,200 level will work as key reversal point. Long position can be initiated for the target of Rs 1,520 with a stop loss of Rs 1,210.

Jay Thakkar, CMT–Head Technical and Derivatives Research – AVP Equity Research, Anand Rathi Shares and Stock Brokers

HUL | Buy | Target price: Rs 1940 | Stop loss Rs 1,820

This stock has seen a breakout from the rectangular pattern on the daily charts with a clear buy crossover in its momentum indicator MACD. Buy this stock for the target of Rs 1,940.

NIIT Technologies | Buy | Target price: Rs 1,440 | Stop Loss: Rs 1,335

The stock has seen a breakout from the expanding triangular pattern which is a continuation pattern. The Index seems to have started wave III of wave 5 up with the momentum indicators absolutely in buy mode, hence one can buy this stock for the target of Rs 1,440.

Nandish Shah, Senior Technical Analyst, HDFC Securities

Escorts | Buy | Target price: Rs 490 | Stop loss: Rs 432

This stock has formed a bullish engulfing pattern on the daily chart. Moreover, it closed above its five-day SMA with higher volumes. The RSI oscillator has formed a positive divergence on the daily chart. “In the derivative segment, we have seen long build up in the Escorts futures. Therefore, we recommend buying at current market price of Rs 453 and add more on dips around Rs 445 for the upside target of Rs 490, keeping a stop loss of Rs 432 level,” said Shah.

Shrikant Chauhan, Head of Technicals, Kotak Securities

SBI | Buy | Target: Rs 288 | Stop loss: Rs 262

The weekly RSI (momentum oscillator) is currently at 35 and provides an opportunity for traders, who missed the bus earlier. It also usually leads to a dead-cat bounce and provides opportunity for quick returns.

M&M | Target price: Rs 565 | Stop loss: Rs 520

This stock is diverging positively on a daily basis, which is an indication of a shift or pause in the prevailing trend, which is downward. The stock has also formed double/higher bottom at Rs 509 against Rs 502.55 and is available to buy at multi-year lows.

(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.)

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Stock market update: IT shares dip; Infosys down over 1%

Shares of Infosys (down 1.63 per cent) , Tech Mahindra (down 1.59 per cent) , Oracle Financial Services Software (down 1.34 per cent) and Tata Elxsi …
NEW DELHI: IT shares were trading lower in Monday’s morning session.

Shares of Infosys (down 1.63 per cent) , Tech Mahindra (down 1.59 per cent) , Oracle Financial Services Software (down 1.34 per cent) and Tata Elxsi (down 1.23 per cent) were trading with losses.

HCL Technologies (down 1.20 per cent) , Mindtree (down 0.80 per cent) , Wipro (down 0.78 per cent) and Infibeam Avenues (down 0.63 per cent) too were trading lower.

The Nifty IT index was trading 1.04 per cent down at 15,652.45 around 10:02 am.

Benchmark NSE Nifty50 index was down 29.65 points at 10,799.70 while the BSE Sensex was down 64.33 points at 36,636.83.

Among the 50 stocks in the Nifty index, 17 were trading in the green, while 33 were in the red.

Shares of Vodafone Idea, YES Bank, Ashok Leyland, SBI, Tata Motors, Bank of Baroda, PNB, SAIL, DLF and ICICI Bank were among the most traded securities on the NSE.

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If You Had Bought Selan Exploration Technology (NSE:SELAN) Stock Five Years Ago, You’d Be …

Long term investing works well, but it doesn’t always work for each individual stock. We don’t wish catastrophic capital loss on anyone. Imagine if you …

Long term investing works well, but it doesn’t always work for each individual stock. We don’t wish catastrophic capital loss on anyone. Imagine if you held Selan Exploration Technology Limited (NSE:SELAN) for half a decade as the share price tanked 74%. We also note that the stock has performed poorly over the last year, with the share price down 44%. Shareholders have had an even rougher run lately, with the share price down 18% in the last 90 days. Of course, this share price action may well have been influenced by the 8.1% decline in the broader market, throughout the period.

Check out our latest analysis for Selan Exploration Technology

To quote Buffett, ‘Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace…’ One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During the unfortunate half decade during which the share price slipped, Selan Exploration Technology actually saw its earnings per share (EPS) improve by 1.2% per year. So it doesn’t seem like EPS is a great guide to understanding how the market is valuing the stock. Alternatively, growth expectations may have been unreasonable in the past. Based on these numbers, we’d venture that the market may have been over-optimistic about forecast growth, half a decade ago. Looking to other metrics might better explain the share price change.

Revenue is actually up 0.3% over the time period. So it seems one might have to take closer look at the fundamentals to understand why the share price languishes. After all, there may be an opportunity.

NSEI:SELAN Income Statement, August 22nd 2019
NSEI:SELAN Income Statement, August 22nd 2019

We know that Selan Exploration Technology has improved its bottom line over the last three years, but what does the future have in store? Take a more thorough look at Selan Exploration Technology’s financial health with this freereport on its balance sheet.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It’s fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Selan Exploration Technology’s TSR for the last 5 years was -71%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments!

A Different Perspective

We regret to report that Selan Exploration Technology shareholders are down 43% for the year (even including dividends). Unfortunately, that’s worse than the broader market decline of 13%. Having said that, it’s inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Regrettably, last year’s performance caps off a bad run, with the shareholders facing a total loss of 22% per year over five years. We realise that Buffett has said investors should ‘buy when there is blood on the streets’, but we caution that investors should first be sure they are buying a high quality businesses. Before spending more time on Selan Exploration Technology it might be wise to click here to see if insiders have been buying or selling shares.

But note: Selan Exploration Technology may not be the best stock to buy. So take a peek at this freelist of interesting companies with past earnings growth (and further growth forecast).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on IN exchanges.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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