Amaraja Raja rallied 8% to its 52-week high level of Rs 341 today on BSE after reporting a strong 19% year-on-year (yoy) growth in net profit at Rs 95 crore for the quarter ended September 30, 2013 (Q2) on back of healthy operational performance. The auto parts and equipment maker had posted profit of Rs 70 crore in a year ago quarter. The stock has now slipped to 323 levels on profit booking.
Banking shares too are trading higher, extending Thursday’s rally, after the Reserve Bank of India (RBI) Governor expressed comfort about the narrowing current account deficit and Fed chairwoman-designate, Janet Yellen, indicated that US central bank is in no rush to pare economic stimulus.
Bank of India, Union Bank of India, Axis Bank, HDFC Bank, YES Bank, ICICI Bank are trading higher by more than 2% each, while Bank of Baroda, IndusInd Bank, Canara Bank, State Bank of India and Punjab National Bank are up 2% each on the NSE.
SmartInvestor : What do charts say about this Yellen rally. Your view on benchmark indices in short-term and key levels you would advice investors/traders to look out for?
Devangshu Datta : Nifty is most likely to end up testing successive resistances in the 6150-6350 zone. There is massive resistance at roughly 5-0 pt intervals above 6200. A rise above 6350 would be very positive
Devangshu Datta : If you are long on the Nifty, think in terms of stop loss at 6100, 6150, 6200,etc.
SmartInvestor : Bank Nifty is outperforming the benchmark today. What are your top picks there and your view on the pack?
Devangshu Datta : Bank Nifty has successive resistances at 250-300 pt intervals between 10750 and 11750. I would back ICICI, Axis and BoIndia among the PSUs to outperform.
SmartInvestor : How is Amara Raja Batteries placed on technical parameters? The counter hit 52-week high today. Do you think its advisable to buy the stocks at current levels or should one wait for correction?