Markets shake off Korea tensions: Sensex ends 107 pts higher, Nifty at 9952

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9:01 AM

Morgan Stanley's top bets

 

Within our countrycoverage we are overweight Japan, China and India (underweight Australia and South Africa): Japan will deliver the strongest earnings growth of any major region this year (+38%) but is the only major region to have de-rated in forward P/E terms (13.7x on consensus). 
 

China and Hong Kong earnings beat is much stronger than APxJ EM average, prompting investors to continue to reduce their Underweight position. India's structural reduction in inflation and improved current account are leading to a secular reduction in interest rates, driving domestic flows towards equities.

9:00 AM

Devangshu Datta on Bank Nifty

 

Stop-long positions at 24,175. Stop-short positions at 24,375. CLICK HERE FOR MORE TRADING CALLS

8:59 AM

Emkay Global on SUN TV

 

Star India has won IPL rights including India broadcast, India digital and the rest of the world broadcast and digital for Rs16,300 crore with total 5 year tenure (2018-2022).

 

As per our calculations, IPL teams will get Rs 116.3 crore incremental revenues with higher value of rights. Adding impact of VIVO's sponsorship rights, the incremental annual EBITDA stands Rs96.5 crore for the franchisee. SUN TV would see EPS accretion of Rs1.6 after assuming player cost cap increase of 30%. We are ascribing 26x to the incremental EPS to arrive at per share value of Rs42.

 

Recent up move of 15% is attributable to start of digitization process in Tamil Nadu and Monday's IPL bidding result. The company has to deliver healthy advertisement revenue growth from Q2FY18 onwards and rebound in viewership share of Tamil and Telugu GEC's for sustained re-rating. Maintain ACCUMULATE with revised price target of Rs 990.​

8:58 AM

Technical calls

 

Top trading ideas from Religare Securities for today’s trade. CLICK HERE FOR DETAILS 

8:57 AM

Jefferies on Federal Bank

 

A revival in loan growth accompanied by cost-controls and aided by a better asset-quality has fired up the long desired turnaround, reflected in the re-rating of Federal Bank (FB). A sales approach to business transformation is currently underway, but the outcomes are showing up. As always, turnarounds are great stories but risky; a few gaps need to be addressed, but we like the new energy in the bank. We initiate at BUY and price target of Rs 140

8:56 AM

Asian markets

 

Asian markets were under pressure. MSCI’s broadest index of Asia-Pacific shares outside Japan was off 0.05% having shed 0.8% the previous day, with South Korea’s Kospi was off 0.1% after sliding to three-week lows on Monday.

 

Japan’s Nikkei ticked down 0.2%.

8:54 AM

Singapore Nifty

 

At 8:45 am, the SGX Nifty, Nifty future being traded on Singapore Stock Exchange was trading at 9,937, up 10 points or 0.11%. 

8:54 AM

Technical check on the markets

 

Nifty has closed deep into the negative territory in yesterday’s trading session; however, the daily momentum indicator is still in buy mode which means there can be one more leg on the way till 10000 mark wherein it will complete a rising wedge pattern. 

 

However, on the lower side, if 9783 levels get broken and if the Index close below those levels then the up move will not come. Below 9783 the Index is likely to break its previous lows of 9685 levels. The short term support for the Index is 9835 levels whereas 10000 is a clear resistance; hence the immediate range is 9835 to 10000 levels.

 

(Source: Anand Rathi Research)