What a day today , as it seems we are living the day of May 16, 2014 when Modi wave blows off the opposition although this time with more vigor, more strength & more magic. This is a historical day in the Indian Political arena when a non Congress party is coming back in power with its own majority. Modi Magic seems to working on new voters, old voters, rising above any discrimination of caste, religion & region. It is a new India who votes for the growth.
Modi wave morphed into Tsunami which blustering anything which is coming in its way. Political strength in economy is big factor which determines the policy & structural informs impacting business, investment and financial environment. Now Economy arena is looking up for MODECONOMICS.
Today being the historical day for Capital Market, Nifty touched 12,000 mark, Sensex crosses 40,000 mark.Will this team will able to ensure the rally to be seamless? Are FIIs convinced by Modi Mania? In the previous term few government agencies like Statistics department & Central bank freedom claimed to be attacked. Another challenges remains erratic Monsoon, Budget announcement and tension between US- China which affecting the global financial market.
The government has to tackle the fiscal consolidation issue, unemployment concern, inflation & global trade concerns.
We are analyzing the weekly expiry for the Nifty & Bank Nifty today, below is the option series analysis
Out of all Call and Put Option below are the top six open interest wise Call & Put strike price analysis.
Call Option Analysis
Maximum Call open interest (OI) of 35.90 lakh contracts was seen at the 12000-strike price followed by 12200-strike price which 23.25 Lakhs. Highest call writing was seen at strike price of 12000, which was 21.04 lakh contracts.
Call option suggest 12000 will be next hurdle
Put Option Analysis:
Maximum Put open interest of 10.93-lakh contract was seen at the 11500- Strike price followed by 11600 level with 9.05 lakh open contracts. Highest put writing was seen at a strike price of 11600, which was 5.05 lakh contracts.
Put option suggest 11550 will act as a support
Infrastrcuture , Railways PSU Banks & Agri Stocks are expected to remain benefeciary in the up coming one months.Here we suggest few stocks for which can give investors good value for your money The stocks could appeciate around 10-15% in the next one month.
1 Bank of Baroda:
The Government owned bank and recently amalgamation take place with Dena and Vijaya Bank. On Late April, the government had also infused around Rs.5042 Cr of capitalization before amalgamation for the betterment of financial health. However, the bank had posted Q4FY19 results which recorded net loss of Rs. 991.37 Cr against Rs 3,102.34 crore in the corresponding quarter last year. Provision declined to 19% stood at Rs 5,399.29 Cr when compared with last year, stood at Rs. 6,672.38 Cr. Net interest income (NII) of the lender increased 26% from Rs 4,863 crore.
LT is a major technology, engineering, construction, manufacturing, and financial services conglomerate, with global operations. The company posted strong set of numbers in Q4FY19 where revenue increased by 10.46%. The PE of the company stood at 23.25 compared to industry PE of 28.08. EPS placed at 63.48 followed by market capitalization of Rs. 207,011.19 Cr.
3. ULTRATECH CEMENT
UltraTech Cement’s revenues for Q4FY19 grew 16.6% Rs. 10,500 crore due to volume growth. PAT for the quarter grew 108% YoY to Rs 1017 crore on account of a strong operational performance. Currently the stock is trading at 71.20 PE. The market cap is Rs. 128,343.46 Cr and EPS stood at Rs. 89.5.
With an EPS of 31.14 and dividend of 85%, BEML has been one of the few PSUs that have been able to maintain a positive performance over the years. The PE multiple is on a higher side of 43x however, the market capitalization (M.Cap.) currently at 3840 crs. has been consistently increasing over the years.
5. Bharat Electronics Ltd (BEL)
BEL has given a dividend of 200% of its face value recently to its shareholders. It has an EPS of 5.7 with a market capitalization of 24585 cr and a PE of 13.7X makes BEL a good medium to long term investment
A solid financial performance for Q4FY19 has been reported by the company within EPS of Rs. 42.05 with a market capitalization of Rs 7438.23 Cr. PE of 23.54 times makes J&K Cement a good investment script for medium to long term horizon.
7: Praj Industries
This is the right time to add this stock in your portfolio as it PE is trading at 36.55x with the market cap of Rs 2,492.37 Cr. The EPS of the company stood at Rs 3.73, the stock has corrected also which makes it more appropriate to incorporate it in stock-bundle
8.NBCC (India) Ltd. (NBCC)
NBCC has been witnessing an upsurge in contracts in all categories of its operations. Its current M.Cap is 10377 crs. Its current PE multiple is 27.3x and the EPS is 1.8 which is likely to increase in the long term.
9.Texmaco Rail and Engineering Ltd.(TEXRAIL)
TEXRAIL has recently given a dividend of 35 % of its face value. Its current M.Cap is 1540 crs with an upward trajectory. Its EPS has seen a good growth and is currently at 3.35 with a P/E multiple of 21.2X. This stock is a buy for the medium term time horizon.
10.Balrampur Chini Mills Ltd (BALRAMCHIN)
With a- M Cap of 3399 crs, Balrampur Chini is poised for the next level of growth in the coming fiscal year. Its current PE multiple is 14.11x and EPS is 9.41. It has recently given a dividend of 250% making it a good investment for its investor in the medium to long term.
As Input from Lokesh Sethia, Sebi Registered Analyst