Category: Personal Finance

Seven stocks that brokerages initiated coverage on in July can return up to 40%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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July has been outstanding for the market as the Sensex hit a fresh record high of 36,740.07 and the Nifty reclaimed the psychological 11,000-mark for the first time since February 1. Hopes of a recovery in June quarter earnings and stability in the rupee-dollar and crude oil prices propelled the market higher.

The earnings season started last week on a positive note as Tata Consultancy Services and IndusInd Bank reported a healthy set of earnings while Infosys met analyst expectations. Even Hindustan Unilever reported a robust set of numbers, though partly on a low base.

The Sensex started off the week in the negative, falling more than 200 points, which was largely due to profit booking in stocks that led the market higher last week.

That does not mean bulls are off track. The current correction was part of the bull run and was largely due to carnage in mid- and smallcaps. The Nifty may reclaim its earlier record high of 11,171 seen in January, though in the short term it may be rangebound, experts said.

“Continuous decline on the broader front has pushed stocks to the extreme oversold zone, so we may see some pause or rebound prior to the further slide,” Jayant Manglik, president, Religare Broking, said.

Hemang Jani, head – advisory, Sharekhan, believes the markets may be volatile in the short term owing to global trade concerns.

Manglik advises investors to avoid catching falling knives and wait for clarity. “Investors should see this correction as an opportunity and gradually start adding fundamentally sound stocks with a long term view as they’re now available at a good bargain,” he said.

Jani said any major declines should be used as an opportunity to get into quality names in the consumption and financials space.

Here is the list of stocks on which brokerages have initiated coverage in July. These stocks return up to 40 percent over a 1 year period:

Jamna Auto

IDBI Capital – Buy | Target – Rs 107 | Return – 23%

IDBI Capital has initiated coverage with a Buy rating on the stock and a target price of Rs 107, citing upswing in commercial vehicle (CV) cycle.

The company is a big beneficiary of upswing in CV cycle. Demand for parabolic spring will raise due to higher tonnage trucks.

We believe the opportunity for increase in content per vehicle is enormous. Increase in truck axle load by 20-22% would help boost after-sales segment.

Medium and heavy commercial vehicle (M&HCV) tonnage growth is expected to outpace volume growth. The big push to infrastructure projects is a key demand driver in mid-term.

We expect revenue, EBITDA and net profit growth rate at 19%, 25% and 30% respectively over the fiscal 2018-2020.

Radico Khaitan

HDFC Securities – Buy | Target – Rs 473 | Return – 40%

Radico Khaitan is an attractive play in the IMFL (Indian-made foreign liquor) space with around 2 crore cases sales (6.5-7% market share).

Optimism on Radico is premised on (1) Its strong presence in fast growing and niche segment of Vodka (around 50% share) and super premium Brandy. Prestige and above constitutes around 20% of its total revenue but 50% of its EBITDA, leaving significant headroom for Radico to premiumise, (2) CSD sales at around 17% in the IMFL revenue, with high entry barriers, (3) Captive ENA manufacturing in largest sugar producing state of UP that provides raw material tailwinds, and (4) Balance sheet deleveraging.

Net debt/EBITDA declined from 5x in FY15 to 2x in FY18.

We expect revenue, EBITDA and net profit growth rate at 10%, 14% and 24% respectively over the fiscal 2018-2020.

Reliance Industries

Credit Suisse – Outperform | Target – Rs 1,180 | Return – 10%

Credit Suisse has initiated coverage with Outperform rating on the stock and target price at Rs 1,180 per share, citing significant potential in consumer businesses.

Reliance Jio has potential to create significant value and is much more than telecom.

Petcoke gasification should help growth in refining.

Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.

Sterlite Technologies

IDFC Securities – Outperformer | Target – Rs 370 | Return – 27%

IDFC Securities has reinitiated coverage with Outperformer rating and a price target of Rs 370 on Sterlite Technologies.

Data boom and higher mobile traffic will boost fibre demand. Order book provides earnings visibility.

We expect revenue, EBITDA and net profit to compound at 30%, 27% and 32% respectively over the fiscal 2018-2020.

Strong competitive advantages, growth visibility and healthy return ratios warrant premium valuations.

Two-Wheelers space

Hero MotoCorp

Centrum Research – Buy | Target – Rs 4,245 | Return – 24%

Bajaj Auto

Centrum Research – Buy | Target – Rs 3,413 | Return – 10%

Two-wheeler sector opportune investment plays are backed by potential catalysts. Favourable macros, good monsoons, rising income level and government focus on rural economy are key positives.

Three-wheeler space is in sweet spot with new permits and recovering exports. Honda is the strongest in two wheelers, but Hero is well positioned.

Bajaj Auto is a fair play on premiumisation, rising exports and strong three wheeler prospects.

We have initiated coverage with Buy rating and target price of Rs 4,245 on Hero MotoCorp and Buy rating with a price target of Rs 3,413 on Bajaj Auto.

AU Small Finance Bank

CSEC Research – Outperformer | Target – Rs 732 | Return – 15%

Improved margins due to falling cost of funds, along with healthy loan book growth should act as a catalyst to spur the earnings growth of the company.

The stock is currently trading at 4.3X P/ABV and 26.6X P/E of FY21E. We initiate coverage on AU Small Finance Bank with a Outperformer rating and arrive at a target price of Rs 732.

We draw comfort from the fact that the recent transaction of Temasek Holdings for acquiring a 5 percent (on revised capital) equity stake at Rs 692.77 per share share, valuing the company at 9.6X P/ABV of FY18.

Risks: Rising competition may put pressure on yields; asset deterioration owing to higher share in riskier segments; state specific issues may have greater impact owing to regional concentration.

Disclaimer: The views and investment tips expressed by investment experts are their own and not that of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

Source: Moneycontrol.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Your guide to the perils of equity investing

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Don’t you wish for a magic mantra that can double or quadruple your hard-earned money?

This bait of quick returns has always lured investors towards the stock markets, but the bad news is making money in equities is a bit of a challenge in itself. The good news is with a little bit of money, lots of discipline, patience, in-depth research and understanding you have a chance to succeed. So here is our guide for you to move slowly and cautiously towards the market.

 The Dilemma   

Investing in equity comes with its own risks, at times completely out of your control. Factors like market volatility can hold a major risk to your investments. Certain economic events or inflation can also be factors which can sweep off your investments within minutes.

Geopolitical Factors:

All the economies are bound to one another, so events like recession in the US markets, China pulling out of a trade deal or a Brexit could make the markets volatile, putting your hard-earned money to risk. These events are not something you can control. Changes in interest rates, tax revision, regulation, deregulation, or weather could also have a major impact on the businesses and industries listed on the stock exchange. Changes in purchasing power could create an inflation risk, as well as pressure on losses gradually reducing the purchasing power.

 Timing The Market:

Keep in mind there never is a good time to buy or sell in the market. A lot of investors have faced high losses trying to wait for the lowest dip to buy or the highest peak to sell. The truth is no one can time the market, not even the market experts. Markets adjust to new data every moment, so there is no undervalued or overvalued stock.

Overconfidence:

There are moments in the market where you can get lucky and gain a lumpsum which should refrain you from concentrating on a single sector. Luck can bring in a bit of greed and certainty convincing you are making the right choice thereby leading you to maximising your profits and time the market.

The Strategy

Don’t try to time the market: The market moves in cycles and there are many indicators which give you the idea of when to buy or sell but those need not necessarily be accurate or consistent.

 Diversify your risk: Spreading your investments across various helps you de-risk as it is impossible to predict geopolitical factors. Diversifying in different sectors will help you cushion your fall if any uncertainty catches the market. Staggering your investments will give you a better chance of participating in the growth of some of your stock at one time.

Conservative Investor: There is nothing wrong with investing small or buying at every dip and being careful about your investments. Yes, the risks will be low but so will returns, on the bright side you are dodging volatility and potentially larger losses.

Avoid borrowing: Don’t borrow money from a financial institute to invest in the market. If your investments don’t go as planned, the loan is likely to fall upon you to pay off without an additional income.

To sum up

Over a period of years, your income will rise and so will inflation. If you invest only in debt investments, your money will surely be safe but it will not grow. Equity investments will act as a hedge against inflation over the years, making your money work as hard as you do. You can take advantage of the returns to achieve your long-term goals and beat inflation, by showing a little bit of discipline.

This is a partnered post.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Explainer: What are cash equivalents?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Some investors make security investments for a short period. These types of short term investments are called as cash equivalents.

Different from stocks and bonds, cash equivalents are meant for short term investment and so comes with high liquidity and credit worthiness.

While being of low risk, these securities do not come with expectations of high returns.

Best examples for such securities are treasury bills, certificates of deposits and corporate commercial paper and short term bonds issued by the government among others.

Cash equivalent securities are issued by firms and governments for various reasons.

Government issues short term bonds belonging to this category to fund various projects.

Private firms on the other hand make issuance for various reasons. They might use them to cover their operating expenses, immediate purchases.

Such funds are also used to make acquisitions and also simply to create enough cash resource at a time, when the firm is going through a lean patch.

Overall, these funds can be used by investors as a safe investment for a short period providing moderate returns.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Morgan Stanley lists out 12 factors impacting Indian market and 20 stocks that are in focus

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indian stocks are jostling weak emerging markets, rising rates, higher oil prices, an upcoming general elections and relatively rich mid-cap valuations. Morgan Stanley, in its latest report titled ‘India Equity Strategy’, highlights 6 factors which are favouring Indian markets and six which are working against.

The global investment bank prefers largecaps over midcaps. On the sectoral front, it likes banks (private corporate and retail), discretionary consumption, industrials and domestic materials, and advise investors to avoid healthcare, staples, utilities, global materials and energy.

The global investment bank in its base case scenario (with 50% probability) expects the S&P BSE Sensex to trade at 36,000 by June 2019 which is under 16x one-year forward P/E, and below historical averages.

Under the scenario, the earnings growth will be 5% (year-on-year) in FY18, 23% year-on-year in FY19 and 24% year-on-year in FY20.

In the bull case scenario, which has a probability of 30%, Morgan Stanley sees Sensex hitting 44,000-level largely led by better-than-expected outcomes, most notably on policy and global factors. The market starts believing in a strong election result as well, and the earnings growth accelerates to 29% in FY19 and 26% in FY20.

In the bear case scenario, which has a 20% probability, the S&P BSE Sensex could slip towards 26,500 as global conditions deteriorate and the market starts pricing in a poor election outcome. Sensex earnings will grow at 21% in FY19 and 22% in FY20.

Here are 6 factors which are in favor of Indian equities:

• Strong macro stability evident in a positive BoP and backed by a Central Bank that is committed to keeping real rates positive.
• A bullish steepening of the yield curve, which is at post-2010 highs – the yield curve correlates positively with stocks.
• A low and falling beta, which augurs well in a weak global equity market environment as we have seen over the past few weeks.
• India’s growth is likely accelerating relative to EM. Our work shows that corporate confidence is at a multiyear high and profits are likely to mean revert from below trend.
• Strong domestic flows, currently averaging around US$2-2.5 billion a month, which we believe are in a structural uptrend.
• Weaker FPI positioning, now at 2011 levels.

What is working against Indian equities?

• Likely rising crude oil prices, which could put pressure on growth.
• Upward pressure on inflation from food price hikes making sure that more rate hikes are coming.
• The election cycle, which brings its own set of uncertainties.
• Relatively rich mid-cap valuations (even after the recent drawdown).
• Equity valuations relative to bonds is at the top end of its range, indicating that the market is pricing in some part of the coming growth recovery.
• Rising equity supply

Morgan Stanley Focus List:

Stocks which are included in Morgan Stanley’s focus list include names like Bajaj Auto, M&M, Maruti Suzuki, ZEE Entertainment, Titan Company, HDFC Bank, IndusInd Bank, Adani Ports, etc. among others.

Disclaimer: The views and investment tips expressed by investment experts are their own and not that of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

Source: Moneycontrol.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Explainer: Things to be taken care of when filing tax returns

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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With the dead line for the filing of income tax returns getting nearer, many are rushing to the website to file their returns.

However, inexperience and haste may lead to mistakes further complicating the process.

Here is a glimpse of some of these errors that should be taken care of while filing returns:

Personal details are one of the key areas that should be filled carefully during the filing process.

Individuals should ensure that all details such as name, mobile number, date of birth, address etc. is filled properly.

Another aspect that should be mentioned correctly should be the details of the bank account.

Details of individual’s bank accounts including the IFSC code should be specified without any error.

Similarly, income that is earned from bank deposits like interest should be properly provided during the filing.

One other significant detail that should be noted properly is the income generated by the spouse or minor child of the taxpayer.

If an individual has invested in the name of child and spouse, it should be noted properly in the filing.

Also other sources of income like rent should also not be forgotten.

If a taxpayer had switched jobs during the previous financial year, he or she should report income that is generated from the previous job.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Top 10 expert moneymaking ideas that could return 4-11% in 1-2 months

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Nifty closed over 2% higher for the week-ended July 13 and is likely to surpass its record high placed at 11,171. The index is just 153 points away from making history. Experts feel this could well come occur this month if the momentum continues.

The Nifty has been hitting higher lows for the last 9 trading sessions, with supports are gradually shifting higher, which is a bullish sign. It has recently broken out above its crucial hurdle of 10,888–10,929 and extended its gains towards 11,078 levels last week.

India VIX fell 1.13% to 12.30 levels while aggregate put-call ratio moved to its historical high of 1.79 levels. Experts said the strategy should be to buy on declines till 10,900 level is not breached on the downside.

“The activity for major part of the week was very encouraging, but the last couple of days was slightly shaky if one considers the weakness in the broader market. We may not have a smoother ride going ahead, especially in the first half of the forthcoming week,” Sameet Chavan, chief analyst, technicals and derivatives at Angel Broking told Moneycontrol.

“As far as levels are concerned, 10,976 followed by 10,900 are likely to provide decent support for the market. On the upside, 11,078–11,171 are levels to watch out for. For the coming week, it’s advisable to keep focusing on individual stocks that are providing better trading opportunities,” he added.

We have collated a list of top 10 trading strategies from various experts that could return 4-11% in the next 1-2 months:

Brokerage Firm: SMC Global Securities

KPIT Technologies (KPIT): Buy| LTP: Rs 301.45| Target: Rs 330| Stop Loss: Rs 282| Return 9.6%

The stock closed at Rs 301.45 on 13th July 2018. It made a 52-week low at Rs 104.05 on 11th August 2017 and a 52-week high of Rs. 304.70 on 13th July 2018. The 200-days exponential moving average (EMA) of the stock on the daily chart is currently placed at Rs 220.41.

The stock has witnessed a massive upside from Rs 130 to Rs 290 levels in a single upswing from November 2017 to June 2018. Post the upswing it consolidated in a narrow range and has formed a “Bullish Pennant” pattern on the weekly charts, which is considered to be bullish.

Last week, the stock gained over 12% and has given a breakout from the pattern and managed to close around week’s high, which shows bias is aggressive for the stock.

Therefore, investors can buy the stock in the range of Rs c293-296 levels for the upside target of Rs 325-330 levels with a stop loss placed below Rs 282.

Analyst: Sameet Chavan, chief analyst, technicals, and derivatives at Angel Broking

Havells India: Buy| LTP: Rs 560.20| Target: Rs597| Stop Loss: Rs 549| Return 6.6%

It’s been nearly three months, the stock continued its consolidation phase and it made several attempts to surpass the higher boundary of Rs 560 which turned out to be unsuccessful.

However, this week, the stock prices managed to burst through this congestion phase. The volumes did play their role as we witnessed a decent jump during the course of the action.

This was followed by a consolidation with middle negative bias and now it is back to its breakout point. Hence, we interpret this as a good buying opportunity for a near-term target of Rs. 597. Traders can keep their stop losses placed below Rs.549.

GAIL India: Buy| LTP: Rs 356.85| Target: Rs 378| Stop Loss: Rs 341| Return 6%

This index constituent underwent some decent consolidation phase in the recent past. Last week, the upper boundary of Rs 350 was finally broken with reasonably higher volumes.

In addition, the ‘RSI-Smoothened’ oscillator has also surpassed the 70 mark; providing some credence to the move. We interpret the last three days’ small correction as a good buying opportunity.

One can look to go long for a target of Rs.378 in coming weeks. The stop loss needs to be fixed at Rs.341.

United Spirits: Sell| LTP: Rs 607.95| Target: Rs 582| Stop Loss: Rs 621| Return 4%

This remains to be our preferred shorting candidate since the last couple of weeks. The confirmation of a near-term weakness was seen last week when it decisively sneaked below the ‘200-day’ moving average after nearly 10 – 12 months.

Last week, we recommended going short at around Rs 636 and our immediate target of Rs 605 has already been met. But, considering its weak structure, we extend the target to Rs.582 and hence, one can look to go short or revise stop loss for the existing trade at Rs.621.

Analyst: Dinesh Rohira, founder & chief executive officer, 5nance.com

Adani Enterprise: Buy | Target: Rs. 146 | Stop-loss: Rs. 124 | Return: 11%

Adani Enterprise traded in a positive trajectory on its weekly price chart post its correction from 52-weeks high. The scrip took strong support near its 52-weeks low.

On the weekly price chart, the scrip registered a solid bullish candlestick pattern indicating a reversal in the trend post upward breakout from long-term averages of 200-100-days backed by strong volume growth.

Further, the weekly RSI placed at 61 signals a buying regime at a current level along with positive cues from MACD which suggests an upward shift.

The scrip is likely to face resistance at Rs 150 and support is seen at Rs 118. We have a BUY recommendation for Adani Enterprise which is currently trading at Rs. 131.65

Prabhat Dairy: Buy | Target: Rs. 158 | Stop-loss: Rs. 135 | Return: 6%

Prabhat Dairy recently witnessed a reversal in trend favoring upward momentum after consolidating in multiple price range levels including a decline from 52-weeks high over the last six months.

The scrip revisited Rs 128 levels and formed a strong base support. It revered from that level to close above Rs 134 levels which is 200-days EMA levels. The positive breakout seen on weekly basis aided the scrip to form a long bullish candlestick pattern indicating a reversal in trend at the current level.

The weekly RSI placed at 61 signals a buying regime at a current level along with positive cues from MACD which suggests an upward shift.

The scrip has a support at 128 levels and resistance level at 172. We have a buy recommendation for Prabhat Dairy which is currently trading at Rs. 149.40

UPL: Sell | Target: Rs. 535 | Stop-loss: Rs. 584 | Return: 5%

UPL witnessed a sharp correction seen on the long-term chart. It breached its crucial support level of 200-days EMA on the downside and continued to trade lower amid selling pressure.

The scrip consolidated in a range of Rs 765 and Rs 606 levels, but last week it further slipped from this level which indicates sustain selling regime.

The scrip formed a solid bearish candlestick pattern on its weekly price chart after breaching below important level indicating a sustained pressure.

The secondary momentum trend continued to indicate a negative signal with RSI slipping below at 27 coupled with the bearish outlook from MACD trend. The scrip is likely to face resistance around Rs 703 levels and crucial support at 381 levels. We have a sell recommendation for UPL which is currently trading at Rs. 562.55.

Analyst: Mazhar Mohammad, chief strategist – technical research & trading advisory, Chartviewindia.in

Britannia Industries: Buy| LTP: Rs 6,472| Target: Rs 6750| Stop Loss: Rs 6300| Return 4%

This counter appears to have registered a breakout above its 2-month old ascending channel with new lifetime highs. Interestingly, this breakout also occurred after a brief consolidation of 6 days around its lifetime highs.

Hence, positional traders should go long in this counter for a target of Rs 6,750 with a stop loss of Rs 6,300

Mindtree: Buy| LTP: Rs 1,065| Target: Rs 1,126| Stop Loss: Rs 1017| Return 5.7%

A couple of days back this counter registered a breakout from its downward sloping channel which was in progress since last February. Hence, the current weakness in this counter should be used as an opportunity to create fresh longs for an initial target of 1126. Stop suggested for the trade is 1017

Indian Oil Corp: Buy| LTP: Rs 159.30| Target: Rs 170| Stop Loss: Rs 154| Return 7%

After the recent correction from the highs of Rs 177, this counter appears to have formed a strong base around Rs 150 where it is attracting huge buying interest as pointed out by long lower shadows on weekly charts.

Hence, sustaining above this level it can initially target Rs 170. A stop-loss suggested for the trade is a close below Rs 154.

Disclaimer: The views and investment tips expressed by investment experts are their own and not that of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

Source: Moneycontrol.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Your Stocks July 16: ‘I have MRF since IPO, what should I do?’

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Your Stocks is a daily show where market experts answer your specific stock related queries.

In July 16 edition of Your Stocks, Gaurang Shah of Geojit Financial Services and Mitessh Thakkar of mitesshthakkar.com, answer your queries on investments in the stock market.

Pooja Agnihotri writes to us from Delhi. She holds 50 shares of DCB bank at RS 133 since one year and five months. She is a long-term investor and wants to know whether to hold or sell?

Shah: Firstly, one have to take into consideration that last three to four quarters for DCB Bank has been quite choppy and volatile; two quarters down, two quarters up. We remain positive on DCB Bank for quite some time now and our target stands at somewhere close to about Rs 200 plus. So, if you are not in a hurry and if you are in this stock for the long haul, I would advise you to stay invested.

Archita Kumar writes to us from New Delhi. She holds 120 shares of Hindustan Unilever (HUL) at Rs 1,190 since IPO. She is a long-term investor and wants to know whether to hold or sell?

Thakkar: The stock has done extremely well in the last five months, gone up from Rs 1,300 to now at about Rs 1,750-1,760. Overall, I think despite the fact that it’s over brought, the longer term chart, which is on the monthly basis still show that there will be higher highs being made. For me, there is no reason to sell. Just hold the stock, you might get a few weeks of consolidation in between after having seen a good rally for the last five months. I would conservatively put a target of around Rs 2,000 over here, in case you were to give this stock another 12-14 months.

Shah: I am definitely in sync with what Mitessh Thakkar has just mentioned. A lot with unfold as we see the numbers unfold anytime soon. Possibly in the next half an hour to one hour. If I have to reflect upon the last quarter numbers, it gives me no reason to worry about. So, in the money, deep in the money stay that way.

Ramesh Patel writes to us from Andhra Pradesh. He holds 50 shares of MRF since IPO. He is a long-term investor and wants to know whether to hold or sell?

Thakkar: MRF remains a hold for me. The stock has been making higher highs and made a highest level of around Rs 81,400 in April. Since then, there is some kind of consolidation going on. As long as it doesn’t start getting below levels of Rs 68,000, I would not be really worried. If he wants to have a stop loss, I think he can trade it out to over there. But overall, I believe that holding on would be a good strategy and the early high should be re-tested very soon. After a couple of months of more consolidation, eventually should be crossed on the upside.

Shah: Lot of investors have a compliant they are not investor friendly, no bonus, no dividend etc. But purely on the numbers front, it’s one of the extremely cash rich. We do have a positive coverage right from Rs 25,000 odd levels. We still maintain a positive view on MRF.

Nishit Atal writes to us from Nashik. He holds 1,000 shares of Tata Chemicals at Rs 500 since three years. He is a long-term investor and wants to know whether to hold or sell.

Shah: If I am not in the need of money and have time on my side, I would definitely advice investor to hold on to it. Not to forget, in the recent two to three quarters, this is the one stock, which has actually come off from the highs that we have seen and on fall back of earnings visibility and the kind of products that they have in the market share, I think I am quite sure that if you hold on to it, there is a lot more to be made on Tata Chemicals. So, if you have time on your side, hold on to it.

Thakkar: For me, this would be a profit booking opportunity. My sense is that the stock has kind of made a short to medium term peak over here and I think it will be good time to possibly exit and take profits. I do expect about 15-20 points kind of correction. If the investor is okay with that kind of price decline and still hold on, I think that is okay, otherwise my sense is to exit right now.

Deepak Verma writes to us from Punjab. He holds 500 shares of Power Finance Corporation (PFC) at Rs 100 since one year. He is a long-term investor and wants to know whether to hold or sell.

Thakkar: The stock on multiple occasions has bottomed out around levels of Rs 55-60 and we are not very far away from that. So, if he can average around Rs 60 to Rs 55 range, then that would be a good strategy. Keep a stop loss below Rs 48-49 and I think, with his average price coming down, any relief rally on the medium term charts to levels of about Rs 85 would be excellent exiting opportunity. So in that sense, since the stock is very close, not very close, but getting very close to the long term charts support zone, I would suggest if he can buy around Rs 55-60, that is what I would suggest.

Follow stock recommendations by Mitessh Thakkar here:
https://www.cnbctv18.com/author/mitessh-thakkar-111/

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

11,100-11,171 crucial Nifty hurdle; two smallcaps, one largecap to bet on for the short term

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In the week gone by, the bulls dominated throughout. In the penultimate week, the Nifty had formed an inside bar on the weekly chart, whereas last week it broke out on the upside, leading to a sharp upmove.

On the way up, the index has crossed its short and medium term falling trend line. It also surpassed the 78.6% retracement of the fall from 11,171 to 9,951 as well as the May high of 10,929.

As per the principle of role reversal, all these parameters that earlier acted as resistances shall now assume the role of supports. Major support for the benchmark stands at 10,800.

The daily as well as weekly Bollinger Bands are in expansion mode, thus allowing the bulls to stretch their arms. Momentum indicators on these time-frames are in favour of the bulls.

On the higher side, 11,100-11,171 is a crucial hurdle zone to watch out for. If the bulls manage to cross that region then we can look for significantly higher levels.

Here is the list of 3 stocks that one can bet on for better returns in the short term:

Asian Paints: Buy | Stoploss – Rs 1,346 | Target – Rs 1,500

The stock is forming higher top higher bottom on the daily chart, which is a bullish sign as per the Dow Theory.

In terms of the wave structure, it is forming wave extension on the upside. The daily & weekly momentum indicators are in bullish mode.

Idea Cellular: Buy | Stoploss – Rs 51.50 | Target – Rs 62

The stock has formed a correction for last few sessions after Impulse on the upside.

In terms of the Fibonacci retracements, the stock is getting support near the 78.6% retracement mark. On the hourly chart, it seems to be forming an Ending Diagonal, which would mark end of the correction from short term perspective.

Allahabad Bank Futures: Sell | Stoploss – Rs 41 | Target – Rs 35

The stock formed a short term pullback that faced resistance near the crucial daily moving averages.

Fresh selling was seen over there that has resulted into a fresh move down. The daily momentum indicator has triggered a bearish crossover.

Disclaimer: The views and investment tips expressed by investment experts are their own and not that of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

Source: Moneycontrol.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Filing your income tax returns? Here are four challenges that you may face

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

As the last date for filing income tax return approaches, most tax payers would be busy collating various information required to file their returns.

The process can be quite cumbersome in the absence of efficient financial planning, and any negligence on the tax payer’s part can lead to undue payment of tax.

Detailed below are some of the biggest challenges that one may face while filing his or her income tax return.

Challenge 1: Computation of taxable income

Before filing your income tax return, it is vital for you to identify and compute your taxable income.

Apart from a review and analysis of your bank account statements, identifying your sources of income and segregating them into 5 sections:

• income from salary (including basic salary, commissions and bonuses, and allowances)
• income from house or property
• income from businesses or profession
• income from capital gains
• income from other sources, is also important.

To ensure that you do not miss out on any income received, download form 26AS from the tax department’s website. The form will reflect all income received by you and tax so deducted. Also, reporting your exempt income while filing your return would help reduce the possibility of a demand notice from the tax department.

Challenge 2: Not knowing the available tax reliefs

Tax laws keep changing from time to time and so it is imperative for you to keep yourself informed and updated about such changes. While computing your taxable income, you must be aware of various tax reliefs and deductions available.

For instance, standard deduction of Rs 40,000 per annum has now replaced exemption of Rs 15,000 for medical reimbursements and transport allowance of Rs 1,600 per month for salaried individuals. You can reduce your tax liability and outgo substantially by being aware of such changes in tax laws.

Apart from the common deductions under section 80C of the Income Tax Act, there are a few tax reliefs that aren’t known to many. These include deductions on interest paid on education loan (under section 80E), deduction of up to Rs 1.25 lakh for medical expenditure of severely disabled dependent (section 80DD), deduction of up to Rs 50,000 deduction medical insurance premium of senior citizen parents (under section 80D), etc.

Challenge 3: Timely declaration of required tax proofs to employer

Salaried individuals must submit tax-related proofs to their employer on time. Exemptions and deductions that you may be entitled to would be provided by your employer through Form 16 and you can claim these deductions at the time of e-filing.

Do not file an incomplete or incorrect report as it may lead to higher tax outgo. Also, remember that failure on your part to submit all documents on time to your employer would result in excess TDS payout. You can, however, claim it back while filing your return.

Challenge 4: Failure to file returns and pay advance taxes timely

Individual tax payers aged below 60 years have to pay advance tax in quarterly installments if adequate tax payable hasn’t been withheld and your tax liability after TDS deduction exceeds Rs 10,000. Failure to pay your advance taxes on time would make you liable to pay interest at 1 percent per month (under section 234B).

Also, non-filing of income tax returns before the due date would attract a penalty that could be as high as Rs 10,000.

Disclaimer: The views and investment tips expressed by investment experts are their own and not that of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

Source: Moneycontrol.com

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Everything you need to know about how mutual funds fared last week

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

“One of the very nice things about investing in the stock market is that you learn about all different aspects of the economy. It’s your window into a very large world.” – Ron Chernow

What Worked Best?

The Sensex and the Nifty gained 1.97% and 1.67% respectively over last week. The momentum was not equally strong for SmallCap (+0.6%) and MidCap (-0.07%) indices.

The Top 5 Best Performing Funds Last Week:

What Investors Bought

The most inflows last week were seen in these five schemes, according to our analysis.

Movers and Shakers at Fund Houses:

• Change in fund management responsibilities at IDBI Mutual Fund(MF)– IDBI’s Equity Advantage Fund and Hybrid Equity Fund (equity portion) are going to be managed by Uma Venkatraman, while IDBI focused 30 equity fund will now be managed by Ashish Mishra.
• Tata Mutual Fund announced that top official D Ramanathan has resigned with effect from June 30.
• Indiabulls MF has appointed Rekha Warriar as an independent director.
• Reliance MF has appointed TS Vijayan as an independent director.

 In other news:

Yes Bank received approval from the Securities & Exchange Board of India for starting its mutual funds business. Funds are expected to be launched in 6-12 months.

Manvendra Singh Rathore is an analyst at Kuvera.in, a free direct plan mutual fund investing platform.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow