Yes Bank at Rs 11 or Rs 30? Here's the stock outlook after 50% rally in two months

 Market experts expect that both investors to bring in vast experience and expertise in the financial domain to handhold Yes Bank for its next journey of growth. Yes Bank is likely to approve and transfer the stressed assets to private equity firm JC Flowers.

New Delhi: Beleaguered private sector lender Yes Bank has remained under traders’ radar for a long time now, but the interest has been increasing over the last few weeks as the stock zoomed close to 50 per cent in less than two months.

Shares of Yes Bank have zoomed about 48 per cent from Rs 12.3 on June 20 to hit a new 52-week high of Rs 18.30 on Friday, September 9. However, the stock was trading between Rs 17.5-18 levels on Monday.

Market analysts remain divided over the future of private lenders and suggest the stock only for investors with high risk appetite in the longer run with a word of caution.

Kranthi Bathini, equity strategist at WealthMills Securities said that Yes Bank is gaining investors' interest lately amid buzz about rejigging of its board, fundraising plans and improving performance in the last few quarters.

"The revival of the lender entirely depends upon how it performs in the next quarter, in terms of growth in retail and corporate loan book; along with non-performing assets," he added. "One should not expect immediate fireworks from the counter."

Aditya Puri, former MD of HDFC Bank and a senior advisor at The Carlyle Group, is reported to get a seat in the board of Yes Bank on behalf of the private equity firm.

Prashanth Tapse, Research Analyst, Mehta Equities believes that the bank is rebuilding its brand as well as business dynamics with the help of two high-caliber private equity investors Advent and Carlyle.

Market experts expect that both investors to bring in vast experience and expertise in the financial domain to handhold Yes Bank for its next journey of growth. Yes Bank is likely to approve and transfer the stressed assets to private equity firm JC Flowers.

"If this deal goes through on expected terms, Yes Bank is likely to come out of toxic stressed assets and reduce the stress on the balance sheet, which were once in systemic risk for the bank to sustain," Tapse added.

However, even technical analysts remain divided over the counter. Those who see bullish patterns see an upside till Rs 30 in next two quarters, whereas others believe that the stock may retest its 52-week lows of Rs 10.93.

"If stock prices close above Rs 19.50 levels on a weekly closing basis, then the stock can see a target of Rs 22 in near term, while the long term target can be Rs 28-30 for a 6-12 month time horizon," Tapse said, who has a stop loss of Rs 15.20.

Reading the technical charts, Kush Ghodasara, CMT, and an independent market expert said that Yes Bank has given a strong move recently on the probable nod on stake sale but this move can be taken as an opportunity to book profits.

"Looking at the increasing base of equity capital, it is very difficult for banks to show performance fundamentally at a higher EPS," he added. "Technically, the stock has a trailing stop loss at Rs 16.95 below which it may test Rs 11."

Bathini from Wealthmills suggested that existing investors can continue to hold the stocks with a long term view but fresh entry at the current levels should be avoided. "The stock is pulling off miracles in the near-term," he adds.

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Sensex gains 200pts, Nifty50 above 18,000 in pre-open deals

 At 7:40 am, the SGX Nifty futures were quoting at 18,040, up around 80 points from the previous close

 Despite the increase in consumer prices in August, domestic benchmark Sensex and Nifty indices are eyeing a positive start on Tuesday amid supportive global cues. 

At 7:40 am, the SGX Nifty futures were quoting at 18,040, up around 80 points from the previous close. 

India's retail inflation inched up to 7 per cent in August from 6.71 per cent in July mainly due to higher food prices. Meanwhile, India's industrial production rose 2.4 per cent in July, against a growth of 11.5 per cent in July 2021. 

In global markets, US indices edged higher for the 4th session on Monday, while Asian markets were also firmly in green this morning. Later today, the CPI data in the US will be closely tracked in the run-up to the US Fed meeting on September 20-21. 

Among stocks, HDFC Life will be on the radar as Abrdn, formerly Standard Life, is likely to sell 2 per cent of its stake in the private sector insurer via block trades on Tuesday.

Besides, oil marketing companies may also see some action on reports that the govt plans to pay about 200 billion rupees ($2.5 billion) to the state-run fuel retailers to partly compensate them for losses and keep a check on cooking gas prices.

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Stock Market LIVE: Sensex jumps 300 pts; Nifty ends at 17,930; IT, Realty shine

Stock Market Today: Positive sentiments intact despite the impending Fed rate hike  (PTI)

 Share Market LIVE Update: Indices gained 0.5% on Monday as in which Sensex jumped around 300 points and Nifty around 100. All indices ended in green with IT and Realty leading the rally. Coal India stock was underwhelming while Adani Ports and Tech Mahindra jumped.

Traders almost fully expect another jumbo-sized Fed hike next week following two 75-basis-point increases while major currencies regain some of the ground they lost to a surging dollar. Markets in China, Hong Kong and South Korea are closed today for holidays.

12 Sep 2022, 03:24:36 PM IST

Office real estate's coworking share rises to 20% in H1'22 from 6% in 2021: Report

With major companies and businesses including start-ups now opting for co-working, the share of co-working spaces across the top 7 cities post COVID-19 stood at 20 per cent in H1 2022 in comparison to 6% in same period of 2021, shows data compiled by Anarock Group.

However, the the share of IT or ITeS sector declined from 49 per cent in H1 2021 to 36 per cent in H2 2022 due to many IT companies are now also preferring flexible spaces to regular office spaces. (Full Story)

12 Sep 2022, 03:11:43 PM IST

Bharti Airtel's unit Nxtra Data partners with Bloom Energy for fuel cell technology

Bharti Airtel on Monday announced that its subsidiary Nxtra Data Limited has partnered with Bloom Energy to deploy low environmental impact fuel cell installation at its data centres in Karnataka, reducing carbon emissions through a cleaner, hydrogen ready fuel supply.

Nxtra will be the first data centre company in India to deploy fuel cell technology to reduce carbon emissions at its data centres while unlocking cost and sustainability benefits, Bharti Airtel said in a statement. (ANI)

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Adani Transmission shares down 0.37% as Nifty gains

 A total of 14,333 shares changed hands on the counter till 01:55PM (IST).

NEW DELHI: Shares of Adani Transmission Ltd. traded 0.37 per cent down in Monday's trade at 01:55PM (IST). Around 14,333 shares changed hands on the counter.

The stock opened at Rs 3910.0 and touched an intraday high and low of Rs 3950.0 and Rs 3891.4, respectively, in the session so far. The stock of Adani Transmission Ltd. quoted a 52-week high of Rs 4041.9 and a 52-week low of Rs 1474.0.

As per BSE, the total market cap of the Adani Transmission Ltd. stood at Rs 430905.59 crore at the time of writing this report.

Key Financials

The company reported consolidated net sales of Rs 3249.74 crore for the quarter ended 30-Jun-2022, up 2.67 per cent from previous quarter's Rs 3165.35 crore and up 10.7 per cent from the year-ago quarter's Rs 2935.72 crore.

The net profit for latest quarter stood at Rs 185.99 crore, down 57.28 per cent from the corresponding quarter last year.

Shareholding pattern

As of 31-Mar-2022, domestic institutional investors held 0.15 per cent stake in the firm, while foreign institutional investors held 20.01 per cent and the promoters 65.4 per cent.

Valuation ratio

According to BSE data, the stock traded at a P/E multiple of 451.13 and a price-to-book ratio of 38.05. A higher P/E ratio shows investors are willing to pay a higher price because of better future growth expectations. Price-to-book value indicates the inherent value of a company and is the measure of the price that investors are ready to pay even for no growth in the business.

Adani Transmission Ltd. belongs to the Power - Transmission industry.

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3 internet stocks that can rally up to 63%: Yes Securities

 Indiamart has a dominant market share in B2B classified business with around 65 per cent market share in paid listings. The strength of the business model is visible in the 12 per cent CAGR growth in paying subscribers and 31 per cent CAGR growth in the number of registered buyers over 

With the shifting of investor focus from growth at any cost to more profitable growth, share prices of many loss-making platform companies which had their IPOs 8‐9 months ago have seen a major correction. "Also, the concerns regarding a likely slowdown in global GDP growth has led to correction in the valuation of technology stocks worldwide," said Piyush Pandey, Lead Analyst, Yes Securities.

Here are 3 internet stocks that the brokerage recommends buying as the long term story remains intact:

Info Edge

Buy Rs 4,255 | Target: Rs 5,375 | Return Potential +26%

A diversified consumer internet company with a presence in recruitment, real estate, matrimony and education is set to benefit from rising internet adoption in India. Being cash-rich, the company is also looking for acquisitions in allied sectors to drive business synergy. Revenue/ EBITDA/ PAT are expected to grow at a CAGR of 27.4 per cent/36.0 per cent/28.6 per cent over FY22‐FY24E. Yes Securities maintains ‘Buy’ rating on the stock with a target price of Rs 5,375; valued through the SOTP method.

Indiamart

Buy near Rs 4,661 | Target: Rs 5,820 | Return Potential +25%

Indiamart has a dominant market share in B2B classified business with around 65 per cent market share in paid listings. The strength of the business model is visible in the 12 per cent CAGR growth in paying subscribers and 31 per cent CAGR growth in the number of registered buyers over FY17‐22. We expect Revenue/ EBITDA / PAT to grow at CAGR of 26.6 per cent/ 24.1 per cent/ 18.9 per cent over FY22‐FY24E. Yes Securities maintains ‘Buy’ rating with a target price of Rs 5,820, arriving through the DCF method.

Tanla Platform

Buy near Rs 744 | Target: Rs 1,218 | Return Potential +63%

As per industry reports, the Global CPaaS market is expected to grow at a CAGR of 29 per cent from CY20 to CY25E, led by faster adoption of multichannel communication. The adoption of CPaaS-based A2P messaging across industries continues to drive volume growth for both enterprise and platform segments of Tanla. Revenue/ EBITDA/ PAT are expected to grow at CAGR of 21.8 per cent/ 24.9 per cent/ 21.2 per cent over FY22‐FY24E. The brokerage firm maintains a ‘Buy’ rating with a target price of Rs 1,218, valuing it at a PE of 22x on FY24EPS.

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Gold Prices Today: Yellow metal may struggle on Fed's aggressive stance, US inflation data awaited

In the international market, gold bounced back after taking support near $1,700 but may struggle with Fed’s continuing emphasis on aggressive tightening, says Ravindra Rao of Kotak Securities.

Gold was trading a tad lower in the Indian market on September 12 even as prices ticked higher in the international markets as the dollar hovered near recent lows, with investors' focus on a key US inflation reading that could influence the size of the Federal Reserve's next interest-rate hike.

At 9.57 am, gold contracts were trading 0.2 percent lower on the Multi-Commodity Exchange (MCX) at Rs 50,427 for 10 grams and silver added 0.3 percent at Rs 55,213 a kilogram.

In the international market, spot gold rose 0.1 percent to $1,717.17 an ounce. US gold futures were flat at $1,728.70.

Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities

Comex gold was trading marginally lower near $1,725 a troy ounce as support from a weaker dollar, China’s virus concerns and Europe’s energy crisis was countered by the monetary tightening stance of the US Fed and other central banks, continuing ETF outflows and concerns about Chinese consumer demand.

Gold once again bounced back after taking support near $1,700 but may struggle with Fed’s continuing emphasis on aggressive tightening.

Rahul Kalantri, VP Commodities, Mehta Equities

Gold and silver began the week on a firm note amid easing inflation fears after profit-taking in crude oil. Despite gold falling sharply to touch 1,710 on September 9 amid a rebound in yields and a stabilising dollar, the bullion managed to post its first weekly gains in the last four weeks.

Gold has support at $1,716-1,702, while resistance is at $1,735-1,744. Silver has support at $18.45-18.28, while resistance is at $18.95-19.15.

In rupee terms, gold has support at Rs 50,270–49,980, while resistance is at Rs 50,780–50,940. Silver has support at Rs 54,550-54,120, while resistance is at Rs 55,780–56,110.

Ravi Singh, Vice President and Head of Research, ShareIndia

Gold may gain some strength after US treasury secretary Janet Yellen said the US inflation reading for August was likely to show a decline on weaker gas prices.

She also said that the US was reviewing tariffs on Chinese goods and some of the tariffs could be rolled back. These factors led to a fall in the dollar which will induce buying in gold prices. The anticipation of lower US CPI numbers may give more bidding to the safe haven.

Buy zone above Rs 50,700 for the target of Rs 51,000

Sell zone below Rs 50,300 for the target of Rs 50,100

Amit Khare, AVP- Research Commodities, Ganganagar Commodity

As per the technical chart, bullions are making bottom and charts are showing some strength. The momentum indicator RSI is also indicating the same. So, traders can make fresh buy positions near given support and should book near given resistance levels.

October gold closing price: Rs 50529, support 1: Rs 50,300, support 2: Rs 50,000, resistance 1: Rs 50,600 and resistance 2: Rs 50,750.

December silver closing price: Rs 55050, support 1: Rs 54,600, support 2: Rs 54,000, resistance 1: Rs 55,300 and resistance 2: Rs 55,800.

Tapan Patel, Senior Analyst (Commodities), HDFC Securities

Gold prices held steady on September 12, with spot gold at Comex trading near $1,714 an ounce in the morning trade. A weaker dollar capped the downside in the yellow metal while traders and investors waited key US CPI data to be released on September 13.

We expect gold prices to trade sideways to down for the day, with COMEX spot gold support at $1,700 and resistance at $1,730 per ounce.

MCX October gold support lies at Rs 50,200 and resistance at Rs 50,800 per 10 grams. 

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Outperformance of BFSI, IT, auto, capital goods may take Nifty to 18,600: Ashika Stock Broking

 More than 60 percent of the Nifty 500 index, traded above the 200 DMA, the highest in the last four months, suggesting there is room for more upside amidst intermittent corrections, says Tirthankar Das, analyst.

Ashika Stock Broking continues to maintain a positive stance on Nifty, with an upside target of 18,600 by CY22. BFSI, IT, auto and capital goods sectors are expected to outperform and they are likely to lead the rally, says Tirthankar Das, technical & derivatives analyst, retail, at Ashika Stock Broking.

Das has more than 10 years of experience as a research analyst in equities, commodities and derivative analysis.

Bank Nifty has immediate support around the 38,000 levels as it is the confluence of the 50 EMA (currently placed at 37,800) and the 61.8 percent retracement of the correction since October 2021 (41,829-32,155).

Nifty has rallied close to 18 percent since the low of 15,183, hit in June 2022. The current rally has been the strongest since October 2021 on a time-study basis. The breakout is well supported by a sequential improvement in market breadth, with the percentage of stocks trading above the long-term 200 DMA showing significant progress. The Nifty has also seen a bullish golden crossover in August (50-DEMA crossing above 200 DEMA), implying a major shift in momentum from a medium-term perspective.

Markets, the world over, have seen profit-booking in the past two weeks, post the Fed Chairman's statements while our markets have managed to hold on to the important support levels and have relatively outperformed global markets.

Equity markets in India and the US have taken a divergent path over the current period. In July, the correlation coefficient for both these markets had hit a 17-month high. Indian markets have withstood the latest global sell-off, which further validates that a decisive move beyond the psychological level of 18000 is likely to commence.

Improvement in India's weight in the MSCI Emerging Market Index, rise in equity trading volumes, a sharp revival in foreign portfolio investor (FPI) inflows, sharp decline in crude oil prices and India VIX drifting lower are all indicating that the market is heading towards an all-time high.

As per technical charts, what are the sectors going to take the lead, if the index moves beyond the previous highs?

We continue to maintain a positive stance on Nifty, with an upside target of 18600 by CY22. It will be led by the BFSI, IT, auto and capital goods sectors, which are expected to outperform.

Banking and capital goods stocks continue to relativelyoutperform the benchmark index and are expected to continue their relative outperformance, going forward.

IT stocks have been showing initial signs of a pullback, after the recent sharp correction. They are rebounding from key support areas, thus providing bargain-buy opportunities.

The auto index continues to remain in a firm uptrend and it has breached the multi-year breakout area. Hence, the current outperformance is likely to continue.

Do you think the performance of the broader markets will remain strong in the coming months, in comparison with the benchmarks?

The percentage of stocks above the 200 DMA of the Nifty 500 universe recorded an extreme low reading of 14 at the June low of 15200. Subsequent rallies in the Nifty have seen a minimum20 percent from the lows on such occasions.

At present, the strong momentum in the market, over the last few weeks, has pulled more than half of the stocks on the broader NSE500 index above their 200 DMA – a technical indicator signalling long term trends.

About 307 stocks or more than 60 percent of the Nifty500 index traded above 200DMA, the highest in the last four months, suggesting there is room for more upside amidst intermittent corrections and hence it is likely to be broad-based.

What are the technical charts indicating about the IT space?

The IT index has corrected over 30 percent from its all-time-high of 39,446. The long-term chart, since 2007, shows that the rally has taken place amidst a rising channel, has provided the necessary breakout and is now at a point to retest the arrangement.

At present, the index is at a critical juncture where a pullback seems immense. On the shorter time-frame, a Class B positive divergence in the daily chart can be seen. This is illustrated by prices making a double bottom, with an oscillator tracing a higher second bottom.

Do you think the banking index is likely to hit 45,000 in the coming year?

The Bank Nifty has immediate support around the 38,000 levels as it is the confluence of the 50 EMA (currently placed at 37,800) and the 61.8 percent retracement of the correction since October 2021 (41,829-32,155).

Hence, one can expect further buying interest to emerge and one can use the dips as an incremental buying opportunity. Though the weekly 14-period RSI, after a strong rally is in overbought territory, a retracement of the recent upmove from here on would make the market healthy.

Since October 2020, the index has unfolded an ABCD harmonic pattern. The confirmation of this pattern will be deemed valid at a successive trade above 38,765 and it will challenge the all-time high of 41,800 in the coming months.

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