Technical calls from HDFC Securities: Buy Biocon, CESC

International News

Nifty View
Nifty has taken support on its 100-DMA (day-moving average) and managed to close above 11,550. Any close below 11,500 would resume the downtrend which could push Nifty towards 200-DMA level of 11,110. However, trend would be considered bearish unless Nifty closes above 11,800.
BUY BIOCON
CMP: Rs 245
Target: Rs 260
Stop-loss: Rs 235
The stock has partially filled the gap which was formed in the range of 225-241 registered in Dec 2017. This gap could act as a bullish reversal point. Oscillators have been forming positive divergence on the daily charts, indicating stock is getting accumulated on the dips.
Considering the technical evidences discussed above, we recommend buying the stock at CMP (current market price), for the target of Rs 260, keeping a stop loss at Rs 235 on closing basis.
BUY CESC
CMP: Rs 786
Target: Rs 825
top-loss: Rs 760

 The stock has been forming higher tops and higher bottoms on the daily charts....Read More

RP-Sanjiv Goenka group eyes turnover of Rs 40,000 crore in the next 5 years

Companies News:
Fourteen people are zeroing in on acquisition targets for the RP-Sanjiv Goenka group’s fledgling FMCG business. This segment is expected to clock in revenues of Rs 10,000 crore, or about a quarter of the group turnover, in the next five years. According to Sanjiv Goenka, the group turnover in five years would be around Rs 40,000 crore from the present level of Rs 26,000 crore. Power distribution and FMCG are likely to lead the pack, followed by retail, IT and carbon black.

The non-power businesses demerged from CESC —Spencer’s Retail and CESC Ventures comprising FMCG, BPO, realty, and the new entities — are likely to get listed soon. The size of the FMCG business is Rs 500 crore, but the plans are ambitious. An acquisition, for instance, would give it a foothold in a new segment. The size of acquisition being weighed? Goenka makes it clear that he doesn’t want to limit to any size, it could even be Rs 1,000 crore or more.


 An FMCG fund has been started. Like a private equity, it picks up stake in small firms. While the primary objective is to make money, the fund gives an opportunity to acquire the firms. Two investments have been made so far: The Souled Store (which does franchisee printing of clothes for Disney etc) and True Elements (into breakfast cereals)...Read More