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

DCB Bank hits 52-week high post March quarter earnings

Market News

DCB Bank shares hit a 52-week high of Rs 211, up 4 per cent, on the BSE, in an otherwise weak market on Monday, after the private sector lender reported healthy earnings for the last quarter of fiscal 2018-19 (Q4FY19).

The stock was trading close to its all-time high level of Rs 213 apiece hit on June 16, 2017, on the BSE. In comparison, the benchmark S&P BSE Sensex was down 0.67 per cent at 38,878 points at 10:49 am. The trading volumes on the counter has more than doubled with a total of 6.35 million shares exchanging hands on the BSE and NSE so far.

DCB Bank’s profit after tax rose 50 per cent to Rs 96 crore in Q4FY19, on the back of higher net interest income (NII). The bank’s net profit stood at Rs 64 crore for the same period last year. NII grew 16 per cent at Rs 99 crore against Rs 85 crore in the corresponding quarter of the previous fiscal.

The bank’s asset quality improved sequentially, as gross and net non-performing assets (NPAs) dipped around 1 and 6 per cent QoQ, respectively. Net interest margins (NIMs) were almost flat at 3.8 per cent, though compressed 38 bps YoY. Management is confident of "retaining NIMs at current levels".

"The bank fulfilled its almost prophetic guidance of 1 per cent on return on average assets (RoAA) despite macro challenges like demonetization and GST. While loan growth disappointed in Q4FY19 (16 per cent), stable margins, improving op-lev and asset quality impressed," analysts at HDFC Securities said.


 The brokerage firm, in its results preview, had said that with its core growth engine intact, DCB Bank "has the potential to grow at faster rates."."(We anticipate) upgraded earnings by around 12/16 per cent for FY20/21E. A significant improvement in resulting efficiencies (anticipated) drives up our RoAA estimate to around 1.2 per cent by FY21E," it had said with ‘buy’ rating on the stock and target price of Rs 228 per share...Read More