Reliance Securities released a report of the day trading. According to the report, Titan Company closed 1% higher in trade today at Rs820 compared to 0.9% increase in the benchmark Nifty. With Tanishq, Titan is the leader in the Indian Jewellery market with 240 stores spread across 147 cities and towns. Being the market leader, we expect Titan to benefit the most from increasing share of organized jewelry players post GST and other regulatory measures.
Relainec securities believe that Titan remains on track to deliver revenue growth in the excess 20% in Jewellery business, which coupled with high operating leverage is expected to aid the Company to clock 23% and 30.4% CAGR in revenue and earnings, respectively through FY17-20E.
Based on expected EPS of Rs21.5, the stock trades at P/E ratio of 38x FY20E earnings. We maintain our BUY recommendation on the stock with a Target Price of Rs950.
For today’s trade, the long position can be initiated at Rs 670-673 for the target of Rs 693 with a strict stop loss of Rs 665. Traders are advised to avoid early morning whipsaw.
MARKET SYNOPSIS
Yesterday, NSE-NIFTY moved higher post gap up opening on the back of firm global cues and later oscillated around its daily moving averages before closing the session. Finally, after registering low of 10,520 and high of 10,593 levels during the day, NIFTY closed the session with the gain of 92 points at 10,583 marks.
NSE Cash segment reported turnover of Rs29,176 crore as compared to Rs32,328 crore earlier. Overall market breadth remained positive, where 1014 stocks advanced against 638 declined stocks.
A mixed trend was observed across all the sectoral indices during the day, where Auto and Realty emerged as top gainers with the increase of 2.2% and 3.1%, respectively. However, IT index has reported the highest decline (i.e. 1.2%).
NSE-NIFTY OUTLOOK
NSE-NIFTY has begun the brand new week on a positive note, where the index extended gain continuing prior daily up-trend and rose to a 14-day closing high. Due to further rebound in the index, the key technical indicators on the daily scale moved little higher. As mentioned earlier, we believe that NIFTY will witness such kind of bounce back before the index resumes its southward journey. On the higher side, a close above 10,650 level will confirm the break-out in NIFTY, which will help the index to reclaim 10,800 marks in the near-term.
In case of decline, prior swing low (placed at around 10,275 level) will continue to work as a key reversal point.
As for the day, support is placed at around 10,530 and then at 10,430 levels, while resistance is observed at 10,650 and then at 10,720 levels.
