Market Analysis: Stock market today

stock market update
This month, we all are just seeing market making new highs everyday and Nifty has now crossed the important levels of 10200. Few sectors like Pharma, IT are still not giving response to this buying. Whereas Telecom sector, Finance sector and Steel sector were among top active buy themes this week.

Boost in telecom sector

Reliance Industries on Friday posted a nice set of quarterly results for all their business segments. However, most interesting part was of Jio’s first quarterly result which amazed me and all investors. Revenue around Rs.6k crore and Loss at Rs.270 crore. Means, whereas normal telecom company approximately takes 4-5 years to see such type of revenue number, Jio has done this within one year. Overall, financial numbers of company are very good which clearly reflect in its stock price. I think stock of reliance would now go for a target of Rs.1000-1050 in short-term.

In recent trading sessions, not only Reliance Stock, but shares of Bharti airtel and Idea cellular have also outperformed the market. Whereas Bharti Airtel gave return of 15 percent in one week, Idea rallied almost 25 percent in same period. Although, idea is a good option to buy for long-term. Bharti Airtel is also a good option but i think idea would possibly give better returns than Airtel.

Banking stocks under some pressure

This week, Banking stocks were also seen very active in market but in negative. On Wednesday trade, Axis Bank’s shares fell as much as 10 percent and hits 52 week low after increase in its bad loans number reported during its quarterly results. Most of the banks are really facing difficult time due to increasing no. of bad loans and decreasing credit capability. I think banking sector is not a good option to buy for short-term. But I feel there are some opportunities in few bank stocks like Lakshmi Vilas bank in long-term.

Godrej Agrovet

Earlier this month, Godrej Agrovet debuts in stock market with a good listing. Company is engaged in business of agricultural related segment where growth potential is high. Financially, company has delivered a good growth which i think would continue. And fundamentally, valuations are looking very stable and well valued. Thus, i think godrej agrovet can be a good choice for long-term holding.

Mas Financial Services

Mas Financial Services made its entry in stock market on Wednesday, just before diwali. Stock got listing at a great premium of over 40 percent. Mas Financial is a Gujarat based NBFC operating across six states and the NCT of Delhi. I think financially, company has reported a good growth in past years. Valuations of this NBFC are not at cheap price, as there are many low valued NBFC stocks in market than Mas financial. But the potential level is still high as company have great exposure to middle and lower class peoples. Therefore, one may opt to hold this stock for long-term but for short-term, i don’t think stock would be a great choice.

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