Weekly Stock Recommendation by Money Maker Research

Indian equity markets registered modest gains in the week ended Friday, 13 May 2016 buoyed by the passage of key egislation viz. the Insolvency and Bankruptcy Code, 2016 by the government in the Parliament which is expected to help creditors recover bad debt faster. The market gained in three out of five trading sessions. The Nifty rose 81.45 points or 1.05% to settle at 7,814.90.

On the macro front, the data on Thursday, 12 May 2016 showed acceleration in consumer price inflation in April 2016. Inflation based on consumer price index (CPI) surged to 5.39% in April 2016 from six months low of 4.8% recorded in March 2016.  

On The F&O Front :  

Weekly data shows in the past trading sessions, we have seen strong Put writing at 7600/7700/7800 strikes & major Call writing at 8100/800/7900 strike indicating a range bound session for market, in the near term.  

On Technical Front: 

On Nifty weekly chart strong support is seen at 7780. If it breaks with high volume, more bearishness is expected.  

Nifty Directional:

Sell Nifty Future below 7775, Target 7725, 7675, Stop-Loss 7875. 

WEEKLY STOCK RECOMMENDATION:

BUY PFC FUTURE ABOVE 176.5,TARGETS:179,181.5,184, STOPLOSS-171.5 

BUYSTAR FUTURE ABOVE 1200 TARGETS 1207.5,1215,1222.5 STOPLOSS 1185  

SELL HINDALCO FUTURE BELOW 89.25 TARGETS 87 , 84.75 , 82.5 STOPLOSS 93.75

Government cuts interest rate on PPF

A cut has been announced on interest rates on small savings. PPF interest rates have been reduced from 8.7% to 8.1%, while that on 5 year recurring deposit has been reduced to 7.4% from 8.4%. 

The interest rate on Kisan Vikas Patra has been slashed to 7.8% from 8.7%. 

Besides, the government also has slashed interest rates on 3-year time deposit to 7.4% from 8.4%; 5 year time deposit to 7.9% from 8.5% and on girl child scheme to 8.6% from 9.2%. 

Pharma Stocks Reel Under Heat of Government Action

Pharma stocks were under strong under pressure for second back to back day, weighed around a weekend request from the Government banning more than 300 medicine. The BSE Healthcare stocks was down 1.5 for every penny, adding to its 3 per cent misfortune endured on Tuesday. 

The yearly effect of the ban is evaluated at around 4 per cent or about Rs. 4,000 crore of around Rs. 1 lakh crore Indian domestic pharma market. 

The health ministry has banned 344 settled measurement mix drugs, including several cough syrups and anti-toxins and analgesics syntheses, saying they include "danger" to people and more secure choices were accessible. 

A percentage of the drugmakers hurt by the Government turn have drawn closer court and got an interim relief. Nonetheless, conclusion keeps on being negative in pharma stocks, traders said. 

Today the major losers in the pharma stocks, sun pharma and Dr.Reddy’s down nearly 2 per cent while Lupin, Glenmark were 1 per cent lower.