Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 32 points or 0.28 percent. Nifty futures were trading around 11,514-level on the Singaporean Exchange.
Asian Paints is India's largest and Asia's second largest paints corporation. It rules the Indian paint industry with 54.1 percent of the market share and is the holding company of Berger International.
Dolat Capital recommended Accumulate rating on Asian Paints with a target price of Rs 1500 in its research report dated July 24, 2018.
Revenue from operations grew by 15.1 percent year-on-year to Rs 4,390 crore with double digit volume growth in the decorative paint business.
Motilal Oswal expects revenues to grow 22 percent on a YoY basis to Rs 4,650 crore in 1QFY19, with 16 percent volume growth in the domestic decorative business
The breadth of the market favoured advances, with 1236 stocks advancing, 462 declining and 377 remaining unchanged. On BSE, 1572 stocks advanced, 774 declined and 106 remained unchanged.
The city-headquartered company is setting up plant with a 5 lakh KL per annum capacity at Visakhapatnam at an investment of Rs 1,785 crore and a 6 lakh KL plant at Mysuru pumping in Rs 2,300 crore.
Kotak Securities recommended accumulate rating on Asian Paints with a target price of Rs 1320 in its research report dated May 11, 2018.
126 stocks hit a new 52-week low. These included names like Ajanta Pharma, Ambuja Cements, Amtek Auto, Can Fin Homes, HUDCO, Indo Count Industries, Idea Cellular, Mahanagar Gas, OBC, Power Finance Corporation, PNB, Rural Electrification Corporation, Strides Shasun and Union Bank.
The market breadth was in favour of the declines with 753 stocks advancing while 834 declined and 442 remained unchanged. On the other hand, in the BSE, 937 stocks advanced and 961 declined and 78 remained unchanged.
The company had posted a net profit of Rs 479.61 crore in the January-March quarter a year ago.
Rajat Bose of rajatkbose.com is of the view that one can buy ACC with stop loss below Rs 1529.80 and target at Rs 1551, a buy on Bharti Infratel with stop loss below Rs 320 while targets are Rs 332 and Rs 335 while one can sell Asian Paints with stop loss above Rs 1216 and targets are Rs 1197 and Rs 1182.
“Correction in Bank Nifty is likely ahead of weekly expiry.” says Jaydeb Dey, Technical Analyst at Stewart & Mackertich Wealth Management Ltd.
Net Sales are expected to increase by 11.2 percent Y-o-Y (up 2 percent Q-o-Q) to Rs. 4,345.7 crore, according to ICICI Direct.
Vinay Rajani, Technical Analyst, PCG Desk at HDFC Securities recommends buying Thomas Cook with target at Rs 325 and stop loss at Rs 260 and a buy also on NRB Bearing with target at Rs 195 and stop loss at Rs 168.
Net Sales are expected to increase by 12 percent Y-o-Y (up 3.9 percent Q-o-Q) to Rs. 4,426.7 crore, according to Prabhudas Lilladher.
"Asian Paints can be bought at current level and on dips to Rs 1165 with a stop loss below Rs 1140 for target of Rs 1260 levels," says Ashish Chaturmohta, Head Technical and Derivatives at Sanctum Wealth Management.
“Recovery from the day’s low despite negative global cues articulates the intrinsic strength of the uptrend in the Nifty. Buy-on-dips is the strategy to be followed,” says Jaydeb Dey, Technical Analyst at Stewart & Mackertich Wealth Management.
Chandan Taparia of Motilal Oswal Securities recommends buying Hero MotoCorp, Bharat Forge and Asian Paints.
"The Nifty has formed 'Hammer' candlestick pattern indicating a short term reversal. Furthermore, on hourly scale, oscillators like RSI & MACD has given positive crossover which is a bullish sign," says Rajesh Agarwal of AUM Capital.
Mitessh Thakkar of miteshthacker.com is of the view that one can sell Petronet LNG and buy Motherson Sumi Systems.
Mitessh Thakkar of miteshthacker.com recommends buying Axis Bank with a stop loss of Rs 529 and target of Rs 551 and Britannia Industries with a stop loss below Rs 4900 for target of Rs 5200.
Mitessh Thakkar of mitesshthakkar.com is of the view that one can buy Vedanta and sell Asian Paints.
"A short-term bottom in place around a recent low of 10,276 levels. As the market has moved in a range bound manner in the current week between 10,637 – 10,398, traders should focus for breach of these levels and the move outside this range can be swift in the direction of the breakout," says Mazhar Mohammad Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in.