Top 5 Stocks For September 5: JK Cement Suzlon, Reliance & Other In Focus

The Nifty Index opened the gap down by 190 points on account of weak global cues but that marked the low of the day and we witnessed a comeback of the bulls. Recovery was seen throughout the day and it managed to recover by 130 points from its lows. It formed a bullish belt that held sort of a candle on the daily frame and closed near its higher zones.

Now it has to continue to hold above 25,200 zones for an up move towards 25,400 then 25,500 levels while support is seen at 25,100, then 25,000 zones.

India VIX was up by 3.86 per cent from 13.84 to 14.38 levels. Volatility slightly inched higher but has been hovering in a narrow band at its lower zones, which is paving way for the bulls at any declines.

On option front, the Maximum Call OI is at 25,300 then 26,000 strike while Maximum Put OI is at 25,000 then 25,100 strike. Call writing is seen at 25,200 then 25,300 strike while Put writing is seen at 25,100 then 25,000 strike. Option data suggests a broader trading range in between 24,900 to 25,700 zones while an immediate range between 25,000 to 25,500 levels.

Bank Nifty Index opened on a negative note but remained consolidative in a narrow range of 200 points for the entire trading session. It formed an Inside Bar on a daily scale as momentum is missing on either side but holding well above its 50 DEMA.

Now it has to continue to hold above 51,250 zones for an up move towards 51,750 then 52,000 levels while on the downside, support is seen at 51,250 then 51,000 zones.

Fin Nifty Index opened on a negative note and post that it traded in a narrow band of 100 points for the entire trading session. It formed an Inside bar on the daily scale as it traded within the range of the previous trading session; more importantly, it is trading above both its 20 & 50 DEMA.

Now it has to continue to hold above 23,750 zones for an up-move towards 24,000 then 24,100 levels while support is seen at 23,750 then 23,650 zones.

Nifty future closed negative with losses of 0.41 per cent at 25251 levels. Positive setup was seen in Biocon, Hindpetro, Berger Paint, MCX, Asian Paint, AU Bank, Deepakntr, ICICIGI, Alkem, Grasim, Lupin, Trent, Dabur, Pidilitind, Lauras Labs, Hindunilvr, Ipca Labs, UPL, JK Cement, Cumminsind, Heromotoco, Ultracemco and IEX while weakness in RBL Bank, Federal Bank, Coal India, Bank Baroda, ONGC, BHEL, PNB, NMDC and Exideind.

JK CEMENT - TECHNICAL CALL OF THE DAY

JK cement is trading at life time high territory and gave fresh range breakout on weekly scale after twenty seven weeks. On daily scale, the stock is forming higher highs – higher lows from past three sessions and gave highest daily close.

Momentum indicator Relative Strength Index is also moving northward on a weekly scale, which indicates overall strength in the stock. Good buying is visible across Cement stocks which may support the ongoing up move.

BUY JK CEMENT CMP 4670 SL 4550 TGT 5000

TOP 5 STOCKS TO WATCH OUT FOR SEPTEMBER 5

Suzlon:

• The company has executed a Conveyance Deed with OE Business Park Private Limited (“OEBPPL”) for sale of One Earth Property, being its corporate office valuing at Rs 440 crore. OEBPPL is a special purpose vehicle, shares of which are held by funds managed by 360 ONE Alternates Asset Management Limited.

• On completion of the sale, the One Earth Property would be leased back to Suzlon for a period of up to 5 years with sub-leasing and licencing rights. 

• Further, Suzlon has also entered into agreements with the holders of the securities issued by OEBPPL, providing them with a call option to purchase and granting the holders of the securities a put option to sell the securities.

Sona BLW:

• The Board has approved qualified institutions placement (QIP) of equity shares with a floor price set at Rs 699.01 per share. Additionally, as per the press release, the company may offer a discount of upto 5 per cent on this floor price. 

Linde India:

• The company has entered into the Plant Sale Agreement with Tata Steel Limited for acquiring their industrial gas supply assets - 2X1800 tpd Air Separation Units (ASUs) at their Kalinganagar Phase 2 expansion project. 

Reliance :

• The Ministry of Heavy Industries has awarded Reliance Industries a 10 GWh capacity for Advanced Chemistry Cell manufacturing under the Production Linked Incentive (PLI) Scheme. This selection follows a global tender process that received seven bids from leading companies.

PNB Housing Finance:

• The Board Meeting is scheduled for 9th September 2024 to consider and approve issuance of Non – Convertible Debentures (NCDs) up to Rs 2,500 crore on Private Placement Basis, in tranches over the next six months.

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