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BW Businessworld

Company Earnings In Focus This Week

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In Last week’s article I had written about the IT sector and how it may come bounce back and trigger a new uptrend. So far the charts are still confirming that analysis and I shall come back to whether the analysis proved to be correct two weeks from now. Last week, as we had expected, HCLTECH performed well, giving a handsome return. However, the overall performance of our recommended shares was a loss. This has happened after many months of consistent profits. Needless to say, over a period of 6 months, the performance will remain profitable. In my opinion, trading and investing profit / loss statements should be reviewed every quarter or six months instead of much shorter durations of a week or a month. Longer term investors normally do yearly reviews when they intend holding their portfolio over a period of several years.

This week, we have some major earning report announcements. Here is a list of some of these

Earnings Season
21 April: Hindustan Zinc, LIC Housing
22 April: HDFC Bank, MRF Tyres, Rallis India, Tata Elxsi, Tata Metalliks, Tinplate
23 April: Cairn India, Indiabulls Housing, India Bulls Realestate, L&T Finance, M&M Finance, Ultratech Cement, Yes Bank
24 April:  ACC, Ambuja Cement, Bharti Infratel, Biocon, Granules India
25 April: Axis Bank, ICICI Bank, Maruti Suzuki

Earnings would also be in focus in US with nearly one-third of S&P 500 names set to post results this week. Several behemoths, including Apple, the largest US company by market value, as well as Microsoft, McDonald's and AT&T, are due to report earnings.

Recommendation Last Week

HCLTECH: +1.7 per cent profit
BHEL: No Trade
NTPC: (-) 2.6 per cent loss
DLF: (-) 3.8  per cent loss

Recommendations This Week
Punjab National Bank (NSE: PNB)
Action: Buy (limit order) at 784, stop loss to be placed at 762. Target for this trade is 802.
Timeframe: 5-7 days.

Action: Buy (limit order) at 187.6, stop loss to be placed at 182. Target for this trade is 192.
Timeframe: 4-8 days.

Action: Buy (limit order) at 84, stop loss to be placed at 82.3. Target for this trade is 86.
Timeframe: 4-8 days.

Action: Buy (limit order) at 420, stop loss to be placed at 410. Target for this trade is 437.
Timeframe: 4-8 days.

Trade Well
•    Until you become an experienced trader, do not risk more than your disposable income.
•    Risk no more than 0.5 - 1 per cent of your capital per trade by adjusting position size to risk.
•    Profit percentages mentioned in the column are before deduction of brokerage, taxes and slippage. That’s because each broker charges at different rates.

Prateek Singh is CEO, MarketScientist