This week some of the big companies declared results like Reliance Industries and Hindustan Unilever. Reliance Industries recorded Rs 10000 crore net profits in one quarter-a record by any Indian company. No wonder market got excited with the numbers and scrip posted 4% gain. On the other hand, Hindustan Unilever has given muted performance. Stock price did not see much movement post result suggesting that result is in line. Another large cap company Avenue Supermarts declared its results last Saturday and market gave thumbs down. It lost 12% of its market cap in last one week.
Last week 73 companies declared results of which 26 companies shown improved financial trend and for 37 companies the trend has fallen.
But the trend in stock price what we saw last week continued this week too. Post results many companies share prices have moved down suggesting that India Inc. quarterly numbers did not excite the market. Out of 10 large cap companies that have declared results so far six have seen market cap erosion post results. Those who are in green have reported low single digit gains suggesting that net there has been erosion in market cap. But few companies’ result that market loved it are Specialty Restaurant which is up by 32% and Majestic Auto by 58%. It would be interesting to watch whether these two companies can sustain their gains in next few weeks.
Results Breakup by Market Cap
Big Results this week
Outstanding Results this week
Very Negative Results So Far
Data as on 18th Jan 2019 4:30 PM
Let’s watch couple of stocks that has resulted good numbers and how they have been awarded in terms of stock price
Stock was seen trading in a sideways consolidation for the past couple of months at its peak zone and has move quite well in this month. Strong set of numbers has put stock into interest and buyer’s circuit continues. Shy from its all time high levels, stock is expected to continue its rally higher with limited upside. After such a huge move as seen on the monthly chart, one should look for the large bullish candle formation here that will be the end of rally. Thus, one can wait for the pullback to happen.
Another stock that has been in circuits from the delivery of Q3 numbers has seen some halt after a 55% move from the recent low. Trading at resistance at current place, correction is poised with lesser damage. Volumes have been robust around the rise while sellers are prominently active for now. Thus, the down move will be noticed and fresh set of buyers will hold the line for next leg of up-rise.
Same as Majestic Auto, Speciality restaurant has move around 50% from the day of result announcement. Moving in circuits, stock has seen a sideways for the past 2-3 days with strict range shows possible formation of flag type pattern. Thus, moving higher stock is expected to find resistance at 127, 149 levels.