Consumption sector stocks offer some characteristic intrinsic values in real terms because they have the biggest exposure in rural, urban and semi-urban India. Consumption sector stocks become the best investment options for long term wealth creation.
The Covid induced lockdown disrupted supply for the entire consumption sector in India. Though the disruption for staples was limited for a month, discretionary and ‘out of home’ consumption products supply remained interrupted for at least a quarter.
Moreover, demand conditions for discretionary and out of home consumption was also dismal for H1FY21. With the lockdown completely ending, we believe there will be huge pent up demand for discretionary categories (skincare, cosmetics) within FMCG in H2FY21.
Also Read: Tata steel share price takes an exciting take-off attracting investors
The consumer durable sector is expected to witness a surge in volumes with pent up demand for washing machines, dishwashing categories. Further, almost three to six months delay in repainting activity would lead to pent up sales for paint companies. Moreover, government stimulus and lower interest rate is also resulting in an improvement in demand conditionsfor many products. Trade analysts believe lower interest rates would lead to an improvement in demand for residential houses, subsequently leading to an increase in related consumables. moneyinvestors.in/consumption-sector-stocks/
Consumption sector stocks offer some characteristic intrinsic values in real terms because they have the biggest exposure in rural, urban and semi-urban India. Consumption sector stocks become the best investment options for long term wealth creation.
The Covid induced lockdown disrupted supply for the entire consumption sector in India. Though the disturbance for staples was restricted for a month, discretionary and ‘out of home’ consumption products supply remained severely affected for at least a three months.
Apart from this, the situations for the demand of discretionary and out of home consumption was also not okay for H1FY21. With the lockdown completely ending, we believe there will be huge pent up demand for discretionary categories (skincare, cosmetics) within FMCG in H2FY21.
The consumer durable sector is expected to witness a surge in volumes with pent up demand for washing machines, dishwashing categories. Moreover, almost half a year delay in repainting activities would result in boosting sales for paint companies. In addition, government encouragement and less interest rate are also responsible for an improvement in demand conditions for many products. Trade analysts believe lower interest rates would lead to an improvement in demand for residential houses, subsequently leading to an increase in related consumables.
One of the reasons for a robust demand situations in October is the festive season discounts and offers. Further, trade analysts also believe demand for wedding related products would also surge given halt on wedding-related functions in H1 would lead to pent up demand for such products.
Technically, analysts recommended one of the leading consumption sector stocks – Hindustan Unilever.
Hindustan Unilever (HINLEV):
Base formation at rising demand line, 52 weeks of its share price movement indicates fresh entry opportunity along with a favourable risk-reward.
o Consumption sector stocks, after the sharp up move in March-April, have witnessed a healthy base formation in the last six months at the long term support area and are expected to resume their fresh up move.
o The share price of Hindustan Unilever has formed a higher base at the long term demand line joining major lows since October 2018 and the rising 52-week EMA (currently at Rs 2094), thus offering a fresh entry opportunity with a favourable risk-reward set-up
o During the current week’s trade, the stock has generated a breakout above the falling supply line joining highs of April (Rs 2614) and July (Rs 2350) signalling the current consolidation is approaching maturity and resumption of the fresh up move
o The stock has taken nearly 28 weeks to resume 80% of the previous four week’s up move (Rs 1758-2614). A slower retracement highlights a robust price structure and higher base formation
o Trade analysts expect the stock to resume its primary uptrend and head towards Rs 2490 as it is the 80% retracement of the entire previous decline of AprilMay (2614-1902) around Rs 2490
HUL reported a healthy set of numbers with 16.1% sales growth aided by consolidation of acquired brands (Horlicks, Boost, VWASH). On a like to like basis, growth has been 3% supported by 1% volume growth. The recovery in the business was led by complete normalisation of supply chain & strong demand in health, hygiene & nutrition space. The health, hygiene & nutrition products that constitute 80% of sales witnessed growth of 10% whereas discretionary & out of home consumption products, which constitute 20% of sales saw a decline of 25%
• With the merger of nutrition brands (Horlicks, Boost), trade analysts see the possibility of margin improvement by the way of controlling common cost & bringing synergistic benefits. Moreover, the company would be able to grow these brands at a faster pace given large distribution network & robust cash flows for the brand-building exercise
• The effect of lockdown induced due to corona was a disruption of supply for more than a month. However, some of the ‘at home’ consumption categories got the boost with additional demand for tea, coffee, ketchup & soups business. Moreover, with a sharp increase in tea prices, the company is looking to gain market share from unorganised/regional tea producers. It may be noted that the unorganised tea market makes up almost 50% of sales.
• Trade analysts believe the company would be able to able to witness a sustainable revenue & earnings growth backed consolidation of the acquired business. trade analysts remain positive on the stock from a long term perspective
In a blink of an eye, COVID-19 changed every facet of our ordinary life; from going to school, meeting with friends and family, and having fun. No one could have thought anything like COVID-19 could fall suddenly on the human race and, for that, got a little precaution.
The disease not only has taken so many lives so far but changed how we lived. Can you remember how you were living before it? The sad part is we would never go back to the same routines. In the beginning, all the hit countries went into silence. Then came technology to save us from pure isolation.
You also might be among those who adapted the new condition to get together with relatives and friends. In the meantime, there were those people who benefited from Live Streaming. A teacher started to broadcast his classes online, and then musicians started live concerts, then conferences, games, meetings, and even funerals went online.
The live stream, which was around before the pandemic, took over our daily lives while still in shock. Schools, colleges, and universities started their online classes and made halted education to survive. This seems to continue for the new semester as well since the COVID-19 still takes lives.
The way we get also entertained today depends on live streams more than any other time in human history, a point in time that has no return, maybe only on Hollywood movies. moneyinvestors.in/live-stream/
In a blink of an eye, COVID-19 changed every facet of our ordinary life; from going to school, meeting with friends and family, and having fun. No one could have thought anything like COVID-19 could fall suddenly on the human race and, for that, got a little precaution.
The disease not only has taken so many lives so far but changed how we lived. Can you remember how you were living before it? The sad part is we would never go back to the same routines. In the beginning, all the hit countries went into silence. Then came technology to save us from pure isolation.
You also might be among those who adapted the new condition to get together with relatives and friends. In the meantime, there were those people who benefited from Live Streaming. A teacher started to broadcast his classes online, and then musicians started live concerts, then conferences, games, meetings, and even funerals went online.
The live stream, which was around before the pandemic, took over our daily lives while still in shock. Schools, colleges, and universities started their online classes and made halted education to survive. This seems to continue for the new semester as well since the COVID-19 still takes lives.
The way we get also entertained today depends on live streams more than any other time in human history, a point in time that has no return, maybe only on Hollywood movies. Musicians started their concerts worldwide on a new stage, Live Streams, where people can sit next to each other from different locations like India, the USA, UK, Australia, Japan, and Iran.
Truth is Live Stream service providers worldwide witnessed the demand for their services at least tripled after the COVID-19 break-out. Education and businesses comprise a good part of this demand. They have found their costs reduced and have more control over the content and processes, while they have realized how easier time management got.
It can be predicted that live streaming benefits for schools and businesses would not let them return entirely to the earlier methods. Thus, live streaming has become an integral part of education, entertainment, and business environment.
But are all live stream service providers the same? Of course not. Live Stream services differ from each other significantly. The main differences are the number of concurrent supported users, stream quality, cost, and online support.
Among the young service providers in this field, ArvanCloud has supported almost 150 thousand concurrent users at live events on live stream service with the least possible delay during COVID-19. Adding to this is its economical pricing packages and ArvanCloud Live Stream quality, which position it on the top three providers that recently entered the Indian market.
ArvanCloud explains that its Live Stream service stands on the edge of technology, and for that, it can provide such a quality Live Stream. ArvanCloud developers claim: “Live Stream is one of the best services offered since we have better infrastructure and better codes. We constantly update and improve our codes, while many other providers have developed their codes years ago and have not improved it.”
But what makes Live Stream of ArvanCloud different? The company’s Live Streaming Platform allows the video content creators and distributors to transform their video or live stream content to multiple qualities and formats. Users can also store and publish their live stream in an unlimited cloud video hosting without worrying about infrastructural issues.
ArvanCloud Live Video Streaming platform is integrated over the Content Delivery Network. CDN Live Streaming helps the video content be delivered from the nearest geolocation to each user, enabling them to watch videos without delays and with the best possible speed.
Better internet access worldwide and better internet speed have also helped the surge in the live streams. Besides, we would manage our times with live streams, and put some of our money in the pocket and save more. Live Streams also allow you to save the movies, concerts, classes, etc. and watch it repeatedly.
One can say that Live Streams will not fade, it might lose some weight after COVID-19, but it will not vanish. It is an integral part of our lives. So we should be thankful to some extent to the condition that occurred to us and made us all enjoy the Live Stream at the comfort of our homes.
Tata steel share price has recently started showing its familiar uptrend attracting a good number of buyers.
Tata steel news
The Indian stock market continues its bull run with Sensex up 0.88 percent to 40901.72, and the Nifty moving up 97.20 points or 0.82 percent reaching 11994.
One of the leading sectors has been the Metals - steel, aluminium or Zinc. It moved up 2%. The key performers have been Tata Steel, Jindal Steel, Hindustan Zinc, Hindalco Industries, MOIL, JSW Steel, Ratnamani Metals and SAIL. The metal group as of late has experienced some solidification and stayed away from the market correction on October 15, 2020. The following day the metal stocks inside this space just flew, particularly the steel stocks.
Traditionally, Tata steel has been on top of all steel industries and as such Tata steel is one of the most favorite shares of investors and brokerage houses. Steel prices have gone up and the demand is going up after the covid induced lockdown which augurs well for the Tata steel share price. A wise decision for long term investment.
Tata steel share price movement
Metal stocks have been in a recovery mode and have shown significant resilience in the current market volatility. Stocks like JSW Steel have managed to retest their new 52-week high despite jittery market conditions, indicating the prevailing positive bias in the metal space. We believe stocks like Tata Steel will resume their uptrend on account of short-covering. moneyinvestors.in/tata-steel-share-price/
Tata steel share price has recently started showing its familiar uptrend attracting a good number of buyers.
Tata steel news
The Indian stock market continues its bull run with Sensex up 0.88 percent to 40901.72, and the Nifty moving up 97.20 points or 0.82 percent reaching 11994.
One of the leading sectors has been the Metals – steel, aluminium or Zinc. It moved up 2%. The key performers have been Tata Steel, Jindal Steel, Hindustan Zinc, Hindalco Industries, MOIL, JSW Steel, Ratnamani Metals and SAIL. The metal group as of late has experienced some solidification and stayed away from the market correction on October 15, 2020. The following day the metal stocks inside this space just flew, particularly the steel stocks.
Traditionally, Tata steel has been on top of all steel industries and as such Tata steel is one of the most favorite shares of investors and brokerage houses. Steel prices have gone up and the demand is going up after the covid induced lockdown which augurs well for the Tata steel share price. A wise decision for long term investment.
Tata steel share price movement
Metal stocks have been in a recovery mode and have shown significant resilience in the current market volatility. Stocks like JSW Steel have managed to retest their new 52-week high despite jittery market conditions, indicating the prevailing positive bias in the metal space. We believe stocks like Tata Steel will resume their uptrend on account of short-covering.
The open interest in the stock declined sharply in June amid short-covering. Since September, the stock has witnessed a downtrend with short additions. These positions have begun to be covered. We now expect the momentum to be seen along with covering of short positions in the coming sessions.
In the options space, the stock has the highest Call option base at the 400 strikes followed by 420 strikes. As the stock was in a consolidation phase, Call writers are active at the 400 strikes. Sustainability above this level may trigger a further up move on the back of short-covering in the Call writer’s position. These positions may shift to higher OTM strikes. At the same time, Put open interest base is strengthening at the 380 and 370 Put, which can act as strong support on downsides
From June to August, Tata steel share price witnessed an impulsive up move towards Rs 445 levels. Since then, it has remained largely range-bound with time and price based correction. This recent decline towards Rs 360 has given another opportunity to go long in the stock for fresh upsides
The stock has seen one of the highest delivery based actions around Rs 340-360 in June. We expect levels around Rs 360 to act as crucial support for the stock in the short-term. With the early signs of the stock moving out of the prevailing range, analysts expect it to continue its upward momentum
Jindal Stainless Steel share price going bullish! Jindal Stainless Steel (JSL), part of the OP Jindal Group, is India’s largest stainless steel producer with a melting capacity of 1.1 million tonnes per annum. Apart from its state-of-the-art manufacturing unit in Odisha, JSL also has a 250000 tonnes per annum (TPA) Ferroalloy plant and a 264 MW captive power plant.
o The Jindal Stainless Steel share price has logged a resolute breakout from two years base formation (Rs 23-53) backed by a faster pace of retracement as stock entirely retraced past seven weeks decline (Rs 53-39) in just single week. Multi-year consolidation breakout supported by a faster pace of retracement, signifies resumption of the primary uptrend, auguring well for next leg of an up move
o Key point to highlight during ongoing up move off March low (Rs 21) is that, the stock has been trading in a upward sloping channel indicating elevated buying demand. In the process stock has closed above 200 weeks EMA for the first time in two years, indicating rejuvenation of up trend
