Daily Morning Note

4 August 2020

Current % % Commerce Ministry may hike import duty on APIs by up to 25% Indices Value 1 D YTD Sensex 36940 (1.77) (10.46) Asian markets are trading mixed tracking positive cues from Wall Nifty 10892 (1.64) (10.49) BSE – Mid Cap 13717 (0.31) (8.36) Street while investors await the Reserve Bank of Australia’s interest 13155 1.02 (3.98) BSE – Sml Cap rate decision in the day ahead. Nikkei is trading higher by 1.40%, Hang SGX Nifty Fut 10952 0.37 Sectors – Performance (BSE) Seng is trading higher by 0.72% while Shanghai is trading lower by Consumer Dur 21709 1.07 (13.20) Healthcare 18388 0.56 36.92 0.26%. Indian indices are expected to open in the green. Sgx Nifty is 7860 0.44 (24.63) Metal trading higher by 0.37%. Bankex 23927 (2.73) (34.75) Oil & Gas 12980 (1.47) (11.97) The US markets ended higher led by gains in technology stocks, better than Realty 1557 (1.16) (31.71)

estimated manufacturing data and as lawmakers continue to negotiate over a new Nifty CMP % Chg Gainers/Losers coronavirus relief bill. On the data front, the U.S. manufacturing activity PMI Index for TATAMOTORS 112 6.93 TITAN 1077 3.63 July stood at 54.2 vs. estimates of 53.6. The Dow Jones gained 236 points or 0.89%

TATASTEEL 372 1.54 to close at 26,664 while the NASDAQ added 158 points or 1.47% to close at 10,903. UPL 453 (5.36) What to watch INDUSINDBK 504 (3.73)  Results Today: Marksans Pharma, MRPL, Godrej Consumer Products, HDFCLIFE 604 (3.68) Gujarat Gas, Century Enka, Astral Poly Technik, Apollo Pipes, Dixon

FII Trading activities in Cash Technologies, Eris Lifesciences, Geojit Financial Services, Hikal, Date Net MTD CYTD Igarashi Motors, Jindal Saw, JMT Auto, Neuland Laboratories, Sun FII 03/08 7,818 7,818 (59,692) Pharma Advanced, Taj GVK and Tata Consumer Products DII 03/08 (136) (136) 79,045  Oil prices move higher by 1% on positive economic data from the United States, Europe Figs. in Rs Cr., Source: Bloomberg.  Commerce Ministry may hike import duty on APIs by up to 25%  U.S. manufacturing activity near 1-1/2-year high Current % % Global Indices Value 1 D YTD Corporate Dow Jones 26664 0.89 (6.57)  Infosys: National Bank of Bahrain selects the company's banking solution Nasdaq 10903 1.47 21.51 DAX 12647 2.71 (4.54) Finacle for its transaction banking business. Nikkei 225 22507 1.40 (4.86)  KEC International has secured new orders of Rs 1,192 cr across its various FTSE 100 6033 2.29 (20.01) businesses. Hang Seng 24635 0.72 (12.61) Shanghai 3359 (0.26) 5.11  Biocon: Tata Capital Growth fund will invest Rs 225 cr in Biocon Biologics for Bovespa 102830 (0.08) (11.08) an equity stake of 0.85%.

Forex Rate  Alembic Pharma: QIP issue opens today, with floor price set at Rs 980.75 per INR/USD 75.01 (0.26) (4.84) share. INR/EUR 88.31 0.55 (9.31) INR/GBP 98.22 (0.07) (4.11)  Bank of has deferred the capital raising plan to the next board meeting. INR/YEN (100) 70.83 (8.47) (7.37)  Welspun Corp has bagged multiple pipe supply orders worth about Rs 1,000

cr.

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Trading Insights

Insight from trading volumes

Total Volume Monthly Avg Scrip CMP % Change (‘000s) Volume(‘000)

Bandhan Bank 309 500098 36714 1262

Amber Enterp. 1722 685 90 658

Advanced Enzyme 216 3554 505 604

Indoco Remedies 241 762 114 570

Solar Industries 982 118 22 429

Kansai Nerolac 445 1679 319 426

Ratnamani Metals 1132 55 11 418

Insight from delivery

Deliverable Volume Monthly Avg Delivery Scrip CMP % Chg (‘000s) Volume(‘000)

Bandhan Bank 309 383321 20614 1760

Apollo Hospitals 1574 3105 424 632

Solar Industries 982 106 15 607

Indoco Remedies 241 334 60 455

Kansai Nerolac 445 1266 231 448

P & G Health Ltd 4402 56 10 439

Advanced Enzyme 216 1027 197 422

*CMP-Closing Market Price

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Investment Picks

Target % Company Recommendation CMP Price Upside Bharti Airtel Buy 547 650 19 Biocon Buy 412 474 15 Birla Corp Buy 606 854 41 Britannia Inds Buy 3776 4300 14 CCL Products Buy 240 271 13 Endurance Technologies Buy 922 1190 29 Buy 52 66 26 HDFC Bank Buy 1002 1239 24 ICICI Bank Buy 343 480 40 ITC Buy 193 243 26 J K Cements Buy 1504 1697 13 Manappuram Fin Buy 159 205 29 MAS Financial Services Ltd Buy 627 814 30 Minda Corp Buy 68 81 20 Minda Inds Buy 284 318 12 Polycab India Buy 829 915 10 Relaxo Footwear Buy 594 697 17 Rites Buy 237 329 39 SBI Life Buy 875 996 14 SIS Buy 362 410 13 Varun Beverages Buy 684 804 17

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Technical View (Equity)

Daily call

Index CMP % up/dn S2 S1 P R1 R2 Nifty 10,899.85 -1.57% 10770 10835 10945 11010 11125 Sensex 36,939.60 -1.77% 36465 36700 37150 37385 37835

Nifty daily chart

Nifty opened sharply lower with a downward gap and selling pressure throughout the session dragged it lower to close on a negative note. Nifty closed at 10900 with a loss of 174 points. On the daily chart the index has formed a big bearish candle and has violated multiple day support of 11050 indicating negative bias. The index is moving in a Lower Top and Lower Bottom formation on the hourly chart indicating negative bias. The chart pattern suggests that if Nifty crosses and sustains above 10950 level it would witness buying which would lead the index towards 11100-11200 levels. However if index breaks below 10850 level it would witness selling which would take the index towards 10700-10600. Nifty is trading below 20 day SMA indicating negative bias in the short to medium term. Nifty continues to remain in an uptrend in the medium and long term, so buying on dips continues to be our preferred strategy. The daily strength indicator RSI has turned negative from the overbought territory and is below its reference line indicating sustained downtrend. The trend deciding level for the day is 10945. If NIFTY trades above this level then we may witness a further rally up to 11010- 11125-11185 levels. However, if NIFTY trades below 10945 levels then we may see some profit booking initiating in the market, which may correct up to 10835-10770-10660 levels STOCK IDEAS FOR THE DAY Company Name Buy / Sell Range Stop Loss Target BAJFINANCE Sell below 3169 3210 3130-3100 ADANIPORTS Sell below 308 312 304-300 Note- Stocks Ideas are based on previous day’s close and are activated only if they trade in buy/sell range.

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Daily Support/ Resistance of Nifty Companies Company CMP Pivot Point R1 R2 S1 S2 NIFTY 50 10900 10947 11011 11123 10835 10771 ADANIPORTS 312 314 318 324 308 303 ASIANPAINT 1705 1712 1727 1750 1690 1675 AXISBANK 419 422 429 438 413 406 BAJAJ-AUTO 2928 2969 3029 3129 2869 2809 BAJAJFINSV 6105 6129 6199 6292 6036 5966 BAJFINANCE 3175 3196 3223 3271 3148 3121 BHARTIARTL 548 550 554 560 544 540 BPCL 417 418 427 438 407 398 BRITANNIA 3779 3799 3830 3881 3748 3717 CIPLA 711 715 730 749 697 682 COALINDIA 129 129 130 131 128 127 DRREDDY 4530 4567 4633 4737 4463 4397 EICHERMOT 20841 20929 21206 21570 20565 20289 GAIL 94 95 96 98 93 91 GRASIM 633 633 643 654 622 611 HCLTECH 709 709 718 727 700 692 HDFC 1744 1752 1774 1804 1722 1700 HDFCBANK 1006 1009 1025 1043 991 975 HDFCLIFE 604 610 619 633 595 586 HEROMOTOCO 2633 2675 2728 2824 2579 2525 HINDALCO 161 163 165 170 159 156 HINDUNILVR 2206 2206 2223 2240 2189 2171 ICICIBANK 344 344 348 353 340 336 INDUSINDBK 504 509 517 530 496 488 INFRATEL 190 191 194 198 187 184 INFY 956 956 965 974 947 938 IOC 86 86 87 89 84 83 ITC 193 193 194 195 192 191 JSWSTEEL 220 221 224 228 217 214 KOTAKBANK 1317 1324 1349 1380 1293 1268 LT 917 913 923 929 907 897 M&M 597 604 613 630 587 578 MARUTI 6169 6244 6363 6556 6050 5932 NESTLEIND 16546 16499 16648 16749 16398 16249 NTPC 86 86 87 88 85 84 ONGC 76 77 78 80 75 74 POWERGRID 177 177 180 182 175 172 RELIANCE 2007 2022 2042 2076 1988 1969 SBIN 192 192 195 197 190 188 SHREECEM 21745 21700 21909 22074 21535 21326 SUNPHARMA 520 526 535 549 511 502 TATAMOTORS 112 110 117 121 105 98 TATASTEEL 372 370 379 385 364 355 TCS 2250 2262 2292 2335 2219 2188 TECHM 674 677 684 694 667 659 TITAN 1077 1072 1100 1123 1048 1020 ULTRACEMCO 4044 4076 4124 4203 3996 3948 UPL 453 461 477 501 437 421 WIPRO 282 282 284 287 279 277 ZEEL 135 136 138 141 133 131

Source: Axis Direct.

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