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Your best guide to financial markets Weekly Research Reports GROWING TOGETHER www.hpmgshares.com HPMG Wealth (weekly) Top Sectors for the Week CONTENTS Title Page No. HPMG Wealth (Weekly) 03-04 Top Sectors for the Week 05-14 Weekly Pivot Table (Equities) 15 Weekly Pivot Table (Commodities) 16 Disclaimer 17 HPMG WEALTH WEEKLY Let Your Money Grow Confidently ! Stock ideas backed by strong research HPMG Wealth Weekly… Getting rich is easy with help of HPMG Wealth Weekly. This weekly research report helps you to identify the best five momentum stocks for the week. ‘Pick of the week’ is best among the mentioned five and is always with detailed ‘Technical & Macro outlook’. The trick to “Get Rich quickly and to Stay Rich forever” is a combination of alertness and awareness. With the right information on stocks from HPMG Wealth Weekly, your money is likely to grow confidently and living the “rich” life, is achievable. GROWING TOGETHER www.hpmgshares.com HPMG WEALTH WEEKLY Monday Let Your Money Grow Confidently ! 21st December, 2020 STOCKS CMP BIAS TRADING/ INVESTMENT STRATEGY Avanti Feeds is the leading manufacturer of shrimp feeds and Shrimp Processor with 45% market share in domestic shrimp feed market. The firm was incorporated in the year 1993 and is now having a market cap of Rs AVANTI FEEDS 550 Positive 7417 Crores. Technically, downside seen well supported at 453-469 zone. Look to buy at CMP, and on dips between 491-495 zone, targeting 587.50/601 and then aggressive targets at 621 mark. Stop below 447. Holding Period: 2-3 Months. Infosys provides IT consulting and software services, including ebusiness, program management and supply chain solutions. The firms’ services include application development, product co-development, and system implementation and system engineering. Infosys targets businesses specializing in the insurance, banking, telecommunication and INFOSYS 1190 Positive manufacturing sectors. INFY’s solid performance across verticals continues to be the positive trigger on backdrop of revised revenue guidance for the year to 2-3% on cc basis, and also raised its operating profits margins guidance to 23- 24%. Free cash flows grew 70% YoY. Simply buy at CMP and on dips between 1121-1131 zone, targeting 1237 and then aggressive targets at psychological 1300 mark. Stop below 1109. Holding Period: 2-3 Months. Lupin is a multinational pharmaceutical company based in Mumbai and was incorporated in the year 1983, now having a market cap of Rs 44080 Crore. Lupin's business ranges from branded and generic formulations, APIs, advanced drug delivery systems to biotechnology. The key positive catalyst is that the firm is amongst the highest LUPIN 975 Positive spenders on R&D among the generic companies and the monetization of these efforts has just begun for the company with the recent approvals of Levothyroxine, Enbrel biosimilar and gProair inhaler. Establish long positions at CMP and on dips between 930-941 zone, targeting 1029 and then aggressive targets at 1123 mark. Stop below 897. Nucleus Software Exports is one of the leading providers of lending and transaction banking solutions to the global financial services industry was incorporated in the year 1989 and now commands a market cap of Rs 1685 Crores. The key positive catalyst is that the firms’ clients are getting more aggressive on digital spends to reduce cost. Also helping NUCLEUS 597.40 Positive growth is a range of powerful new solutions with FinnOne Neo 5 digital lending platform, myLoan, a new AI powered SOFTWARE EXPORTS conversational chatbot for loan self-service, and introduced Sales Assist to provide quick digital loan sourcing at retail stores, auto dealerships and lifestyle stores. Simply buy at CMP, targeting 687.50/755 and then aggressive targets at 821 mark. Stop below 469 Holding Period: 2-3 Months. Sonata Software was incorporated in the year 1994 and now having a market cap of Rs 3872 Crore. The Company is primarily engaged in the business of providing Information Technology Services and Solutions to its customers in the United States of America Europe Middle East and India. We suspect, higher offshoring will benefit IT service margins SONATA SOFTWARE 368 Positive amidst improvement in contribution from top client and traction in ISV vertical, essential retail, utility and commodity service. Establish buy positions at CMP and on dips between 325-335 zone, targeting 389/401 and then aggressive targets at 421 mark. Stop below 293. Holding Period: 2-3 Months. Analyst’s Pick: LUPIN (CMP 975). Target: 1027.50. Lupin is a multinational pharmaceutical company based in Mumbai which was incorporated in the year 1983 and now having a market cap of Rs 44080 Crore. Lupin's business ranges from branded and generic formulations, APIs, advanced drug delivery systems to biotechnology. The key positive catalyst is that the firm is amongst the highest spenders on R&D amongst the generic companies and most importantly, the monetization of these efforts has just begun for the company with the recent approvals of Levothyroxine, Enbrel biosimilar and gProair inhaler. Key catalysts with long-term positives are extending US product pipeline, drug shortage opportunities in the US and a high share of branded generics on backdrop of market share gains in gProAir in the US, gEnbrel in Europe and gFostair EU approval (expected in Q4FY21). Lupin has 8-10 complex injections in pipeline, which are expected to be filed in FY22E. LPC filed ANDA on Spiriva (Tiotropium bromide) and LPC has Firstto-File status for the same expected to launch in June-CY22 due to litigation issues. Lupin also expects many more complex approvals to come through, prominent amongst them are gDulera inhaler, gFlovent and gSpiriva inhaler. Technically, the stock price of Lupin has sliced above the 200-days moving average (DMA) with the recent sequence of higher high intact on daily charts. The sentiment remains bullish with 50-DMA and the 100-DMA continues with its positive crossover with 200-DMA. The 200 days Exponential Moving Average (EMA) of the stock on the daily chart is currently at 901 levels. The level of Rs 901-911 zone will act as a strong support zone and any corrective declines to these levels will be a screaming buy, hence should be used as an opportunity to initiate aggressive long positions. Add to that a bullish divergence and a rising stochastic signal (on weekly charts) with recent increase in volumes signaling a larger rebound. Establish long positions at CMP and on dips between 930-941 zone, targeting 1029 and then aggressive targets at 1123 mark. Stop below 897. GROWING TOGETHER www.hpmgshares.com TTopop SectorsSectors forfor thethe WWeekeek RelativeRelative StrengthStrength PPerformanceerformance withwith HPMGHPMG TTopop SectorsSectors Top Sectors for the Week is a Technical and Macro report containing everything you need to have…a clear, precise and detailed view on the five top momentum sectors... listed in BSE. This detailed multi-analyzed Macro- Technical report is a smart way to enter or exit an outperforming or underperforming sector using the relative strength function. Top Sectors for the Week reports have an unbeatable track record...You can look out for our previous reports at our website www.hpmgshares.com GROWING TOGETHER www.hpmgshares.com Monday Top Sectors for the Week 21st December, 2020 Sector Analysis: Relative Strength Performance Sectors Relative to Sensex... Outperforming stocks Underperforming stocks BSE Auto Index NEUTRAL ESCORTS APOLLO TYRES BSE Banks Index OUTPERFORM ICICI BANK RBL BANK BSE IT Index OUTPERFORM INFY, HCL TECH, MINDTREE TECH MAHINDRA BSE Healthcare Index OUTPERFORM CADILA HEALTHCARE, GLENMARK BIOCON, LUPIN BSE Metals Index NEUTRAL HINDALCO COAL INDIA GROWING TOGETHER www.hpmgshares.com Top Sectors for the Week From HPMG Research Desk… The Week That Was: FIIs’ buying lifts the benchmarks to new all-time highs! Sensex: 46,961. Nifty: 13,761. It was yet again a super-duper week for Indian indices as Sensex & Nifty scaled new all-time highs at 47026 & 13773. On a weekly basis, Nifty closed 1.8% higher while Sensex closed 1.9% higher. The key positive catalysts: 1. Moderna's coronavirus vaccine was determined to be highly effective at the Food and Drug Administration. A spate of approvals for vaccines. 2. India is on a recovery path with declining COVID-19 infections. 3. Western world is seeing a strong second wave of coronavirus infections. 4. Reassurances from the Federal Reserve: The Fed has vowed once again to use all its tools to support the economy. The policy-setting Federal Open Market Committee (FOMC) signaled it plans to keep a key U.S. short-term interest rate near zero for at least the next three years, while indicating it will continue buying bonds at the current $120 billion a month pace until inflation runs above its 2% target. Powell said he expects the economy to rebound at a healthy pace in the second half of 2021 as vaccines against the coronavirus are widely distributed. Major credit for last week’s rally goes to FIIs’ buying yet again. Traders are seen simply riding this bullish optimistic wave as India is seen as a strong destination as is reflected in the FIIs inflow which simply seems to be unstoppable. So far in December, FIIs net bought Rs. 38,734.10 crores worth of Indian equities —— That’s on backdrop of the highest inflow in November 2020 where FIIs net bought Rs. 65,317 crores. Bottom-line: Nifty has ended above the 13700 milestone for the first time and Sensex touched the psychological 47000 mark. Simply put, these symbolic milestones reflect optimism for the future and most importantly, show the economy’s resilience despite the Covid-19 plague. The bulls’ have shown remarkable optimism at Dalal Street that suggests that COVID 19 is now a non-issue.