MARKET LENS 13736 Intraday Pic GODREJCP Resistance 14161 Intraday Pick SBILIFE 14354 Intraday Pick TCS
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Institutional Equity Research NIFTY 13968 IN FOCUS January 28, 2021 Support 13852 Stock in Focus TECHM MARKET LENS 13736 Intraday Pic GODREJCP Resistance 14161 Intraday Pick SBILIFE 14354 Intraday Pick TCS EQUITY INDICES Indices Absolute Change Percentage Change Domestic Last Trade Change 1-D 1-Mth YTD BSE Sensex 47,409.9 (937.7) -2.0% 0.1% -0.7% CNX Nifty 13,967.5 (271.4) -1.9% 0.7% -0.1% S&P CNX 500 11,546.4 (197.4) -1.7% 1.0% 0.2% SENSEX 50 14,636.5 (276.0) -1.9% 0.8% 0.0% International Last Trade Change 1-D 1-Mth YTD DJIA 30,303.2 (633.9) -2.1% -0.3% -1.0% NASDAQ 13,270.6 (355.5) -2.7% 2.9% 3.0% NIKKEI 28,275.9 (359.3) -1.3% 5.3% 3.0% HANGSENG 28,914.9 (382.7) -1.3% 9.9% 6.2% MSCI Emerging Mkts 1,371.4 (17.3) -1.3% 9.5% 6.2% ADRs / GDRs Last Trade Change 1-D 1-Mth YTD Dr. Reddy’s Lab (ADR) 65.8 (2.8) -4.1% -6.6% -7.8% STOCK IN FOCUS Tata Motors (ADR) 17.8 (0.6) -3.4% 51.0% 41.4% f TechM works with the top US and European telecom operators and Infosys (ADR) 17.5 (0.4) -2.1% 5.2% 3.1% is the key service provider of world’s first softwarized and cloud- ICICI Bank (ADR) 14.3 (0.5) -3.7% 2.4% -3.6% based network built by Rakuten in Japan. HDFC Bank (ADR) 68.8 (4.0) -5.4% -1.0% -4.7% Axis Bank (GDR) 43.2 (1.6) -3.5% 4.9% 2.0% f Robust deal wins in FY20 (2X YoY) suggests revenue and margin Reliance Ind (GDR) 52.1 (1.1) -2.1% -4.9% -4.8% recovery in FY22-FY23E. The management targets double-digit COMMODITY MARKET revenue growth in enterprise segment and high single-digit revenue Key Commodities Last Trade Change 1-D 1-Mth YTD growth in telecom segment in FY22E. Brent Crude ($/bl) 55.6 (0.3) -0.5% 9.2% 7.2% Silver ($/Oz) 25.1 (0.2) -0.7% -4.4% -5.0% f We expect TechM’s EBIT margin to expand by ~340bps over FY20- Gold ($/Oz) 1,835.0 (8.9) -0.5% -2.1% -3.3% FY23E led by higher operating leverage, improved performance of Copper LME ($/MT) 7,821.3 (186.0) -2.3% 0.6% 0.9% Aluminium LME ($/MT) 1,988.0 (37.8) -1.9% -1.9% 0.7% subsidiaries, higher off-shoring and automaton. Baltic Dry 1,659.0 (106.0) -6.0% 21.4% 21.4% f We maintain our positive view on TechM mainly owing to industry- CURRENCY RATES leading EPS CAGR driven by sharp EBIT margin rebound and strong Last Trade Change 1-D 1-Mth YTD topline growth led by up-tick in global 5G rollout and acceleration USD/INR 72.9 72.9 0.0% -0.8% -0.2% in enterprise technology demand. We recommend BUY on Tech EUR/INR 88.4 88.6 -0.3% -1.8% -1.5% Mahindra with a 2-Year Target Price of Rs1,100. RATES Last Trade Change 1-D 1-Mth YTD T-Bill - 91 D 3.4 3.4 0.3% 8.4% 11.6% Intraday Picks 10 Year G-sec Yield 5.9 5.9 -0.2% 0.4% 0.7% GODREJCP (PREVIOUS CLOSE: 774) SELL INVESTMENT ACTIVITY (RS. CR) For today’s trade, short position can be initiated in the range of Rs 778- Category BUY SELL NET Prev 782 for the target of Rs.760 with a strict stop loss of Rs.788. FII 11,236.8 12,925.0 (1,688.2) (765.3) DII 6,222.8 6,226.2 (3.4) (387.8) SBILIFE (PREVIOUS CLOSE: 882) BUY For today’s trade, long position can be initiated in the range of Rs 868- EXCHANGE TURNOVER 873 for the target of Rs.899 with a strict stop loss of Rs.857. Exchange Rs Crore BSE Equity 4,019.5 TCS (PREVIOUS CLOSE: 3261) SELL BSE Derivatives 2,71,120.3 For today’s trade, short position can be initiated in the range of Rs 3280- NSE Equity 71,081.9 3300 for the target of Rs.3200 with a strict stop loss of Rs. 3325. NSE Derivatives 46,21,298.0 1 Institutional Equity Research NIFTY 13968 IN FOCUS January 28, 2021 Support 13852 Stock in Focus TECHM MARKET LENS 13736 Intraday Pic GODREJCP Resistance 14161 Intraday Pick SBILIFE 14354 Intraday Pick TCS Technical Research MARKET SYNOPSIS f On Wednesday, NSE-NIFTY begun the session on a flat note and later remained in pressure during the day. Later the index slipped to 13,929-level and finished trade on a negative note. f Finally, NIFTY closed the session at 13,968-level, with cut of 271 points. f NSE Cash segment reported turnover of Rs71,082 crore as compared to Rs74,063 crore reported earlier. f Overall market breadth remained in favour of the bears, where 615 stocks advanced against 1313 declined stocks. f Negative trend was observed across sectoral indices during the day barring FMCG (rose by 0.3%), where Metal, Financial Service and Private Bank emerged as top losers with the decrease of 2.5%, 2.8% and 3.1%, respectively. However rest of the sectoral indices reported loss between 0.6% and 2.2%. NSE-NIFTY OUTLOOK f NSE-NIFTY extended loss post a trading holiday and lost 14,000-level. Yesterday, the index has given breakdown from its lower band of the rising channel and also, from its 20-day EMA (placed at around 14,250-level). Negative trend observed across the sectors, while overall market breadth remained bearish. Due to further decline in the index, major technical indicators remained in sell mode. This could drag the index towards 13,750-13,500-levels. In case of rebound, the index will initially face hurdle at around 14,250-level and later at around 14,500-level subsequently. f As for the day, support is placed at around 13,852 and then at 13,736 levels, while resistance is observed at 14,161 and then at 14,354 levels. 2 Institutional Equity Research NIFTY 13968 IN FOCUS January 28, 2021 Support 13852 Stock in Focus TECHM MARKET LENS 13736 Intraday Pic GODREJCP Resistance 14161 Intraday Pick SBILIFE 14354 Intraday Pick TCS Derivatives Snapshot f NIFTY50 opened lower on back of weak global cues and continued to drift further below 14000 levels for the first time in the expiry. Nifty closed down by 272 points at 13,968 levels. Among the nifty stocks 12 advanced and 38 declined during the day. f Among sectors negative momentum was across indices with the highest decline in Banks, Metals and Auto by 2% average while other sectors declined by 1% for the day. f Broader market indices remained negative with NIFTY 100, 200 and 500 to close down by 1.8% average while midcap indices and small cap indices declined by 1.5% for the day. f Nifty Jan futures end with 15 points premium at 13,982 mark while on other hand, Bank Nifty Jan futures ended with the premium of 44 points at 31,181 mark. f Nifty has closed below 14000 and we expect volatility with respect to derivatives expiry movement. It has good support near 13700 levels being the 50 day moving average. Sectoral Activity: Amongst sectoral index Banks and Metals remained in focus with negative momentum. Stock Activity: HDFC Bank and Tata Steel have witnessed long unwinding in today’s trade. 3 Institutional Equity Research NIFTY 13968 IN FOCUS January 28, 2021 Support 13852 Stock in Focus TECHM MARKET LENS 13736 Intraday Pic GODREJCP Resistance 14161 Intraday Pick SBILIFE 14354 Intraday Pick TCS Pivot Table Name LTP Support 2 Support 1 Pivot Resistance 1 Resistance 2 SENSEX 47410 46571 46991 47689 48108 48807 NIFTY 13968 13736 13852 14045 14161 14354 BANKNIFTY 30285 29458 29871 30579 30993 31700 ADANIPORTS 519 499 509 522 532 546 ASIANPAINT 2437 2370 2403 2464 2498 2559 AXISBANK 632 605 618 641 655 678 BAJAJ-AUTO 4146 4035 4091 4164 4219 4292 BAJAJFINSV 9126 8908 9017 9151 9260 9394 BAJFINANCE 4845 4733 4789 4867 4923 5002 BHARTIARTL 571 552 562 572 581 591 BPCL 381 373 377 384 387 394 BRITANNIA 3611 3562 3586 3618 3643 3674 CIPLA 843 810 826 841 858 873 COALINDIA 129 126 128 130 132 134 DIVISLAB 3483 3388 3435 3518 3565 3648 DRREDDY 4909 4712 4811 4932 5030 5151 EICHERMOT 2790 2668 2729 2831 2892 2994 GAIL 128 124 126 129 131 134 GRASIM 1062 1012 1037 1076 1100 1139 HCLTECH 956 933 944 954 965 975 HDFC 2467 2402 2435 2491 2523 2579 HDFCBANK 1410 1363 1387 1429 1452 1495 HDFCLIFE 683 662 672 684 694 706 HEROMOTOCO 3359 3237 3298 3391 3452 3545 HINDALCO 231 223 227 234 238 244 HINDUNILVR 2391 2294 2343 2384 2433 2474 ICICIBANK 522 507 515 527 535 547 INDUSINDBK 820 774 797 829 852 884 INFY 1301 1262 1282 1305 1324 1347 IOC 91 88 90 92 93 95 ITC 211 205 208 210 213 216 JSWSTEEL 376 366 371 377 382 387 KOTAKBANK 1765 1701 1733 1778 1810 1855 LT 1360 1298 1329 1361 1392 1423 M&M 770 730 750 783 804 837 MARUTI 7871 7658 7764 7927 8034 8197 NESTLEIND 17538 17235 17386 17492 17644 17749 NTPC 91 89 90 92 93 94 ONGC 90 87 88 90 91 93 POWERGRID 192 187 190 192 195 197 RELIANCE 1895 1866 1880 1903 1917 1940 SBILIFE 882 849 866 875 891 901 SBIN 276 266 271 278 283 290 SHREECEM 22820 22334 22577 22988 23231 23643 SUNPHARMA 570 551 560 573 583 595 TATAMOTORS 268 260 264 269 273 279 TATASTEEL 626 606 616 634 644 661 TCS 3261 3185 3223 3265 3303 3344 TECHM 997 961 979 992 1010 1023 TITAN 1441 1386 1413 1459 1486 1532 ULTRACEMCO 5405 5229 5317 5418 5506 5608 UPL 574 549 562 581 594 614 WIPRO 446 429 438 446 455 464 4 Institutional Equity Research NIFTY 13968 IN FOCUS January 28, 2021 Support 13852 Stock in Focus TECHM MARKET LENS 13736 Intraday Pic GODREJCP Resistance 14161 Intraday Pick SBILIFE 14354 Intraday Pick TCS Simple Moving Average Scrip Name Close Rate 20-SMA 50-SMA 100-SMA 200-SMA HIGH_52WEEK LOW_52WEEK SENSEX 47410 48707 46625 43167 39052 50184 25639 NIFTY 13968 14308 13682 12684 11486 14754 7511 BANKNIFTY 30285 31845 30663 27149 24099 32842 16116 ADANIPORTS 519 516 467 410 366 563 203 ASIANPAINT 2437 2712 2522 2296 2007 2873 1431 AXISBANK 632 657 629 553 488 761 286 BAJAJ-AUTO 4146 3603 3374 3173 2979 4237 1789 BAJAJFINSV 9126 8902 8793 7389 6498 9950 3985 BAJFINANCE 4845 5049 4939 4195 3481 5373 1783 BHARTIARTL 571 555 517 484 517 612 362 BPCL 381 399 393 382 381 510 252 BRITANNIA 3611 3594 3612 3632 3556 4010 2100 CIPLA 843 828 792 777 717 865 354 COALINDIA 129 139 135 127 131 195 110 DIVISLAB 3483 3734 3668 3416 2961 3915 1626 DRREDDY 4909 5211 5061