Market Radar Tuesday • August 11 • 2020

CHENNAI

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QUICKLY With Cipla turning healthy post Q1 IEX now part of Parag Parikh Long Term Equity Fund results, analysts increase target price OUR BUREAU net & technology and banks Chennai, August 10 make up the top three sectors, ac Brokerages give thumbs to pharma major’s Indian Energy Exchange has counting for 42.56 per cent of the entered the portfolio of Parag portfolio. The top five Indian costsaving efforts, robust operating margin Parikh Long Term Equity Fund, companies in the portfolio were the latter said in a release. Its top Persistent Systems, ITC, HDFC OUR BUREAU the trade Gx business in India and three holdings are Amazon (8.71 Bank, Bajaj Holding & MphasiS, Chennai, August 10 Albuterol rampup in the US will per cent), Alphabet (7.52 per cent) while Amazon, Alphabet, Face Share prices of Cipla gained almost keep earnings momentum strong and Persistent Systems (6.77 per book, Suzuki Motor and Mi Record $5.1-b buyback by Buffett 12 per cent in intraday deal on in the medium term. Cipla also cent). crosoft Corporation topped the Monday, after the pharma major guided that part of reduced opex IEX now accounts for 0.66 per list of overseas stocks. August 10 posted strong quarterly results. may continue even postCovid19, cent of its assets. IEX is the first As of July 31, 2020, 66.18 per Berkshire spent a record $5.1 billion buying After hitting a fresh 52week high of leading to better margins. “We up stance on the stock with a base case Securities, which increased the tar and largest energy exchange in cent was invested in Indian equit back its own stock in the second quarter, and ₹814.45 in intraday deal, the stock grade FY21/22/23 EPS by 10 per target price of ₹847. The foreign get price to ₹805 from ₹655 earlier. India providing a nationwide, ies and 27.19 per cent in foreign may have kept that higher pace going in July. closed with a gain of 9.20 per cent cent/9 per cent/9 per cent and re brokerage has revised its bullcase According to ICICI Securities, automated trading platform for equities. The residual 6.63 per The billionaire investor sought to seize on a at ₹795.65 on the BSE. tain Buy with a revised TP of ₹800 target price to ₹943 a share and a acrosstheboard transformation physical delivery of electricity, re cent is parked in TREPS and fixed bigger discount to the S&P 500 during a Cipla reported a 26.528 per cent (from earlier ₹630),” it said. bearcase scenario price at ₹573. from a tenderised model to a newable energy certificates and deposit receipts, among others. quarter when the conglomerates operating yoy growth in its Q1 FY21 consolid Morgan Stanley expects better "With strong traction in the US private model in exports market energy saving certificates. As of end of July 31, assets un businesses held up better than expected. ated profit at ₹566.04 crore, thanks growth visibility through monet (ramp up in albuterol, niche and rapid consumerisation of im HDFC Bank has slipped out der management stood at Buffett said in early May that he was keeping to strong performance across its isation of complex generics such as launches), good growth in India portant TGx and Rx in India bode from the top three positions of ₹4,014.26 crore. The scheme (on a cash high to be prepared for any direction the geographies. Revenue from opera albuterol. Strong balance sheet (Rx business outperformed IPM well. It revised the target price to the scheme. At June end, HDFC lumpsum investment basis) has pandemic might turn and wasn’t overly tions grew 9 per cent to ₹4,346.2 with zero net debt and continuing growth in the past four quarters, ₹900 from ₹670 earlier. Bank had accounted for 6.93 per produced a return of 18.61 per attracted to buybacks. But as he searched for crore. free cash flow generation; and im benefits of oneIndia strategy, However, Motilal Oswal Finan cent of the scheme. cent in the oneyear period undervalued assets to spend billions on, he Most analysts gave thumbs to proving industry dynamics, espe Covid portfolio) and reduction in cial has maintained its neutral The top 10 equity holdings of ended July 31, 2020; for three gravitated to his own firms shares. Buffett the positive commentary from the cially in the US generics market are costs (good part of cost savings are stance on the stock with a target amount to 60.85 per cent of the years and five years, it gave out wasn’t as bullish on broader equities as the management on costs savings and some of the key factors that make likely to sustain owing to digital price of ₹790, as it sees the valu portfolio. These include four compounded annualised re S&P 500 rallied 20 per cent. BLOOMBERG robust operating margin. Emkay the stock extremely attractive, it initiatives), margins are set to ation level providing limited scope overseas listings, the fund said turns of 11.29 per cent and 11.42 Global said strong momentum in said. It retained its overweight structurally improve," said HDFC for returns. and added that software, inter per cent, respectively. ‘Initial probe on in 63 moons case’ Mumbai, August 10 The Central Bureau of Investigation told the SEBI allows MF Bombay High Court on Monday that it was ICICI Bank launches QIP with trustees to appoint Defence stocks in limelight; conducting preliminary enquiry into the complaint filed by 63 moons technologies officer to assist them zoom up to 9 per cent against former Union Finance Minister P floor price of ₹351.36 per share OUR BUREAU Chidambaram and two bureaucrats alleging Mumbai, August 10 PRESS TRUST OF INDIA Geojit Financial Services. abuse of official powers. CBI advocate Hiten SEBI has allowed trustees of mu New Delhi, August 10 In a mega push to boost do Venegavkar told a division bench that since the Board earlier gave private sector lender is under tual funds to appoint a dedicated Defence stocks on Monday mestic defence production, allegations pertain to 20122013, the agency stood to have lined up in officer to assist them in carrying jumped up to 9 per cent after the Defence Minister Rajnath has to recover relevant documents. The court approval to raise vestors for the QIP. out their fiduciary duty. The officer the announcement that India Singh on Sunday announced was hearing a petition filed by the Jignesh up to ₹15,000 cr The Bank’s board had on July should have a professional quali will stop the import of 101 that India will stop the import Shahpromoted company, questioning the 8 approved raising up to fication and minimum five years weapons and military plat of 101 weapons and military ‘delayed’ action by the CBI them. PTI OUR BUREAU ₹15,000 crore by way of issu of experience in finance and finan forms like transport aircraft, platforms like transport air Mumbai, August 10 ance of securities, through one cial services related field, said SEBI light combat helicopters un craft, light combat heli Private sector lender ICICI Bank or more permissible modes in in a circular. The circular will be ap der a staggered timeline till copters, conventional submar BSE StAR MF opens for corporates on Monday launched its fund cluding but not limited to a plicable from October 1. 2024, in a mega push to boost ines, cruise missiles and sonar New Delhi, August 10 raising exercise through a private placement, preferential The officer will be an employee domestic production. systems under a staggered BSE on Monday said its mutual fund qualified institutional place issue, qualified institutions of the Trustees and directly report Shares of Bharat Electronics timeline till 2024. distribution platform StAR MF has launched a ment. placement, followon public of to them. The scope of work for the zoomed 9.17 per cent, Hindus Making the announcement direct investment portal for corporates, which The Bank has set a floor price fering or a combination. Housing Development Finance officer should be specified by tan Aeronautics Ltd 8.74 per on Twitter, the Defence Minis will simplify the investment process. The portal of ₹351.36 per equity share. Its Corporation and Axis Bank also Trustees from timetotime to sup cent, Astra Microwave ter estimated that the do – StAR MF Corp Direct – will simplify and board will be meeting on Au Funds via stake sale launched QIPs to raise capital. port the role and responsibilities . Products 5.48 per cent, Bharat mestic defence industry provide endtoend valuebased services to the gust 14 to decide QIP issue To strengthen its balance sheet, ICICI Bank’s total capital ad Further, Trustees will have stand Dynamics 4.16 per cent, BEML would receive contracts worth asset management companies, distributors, price. ICICI Bank had recently also equacy ratio stood at 16.32 per ing arrangements with independ jumped 3.95 per cent and almost ₹4 lakh crore within investors and MF industry participants, BSE said In a regulatory filing, the sold four per cent sharehold cent and Tier1 capital ad ent firms for special purpose audit Apollo Micro Systems 3.63 per the next five to seven years as in a statement. The portal is currently live for bank said at the meeting held ing in ICICI Lombard General equacy ratio was 14.93 per cent and seek legal advice in case of any cent on the BSE. a result of the decision to corporates. It will soon will be available for on August 10, the issuance com Insurance and 1.5 per cent on a standalone basis as on requirement, it said. “The Government’s action prune the import list of de other nonindividuals like HUF, partnership mittee of the board, interalia, shareholding in ICICI Pruden June 30, 2020. The expenditure incurred by to boost domestic defence fence platforms and firms, societies among others. Earlier this year, passed resolutions authorising tial Life Insurance. The transac Its scrip closed 1.61 per cent the Trustees will be charged under productions helped gains in equipment. SEBI allowed exchanges to process MF the opening of the issue today. tions helped raise ₹3,036 crore. up at ₹ 363.60 apiece on BSE on “fees and expenses of trustees”, defence stocks,” said Vinod India is one of the largest investments directly from investors. PTI The country’s second largest Recently, mortgage lender Monday. said SEBI. Nair, Head of Research at importers of arms globally.

BROKER’S CALL TODAY'S PICK COMMODITY CALL Triveni Engg to buy back at ₹105/share OUR BUREAU the intention of the promoters and promoter CENTRUM BROKING Hindalco Industries (₹178.6): Chennai, August 10 group of the company to participate in the GSPL (Buy) MCXLead set to The board of Triveni Engineering & Industries on buyback. Target: ₹260 AKHIL NALLAMUTHU index is currently showing a Monday approved ₹64.99crore buyback of fully The board has fixed August 28 as the record CMP: ₹211.25 BL Research Bureau fresh uptick and it remains extend uptrend paidup equity shares. The company plans to buy date for determining the eligible shareholders to Gujarat State Petronet (GSPL) reported The stock of Hindalco Indus above the midpoint level of 50. back 61.90 lakh shares at ₹105 a share. The offer participate in the buyback. Shares of Triveni En volumes of 33.3 mmscmd beat our tries registered fresh five The moving average conver would be on a tender offer route. The board noted gineering closed at ₹71 on the BSE. expectation of 32.5 mmscmd. However, months high of ₹179 yesterday gence divergence indicator in they declined 13 per cent (yoy) and 10 per and it remains above the sup the daily chart, which was cent (qoq), impacted due to Covid19 port of ₹175 and the nearterm pointing downwards till last lockdown. outlook is positive. The stock week, is now turning its tra Our volume estimates factor in 36.3/37.3 which erased over 60 per cent jectory upwards; it remains in mmscmd for FY21/22E, even after building as it marked a low of ₹84.9 in the positive territory. As the in loss of volumes from RIL at 34 late March from ₹221.2 – its price action too supports the mmscmd, which is likely to be offset by 2020 peak, was quick to re bullish bias, the stock is likely expectation of higher offtake from CGD cover. Since registering its low, to scale new heights from cur and other segments. it has been moving up gradu rent levels. Hence, traders can While offtake from CGD/fertiliser/refining/ ally as it made higher highs buy the stock with stoploss at petchem/others segments remained and higher lows. Notably, it has ₹170. It can rally to ₹190 and weak, offtake from power grew sharply been repeatedly bouncingoff ₹200 in the nearterm. offsetting this weakness to some extent. from the 21day moving aver (Note: The recommenda Resultant, reported EBITDA and PAT of age, indicating good bullish tions are based on technical ₹350 crore and ₹200 crore respectively, momentum. analysis. There is a risk of loss beat our expectation of ₹300 crore and The daily relative strength in trading.) ₹160 crore. AKHIL NALLAMUTHU Gross transmission tariffs of ₹1.5/scm grew BL Research Bureau 5per cent yoy, adjusted for transmission DAY TRADING GUIDE MCXLead (₹152) expenses, net tariffs translate to ₹1.3/scm The price of lead has been in an uptrend since • (flat yoy), was in line. With a recovery in 11294 Nifty 50 Futures the beginning of June. Consequently, the August S1 S2 R1 R2 COMMENT volumes expected over H2FY21 and strong futures contract of lead closed in the green for tariffs, we remain positive on earnings 11250 11200 11340 11400 Initiate fresh long positions with the past three weeks and pierced above the im prospects over FY2022, with the value stoploss at 11,280 if the contract portant level of ₹150 last week. Even after a price breaks out of the resistance at boost from subsidiary Gujarat Gas an correction on Friday, the contract closed above important support to overall value. 11,340 ₹1050 • HDFC Bank ₹150 and the bullish bias remains as the price S1 S2 R1 R2 COMMENT lies above the 21day moving average (DMA). IDBI CAPITAL 1040 1025 1060 1075 Consider initiating fresh long Substantiating the positive outlook, the daily Indian Hotels (Accumulate) positions with a stiff stoploss only if relative strength index has been rising along Target: ₹88 the stock climbs above ₹1,060 with the contract and it stays in the bullish re CMP: ₹80.95 levels gion. The moving average convergence diver • Indian Hotels Company Ltd.’s (IHCL) ₹951 Infosys gence indicator in the daily chart is in an upward Q1FY21 result was below our and S1 S2 R1 R2 COMMENT trajectory and lies in the positive territory. Also, consensus estimates on all parameters. 940 915 970 985 Though major trend is upward, the the daily average true range is increasing as the Impact of Covid19 on hospitality is stock is now consolidating. Buy price advances – indicating considerable strikingly visible as net sales sharply with tight stop if it reverses higher momentum. from ₹940 deteriorated for organised players, ₹198 • ITC Notably, the price area between ₹148 and ₹150 including IHCL. S1 S2 R1 R2 COMMENT can be a support band. The 23.6 per cent Fibon Net sales declined by 85.9 per cent yoy to 197 195 200 203 Fresh long positions are acci retracement level coincide at ₹150, making ₹143.60 crore, while EBITDA came in at recommended with stiff stoploss it an important support. So, until the contract negative ₹266 crore, down by 253.4 per only if the stock gains above ₹200 stays above these levels, the bulls are expected to cent yoy . The company reported net loss levels be in charge. Considering the above factors, the of ₹312.60 crore compared to net profit of ₹79 • ONGC contract is likely to rally further and cross above ₹17.60 crore in Q1FY20. S1 S2 R1 R2 COMMENT ₹155.4 – its prior high. Above that level, it can rise The company’s majority of inventory was 78 76 80 83 Consider initiating fresh long to ₹160. On the other hand, if the contract weak closed for approximately 45 days in Q1 positions with a fixed stoploss only ens and slips below the support band i.e. ₹148 FY21, while operational inventory was if the stock decisively breaks ₹80 ₹150, it might moderate towards the support at used for quarantine facilities and medical levels ₹143. Subsequent support is at ₹138. staff. Extension of lockdown and ₹2119 • Reliance Ind. S1 S2 R1 R2 COMMENT On the global front, the threemonth rolling interstate travel ban dented leisure forward contract of lead in London Metal Ex segment during the quarter. 2100 2060 2160 2190 Fresh long positions are change (LME) has been rallying since midMay. Though exit occupancy for June 2020 recommended with tight stoploss Last week, it broke out of its previous high and indicates early signs of revival, we believe only if the stock of RIL moves $1,900 and registered a fresh sevenmonth high it would take a while for a meaningful beyond ₹2,160 ₹193 • SBI $1,937. The price action is bullish and the con improvement in occupancy/ADR. S1 S2 R1 R2 COMMENT We have cut our net sales/EBITDA tract is likely to appreciate further. 190 186 196 200 The stock is trading in narrow estimates by 3.3 per cent and 26.2 per cent range and so wait for the breach of for FY21 and 2.7 per cent and 3.6 per cent Trade strategy: either ₹190 or ₹196 to initiate The trend of MCXLead continues to be bullish, respectively for FY22. fresh trades We downgrade the stock to Accumulate ₹2282 • TCS which is substantiated by the global trend of the from buy. S1 S2 R1 R2 COMMENT metal. Against this backdrop, traders can initiate 2255 2225 2330 2350 Short the stock of TCS with stop fresh long positions on declines with stoploss at loss at ₹2330 if it breaks below the ₹147. BusinessLine is not responsible for the recommendations price level of ₹2,280 sourced from third party brokerages. Reports may be sent Note: The recommendations are based on technical to: [email protected] S1, S2: Support 1 & 2; R1, R2: Resistance 1 & 2. analysis. There is a risk of loss in trading.

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