Market Radar 6-Aug-20
Nifty Outlook :
RBI event calls for preparing three possible reactions: Volatility, directional moves, or flat trades. We expect lower chances of volatility today, and place equal chance for directional moves or flat trades. Directional moves may aim for 10740 or 11600, but we are inclined to bet on Nifty remaining within a 50 point range from yesterday’s close.
Traders' corner Stocks Actionable ideas Target Stoploss Notes S2 S1 PV R1 R2
HEG Buy at open or on dips to 766 820 749 Breaks above signal line. 740 762 779 800.0 817.2
GUJALKALI Buy at open or on dips to 327 343 319 MACD above signal line. 306 320 329 343 352
OBEROIRLTY Buy at open or on dips to 350 370 344 MACD exhaustion. 347 351 355 359 363
ENGINERSIN Buy at open or on dips to 65.5 72 62 MACD reversal. 64.6 65.6 66.5 67.5 68.4
Note: The recommendations are valid for 5 working days.
Headlines News
Asian markets are trading mixed as IEX IN TALKS TO SELL STAKE IN MAX VENTURES OFFLOAD HDFC LAUNCHES 14000CR QIP uncertainty continued over the tensions GAS UNIT SHARES IN MFSL between the U.S. and China. Korean markets led gainers supported by shares of Hyundai Motors. Indian Energy Exchange Ltd. is in talks Promoter entity Max Ventures Investment India’s largest private sector mortgage with strategic investors to sell a minority Holdings on August 5 has offloaded 2.26 financier HDFC Ltd on August 5 launched stake in its fledgling gas unit. The largest percent equity stake in MFSL via open a mega qualified institutional placement U.S. markets closed higher for the fourth electricity trading platform in India may market transactions. It sold 61 lakh (QIP) to raise Rs 14,000 crore as it looks day consecutively as investors focused sell as much as 49% in the venture in a shares at Rs 535.18 per share, the bulk to strengthen its balance sheet and scout on corporate earnings and on hopes of series of deals, Rajiv Srivastava, chief deals data available on the BSE showed. for M&A opportunities in the COVID 19 fresh cornavirus relief package. executive officer of IEX said in an era. interview. The first accord may be signed in three months, he said. State run gas supplier GAIL India Ltd. in June said itwas European markets closed higher as considering buying a stake. investors took cues from corporate earnings but gains were capped as economic data were weaker than expectation.
Oil price jumped to five month high T NEW ACQUISITION IN ED-TECH ADANI GAS Q1 DLF Q1 after witnessing a sharp fall in US crude INDUSTRY inventories but saw higher level selling as as coronavirus cases casted shadow on demand recovery. City gas distributor Adani Gas Ltd has Realty major DLF Ltd on Wednesday Byju's, India’s largest online learning posted a 42% drop in its net profit for the reported a consolidated net loss firm, on August 5 said it has acquired quarter ended April June 2021. Net profit of 71.52 crore for the first quarter WhiteHat Jr., a startup focussing on Gold price continued its upside after it came in at 46 crore during the quarter, ended June 30, 2020 as against a net online coding classes for kids, continuing closed above $2000 the previous day on against 79 crore a year back. Revenue profit of 413.94 crore for the same the dealmaking frenzy in the ed tech the back of weak dollar and rising from operations also dropped 57% to 207 quarter last fiscal. space. The deal gives Byju's an entry into coronavirus cases droves investors to the crore against 479 crore in the a promising and early segment in Indian safe haven asset. corresponding period last fiscal. Ebitda education. While it did not specify the (earnings before interest, tax, deal value, a person in the know said it is depreciation and amortisation) was down a $300 million all cash deal. 41% at 86 crore. Economic data : RBI MPC meeting outcome, US Jobless claim data today. AGM: Creditacc, Bataindia, BASF Q4Earnings :Canfinhome, Lupin,Hindpetro, Gspl Pivots Asset LTP %Chg S2 S1 Pivot R1 R2 Pivot position NIFTY 11101.65 0.06 10969 11035 11130 11197 11292 S1 PV BANKNIFTY 21509.95 0.09 21144 21327 21632 21815 22120 S1 PV ADANIPORTS 327 3.83 308 317 323 333 338 PV R1 ASIANPAINT 1720 0.35 1695 1708 1725 1737 1754 S1 PV AXISBANK 434.2 1.18 424 429 438 443 452 S1 PV
BAJAJ AUTO 3016.05 1.55 2944 2980 3008 3044 3071 PV R1
BAJAJFINSV 6245 1.35 6103 6259 6331 6416 S1 PV
BAJFINANCE 3270 1.06 3201 3235 3283 3317 3365 S1 PV
BHARTIARTL 559.75 1.96 542 551 556 565 570 PV R1 BPCL 411.1 0.62 401 406 410 416 420 PV R1
CIPLA 723.5 1.35 709 716 723 730 737 PV R1
COALINDIA 128.7 0.04 127 128 129 130 131 S1 PV
DRREDDY 4609.3 0.55 4535 4572 4619 4656 4703 S1 PV
EICHERMOT 22029 4.82 20711 21370 21819 22478 22927 PV R1
GAIL 93.5 0.38 92 93 94 95 96 S1 PV
GRASIM 633.2 1.37 611 622 633 644 655 PV R1
HCLTECH 689.5 0.45 670 680 691 701 712 S1 PV
HDFC 1780 0.06 1741 1760 1786 1806 1831 S1 PV
HDFCBANK 1030.95 1.03 1000 1015 1036 1051 1071 S1 PV
HEROMOTOCO 2717 0.40 2642 2679 2710 2747 2778 PV R1
HINDALCO 177.1 9.09 159 168 173 182 187 PV R1
HINDPETRO 214.5 0.23 207 211 216 219 224 S1 PV
HINDUNILVR 2199.5 0.08 2168 2184 2197 2213 2226 PV R1
IBULHSGFIN 190.25 2.98 182 186 190 195 199 PV
ICICIBANK 353.05 0.58 345 349 355 358 364 S1 PV
INDUSINDBK 493.95 0.27 481 487 497 503 513 S1 PV
INFRATEL 191.3 0.03 187 189 191 193 196 S1 PV
INFY 944.5 0.56 925 935 948 958 971 S1 PV
IOC 86.75 0.23 85 86 87 88 89 S1 PV
ITC 192.8 0.44 190 191 193 194 196 S1 PV
JSWSTEEL 234.75 2.92 225 230 233 238 241 PV R1
KOTAKBANK 1338.15 1.07 1307 1322 1338 1353 1369 PV R1
LT 924 0.03 913 918 926 932 940 S1 PV
M&M 619 2.72 597 608 614 625 631 PV R1
MARUTI 6517 2.49 6281 6399 6498 6616 6716 PV R1
NTPC 86.2 0.70 85 86 86 87 87 PV R1
ONGC 77.2 1.45 76 77 77 78 78 PV R1
POWERGRID 176.5 0.98 174 175 177 178 179 S1 PV
RELIANCE 2132.1 0.86 2071 2102 2149 2179 2227 S1 PV
SBIN 191.8 0.10 187 190 193 195 199 S1 PV
SUNPHARMA 529.75 0.15 521 525 532 536 543 S1 PV
TATAMOTORS 115.55 3.68 109 112 115 118 121 PV R1
TATASTEEL 49 3.05 47 48 49 50 51 PV R1
TCS 2259 0.41 2224 2241 2271 2288 2318 S1 PV
TECHM 649.45 0.49 632 641 651 660 670 S1 PV
TITAN 1105 2.77 1063 1084 1099 1120 1136 PV R1
ULTRACEMCO 4035.05 0.77 3958 3997 4053 4092 4148 S1 PV
UPL 455 1.45 443 449 458 464 474 S1 PV
VEDL 122.05 2.52 117 120 122 124 126 PV R1
WIPRO 278.1 1.05 273 276 280 283 287 S1 PV
YESBANK 12.85 4.90 12 12 13 13 13 PV R1 Economic Calendar
1 Aug, Saturday 2 Aug, Sunday 3 Aug, Monday 4 Aug, Tuesday 5 Aug, Wednesday
India individual vehicle sales - July Japan GDP Q1 Final US total vehicle sales Jul India Services & composite PMI Jul India Manufacturing PMI Jul US factory orders Jun China/Japan/EA/UK/ US services China/EA/UK/US manufacturing US API crude oil stock change PMI Jul PMI Jul 31/Jul UK new car sales Jul ISM manufacturing PMI Jul RBI interest rate decision (Aug 04- US ADP employment change Jul 06) US trade balance Jun Bank of Japan accounts (Jul 31) US EIA crude oil stock change 31/Jul
6 Aug, Thursday 7 Aug, Friday 8 Aug, Saturday 9 Aug, Sunday 10 Aug, Monday
US weekly initial & continuing China trade balance Jun China inflation Jul jobless claims China FX reserves Jul UK trade balance Jun/GDP Q2/ IIP BoE interest rate decision RBI weekly FX reserves Jun US Nonfarm Payrolls Jul US JOLTs job openings Jun US Baker Hughes oil rig count Japan Market Holiday - Mountain 07/Aug Day
11 Aug, Tuesday 12 Aug, Wednesday 13 Aug, Thursday 14 Aug, Friday 15 Aug, Saturday
China NBS press conference Japan current account Jun EA IIP Jun US initial & continuing jobless China IIP/ retail sales/ UK employment change May India CPI Jul claims unemployment rate Jul India IIP June US inflation rate Jul India WPI / trade balance Jul US PPI Jul US EIA crude oil stock change 07/Aug RBI FX reserves Aug/07 US API crude oil stock change US monthly budget statement Jul US retail sales Jul 07/Aug China vehicle sales Jul EA GDP growth rate Q2 OPEC monthly report US Baker Hughes oil rig count 14/Aug
16 Aug, Sunday 17 Aug, Monday 18 Aug, Tuesday 19 Aug, Wednesday 20 Aug, Thursday
China interest rate decision Japan GDP Q2 US housing starts Jul Japan trade balance Jul UK retail sales Jul OPEC meeting UK inflation Jul US initial & continuing jobless US API crude oil stock change US EIA crude oil stock change claims 14/Aug 14/Aug FOMC minutes (Jul meeting)
21 Aug, Friday 22 Aug, Saturday 23 Aug, Sunday 24 Aug, Monday 25 Aug, Tuesday
Japan inflation rate Jul US new home sales Jul Japan/EA/UK/US manufacturing US consumer confidence Aug & services PMI flash Aug US API crude oil stock change RBI FX reserves Aug/14 21/Aug US existing home sales Jul US Baker hughes rig count 21/Aug
Aug, Saturday 26 Aug, Wednesday 27 Aug, Thursday 28 Aug, Friday 29 30 Aug, Sunday
US durable goods orders Jul US GDP Q2 est UK Gfk consumer confidence Aug Japan retail sales Jul US EIA crude oil stock change US initial & continuing jobless US Baker hughes oil rig count Aug/21 claims 28/Aug US pending home sales Jul Product basket : Technical and Derivatives Research
EQUITY
PRODUCT HOLDING PERIOD CHARACTERISTICS FREQUENCY
The aim is to capture a minimum of 1% move. All those recommendations that do not hit the INTRADAY Same day 10 15 per day target or stop loss are advised to be closed out at 3 10 pm. At times, some of the price moves do not mature fully during the day. Such set ups are best CASH BTST 5 days played by entering in the second half of the day with expectations of a momentum surge on the 1 3 per day next day. Uses classical technical studies to deliver moves that takes a while to mature. However, they SHORT TERM 30 days are less volatile than BTST or intraday products, are directional and have the potential to be 4 8 per month multibaggers.
DERIVATIVE
PRODUCT HOLDING PERIOD CHARACTERISTICS FREQUENCY
Naked options are best ploy to make use of sudden price spurts, but also brilliant in making use OPTIONS 1 5 days 2 3 per day of time decay, especially on approach of expiry. OPTION Multi legged option strategies are best suited for volatile and uncertain conditions especially OPTION STRATEGY Till expiry ahead of events, earnings, etc. They are also ideal for generating small, but consistent incomes 4 8 per month without worrying about direction.
Suited for those with higher risk appetite, who are looking to gain more from the underlying’s FUTURE 1 5 days 1 2 per day (stock/index) move. FUTURE
BTST/STBT 5 days Characteristics are similar to BTST product in Cash 1 per day
All our technical & derivative research recommendations can be seen and traded in SELFIE, our trading platform. You may benefit from these research products even further, by utilising leverage facilities like MTF, BTST, Intraday etc. To know more about the same, kindly contact your nearest Geojit branch.
Technical & Derivative Research
Anand James, CFTe Chief Market Stategist
Equity desk Tency N. Kurien Analyst Asa Ramachandran Analyst DISCLAIMERS & DISCLOSURES:
CERTIFICATION I, Tency N. Kurien, author of this Report, hereby certify that all the views expressed in this research report reflect our personal views about any or all of the subject issuer or securities. This report has been prepared by the Research Team of Geojit Financial Services Limited (formerly known as Geojit BNP Paribas Financial Services Ltd.) COMPANY OVERVIEW Geojit Financial Services Limited, a publically listed company, is engaged in services of retail broking, depository services, portfolio management and marketing investment products including mutual funds, insurance and properties. Geojit Financial Services Limited is a SEBI registered Research Entity and as such prepares and shares research data and reports periodically with clients, investors, stake holders and general public in compliance with Securities and Exchange Board of India Act, 1992, Securities And Exchange Board Of India (Research Analysts) Regulations, 2014 and/or any other applicable directives, instructions or guidelines issued by the Regulators from time to time. DISTRIBUTION OF REPORTS This document is not for public distribution and has been furnished to you solely for your information and must not be reproduced or redistributed to any other person. Geojit Financial Services Limited will not treat the recipients of this report as clients by virtue of their receiving this report. GENERAL REPRESENTATION The research reports do not constitute an offer or solicitation for the purchase or sale of any financial instruments, inducements, promise, guarantee, warranty, or as an official confirmation of any transaction or contractual obligations of any kind. This report is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. The information contained herein is from publicly available data or other sources believed to be reliable, but we do not represent that it is accurate or complete and it should not be relied on as such. We have also reviewed the research report for any untrue statements of material facts or any false or misleading information. While we endeavour to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. RISK DISCLOSURE Geojit Financial Services Limited and/or its Affiliates and its officers, directors and employees including the analyst/authors shall not be in any way be responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Investors may lose his/her entire investment under certain market conditions so before acting on any advice or recommendation in these material, investors should consider whether it is suitable for their particular circumstances and, if necessary, seek professional advice. This report does not take into account the specific investment objectives, financial situation/circumstances and the particular needs of any specific person who may receive this document. The user assumes the entire risk of any use made of this information. Each recipient of this report should make such investigation as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this report (including the merits and risks involved). The price, volume and income of the investments referred to in this report may fluctuate and investors may realize losses that may exceed their original capital. TECHNICAL DISCLAIMER We have prepared this report based on information believed to be reliable. The recommendations herein are based on 12 month horizon, unless otherwise specified. The investment ratings are on absolute positive/negative return basis. It is possible that due to volatile price fluctuation in the near to medium term, there could be a temporary mismatch to rating. For reasons of valuations/return/lack of clarity/event we may revisit rating at appropriate time. The stocks always carry the risk of being upgraded to buy or downgraded to a hold, reduce or sell. The opinions expressed are subject to change but we have no obligation to tell our clients when our opinions or recommendations change. This report is non inclusive and does not consider all the information that the recipients may consider material to investments. This report is issued by Geojit Financial Services Ltd without any liability/undertaking/commitment on the part of itself or any of its entities. We may have issued or may issue on the companies covered herein, reports, recommendations or information which is contrary to those contained in this report.
The securities described herein may not be eligible to all categories of investors. Reports based on technical analysis is focused on studying charts of a stock's price movement and trading volume, as opposed to focusing on a company's fundamentals and as such, may not match with a report on a company's fundamentals. We may have issued or may issue on the companies covered herein, reports, recommendations or information which is contrary to those contained in this report. Opinions expressed herein are our current opinions as of the date appearing on this report only. JUSRISDICTION The securities described herein may not be eligible for sale in all jurisdictions or to all categories of investors. The countries in which the companies mentioned in this report are organized may have restrictions on investments, voting rights or dealings in securities by nationals of other countries. Distributing/taking/sending/dispatching/transmitting this document in certain foreign jurisdictions may be restricted by law, and persons into whose possession this document comes should inform themselves about, and observe any such restrictions. Failure to comply with this restriction may constitute a violation of any foreign jurisdiction laws. Foreign currencies denominated securities are subject to fluctuations in exchange rates that could have an adverse effect on the value or price of or income derived from the investment. Investors in securities such as ADRs, the value of which are influenced by foreign currencies effectively assume currency risk. REGULATORY DISCLOSURES : Geojit Financial Services Ltd’s Associates consists of companies such as Geojit Technologies Private Limited (GTPL Software Solutions provider), Geojit Credits Private Limited (GCPL NBFC Services provider), Geojit Investment Services Limited (GISL Corporate Agent for Insurance products), Geojit Financial Management Services Private Limited (GFMSL) &Geojit Financial Distribution Private Limited (GFDPL), (Distributors of Insurance and MF Units).In the context of the SEBI Regulations on Research Analysts (2014), Geojit Financial Services Limited affirms that we are a SEBI registered Research Entity and in the course of our business as a stock market intermediary, we issue research reports /research analysis etc that are prepared by our Research Analysts. We also affirm and undertake that no disciplinary action has been taken against us or our Analysts in connection with our business activities. In compliance with the above mentioned SEBI Regulations, the following additional disclosures are also provided which may be considered by the reader before making an investment decision: 1. Disclosures regarding Ownership*: Geojit Financial Services Limited confirms that: (i) Geojit Financial Services Limited /its associates do not have financial interest in relation to the subject company (ies) covered herein/ has other material conflict in relation to subject company (State the nature of such financial interest) It/its associates have no actual beneficial ownership greater than 1% in relation to the subject company (ies) covered herein. Further, the Analyst confirms that: (i) he, his associates and his relatives have financial interest in the subject company (ies) covered herein, and they have no other material conflict in the subject company. (ii) he, his associates and his relatives have no actual/beneficial ownership greater than 1% in the subject company covered 2. Disclosures regarding Compensation: During the past 12 months, Geojit Financial Services Limited or its Associates: (a) Have not received any compensation from the subject company; (b) Have not managed or co managed public offering of securities for the subject company (c) Have not received any compensation for investment banking or merchant banking or brokerage services from the subject company (d) Have not received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject and is in receipt of compensation from the subject company.” (e) Have not received any compensation or other benefits from the subject company or third party in connection with the research report (f) The subject company is / was not a client during twelve months preceding the date of distribution of the research report. 3. Disclosure by Geojit Financial Services Limited regarding the compensation paid to its Research Analyst: Geojit Financial Services Limited hereby confirms that no part of the compensation paid to the persons employed by it as Research Analysts is based on any specific brokerage services or transactions pertaining to trading in securities of companies contained in the Research Reports. 4. Disclosure regarding the Research Analyst’s connection with the subject company: It is affirmed that the I, Tency N. Kurien, Research Analyst(s) of Geojit Financial Services Limited have not served as an officer, director or employee of the subject company. 5. Disclosure regarding Market Making activity: Neither Geojit Financial Services Limited /its Analysts have engaged in market making activities for the subject company. Please ensure that you have read the “Risk Disclosure Documents for Capital Market and Derivatives Segments” as prescribed by the Securities and Exchange Board of India before investing.
SEBI REGISTRATION NUMBERS:
SEBI Registration No. Stock Broker : INZ000104737 | Depository Participant: IN DP 325 2017 Portfolio Manager: INP000003203 | Investment Adviser: INA200002817 | ARN Regn. no: 0098 Research Entity SEBI Registration Number: INH200000345
CORPORATE OFFICE:
Geojit Financial Services Limited ,34/659-P, Civil Line Road, Padivattom, Kochi – 682024 Toll Free Number : 1800 425 5501 / 1800 103 5501, Paid Number : 91 484 2901000 Email id :[email protected] , Web: www.geojit.com