Morning Notes

24 July, 2017

Indices 21-Jul 20-Jul % Chg. Major Indices 21-Jul 20-Jul % Chg. FII's & DII's in equity ‎₹ Crs S&P BSE SENSEX 32,029 31,904 0.39% Dow Jones Industrial Average21,580 21,612 -0.15% 21-Jul Buy Sell Net S&P CNX NIFTY 9,915 9,873 0.42% Nasdaq Composite Index 6,388 6,390 -0.04% FII / FPI Investments 5,313 5,300 13 NIFTY MID100 FREE 18,262 18,291 -0.16% CAC 40 Index 5,118 5,199 -1.57% DII's Investments 2,720 2,572 148 NIFTY SML100 FREE 7,754 7,712 0.54% FTSE 100 Index 7,453 7,488 -0.47% FII's contribution to the total turnover 31% DAX Index 12,240 12,447 -1.66% DII's contribution to the total turnover 15% BSE Sectoral Indices NIFTY IT 10,712 10,491 2.10% Major Asian Indices 21-Jul 20-Jul % Chg. FII's in Derivatives (F&O) ‎₹ Crs NIFTY ENERGY 12,641 12,446 1.57% Hong Kong 26,706 26,740 -0.13% 21-Jul Index Fut Index Opt Stock Fut Stock Opt NIFTY MEDIA 3,158 3,125 1.06% Nikkei 225 20,100 20,145 -0.22% Net 215 -3,296 1,033 -50 NIFTY FIN SERVICE 9,888 9,867 0.22% Korea 2,450 2,442 0.34% OI 22,466 83,720 61,636 8,828 NIFTY METAL 3,203 3,196 0.21% Shanghai 3,238 3,245 -0.21% Chg.OI 2.0% -2.2% -1.6% 6.2% NIFTY BANK 24,257 24,213 0.18% Taiwan 10,437 10,499 -0.60% FIIs' contribution to the total F&O turnover 26% NIFTY FMCG 25,796 25,763 0.13% NIFTY PSU BANK 3,511 3,508 0.09% Commodities (MCX) 21-Jul 20-Jul % Chg. Curr. Derivatives (NSE) 21-Jul 20-Jul % Chg. NIFTY CONSUMPTION 4,460 4,457 0.05% Aluminium (31JUL2017) 122.5 122.3 0.12% USDINR 27-JUL-2017 64.36 64.48 -0.18% NIFTY AUTO 10,955 10,961 -0.05% Copper (31JUL2017) 389.0 387.2 0.46% EURINR 27-JUL-2017 74.96 74.22 1.01% NIFTY INFRA 3,356 3,375 -0.57% Crude (21AUG2017) 2,965 3,037 -2.37% JPYINR 27-JUL-2017 57.72 57.47 0.43% NIFTY REALTY 280 282 -0.76% Gold ( 04AUG2017) 28,541 28,331 0.74% DJIA 18-08-2017) 21,570 21,600 -0.14% NIFTY PHARMA 10,052 10,141 -0.87% Silver (05SEP2017) 38,150 37,881 0.71% S&P500 (18-08-2017) 2,469 2,469 0.03%

Company LTP Chg % Chg Company LTP Chg % Chg Domestic Market View WIPRO 286 17 6.1 IBULHSGFIN 1135 -24 -2.1 Markets to make a cautious start of the F&O expiry week RELIANCE 1584 55 3.6 POWERGRID 214.5 -4 -1.9

ZEEL 557 18 3.3 LUPIN 1146 -20 -1.7 The Indian markets supported by some late hour buying

CNX Nifty CNX Nifty CNX Top Losers Top Top Gainers Gainers Top ahead of the weekend, posted decent gains in the last COALINDIA 263 7 2.8 HEROMOTOCO 3678 -52 -1.4 session. Today, the start of the F&O expiry week is likely KOTAKBANK 1002 22 2.2 LUPIN 1146 -20 -1.7 to remain cautious amid sluggish global cues, though some good earnings during the weekend will support Company LTP Chg % Chg Company LTP Chg % Chg the market from any major fall. Meanwhile, Finance WIPRO 286 17 6.5 DLF 196 -7 -3.2 Minister Arun Jaitley has said demonetisation and GST will make cash transactions a lot more difficult and lead BAJAJFINSV 4907 221 4.7 DIVISLAB 721 -24 -3.2 to greater compliance as well as expansion of tax base.

CUMMINSIND 1007 37 3.8 IDEA 92 -3 -3.1

BSE 100 BSE 100 BSE

Top Losers Top The banking sector will keep buzzing, as RBI Deputy Top Gainers Gainers Top RELIANCE 1586 58 3.8 ASHOKLEY 103 -3 -2.6 Governor Viral Acharya has said the cleaning of banks' ZEEL 554 16 3.0 BHARTIARTL 411 -9 -2.1 balance sheet is the 'number one priority' for the central bank. Last month, he had said that targeted Company LTP Chg % Chg Company LTP Chg % Chg interventions like reducing standard asset provisions for home loans, which will make them cheaper, will help ADANIPOWER 32 2 7.0 DIVISLAB 721 -24 -3.2 revive the sagging growth rather than rate cuts. The BAJAJHLDNG 2366 118 5.3 JINDALSTEL 137 -4 -3.1 aviation stocks will be in action on reports that domestic

BAJAJFINSV 4907 221 4.7 SUNTV 806 -22 -2.7 air traffic were up 20% in June. Domestic airlines flew

Top Losers Top

BSE Midcap BSE Midcap BSE Top Gainers Gainers Top CUMMINSIND 1007 37 3.8 ASHOKLEY 103 -3 -2.6 95.86 lakh passengers in June, registering a growth of

BANKINDIA 155 4 2.4 IBULHSGFIN 1138 -20 -1.8 20 per cent over the 79.75-lakh passengers flown during the same month in the previous year. Port and Shipping’s stocks too will be buzzing, as the Major Port Company LTP Chg % Chg Company LTP Chg % Chg Authorities Bill, introduced in Parliament, seeks to GVKPIL 10 2 19.9 GUJNREDVR 2 -0.1 -6.6 convert 11 of the 12 ports owned by the Centre from RENUKA 19 3 16.8 NUCLEUS 289 -19 -6.1 trusts into authorities, as part of a compromise plan

ARCOTECH 98 14 16.1 DISHTV 78 -5 -5.9 drafted by the Nitin Gadkari-led Shipping Ministry. There

Top Losers Top

Top Gainers Gainers Top BSE Smallcap BSE BSE Smallcap BSE will be lots of important earnings announcements that LYKALABS 61 8 15.5 RSSOFTWARE 79 -5 -5.8 will keep the markets in action. JPASSOCIAT 27 4 15.4 NITINFIRE 7 -0.4 -5.0

LKP Advisory Source: Reuters, ACE Equity & LKP Research

Morning Notes

Domestic Market Overview

Final hour buying helps Sensex to regain 32K mark; Nifty reclaims 9,900 level Buying in final hour of trade helped markets to end the session with gain of around half a percent, with frontline gauges recapturing their crucial 32,000 (Sensex) and 9,900 (Nifty) bastions. Markets started the day on optimistic note with traders taking some encouragement with an Asian Development Bank’s (ADB) supplement report stating that India is expected to achieve the projected growth rate of 7.4% in 2017 and further up 7.6% next year on strong consumption demand, with South Asia leading the growth chart in Asia and the Pacific. Upbeat earnings from market heavyweight Reliance Industries too aided sentiments with company reporting a consolidated quarterly net profit increase of 28%, helped by higher-than-expected refining and petrochemicals margins and a one-time gain. Net profit rose to Rs 9,079 crore in the quarter ended June from Rs 7,077 crore a year earlier. Revenue rose to Rs 92,661 crore, an increase of 25.5% from Rs 73,829 crore a year ago. Markets in the second half took U-turn and entered into red terrain, as anxiety spread among the investors with ADB’s statement that the goods and services tax is expected to boost growth in the medium term, however there may be some teething pains as firms adjust to the new system. Domestic bourses even went to test psychological 31,800 (Sensex) and 9,850 (Nifty) levels, but the key gauges got some support near those intraday low levels as they trim their losses from thereon and ended near intraday high levels, as investors continued hunt for fundamentally strong stocks. Some support also came with the private report stating that strong import growth in June points to continued recovery in India’s domestic demand and highlighted that economic expansion will accelerate from the April-June quarter. Stocks related to realty counter edged lower despite reports that foreign investment in Indian real estate sector jumped more than two-fold at $ 7.6 billion during 2014-16 period compared with the previous three years. US accounted for more than 40% of the foreign investments, followed by Canada (18%) and Singapore (17%). Telecom stocks Bharti Airtel, Idea cellular, Reliance Communications, MTNL and Tata Teleservices (Maharashtra) closed in red after Reliance Industries’ Chairman and Managing Director Mukesh Ambani announced the launch of much-awaited 4G feature phone at the company’s 40th annual general meeting. DTH & Digital Cable TV Providers such as Dish TV India and Hathway Cable & Datacom too closed in red on Jio’s New TV-Enabled Phone.

Global Market Overview Asian markets end mostly in red on Friday Asian equity markets ended mostly in red on Friday after the European Central Bank dropped no hints at tapering in September and media reports suggested that US special counsel Robert Mueller is expanding the Russia probe to include President Donald Trump's business dealings. Japan's Nikkei share average edged down as investors took profits on steelmakers, offsetting gains in Yaskawa Electric and other machinery makers. Meanwhile, China's stocks fell on Friday but ended the week higher, with demand for blue chips gaining momentum amid a slump in small-cap stocks, as investors sought firms with solid growth prospects and lower valuations. Hong Kong stocks snapped a nine- day winning streak as investors took a breather after the benchmark index scaled a fresh two-year peak in the previous session. Though, Seoul stocks ended up at fresh record highs as foreign investors scooped up financial shares on expectations of solid second-quarter earnings results. US markets end slightly in red on Friday The US markets ended the Friday’s trade slightly in red, as a lack of major U.S. economic data kept some traders on the sidelines. Uncertainty about the near-term outlook for the markets too contributed to the choppy trading following the recent move to record highs by the major averages. Market participants also stayed away from investing in risky assets ahead of Federal Reserve meet next week, with the central bank due to announce its latest monetary policy decision next Wednesday. Moreover, a negative reaction to earnings news from some big-name companies weighed on Wall Street, with shares of General Electric (GE) showing a notable decline. GE slumped by 2.9 percent after the conglomerate reported better than expected second quarter earnings but warned of full-year profits at the low end of its forecasts. Shares of Microsoft (MSFT) also moved lower on the day even though the software giant reported fiscal fourth quarter results that exceeded forecasts.

LKP Advisory Source: Reuters, ACE Equity & LKP Research

Morning Notes

Index Futures

(OI in '000 Shares) Future Chg Spot Chg Prem / Total Open Interest 21-Jul (%) 21-Jul (%) Disc 21-Jul Chg (%) NIFTY 9,911 0.23 9,915 0.42 -4.7 22,452 1.80

NIFTYIT 10,692 1.95 10,712 2.10 -19.5 28 -13.35

BANKNIFTY 24,248 -0.23 24,257 0.18 -9.5 3,310 -1.28

Increasing OI, Increasing Delivery Qty & Increasing Price in Stock Futures (Open Interest in '000 Shares)

Symbol Total OI Del Qty Cash Market Prev Increase Spot Fut Spot Fut Prem / 21-Jul % Chg. 21-Jul % Del. % Del. Del Qty (‎₹) (‎₹) Chg (%.) Chg (%.) Disc RELIANCE 15,949 12% 4,582,470 19% 50% 2,911,527 1,585 1,588 3.9% 3.5% 2.5

MRPL 13,541 11% 1,524,377 41% 32% 11,848 127 121 0.2% 0.9% -5.6

BEML 2,505 4% 203,814 19% 40% 305 1,589 1,594 3.5% 3.6% 5.9

ADANIPORTS 6,948 3% 5,896,774 78% 81% 1,883,606 382 382 0.5% 0.4% 0.2

CONCOR 908 2% 374,668 77% 37% 326,947 1,181 1,184 0.1% -0.1% 3.4

HCLTECH 6,121 2% 686,999 45% 70% 102,723 905 906 2.4% 2.0% 1.2

IFCI 85,338 2% 5,470,342 16% 20% 4,767,232 28 28 5.0% 5.3% 0.1

TITAN 4,022 1% 426,053 34% 48% 124,005 543 541 2.6% 2.2% -2.7

BATAINDIA 4,572 1% 413,242 28% 34% 165,283 580 582 1.2% 1.2% 1.9

BALRAMCHIN 12,107 1% 993,100 42% 32% 145,597 160 161 1.7% 2.1% 0.7

Increasing OI, Increasing Delivery Qty & Decreasing Price, (Open Interest in '000 Shares)

Symbol Total OI Del Qty Cash Market Prev Increase in Spot Fut Spot Fut Prem / 21-Jul % Chg. 21-Jul % Del. % Del. Del Qty (‎₹) (‎₹) Chg (%.) Chg (%.) Disc ASIANPAINT 3,181 26% 1,525,915 71% 78% 396,247 1,156 1,154 0.0% -0.1% -2.4

HDIL 38,872 19% 5,755,777 25% 16% 3,222,908 86 87 -2.3% -2.5% 0.3

ARVIND 6,194 14% 573,600 44% 19% 411,846 370 368 -2.4% -2.8% -2.2

HEXAWARE 2,856 10% 244,243 38% 10% 184,808 243 244 -1.2% -0.9% 0.8

INDIANB 4,642 10% 910,577 16% 21% 533,259 329 329 -0.9% -0.8% 0.2

BERGEPAINT 1,225 10% 127,078 39% 33% 36,979 252 251 -0.6% -0.9% -1.8

DISHTV 23,660 10% 2,735,347 18% 28% 1,336,249 78 78 -5.8% -6.1% 0.0

KAJARIACER 534 9% 249,033 63% 66% 143,804 654 655 -0.9% -1.2% 1.0

ICIL 9,762 5% 556,914 43% 40% 339,649 155 155 -2.6% -2.9% 0.0

MRF 55 3% 4,890 41% 40% 1,672 68878 69044 -0.3% -0.2% 165.4

LKP Advisory

Morning Notes

Corporate News

 US Food and Drug Administration (USFDA) has successfully completed Prior Approval Inspection (PAI) at Lupin’s Goa manufacturing facility without any observations. The inspection which started on July 17 concluded on July 21, 2017.

 Swetsam Stock Holding has sold 2.04 lakh shares of Relstruct Buildcon on July 21, 2017. The company has offloaded these shares at Rs 47.90 per share on the BSE.

 Bayer CropScience has received its shareholders’ nod for buyback of shares worth Rs 499.99 crore in cash. The large-cap company will buyback 10,20,408 shares, representing 2.89 percent stake, at a price of Rs 4,900 a scrip in cash.

 Abhinandan Leasing and Finance has sold 1.60 lakh shares of Mastek on July 21, 2017. The company has offloaded these shares at Rs 327.90 per share on the NSE.

 Tata Motors is planning to consider a proposal to raise up to Rs 1,000 crore by issuing non-convertible debentures (NCDs). In this regard, the company is planning to hold a meeting of its duly constituted committee of the board on July 26.

 Equity Intelligence India has purchased 1.88 crore shares of GVK Power & Infrastructure on July 21, 2017. The company has bought these shares at Rs 9.61 per share on the NSE.

 Trinetra Company has bought 9 lakh shares of Aksh Optifibre on July 21, 2017. The company has purchased these shares at Rs 24.97 per share on the NSE.

 City Union Bank has received an approval for raising further capital through Qualified Institutional Placement (QIP) route to the tune of Rs 500 crore (including premium). The board of directors at their meeting held on July 21, 2017, has approved for the same.

 Dewan Housing Finance Corporation (DHFL) has received an approval for raising funds up to Rs 8500 crore through debentures. The company will raise funds by issuing Non-Convertible Secured/Unsecured Debentures, upto an amount of Rs.7,500 crore, Non- Convertible Subordinated Unsecured Debentures, upto an amount of Rs. 500 crore and Non-Convertible Perpetual Unsecured Debentures, upto an amount of Rs. 500 crore. The board of directors at their meeting held on July 21, 2017, has approved for the same.

 Vikas WSP has received export orders for an aggregate amount of Rs 119 crore for shipment of its newly developed guar gum product ‘Thermo Guar-30’ in the next two quarters. The company has already filed patent for the said product.

 Solix Technologies has announced API support for Amazon S3 (Simple Storage Service), a web service available from Amazon Web Services and also for private cloud deployments. The new S3 storage solutions are supported on Solix Big Data Suite 2.3, as part of a new software update.

 Reliance Industries (RIL) has received an approval to set up and invest in a technology incubator by the name Jerusalem Innovation Incubator (JII), licensed by Israel Innovation Authority (IIA), Ministry of Economy, Israel, under competitive bidding process. The company proposes to invest up to $25 million in JII and in frontier technology start-ups in tranches, over a period of about 8 years..

 Bangalore Fort Farms has entered into a farm management agreement for contract farming on a 30 acres land situated at Bhikharipur village, Rajatalab tahsil, Varanasi in state of Uttar Pradesh. This contract farming agreement will be for a period of two years.

 Godrej Properties’ (GPL) township project in Ahmedabad, Godrej Garden City (GGC) has received the Indian Green Building Council Green Residential Society (IGBC - GRS) Platinum Certification. The IGBC GRS Platinum certification is recognized as the highest rating for residential societies. With this achievement, GGC becomes the largest township in India to be GRES Platinum certified.

 Suven Life Sciences (Suven) has secured one product patent in Australia corresponding to the New Chemical Entities (NCEs) for the treatment of disorders associated with Neurodegenerative diseases and these Patents are valid through 2034.

 US Food and Drug Administration (USFDA) has completed audit of Dr. Reddy’s Laboratories’ API Cuernavaca plant at Mexico with Zero observation.

LKP Advisory Source: Reuters, ACE Equity & LKP Research

Morning Notes

 Zee Media Corporation is reportedly in advanced discussions to acquire Business Broadcast News, an Anil Ambani-owned company that operates English business news channel BTVi. The company could pay between Rs 80 crore and Rs 100 crore. A deal is imminent and the matter will come up for approval before Zee Media’s board at its meeting scheduled for next week.

 Tata Motors has rolled out the first batch of its soon-to-be launched 5-seater SUV, the Nexon from its Ranjangaon facility. The Nexon, which may come in the Rs 6-9 lakh price range, is the company’s fourth new generation passenger vehicles and will be commercially launched before Diwali.

 Fidelity Funds-Asian Smaller Companies Pool has sold 4.40 lakh shares of V-Mart Retail at Rs 1,143.02 on the BSE on July 20, 2017. However, GMO Emerging Domestic Opportunities Fund has bought 2.86 lakh shares at Rs 1,143 on the same day.

 Videocon Industries’ telecom arm - Videocon Telecom has entered into eKYC business for Aadhaar-linked services and set a revenue target of up to Rs 100 crore from the segment in the next two years.

 IDFC Mutual Fund A/C IDFC Small And Midcap Equity (SME) Fund has bought 4.81 lakh shares of Sterling Tools at Rs 265 on the NSE on July 20, 2017. However, Anil Aggarwal has sold 4.75 lakh shares of the company at Rs 265.01 on the NSE on the same day.

 Balaji Telefilms has received an approval for investment by Reliance Industries (RIL) through a preferential issue of 2,52,00,000 equity shares at Rs 164 each, aggregating to Rs 413.28 crore, subject to necessary shareholder and other approvals. The board of directors at its meeting held on July 20, 2017 has approved for the same. Axis Capital acted as the sole investment banker for this transaction.

 Reliance Mutual Fund (MF) has bought 89,800 share of Honda Siel Power Products at Rs 1,350.01 on July 20, 2017. However, Prasoon Harshad Bhatt has sold 90,000 shares of the company Products at Rs 1,350.01 on the NSE on same day.

 Ace investor Rakesh Jhunjhunwala has bought 1.26% stake in Jubilant Life Sciences during April-June quarter. The ace investor was holding 20 lakh shares in the company as of June 30, 2017.

 Ace investor Rakesh Jhunjhunwala has bought 1.03% stake in Jaiprakash Associates during April-June quarter. The ace investor was holding 2.50 crore shares in Jaiprakash Associates as of June 30, 2017.

 Kotak Mahindra Bank has received an approval from its shareholders for raising up to Rs 65,000 crore to fund business expansion. The decision to this effect was taken in the Annual General Meeting. The shareholders of the Bank gave approval to borrow in excess of the paid up capital and free reserves but not exceeding Rs 60,000 crore.

 Welspun Corp has won orders from a customer in India for supply of 100K MTs pipes for water projects in India. With the addition of this order, current order book of the company has crossed 699 K MTs worth Rs 4,200 crore.

 Gravita India’s step down subsidiary in Jamaica - Gravita Jamaica, has started recycling and commercial production of PET Flakes (Polyethylene Terephthalate) by installing an ultra-modern ‘PET Hot Wash Line’ with an annual capacity of 4,800 MTPA.

 Reliance Industries (RIL) has received an approval for investment in Balaji Telefilms (BTL) by way of acquiring 2.52 crore equity shares constituting 24.92% of BTL’s equity, through subscription to preferential issue of shares by BTL to RIL for cash consideration of Rs 164 per equity share amounting to an investment of Rs 413.28 crore. The board of directors at its meeting held on July 20, 2017 has received an approval for the same.

Economy

 Coal cess to contribute to GST Compensation Fund: Piyush Goyal

Power and Coal Minister Piyush Goyal has said the coal cess will contribute to the Goods and Services Tax (GST) compensation fund meant to compensate states for five years for loss of revenue from implementation of GST.

Goyal also mentioned that along with the coal cess, cess on other products like pan masala, tobacco, aerated water would also be the part of GST Compensation Fund. The Power and Coal Minister further said that after five years, any amount left would be shared on 50 per cent basis between Centre and States.

LKP Advisory Source: Reuters, ACE Equity & LKP Research

Morning Notes

Under the GST regime, the government has decided to continue the coal cess at Rs 400 per tonne, while aerated drinks purchased from nearby shops will become more expensive, with the GST rate applicable being 28 per cent, along with a 12 per cent additional cess.

 Govt likely to unveil Rs 2,600 crore incentive package for leather industry

With a view to boost manufacturing, exports and job creation in India, the government is likely to unveil Rs 2,600 crore incentive package for the labour intensive leather and footwear sector. The expenditure finance committee has already given its approval to the package and a draft cabinet note has been circulated to different ministries for their views.

The scheme, which includes both tax and non-tax benefits, was prepared on the lines of the package announced for the textiles sector in June last year. The commerce and industry ministry, which mooted the proposal, has sought tax incentives for the 'Indian Footwear, Leather, and Accessories Development Programme'. Besides, support has been sought to improve tax incentives for employment generation.

The sector assumes significance as it is a thrust segment under the ‘Make in India’ initiative. According to industry, Rs 1 crore investment in the sector results in creation of jobs for about 250 people. Currently, about 30 lakh people are directly employed in the sector. The government aims to increase the sector exports to $15 billion by 2020 from the current $7 billion.

 Finance Minister releases National Trade Facilitation Action Plan

Union Minister of Finance, Defence and Corporate Affairs, Arun Jaitley has released the National Trade Facilitation Action Plan (NTFAP) on July 20, 2017. After releasing this National Action Plan, he said that the entry into force of the WTO-Trade Facilitation Agreement (TFA) on February 22, 2017 is a major milestone for the global trading system. He also said that India looks forward to ensuring compliance with the TFA and also impetus to trade facilitation.

The minister has said that the NTFAP gives a time bound map, not only for implementing TFA, but also for the country’s initiatives for trade facilitation and ease of doing business which goes beyond TFA. Adding further, he said that the aim of the action plan is to transform cross border clearance ecosystem through efficient, transparent, risk based, coordinated, digital, seamless and technology driven procedures which are supported by state-of-the-art sea ports, airports and land borders.

Jaitley further stated that the objectives to be achieved by National Action Plan are improvement in ease of doing business by reduction in cargo release time and cost, move towards paperless regulatory environment, transparent and predictable legal regime and improved investment climate through better infrastructure. He also noted that the action plan lists out specific activities which would be carried out by all regulatory agencies like Customs, FSSAI, Drug Controller, Plant Quarantine, DGFT etc in time bound manner. He added that this co-ordination among all the stakeholders is needed to achieve the objective of trade facilitation.

 RAI urges FM to simplify sale invoice format for cash bills

Raising concern over the complex formats for the cash bills under the new Goods and Services Tax (GST) regime, the Retailers Association of India (RAI) has appealed to the finance minister to simplify the prescribed sale invoice format for cash bills rendered to customers claiming it is “confusing”. In a appeal to FM it said that there are some aspects of GST regime, which are causing a lot of challenges in business to consumer (B2C) at retail point of sale.

The association requested that retailers be allowed to issue retail cash memo which has details of all articles sold and net price including GST realised for each article. It further said that the need for individual item tax details and HS codes can be done away with for all intra-state retail sales (B2C), this exemption would be required for all retailers without any cap on sales turnover.

The GST rules define that it is mandatory to mention GST rates and HS code for each article sold and provide tax details for each line item. The retailer body has suggested that the GST format follow the globally retail cash memos, which are presented at prices inclusive of all taxes and tax breakups are not shown. They also raised the fact that customers perceive they are being charged higher prices when they are shown a backward calculation of tax.

LKP Advisory Source: Reuters, ACE Equity & LKP Research

Morning Notes

 Nirmala Sitharaman urges WTO chief to find early solution to food stocks issue

In order to find solution to the issue of food stockpiling, the Commerce Minister Nirmala Sitharaman has urged the World Trade Organisation (WTO) chief to vigorously follow the efforts of the member countries to reach finality on public stockholding (PSH) and the agricultural Special Safeguard Mechanism (SSM). She also stressed that the Eleventh Ministerial Conference (MC11) of the WTO outcomes must include a permanent solution on PSH for food security purposes on which there is a ministerial mandate.

The minister highlighted that any attempts at seeking outcomes on new issues such as e-commerce and investment facilitation should not be at the cost of other long pending issues on the agenda of the Doha Round. The new issues which are being pushed by developed world include investments, competition, labour, government procurement, environment and global value chains. A permanent solution to the issue of food stockpiling is important for smooth implementation of India's food security programme.

As per the global trade norms, a WTO member country’s food subsidy cap should not breach the limit of 10%, which is based on the reference price of 1986-88. There are apprehensions that full implementation of food security programme may breach this cap. So India wants amendments in the formula to calculate the food subsidy cap. Currently, there is a peace clause according to which no country can ask WTO to take action against a country that breaches the 10% cap. This clause is there till a permanent solution is found for the food stockpiling issue. This has enabled India to continue procurement and stocking of foodgrain for distribution to poor under its food security programme without attracting any kind of action from WTO members even if it breaches the 10% subsidy cap as prescribed by the multilateral trade body.

SSM is a toll demanded by developing countries, including India, to support poor farmers from sudden surge in imports. Several developed countries give massive subsidies to their farmers and in such a case SSM would help India in protecting the farmers. High subsidies distort prices and makes Indian farmers vulnerable when the products hit the domestic markets.

LKP Advisory Source: Reuters, ACE Equity & LKP Research

Tech View

CNX Nifty

Technical View

Nifty has been in a bullish trend with some sideways move and some sharp correction which turned out to be a good buying opportunity in Dips from the lows of Dec2017 7893. Nifty spot has already traveled 2000 points in 7 months and still there is no sign of reversal. As per Gann methodology Nifty has completed 9769 and is now in the next trajectory above 9819 for higher t:9868-9918-9968-10018- 10068. From the Expire day projected t:9804-9923 is also completed and above this 10090 is possible. From the established bottom 9340 we have already done 9928 (recent high 9928) and next bottom 9448 we have already done 9840-9890 and next important level 9940. From the recent low 9792 we have done 9841-9891 and next level is 9940. As per static 4 digit levels Nifty has been vibrating between 9801-9851-9901-9951. This all levels from different reference levels are pointing towards a confluence of levels at 9918-9928- 9940-9951 on the higher side and support cluster around 9801 and if Nifty break will see a retracement towards 9752-9703-9654 and 9605. As per Daily and monthly charts hurdle is placed around 9980. Last 4 month Nifty range has been around 380 points which it has completed. Weekly Charts have shown sign of pause and now 9913 and 9886 should be watched for action if Nifty manages to hold it can move upwards towards 9980 which is also a strong hurdle. So expect action between 9929-9951-9980 and 9901-9851-9801.

LKP Advisory

Morning Notes

LKP Advisory Source: Reuters, ACE Equity & LKP Research

Tech View

PIVOT POINTS

Scrip Name CMP RB2 RB1 PP SB1 SB2 Scrip Name CMP RB2 RB1 PP SB1 SB2

ACC 1,709 1,751 1,728 1,710 1,691 1,669 COALINDIA 262 272 265 260 254 248

APOLLOTYRE 252 260 256 253 249 245 DLF 196 213 205 198 191 183

ASHOKLEY 103 112 107 103 99 94 CONCOR 1,181 1,204 1,192 1,181 1,171 1,158

AXISBANK 541 553 545 538 532 524 ADANIENT 141 146 143 140 138 135

BANKBARODA 162 167 164 162 160 158 DRREDDY 2,763 2,830 2,789 2,757 2,724 2,683

BATAINDIA 580 604 591 580 569 556 DISHTV 78 91 84 79 74 68

BEML 1,589 1,709 1,635 1,576 1,516 1,442 EICHERMOT 28,903 29,900 29,412 29,016 28,621 28,132

BERGEPAINT 252 260 256 253 249 246 ENGINERSIN 165 173 168 165 161 157

BHARATFIN 781 811 794 780 767 750 EQUITAS 168 175 171 168 165 161

BHARATFORG 1,136 1,169 1,150 1,135 1,120 1,101 EXIDEIND 217 224 220 216 213 209

BOSCHLTD 23,971 24,408 24,171 23,979 23,787 23,550 FEDERALBNK 117 124 121 118 116 113

BPCL 467 476 470 466 461 455 GODFRYPHLP 1,161 1,274 1,199 1,138 1,078 1,003

BRITANNIA 3,834 3,899 3,857 3,823 3,789 3,747 GODREJCP 962 986 972 962 951 938

CANFINHOME 3,145 3,324 3,239 3,171 3,103 3,018 GODREJIND 680 712 695 682 669 652

CGPOWER 86 88 87 86 84 83 HAVELLS 462 477 469 462 456 448

ADANIPORTS 382 387 384 381 379 375 HEROMOTOCO 3,682 3,791 3,740 3,699 3,659 3,608

ADANIPOWER 32 35 33 31 30 28 HINDALCO 215 223 217 213 208 202

ALBK 72 74 73 72 71 70 AMBUJACEM 266 276 270 265 260 253

CHENNPETRO 388 400 393 388 382 376 HINDPETRO 368 385 374 365 357 346

AMARAJABAT 839 850 844 839 833 827 HINDZINC 281 290 285 281 277 272

APOLLOHOSP 1,268 1,316 1,283 1,257 1,230 1,198 ESCORTS 654 678 665 655 645 632

ARVIND 370 393 381 372 362 351 IBREALEST 214 225 218 212 206 199

CHOLAFIN 1,135 1,176 1,155 1,138 1,121 1,100 IBULHSGFIN 1,137 1,194 1,164 1,139 1,115 1,085

CIPLA 566 579 572 565 559 552 ANDHRABANK 57 58 57 57 56 55

ASIANPAINT 1,156 1,193 1,174 1,159 1,144 1,125 ICIL 155 166 161 156 152 147

AUROPHARMA 748 777 760 746 732 714 IDFC 58 62 60 58 57 55

BAJFINANCE 1,621 1,677 1,641 1,613 1,584 1,548 IGL 1,146 1,187 1,160 1,137 1,115 1,088

BALRAMCHIN 160 168 163 159 155 151 FORTIS 164 171 166 162 158 153

BANKINDIA 155 160 157 154 151 148 INDIACEM 209 220 213 207 201 194

COLPAL 1,069 1,087 1,076 1,068 1,059 1,049 INDIGO 1,243 1,274 1,255 1,240 1,225 1,206

BHEL 145 150 147 145 143 140 GLENMARK 696 721 710 700 691 680

CUMMINSIND 1,005 1,052 1,020 994 969 937 INDUSINDBK 1,567 1,587 1,573 1,562 1,551 1,538

DALMIABHA 2,645 2,707 2,669 2,639 2,609 2,572 INFIBEAM 1,270 1,323 1,290 1,264 1,238 1,206

INFY 980 993 985 978 971 963

CADILAHC 529 547 536 527 517 506 IOC 381 391 385 379 374 367

CAPF 761 786 770 757 744 728 GRASIM 1,061 1,114 1,088 1,067 1,046 1,020

CASTROLIND 410 418 413 409 405 400 ITC 289 296 292 289 286 282

CENTURYTEX 1,147 1,193 1,168 1,149 1,129 1,105 HCLTECH 905 932 914 899 884 866

CESC 900 920 909 900 890 879 JETAIRWAYS 597 623 607 593 579 563

DCBBANK 195 200 197 195 192 189 JINDALSTEL 137 149 142 137 132 126

LKP Advisory

Tech View

Scrip Name CMP RB2 RB1 PP SB1 SB2 Scrip Name CMP RB2 RB1 PP SB1 SB2

HDFC 1,641 1,686 1,660 1,640 1,619 1,594 POWERGRID 215 224 220 216 212 208

HEXAWARE 243 254 248 243 239 233 RAYMOND 801 837 818 802 787 768

JSWENERGY 67 71 68 66 64 61 PFC 129 132 130 128 127 125

BAJAJFINSV 4,910 5,264 5,038 4,855 4,672 4,446 RBLBANK 532 558 545 535 525 512

JSWSTEEL 215 220 217 214 212 209 PNB 158 163 160 158 156 153

JUBLFOOD 1,254 1,366 1,311 1,267 1,223 1,168 GSFC 125 130 128 126 124 121

JUSTDIAL 382 398 388 381 373 364 RELCAPITAL 650 691 669 651 633 611

ICICIBANK 302 311 305 301 296 290 HDFCBANK 1,703 1,727 1,716 1,706 1,697 1,685

KAJARIACER 654 682 666 652 639 622 HDIL 86 94 90 87 84 80

KPIT 126 134 131 128 124 121 HINDUNILVR 1,159 1,182 1,168 1,156 1,144 1,129

KSCL 637 671 654 640 627 610 RELIANCE 1,585 1,638 1,603 1,574 1,545 1,509

KTKBANK 157 164 160 157 154 150 IDBI 59 61 60 59 58 57

L&TFH 153 157 155 152 150 147 SAIL 62 65 63 62 62 60

LICHSGFIN 740 781 759 741 723 700 SHREECEM 17,683 18,332 18,026 17,779 17,532 17,227

INFRATEL 410 422 414 408 401 393 PTC 118 122 120 118 116 115

LT 1,179 1,207 1,192 1,180 1,168 1,152 SIEMENS 1,364 1,401 1,382 1,367 1,352 1,333

LUPIN 1,143 1,180 1,160 1,144 1,128 1,108 RAMCOCEM 679 703 691 681 671 659

BIOCON 400 424 411 401 391 378 SINTEX 37 41 39 37 36 34

M&M 1,386 1,428 1,403 1,383 1,363 1,339 IFCI 28 30 28 27 26 25

M&MFIN 355 372 363 355 348 339 SBIN 291 296 293 290 288 285

MARUTI 7,543 7,658 7,577 7,513 7,448 7,368 SOUTHBANK 29 29 29 29 28 28

MCDOWELL-N 2,705 2,819 2,753 2,699 2,645 2,579 SRF 1,512 1,549 1,527 1,510 1,493 1,471

MOTHERSUMI 324 339 330 324 317 309 INDIANB 329 350 340 331 323 312

KOTAKBANK 999 1,035 1,011 991 971 946 SRTRANSFIN 967 993 977 965 952 937

MRF 68,878 70,511 69,731 69,100 68,469 67,689 SUNPHARMA 576 595 586 579 572 563

MFSL 594 606 599 592 586 579 TATACHEM 623 636 629 623 617 610

NCC 91 94 92 91 89 87 TATAGLOBAL 172 178 174 172 169 166

CANBK 351 363 356 351 345 338 TATAMTRDVR 275 280 277 274 271 268

NTPC 165 171 167 164 162 158 TATASTEEL 553 572 561 552 543 532

OIL 282 291 286 283 280 276 IRB 214 221 218 215 212 209

DABUR 303 307 304 302 300 297 TITAN 543 561 549 540 530 519

MRPL 127 133 130 128 125 122 TORNTPOWER 181 186 184 181 179 176

MUTHOOTFIN 453 479 466 455 444 431 TV18BRDCST 41 43 41 40 39 38

NBCC 216 223 219 216 213 210 TVSMOTOR 572 585 577 571 565 558

PAGEIND 16,792 17,233 16,967 16,751 16,536 16,269 UNIONBANK 155 160 157 155 152 149

DHFL 459 505 481 461 442 418 UPL 863 880 870 862 854 844

NESTLEIND 6,807 7,022 6,923 6,842 6,762 6,663 VEDL 268 281 273 267 261 253

NIITTECH 544 567 555 546 537 526 VGUARD 181 185 183 181 179 177

PEL 2,918 2,993 2,954 2,923 2,892 2,853 STAR 1,081 1,140 1,099 1,066 1,032 991

PETRONET 206 210 208 206 204 202 VOLTAS 500 514 504 497 489 480

PIDILITIND 804 819 809 801 793 782 YESBANK 1,578 1,597 1,585 1,575 1,565 1,552

PCJEWELLER 257 266 261 256 251 246 SUNTV 806 875 837 807 777 740

LKP Advisory

Tech View

Scrip Name CMP RB2 RB1 PP SB1 SB2 Scrip Name CMP RB2 RB1 PP SB1 SB2

SUZLON 19 20 19 19 18 18

MARICO 330 337 332 328 324 319

ZEEL 556 577 562 551 539 525

TATAMOTORS 465 474 468 463 458 451

TATAPOWER 83 85 84 83 82 82

AJANTPHARM 1,464 1,513 1,487 1,466 1,445 1,419

TECHM 395 402 398 395 392 388

TORNTPHARM 1,270 1,306 1,289 1,275 1,262 1,245

MGL 984 1,003 992 982 973 962

BAJAJ-AUTO 2,816 2,868 2,842 2,821 2,800 2,773

BALKRISIND 1,632 1,683 1,653 1,628 1,604 1,574

CEATLTD 1,849 1,896 1,867 1,843 1,820 1,791

ONGC 164 169 167 165 163 161

HCC 40 42 41 40 39 38

ORIENTBANK 150 153 151 150 148 146

RELINFRA 511 543 525 511 497 479

BHARTIARTL 411 430 419 410 401 390

DIVISLAB 721 785 753 726 700 667

MCX 1,128 1,177 1,145 1,120 1,094 1,062

MINDTREE 484 496 489 484 478 471

GAIL 377 391 384 379 373 366

NMDC 123 128 125 123 120 117

SYNDIBANK 77 79 77 76 75 74

TATAELXSI 1,684 1,731 1,705 1,684 1,664 1,638

GRANULES 142 150 146 143 140 136

LKP Advisory

DISCLAIMERS AND DISCLOSURES

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