Daily Morning Note

10 February 2021

Current % % Markets to focus on global cues Indices Value 1 D YTD Sensex 51329 -0.04 7.49 Asian markets are trading higher amid optimism about a global recovery supporting Nifty 15109 -0.04 8.06 BSE Midcap 19670 -0.18 9.63 investor sentiments. Nikkei is trading higher by 0.09%, Hang Seng is trading higher BSE Small cap 19339 -0.26 6.86 by 1.45% and Shanghai is trading higher by 0.65%. Indian indices are expected to SGX Nifty Fut. 15161 0.09 Sectors – Performance (BSE) open in the green. Sgx Nifty is trading higher by 0.42%. Auto 32904 1.43 8.26 Metal 1466 0.99 15.59 The US markets ended little changed amid profit taking while Optimism about more Telecom 22181 0.55 18.33 FMCG 24616 -1.43 18.28 fiscal stimulus restricted the downside. The Dow Jones lost 10 points or 0.03% to Healthcare 2748 -0.72 10.87 close at 31,376 while the NASDAQ gained 20 points or 0.14% to close at 14,008. Bankex 12623 -0.66 0.11 What to watch Nifty CMP % Chg Gainers/Losers  Results Today: , Titan Company, GAIL , Hindalco ASIANPAINT 2507 3.7 Industries, , ABB India, Asian Granito India, , SBILIFE 889 3.4 Bata India, BEML, Gujarat State Petronet, Happiest Minds Technologies, HDFCLIFE 705 3.0 , Metropolis Healthcare, NBCC India, RITES, Shalimar IOC 98 (6.1) Paints, SpiceJet, Ujjivan Financial Services. M&M 895 (3.6)  India, China Held Bilateral Consultations on UNSC Issues TATAMOTORS 325 (3.2)  Indian Railways achieves record freight loading of 119.79 MT in January 21  India’s January Oil Products Consumption Falls 2.8% Y/y FII Trading activities in Cash Date Net MTD CYTD Corporate FII 09-02 1300 14834 88722  expands women's health portfolio through the acquisition of four key DII 09-02 (1756) (6203) (52860) brands from Wanbury. These brands have a market size of Rs 3,100 cr in India Figs. in Rs Cr., Source: Bloomberg. with a sales value of Rs 59.6 cr.

Current % %  UltraTech Cement to consider raising via NCDs aggregating to Rs 250 crore Global Indices Value 1 D YTD on Feb. 12. Dow Jones 31376 (0.03) 2.51  Phoenix Mills has announced the acquisition of approximately 7.48 acres of Nasdaq 14008 0.14 8.69 prime land in Alipore, for a total consideration of Rs. 3,00 Cr. DAX 14012 (0.34) 2.14  Hindustan Aeronautics has signed agreements with SC Rosoboronexport, Nikkei 225 29481 (0.08) 7.42 Indian Coast Guard, IIT Kanpur and Turbo Aviation for various services. FTSE 100 6532 0.12 1.10  Lumax Auto Technologies: has signed a JV deal with Japan’s Yokowo to Hang Seng 29915 1.49 9.86 manufacture and supply antennas and other vehicle communication products. Shanghai 3635 0.87 4.66 Source: Bloomberg; As on 7:30 am IST The company also signed MoU with China’s Ananda Drive Techniques for the Forex Rate manufacturing of electric vehicle products. INR/USD 72.88 0.12 0.26  Mastek to acquire the middle east business of evolutionary systems Arabia FZ INR/EUR 88.25 -0.55 1.71 LLC through its group company for $65 million. INR/GBP 100.43 -0.42 -0.62  J&K Bank board has approved raising Rs 500 crore through preferential share INR/YEN (100) 69.62 -0.42 1.58 allotment.  IRCON International board to consider bonus issue, interim dividend on 15th Feb.

For private circulation only 1

Trading Insights

Insight from trading volumes

Total Volume Monthly Avg Script CMP % Change (x1000) Volume(x1000)

BPCL 419 23390 9633 143%

ASIANPAINT 2507 7578 3490 117%

SBILIFE 889 4444 2135 108%

HDFCLIFE 705 7527 3657 106%

SHREECEM 28166 140 79 76%

HINDALCO 278 22921 15351 49%

TATASTEEL 699 30318 21686 40%

Insight from delivery

Total Delivery Monthly Avg Delivery Script CMP %Change Volume(x1000) Volume(x1000)

BRITANNIA 3462 1056 419 152%

SHREECEM 28166 53 22 144%

DRREDDY 4844 1094 524 109%

IOC 98 20172 11602 74%

DIVISLAB 3723 784 462 70%

M&M 895 3554 2207 61%

NTPC 100 18848 12021 57%

*CMP-Closing Market Price

For private circulation only 2

Investment Picks

Target % Company Recommendation CMP Price Upside Aarti Drugs Buy 672 825 23 Abbott India Buy 14671 18500 26 Affle India Buy 4210 4800 14 Apcotex Industri Buy 177 204 15 APL Apollo Tubes Buy 948 1054 11 Astral Poly Technik Buy 2032 2277 12 Avenue Supermarts Ltd Buy 2923 3250 11 Buy 599 737 23 Buy 405 505 25 Britannia Inds Buy 3464 4170 20 Can Fin Homes Buy 500 573 15 CCL Products Buy 249 325 31 Cholamandalam Invst Buy 459 505 10 Buy 167 216 30 Colgate Palmolive Buy 1585 1745 10 India Buy 525 610 16 Dhanuka Agritech Buy 780 880 13 Escorts Buy 1428 1600 12 Buy 83 93 12 HCL Tech Buy 952 1088 14 Hero MotoCorp Buy 3498 3850 10 Buy 2217 2636 19 Tech Buy 1305 1666 28 Bank Buy 66 75 14 L&T Infotech Buy 4068 4501 11 Lupin Ltd Buy 1058 1225 16 Manappuram Fin Buy 173 207 20 Minda Corp Buy 94 121 29 Mold-Tek Pack Buy 355 435 22 Nippon Life Ind. Buy 327 360 10 NOCIL Buy 152 176 16 P I Industries Buy 2225 2460 11 Rites Buy 255 317 24 SBI Life Buy 889 1076 21 Solara Active Buy 1507 1670 11

For private circulation only 3

Investment Picks

Target % Company Recommendation CMP Price Upside St Bk of India Buy 395 477 21 Star Cement Ltd Buy 97 115 19 Steel Strips Buy 626 877 40 TCS Buy 3176 3550 12 Buy 975 1116 14 Buy 678 786 16 Ujjivan Small Finance Bank Buy 36 47 31 Buy 895 1005 12 Buy 439 522 19

For private circulation only 4

Index CMP % up/dn S2 S1 P R1 R2 Nifty 15,109.30 -0.04% 14950 15030 15145 15225 15335

Sensex 51329.08 -0.04% 50810 51070 51455 51710 52095

Bank Nifty 36056.50 0.20% 35215 35635 36055 36475 36895

Nifty opened on a positive note and extended buying momentum in the first half however heavy selling in the second half led the index to close on a negative note. Nifty closed at 15109 with a loss of 7 points.

On the daily chart the index has formed a bearish candle with long upper shadow indicating selling pressure as well as resistance at higher levels. The index continues to move in a Higher Top and Higher Bottom formation on the hourly chart indicating positive bias. The chart pattern suggests that if Nifty breaks and sustains below 15000 level it would witness selling which would lead the index towards 14800-14500 levels. Important Resistances for the day are placed at 15300-15400. Nifty is trading above its 20 day SMA which indicates positive bias in the short term. Nifty continues to remain in an uptrend in the medium and long term, so buying on dips continues to be our preferred strategy.

The daily strength indicator RSI has turned positive from the oversold territory and is above its reference line indicating sustained uptrend.

The trend deciding level for the day is 15145. If NIFTY trades above this level then we may witness a further rally up to 15225- 15335-15415 levels. However, if NIFTY trades below 15145 levels then we may see some profit booking initiating in the market, which may correct up to 15030-14950-14835 levels

STOCK IDEAS FOR THE DAY

Company Name Buy / Sell Range Stop Loss Target DEEPAKNTR Buy above 1047 1037 1060-1070 DRREDDY Sell below 4805 4855 4750-4700 Note- Stocks Ideas are based on previous day’s close and are activated only if they trade in buy/sell range.

For private circulation only 5

Daily Support/ Resistance of Nifty Companies Company CMP Pivot Point R1 R2 S1 S2 NIFTY 50 15109 15144 15223 15336 15030 14951 ADANIPORTS 582 582 591 600 573 564 ASIANPAINT 2507 2488 2552 2597 2443 2379 AXISBANK 743 740 753 764 729 716 BAJAJ-AUTO 4155 4185 4225 4295 4115 4075 BAJAJFINSV 9942 9972 10062 10182 9852 9763 BAJFINANCE 5400 5442 5503 5606 5339 5277 BHARTIARTL 599 601 606 613 593 588 BPCL 419 425 433 446 411 403 BRITANNIA 3462 3475 3495 3527 3443 3423 CIPLA 842 846 853 864 835 828 COALINDIA 139 140 142 145 137 136 DIVISLAB 3723 3756 3807 3891 3672 3621 DRREDDY 4844 4848 4892 4939 4801 4757 EICHERMOT 2948 2967 2999 3050 2916 2885 GAIL 131 132 133 135 130 129 GRASIM 1218 1216 1228 1239 1206 1194 HCLTECH 952 960 973 995 938 925 HDFC 2747 2747 2784 2820 2711 2674 HDFCBANK 1612 1609 1631 1650 1590 1568 HDFCLIFE 705 701 714 723 692 679 HEROMOTOCO 3499 3498 3539 3579 3458 3417 HINDALCO 278 280 284 290 274 270 HINDUNILVR 2216 2227 2244 2271 2200 2183 ICICIBANK 633 635 641 649 627 621 INDUSINDBK 1026 1032 1045 1063 1014 1001 INFY 1306 1312 1326 1346 1291 1277 IOC 98 98 99 101 97 95 ITC 229 232 236 243 225 221 JSWSTEEL 406 409 417 428 399 391 KOTAKBANK 1949 1954 1970 1991 1933 1917 LT 1566 1562 1579 1591 1550 1533 M&M 895 907 927 960 874 854 MARUTI 7627 7627 7679 7732 7574 7522 NESTLEIND 17319 17327 17503 17687 17142 16966 NTPC 100 100 101 102 99 99 ONGC 101 101 103 105 99 98 POWERGRID 211 213 216 220 208 205 RELIANCE 1956 1966 1980 2004 1942 1928 SBILIFE 889 883 901 914 870 852 SBIN 395 396 402 410 388 381 SHREECEM 28166 28034 28707 29249 27492 26819 SUNPHARMA 624 628 635 646 617 610 TATAMOTORS 325 328 335 345 319 312 TATASTEEL 699 702 713 727 688 678 TCS 3177 3196 3226 3275 3146 3116 TECHM 975 981 994 1013 962 948 TITAN 1560 1564 1580 1600 1544 1528 ULTRACEMCO 6420 6424 6477 6533 6368 6315 UPL 539 543 551 564 531 523 WIPRO 439 442 449 458 433 426

Source: Axis Direct.

For private circulation only 6

Disclosures:

The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).

1. Axis Securities Ltd. (ASL) is a SEBI Registered Research Analyst having registration no. INH000000297. ASL, the Research Entity (RE) as defined in the Regulations, is engaged in the business of providing Stock broking services, Depository participant services & distribution of various financial products. ASL is a subsidiary company of Ltd. Axis Bank Ltd. is a listed public company and one of India’s largest private sector bank and has its various subsidiaries engaged in businesses of Asset management, NBFC, Merchant Banking, Trusteeship, Venture Capital, Stock Broking, the details in respect of which are available on www.axisbank.com. 2. ASL is registered with the Securities & Exchange Board of India (SEBI) for its stock broking & Depository participant business activities and with the Association of Mutual Funds of India (AMFI) for distribution of financial products and also registered with IRDA as a corporate agent for insurance business activity. 3. ASL has no material adverse disciplinary history as on the date of publication of this report. 4. I/We, authors (Research team) and the name/s subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect my/our views about the subject issuer(s) or securities. I/We (Research Analyst) also certify that no part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report. I/we or my/our relative or ASL or its Associate does not have any financial interest in the subject company. Also I/we or my/our relative or ASL or its Associates may have beneficial ownership of 1% or more in the subject company at the end of the month immediately preceding the date of publication of the Research Report. Since associates of ASL are engaged in various financial service businesses, they might have financial interests or beneficial ownership in various companies including the subject company/companies mentioned in this report. I/we or my/our relative or ASL or its associate does not have any material conflict of interest. I/we have not served as director / officer, etc. in the subject company in the last 12-month period.

Research Team Sr. No Name Designation E-mail 1 Rajesh Palviya Technical & Derivative Analyst - (Head) [email protected] 2 Vaishnavi Jagtap Technical Analyst [email protected] 3 Rahil Vora Derivative Analyst [email protected] 4 Hemang Gor Derivative Analyst [email protected] 5 Hiren Trivedi Research Associate [email protected]

5. ASL or its Associates has not received any compensation from the subject company in the past twelve months. I/We or ASL or its Associate has not been engaged in market making activity for the subject company. 6. In the last 12-month period ending on the last day of the month immediately preceding the date of publication of this research report, ASL or any of its associates may have: i. Received compensation for investment banking, merchant banking or stock broking services or for any other services from the subject company of this research report and / or; ii. Managed or co-managed public offering of the securities from the subject company of this research report and / or; iii. Received compensation for products or services other than investment banking, merchant banking or stock broking services from the subject company of this research report;

ASL or any of its associates have not received compensation or other benefits from the subject company of this research report or any other third-party in connection with this report.

Term& Conditions: This report has been prepared by ASL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of ASL. The report is based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in nature. The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty, representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. ASL will not treat recipients as customers by virtue of their receiving this report.

For private circulation only 7

Disclaimer:

Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to the recipient’s specific circumstances. The securities and strategies discussed and opinions expressed, if any, in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient.

This report may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this report should make such investigations 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), and should consult its own advisors to determine the merits and risks of such an investment. Certain transactions, including those involving futures, options and other derivatives as well as non-investment grade securities involve substantial risk and are not suitable for all investors. ASL, its directors, analysts or employees do not take any responsibility, financial or otherwise, of the losses or the damages sustained due to the investments made or any action taken on basis of this report, including but not restricted to, fluctuation in the prices of shares and bonds, changes in the currency rates, diminution in the NAVs, reduction in the dividend or income, etc. Past performance is not necessarily a guide to future performance. Investors are advise necessarily a guide to future performance. Investors are advised to see Risk Disclosure Document to understand the risks associated before investing in the securities markets. Actual results may differ materially from those set forth in projections. Forward-looking statements are not predictions and may be subject to change without notice.

ASL and its affiliated companies, their directors and employees may; (a) from time to time, have long or short position(s) in, and buy or sell the securities of the company(ies) mentioned herein or (b) be engaged in any other transaction involving such securities or earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or investment banker, lender/borrower to such company(ies) or may have any other potential conflict of interests with respect to any recommendation and other related information and opinions. Each of these entities functions as a separate, distinct and independent of each other. The recipient should take this into account before interpreting this document.

ASL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report should be aware that ASL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. ASL may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report.

Neither this report nor any copy of it may be taken or transmitted into the United State (to U.S. Persons), Canada, or Japan or distributed, directly or indirectly, in the United States or Canada or distributed or redistributed in Japan or to any resident thereof. If this report is inadvertently sent or has reached any individual in such country, especially, USA, the same may be ignored and brought to the attention of the sender. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject ASL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors.

The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as endorsement of the views expressed in the report. The Company reserves the right to make modifications and alternations to this document as may be required from time to time without any prior notice. The views expressed are those of the analyst(s) and the Company may or may not subscribe to all the views expressed therein.

Copyright in this document vests with Axis Securities Limited. Axis Securities Limited, SEBI Single Reg. No.- NSE, BSE & MSEI – INZ000161633, ARN No. 64610, CDSL-IN-DP-CDSL-693-2013, SEBI- Research Analyst Reg. No. INH 000000297, SEBI Portfolio Manager Reg. No.- INP000000654, Main/Dealing off.- Unit No. 2, Phoenix Market City, 15, LBS Road, Near Kamani Junction, Kurla (west), -400070, Tel No. – 022 40508080 / 022 61480808, Reg. off.- Axis House, 8th Floor, Wadia International Centre, PandurangBudhkar Marg, Worli, Mumbai – 400 025.Compliance Officer: AnandShaha, E-Mail ID: [email protected],Tel No: 022-42671582.

For private circulation only 8