Institutional Equity Research NIFTY 15301 IN FOCUS May 27 2021 Support 15224 Stock in Focus BAJAJ FINANCE MARKET LENS 15147 Intraday Pick MARUTI Resistance 15349 Intraday Pick SUNTV 15397 Intraday Pick BALKRISIND EQUITY INDICES Indices Absolute Change Percentage Change Domestic Last Trade Change 1-D 1-Mth YTD BSE Sensex 51,018 380.0 0.8% 2.6% 6.8% CNX Nifty 15,301 93.0 0.6% 2.9% 9.4% S&P CNX 500 13,022 59.2 0.5% 4.0% 13.1% SENSEX 50 16,024 99.0 0.6% 3.0% 9.5% International Last Trade Change 1-D 1-Mth YTD DJIA 34,323 10.6 0.0% 1.5% 12.1% NASDAQ 13,738 80.8 0.6% (2.2%) 6.6% NIKKEI 28,469 (173.2) (0.6%) (2.0%) 3.7% HANGSENG 29,177 20.9 0.1% 0.4% 7.2% ADRs / GDRs Last Trade Change 1-D 1-Mth YTD Dr. Reddy’s Lab (ADR) 72.0 (0.8) (1.1%) 5.8% 1.0% STOCK IN FOCUS Tata Motors (ADR) 21.8 0.4 1.8% 6.5% 72.7% f BAF is focused on the mass-affluent segment. Additionally, it Infosys (ADR) 19.3 0.5 2.8% 5.7% 13.6% ICICI Bank (ADR) 18.0 0.3 1.7% 7.2% 20.9% enjoys significant pricing power in its shorter-tenor and small-ticket HDFC Bank (ADR) 74.0 1.0 1.3% (0.4%) 2.4% unsecured loans, as the change in EMI (for each percentage point Axis Bank (GDR) 50.6 0.4 0.8% 7.6% 19.6% increase in interest rate) is lower for the short-tenor small-ticket loans. Reliance Ind (GDR) 54.3 0.2 0.3% (0.6%) (0.8%) f Even though it has the lion’s share in consumer durable financing COMMODITY MARKET and OEM subvention, the household debt – as a percentage of debt Key Commodities Last Trade Change 1-D 1-Mth YTD – is still small in India compared to even its Asian peers. Thus, the Brent Crude ($/bl) 68.5 (0.3) (0.4%) 1.7% 32.1% company will remain a growth organization in the near-term and we Silver ($/Oz) 27.6 (0.2) (0.8%) 5.8% 4.2% model an AUM growth of ~23%-26% over FY22E-FY24E. Gold ($/Oz) 1,894.5 (6.7) (0.4%) 6.8% (0.3%) Copper LME ($/MT) 9,942.3 (18.0) (0.1%) 0.9% 28.2% f Its financial ecosystem offering can potentially be a game-changer Aluminium LME ($/MT) 2,404.3 (9.5) (0.4%) 0.2% 21.4% from FY23 onwards, as it positions itself well for a potential banking CURRENCY RATES license. Further, the business transformation programme instituted Last Trade Change 1-D 1-Mth YTD by the company can lead to sustainable improvement in operating USD/INR 72.8 (0.14) (0.2%) (2.1%) (0.6%) efficiency and will give further fillip to its sourcing, underwriting and EUR/INR 89.2 0.14 0.2% (0.6%) (0.8%) collections. RATES f We have a BUY rating on BAF with a 2-Year Target Price of Last Trade Change 1-D 1-Mth YTD Rs6,650 (valuing the standalone entity at 6x of FY24E P/BV). T-Bill - 91 D 3.4 0.03 0.00 0.02 0.11 10 Year G-sec Yield 6.0 0.00 0.00 (0.01) 0.01 Intraday Picks MARUTI (PREVIOUS CLOSE: 7,034) BUY INVESTMENT ACTIVITY (RS. CR) For today’s trade, long position can be initiated in the range of Rs7,005- Category BUY SELL NET Prev 6-970 for the target of Rs7,140 with a strict stop loss of Rs6,915. FII 5,114.1 4,872.5 241.6 959.8 DII 3,623.9 4,062.5 (438.6) (563.6) SUNTV (PREVIOUS CLOSE: 539) BUY For today’s trade, long position can be initiated in the range of Rs536- EXCHANGE TURNOVER 530 for the target of Rs553 with a strict stop loss of Rs524. Exchange Rs Crore BSE Equity 4,997.6 BALKRISIND (PREVIOUS CLOSE: 2,165) SELL BSE Derivatives 3,20,170.5 For today’s trade, short position can be initiated in the range of Rs2,178- NSE Equity 69,144.7 2,195 for the target of Rs2,120 with a strict stop loss of Rs2,215. NSE Derivatives 42,80,251.8 1 Institutional Equity Research NIFTY 15301 IN FOCUS May 27 2021 Support 15224 Stock in Focus BAJAJ FINANCE MARKET LENS 15147 Intraday Pick MARUTI Resistance 15349 Intraday Pick SUNTV 15397 Intraday Pick BALKRISIND Technical Research MARKET SYNOPSIS f On Wednesday, NSE-NIFTY bounced after an initial decline and managed to hold higher level with the help of narrow range consolidation. Finally, the index finished trade with the gain of 93 points at 15,301-level. f NSE Cash segment reported turnover of Rs69,145 crore as compared to Rs73,500 crore reported earlier. f Overall market breadth remained positive, where 1,247 stocks advanced against 736 declined stocks. f Mixed trend was observed across sectoral indices during the day, where IT, Media and Realty emerged as top gainers with the increase of 1.8%-2.8%. However Metal emerged as a top loser with the decrease of 1.9%. NSE-NIFTY OUTLOOK f We believe NIFTY will move higher towards its life-time-high of 15,432-level. Yesterday, the index invalidated prior bearish formation- Shaven Head and settled at around its near-term hurdle of 15,300-level. The key technical indicators on the near-term timeframe chart reversed before testing their threshold level and are positively poised. Hence, we believe the index will move higher. On the lower side, the index will find support at around 15,150-level initially and 15,000-level subsequently. f As for the day, support is placed at around 15,224 and then at 15,147 levels, while resistance is observed at 15,349 and then at 15,397 levels. 2 Institutional Equity Research NIFTY 15301 IN FOCUS May 27 2021 Support 15224 Stock in Focus BAJAJ FINANCE MARKET LENS 15147 Intraday Pick MARUTI Resistance 15349 Intraday Pick SUNTV 15397 Intraday Pick BALKRISIND Derivatives Snapshot f NIFTY bounced after an initial decline and managed to hold higher level with the help of narrow range consolidation. Finally, the index finished trade with the gain of 93 points at 15,301-level. Among the nifty stocks 31 advanced and 18 declined during the day. f Mixed trend was observed across sectoral indices during the day, where IT, Media and Realty emerged as top gainers with the increase of 1.8%-2.8%. However Metal emerged as a top loser with the decrease of 1.9%. f Broader market indices remained positive with NIFTY 100, 200 and 500 to close up by 0.5% average while midcap indices and small cap indices gained by 0.1% and 0.6%, respectively for the day. f Nifty May futures end with 2 points premium at 15,303 mark while on other hand, Bank Nifty May futures ended with the premium of 40 points at 34,724 mark. f We believe NIFTY will move higher towards its life-time-high of 15,432-level. There could be some volatility with respect to rollover movement in individual sectors and stocks. Sectoral Activity: Amongst sectoral index IT and Media remained in focus with positive momentum. Stock Activity: NAUKRI and SUN TV have witnessed long buildup in today’s trade. 3 Institutional Equity Research NIFTY 15301 IN FOCUS May 27 2021 Support 15224 Stock in Focus BAJAJ FINANCE MARKET LENS 15147 Intraday Pick MARUTI Resistance 15349 Intraday Pick SUNTV 15397 Intraday Pick BALKRISIND Pivot Table Name Close Rate R2 R1 Pivot S1 S2 SENSEX 51,018 51,356 51,187 50,904 50,734 50,451 Nifty 50 15,301 15,352 15,280 15,222 15,150 15,091 NiftyBank 34,684 35,448 35,055 34,733 34,340 34,017 ADANIPORTS 758 784 774 767 756 749 ASIANPAINT 2,942 2,987 2,950 2,887 2,851 2,787 AXISBANK 735 753 742 734 723 715 BAJAJ-AUTO 4,166 4,205 4,178 4,159 4,132 4,113 BAJAJFINSV 11,906 11,531 11,453 11,327 11,250 11,124 BAJFINANCE 5,771 5,697 5,658 5,620 5,581 5,543 BHARTIARTL 526 533 530 527 523 521 BPCL 472 484 479 474 469 464 BRITANNIA 3,416 3,486 3,463 3,424 3,401 3,362 CIPLA 945 945 940 935 930 925 COALINDIA 146 151 149 148 146 145 DIVISLAB 4,099 4,159 4,129 4,107 4,076 4,054 DRREDDY 5,285 5,360 5,336 5,295 5,271 5,230 EICHERMOT 2,634 2,677 2,651 2,608 2,582 2,539 GRASIM 1,409 1,421 1,398 1,376 1,353 1,331 HCLTECH 946 949 945 940 936 931 HDFC 2,568 2,588 2,559 2,541 2,513 2,495 HDFCBANK 1,477 1,531 1,505 1,488 1,462 1,444 HDFCLIFE 659 680 670 663 653 647 HEROMOTOCO 2,965 2,965 2,947 2,927 2,910 2,890 HINDALCO 381 403 397 393 387 383 HINDUNILVR 2,354 2,382 2,363 2,351 2,331 2,319 ICICIBANK 653 658 654 648 645 639 INDUSINDBK 998 1,027 1,010 996 980 966 INFY 1,397 1,375 1,368 1,361 1,355 1,348 IOC 112 113 112 111 109 108 ITC 211 215 213 212 210 208 JSWSTEEL 682 728 714 701 688 675 KOTAKBANK 1,741 1,790 1,770 1,754 1,734 1,718 LT 1,473 1,472 1,461 1,452 1,441 1,432 M&M 821 836 823 816 804 796 MARUTI 7,034 6,976 6,944 6,916 6,884 6,856 NESTLEIND 17,541 17,902 17,709 17,566 17,373 17,229 NTPC 111 116 114 114 113 112 ONGC 113 119 117 115 113 112 POWERGRID 226 236 235 233 231 230 RELIANCE 1,970 2,010 1,987 1,973 1,950 1,936 SBILIFE 972 976 971 967 961 958 SBIN 414 419 416 412 409 405 SHREECEM 27,077 27,527 27,284 27,092 26,849 26,657 SUNPHARMA 704 701 699 695 692 688 TATACONSUM 642 659 654 648 643 637 TATAMOTORS 316 321 318 316 313 311 TATASTEEL 1,082 1,136 1,121 1,110 1,095 1,084 TCS 3,159 3,154 3,134 3,108 3,088 3,062 TECHM 1,008 1,011 1,002 993 984 975 TITAN 1,583 1,600 1,584 1,560 1,544 1,520 ULTRACEMCO 6,581 6,684 6,620 6,574 6,510 6,464 UPL 813 814 805 797 789 781 WIPRO 527 529 523 519 514 510 4 Institutional Equity Research NIFTY 15301 IN FOCUS May 27 2021 Support 15224 Stock in Focus BAJAJ FINANCE MARKET LENS 15147 Intraday Pick MARUTI Resistance 15349 Intraday Pick SUNTV 15397 Intraday Pick BALKRISIND Simple Moving Average Scrip Name Close Rate 20-SMA 50-SMA 100-SMA 200-SMA HIGH_52WEEK LOW_52WEEK SENSEX 50,638 49,410 49,402 49,437 45,144 52,517 30,158 Nifty 50 15,301 14,885 14,764 14,675 13,360 15,432 8,969 NiftyBank 34,684 33,370 33,281 33,463 29,295 37,709 17,105 ADANIPORTS 758 757 745 661 517 885 298 ASIANPAINT 2,942 2,688 2,584 2,566 2,338 2,948 1,501 AXISBANK 735 714 704 701 605 799 333 BAJAJ-AUTO 4,166 3,952 3,778 3,814 3,431 4,361 2,450 BAJAJFINSV 11,906 11,179 10,268 9,870 8,349 11,980 3,985 BAJFINANCE 5,771 5,525 5,245 5,245 4,545 5,822 1,783 BHARTIARTL 526 546 536 550 516 623 394 BPCL 472 444 435 424 405 482 302 BRITANNIA