Institutional Equity Research NIFTY 15576 IN FOCUS June 03 2021 Support 15492 Stock in Focus BHARAT ELECTRONICS MARKET LENS 15407 Intraday Pick BIOCON Resistance 15629 Intraday Pick HDFCLIFE 15682 Intraday Pick M&M EQUITY INDICES Indices Absolute Change Percentage Change Domestic Last Trade Change 1-D 1-Mth YTD BSE Sensex 51,849 (85.4) (0.2%) 7.5% 8.6% CNX Nifty 15,576 1.4 0.0% 7.5% 11.4% S&P CNX 500 13,274 63.9 0.5% 7.9% 15.2% SENSEX 50 16,314 0.6 0.1% 7.5% 11.4% International Last Trade Change 1-D 1-Mth YTD DJIA 34,600 25.1 0.1% 1.4% 13.1% NASDAQ 13,756 19.9 0.1% 0.9% 6.7% NIKKEI 29,087 140.4 0.5% 0.9% 6.0% HANGSENG 29,265 (3.3) (0.1%) 2.5% 7.4% ADRs / GDRs Last Trade Change 1-D 1-Mth YTD Dr. Reddy’s Lab (ADR) 72.4 (0.4) (0.5%) 4.8% 1.5% STOCK IN FOCUS Tata Motors (ADR) 22.3 0.6 2.5% 14.8% 77.3% f Bharat Electronics (BEL) is the key beneficiary of the government’s Infosys (ADR) 19.3 0.0 0.1% 6.5% 13.8% “Atmanirbhar Bharat” and “Make in India” initiatives. The ICICI Bank (ADR) 17.9 (0.0) (0.1%) 12.4% 20.7% HDFC Bank (ADR) 76.4 0.4 0.5% 10.5% 5.8% Government of India (GoI) is committed to defence modernization Axis Bank (GDR) 50.5 (1.0) (1.9%) 7.8% 19.4% and indigenization, going ahead which is likely to benefit the defence Reliance Ind (GDR) 60.6 0.9 1.5% 16.8% 10.7% companies like BEL. COMMODITY MARKET f BEL is well-placed to leverage its expertise in growing defense capex Key Commodities Last Trade Change 1-D 1-Mth YTD led by: (1) strong execution track record with large manufacturing Brent Crude ($/bl) 71.7 0.5 0.6% 4.1% 38.4% base; (2) preferred vendor for the GoI’s orders being a PSU; (3) addition Silver ($/Oz) 28.3 0.1 0.4% 6.6% 6.7% of innovative products; (4) collaboration with foreign partners; and (5) Gold ($/Oz) 1,910.3 0.4 (0.0%) 7.4% 0.2% strong focus on R&D. Copper LME ($/MT) 10,142.0 30.3 0.3% 2.0% 30.8% f Its order book stood at Rs548bn at the end of 3QFY21, which along Aluminium LME ($/MT) 2,449.0 12.8 0.6% 0.9% 23.7% with healthy book to- bill ratio (4.2x of TTM revenue) provides CURRENCY RATES adequate revenue visibility for the next couple of years. Last Trade Change 1-D 1-Mth YTD f The management is confident of clocking double-digit revenue USD/INR 73.4 0.23 0.3% (1.2%) 0.2% growth over the next decade aided by business opportunities in both EUR/INR 89.3 (0.11) (0.1%) 0.1% (0.7%) defence and non-defence segments. RATES f We have BUY rating on the stock with 2-Year Target Price of Last Trade Change 1-D 1-Mth YTD Rs170. T-Bill - 91 D 3.4 0.00 0.00 0.03 0.11 10 Year G-sec Yield 6.0 (0.02) 0.00 (0.00) 0.02 Intraday Picks BIOCON (PREVIOUS CLOSE: 388) BUY INVESTMENT ACTIVITY (RS. CR) For today’s trade, long position can be initiated in the range of Rs 384- Category BUY SELL NET Prev 386 for the target of Rs.398 with a strict stop loss of Rs 381. FII 11,510.8 10,589.7 921.1 (449.9) DII 4,657.4 4,415.6 241.8 230.5 HDFCLIFE (PREVIOUS CLOSE: 676) BUY For today’s trade, long position can be initiated in the range of Rs 668- EXCHANGE TURNOVER 672 for the target of Rs.2450 with a strict stop loss of Rs 660. Exchange Rs Crore BSE Equity 5,452.2 M&M (PREVIOUS CLOSE: 810) SELL BSE Derivatives 3,32,028.2 For today’s trade, short position can be initiated in the range of Rs 818- NSE Equity 74,428.2 824 for the target of Rs.800 with a strict stop loss of Rs 832. NSE Derivatives 43,28,023.3 1 Institutional Equity Research NIFTY 15576 IN FOCUS June 03 2021 Support 15492 Stock in Focus BHARAT ELECTRONICS MARKET LENS 15407 Intraday Pick BIOCON Resistance 15629 Intraday Pick HDFCLIFE 15682 Intraday Pick M&M Technical Research MARKET SYNOPSIS f On Wednesday, NSE-NIFTY declined gradually post a dull start and slipped to 15,460-level. In the late trades, the index bounced and managed to erase intraday loss. Finally, the index finished trade with the gain of 1 point at 15,576-level. f NSE Cash segment reported turnover of Rs74,428 crore as compared to Rs64,176 crore reported earlier. f Overall market breadth was positive, where 1,376 stocks advanced against 589 declined stocks. f Mixed trend was observed across sectoral indices during the day, where Metal and PSU Bank emerged as top gainers with the increase of 2.2% and 3%, respectively. However none of the sectoral indices has reported loss of more than 1%. NSE-NIFTY OUTLOOK f We believe NIFTY is poised for a breakout from its upper band of the rising channel, which could take the index towards 15,800-level initially and 16,000-level subsequently. Yesterday, the index slipped to 15,460-level respecting prior daily formation-spinning top. Later, the index erased intraday loss with the help of late trade rebound. Due to late trade reversal in the index, the key technical indicators on the near-term timeframe chart reversed after testing their threshold level and are positively poised. Hence, we believe the index is poised for a breakout. On the lower side, the index will continue to find support at around 15,430-level. f As for the day, support is placed at around 15,492 and then at 15,407 levels, while resistance is observed at 15,629 and then at 15,682 levels. 2 Institutional Equity Research NIFTY 15576 IN FOCUS June 03 2021 Support 15492 Stock in Focus BHARAT ELECTRONICS MARKET LENS 15407 Intraday Pick BIOCON Resistance 15629 Intraday Pick HDFCLIFE 15682 Intraday Pick M&M Derivatives Snapshot f NIFTY50 opened higher on back of positive global cues and continued its positive momentum to close near the high point of the day. Nifty closed up by 1 point at 15,576 levels. Among the nifty stocks 27 advanced and 23 declined during the day. f Among sectors it was a mixed bag with FMCG and IT to decline by 0.5% average while Auto and Metals gained by 2% average for the day. f Broader market indices remained flat with NIFTY 100, 200 and 500 to close down by 0.3% average while midcap indices and small cap indices gained by 1.5% for the day. f Nifty Jun futures end with 41 points premium at 15,617 mark while on other hand, Bank Nifty Jun futures ended with the premium of 150 points at 35,524 mark. f Nifty has closed at the higher end of the range and we expect markets to trade volatile ahead of the credit policy and weekly expiry. Nifty 15300 would continue to act as strong support from current levels. Sectoral Activity: Amongst sectoral index PSU Banks and Metals remained in focus with positive momentum. Stock Activity: SBI and NMDC have witnessed long buildup in today’s trade. 3 Institutional Equity Research NIFTY 15576 IN FOCUS June 03 2021 Support 15492 Stock in Focus BHARAT ELECTRONICS MARKET LENS 15407 Intraday Pick BIOCON Resistance 15629 Intraday Pick HDFCLIFE 15682 Intraday Pick M&M Pivot Table Name LTP Support 2 Support 1 Pivot Resistance 1 Resistance 2 SENSEX 51849 51275 51562 51738 52025 52201 NIFTY 15576 15407 15492 15545 15629 15682 BANKNIFTY 35374 34941 35157 35287 35503 35632 ADANIPORTS 812 792 802 813 823 834 ASIANPAINT 2904 2848 2876 2905 2933 2961 AXISBANK 737 728 732 739 743 750 BAJAJ-AUTO 4295 4161 4228 4267 4334 4373 BAJAJFINSV 11824 11637 11730 11795 11889 11954 BAJFINANCE 5809 5696 5752 5799 5855 5901 BHARTIARTL 530 524 527 531 533 537 BPCL 475 467 471 473 477 479 BRITANNIA 3475 3429 3452 3469 3492 3509 CIPLA 955 940 947 954 961 968 COALINDIA 149 146 147 149 150 152 DIVISLAB 4214 4169 4192 4224 4246 4278 DRREDDY 5312 5245 5279 5316 5350 5387 EICHERMOT 2678 2614 2646 2670 2702 2726 GAIL 159 154 157 160 162 166 GRASIM 1442 1412 1427 1441 1456 1470 HCLTECH 944 931 937 944 950 957 HDFC 2562 2508 2535 2558 2586 2609 HDFCBANK 1504 1485 1495 1502 1512 1520 HDFCLIFE 676 657 667 672 682 687 HEROMOTOCO 2973 2918 2945 2969 2996 3020 HINDALCO 399 383 391 397 405 411 HINDUNILVR 2359 2337 2348 2361 2372 2384 ICICIBANK 648 638 643 646 651 655 INDUSINDBK 1028 994 1011 1021 1038 1047 INFY 1379 1352 1365 1379 1392 1405 IOC 111 109 110 111 112 112 ITC 209 206 208 210 211 214 JSWSTEEL 706 691 699 704 711 716 KOTAKBANK 1783 1759 1771 1782 1794 1805 LT 1471 1447 1459 1467 1479 1486 M&M 806 797 802 807 811 817 MARUTI 7185 7014 7100 7149 7234 7283 NESTLEIND 17654 17356 17505 17659 17808 17962 NTPC 111 110 110 111 112 112 ONGC 118 114 116 118 119 121 POWERGRID 227 223 225 227 229 231 RELIANCE 2201 2137 2169 2189 2222 2242 SBILIFE 984 950 967 980 997 1010 SBIN 437 426 432 435 440 444 SHREECEM 27894 27364 27629 27818 28084 28273 SUNPHARMA 677 667 672 675 680 683 TATAMOTORS 323 312 318 321 326 330 TATASTEEL 1124 1093 1109 1119 1135 1145 TCS 3129 3090 3110 3135 3154 3179 TECHM 1017 981 999 1012 1030 1043 TITAN 1586 1550 1568 1582 1600 1615 ULTRACEMCO 6594 6488 6541 6606 6659 6723 UPL 838 799 818 830 849 860 WIPRO 543 528 536 540 548 552 4 Institutional Equity Research NIFTY 15576 IN FOCUS June 03 2021 Support 15492 Stock in Focus BHARAT ELECTRONICS MARKET LENS 15407 Intraday Pick BIOCON Resistance 15629 Intraday Pick HDFCLIFE 15682 Intraday Pick M&M Simple Moving Average Scrip Name Close Rate 20-SMA 50-SMA 100-SMA 200-SMA HIGH_52WEEK LOW_52WEEK SENSEX 51849 50164 49482 49723 45670 52517 32348 NIFTY 15576 15085 14805 14767 13501 15661 9544 BANKNIFTY 35374 33946 33225 33726 29751 37709 19507 ADANIPORTS 812 765 751 680 532 885 298 ASIANPAINT 2904 2777 2638 2571 2374 2990 1578 AXISBANK 737 723 703 709 615 799 360 BAJAJ-AUTO 4295 4049 3825 3857 3468 4361 2610 BAJAJFINSV 11824 11396 10451 10021 8516 12025 4900 BAJFINANCE 5809 5581 5266 5270 4622 5845 2199 BHARTIARTL 530 542 536 551 515 623 394 BPCL 475 457 436 430 406 488 325 BRITANNIA 3475 3450 3548 3523 3595 4010 3306 CIPLA 955 915 883 853 809 966 616 COALINDIA 149 146 137 139 133 163 110 DIVISLAB 4214 4089 3857 3728 3534 4284 2090 DRREDDY