Institutional Equity Research NIFTY 16496 IN FOCUS August 24 2021 Support 16397 Stock in Focus INDRAPRASTHA GAS MARKET LENS 16298 Intraday Pick CIPLA Resistance 16594 Intraday Pick GAIL 16692 Intraday Pick SBIN EQUITY INDICES Indices Absolute Change Percentage Change Domestic Last Trade Change 1-D 1-Mth YTD BSE Sensex 55,556 226.5 0.4% 4.9% 16.3% CNX Nifty 16,496 46.0 0.3% 4.0% 18.0% S&P CNX 500 13,931 (13.4) (0.1%) 1.8% 20.9% SENSEX 50 17,325 50.8 0.3% 4.1% 18.3% International Last Trade Change 1-D 1-Mth YTD DJIA 35,336 215.6 0.6% 0.8% 15.5% NASDAQ 14,943 228.0 1.6% 0.7% 15.9% NIKKEI 27,793 298.3 1.1% 0.9% 1.3% HANGSENG 25,447 337.4 1.5% (6.7%) (6.4%) ADRs / GDRs Last Trade Change 1-D 1-Mth YTD Dr. Reddy’s Lab (ADR) 61.1 (0.2) (0.3%) (16.3%) (14.3%) STOCK IN FOCUS Tata Motors (ADR) 18.7 (0.4) (2.2%) (4.5%) 48.7% Infosys (ADR) 24.1 0.2 0.9% 10.9% 42.2% f Indraprastha Gas (IGL IN) – Despite the reduction in public transport demand, CNG Volume crossed pre-covid levels to ~5.2mmscmd in ICICI Bank (ADR) 18.6 0.1 0.4% 1.8% 25.3% Jul’21, with PNG volumes growing by ~50% YoY to ~1.7mmscmd. HDFC Bank (ADR) 77.4 0.6 0.8% 10.7% 7.0% Expansion of new geographical areas i.e. Rewari, Karnal and Axis Bank (GDR) 49.6 0.1 0.1% (1.8%) 17.3% Gurugram, and the development of 2 new GAs could further Reliance Ind (GDR) 58.7 0.8 1.4% 2.9% 7.2% accelerate volume growth in the coming years. COMMODITY MARKET f Recovery is witnessed in Industrial PNG with unlocking measures, Key Commodities Last Trade Change 1-D 1-Mth YTD also sales of CNG conversions currently stand at >10k vehicles/ Brent Crude ($/bl) 68.9 0.6 0.8% (7.0%) 33.0% month, as the. OEMs have started producing more CNG variants, Silver ($/Oz) 23.6 (0.1) (0.2%) (6.4%) (11.2%) the only concern remains for the school bus the segment which is Gold ($/Oz) 1,805.1 (1.2) (0.0%) 0.2% (5.3%) yet to recover. Copper LME ($/MT) 9,263.8 20.8 0.2% (3.8%) 19.5% f With the higher emphasis on cleaner fuel, higher taxes on petrol Aluminium LME ($/MT) 2,595.8 1.5 0.1% 3.6% 31.2% & diesel augur well for the CNG infrastructure as CNG is the best economical and eco-friendly fuel. Lower gas cost Vis-a-vis retail CURRENCY RATES price reductions, the ability to pass on the entire cost increase, and Last Trade Change 1-D 1-Mth YTD the effective monopoly in operation areas will help keep the gross USD/INR 74.2 (0.19) (0.3%) (0.3%) 1.3% margin sustainable going ahead. EUR/INR 87.0 0.10 0.1% (0.7%) (3.2%) f IGL’s valuation is inexpensive, as the stock does not reflect a 10% volume CAGR over FY20-23E and expected expansion in EBITDA RATES margin. We maintain BUY on IGL with a 2-Year Target Price of Last Trade Change 1-D 1-Mth YTD Rs602. T-Bill - 91 D 3.3 (0.01) 0.00 (0.02) 0.09 10 Year G-sec Yield 6.2 0.01 0.00 0.01 0.06 Intraday Picks CIPLA (PREVIOUS CLOSE: 898) BUY INVESTMENT ACTIVITY (RS. CR) For today’s trade, long position can be initiated in the range of Rs 885- Category BUY SELL NET Prev 893 for the target of Rs.914 with a strict stop loss of Rs 877. FII 7,990.2 9,353.6 (1,363.4) (2,287.0) DII 6,437.6 4,985.1 1,452.5 119.3 GAIL (PREVIOUS CLOSE: 141) BUY For today’s trade, long position can be initiated in the range of Rs 138- EXCHANGE TURNOVER 140 for the target of Rs.145 with a strict stop loss of Rs 136. Exchange Rs Crore BSE Equity 5,746.2 SBIN (PREVIOUS CLOSE: 401) BUY BSE Derivatives 3,01,688.2 For today’s trade, long position can be initiated in the range of Rs 394- NSE Equity 63,552.7 397 for the target of Rs.410 with a strict stop loss of Rs 390. NSE Derivatives 45,34,429.6 1 Institutional Equity Research NIFTY 16496 IN FOCUS August 24 2021 Support 16397 Stock in Focus INDRAPRASTHA GAS MARKET LENS 16298 Intraday Pick CIPLA Resistance 16594 Intraday Pick GAIL 16692 Intraday Pick SBIN Technical Research MARKET SYNOPSIS f On Monday, NIFTY-50 begun the session at around 16,593-level and later remained in pressure. On the lower side, the index found support at around 16,396-level and bounced. Finally, the index closed the day with the gain of 46 points at 16,496-level. f NSE Cash segment reported turnover of Rs63,553 crore as compared to Rs69,325 crore reported earlier. f Overall market breadth remained negative, where 426 stocks advanced against 1,584 declined stocks. f Mixed trend was observed across sectoral indices during the day, where IT emerged as a top gainer with the increase of 1.7%. However Auto and Media emerged as top losers with the decrease of 1.5% and 1.7%, respectively. NSE-NIFTY OUTLOOK f Yesterday, NIFTY-50 witnessed price-wise as well as time-wise correction as the index oscillated upwards after a sharp decline. On the lower side, its extended upper band of the broadening top pattern once again worked as key reversal point. The index breached its prior daily falling trend and settled tad below 16,500-level. Its hourly RSI advanced gradually after a positive cross-over. As mentioned earlier, we continue to believe that a stable move above 16,500-level could invalidate near-term decline in the index and may strengthen it to move towards 16,700-level. On the lower side, the index will continue to find support at around 16,350-level. f As for the day, support is placed at around 16,397 and then at 16,298 levels, while resistance is observed at 16,594 and then at 16,692 levels. 2 Institutional Equity Research NIFTY 16496 IN FOCUS August 24 2021 Support 16397 Stock in Focus INDRAPRASTHA GAS MARKET LENS 16298 Intraday Pick CIPLA Resistance 16594 Intraday Pick GAIL 16692 Intraday Pick SBIN Derivatives Snapshot f NIFTY50 opened higher on back of positive global cues and traded sideways in a narrow range and closed flat to positive. Nifty closed up by 46 points at 16,496 levels. Among the nifty stocks 22 advanced and 27 declined during the day. f Among sectors it was a mixed bag with Banks & IT to gain by 1% average while Media, Auto and Metals declined by 1.7% for the day. f Broader market indices remained positive with NIFTY 100, 200 and 500 to close up by 0.1% average while midcap indices and small cap indices declined by 0.8% for the day. f Nifty Jul futures end with 2 points discount at 16,494 mark while on other hand, Bank Nifty Jul futures ended with the premium of 34 points at 35,159 mark. f Nifty has closed in a inside range of the previous week and we expect some volatility at current levels. On the higher side 16,700 would act as strong resistance. Sectoral Activity: Amongst sectoral index Banks and IT remained in focus with positive momentum. Stock Activity: HDFC Bank and HCL Tech have witnessed long build up in today’s trade. 3 Institutional Equity Research NIFTY 16496 IN FOCUS August 24 2021 Support 16397 Stock in Focus INDRAPRASTHA GAS MARKET LENS 16298 Intraday Pick CIPLA Resistance 16594 Intraday Pick GAIL 16692 Intraday Pick SBIN Pivot Table Name LTP Support 2 Support 1 Pivot Resistance 1 Resistance 2 SENSEX 55556 54985 55270 55526 55811 56067 NIFTY 16496 16298 16397 16495 16594 16692 BANKNIFTY 35124 34513 34819 35123 35429 35733 ADANIPORTS 668 648 658 675 685 702 ASIANPAINT 3077 2985 3031 3097 3144 3210 AXISBANK 736 725 731 740 746 755 BAJAJ-AUTO 3668 3560 3614 3701 3755 3842 BAJAJFINSV 15272 14897 15085 15252 15440 15607 BAJFINANCE 6752 6634 6693 6756 6815 6879 BHARTIARTL 623 597 610 620 633 643 BPCL 452 442 447 453 458 465 BRITANNIA 3866 3780 3823 3894 3937 4008 CIPLA 898 879 889 898 908 918 COALINDIA 134 131 132 134 136 138 DIVISLAB 4875 4750 4812 4850 4913 4951 DRREDDY 4515 4439 4477 4538 4576 4637 EICHERMOT 2544 2480 2512 2567 2599 2655 GAIL 141 138 139 142 143 146 GRASIM 1441 1390 1415 1457 1483 1525 HCLTECH 1163 1104 1133 1156 1186 1208 HDFC 2722 2682 2702 2730 2750 2779 HDFCBANK 1525 1498 1511 1522 1536 1547 HDFCLIFE 669 657 663 668 674 678 HEROMOTOCO 2681 2628 2654 2683 2709 2737 HINDALCO 407 391 399 407 415 424 HINDUNILVR 2634 2555 2595 2634 2673 2712 ICICIBANK 683 666 674 682 690 698 INDUSINDBK 989 949 969 984 1004 1019 INFY 1739 1720 1729 1741 1751 1762 IOC 103 101 102 103 105 106 ITC 206 203 205 208 209 212 JSWSTEEL 684 646 665 683 702 720 KOTAKBANK 1717 1689 1703 1714 1728 1738 LT 1581 1538 1559 1589 1611 1640 M&M 766 745 755 774 785 804 MARUTI 6826 6731 6779 6848 6896 6965 NESTLEIND 20021 19354 19687 19891 20225 20429 NTPC 113 110 112 114 115 117 ONGC 112 107 110 111 113 114 POWERGRID 176 171 173 177 179 182 RELIANCE 2162 2115 2138 2156 2180 2198 SBILIFE 1135 1109 1122 1132 1145 1154 SBIN 410 396 403 408 415 420 SHREECEM 25986 25436 25711 26080 26356 26725 SUNPHARMA 759 741 750 760 769 779 TATAMOTORS 277 267 272 280 285 293 TATASTEEL 1359 1261 1310 1360 1409 1459 TCS 3637 3513 3575 3624 3686 3735 TECHM 1416 1389 1402 1423 1436 1457 TITAN 1870 1824 1847 1871 1894 1918 ULTRACEMCO 7351 7126 7239 7400 7513 7675 UPL 719 701 710 724 733 747 WIPRO 629 616 623 630 636 643 4 Institutional Equity Research NIFTY 16496 IN FOCUS August 24 2021 Support 16397 Stock in Focus INDRAPRASTHA GAS MARKET LENS 16298 Intraday Pick CIPLA Resistance 16594 Intraday Pick GAIL 16692 Intraday Pick SBIN Simple Moving Average Scrip Name Close Rate 20-SMA 50-SMA 100-SMA 200-SMA HIGH_52WEEK LOW_52WEEK SENSEX 55556 54234 53280 51547 49612 56119 36496 NIFTY 16496 16202 15948 15442 14733 16702 10790 BANKNIFTY 35124 35440 35231 34321 33205 37709 20405 ADANIPORTS 668 690 704 736 636 901 312 ASIANPAINT 3077 3005 3014 2857 2653 3180 1881 AXISBANK 736 744 749 728 696 799 400 BAJAJ-AUTO 3668 3801 3971 3935 3752 4361 2822 BAJAJFINSV 15272 14321 13143 11948 10465 15420 5400 BAJFINANCE 6752 6314 6181 5755 5390 6820 3007 BHARTIARTL 623 596 558 548 539 644 394 BPCL 452 455 460 451 429 494 325 BRITANNIA 3866