Daily Morning Note 6 August 2020 Current % % RBI to announce MPC meet outcome Indices Value 1 D YTD Asian markets are trading lower as investors focused on tensions between the Sensex 37663 (0.07) (8.70) U.S. and China.. Nikkei is trading lower by 0.38%, Hang Seng is trading lower Nifty 11102 0.06 (8.77) BSE – Mid Cap 13910 0.39 (7.07) by 1.21% and Shanghai is trading lower by 0.26%. Indian indices are expected BSE – Sml Cap 13430 0.85 (1.97) to open in the green and focus will be on RBI’s announcement of MPC meet SGX Nifty Fut 11164 0.44 outcome in the day ahead. Sgx Nifty is trading higher by 0.44%. Sectors – Performance (BSE) Metal 8280 4.05 (20.60) The US markets ended higher as investors took note of quarterly earnings and Auto 16960 1.86 (8.25) economic data while they remained optimistic that lawmakers will eventually reach Consumer Dur 22188 1.28 (11.29) an agreement on a new coronavirus relief bill. On the data front the US services Power 1530 (0.48) (20.56) sector activity touched a 16-month high in July. The Dow Jones gained 373 points or FMCG 11443 (0.24) 0.32 1.39% to close at 27,202 while the NASDAQ added 57 points or 0.52% to close at IT 17976 (0.14) 16.16 10,998. Nifty CMP % Chg Gainers/Losers What to watch HINDALCO 177 9.09 Results Today: Lupin, HPCL, Adani Enterprises, Adani Power, TATASTEEL 397 6.70 Vodafone Idea, Apar Industries, BASF India, Bayer Cropscience, Blue Star, Dalmia Bharat, Deepak Nitrite, Embassy Office Parks REIT, EICHERMOT 22029 4.82 Gujarat Pipavav Port, Gujarat State Petronet, HCL Infosystems, HDFCLIFE 605 (1.48) Honeywell Automation, Indian Hotels, JK Tyre, Lemon Tree Hotels, UPL 455 (1.45) Matrimony.com, Novartis India, Pidilite Industries, Talbros Engineering, TD Power Systems, Torrent Power, Whirlpool of India WIPRO 278 (1.05) Oil prices hit 5-month high as US inventory declines FII Trading activities in Cash Corporate Date Net MTD CYTD HDFC has launched a QIP issue at a floor price of Rs 1,838.94 per share. The 05/08 (60) 8462 (59048) FII company intends to raise Rs 14,000 cr through issue of equity and Rs 9,000 cr DII 05/08 (426) (1227) 77954 through NCDs. Figs. in Rs Cr., Source: Bloomberg. Alkem Laboratories launched Favipiravir in India under the brand name Alfluenza for treatment of mild to moderate COVID-19. Current % % Global Indices Value 1 D YTD Apollo Tyres: Board approved issue of NCDs worth Rs 1,000 cr. Further the Dow Jones 27202 1.39 (4.68) company will also issue convertible preference shares up to Rs 540 cr to Nasdaq 10998 0.52 22.58 Emerald Sage Investment. DAX 12660 0.47 (4.44) South Indian Bank: RBI has given in-principle approval for setting up of a Nikkei 225 22429 (0.38) (5.19) wholly-owned non-financial arm for undertaking activities permitted by RBI. FTSE 100 6105 1.14 (19.06) Vivimed Labs has received an export order for supply of 'Favulous' tablets 200 Hang Seng 24799 (1.21) (12.03) mg (Favipiravir) that is used for the treatment of mild to moderate cases of Shanghai 3369 (0.26) 5.41 COVID-19. Bovespa 102802 1.57 (11.11) NIIT: Massachusetts Institute of Technology acquired 30 lakh shares in the Forex Rate company at Rs 96.75 per share. INR/USD 74.94 0.14 (4.76) Cera Sanitaryware to discontinue the business operations of its Dubai arm by INR/EUR 88.48 (0.05) (9.48) February 2021. This entity contributed 0.2% to the total turnover of the INR/GBP 97.85 0.14 (3.75) company. INR/YEN (100) 70.98 2.82 (7.57) For private circulation only 1 Trading Insights Insight from trading volumes Total Volume Monthly Avg Scrip CMP % Change (‘000s) Volume(‘000) Strides Pharma 535 10957 1459 651 Jyothy Labs 140 7416 1213 511 Max Financial 549 9771 1647 493 Tata Consumer 448 20924 4305 386 SPARC 187 8288 1896 337 Welspun India 44 8382 1974 325 Vaibhav Global 1694 175 43 310 Insight from delivery Deliverable Volume Monthly Avg Delivery Scrip CMP % Chg (‘000s) Volume(‘000) PNC Infratech 128 374 83 349 Johnson Con. Hit 2049 19 5 307 SPARC 187 1696 450 277 DCB Bank 82 5558 1074 417 *CMP-Closing Market Price For private circulation only 2 Investment Picks Target % Company Recommendation CMP Price Upside Aarti Drugs Buy 1882 2200 17 Bharti Airtel Buy 559 650 16 Biocon Buy 408 474 16 Birla Corp Buy 636 854 34 Britannia Inds Buy 3852 4300 12 Can Fin Homes Buy 370 405 10 Endurance Technologies Buy 940 1190 27 Federal Bank Buy 52 66 26 HDFC Bank Buy 1028 1239 21 ICICI Bank Buy 352 480 36 ITC Buy 193 243 26 Manappuram Fin Buy 159 205 29 MAS Financial Services Ltd Buy 627 814 30 Minda Corp Buy 68 81 19 Minda Inds Buy 280 318 14 Relaxo Footwear Buy 631 697 11 Rites Buy 238 329 38 SBI Buy 192 240 25 SBI Life Buy 861 996 16 SIS Buy 362 410 13 For private circulation only 3 Technical View (Equity) Daily call Index CMP % up/dn S2 S1 P R1 R2 Nifty 11,120.10 0.22% 10975 11050 11135 11210 11300 Sensex 37663.33 -0.07% 37195 37430 37785 38020 38375 Nifty Daily Chart Nifty opened with a downward gap and traded with extreme volatility on either side to end on a flat note. Nifty closed at 11120 with a gain of 25 points. On the daily chart the index has formed a small Bearish candle with shadows on either side indicating indecisiveness amongst participants regarding the direction. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating sustained up trend. The chart pattern suggests that if Nifty breaks and sustains below 11050 levels it would witness selling which would lead the index towards 11000-10980 levels. However if index crosses above 11150 level it would witness pullback rally which would take the index towards 11200-11250. Nifty is sustaining above its 20 and 200 day SMA which signals bullish sentiments in near 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 is moving downwards and is quoting below its reference line indicating negative bias. However momentum oscillator Stochastic has turned positive from the oversold zone indicating a possible consolidation or a up-move in the near term. The trend deciding level for the day is 11135. If NIFTY trades above this level then we may witness a further rally up to 11210-11300-11370 levels. However, if NIFTY trades below 11135 levels then we may see some profit booking initiating in the market, which may correct up to 11050-10975-10885 levels. STOCK IDEAS FOR THE DAY Company Name Buy / Sell Range Stop Loss Target TVSMOTOR Buy above 412 408 416-420 ZEEL Buy above 148 145 152-155 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 4 Daily Support/ Resistance of Nifty Companies Company CMP Pivot Point R1 R2 S1 S2 NIFTY 50 11102 11130 11197 11292 11035 10969 ADANIPORTS 327 323 333 338 317 308 ASIANPAINT 1720 1725 1737 1754 1708 1695 AXISBANK 434 438 443 452 429 424 BAJAJ-AUTO 3016 3008 3044 3071 2980 2944 BAJAJFINSV 6245 6259 6331 6416 6174 6103 BAJFINANCE 3270 3283 3317 3365 3235 3201 BHARTIARTL 560 556 565 570 551 542 BPCL 411 410 416 420 406 401 BRITANNIA 3855 3852 3876 3898 3831 3807 CIPLA 724 723 730 737 716 709 COALINDIA 129 129 130 131 128 127 DRREDDY 4609 4619 4656 4703 4572 4535 EICHERMOT 22029 21819 22478 22927 21370 20711 GAIL 94 94 95 96 93 92 GRASIM 633 633 644 655 622 611 HCLTECH 690 691 701 712 680 670 HDFC 1780 1786 1806 1831 1760 1741 HDFCBANK 1031 1036 1051 1071 1015 1000 HDFCLIFE 605 609 614 624 600 594 HEROMOTOCO 2717 2710 2747 2778 2679 2642 HINDALCO 177 173 182 187 168 159 HINDUNILVR 2200 2197 2213 2226 2184 2168 ICICIBANK 353 355 358 364 349 345 INDUSINDBK 494 497 503 513 487 481 INFRATEL 191 191 193 196 189 187 INFY 945 948 958 971 935 925 IOC 87 87 88 89 86 85 ITC 193 193 194 196 191 190 JSWSTEEL 235 233 238 241 230 225 KOTAKBANK 1338 1338 1353 1369 1322 1307 LT 924 926 932 940 918 913 M&M 619 614 625 631 608 597 MARUTI 6517 6498 6616 6716 6399 6281 NESTLEIND 16500 16535 16609 16719 16425 16351 NTPC 86 86 87 87 86 85 ONGC 77 77 78 78 77 76 POWERGRID 177 177 178 179 175 174 RELIANCE 2132 2149 2179 2227 2102 2071 SBIN 192 193 195 199 190 187 SHREECEM 22105 21902 22353 22601 21654 21203 SUNPHARMA 530 532 536 543 525 521 TATAMOTORS 116 115 118 121 112 109 TATASTEEL 397 389 406 414 381 365 TCS 2259 2271 2288 2318 2241 2224 TECHM 649 651 660 670 641 632 TITAN 1105 1099 1120 1136 1084 1063 ULTRACEMCO 4035 4053 4092 4148 3997 3958 UPL 455 458 464 474 449 443 WIPRO 278 280 283 287 276 273 ZEEL 146 145 148 151 142 139 Source: Axis Direct.