Institutional Equity Research NIFTY 13393 IN FOCUS December 09, 2020 Support 13324 Stock in Focus Kalpataru Power MARKET LENS 13255 Intraday Pic SUNTV Resistance 13449 Intraday Pick PETRONET 13504 Intraday Pick GODREJPROP EQUITY INDICES Indices Absolute Change Percentage Change Domestic Last Trade Change 1-D 1-Mth YTD BSE Sensex 45,609 182 0.4% 5.4% 10.6% CNX Nifty 13,393 37 0.3% 6.0% 10.1% S&P CNX 500 11,089 18 0.2% 8.0% 12.3% SENSEX 50 14,013 42 0.3% 5.9% 10.0% International Last Trade Change 1-D 1-Mth YTD DJIA 30,174 104 0.4% 2.6% 5.7% NASDAQ 12,583 63 0.5% 8.9% 40.2% NIKKEI 26,707 240 0.8% 7.2% 12.8% HANGSENG 26,550 245 0.9% 1.0% (5.8%) ADRs / GDRs Last Trade Change 1-D 1-Mth YTD Dr. Reddy’s Lab (ADR) 67.8 0.2 0.2% 7.6% 67.0% Tata Motors (ADR) 12.5 (0.1) (0.6%) 24.1% (3.7%) STOCK IN FOCUS Infosys (ADR) 16.0 0.4 2.5% 10.1% 55.1% f Kalpataru Power (KPP) and its subsidiary, JMC Projects are the ICICI Bank (ADR) 13.9 (0.1) (0.6%) 4.7% (8.1%) plays on large opportunities in seven key infrastructure segments in HDFC Bank (ADR) 67.4 0.1 0.1% 0.1% 6.3% India and abroad. We expect total opportunities worth ~Rs8 trillion Axis Bank (GDR) 42.6 0.1 0.2% 6.4% (19.9%) over the next 5 years. Reliance Ind (GDR) 54.5 1.0 1.9% (3.4%) 28.1% f KPP’s dependence on power T&D has reduced to 50% in FY20 from 86% in FY17 with increasing opportunity in Oil & Gas and railways COMMODITY MARKET space. The company has successfully increased its presence in new Key Commodities Last Trade Change 1-D 1-Mth YTD segments without losing focus on margin and cash flows. Brent Crude ($/bl) 48.7 (0.1) (0.2%) 11.7% (26.2%) f KPP’s current order book, which stands at Rs123bn (1.6x of FY20 Silver ($/Oz) 24.6 (0.1) (0.3%) 0.8% 36.3% revenue), provides a decent revenue visibility in the near-term. Gold ($/Oz) 1,871.4 (3.5) (0.2%) (0.2%) 20.7% Slowdown in domestic T&D ordering activity is likely to be offset by Copper LME ($/MT) 3.5 0.0 0.2% 11.2% 24.7% opportunity from green energy corridor. Aluminium LME ($/MT) 2,005.3 6.5 0.3% 6.1% 12.1% f We expect KPP to be one of the key beneficiaries of strong transmission capex in both domestic and global markets considering CURRENCY RATES strong visibility on revenue front, sustained earnings momentum Last Trade Change 1-D 1-Mth YTD and likely improvement in return ratios. USD/INR 73.7 (0.32) (0.4%) (0.9%) 3.1% f We value its standalone business at Rs349 (10x of FY23E standalone EUR/INR 89.4 (0.26) (0.3%) 1.9% 11.3% earnings), JMC Projects at Rs19 (10x of FY23E earnings, 30% holdco discount), Shree Shubham Logistics (SSL) at 50% discount to RATES potential valuation. Last Trade Change 1-D 1-Mth YTD T-Bill - 91 D 3.0 0.00 0.00 (0.06) (0.40) Intraday Picks 10 Year G-sec Yield 5.9 (0.00) 0.00 0.00 0.00 SUNTV (PREVIOUS CLOSE: 458) BUY INVESTMENT ACTIVITY (RS. CR) For today’s trade, long position can be initiated in the range of Rs458- Category BUY SELL NET Prev 454 for the target of Rs478 with a strict stop loss of Rs446. FII 8,473.3 5,563.7 2,909.6 3,792.1 DII 3,912.4 6,553.3 (2,640.9) (2,767.1) PETRONET (PREVIOUS CLOSE: 262) BUY For today’s trade, long position can be initiated in the range of Rs261- EXCHANGE TURNOVER 259 for the target of Rs272 with a strict stop loss of Rs254. Exchange Rs Crore BSE Equity 4,048.3 GODREJPROP (PREVIOUS CLOSE: 1256) BUY BSE Derivatives 2,26,251.1 For today’s trade, long position can be initiated in the range of Rs1227- NSE Equity 69,721.0 1215 for the target of Rs1300 with a strict stop loss of Rs1190. NSE Derivatives 22,80,190.8 1 Institutional Equity Research NIFTY 13393 IN FOCUS December 09, 2020 Support 13324 Stock in Focus Kalpataru Power MARKET LENS 13255 Intraday Pic SUNTV Resistance 13449 Intraday Pick PETRONET 13504 Intraday Pick GODREJPROP Technical Research MARKET SYNOPSIS f Yesterday, NSE-NIFTY began the session on strong note as the index rose to 13,435 level in the initial trades. Later higher level profit booking dragged the index down. On the lower side, the index found support at around 13,311 mark and bounced. f Finally, NIFTY finished trade at 13,393 level, with the gain of 37 points. f NSE Cash segment reported turnover of Rs 69,721 crore as compared to Rs 68,112 crore reported earlier. f Overall market breadth turned negative after couple of days, where 943 stocks advanced against 1016 declined stocks. f Mix trend was observed across sectoral indices during the day, where PSU Bank emerged as a top gainer with the increase of 7.1%. However Pharma and Metal indices reported loss of 1.2% each. NSE-NIFTY OUTLOOK f NSE-NIFTY extended gain post a strong start for the week. Yesterday, despite mix global cues the index continued its up-move. Mix trend observed across the sectors and market breadth turned from positive to negative after couple of days. The index reached around its near-term hurdle point-13,500 mark. Though its major technical indicators are positively poised, but sideways movement between 13,200 and 13,500 levels cannot be ruled out. In case of breakout, the index has potential to test 13,700 and 14,000 levels. On the lower side, major support is placed at around 13,000 mark. f As for the day, support is placed at around 13,324 and then at 13,255 levels, while resistance is observed at 13,449 and then at 13,504 levels. 2 Institutional Equity Research NIFTY 13393 IN FOCUS December 09, 2020 Support 13324 Stock in Focus Kalpataru Power MARKET LENS 13255 Intraday Pic SUNTV Resistance 13449 Intraday Pick PETRONET 13504 Intraday Pick GODREJPROP Derivatives Snapshot f NIFTY50 opened higher and gained traction as the day passed with positive momentum across sectors and stocks to close near the high point of the day. Nifty closed up by 98 points at 13,356 levels. Among the nifty stocks 19 advanced and 30 declined during the day. f Among sectors it was a mixed bag with Auto, Metals and Pharma to decline by 1% average while PSU Banks and Realty gained by 7% and 0.9% for the day. f Broader market indices remained positive with NIFTY 100,200 and 500 to close up by 0.2% average while midcap indices and small cap indices gained by 0.2% for the day. f Nifty Dec futures end with 35 points premium at 13,428 mark while on other hand, Bank Nifty Dec futures ended with the gain of 53 points at 30,314 mark. f Nifty has closed in a doji candle and expect some corrective action from 13,500 levels being the monthly resistance On the downside 12900 will act as strong support from current levels. Sectoral Activity: Amongst sectoral index, Auto and Metals remained in focus with negative momentum. Stock Activity: Maruti and JSW Steel have witnessed long unwinding in today’s trade. TOP 5 PRICE GAINERS Stock Name LTP % Price Chg % Vol Chg %OI Chg Support Pivot Resistance CANARA BANK 137.00 16.70% 149.75% -16.61% 123 132 146 PUNJAB NATIONAL BANK 40.60 13.57% 174.39% 30.18% 37 39 43 BANK OF BARODA 65.20 8.40% 111.35% 13.29% 61 64 68 GODREJ PROPERTIES LTD 1256.10 4.00% 218.60% 10.23% 1226 1244 1274 BHEL 36.15 3.43% 109.26% 10.23% 35 36 37 TOP 5 PRICE LOSERS Stock Name LTP % Price Chg % Vol Chg %OI Chg Support Pivot Resistance SUN PHARMACEUTICAL IND L 568.70 -2.34% -49.73% -0.18% 562 572 579 RBL BANK LIMITED 237.30 -2.33% -29.87% 1.81% 232 239 244 JINDAL STEEL & POWER LTD 260.30 -2.27% 22.97% 3.32% 253 261 268 HINDALCO INDUSTRIES LTD 245.70 -2.21% -17.22% -2.00% 242 248 251 PETRONET LNG LIMITED 261.50 -2.11% 14.85% 11.69% 256 264 269 TOP 5 OI GAINERS Stock NameLTP % Price Chg % Vol Chg %OI Chg Support Pivot Resistance PUNJAB NATIONAL BANK 40.60 13.57% 174.39% 30.18% 37 39 43 CONTAINER CORP OF IND LTD 404.55 -1.41% 32.17% 29.34% 400 407 411 UNITED SPIRITS LIMITED 586.30 -0.43% 56.96% 15.56% 579 592 599 SUN TV NETWORK LIMITED 458.25 -1.20% 31.23% 14.12% 448 462 472 GODREJ CONSUMER PRODUCTS 706.50 -1.11% 64.90% 14.11% 700 708 715 TOP 5 OI LOSERS Stock Name LTP % Price Chg % Vol Chg %OI Chg Support Pivot Resistance CANARA BANK 137.00 16.70% 149.75% -16.61% 123 132 146 TVS MOTOR COMPANY LTD 507.85 -0.59% -36.19% -7.44% 503 511 516 TORRENT POWER LTD 325.15 0.29% 38.03% -6.20% 321 325 329 HINDUSTAN UNILEVER LTD.