Institutional Equity Research NIFTY 15030 IN FOCUS May 20 2021 Support 14982 Stock in Focus WIPRO MARKET LENS 14933 Intraday Pick MARICO Resistance 15106 Intraday Pick ONGC 15182 Intraday Pick TCS EQUITY INDICES Indices Absolute Change Percentage Change Domestic Last Trade Change 1-D 1-Mth YTD BSE Sensex 49,903 (290.7) (0.6%) 4.6% 4.5% CNX Nifty 15,030 (78.0) (0.5%) 5.1% 7.5% S&P CNX 500 12,809 (30.1) (0.2%) 6.3% 11.2% SENSEX 50 15,740 (80.3) (0.5%) 5.2% 7.5% International Last Trade Change 1-D 1-Mth YTD DJIA 33,896 (164.6) (0.5%) (0.7%) 10.8% NASDAQ 13,300 (3.9) (0.0%) (4.7%) 3.2% NIKKEI 28,078 33.6 0.1% (1.6%) 2.2% HANGSENG 28,451 (138.0) (0.5%) (0.6%) 4.4% ADRs / GDRs Last Trade Change 1-D 1-Mth YTD Dr. Reddy’s Lab (ADR) 72.2 0.5 0.6% 6.4% 1.3% STOCK IN FOCUS Tata Motors (ADR) 20.9 (1.1) (4.8%) 6.2% 65.5% f We expect Wipro’s revenue growth to accelerate over FY21-24E Infosys (ADR) 18.4 0.2 1.0% 1.9% 8.8% driven by: (1) step-up in large deal wins; (2) enhanced focused on ICICI Bank (ADR) 17.2 0.1 0.4% 17.3% 16.0% large clients; (3) concentrated focus on chosen verticals/industries; HDFC Bank (ADR) 73.6 (0.4) (0.6%) 7.4% 1.8% and (4) simplified operating structure post restructuring. We peg Axis Bank (GDR) 48.3 0.0 0.0% 12.6% 14.2% Wipro’s revenue to grow by 16.8%, 12.5% and 9.9% in FY22E, FY23E Reliance Ind (GDR) 54.0 (0.3) (0.6%) 7.5% (1.3%) and FY24E. COMMODITY MARKET f Wipro has diversified client base and company is tier 1 integrator/ Key Commodities Last Trade Change 1-D 1-Mth YTD IT service provider for many large corporate. With strong talent pool Brent Crude ($/bl) 66.7 0.1 0.1% 2.1% 28.8% in hand, refreshed industry solutions and partnership ecosystem, Silver ($/Oz) 27.8 (0.3) (1.0%) 4.3% 4.6% Wipro can improve its wallet share in client ecosystem. Gold ($/Oz) 1,872.4 (9.2) (0.5%) 4.4% (1.5%) Copper LME ($/MT) 10,007.0 (66.5) (0.7%) 5.9% 29.0% f We expect Wipro’s EBIT margin to remain in the range of 18-19% over Aluminium LME ($/MT) 2,420.0 (10.5) (0.5%) 2.8% 22.1% FY22-FY24E vs. 16-18% over FY18-FY20 driven by structural levers, improving pricing powers, operational excellence efforts and some CURRENCY RATES situational opportunities. Last Trade Change 1-D 1-Mth YTD f Recent Restructuring efforts, which include simplified operating USD/INR 73.3 0.07 0.1% (2.5%) (0.0%) structuring, step-up in capability upgrade and talent management EUR/INR 89.4 0.03 0.0% (1.3%) (0.6%) bode well for Wipro in the medium-term. We recommend Buy on Wipro with a 2-Year Target Price of Rs565 (Valuing the stock at RATES 22x PE on FY24E earnings). Last Trade Change 1-D 1-Mth YTD T-Bill - 91 D 3.4 0.01 0.00 0.02 0.10 10 Year G-sec Yield 6.0 (0.00) 0.00 (0.02) 0.01 Intraday Picks MARICO (PREVIOUS CLOSE: 474) SELL INVESTMENT ACTIVITY (RS. CR) For today’s trade, short position can be initiated in the range of Rs 477- Category BUY SELL NET Prev 481 for the target of Rs. 465 with a strict stop loss of Rs 484. FII 7,138.1 7,835.7 (697.8) 618.5 DII 4,723.0 5,575.5 (852.5) 449.5 ONGC (PREVIOUS CLOSE: 115) SELL For today’s trade, short position can be initiated in the range of Rs 116- EXCHANGE TURNOVER 117 for the target of Rs.113 with a strict stop loss of Rs 118. Exchange Rs Crore BSE Equity 5,906.0 TCS (PREVIOUS CLOSE: 3082) BUY BSE Derivatives 3,25,264.9 For today’s trade, long position can be initiated in the range of Rs 3040- NSE Equity 74,858.8 3060 for the target of Rs. 3140 with a strict stop loss of Rs 3010. NSE Derivatives 42,83,302.6 1 Institutional Equity Research NIFTY 15030 IN FOCUS May 20 2021 Support 14982 Stock in Focus WIPRO MARKET LENS 14933 Intraday Pick MARICO Resistance 15106 Intraday Pick ONGC 15182 Intraday Pick TCS Technical Research MARKET SYNOPSIS f On Wednesday, NSE-NIFTY jumped to 15,133-level post a gap down opening and after consolidating in the narrow range, retraced 23.6% Fibonacci Retracement level of prior up-move (14,592-15,137). f Finally, NIFTY finished trade with the loss of 78 points at 15,030-level. f NSE Cash segment reported turnover of Rs74,859 crore as compared to Rs80,306 crore reported earlier. f Overall market breadth remained positive, where 1,106 stocks advanced against 861 declined stocks. f Mix trend was observed across sectoral indices during the day, where Media and Realty emerged as top gainers with the increase of 2% and 2.2%, respectively. However, Financial Service index reported the highest decline (i.e. 1%). NSE-NIFTY OUTLOOK f We believe NSE-NIFTY will bounce after near-term volatility and move towards 15,250-15,300 zone. Yesterday, the index breached its prior daily rising trend and formed a bearish reversal pattern-Shooting Star-right after a real body. The key technical indicators on the near-term timeframe chart reversed after testing their overbought zone and are negatively poised. As mentioned earlier, near-term volatility cannot be ruled out before the index resumes its northward journey. In case of decline, the index will find support at around 14,800-level initially and at around its upward sloping 100-day SMA subsequently, which is now placed at 14,596-level. f As for the day, support is placed at around 14,982 and then at 14,933 levels, while resistance is observed at 15,106 and then at 15,182 levels. 2 Institutional Equity Research NIFTY 15030 IN FOCUS May 20 2021 Support 14982 Stock in Focus WIPRO MARKET LENS 14933 Intraday Pick MARICO Resistance 15106 Intraday Pick ONGC 15182 Intraday Pick TCS Derivatives Snapshot f NIFTY50 opened higher on back of positive global cues and witnessed a strong up move across sectors and stocks to close near the high point of the day. Nifty closed up by 185 points at 15,108 levels. Among the nifty stocks 42 advanced and 8 declined during the day. f Among sectors it was a mixed bag with Banks, Auto and Metals sectors to decline by 1% average while Media and Realty gained by 2% average for the day. f Broader market indices remained negative with NIFTY 100, 200 and 500 to close down by 0.3% average while midcap indices and small cap indices declined by 0.3% for the day. f Nifty May futures end with 29 points premium at 15,059 mark while on other hand, Bank Nifty May futures ended with the premium of 115 points at 33,801 mark. f Nifty has closed flat after a sharp up move and we expect some minor profit booking from the higher range of 15,300 levels. On the lower side the trend reversal level has moved to 14,700 from current levels. Sectoral Activity: Amongst sectoral index Media and Realty remained in focus with positive momentum. Stock Activity: Sun TV and Godrej Properties have witnessed long buildup in today’s trade. 3 Institutional Equity Research NIFTY 15030 IN FOCUS May 20 2021 Support 14982 Stock in Focus WIPRO MARKET LENS 14933 Intraday Pick MARICO Resistance 15106 Intraday Pick ONGC 15182 Intraday Pick TCS Pivot Table Name LTP Support 2 Support 1 Pivot Resistance 1 Resistance 2 SENSEX 49903 49557 49730 50004 50177 50452 NIFTY 15030 14933 14982 15057 15106 15182 BANKNIFTY 33685 33400 33543 33751 33894 34102 ADANIPORTS 772 755 764 778 786 800 ASIANPAINT 2816 2771 2793 2821 2844 2872 AXISBANK 717 693 705 714 726 736 BAJAJ-AUTO 4096 4021 4059 4085 4123 4149 BAJAJFINSV 11215 11009 11112 11273 11376 11537 BAJFINANCE 5631 5522 5577 5650 5704 5778 BHARTIARTL 528 517 523 532 537 546 BPCL 446 436 441 448 453 460 BRITANNIA 3534 3496 3515 3535 3554 3574 CIPLA 904 872 888 897 913 922 COALINDIA 152 142 147 150 155 157 DIVISLAB 4040 3977 4008 4034 4065 4091 DRREDDY 5238 5178 5208 5236 5266 5294 EICHERMOT 2565 2499 2532 2573 2606 2648 GAIL 153 150 151 153 154 156 GRASIM 1390 1356 1373 1397 1414 1439 HCLTECH 931 917 924 933 940 948 HDFC 2460 2414 2437 2477 2500 2540 HDFCBANK 1458 1437 1448 1463 1474 1490 HDFCLIFE 666 661 664 668 670 674 HEROMOTOCO 2915 2868 2891 2918 2941 2968 HINDALCO 403 389 396 401 408 414 HINDUNILVR 2360 2325 2343 2361 2379 2397 ICICIBANK 625 617 621 628 632 638 INDUSINDBK 967 952 959 969 977 986 INFY 1337 1318 1328 1343 1352 1367 IOC 107 102 105 107 109 112 ITC 208 205 206 209 210 213 JSWSTEEL 706 694 700 710 716 726 KOTAKBANK 1731 1713 1722 1736 1745 1759 LT 1403 1378 1391 1413 1426 1448 M&M 785 770 777 786 793 802 MARUTI 6776 6702 6739 6797 6834 6892 NESTLEIND 17449 17089 17269 17367 17547 17645 NTPC 112 110 111 112 113 114 ONGC 115 112 114 115 116 117 POWERGRID 234 228 231 234 237 241 RELIANCE 1997 1951 1974 1995 2018 2040 SBILIFE 978 957 967 974 984 991 SBIN 384 377 381 385 389 393 SHREECEM 27533 26776 27154 27699 28078 28623 SUNPHARMA 703 684 694 700 710 716 TATAMOTORS 314 306 310 317 321 327 TATASTEEL 1164 1139 1152 1171 1183 1202 TCS 3082 3038 3060 3089 3111 3140 TECHM 978 952 965 976 988 999 TITAN 1521 1494 1507 1531 1544 1568 ULTRACEMCO 6561 6377 6469 6612 6704 6847 UPL 782 745 763 784 803 824 WIPRO 512 499 505 512 518 524 4 Institutional Equity Research NIFTY 15030 IN FOCUS May 20 2021 Support 14982 Stock in Focus WIPRO MARKET LENS 14933 Intraday Pick MARICO Resistance 15106 Intraday Pick ONGC 15182 Intraday Pick TCS Simple Moving Average Scrip Name Close Rate 20-SMA 50-SMA 100-SMA 200-SMA HIGH_52WEEK LOW_52WEEK SENSEX 49903 48942 49404 49331 45009 52517 30512 NIFTY 15030 14705 14741 14615 13293 15432 8997 BANKNIFTY 33685 32740 33334 33305 29093 37709 17311 ADANIPORTS 772 749 742 651 510 885 298 ASIANPAINT 2816 2609 2539 2549 2317 2873 1578 AXISBANK 717 701 705 697 600 799 336 BAJAJ-AUTO 4096 3844 3743 3778 3409 4361 2450 BAJAJFINSV 11215 10816 10111 9755 8250 11589 3985 BAJFINANCE 5631 5293 5223 5221 4505 5822 1783 BHARTIARTL 528 547 536 550 516 623 394 BPCL 446 432 433 421 404 482 312 BRITANNIA 3534 3509 3556 3540