Equity research report 20 november 2017 ways2capital

Page 1


TECHNICAL TREND ( NIFTY - BANK NIFTY FUTURES ) NIFTY FIFTY : - Nifty futures and bank nifty future market closed at 10250/ 25516. according to technical analysis if nifty futures and bank nifty future moves up-word in upcoming treading sessions then 10400/ 26000 will be next resistance level, if it break this level then nifty futures and bank nifty future can touch 10530 / 26000 level . it will be hard resistance. meanwhile in reveres there is support on 10200/ 25500 for nifty futures and bank nifty future after breaking this support with volume there is big support for nifty futures and bank nifty future on 10100/25000.

Friday, 17 Nov 2017


TECHNICAL VIEW (NIFTY- BANK NIFTY FUTURES )

NIFTY DAILY

WEEKLY

MONTHLY

R2

R1

PP

S1

S2

10535

10329

10225

10123

9917

R2

R1

PP

S1

S2

11120

10629

10383

10137

9645

R2

R1

PP

S1

S2

11904

10770

10204

9638

8504

R2

R1

PP

S1

S2

26070

25672

25473

25724

24875

R2

R1

PP

S1

S2

26915

25960

25483

25004

24048

R2

R1

PP

S1

S2

28452

25947

24695

23442

20935

BANK NIFTY DAILY

WEEKLY

MONTHLY

MOVING AVERAGE 21 DAYS

50 DAYS

100 DAYS 200 DAYS

NIFTY

10328

10155

10009

9617

BANK NIFTY

25185

24772

24475

23160

PARABOLIC SAR

DAILY WEEKLY MONTHLY

NIFTY

9983

9014

7615

BANK NIFTY

24276

20920

16022


PATTERN FORMATION ( NIFTY )

Details of Chart - Last week nifty future open at 10342 and made high of 10374 and low of 10125moves down sid almost 200 point showing its bearish trend next support for nifty is 10100 if nifty can break this level than it shows further downward direction. although sma 21 days shows it’s upside movement if nifty can sustain level of 10300-10400 then it again touch the level of 10530..


PATTERN FORMATION ( BANK NIFTY )

Detail of Chart - Last week bank nifty future open at 25535 and made high of 25975 and low of 25260 moves almost 600 point showing it’s bullish trend . next resistance for banknifty is 26000 if bank niftty can break this level than it shows further upward direction. sma 21 days also suggest it upside movement if banknifty can break the level of 26000 then it can go further in upward direction


NSE EQUITY DAILY LEVELS R3

R2

R1

PP

S1

S2

S3

ADANIPORTS NAME AMBUJACEM ASIANPAINT

COMPANY EQ EQ EQ

487 300 1256

448 288 1214

424 281 1190

410 275 1171

385 268 1147

371 262 1128

332 249 1085

AUROPHARMA AXISBANK BAJAJ-AUTO BAJFINANCE BHARTIARTL BOSCHLTD BPCL CIPLA COALINDIA DRREDDY EICHERMOT GAIL HCLTECH HDFC HDFCBANK HEROMOTOC HINDALCO O HINDPETRO HINDUNILVR IBULHSGFIN ICICIBANK INDUSINDBK INFRATEL INFY IOC ITC KOTAKBANK LT LUPIN M&M MARUTI NTPC ONGC POWERGRID RELIANCE SBIN SUNPHARMA TATAMOTORS TATASTEEL TCS TECHM ULTRACEMCO UPL VEDL WIPRO YESBANK ZEEL

EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ

838 610 3427 1988 545 22854 563 653 301 2493 33340 495 947 1833 1917 3916 291 451 1417 1344 367 1791 504 1074 423 283 1106 1338 884 1482 8825 195 210 227 1007 384 606 460 771 2905 530 4811 805 370 319 343 568

777 578 3327 1878 519 21174 533 628 287 2411 31909 473 901 1762 1866 3776 274 433 1348 1264 345 1711 449 1021 408 270 1059 1284 857 1451 8542 186 196 218 956 360 562 439 731 2815 510 4567 768 339 308 324 553

742 560 3268 1829 506 20068 518 617 280 2365 31345 458 871 1732 1844 3702 267 423 1312 1223 335 1670 415 993 402 265 1040 1254 843 1432 8440 182 187 214 934 348 540 431 713 2761 497 4406 746 323 302 315 544

716 546 3228 1768 494 19494 503 604 273 2329 30479 450 855 1690 1816 3635 258 415 1279 1185 322 1631 395 968 393 257 1011 1230 831 1420 8260 178 181 209 904 335 519 419 691 2724 489 4324 731 308 298 305 539

681 528 3168 1719 480 18388 487 592 266 2283 29915 435 824 1660 1794 3562 250 405 1243 1143 312 1590 361 941 387 252 993 1200 816 1401 8157 174 172 205 882 324 496 410 673 2671 476 4163 709 292 292 296 530

655 515 3128 1658 468 17814 472 579 259 2247 29048 427 808 1619 1766 3495 241 397 1210 1105 300 1551 341 916 379 245 964 1176 804 1389 7977 170 167 200 852 311 476 398 651 2634 469 4080 694 278 288 287 524

594 483 3028 1548 442 16134 442 554 245 2165 27618 404 762 1547 1716 3355 224 378 1141 1025 277 1471 287 863 364 232 917 1122 778 1357 7695 161 152 191 800 286 432 378 611 2543 448 3837 657 247 277 268 510


TOP 15 ACHIEVERS SR.NO

SCRIPT NAME

PREV CLOSE

// CMP

% CHANGE

TOP 15 LOOSERS SR.NO

SCRIPT NAME

PREV CLOSE

CMP

% CHANGE

1

RELIANCE INDUS

883.85

911.90

+3.17%

1

BHARTI INFRA

426.75

380.15

-10.92%

2

KOTAK MAH BANK

993.40

1023.20

+3.00%

2

BOSCH LTD

20457.05

18965.90

-7.29%

3

BAJAJ

1745

1787.35

+2.43%

3

ADANI PORTS

432.05

400.95

-7.20%

4

LTD ICICI BANK LTD

318.50

325.10

+2.07%

4

ONGC

191.10

177.60

-7.06%

5

MARUTI SUZ LTD

8183.50

8348.35

+2.01%

5

VEDANTA LTD

323.85

307.60

-5.02%

6

MAHI AND MAHI

1392.95

1416.75

+1.71%

6

AUROBIND PHAR

740.10

708.80

-4.23%

7

AMBUJA CEMENT

270.10

274.50

+1.63%

7

ULTRATECH CEM

4450.85

4267.05

-4.13%

8

STATE BANK OF IND

333.55

337.50

+1.18%

8

COAL IND LTD

284.35

282.80

-4.06%

9

INFOSYS

962.05

970.95

+0.93%

9

IND BULLHO FIN

1225.05

1184

-3.35%

10

HERO MOTO CORP

3605.10

3631.15

+0.72%

10

L AND T

1264.95

1222.80

-3.33%

11

YES BANK LTD

304.05

306.10

+0.67%

11

HCL TECH

867.05

840

-3.12%

12

NTPC

176.55

177.55

+0.57%

12

GAIL INDIA LTD

457.10

444.75

-2.70%

13

EICHER MOTOR

30551.65

30707.45

+0.51%

13

WIPRO LTD

302.65

295.15

-2.48%

14

HDFC BANK

1822

1825.55

+.19%

14

SUNPHARAM

527.85

517.10

-2.04%

15

INDIAN OIL CORP

394.85

395.15

+0.08%

15

BHARTI AIRTEL

503.45

493.50

-1.98%

FINANCE

AM 204 BUJ A CEM ENT

232

+13.67 %

AMBUJA CEMENT


NEXT WEEK STARS (AS PER TECHNICAL ANALYSIS) NSE FUTURE

NSE FUTURE : BUY MARUTI FUTURE ABOVE 8300 TGT 8400 SL 8250 NSE FUTURE : BUY EICHER MO FUTURE ABOVE 31000 TGT 32000 SL 30750

NSE CASH

NSE CASH : BUY HSCL CASH ABOVE 166 TGT 175 SL 161 NSE CASH : BUY FRETAIL CASH ABOVE 506 TGT 530 SL 490


NSE - WEEKLY NEWS LETTERS � TOP NEWS OF THE WEEK

SUN PHARMACEUTICALS INDUSTRIES Consolidated Results Q2FY18: (Rs. in crore) Q2FY18

YOY( %)

REVENUE

6650.34

19.50

EBITDA

1375.61

56.60

EBITDA MARGIN (%)

20.70

1767

NET PROFIT

912.12

59.20

Sun Pharmaceutical Industries reported consolidated results for the quarter came in mixed versus street estimates. Revenue for the quarter came in 3.1 % lower than the estimated figure of Rs. 6861 crore. EBITDA for the quarter came in 1.3 % higher than the estimated figure of Rs. 1357 crore. And lastly, net profit for the quarter came in 13.7 % higher than the estimated figure of Rs. 802 crore. Sun Pharmaceutical Industries consolidated revenue for the quarter came in at Rs. 6650.34 crore, registering 19.5% yoy decline. EBITDA for the quarter fell by 56.6% yoy to Rs. 1375.61 crore with a corresponding margin contraction of 1767 bps. EBITDA margin for the quarter stood at 20.7%. This margin contraction was aided by 10.4% increase in its employee benefit expenses. The PAT for the quarter came in at Rs. 912.12 crore, yoy decline of 59.2%. This was due to 193% increase in its finance cost


BANK OF BARODA 1

Standalone Results Q2FY18: (Rs. in crore) Q2FY18

YOY( %)

NII

3720.20

8.60

NPA ( %)

11.20

19

PROVISIONS

2329

29.80

NET PROFIT ( ADJUSTED)

355

35.70

Bank of Baroda reported its Q2FY18 results today. The quarterly numbers missed street estimates on net profit. The net profit for the quarter was 22.6% below the street estimates of Rs.459 crore. However, net interest income for the quarter was 5.7% above the street estimates of Rs.3519 crore. The NII for the quarter was saw 8.6% yoy increase to Rs.3720 crore vs R s.3426 crore in Q2FY17. This was largely due to 2.6% yoy increase in interest income to Rs.10753 crore. While, interest expendedremained flat. The asset quality for the quarter showed steady performance. The GNPA’s for the quarter rose by 8% yoy to Rs.46306 crore. The GNPA’s as percentage to total advances declined by 19 bps to 11.16% vs 11.35% in Q2FY17. The NNPA also declined by 41 bps to 5.05% vs 5.46% in previous year corresponding quarter. The provisions for the quarter continue to remain inch upwards for aging stressed asset problem. The provisions for the quarter rose by 30% yoy to Rs.2329 crore vs Rs.1795 crore Q2FY17. The resultant net profit for the quarter declined by 35.7% yoy to Rs.355 crore in previous year corresponding quarter.Also, the PCR for the quarter stood at 67.18%. Further advances and deposits grew by 9% & 3% yoy to Rs.387301 crore & 583212 crore respectively


GAIL (INDIA) LTD 2 Standalone Results Q2FY18: (Rs. in crore) Q2FY18

YOY( %)

REVENUE

12409.60

2.90

EBITDA

2411.70

27.50

EBITDA MARGIN (%)

19.40

375

NET PROFIT

1309.60

41.60

GAIL ltd standalone revenue for the quarter came in at Rs. 12409.6 crore, registering 2.9% yoy increase. This was primarily driven by 10% and 31% yoy increase in revenues from Natural Gas transmission services and LPG and Liquid Hydrocarbons segment. EBITDA for the quarter rose by 27.5% yoy to Rs. 2411.7 crore with a corresponding margin expansion of 375 bps. EBITDA margin for the quarter stood at 19.4%. This margin expansion was aided by favourable movements in inventories. The PAT for the quarter came in at Rs. 1309.6 crore, yoy increase of 41.6%. This was due to 23% yoy decline in interest expenses.


TATA GLOBAL BEVERAGES 3

Consolidated Results Q2FY18: (Rs. in crore) Q2FY18

YOY( %)

REVENUE

1692.14

4.40

EBITDA

213.96

15.00

EBITDA MARGIN (%)

12.60

117

NET PROFIT

154.50

10.70

Tata Global Beverages consolidated revenue for the quarter came in at Rs.1692.14 crore, registering 4.4% yoy increase. This was primarily driven by 3.6% growth in its tea business and 11.2% growth in its coffee business. EBITDA for the quarter rose by 15% yoy to Rs. 213.96 crore with a corresponding margin expansion of 117 bps. EBITDA margin for the quarter stood at 12.6%. This margin expansion was aided by 3.8% decline in its employee benefit expenses. Unadjusted PAT for the quarter came in at Rs. 154.5 crore, yoy increase of 10.7%. This was due to 58.4% decline in its finance cost.


HDFC LIFE - Shares of HDFC Standard Life Insurance got listed at a 7% premium on the stock exchanges. The stock rose as much as 8.27% to Rs 314 against its issue price of Rs 290. HDFC Life's initial public offer was subscribed 4.9 times by the end of the third day, with the insurer receiving bids for 1.08 bn shares as against 219.76 mn shares on offer. The retail portion of the offer was subscribed 0.93 times and the non-institutional investor portion was subscribed 2.29 times, data on the bourses showed.

BANK OF BARODA - BoB announced that it is planning to raise Rs 6,000 Cr in equity capital through either a Qualified Institution Placement and/or a rights issue. A meeting of the Finance Committee of the board will be held on Nov 21, 2017 to consider and approve raising of equity fund. This development comes after the bank reported an improvement in its operational performance. BoB reported that credit growth for Q2FY18 came in at a healthy 13.8% YoY after the retail and home loan segment reported a growth of 25.5% and 34.1% respectively. Net Interest Margin for the bank also improved to 2.31% in Q2FY18 from 2.12% in Q1FY18.

BANK NIFTY - Nifty Bank surged as much as 2% achieving lifetime high of 25,902.50 after the Moody’s upgraded the sovereign credit rating of India. Moody's Investors Service upgraded the Government of India's local and foreign currency issuer ratings to Baa2 from Baa3 and changed the outlook on the rating to stable from positive. Moody's has also upgraded India's local currency senior unsecured rating to Baa2 from Baa3 and its short-term local currency rating to P-2 from P-3. The price action occurred in both, PSU and Private Banking stocks in the market session. PSU Banking stocks like Punjab National Bank, Bank of Baroda and Canara Bank gained more than 3% in the initial hours of the market session. Private Banks like ICICI Bank, Yes Bank, and Axis Bank gained more than 2% accelerating Nifty Bank to new 52 week high. Nifty Bank is trading at a level of 25,829 points, up by 1.5% or 383 points and Nifty PSU Bank is trading at a level of 4,134 points, up by 2.57% or 104 points at 9.40 am.


CIPLA - Cipla has received final approval from USFDA to market its Budesonide Inhalation Suspension; which is a generic version of AstraZeneca's Pulmicort Respules.Budesonide Inhalation Suspension is prescribed for the maintenance treatment of asthma and as prophylactic therapy in children from 1-8 years. The product is available for shipping immediately. As reported by IMS Health, Pulmicort Respules and its generic equivalents had sales of approximately US $825 mn in the US for the 12- month period ending September 2017. We are positive on Cipla as more generic drug launches in the US and in UK post approval are expected to augment revenue. Cipla’s US business growth is expected to improve from 3QFY18, driven by the launch of at least one niche product per quarter. Also, gradual recovery in India business should lead to better margins going forward. Cipla is a major player in the domestic formulations market, which contributes ~45% to its total revenue. Cipla makes drugs to treat cardiovascular disease, arthritis, diabetes, weight control, depression and many other health conditions. Its products are distributed in more than 180 countries worldwide. Cipla Ltd is currently trading at Rs 603.3, up by Rs 10.3 or 1.73% from its previous clos ing of Rs 593 on the BSE.

AHLUWALIA CONTRACTS ( INDIA ) LTD - Ahluwalia Limited has bagged new orders worth Rs 311 cr for the construction of Institutional, Hospital and Commercial including Electrical, Plumbing and Fire fighting services. Ahluwalia Ltd is one of India’s leading EPC companies with a pan India presence. The company is engaged in construction of wide range of structural buildings such as hospitals, hotels, educational institutions, etc. New orders worth of Rs. 171 cr for construction of 300 Beds Hospital in existing premises of ESIC Hospital Kolkata and worth Rs. 140 cr for other construction work. Company is currently L1 in project valued Rs. 315 cr and the projects bedded under pipeline are Rs. 1600 cr. The total order inflow during FY17-18 stands at Rs. 866 cr.The stock is currently trading above its 200 DMA.

GAIL INDIA - The net profit stood at Rs 1309.6 Cr for the quarter ended September. GAIL Ltd standalone revenue for the quarter came in at Rs 12,409.6 crore, registering 2.9% yoy increase. This was primarily driven by 10% and 31% yoy increase in revenues from Natural Gas transmission services and LPG and Liquid Hydrocarbons segment. EBITDA for the quarter rose by 27.5% yoy to Rs 2,411.7 crore with a corresponding margin expansion of 375 bps. EBITDA margin for the quarter stood at 19.4%.


This margin expansion was aided by favorable movements in inventories. Operating margin expanded to 16.68% in Jul-Sep from 12.92% in the same period last year. The scrip opened at Rs 463 and has touched a high and low of Rs 463 and Rs 441.5 respectively. Gail India Limited is a leading natural gas

CORPORATION BANK - The bank, has intimated that it will raise Tier 2 capital amounting to Rs 500 crores.The funds are raised through private placement of Tier-2 capital as per the Basel III guidelines in the nature of Debentures at an annual coupon of 8.02% p.a., discovered through electronic bidding mechanism of NSE on November 9, 2017. The tenor of the debenture is 10 years from the date of allotment. The credit rating rated by India Ratings & Research Pvt Ltd is IND AA and by Brickwork Ratings India Pvt Ltd is BWR AA. The face value is Rs 10,00,000 or Rupees Ten Lakhs per debenture. The Interest payment is annual and shall not be cumulative. The stock has rallied around 20% from quarterly low of Rs 38.30 made on October 23, 2017, on account of the announcement of recapitalization plan by the government in the public sector banks through recap-bonds. The quarterly results for September 2017 of the bank are to be declared on November 14, 2017.

JAIN IRRIGATION - Jain Irrigation has bagged Rs 125 Cr irrigation project for Waghur Canal integrated irrigation project. The owner of the project is Tapi Irrigation Development Corp., Government of Maharashtra. This canal project will be implemented with pressurized HDPE/PVC pipe distribution in the command area of 16,536 acres in Jalgaon district of Maharashtra state. The project is expected to benefit more than 5,000 farmers. This project has planned to improve water use efficiency up to 50-55% in canal command areas by using pressurized piped distribution network and on-farm micro-irrigation system as per the mandate of GOI under Prime Minister Krishi Sinchai Yojana. The project will fulfill the national agenda ‘Har khet ko pani’ and ‘more crop per drop’ ensuring higher productivity and sustainable income for the farmers. Jain Irrigation has successfully commissioned many other irrigation projects on turnkey basis in the state of Maharashtra, Karnataka, Gujarat, Himachal Pradesh and others.


The micro irrigation systems demand in India is expected to be Rs 40,000 Cr over the next 6 -7 years, and Jain Irrigation stands to gain as it is the market leader in this space. The growth in MIS will be propelled by the thrust of central and state governments on micro -irrigation projects; besides, crops like sugarcane, cotton, pulses, and oilseeds are increasingly finding acceptance of micro-irrigation.

RENUKA SUGARS - Shree Renuka Sugars touched a high of Rs 17.80. The stock touched its 2-month high, before the board meeting to be held on Tuesday for the approval of equity shares or any other securities for debt restructuring exercise. Post the news built up, several large deals happened on the exchange in a price range of Rs 15.70 to Rs 17.50 today, with a total of 14.7 million shares traded on the NSE. This was more than the daily average of 6 million shares.

PVR - Shares of PVR touched a high of Rs 1,428.95 after the company announced that it will acquire a stake in iPic. The shares soared by 3%. iPic-Gold Class Entertainment, LLC is an US-based luxury restaurant and theatre company. The theatre company owns and operates 16 theatres with 121 screens across 10 states in the US, and plans to list its shares on the exchanges. The promoters holding in the company stood at 20.25% while Institutions and NonInstitutions held 67.81% and 11.93% respectively.

COX & KINGS - Shares of Cox & Kings reported a surge of over 4% as the company announced of listing an IPO for its education tour business. The shares of the company reversed their two-session losses to rise by 4% to a high of Rs 260. The education tour business, in Europe and Australia, is part of Cox & Kings operations post its acquisition of the UK-based Holidaybreak for Rs 2,300 Cr in 2011. Cox & Kings ownership in the education segment stands at 65.6%. The segment contributes 30% to the company's revenue and 35% to its operating profit on a consolidated basis. The stock has gained over 42% so far this year. Cox & King is a well-established travel company having 30% market share in outbound travel and operates in 25 countries.

UCO BANK - Shares of UCO Bank rose 4% after a media report said that the bank has invited initial bids for sale of 17 non-performing accounts worth Rs 18.96 billon. The bank has invited bids from asset reconstruction companies, other banks, financial institutions, and non -banking finance companies. The last date of submission of bids is November 20.


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