Equity Research Report 18 December 2017 Ways2Capital

Page 1


TECHNICAL TREND ( NIFTY - BANK NIFTY FUTURES ) NIFTY FIFTY : - Nifty futures and bank nifty future market closed at 10276/ 25214.according to technical analysis if nifty futures and bank nifty future moves up-word in upcoming treading sessions then 10430/ 25800 will be next resistance level, if it break this level then nifty futures and bank nifty future can touch 10530 / 26200 level . it will be hard resistance. meanwhile in reveres there is support on 10150/ 24800 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 10000/24500

Monday, 18 Dec 2017


TECHNICAL VIEW (NIFTY- BANK NIFTY FUTURES )

NIFTY DAILY

WEEKLY

MONTHLY

R2

R1

PP

S1

S2

10674

10388

10246

10104

9819

R2

R1

PP

S1

S2

10949

10459

10215

9968

9478

R2

R1

PP

S1

S2

11510

10700

10295

9891

9081

R2

R1

PP

S1

S2

26034

25434

25134

24834

24234

R2

R1

PP

S1

S2

26725

25718

25214

24710

23700

R2

R1

PP

S1

S2

28595

25958

25575

24568

22555

BANK NIFTY DAILY

WEEKLY

MONTHLY

MOVING AVERAGE 21 DAYS

50 DAYS

100 DAYS 200 DAYS

NIFTY

10285

10274

10178

9765

BANK NIFTY

25492

25165

24833

23673

PARABOLIC SAR

DAILY WEEKLY MONTHLY

NIFTY

10450

9131

7674

BANK NIFTY

24910

21325

16225


PATTERN FORMATION ( NIFTY )

Details of Chart - Last week nifty opened at 10380 and close at 10317 made high of 10400 and low of 10163, moves almost 237 point. according to technical analysis if nifty can sustain the level of 10400 it can go again its life time high. if it can not sustain on this level and break the level of 10200 it can go upto 10000..


PATTERN FORMATION ( BANK NIFTY )

Detail of Chart - Last week bank nifty opened at 25450 and close at 25510 made high of 25590 and low of 24944 ,moves almost 600 point.according to technical analysis bank niftyshows its consolidate movement in last week,bank nifty sustain the level of 2500 from this level now bank nifty can go upside direction upto the level of 26200,if it can not sustain the level of 25000 it can go downside direction upto the 24200.


NSE EQUITY DAILY LEVELS COMPANY

R3

R2

R1

PP

S1

S2

S3

ADANIPORTS NAME AMBUJACEM ASIANPAINT

EQ EQ EQ

446 287 1205

422 276 1163

413 270 1142

399 265 1121

389 259 1100

375 253 1080

352 242 1038

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

750 584 3458 1923 576 21389 575 667 289 2725 31916 540 952 1816 2009 3752 262 502 1387 1280 330 1798 411 1078 457 283 1110 1309 940 1650 9525 194 201 216 971 336 566 441 766 2866 552 4642 811 332 306 344 606

712 564 3325 1810 549 20581 545 627 278 2516 30544 514 918 1764 1933 3618 251 468 1354 1236 318 1733 386 1046 432 273 1066 1256 896 1553 9334 186 192 209 946 325 544 424 729 2724 527 4460 768 313 297 328 588

690 557 3253 1767 533 20133 535 601 275 2443 30047 500 905 1741 1902 3558 248 456 1339 1220 311 1704 370 1032 422 269 1050 1231 878 1518 9242 181 188 204 933 319 531 414 713 2634 512 4389 743 306 293 322 579

675 545 3192 1697 522 19773 515 587 268 2307 29173 489 884 1712 1857 3484 240 435 1322 1193 305 1668 362 1013 407 263 1022 1203 852 1455 9144 178 183 201 921 314 521 406 692 2583 503 4278 724 293 288 312 571

653 537 3120 1655 506 19325 505 561 264 2234 28675 474 871 1689 1826 3424 237 422 1306 1176 298 1638 346 1000 398 259 1006 1178 834 1420 9052 173 178 196 908 308 508 397 676 2492 487 4206 699 286 284 306 561

638 525 3059 1585 495 18964 485 547 257 2098 27801 463 849 1659 1781 3350 229 401 1289 1150 293 1603 337 981 382 253 978 1150 808 1358 8954 169 173 193 896 303 499 389 655 2441 478 4095 681 274 279 295 553

601 506 2926 1472 468 18156 455 508 247 1889 26429 437 815 1607 1705 3216 219 367 1256 1107 281 1537 313 948 357 243 934 1098 764 1260 8764 161 164 185 871 292 476 372 618 2299 454 3913 638 254 270 279 535


TOP 15 ACHIEVERS SR.NO

SCRIPT NAME

PREV CLOSE

// CMP

% CHANGE

TOP 15 LOSERS SR.NO

SCRIPT NAME

PREV CLOSE

CMP

% CHANGE

1

DR. REDDY LAB

2185.45

2371.50

+8.51

1

BHARTI INFRA

373.70

354.50

-5.14

2

MAHI. AND MAHI.

138.15

1483.40

+6.86

2

CIPLA

603.10

576.45

-4.42

3

LUPIN LTD

822.85

860.30

+4.55

3

ICICI BANK

310.75

303.15

-2.45

4

HIND PETROL

428.45

443.80

3.58

4

TATA CONSUL

2601.50

2545.60

-2.15

5

ULTRATECH CEM

4165.55

4311.80

3.51

5

POW GRI CORP

203.10

198.85

-2.09

6

HCL TECH

870.45

891.80

2.45

6

NTPC

180.40

177.45

-1.64

7

WIPRO LTD

282.90

289.70

2.40

7

ASIAPAINT LTD

1135.50

1118.70

-1.48

8

HDFC

1682.95

1723

2.38

8

TATA MOTORS

411.15

405.10

-1.47

9

VEDANTA

291.20

298

2.34

9

UPL

728.05

717.80

-1.41

10

COAL INDIA LTD

264.85

271

2.32

10

L AND T

1220.35

1203.55

-1.38

11

INFOSYS

1001.85

1022.90

2.10

11

AMBUJA CEM

268.10

264.40

-1.38

12

KOTA MAHI BANK

1009

1030.10

2.09

12

AUR PHARAMA

672.50

667.60

-0..73

13

INDIAN OIL CORP

404.85

413.15

2.05

13

SUN PHARAMA

521.85

518.35

-0.67

14

ADANI PORTS

393.40

401.35

2.02

14

HERO MOT COR

3519.55

3503

-0.47

15

HDFC BANK

1840.40

1873.45

1.80

15

TATA STEEL

697.80

694.70

-0.44

AM 204 BUJ A CEM ENT

232

+13.67 %

AMBUJA CEMENT


NEXT WEEK STARS (AS PER TECHNICAL ANALYSIS) NSE FUTURE

NSE FUTURE : NSE FUTURE: BUY VEDL FUTURE ABOVE 301 TGT 310 SL 299 NSE FUTURE : BUY COAL INDIA FUTURE ABOVE 271 TGT 281 SL 268

NSE CASH

NSE CASH : BUY DELTA CORP IN NSE CASH ABOVE 259 TGT 282 SL 249 NSE CASH : BUY CASTROL INDIA IN NSE CASH ABOVE 415 TGT 451.8 SL 409


NSE - WEEKLY NEWS LETTERS � TOP NEWS OF THE WEEK

EXIT POLLS INDICATES BJP TO RETAIN POWER IN GUJARAT AND HIMACHAL PRADESH Exit polls on Thursday unanimously predicted that BJP would return to power in Gujarat and also indicated a landslide victory in Himachal Pradesh. Chanakya-News 24 predicted highest seats for BJP (135 +/-11) for Gujarat Elections out of 182 assembly seats. Whereas others have predicted between 99-135 seats for BJP in Gujarat. If these polls are proved right, it would be a huge sentimental boost for BJP and it may help BJP to garner votes in 2019 general elections. The exit pool outcome if proved right will be a setback for Congress. The exit poll says that development has overshadowed the concerns of two big reforms GST and demonetization.

IDBI BANK DECLARES RUCHI SOYA A WILFUL DEFAULTER - IDBI Bank, one of the lenders to Ruchi Soya Industries Limited has declared the company a wilful defaulter. Ruchi Soya Industries Limited is one of India’s leading edible oils company with product portfolio spanning across edible cooking oils, soya foods, bakery products, Vanaspati ghee, healthy foods and soaps.The company, while having popular brands in edible oil and soya chunks, suffered heavily in 2015 due to an unprecedented crash in global castor seed prices. The crash, coupled with sagging revenues in its core oil business, led to dwindling profits and the company was in the red in FY16. As on March 31, 2017 Ruchi had debt of more than Rs55bn on its consolidated books and a D/E ratio of close to 6x. Apart from IDBI Bank, Standard Chartered Bank and DBS Bank too have filed insolvency cases against the company.

NCC TO RAISE RS550CR THROUGH QIP - The board of NCC has approved raising of upto Rs550cr in equity via the Qualified Institutional Placement route. The company had last raised funds through the QIP route in FY2010 when the company had raised Rs367cr. The stated purpose of the QIP in FY2010 was to reduce short term borrowings as well as invest in infrastructure projects in roads and power sector.Though the company has not stated the purpose of the QIP, we feel that it is possible that the company would be looking to deleverage its balance sheet. As of FY17,


The short term borrowings of the company stood at Rs2,016cr on a consolidated basis. NCC is one of the top three infrastructure construction companies in India in terms of revenue. Company's current order book is majorly contributed by building, transportation, O&G and water and railway. It also has presence in Middle East.With strong order inflows, company’s order book stands at Rs22,009cr which translates into healthy revenue visibility. Moreover, company has been declared L1 in orders worth Rs2,500-3,000cr in Q2FY18. Also, it expects to win some EPC contracts in the road division and building contracts in Amravati.

CANARA BANK TO RAISE FUNDS UP TO RS1800CR - canara bank has received an approval to raise capital funds through Additional Tier I instruments in rupee terms domestically for an amount not exceeding Rs1800cr in single or multiple tranches to maintain healthy CRAR during the current year. The Board of the company vide its order dated December 12, 2017 has permitted for the same.The fundraising would act positively for the bank as it would aid it in improve its capital adequacy ratio, which in turn would partly fund its future loan growth besides help it to provide for its bad loans.We expect a fall in slippages by 140 bps to 2% over FY17-19E attributable to improving the domestic economic outlook, its follow up on recovery and the recent RBI ordinance on NPA.We expect the improving credit deposit ratio by 397 bps over FY17-19E to 73% and improving CASA to contribute to NIM improvement. We expect its overall NIM to improve by 42 bps over FY16-FY19E to 2.6%. We expect its RoE to improve by 276 bps over FY17-19E to 6%.Canara Bank’s improving asset quality, better NIM prospects and rising noninterest income bodes well for its profitability over FY17-19E. PNB TO RAISE UP TO RS5,000CR THROUGH QIP - Punjab National Bank has initiated the process of raising up to Rs5,000cr through Qualified Institutional Placement. The committee of directors for capital mop-up at a meeting approved opening of the QIP.The bank has approved the floor price of Rs176.35 per share of face value Rs2. This fundraising would act positively for the bank as it would aid it in improve its capital adequacy ratio, which in turn would partly fund its future loan growth besides help it to provide for its bad loans.


LUPIN GETS USFDA NOD FOR GENERIC OF SAFYRAL TABLETS - It has received final approval for its Tydemy and Levomefolate Calcium Tablets, 3 mg/0.03 mg/0.451 mg and Levomefolate from the USFDA to market a generic version of Safyral Tablets of Bayer HealthCare Pharmaceuticals Inc. Tydemy is indicated for use by women to prevent pregnancy and to raise folate levels in women who choose to use an oral contraceptive for contraception. Drospirenone, Ethinyl Estradiol, and Levomefolate Calcium Tablets, 3mg/0.03 mg/0.451 mg and Levomefolate Calcium Tablets, 0.451 mg tablets had annual sales of approximately $22.9 million in the US. Lupin, a manufacturer of branded plus generic formulations, biotechnology products and APIs, earns 47% from its US business. Chronic and semi-chronic therapy contributes 88% to revenue, of which chronic contributes 65% of total revenue in the domestic market.

ITC OPENS RS1,500CR INTEGRATED FOOD PARK IN PUNJAB, MILK-BASED BEVERAGES TO BE LAUNCHEDITC - Rolled out its largest integrated food manufacturing and logistics facility at Kapurthala, Punjab on December 14, 2017. This unit would have the wheat mandis as well to procure the grain from farmers, in addition to FMCG units. The facility is spread across 8 lakh sq.ft with initial investment of Rs1,500cr and would be producing atta, noodles, wafers, biscuits, fruit juices and other fruit-based beverages. In addition to FMCG products, ITC would launch a range of ready-to-drink milk-based beverages and frozen desserts from this new plant to accelerate its dairy business. The first dairy-based product is expected to be launched in the second or third quarter of next fiscal year. ITC’s expansion plan in dairy business is a part of its long-term goal of reaching Rs100,000cr revenue from the non-cigarette business by 2030. The company had earlier announced an investment of Rs25,000cr in 65 projects and expects one or two facilities to be operational every year. ITC enjoys leadership position in all the segments it caters to, and is continuousl y trying to gain market share in its FMCG segment through new product launches and newer segments. Cigarettes, where it has 80% market share has been marred by the aggressive tax incidence under GST. Additionally, the uncertainty of timelines for tax rate revision under GST makes the company more prone to volume volatility. Further, though, the FMCG segment is set to gain from the supply chain benefits post GST implementation and shift in demand to the organised players, we remain cautious on its profitability.


BHEL BAGS RS7,300CR EPC CONTRACT FOR 1,320 MW SUPERCRITICAL POWER PROJECT IN TAMIL NADU - Against stiff International Competition Bidding, Bharat Heavy Electricals Limited has won an order for setting up a 1,320 MW Supercritical Thermal Power Project in Tamil Nadu. The order valued at over Rs7,300cr, for setting up the 2x660 MW Udangudi TPP has been placed on BHEL by Tamil Nadu Generation and Distribution Corporation Ltd. Significantly, this is the fourth order for supercritical sets finalized in the last three years by TANGEDCO, and all the four orders have been won by BHEL. The previous three orders viz 2x660 MW Ennore SEZ, 1x800 MW North Chennai Supercritical TPP Stage-III and 2x800 MW Uppur TPP were also secured by BHEL on ICB basis, reinforcing its position as the frontrunner in the power generation equipment industry in India. The key equipments for the project will be manufactured at BHEL’s Trichy, Haridwar, Bhopal, Ranipet, Hyderabad, Jhansi, Thirumayam and Bengaluru plants while the company's Power Sector - Southern Region shall be responsible for civil works, erection and commissioning of the equipment. The implementation of the new projects will help foster growth in Tamil Nadu and provide easy access to electricity to the people of the state. At present, BHEL has a significant share of 83% in the state’s coal-based generating capacity and has been a major partner in the power development programme of Tamil Nadu. BHEL is India’s largest power plant equipment manufacturer with 20,000 MW pa manufacturing capacity. It is the market leader in generation equipment space with 55% market share of the total installed power capacity.

EVEREADY INDUSTRIES GETS ORDERS WORTH RS23.85CR - It has received orders for supply of celling fans and smart LED Street lighting Luminaries worth Rs23.85cr. Eveready Industries India is a manufacturer of dry cell batteries, flashlights, lighting and packet tea. It derived 55% revenue from dry cell batteries, 14% from flashlights, 22% from Lighting & Electricals and 9% from others in FY17. The company has recently forayed into home appliances business and is a known brand in east and north Indian markets. This is expected to keep volumes buoyant by 10-12% and likely to garner 65% market share by FY19E. It has shifted its business from declining CFL market to growing LED market and has launched new LED products. This shift is expected to add Rs.25cr to its revenue by FY18E.


RENAISSANCE JEWELLERY HITS 20% UPPER CIRCUIT ON STRONG Q2 NUMBERS - Renaissance jewellery reported more than doubled net profit at Rs16.9cr in September quarter. It had profit of Rs7.4cr in the same quarter year ago. The company’s revenue grew 34% at Rs384cr against Rs286cr in the corresponding quarter of previous fiscal. EBITDA margin improved to 6.94% from 5.6% in previous year quarter. Renaissance Jewellery Ltd. is engaged majorly in design, manufacturing & sale of jewellery products in overseas and India. It has 3 subsidiaries in UK, US & UAE. Its Indian subsidiary, Housefull International is into retail furniture business. It sells its products through specialty jewellery chain & online portals. It designs low cost products for Amazon, Hallmark, JCPenney and Walmart abroad. Company witnessed a gradual transition from gold to silver.

HDFC GROUP STOCK UP POST FUND RAISING PROPOSAL -The stocks of HDFC group were up following a fund raising proposal. HDFC Bank is up by 2.28% at Rs1,880, while HDFC Ltd stock is up by 1.3% at Rs1,730. HDFC bank’s board will meet on Wednesday, December 20, 2017 to consider a proposal for raising of funds. It is considering raising funds through a qualified institutional placement, which may also include a preferential issue to its parent HDFC Ltd. The fund raising will act as a positive for the bank as it wou ld improve capital adequacy ratio to fund future loan growth. HDFC Bank had last raised Rs9,800cr in February 2015 through a mix of ADRs and a QIP. HDFC bank stock is trading at 3.4x FY20E P/BV. We have positive outlook the stock. Mortgage lender HDFC Ltd., which holds 25.7% in HDFC bank, will also consider raising capital on December 19, which would be used to subscribe to HDFC Bank’s preferential allotment. This will improve its stake in HDFC Bank which will act positive for the mortgage lender.


LEGAL DISCLAIMER

This Document has been prepared by Ways2Capital (A Division of High Brow Market Research Investment Advisor Pvt Ltd). The information, analysis and estimates contained herein are based on Ways2Capital Equity/Commodities Research assessment and have been obtained from sources believed to be reliable. This document is meant for the use of the intended recipient only.

This document, at best, represents Ways2Capital Equity/Commodities Research opinion and is meant for general information only. Ways2Capital Equity/Commodities Research, its directors, officers or employees shall not in any way to be responsible for the contents stated herein. Ways2Capital Equity/Commodities Research expressly disclaims any and all liabilities that may arise from information, errors or omissions in this connection. This document is not to be considered as an offer to sell or a solicitation to buy any securities or commodities.

All information, levels & recommendations provided above are given on the basis of technical & fundamental research done by the panel of expert of Ways2Capital but we do not accept any liability for errors of opinion. People surfing through the website have right to opt the product services of their own choices.


Any investment in commodity market bears risk, company will not be liable for any loss done on these recommendations. These levels do not necessarily indicate future price moment. Company holds the right to alter the information without any further notice. Any browsing through website means acceptance of disclaimer.

DISCLOSURE High Brow Market Research Investment Advisor Pvt. Ltd. or its associates does not do business with companies covered in research report nor is associated in any manner with any issuer of products/ securities, this ensures that there is no actual or potential conflicts of interest. To ensure compliance with the regulatory body, we have resolved that the company and all its representatives will not make any trades in the market. Clients are advised to consider information provided in the report as opinion only & make investment decision of their own. Clients are also advised to read & understand terms & conditions of services published on website. No litigations have been filed against the company since the incorporation of the company.

Disclosure Appendix: The reports are prepared by analysts who are employed by High Brow Market Research Investment Advisor Pvt. Ltd. All the views expressed in this report herein accurately reflects personal views about the subject company or companies & their securities and no part of compensation was, is or will be directly or indirectly related to the specific recommendations or views contained in this research report.

Disclosure in terms of Conflict of Interest: (a) High Brow Market Research Pvt. Ltd. or his associate or his relative has no financial interest in the subject company and the nature of such financial interest; (b) High Brow Market Research Pvt. Ltd. or its associates or relatives, have no actual/beneficial ownership of one percent or more in the securities of the subject company, (c) High Brow Market Research Pvt. Ltd. or its associate has no other material conflict of interest at the time of publication of the research report or at the time of public appearance;


Disclosure in terms of Compensation: High Brow Market Research Investment Advisor Pvt. Ltd. policy prohibits its analysts, professionals reporting to analysts from owning securities of any company in the analyst's area of coverage. Analyst compensation: Analysts are salary based permanent employees of High Brow Market Research Pvt. Ltd.

Disclosure in terms of Public Appearance: (a) High Brow Market Research Pvt. Ltd. or its associates have not received any compensation from the subject company in the past twelve months; (b) The subject company is not now or never a client during twelve months preceding the date of distribution of the research report. (c) High Brow Market Research Pvt. Ltd. or its associates has never served as an officer, director or employee of the subject company; (d) High Brow Market Research Pvt. Ltd. has never been engaged in market making activity for the subject company.


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.