Date: 6 May, 2020

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DOMESTIC INDICES

Close Points % Change

SENSEX 31454 -262 -0.83

NIFTY 9206 -88 -0.95

MIDCAP 11391 -111 -0.97

SMALL CAP 10650 -104 -0.97

SECTORAL INDICES

Close Points % Change

POWER 1465 18 1.27

OIL & GAS 11623 32 0.28

IT 13528 -6 -0.04

TECK 6870 -10 -0.15

AUTO 12361 -70 -0.57

CD 18864 -198 -1.04

METAL 6124 -67 -1.08

CG 11411 -170 -1.47

Healthcare 15120 -245 -1.60

Finance 4402 -87 -1.93

BANKEX 22142 -542 -2.39

REALTY 1310 -40 -2.97

BSE 200 GAINERS/LOSERS

GAINERS % LOSERS %

NIACL 9.72 UBL -6.17

COROMANDEL 7.11 VOLTAS -6.03

MARICO 4.10 AUBANK -4.99

SBILIFE 3.99 FRETAIL -4.94

NAUKRI 3.65 EDELWEISS -4.89

ADVANCE/DECLINES

BSE %

ADVANCES 838 32

DECLINES 1561 60

UNCHANGED 188 7

INSTITUTIONAL ACTIVITY

Rs Cr 05/05/20 04/05/20 May Total

FII -1059 -1374 -2433(prov.)

MF -995 -1662 -2657(prov.)

Markets could open flat and see a smaller range movementtoday compared to recent days…

Indian markets could open flat today following mildly positiveAsian markets today and US markets that closed in the positiveon Tuesday though off their day highs.

U.S. stocks ended slightly higher Tuesday for a second straightday, but finished well off session highs, as investors weighed acloudy picture of the economy against U.S. businesses startingto slowly reopen after a period of stultifying coronaviruslockdowns. The major averages cut their gains in the final hourof trading after Federal Reserve Vice Chairman Richard Claridatold CNBC’s “Closing Bell” that the economy may need morefiscal and monetary support.

Rising crude oil prices also bolstered equity benchmarks. Afterthe close Tuesday, Walt Disney & Co. said earnings fell morethan 90% as the pandemic wiped out $1 billion in theme-parksales.

West Texas Intermediate crude oil for June delivery roseTuesday as easing state lockdowns fueled hope for higher oilprices, with crude gaining $4.17, or 20.5%, to settle at $24.56 abarrel on the New York Mercantile Exchange.

On the economic front, trade data showed the U.S. deficitsoaring 12% as the coronavirus epidemic dealt a severe blow toAmerican exporters. Survey data on the services sector from theInstitute for Supply Management showed it crashing torecession levels in April, though the reading of 41.8% was betterthan the consensus forecast.

Rating agency Icra has further cut its projections for India'seconomic growth rate to -16 per cent to -20 per cent in the firstquarter of the current financial year. This would meancontraction of 1-2 per cent for entire FY21.

Fitch Ratings on Tuesday lowered its outlook on Brazil’s creditrating to negative from stable while maintaining its junk statusBB minus sovereign credit rating, the latest indication of thesevere economic and financial damage being wrought on LatinAmerica’s largest economy by the coronavirus pandemic.

Stocks in Asia were mixed on Wednesday, with investorsweighing optimism that more economies are moving towardeasing lockdowns against cautionary comments from FederalReserve officials.

Indian indices witnessed profit booking post 2 pm and endedlower for the second consecutive day on Tuesday. At close, Niftywas down 87.90 points or 0.95% at 9205.60. Financials, Autoand Materials stocks came under selling pressure.

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GLOBAL INDICES

EXCHANGE RATES

Value % Change

USD/INR 75.8 0.20

EURO/USD 1.084 0.04

USD/GBP 1.244 0.04

USD/JPY 106.3 -0.27

COMMODITIES

Value %

Gold ($ / Oz) 1712.6 0.12

Silver ($ / Oz) 15.2 0.75

Crude Oil Futures 24.5 -0.33

Brent Oil ($ / Barrel) 31.0 0.23

BOND YIELD

Value % Chg bps

IND10 Yr Bond Yield 6.07 -1

ADR

Value $ %

Dr Reddys Labs 50.62 -2.11

HDFC Bank 40.76 0.15

ICICI Bank 8.84 -1.34

Tata Motors 5.47 -2.50

Wipro 3.12 -2.80

Vedanta Ltd 4.16 -2.35

INFOSYS 8.91 -0.22

Close Points % Chg

DOW JONES 23883 133.33 0.56

S & P 500 2868 25.70 0.90

NASDAQ 8809 98.41 1.13

FTSE 5849 95.64 1.66

CAC 4483 104.90 2.40

DAX 10729 262.66 2.51

NIKKEI 225 19619 -574.34 -2.84

SHANGHAI COMP. 2852 -8.48 -0.30

HANG SENG 24010 141.34 0.59

BOVESPA 79471 594.56 0.75

Technically, with the Nifty correcting further after the sharpcorrection seen in the previous session, the bears remain incontrol for the near term. Further downsides are likely once theimmediate support of 9191 is broken towards 8909. Anypullback rallies could find resistance at 9396.

Government Hikes Taxes on Petrol and Diesel by Rs 10-13/LitreAdditional excise duty on petrol has been raised by ₹8 andspecial additional excise duty of ₹2 a litre has also been leviedon it to give effect to a ₹10 a litre increase on petrol. In the caseof diesel, additional excise duty has been raised by ₹8 andspecial additional excise duty by ₹5. The changes are effectivefrom Wednesday (6th May 2020).

NIIT Technologies Q4 net profit up 11.4% to Rs 113.6 croreNIIT Technologies reported 11.4 percent rise in consolidated netprofit to Rs 113.6 crore Its consolidated revenue grew 19percent to Rs 1,109.3 crore in the quarter. Results were betterthan street expectations. For FY20, net profit surged 23.2percent to Rs 474 crore, while revenue grew 18.5 percent to Rs4,180.9 crore.

NIIT Tech registered an order intake of USD 180 million, withthree large deals secured. As a result of this continued dealmomentum, the order book executable over the next 12months has also increased to USD 468 million, representing 20%growth yoy.

Digital revenues stood at 38 percent of the total revenues,growing 47 percent year-on-year. Americas, Europe Middle Eastand Africa (EMEA), and Rest of the World (RoW) contributed to48 percent, 37 percent, and 15 percent of the FY20 revenues,respectively.

Board declared final dividend of Rs 11 per share, company hasalready paid Rs 20 per share as interim dividend.

SBI Life Q4 PAT rises 16% yoy to Rs 530 croreSBI Life Insurance Company posted 15.9 percent yoy rise in netprofit at Rs 530.7 crore for the quarter. Net premium income ofthe life insurer increased 4.7 percent YoY to Rs 11,862.9 crore.

For FY20, profit after tax of the company increased 7 percentYoY to Rs 1,420 crore. The solvency ratio stood at 1.95 againstthe regulatory requirement of 1.50.

Value of new business (VNB), used to measure profitability ofthe new business written in a period, increased 17% to Rs 2010crore in FY20 over FY19. VNB margin increased by 100bps to18.7% for FY20 compared with 17.7% for FY19.

Indian Embedded Value (EV) was at Rs 26,290 crore as on 31March 2020 compared to Rs 22,400 crore as on 31 March 2019,registering a yoy growth of 17%.

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Adani Ports Q4 net profit falls 74% to Rs 340.4 croreAdani Ports and Special Economic Zone (APSEZ) reported 74 percent decline in consolidated net profit to Rs 340.2 crorefor the fourth quarter. PAT was impacted by around Rs 1000cr foreign exchange loss.

Its consolidated total income marginally declined to Rs 3,360.2 crore for the fourth quarter as against Rs 3,492.7 crore inthe year-ago period.

The company aims to curtail capex to Rs 2,000 crore for FY21. Company said the focus will be on conserving cash,generating higher free cash flow and increasing the ROCE from the business.

Rallis India Q4 FY20 results highlightsRallis India recorded consolidated revenues of Rs 346cr (+2% yoy) for the quarter. Loss before tax (after exceptionalitems) came in at Rs 3cr and registered PAT of Rs 1cr. Results were slightly below street estimates.

The operations were disrupted at certain manufacturing facilities and depots of the Company, as a result of which goodsworth Rs 16cr could not be dispatched to the domestic market. Further, international shipments were also disrupteddue to absence of transportation facilities in the last week of March 2020 resulting in lower shipment of Rs 53.2cr.

For FY20, the company reported 19% rise in its consolidated net profit at Rs 183.7 crore. The company's total revenuesgrew 13% yoy to Rs 2,286 crore. Board recommended Rs 2.5 per share as final dividend.

Astec Life Q4 FY20 PAT surged to Rs 31.2crAstec Lifesciences Q4 FY20 PAT surged to Rs 31.2cr vs. Rs 12.7cr. Revenues grew 35% yoy to Rs 180.6cr. Strong marginand lower tax expenses led to surge in profitability.

Persistent System Q4FY20 results key takeawayPersistent system Ltd reported 0.8 per cent (YoY) and 4.7 (QoQ) de growth to Rs 83.8cr in consolidated PAT in Q4FY20,impacted by higher employee (including professional cost) and depreciation expenses. Revenue grew by 11.4 per cent(YoY) and 0.4 per cent (QoQ) revenue growth to Rs 926.4cr in Q4FY20. Company closed FY20 very strong, for the firsttime in Persistent’s history crossing the half billion-dollar mark in revenue. Revenue was up by 5.9 per cent (YoY) to Rs3565.8cr and PAT was down by 3.2 per cent (YoY) to Rs 340.3cr in FY20.

The share of revenue from BFSI customers has increased from 27 per cent in Q4FY19 to 31.3 per cent in Q4FY20 and theshare of Top Customer has reduced from 20.2 per cent in Q4FY19 to 19.2 per cent in Q4FY20. Revenue contributionfrom North America was down from 80.9 per cent in Q4FY19 to 80.2 per cent in Q4FY20, revenue from Europe was upfrom 7.9 per cent in Q4FY19 to 8.8 per cent in Q4FY20 and revenue from India was up from 7.7 per cent in Q4FY19 to9.0 per cent in Q4FY20.

An on 31st March 2020, total head count stood at 10632 vs 9962 as on 31st March, 2019. On TTM basis, attrition was at14.3 per cent in Q4FY20.

Wipro signs pact with Maharashtra Government to convert Pune facility to 450-bed COVID-19 hospitalThe company has inked a pact with Maharashtra Government to repurpose one of its campuses in Hinjewadi, Pune, to a450-bed COVID-19 intermediary care hospital in four weeks. The facility will be handed over to the state Government byMay 30, and the facility will be converted back to an IT facility after a year.

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Important Global news/developments to influence markets

UK’s Purchasing Managers' Index (PMI) for the services sector fell to its lowest since the survey started in 1996,dropping to 13.4 in April from 34.5 in March, only a fraction better than an initial flash estimate of 12.3.

UK March construction PMI 39.3 vs 44.0 expected.

UK’s PMI Composite was finalized at 13.8, down from March’s 36.0.

Eurozone, PPI dropped -1.5% mom, -2.8% yoy in March, versus expectation of -1.2% mom, -2.4% yoy.

The March trade balance report showed the US deficit widened from 39.9 billion to 44.4 billion. “Overall imports fell6.2%, while exports saw a record decline of 9.6%, causing the trade gap to widen.

The IHS Markit's Services Purchasing Managers' Index (PMI) for the US slumped to 26.7 in April's final reading from39.8 in March.

US Redbook (YoY) -9.3%, -8.1% previous, (MoM) -12.6% -11.8% previous.

The Institute for Supply Management's non-manufacturing Purchasing Managers' Index fell from a reading of 52.5 forMarch to 41.8 in April (consensus: 37.5%).

The IHS Markit's Services Purchasing Managers' Index (PMI) for the US slumped to 26.7 in April's final reading from39.8 in March.

The April US Non-Manufacturing Purchasing Managers' Index (PMI), also known as the ISM Services PMI. Theheadline Composite Index is at percent 41.8, down 10.7 from 52.5 last month.

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Daily View on Nifty

Nifty Hourly Timeframe (60min) Nifty Daily Timeframe

Technical Observation:Carrying on from the previous session, markets corrected further today, thus negating the breakout seen last Friday. Nifty opened on a positive note, but selling soon resumed and pushed the index lower.

As can be expected from such a day, the market breadth was negative.

Zooming into the daily charts, we observe that the Nifty has moved down further after breaking out of an upward sloping trend line last Friday. It has therefore negated the breakout seen last week. The 50-day SMA continues to act as a resistance at higher levels and Nifty continues to trade below the 13-day SMA, which is a signal for short term weakness. The 14-day RSI too has declined further today, indicating a loss of momentum.

The 60 minute chart of the Nifty continues to give weak signals after showing a double top formation a few sessions back.

With the Nifty in a confirmed short term downtrend, we expect the index to play down towards the next supports of 9141-8946 in the near term. A further correction could take the Nifty towards the next supports of 8909-8821. It is important that these supports hold for the bulls to regain control; else the intermediate downtrend is likely to resume.

Any pullback rallies could find resistances at 9450-9534.

Conclusion:The short term trend has turned down with the Nifty negating the breakout seen last Friday. With weak technical indicators, we expect the Nifty to play down towards the next supports of 9141-8946 in the near term.

It is important that the supports of 8909-8821 hold; else the intermediate downtrend is likely to continue.

Nifty LTP 2-Day View Reversal level 7-Day View Reversal level

9205.6 Downward correction Move above 9890 Bearish Move above 9890

Targets for 2 day: 9141/8946

Targets:8909-8821

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DATA & EVENTS

OPEN TRADING CALLS

NOTE: ALL TRADING RECOMMENDATIONS GIVEN BY TEAM ARE ON REAL TIME BASIS. A TRADING RECOMMENDATIONSHOULD BE CONSIDERED CLOSED OR SQUARED OFF AS AND WHEN A STOPLOSS OR TARGET IS TOUCHED IN INTRADAYTRADING. DO NOT WAIT FOR TARGET ACHIEVED OR STOPLOSS MESSAGE TO CLOSE THE POSITIONS. REFER JAMMOON FORTIMELY ENTRY AND EXIT FROM RECOMMENDATIONS.

No. Reco Date Company Name Reco Cost SL Target

1 5-MAY-20 MARUTI MAY FUT SELL 4847-4920 4950 4600

2 5-MAY-20 ACC MAY FUT BUY 1131-1108 1103 1165

3 5-MAY-20 BANDHAN BANK 260 CALL OPTION BUY 15.75 8.5 30

4 5-MAY-20 LIC HOUSING FINANCE 240 PUT OPTION BUY 18.6 14.6 30

5 5-MAY-20 TATA COFFEE BUY 75-77.10 73.8 85

No. Reco Date Company Name Reco Cost SL Target

1 13-APR-20 GLAXO PHARMA(PARTAILLY BOOKED) BUY 1300-1396 1250 1590/1730

2 28-APR-20 DR LAL PATH LAB BUY 1556-1587 1388 1742/1850

3 29-APR-20 ENDURANCE BUY 645-600 585 710

OPEN TECHNICAL POSITIONAL CALLS

OPEN DERIVATIVE POSITIONAL CALLS

No. Reco Date Company Name Reco Cost SL Target

1 29-APR-20 ULTRATECH MAY FUT BUY 3475-3350 3250 3780

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DATA & EVENTS

QUARTERLY RESULTS ANNOUNCED

COMPANY Q4FY20 YoY (%) QoQ (%) Remarks

Sales (Rs Cr)

NP (Rs Cr)

Sales NP Sales NP

NIIT Tech 1109 114 14 8 6 -8Above

Estimates

Persistent Systems 926 84 11 -1 0.5 -5Below

Estimates

SBI Life Insurance 11863 531 5 16 1 36As Per

Estimates

PL: Profit to Loss, LP: Loss to Profit, LL: Loss to Loss

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