Shield Research

Weekly Report 24th June to 28th June 2019.

Upcoming Week Nifty Movement:

The Nifty 50 started off selling at the word go and fell further in the latter part on June 21 after escalating tensions between US-Iran and RBI Government comments.

The index closed way below 11,800 levels and formed Bearish Belt Hold pattern on the daily charts and bearish candle on the weekly scale. For the week, the index lost 0.8 percent, continuing downtrend for the third consecutive week.

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Shield ResearchThe index has recently taken multiple support near 50 DEMA at 11,650 zone but the absence of buying interest is also visible at 11,850 zone, adding that bearish candle on daily, as well as weekly, scale indicates that bears are restricting its upside momentum.

The Nifty 50 opened lower at 11,827.60, which was also an intraday high, and extended selling pressure in the second half to hit a day's low of 11,705.10. The index closed lower by 107.70 points at 11,724.10.

Domestic markets ended the week on weak note with Nifty finished below 11,750 levels amid uncertainty around the US-China trade negotiations and rising oil prices.

The share price of software firm Hexaware Tech gained over 20 percent for the week. Japanese brokerage Nomura upgraded to the company to “neutral” from “reduce” after the acquisition of Mobiquity. On June 14, Hexaware acquired US firm Mobiquity Inc for around USD 182 million to directly compete with large digital agencies and consulting firms.

We acquired Mobiquity Inc for a total consideration of around $182 million to directly compete with large digital agencies and consulting firms," the Indian IT firm said in its BSE filing.

Suzlon Energy added over 10 percent for the week. The stock jumped the most in five months on June 20. Lenders are likely to consider the beleaguered wind-turbine maker's plan to sell its operations and maintenance business to pare debt.

The firm plans to offer a so-called one time settlement to the lenders led by SBI using the proceeds of the sale, sources said.

The share price of Jain Irrigation Systems plunged as much as 32 percent for the week after India Ratings cut its long-term issuer rating. India Ratings and Research said it has downgraded Jain Irrigation Systems' Long-Term Issuer Rating to BBB from A- while placing it on Rating Watch Negative (RWN).

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Shield ResearchThe downgrade reflects deterioration in the liquidity profile of Jain Irrigation on account of a delay in the realization of its receivables from its micro-irrigation systems (MIS) segment, the rating agency said.

IRB Infra ended the week with loses of over 12 percent. During the week, the share price fell 14 percent on June 19 to hit more than the five-year low after a media report indicated that there could be a new operator for Mumbai-Pune Expressway.

NIFTY WEEKLY INDEX LEVELS:Nifty CMP Pivot

PointSupport1 Support2 Support3 Resistance

1Resistance2 Resistance3

11724.10 11731.10 11618.10 11512.10 11293.20 11837.10 11950.00 12169.00

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Upcoming Week Bank Nifty Movement:

Bank Nifty formed a Doji candle with long lower shadow on the weekly scale while a bearish candle on the daily scale which indicates that declines are being bought but the absence of follow up buying interest is missing at higher zones. The index closed 152.75 points lower at 30,628.35. Now it has to continue to hold above 30,600 zones to extend its move towards 31,000 while on the downside multiple supports are seen at 30,250 zones.

Reserve Bank of India Governor Shaktikanta Das has received support from Bank of America Merrill Lynch (BofAML) on his view that fiscal risks from raising extra-budgetary resources is mostly overdone and that the borrowings of state-run enterprises should not be included into that of the sovereign.

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Shield ResearchThe six-member Monetary Policy Committee was divided in its view of fiscal slippage and its impact on inflation trajectory. While the inflation trajectory has been within the central bank's comfort level prompting every MPC member vote unanimously for 25 basis points policy rate cut in June, any disruption on prices may change the way MPC members see possibility of further rate reductions.

Minute of the June MPC meeting showed that two members including deputy governor Viral Acharya flagged off concerns over upside risk which was downplayed by the Governor.

Reliance Capital Friday said it has reduced outstanding commercial papers (CPs) to Rs 75 crore from Rs 950 crore earlier. ICRA had revised the ratings on our short-term debt programmed (CPs) of Rs 950 crore to A4 on April 26, 2019.

The company has redeemed CPs of Rs 875 crore on the respective due dates in the past 2 months, and the outstanding CP is now Rs 75 crore, which will also duly be redeemed on its maturity date i.e. July 24, 2019," it said in a regulatory filing. Stocks of Reliance Capital Friday closed 0.72 per cent lower at Rs 68.55 on the BSE.

The Monetary Policy Committee meeting minutes reveal that the change in RBI's policy stance will deliver more rate cuts in the future, a report said Friday.

Governor Shaktikanta Das had limited himself to say that the shift in stance of the policy to "accommodative" must be seen as there being no rate hikes in future, speaking after the policy review on June 6.

Most sugar stocks were trading with gains in Friday's afternoon session. Shares of Dharani Sugars & Chemicals (up 16.02 per cent), Avadh Sugar (up 7.15 per cent), Magadh Sugar (up 4.99 per cent), Bannari Amman Sugars (up 4.58 per cent), Rajshree Sugars & Chemicals (up 3.40 per cent) and KCP Sugar & Industries (up 3.38 per cent) jumped up to 16 per cent.

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Shield ResearchGayatri Sugars (up 2.93 per cent), Shree Renuka Sugars (up 2.86%), Mawana Sugars (up 2.85 per cent), Uttam Sugar Mills (up 2.65 per cent), Triveni Engineering & Industries (up 2.25 per cent), Ugar Sugar Works (up 1.85 per cent), Piccadily Sugar & Allied Inds (up 1.37 per cent), Dwarikesh Sugar Industries (up 1.19 per cent), Dhampur Sugar Mills (up 0.70 per cent), Dalmia Bharat Sugar & Industries (up 0.66 per cent), EID Parry (up 0.66 per cent) and Sir Shadi Lal Enterprises (up 0.15 per cent) too were trading with gains.

BANK NIFTY WEEKLY INDEX LEVELS:Bank Nifty CMP Pivot

PointSupport1 Support2 Support3 Resistance

1Resistance2 Resistance3

30628.35 30557.90 30291.20 29954.00 29350.20 30895.00 31161.70 31765.60

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Shield ResearchMeanwhile, Piccadily Agro Industries (down 5.10 per cent), Thiru Arooran Sugars (down 4.97 per cent), Dhampure Specialty Sugars (down 4.96 per cent), Kesar Enterprise (down 4.94 per cent), Parvati Sweetners (down 4.86 per cent), Sakthi Sugars (down 3.72 per cent), Simbhaoli Sugars (down 2.55 per cent), Balrampur Chini Mills (down 2.16 per cent) and K.M.Sugar Mills (down 1.52 per cent) were trading lower.

On the other hand, YES Bank (down 3.58 per cent), Maruti Suzuki India (down 3.48 per cent), Housing Development Finance Corporation (down 2.70 per cent), Bharti Infratel (down 2.31 per cent) and Hero Moto Corp (down 2.13 per cent) were trading in the red.

For the first time in 15 years, shareholders of Yes Bank saw the chief executive officer’s chair being occupied by someone other than Rana Kapoor at the annual meeting. At the same time, a member from the family that was fighting Kapoor for a seat at the high table for about a decade, Shagun Gogia, at last had her dream fulfilled.

Equity investors, among the biggest gainers from the lender since it floated on stock exchanges in June 2005, are probably the worst placed among the investors of all private sector banks this year with the share turning volatile and losing 60% in value. With yields soaring high, bond holders are a worried lot. Life has changed for all stakeholders at Yes Bank.

From a time when everyone from Rabo Bank to Goldman Sachs lined up seeking a pie of the Yes Bank share, the management is chasing investors to convey to the world that it is worthwhile investing in it and they could ride the Indian growth wave.

Ravneet Gill, a former chief executive at Deutsche Bank, India, has been brought to put the house in order.

The smooth talking wild life enthusiast, who used to land in a game reserve at every long weekend, has been busy meeting investors across the globe non-stop since March to raise funds for the bank. He has a task, a rather Herculean one.

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Shield ResearchTechnical Movement:

Container Corporation of India Limited: -

Container Corporation of India Limited: - Trend of the stock is bullish, also gave its pattern breakout, it took support its previous breakout & gave strong closing above it. Next week if it sustains above 540 one can go for buying with stop loss at 510 for the targets of 565-580 Trend of the stock is up in weekly chart and strategy advised is buy on dips.

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Shield ResearchTechnical Movement:

 Godrej Properties Limited:-

Godrej Properties Limited: - Trend of the stock is highly bullish, also gave its pattern breakout and gave strong closing above its pattern breakout. Next week if it sustains above 935 one can go for buying with stop loss at 870 for the targets of 985-1060 Trend of the stock is up in weekly chart and strategy advised is buy on dips.

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Previous ArchivesLAST WEEK RECO

STOCKSRECO PRICE TGT FOLLOW UP REMARK

Adani Gas Limited. 163 174-190, SL 149 Done First Target Made High 174.80, Closed at 159.45

Bata India Limited. 1390 1475-1550, SL 1280 High 1442, Low 1376.15

Made High 1442, Closed at 1404.60

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