April 22, 2020
Market Updates
Coronavirus clouds Infy's prospects; firm suspends guidance over pressure. Q4
results also indicate the quantum of pain Infosys is witnessing due to the Covid-
19 pandemic.
Share holdings of RIL, GAIL come under pressure amid oil price crash. Though
WTI recovered, investment in alternative fuels like shale has become unviable.
ACC reports drop of nearly 7% in Q1 consolidated net profit at Rs 323 cr. The
company, which follows January-December financial year, had posted a profit of
Rs 346.02 crore in the same quarter a year ago, ACC said in a BSE filing.
IOC, BPCL restart project-work after relaxation of Covid-19 lockdown norms.
IOC said it has resumed work on 64 select projects with a combined allocation
of about Rs 21,375 crore.
Voda Idea pays Rs 1,367 cr to govt towards licence, spectrum charges. Officials
said that the telecom department has received the payment made by Vodafone
Idea, and added that other operators had made their payments earlier.
IOC says working full throttle to meet rising LPG demand in Tamil Nadu. Com-
pany says its 12 bottling plants in the state are running at full capacity without
disruptions, many a times on Sundays and holidays as well.
US FDA clears Aurobindo Pharma Unit IV, reverts classification to VAI. The latest
classification, VAI, suggests that though certain objectionable conditions were
found during the review, they did not warrant any further regulatory action.
Economic News
Transporters demand reduction in fuel prices amid Covid-19 lockdown.
AIMTC said Covid-19 and the lockdown have hit the transport sector adverse-
ly, and exerting acute pressure on the sector.
RBI considers standing deposit facility to manage extra liquidity. No firm deci-
sion has been reached on this, said sources. The SDF, when introduced, will
become the lower bound of the corridor for the liquidity management win-
dow.
UPI transactions drop in March, RTGS shoots up due to lockdown. According
to the data, the volume of UPI transactions in March slipped to 124.68 crore
from 132.57 crore in February.
Farmers can continue to avail special interest rate till May 31, says RBI. This
will be applicable for short-term crop loans of up to Rs 3 lakh per farmer, the
RBI said.
Global News
Oil firms float finished fuel products on Arabian Sea as demand slumps. They're
running out of storage space on land and their refineries are running only at
50% of capacity; US Oil futures touch an unprecedented negative pricing.
China's central bank conducting tests of digital yuan payment in 4 cities. The
DC/EP system remains in a period of research and development, and that the
pilots do not mean the PBOC has officially issued digital yuan.
Coronavirus global update: The worst-hit nations and UNGA vaccine plan. 193
members of the UN General Assembly have adopted by consensus a resolution
that calls for "equitable, efficient and timely" access to any future vaccines de-
veloped to fight Covid-19.
Stocks in News
Fund Flow
Source: BS = Business Standard, ToI: Times of India, MC = Money Control, B = Bloomberg
Asian Markets CloseAbs.
Change
Per.
Change
HANG-SENG (22Apr2020) 23669.19 (124.36) (0.52)
NIKKEI 225 (22Apr2020) 19044.77 (236.01) (1.22)
STRAIT TIMES (22Apr2020) 2519.42 (32.50) (1.27)
Global Bellwethers CloseAbs.
Change
Per.
Change
DOW JONES 30 (21Apr2020) 23018.88 (631.56) (2.67)
NASDAQ (21Apr2020) 8263.23 (297.50) (3.48)
FTSE UK (21Apr2020) 5641.00 (171.80) (2.96)
Indian Benchmarks (21Apr2020) CloseAbs.
Change
Per.
Change
NIFTY 50 8981.45 (280.40) (3.03)
NIFTY 200 4675.35 (137.40) (2.85)
NIFTY 500 7395.85 (218.75) (2.87)
Indian B ro ader M arkets
NIFTY MIDCAP 100 12708.70 (404.95) (3.09)
NIFTY SMLCAP 100 3948.85 (157.00) (3.82)
N SE Secto r indices
NIFTY BANK 19409.35 (1113.30) (5.42)
NIFTY FINANCIAL SERRVICES 9468.80 (461.85) (4.65)
NIFTY IT 12408.85 (438.80) (3.42)
NIFTY ENERGY 12090.55 (311.50) (2.51)
NIFTY FMCG 28480.60 (117.50) (0.41)
NIFTY AUTO 5294.05 (296.95) (5.31)
NIFTY METAL 1666.60 (89.85) (5.12)
NIFTY CONSUMPTION 4346.05 (52.75) (1.20)
NIFTY PHARMA 9381.65 232.45 2.54
NIFTYINFRA 2565.25 (53.30) (2.04)
NIFTY REALTY 185.45 (3.45) (1.83)
NIFTY MEDIA 1079.20 (58.75) (5.16)
NIFTY MNC 11920.90 (197.40) (1.63)
Participant (21Apr2020) LatestMTD
(Calendar)YTD (FY)
Flls (2095.23) (5213.50) (5213.50)
DIIs (68.46) (4542.95) (4542.95)
Apr 22, 2020
Technical Snapshot
NIFTY SPOT: 8981.45 (-3.03%)
DYNAMIC PARAMETER: Nifty formed Island reversal pattern
TRADING ZONE:
Resistance: 9044 (Day High) / 9230 (Gap Resistance)
Support: 8909 (Day Low) / 8821 (5 Day Low)
BROADER MARKET: UNDERPERFORMED,
MIDCAP 12708.70 (-3.09%), SMALLCAP 3948.85 (-3.82%) Advance-Decline: 495/ 1311
VIEW: Bearish below 8821 (5 Day Low)
Key Highlights:
Nifty breaches 9000 mark on closing basis, is this a re-entry of the BEARS ?....
Stocks to Watch: Sector view for the day:
Stock view for the day:
NamePrevious
CloseReversal Support 2 Support 1 Pivot Point Resistance 1 Resistance 2 Trend
NIFTY-NEAR MONTH 8961.05 8909.40 8821.62 8891.33 8979.12 9048.83 9136.62 BULL
BANKNIFTY-NEAR MONTH 19258.45 19166.95 18722.08 18990.27 19435.13 19703.32 20148.18 BULL
NIFTY MIDCAP 100 12708.70 12571.76 12494.97 12601.83 12746.32 12853.18 12997.67 BULL
NIFTY SMLCAP 100 3948.85 3882.14 3860.78 3904.82 3975.88 4019.92 4090.98 BULL
BANKNIFTY SPOT: 19409.35 (-5.42%)
DYNAMIC PARAMETER: Index formed Lower Top Lower Bottom pat-tern
TRADING ZONE:
Resistance: 19891 (Day High) / 20444 (Gap Resistance)
Support: 19117 (20 Day SMA) / 18703 (5 Day Low)
VIEW: Bearish below 18703 (5 Day Low)
BULLISH BEARISH
DRREDDY PEL
AUROPHARMA JUSTDIAL
BHARTIARTL CHOLAFIN
BRITANNIA SRTRANSFIN
CADILAHC PVR
Bullish Sectors Bearish Sectors
PHARMA PVT BANK
AUTO
Stock View Duration CMP Support Resistance
AUROPHARMA BULLISH INTRADAY 644 632 658
CHOLAFIN BEARISH INTRADAY 144 137 149
Apr 22, 2020
Equity Technical Recommendation:
Equity Technical - Product Profile
Product Maximum Open
Recommendations Return Objective Segment Duration
Intraday 5 1% Cash + F&O Intraday
BTST / STBT 2 1-2% F&O 1 Day
5-Day 5 2-4% F&O T + 5
Smart Trader Delivery 10 3-15% Cash Only Week to 3 Months
Rolling Reversal 1 Variable subject to market F&O -
Sr.
No.Date Action Company Product * Reco. Price Target 01 Target 02 Stop Loss Remarks
1 16-Apr-20 BUY L&TFH 5 DAY 61.5 66 72 56 1st Target
2 17-Apr-20 BUY EICHERMOT 5 DAY 14465 15100 15800 13940 Stop Loss
3 17-Apr-20 BUY BIOCON 5 DAY 359 387 415 328 Open
April 22, 2020
Fundamental Recommendation:
Current Calls: Fundamental
Sr.
NoDate Company Product * CMP Reco. Price Target
Return since
InceptionRemarks
1 10-Sep-18 Havells India Ltd IC 503.35 661.00 809.00 -24% Open
2 16-Aug-18 Alembic Pharmaceuticals Ltd. SALES NOTE 617.00 674.00 808.00 -8% Open
3 9-Aug-18 Escorts Ltd SALES NOTE 722.15 873.00 1,012.00 -17% Open
4 2-Aug-18 Goodricke Group Ltd SALES NOTE 140.75 295.80 364.00 -52% Open
5 20-Jul-18 MAHINDRA CIE SALES NOTE 79.00 256.00 306.00 -69% Open
6 11-Jun-18 Wonderla Holidays Ltd. SALES NOTE 129.95 334.00 1,195.00 -61% Open
7 24-Apr-18 Ultamarine and Pigments Ltd SALES NOTE 159.00 365.00 446.00 -56% Open
8 30-Jan-19 CCL Products (India) Ltd. SALES NOTE 186.00 270.00 342.00 -31% Open
Average Returns as on21-Apr-
2020-41%
Sr.
NoDate Company Product * CMP Reco. Price Target
Return since
InceptionRemarks
1 12-Dec-19 State Bank of India New Year Pick 184.90 321.00 382.00 -42% Open
2 12-Dec-19 Godrej Consumer Products New Year Pick 529.35 660.00 765.00 -20% Open
Average Returns as on21-Apr-
2020-31%
April 22, 2020
Fundamental Recommendation:
Current Calls: Value Picks
Our recommendation of Diwali Picks 2018
*Product profile
Value Picks : Multi-bagger stocks with more than 2 years horizon.
Initiating coverage(IC) : Average returns of 20-30% with a 12-24 months horizon.
Sales Note : Average returns of 15-20% with a 10-15 months horizon.
Diwali Picks : Average returns of 15-20% with a 10-15 months horizon.
Sr.
NoDate Company Product * CMP Reco. Price Target
Return since
InceptionRemarks
1 17-Jun-15 BASF INDIA VALUE PICK 1,058.00 1091 2079 -3% Open
2 17-Jun-15 EICHER MOTORS VALUE PICK 13,501.55 19297 36957 -30% Open
3 17-Jun-15 GULF OIL LUBRIC VALUE PICK 575.15 442 802 30% Open
4 17-Jun-15 KAJARIA CERA VALUE PICK 368.05 380 665 -3% Open
5 17-Jun-15 KOVAI MEDICAL VALUE PICK 637.90 560 1118 14% Open
6 17-Jun-15 REPRO INDIA VALUE PICK 411.35 452 926 -9% Open
7 17-Jun-15 TATA ELXSI VALUE PICK 724.75 559 1084 30% Open
8 17-Jun-15 UNITED SPIRITS VALUE PICK 522.15 693 1371 -25% Open
9 17-Jun-15 WABCO INDIA VALUE PICK 6,289.70 5406 10474 16% Open
10 17-Feb-16 MINDA IND VALUE PICK 262.45 151 295 74% Open
Average Returns as on21-
Apr-20202%
Sr.
NoDate Company Product * CMP Reco. Price Target
Return since
InceptionRemarks
1 12-Oct-19 Kotak Mahindra Bank Ltd. Diwali Pick 1,130.45 1,588.00 1,870.00 -29% Open
2 12-Oct-19 Reliance Industries Ltd. Diwali Pick 1,236.05 1,353.00 1,620.00 -9% Open
3 12-Oct-19ICICI Lombard General Ins Co.
Ltd.Diwali Pick 1,150.00 1,207.00 1,425.00 -5% Open
4 12-Oct-19 Bajaj Finance Ltd. Diwali Pick 2,098.70 3,973.00 4,720.00 -47% Open
5 12-Oct-19 Hindustan Unilever Ltd. Diwali Pick 2,316.35 2,005.00 2,400.00 16% Open
Average Returns as on21-
Apr-2020-15%
Our recommendation of Diwali Picks 2019
Sr.
NoDate Company Product * CMP Reco. Price Target
Return since
InceptionRemarks
1 31-Oct-18 Exide Industries Ltd. Diwali Pick 141.30 255.50 305.00 -45% Open
2 31-Oct-18 Tata Elxsi Ltd. Diwali Pick 724.75 955.30 1,144.00 -24% Open
Average Returns as on21-
Apr-2020-34%
22, April 2020
Debt Market Snapshot
The Inter-bank call money rate traded in the range of 2.30% - 5.00% on
Tuesday ended at 4.45%.
The benchmark 6.45% GOI 2029 closed at 6.2116% on Tuesday Vs. 6.2092%
on Monday.
Global Debt Market:
U.S. government debt prices were higher Tuesday morning, after a historic oil
price plunge stunned market participants in the previous session. It comes after
U.S. oil prices tumbled below zero for the first time on record, with crude stor-
age facilities filling rapidly and as the coronavirus crisis ravages demand.
10 year Benchmark yield likely to move in the range of 6.18 to 6.22% level
on Wednesday.
Government Security Market:
Highly Traded Govt. Bonds (Top 5) Tax free Bonds in Secondary Market:
Forex Rates Prev. Close
Abs. Change
Change (%)
USD/INR 76.57 0.39 0.51
EUR/INR 83.17 0.22 0.27
GBP/INR 95.215 (0.54) (0.57)
JPY/INR 71.15 0.49 0.69
Particulars Latest Previous Chg (bps)
5 Year GOI Bond 5.21 5.20 0.01
10 Year GOI Bond 6.21 6.21 -
15 Year GOI Bond 6.58 6.61 (0.04)
Call Money (WAR) 4.10 4.16 (0.06)
CBLO (WAR) 3.28 2.97 0.31
US 10 Year 0.63 0.66 (0.03)
Crude Oil (in $/bl) 20.43 25.03 (4.60)
Inflation (Monthly CPI) 5.91 6.58 0.67
Issuer Coupon Yield LTP Vol-ume
Maturity Date
RECLTD 8.12 5.415 1,218.52 7,930 27-Mar-27
NABARD 7.64 (7.35) 5.305 1,172.00 4,876 23-Mar-31
NHAI 7.6 (7.35) 5.2079 1,176.50 3,245 11-Jan-31
HUDCO 8.1 4.7037 1,070.00 3,048 5-Mar-22
IRFC 8 5.0581 1,092.00 2,740 23-Feb-22
Security Volume High Low LTP
6.45% GS 2029 14360 101.9375 101.51 101.6825
7.27% GS 2026 3825 106.87 106.5225 106.73
7.57% GS 2033 3800 108.82 108.20 108.5675
7.32% GS 2024 2270 107.1750 107.04 107.12
6.79% GS 2027 1750 103.40 103.25 103.2725
Issuer Coupon Yield LTP Volume Maturity
Date
NTPC 8.49 6.6442 13.38 7,587 25-Mar-25
TCFSL 8.8 8.7374 1,049.81 2,246 27-Sep-21
EHFLNCD 10 19.4031 750 1,764 19-Jul-26
TCFSL 8.9 8.61 1,058.00 1,392 27-Sep-23
EHFLNCD 9.57 14.41 831 951 19-Jul-26
Taxable Bonds in Secondary Market:
Research Team:
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