Equity Research Report 18 December 2017 Ways2Capital
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Transcript of Equity Research Report 18 December 2017 Ways2Capital
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 R2 R1 PP S1 S2
10674 10388 10246 10104 9819
WEEKLY R2 R1 PP S1 S2
10949 10459 10215 9968 9478
MONTHLY R2 R1 PP S1 S2
11510 10700 10295 9891 9081
BANK NIFTY
DAILY R2 R1 PP S1 S2
26034 25434 25134 24834 24234
WEEKLY R2 R1 PP S1 S2
26725 25718 25214 24710 23700
MONTHLY R2 R1 PP S1 S2
28595 25958 25575 24568 22555
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
NAME
R3 R2 R1 PP S1 S2 S3
ADANIPORTS EQ 446 422 413 399 389 375 352
AMBUJACEM EQ 287 276 270 265 259 253 242
ASIANPAINT EQ 1205 1163 1142 1121 1100 1080 1038
AUROPHARMA EQ 750 712 690 675 653 638 601
AXISBANK EQ 584 564 557 545 537 525 506
BAJAJ-AUTO EQ 3458 3325 3253 3192 3120 3059 2926
BAJFINANCE EQ 1923 1810 1767 1697 1655 1585 1472
BHARTIARTL EQ 576 549 533 522 506 495 468
BOSCHLTD EQ 21389 20581 20133 19773 19325 18964 18156
BPCL EQ 575 545 535 515 505 485 455
CIPLA EQ 667 627 601 587 561 547 508
COALINDIA EQ 289 278 275 268 264 257 247
DRREDDY EQ 2725 2516 2443 2307 2234 2098 1889
EICHERMOT EQ 31916 30544 30047 29173 28675 27801 26429
GAIL EQ 540 514 500 489 474 463 437
HCLTECH EQ 952 918 905 884 871 849 815
HDFC EQ 1816 1764 1741 1712 1689 1659 1607
HDFCBANK EQ 2009 1933 1902 1857 1826 1781 1705
HEROMOTOC
O
EQ 3752 3618 3558 3484 3424 3350 3216
HINDALCO EQ 262 251 248 240 237 229 219
HINDPETRO EQ 502 468 456 435 422 401 367
HINDUNILVR EQ 1387 1354 1339 1322 1306 1289 1256
IBULHSGFIN EQ 1280 1236 1220 1193 1176 1150 1107
ICICIBANK EQ 330 318 311 305 298 293 281
INDUSINDBK EQ 1798 1733 1704 1668 1638 1603 1537
INFRATEL EQ 411 386 370 362 346 337 313
INFY EQ 1078 1046 1032 1013 1000 981 948
IOC EQ 457 432 422 407 398 382 357
ITC EQ 283 273 269 263 259 253 243
KOTAKBANK EQ 1110 1066 1050 1022 1006 978 934
LT EQ 1309 1256 1231 1203 1178 1150 1098
LUPIN EQ 940 896 878 852 834 808 764
M&M EQ 1650 1553 1518 1455 1420 1358 1260
MARUTI EQ 9525 9334 9242 9144 9052 8954 8764
NTPC EQ 194 186 181 178 173 169 161
ONGC EQ 201 192 188 183 178 173 164
POWERGRID EQ 216 209 204 201 196 193 185
RELIANCE EQ 971 946 933 921 908 896 871
SBIN EQ 336 325 319 314 308 303 292
SUNPHARMA EQ 566 544 531 521 508 499 476
TATAMOTORS EQ 441 424 414 406 397 389 372
TATASTEEL EQ 766 729 713 692 676 655 618
TCS EQ 2866 2724 2634 2583 2492 2441 2299
TECHM EQ 552 527 512 503 487 478 454
ULTRACEMCO EQ 4642 4460 4389 4278 4206 4095 3913
UPL EQ 811 768 743 724 699 681 638
VEDL EQ 332 313 306 293 286 274 254
WIPRO EQ 306 297 293 288 284 279 270
YESBANK EQ 344 328 322 312 306 295 279
ZEEL EQ 606 588 579 571 561 553 535
TOP 15 ACHIEVERS // TOP 15 LOSERS
SR.NO SCRIPT NAME PREV
CLOSE CMP %
CHANGE
1 DR. REDDY LAB 2185.45 2371.50 +8.51
2 MAHI. AND MAHI. 138.15 1483.40 +6.86
3 LUPIN LTD 822.85 860.30 +4.55
4 HIND PETROL 428.45 443.80 3.58
5 ULTRATECH CEM 4165.55 4311.80 3.51
6 HCL TECH 870.45 891.80 2.45
7 WIPRO LTD 282.90 289.70 2.40
8 HDFC 1682.95 1723 2.38
9 VEDANTA 291.20 298 2.34
10 COAL INDIA LTD 264.85 271 2.32
11 INFOSYS 1001.85 1022.90 2.10
12 KOTA MAHI BANK 1009 1030.10 2.09
13 INDIAN OIL CORP 404.85 413.15 2.05
14 ADANI PORTS 393.40 401.35 2.02
15 HDFC BANK 1840.40 1873.45 1.80
SR.NO SCRIPT NAME PREV
CLOSE CMP % CHANGE
1 BHARTI INFRA 373.70 354.50 -5.14
2 CIPLA 603.10 576.45 -4.42
3 ICICI BANK 310.75 303.15 -2.45
4 TATA CONSUL 2601.50 2545.60 -2.15
5 POW GRI CORP 203.10 198.85 -2.09
6 NTPC 180.40 177.45 -1.64
7 ASIAPAINT LTD 1135.50 1118.70 -1.48
8 TATA MOTORS 411.15 405.10 -1.47
9 UPL 728.05 717.80 -1.41
10 L AND T 1220.35 1203.55 -1.38
11 AMBUJA CEM 268.10 264.40 -1.38
12 AUR PHARAMA 672.50 667.60 -0..73
13 SUN PHARAMA 521.85 518.35 -0.67
14 HERO MOT COR 3519.55 3503 -0.47
15 TATA STEEL 697.80 694.70 -0.44
AM
BUJ
A
CEM
ENT
204 232 +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 would
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.
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