Religare Weekly : Equity

Transcription

1 (25th Jan 2018) INDEX RESISTANCE 2 RESISTANCE 1 CMP SUPPORT 1 SUPPORT 2 NIFTY NIFTYBANK NIFTYIT NIFTY OUTLOOK Nifty traded jubilant and made a new milestone above 11,000 in the passing week. Encouraging earnings announcements and supportive local cues helped the index to maintain the momentum. In the coming week, The Union Budget, which is scheduled on Feb 1, will trigger the next directional move. Meanwhile, the ongoing earnings season will keep the participants busy. Technically, Nifty has immediate hurdle at and above which it may incher toward However, profit taking may continue in midcap and small cap space. We advise traders booking partial profit ahead of event and keeping the leveraged position hedged. SECTORS TO WATCH SECTOR ENERGY FMCG PHARMA REALITY OUTLOOK BULLISH BULLISH BULLISH SIDEWAYS TO BEARISH

2 NIFTY ENERGY OUTLOOK Last week, the Nifty Energy index edged higher and gained over 2 percent. Technically, it has been consolidating near its record high for past two months and likely to witness fresh breakout in near future. We advise traders to use this consolidation phase to accumulate quality stocks like GAIL, RELIANCE, ONGC etc. NIFTY FMCG OUTLOOK Nifty FMCG index maintained its positive tone and gained nearly one percent. It has been continuously forming higher highs and higher lows on weekly chart. All indications are in the favor of this bias to extend further. Traders can initiate fresh long positions in stocks like ITC, DABUR and GODREJIND.

3 NIFTY PHARMA OUTLOOK We have witnessed a decent recovery across the board in Nifty Pharma index in the passing week. Technically, it is trading on the verge of breakout from bullish reversal pattern that lasted for more than a year on weekly chart. Further, all other indications are in the favor of strong up move. We suggest traders to use this phase and accumulate sound stocks like CIPLA, GLENMARK, SUNPHARMA, and LUPIN. NIFTY REALITY OUTLOOK Though Nifty Reality managed to ended on a positive note in the last week but its overall trend is still sideways to bearish. Its current chart pattern along with the confirmation indicators are pointing towards further consolidation or profit booking ahead. We advise traders to book profit on rise and wait for dips for fresh buying.

4 DERIVATIVES OUTLOOK Nifty futures volume weighted average price (VWAP) is at and BankNifty futures is at Call writing was seen at Nifty strike and Put writing was seen at Nifty strikes. Maximum positions are at CE and PE. Nifty is expected to be in the range of Technology stocks gained the most during the week and Telecom stocks lost the most during the week. FIIs were net buyer of around Rs 5889 Cr in cash segment whereas DIIs were net seller of around Rs 277 Cr in cash segment during the week (Thursday to-thursday). VIX is likely to hover around 14%-20% range for the next week. Strategy - KAJARIACER added around 9% in open interest as short buildup was seen in it in previous session. Current chart pattern too indicate further decline in its price. We suggest buying KAJARIACER options as per below levels. Strategy - Buy KAJARIACER 700PE between 20-21, SL 12, TGT 36 LONG BUILDUP (Weekly change) SYMBOL PRICE % CHANGE IN PRICE OPEN INTEREST % CHANGE IN OI NIITTECH JUBLFOOD BIOCON SHORT BUILDUP (Weekly change) SYMBOL PRICE % CHANGE IN PRICE OPEN INTEREST % CHANGE IN OI MCDOWELL-N BHARTIARTL HINDPETRO

5 Oct-16 v-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 v-17 Religare Weekly : Equity IIP (%) BSE Sectoral Indices This Week Pre. Week % Change METAL 15, , HC 15, , FMCG 10, , CD 22, , TECK 6, , AUTO 25, , OIL&GAS 16, , PSU 9, , BANKEX 31, , CG 20, , IT 12, , POWER 2, , REALTY 2, , Weekly News Dr Reddy's Laboratories reported a 29% YoY de-growth in its consolidated net profit at Rs 334.4cr due to continued decline in rth America business. Revenue from operations grew by 3% YoY to Rs 3,806cr. EBITDA fell 8.4% YoY to Rs 806cr, while EBITDA margin contracted 300bps YoY to 21%. UPL reported healthy 25.3% YoY growth in consolidated net profit at Rs 579cr for Q3FY18. Revenue from operations grew by 7% YoY to Rs 4,194cr. EBITDA fell 1.4% YoY to Rs 716cr, while EBITDA margin contracted 140bps to 17.1%. VIP Ind s consolidated revenue for the quarter, adjusting for excise grew by 12.1% YoY to Rs 338cr. EBITDA came in at Rs 41cr, up 57.2% YoY, while EBITDA margin expanded by 349bps YoY to 12.2%. Consolidated PAT for the quarter grew by 68.5% YoY to Rs 27cr. InterGlobe Aviation reported 56.4% YoY growth in PAT to Rs 762cr, aided by higher fares, passenger growth and a stronger rupee. Revenue rose 23.9% YoY to Rs 6,178cr. EBITDA increased by 34% to Rs 1,936cr while EBITDA margins expanded by 240bps YoY to 31.3%. Symphony s net revenue increased by 21% YoY to Rs 217.6cr. EBITDA grew by 29.1% YoY to Rs 86.8cr, while EBITDA margin improved by 254bps YoY to 39.9%. Net profit was up 20.7% YoY to Rs 66.3cr. Can Fin Homes reported a 16% YoY increase in Net Interest Income, which stood at Rs 127.9cr. The NIMs for Q3FY18 stood at 3.58%, a decline of 6bps QoQ. Its net profit grew by 34.2% YoY to Rs 80cr. Its Gross NPAs stood at 0.46%, up 4bps QoQ. Axis Bank reported 25.3% YoY growth in net profits at Rs 726.4cr, driven by lower provisions. Net interest income grew by 9.2% YoY to Rs 4,731.5cr. Asset quality improved sequentially with Gross NPAs declining by 62bps to 5.28%.

6 Team Members Hitesh Agrawal Ajay Pasari, CFA Ajit Mishra Manoj M Vayalar hitesh.agrawal@religare.com ajay.pasari@religare.com ajit.mishra@religare.com manoj.vayalar@religare.com Mehernosh Khurshed Panthaki mehernosh.panthaki@religare.com Nirvi Ashar Rohit Khatri Suhanee Shome nirvi.ashar@religare.com rohit.khatri@religare.com suhanee.shome@religare.com

7 Before you use this research report, please ensure to go through the disclosure inter-alia as required under Securities and Exchange Board of India (Research Analysts) Regulations, 2014 and Research Disclaimer at the following link: Disclaimer/Disclaimer_RSL.html Specific analyst(s) specific disclosure(s) inter-alia as required under Securities and Exchange Board of India (Research Analysts) Regulations, 2014 is/are as under: Statements on ownership and material conflicts of interest, compensation Research Analyst (RA) [Please note that only in case of multiple RAs, if in the event answers differ inter-se between the RAs, then RA specific answer with respect to questions under F (a) to F(j) below, are given separately] Nature of Interest ( if answer to F (a) above is Yes : S.. Statement Answer Tick appropriate Yes I/we or any of my/our relative has any financial interest in the subject company? [If answer is yes, nature of Interest is given below this table] I/we or any of my/our relatives, have actual/beneficial ownership of one per cent. or more securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance? I / we or any of my/our relative, has any other material conflict of interest at the time of publication of the research report or at the time of public appearance? I/we have received any compensation from the subject company in the past twelve months? I/we have managed or co-managed public offering of securities for the subject company in the past twelve months? I/we have received any compensation for brokerage services from the subject company in the past twelve months? I/we have received any compensation for products or services other than brokerage services from the subject company in the past twelve months? I/we have received any compensation or other benefits from the subject company or third party in connection with the research report? I/we have served as an officer, director or employee of the subject company? I/we have been engaged in market making activity for the subject company? Name(s) with Signature(s) of RA(s). [Please note that only in case of multiple RAs and if the answers differ inter-se between the RAs, then RA specific answer with respect to questions under F (a) to F(j) above, are given below] SS... Name(s) of RA. Signtures of RA Serial Question of question which the signing RA needs to make a separate declaration / answer Yes. Copyright in this document vests exclusively with RSL. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose, without prior written permission from RSL. We do not guarantee the integrity of any s or attached files and are not responsible for any changes made to them by any other person.