SEPTEMBER 10, 2018

ANALYSIS OF STOCKS
ASSIGNMENT: FINANCIAL MARKETS

GROUP 2:
ADITYA GOEL
SUBMITTED TO:
ESHA RAZDAN
MS. SAKSHI SHARMA
KESHAV BHATIA
MANASA NARAYAN
 STOCK ANALYSIS
5 stocks from a variety of industries including automobile, financial services and banking,
steel, namely, Maruti Suzuki, Aditya Birla Capital, HDFC Bank, ICICI Prudential Life Insurance,
and JSW Steel, were chosen, for the analysis.

Their closing prices over 38 days, from 1st of August to 7th of September 2018, were monitored
and tabulated, as can be seen in the Daily Closing Price Table. The table gives the daily closing
price with price percentage change and possible reason(s) for the change (greater than 1%).

A research of the various possible factors affecting the stock prices over this time period, was
undertaken through an analysis of available internal and external news regarding each of the
selected companies, attempting to establish a connection between the news in the media,
and the stock prices.

A technical and fundamental analysis of each of the 5 stocks was also undertaken, through
calculating the MCAD (Moving Average Convergence/Divergence) of each of the stocks, and
relevant recommendations provided.

The stock-wise analysis of each of these stocks follows, in the sequence:

 Stock 1: Maruti Suzuki
 Stock 2: Aditya Birla Capital
 Stock 3: HDFC Bank
 Stock 4: ICICI Pru Life Insurance
 Stock 5: JSW Steel

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 STOCK 1: MARUTI SUZUKI

Fig 1: Maruti Suzuki - Stock closing price from 1.08.2018 to 7.09.2018

EXTERNAL NEWS DROP

1st August 2018 - Maruti Suzuki to increase prices across various models in August: Country's
largest car manufacturer Maruti Suzuki India has decided to increase prices across various
models in August, citing rising commodity costs.

21st August 2018 - Maruti Suzuki, employees pledge Rs 3.5 crore for Kerala flood relief

23rd August 2018 - Kerala floods: Car inventory worth Rs 1,000 crore sinks across
dealerships: Torrential rains in Kerala may have possibly wiped out car inventory worth Rs
1000 crore stocked with dealers as most showrooms remained marooned for more than a
week. Around 17,500 cars across the state are estimated to have suffered the impact spread
over 350 dealerships. “The average ticket price per car sold in Kerala is around Rs 6 lakh,” said
a senior executive from the Federation of Automobile Dealer Association.

6th September 2018 - Car makers cheer as govt plans hike in CNG footprint: Oil Minister
Dharmendra Pradhan said that come 2030 at least 10,000 CNG filling stations will be
operational throughout the country. Maruti Suzuki, Hyundai and other car makers have
welcomed the government’s plans to increase the number of CNG stations.

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INTERNAL NEWS DROP
7th September 2018 -Maruti Suzuki To Start Testing 50 Electric Cars in India Soon: Electric
cars are the inevitable future of mobility across the world and in India. Maruti Suzuki, India's
largest automaker has already announced plans for a battery plant in India that will start
making Lithium Ion batteries from 2020 and now, Osamu Suzuki, Chairman, Suzuki Motor
corporation has announced more detailed plans for EVs too. Maruti Suzuki will start testing
50 electric vehicles in India from next month onwards and will launch its first EV in India in
2020. The electric vehicle program for India will be run alongside and with help from Toyota
Motor Corporation with which Maruti Suzuki has a vehicle sharing joint venture.

6th September 2018 - Maruti Suzuki announces discounts up to Rs 70,000 on Swift, Ertiga
and other models: Country's leading car manufacturer Maruti Suzuki has announced
discounts up to Rs 70,000 on some of its models for the month of September. The models
with discounts include variants of Swift, Ertiga and Dzire among others. The offers include
cash discounts as well as exchange discounts. On exchanging a car less than seven years old,
buyers can avail an exchange discount up to Rs 35,000 from Maruti Suzuki True Value, the
used-car retail arm of the company. Cars that have run for seven years or more will fetch less
exchange discounts.

4th September 2018 - New Maruti Suzuki Ertiga Launch In Late October:The Maruti Suzuki
Ertiga is the most popular MPV in India with over 4,500 units sold every month on average.
Almost 6 years old though, even though sales figures are still up there, the Ertiga desperately
needs an update in India in order to take on the likes of newer MPVs like the recently launched
Mahindra Marazzo. The second generation Ertiga MPV has already been unveiled
internationally and now we have more news about its India launch. According to our sources,
the new-gen Maruti Suzuki Ertiga launch in India is scheduled fro the last week of October -
sometime between Dussehra and Diwali to make the most of the festive season. NDTV
Carandbike has reached out to Maruti Suzuki for an official statement on the launch of the
new Ertiga and if yet to hear back on the same.

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Table 1: PRICE CHANGE TABLE - MARUTI SUZUKI

Closing
Day (Date) % Change
Price
01-08-2018 9341.6
02-08-2018 9142.4 -2.13239702
03-08-2018 9187 0.487836892
04-08-2018 Holiday
05-08-2018 Holiday
06-08-2018 9286.4 1.081963644
07-08-2018 9411.5 1.347131289
08-08-2018 9207.4 -2.16862349
09-08-2018 9146.05 -0.66631188
10-08-2018 9148.25 0.0240541
11-08-2018 Holiday
12-08-2018 Holiday
13-08-2018 9080.82 -0.73708086
14-08-2018 9132.6 0.570212822
15-08-2018 Holiday
16-08-2018 9200.55 0.744037842
17-08-2018 9152.1 -0.52659895
18-08-2018 Holiday
19-08-2018 Holiday
20-08-2018 9074.35 -0.8495318
21-08-2018 9113.3 0.429231846
22-08-2018 Holiday
23-08-2018 9223.3 1.207027092
24-08-2018 9163.8 -0.64510533
25-08-2018 Holiday
26-08-2018 Holiday
27-08-2018 9245.25 0.888823414
28-08-2018 9427.97 1.976366242
29-08-2018 9368.1 -0.63502536
30-08-2018 9205.8 -1.7324751
31-08-2018 9096.4 -1.18838124
01-09-2018 Holiday
02-09-2018 Holiday
03-09-2018 8902.15 -2.13546018
04-09-2018 8868.5 -0.37799857
05-09-2018 8896.1 0.311213847
06-09-2018 8759.85 -1.53157001
07-09-2018 8719.2 -0.46404904

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ANALYSIS OF STOCK
Note: We have applied MACD (Moving Average Convergence Divergence) approach to
calculate the technical of the stock. Along with this momentum graphs were used to
calculate and find possible future positions for these stocks. On the basis of the MACD and
Momentum, Technical analysis was done of each stock. Also, a fundamental analysis on the
basis of PE ratios, news, market and global sentiments of stocks has been done. Thus both
positons have been calculated accordingly.

Fig 2: MACD - MARUTI SUZUKI

The MACD curve shows that the stock is converging and diverging too often in the short
term. Thus the momentum general towards the stock remains constant as the curve may be
affected due to market sentiment as well.

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FUNDAMENTAL ANALYSIS
It is one of the best performing shares in the market. With its constant valuation, this stock
of one of the safest bets in the INDIAN MARKET. For a fundamental pick, we recommend
buying Maruti, at 8700 (CMP) for a target of 11000 in next 2 years. With their successful
testing of Electric Vehicles and GST benefits, operative cost will be low and this eventual
profits.

BUY MARUTI FOR TARGET OF 11000 in next 2 years.

TECHNICAL ANALYSIS
The short term cue for MARUTI seems negative, with Automobile sector testing due to
falling rupee. The stock has returned to its usual value of 8700 after testing 9600 in August.
We observe the stock will fall further to 8500 and may test 8400 in next 1 month. After that
it will start increasing.

Our pick is to HOLD THE STOCK FOR NEXT 2 MONTHS and observe, since it’s a very stable
stock investors don’t need to worry.

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 STOCK 2: ADITYA BIRLA CAPITAL

Fig 3: Aditya Birla Capital - Stock closing price from 1.08.2018 to 7.09.2018

EXTERNAL NEWS DROP

10th August 2018 - Aditya Birla Capital net up 31% at Rs 227 crore: The company's assets
under management rose to Rs 3,05,684 crore from Rs 2,62,113 crore, and overall lending
book rose to Rs 53,584 crore from Rs 41,066 crore. Disciplined execution, accelerating growth
and strong leadership helped increase this margin. In addition to strategic investment to
leverage the opportunities in the sector, their focus on operational efficiencies of newly
acquired business of MT Educare will continue," the company said in a statement.
30th August 2018 - Aditya Birla Capital jumps 4% as Co ties up with Varde Partners: Aditya
Birla Capital and Aditya Birla ARC have executed agreements to enter into a strategic joint
venture with Varde Partners and create a joint platform to pursue investments in stressed
and distressed assets in India. Aditya Birla ARC received license from the RBI to commence
business as an asset reconstruction company in March 2018. The Varde Partners organization
is a global investment adviser focused on credit and value investing strategies. consequently
the share price of Aditya Birla Capital rose 4.7 intraday Thursday as company formed joint
venture with Varde Partners.

31st August 2018 - Varde, Aditya Birla Capital are said to create $1bn Joint Venture:
Vde Partners Inc. and Aditya Birla Capital Ltd. are creating a joint venture to invest as much
as $1bn in distressed assets in India, according to people familiar with the transaction, who
asked not to be identified because the information is private

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INTERNAL NEWS DROP
21st August 2018 - Amazon in talks with Aditya Birla group to acquire More supermarkets
This is Amazon’s bid to take on Walmart: This is Amazon’s bid to take on Walmart and
Reliance, which are both betting big on the food and grocery space. The Indian online to
offline business strategy is set to gain further traction as Amazon partners with Goldman
Sachs and Samara Capital to acquire More supermarket chain run by Aditya Birla Group. The
value of the deal could reportedly be in the region of Rs 4,500 to 5,000 crore.

18th August 2018 - Aditya Birla to unveil linen-based fabric brand: Aditya Birla (AB) Group
entity Jaya Shree Textiles is planning to unveil a range of linen-blended fabrics under a new
brand name, Mazury, complementing its offering of linen-blended apparels under the Cavallo
brand, a top official said. Initially, both the brands, in the value-for-money range, would be
available only online, Satyaki Ghosh CEO, domestic textile and Thai Acrylic Fibre of the AB
Group told The Hindu, adding that the fabrics and apparels would be manufactured at its six
decade-old Rishra unit in West Bengal.

Table 2: PRICE CHANGE TABLE - ADITYA BIRLA CAPITAL

Date Price Change %

Aug 01, 2018 147.2 0.48%
Aug 02, 2018 145.5 -1.15%
Aug 03, 2018 146.9 0.96%
Aug 06, 2018 146.4 -0.34%
Aug 07, 2018 148.9 1.71%
Aug 08, 2018 149.3 0.27%
Aug 09, 2018 150.1 0.54%
Aug 10, 2018 146.25 -2.56%
Aug 13, 2018 141.4 -3.32%
Aug 14, 2018 141.65 0.18%
Aug 16, 2018 141.4 -0.18%
Aug 17, 2018 143.05 1.17%
Aug 20, 2018 143.85 0.56%
Aug 21, 2018 142.2 -1.15%
Aug 23, 2018 140.55 -1.16%
Aug 24, 2018 140.3 -0.18%
Aug 27, 2018 139.3 -0.71%
Aug 28, 2018 138.2 -0.79%
Aug 29, 2018 137.3 -0.65%
Aug 30, 2018 143.35 4.41%
Aug 31, 2018 141.25 -1.46%

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 Sep 03, 2018 141.05 -0.14%
Sep 04, 2018 137.1 -2.80%
Sep 05, 2018 135.9 -0.88%
Sep 06, 2018 137.35 1.07%
Sep 07, 2018 137.35 0.00%

ANALYSIS OF STOCK

Fig 4: MACD - ADITYA BIRLA CAPITAL

Momentum for the stock shows strong bulls with a positive MACD in short term. This
reflects a positive growth for the stock and the signal reflects that the technical is real
strong on this stock. With divergence and convergence going hand in hand, it’s a stable
growth stock.

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FUNDAMENTAL ANALYSIS
ABC has been performing really well in its investment business and with the latest news of
Mutual Fund Investments crossing 25 lac crore, investor sentiment is to be further boosted.
Thus, we maintain a buy call on ABC with a target of 218 in next year. ABC is bolstered by
strong administration, well picked out stocks and improving base cash ratio.

BUY ADITYA BIRLA CAPTIAL AT CMP, with a target of 218.

TECHNICAL ANALYSIS
The investment market in India is highly over-valued. ABC hasn’t showed much deviation to
global cues, but rising dollar may affect it. The cycle of ABC is returning and we recommend
to HOLD ABC, as it will test 130 in next 2 months with an increase after that.

HOLD ADITYA BIRLA CAP for next 2 months, STOP LOSS at 120.

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 STOCK 3: HDFC BANK

Fig 5: HDFC Bank - Stock closing price from 1.08.2018 to 7.09.2018

EXTERNAL NEWS DROP

2nd August 2018 - HDFC Bank raises Rs 2,775 cr via QIP: In a regulatory filing, the bank said:
"the committee has approved the issue and allotment of 5,25,00,000 equity shares underlying
the 1,75,00,000 ADRs to JP Morgan Chase Bank NA as depository pursuant to the ADR
offering”

3rd August 2018 - HDFC Bank raises Rs 15,151 crore from domestic, overseas market: The
money has been raised through a mix of qualified institutions placement (QIP) in the domestic
market and American Depository Receipts (ADRs) in the US market. Pursuant to the QIP and
the ADR offering the paid-up equity share capital of the bank stands increased to Rs 5,41.72
crore consisting of 2,70,86,01,906 equity shares

6th August 2018 - HDFC Bank raises fixed deposit rates by up to 0.6%: The deposit of maturity
6-9 months would earn 6.75 percent, 40 basis points higher than previous rate. Days after
Reserve Bank of India hiked the benchmark, repo rate, HDFC Bank today increased fixed
deposit rates on various maturities by up to 0.6 per cent

7th September 2018 - HDFC Bank is India's most valued brand for 5th year in a row: HDFC
Bank retained its top spot in the BrandZ India Top 50 for the fifth year in a row, growing its
brand value by 21 percent to $21.7 billion in 2018. The lender earned top spot, having built a
reputation for its sustainable livelihood initiative by introducing smaller loans worth as little
as $175 that can be accessed through its bank branches, WPP and Kantar Millward Brown's
BrandZ Most Valuable Indian Brands report said.

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INTERNAL NEWS DROP
9th September 2018 - Missing HDFC Bank vice-president murdered over personal enmity:
Mumbai Police: A vice-president of HDFC bank, who had gone missing on Wednesday under
mysterious circumstances from Mumbai, was murdered, the police said on Sunday citing
personal enmity as a motive behind his killing.

8th September 2018: HDFC Bank hikes MCLRs by 20 bps across tenures, one-year rate now
stands at 8.6%: HDFC Bank, the country’s largest private-sector lender by assets, raised its
marginal cost of funds-based lending rates (MCLRs) by 20 basis points (bps) across tenures.
Its one-year MCLR now stands at 8.6%. MCLRs for other tenures range between 8.25% and
8.9%. The revised rates came into effect on Friday.

Table 3: PRICE CHANGE TABLE - HDFC BANK

Date Price Change %
Aug 01, 2018 2,158.70 -0.95%
Aug 02, 2018 2,130.20 -1.32%
Aug 03, 2018 2,121.65 -0.40%
Aug 06, 2018 2,114.30 -0.35%
Aug 07, 2018 2,130.90 0.79%
Aug 08, 2018 2,136.35 0.26%
Aug 09, 2018 2,118.50 -0.84%
Aug 10, 2018 2,114.45 -0.19%
Aug 13, 2018 2,091.65 -1.08%
Aug 14, 2018 2,089.10 -0.12%
Aug 16, 2018 2,075.70 -0.64%
Aug 17, 2018 2,077.35 0.08%
Aug 20, 2018 2,096.20 0.91%
Aug 21, 2018 2,096.05 -0.01%
Aug 23, 2018 2,079.90 -0.77%
Aug 24, 2018 2,069.85 -0.48%
Aug 27, 2018 2,080.45 0.51%
Aug 28, 2018 2,094.85 0.69%
Aug 29, 2018 2,078.50 -0.78%
Aug 30, 2018 2,066.10 -0.60%
Aug 31, 2018 2,061.20 -0.24%
Sep 03, 2018 2,075.05 0.67%
Sep 04, 2018 2,051.80 -1.12%
Sep 05, 2018 2,045.85 -0.29%
Sep 06, 2018 2,052.20 0.31%
Sep 07, 2018 2,056.95 0.23%

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ANALYSIS OF STOCK

Fig 6: MACD - HDFC BANK

The MACD shows that the last 26-day period for the stock is falling momentum but with
MACD and divergence closing in the stock may return to its bullish return

FUNDAMENTAL ANALYSIS
Fundamentally, there will be no impact, but management changes are important things to
watch in the banking industry in the future, with the changes in Amitabh Chaudhary leaving
HDFC for AXIS BANK CEO position and RANA KAPOOR of Yes Bank’s position in doubt.
Therefore, HDFC BANK might test the levels of 2050 in the forthcoming months.
Fundamentally HDFC BANK stock has been a favorite of investors due to it being stable. The
market sentiment towards HDFC still remains at buy with target of 2300 in FY19-20. This is
because of increase market cap, other banks still testing new waters and increasing income
in HDFC BANK.

Thus, our recommendation is to BUY HDFC BANK for a target of 2300 in next 1-2 years.

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TECHNICAL ANALYSIS
The current NIFTY BANK is highly over-valued. In the short term, next 1-2 months we could
further see BANK NIFTY falling, with HDFC BANK testing 2000. But, we recommend a buy
rating on HDFC BANK, target 2 months with 2100, as it will bounce back and lead the bulls in
BANK NIFTY.

Our recommendation is to buy HDFC BANK, technical pick with a target of 2100 in next 2,3
months, STOP LOSS at 2010.

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 STOCK 4: ICICI PRU LIFE INSURANCE

Fig 7: ICICI Pru Life Insurance - Stock closing price from 1.08.2018 to 7.09.2018

External News Drop

11th August 2018 - Facing immense capital demand, insurance companies are taking the
listing route: The rise in demand for capital within the insurance industry, especially life
insurance, has led to a flurry of initial public offerings (IPOs) in the Indian market.
Expectation: that the passage of the Insurance Laws (Amendment) Act in 2015 would lead to
an inflow of Rs 35,000 crore into the industry once foreign direct investment (FDI) in the
sector would be increased to 49 percent from 26 percent.
Reality: Instead of capital coming to the industry, most of the FDI hike proved to be an
exchange of funds between the shareholders of the companies.

29th August 2018 - ICICI Prudential cuts 2.05% stake in Tata Chemicals: ICICI Prudential Life
Insurance Company has sold 2.05 percent stake, or over 52 lakh shares, in Tata
Chemicals through open market transactions. After sale of these shares, the insurance firm's
stake in Tata Chemicals has come down to 2.97 percent from 5.02 percent, according to a
regulatory filing

Internal News Drop

25th July 2018 - ICICI Prudential Life Insurance’s Q1 net profit falls 30%: The ICICI Prudential
Life Insurance reported that its June quarter net profit plunged 30% due to expenses incurred
on selling policies, but key metrics that determine future prospects improved. The first private
sector life insurer to turn public said its net profit for the June quarter fell to ₹282 crore, from
₹406 crore a year earlier, the company said in a statement.

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26th August 2018 - ICICI Prudential Life Insurance Company Ltd - Disclosure of Voting results
of Postal Ballot (Regulation 44(3) of SEBI (LODR) Regulations, 2015): ICICI Prudential Life
Insurance Company Ltd has informed BSE regarding the details of Voting results of Postal
Ballot, under Regulation 44(3) of SEBI (LODR) Regulations, 2015.

Table 4: PRICE CHANGE TABLE - ICICI PRU LIFE INSURANCE

Date Price Change %
Aug 01, 2018 420 0.35%
Aug 02, 2018 413.7 -1.50%
Aug 03, 2018 412.9 -0.19%
Aug 06, 2018 413.1 0.05%
Aug 07, 2018 420.25 1.73%
Aug 08, 2018 412.95 -1.74%
Aug 09, 2018 414.1 0.28%
Aug 10, 2018 413.55 -0.13%
Aug 13, 2018 407.25 -1.52%
Aug 14, 2018 399.3 -1.95%
Aug 16, 2018 387.6 -2.93%
Aug 17, 2018 389.7 0.54%
Aug 20, 2018 388 -0.44%
Aug 21, 2018 384.9 -0.80%
Aug 23, 2018 378.95 -1.55%
Aug 24, 2018 374.2 -1.25%
Aug 27, 2018 383.7 2.54%
Aug 28, 2018 380 -0.96%
Aug 29, 2018 382.55 0.67%
Aug 30, 2018 377.1 -1.42%
Aug 31, 2018 375.35 -0.46%
Sep 03, 2018 380.65 1.41%
Sep 04, 2018 368.95 -3.07%
Sep 05, 2018 368.5 -0.12%
Sep 06, 2018 374.15 1.53%
Sep 07, 2018 378.75 1.23%

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ANALYSIS OF STOCK

Fig 8: MACD - ICICI PRU LIFE INSURANCE

The MACD analysis shows that the stock might fall in the short run, as the signal indicators
for convergence on the fall are quite strong and the momentum may follow. However due
to low divergence, stock may soon reverse its bearish value and return to bulls in next 6
months owing to global and market cues.

FUNDAMENTAL ANALYSIS
ICICI has been under a lot of pressure, over the past few months, with ICICI PRU LIFE falling
to 350 also. However, with Chanda Kocchar being cleared of all charges and Sandeep Bakshi

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assuring investors about ICICI Pru Life and a strong track record in the past, ICICI Pru life is
bound to bounce back as the Insurance industry is seeing a boom.

We have a buy rating on ICICI Pru Life with target of 430 in next 1 year.

TECHNICAL ANALYSIS
The cues in short term don’t look that good for ICICI Pru Life. The curve shows that the stock
may slip further than its current levels of 377-380. Thus we recommend a sell rating at levels
of 365 in next 1 month.

SELL at 370,365 with a time frame of next one month.

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 STOCK 5: JSW STEEL

Fig 9: JSW Steel - Stock closing price from 1.08.2018 to 7.09.2018

External News Drop

13th August 2018 - JSW Steel makes ₹19,700 crore offer for Bhushan Power and Steel: JSW
Steel Ltd. submitted a resolution plan of ₹19,700 crore to the committee of creditors of debt-
laden Bhushan Power and Steel Ltd (BPSL), for the second time on 13th August 2018.

30th August 2018 - ICRA upgrades JSW Steel's long-term ranking: JSW Steel said today that
credit rating agency ICRA has upgraded its long-term ranking. The company said in a BSE filing
that "ICRA has upgraded long-term rating to '[ICRA]AA(Stable)' from '[ICRA]AA-(Stable)'. As
per ICRA scale, instruments with this rating are considered to have high degree of safety
regarding timely servicing of financial obligations and carry very low credit risk.

5th September 2018 - JSW Steel gains acquires 88% in Monnet Ispat: Shares of JSW Steel rose
2.6 percent intraday Wednesday as company and its promoters have acquired around 88
percent stake in the Monnet Ispat and Energy (MIEL) following completion of the insolvency
resolution proceedings. The Aion-JSW consortium was the sole bidder for the 1.5-million-
tonne asset in Chhattisgarh.

6th September 2018 - JSW Steel, Kirloskar Ferrous win iron ore mines in Karnataka auction:
Five iron ore mines were auctioned in Karnataka in the first week of September. Mysore
Minerals Ltd was bid for by JSW Steel for 95.2 per cent over the base price

Internal News Drop

25th July 2018 - JSW Steel reports results for the quarter ending June 30, 2018: JSW Steel
Ltd. Today reported its results for the First Quarter ended 30th June, 2018.
 Consolidated Profit After Tax up 275 % YoY to INR 2339 crores

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  Domestic sales value grew 27% YoY vs Indian demand growth of 9.2%
 Sales to automotive segment grew by 57% YoY
 Resolution plan submitted for Monet Ispat and Energy Limited
approved with modifications by the Mumbai bench of Honorable NCLT,
written order is awaited
 Acquisition of Aferpi in Italy completed
 Completed acquisition of 100% shareholding of Acero junction

3rd September 2018 - JSW Steel to expand Vijayanagar plant capacity to 18 mn tonnes a
year: Sajjan Jindal - Leading integrated steel manufacturer JSW Steel NSE 1.96 % plans to
scale up the capacity of its manufacturing plant in Vijayanagar, Karnataka to 18 million tonnes
per annum (MTPA), its chairman and managing director Sajjan Jindal has said.

4th September 2018 -JSW Steel to reduce import of iron ore from other states into
Karnataka: The main drivers are the company's captive mines in the state coming on stream
and a partial correction in the NMDC price. Steel major JSW Steel is planning to reduce import
of iron ore to its Karnataka facility as it starts new captive mines in the state. A price correction
made by NMDC is another key factor. The development comes at a time when local miners
have been alleging that JSW is not procuring enough from Karnataka, leading to pile-up of
inventory.

Table 3: PRICE CHANGE TABLE - JSW STEEL

Date Price Change %
Aug 01, 2018 327.55 -0.86%
Aug 02, 2018 332.05 1.37%
Aug 03, 2018 337.3 1.58%
Aug 06, 2018 336.95 -0.10%
Aug 07, 2018 340.5 1.05%
Aug 08, 2018 342.75 0.66%
Aug 09, 2018 342.95 0.06%
Aug 10, 2018 339.9 -0.89%
Aug 13, 2018 342.1 0.65%
Aug 14, 2018 341.1 -0.29%
Aug 16, 2018 328.15 -3.80%
Aug 17, 2018 334 1.78%
Aug 20, 2018 341.55 2.26%
Aug 21, 2018 341.9 0.10%
Aug 23, 2018 339.6 -0.67%
Aug 24, 2018 354.8 4.48%
Aug 27, 2018 355.6 0.23%
Aug 28, 2018 366.2 2.98%
Aug 29, 2018 399 8.96%
Aug 30, 2018 397.9 -0.28%

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 Aug 31, 2018 396.35 -0.39%
Sep 03, 2018 397 0.16%
Sep 04, 2018 390.85 -1.55%
Sep 05, 2018 398.35 1.92%
Sep 06, 2018 398.8 0.11%
Sep 07, 2018 406.6 1.96%

ANALYSIS OF STOCK

Fig 10: MACD - JSW STEEL

The MACD has seen a dramatic rise in this case, it might soon return to its normal levels, but
considering overall fundamentals the moving averages may just increase with a strong signal
towards increase in JSW steel.

FUNDAMENTAL ANALYSIS
JSW Steel is on a buy mode with it buying everything in its competitor base. The stock was
recently accepted by NIFTY index and the good news for JSW continues as it increased to 406
within a month. With rising dollar, JSW STELL will further rise as most of the company’s
revenue comes from exports. We recommend to buy JSW steel.

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BUY JSW Steel, with a target of 600 in next 2 years.

TECHNICAL ANALYSIS
JSW Steel has seen an over-valued rise in past one month. The stock will test the 400 mark it
has achieved and with NIFTY being over-valued, the bulls may drag it down in next 1 month.
Thus, HOLD the stock in short term.

HOLD THE STOCK FOR NEXT 1, 2 MONTHS.

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