Daily Morning Note

19 June 2020

Current % % SEBI allows declassification of REIT, InvIT sponsor status

Indices
Value 1D YTD
Asian markets are trading lower tracking cues from Wall Street overnight while
Sensex 34208 2.09 (17.08)
investors monitor the situation of recent increase in coronavirus cases in
Nifty 10092 2.13 (17.07)
BSE – Mid Cap 12673 1.05 (15.33) some countries. Nikkei is trading higher by 0.05%, Shanghai is trading higher
BSE – Sml Cap 12111 1.48 (11.60) by 0.43% and Hang Seng is trading lower 0.12%. Indian indices are expected to
SGX Nifty Fut 10048 0.03 - on a flat note. Sgx Nifty is trading flattish.
Sectors – Performance (BSE)
Bankex 23867 3.81 (34.92) The US Markets ended mixed for the second consecutive session as investors
Metals 7227 3.00 (30.70) digested mixed economic data. On the data front, Initial U.S. jobless claims totaled
PSU 4808 2.62 (30.88) 1.5 million, vs. estimates of 1.3 million, while separate report showed an unexpected
Telecom 1290 (0.12) 15.59
expansion in regional manufacturing activity in the month of June. The Dow Jones
Healthcare 16170 (0.09) 20.41
lost 40 points or 0.15% to close at 26,080, while the NASDAQ gained 33 points or
Teck 7445 0.43 (3.54)
0.33% to close at 9,943.
Nifty
CMP % Chg What to watch
Gainers/Losers
BAJAJFINSV 5451 8.22  Results Today: Punjab National Bank, Bajaj Electricals, LIC Housing
COALINDIA 138 6.33 Finance, Oil India, Cadila Healthcare, Camlin Fine Sciences, Century
BAJFINANCE 2527 5.48
Plyboards, Confidence Petroleum India, Anuh Pharma, Astron Paper,
TCS 2036 (0.57)
Dalmia Bharat Sugar, Entertainment Network India, Greenlam
HINDUNILVR 2067 (0.54)
Industries, Kirloskar Oil Engines, Novartis India, PTC India, The
BHARTIARTL 561 (0.44)
Ramco Cements, Ramco Systems, Unichem Laboratories and Zuari
FII Trading activities in Cash Agro Chemicals.
Date Net MTD CYTD
 DGFT removes prohibition on export of hydroxychoroquine API and its
FII 18/06 367 7,637 (68,306)
DII 18/06 1,131 1,537 87,889 formulations
Figs. in Rs Cr., Source: Bloomberg.  SEBI allows declassification of REIT, InvIT sponsor status

Corporate
Current % %
Global Indices
Value 1D YTD  Reliance Industries: The Public Investment fund to invest Rs 11,370 cr
Dow Jones 26080 (0.15) (8.61)
in Jio platforms for a 2.32% stake. With this transaction Jio platforms
Nasdaq 9943 0.33 10.82
has now raised Rs 1,15,693.95 cr from 10 investors.
DAX 12282 (0.81) (7.30)
Nikkei 225 22382 0.12 (5.39)
 Cipla has expanded partnership with Roche Pharma India to further
FTSE 100 6224 (0.47) (17.48) improve access to key oncology medicines.
Hang Seng 24443 (0.09) (13.29)  IRB Infrastructure has achieved financial closure for the toll-operate-
Shanghai 2952 0.42 (7.64) transfer (TOT) project – Mumbai Pune Expressway.
Bovespa 96125 0.60 (16.88)
 DIC India has received the first tranche of Rs 102.5 cr upon
Source: Bloomberg; As on 8.30 am IST

Forex Rate
registration of land, from Godrej Properties.
INR/USD 76.33 (0.05) (6.97)  Gujarat State Fertilizer to discontinue manufacturing operations of fibre
INR/EUR 85.71 (0.19) (7.00) and polymers at its Vadodara unit.
INR/GBP 94.86 0.98 (0.19)
 Emami will expand its personal hygiene segment with launch of toilet
INR/YEN (100) 71.46 (0.23) (8.79)
soap bars and hand washes.
 Varroc Engineering to consider raising capital via issue of Non
Convertible Debentures on June 25.

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 Trading Insights
Insight from trading volumes
% Chg in Qty Traded Qty Traded
Scrip Delivery % CMP*
(OverAvg 30 days) (‘000s)

GIC Housing Fin 1724 11784 15 92

Somany Ceramics 1034 935 43 136

Muthoot Finance 837 18885 16 1177

Hathway Cable 522 28369 17 34

JK Paper 521 7439 25 101

ITD Cem 511 2044 43 51

Shankara Build. 469 990 28 380

Insight from delivery

Scrip Delivery % Total Volume (‘000s) 30 days avg Delivery % CMP*

Birla Corpn. 46 450 20 535

CESC 43 146 21 602

Mahindra Holiday 91 69 45 161

SRF 54 250 27 3604

Torrent Power 37 702 19 320

India Cements 36 4506 20 132

Lupin 39 1782 22 919

*CMP-Closing Market Price

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 Investment Picks
Target % Target %
Company CMP Company CMP
Price Upside Price Upside
Alkem Labs 2304 2500 9
Shriram Transport 667 850 28
Apollo Hospitals 1347 1700 26
Suprajit Engg 138 175 26
Ashok Leyland 51 62 21
Varun Beverages 707 804 14
Bata India 1314 1425 8
Voltas 544 610 12
Bharti Airtel 561 650 16
Westlife Devlp 300 400 34
Biocon 394 474 20
Britannia Inds 3407 3877 14
Can Fin Homes 350 405 16
Carborundum Universal 244 300 23
CCL Products 239 267 12
Cummins 370 480 30
Endurance
Technologies 885 950 7
Escorts 981 1035 5
Federal Bank 48 63 31
Finolex Industries 456 550 21
Godrej Agrovet 425 450 6
Gulf Oil Lubricants 629 1005 60
HCL Tech 579 653 13
HDFC 1855 1975 6
HDFC Bank 1020 1233 21
Hero MotoCorp 2366 2550 8
ICICI Bank 352 495 41
Indraprastha Gas 450 510 13
IPCA 1599 1760 10
ITC 187 237 27
Jyothy Lab 117 140 20
Minda Corp 68 88 29
Minda Inds 280 318 14
Mindtree 907 1088 20
Mold-Tek Pack 188 228 22
Motherson Sumi 97 140 45
Natco Pharma 620 710 15
NOCIL 86 108 25
Oberoi Realty 362 501 38
Petronet LNG 260 300 15
Phoenix Mills 571 771 35
Power Grid 165 218 32
Rites 238 329 38
Shriram City Union Fin 662 1000 51

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 Technical View (Equity)
Daily call

Index CMP % up/dn S2 S1 P R1 R2

Nifty 10,091.65 2.13% 9750 9920 10015 10185 10280
Sensex 34,208.05 2.09% 33045 33630 33950 34530 34855

Nifty daily chart

Nifty opened on a flat note but buying led the index upwards to end in the green. Nifty closed at 10092 with a gain of 211
points.
On the daily chart index has formed a bullish candle and has closed above its previous major resistance of 10000 indicating
positive bias. The index is moving in a Higher Top and Higher Bottom formation on the daily chart indicating sustained up trend.
The chart pattern suggests that if Nifty breaks and sustains above 10100 level it would witness pullback rally which would take
the index towards 10300-10400 however any violation of 9900 level it would witness selling which would lead the index towards
9700-9500 levels. However if index crosses Nifty is trading above 20 and 50 day SMA's indicating positive bias in the short to
medium term. Nifty is expected to remain in an uptrend to sideways zone until it breaks 9550 on the downside.
The daily strength indicator RSI is moving upwards and is above its reference line indicating positive bias.
The trend deciding level for the day is 10015. If NIFTY trades above this level then we may witness a further rally up to 10185-
10280-10455 levels. However, if NIFTY trades below 10015 levels then we may see some profit booking initiating in the
market, which may correct up to 9920-9750-9655 levels

STOCK IDEAS FOR THE DAY

Company Name Buy / Sell Range Stop Loss Target
CENTURYTEX Buy above 307 303 311-315
HINDUNILVR Sell below 2055 2075 2035-2005
Note- Stocks Ideas are based on previous day’s close and are activated only if they trade in buy/sell range.

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 Daily Support/ Resistance of Nifty Companies
Company CMP Pivot Point R1 R2 S1 S2
NIFTY 50 10092 10016 10187 10282 9921 9750
ADANIPORTS 344 342 348 352 338 331
ASIANPAINT 1590 1596 1605 1621 1580 1571
AXISBANK 405 399 414 423 390 375
BAJAJ-AUTO 2680 2674 2703 2725 2652 2623
BAJAJFINSV 5451 5324 5626 5801 5149 4846
BAJFINANCE 2527 2481 2588 2649 2420 2312
BHARTIARTL 561 564 570 579 555 549
BPCL 371 369 378 386 362 352
BRITANNIA 3401 3413 3445 3489 3369 3338
CIPLA 642 641 645 649 637 633
COALINDIA 138 135 142 147 131 124
DRREDDY 4010 4018 4044 4079 3984 3958
EICHERMOT 17100 16963 17317 17533 16747 16393
GAIL 97 97 99 100 96 94
GRASIM 599 594 609 618 584 569
HCLTECH 578 577 584 591 571 564
HDFC 1848 1835 1882 1916 1800 1753
HDFCBANK 1018 1005 1038 1058 985 952
HEROMOTOCO 2360 2361 2379 2398 2341 2323
HINDALCO 151 150 152 154 148 146
HINDUNILVR 2067 2069 2083 2099 2052 2038
ICICIBANK 351 348 358 365 341 330
INDUSINDBK 496 494 506 515 485 473
INFRATEL 210 210 214 218 205 201
INFY 713 712 718 723 707 701
IOC 85 85 86 87 84 83
ITC 187 185 189 192 183 178
JSWSTEEL 194 192 196 198 190 186
KOTAKBANK 1300 1279 1330 1361 1249 1198
LT 898 891 907 917 881 865
M&M 506 502 513 519 496 485
MARUTI 5724 5708 5774 5825 5657 5591
NESTLEIND 16211 16189 16322 16434 16077 15943
NTPC 93 92 95 97 91 88
ONGC 84 83 85 85 83 81
POWERGRID 166 164 168 171 161 157
RELIANCE 1663 1645 1683 1704 1624 1585
SBIN 180 177 183 187 174 168
SHREECEM 21850 21753 22096 22342 21507 21164
SUNPHARMA 484 485 488 491 482 480
TATAMOTORS 97 96 98 99 95 93
TATASTEEL 319 315 323 327 311 303
TCS 2036 2040 2055 2074 2021 2006
TECHM 536 536 540 545 531 527
TITAN 978 971 987 997 961 944
ULTRACEMCO 3849 3836 3895 3941 3790 3731
UPL 428 427 432 437 423 418
VEDL 107 106 109 111 103 100
WIPRO 218 217 220 222 216 213
ZEEL 174 172 178 182 168 162
Source: Axis Direct.

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 Daily Derivative Report
19th JUN 2020

Nifty Futures View Volatility Bank Nifty Future View

Nifty Active Futures 10072 India VIX Index 31.45 BankNifty Active Futures 20912.00
Nifty Active Futures OI 9101625 Nifty ATM Call IV 26.64 BankNifty Active Futures OI 19,95,620
Change in OI -407250 Nifty ATM Put IV 33.72 Change in OI 1243840
Premium / Discount -19.65 PCR Index Options 1.61 Premium / Discount -44.00
Inference Short Covering PCR F&O Total 0.96 Inference Long Build Up
Nifty Options OI Distribution
HIGHLIGHTS:
Nifty futures closed at 10071.9 on a positive note with -4.28% decrease in
open interest indicating Short Covering
Nifty Futures closed at a discount of -20 points compared to previous day
discount of -27 points
BankNifty closed at 20913 on a positive note with 12.5% increase in open
interest indicating Long Build Up.
BankNifty Futures closed at a discount of 44 points compared to the
previous day discount of 54 points.

FII's were Buyers in Index Futures to the tune of 172 crores and were
Buyers in Index Options to the tune of 737 crores, Stock Futures were
Buyers to the tune of 1230 crores. FII's were Net Buyers in derivative
segment to the tune of 2187 crores.

India VIX index is at 31.45.Nifty ATM call option IV is currently 26.64

whereas Nifty ATM put option IV is quoting at 33.72.
Nifty Options - Change in OI
Index options PCR is at 1.61 and F&O Total PCR is at 0.96.
Among stock futures MUTHOOTFIN ,BHEL ,MANAPPURAM & L&TFH
have witnessed long build up and may show strength in coming session.
Stock which witnessed short build up are IGL ,CUMMINSIND ,BATAINDIA
& NESTLEIND and may remain weak in coming session.

Nifty Put options OI distribution shows that 9500 has highest OI

concentration followed by 9600 & 9900 which may act as support for
current expiry.
Nifty Call strike 10500 followed by 10000 witnessed significant OI
concentration and may act as resistance for current expiry.

SECURITIES IN BAN PERIOD::ADANIENT,BHEL,IDEA,

JUSTDIAL & PVR

Stock Futures - Long Build Stock Futures - Short Build Up

Symbol Fut Price % Chg Open Interest % Chg Open

Symbol Fut Price % Chg % Chg
Interest

MUTHOOTFIN 1145.95 15.82% 3771000.00 108.46% IGL 449.70 -5.35% 9043375.00 21.80%

BHEL 31.90 15.79% 72494200.00 43.58% CUMMINSIND 369.65 -3.77% 1425300.00 13.17%

MANAPPURAM 149.45 4.55% 18606000.00 20.80% BATAINDIA 1317.90 -0.16% 1415150.00 11.48%

L&TFH 64.00 4.32% 28984800.00 13.87% NESTLEIND 16221.00 -0.04% 492250.00 6.91%

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 Disclosures:

The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the
Regulations).

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1 Rajesh Palviya
2 Vaishnavi Jagtap
3 Rahil Vora
4 Hemang Gor
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Designation E-mail
Technical & Derivative Analyst - (Head) rajesh.palviya@axissecurities.in
Technical Analyst vaishnavi.jagtap@axissecurities.in
Derivative Analyst rahil.vora@axissecurities.in
Derivative Analyst hemang.gor@axissecurities.in
Research Associate hiren.trivedi@axissecurities.in

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