The Daily

The Daily
September 22, 2021
 The Daily

Indian markets could open flat to mildly lower, in line

DOMESTIC INDICES with mildly lower Asian markets today and mildly
CLOSE POINTS % CHANGE negative US markets on Tuesday..…
SENSEX 59005 514 0.88 The Dow and S&P 500 extended losses to a fourth day in a
NIFTY 17562 165 0.95 row Tuesday, marking the worst stretch for the S&P 500
since mid-May, after worries about China’s indebted
MIDCAP 24792 194 0.79 property company Evergrande were blamed for Monday’s
SMALL CAP 27529 39 0.14 global equity rout.
U.S. home builders started construction on homes at a
SECTORAL INDICES seasonally-adjusted annual rate of 1.62 million in August, a
CLOSE POINTS % CHANGE 3.9% increase from the previous month, the U.S. Census
Bureau reported Tuesday. Compared with August 2020,
REALTY 3341 113 3.49
housing starts were up 17.4%. The pace of permitting for
METAL 19585 501 2.62 new housing units also increased in August, up 6% from
IT 35216 506 1.46 July and 13.5% from a year ago.
TECK 15636 224 1.46
The US Federal Reserve on Tuesday kicked off a two-day
OIL & GAS 17472 169 0.98 meeting that could lead to a more hawkish interest-rate
Finance 8496 58 0.69 forecast. Both the Fed’s potential timeline for tapering
Healthcare 26281 180 0.69 stimulus and any shifts in expectations for interest-rate
CG 25888 132 0.51 increases amid elevated price pressures will be key for
investors.
BANKEX 42636 91 0.21
CD 40448 -87 -0.21 In the US, the House passed a bill Tuesday that would both
AUTO 22878 -61 -0.26 prevent a government shutdown and suspend the debt
limit in a step toward preventing possible economic
POWER 3020 -16 -0.54
calamity. The chamber approved the plan in a 220-211
vote. All Democrats voted for it and all Republicans
BSE 200 GAINERS/LOSERS opposed it. As the bill heads to the Senate, Republicans
are threatening to block it, which could leave Democrats
GAINERS % LOSERS %
scrambling to find another way to avoid a federal funding
OIL 7.04 ADANITRANS -5.00 lapse — or even a first-ever default on U.S. debt. Congress
MINDTREE 6.50 IBULHSGFIN -3.41 has to pass a funding plan by Sept. 30 to prevent a
IDBI 5.95 NIACL -3.33 shutdown.
VBL 5.74 DALBHARAT -2.94 Asian stocks fell Wednesday as traders assess the debt
JSWSTEEL 5.49 MARUTI -2.54
crisis at China Evergrande Group and gird for a Federal
Reserve meeting that is expected to signal a reduction in
stimulus later this year.
ADVANCE/DECLINES China Evergrande Group’s main unit said on Wednesday
that it would make a bond interest payment on Sept. 23
BSE %
($35.9 mn vs 83.5 mn due), offering some relief to global
ADVANCES 1616 48 markets on edge over a possible default by China’s No. 2
DECLINES 1613 47 property developer.
UNCHANGED 172 5 Nifty ended higher on Sept 21 aided by a late surge as
global markets seemed to be recovering from contagion
fears based on troubles at Evergrande. At close, Nifty was
INSTITUTIONAL ACTIVITY up 0.95% or 165 points to 17562.
Rs Cr 20/09/21 21/09/21 SEPT TOTAL
Nifty made a lower low compared to the previous day in
FII 93 1042 12588 the morning of Sept 21 but recovered to close with decent
DII -1627 2168 -1014 gains. 17623-17644 could be the next resistance for the
Nifty while a close below 17353 could lead to further
selling in the markets
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 The Daily

GLOBAL INDICES KEC International won new work orders worth Rs

CLOSE POINTS % CHANGE 1,157cr:
KEC International has secured new orders of Rs. 1,157
DOW JONES 33920 -50.63 -0.15
crores across its various businesses.
S & P 500 4354 -3.55 -0.08
NASDAQ
Transmission & Distribution (T&D): The business has
14746 32.50 0.22
secured orders of Rs 663 crores for projects in the Middle
FTSE 6981 77.07 1.12 East, Africa, and the Americas. Railways segment has
CAC 6553 96.92 1.50 secured orders of Rs 220 crores for 2 x 25 kV Overhead
DAX 15349 216.47 1.43 Electrification (OHE) and associated works for speed
NIKKEI
upgradation in India.
29708 -131.71 -0.44
SHANGHAI 3598 -15.87 -0.44 Civil: The business has secured an order of Rs 173 crores
HANG SENG for construction of a new airport terminal building and
24222 122.40 0.51
associated works in South India. Cables segment secured
BOVESPA 110250 1406.00 1.29 orders of Rs 101 crores for various types of cables in India
and overseas.
EXCHANGE RATES
Robusta Coffee extends surge to 4-Year high:
VALUE % CHANGE Robusta coffee prices extended a run to the highest in
USD/INR
more than four years as concerns deepen over the supply
73.7 0.20
outlook from Vietnam and Brazil, the world’s top two
EURO/USD 1.173 0.04 producers. The bean widely used in instant coffee-
USD/GBP 1.367 0.05 beverages such as Nestle SA’s Nescafe brands has surged
USD/JPY 109.4 0.15 about 55% this year after frosts and drought took heavy
toll on Brazil’s crops, especially arabica coffee. That
boosted demand for robusta. At the same time, pandemic
COMMODITIES restrictions, a lack of containers and soaring freight costs
have made it more expensive to import from Asia
VALUE % CHANGE especially Vietnam. Diminished potential in Colombia and
GOLD ($ / Oz) 1776.7 -0.08 India also eroded the supply prospects.
SILVER ($ / Oz) 22.7 0.54
Infosys ties up with ServiceNow to offer its services for
CRUDE OIL FUTURES 71.2 0.96 manufacturers:
BRENT OIL ($ / Infosys announced its collaboration with ServiceNow, a
75.0 0.39
Barrel) leading digital workflow company to provide enterprise-
level service management for customers in manufacturing
BOND YIELD companies. Through this collaboration, Infosys said it will
leverage its industry cloud blueprints, part of Infosys
VALUE % CHANGE
Cobalt, and deploy ServiceNow Operations Technology
IND10 YEAR BOND Management (OTM), to support manufacturing industries
6.122 -0.016
YIELD as they digitize their factories, floors, and plant operations.
Infosys to support manufacturing industries as they
digitize their factories, floors, and plant operations.
ADR
VALUE % CHANGE Vodafone Group, Aditya Birla Group may infuse fresh
DR REDDY’S LAB 65.8 1.20 equity into Voda Idea:
HDFC BANK 72.6 -0.41 The Aditya Birla Group (ABG) and Vodafone Group Plc may
ICICI BANK 19.2 0.21
infuse fresh capital by way of equity into their financially
stressed Indian telecom venture, Vodafone Idea Limited
TATA MOTORS 20.5 2.92
(VIL). The quantum of equity is not known yet.
WIPRO 9.41 1.51
VEDANTA LTD 15.73 1.03
INFOSYS 23.12 1.58

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 The Daily

Torrent Power acquires 156 MW Wind Power Plants from CESC:

Torrent Power Limited has entered into a share purchase agreement with CESC Limited, Haldia Energy Limited and other
Nominal Shareholders for the acquisition of 100% in Surya Vidyut Limited (the SPV), wholly owned subsidiary of CESC
Limited. Surya Vidyut operates 156 MW Wind power plants, spread across Gujarat, Rajasthan and Madhya Pradesh.
Enterprise Value estimated for this acquisition is at about Rs 790cr.Torrent Power currently has an aggregate installed
generation capacity of around 3,879 MW comprising of 2,730 MW gas-based capacity, ~787 MW renewable capacity
and 362 MW coal-based capacity. Further, renewable power projects of 815 MW are under development, of which LoAs
have been received and PPA has been executed for projects of 515 MW.

HCL Tech, Lendico ink multi-year pact to help SMEs:

HCL Technologies (HCL) has entered a multi-year agreement with Lendico, a brand of ING Germany, to deliver
application and engineering services. The deal will help Lendico create a state-of-the-art digital platform that makes
business banking faster and more convenient for small- and medium-sized enterprises (SMEs). As part of the agreement
HCL Tech will establish a tech lab in Berlin that will combine fintech mindset, agile culture and customer focus with
engineering expertise, global delivery capabilities, and deep domain knowledge of financial services and risk
management.

Hiring activity witnesses marginal growth sequentially in August:

Hiring activity witnessed a marginal growth of 1 per cent in August sequentially due to decline in job postings in sectors
including engineering, logistic, agro-based industries among others, which has shown a slight improvement in the
previous month, a report said on Monday. Overall job postings witnessed a slight uptick in job posting activity in August,
with a 1 per cent increase compared to the previous month, according to data from Monster Employment Index by
Monster.com, a Quess Corp company.

Nucleus Software to consider buyback on Sep 24:

Board of Directors of the company will be held on September 24, 2021 inter-alia to consider the proposal for Buyback of
equity shares. It had cash & equivalents of Rs 500cr as on Mar-2021.

Surya Roshni received order of Rs 41.2 crore:

Company has received order of Rs 41.22 crore for implementing of smart LED street lights and installation of centralized
monitoring system with operation and maintenance from Greater Noida Industrial Development Authority (GNIOA).

Lincoln Pharmaceuticals plans to launch Cephalosporin products :

Lincoln Pharmaceuticals is planning to launch Cephalosporin products soon. Company has acquired a facility in Mehsana,
Gujarat. Investment in Cephalosporin plant would be Rs 30 crore. Acquisition and further capex will be funded from
internal accruals. Company expects commercial operations from March 2022. The plant is expected to contribute sales
of around Rs 150 crore in the next 3 years. The plant will cater to all the Cephalosporin products i.e. Tablet, Capsule, Dry
syrup and Injectable. The acquired facility in Mehsana has been designed as per the PIC's and European Region.
Company is in the process of applying for WHO GMP Certifications for the facility and expects to receive by Dec-2021.
Company is planning to manufacture 20 plus Cephalosporin products and is planning to start product registration soon
for the domestic and exports market.

Important news/developments to influence markets

 A record share of British manufacturers reported rising new orders this month. The Confederation of British
Industry's monthly manufacturing order book balance rose to +22 in September from +18 in August, its highest level
since records started in 1977.

 The U.S. current account deficit increased to a 14-year high in the second quarter, the current account deficit, which
measures the flow of goods, services and investments into and out of the country, rose 0.5% to $190.3 billion last
quarter. That was the largest shortfall since the second quarter of 2007.

 U.S. housing starts rose by more than expected in August, residential starts rose 3.9% last month to a 1.62 million
annualized rate after an upwardly revised July print.

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 The Daily

Index CMP View R1 R2 S1 S2

Nifty Sep Fut 17559 Bullish 17640 17722 17406 17254

BankNifty Sep Fut 37370 Bullish 37667 37963 36841 36212

Daily Technical View on Nifty

Nifty – Hourly Timeframe chart Nifty : Resumption of an Uptrend
 On 21st Sep 2021, Nifty and BankNifty
recovered sharply from the day’s low and
closed on a strong note.

 Nifty took support on its 13 days EMA

and reversed north.

 BankNifty has formed “Long legged Doji”

candlestick pattern on the daily chart,
which is having bullish implications.

 At 17567, Nifty has completed the 50%

retracement of the total fall which was
Nifty – Daily Timeframe chart seen in last three sessions.

 Next resistance level for Nifty is seen at

17622, which happens to be the 61.8%
retracement of the recent fall.

 Traders are advised to remain long in

Nifty and BankNifty with the stoploss of
17325 and 36525 respectively.

 From the sectors FMCG, Pharma and IT

could outperform

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 The Daily

SHORT TERM TRADING CALLS

NO RECO REC
COMPANY NAME ENTRY CMP SL TARGET UPSIDE % VALID TILL
. DT. O

NIFTY 17600 SEP CALL

1 21-SEP-21 BUY 115.05 131.0 90.0 160.0 22.1 28-SEP-21
OPTION (30TH SEP EXPIRY)
INFOSYS 1740 SEP CALL
2 21-SEP-21 BUY 17.15 16.2 12.0 28.0 72.8 28-SEP-21
OPTION (30TH SEP EXPIRY)

NIFTY 17550 SEP CALL

3 21-SEP-21 BUY 153.55 157.0 119.0 206.0 31.2 24-SEP-21
OPTION

CADILA HELATHCARE SEPT

4 20-SEP-21 SELL 545-555 552.0 565.0 519.0 6.0 27-SEP-21
FUT

5 7-SEP-21 BUY CENTURY PLY 399-411.55 414.7 391.0 442.0 6.6 28-SEP-21

OPEN CASH POSITIONAL CALLS

COMPANY TARGET TARGET

NO. RECO DT. RECO ENTRY CMP SL UPSIDE % VALID TILL
NAME 1 2

1 9-AUG-21 BUY TATA CHEMICALS 838.3 802.0 750.0 927.0 1000.0 25 9-NOV-21

2 23-AUG-21 BUY SCHAEFFLER 7100.1 7277.4 6400.0 7799.0 8150.0 12 23-NOV-21

3 30-AUG-21 BUY EDELWEISS 83.4 78.8 69.5 101.0 122.0 55 28-FEB-22

4 21-SEP-21 BUY GNFC 374.6 383.0 332.0 424.0 465.0 21 21-DEC-21

*= 1st Target Achieved

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 The Daily

OPEN DERI POSITIONAL CALLS

COMPANY TARGET TARGET

NO. RECO DT. RECO ENTRY CMP SL 2 UPSIDE % VALID TILL
NAME 1
TILL 30TH SEP
1 27-AUG-21 BUY CIPLA SEPT FUT* 919.7 954.8 919.7 943.0 978.0 2
21
ASHOK LEYLAND TILL 30TH SEP
2 9-SEP-21 BUY 125.8 127.5 119.0 133.0 140.0 10
SEP FUT 21
TILL 30TH SEP
3 14-SEP-21 BUY ESCORT SEP FUT* 1404.8 1479.8 1404.8 1472.0 1525.0 3
21
POWER GRID SEP TILL 30TH SEP
4 15-SEP-21 BUY 179.3 176.4 173.0 186.0 191.0 8
FUT 21
APOLLO TYRE SEP TILL 30TH SEP
5 17-SEP-21 BUY 225.9 220.2 210.0 245.0 - 11
FUT 21

OPEN E-MARGIN POSITIONAL CALLS

COMPANY TARGET TARGET

NO. RECO DT. RECO ENTRY CMP SL UPSIDE % VALID TILL
NAME 1 2

1 30-JUL-21 BUY PETRONET* 219.5 231.8 219.5 235.0 245.0 6 30-OCT-21

GODREJ
2 4-AUG-21 BUY 585.3 554.9 520.0 655.0 720.0 30 4-NOV-21
INDUSTRIES
3 18-AUG-21 BUY SASKEN * 1318.2 1371.8 1318.2 1480.0 1600.0 17 18-NOV-21

4 26-AUG-21 BUY ZYDUS WELNESS 2345.0 2418.0 2126.0 2586.0 - 7 26-NOV-21

5 30-AUG-21 BUY RAIN * 213.6 223.0 213.6 235.0 270.0 21 30-NOV-21

SUDARSHAN
6 8-SEP-21 BUY 655.5 645.8 618.0 700.0 780.0 21 8-DEC-21
CHEMICAL
7 13-SEP-21 BUY POLYPLEX* 1623.0 1722.6 1623.0 1805.0 1990.0 16 13-DEC-21

8 14-SEP-21 BUY JUBLINGREA 763.0 772.7 690.0 858.0 950.0 23 14-DEC-21

9 15-SEP-21 BUY BEML 1462.5 1390.6 1355.0 1624.0 - 17 15-DEC-21

10 16-SEP-21 BUY CSB BANK 310.5 298.0 281.0 343.0 - 15 16-DEC-21

KEC
11 21-SEP-21 BUY 454.4 454.9 415.0 501.0 - 10 21-DEC-21
INTERNATIONAL

*= 1st Target Achieved

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 The Daily

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