Daily Morning Note

9 August 2021

Current % % Market Commentary

Indices
Value 1D YTD
Sensex 35,209 0.4 15.0  Asian Markets: Asian markets are trading higher as investors take note of US
Nifty 14,836 (0.4) 15.1 jobs report and await release of US inflation data during the week. Nikkei is
BSE Midcap 15,761 0.1 14.9 shut for trading due to holiday, Hang Seng is trading higher by 0.77% and
BSE Small cap 27,820 0.3 1.4 Shanghai is trading higher by 0.36%.
SGX Nifty Fut. 16,231 -0.2 NA
 Indian Indices: Indian indices are expected to open marginally lower. Sgx Nifty
Sectors – Performance (BSE)
was trading lower by 0.15%.
Telecom 1,510 1.4 19.0
Power 2,672 1.0 29.6  The US markets ended mixed after optimism due stronger than expected
Tech 13,890 0.2 25.1 monthly jobs data overshadowed concerns over the Delta variant impacting
Realty 3,219 -1.0 29.9 economic recovery. On the data front, The Dow Jones gained 145 points or
Metal 21,150 -0.5 82.3
0.41 % to close at 35,209 while the Nasdaq dropped 59 points or 0.62% to
Consumer Dur 36,579 -0.3 20.4
close at 14,7873.
Nifty
CMP % Chg Q1FY22 Results
Gainers/Losers
INDUSINDBK 1,030 3.2  Result Preview: Shree Cement , Sundaram finance , Automotive Axles

ADANIPORTS 711 2.5  Result Update : City Union Bank (Buy), Oriental Carbon & Chemicals (Buy),
IOC 106 1.9 Abbott India (Hold), Amber Enterprises (First Cut), Affle Ltd ( First Cut), Astral
CIPLA 911 (3.6) Limited ( Hold)
RELIANCE 2,089 (2.1)  Upcoming Results: Shree Cement, Sundaram finance , Automotive Axles,
SHREECEM 28,387 (2.0) Astrazeneca Pharma India, Balrampur Chini Mills, Birla Tyres, Bombay
Dyeing, Chemcon Speciality Chemicals, Clean Science and Technology, Gati,
FII Trading activities in Cash Gujarat State Petronet, Indian Hotels, Laxmi Organic Industries, MRF,
Date Net MTD CYTD
Nilkamal, Reliance Power, Satin Creditcare Network, Shalby, Shankara
FII 06-08 69 13,212 75,342
Building Products, Subex, Suven Life Sciences, Timken India, and Venky's
DII 06-08 631 26,887 19,770
Figs. in Rs Cr., Source: Bloomberg. (India)

What’s inside
Current % %
Global Indices
Value 1D YTD
 Pick of the week: JK Lakshmi Cement
Dow Jones 35,064 0.8 14.6
News in Focus
Nasdaq 14,895 0.8 15.6
 India's forex reserves increase by $9.42 bn to $620.57 bn
DAX 15,745 0.3 14.8
Nikkei 225 27,760 0.1 1.1
 SEBI reduces minimum lock-in period for promoters after IPO, from 3 years to

FTSE 100 7,120 (0.1) 10.2 18 months

Hang Seng 26,146 (0.2) (4.0)  Adani Enterprises incorporated a wholly owned subsidiary called Noida Data
Shanghai A Sha 3,453 (0.4) (0.6) Center Limited, with the objective to develop, operate, maintain, deal with the
Source: Bloomberg; As on 7:30 am IST business of data centers/IT/ITeS/ Cloud.
Forex Rate  Wipro completed the acquisition of Ampion on August 6 for $117 mn. Ampion
INR/USD 74.2 0.0 -1.5
is an Australia-based provider of cyber security, DevOps and quality
INR/EUR 87.6 0.2 2.5
engineering services.
INR/GBP 103.2 0.1 -3.2
 Karnataka Bank announced that it has been empanelled by the Reserve Bank
INR/YEN (100) 67.5 0.2 4.7
of India to act as an "Agency Bank" to facilitate transactions related to
government businesses.
 Rolex Rings will list its equity shares on the bourses post IPO. The issue price
is Rs 900/ share

For private circulation only 1

 Buy
Pick of the Week JK Lakshmi Cement Ltd. Target Price
7th Aug 2021
Cement 750

JK Lakshmi Cement (JKLC) is a dominant player in the cement industry in its key markets of North and West
India and derives 75% of its revenue from these two regions. It has a sizeable market presence in Eastern
India as well. The total cement capacity of the company on a consolidated basis stands at 13.9 million tonnes
per annum (mntpa). A strong network of about 7000+ cement dealers spread in the states of Madhya
CMP Target Pradesh, Chhattisgarh, Rajasthan, Gujarat, Uttar Pradesh, Punjab, Delhi, Haryana, Jammu & Kashmir,
(Rs) (Rs) Maharashtra, Odisha, and West Bengal enables the company to efficiently serve its customers across India.

672 750 Investment Rationale

 Diversified market presence to drive revenue and profitability: JKLC has a diversified presence in its key market
of North and West India along with a sizeable presence in Eastern India. Regional diversification allows the company
to sell its product at various locations which insulates it from the regional demand-supply fluctuations. With higher
capacity utilization anticipated moving ahead, we expect the company to deliver a volume CAGR of 6% over FY21-
FY23E, providing a significant thrust to revenue and profitability growth.
MARKET DATA
 Operating efficiency and higher realizations to result in margin expansion: JKLC’s integrated operations and
No. of Shares 11.8 Cr better utilization of existing capacity will help the company to consolidate its position and capture further opportunities
in its key market (North, West, and East). With higher capacity utilization and controlled costs, we expect realization to
Market Cap Rs 7,907 Cr improve by 2.5% each year for FY22E-23E. Consequently, this will result in EBIDTA/tonne improvement of 9% over
the period FY21-E23E to Rs 872/tonne.
52-week High / Low Rs. 816/243  Strengthening capital structure: The company has reduced its debt on regular basis and the current Debt/ Equity
ratio stands at 0.5x, significantly lower from 1.3x in FY18, and the same is expected to reduce further to 0.2x by
BSE Code 5000380 FY23E. We expect the company to become a net-debt free company by FY23E.
 Strong brand image aided by experienced promoter: JKLC promoters have extensive experience in the cement
NSE Code JKLAKSHMI
industry. The company has also established strong brands of product portfolios through extensive branding,
sponsorship, and promotional activities. This has led to creating niches for its product in its key markets.
 We recommend a BUY on the stock with a target price of Rs 750/share

Financial Summary (Standalone)

Y/E Sales EBITDA Net Profit EPS PER EV/EBITDA P/BV ROE
Mar (Rs cr) (Rs cr) (Rs cr) (Rs) (x) (x) (x) (%)
FY20 4044 672 235 17 11 5 1.3 13
FY21 4385 790 395 28 20 9 3.3 18
FY22E 5084 937 478 41 17 8.5 3.2 21
FY23E 5301 969 505 43 16 7.5 2.7 18
Source: Company; Axis Securities
 Abbott India - Q1FY22 - Result Update; Maintain HOLD; TP: Rs 18,000.

Sales Improvement in Key Therapies

AIL reported Q1FY22 revenue growth of 14.4% YoY (above our expectation of +12%), majorly driven by sales improvement in
key therapies such as Gasteroinsteinal and Hormones. Sales of Duphaston (Gynecological) brand (Rs 265 Cr, Source:
AIOCD) is stabilizing from the last 3 quarters on a QoQ basis. Earlier, Mankind has launched “Dydrogesterone” in competition
with Duphaston that resulted in a decrease in Duphaston sales.
Gross Margins improved by 150bps due to better product mix and low raw material prices. EBITDA margins stood 21.8%,
almost flat due to an increase in other expenses. Reported PAT of Rs 196 Cr was impacted by lower other income and higher
tax rate for the last quarter.
We expect stable sales in the Duphaston brand and an increase in volume in the Thyronorm brand to result in
revenue and PAT CAGR of 11.1% and 11.3% respectively 0ver FY21-FY24E. However, considering rich valuations (PE
40x for FY24E), we recommend HOLD with a target price of Rs 18,000/share.

Affle Ltd. Q1 FY22 Result Update (First cut)

Q1FY22 revenue posted strong growth of 7.7% QoQ (vs our growth estimate of 6.5% QoQ) and stood at Rs 153 Cr.
EBITDA margins declined by 130bps QoQ to 23% owing to higher employee expenses, data, and inventory costs. The
company recorded a Net Income of Rs 30 Cr, delivering a strong growth of 11.2% QoQ.
Converted user base increased to 31.5 Mn, growing strongly at 5% QoQ while its CPCU revenue, too, increased marginally to
42/customer from 41/customer in Q1FY21.
Affle completed the patent transfer from Appnext Limited to Affle MEA FZ-LLC, an indirect wholly-owned subsidiary of the
company. This patent (filed in the US) is related to the predictive modeling of mobile users' behavior to power the on-device
app recommendation technology and will help the company further strengthening its global IP portfolio.
Affle completed the acquisition of tech IP assets and 100% ownership of Jampp – a global programmatic mobile marketing
company. Jampp strengthens Affle’s CPCU business model and enables Affle to expand into fast-growing markets such as the
US and LATAM while further consolidating its position in the APAC.

Oriental Carbon & Chemicals Ltd Q1FY22 Result Update; ; Maintain Buy; TP: Rs 1298

Well-Positioned For Long-term Growth Despite Sub-par Results

Financial Performance: Oriental Carbon and Chemicals Ltd. (OCCL) reported lower-than-expected numbers on a consolidated
basis with revenue at Rs 92 Cr, (lower than our estimate of Rs 100 Cr), down by 22% QoQ. The company posted EBIDTA of
Rs 19 Cr, down 51% QoQ, on account of higher employee cost (up 514bps QoQ) and other expenses (up 850bps QoQ). This
resulted in an EBIDTA margin of 20.4%, down 1180bps QoQ. PAT came in at Rs 13 Cr in Q1FY22, registering a de-growth of
57% QoQ owing to negative operating leverage and higher tax outflow (up 68% QoQ).
OCCL enjoys a dominant position in the insoluble sulphur (IS) market with a 60% market share in India and ~10% globally.
Outlook for the Tyre industry appears stable-to-moderately optimistic in light of the shift towards personal mobility and
increased vehicle utilisation. The domestic rural economy, too, is expected to revive strongly in the backdrop of good rains and
expected good Rabi harvest, and the urban economy is expected to follow suit. The economic revival with increased vehicles
activity on the road and consequent wear and tear of tyres would push the demand for tyres in the replacement segment,
which is responsible for 70% of the overall tyre demand.
Similarly, there has been a shift towards usage of radial tyres esp in LCV and TBR which remain underpenetrated, leading to
higher demand for IS. OCCL would be a key beneficiary of rising demand for tyres given its marquee customer base of 40+
tyre OEMs as the unlock theme plays out globally and demand for tyres from both the OEMs and replacement market
improves.
We continue to like OCCL as demand for IS continues to move northwards with an increase in capacity utilization of
tyre makers. We retain a BUY with a target price of Rs 1,298/share (12x FY23E), implying an upside of 17% from CMP.

For private circulation only 2

 Amber Enterprises (First cut): Revenues ahead of estimates, margins in line

Amber Enterprises reported revenues of Rs 708 Cr (up 173% YoY, down 56% QoQ) ahead of our estimates of Rs 527 Cr. The

revenues were impacted due to the second wave of covid-19 which impacted sales during the peak season in April (last 10

days) & May while improvement was seen post easing of lock down restrictions in June. The gross margins stood at 16.8% (up

64 bps) vs. estimates of 17%. The company reported EBITDA of Rs 49.3 Cr (vs. Operating loss of Rs -2.5 Cr in Q1FY21)

implying margins of 6.9% (vs. –ve 0.9% in Q1FY21). The margins include impact of ESOPs Rs 3.26 Cr, excluding which the

margins would be 7.3%. The company reported PAT of Rs 11.2 Cr (vs. our estimates of Rs 7 Cr) as compared to Net Loss of

Rs 24 Cr in Q1FY21.

During Q1FY21, RAC revenues stood at Rs 452 Cr contributing to 64% of revenues during the quarter. The Components and

Mobility Application business (Sidwal Subsidiary) revenues stood at Rs 256 Cr contributing 36% of Q1 revenues. As per the

management, there has not been much inventory in the channel due to phase wise lockdown during the quarter. There has

also been additional demand due to restrictions on import of refrigerant filled AC’s. Amber witnessed pickup in demand from

retail and OEMs, as business moves towards normalcy.

The management plans to increase the share of revenues from components with increasing product offerings, catering to

newer geographies, new client additions and strong order book (Sidwal).

We currently have a Buy with a target of Rs 3330 and shall revisit our estimates post concall today at 9.30 am.

City Union Bank – Q1FY22 Result Update: Buy; TP: Rs 195

Stable Performance; Asset Quality In Check

Financial Performance: City Union Bank (CUB) Q1FY22 performance was largely stable with asset quality in check. Stress
was well managed in a tough environment with restructuring at ~5.5% and slippage ratio of ~5%. Strong CASA growth of 22%
resulted in the Cost of Funds declining by 6bps QoQ (4.09%), aiding NIM expansion by 14bps (3.86%). Loan growth was
muted at 5% YoY. PPOP growth was aided by improved NII, and cost controls, up 8%/35% YoY/QoQ. G/NNPA rose by
48bps/52bps QoQ to 5.6%/3.5%. PCR is healthy at ~63%. Credit costs stood at 0.6% in Q1FY22 vs 1.3% in FY21. PAT was up
12%/56% YoY/QoQ to Rs 1.7 Bn.

Management Commentary: The management expects FY22 to have lower slippages and better GNPAs than those recorded
in FY21. It further expects recoveries to improve in H2FY22 and ROAs to normalise to ~1.5% over the next four quarters.
SMA-2 book stands at ~3.2%, much lower than ~6% in Q3FY20.

Outlook & Valuation: The company continues to focus on strengthening its balance sheet. We believe astute management,
granular deposit franchise, and stable CAR are key positives amidst tough macro conditions. While slippages may remain
higher in H1FY22, LGD ratios have been historically low and restructuring in the past has been managed well by the bank. We
maintain our BUY recommendation with a target price of Rs 195/share (2.2x FY23E ABV).

For private circulation only 3

 Astral Limited: Q1FY22 results preview

 Demand scenario of pipe as well as adhesives was affected heavily in May and first half of June. But from Last week

of June onwards both businesses have gained very fast momentum and we are seeing very encouraging sales

numbers in both segments pipes and adhesives.

 In July 2021 pipe sales has grown by 65% and adhesives by 36% in comparison to July 2020.

 Astral Limited delivers consolidated top line and PBT growth of 73% and 332% respectively for Q1FY22.

Astral’s results were driven by a stronger than anticipated recovery across segments and adventitious gains. The management

remained optimistic on medium term growth prospects across segments and highlighted near term uncertainties amid the

pandemic. Rich valuations at 70X FY2024E EPS factor robust growth in the long run and offer no margin of safety. Therefore,

We recommend “HOLD” with a target price of Rs 2,250/share (upside 1.2%) valuing the stock at 70x FY24E.

For private circulation only 4

 Q1FY22 Earnings preview: Our Coverage
Year end March
Q1FY22 Q4FY21 QoQ (%) Q1FY21 YoY (%) Result expectations
(Rs mn)

Shree Cement Limited

Volumes 6.16 8.21 -25% 4.93 25%  Volume to grow on YoY basis due to lower base last year.

COVID 2.0 disrupts demand momentum.

Revenues 3039 3931 -23% 2326 31%
 Revenue to be higher on YoY basis due to volume growth and
Gross Profit 1580 2031 -22% 1221 29%
better realization
Gross margin (%) 52.0% 51.7% 52.5%
 Gross margin to be lower on d YoY basis due to higher cost.
EBITDA 956 1177 -19% 701 36%  EBITDA margin to higher YoY basis due to better realization.

EBITDA margin (%) 31.4% 29.9% 160bps 30.1% 130bps  PAT to be higher due to higher sales and realization on YoY

basis.
PAT 538 767 -30% 371 45%
 EBITDA/tonne to be higher on YoY basis.
EPS (Rs) 149.3 213.2 -30% 103.0 45%

EBITDA/Tonne 1551 1434 8% 1421 9%

Year end March

Q1FY22 Q4FY21 QoQ(%) Q1FY21 YoY(%) Result expectations
(INR cr.)

Sundaram Finance

NII 473 483 -2.0% 425 11.3%

 Disbursements to slow down amidst cautious growth
Net Income 478 533 -10.3% 429 11.5%
 NIM expected to pick-up on lower funding costs
Operating Profit 330 369 -10.5% 280 18.0%
 Asset quality to be maintained

Provision 59 106 -43.7% 61 -2.1%  Key monitorables: Segmental growth; Demand outlook

Net Profit 200 209 -4.2% 166 20.9%

EPS 18.0 18.8 -4.2% 14.9 20.9%

Year end March

Q1FY22 Q4FY21 QoQ(%) Q1FY21 YoY(%) Result expectations
(INR cr.)
 Revenue is expected to be lower QoQ led by shutdowns at OEM
Automotive Axles
plants and lower production by OEMs.
Revenues 268 426 -37.0% 39 590.0%
 Gross margins will be impacted in line with commodity cost
EBITDA 26 45 -41.3% (14) -290.9%
inflation.

EBITDA margin (%) 9.8 10.5 (35.4)  We expect bottomline to be lower QoQ in line with a weaker

PAT 13 27 -51.7% (23) -155.6% operating performance.

 Performance will be in line with company's guidance on CV

EPS (Rs) 8.5 17.6 -51.7% (15.2) -155.7%
industry growth at 20-25% in FY22E.

Note: Showcasing the Earnings preview (expectations) for the companies under our coverage whose results are expected by today or by
tomorrow (If weekend or Holiday)

For private circulation only 5

For private circulation only 6
 Investment Picks
Target %
Company Recommendation CMP
Price Upside
Aarti Drugs Ltd BUY 665 760 14.2

Aditya Birla Fashion & Retail Ltd Buy 213 250 17.6

Affle India Ltd Buy 4,198 5,835 39.0

Amber Enterprises India Ltd Buy 2,979 3,290 10.5

Ambuja Cements Ltd Buy 404 450 11.4

Apcotex Industries Ltd BUY 350 410 17.2

Ashok Leyland Ltd Buy 134 150 11.8

Asian Paints Ltd BUY 2,969 3,510 18.2

Aurobindo Pharma Ltd Buy 901 1,100 22.1

Bajaj Auto Ltd BUY 3,853 4,250 10.3

Bandhan Bank Ltd BUY 304 350 15.2

Bharti Airtel Ltd BUY 608 700 15.2

Birla Corporation Ltd BUY 1,361 1,570 15.4

Camlin Fine Sciences Ltd Buy 180 215 19.4
CCL Products (India) Ltd BUY 422 495 17.3

City Union Bank Ltd Buy 153 210 36.9

Colgate-Palmolive (India) Ltd BUY 1,641 1,875 14.3

CreditAccess Grameen Ltd Buy 650 810 24.6

Dalmia Bharat Ltd BUY 1,972 2,370 20.2

Dr Reddys Laboratories Ltd BUY 4,785 5,600 17.0

Equitas Small Finance Bank Ltd BUY 61 76 24.2
Escorts Ltd BUY 1,200 1,350 12.5

Federal Bank Ltd BUY 87 100 14.9

HDFC Bank Ltd Buy 1,494 1,720 15.2

Hero MotoCorp Ltd Buy 2,833 3,300 16.5
Hindustan Unilever Ltd Buy 2,374 2,670 12.4

ICICI Bank Ltd Buy 697 810 16.1

ITC Ltd Buy 214 270 26.0

JK Lakshmi Cement Ltd Buy 673 770 14.4

Lumax Industries Ltd Buy 1,492 1,741 16.7

Lupin Ltd Buy 1,151 1,400 21.6

MAS Financial Services Ltd Buy 799 1,010 26.4

Minda Corporation Ltd Buy 134 148 10.7

Mold-Tek Packaging Ltd Buy 513 585 14.0

Nippon Life India Asset Management Ltd Buy 397 455 14.6

NOCIL Ltd Buy 286 315 10.1

Orient Cement Ltd Buy 169 205 21.1

Oriental Carbon & Chemicals Ltd Buy 1,101 1,232 11.9

Rites Ltd Buy 268 315 17.6

SBI Life Insurance Company Ltd Buy 1,151 1,290 12.1

For private circulation only 7

 Investment Picks
Target %
Company Recommendation CMP
Price Upside
SIS Ltd Buy 472 530 12.2
Star Cement Ltd Buy 112 125 11.9
State Bank of India Buy 436 555 27.4
Symphony Ltd Buy 945 1,430 51.3
Ujjivan Small Finance Bank Ltd Buy 27 37 35.0
Varun Beverages Ltd Buy 773 900 16.4
Wipro Ltd Buy 598 665 11.2

For private circulation only 8

 Index CMP % up/dn S2 S1 P R1 R2
Nifty 16,238.20 -0.35% 16155 16195 16265 16310 16380

Sensex 54277.72 -0.39% 53950 54115 54375 54535 54795

Bank Nifty 35809.25 -0.07% 35485 35645 35865 36025 36245

Nifty started the week with an upward gap and buying momentum throughout the week led it close at 16238 with a gain of 475 points on a weekly
basis.

On the weekly chart the index has formed a long bullish candle forming higher High-low compared to previous week and has decisively
brokenout its past two months multiple resistance zone of 15900 levels on a closing basis. The index is moving in a Higher Top and Higher Bottom
formation on the weekly chart indicating sustained uptrend. The chart pattern suggests that if Nifty crosses and sustains above 16350 level it
would witness buying which would lead the index towards 16500-16600 levels. However if index breaks below 16180 level it would witness profit
booking which would take the index towards 16100-15900. Nifty is trading above 20 and 50 day SMA which are important short term moving
averages, indicating positive bias in the short term. Nifty continues to remain in an uptrend in the medium term, so buying on dips continues to be
our preferred strategy. For the week, we expect Nifty to trade in the range of 16500-16000 with a positive bias.

The weekly strength indicator RSI and momentum oscillator Stochastic have both turned positive and are above their respective reference lines
indicating positive bias.

The trend deciding level for the day is 16265. If NIFTY trades above this level then we may witness a further rally up to 16310-16380-16420
levels. However, if NIFTY trades below 16265 levels then we may see some profit booking initiating in the market, which may correct up to 16195-
16155-16080 levels.

STOCK IDEAS FOR THE DAY

Company Name Buy / Sell Range Stop Loss Target

BAJAJAUTO Buy above 3873 3835 3910-3950
HDFCAMC Buy above 2935 2900 2970-2990
Note- Stocks Ideas are based on previous day’s close and are activated only if they trade in buy/sell range.

For private circulation only 9

 Bank Nifty started the week with an upward gap and buying momentum for most part of the week led it to close in positive
territory. Bank Nifty closed at 35809 with a gain of 1225 points on a weekly basis.

On the weekly chart the index has formed a sizable bullish candle forming higher High-low compared to previous week
indicating positive bias. Since the past three months, index is consolidating within 36000-34000 levels indicating short term
consolidation. Hence any either side breakout will indicate further direction. The chart pattern suggests that if Bank Nifty
crosses and sustains above 36000 level it would witness buying which would lead the index towards 36500-36800 levels.
However if the index breaks below 35600 level it would witness selling which would take the index towards 35200-34500. Bank
Nifty is trading above 20 , 50 and 100 day SMA's which is an important short term moving average, indicating positive bias in
the short term. Bank Nifty continues to remain in an uptrend in the medium term, so buying on dips continues to be our
preferred strategy. For the week, we expect Bank Nifty to trade in the range of 36800-35300 with a positive bias.

The weekly strength indicator RSI is in positive terrain and sustaining above its respective reference line indicating positive
bias.

The trend deciding level for the day is 35865 If BANKNIFTY trades above this level then we may witness a further rally up to
36025-36245-36405 levels. However, if BANKNIFTY trades below 35865 levels then we may see some profit booking
initiating in the market, it may correct up to 35645-35485-35265 levels.

For private circulation only 10

 Trading Insights
Insight from trading volumes
Total Volume Monthly Avg
Script CMP % Change
(x1000) Volume(x1000)

GAIL 149 68,303 13,440 408.2%

CIPLA 911 10,155 2,854 255.8%

INDUSINDBK 1,030 8,032 3,693 117.5%

HCLTECH 1,050 11,680 5,686 105.4%

M&M 758 4,646 2,465 88.5%

BHARTIARTL 608 29,869 16,630 79.6%

ADANIPORTS 711 18,240 11,026 65.4%

Insight from delivery

Total Delivery Monthly Avg Delivery
Script CMP %Change
Volume(x1000) Volume(x1000)
GAIL 149 18,099 5,408 234.7%

HCLTECH 1,050 9,496 3,151 201.4%

CIPLA 911 3,054 1,114 174.1%

INDUSINDBK 1,030 2,776 1,188 133.7%

SBIN 436 14,926 8,193 82.2%

HINDUNILVR 2,372 1,106 777 42.2%

KOTAKBANK 1,777 2,646 1,868 41.6%

*CMP-Closing Market Price

For private circulation only 11

 Daily Support/ Resistance of Nifty Companies
Company CMP Pivot Point R1 R2 S1 S2
NIFTY 50 16,238 16,266 16,309 16,380 16,195 16,153
ADANIPORTS 711 707 723 736 695 679
ASIANPAINT 2,966 2,976 2,990 3,015 2,952 2,937
AXISBANK 741 746 753 764 734 727
BAJAJ-AUTO 3,848 3,839 3,880 3,912 3,806 3,765
BAJAJFINSV 14,006 14,031 14,087 14,167 13,950 13,894
BAJFINANCE 6,224 6,245 6,278 6,332 6,191 6,157
BHARTIARTL 608 604 621 633 592 575
BPCL 456 457 462 468 451 446
BRITANNIA 3,604 3,608 3,626 3,649 3,585 3,567
CIPLA 911 921 933 955 899 887
COALINDIA 146 147 148 150 145 143
DIVISLAB 4,916 4,920 4,955 4,995 4,880 4,845
DRREDDY 4,786 4,783 4,810 4,833 4,760 4,733
EICHERMOT 2,747 2,746 2,760 2,774 2,733 2,719
GAIL 149 149 153 158 145 141
GRASIM 1,531 1,535 1,550 1,568 1,516 1,502
HCLTECH 1,050 1,054 1,066 1,081 1,039 1,027
HDFC 2,628 2,641 2,660 2,692 2,609 2,589
HDFCBANK 1,493 1,489 1,504 1,515 1,478 1,463
HDFCLIFE 673 673 676 679 670 666
HEROMOTOCO 2,834 2,832 2,853 2,872 2,813 2,793
HINDALCO 442 446 452 462 436 429
HINDUNILVR 2,372 2,370 2,382 2,393 2,359 2,346
ICICIBANK 698 700 704 710 694 690
INDUSINDBK 1,030 1,020 1,043 1,056 1,007 985
INFY 1,650 1,652 1,659 1,668 1,643 1,635
IOC 106 105 107 108 104 103
ITC 214 214 216 218 213 211
JSWSTEEL 757 763 771 784 750 742
KOTAKBANK 1,777 1,773 1,789 1,801 1,761 1,744
LT 1,610 1,619 1,631 1,651 1,598 1,586
M&M 758 762 769 779 751 745
MARUTI 7,101 7,100 7,170 7,238 7,031 6,961
NESTLEIND 18,021 18,094 18,207 18,394 17,907 17,794
NTPC 118 118 119 120 117 115
ONGC 117 117 118 119 116 115
POWERGRID 175 175 176 177 174 174
RELIANCE 2,089 2,105 2,131 2,172 2,063 2,037
SBILIFE 1,151 1,144 1,160 1,170 1,134 1,118
SBIN 436 439 444 452 431 426
SHREECEM 28,387 28,607 28,874 29,362 28,119 27,852
SUNPHARMA 785 788 794 803 779 773
TATAMOTORS 300 300 303 306 297 295
TATASTEEL 1,429 1,437 1,449 1,468 1,417 1,406
TCS 3,310 3,300 3,334 3,359 3,275 3,241
TECHM 1,265 1,260 1,277 1,290 1,248 1,230
TITAN 1,788 1,788 1,798 1,808 1,778 1,768
ULTRACEMCO 7,528 7,586 7,663 7,797 7,451 7,375
UPL 777 782 787 798 771 766
WIPRO 598 600 604 611 594 590
Source: Axis Direct.

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09TH AUG 2021

Nifty Futures View Volatility Bank Nifty Future View

Nifty Active Futures 16252 India VIX Index 12.60 BankNifty Active Futures 35941.00
Nifty Active Futures OI 12316750 Nifty ATM Call IV 8.21 BankNifty Active Futures OI 19,53,375
Change in OI 36700 Nifty ATM Put IV 12.69 Change in OI 1243840
Premium / Discount 7.00 PCR Index Options 1.40 Premium / Discount 12.00
Inference Short Build up PCR F&O Total 1.01 Inference Short Build up
Nifty Options OI Distribution
HIGHLIGHTS:
Nifty futures closed at 16252 on a negative note with 0.30% increase in the
open interest indicating Short Build Up.
Nifty Futures closed at a premium of 7 points compared to the previous day
premium of 4 points.
BankNifty closed at 35941 on negative note with 6.92% increase in open
interest indicating Short Build Up.
BankNifty Futures closed at a premium of 12 points compared to the
previous day discount of 140 points.

FII's were Sellers in Index Futures to the tune of 589 crores and were
Buyers in Index Options to the tune of 839 crores, Sellers in the Stock
Futures to the tune of 828 crores. Net Sellers in the derivative segment to
the tune of 2390 crores.

India VIX index is at 12.60 v/s 12.81.Nifty ATM call option IV is currently
8.21 whereas Nifty ATM put option IV is quoting at 12.69.
Nifty Options - Change in OI
Index options PCR is at 1.40 v/s 1.43 & F&O Total PCR is at 1.01.
Among stock futures Long Build up are ASTRAL, AARTIIND,
TATACHEM & GAIL may remain strong in coming session.
Stocks which witnessed Short Build up are GUJGAS, STAR,
AUBANK & CIPLA may remain weak in coming session.

Nifty Put options OI distribution shows that 16000 has highest OI

concentration followed by 15500 & 15800 which may act as support
for current expiry.
Nifty Call strike 16500 followed by 15800 witnessed significant OI
concentration and may act as resistance for current expiry.

SECURITIES IN BANPERIOD:CANBK, IBULHSGFIN,

NATIOALUM, RBLBANK, SAIL & SUNTV

Stock Futures - Long Build Stock Futures - Short Build Up

Symbol Fut Price % Chg Open Interest % Chg Open

Symbol Fut Price % Chg % Chg
Interest

ASTRAL 2255.85 2.48% 284350.00 28.77% GUJGASLTD 735.05 -5.07% 2552500.00 57.56%

AARTIIND 959.85 3.62% 3576800.00 17.87% STAR 735.35 -6.28% 1352025.00 32.65%

TATACHEM 827.20 7.07% 11060000.00 17.12% AUBANK 1243.50 -0.13% 2736500.00 19.68%

GAIL 149.35 4.33% 37661400.00 9.37% CIPLA 910.20 -3.31% 16043950.00 15.68%

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09TH AUG 2021

Nifty 50 Open Interest (OI) Dashboard

HIGHEST OPEN INTEREST IN NIFTY 50 – STOCKS CE & PE HIGHEST OPEN INTEREST IN NIFTY 50 – STOCKS CE & PE

NIFTY 50 CE STRIKE CE OI CMP PE Strike PE OI NIFTY 50 CE STRIKE CE OI CMP PE Strike PE OI

ADANIPORTS 720 2438750 710 600 1128750 INFY 1660 1723200 1652.1 1600 1147800

ASIANPAINT 3100 539700 2971 3000 260700 IOC 110 10439000 106 100 3919500

AXISBANK 760 2780400 743.1 720 1096800 ITC 220 38054400 214.6 200 9075200

BAJAJ-AUTO 4000 264000 3850.05 3800 131500 JSWSTEEL 800 2609550 756 700 1329750

BAJAJFINSV 15000 99000 14003.7 13000 61425 KOTAKBANK 1800 938400 1779.3 1700 713600

BAJFINANCE 6500 290875 6225 6000 171875 LT 1700 942425 1609 1600 298425

BHARTIARTL 600 6615474 607.55 580 2833881 M&M 780 2163700 756.7 700 485800

BPCL 460 2541600 456.3 450 2406600 MARUTI 7200 286000 7108 7000 128800

BRITANNIA 3600 168800 3606 3500 109000 NESTLEIND 18500 16700 18057.9 17500 6350

CIPLA 950 2737150 912.05 900 1153100 NTPC 120 14552100 117.85 110 2399700

COALINDIA 150 11457600 146.55 140 3040800 ONGC 120 12042800 116.65 110 2664200

DIVISLAB 5000 188600 4924.3 4700 61800 POWERGRID 180 5125013 175.3 165 1631898

DRREDDY 5000 687500 4769 4600 193000 RELIANCE 2200 3408250 2090 2000 1562750

EICHERMOT 2800 313950 2742 2500 81550 SBILIFE 1150 667500 1151.25 1100 340500

TATACONSUM 800 1115100 780 700 386100 SBIN 450 15673500 437.2 440 5505000

GRASIM 1600 376200 1530.55 1500 142025 SHREECEM 30000 6025 28420 27000 2625

HCLTECH 1100 1331400 1049.25 1000 518700 SUNPHARMA 800 4737600 785.2 700 1775200

HDFC 2700 1279200 2630.6 2500 626400 TATAMOTORS 300 10114650 300.2 300 6594900

HDFCBANK 1500 3608000 1493.7 1400 1290300 TATASTEEL 1500 3729800 1428 1400 1590350

HDFCLIFE 700 2036100 673.5 700 721600 TCS 3300 687300 3311 3200 406800

HEROMOTOCO 2900 424800 2836.2 2800 391500 TECHM 1280 680400 1268 1200 669600

HINDALCO 450 5218050 441.15 400 1638300 TITAN 1840 541875 1789 1700 460500

HINDUNILVR 2400 776700 2372.65 2300 326100 ULTRACEMCO 8000 78500 7550 7000 34100

ICICIBANK 720 4556750 699.9 680 1978625 UPL 800 1778400 776.65 750 713700

INDUSINDBK 1100 1260900 1027 1000 1008000 WIPRO 620 1817600 599.55 600 724800

Participant wise Change in Open Interest for Today.

INDEX FUTURE STOCK FUTURE INDEX CALLS INDEX PUTS
LONG SHORT LONG SHORT LONG SHORT LONG SHORT
FII -549 6306 -5595 13495 8566 25394 10377 7069
DII -16 900 110 563 0 0 14922 0
PRO 1593 -8 17232 1095 139756 145294 146271 89276
CLIENT 5054 -1116 9655 6249 408072 385706 212945 288171
TOTAL 6082 6082 21402 21402 556394 556394 384515 384516

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9 August 2021

NIFTY HIGHLIGHTS
 Nifty futures closed at 16251.7 on a positive note with 30.75% increase in open interest and with price gains of 3.01% indicating Long Build Up.

 Nifty annualized volatility index India Vix has marginally decreased to 12.61% from 12.80 donw by -1.52%.
 Bank Nifty futures closed at 35941.05 on a positive note with -6.85% decrease in open interest and with a price gains of 3.66% indicating Short
Covering.
 The open interest position of FII's in Index Futures is at Rs 14,941 increased by 2,784 Cr and in Stock Futures it is at Rs 1, 10,047 increased by
3,516 Cr.

Nifty PCR OI
 PCR OI during the week has made a high
Call OI Put OI PCR OI of 1.65 & low of 1.09 and closed on
15.00 1.75 weekly basis at 1.40 levels.
1.65
13.00 1.55  PCR OI currently is at 1.40 levels which is

PUT CALL RATIO

11.00 1.45 above the median line but in comfortable
1.35
OI in cr.

zone for positive trend.

9.00 1.25
1.15
7.00 1.05
5.00 0.95
0.85
3.00 0.75
26-Jul

27-Jul

29-Jul

30-Jul
28-Jul

2-Aug

4-Aug

5-Aug

6-Aug
3-Aug

Open Interest Analysis

Put OI Call OI  Options Built up Shows that for now Nifty has
3,500 strong support at 15,800 followed by 16,000
3,000 & 16,200 and resistance at 16,500 levels
2,500 followed by 16,800.
2,000  16,500 & 16,300 strike CALL and 15,800 put
1,500 followed by 16,000 PUT has high open
interest concentration which suggests that
1,000 Nifty is likely to trade between these levels of
Thousands

500 16,500 on upside & 16,000 on downside for

0 the coming week.
15600

15700

15800

15900

16000

16100

16200

16300

16400

16500

16600

16700

16800

Change in Open Interest

2,500
Call OI Put OI  This week major addition in monthly expiry
was seen on the PUT front with 16,000 and
2,000 15,800 strike adding 20.48Lac and 13.48Lac
1,500 shares in OI respectively; while there was no
significant unwinding witnessed in any strike.
1,000
 This week major addition in monthly expiry
500
was seen on the CALL front with 16,500 and
0 16,600 strike adding 4.43Lac and 5.66Lac
shares in OI respectively; while unwinding
-500
Thousands

was witnessed in 16,000 & 15,800 strike to

-1,000 the tune of 4.97Lac & 6.48Lac respectively.
15600

15700

15800

15900

16100

16200

16300

16500

16600

16700
16000

16400

16800

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Volatility Analysis
Implied volatility(IV) IV Call Iv Put Historic volatility  IV differential between CALL and PUT has
29.00 INCREASED from last week level indicating that
26.00 Nifty will be volatile in both the directions and
23.00 sentiments might remain cautious at higher
20.00 levels.
17.00
14.00  Call IV’s is currently at 11.07% versus 10.73%
11.00 compared to last week, while Put IV’s is at 13.15%
8.00 versus 12.54% compared to last week.

2-Aug-21

4-Aug-21

6-Aug-21
3-Aug-21

5-Aug-21
26-Jul-21

27-Jul-21

28-Jul-21

29-Jul-21

30-Jul-21

 Implied Volatility of option for the current series is at

12.12% in contrast to 11.62% of last week, while in
the coming week trajectory is likely to be flat-to-
marginally increasing.

Weekly Participant Wise Open Interest

FUT IDX FUT STK FUT STK
FUT IDX Long
Participant Net Chg Short Net Chg Participant Long Net Chg Short Net Chg
(contracts)
(contracts) (contracts) (contracts)
Client 2,11,412 46,677 1,91,472 34,970 Client 11,70,384 7,726 2,36,456 52,751
DII 3,063 -97 65,323 10,324 DII 13,711 -14,174
33,160 12,31,422
FII 1,19,224 26,344 60,589 3,073 FII 7,15,836 13,116 6,38,241 10,824
Pro 23,385 -8,530 39,700 16,027 Pro 2,65,623 28,132 78,884 13,284
FII Index Futures

02-Aug 03-Aug 04-Aug 05-Aug 06-Aug  FII activity in the index futures had been on the BUY
side during the last week.
Thousands

3,000 182
180
2,500
178
 FII have been Net BUYERS in Index Future to the
2,000 176 tune of 1,802 crs during the last week.
1,500 174
172  There was an INCREASE in Open Interest during the
1,000 last week by 29,417 contracts.
170
500 168
In Crores

0 166
164
-500 162
-1,000 160
NET AMT OI_QTY

FII Stock Futures

02-Aug 03-Aug 04-Aug 05-Aug 06-Aug  FII activity in Stock futures had been on BUY side
1,000 1,360 during the last week.
Thousands

800 1,355
600 1,350  Last week FII have been Net BUYERS in Stock
400 1,345 future segment to the tune 824 crs.
200 1,340
0
1,335
1,330
 There was an INCREASE in Open Interest during the
-200 week by 23,940 contracts.
In Crores

1,325
-400 1,320
-600 1,315
-800 1,310
-1,000 1,305
NET AMT OI_QTY

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9 August 2021

Weekly Price Change Weekly OI Change Weekly Roll Over Change

Wkly Price change Wkly OI change Wkly Roll Over change

Infrastructure
5.27% Infrastructure 7.10%
1.09% Infrastructure
-0.89% Telecom
4.53% Telecom
3.83% Telecom
7.99% Capital_Goods
4.36% Capital_Goods
0.77% Capital_Goods
3.33% Banking
3.86% Banking
1.13% Banking
18.76% Power
3.67% Power Power
2.80%
25.11% Index
3.63% Index Index
2.52% Textile 2.04%

3.04% Textile Chemicals 0.98% Textile

6.40%

2.32% Chemicals 1.89% Pharma 1.10% Chemicals

1.76% Pharma 0.55% Oil_Gas 0.53% Pharma

1.21% 6.66% FMCG

Oil_Gas 0.93% Oil_Gas
3.38% Technology
1.21% FMCG 0.77% FMCG
7.57% Metals
0.83% Technology 0.69% Technology
7.36% Finance
0.23% Metals 1.74% Metals
5.99% Automobile
0.17% Finance 0.85% Finance
0.79% Cement
-0.19% 1.11% Automobile
Automobile 3.82% Realty

-0.19% 0.29% Cement

Cement 4.29% Media

-0.52% 3.07% Realty

Realty

-4.94% 1.45% Media

Media

Weekly Open Interest Gainer Weekly Open Interest Loser

Script ID Price % Chg OI Futures % Chg Script ID Price % Chg OI Futures % Chg

STAR 735.35 -4.65% 1352025 628.36% BRITANNIA 3604.85 5.00% 1515800 -21.42%

ASTRAL 2255.85 7.86% 284350 170.68% KOTAKBANK 1776.95 7.29% 14393600 -20.04%
COFORGE 4772.7 -5.61% 1309200 149.37% TECHM 1265.3 4.42% 13062600 -18.80%
SBILIFE 1150.65 4.24% 9072000 105.71% HAVELLS 1234.2 4.88% 3544500 -15.19%
GUJGASLTD 735.05 2.37% 2552500 59.41%
LUPIN 1153.45 3.67% 5930450 -14.20%

Weekly Price Gainer Weekly Price Loser

Script ID Price % Chg OI Futures % Chg Script ID Price % Chg OI Futures % Chg
PEL 2669.95 14.96% 2787675 -11.07% IDEA 7.1 -14.97% 442680000 4.56%

CHOLAFIN 529.95 10.97% 11062500 -13.18% RBLBANK 178.8 -7.69% 44314900 46.37%
LALPATHLAB 3933.95 10.50% 572000 11.61% COROMANDEL 861.75 -6.45% 1748750 17.32%
TATAPOWER 135.7 8.21% 150754500 22.09% ABFRL 212.55 -6.16% 11333400 0.05%
ADANIENT 1542.95 8.11% 14616000 2.17% SUNTV 542.6 -5.96% 13926000 -8.52%

 During the week Stocks which witnessed significant OI addition along with price gains are ASTRAL, SBILIFE,
GUJGASLTD and CUMMINSIND.
 During the week Stocks which witnessed significant OI addition along with decrease in price are STAR, COFORGE,
BOSCHLTD and GODREJPROP.

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9 August 2021

Stock wise Open Interest Distribution in Banking Sector

RBLBANKKOTAKBANK AXISBANK INDUSINDBK

1% 3% HDFCBANK
BANDHANBNK 4% 1%
2% CANBK
2%
IDFCFIRSTB 5%
CUB
17% 1%
ICICIBANK
6%

SBIN
9%
PNB
27%

BANKBARODA
15% FEDERALBNK
7%

Bank Nifty Strike wise open interest distribution

Open Interest
Call OI Put OI
600

500

400

300

200

100
Thousands

0
35000

35100

35400

35500

35800

36100

36200

36500

36600

36800
34900

35200

35300

35600

35700

35900

36000

36300

36400

36700

Bank Nifty has a strong support at 35,000; as 35,000 Put strike is having high OI concentration followed
by 34,500 & 34,000 while on the Call front 37,000CE strike has high OI concentration indicating strong
resistance level followed by 36,000 & 36,500.

Weekly Open Interest Gainer Weekly Open Interest Loser

Script ID Price % Chg OI Futures % Chg Script ID Price % Chg OI Futures % Chg

RBLBANK 178.80 -7.69% 44314900 46.37% KOTAKBANK 1,776.95 7.29% 14393600 -20.04%

BANDHANBNK 304.10 3.98% 27181800 18.20% AXISBANK 744.05 4.50% 30322800 -13.81%
IDFCFIRSTB 49.25 -5.47% 209057000 16.90% HDFCBANK 1,493.90 4.60% 27013250 -11.20%

Weekly Price Gainer Weekly Price Loser

Script ID Price % Chg OI Futures % Chg Script ID Price % Chg OI Futures % Chg
KOTAKBANK 1,776.95 7.29% 14393600 -20.04% RBLBANK 178.80 -7.69% 44314900 46.37%

INDUSINDBK 1,025.15 4.84% 14332500 -9.64% IDFCFIRSTB 49.25 -5.47% 209057000 16.90%
HDFCBANK 1,493.90 4.60% 27013250 -11.20% FEDERALBNK 87.20 -0.51% 90100000 8.91%

For private circulation only 4

 Disclosures:

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

1. Axis Securities Ltd. (ASL) is a SEBI Registered Research Analyst having registration no. INH000000297. ASL, the Research Entity
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Research Team
Sr. No Name
1 Rajesh Palviya
2 Vaishnavi Jagtap
3 Rahil Vora
4 Hemang Gor
5 Hiren Trivedi
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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