*DERIVATIVE DAILY UPDATE:*
25 MAY 2021
• Flat close on first day of week down 0.02 % on 24 May 2021.

• Bank Nifty gave comparatively stronger closing up 0.68% .

• PSU Banks, Realty & Energy as leader, while Metal, Auto and Fmcg stocks closed negative.

• The best performer’s Concor 8.18%, IOC up 4.68% and PNB up 4.32%

• The worst performers of the session were Shreecem -2.80% and Jswsteel declined 2.53%

• NSE: Advances: 1199
Declines: 795
Unchanged: 85

• India Vix was up,0.26% to 19.13.







*TECHNICAL VIEW:*

• Flat open and close in Nifty, makes higher high & higher low.

• Now Nifty targets all time high 15525 for which it has to close positive today, as volumes still not as desired to break all time high.

• Nifty RSI stays above 60 for fifth consecutive day, indicating upside.

• Bank nifty breaks its Triple top resistance 34300 and closes strongly.

• Bank nifty now targets 37770.

• Bank Nifty RSI moves above resistance zone 60, breakout above 60 with volumes will be crucial.






*OPTIONS VIEW:*
.

• 15500 CE strongest with Highest OI .

• 15000 PE shows huge OI built will act as support for the week.

• Big addition of OI seen in 15300 CE & 15800 CE also in
15200 PE.



• PCR Daily: 1.15




*DAILY GAINERS:*
CONCOR
IOC
PNB
NATIONALUM
PAGEIND
ZEEL
PIDILITIND








*DAILY LOSERS:*

SHREECEM
TORNTPOWER
JSWSTEEL
RAMCOCEM
ICICIGI
TRENT
PEL



*MONTHLY GAINERS:*

BHEL
UPL
HINDPETRO
IOC
BANKBARODA
BALKRISIND
BEL
IBULHSGFIN
NMDC
GMRINFRA


*MONTHLY LOSERS:*


NAUKRI
AUBANK
JINDALSTEL
BANDHANBNK
TATACHEM
JSWSTEEL
SHREECEM
NAVINFLUOR
LALPATHLAB
LTI
TATACONSUM





• All stocks Monthly gainers expect to move up by expiry
• All stocks Monthly losers expect to move down by expiry












*FNO ACTIVITY:*
• FNO 89 Stocks traded Positive
70 Stocks traded Negative
• FNO Positive traded stocks up by 1.29% Average
Negative traded stocks down by -0.90% Average
• FNO 1stocks showed Positive OI built up.
158 stocks showed OI shredding.
• On an Average 53% OI added to FNO
22.3% OI shred.
• Average Volumes up by 70.22 % in FNO.


*STRONG CLOSE*
• IOC
• BPCL

*WEAK CLOSE*
• BRITANNIA
• TATACONS

*Sharekhan Viewpoint- 3R Recommendation*
*Shoppers Stop Limited*
*Result Update*
*Rating: BUY*
(CMP: 220, Short Term Target: 286, Upside: 30%)
*Strong Q4; shoppers to comeback soon*
*Company Description*
Shoppers Stop Ltd (SSL) is India’s leading premier retailer of fashion and beauty brands established in 1991. It has progressed from being a single brand shop to a Fashion & Lifestyle store for families. An experienced, professional management; supported by world-class systems and practices; and a talented pool of associates with a shared passion for making every shopper’s visit memorable has helped Shoppers Stop to grow from a single store in 1991 to the largest chain of department stores in India today
*Key Investment Arguments*
• Shoppers stop (SSL)’s business recovered to 95% in Q4FY2021 with revenues standing at Rs. 671.2 crore; OPM improved by 344 bps to 14.2% (better than 13.4% in Q3).
• Footfalls improved q-o-q (falling just 17% in Q4); average ticket size grew by 6%, omni-channel sales up rose by 188% and private brand volumes grew by 38% y-o-y, leading to a strong recovery.
• H1FY2022 will be affected by the second wave of COVID-19, though a fall in cases in key states/cities and the ongoing vaccination program provides visibility of a strong recovery from H2FY2022. Better operating leverage and cost savings (Rs. 200 crore) to drive margins.
• Stock has corrected by 19% from its recent and is trading at an attractive valuation of 5.5x. We maintain our Positive view on the stock with a 28-30% upside.

🇮🇳 *India Daybook*

🔹 *Stocks in News*

*Bal Pharma*: Launched favipiravir under brand name BALflu. (Positive)

*Balaji Amines:* Net profit Rs 84.5 crore versus Rs 30.8 crore, Revenues at Rs 414.0 crore versus Rs 260.0 crore. (Positive)

*JK Paper:* Net profit Rs 136 crore versus Rs 92.7 crore, Revenues at Rs 980.0 crore versus Rs 807.0 crore. (Positive)

*Lakshmi Machine:* Net profit at Rs 26.0 crore versus Rs 1.9 crore, Revenue at Rs 684.0 crore from Rs 386.0 crore, YoY. (Positive)

*Crompton Consumer:* Revenues Up 48% at Rs 1522 Cr EBITDA Up 61% at Rs 228 Cr (Positive)

*Cipla:* Roche India and Cipla announced the launch of Roche’s Antibody Cocktail (Casirivimab and Imdevimab) in India priced at Rs 59,750 per dose. (Positive)

*Bal Pharma*: Launched favipiravir under brand name BALflu. (Positive)

*Indian Bank:* Bank Board Bureau has recommended Shanti Lal Jain for the position of MD & CEO of the bank. (Positive)

*GMM Pfaudler:* The company has commenced manufacturing operations at its facility at Vatva near Ahmedabad on May 24, 2021 (Positive)

*Greenply Industries:* The company has incorporated a wholly-owned subsidiary Greenply Sandila Pvt Ltd for the manufacturing of plywood and its allied products. (Positive)

*BSE:* Market capitalization of equities of listed companies on BSE reached USD 3 trillion (Positive)

*Bannari Amman:* Net profit Rs 21.8 crore versus Rs 31.0 crore, Revenues at Rs 372.0 crore versus Rs 478.0 crore. (Neutral)

*Ramco Industries:* Net profit Rs 66.4 crore versus Rs 32.9 crore, Revenues at Rs 339.0 crore versus Rs 232.0 crore. (Neutral)

*Grasim Industries:* Net profit at Rs 480.2 crore versus Rs 353.8 crore and revenue increased 18.4 percent to Rs 4,394.2 crore from Rs 3,712.1 crore, YoY. (Neutral)

*Mahanagar Gas:* Net profit fell by 2 percent to Rs 212.8 crore from Rs 217.2 crore, while revenue rose 7.7 percent to Rs 717.6 crore from Rs 666.4 crore, QoQ. (Neutral)

*SBI Cards:* The company said it has framed a COVID-19 related stress resolution mechanism in accordance with the RBI’s recently announced relief measures (Neutral)

*Amara Raja:* Clarios will sell 1.71 crore shares of the company for $174 million. The floor price is fixed at Rs 746 per share. (Neutral)

*Punjab National Bank:* Ashutosh Choudhury, General has assumed the office of Group Chief Risk Officer (Neutral)

*Lakshmi Machine:* The company recommended a dividend of Rs 10 per equity share for the financial year ended March 31, 2021 (Neutral)

*JK Paper:* The company’s board of directors recommended a final dividend of Rs 4 per equity share (Neutral)

*Dalmia Bharat Sugar:* Net profit fell 16 percent to Rs 51.86 crore from Rs 61.95 crore, while revenue fell to Rs 501.03 crore from Rs 566.85 crore, YoY (Negative)

*Sharekhan Stock Idea- 3R Recommendation*
*Grasim Industries Limited*
*Result Update*
*Rating: BUY*
(CMP: 1371, Price Target: 1680)
*Viscose drives strong operational performance*
*Company Description*
Grasim is the flagship company of Aditya Birla Group. The company started as a textiles manufacturer in India in 1947. The cement business was started in 1985 with capacity of 0.5 MTPA. Aditya Birla Nuvo Limited, an Aditya Birla Group Company, was merged with Grasim w.e.f. July 1, 2017. Subsequently, the financial services business was demerged from the merged entity and was listed on the bourses as Aditya Birla Capital Limited (ABCL) on September 1, 2017. Currently, it is a leading global player in VSF, and is the largest chemicals (Chlor Alkalis), cement and diversified financial services (NBFC, Asset Management and Life Insurance) player in India.
*Key Investment Arguments*
• We retain a Buy on Grasim with an unchanged PT of Rs. 1,680 led by a strong growth outlook for standalone business and for Ultratech.
• Q4 performance was strong led by robust OPM in the viscose business led by higher realisation, higher demand and input cost benefits.
• Grasim has planned a Rs. 2,604 crore capex in FY2022 towards expansion in VSF, chlor-alkali and e-poxy. Management expect V-shape demand recovery as COVID-19 restrictions reverse.
• Company to finalize land acquisition for plant for paints venture. The company maintained a capex guidance of Rs. 5,000 crore for three years.

*Sharekhan Stock Idea- 3R Recommendation*
*Amber Enterprises Limited*
*Result Update*
*Rating: BUY*
(CMP: 2930, Price Target: 3716)
*Steady performance, bright times ahead*
*Company Description*
Amber has emerged as a market leader in Indian Room AC OEM/ODM industry. The company comprehensive product portfolio includes Room AC (Indoor & Outdoor units as well as window ACs), reliable critical components, which has long approval cycle. The company is one of the largest manufacturer & supplier of critical components like heat exchangers, PCBs, motors, Sheet metal, case liner etc of RAC & other consumer durables like Refrigerators and Washing Machines. Amber has emerged as a market leader in Indian RAC OEM/ODM industry with 70.7% market share and 24.4% market share in overall RAC market in FY2020, with 8 out of 10 RAC brands as clients
*Key Investment Arguments*
• We recommend a Buy on Amber Enterprises (Amber) with an unchanged PT of Rs. 3716, given its strong net earnings growth outlook ahead.
• Q4FY21 revenues improved 22% y-o-y led by demand recovery along with OPM expansion (in line with estimates) lead by cost curtailment leading to higher net profit.
• Company remains a key beneficiary of the PLI schemes for AC and components and benefit further from the import ban on ACs with refrigerants.
• Management remains optimistic about export prospects for both fully built-up units and components that can potentially emerge over the next 3-4 years.

*Sharekhan Stock Idea- 3R Recommendation*
*Spandana Sphoorty Financials Limited*
*Result Update*
*Rating: BUY*
(CMP: 554, Price Target: 650)
*Mixed Performance, challenges to outlook persist*
*Company Description*
SSFL is a leading, rural-focused NBFC-MFI with a geographically diversified presence in India. The company has a pan-India presence across 18 states and has been operating as an NBFC since 2004 and NBFC MFI since 2015. The company offers income-generation loans under the joint liability group model (JLG), predominantly to women from low-income households in rural areas. SSFL is the second largest microfinance company in India with AUM of Rs. 8,157 crore and an active customer base of 24.5 lakhs. The NBFC-MFI has successfully emerged stronger post earlier challenges such as the AP MFI crisis and demonetisation and today boasts of healthy margins and return ratios.
*Key Investment Arguments*
• Spandana Sphoorty Financial Limited’s (SSFL) Q4FY2021 results were mixed with operating performance coming above expectations with mixed asset-quality performance.
• Business traction was cautious with AUM growing by 5% q-o-q and 19% y-o-y, slower than normal run-rate and indicative of business challenges.
• Asset-quality wise, performance was mixed, with collection efficiency for Q4FY2021 touching 100%, but dwindling therefrom. GNPA at 3.1% has deteriorated as compared to proforma GNPA of 2.7%.
• Management commentary was cautious. We have fine-tuned our estimates and target multiple. We maintain Buy on the stock with a revised PT of Rs. 650.

If anyone is interested in knowing about origin of Covid, read this.. it's a long article but worth a read.

https://thebulletin.org/2021/05/the-origin-of-covid-did-people-or-nature-open-pandoras-box-at-wuhan/

👉🏻Action Construction Equipment - ACE is a proxy play on 4 business verticals
🎗Cranes (65% of sales)
🎗Farm Equipment (20%)
🎗Material Handling (7.5%)
🎗Construction Equip (7.5%)
👉🏻ACE is a one stop shop for Equipments and has the widest range of products in India' across Material Handling & Construction Equipment.
👉🏻Launch of new range of FORMA Tractors positions ACE favorably in the fast growing Farm Equipment space and our interactions with its dealers reinforces our conviction.
👉🏻Being the market leader in the Mobile Cranes & Backhoe Loaders, ACE is a clear beneficiary of the GOI thrust given to Highways and Infrastructure.
👉🏻GST having eliminated the inter- state differentials in Taxes, Easy Availability of Finance nowadays is a game changer for ACE as it is today a proxy play on the India Growth Story. We raise our target 🎯price in ACE to 235. BUY