*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.
*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)
🔹 *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.
*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.
*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.
*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/
https://thebulletin.org/2021/05/the-origin-of-covid-did-people-or-nature-open-pandoras-box-at-wuhan/
Bulletin of the Atomic Scientists
The origin of COVID: Did people or nature open Pandora’s box at Wuhan?
If the case that SARS2 originated in a lab is so substantial, why isn’t this more widely known? As is now obvious, there are many people who have reason not to talk about it.
👉🏻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
🎗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
*Good Morning & Welcome to Tuesday’s trading action at Dalal Street dated 25th of May 2021.*
The good news this morning for bulls’ camp is that the market pendulum has again swung in the bulls' direction, despite a quiet day on the news, earnings and data fronts.
In early action, SGX Nifty is seen trading well above the dotted lines indicating an upbeat start for our stock markets. That brings us to our call of the day which suggests smooth sailing shall continue as clear bullish skies seen across global stock markets.
The big question: What happens if volatility hits Dalal Street?
Well, even if Nifty & Sensex hit a wave of volatility —— it should subside quickly enough. The gyan mantra ‘Stay Bullish’ with all bullish eyes on Nifty 15432 mark.
*7 AM GLOBAL UPDATE:*
• SGX Nifty (+59, 15257)
• DOW (+186, 34394)
• NASDAQ (+190, 13661)
• BRAZIL BOVESPA (+1439, 124032)
• Nikkei (+108, 28473)
• HANG SENG (+49, 28462)
Instrument CMP Bias
OIL $66.08 a barrel Positive
GOLD $1877 Positive
Silver 27.72 Positive
USD/INR 72.94 Negative
*INSTITUTIONS:*
• FII: +585.36 Cr
• DII: -707.69 Cr
*THEME OF THE DAY:*
• Global: Positive
• FII: Positive (+585.36 Cr)
• DII: Negative (-707.69 Cr)
• F&O: 15001-15501 zone
• Trend: Up
• Sentiment: Bullish
• Technicals: Higher consolidation break-out.
• Theme: Nifty all-time-high at 15432.
*All ABOUT NIFTY & BANK NIFTY’ CRUCIAL LEVELS*
NIFTY (CMP 15198):
• SUPPORT: 15057/14926
• RESISTANCE: 15432/15750
• RANGE: 15157-15357
• BIAS: Positive.
BANK NIFTY (CMP 34944):
• SUPPORT: 34153/33057
• RESISTANCE: 35697/37709
• RANGE: 34351-35697
• BIAS: Positive.
*THEME OF THE DAY:*
Overnight at Wall Street, the Dow extended its win streak to three with a more modest 0.5% gain to 34,393, also buoyed by tech; Cisco Systems Microsoft and Intel were among the industrial average's top performers.
Our *call of the day* which suggests smooth sailing shall continue as clear bullish skies seen across global stock markets.
*The positive catalysts:*
• A sharp drop in Covid-19 cases in India.
• Vaccine rollouts are also expected to get faster.
• Hopes of the lockdown being lifted sooner.
• Good corporate results.
• The remarkable strength of the U.S. economic recovery.
• Any pick-up in inflation to be temporary.
• A weekend crackdown on commodity speculation in China has pared gains for copper and iron ore prices.
• Strong global cues.
• Short covering backed with fear of missing out (FOMO) ruling traders’ mindset
Our *chart of the day* is bullish on stocks like TATA POWER, DLF, PNB, COLPAL, SBI and ITC with an interweek/intermonth perspective.
*SHOW ME THE MONEY: TATA POWER (CMP 107.65):* Buy TATA POWER May Futures for 2 days at CMP 107.65 for an objective of 113/117.50. Stop 103. Alert: Breakout Play.
*Q4 earnings to trickle in today:* ALKEM LABORATORIES, ASTRAZENECA PHARMA, BAJAJ ELECTRICALS, BAYER CROP SCIENCE, EMAMI, GATI.
Wednesday, 26th May 2021:BERGEPAINTS, VGUARD, PFIZER, KTKBANK, CUMMINSIND, FDC, BPCL,
*Now, here are other key things to know before today’s market opens:*
• Technically speaking, another round of great fireworks display quite likely. All bullish eyes on Nifty’s all-time-highs at 15432 mark. *Nifty’s make-or-break intraday supports are placed at 14927 mark.* As long as Nifty’s 14927 support holds, the benchmark will aim its all-time-high at 15432 mark and then all bullish bets at magical 16000 mark. The price action for Nifty for this week’s trade is suggesting that we are likely to see a 14,901- 15551 range in near term with buy on dips as the preferred strategy.
• The options data for May Series suggests Nifty is likely to be in a broader trading range of 14900-15500 as maximum Call OI is at 15500 followed by 15300 strike price. Maximum Put open interest stands at 15000 levels followed by 14800 levels. Call writing was seen at 15300 and then at 15400 strike price, while there was meaningful Put writing at 15200 and then at 14700 strike prices.
The good news this morning for bulls’ camp is that the market pendulum has again swung in the bulls' direction, despite a quiet day on the news, earnings and data fronts.
In early action, SGX Nifty is seen trading well above the dotted lines indicating an upbeat start for our stock markets. That brings us to our call of the day which suggests smooth sailing shall continue as clear bullish skies seen across global stock markets.
The big question: What happens if volatility hits Dalal Street?
Well, even if Nifty & Sensex hit a wave of volatility —— it should subside quickly enough. The gyan mantra ‘Stay Bullish’ with all bullish eyes on Nifty 15432 mark.
*7 AM GLOBAL UPDATE:*
• SGX Nifty (+59, 15257)
• DOW (+186, 34394)
• NASDAQ (+190, 13661)
• BRAZIL BOVESPA (+1439, 124032)
• Nikkei (+108, 28473)
• HANG SENG (+49, 28462)
Instrument CMP Bias
OIL $66.08 a barrel Positive
GOLD $1877 Positive
Silver 27.72 Positive
USD/INR 72.94 Negative
*INSTITUTIONS:*
• FII: +585.36 Cr
• DII: -707.69 Cr
*THEME OF THE DAY:*
• Global: Positive
• FII: Positive (+585.36 Cr)
• DII: Negative (-707.69 Cr)
• F&O: 15001-15501 zone
• Trend: Up
• Sentiment: Bullish
• Technicals: Higher consolidation break-out.
• Theme: Nifty all-time-high at 15432.
*All ABOUT NIFTY & BANK NIFTY’ CRUCIAL LEVELS*
NIFTY (CMP 15198):
• SUPPORT: 15057/14926
• RESISTANCE: 15432/15750
• RANGE: 15157-15357
• BIAS: Positive.
BANK NIFTY (CMP 34944):
• SUPPORT: 34153/33057
• RESISTANCE: 35697/37709
• RANGE: 34351-35697
• BIAS: Positive.
*THEME OF THE DAY:*
Overnight at Wall Street, the Dow extended its win streak to three with a more modest 0.5% gain to 34,393, also buoyed by tech; Cisco Systems Microsoft and Intel were among the industrial average's top performers.
Our *call of the day* which suggests smooth sailing shall continue as clear bullish skies seen across global stock markets.
*The positive catalysts:*
• A sharp drop in Covid-19 cases in India.
• Vaccine rollouts are also expected to get faster.
• Hopes of the lockdown being lifted sooner.
• Good corporate results.
• The remarkable strength of the U.S. economic recovery.
• Any pick-up in inflation to be temporary.
• A weekend crackdown on commodity speculation in China has pared gains for copper and iron ore prices.
• Strong global cues.
• Short covering backed with fear of missing out (FOMO) ruling traders’ mindset
Our *chart of the day* is bullish on stocks like TATA POWER, DLF, PNB, COLPAL, SBI and ITC with an interweek/intermonth perspective.
*SHOW ME THE MONEY: TATA POWER (CMP 107.65):* Buy TATA POWER May Futures for 2 days at CMP 107.65 for an objective of 113/117.50. Stop 103. Alert: Breakout Play.
*Q4 earnings to trickle in today:* ALKEM LABORATORIES, ASTRAZENECA PHARMA, BAJAJ ELECTRICALS, BAYER CROP SCIENCE, EMAMI, GATI.
Wednesday, 26th May 2021:BERGEPAINTS, VGUARD, PFIZER, KTKBANK, CUMMINSIND, FDC, BPCL,
*Now, here are other key things to know before today’s market opens:*
• Technically speaking, another round of great fireworks display quite likely. All bullish eyes on Nifty’s all-time-highs at 15432 mark. *Nifty’s make-or-break intraday supports are placed at 14927 mark.* As long as Nifty’s 14927 support holds, the benchmark will aim its all-time-high at 15432 mark and then all bullish bets at magical 16000 mark. The price action for Nifty for this week’s trade is suggesting that we are likely to see a 14,901- 15551 range in near term with buy on dips as the preferred strategy.
• The options data for May Series suggests Nifty is likely to be in a broader trading range of 14900-15500 as maximum Call OI is at 15500 followed by 15300 strike price. Maximum Put open interest stands at 15000 levels followed by 14800 levels. Call writing was seen at 15300 and then at 15400 strike price, while there was meaningful Put writing at 15200 and then at 14700 strike prices.