Equity Research Report 18 December 2017 Ways2Capital

TECHNICAL TREND ( NIFTY - BANK NIFTY FUTURES )

NIFTY FIFTY : - Nifty futures and bank nifty future market closed at 10276/ 25214.according to

technical analysis if nifty futures and bank nifty future moves up-word in upcoming treading sessions

then 10430/ 25800 will be next resistance level, if it break this level then nifty futures and bank nifty

future can touch 10530 / 26200 level . it will be hard resistance. meanwhile in reveres there is support

on 10150/ 24800 for nifty futures and bank nifty future after breaking this support with volume there

is big support for nifty futures and bank nifty future on 10000/24500

Monday, 18 Dec 2017

TECHNICAL VIEW (NIFTY- BANK NIFTY FUTURES )

NIFTY

DAILY R2 R1 PP S1 S2

10674 10388 10246 10104 9819

WEEKLY R2 R1 PP S1 S2

10949 10459 10215 9968 9478

MONTHLY R2 R1 PP S1 S2

11510 10700 10295 9891 9081

BANK NIFTY

DAILY R2 R1 PP S1 S2

26034 25434 25134 24834 24234

WEEKLY R2 R1 PP S1 S2

26725 25718 25214 24710 23700

MONTHLY R2 R1 PP S1 S2

28595 25958 25575 24568 22555

MOVING AVERAGE 21 DAYS 50 DAYS 100 DAYS 200 DAYS

NIFTY 10285 10274 10178 9765

BANK NIFTY 25492 25165 24833 23673

PARABOLIC SAR DAILY WEEKLY MONTHLY

NIFTY 10450 9131 7674

BANK NIFTY 24910 21325 16225

PATTERN FORMATION ( NIFTY )

Details of Chart - Last week nifty opened at 10380 and close at 10317 made high of 10400 and

low of 10163, moves almost 237 point. according to technical analysis if nifty can sustain the level

of 10400 it can go again its life time high. if it can not sustain on this level and break the level of

10200 it can go upto 10000..

PATTERN FORMATION ( BANK NIFTY )

Detail of Chart - Last week bank nifty opened at 25450 and close at 25510 made high of 25590

and low of 24944 ,moves almost 600 point.according to technical analysis bank niftyshows its

consolidate movement in last week,bank nifty sustain the level of 2500 from this level now bank

nifty can go upside direction upto the level of 26200,if it can not sustain the level of 25000 it can

go downside direction upto the 24200.

NSE EQUITY DAILY LEVELS

COMPANY

NAME

R3 R2 R1 PP S1 S2 S3

ADANIPORTS EQ 446 422 413 399 389 375 352

AMBUJACEM EQ 287 276 270 265 259 253 242

ASIANPAINT EQ 1205 1163 1142 1121 1100 1080 1038

AUROPHARMA EQ 750 712 690 675 653 638 601

AXISBANK EQ 584 564 557 545 537 525 506

BAJAJ-AUTO EQ 3458 3325 3253 3192 3120 3059 2926

BAJFINANCE EQ 1923 1810 1767 1697 1655 1585 1472

BHARTIARTL EQ 576 549 533 522 506 495 468

BOSCHLTD EQ 21389 20581 20133 19773 19325 18964 18156

BPCL EQ 575 545 535 515 505 485 455

CIPLA EQ 667 627 601 587 561 547 508

COALINDIA EQ 289 278 275 268 264 257 247

DRREDDY EQ 2725 2516 2443 2307 2234 2098 1889

EICHERMOT EQ 31916 30544 30047 29173 28675 27801 26429

GAIL EQ 540 514 500 489 474 463 437

HCLTECH EQ 952 918 905 884 871 849 815

HDFC EQ 1816 1764 1741 1712 1689 1659 1607

HDFCBANK EQ 2009 1933 1902 1857 1826 1781 1705

HEROMOTOC

O

EQ 3752 3618 3558 3484 3424 3350 3216

HINDALCO EQ 262 251 248 240 237 229 219

HINDPETRO EQ 502 468 456 435 422 401 367

HINDUNILVR EQ 1387 1354 1339 1322 1306 1289 1256

IBULHSGFIN EQ 1280 1236 1220 1193 1176 1150 1107

ICICIBANK EQ 330 318 311 305 298 293 281

INDUSINDBK EQ 1798 1733 1704 1668 1638 1603 1537

INFRATEL EQ 411 386 370 362 346 337 313

INFY EQ 1078 1046 1032 1013 1000 981 948

IOC EQ 457 432 422 407 398 382 357

ITC EQ 283 273 269 263 259 253 243

KOTAKBANK EQ 1110 1066 1050 1022 1006 978 934

LT EQ 1309 1256 1231 1203 1178 1150 1098

LUPIN EQ 940 896 878 852 834 808 764

M&M EQ 1650 1553 1518 1455 1420 1358 1260

MARUTI EQ 9525 9334 9242 9144 9052 8954 8764

NTPC EQ 194 186 181 178 173 169 161

ONGC EQ 201 192 188 183 178 173 164

POWERGRID EQ 216 209 204 201 196 193 185

RELIANCE EQ 971 946 933 921 908 896 871

SBIN EQ 336 325 319 314 308 303 292

SUNPHARMA EQ 566 544 531 521 508 499 476

TATAMOTORS EQ 441 424 414 406 397 389 372

TATASTEEL EQ 766 729 713 692 676 655 618

TCS EQ 2866 2724 2634 2583 2492 2441 2299

TECHM EQ 552 527 512 503 487 478 454

ULTRACEMCO EQ 4642 4460 4389 4278 4206 4095 3913

UPL EQ 811 768 743 724 699 681 638

VEDL EQ 332 313 306 293 286 274 254

WIPRO EQ 306 297 293 288 284 279 270

YESBANK EQ 344 328 322 312 306 295 279

ZEEL EQ 606 588 579 571 561 553 535

TOP 15 ACHIEVERS // TOP 15 LOSERS

SR.NO SCRIPT NAME PREV

CLOSE CMP %

CHANGE

1 DR. REDDY LAB 2185.45 2371.50 +8.51

2 MAHI. AND MAHI. 138.15 1483.40 +6.86

3 LUPIN LTD 822.85 860.30 +4.55

4 HIND PETROL 428.45 443.80 3.58

5 ULTRATECH CEM 4165.55 4311.80 3.51

6 HCL TECH 870.45 891.80 2.45

7 WIPRO LTD 282.90 289.70 2.40

8 HDFC 1682.95 1723 2.38

9 VEDANTA 291.20 298 2.34

10 COAL INDIA LTD 264.85 271 2.32

11 INFOSYS 1001.85 1022.90 2.10

12 KOTA MAHI BANK 1009 1030.10 2.09

13 INDIAN OIL CORP 404.85 413.15 2.05

14 ADANI PORTS 393.40 401.35 2.02

15 HDFC BANK 1840.40 1873.45 1.80

SR.NO SCRIPT NAME PREV

CLOSE CMP % CHANGE

1 BHARTI INFRA 373.70 354.50 -5.14

2 CIPLA 603.10 576.45 -4.42

3 ICICI BANK 310.75 303.15 -2.45

4 TATA CONSUL 2601.50 2545.60 -2.15

5 POW GRI CORP 203.10 198.85 -2.09

6 NTPC 180.40 177.45 -1.64

7 ASIAPAINT LTD 1135.50 1118.70 -1.48

8 TATA MOTORS 411.15 405.10 -1.47

9 UPL 728.05 717.80 -1.41

10 L AND T 1220.35 1203.55 -1.38

11 AMBUJA CEM 268.10 264.40 -1.38

12 AUR PHARAMA 672.50 667.60 -0..73

13 SUN PHARAMA 521.85 518.35 -0.67

14 HERO MOT COR 3519.55 3503 -0.47

15 TATA STEEL 697.80 694.70 -0.44

AM

BUJ

A

CEM

ENT

204 232 +13.67

% AMBUJA CEMENT

NEXT WEEK STARS (AS PER TECHNICAL ANALYSIS)

NSE FUTURE

NSE FUTURE : NSE FUTURE: BUY VEDL FUTURE ABOVE 301 TGT 310 SL 299

NSE FUTURE : BUY COAL INDIA FUTURE ABOVE 271 TGT 281 SL 268

NSE CASH

NSE CASH : BUY DELTA CORP IN NSE CASH ABOVE 259 TGT 282 SL 249

NSE CASH : BUY CASTROL INDIA IN NSE CASH ABOVE 415 TGT 451.8 SL 409

NSE - WEEKLY NEWS LETTERS

✍ TOP NEWS OF THE WEEK

EXIT POLLS INDICATES BJP TO RETAIN POWER IN GUJARAT AND HIMACHAL

PRADESH

Exit polls on Thursday unanimously predicted that BJP would return to power in Gujarat and

also indicated a landslide victory in Himachal Pradesh. Chanakya-News 24 predicted highest

seats for BJP (135 +/-11) for Gujarat Elections out of 182 assembly seats. Whereas others have

predicted between 99-135 seats for BJP in Gujarat. If these polls are proved right, it would be a

huge sentimental boost for BJP and it may help BJP to garner votes in 2019 general elections.

The exit pool outcome if proved right will be a setback for Congress. The exit poll says that

development has overshadowed the concerns of two big reforms GST and demonetization.

IDBI BANK DECLARES RUCHI SOYA A WILFUL DEFAULTER - IDBI Bank, one of

the lenders to Ruchi Soya Industries Limited has declared the company a wilful defaulter.

Ruchi Soya Industries Limited is one of India’s leading edible oils company with product

portfolio spanning across edible cooking oils, soya foods, bakery products, Vanaspati ghee,

healthy foods and soaps.The company, while having popular brands in edible oil and soya

chunks, suffered heavily in 2015 due to an unprecedented crash in global castor seed prices.

The crash, coupled with sagging revenues in its core oil business, led to dwindling profits and

the company was in the red in FY16. As on March 31, 2017 Ruchi had debt of more than

Rs55bn on its consolidated books and a D/E ratio of close to 6x. Apart from IDBI Bank,

Standard Chartered Bank and DBS Bank too have filed insolvency cases against the company.

NCC TO RAISE RS550CR THROUGH QIP - The board of NCC has approved raising of

upto Rs550cr in equity via the Qualified Institutional Placement route. The company had last

raised funds through the QIP route in FY2010 when the company had raised Rs367cr. The

stated purpose of the QIP in FY2010 was to reduce short term borrowings as well as invest in

infrastructure projects in roads and power sector.Though the company has not stated the

purpose of the QIP, we feel that it is possible that the company would be looking to deleverage

its balance sheet. As of FY17,

The short term borrowings of the company stood at Rs2,016cr on a consolidated basis. NCC is

one of the top three infrastructure construction companies in India in terms of revenue.

Company's current order book is majorly contributed by building, transportation, O&G and

water and railway. It also has presence in Middle East.With strong order inflows, company’s

order book stands at Rs22,009cr which translates into healthy revenue visibility. Moreover,

company has been declared L1 in orders worth Rs2,500-3,000cr in Q2FY18. Also, it expects to

win some EPC contracts in the road division and building contracts in Amravati.

CANARA BANK TO RAISE FUNDS UP TO RS1800CR - canara bank has received an

approval to raise capital funds through Additional Tier I instruments in rupee terms

domestically for an amount not exceeding Rs1800cr in single or multiple tranches to maintain

healthy CRAR during the current year. The Board of the company vide its order dated

December 12, 2017 has permitted for the same.The fundraising would act positively for the

bank as it would aid it in improve its capital adequacy ratio, which in turn would partly fund its

future loan growth besides help it to provide for its bad loans.We expect a fall in slippages by

140 bps to 2% over FY17-19E attributable to improving the domestic economic outlook, its

follow up on recovery and the recent RBI ordinance on NPA.We expect the improving credit

deposit ratio by 397 bps over FY17-19E to 73% and improving CASA to contribute to NIM

improvement. We expect its overall NIM to improve by 42 bps over FY16-FY19E to 2.6%. We

expect its RoE to improve by 276 bps over FY17-19E to 6%.Canara Bank’s improving asset

quality, better NIM prospects and rising noninterest income bodes well for its profitability over

FY17-19E.

PNB TO RAISE UP TO RS5,000CR THROUGH QIP - Punjab National Bank has initiated

the process of raising up to Rs5,000cr through Qualified Institutional Placement. The

committee of directors for capital mop-up at a meeting approved opening of the QIP.The bank

has approved the floor price of Rs176.35 per share of face value Rs2. This fundraising would

act positively for the bank as it would aid it in improve its capital adequacy ratio, which in turn

would partly fund its future loan growth besides help it to provide for its bad loans.

LUPIN GETS USFDA NOD FOR GENERIC OF SAFYRAL TABLETS - It has received

final approval for its Tydemy and Levomefolate Calcium Tablets, 3 mg/0.03 mg/0.451 mg and

Levomefolate from the USFDA to market a generic version of Safyral Tablets of Bayer

HealthCare Pharmaceuticals Inc. Tydemy is indicated for use by women to prevent pregnancy

and to raise folate levels in women who choose to use an oral contraceptive for contraception.

Drospirenone, Ethinyl Estradiol, and Levomefolate Calcium Tablets, 3mg/0.03 mg/0.451 mg

and Levomefolate Calcium Tablets, 0.451 mg tablets had annual sales of approximately $22.9

million in the US. Lupin, a manufacturer of branded plus generic formulations, biotechnology

products and APIs, earns 47% from its US business. Chronic and semi-chronic therapy

contributes 88% to revenue, of which chronic contributes 65% of total revenue in the domestic

market.

ITC OPENS RS1,500CR INTEGRATED FOOD PARK IN PUNJAB, MILK-BASED

BEVERAGES TO BE LAUNCHEDITC - Rolled out its largest integrated food

manufacturing and logistics facility at Kapurthala, Punjab on December 14, 2017. This unit

would have the wheat mandis as well to procure the grain from farmers, in addition to FMCG

units. The facility is spread across 8 lakh sq.ft with initial investment of Rs1,500cr and would

be producing atta, noodles, wafers, biscuits, fruit juices and other fruit-based beverages. In

addition to FMCG products, ITC would launch a range of ready-to-drink milk-based beverages

and frozen desserts from this new plant to accelerate its dairy business. The first dairy-based

product is expected to be launched in the second or third quarter of next fiscal year. ITC’s

expansion plan in dairy business is a part of its long-term goal of reaching Rs100,000cr

revenue from the non-cigarette business by 2030. The company had earlier announced an

investment of Rs25,000cr in 65 projects and expects one or two facilities to be operational

every year. ITC enjoys leadership position in all the segments it caters to, and is continuousl y

trying to gain market share in its FMCG segment through new product launches and newer

segments. Cigarettes, where it has 80% market share has been marred by the aggressive tax

incidence under GST. Additionally, the uncertainty of timelines for tax rate revision under

GST makes the company more prone to volume volatility. Further, though, the FMCG segment

is set to gain from the supply chain benefits post GST implementation and shift in demand to

the organised players, we remain cautious on its profitability.

BHEL BAGS RS7,300CR EPC CONTRACT FOR 1,320 MW SUPERCRITICAL

POWER PROJECT IN TAMIL NADU - Against stiff International Competition Bidding,

Bharat Heavy Electricals Limited has won an order for setting up a 1,320 MW Supercritical

Thermal Power Project in Tamil Nadu. The order valued at over Rs7,300cr, for setting up the

2x660 MW Udangudi TPP has been placed on BHEL by Tamil Nadu Generation and

Distribution Corporation Ltd. Significantly, this is the fourth order for supercritical sets

finalized in the last three years by TANGEDCO, and all the four orders have been won by

BHEL. The previous three orders viz 2x660 MW Ennore SEZ, 1x800 MW North Chennai

Supercritical TPP Stage-III and 2x800 MW Uppur TPP were also secured by BHEL on ICB

basis, reinforcing its position as the frontrunner in the power generation equipment industry in

India. The key equipments for the project will be manufactured at BHEL’s Trichy, Haridwar,

Bhopal, Ranipet, Hyderabad, Jhansi, Thirumayam and Bengaluru plants while the company's

Power Sector - Southern Region shall be responsible for civil works, erection and

commissioning of the equipment. The implementation of the new projects will help foster

growth in Tamil Nadu and provide easy access to electricity to the people of the state. At

present, BHEL has a significant share of 83% in the state’s coal-based generating capacity and

has been a major partner in the power development programme of Tamil Nadu. BHEL is

India’s largest power plant equipment manufacturer with 20,000 MW pa manufacturing

capacity. It is the market leader in generation equipment space with 55% market share of the

total installed power capacity.

EVEREADY INDUSTRIES GETS ORDERS WORTH RS23.85CR - It has received orders

for supply of celling fans and smart LED Street lighting Luminaries worth Rs23.85cr.

Eveready Industries India is a manufacturer of dry cell batteries, flashlights, lighting and

packet tea. It derived 55% revenue from dry cell batteries, 14% from flashlights, 22% from

Lighting & Electricals and 9% from others in FY17. The company has recently forayed into

home appliances business and is a known brand in east and north Indian markets. This is

expected to keep volumes buoyant by 10-12% and likely to garner 65% market share by

FY19E. It has shifted its business from declining CFL market to growing LED market and has

launched new LED products. This shift is expected to add Rs.25cr to its revenue by FY18E.

RENAISSANCE JEWELLERY HITS 20% UPPER CIRCUIT ON STRONG Q2

NUMBERS - Renaissance jewellery reported more than doubled net profit at Rs16.9cr in

September quarter. It had profit of Rs7.4cr in the same quarter year ago. The company’s

revenue grew 34% at Rs384cr against Rs286cr in the corresponding quarter of previous fiscal.

EBITDA margin improved to 6.94% from 5.6% in previous year quarter. Renaissance

Jewellery Ltd. is engaged majorly in design, manufacturing & sale of jewellery products in

overseas and India. It has 3 subsidiaries in UK, US & UAE. Its Indian subsidiary, Housefull

International is into retail furniture business. It sells its products through specialty jewellery

chain & online portals. It designs low cost products for Amazon, Hallmark, JCPenney and

Walmart abroad. Company witnessed a gradual transition from gold to silver .

HDFC GROUP STOCK UP POST FUND RAISING PROPOSAL -The stocks of HDFC

group were up following a fund raising proposal. HDFC Bank is up by 2.28% at Rs1,880,

while HDFC Ltd stock is up by 1.3% at Rs1,730. HDFC bank’s board will meet on

Wednesday, December 20, 2017 to consider a proposal for raising of funds. It is considering

raising funds through a qualified institutional placement, which may also include a preferential

issue to its parent HDFC Ltd. The fund raising will act as a positive for the bank as it would

improve capital adequacy ratio to fund future loan growth. HDFC Bank had last raised

Rs9,800cr in February 2015 through a mix of ADRs and a QIP. HDFC bank stock is trading at

3.4x FY20E P/BV. We have positive outlook the stock. Mortgage lender HDFC Ltd., which

holds 25.7% in HDFC bank, will also consider raising capital on December 19, which would

be used to subscribe to HDFC Bank’s preferential allotment. This will improve its stake in

HDFC Bank which will act positive for the mortgage lender.

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