1

Daily Dossier

07th May 2018

Outlook The Nifty ended 0.92% up at 10,715.50. Positive opening followed by

follow through buying led the Benchmark Index closing with a bullish

body candle. Spectacular recovery above critical resistance placed

10,700 from day’s low 10,636 is invigorating for the aggressive bulls.

Hence, considering the strength of the primary trend we prefer buy on

dips strategy as of now. Downside critical support is now placed

around 10,700 and 10640. End of the day candle pattern suggests, as

discussed in our earlier post, Nifty may challenge upside resistance

placed around 10,780.

On the Nifty hourly chart; a pullback from 100 EMA followed by recovery above 10,700 led to end the

session on a stronger note. Hence, Nifty once again challenging upside resistance placed around 10,780 is

likely.

Nifty patterns on multiple time frames show; recovery from around 10,600 levels followed by ending the

session above 10,700 mark is critical from technical perspective. Hence, next leg of up-move towards

10780 is a glaring possibility. 10,820 is the next resistance.

Nifty Crucial Supports & Resistances for tomorrow-

Supports- 10700, 10640 Resistances- 10780, 10820

Jaydeb Dey Jaydeb.dey@smifs.com Deepankar Saha deepankar.saha@smifs.co.in

Top Stock Drivers For The Day

Name News/Views Impact Lupin Ltd. (CMP:773.90)

The following stocks came after market hours and the stocks is likely to react to-

morrow:

Lupin receives FDA approval for marketing Clobetasol Propionate Ointment USP,

0.05%. This is a generic version of Fougera Pharmaceuticals Inc.'s Temovate Oint-

ment, 0.05%. The ointment is indicated for relief of inflammatory and pruritic mani-

festations of corticosteroid responsive dermatoses.

Open positional calls-

T+7 Positional Buy (2 Trading sessions left)-

TATA STEEL Fut (CMP- 598.70) on dips

around 585.00 for the TGT of 615.00, SL-

below 570.00

T+3 Positional Buy (3 Trading sessions left)-

ITC Fut (cmp- 280.85) on dips @279, TGT-

289 SL- 274

T+5 Positional Buy (5 Trading sessions left)-

FEDERAL BANK Fut (cmp- 102.10) on dips

@101, TGT- 107 SL- 98

BTST Positional Buy (1 trading session left)-

INDIAN BANK @321 TGT- 327 SL- 318

Nifty Intraday Chart

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Intraday Chart of Sensex FII Derivatives Flow (In Crore) 07-05-2018

Institutional Flow (In Crore) 07-05-2018

Market in Retrospect

Energy Markets

Market Turnover (Rs. Crore) 07-05-2018

NIFTY Top Gainers

NIFTY Top Losers

Bulk and Block Deals

Instrument Purchase Sale Net

Index Future 1191.25 1086.75 104.50

Index Option 29252.32 28650.99 601.32

Stock Future 8493.77 7846.14 647.63

Stock Option 5406.90 5261.16 145.74

Institution Purchase Sale Net

FII 3841.79 4477.03 -635.24

DII 3352.64 2315.41 1037.23 Name Last Previous

NSE Cash 28640.88 29432.83

NSE F&O 369960.32 367606.45

BSE Cash 3,363.39 2,924.25

BSE F&O 0.67 0.66

Name %5D Day Vol Avg 5 Day Vol %1D

Gail India 3.93 4,970,239 3,021,390 4.26

M&M 2.65 1,916,654 1,330,796 3.66

Axis Bank 3.04 0.57 6,792,091 24,068,800

Hindalco 2.81 1.23 7,746,284 8,402,522

Tata Steel 2.70 1.13 4,553,509 4,655,553

Name %5D Day Vol Avg 5 Day Vol %1D

Cipla 1.47 1,046,885 1,101,530 1.00

Coal India 6.75 7,181,257 2,217,375 1.44

TCS 1.72 0.90 1,742,213 1,722,673

Dr. Reddy's 1.76 1.35 344,097 256,969

Lupin 2.73 3.44 1,945,747 909,416

https://www.nseindia.com/products/content/equities/equities/bulk.htm

http://www.bseindia.com/markets/equity/EQReports/BulknBlockDeals.aspx

Benchmark Indices closed on a strong note toady led by

market heavyweights Reliance Industries and ICIC Bank.

Gains were supported by positive cues from global peers

after tepid US jobs data on Friday eased fears of faster rate

hikes by the Federal Reserve. Nifty ended 0.92% higher at

10715.50, while Sensex closed higher 0.84% at 35,208.14.

Nifty Midcap and Nifty Smallcap were up by 0.75% and

0.73% respectively in today’s session. Sector wise, Nifty PSU

bank Nifty Metal and Media were top gainers, gaining

2.03%, 1.72% and 1.71% respectively. On the other hand,

Nifty Pharma and Nifty IT were top losers declining 0.49%

and 0.21% respectively.

Stock wise, GAIL, M&M and Axis bank were the top gainers

with 4.26%, 3.66% and 3.04% respectively, whereas, Lupin,

Dr. Reddy’s and TCS were the top losers declining 2.73%,

1.76% and 1.72% respectively.

In NSE, 967 stocks advanced, 829 declined and 96 remain

unchanged. INDIA VIX was at 13.76, up by 3.85%.

Name Index Net Chng %1D %5D %1M %3M %1Y

NYMEX Crude 70.41 0.69 0.99 2.68 13.45 13.95 52.34

BRENT Crude 75.54 0.67 0.89 1.14 13.29 17.21 48.85

Natural Gas 2.70 0.01 0.33 2.21 1.64 1.49 7.24

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Indian Indices Global Indices (Updated at 4:30 pm)

LME

Bond Markets

Freight

Currency

Agro Commodities

Name Yield Net Chng %1D %5D %1M %3M %1Y

US 2.95 0.00 0.13 0.01 6.49 4.14 25.75

UK 1.40 0.01 0.72 3.11 2.34 11.22 25.45

Brazil 5.24 0.06 1.21 3.03 7.37 7.97 11.03

Japan 0.05 0.00 0.00 18.18 2.17 40.79 114.29

Australia 2.76 0.02 0.54 0.51 3.73 3.10 4.04

India 7.62 0.11 1.39 1.47 6.22 1.21 9.77

Switzerland 0.05 0.00 4.17 47.73 4500.00 73.10 192.00

Germany 0.54 0.01 1.65 4.29 7.65 28.19 27.99

Name Index Net Chng %1D %5D %1M %3M %1Y

Sensex 35208.14 292.76 0.84 0.68 4.70 3.30 17.92

Nifty 10715.50 97.25 0.92 0.22 3.72 2.28 15.40

BSE M Cap 16652.38 91.37 0.55 1.57 0.34 1.84 13.14

BSE S Cap 18091.73 100.28 0.56 0.81 1.17 2.03 17.82

Nifty MC 100 19867.75 147.75 0.75 1.26 1.79 1.99 10.08

BSE Auto 25533.54 359.53 1.43 0.78 0.49 2.17 13.43

BSE Capgoods 19331.29 213.90 1.12 0.38 2.83 1.18 9.30

BSE FMCG 11190.76 123.74 1.12 0.32 6.05 6.25 19.41

BSE Metal 13986.65 231.40 1.68 1.72 2.61 4.95 29.00

BSE Oil&Gas 14472.68 234.08 1.64 0.78 2.36 7.77 1.93

BSE Healthcare 13771.36 73.32 0.53 1.88 0.63 1.20 6.29

BSE Power 2202.32 10.99 0.50 0.73 0.41 0.65 4.35

BSE Realty 2374.37 35.30 1.51 0.83 3.48 1.11 21.39

BSE ConsDur 22596.20 323.57 1.45 0.84 1.82 8.14 42.99

BSE Bank 28983.33 320.80 1.12 1.59 4.05 0.31 12.87

BSE IT 13138.36 1.45 0.01 1.77 7.40 9.10 34.75

Name Index Net Chng %1D %5D %1M %3M %1Y

Baltic Dry 1384.00 8.00 0.58 1.69 45.99 26.16 39.24

Baltic Dirty 650.00 2.00 0.31 0.91 1.09 0.31 16.02

Name Rate Net Chng %1D %5D %1M %3M %1Y

INR 67.16 0.29 0.43 0.74 3.18 4.28 4.25

USD Index 92.81 0.25 0.27 1.06 3.00 2.83 5.92

YUAN 6.37 0.00 0.04 0.51 0.91 1.37 8.48

GBP 1.35 0.00 0.04 1.66 4.24 2.44 4.63

EUR 1.19 0.00 0.30 1.46 3.20 2.82 9.07

YEN 109.29 0.17 0.16 0.16 2.15 0.27 3.39

Name Index Net Chng %1D %5D %1M %3M %1Y

Dow Jones 24262.51 332.36 1.39 0.20 1.38 2.53 15.50

Nasdaq 7209.62 121.47 1.71 1.26 4.26 2.24 18.18

S&P 500 2663.42 33.69 1.28 0.24 2.26 0.68 11.01

FTSE100 7567.14 64.45 0.86 0.87 5.34 3.95 3.70

CAC40 5516.48 1.39 0.03 0.62 4.93 4.98 1.57

DAX 12866.20 49.54 0.39 2.29 5.13 2.21 1.20

Mexico IPC 46992.17 101.96 0.22 2.70 1.95 4.05 5.04

Brazil Bovespa 83118.03 170.11 0.20 3.78 2.01 0.42 26.49

Russian RTS 1156.58 10.05 0.88 0.64 6.46 6.91 6.54

Japan Nikkei 22467.16 5.62 0.03 1.13 5.52 3.47 15.54

Hang Seng 29994.26 67.76 0.23 0.95 0.50 1.08 22.54

Taiwan Index 10604.91 75.54 0.72 0.49 2.00 0.51 7.12

Shanghai Comp 3136.65 45.61 1.48 2.00 0.18 5.22 1.08

KOSPI 2461.38 25.87 1.04 0.58 1.31 2.70 9.82

Malaysia KLCI 1828.20 13.63 0.74 1.89 0.48 0.46 3.71

Jakarta Comp 5885.10 92.75 1.60 0.58 4.70 9.94 3.55

Philippine SE 7533.28 12.91 0.17 2.43 5.19 13.09 3.94

Thai Exch 1779.80 0.07 0.00 0.10 2.29 0.32 13.43

Name Price Net Chng %1D %5D %1M %3M %1Y

Coffee 122.60 1.75 1.41 0.16 3.11 2.00 17.47

Cotton 87.54 0.64 0.74 4.41 6.52 11.79 18.73

Sugar 11.51 0.18 1.54 0.09 7.40 17.19 29.26

Wheat 516.50 9.75 1.85 1.18 5.73 6.22 1.27

Soybean 1029.00 7.75 0.75 1.86 1.51 2.49 4.39

Name Index Net Chng %1D %5D %1M %3M %1Y

Gold($/Ounce) 1313.82 1.60 0.12 0.12 1.49 0.36 7.54

Silver($/Ounce) 16.46 0.08 0.48 0.75 0.41 0.52 0.71

Aluminium 2369.50 99.50 4.38 6.64 20.32 7.24 24.29

Copper 6790.00 1.75 0.03 0.46 1.48 3.05 23.05

Zinc 3046.00 57.75 1.93 2.59 6.65 14.20 18.69

Lead 2314.50 58.25 2.58 1.31 2.35 14.40 5.60

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News Impact Quarterly Results

Filatex India ltd.

Consolidated revenue from operations during the quarter grew by 14.82% QoQ and 29.29% YoY to

INR578.93 crore, EBITDA grew by 28.11% QoQ and 28.35% YoY to INR48.49 crore. PAT grew by 20.58%

QoQ and 33.49% YoY to INR17.46 crore. Revenue and PAT both beats our estimates however EBITDA al-

most in line with our estimates. EBITDA margin expanded by 87 bps QoQ and declined by 14 bps YoY to

8.38%. PAT margin expanded by 15 bps QoQ and 10 bps YoY to 3.02%. Consolidated revenue from opera-

tions during the FY18 grew by 15.51% to INR1974.9 crore, EBITDA grew by 18.13% YoY to INR167.6 crore.

PAT grew by 47.4% YoY to INR59.74 crore. The company has announced a share split of 1:5 FV will be-

came INR2 from INR10.

Vijaya Bank

Vijaya Bank reported a rise of 1.6% in net profit at INR207.31 crore for March quarter, 2017-18. The Bank

had registered a net profit of INR203.99 crore in the last quarter of FY17. Total income during the quarter

grew to INR3728.22 crore as against INR3504.73 crore in the year- ago period. Provisioning for bad loans

for the quarter was higher at INR552.91 crore as against INR344.56 crore in March quarter of 2016-17.

For entire 2017-18, the net profit of the lender however came down to INR727.02 crore from INR750.48

crore. Income during the year was slightly up at INR14190.45 crore from INR14030.72 crore in 2016-17.

Asset wise, bank’s gross non-performing assets (NPAs) reduced to 6.34% of the gross loans at the end of

March 2018 from 6.59% as on March end-2017. Net NPAs were also trimmed to 4.32% of the net loans

(INR5021.24 crore) from 4.36% (INR4118.16 crore). The provision coverage ratio as on 31 March, 2018

works out to 59.39% (previous year 58.15%). The board of directors has recommended dividend of

INR1.20 per share at 12% for 2017-18.

Tata Power’s output came in at 53,556 MUs in FY18

Tata Power produced 53,556 million units of electricity in financial year 2017-18, registering an increase

of 1.9 percent. The company generated 52,512 million units of power in 2016-17 from all its units, rang-

ing from thermal to solar. During the March quarter, Tata Power's generation stood at 14,255 million

units. As per official data, the country's overall power generation is at 1,306.614 billion units (BU), which

includes generation from grid connected renewable sources, as compared to 1,241.689 BU produced in

2016-17. Thus, Tata Power's contribution stands at four percent. They have developed a well charted

growth strategy to increase their generation output by 40-50 percent by 2025 through green and clean

source of energy. Tata Power, together with all its subsidiaries and jointly controlled entities, has an in-

stalled generation capacity of 10,757 MW (as of May 2018) as compared to 10,613 MW in 2016-17.

5

News Impact

Exide Industries Limited

For Q4FY18, Exide Industries Limited (EIL) has reported an Operational revenue of INR2459.41 crore, up

by 11.57% YoY owing to the rising auto sales and has managed to surpass the Bloomberg consensus esti-

mates. During the same period, EBITDA of EIL has increased by 34.19% YoY basis to INR338.03 crore

mainly due to higher realization from the OEM space where EIL has uncontested leadership and lower

lead prices (a drop of 4% in the last quarter of FY18) to some extent. In terms of EBITDA, the firm has

beaten the Bloomberg consensus estimate of INR318.9 by a healthy margin of 6%. In Q4FY18, EIL's Net

profit stood at INR189.56 crore, up by 15.4% YoY owing to company's increased focus on cost control and

technological upgradation and has managed to surpass the Bloomberg consensus estimate by 2.63%.

During the last quarter of FY18, EBITDA margin improved by 232 bps YoY basis to 13.74% and Net profit

margin improved by 26 bps YoY basis to 7.71%. For FY18, Operational revenue stood at INR9186.32 crore,

up by 21.14% YoY basis, EBITDA stood at INR2189.44 crore, up by 14.62% YoY basis whereas Net profit

stood at INR668.35 crore, down by 3.65% due to higher depreciation and interest expense related to re-

cent CapEx plans. The Board has recommended a final dividend of INR0.80 per share (80%) subject to the

approval of the shareholders at the ensuing Annual General Meeting. Together with the interim dividend

of INR1.60 per share paid based on record date of November 6, 2017. The total dividend works out to

INR2.40 per share (240%).

Domestic News

Reliance Infra JV wins EPC contract worth INR70 Billion

Reliance Infrastructure won the engineering, procurement and construction (EPC) contract for the Verso-

va-Bandra Sea Link Project in a joint venture with Astaldi SpA (Italy) for a value of INR70 billion.. Other

bidders were L&T-Samsung JV and Hyundai Development Company-ITD JV. The letter of award (LoA) for

the project has been issued by Maharashtra State Road Development Corporation (MSRDC). With a

length of 17.17 km, Versova-Bandra Sea Link is three times the length of the existing Bandra-Worli Sea

Link, which is 5.6 km. RInfra looks to commission the 17.17 km sea link projects in 60 months’ time.

Sadbhav Engineering bags project worth INR317 Crore

Sadbhav Engineering bagged a mining project worth INR317 crore in Chhattisgarh. The company has been

declared the successful bidder (L1) in reverse auction process in respect of the bids invited by South East-

ern Coalfields, Chhattisgarh. The project, to be undertaken in Korba district and will be completed in

three years.

6

News Impact

ONGC clocks 6.3% rise in gas production

State-owned Oil and Natural Gas Corp. Ltd (ONGC) registered a 6.3% increase in natural gas production in

2017-18 and is on track to double the output by 2022. It has produced 23.484 billion cubic metres (bcm)

of gas in 2017-18 as against 22.088 bcm in 2016-17. This is the highest gas output by the company in five

years and the growth rate is higher than the global average of 3-4% YoY. The overall gas production,

which includes production from the joint ventures, registered a growth of 5.8% at 24.610 bcm, as against

23.270 bcm in the previous year. The company is targeting gas production of 24.41 bcm during the cur-

rent financial year and incur an investment of around INR7000 crore. While the main incremental growth

stand-alone basis came from western offshore, the onshore fields have also contributed substantially de-

spite natural decline coupled with several other constraints.

Nestle pays USD7.15 billion to sell Starbucks products

Swiss food giant Nestle announced that it will pay USD7.15 billion for the rights to market Starbucks

products around the world, outside of the company’s coffee shops. The agreement gives Nestle, which

owns the Nescafe and Nespresso brands, a strong platform for continued growth in North America. This

transaction is a significant step for our coffee business, Nestle’s largest high-growth category. Both com-

panies have true passion for outstanding coffee and are proud to be recognized as global leaders for their

responsible and sustainable coffee sourcing. The deal does not include any of Starbucks’ coffee shops and

cafes. Around 500 Starbucks staff will join Nestle.

7

CORPORATE ACTION BONUS / RIGHTS / STOCK SPLIT / DIVIDEND / FCCB / M&A / WARRANTS ETC.

Domestic Events

Company Record Date Ex-Date Details

IRB InvIT Fund Cash dividend of INR3 effective 08-05-2018

Raghav Productivity Enhancers Ltd 40% stock dividend effective 08-05-2018

Sanofi India Ltd Corporate meeting effective 08-05-2018

Huhtamaki PPL Ltd Corporate meeting effective 08-05-2018

Events

Global Events

Japan Household Spending for March 2018., China Balance of Trade for April 2018.

Quarterly Results: ABB India Limited, Aditya Birla Capital Ltd., Blue Dart Express Ltd., Godrej Consum-er Products Ltd., Hathway Bhawani Cabletel & Datacom Ltd., HEG Ltd., Jubilant Foodworks Ltd., Kajaria Ceramics Ltd., Mahindra Holidays & Resorts India Ltd., Skf India Ltd., Sun Pharma Advanced Research Company Ltd., Whirlpool Of India Ltd.

Source of News : The content may have been taken from The Economic Times, Business Standard, Business Line, Mint and other

leading financial newspapers and financial portals BSE,NSE, Bloomberg, Moneycontrol & others.

8

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Disclaimer

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