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WEEKLY REPORT ISSUE NO.12 Equity99 research is also available on www.equity99.com JOIN IN OUR TELEGRAM CHANNEL - t.me/equity99 Date: 28/06/2020
W E E K L YR E P O R T
ISSUE NO.12
Equity99 research is also available onwww.equity99.com
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Da
te:
28
/0
6/
20
20
W e e k l y R e p o r t
For next week, 10270 will act as nearest support. Breaking this level with volume will take NIFTY to 10185-10135 levels. On the upper side 10500 will act as a strong hurdle zone. Cross over and close above will take NIFTY to 10550-10610 levels during this week itself.
N I F T YC A S H
For next week, 21325 will act as nearest support. Breaking this level with volume will take NIFTY to 20920-20800 levels. On the upper side 21790 will act as a strong hurdle zone. Cross over and close above will take NIFTY to 22000-22300 levels during this week itself.
B A N KN I F T Y
Date: 28/06/2020
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W e e k l y R e p o r t
L A S T W E E K S P E R F O R M A N C E
Fantastic PerformanceOf Last Week’s Weekly News Letter
L&T FINANCE HOLDINGS was recommended to buy between Rs.67-64. It made a low of Rs.66.25 and zoomed to
Rs.72.2 during the week.
APOLLO TYRE was recommended to buy between Rs.109-106. It made a low of Rs.107.2 and zoomed to
Rs.114.95 during the week.
DALMIA BHARAT recommended to buy betweenRs.595-585. It made a low of Rs.585 and zoomed to Rs.719
during the week.
FEDERAL BANK made a high of Rs.58.10 from Rs.51 during the week.
DCM SHRIRAM made a high of Rs.345 from Rs.307during the week.
Date: 28/06/2020
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W e e k l y R e p o r t
S T O C K S F O R T H I S W E E K
ORIENTELECTRIC BPCLCMP: RS. 199.00
BSE: 541301 | NSE: ORIENTELECSECTOR: CONSUMER GOODS -
ELECTRONIC
CMP: RS. 393.65BSE: 500547 | NSE: BPCL
SECTOR: REFINERIES
SASKENTECHNOLOGIES
CMP: RS. 505.75BSE: 532663 | NSE: SASKEN
SECTOR: COMPUTERS - SOFTWARE
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Date: 28/06/2020
Stock is looking highly explosive on chart. Posi-
�onal traders can watch between
Rs.197-190 with a stop loss of
Rs.182. On the upper side we are
expec�ng Rs.204-209-215
levels in the next 10-15 days.
Stock is looking highly explosive on chart. Posi-
�onal traders can watch between
Rs.390-380 with a stop loss of
Rs.367. On the upper side we are
expec�ng Rs.402-415-422
levels in the next 10-15 days.
Stock is s�lllooking superb on chart. Posi�onal
traders can watch between Rs.500-490 levels with a
stop loss of Rs.467. On the
upper side we are expec�ng
Rs.515-550 levels in the next 10-15
days.
W e e k l y R e p o r t
S T O C K S F O R T H I S W E E K
LARSEN &TOUBRO INFOSYS
CMP: RS. 962.20BSE: 500510 | NSE: LT
SECTOR: INFRASTRUCTURE - GENERAL
CMP: RS. 748.20BSE: 500209 | NSE: INFY
SECTOR: COMPUTERS - SOFTWARE
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Date: 28/06/2020
Stock is ready for big up move a�er long
consolida�on. One can watch for posi�onal trading on dips be-
tween 955-935 with a stop loss of 905. On the
upper side we areexpec�ng 990-1005-
1040 levels in thenext 10-15 days.
One can watch for posi�onal trading on
dips between 740-725 with a stop loss of 710. On the upper
side we are expec�ng 763-774-800 levels in the next 15-20 days.
W e e k l y R e p o r t
Q U E R Y B O A R D
1. Multiple queries on MAHABANK
Q. What is your view on Bank of Maharashtra share for long term and short term?
Answer: We have identified some bank stocks at lower levels due to their lower valuations. We recommended South Indian Bank around 6-6.5 and after our recommendation it zoomed to 9.25 level. IOB, we recommended at 7.70, zoomed 13.10 in a very short span of time. Karur Vysya Bank recommended at 29.4 zoomed to 37 levels. DHANAL-AKSHMI BANK recommended many times between 9-10.5. Zoomed 17.9 level. UCO BANK, BANK OF BARODA also recommended at lower levels and given handsome returns in the short term. MAHABANK also recommended around 11-11.25 levels and now trading around 11.5 levels. At lower levels due to very economic fundamental valuations, we recommended these banking stocks but these banks are not advisable for long term investment for now, MAHA BANK recorded turn around numbers for FY20 and it may go up to 13.5-15 levels in short term. One can hold with stop loss of Rs.10 for the short term.
3. Multiple queries on IOL CHEMICALS
Q. IOL CHEMICALS at this current rate, what is the long term view?
Answer: We were highly bullish on IOL CHEMICALS since Rs.95. We had published a detailed research report on moneycontrol.com at Rs.95. In April 2020 on telegram channel we published a detailed report at Rs.275. Last week it made a high of 485 and traded around 453. Long term view on IOCP is highly bullish. Those who are holding stock with a long term horizon can hold with confidence. In the short term, after a smart move stock may consolidate for some time in narrow range. So our long term view is bullish but in a short term some consolidation will see and actually it is better for a long journey.
2. Multiple queries on SJVN
Q. What is your view on SJVN for long term and short term, what is the stop loss we should take?
Answer: Most PSU stocks are highly undervalued and may give steady returns in coming months. SJVN Limited, a Mini Ratna, Category-I and Schedule –‘A’ CPSE under administrative control of Ministry of Power, Govt. of India, was incorporated on May 24, 1988 as a joint venture of the Government of India (GOI) and the Government of Himachal Pradesh (GOHP). The present installed capacity of SJVN is 2015.2 MW comprising five projects and one transmis-sion line of 86 km length. Company has reported strong numbers in 9MFY20. It paid 21.5% dividend for FY19 and paid 17% interim dividend for FY20 and it will declare final dividend in coming days. Valuation is highly attractive but it is very low beta stock so those who have patience can hold with stop loss of 20. It may go up to 24-25.5-27.25 levels in the medium term.
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Date: 28/06/2020
W e e k l y R e p o r t
Q U E R Y B O A R D
5. Multiple Queries on SBI CARDS
Q. Many of the investors are stuck from the IPO listing
Answer: Yes many investors have stuck in SBI CARD since IPO. Its IPO was one of the super hit IPO in history but around its listing time market was in highly negative shape. Due to covid19 negative impact seen on business of SBI CARD. But it is a great business model for long term in India so those who are holding this stock for long term can hold with confidence and also can add more in 3-5 parts between August to October 2020.
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6. Multiple queries on LIC HOUSING FINANCE
Q. LIC Housing Finance share for long term and short term. Please tell about stop loss.
Answer: LIC Housing Finance is one of the biggest housing loan providers NBFC in India. Company is promoted by LIC means promoters are very strong. Company has reported muted numbers in FY20 but after muted numbers and covid19 situation, the company has increased its dividend from 380% to 400% which is a good sign. Due to COVID19, the company's 2 quarter will be affected but in a longer run the company may report strong growth. So its long term future is bright and one can add LICHSGFIN shares in 3-5 parts between August to October 2020. Friday we recommended on telegram to buy between 275.5-270 with a stop loss of 268 for 2-3 days. We also mention to keep strict stop loss and trade in small quantities. Stock made a high of 278.2 after our recommendation and then slide up to 270 levels. Those who bought for a short term can follow the stop loss of 268. As stop loss is must for short term trading.
Date: 28/06/2020
4. Multiple queries for GRANULES INDIA
Q. What is your view on Granules India, short term and long term?
Answer: Our view on Granules India is the same as IOLCP. First time, we were recommending at the Rs.95 level and still we are highly bullish for long term prospective. Government wants to curb dependency on China in the API sector. Which is highly bullish for API companies like Granules, IOLCP, Laurus, Divi’s, Solara, Aarti Drugs etc. But Granules has ran very fast in the short term so it may consolidate for short term but in the longer term stock may give good returns from current levels.
W e e k l y R e p o r t
Q U E R Y B O A R D
7. Multiple queries on YES BANK
Q. As the bank has recently been in news for fundraising, how is it going to impact share price? What is the right time to take entry in this stock? What is your view?
Answer: We are not bullish on Yes Bank. If bank raise funds via FPO as per the news of business channel, FPO price should be less than Rs.20. So if FPO is announced , share price will fall from current price. Bank has already increased its equity from Rs.510.09 crore to Rs.2510.09 crore. And if the bank comes with a FPO, equity will rise from Rs.2510.09 crore. Its book value should increase but it will be difficult to generate higher ROE on very high capital. So in our view it is not an investment idea.
9. Multiple queries on GLENMARK PHARMA
Q. Your views on Glenmark Pharma as the stock has recently given a huge rally in a single day and has collapsed from 573 levels, now that Q4 results are out what is your outlook from short and long term.
Answer: Glenmark Pharmaceuticals Ltd. is a global research-led pharmaceutical company with presence across Generics, Specialty and OTC business with operations in over 50 countries. Glenmark’s key therapy focus areas globally are respiratory, dermatology and oncology. It is ranked among the top 80 Pharma & Biotech companies of the world in terms of revenue. Company unlocks the treatment for mild to moderate covid19 in India which is senti-mentally beneficiary for the company. Company posted stable numbers for FY20. Stock is trading at a PE ratio of just 17.1x. As per our study ALKEM LAB, AJANTA PHARMA, SUN PHARMA, ALEMBIC PHARMA will be the better option against GLENMARK. So those who are holding Glenmark can hold with a stop loss of 400 but those who want to buy fresh shares, can choose other from above pharma stocks.
8. Multiple queries on COAL INDIA
Q. What is your view on Coal India, as the government has been focusing on this sector. Is it good to buy at the current levels?
Answer: Government has announced a remarkable decision on the coal sector which is even a game changer for our country in the next 3-5 years. So time being COAL INDIA’s stock can go higher from here but in the long run we believe that the private sector will kill COAL INDIA what the telecom players did to BSNL and MTNL. Public sector never competes with the private sector in our country. So Coal India is a highly undervalued stock by valuation and hold it time being, but don’t invest more in this stock.
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Date: 28/06/2020
W e e k l y R e p o r t
Q U E R Y B O A R D
10. Queries on NBCC
Q. What should we do in NBCC?
Answer: Price wise NBCC is a cheap stock but fundamentally it is not a cheap stock. Company is posting poor numbers since the last three four quarters. Stock is trading at a P/E ratio of 31x which is above average. Company has an order book of above Rs.85,000 crore but execution is very poor. So don’t try to bottom fishing in this stock as many good opportunities are already available. Those who already holding this stock can wait till March Quarter numbers and management’s commentary. If both will be weak, they should try to exit. Your stop loss should be Rs.21 on closing basis.
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Date: 28/06/2020
W e e k l y R e p o r t
D I S C L O S U R E & D I S C L A I M E R
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Disclosure:Authors and the names subscribed to this report, hereby cer�fy that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securi�es. We also cer�fy that no part of our compensa�on was, is, or will be directly or indirectly related to the specific recommenda�on(s) or view(s) in this report. Research Analyst or his/her rela�ve or Equity99 Ltd. does not have any financial interest in the subject company. Also Research Analyst or his/her rela�ve or Equity99 Ltd. or its Associate may have beneficial ownership of 1% or more in the subject company at the end of the month immediately preceding the date of publica�on of the Research Report. Further Research Analyst or his/her rela�ve or Equity99 Ltd. or its associate does not have any material conflict of interest. Any holding in stock – No.
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Date: 28/06/2020
