MARKET WRAP: Sensex slips 149 pts in volatile trade; mid, small-caps shine
All that happened in the markets today
 "markets, share market")
NSE's Nifty50 index slipped 41 points, or 0.35 per cent to 11,896 levels
8:39 AM
BROKERAGE VIEW :: MOFSL on UltraTech Cement
CMP: Rs 4,629 | TP: Rs 5,600 (+21%) | Reco: Buy
>> UTCEM has a strong pan-India distribution network and preferred supplier status for key infrastructure projects. This places it in a good position to tap into expected growth in both retail and institutional (non-trade) cement demand in India.
>> The company is ramping up its under-utilized acquired capacities (Binani, Century). On the other hand, it also has a strong pipeline of projects and brownfield expansion potential, which offers visibility on long-term growth.
>> We estimate 13%/27% CAGR in consolidated EBITDA/PAT over FY20–22E, driven by a 5% CAGR in volumes and lower operating/interest costs.
>> The valuation is reasonable at 11.7x FY22E EV/EBITDA and USD177/t capacity, a ~25% discount to its past five-year average and ~15% discount to its past 10-
>> UTCEM has a strong pan-India distribution network and preferred supplier status for key infrastructure projects. This places it in a good position to tap into expected growth in both retail and institutional (non-trade) cement demand in India.
>> The company is ramping up its under-utilized acquired capacities (Binani, Century). On the other hand, it also has a strong pipeline of projects and brownfield expansion potential, which offers visibility on long-term growth.
>> We estimate 13%/27% CAGR in consolidated EBITDA/PAT over FY20–22E, driven by a 5% CAGR in volumes and lower operating/interest costs.
>> The valuation is reasonable at 11.7x FY22E EV/EBITDA and USD177/t capacity, a ~25% discount to its past five-year average and ~15% discount to its past 10-
year average. The stock is also trading 30% cheaper v/s peer Shree Cement against the historical average of 10%. We value UTCEM at 14x FY22E EV/EBITDA to arrive at TP of Rs 5,600. Reiterate Buy.
8:35 AM
Trading strategy for copper
Buy Copper | TGT: 550 | Stoploss: 525
Copper, which was trading in range of 510-532, has given breakout. It is already trading above its important moving average of 20 and 50 DMA but the breakout from the range has given new direction to Copper. Momentum oscillator RSI_14 is trading at 60 with no divergence on daily scale. So we recommend long position with expected target of 550 and stoploss of 525 READ MORE
8:34 AM
The stock is witnessing a breakout from its bullish flag pattern. Further buying momentum would be witnessed if the stock moves above 384. Breakout from the level of 384, which is immediate resistance, can lead the stock to higher levels. Considering the technical evidence discussed above, we recommend buying the stock above Rs 384 for the target of Rs 406, keeping a stop loss at Rs 369 on closing basis. READ MORE
CapitalVia Global Research on IGL
Buy Indraprastha Gas Limited (Above Rs 384)
Target: Rs 406
Stop loss: Rs 369
The stock is witnessing a breakout from its bullish flag pattern. Further buying momentum would be witnessed if the stock moves above 384. Breakout from the level of 384, which is immediate resistance, can lead the stock to higher levels. Considering the technical evidence discussed above, we recommend buying the stock above Rs 384 for the target of Rs 406, keeping a stop loss at Rs 369 on closing basis. READ MORE
8:26 AM
FII/FPI & DII trading activity on NSE, BSE and MSEI
8:25 AM
Rupee check
Source: Bloomberg
8:23 AM
Oil check
8:20 AM
SGX Nifty update
>> At 8:19 am, the index was at 11,898 level, down around 19 points or 0.16 per cent.
8:19 AM
Asian investors prepare for choppy trade
Source: Reuters
8:18 AM
S&P ends choppy session lower as US stimulus talks drag on
Source: Reuters
8:09 AM
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First Published: Oct 22 2020 | 7:52 AM IST
