MARKETS: Indices end choppy trade higher; Sensex up 144 pts; RIL sinks 9%
All that happened in the markets today
 "Markets continue to rally on RBI policy fillip; Sensex rises 164 points")
9:08 AM
Top gainers and losers on the S&P BSE Sensex at Pre-open
9:06 AM
Markets at Pre-open
9:04 AM![]()
Nifty needs to hold 11,600 for further up-move
As per weekly option data, huge call writing on higher strikes ranging from 11,700 to 12,000 is witnessed which shows Nifty would face resistance in the zone of 11,800. The level of 11,600 will act as an immediate support as maximum put open interest (OI) is placed here for monthly expiry. We can witness short-covering move along with addition of fresh position only if nifty breaches 11,800. Therefore, traders should try to create long position keeping close eye on 11,600. READ MORE
9:01 AM![]()
BROKERAGE VIEW :: MOFSL on Automobiles
Maruti Suzuki (CMP: Rs 6,956 | TP: Rs 7,850 (+13%) | Reco: Buy)
>> We are estimating FY21E volumes to decline ~9.6% YoY, implying residual growth of 14% or run-rate of ~152k units. The stock trades at 40.6x/25.4x FY21/FY22E earnings. Maintain Buy.
Hero MotoCorp (CMP: Rs 2,800 | TP: Rs 3,700 (+32%) | Reco: Buy)
>> We are estimating FY21E volumes to decline ~9.6% YoY, implying residual growth of 14% or run-rate of ~152k units. The stock trades at 40.6x/25.4x FY21/FY22E earnings. Maintain Buy.
Hero MotoCorp (CMP: Rs 2,800 | TP: Rs 3,700 (+32%) | Reco: Buy)
>> We estimate volumes to decline 5.9% in FY21E, implying residual growth of 25.8% or run-rate of 558k units. HMCL trades at 19x/14.7x FY21/FY22E EPS.
8:59 AM![]()
BROKERAGE VIEW :: MOFSL on ICICI Bank
CMP: Rs 393 | TP: Rs 525 (+34%) | Reco: Buy
>> ICICI Bank (ICICIBC) reported a steady quarter, with earnings driven by steady revenue growth, strong control on operating expenses, and lower provisions. The bank prudently used treasury gains from the 2% stake sale in ISEC to create further COVID provisions – taking the total COVIDrelated provisions to INR87.7b (1.3% of loans). Also, provision coverage strengthened further to ~82%.
>> Core operating performance (excluding treasury / stake sale gains) remained strong even as margins declined due to excess liquidity. The bank witnessed a sharp increase in fee income on a sequential basis, led by improving disbursements across retail segments (which are near preCOVID levels). We increase our estimates by 16%/10% for FY21/FY22, factoring in moderation in credit cost. Maintain Buy.
>> ICICI Bank (ICICIBC) reported a steady quarter, with earnings driven by steady revenue growth, strong control on operating expenses, and lower provisions. The bank prudently used treasury gains from the 2% stake sale in ISEC to create further COVID provisions – taking the total COVIDrelated provisions to INR87.7b (1.3% of loans). Also, provision coverage strengthened further to ~82%.
>> Core operating performance (excluding treasury / stake sale gains) remained strong even as margins declined due to excess liquidity. The bank witnessed a sharp increase in fee income on a sequential basis, led by improving disbursements across retail segments (which are near preCOVID levels). We increase our estimates by 16%/10% for FY21/FY22, factoring in moderation in credit cost. Maintain Buy.
8:57 AM![]()
BROKERAGE VIEW :: MOFSL on RIL
CMP: Rs 2,054 | TP: Rs 2,240 (+8%) | Reco: Buy
>> Conso. Sep’20 debt stands at INR2,793b and cash & equivalent at Rs 1,857b. The company has received INR302.1b in 3QFY20’td and considering balance commitments of Rs 735.9b, ceteris paribus, the company stands net cash at Rs 102b.
>> Conso. Sep’20 debt stands at INR2,793b and cash & equivalent at Rs 1,857b. The company has received INR302.1b in 3QFY20’td and considering balance commitments of Rs 735.9b, ceteris paribus, the company stands net cash at Rs 102b.
>> Jio Platforms Ltd – RJio’s holding company is keen to replicate its success in Wireless in other business streams. With aggressive plans and product launches in place, Jio Platforms is creating multiple monetization opportunities in the Digital space. Thus, we assign an EV/EBITDA multiple of 18x on Sep’22E EBITDA to arrive at TP of Rs 1,354 (INR1,125 earlier), factoring in the recent 34% stake sale.
>> We value Reliance Retail’s core business at 31x Sep’22E EV/EBITDA and petroretail/connectivity at Sept’22E 4x EV/EBITDA to arrive at Enterprise Value of
>> We value Reliance Retail’s core business at 31x Sep’22E EV/EBITDA and petroretail/connectivity at Sept’22E 4x EV/EBITDA to arrive at Enterprise Value of
Rs 4.4t and Target Price of Rs 683. Reliance Retail’s value in RIL share comes to Rs 627 (for its 92% stake). Our premium valuation underscores Reliance Retail’s aggressive footprint addition and the recent JioMart-led online opportunity, which could offer huge growth potential over time.
>> Using SOTP, we value the Refining and Petrochemical segment at 7.5x to arrive at a valuation of INR713/share for standalone. We ascribe an equity valuation of
>> Using SOTP, we value the Refining and Petrochemical segment at 7.5x to arrive at a valuation of INR713/share for standalone. We ascribe an equity valuation of
INR900/share to RJio and Rs 627/share to Reliance Retail. Reiterate Buy, with Target Price of Rs 2,240/share
8:57 AM
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Stocks to watch out for
RIL: Mukesh Ambani-promoted Reliance Industries (RIL) on Friday reported a 15.1 per cent year-on-year decline in its consolidated net profit to Rs 9,567 crore for the September-ended quarter. Consolidated net revenue also dipped 25.7 per cent year-on-year to Rs 1.11 trillion because of weak performance in the refining, petrochemicals, and retail businesses.
ICICI Bank: Private sector lender ICICI Bank’s net profit (on a standalone basis), rose almost six times to Rs 4,251.3 crore in the quarter ended September 2020 (Q2FY21) on account of growth in net interest income (NII) and low tax burden. It had posted a net profit of Rs 654.9 crore in July-September 2019 (Q2FY20).
Earnings today: As many as 61 companies, including Bandhan Bank, HDFC, and NTPC, are slated to report their Q2 earnings today. READ MORE
8:51 AM![]()
'Nifty holding on to key levels despite volatility'
As we all know, the volatility increases ahead of any major event and due to any uncertainty and since, rising volatility mostly makes the market a bit nervous, we tend to see some correction. Fortunately, in our market the damage was no way closer to the major global markets. In the midst of all volatile and uncertain behavior, we managed to defend key levels on a closing basis. We have been consistently mentioning the key support zone around 11,660 – 11,600 and on Friday, the same got breached due to volatility on an intraday basis. READ MORE
8:50 AM
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Stock suggestions by Vaishali Parekh
BUY TATA MOTORS | CMP: Rs 132.65 | Target: Rs 145-148 | Stop Loss: Rs 125
The stock has made a decent base near 125 level and has currently improved the bias with momentum pick up. The RSI indicator is also indicating a reversal, making the chart look attractive. With the stock in a rising trend, we anticipate a decent rally in the coming days and suggest to buy and accumulate this stock for an upside target of Rs 145-148 levels, keeping the stop loss of Rs 125. READ MORE
8:41 AM
FII/FPI & DII trading activity on NSE, BSE and MSEI
8:39 AM
Rupee on Thursday
Alert: Currency markets were closed on Friday on account of Id-e-Milad
8:37 AM![]()
Oil prices slip 3% as Europe widens lockdowns
>> Oil prices fell more than 3% on Monday on worries a swathe of coronavirus lockdowns across Europe will weaken fuel demand, while traders braced for turbulence during the US presidential election week.
>> Brent crude for January was at $36.78 a barrel, down $1.16, or 3.1%, while US West Texas Intermediate fell $1.24, or 3.5%, to $34.55 a barrel. Brent fell as much as 5.8% and WTI as much as 6% in early trade, hitting their lowest levels since May.
(Source: Reuters)
>> Brent crude for January was at $36.78 a barrel, down $1.16, or 3.1%, while US West Texas Intermediate fell $1.24, or 3.5%, to $34.55 a barrel. Brent fell as much as 5.8% and WTI as much as 6% in early trade, hitting their lowest levels since May.
(Source: Reuters)
8:32 AM![]()
SGX Nifty update
>> At 8:31 am, the index was at 11,663.50 levels, up 70.50 points or 0.61 per cent.
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First Published: Nov 02 2020 | 7:55 AM IST
