Date: 9 April, 2020

HSL RESEARCH

The Daily Viewpoint

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DOMESTIC INDICES

Close Points % Change

SENSEX 29894 -173 -0.58

NIFTY 8749 -43 -0.49

MIDCAP 10976 205 1.90

SMALL CAP 9980 183 1.86

SECTORAL INDICES

Close Points % Change

Healthcare 14024 520 3.85

AUTO 11462 218 1.94

POWER 1395 22 1.59

CG 11032 115 1.05

OIL & GAS 10786 44 0.41

Finance 4273 -4 -0.10

BANKEX 21698 -171 -0.78

METAL 5863 -48 -0.81

TECK 6322 -87 -1.35

IT 12532 -184 -1.44

CD 19471 -288 -1.46

REALTY 1381 -23 -1.62

BSE 200 GAINERS/LOSERS

GAINERS % LOSERS %

BANDHANBNK 15.78 AMBUJACEM -5.88

CHOLAFIN 15.46 ACC -5.27

CUMMINSIND 14.51 FRETAIL -4.96

ALKEM 13.83 ICICIPRULI -4.69

M&MFIN 12.03 NMDC -4.63

ADVANCE/DECLINES

BSE %

ADVANCES 1495 59

DECLINES 858 34

UNCHANGED 161 6

INSTITUTIONAL ACTIVITY

Rs Cr 08/04/20 07/04/20 Apr Total

FII 1943 742 -7446(prov.)

MF -1758 423 7271(prov.)

Indian markets could open higher today following Asianmarkets that are up following US indices that endedhigher on Wednesday as investors hoped for more Fedaction.

U.S. stock markets jumped on Wednesday on hopefulsigns about the coronavirus outbreak in the United Stateswas close to a peak, with health insurers getting anadditional lift from Bernie Sanders’ decision to suspend hispresidential campaign. Sanders’ candidacy has keptinvestors on edge over the past few months over concernsthat his hostility to corporations and plans for universalhealth coverage could lead to increased regulatory costsand lower earnings growth.

The Federal Reserve on Wednesday released the minutesfrom last month’s two emergency meetings. Theseshowed officials grew increasingly concerned by theswiftness with which the pandemic was harming the U.S.economy and disrupting financial markets, promptingthem to take “forceful action.” The Fed viewed no majoreconomic recovery until next year as a worst-casescenario of the coronavirus outbreak. The Fed also frettedabout a lack of future ammunition to combat economicdistress.

U.S. exchanges on Friday will be closed in observance ofGood Friday, and those in Europe will also be closed forEaster Monday.

Asian shares were poised to track Wall Street’s gains onThursday on hopes the coronavirus pandemic is nearing apeak and that governments would roll out more stimulusmeasures.

The price of rice — a staple food in Asia — has hit 7-yearhighs due to the coronavirus outbreak as importers rushto stockpile the grain while exporters curb shipments.

Indian markets ended with modest losses on Wednesdayafter a positive morning session. Selling pressure from thehighs of the day pulled the main indices into negativeterritory. The Nifty lost 43.45 points or 0.49% to close at8,748.75.

The Daily Viewpoint

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GLOBAL INDICES

EXCHANGE RATES

Value % Change

USD/INR 75.9 0.20

EURO/USD 1.086 0.00

USD/GBP 1.239 0.05

USD/JPY 109.0 0.17

COMMODITIES

Value %

Gold ($ / Oz) 1682.7 -0.10

Silver ($ / Oz) 15.3 0.51

Crude Oil Futures 26.1 3.83

Brent Oil ($ / Barrel) 33.7 2.53

BOND YIELD

Value % Chg bps

IND10 Yr Bond Yield 6.44 +2

ADR

Value $ %

Dr Reddys Labs 48.19 8.07

HDFC Bank 38.84 4.92

ICICI Bank 8.64 4.10

Tata Motors 4.61 6.22

Wipro 3.13 1.29

Vedanta Ltd 3.91 9.83

INFOSYS 8.48 1.19

Close Points % Chg

DOW JONES 23434 779.71 3.44

S & P 500 2750 90.57 3.41

NASDAQ 8091 203.64 2.58

FTSE 5622 -82.42 -1.44

CAC 4443 4.49 0.10

DAX 10333 -24 -0.23

NIKKEI 225 19279 -74.24 -0.38

SHANGHAI COMP. 2825 10.12 0.36

HANG SENG 24196 225.63 0.94

BOVESPA 78625 2266.53 2.97

Technically, while the Nifty has corrected on Wednesday,the short term trend remains up. The Nifty could nowattempt to target the near term highs of 9039-9130 in thecoming sessions. Crucial supports to watch for resumptionof weakness are at 8658.

Short Term Technical OutlookAfter witnessing a sharp upside bounce on 7th April 2020,Nifty continued to show follow-through upmove in thebetter part of Wednesday’s session amidst a volatility, butclosed the day on a negative note.

A small positive candle was formed on Wednesday withlong upper shadow. Technically, this pattern couldindicate an emergence of selling pressure at the hurdle of9100 levels.

The Nifty is currently moving in an ascending type channelpattern and witnessed a profit booking from the upperchannel line around 9100 on Wednesday. We observe aformation of consistent higher highs in the last couple ofweeks.

Hence, there is a possibility of minor downward correctionin the short term, which is going to be a buy on dips. Thiscould coincide with the formation of higher bottomaround 8500-8550 levels. On the way up, a sustainablemove above 9100-9200 levels could push Nifty towardsthe next upside targets of around 9800-10,000 levels inthe next few weeks.

All Govt departments told to cut expenses by 60% amidcoronavirus outbreakThe Centre has begun to cut expenditure as the financialimpact of Covid-19 deepens.

Days after cutting the salaries and other allowances ofMPs and ministers, the government has passedinstructions to all departments to reduce theirexpenditure by as much as 60 per cent from their first-quarter spending plans.

The only exception is spending that deals with schemesrelated to the pandemic. Here too, there could be cuts fornon-essential stuff.

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Supreme Court orders free coronavirus testing at private labsThe Supreme Court has ordered private medical labs across the country to not charge patients for testing forCovid 19.

According to the Supreme Court, tests relating to Covid-19 whether in approved government laboratories orapproved private laboratories shall be free of cost.

The court added that corona virus tests must be carried out in NABL-accredited labs or any agenciesapproved by the WHO or ICMR.

The apex court also said that the issue of whether the labs will be reimbursed by the government will bedecided later.

Marico provides interim update for the quarterWith COVID-19 assuming the nature of a pandemic, the International businesses were affected. With many ofthe territories experiencing partial or complete lockdown in March, the International business recorded amid-single digit decline on a constant currency basis.

Revenue decline (both in India and International business), coupled with an unfavourable mix in the Indiabusiness, will translate into a modest decline in EBITDA in this quarter vs. the corresponding quarter last year.

Adani Gas cuts CNG, piped cooking gas pricesAdani Gas Ltd on Wednesday announced reduction in prices of compressed natural gas (CNG) and pipednatural gas (PNG) used for cooking in household kitchens, in line with a cut in raw material rates.

The reductions by Adani Gas and IGL follow the government cutting the price paid for natural gas producedfrom domestic fields by 26 per cent to USD 2.39 per million British thermal unit effective April 1.

Titan provides interim update for the quarterJewellery DivisionRevenue for the division declined 5% due to lost sales in the month of March. Revenue growth of Jan & Febmonth was at ~16%.

Watches & WearablesThe division grew 1% despite the significant loss of sales in the month of March. E-commerce was the fastestgrowing channel for both Q4 and full year.

Eye WearEye Wear Growth was difficult for the division in the quarter primarily due to decline in trade channel but thedisruption in March led to 20% decline in revenues for the quarter. Growth for Jan & Feb month was almostflat.

CaratLaneCaratLane’s growth in Jan and February were excellent at 48% but the disruption in March (Caratlane wasmore impacted as many of the stores were located in malls that were shut in early March) resulted in agrowth of 18% in the quarter.

The Daily Viewpoint

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Important news/developments to influence markets

Japan’s coincident index unexpectedly climbed to 95.8 in February, defying market consensus for a drop toa level of 95.1 and compared to a reading of 95.2 in the previous month.

Japan’s preliminary leading economic index unexpectedly rose to 92.1 in February, confounding marketanticipations for a fall to a level of 90.4.

Japan's core machinery orders unexpectedly rose in February, suggesting business investment remainedresilient even as companies braced for a major jolt to demand from the coronavirus pandemic. Japan'score machinery orders unexpectedly rose in February, suggesting business investment remained resilienteven as companies braced for a major jolt to demand from the coronavirus pandemic.

Japan’s service sector sentiment index plunged in March. their confidence about current economicconditions dropped to 14.2 from 27.4 in February.

US Market Composite Index, a measure of loan application volume, declined 17.9 percent on a seasonallyadjusted basis during the week ended April 3, and 18 percent lower on an unadjusted basis.

US The Refinance Index decreased 19 percent but was still 144 percent higher than the same week oneyear ago.

US Purchase mortgage applications declined by 12 percent on both an adjusted and an unadjusted basisfrom the week ended March 27.

U.S. crude oil imports and exports both decreased during the week ending April 3. U.S. crude oil importsaveraged 5.87 million barrels per day (b/d) last week, down by 173,000 b/d from the previous week, whilecrude oil exports averaged about 2.83 million b/d, down by about 322,000 b/d from the previous week.

The Daily Viewpoint

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DATA & EVENTS

OPEN TRADING CALLS

NOTE: ALL TRADING RECOMMENDATIONS GIVEN BY TEAM ARE ON REAL TIME BASIS. A TRADING RECOMMENDATIONSHOULD BE CONSIDERED CLOSED OR SQUARED OFF AS AND WHEN A STOPLOSS OR TARGET IS TOUCHED IN INTRADAYTRADING. DO NOT WAIT FOR TARGET ACHIEVED OR STOPLOSS MESSAGE TO CLOSE THE POSITIONS. REFER JAMMOON FORTIMELY ENTRY AND EXIT FROM RECOMMENDATIONS.

No. Reco Date Company Name Reco Cost SL Target

1. 07/04/20 SANOFI BUY 7040-6900 6800 7490

2 07/04/20 IOC APR FUTURE BUY 82.75-82 81.5 85.2

3. 08/04/20 JM FINANCIAL BUY 67.50-65 63.8 72

The Daily Viewpoint

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