THE DAILY

THE DAILY

Date: 17 August 2021

The Daily Viewpoint

DOMESTIC INDICES

SENSEX

Close

55583

Points

145

% Change

0.26

NIFTY

16563

34

0.21

MIDCAP

22900

-41

-0.18

SMALL CAP

26206

-149

-0.57

SECTORAL INDICES

METAL

OIL & GAS

Close

21542

15890

Points

378

139

% Change

1.79

0.88

Finance

8127

19

0.23

Healthcare

IT

BANKEX

TECK

REALTY

POWER

CG

CD

AUTO

25870

32886

41045

14394

3136

2695

24153

36331

22610

-11

-66

-106

-48

-12

-16

-164

-261

-170

-0.04

-0.20

-0.26

-0.34

-0.38

-0.59

-0.67

-0.71

-0.75

BSE 200 GAINERS/LOSERS

GAINERS

APOLLOHOSP

AIAENG

%

7.06

4.34

LOSERS

IDEA

CADILAHC

%

-5.54

-4.78

TATASTEEL

3.96

GICRE

-4.10

BAJFINANCE

3.64

CROMPTON

-3.79

GMRINFRA

3.58

TATACOMM

-3.68

ADVANCE/DECLINES

ADVANCES

DECLINES

UNCHANGED

BSE

1166

2129

136

%

34

62

4

INSTITUTIONAL ACTIVITY

Rs Cr

FII

16/08/21

13/08/21

August Total

-1088

820

-1340 (prov.)

DII

506

150

4997 (prov.)

Page 2

Indian markets could open flat to mildly lower, in line with

mildly lower Asian markets today and mixed US markets on

Monday..¡­

US stocks ended at records Monday, with the S&P 500 booking its

biggest daily percentage comeback since March 25, despite

earlier losses tied to weaker-than-forecast Chinese economic

data and the Taliban takeover of Afghanistan.

The Dow recorded its biggest daily percentage comeback since

May 4 to end at a record, but the Nasdaq Composite closed

lower. Investors managed to shrug off new concerns about

China's economy, the coronavirus Delta variant and turmoil in

Afghanistan to largely drive stocks higher.

In the U.S., the New York Fed¡¯s Empire State business conditions

index in August lost nearly all of its record-setting gains from the

prior month. The headline general business conditions index fell

to 18.3 in August, from 43, the regional Fed bank said Monday.

Economists expected a reading of 30, according to Econoday.

Asian shares declined in early trade on Tuesday as growing

anxiety over the spike in the Delta variant of COVID-19 infections

and turmoil in Afghanistan eclipsed overnight strength on Wall

Street.

Nifty opened flat on Aug 16 and rose gradually to make an intra

day high at 1450Hrs. In the process it made another all time high

and is leading the Asian markets for the day. The high low range

of 109 points is the lowest in 10 days. At close, the Nifty was up

34 points or 0.21% to 16563. This was the third consecutive rise

for the Nifty.

Advance decline ratio continued to be weak. This along with

lower-than-recent-average volumes on Aug 16 suggests that

action is concentrated in a few scrips. Nifty could continue its

gradual grind upwards, while the broader market continues to

see rotational profit booking.

WPI inflation eases to 11.16% in July; food, crude prices soften

The wholesale price-based inflation softened for the second

straight month to 11.16 percent in July on cheaper food items,

even though prices of manufactured goods and crude oil

hardened. However, WPI inflation remained in double digit for

the third consecutive month in July, mainly due to a low base of

last year. WPI inflation was (-) 0.25 percent, in July 2020.

Aramco Is in Advanced Talks on up to $25 Billion Reliance Deal

Saudi Aramco is in advanced talks to acquire a roughly 20% stake

in Reliance Industries Ltd's oil refining and chemicals business for

about $20 billion to $25 billion in Aramco's shares. An agreement

could be reached as soon as the coming weeks.

The Daily Viewpoint

GLOBAL INDICES

DOW JONES

S & P 500

NASDAQ

FTSE

CAC

DAX

NIKKEI

SHANGHAI

HANG SENG

BOVESPA

Close

35625

4480

14794

7154

6839

15926

27541

3521

26166

119180

Points

110.02

11.66

-29.10

-64.73

-57.27

-51.71

17.31

3.88

-15.46

-2014.00

% Chg

0.31

0.26

-0.20

-0.90

-0.83

-0.32

0.06

0.11

-0.06

-1.66

EXCHANGE RATES

USD/INR

EURO/USD

USD/GBP

USD/JPY

Value

74.1

% Change

0.20

1.177

-0.03

1.383

-0.15

109.2

-0.01

COMMODITIES

Gold ($ / Oz)

Value

1787.9

%

-0.11

Silver ($ / Oz)

23.8

0.24

Crude Oil Futures

Brent Oil ($ / Barrel)

67.3

0.30

69.7

0.26

BOND YIELD

IND10 Yr Bond Yield

Value %

6.241

Chg bps

-

ADR

Dr Reddys Labs

HDFC Bank

ICICI Bank

Tata Motors

Wipro

Vedanta Ltd

INFOSYS

Page 3

Value $

62.7

%

-0.05

75.2

19.1

20.2

-1.78

-1.45

-1.37

8.85

-0.11

17.85

1.25

23.40

-0.97

Petronet aims to extend long-term LNG buy deal with Qatar

Petronet expects to extend its long-term deal to purchase

liquefied natural gas (LNG) from Qatar beyond 2028. Petronet has

a deal to buy 7.5 million tonnes per year (mtpa) of LNG from

Qatar under a long-term deal expiring in 2028. Negotiations for

the extension of the contract under new terms and conditions

will begin in 2023.

India's July palm oil imports dip over 43% in July

India's palm oil imports fell 43.55% YoY to 4.65 lakh tonnes in July

due to higher domestic stocks, as per industry body Solvent

Extractors Association (SEA). The share of palm oil is more than

60%of the country's total vegetable oil imports. According to SEA,

imports were down when compared to last month due to higher

stock in the domestic market. Among soft oils, the import of

soyabean oil declined to 3.79 lakh tonne in July, from 4.84 lakh

tonne in the same period last year. Similarly, the shipment of

sunflower oil fell to 71,838 tonne from 2.08 lakh tonne. As on

August 1, there was a total edible oil stock of 16.95 lakh tonne,

out of which 11.10 lakh tonne is estimated to be in the pipeline.

Rs 3.9 lakh Cr alcohol beverage market to grow at 6.8 pc: ICRIER

India is one of the fastest growing alcoholic beverages markets

globally with an estimated market size of 52.5 billion dollars

(about Rs 3.9 lakh Cr), as per Indian Council for Research on

International Economic Relations (ICRIER). The market is

expected to grow at a CAGR of 6.8% till 2023. ICRIER said over

70%of the growth in alcoholic beverages consumption in India in

the next decade will be driven by the lower middle and upper

middle-income groups, and there is a growing trend towards

product premiumisation. The number of people

consuming alcohol increased from 21.9 Cr in 2005 to 29.3 Cr in

2018 and is projected to increase to 38.6 Cr by 2030. The share of

the upper-middle income group in alcohol consumption has

increased steadily from 7% to 21% and is expected to increase to

44% by 2030. The governance and pricing models for alcoholic

beverages vary widely across the states. The states, through their

excise policies, control the entire supply chain of alcoholic

beverages from manufacturing and distribution to registration

and retail. ICRIER said there are frequent and ad-hoc changes in

these policies, creating uncertainty and preventing

manufacturers/distillers from planning their investment. Hence

there is a need for adopting clear and predictable policies,

developing data-driven models and technology interventions.

HDFC Bank plans to raise funds via AT-1 bonds from overseas

market

HDFC Bank plans to raise capital by additional tier- I (AT1) bonds

in the overseas market to fund its business growth. The bank is

expected to raise up to USD 1 billion from these dollar

denominated bonds. Earlier in April, the bank had informed that

it is planning to raise up Rs 50,000 crore during the next 12

months through issuing bonds.

The Daily Viewpoint

Suven Life Sciences announced phase 3 clinical trial of SUVN-502 (Masupirdine)

Suven Life Sciences announced that NCE SUVN-502 (Masupirdine), a potent, selective, brain penetrant and orally active,

novel chemical entity has planned initiation of global Phase 3 clinical trial for the treatment of agitation and aggression

in Alzheimer¡¯s type dementias with expected enrollment of patients from middle of Sep-2021.

This multi-center study (sites in the US and Europe) comprising about 387 patients is likely to be completed in about 36

months and the topline result expected by the end of year 2024. ¡°Progression of SUVN-502 (Masupirdine) into Phase 3

clinical development is a significant achievement and milestone in enhancing our clinical pipeline.

Our lead molecules address niche areas of cognitive impairment associated with neurodegenerative disorders¡±, said

Venkat Jasti, CEO of Suven Life Sciences. SUVN-502 (Masupirdine), a lead clinical candidate having undergone phase 2

study on 564 patients for moderate Alzheimer¡¯s disease without meeting primary end point. After an in-depth analysis

of the data and intense dialogue with key opinion leaders, we have planned a new Clinical Trial for the treatment of

Agitation and aggression in Alzheimer's type dementias.

Lupin received tentative US FDA approval for Brivaracetam Tablets

Lupin announced that it has received tentative approval from the US FDA for its Abbreviated New Drug Application

(ANDA) Brivaracetam Tablets, 10 mg, 25 mg, 50 mg, 75 mg, and 100 mg, to market a generic equivalent of Briviact

Tablets of UCB Inc. This product will be manufactured at Nagpur facility in India. Brivaracetam Tablets are indicated for

the treatment of partial-onset seizures in patients four years of age and older. Brivaracetam Tablets had estimated

annual sales of US$ 311 million in the US (IQVIA MAT June 2021).

Adani Group acquires MBCPNL portfolio from Sadbhav Infra for ?1,680 cr

Adani Road Transport Ltd (ARTL), a wholly-owned subsidiary of Adani Enterprises Ltd (AEL), on Monday announced that

it will be acquiring Maharashtra Border Check Post Network Ltd (MBCPNL), a subsidiary of Sadbhav Infrastructure

Project Limited (SIPL) at an enterprise value of ?1,680 crore. The gateway connects Maharashtra with 6 neighbouring

states, will cover over 20% of the commercial road traffic in India. It has 24 integrated checkposts with exclusive service

fee collection rights from commercial vehicles for all key traffic routes in and out of Maharashtra.

Important news/developments to influence markets

? The wholesale price inflation rate in India eased to 11.16 percent year-on-year in July 2021, from 12.07 percent in

the previous month.

? India trade deficit was revised lower to USD 10.97 billion in July of 2021 from a preliminary of USD 11.23 billion.

However, the trade gap more than doubled from USD 4.83 billion a year earlier, as imports jumped to USD 46.4

billion and exports surged to a record USD 35.4 billion.

? Wholesale prices in Germany jumped 11.3 percent year-on-year in July of 2021, the highest rise since October 1974

after the first oil crisis, following a 10.7 percent gain in June.

? The Eurozone trade surplus narrowed to EUR 18.1 billion in June 2021, from EUR 20.0 billion in the same period last

year, amid a global demand recovery as the world economy continued to re-open. Exports rose 23.8 percent,

Imports were up at a faster 28.2 percent.

? The Gross Domestic Product (GDP) in Japan expanded 7.50 percent in the second quarter of 2021 over the same

quarter of the previous year.

? Industrial Production in Japan increased 23 percent in June of 2021 over the same month in the previous year.

? Asking prices for houses in Britain slipped over the past month for the first time this year. Real estate website

Rightmove said asking prices fell by 0.3% in its August survey after a 0.7% increase in July.

? The New York Federal Reserve said on Monday its barometer of manufacturing business activity in New York State

declined more than expected in August. The regional Fed¡¯s ¡°Empire State¡± index on current business conditions fell

around 25 points to 18.3.

Page 4

The Daily Viewpoint

Daily Technical View on Nifty

Observation: Markets ended with nominal gains on

Monday. The Nifty finally gained 33.95 points or 0.21%

to close at 16,563.05.

Broad market indices like the BSE Mid Cap and Small

Cap indices ended lower, thereby under performing

the Sensex/Nifty. Market breadth was negative on the

BSE/NSE.

Zooming into the 60 minute chart, we can see that the

Nifty traded in a range for a major part of the session.

The index opened on a positive note and gradually

rose through the day. In the process, the Nifty closed

at a new life high.

Nifty

View for

1-2 days

Reversal

7-Day

View

Reversal

16563.05

Bearish

16590

Bullish

16162

Target

16500

Nifty ¨C Intraday 15 min. chart

However, selling was seen in the last half an hour of

trade and led to the Nifty breaking its intraday

supports and closing below the 20 period MA on the

15 min chart. This could lead to some weakness in the

very near term.

On the daily chart, the Nifty continues to hold above a

rising trend line that has held the important lows of

the last few months. This implies that the index

remains in an intermediate uptrend. The index also

continues to trade above the 20 and 50 day SMA,

which gives further evidence of an uptrend.

And recently, Nifty has broken out of the 15451-15962

trading range, which is an encouraging signal for the

uptrend to continue. Upside target implications are at

17000. Crucial supports to watch for a short term

trend reversal are at 16162.

Conclusion: While Nifty moved higher on Monday,

selling was seen in the last half an hour of trade and

led to the Nifty breaking its intraday supports and

closing below the 20 period MA on the 15 min chart.

This could lead to some weakness in the very near

term.

On the larger daily timeframe, Nifty has broken out of

the 15451-15962 trading range and also trades above

the 20 and 50 day SMA, which gives further evidence

of the uptrend to continue towards the 17000 levels.

Short term trend reversal levels are at 16162.

Page 5

Nifty ¨C Daily Timeframe chart

Target

17000

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