Futures –May Series

Nifty

• Nifty futures closed trading at 11,418.6, premium of 59 points versus 44 points.
• Nifty open interest up 2 percent adds 3.2 lakh shares in open interest.

Bank Nifty

• Bank Nifty futures closed trading at 29,145.7, premium of 151 points versus 130 points.
• Bank Nifty open interest down 1 percent sheds 18,000 shares in open interest.

Options

• Nifty PCR at 1.03 versus 1.13 (across all series)

Nifty Weekly Expiry 9 May

• Max open interest on call side at 11,500 (27.1 lakh shares)
• Max open interest at Put side at 11,400 (10.3 lakh shares)
• Max open interest addition seen at 11,400 Call (+21 lakh shares), 11,500 Call (+18 lakh shares), 11,450 Call(+14.9 lakh shares)
• Max open interest shedding seen at 11,800 Call (-7.7 lakh shares), 11,500 Put (-6.6 lakh shares), 11,700 Put (-6 lakh shares)

Nifty Monthly Expiry 30 May

• Max open interest on call side at 12,000 (16 lakh shares)
• Max open interest on Put side at 11,000 (24.6 lakh shares)

On Titan

CLSA

• Maintained ‘Outperform’; hiked price target to Rs 1,225 from Rs 1,100.
• March quarter were impacted by one-offs – inventory valuation hit and ex-gratia pay-outs to employees.
• Jewellery: strong growth, record margin and positive outlook.
• Mixed performance for other segments.

JPMorgan

• Maintained ‘Overweight’ with a price target of Rs 1,200.
• Good March quarter; positive outlook and start to 2019-20.
• Jewelry – All round impressive performance.
• Titan remains one of the higher growth companies in our coverage universe.

UBS

• Maintained ‘Buy’ with a price target of Rs 1,250.
• Sustained strong performance in jewellery business.
• Optically depressed performance due to one-offs.
• Formalisation and wedding jewellery expansion continues.

On Shiram Transport

CLSA

• Maintained ‘Sell’ with a price target of Rs 960
• Growth moderates to sub-10 percent; expect normalisation towards the second half.
• Asset quality better but watch out for aggressive rural and business growth.
• Group reorganisation can be an overhang.

UBS

• Maintained ‘Buy’; cut price target to Rs 1,450 from Rs 1,550.
• Strong asset quality, weak loan growth.
• Management guiding for 18-20 percent AUM growth in the current financial year.
• Liquidity position comfortable; NIMs likely to improve going forward.

On Hindalco

JPMorgan

• Maintained ‘Overweight’ with a price target of Rs 330.
• Novelis continues to see strong performance across segments and markets.
• Continues to see strong demand across key markets.
• Expect more positive contract reset environment.
• Novelis expects to remain FCF positive even after large capex.

JM Financial

• Strong earnings delivery from Novelis; record high Ebitda driven by higher shipments.
• Robust performance at North America; other regions margin impacted by inventory reduction.
• Softening spreads to be offset by operating efficiencies.
• Expansion projects on track; Aleris acquisition to be completed by September 2019.

On Sectors

Morgan Stanley on Cement Sector

• Recent cement price hikes are sustaining well.
• May-19, the industry has raised prices further in the North and East.
• Costs still flattish vs. Q4 with potential upside risk from freight rates.
• Price hike reflects rising capacity utilisation and industry focus on profitability.

UBS on Indian Aviation

• InterGlobe Aviation: Upgraded to ‘Buy’ from ‘Sell’; hiked price target to Rs 1,940 from Rs 940.
• SpiceJet: Initiated ‘Buy’ with a price target of Rs 175.
• Industry dynamics turn more attractive.
• Significant international growth opportunity for domestic LCCs.
• Indigo: international growth not priced in.
• SpiceJet: cost structure improvement could drive further rerating.

CIMB on Indian Pharma

• U.S. generics pricing pressure eases but structural constraints remain.
• India’s branded generics market undergoing deep transformation.
• Indian policy makers to monitor pricing dynamics in U.S./China.
• Strong structural tailwinds from changing CDMO industry dynamics.
• Aurobindo Pharma: Initiated ‘Add’ with a price target of Rs 950.
• Dr. Reddy’s: Initiated ‘Add’ with a price target of Rs 3,260.
• IPCA Lab: Initiated ‘Add’ with a price target of Rs 1,190.
• Syngene International: Initiated ‘Add’ with a price target of Rs 680.
• Divi’s Lab: Initiated ‘Hold’ with a price target of Rs 1,850.

More Calls

HSBC on Alembic Pharma

• Maintained ‘Hold’; cut price target to Rs 575 from Rs 600.
• U.S. sales remain steady QoQ on new launches and few supply benefits; India sales remain sluggish.
• Upward trend to continue for operating costs on R&D pipeline and start-up costs.
• Look for progress in R&D efforts for U.S. market and recovery in India.

Morgan Stanley on Reliance Industries

• Downgraded to ‘Equal-weight’ from ‘Overweight’; hiked price target to Rs 1,349 from Rs 1,230.
• Expect RIL’s two-year earnings upswing to reverse.
• Rising glut in gas and polyster markets could also slow growth in 2020.
• Upside limited amid core business drags with no material capacity adds.

• Eclerx Services ex-date for share buyback.
• Prakash Industries price band revised to 20 percent.
• Eveready Industries price band revised to 5 percent.

• Future Lifestyle Fashions promoter Ryka Commercial Ventures created pledge of 27.5 lakh shares on May 7.
• Eros International Media promoter Eros Worldwide created pledge of 27.5 lakh shares from May 3-6.
• Emami promoters created pledge of 19.4 lakh shares from April 20-May 7.

• Zee Entertainment Enterprises: Catalyst Trusteeship sold 86 lakh shares or 0.9 percent equity to Rs 342.3 each.