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NEWSLETTER
October 2014
Research Desk | Product of the Month | Customer Service | Currency Research Desk
Reliance My Gold Plan | Mutual Fund Desk | Monthly Economic Calendar | Rgurukool Corner
From the desk of Business Head
Bulls stop to catch their breath…
as Nifty conquers 8,000!
The Indian stockmarket continued to lead the gains tally when
compared to global stockmarkets with the Nifty far outpacing its
peers with 26% gains under its belt since the start of 2014. In fact,
since May 2014, the index has surged ~19% and thus September
month’s flat closing on month-on-month (m-o-m) basis (Nifty up
0.1%) should not be of any significant surprise and/or concern in
our view. What is also noteworthy is that notwithstanding the fact
that the Nifty had ended with a small 10-points loss on monthly
basis in April, this index has gained for the 8th consecutive month
in September. Further, the performance amongst the mid-cap and
the small-cap segments of the market was mixed with the CNX
Mid-cap index closing 2.7% higher last month while the CNX
Small-cap index ending lower by 1.2%. However, from their
September month highs (life-time highs for Nifty and CNX Midcap), these indices corrected ~2.6%, ~4.9% and ~8.2%
respectively. FIIs continued their buying into Indian equities with
net investment of ~Rs5,500cr last month, making it the 8th
consecutive month of FII inflows.
As for the global and domestic developments last month, slew of
disappointing data coming out from across global economies like
the Eurozone (weakening economic expansion), Germany
(manufacturing PMI lowest since June 2013), France (faltering
services PMI), US (slump in home sales) and China (below-thanexpected factory data) affected investor sentiments. Apart from
this, the resurfacing of geo-political tensions like the US-led airstrikes on ISIS in Syria and uncertainty over the Ukraine Pact,
which could once again escalate disturbance in the region also
made investors some what risk averse. On the domestic front,
bleak production pushed lower by weak consumption, restricted
the July 2014 IIP growth to a mere 0.5% yoy v/s 3.9% in June 2014.
However, the August 2014 WPI Inflation surprised positively with a
3.7% print, a near 5-year low. August 2014 CPI came in at the
expected 7.8% yoy. These were important economic data points
considering that the RBI Monetary Policy was due in end
September, wherein the Governor maintained status quo across all
rates. Lastly, Indian monsoon gained further ground and the overall
deficit at the end of the month was at ~12% compared to 22% the
previous month.
However, the notable event of the month was the Indian government
signing multi-billion dollar trade and investment deals with Japan and
China. Japan and China have shown their intention to pump in US$35bn
and US$20bn of FDI into India in the next 5-years (i.e. over
US$10bn/year), which is noteworthy considering that India received a
total of US$24.3bn in FY2014. These are substantial and much needed
investments for India, which will help it to achieve much higher economic
growth rates in the years to come and is a positive for the Indian
stockmarket.
Apart from various economic data points, both global and domestic, and
the geo-political situation, the key monitorables in the month ahead
include the 2QFY15 results by India Inc. and the considerably softened
crude oil prices. Any higher-than-expected deviation in these variables
would lead to volatility in the market. Further, considering that the
<US$1bn inflow last month was the lowest in the last 7-months, it has
made a section of the market to believe that the rally in Indian stocks
could be stalling, at least for the short-term. Thus, FII inflows need to be
closely watched. However, we believe that with the Nifty not having
made any significant move since the last 1-month (up 0.1%) and having
corrected ~4% during the month before recovering some ground (Nifty
now down 2.6% from peak), this period would qualify as some kind of
time/price consolidation. Further, within this period, many quality stocks
have corrected 5-15%, which have investment rationales in place. We
would advocate such corrections as opportunities to get into Indian
equities with a medium-to-long-term investment horizon.
Yours Sincerely
RM/363/07.07.2014
Dear Customer,
Rajeev R. Srivastava
Business Head
1
ISO 9001:2008: Reliance Securities Limited holds a certificate issued by BSI Management System India Pvt. Ltd to the effect that it operates a Quality Management System that complies with the requirements of
ISO 9001:2008 for providing equity & equity derivative trading services through online trading system. Investment in securities market is subject to market risk. Registered Office: Reliance Securities Limited, 11th
Floor, R-Tech IT Park, Western Express Highway, Goregaon (East), Mumbai - 400063. Tel: +91 22 3320 1212, CIN: U65990MH2005PLC154052. (NSE - INB / INF / INE 231234833; BSE - INB / INF / INE
011234839; AMFI ARN No.29889).
Research Desk
Technical View for the Month
NIFTY (7,964)
NIFTY closed September 2014 with a gain of just 10
points or 0.1% creating “Doji” on monthly charts.
During the month, NIFTY was able to register a high
of 8,180 mark before retracing back to neutral line.
Sectorally, CNX Pharma index emerged as the top
gainer with a gain of 7.6% followed by CNX Media
and IT that gained 7.2% and 5.8% respectively. On
the other hand, CNX Realty and Metal indices
emerged as top losers, down 7.9% and 7%
respectively. Broader market indices, like CNX Midcap and Small-cap, witnessed a mixed trend with
the former advancing by 2.7% while the later
declined 1.2%.
Technically, both RSI (14) and Stochastics (5,3)
have moved into the overbought zone from past
few months. In such scenario, participants are likely
to turn cautious before creating any fresh long
position and some consolidation/correction is
necessary before the market resumes its up move.
As mentioned in our earlier monthly newsletters, we re-iterate Accumulating quality stocks in case of any decline. Also the recent
consolidation of past two weeks has seen NIFTY creating good base at lower levels between 7,850 to 7,900. Below this, the next support lies
between levels of 7,600 to 7,550. While a close below 7,850 will be negative for the market in the short-term, but such short-term corrections
will provide very good opportunity for investors for fresh entry, especially, considering that the NIFTY is looking extremely positive over longterm time-frames. Notably, while 8,180-8,200 remains a crucial resistance for now, a breach of this could see the Nifty testing 8,400.
Technical Picks for the Month
LIC Housing (CMP: Rs321)
LIC Housing, after registering a high of Rs353 in May 2014,
retraced back to about Rs276 in August 2014 before bouncing
back. Stock continues to have good short-term support at lower
levels that includes majority of short term EMAs (exponential
moving average) between Rs300 and Rs320, combined with
horizontal trend line support at Rs300 and the trend line support at
Rs305. Technical indicator and oscillator too signify fresh move in
the stock with MACD (9,24) about to give positive cross-over, while
the RSI (14,9) above “50” mark signifies underlying strength in the
counter. Considering the above facts, we recommend creating long
positions in the stock at the current level of Rs321 and on dips with
a closing based stop loss of Rs299 for an up move towards Rs355
in the next 1 to 2 months.
SKS MICRO (CMP: Rs293)
SKS Micro is moving in positive momentum since August 2013,
and with the support of its 20-week Exponential Moving Average
had managed to climb to higher level of Rs349. Later, the stock
declined to its 20-week EMA amidst profit taking, but volume was
relatively low on the decline. We believe the rise will soon resume in
the stock, as past trend indicates that the stock witnesses a smart
up move of 40%-50% post taking support at its 20-week EMA.
Technical indicators RSI (14,9) & MACD (12,26,9) are also
positively poised above their neutral line and signaling strength in
the stock. Thus, long position can be initiated in the stock at current
level and on dips with a closing based stop loss of Rs260 for a
probable up move towards Rs350-380 in the next 1-2 months.
Note: Since the above recommendations are on BUY side, strict stop loss is strongly advised.
2
Research Desk
Fundamental / Technical Calls Performance
Strike Rates – September 2014
Note: As on September 30, 2014; Source: Refer Daily Market Lens / LIVE Market Calls data
Some Fundamental Call updates:
* Escorts up ~148% since our initial recommendation @ Rs62 in November 2012
^ Aurobindo Pharma up ~75% since our recommendation @ Rs494 in February 2014
** HCL Tech up ~314% since our initial recommendation @ Rs407 in October 2011
^^ Dr. Reddy's up over 100% since our initial recommendation @ Rs1,567 in July 2011
3
Research Desk
Reliance Securities Model Portfolio Performance
Since inception in October 2011, the Reliance Securities
Model Portfolio has outperformed its benchmark (Sensex)
by ~23%!
Thus, while the Sensex has given a return of ~68% in this
period, the R-Model Portfolio has given a return of ~91%,
which is ~34% higher (in absolute terms) than Sensex
returns.
* Current Model Portfolio
To know more visit: http://www.rsec.co.in/products-and-services/financial-Services/equity/rmodelportfolio
How to Invest online
Step 1: https://trade.rsec.co.in/
Step 2: Select Rofferings > Model Portfolio
Disclaimer at the last page
4
Product of the Month
To know more visit: http://www.rsec.co.in/why-us/research/r-model-portfolio
5
Customer Service Team
Customer Service Performance - E-mail
The number of client requests serviced in the month of Aug 14
% of client requests serviced within defined TAT
17559
99.35%
Customer Service Performance - Call
The number of Service Calls received in Aug,14 (CNT & Helpdesk)
% of Calls Answered
Awareness Tip
26066
Please do not share your
Account Details with any one
97%
Self Help Tips
Now you can apply for R-Model Portfolio from your online Trading account by following the below steps:
A. Login in New Insta plus.
B. Go to R-Offerings
C. Click on R-Model Portfolio
D. Select the Portfolio from Drop down under "Select Portfolio Type"
E. Scroll down check the script in Portfolio, Tick the option "Terms & Conditions"
F. Click on "R-INVEST" or "R-ALIGN" or "R-Sell" as per your preferences.
Thank you for being Very Polite and Helpful.
- Emmanuel Vincent August 19 ,2014
Thank you for being helpful.
- Aarti Sabarwal – July 02,2014
For more information:
www.rsec.co.in
022-3988 6000, 2581 6000
[email protected]
6
Currency Research Desk
Fundamental Outlook
Currency’s gains stalled by strong US dollar
Indian rupee posted a decline of 1.80% on a monthly basis. The currency fell at its lowest levels on
September 30, 2014 touching a low of 62.1675 versus dollar at the record low levels of August 2013.
The fall in the unit is mainly attributed by the strength in the US dollar against emerging market
currencies.
Expectations that the US Federal Reserve may bring forward the increase in its bench mark interest
rates before the estimated time period by the market participants, prompted by improving US
economy strengthened the US dollar. The officials raised its interest rates projections to 1.375% at the
end of 2015 as compared to the earlier June forecast of 1.125%.
The policy makers tapered its bond buying program to $15 billion, the seventh consecutive cut of $10 billion, thus ending its program in
October. The US economy grew at an annualized pace of 4.6% in the second quarter as compared to a contraction of 2.1% in the first quarter.
The Indian currency also dropped on account of the court ruling in which the nation’s coal mines was put up for auction. The Supreme Court
on September 24 canceled 214 of 218 coal mine permits and declaring the mines allocations as illegal. This resulted in the concerns that the
companies may have to source coal at a higher price from the overseas market.
Geopolitical tensions in the Middle East also weighed on the Indian currency.
In line with the market expectations , the Reserve bank of India (RBI) on September 30 in its fourth bi-monthly monetary policy review kept its
repo rate unchanged at 8%, the reverse repo was maintained at 7% and the cash reserve ratio (CRR) unchanged at 4%. The central bank
remained committed to the
disinflationary path and set a target for
CPI inflation at 8 per cent by January
2015 and 6 per cent by January 2016.
Some of the currency’s losing
streak snapped by the positive
domestic factors
Indian rupee erased some of the
losses during the month on positive
domestic indicators. Standard and
Poor's raised the outlook of the nation
from "BBB-minus" rating back to
"stable". Citing the strong mandate for
the Prime Minister Narendra Modi
government which would allow the
government to implement fiscal and
economic reforms, the Standard and
Poor's raised the nation’s credit rating
with a "stable" outlook.
India’s GDP rose 5.7% in April-June
quarter as compared to 4.6% in the
previous quarter. The country’s
infrastructure output expanded 2.7%
in July versus 7.3% in June.
Consumer price index (CPI) rose 7.8%
in August on year as compared to
7.96% in July. The trade deficit also
narrowed the most in a year thus
bringing some upside to the unit. The
deficit narrowed to $10.8 billion in
August on lower oil imports from $12.2
billion in July.
Indian market allured more capital
inflows as the domestic indices
increased and were also driven by
improving fundamentals. Overseas
investors poured Rs.5, 102.52 crores
in shares and Rs. 15,869.01 crores in
debt market during this month. Total FPI investments for 2014 stood at Rs. 83,437.66 crores in equities and Rs. 11 8,341.71 crores in debt.
7
Disclaimer: This report is prepared exclusively for Reliance Commodities. The information and opinions contained in the document have been compiled from sources believed to be reliable. Use of data and information contained in this report is at your own
risk. This document is not, and should not be construed as, an offer to sell or solicitation to buy any commodity. Reliance Commodities Ltd. do not accept responsibility for any losses or damages arising either directly or indirectly from the use of this document.
Currency Research Desk
Accommodative measures by other central bankers
The European Central Bank (ECB) unexpectedly cut its main refinancing rates to a record low 0.05% on September 4 and introduced
additional stimulus in order to spur the economic growth of region. The central bank President Mario Draghi renewed his stand to use
additional unconventional instruments if necessary. The bank signaled at least 700 billion Euros ($901 billion) in stimulus through buying of
privately owned securities. This resulted in Euro drifting lower to a two year low against dollar.
The Bank of Japan (BOJ) maintained its record stimulus unchanged at the conclusion of a two-day meeting in September. The central bank
kept its pledge to increase the monetary base at an annual pace of 60 trillion yen to 70 trillion yen.
BOJ would meet next on October 7 and would try to boost its inflation target of 2% by inducing 60 trillion yen ($550 billion) to 70 trillion yen a
year into the economy. The BOJ Governor on September 18 said that the central bank would not hesitate to adjust further monetary
measures if required.
Bank of England (BOE) too following the suit of other central bankers kept its interest rate at a record low on September 04 on persistent
weakness in the inflation and wage growth. The central bank kept its rate at 0.5%. The People's Bank of China (PBOC) joined its
counterparts by injecting 500 billion yuan ($81 billion) liquidity into the nations' largest banks in order to boost the economic growth of the
nation.
The US Federal Reserve policy makers signaled that the central bank is not increasing its rates anytime soon. But the central bank indicated
that the tightening of the policy may be at a faster rate once the economy shows further signs of improvement. The policy makers projected a
steeper rise in its benchmark interest rates to 1.375 at the end of 2015. They also reduced their monthly bond purchases by $10 billion to $15
billion and said that the asset-buying program would end in October.
Outlook
In the coming month, the Indian currency is expected to remain weak. The unit may take cues from strong US dollar supported by the
favorable data from the nation. Rising bets among the market participants that the US Federal Reserve may increase its bench mark interest
rates sooner than expected may weigh on the domestic currency. Additionally, rise in the US dollar against major emerging market currencies
may drag the Indian rupee lower. However, rise in the credit outlook by the rating agency may bring in confidence among the investors thus
bolstering growth in the capital inflows into the domestic market.
Technical Outlook:
The USDINR ended higher at 1.80% during the September month 2014. The pair may find immediate support near 61.20 to 61.50 levels,
which is the support level marked by downward trend line on the chart, which is also the breakout of downward pattern as depicted in the
above chart. If INR sustains below 60.50 levels thus to breaking the upward trendline could lead INR towards 59.80. Near resistance can be
seen at INR 63.10 then 63.50 levels.
As per technical chart, USDINR is still on upward
trend making higher tops and higher bottoms with a
further expected trading range of 60.50 to 63.50 on
weekly chart. And any further gains in Dollar could
push the rupee to 63.50-63.00 levels in this or
following months, according to inverse head and
shoulders chart pattern. Among technical
indicators, MACD sharply cross over upside
continuous which may see Indian rupee trading in
the sideways higher range of 61.50 -63.30 which in
turn may be a buying opportunity in medium to long
term. Overall, near term scenario looks subdued
between 63.60 to 61.30 levels per dollar and it is
advisable to buy USDINR on corrections at 61.5061.40 levels while aiming for 63.30 - 63.10 during
coming months.
Contrary to above view, any weekly close below
INR 60.00 could change the trend from bearish to
consolidation mode with downward bias that could push the pair towards INR 58.35 to 58.50 levels.
For more information:
www.rsec.co.in
022-3988 6000
Visit Our Branch
[email protected]
SMS <RSEC CD> to 53636
Disclaimer at the last page
7
Disclaimer: This report is prepared exclusively for Reliance Commodities. The information and opinions contained in the document have been compiled from sources believed to be reliable. Use of data and information contained in this report is at your own
risk. This document is not, and should not be construed as, an offer to sell or solicitation to buy any commodity. Reliance Commodities Ltd. do not accept responsibility for any losses or damages arising either directly or indirectly from the use of this document.
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8
Mutual Fund Desk
Mutual Funds Update:
Marked with outflows, mutual funds witnessed a subdued growth
this month. The industry assets under management (AUM) grew by
mere 0.6% to Rs 1,012,824 crores as against Rs 1,006,452 crores
in the month of July an increase of Rs 6,372 crores. The AUM had
first crossed the 1,000,000 crore mark in May post the rally in
market after Prime Minister Narendra Modi-led BJP government
came to power. It slipped in June but once again recouped in July
and August. The rise was mainly on account of inflows seen in the
equity category backed by a strong stock market.
Since bond prices and yield move in opposite directions, long-term
income and gilt funds that invest in these papers have taken a hit.
Which explains the significant redemption in these categories.
Equity funds have now emerged as a strong contributor to the
overall industry flows. Rising markets have improved investor
sentiment as investors are now flocking to invest in equity funds
making it the fifth consecutive month of inflows. Not only the flows
have come in existing schemes but the overall retail participation
has seen a surge which is a positive for the industry.
However for the month, mutual funds recorded net outflows of Rs
13,035 crores as against inflows of Rs 26,847 crores seen in the
last month. It was mainly the redemptions seen across debt
category segment which was responsible for this overall drop in
flows.
The Equity fund category alone witnessed a net inflow of Rs 5,217
crores as compared to Rs 10,815 crores in the previous month. The
category asset base grew by 6%. Similarly the ELSS and Balanced
fund categories too saw a surge in their assets as well inflows.
ELSS AUM grew by 5.3% with inflows of Rs 147 crores. Balanced
funds registered a growth of 6.6% coupled with inflows of Rs 448
crores.
Debt category which continues to dominate the fund industry was
seen hit by huge outflows this August. Outflows were seen across
all three debt segments for the month. With the rate cuts getting
postponed further, there is turmoil in the debt market. The yield on
10 year benchmark paper has moved up and so has the corporate
paper yields.
Recommended Mutual Fund Schemes
Equity Funds:
Scheme Name
Absolute
AUM(Cr.)
CAGR Returns (%)
Volatility (3 Years)
1 Month
3 Months
6 Months 1 Year
3 Years
5 Years
1 Year
3 Years
5 Years
Birla SL Frontline Equity Fund
6,564
5.83
9.01
32.28
50.96
22.41
15.50
18.18
1.18
0.35
ICICI Pru Focused BlueChip Eq Fund
7,274
6.34
9.57
30.85
47.97
21.09
16.99
14.96
0.96
0.41
914
8.96
11.68
38.63
62.21
23.01
14.21
20.14
1.24
0.24
3.76
6.57
25.96
39.94
16.61
10.28
2,043
9.51
13.57
39.10
66.00
22.57
16.23
19.74
1.24
0.24
15,813
8.74
11.55
45.64
76.18
22.51
18.08
23.18
1.41
0.15
ICICI Pru Dynamic Plan
5,056
6.45
8.89
30.64
53.80
22.75
17.38
18.30
1.12
0.38
Reliance Equity Opportunities Fund
8,105
11.65
13.87
43.38
72.63
26.12
22.50
20.51
1.19
0.39
5.28
8.03
30.37
45.73
16.40
10.46
Reliance Top 200 Fund
S&P BSE 100
Franklin India Flexi Cap Fund
HDFC Equity Fund
S&P BSE 500
HDFC Mid-Cap Opportunities Fund
6,862
12.05
17.25
53.48
95.79
28.40
25.26
23.96
1.34
0.43
DSPBR Micro-Cap Fund
1,277
15.01
27.19
70.68
123.59
29.58
26.08
31.47
1.68
0.25
ICICI Pru Value Discovery Fund
6,294
10.08
17.45
59.44
95.88
32.44
23.29
26.85
1.56
0.40
Data as on 29th
Nov 2013
Franklin
India
Smaller Cos Fund
1,123
13.67
24.76
64.80
112.87
36.34
24.86
29.19
1.80
0.45
11.02
11.92
50.25
77.11
16.23
10.61
S&P BSE Mid-Cap
Data as on 30th June 2014
9
Mutual Fund Desk
Debt Funds:
Scheme Name
Absolute
AUM(Cr.)
Birla SL Cash Plus
HDFC Cash Mgmt-Savings
CAGR
Average Maturity (Years)
1 Month
3 Months
6 Months
1 Year
3 Years
Average Maturity
Modified Duration
YTM
20,662
0.75
2.17
4.64
9.59
135.62
8.76
NA
0.10
6,285
0.75
2.15
4.55
9.42
9.35
8.66
0.08
0.08
0.74
2.17
4.65
9.73
8.88
Crisil Liquid Fund Index
Birla SL Dynamic Bond Fund
8,581
0.99
1.18
5.54
10.45
9.16
8.79
NA
6.18
Franklin India ST Income Plan
9,516
0.78
1.95
5.35
11.25
9.65
10.58
2.51
2.26
Crisil Short Term Bond Fund Index
0.82
2.09
5.02
10.45
8.94
ICICI Pru Regular Savings
4,550
0.98
1.99
5.34
11.19
9.01
10.70
2.33
1.83
Reliance Reg Savings Fund-Debt Plan
4,764
0.90
2.04
5.49
10.57
9.19
10.70
1.89
1.78
0.91
1.63
6.43
10.80
7.98
Crisil Composite Bond Fund Index
Data as on 15th Sept 2014
Recommended Model Portfolios by Mutual Fund Team
Scheme Theme
Mutual Fund Schemes
EQUITY
Aggressive %
Moderate%
Conservative%
75%
50%
25%
Reliance Equity Opportunities Fund
Diversified
15%
15%
5%
HDFC Equity Fund
Diversified
15%
10%
5%
Birla SL Frontline Equity Fund
Large cap
15%
10%
10%
ICICI Pru Focused Bluechip Fund
Large cap
10%
10%
5%
ICICI Pru Value Discovery Fund
Mid cap
10%
5%
Nil
HDFC Mid Cap Opportunity Fund
Mid cap
10%
Nil
Nil
25%
50%
75%
DEBT
Templeton India ST Income Fund
Short term income
Nil
10%
15%
Reliance RSF - Debt Plan
Long term income
5%
5%
15%
Medium Term Income
10%
10%
15%
Short term FMP
Nil
10%
15%
Liquid
5%
10%
10%
Gold Fund
5%
5%
5%
100%
100%
100%
Birla Sun Life Dynamic Bond Fund
1 Year FMP
HDFC Cash Mgmt Fund-Savings
Gold Fund
Total
Source: Morningstar, Ace MF
Disclaimer: This document is meant for the customers of Reliance Securities Limited only. In case you are a non resident, please note that you need to comply with the relevant local laws of the country of your residence, before
investing. Mutual Funds and securities investments are subject to market risks, and there is no assurance or guarantee that the objectives of the Scheme will be achieved. As with any investment in securities, the Net Asset Value
(NAV) of the Units issued by Mutual Fund Schemes can go up or down depending on the factors and forces affecting the securities market. There are no assurances or guarantees that the objectives of any of the mutual fund
schemes will be achieved. The investments may not be suited to all categories of investors. Please read the Scheme Information Document and Statement of Additional Information of the respective mutual fund carefully before
investing.
The views herein constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the readers. This information is meant for general reading purpose only and is not
meant to serve as a professional investment guide for the readers. This document has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Reliance
Securities Limited (RSL) or its directors, employees, affiliates or representatives do not assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such information.
Due care has been taken to ensure that the disclosures and opinions given fair and reasonable. No action has been solicited based upon the information provided herein, and the information is not intended to be an offer or
solicitation for the purchase or sale of any financial product or instrument. Recipients of this information should rely on information/data arising out of their own investigations. Readers are advised to seek independent
professional advice and arrive at an informed investment decision before making any investments.
None of the directors, employees, affiliates or representatives of RSL shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way whatsoever
from the information contained in this material. RSL, the directors, employees, affiliates or representatives of RSL, associate companies, affiliates, and representatives including persons involved in the preparation or issuance
of this material may from time to time, have long or short positions in, and buy or sell the securities thereof, of company(ies) / specific economic sectors / mutual funds, if mentioned herein.
For further information please contact:
Reliance Securities Limited, Registered Office: Reliance Securities Limited, 11th Floor, R-Tech IT Park, Western Express Highway, Goregaon (East), Mumbai - 400063. Tel: +91 22 3320 1212.
How to Invest online in Mutual Fund
Step 1: https://trade.rsec.co.in/
Step 2: Select Investment Offering > Mutual Fund > Choose a Fund of your choice
Disclaimer at the last page
For more information:
022-3988 6000
SMS <RSEC MF> to 53636
Visit Our Branch
[email protected]
10
Corporate Fixed Deposits
Corporate Fixed Deposits are Fixed Deposits placed by investors with companies for a fixed term carrying a prescribed rate of interest. The
companies in turn use these funds to fulfill their capital requirement from time to time.
Corporate FDs are attractive investment avenue for conservative investors who do not want to take the risk of vagaries of stock market.
Corporate FDs also offer higher interest rates than normal bank FDs.
However unlike Bank FDs your investment in Corporate FD is not guaranteed by Govt of India or RBI or by any government sponsored
agencies.
How to choose a good Corporate FD Scheme?
Ignore the un rated Company Deposit Schemes: Chose only AA+ and above rated FD issuing corporate .Within a given rating grade, choose
the company with a better reputation. It is better to make shorter deposit of around 1 year to 3 years check on the servicing standards of the
company before investing. Based on our research, we recommend the following Corporate FDs to suit your requirements.
Mahindra Finance Co. Ltd Fixed Deposit
Name of the Company
Minimum Amount
Senior Citizen
Credit Rating
Shriram Transport Finance Company Ltd (Shriram Unnati FD Scheme )
25,000
0.25
FAA+ & MAA+
Mahindra & Mahindra Finance Services Ltd
10,000
FAAA
0.25
25,000
50,000
(Interest rate %) ( Period in Months)
12
24
36-60
48-60
Frequency
9.25
9.75
10.75
Nil
Yearly
9.05
9.52
10.47
Nil
Half yearly
8.95
9.41
10.34
Nil
Quarterly
9.25
10.23
11.94
12.60 -13.32
Cumulative
12
18
24
36/48-60
Frequency
9.25
9.75
10.00
10.25/9.75
Cumulative
9.00
N/A
9.75
10.00/9.50
Half Yearly
8.90
N/A
9.65
9.90/9.40
Quarterly
How to Invest online in Corporate FDs
Step 1: https://trade.rsec.co.in/
Step 2: Select Investment Offering > Corporate FD > Choose a FD of your choice
Disclaimer at the last page
For more information:
022-3988 6000
SMS <RSEC MF> to 53636
Visit Our Branch
[email protected]
12
Monthly Economic Calendar
13
CORNER
Stock Support and Resistance Levels for Trading
Pivot Point
Have you ever thought how come the Nifty/Sensex/individual stock takes support at a point and resistance at another throughout the
day's trading?
We had observed a very key way of coming up with these supports & resistances are based on the Pivot Points.
A pivot point analysis is often used in conjunction with calculating support and resistance levels. In a pivot point analysis, the first support
and resistance levels are calculated by using the open, high, low, and close. Daily pivot points are the most commonly used, but weekly
and monthly pivot points are also available. Pivot points are displayed on charts with the price bars, and the horizontal lines.
Pivot points are used as support and resistance levels, and as areas where significant price movement should be expected (such as
reversals, or breakouts). There are several trading systems that use pivot points, so there are several different uses of pivot points, but in
general they are used as support and resistance levels.
A pivot point and the associated support and resistance levels are often turning points for the direction of price movement in a market. In
an up-trending market, the pivot point and the resistance levels may represent a ceiling level in price above which the uptrend is no
longer sustainable and a reversal may occur. In a declining market, a pivot point and the support levels may represent a low price level of
stability or a resistance to further decline.
If the market in the following period trades above the pivot point it is usually evaluated as a bullish sentiment, whereas trading below the
pivot point is seen as bearish.
Calculation Pivot Point :
P = (H + L + C) / 3.
H=previous day HighL=Previous day LowC=Previous day Closing
Example:
Support and resistance levels:·
R3 = High+2*(Pivot- Low)
·
R2 = Pivot + (R1-S1)
·
R1 = 2*pivot-Low
·
P(Pivot Point) = (H + L + C) / 3.
·
S1 =2*Pivot- High
·
S2 =Pivot-(R1-S1)
·
S3 =Low-2*(High-Pivot)
Underline
Nifty Futures
High
5678.25
Low
5643.6
Close
5669.85
R3
5719
R2
5699
R1
5684
PV
5664
S1
5650
S2
5629
S3
5615
Refer to the Pivot points how it has worked in below picture -
Hope this article has been useful… for further knowledge on the subject visit us at www.rgurukool.com
Visit us at –
http://www.rgurukool.com/Home.aspx
Register for our trainings at:
http://www.rgurukool.com/Registration.aspx
For more information:
022-3988 6000
SMS <RSEC RGURU> to 53636
Visit Our Branch
14
General Disclaimers
General Disclaimers: This document is meant for the customers of Reliance Securities Limited only. In case you are a non resident, please note that
you need to comply with the relevant local laws of the country of your residence, before investing. Mutual Funds and securities investments are
subject to market risks, and there is no assurance or guarantee that the objectives of the Scheme will be achieved. As with any investment in
securities, the Net Asset Value (NAV) of the Units issued by Mutual Fund Schemes can go up or down depending on the factors and forces affecting
the securities market. There are no assurances or guarantees that the objectives of any of the mutual fund schemes will be achieved. The
investments may not be suited to all categories of investors. Please read the Scheme Information Document and Statement of Additional Information
of the respective mutual fund carefully before investing.
The views herein constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the
readers. This information is meant for general reading purpose only and is not meant to serve as a professional investment guide for the readers.
This document has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable.
Reliance Securities Limited (RSL) or its directors, employees, affiliates or representatives do not assume any responsibility for, or warrant the
accuracy, completeness, adequacy and reliability of such information.
Due care has been taken to ensure that the disclosures and opinions given fair and reasonable. No action has been solicited based upon the
information provided herein, and the information is not intended to be an offer or solicitation for the purchase or sale of any financial product or
instrument. Recipients of this information should rely on information/data arising out of their own investigations. Readers are advised to seek
independent professional advice and arrive at an informed investment decision before making any investments.
None of the directors, employees, affiliates or representatives of RSL shall be liable for any direct, indirect, special, incidental, consequential, punitive
or exemplary damages, including lost profits arising in any way whatsoever from the information contained in this material. RSL, the directors,
employees, affiliates or representatives of RSL, associate companies, affiliates, and representatives including persons involved in the preparation or
issuance of this material may from time to time, have long or short positions in, and buy or sell the securities thereof, of company(ies) / specific
economic sectors / mutual funds, if mentioned herein.
Risks: Trading and investment in securities are subject market risks. There are no assurances or guarantees that the objectives of any of trading /
investment in securities will be achieved. The trades/ investments referred to herein may not be suitable to all categories of traders/investors. The names of
securities mentioned herein do not in any manner indicate their prospects or returns. The value securities referred to herein may be adversely affected by
the performance or otherwise of the respective issuer companies, changes in the market conditions, micro and macro factors and forces affecting capital
markets like interest rate risk, credit risk, liquidity risk and reinvestment risk. Derivative products may also be affected by various risks including but not
limited to counter party risk, market risk, valuation risk, liquidity risk and other risks. Besides the price of the underlying asset, volatility, tenor and interest
rates may affect the pricing of derivatives.
Disclaimers in respect of jurisdiction: The possession, circulation and/or distribution of this Report may be restricted or regulated in certain jurisdictions
by appropriate laws. No action has been or will be taken by RSL in any jurisdiction (other than India), where any action for such purpose(s) is required.
Accordingly, this Report shall not be possessed, circulated and/or distributed in any such country or jurisdiction unless such action is in compliance with all
applicable laws and regulations of such country or jurisdiction. RSL requires such recipient to inform himself about and to observe any restrictions at his
own expense, without any liability to RSL. Any dispute arising out of this Report shall be subject to the exclusive jurisdiction of the Courts in India.
Disclosure of Interest: The research analysts who have prepared this Report hereby certify that the views /opinions expressed in this Report are their
personal independent views/opinions in respect of the securities and their respective issuers. Neither RSL nor the research analysts did have any known
direct /indirect conflict of interest including any long/short position(s) in any specific security on which views/opinions have been made, during the
preparation of this Report.
Copyright: The copyright in this Report belongs exclusively to RSL. This Report shall only be read by those persons to whom it has been delivered. No
reprinting, reproduction, copying, distribution of this Report in any manner whatsoever, in whole or in part, is permitted without the prior express written
consent of RSL.
Important These disclaimers, risks and other disclosures must be read in conjunction with the information / opinions / views of which they form part of.
ISO 9001:2008: Reliance Securities Limited holds a certificate issued by BSI Management System India Pvt. Ltd to the effect that it operates a Quality
Management System that complies with the requirements of ISO 9001:2008 for providing equity & equity derivative trading services through online trading
system. Investment in securities market is subject to market risk. Registered Office: Reliance Securities Limited, 11th Floor, R-Tech IT Park, Western
Express Highway, Goregaon (East), Mumbai - 400063. Tel: +91 22 3320 1212, CIN: U65990MH2005PLC154052. (NSE - INB / INF / INE 231234833; BSE
- INB / INF / INE 011234839; AMFI ARN No.29889).
15