Religare Morning Digest October 21, 2014 Nifty Outlook The equity benchmarks were seen opening with a strong upside gap on Monday and ended up by more than a percent at the end. Measures taken by the government in the past two days, like deregulating diesel prices and raising the cost of natural gas aided the sentiment. CNX Auto and Infra pivots gained maximum among sectoral indices at NSE, they settled 2% higher. IT index under performed broader market, and was the only sectoral pivot ending in red. Among Nifty-50 stocks, 41 ended in green. Extension of this rebound largely depends upon the global cues and prevailing earning season so participants should maintain cautious view. We believe the overall negative bias would only reverse if the Nifty sustain decisively above 7950 mark, otherwise profit taking will resume. Nifty VWAP Max Call Max Put 7925 8000 7800 Religare Super Ideas News Hero MotoCorp plans to invest over Rs 5,000 crore across the globe, including manufacturing plants at Colombia and Bangladesh and new facilities at Gujarat and Andhra Pradesh. NTPC commissioned a 110 kWp rooftop solar plant at its engineering office complex. Exide Industries announced a 6% rise in net profit in the July-September quarter to Rs. 125.76 crore. The company had posted a net profit of Rs. 118.63 crore in the July-September period of 2013-14 fiscal. Sectors to watch Derivative Ideas : Instrument NIFTY NOV 8200CE NIFTY NOV 7700 PE ADANIENT Scrip Buy/ Sell CMP Initiation Range SL Target Duration AUROPHARMA BUY 933.75 934 - 920 885 1020 3-5 Days BRITANNIA BUY 1360.05 1360 -1340 1290 1470 3-5 Days FII F &O (Rs. In Cr.) FII & DII activity (Rs. in Cr.) B/S Lot CMP SL TARGET Sector Name Outlook Category Amt MTD YTD S 50 37 47 20 BANKS stable FII - 1430.03 -449 79422 S 50 58 70 38 OIL&GAS stable DII 737.31 3048 12196 B 1000 454.20 443 467 IT stable Net B/S OI IDXFUTS 1455.01 298985 IDXOPT -192.17 1775639 STKFUTS 627.72 1228202 Results as on Oct 20, 2014: Biocon, Cairn, HDFC Bank, JSW Steel, PNB & Tata Coffee. Disclaimer: http://www.religareonline.com/research/Disclaimer/Disclaimer_RSL.html 1 Religare Morning Digest October 21, 2014 Short term Ideas : (15-30 Days) Derivatives Ideas : Scrip CMP Initiation Range SL Target FEDERALBNK 138.65 132 - 138 125 165 PRESTIGE 223.90 229-232 219 252 FEDERALBNK PRESTIGE NIFTY Futures is hovering around its weighted average price of around 7925 and selling seen in 7800 PE & 8000 CE. STRATEGY:Sell NIFTY NOV 8200 CE at 37 and sell 7700 PE at 58, total premium at 95, stop loss at 106, target 70 Remarks: Net maximum profit of Rs 1250 and net maximum loss of Rs 550. ADANIENT : Buy ADANIENT Oct. Future in range of Rs. 450-452 for a target price of Rs.467 with a Stop loss placed at Rs 443. Lot size: 1000 Remarks: Net maximum profit of Rs 16000 and net It has performed extremely well in past one year (Sep-13 till Sep-14) and is trading well above its long-term averages (100&200 EMA). It rallied from 45 till 130 plus levels during this period. The stock has rallied from 105 to 270 within a short time span of less than a year (from Aug 2013 to July 2014). It has retraced back till 61.80% retracement level from its all-time-highs (270 levels). It consolidated for three months between 110 -130 levels. Upside break form this range was witnessed on 13th Oct, 2014 which was backed by heavy volume. At current juncture - Stock is trading in a Pennant pattern on weekly charts with positive bias, and is likely to witness bullish breakout in coming sessions . Considering all these factors, it seems the stock is due for a fresh break towards higher levels. Disclaimer: http://www.religareonline.com/research/Disclaimer/Disclaimer_RSL.html maximum loss of Rs 8000 2 Religare Morning Digest October 21, 2014 Investment Ideas : Scrip CMP Recommendation Price Target Duration Scrip CMP Recommendation Price Target Duration WIPRO 556.40 583 - 600 700 6-12 month SHRIRAMCIT 1691.30 1679 - 1730 2000 6-12 month Wipro Ltd. Shriram City Union Finance Ltd. Wipro consolidated sales grew 16% to Rs 11245.50 crore on YoY basis for the quarter ended June 2014. Its net profit jumped 30% to Rs 2103.2 crore. On the back of strong wins and healthy deal pipeline the company expects growth rates to improve from 2Q onwards. Wipro signed many large deals recently. The recent deal wins should help to improve sequential growth rates from Sep'14 quarters and thereby lend visibility. Further a pickup in tech spending in the domestic IT market could aid revenue growth in H2FY15. Shriram City Union Finance has reported 9% increase in the net profit for the quarter ended June 2014. The net spreads of the company stood higher at 5.11% in the quarter ended June 2014 compared to 4.51% in the corresponding quarter last year. The AUM continued to decline, mainly driven by narrowing of gold loan book at end June 2014. However, the disbursements have surged 18% yoy to Rs 3842 crore in the quarter ended June 2014. The company remains focused on gold loan book, while proposes to raise its share in the overall loan book to 25% from existing 15%. The company expects 20-25% loan growth for non-gold loan portfolio for next two years. Disclaimer: http://www.religareonline.com/research/Disclaimer/Disclaimer_RSL.html 3
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