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.
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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
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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.
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