Research Desk – Stock Broking
Morning Moves
October 22, 2014
March 21, 2014 Market Buzz
Global Indices
Global Indices
, 2012
SGX Nifty*
Dow Jones
NASDAQ
S&P 500
FTSE 100
Nikkei 225**
Hang Seng*
Source : Bloomberg
(Close)
(Pts)
Chg (%)
8022.00
16614.81
4419.48
1941.28
6372.33
15028.63
23264.64
72.00
215.14
103.41
37.27
105.26
224.35
176.06
0.90
1.31
2.40
1.96
1.68
1.52
0.76
*(as of 7:45:00 am) IST)
Sectoral Gainers/Losers
Sector
(Close)
(Pts)
Chg(
%)
S&P BSE REALTY
1480.04
37.88
2.63
S&P BSE POWER
2069.25
51.45
2.55
S&P BSE OIL & GAS
10664.1
-82.87
-0.77
13614.94
-17.38
-0.13
? BSE H C
S&P
Source: BSE India

HDFC Bank Q2 profit rises 20% on higher NII, other income

South Indian Bank Q2 profit slips 40% on higher provisions

PNB Q2 misses estimates; net rises 14%, asset quality weak

Govt orders merger of NSEL with Financial Technologies

UPL Q2 net profit rises 7% to Rs 166 cr

Indoco Remedies Q2 net profit up 40% at Rs 22.4 cr

President clears ordinance on e-auction of coal blocks

Govt likely to move GST Bill in Winter Session
Source: Bloomberg, leading business newspapers & websites
Market View
* CD consumer durables
Nifty : Top Gainers & Losers
Gainers
Losers
%Cg
JINDALSTEL
DLF
BHEL
GAIL
%Cg
7.34
4.91
4.80
4.78
PNB
ONGC
M&M
ULTRACEMCO
-2.89
-2.60
-2.53
-2.05
SSLT
4.19
COALINDIA
-1.73
Source : NSE India
Institutional Activity
Cash Market
Net
Value
Futures (FIIs)
Net
Value
FII
32.40
Index
398.52
DII
68.94
Stock
-152.92
Source: NSE India
Value (Rs in crs)
Intra-day Recommendations
Scrip Code
Act
Entry
SL
Tgt
TVSMOTORS
L
258-260
254
267
MINDTREE
L
1024-1027
1012
1060
BHEL
L
236-238
234
244
JUSTDIAL
S
1643-1648
1660
1620
IGL
S
410-412
414
404
Note: Act=Action: Entry=Entry; SL=Stop loss; Tgt=Target; L= Long;
Nifty firmly watching 8000 levels: Nifty closed at day’s high on Tuesday after a
rollercoaster ride. Nifty opened marginally higher (7879.4-7906.15) avoiding
Asia’s wide losses, moved higher and then slides to fill the gap in the first half of
the session, post European Markets opening nifty accelerated back to intraday
highs to end the session at day high after amid volatile move. Technically, Nifty is
swirling around its 50Days SMA, after getting a good pullback from its 100 Days
SMA last week. However going forward Nifty has minor resistance at its previous
swing highs of 7970-8000 levels. Crossing and Sustaining well above 8000 levels
can pave a fresh path towards its all time high, and on the down side, if Nifty
slides below 7850 can fill Monday’s gap (7819-7856) and can target back to 7750.
For the day, we recommend traders to go long in the Nifty around 7960-7965
levels with a strict stop loss placed below 7930 for potential upside targets of
7990-8000 levels.
Nifty Option: Buy Nifty Oct 7900 CE @ 80-81, Stop loss 65, Targets: 108-110; TF:
1-2 Days.
S= Short, BLW= Below.ABV=Above
1
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Research Desk – Stock Broking
DERIVATIVES INSIGHT
Nifty Tracker
Nifty Dynamics
Particulars
Current
Previous
% Chg
Nifty Spot
Near Fut
Mid Fut
Near Fut OI
Near Mid Fut OI
COC %
Mid COC %
Nifty PCR Vol
Nifty PCR OI
Market OI (Rs. cr.)
7927.75
7946.40
7989.35
1.68
0.18
61.47
20.37
1.00
0.91
205202
7879.40
7897.25
7944.00
1.62
0.14
8.27
7.87
0.94
0.87
200598
-0.66
0.62
0.57
3.44
23.19
53.20
12.49
6.90
4.09
2.30
Market COC (%)
10.48
9.94
5.43
India VIX
13.33
14.19
-6.06
Options Activity (Near Month)

Nifty Oct futures premium increased to 18.65 points from 17.85 points.
Futures added 6 lakh shares in OI.

Nifty Nov futures premium decreased to 61.60 points from 64.60 points.
Futures added nearly 3.3 lakh shares in OI.

India VIX ended at 13.33 while Nifty historical volatility increased to
16.61% from 16.98%.

Nifty put options added 17 lakh shares in open interest, while Nifty call
options shed 7 lakh shares.

Nifty call options average Implied Volatility (IV) increased to 29.37% from
16.98% and Nifty put options average (IV) decreased to 13.57% from
15.81%.

The average Market COC increased to 10.48%, with total market open
interest increased by 2.30% to Rs.2, 05,202 crore.
Positional Recommendations
BATAINDIA Fut: Buy @ 1251-1252 levels for targets of 1283-1285 levels
with stop loss at 1235: Bata India witnessed addition of long positions in
yesterday's trade. The stock shed nearly 11% of open interest during last
trading session. On the technical front, the stock has witnessed steep profit
booking from the highs of 1400 odd levels and is forming base around 12001220 levels. The stock may test 1283-1285 levels in short term perspective.
HEXAWARE Fut: Buy @ 188-189 levels for targets of 197-198 levels with
stop loss at 185: Hexaware witnessed closure of short positions in
yesterday's trade. The stock shed nearly 9% of open interest during last
trading session. On the technical front, the stock has taken support at 170
levels to the downside and is well set to rally towards the levels of 197-198 in
near term
AUROPHARMA Oct 960 CE: Aurobindo pharma 960 strike October call
option has open interest of 1, 58,500 shares. It shed 28,000 shares in
yesterday's trade with IVs at 38.24%. Long positions can be assumed in the
option between Rs.17-18 levels with strict stop loss at 12, for the targets of
26-27 levels.
Hybrid Strategy
Hybrid Strategy Payoff
Short strangle in INFY
Infy Oct 3750 PE with a total open interest of 70,625 shed 6,375 shares in last
trading session and 3800 CE with a total open interest of 365,750 with
addition of 59,875 shares in last session. We recommend to build a short
strangle strategy in Infosys.
Sell one lot INFY 3750 PE @ Rs 32.6 and Sell one lot INFY 3800 CE @
26.75.Max Profit : 7419; Max Loss : Unlimited beyond the BEPs; UBEP:
3860; LBEP: 3690
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Research Desk – Stock Broking
PIVOT TABLE
Scrip
CMP
S2
S1
Pivot
R1
R2
26575.65
7927.75
26324.28
7850.65
26449.96
7889.20
26532.69
7912.90
26658.37
7951.45
26741.10
7975.15
AXISBANK
BAJAJ-AUTO
423.05
2412.05
415.15
2374.12
419.10
2393.08
421.95
2414.02
425.90
2432.98
428.75
2453.92
BHARTIARTL
BHEL
410.65
238.45
398.48
223.82
404.57
231.13
409.78
235.32
415.87
242.63
421.08
246.82
CIPLA
COALINDIA
608.30
355.05
594.93
346.35
601.62
350.70
606.43
356.35
613.12
360.70
617.93
366.35
DRREDDY
GAIL
2964.30
481.10
2909.90
449.10
2937.10
465.10
2955.55
474.80
2982.75
490.80
3001.20
500.50
HDFC
HDFCBANK
1021.00
895.55
998.20
878.22
1009.60
886.88
1018.15
896.32
1029.55
904.98
1038.10
914.42
HEROMOTOCO
HINDALCO
2995.85
147.90
2889.95
144.77
2942.90
146.33
2972.95
148.62
3025.90
150.18
3055.95
152.47
HINDUNILVR
ICICIBANK
749.75
1582.10
721.72
1523.10
735.73
1552.60
744.87
1569.50
758.88
1599.00
768.02
1615.90
INFY
ITC
3772.95
351.35
3637.72
345.85
3705.33
348.60
3777.62
350.75
3845.23
353.50
3917.52
355.65
LT
M&M
1512.00
1229.05
1483.30
1199.15
1497.65
1214.10
1506.80
1237.05
1521.15
1252.00
1530.30
1274.95
MARUTI
NTPC
3075.70
147.55
2982.07
143.52
3028.88
145.53
3056.82
146.82
3103.63
148.83
3131.57
150.12
408.00
929.35
396.13
921.25
402.07
925.30
411.48
931.15
417.42
935.20
426.83
941.05
2584.15
248.50
2549.52
236.37
2566.83
242.43
2586.92
247.97
2604.23
254.03
2624.32
259.57
SUNPHARMA
TATAMOTORS
797.35
501.45
783.62
489.38
790.48
495.42
798.97
499.78
805.83
505.82
814.32
510.18
TATAPOWER
TATASTEEL
87.90
455.70
86.97
446.77
87.43
451.23
87.97
456.72
88.43
461.18
88.97
466.67
2433.40
573.30
2401.97
551.50
2417.68
562.40
2430.72
568.70
2446.43
579.60
2459.47
585.90
SENSEX
NIFTY
ONGC
RELIANCE
SBIN
SSLT
TCS
WIPRO
Corporate Actions
Company
Series
Ex-Date
Record Date
Purpose
CRISIL
EQ
22-Oct-14
27-Oct-14
Interim Dividend Rs.4/- Per Share
CROMPGREAV
EQ
22-Oct-14
27-Oct-14
Interim Dividend Re.0.40 Per Share
Results
ASIANPAINT
M&MFIN
HDFC
KOTAKBANK
L&TFH
WIPRO
MASTEK
HAVELLS
Sources: NSE India, BSE India, Bloomberg, Karvy Research, Leading Business Newspapers & Websites.
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Research Desk – Stock Broking
References
Page 1: FII= Foreign institutional investor, DII= Domestic institutional investor.
Page 2: Fut=Futures; COC=Cost of Carry; PCR = Put Call Ratio; Vol = Volume; OI = Open Interest; VIX = Volatility Index
Page 3: Pivot Point: Intra-day trading tool that applies stop loss based on NSE prices.
Pivot Point: This is a trigger point for intra-day buy/sell based on the price range of the previous day, based on NSE prices.
R1 (Resistance 1): First resistance over pivot point; R2 (Resistance 2): Second resistance over R1.
S1 (Support 1): First support below pivot point; S2 (Support 2): Second support below S1.
As per the tool, the trader should take a BUY position just above the pivot point; the stop loss should be kept at the pivot point and the first target
would be R1. If R1 is crossed, then R2 becomes the next target with the stop loss at R1.
Similarly, if the price falls below the pivot point, the trader should SELL, keeping the pivot point as the stop loss and the first target as S1. If S1 is
crossed, then S2 becomes the next target with the stop loss at S1.
Legends: BPP: Book part profits; BFP: Book full profits; AP: Average profits; EMA: Exponential moving average; SA: Simple average; RVS:
Revised stop loss level.
KARVY RESEARCH DESK – STOCK BROKING
JK Jain
Head Research
QUERIES & FEEDBACK
Toll-Free: 1800 425 8283
Email ID: [email protected]
Karvy Stock Broking Limited
“Karvy Centre”, Avenue-4, 2nd Floor, Road No: 10, Banjara Hills, Hyderabad – 500 034. India.
Tel: 91-40-23312454; Fax: 91-40-23311968
Disclaimer:
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