Religare Morning Digest November 10, 2014 Nifty Outlook The benchmarks were seen ending flat for third consecutive session amid intraday volatility. Initially, the sentiments were on the negative side in reaction to the report by the Organization for Economic Cooperation and Development (OECD), where it lowered India's GDP growth forecast to 5.4% for this year from 5.7% projected earlier in September. But, the downside also remained limited; tracking continuous FIIs inflow. We believe markets are in normal consolidation phase which usually happen post an exceptional move. And, participants, especially those who wish to trade and invest fresh, can consider this as an opportunity to buy stocks from private banking, auto, finance, and midcap space. Nifty VWAP Max Call Max Put 8364 8500 8000 Religare Super Ideas News Arvind Ltd reported an increase of 3.56 per cent in its consolidated net profit to Rs. 93.26 crore for the second quarter ended on September 30, 2014. United Bank of India reported a net profit of Rs 43.80 crore in Q2 September 2014 compared with net loss of Rs 489.47 crore in Q2 September 2013. Scrip Buy/ Sell CMP Initiation Range SL Target Duration AMARAJABAT BUY 665.00 657 - 675 645 710 3-5 Days IDFC BUY 152.1 152 - 154 148 164 3-5 Days L&T reported 6.5 percent rise in its second quarter profit. Its net profit came in at 10.42 billion rupees for the three months to September 30, 2014. Sectors to watch Derivative Ideas Instrument B/S Lot CMP M&M 1250 CE B 250 31 M&M 1300 CE S 250 14 SL 8 TARGET 33 TRADE STATS FII & DII activity (Rs. in Cr.) Sector Name Outlook Category Amt MTD YTD BANKS STABLE FII 1030.85 1234 84923 IT STABLE DII -1204.63 3390 15176 OIL &GAS STABLE No. of contracts Turnover (in cr.) IDXFUTS 408063 10721 IDXOPT 4577115 99950 STKFUTS 832939 25787 Results as on Nov 7, 2014: Adani Ports, Adani Power, Apollo Tyres, Bharat Forge, Dena Bank, Godrej Ind, Ipca Labs, Jain Irrigation, Motherson Sumi, REC, TataChem Disclaimer: http://www.religareonline.com/research/Disclaimer/Disclaimer_RSL.html 1 Religare Morning Digest November 10, 2014 Short term Ideas : (15-30 Days) Derivatives Ideas : Scrip CMP Initiation Range Closing SL Target ENGINERSIN 270.15 272.50-280 257 310 PRESTIGE 248.30 245-252 235 285 M&M BUY M&M 1250 CE @ 31 AND SELL M&M 1300 CE @ 14, SPREAD @ RS 17, TARGET RS. 33 SL 8 LOT SIZE : 250 *Stoploss trailed Remarks: Net maximum profit of Rs 4000 and Engineers India Limited (ENGINERSIN) Prestige Estates Projects Ltd. (PRESTIGE)  It has rallied from 130 till 280 levels in just four months (Mar to Jun-14). Post that it is consolidating and trading in narrow range.   Steep run-up followed by consolidation phase has resulted in a “Flag pattern” on monthly chart. It is a continuation pattern indicating upside momentum to continue. The stock doubled (135-270) in five month period (Mar-14 till Jul-14). Post run-up, profit taking was witnessed and the stock price retraced 50% as per Fibonacci retracement levels.  It traded in range 210-240 in the month of Sep & Oct-14. This trading range was crossed on the higher side this month. This resulted in formation of “Flag pattern” on monthly chart.  All this suggest upside move to continue in the coming trading sessions.  The stock is due for break-out from the above mentioned pattern formed on the monthly chart. Hence, traders are advised to create fresh long positions at current levels. Disclaimer: http://www.religareonline.com/research/Disclaimer/Disclaimer_RSL.html net maximum loss of Rs 2250 2 Religare Morning Digest November 10, 2014 Investment Ideas Scrip CMP Recommendation Price Target Duration Scrip CMP Recommendation Price Target Duration DHFL 377.45 377-388 450 9-12 month OIL 603.60 603-622 750 9-12 month Dewan Housing Finance Ltd (DHFL) Oil India Ltd (OIL)   The price fall in crude oil to its lowest level since 2010 has come as a boon for state-owned oil and gas companies. A lower price not only leads to a drastic reduction in under-recoveries but also means working capital.  OIL is also looking at increasing its gas output from 2.6 billion cubic metres (bcm) to four bcm. This will boost its prospects in the longer run. Better realisation, higher gas prices and gradual ramp-up in production is likely to drive OIL's earnings. Dewan Housing Finance (DEWH) is the third largest housing finance company in India with 3.7% market share at the end of FY14. The Company is well positioned to capitalise on the growth opportunities in housing finance in tier II/III cities due to its core expertise in low and middle income (LMI) segment.  With favorable demographics, and increasing income levels with improved affordability the Indian mortgage finance industry has immense growth potential.  The company has also entered into life insurance business through a JV called DHFL Pramerica Life Insurance (DPLI), with US based Prudential Financial. Disclaimer: http://www.religareonline.com/research/Disclaimer/Disclaimer_RSL.html 3