9th Mar 2015- Monday ShareKhan Pre - Market Action Trading Ideas: Long/Short Ideas identified on basis of Fundamental Trigger/News/Events Watch List: List of stocks identified for trading with positive and negative bias for the day News/ Updates: Important News & Events (Both Domestic & Global) to keep you updated on all the happenings in markets. Index Ideas: Nifty and Bank Nifty view for the day. Currency: View on Currencies/ Important News and Updates Commodity: View on Gold/ Silver/Metals Trading Ideas CONCOR – (CMP 1482) FIIs/RFPIs can now invest up to 34 per cent under PIS in Container Corporation of India Ltd. Action to be taken: Long CONCOR Stop loss : 1460 Target : 1510-1530 TCS – (CMP 2696) In its pre-quarterly earnings interaction with the analyst community, the management of (TCS) stated that Q4FY2015E expect to be remain soft, in line with trend seen in Q4FY14 (1.9% qoq growth). Action to be taken: Short TCS Stop loss : 2730 Target :2650-2620 US sanctions on Oil Companies State-owned Oil and Natural Gas Corp. Ltd, Indian Oil Corp. Ltd and Oil India Ltd are among the five global companies named by the US administration for having energy ties with Iran, for which they can face sanctions by America. Action to be taken: Short ONGC (cmp 320) Stop loss :325.50 Target :315-310 Action to be taken: Short OIL(cmp 494) Stop loss : 501 Target :486-478 News Update •Suzlon Energy, the debt-laden wind-turbine manufacturer, is keen to sell its forging and foundry company. •REI Agro’s lenders to file CBI complaint for alleged cheating, fund misappropriation. •Tata, GMR, GVK among 8 in fray for Chennai Airport •HUL has increased the prices of some of toothpaste variants by Rs2-4 per 100/150 gm, while it has also increase the prices of some the skin care products – neutral for the stock News Update •The Reserve Bank of India has allowed banks to add the cost of registration and stamp duty in the total cost of a house valued at not more than 1 million rupees for determining the maximum loan the property can get. Positive for Banks like SBI, ICICI Bank and HDFC Bank while negative for housing finance companies unless NHB comes out with similar guidelines. •One of China’s fastest-growing conglomerates has pumped almost £100m into Thomas Cook, as it bought a 5 per cent stake in the world’s oldest travel company yesterday. News Update •USFDA approves first biosimilar in US; sentimentally positive for Dr Reddy’s Lab, Biocon, Cadila Health •Crompton Greaves said it has received three orders from Energy Efficiency Services Ltd (EESL) for the supply of four million LED (light emitting diode) lamps. •India’s largest realty firm DLF Ltd plans to monetise properties worth about Rs.15,000 crore under various projects to boost its cash flow and reduce debt. •IDBI Bank’s NSE 5% stake sale in next fiscal only News Update •Gulf Oil Lubricants has undertaken capacity expansion, that includes capex in a new plant and expansion of current allocation. With 75 per cent of its portfolio serving the automotive sector, Gulf Oil Lubricants' believes it has not yet tapped India’s 1,200 thousand metric tonnes (tmt) industrial oils market. With many industries coming up near Chennai, the company considers South India the key to growth, in the industrial as well as the automotive sectors. •ORISSA GOVT rejects OMDC 3 Minning leases. Negative for OMDC FTSE Rebalancing FTSE adds nine, but excludes four Indian firms to key Asia-Pac index (effective from March 20, 2015) Those included: Bosch, Aurobindo Pharmaceuticals, Yes Bank, Eicher Motors, Motherson Sumi Systems, Zee Entertainment Enterprises, Godrej Consumer Products, Shree Cements and Cadila Healthcare. Those excluded: NHPC, Reliance Communications, Reliance Power and Jindal Steel & Power Watch List Stocks With +ve Bias CMP Stocks With -ve Bias CMP DIVI’S LAB 1787 ACC 1710 DABUR 268 IGL 435 REC 353 CAIRN 241 Stock for Investment Stocks for Investment Stocks CMP L&T 1825 ABIRLANUVO 1688 Tata Motor - DVR 355 INFY 2251 ULTRATECH 3189 Actionable Ideas Actionable View point – Buy Goodluck Steel Tubes limited (CMP 81) •Good Luck Steel Tubes Ltd (GLSTL), a domestic manufacturer of steel tubes, forgings and structured products, is reaping the benefits of moving up the value chain and expanding its reach to newer industries like auto, railways and power (thermal and solar) among others •Given its improving product portfolio and customer base, the company has set out on a phased expansion in all the three business segments and is positioning itself for the pick-up in demand resulting a revival in the economy. It has already doubled its capacity in the auto tubes segment and the next phase of expansion is coming up in the metal structure division (transmission towers, boiler support and solar support structures) with a cumulative investment of close to Rs125 crore. The expansion of its forging unit is scheduled for commissioning in the first half of 2016. Actionable View point – Buy Goodluck Steel Tubes limited (CMP 81) After a muted financial performance over the recent years (OPM of 6.5-7.5% and negative earnings growth during FY2012-14), GLSTL is expected to register revenues and earnings CAGR of 15% and 39% respectively over FY2014- 17. Further, its OPM is expected to expand by 150-200 BPS (by FY2017) due to focus on high-margin products. At the current market price, the stock is trading at an attractive multiple of 3.2x its FY2017E EBITDA. We expect a 20-25% upside from the current levels, valuing the stock at 4.5x its FY2017E EBITDA (broadly in line with three years’ average EV/EBITDA of 4.8x). Key risk: Delay in pick-up in industrial cycle could put severe pressure on the balance sheet as the debt/equity ratio would balloon to 1.8:1 on the back of its expansion plans. Also, the margins are susceptible to volatility in line with sharp movements in raw material prices and consequently would affect its financial performance Global Update Global Indices and news •A robust US jobs report raised concern in markets that the Federal Reserve may raise interest rates sooner than previously thought, hammering U.S. stock and bond prices on Friday. •The US Labour Department said employers added 295,000 workers in February, beating a forecast of 240,000. It was the longest run of 200,000-plus increases since 1994. The jobless rate dropped to 5.5 percent from 5.7 percent in January. •US interest rates futures suggested traders had placed more bets the Fed might raise rates this summer, but they have not fully priced in such a move until late 2015. No major data to be announce in US markets today. Index Close Prev Close Change % Change Dow Jones 17857 18136 -279 -1.54% S&P 500 2071 2101 -30 -1.42% FTSE 6912 6961 -49 -0.71% Index View Technical view – Nifty – 8937 For today’s trading sessions we expect nifty to trade with Negative bias Short Term Target for Nifty is 8600 Crucial Resistance area for Nifty is 9062 Intraday levels: Support 8916 - 8790 All levels are spot levels Resistance 9017 – 9063 Technical view Bank Nifty- 19748 For today’s trading sessions we expect Bank Nifty to trade with Negative bias Crucial Resistance for Bank Nifty is at 20176 Intraday levels: Support 19390 – 19148 All levels are spot levels Resistance 20100 – 20300 Derivative Update Future’s Activity Nifty Nifty CoC OI PCR(OI) INDIA VIX Current Previous % change 8988.75 8956.35 0.36% 9.92% 6.27% 58.27% 27862025 28639700 -2.72% 0.98 0.96 2.08% -5.00% 14.44 15.20 Around 7.78 lakh shares were reduced in OI. Option’s Activity Strike 9000 C 9100 C 9200 C Most active index call option Curr. IV Curr. OI % Chg. OI % Chg. IV 13.17% 4316150 6.69% -4.40% 12.80% 3941175 7.32% -5.13% 12.60% 4233275 4.28% 0.00% Strike 8900 P 8800 P 8700 P Most active index Put option Curr. IV Curr. OI % Chg. OI % Chg. IV 13.73% 2476325 28.18% -6.08% 14.38% 4055200 0.59% -6.29% 14.93% 3412500 10.37% -6.25% 9000-9100-9200 CE has added marginal no of shares in OI whereas PE 8900-8800-8700 strike has added huge no of shares in OI in Thursday’s trade. Securities in Ban For Trade Date 09-Mar-2015 1. UNITECH FII : INDEX FUTURES INDEX OPTIONS STOCK FUTURES STOCK OPTIONS +76.05 -0.20 -153.59 +2.75 5-DAY VWAP Lower Range 9000 8900 SGX Nifty -97.00 points at 8892.00 (MAR Fut) Higher Range 9000 Currency Update Technical Overview Product Prvs Close Trend Action USDINR 62.47 Bullish Buy 62 62.76 EURINR 69.04 Bullish Buy 68.34 69.84 GBPINR 95.27 Bullish Buy 94.62 95.82 JPYINR 51.97 Bullish Buy 51.40 52.42 Support Resistance Commodity Update Commodity Technical Overview Previous Product Close Trend Action Support Resistance GOLD 26012 Range Bound Sell 25835 26337 SILVER 35972 Range Bound Sell 35769 36318 CRUDE 3138 Sideways Buy 3103 3191 COPPER 366 Sideways Buy 364.55 368.35 Thank You ! Disclaimer The views expressed herein are solely of the analyst, Any review, retransmission, or any other use is prohibited. The information contained herein is from publicly available data or other sources believed to be reliable. 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