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Friday, 24th April, 2015
Index Levels :
INDEX
NIFTY
(8305.25)
SENSEX
(27437.94)
Market Trend (Nifty):
SUPPORTS
Period
RESISTANCES
8270 / 8240 /
Short Term Trend*
8350 / 8460 / 8560
8150 / 8070
27350 / 27250 /
27600 / 27950 /
27130 / 26800
28230
Current Trend
Medium Term*
DOWN
UP ABOVE
8700
DOWN
UP ABOVE
8850
Long Term Trend*
#as
Imtiaz Merchant’s Best Picks:
RELIANCE INDUSTRIES
BHARAT FORGE
HCL TECHNOLOGIES
UP
DOWN BELOW
7300
*Trend Reversal Point (TRP) is based on close prices.
on 24th April 2015
COMPANY NAME
Trend Reversal Point
(TRP)Nifty close basis
SIZE
LARGE
CAP
LARGE
CAP
LARGE
CAP
Indices:
SECTOR
OIL & GAS
CAPITAL GOODS
INFO. TECH.
CURRENT
PRICE
879
1200
897
Domestic
Indices
Close
Points
% Chg
BSE Sensex
27437.94
-297.08
-1.07
Nifty
8305.25
-93.05
-1.11
Dollar/Rupee
63.56
0.24
0.38
Note: (Buying should be done from a medium to long term perspective)
Market Brief
It was a pathetic week for the markets and it had a dismal close, Nifty down by 300 points that is
about 3 and a half percent. The market internals (breadth) were very poor and almost 4 out of 5
scripts corrected by about 5-10 percent. All this happened on the back of domestic turmoil, below
normal rain forecast, failure of Union Govt. to clear Land Form reforms, farmer suicide woes, and
poorly reported corporate earnings led to this corrective action. However, market in terms of Nifty,
held the very crucial level of 8240 which was the low registered in March 2015 and incidentally being
200 DMA (Moving Average). May be market is in search of some positive news flows to bounce back.
Looking at the market moves and the internals, it appears that markets will remain volatile and
choppy. On the back of any positive news flows, markets could attempt a pull-back rally, perhaps
would test the crucial resistances of 8450 to 8550, but it can come out of the woods only if it manages
to close above 8700, until that markets will be in the control of the bears. Market is so vulnerable and
frail in short to intermediate term that any bad news from here on would see the down-side and in
that event market would test the low of this year of 8060 registered in January. The fall would get
accentuated if the Nifty closes below 8000 and we should be prepared for a protracted correction in
the market.
Under these market conditions, investors should remain cautious, and as earlier suggested exit from
fundamentally weak and high debt leverage companies in the rally. Since the market is in a long term
bull markets, long term investors can use deep declines to buy well managed growth companies.
`
Advance/
Decline
BSE
Advance
NSE
Decline
AD
Ratio
UnChanged
606
2007
0.3:1
83
188
1233
0.15:1
32
Global Indices
Close
Points
% Chg
Dow Jones*
18058.69
20.42
0.11
NASDAQ*
5056.06
20.89
0.41
FTSE*
7053.67
25.43
0.36
Nikkei
20020.04
-167.61
-0.83
Hang Sang
28060.98
233.28
0.84
Straits Times
3513
10.25
0.29
#as
on 24th April 2015
Institutional
Activity
FII*
Buy
Sell
6282.92
7058.38
Net
(Cr)
-775.46
DII**
2666.64
1770.31
896.33
FII* Foreign institutional investor DII** Domestic institutional invest
News:
Infosys Q4 net down 4.7% q-o-q at Rs 3,097 crore
India's second largest informtion technology services
company Infosys today posted a net profit of Rs 3,097
crore for January-March 2015 (Q4), up 3.5% on-year, but
4.7% lower on a quarter-on-quarter basis. Revenue for
Q4 rose 4.2% on-year to Rs 13,411 crore, however was
down 2.8% on a sequential basis. The company cheered
investors as it pegged its dollar-revenue growth for FY16
at 10-12%, which is marginally higher than Street
expectations, but still lower than industry body
Nasscom's guidance for the sector at 12-14%. Most
brokerages expected Infosys to guide for a 7-11%
revenue growth in FY15. In dollar terms, Infosys posted a
15% growth in net profit for FY15 at $2,013 million, while
its revenue rose 5.6% to $8,711 million, missing the
company's guidance. The Bengaluru-based company had
pegged revenue growth for FY15 at 7-9%. Additionally,
the company announced a bonus share issue in the ratio
of 1:1. For FY15, the company's net profit grew 15.8% to
Rs 12,329 crore, while its revenue rose 6.4% to Rs 53,319
crore. "We see the industry going through a fundamental
and structural transition,” said Vishal Sikka, chief
executive officer and managing director of Infosys.
NEWS PERSPECTIVE
Notices to 68 FIIs to recover Rs 602 cr tax
towards MAT: Sinha
The Income Tax department has sent notices in 68
cases to Foreign Institutional Investors (FIIs) for
payment of dues totalling Rs 608.83 crore towards
Minimum Alternate Tax (MAT), Parliament was
informed today. "The applicability of MAT provisions
is a legal issue and wherever the cases require
application of MAT provisions, the same is being
done," Minister of State for Finance Jayant Sinha
said in a written reply to Lok Sabha.
When asked if the tax department has slapped
notices to 100 overseas funds for evasion of tax to
the tune of $5-6 billion, Sinha said notices were
issued only in 68 cases, envisaging total tax demand
of Rs 602.83 crore.
"Tax notices have been issued in 68 cases of
overseas funds to bring to tax the book profits as
per MAT provisions under section 115JB of the
Income Tax Act, 1961. So far, total tax demand of Rs
602.83 crore has been raised," the Minister said.
Following a court ruling, the Income Tax department
had slapped notices on foreign portfolio investors
(FPIs), saying they have to pay 20 per cent MAT on
untaxed capital gains made by them over the past
three years. As the issue has generated a lot of
controversy, Finance Minister Arun Jaitley is
expected to come out with some clarification at the
time of his reply to the debate on the Finance Bill in
the House.
According to experts, foreign investors paying
capital gains tax in their home nations will not be
subject to the 20 per cent minimum alternate tax
(MAT) in India. Besides, investors coming from
nations with which India has a double taxation
avoidance agreement (DTAA) such as Mauritius and
Singapore may be exempt as there is no tax on
capital gains there.
`
ITE – 35* Top Gainers & Losers
Gainers
Losers
Stocks
%
Stocks
%
CIPLA
42.85
L&T
-16.22
LUPIN
31.97
CAIRN INDIA
-16.19
SUN PHARMA
26.65
RELIANCE INDS.
-8.06
DR.REDDY’S
22.64
# % = 3 months Return
ITE – 211** Top Gainers & Losers
Gainers
Losers
%
Stocks
Stocks
%
Vaibhav Global
Cairn India
Finolex Inds.
Mcleod Russell
27
23
20
19
Ratnamani Metals
Gati
Guj Gas Co.
Page Industries
61
59
53
48
Whirlpool India
48 Just Dial
17
Techno Elec.
46 ONGC
17
CCL Products
45 Escorts
16
Symphony
42 Biocon
15
Amara Raja Batt.
38 Firstsource Soln.
14
Gateway Distriparks
37 CMC
13
# % = 3 months Return
BSE Top Gainers & Losers
Gainers
Losers
Stocks
%
Stocks
%
GODREJCP
3.50
SPARC
8.86
NMDC
3.04
JETAIRWAYS
8.71
BHARATFORGE
2.92
BFUTILITIES
7.47
ONGC
2.60
BOSCHLTD.
7.35
#as
on 24th April 2015
`
Sensex drops 297 points to end below 27,450; Infosys slumps 6%
Benchmark share indices ended over 1% lower on Friday with Infosys leading the decline after
disappointing March quarter earnings while the guidance for the current fiscal was also lower than
Nasscom estimates. The 30-share Sensex ended down 297 points at 27,438 and the 50-share Nifty closed
93 points lower at 8,305.
"Technically the market is still looking weak and there are no positive triggers as of now. The Nifty can test
the 200-DMA level of 8,250. Further, weak monsoon forecast is also a cause for concern. In the latter half
of the session lower-than-expected fourth quarter earnings of Infosys dampened sentiment," said Alex
Mathew, Head of Research, Geojit BNP Financial Services. Market breadth on the BSE ended negative with
2,072 losers against 671 advances.
In the broader market, the BSE Mid-cap slipped 1.6% and Small-cap indices ended down 2.7%. Meanwhile,
according to reports the Central Board of Direct Taxes has instructed Foreign Portfolio Investors claiming
treaty benefits be settled within a month.
Sectors & Stocks
Except for FMCG which ended flat all sectoral indices on the BSE ended lower with Realty and Consumer
Durables being the top losers down over 3% each. Infosys was the top Sensex loser which ended down 6%.
Net profit was down 4.7% at Rs 3,097 crore while revenue was lower by 2.8% at Rs 13,411 crore for the
March quarter compared to the previous quarter. Further, the company expects FY16 revenue growth
between 10 – 12% in constant currency terms, which is lower than the NASSCOM estimates of 12-14%.
Among its peers, TCS ended up 2.2% while Wipro ended down 3.1%.
Index heavyweight, ITC ended up 1.2%. Media reports suggest that ITC is planning to set up four food
processing parks with an investment of up to Rs 250 crore each in Tamil Nadu.
ONGC rose 2.7%. ONGC has agreed to conduct tests prescribed by upstream regulator DGH to confirm
three key gas discoveries in its Krishna Godavari basin block to end a standoff that stalled its USD 8 dollar
project.
`
According to media reports, GAIL has received approval from Haryana government department for laying
of a 3.85-km gas pipeline within Old industrial area, Yamunanagar for supply of gas to its prospective
customers in this area. The stock ended down 1.5%.
Bank shares ended lower on concerns that unseasonal rains would lead to severe crop damages as a result
of which non-performing loans in the agri-segment would rise thereby hurting profits. HDFC Bank, ICICI
Bank, Axis Bank and SBI ended down 0.3-2.8% each.
According to media reports, Tata Power is focusing on overseas projects as its 4,000 MW Mundra power
plant in Gujarat remains stuck in a tariff dispute that has reduced its appetite for domestic projects. The
stock ended down 1.5%. Realty major DLF shed 3.8% on reports stating the Supreme Court has issued a
notice on a plea by Sebi, challenging an order of its appellate authority, Securities Appellate Tribunal (SAT),
in relation to the aforementioned company.
Among other shares, Shares of Symphony has dipped 20%, extending its 11% fall in past two trading
sessions on the NSE, after Motilal Oswal Securities downgrade the stock with sell rating and target price of
Rs 2,500.
`
‘Markets are directionally efficient, meaning that today’s price
reflects what is currently known about the future direction of
the markets.’
*ITE-35 index is a well diversified Index with 35 stocks large size companies developed by Pragmatic Wealth Management research group. The
ITE-35 Index commensurate with the Sensex & Nifty.
** ITE -211 is a broad based index constitutes 211 companies from large, mid and small size companies spread over 9 ethically permissible
sectors. This is parent (macro Index) and it commensurate with BSE- 500 and S&P CNX 500
Caution: We do not encourage intraday trading and Derivative trading. Stocks should only be sold upon procuring the delivery.
Disclaimer: The recommendations made herein do not constitute an offer to sell or a solicitation to buy any of the securities mentioned. No representations can
be made that the recommendations contained herein will be profitable or that they will not result in losses. Readers using the information contained herein are
solely responsible for their actions. Information is obtained from sources deemed to be reliable but is not guaranteed as to accuracy and completeness. The
above recommendations are based on the theory of Technical & Fundamental Analysis Combined. © Pragmatic Wealth Management Pvt. Ltd.