Khandwala Securities Limited

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2 Financial & Economic Wrap Up India's economy is expected to record stronger growth momentum of 5.5 per cent in the current fiscal, underpinned by "solid expansion" in industrial and services sectors, and impetus to economic reforms by the new government, according to a UN report. (ET) Domestic rating agency India Ratings increased its FY15 GDP growth estimate marginally to 5.7 per cent on a good show by the industrial sector, but said the government will not be able to meet its ambitious fiscal deficit target of 4.1 per cent. (ET) The RBI said that banks may refinance long term project loans with certain new riders including taking-over of a minimum of 25 per cent of an outstanding loan from the prior condition of 50 per cent. (ET) The Reserve Bank of India's (RBI) decision to ask asset reconstruction companies (ARCs) to triple their investments in security receipts would massively hurt the fledgling ARC sector, ratings agency CRISIL said here. (ET) Equity Market Wrap Up The Sensex has ended with the loss of points, 0.30 per cent, at The 50-share NSE Nifty has closed with the loss of points, 0.30 per cent, at , after making the intraday high of The SX40 index of MCX-SX ended with the loss of points at Except Consumer Durables (0.75%) and Oil & Gas (0.46%), all other sectoral indices ended in green. IT, Realty and Power were the top losers, down by 1.27%, 0.34% and 0.31% respectively. Market breadth was negative on the BSE with 1266 gainers against 1673 losers. F & O Wrap Up Nifty August 2014 Futures were closed at , a premium of points over spot closing of Turnover on NSE s Futures & Options segment decreased from Rs crore to Rs crore. The Nifty Put Call stood at 1.04 compared to the previous day s figure of India VIX has decreased by 1.12% to close at The open interest on Nifty Futures decreased by 6.37 lakhs to 1.31 crore in the previous trading session. Indices Performance Index 07-Aug-14 Previous Close % Change# S&P BSE Sensex CNX Nifty CNX Midcap CNX S&P BSE Smallcap Global Markets Index 07-Aug-14 Previous Close % Change# Dow Jones 16, , Nasdaq 4, , S&P 500 1, , FTSE 6, , CAC 4, , Nifty Top 5 Gainers Company 07-Aug-14 Previous Close % Change# ACC JINDALSTEL TATASTEEL KOTAKBANK BHEL Nifty Top 5 Losers Company 07-Aug-14 Previous Close % Change# PNB INFY HCLTECH BANKBARODA SSLT Trading Turnover Description (Rs in Cr) 07-Aug-14 Change % Change# NSE 13, , BSE Index Fut 16, , Stock Fut 24, , Index Opt 154, , Stock Opt 9, F & O Total 205, , Institutional Flows (Equity) Description (Rs in Cr) Purchases Sales Net FII Flows DII Flows # % change is the over the previous days close. 2 P a g e

3 Money Market Wrap Up India's new 10-year bond yield ended down 1 basis point at 8.63 percent, as value-buying attracted some investors after two sessions of sharp losses, although sentiment remained weak as foreign investors continued their selling spree. The existing 10-year benchmark bond yield closed 2 basis points lower at 8.85 percent. (Reuters) The benchmark five-year swap rate closed up 3 bps at 8.14 percent, while the one-year rate ended unchanged at 8.50 percent. (Reuters) India's cash rate ended at 7.50/7.60 percent against Wednesday's close of 8.95/9.00 percent helped by term repo announcement due on Friday. (Reuters) Mutual Fund & Insurance Wrap Up ICICI Prudential Mutual Fund has extended the closing date of ICICI Prudential Fixed Maturity Plan- Corporate Bond Fund- Series B to August 11, 2014, against the previous August 08, (ValueResearch) Religare Invesco Mutual Fund has decided to roll over Religare Invesco Fixed Maturity Plan- Series XIX- Plan F (370 Days) to 728 days. Now the scheme shall mature on August 16, (ValueResearch) International Metals & Energies Wrap Up Brent crude advanced from a nine-month low after militants captured a dam in Iraq, bolstering concern that unrest will spread in OPEC s second-biggest oil producer. WTI futures also climbed. (Bloomberg) Gold futures advanced to a two-week high as a decline in U.S. equities boosted demand for alternative investments. (Bloomberg) Nickel posted the biggest two-day gain in five weeks after a mine in Papua New Guinea suspended operations, heightening concern that supply will trail demand. (Bloomberg) Forex Wrap Up The dollar strengthened to an almost nine-month high against the euro after European Central Bank President Mario Draghi signaled monetary policy will diverge from the U.S. for an extended period of time. (Bloomberg) The pound was about 0.2 percent from its weakest level in eight weeks versus the dollar after Bank of England officials maintained their key interest rate at a record-low 0.5 percent following a two-day meeting. (Bloomberg) Brazil s swap rates climbed as a government report tomorrow forecast to show faster inflation added to speculation that policy makers will resume raising borrowing costs next year. (Bloomberg) Policy Rates Key Rates (%) 07-Aug-14 1 Week Ago 1 Month Ago Reverse Repo Repo CRR SLR Bank Rate Daily Rates Key Rates (%) 07-Aug-14 Previous Close % Change# NSE MIBOR O/N CALL CBLO OIS-1Yr OIS-5Yr Liquidity Indicators Description (INR Cr) 07-Aug-14 1 Week Ago 1 Month Ago Govt.Securities 15, , , Call Money CBLO LAF Treasury Bills 3, , , Top 5 traded G Sec Security Maturity % Closing Yield % Change# 8.83% GS Nov % GS Jun % GS Jul % GS May % GS Dec Commodity Market Commodities (INR) 07-Aug-14 Gains+/Loss % Change# Gold (10gm) Silver (1Kg) Crude Oil (1 barrel) Aluminium (1 Kg) Copper (1Kg) Currency Market Currency 07-Aug-14 Gains+/Loss %Change# USD/INR EUR/INR GBP/INR JPY/INR # % change is the over the previous days close. 3 P a g e

4 Coffee With KSL Your Morning Companion Dear Institutional Clients, IS NIFTY IN CORRECTION MODE OR IS NIFTY TURNING BEARISH??? It s been eight trading sessions since it s top of and Nifty has been making attempts to reclaim that peak. However selling pressure at higher levels and a cluster of resistances which were created on the trip to the top and down have ensured that Nifty doesn t see 7840 in a hurry again. Technically speaking, Nifty found support at an exact 50% retracement from the low of to the high of After hitting on the tape (an exact decline of points) which corresponded to a 50% drop (the 50% Fib being placed at ) bounced to close at However, it was evident that the bounce was not inspiring since the rise should have ideally seen it close out the day above This puts Nifty under pressure going forward since we have witnessed two closes below the vital fulcrum of Internationally, the global markets are in a corrective mode. As at 0045 Hours IST, DJIA is down 106 points while DAX and FTSE have lost dramatically from the recent highs. DAX has surrendered 1000 points in whirlwind fashion and DJIA is down 5% from its recent all-time high. According to time cycles, 8th of August is a very crucial date for the markets and any tinge of bad news about Iraq, Russia, Afghan, Ukraine will pull down the markets in a hurry. However, don t be in any undue haste to buy the whole basket as yet. We shall get an opportunity to do bottom fishing and hence wait for the crest to come which will take Nifty past Yes, this will take some time and we shall monitor the markets for you until then. Going forward the band of are the resistances and is a good cluster of supports. Do keep trading. Staying on the sidelines out of fear causes more loss of profit and opportunity than the erosion of Capital caused by market corrections. Have a splendid and profitable day with KSL! 4 P a g e

5 Nifty Short Term Trend The p day was extremely volatile within the range of mark, whereas on the closing hour Nifty lost all its gain to close at days lowest 7649 losing by 0.30% On the hourly chart, prices did managed to break the previous swing low of 7638 and posted a close at 11 points higher at The ambiguity of the weekly charts will be much in force in line with the.rend weekly close, some panic trigger will be visible to break the lows, to represent o the prices at the lower level of the channel. Momentum Oscillator RSI is also reacting from its overbought zone thus opening a further gap downside, approaching towards 7400 mark. For the coming trading session, we expect the selling pressure to persist and we advise any break through below the 50% of the previous rally should be used to initiate short. Immediate supports for the day are placed at around and resistance is at levels respectively. Outlook for the Day Negative Market Indices Sensex: Nifty: 7649 Trend Negative Short Term Trend Reversal Only Below 7420 Strategy Sell below 7630 Level to watch Support: 7630, 7580 Resistance: 7690, 7730 Technical Picks IGL FUTURE VOLTAS 5 P a g e

6 Technical Picks IGL FUTURE - SELL CMP: The stock prices of IGL since last two months were moving in a 'RISING CHANNEL' pattern and yesterday the prices by giving a close below the trendline joining higher bottoms have confirmed a bearish breakdown. Along with it in short term prices have given a bearish 'ASCENDING TRIANGLE' breakdown in daily chart. The impact of the above patterns can drag prices to the downside of 347/340 in near term. In daily chart, momentum oscillator RSI has entered negative zone and MACD has given fresh sell signal supporting the sell call. Recommendation: We recommend positional traders to go short in IGL FUT at/below 368 with SL of 374 for TARGETS of 347/340. VOLTAS CASH - BUY CMP: As seen in the chart, stock prices of VOLTAS have given bullish pattern breakout in daily chart known as 'SYMMENTRICAL TRIANGLE'. The said pattern breakout is supported with huge volumes. In addition, the prices in weekly chart are moving in a HIGHER TOP HIGHER BOTTOM price cycle which shows strength in the bulls. In daily chart, prices are well above its short term and medium term moving averages i.e. 20SMA, 50SMA and 200SMA which indicates overall bullishness in the counter. Momentum oscillator like RSI and MACD are in positive zone supporting the buy call. Recommendation: Looking on the entire above scenario we recommend positional traders to go long in VOLTAS CASH at/above 205 with SL of 197 for TARGETS of 224/ P a g e

7 BANKNIFTY CALLS: RANGE FOR THE DAY IS SCRIP SIGNAL ENTRY LEVELS TARGET STOP LOSS BANKNIFTY FUTURES BUY AT/ABOVE /15125/ IF BANKNIFTY HITS AND RETRACES THEN SELL BANKNIFTY AT/BELOW BANKNIFTY FUTURES SELL AT/BELOW /14820/ BANKNIFTY FUTURES IS STRONG ABOVE NIFTY CALLS FOR THE DAY: RANGE FOR THE DAY IS SCRIP SIGNAL ENTRY LEVELS TARGET STOP LOSS NIFTY FUTURES BUY AT/ABOVE /7658/ IF NIFTY FUT HITS 7670 AND RETRACES THEN SELL NIFTY FUT AT/BELOW 7658 NIFTY FUTURES SELL AT/BELOW /7602/ NIFTY FUTURE IS STRONG ABOVE 7575 OPTIONS CALLS SCRIP STRIKE PRICE SIGNAL ENTRY LEVELS TARGET STOP LOSS BANKNIFTY 15100CE BUY AT/ABOVE /365/ BANKNIFTY 15000PE BUY AT/ABOVE /375/ NIFTY 7700CE BUY AT/ABOVE 63 93/118/ NIFTY 7650PE BUY AT/ABOVE 68 98/124/ ICICIBANK 1450CE BUY AT/ABOVE 28 43/52/64 21 ICICIBANK 1450PE BUY AT/ABOVE 25 40/48/57 18 RELIANCE 1000CE BUY AT/ABOVE 11 21/28/35 6 RELIANCE 980PE BUY AT/ABOVE 9 18/25/31 5 SBIN 2440CE BUY AT/ABOVE 62 76/85/99 54 SBIN 2420PE BUY AT/ABOVE 47 63/71/80 39 TCS 2500CE BUY AT/ABOVE 39 54/62/73 31 TCS 2450PE BUY AT/ABOVE 34 48/57/65 26 TECHNICAL CALLS SCRIP SIGNAL ENTRY LEVELS TARGET STOP LOSS IGL FUT SELL AT/BELOW /347/ VOLTAS CASH BUY AT/ABOVE /232/ ABIRLANUVO FUT SELL AT/BELOW /1395/ INDIA CEM CASH BUY AT/ABOVE /121/ PNB FUT SELL AT/BELOW /909/ ARVIND CASH BUY AT/ABOVE /258/ P a g e

8 CORPORATE ACTION Company Purpose Date Corporation Bank Quarterly Result August 08, 2014 DCW Quarterly Result August 08, 2014 GSFC Quarterly Result August 08, 2014 SBI Quarterly Result August 08, 2014 Sobha Developers Quarterly Result August 08, 2014 Sun TV Quarterly Result August 08, 2014 NEWS UPDATES Jubilant Foodworks Q1 net down 18% at Rs cr Jubilant Foodworks Ltd that runs food chains, including Domino's Pizza and Dunkin' Donuts in India, today reported per cent decline in standalone net profit at Rs crore for the first quarter ended June 30, hurt by higher expenses. (BS) RCom receives Rs 650 cr from promoter group Reliance Communications has received the first instalment of Rs 650 crore from the promoter group for preferential allotment of 8.67 crore warrants aggregating Rs 1,300 crore. The remaining Rs 650 crore will be received by the firm before March 31, 2015, RCom said in a statement. (BS) IOC's investment could see a 28% drop this year State-run Indian Oil Corporation will invest Rs 12,000 crore in capex for the financial year , a drop of 28% against last financial year. The company had a planned capital investment of about Rs 16,700 crore in (BS) Fortis Healthcare Q1 net loss at Rs 46.8 crore Fortis Healthcare today reported a consolidated net loss of Rs 46.8 crore for the first quarter ended June 30, It had reported a net loss of Rs crore in the same period of previous year. Consolidated total income of the company was at Rs 1,009.4 crore for the quarter under consideration. (BS) Nestle Q2 net up 6% at Rs crore FMCG major Nestle India posted 6.07 per cent increase in net profit at Rs crore for the second quarter ended June 30, The company reported net sales of Rs 2, crore in the quarter under review. (BS) INTERNATIONAL MARKETS UPDATE US markets US markets ended in red on Thursday. S&P 500 was down by 0.56%, Dow Jones down by 0.46% and NASDAQ was down by 0.46%. European Markets European markets ended in red on Thursday. FTSE was down by 0.59%, CAC was down by 1.38% and DAX was down by 1.01%. 8 P a g e

9 NSE (AUGUST FUTURES) SUPPORT & RESISTANCE SUPPORT LEVELS RESISTANCE LEVELS STOCKS S3 S2 S1 PIVOT R1 R2 R3 ABIRLANUVO ACC ADANIENT ADANIPORTS ADANIPOWER ALBK AMBUJACEM ANDHRABANK APOLLOHOSP APOLLOTYRE ARVIND ASHOKLEY ASIANPAINT AUROPHARMA AXISBANK BAJAJ-AUTO BANKBARODA BANKINDIA BATAINDIA BHARATFORG BHARTIARTL BHEL BIOCON BPCL CAIRN CANBK CENTURYTEX CESC CIPLA COALINDIA COLPAL CROMPGREAV DABUR DISHTV DIVISLAB DLF DRREDDY EXIDEIND FEDERALBNK P a g e

10 STOCKS S3 S2 S1 PIVOT R1 R2 R3 GAIL GLENMARK GMRINFRA GODREJIND GRASIM GSKCONS HAVELLS HCLTECH HDFC HDFCBANK HDIL HEROMOTOCO HEXAWARE HINDALCO HINDPETRO HINDUNILVR HINDZINC IBREALEST ICICIBANK IDBI IDEA IDFC IFCI IGL INDIACEM INDUSINDBK INFY IOB IOC IRB ITC JINDALSTEL JISLJALEQS JPASSOCIAT JPPOWER JSWENERGY JSWSTEEL JUBLFOOD JUSTDIAL KOTAKBANK P a g e

11 STOCKS S3 S2 S1 PIVOT R1 R2 R3 KTKBANK L&TFH LICHSGFIN LT LUPIN M&M M&MFIN MARUTI MCDOWELL-N MCLEODRUSS MRF NHPC NMDC NTPC OFSS ONGC ORIENTBANK PETRONET PFC PNB POWERGRID PTC RANBAXY RCOM RECLTD RELCAPITAL RELIANCE RELINFRA RPOWER SAIL SBIN SIEMENS SRTRANSFIN SSLT SUNPHARMA SUNTV SYNDIBANK TATACHEM TATACOMM TATAGLOBAL P a g e

12 STOCKS S3 S2 S1 PIVOT R1 R2 R3 TATAMOTORS TATAMTRDVR TATAPOWER TATASTEEL TCS TECHM TITAN UBL UCOBANK ULTRACEMCO UNIONBANK UNITECH UPL VOLTAS WIPRO YESBANK ZEEL P a g e

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