Morning Moves. Research Desk Stock Broking 13 th May, Global Indices Market. Market Watch. Sectoral Gainers/Losers.

Transcription

1 Morning Moves Research Desk Stock Broking 13 th May, 216 Global Indices Market Global Indices (Close) (Pts) Chg (%) SGX Nifty 7, Dow Jones 17, NASDAQ 4, S&P 5 2, FTSE 1 6, Nikkei 225* 16, Hang Seng* 19, Source: Bloomberg, leading business web *(as of 7:3 am) IST Market Watch CIL to hold second phase of special e-auction for power plants this month Mahindra & Mahindra launches dual variants of its compact SUV TUV3 at Rs 8.87 lakh Arvind launches omni channel platform NNN.com, a non discount driven e-commerce market space Gold glitters globally with record demand in Q1 216, 21% increase over same period last year Sectoral Gainers/Losers Sector (Close) (Pts) Chg (%) S&P BSE CD S&P BSE IT S&P BSE CG S&P BSE FMCG Oil supply grows in India, falls at global level: IEA Nestle India fourth quarter net profit misses estimates April CPI rises to 5.39%; IIP for March falls to.1% Source: Bloomberg, leading business web Market View Source: BSEIndia CD- CONSUMER DURABLES CG- CAPITAL GOODS Nifty: Top Gainers & Losers Gainers %Chg Losers %Chg BOSCHLTD 4.76 AUROPHARMA ICICIBANK 3.97 EICHERMOT -1.3 DRREDDY 3.71 M&M HINDALCO 2.35 HINDUNILVR -1.7 ASIANPAINT 2.34 AXISBANK -.84 Source: NSE India Cash Market Institutional Activity Net Value Futures (FIIs) Net Value FII Index 42.8 DII Stock Source: NSE India Value (Rs in Crs) Intra-day Recommendations Scrip Code Act Entry SL TGT GAIL L SKSMICRO L ABV EXIDEIND L ABV DHFL L HINDPETRO S BLW Note: Act=Action: Entry=Entry; SL=Stop loss; TGT=Target; L= Long; S= Short, Positive momentum likely to continue; buy on dips: Nifty ended yesterday s trade with gains of.66% to close a tad above the 79 mark at 79.4 for the day. A choppy trade was witnessed post a gap up opening with the index trading in a tight range of almost 65 points, covering the gap during the trading session. The index bounced from the intraday lows of 7849 propelled higher by the heavy weights, i.e., BANKS and IT players that registered gains of over 1%. It was a field of green across the board with no sectors clocking negative returns thus resulting in an overall positive market breadth. The India VIX was also seen cool off to close lower at down 3.74%. A slew of public sector banks are slated to declare their results today lead by the index major BANKBARODA. Nifty has closed above the psychological mark of 79 after 1 trading sessions and is likely to continue with positive bias today as well. Technically, placed above its major moving averages Nifty has immediate support is placed at 785 below which could be tested. While, resistance is placed at above which a break out and substance could propel it higher to 81 from a near-term perspective Therefore, keeping with the momentum, for the day we recommend to buy Nifty on dips towards 785 levels with stop loss placed below 78 for the target of Nifty Option: Buy Nifty May 79 CE on dips 9-88 SL: 7 TGT: TF: Intraday

2 x 1 x 1 Morning Moves 13 th May, 216 DERIVATIVES INSIGHT Nifty Tracker Particulars (Close) (Previous) Chg (%) Nifty Spot Nifty Near Fut Nifty Near Fut. OI Nifty COC % Nifty PCR Vol Nifty PCR OI Bank Nifty Spot Bank Nifty Fut Bank Nifty Fut. OI Bank Nifty COC % Market OI (Rs. cr.) India VIX Nifty Dynamics Nifty May future is trading at a premium of 27.8 points as compared to a premium of 17 points in the last trading session. While, Bank Nifty May future is trading at a premium of 62.7 as compared to a premium of 3.8 points. On the options front, Nifty May 79 PE witnessed additions of 1.4 lakh shares in Open Interest (OI) while on the higher side Nifty May 81 CE witnessed additions to the tune of 3.41 lakh shares in the last trading session. The highest amount of OI is seen in Nifty May 77 PE of lakh shares while on the higher side Nifty May 8 CE has maximum OI to the tune of lakh shares. Nifty put options witnessed addition of 37 lakh shares in open interest, while Nifty call options witnessed addition of 5 lakh shares in open interest. India VIX ended at from while Nifty historical volatility decreased to 18.26% from 18.45%. Nifty call options average Implied Volatility (IV) increased to 17.42% from 16.57% and Nifty Put options average Implied Volatility (IV) decreased to 16.95% from 17.54% with market open interest at Rs Crore Options Activity (Near Month) OPEN INTEREST CALL PUT OPEN INTEREST CHANGE CALL PUT Positional Recommendations VEDL MAY Future: 13 for the targets of 112 with a stop loss of 97 (CASH LEVELS): VEDL witnessed closure of short position in last trading session taking the total OI to 4,93,88,. Technically, the stock is trading in the range of with positive bias and made double bottom pattern and also trading well above its all short term moving averages. We expect it to head towards 112 levels in near term. Hence, we recommend short term traders to go long in the stock with a stop loss of 97. BHARATFORG MAY Future: 775 for targets of 745 with a stop loss of 792 (SPOT): BHARATFORG witnessed addition of short positions in the last trading session with decrease in the stock price and increase in OI. On the technical front, the stock is forming lower highs and lower lows on the daily charts and is also sustaining well below its all major short term moving averages. Hence, one may go short in the counter at 775 levels for short term with a stop of 792 for targets of 745 and much lower below it. ICICIBANK MAY 235 CE: Buy ICICIBANK 235 strike Call option having open interest of 12, 86,9 shares and has seen closure of 1,93,8 shares in the last trading session with IVs at 34.85%. Long positions can be assumed in the option between Rs with stop loss at Rs 2.75 for targets of Rs 9-1. Hybrid Strategy Payoff Hybrid Strategy BULL CALL SPREAD IN HINDALCO HINDALCO May Future has total open interest of 4,1,5, shares while HINDALCO May 95 CE witnessed shedding of 3,75, shares making a total OI of 22,55, and May 1 CE witnessed shed of 3,45, shares making total OI of 48,25, shares in the previous trading session. On the technical front, the stock is in uptrend on daily and weekly charts which indicates that the stock may surge further in sessions to come. Hence, we recommend building Bull call spread strategy in the counter. Buy one lot of HINDALCO May and Sell one lot of HINDALCO May Max Profit: 175 Max Loss: 75 BEP: 96.5

3 Morning Moves 13 th May, 216 PIVOT TABLE SYMBOL CMP S2 S1 PIVOT R1 R2 SENSEX NIFTYBANK NIFTY AXISBANK BAJAJ-AUTO BHARTIARTL BHEL CIPLA COALINDIA DRREDDY GAIL HDFC HDFCBANK HEROMOTOCO HINDALCO HINDUNILVR ICICIBANK INFY ITC LT M&M MARUTI NTPC ONGC RELIANCE SBIN SUNPHARMA TATAMOTORS TATAPOWER TATASTEEL TCS VEDL WIPRO Corporate Actions Company Series Ex-Date Record Date Purpose HIKAL EQ 17-MAY MAY-16 INTERIM DIVIDEND - RS.5/- PER SHARE NESTLEIND EQ 18-MAY-16 - AGM/DIVIDEND RS 18.5 PER SHARE + INTERIM DIVIDEND RIIL EQ 2-MAY-16 - DIVIDEND RS 3.5 PER SHARE DCBBANK EQ 24-MAY-16 - ANNUAL GENERAL MEETING

4 Results ADVANTA ALBK BANKBARODA CENTRALBK DENABANK IGL UNIONBANK UCOBANK ZEELEARN 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. KARVY RESEARCH DESK STOCK BROKING QUERIES & FEEDBACK JK Jain Toll-Free: Head Research ID: service@karvy.com KARVY STOCK BROKING LTD Karvy Millenium Plot No : 31 Financial District Gachibowli Hyderabad Analyst Certification The following analyst(s), JK Jain, who is (are) primarily responsible for this report and whose name(s) is/ are mentioned therein, certify (ies) that the views expressed herein accurately reflect his (their) personal view(s) about the subject security (ies) and issuer(s) and that no part of his (their) compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in this research report. Disclaimer Karvy Stock Broking Limited [KSBL] is a SEBI registered Stock Broker, Depository Participant, Portfolio Manager and also distributes financial products. The subsidiaries and group companies including associates of KSBL provide services as Registrars and Share Transfer Agents, Commodity Broker, Currency and forex broker, merchant banker and underwriter, Investment Advisory services, insurance repository services, financial consultancy and advisory services, realty services, data management, data analytics, market research, solar power, film distribution and production profiling and related services. Therefore associates of KSBL are likely to have business relations with most of the companies whose securities are traded on the exchange platform. The information and views presented in this report are prepared by Karvy Stock Broking Limited and are subject to change without any notice. This report is based on information obtained from public sources, the respective corporate under coverage and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of KSBL. While we would endeavour to update the information herein on a reasonable basis, KSBL is under no obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent KSBL from doing so. The value and return on investment may vary because of changes in interest rates, foreign exchange rates or any other reason. This report and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. KSBL will not treat recipients as customers by virtue of their receiving this report. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither KSBL nor any associate companies of KSBL accepts any liability arising from the use of information and views mentioned in this report. Investors are advised to see Risk Disclosure Document to understand the risks associated before investing in the securities markets. Past performance is not necessarily a guide to future performance. Forward-looking statements are not predictions and may be subject to change without notice. Actual results may differ materially from those set forth in projections. Associates of KSBL might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject company for any other assignment in the past twelve months. Associates of KSBL might have received compensation from the subject company mentioned in the report during the period preceding twelve months from the date of this report for investment banking or merchant banking or brokerage services from the subject company in the past twelve months or for services rendered as Registrar and Share Transfer Agent, Commodity Broker, Currency and forex broker, merchant banker and underwriter, Investment Advisory services, insurance repository services, consultancy and advisory services, realty services, data processing, profiling and related services or in any other capacity. KSBL encourages independence in research report preparation and strives to minimize conflict in preparation of research report. Compensation of KSBL s Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. KSBL generally prohibits its analysts, persons reporting to analysts and their relatives from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover. KSBL or its associates collectively or Research Analysts do not own 1% or more of the equity securities of the Company mentioned in the report as of the last day of the month preceding the publication of the research report. KSBL or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report and have no financial interest in the subject company mentioned in this report. Accordingly, neither KSBL nor Research Analysts have any material conflict of interest at the time of publication of this report. It is confirmed that KSBL and Research Analysts primarily responsible for this report and whose name(s) is/ are mentioned therein of this report have not received any compensation from the subject company mentioned in the report in the preceding twelve months. It is confirmed that JK Jain, Research Analyst did not serve as an officer, director or employee of the companies mentioned in the report. KSBL may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report.

5 Neither the Research Analysts nor KSBL have been engaged in market making activity for the companies mentioned in the report. We submit that no material disciplinary action has been taken on KSBL by any Regulatory Authority impacting Equity Research Analyst activities.