Monday 27 th, March, 2017 Index Levels : Market Trend (Nifty): INDEX SUPPORTS RESISTANCES Period Current Trend NIFTY (9108.00) SENSEX (29421.40) ITE-35* (12008.27) *as on 24 th Mar 2017 9090 / 9050 9000 29350 / 29200 29140 9140 / 9170 9220 29700 / 29850 30050 Trend Reversal Point (TRP) 27Nifty on close basis Short Term Trend* UP DOWN BELOW 9000 Medium Term* UP DOWN BELOW 8700 ------------- -------- Long Term Trend* UP DOWN BELOW 7900 (*Trend Reversal Point (TRP) is based on close prices.) Imtiaz Merchant s Best Picks Indices COMPANY NAME SIZE SECTOR CURRENT PRICE Equity Indices Close As on 17 th March Close As on 24 th March Points % Chg Suprajit Engg Mid Cap Industrials 230 BSE Sensex 29648.99 29421.40-227.5-0.77% Tata Chem Mid Cap Industrials 578 Nifty 9160.05 9108.00-52.05-0.57% Reliance Inds Large Cap Oil & Gas 1286 Marico Inds Large Cap Consumer 290 Note: (Buying should be done from a medium to long term perspective) ITE Shariah 35* S&P CNX 500 Shariah 12114.74 12008.27-106.4-0.88% 2544.70 2526.34-18.36-0.72% Dollar/Rupee 66.72 65.41-1.31-2.00% (*Weekly Returns) Market Brief Due to mix news flows positive as well as negative was instrumental for market volatility, perhaps most volatile week in last many months. All this was due to some profit taking, and weak global markets and the fund houses reporting that the market is little over price, however, now that the corporate results are around the corner the market until than will continue to remain range bound and volatile. Govt. announcement of GST implementation by July is a positive sign particularly for goods industry. Expectation of improved corporate results can give more impetus to the market and vice versa, nevertheless stock specific moves should continue particularly from Consumer, Capital goods, Industrials and selected stocks from Auto, Oil& Gas. Although many of the stocks are showing traction, but only some positive news flows can take the markets to a new high or else it may fall on its own weight. Technical s Markets are in a range and would remain so for some more time between 9000 and 9200, however, a close below 9000 on the Nifty would see a corrective action and nifty would test lower levels of 8800 to 8700 levels being 50 DMA on the nifty, only a close below 8700 should one expect a deeper and prolonged correction. On the other hand, a break out and a close above 9200 would see a swift rally towards 9500 to 9600. Investors should be little cautious and be very selective in their approach, buy stocks with strong fundamental and consistent in making profit and growth.
Advance/ Decline Advance Decline AD Ratio Un- Changed BSE 1348 1480 0.91:1 217 NSE 740 786 0.94:1 71 Shariah Universe*** 460 501 0.92:1 58 Global Indices Close Points % Chg Dow Jones* 20656.58-4.72-0.02% NASDAQ* 5817.69-3.95-0.07% FTSE* 7340.71 15.99 0.22% Nikkei 19262.53 177.22 0.93% Hang Sang 24358.27 30.57 0.13% Straits Times 3142.90 15.97 0.51% Institutional Buy Sell Net Activity (Cr) FII* 5351.9 4808.55 543.35 DII** 2903.05 2786.55 116.5 FII* Foreign institutional investor DII** Domestic institutional invest News: 7 stocks locked in upper circuit of 20% on BSE Stocks of seven companies Cimmco, Star Paper Mills, Modi Rubber, Cravatex, GTN Textiles, Balkrishna Paper Mills and Shri Krishna Prasadam from the non-a group category ended in upper circuit of 20% each on BSE on the back of heavy volumes. Cimmco has frozen in upper circuit for the second straight trading session, up 20% at Rs 88.20. The stock zoomed 44% in the past two trading sessions from Rs 61.25 on Wednesday. Cimmco having installed capacity for manufacturing of wagons, coaches, under frame 2240 vehicular units (VUs) and industrial machinery 14200 MT per annum and comes under a large industrial unit. Modi Rubber, the company engaged in tyres, tubes and flaps, too locked in upper circuit for the second day in a row at Rs 63.05, also its fresh 52-week high on BSE. The company in annual report said that it has taken new initiatives to improve its long term prospects and performance. These include, the company is taking several steps to utilize its real- estate resources and wherever possible to put them to generate revenue and also exploring additional avenues of investment in new projects in joint ventures. Cravatex surged 20% at Rs 248 after the company said its board approved execution of a binding Subscription and Shareholders Agreement (SSHA) among company, unit Cravatex Brands Limited (CBL) and investor Paragon Partners Growth Fund. CBL will become unit from a wholly owned unit of company owing to investor holding minority equity stake in CBL at completion of investment. CBL is a whollyowned subsidiary of Cravatex, and has an exclusive long-term licensing agreement with Fila, an Italian sportswear and lifestyle brand, for footwear, apparel, and accessories. It has exclusive distribution rights, through its Proline Fitness division, for Johnson Healthtech (Taiwan), a maker of fitness equipment. News: 20 stocks from BSE 500 pack hit all-time highs today Bajaj Finance, Grasim Industries, Trident, DCM Shriram Industries, KEC International and KRBL are among 20 stocks from the S&P BSE 500 index, which hit their respective all-time highs in intra-day trade on Friday. Four private sector banks such as Kotak Mahindra Bank, DCB Bank, Federal Bank and IndusInd Bank along with Escorts, MRF and Sundram Fasteners from the auto and auto ancialliry sector hit their new highs. At 02:21 pm; the S&P BSE 500 index was up 0.49% at 12,516 as compared to 0.58% rise in the S&P BSE Sensex. The index hit an intra-day high of 12,523, and is 68 points away from its record high of 12,592 touched on March 17, 2017. DCM Shriram has surged 12% to Rs 310 on the back of over 10-fold jump in trading volumes. The company is a diversified company with business in agri, chemicals, plastics, cement, textiles and energy services. DCM Shriram had reported 60% year-onyear growth in its consolidated net profit at Rs 395 crore for the first nine months ended December 2016 (9MFY17). The company reported healthy earnings growth driven by better performance of the sugar and chemical businesses. KEC International rallied 8% to Rs 207, extending its Thursday s 7% gain on BSE. Since February, the stock soared 40% as compared to 7% rise in the S&P BSE Sensex. The company reported more than double consolidated net profit at Rs 159 crore for 9MFY17 against Rs 71 crore in 9MFY16. EBIDTA (earnings before interest tax and depreciation) margin increased to 8.8% from 7.5%. While announcing results, Vimal Kejriwal, MD & CEO, and KEC International said, the international business sentiment is clearly picking up as is evinced by an uptick in our International order intake and L1 positions. Further, we have successfully rebalanced our Middle East portfolio with the new order win in Jordan and earlier order win in Egypt." The railways business continues to witness a rapid built-up on the back of consecutive large order wins thereby reaffirming our confidence in the Railways growth story. We have a strong order book position and robust L1 pipeline which gives us good visibility and confidence going ahead," he added.
ITE 35* Shariah Top & Gail Ltd. 17% Divis Lab Ltd. -39% ONGC Ltd. 14% Asian Paint Ltd. -25% Hind Zinc Ltd. 11% AurobindoPhar -22% Tech Mahindra. 10% Ambuja Cement. -20% #% = 3 months Return ITE 211** Shariah Top & InfeabeamIncorp Ltd. 29% Divis Lab Ltd. -39% Sterlite Tech Ltd. 28% Kajaria Ceramics. -37% Shilpa Medicare Ltd. 25% Century Plyboards. -34% Excel Crop Care Ltd. 24% Housing Dev &Infra -29% Mahanagar Gas Ltd. 19% Dalmia Bharat Ltd. -29% Sonata Software Ltd. 19% Wockhardt Ltd. -26% KRBL Ltd. 19% Asian Paints Ltd. -25% GAIL (India) Ltd. 17% Intellect Design. -24% BalkrishnaIndst Ltd. 17% Berger Paints Ltd. -24% Indraprastha Gas Ltd. 16% Just Dial Ltd. -24% # % = 3 months Return Sectors Indices BSE Top & KEC 9.39% JINDALSTEL -4.54% WABAG 7.52% SADBHAV -3.76% ORIENTBANK 6.45% SREINFRA -2.82% BANKINDIA 5.02% NLCINDIA -2.79%
Nifty ends at 9,108; logs 1st weekly fall in March; banking stocks gain The benchmark indices on Friday settled higher thanks to gains in banking stocks following news reports that the Finance Minister Arun Jaitley has promised to offer a solution to the growing nonperforming assets (NPA) crisis in next few days. The S&P BSE Sensex ended at 29,421, up 89 points, while the broader Nifty50 settled at 9,108, up 22 points. Both the indices logged their first weekly loss in March, retreating from a record high hit last week. "Nifty closed flat in a volatile session today, tracking mixed cues. Initially, it made a firm start and inched higher, thanks to strong rebound in banking counters. But, profit taking at the higher levels again pushed the index to neutral line. It was a mixed session on the sectoral front wherein banking, especially the PSU pack, clearly outshone the others," said Jayant Manglik, President, Retail Distribution, Religare Securities. "The move in Nifty was in line with our view and we expect this to continue on Monday as well. Now, the challenging part is to manage stock-specific positions in such volatile scenario. We suggest limiting leveraged positions and keep them hedged until Nifty resumes its uptrend," he added. In the broader market, the S&P BSE Midcap ended 0.1% down, while the S&P BSE Smallcap index gained 0.3%. The market breadth, indicating the overall health of the market, turned negative. On the BSE, 1,471 shares declined and 1,346 shares advanced. A total of 218 shares were unchanged. Nifty PSU Bank index (up 1.5%) was the leading sectoral gainer, led by gains in Oreintal Bank of Commerce (up 7%), Bank of India (up 5%), Syndicate Bank (up 4%) and Punjab National Bank (up 4%). Nifty Bank and Nifty Private Bank indices settled nearly 1% higher. Among individual stocks, Bank of Baroda, ICICI Bank and SBI were the top movers on Nifty. YES Bank closed 1% higher at Rs 1,532 after the private sector lender announced that its qualified institutional placement (QIP) offer has opened on Thursday. NHPC rose 2% after the company said it signed power purchase agreements with Tata Power-Delhi Distribution on 22 March 2017 for seven power stations, namely Bairasiul, Salal, Tanakpur, Chamera-I, Uri-I, Sewa-II and Chamera-III for a period of 35 years from the date of commercial operations (COD) of the respective power stations. Skipper rallied 8% after the company said that it has secured contracts worth around Rs 405 crore for supply of transmission towers to the projects of Power Grid Corporation of India, Transmissions Corporation of Telengana and Power Transmission Corporation of Uttrakhand. The announcement was made during market hours today, 24 March 2017. Global markets traded mixed today. While, European markets opened lower amid uncertainty over a delayed vote on US President Donald Trump's health-care bill, Asian markets closed higher. The pan-european STOXX 600 was 0.2% lower. France's CAC 40 shed 0.3%, while FTSE 100 was little changed. In Asia, Australia bounced back from a tough few days to be up 0.8%, while MSCI's broadest index of Asia-Pacific shares outside Japan was all but flat. Japan's Nikkei added 0.8% encouraged by a slight softening in the yen. China's Shanghai Composite gained 0.6%, while Hong Kong's Hang Seng added 0.1%.
Stock Universe for Jan to March 2017 Compliant Status No. of Companies Percentage of Total companies Total Market Capitalization Percentage of Total Market Capitalization Shariah Compliant Stocks 1164 30.64 6,683,502.30 56.50 Ratio Based Shariah Non Compliant 1769 46.56 2,138,530.89 18.08 Industry Based Non- Compliant 865 22.77 3,006,522.85 25.42 Total Traded Stocks 3799 99.97 11,828,556.04 100.00 Markets are directionally efficient, meaning that today s price reflects what is currently known about the future direction of the markets. *ITE-35 Shariah 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 Shariah is a broad based index constitutes 211 companies from large, mid and small size companies spread over 9 Shariah permissible sectors. This is parent (macro Index) and it commensurate with BSE- 500 and S&P CNX 500 *** Shariah universe comprises of companies derived (Filtered) from total traded stocks on Bombay Stock Exchange (BSE) as per Shariah norms Caution: Islamic Investments strictly prohibits 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 and Newsletters are based on the theory of Technical & Fundamental Analysis Combined. Pragmatic Wealth Management Pvt. Ltd.