Morning Notes   LKP Advisory

Morning Notes
LKP Advisory
3 Nov-2014
FII's & DII's in equity
Indices
31-Oct
30-Oct
% Chg.
Major Indices
31-Oct
30-Oct
% Chg.
S&P BSE SENSEX
27,866
27,346
1.90%
CAC 40 Index
4,233
4,141
2.22%
31-Oct
8,322
8,169
1.87%
DAX Index
9,327
9,115
2.33%
9,835
9,714
1.24%
Dow Jones Industrial Av
17,391
17,195
10,931
10,827
0.96%
FTSE 100 Index
6,546
6,464
Nasdaq Composite Inde
4,631
S&P CNX NIFTY
S&P BSE MID CAP
S&P BSE SMALL CAP
Rs.Crs
Buy
Sell
FII' Investments
5583
3828
1755
Net
1.13%
DII's Investments
2176
2452
-276
1.28%
FII's contribution to the total turnover
39%
4,566
1.41%
DII's contribution to the total turnover
19%
BSE Sectoral Indices
S&P BSE CAPITAL GOODS
15,925
15,512
2.66%
Major Asian Indices
31-Oct
30-Oct
% Chg.
S&P BSE OIL & GAS
11,160
10,921
2.19%
Hang Seng
23,998
23,702
1.25%
S&P BSE PSU
S&P BSE IT
FII's in Derivatives
31-Oct
Rs.Crs
Index Fut Index Opt
Stock Fut Stock Opt
8,343
8,173
2.08%
Nikkei 225
16,414
15,658
4.83%
Net
1485
1681
322
137
10,702
10,496
1.96%
KOSPI Index
1,964
1,959
0.28%
OI
15911
54210
45735
1082
14.2%
7.7%
4.4%
1172%
2,166
2,125
1.94%
SSE Composite Index (S
2,420
2,391
1.22%
Chg.OI
S&P BSE METAL
11,850
11,628
1.91%
Taiwan Weighted
8,975
8,888
0.98%
FIIs' contribution to the total Derivatives turnove
S&P BSE BANKEX
19,505
19,167
1.76%
S&P BSE HEALTHCARE
S&P BSE POWER
Futures (NSE)
21%
14,354
14,116
1.69%
Commodities (MCX)
31-Oct
30-Oct
% Chg.
31-Oct
30-Oct
S&P BSE REALTY
1,553
1,531
1.49%
Aluminium (28NOV2014
127
126
0.63%
USDINR 26-NOV-2014
61.64
61.76
% Chg.
-0.19%
S&P BSE TECk
5,938
5,852
1.47%
Copper (28NOV2014)
415
417
-0.53%
EURINR 26-NOV-2014
77.57
77.72
-0.20%
S&P BSE AUTO
18,579
18,315
1.44%
Crude (19NOV2014)
4,931
5,017
-1.71%
JPYINR 26-NOV-2014
55.20
56.68
-2.62%
S&P BSE FMCG
7,497
7,463
0.45%
Gold (5DEC2014)
26,135
26,603
-1.76%
FTSE100 (21-Nov-2014
6496
6488
0.12%
S&P BSE CONSUMER DURA
9,875
10,199
-3.18%
Silver (5DEC2014)
35,797
36,574
-2.12%
S&P500 (21-Nov-2014
2012
1970
2.14%
Chg
% Chg
156
8
5.4
TATAPOWER
GAIL
Chg
% Chg
400
-8
-1.9
ZEEL
ACC
344
-3
-1.0
1495
-2
-0.1
3.5
ITC
355
0
-0.1
56
3.5
DLF
124
0
0.0
Company
LTP
Chg
% Chg
Company
LTP
Chg
% Chg
RELINFRA
638
41
6.8
TITAN
393
-27
-6.4
20
1
6.0
BHARTIARTL
398
-9
-2.3
UNITECH
BSE 100
25
IDFC
156
8
5.1
ZEEL
345
-3
-1.0
ADANIPORTS
285
13
4.9
UBL
697
-4
-0.6
SRTRANSFIN
950
44
4.8
ABB
1167
-6
-0.5
Company
LTP
Chg
% Chg
Company
LTP
Chg
% Chg
TILAKFIN
309
-53
-14.6
39
-2
-4.9
ASTRAL
355
-17
-4.6
854
-40
-4.5
1257
-49
-3.8
Company
LTP
Chg
% Chg
SVGLOBAL
149
-16
-9.5
VMART
535
-46.6
-8.0
3
11.6
32
10.6
12
1
10.1
NBCC
840
67
8.6
SRF
IL&FSTRANS
198
15
7.9
JUBLFOOD
Company
LTP
Chg
% Chg
GVKPIL
ONMOBILE
39
6
18.9
NCC
60
7
13.0
414
48
13.0
19
2
11.2
103
9
10.0
IFBIND
IVRCLINFRA
Top Losers
33
338
BSE Midcap
HCC
ADVANTA
Top Losers
Top Gainers
BSE 100
BSE Midcap
Top Gainers
Top Gainers
BSE Smallcap
3.6
LTP
BHARTIARTL
727
NAHARSPING
4.3
Company
1653
LT
4
18
Top Losers
BPCL
95
529
CNX Nifty
LTP
IDFC
Top Losers
Company
BSE Smallcap
CNX Nifty
Top Gainers
PIPAVAVDOC
CTRNIND
26
-1.9
-6.7
USHDI
295
-17
-5.4
ABCIL
260
-15
-5.3
Domestic Market View Markets to make a positive but cautious start of the new
week
The Indian markets surged by about two percent in last
session, supported by broad based buying. Today, the start
of the new holiday truncated week is likely to be a bit
cautious but positive. Marketmen will be reacting to the data
of eight core sector, whose growth plunged to eight-month
low of 1.9 per cent in September much lower than 5.8 per
cent in August this year, as output in crude oil, natural gas
and fertiliser declined. However, traders will get some
support with Finance Minister Arun Jaitley’s statement that
economic growth in the current fiscal will be in the 5.5-5.9
per cent range and declining prices of crude oil and food will
help lower inflation. FM has outlined major priorities of the
government as reviving and sustaining higher GDP growth,
increasing savings, fiscal consolidation, keeping the Current
Account Deficit at moderate level and reviving investment
cycle, among others.
There will be some buzz in the aviation sector stocks, as jet
fuel (ATF) rates have been cut by a steep 7.3 per cent, the
fourth straight reduction in prices since August on back of
falling international oil rates. Auto sectors too will keep
buzzing with the their announcement of monthly sales
numbers, most of the major car makers have announced
flat or lower sales growth in October despite festive season.
Domestic Market Overview
Benchmarks continue to log fresh high; Nifty surpasses 8,300 mark
Extending their winning streak to fourth straight session, Indian equity benchmarks scaled yet another
lifetime closing high levels on Friday, which took Nifty above its crucial 8,300 mark, while Sensex surpassed
psychological 27,850 mark with gains of around two percentage points. Sentiments remained positive since
beginning of the trade and there appeared not even an iota of profit booking in the session as the
benchmarks managed to fervently gain from strength to strength as investors continued hunt for
fundamentally strong but oversold stocks.
Sentiments remained up-beat on sustained fund inflows, driven by a slew of economic reforms announced
by the government amid optimism over strong corporate earnings. Some support also came after
government announced austerity drive. The Finance Ministry in wake of lower revenue realisation till date,
has issued new austerity measures, including 10 per cent cut in non-Plan expenditure and ban on creation of
new posts. Also, the government has said that it is committed to improving the savings rate and plans to
launch new products to achieve the objective.
There was broad based buying witnessed in the markets and apart from the blue chips, the broader markets
too equally participated in the rally. Sentiments also remained jubilant on report that foreign institutional
investors turned aggressive buyers in Indian equities after they remained net buyers to the tune of Rs 1,257
crore on Thursday. Appreciation in Indian rupee too supported the sentiments. The partially convertible
rupee was trading at 61.35 per dollar at the time of equity market closing against the Thursday’s close of
61.46 on the Interbank Foreign Exchange as stronger Asian currencies and local equities aided the Indian
unit. Meanwhile, shares related to real estate and infrastructure counters extended their previous session’s
rally after government relaxed foreign direct investment (FDI) rules in the construction sector by reducing
minimum built up area as well as capital requirement and easing exit norms. Additionally, software stocks
gained on positive economic data in US, the biggest outsourcing market for the Indian IT firms.
Global Market Overview
Asian markets ended in green on Friday
Asian markets ended in green on Friday, after the Bank of Japan unexpectedly boosted monetary stimulus.
The Bank of Japan surprised global financial markets by expanding its massive stimulus spending in a stark
admission that economic growth and inflation have not picked up as much as expected after a sales tax hike
in April. The jolt from the BOJ, which had been expected to maintain its level of asset purchases, came as
the government signaled its readiness to ramp up spending to boost the economy and as the government
pension fund, the world’s largest, was set to increase purchases of domestic and foreign stocks. BOJ
Governor Haruhiko Kuroda portrayed the decision as a preemptive strike to keep policy on track, rather than
an admission that his plan to reflate the long moribund-economy had derailed.
US markets climb after Japan boosts economic stimulus
The US markets closed higher on Friday, sending the S&P 500 and Dow Jones Industrial Average into
record territory, after a surprise stimulus plan from the Bank of Japan was announced. On the domestic
economy front, Chicago PMI rose to a one-year high in October, helped by gains in new orders. Chicago
PMI rose to 66.2, a gain of 5.7 points, as the new-orders component leaped to 73.6. The bounce-back in the
Chicago Business Barometer marks a solid start to Q4 and suggests that against a backdrop of concerns
about weakening growth in Europe and China, the US economy is still growing firmly. The final October
reading on the University of Michigan/Thomson Reuters consumer-sentiment index rose to 86.9 -- the
highest level since July 2007 -- from a final September reading of 84.6. For context, the consumer-sentiment
gauge averaged 86.9 over the year leading up to the recession.
Dow Jones Industrial Average added 195.10 points or 1.13 percent to 17,390.52, Nasdaq was up by 64.60
points or 1.41 percent to 4,630.74, while S&P 500 ended higher by 23.40 points or 1.17 percent to 2,018.05.
LKP Advisory Index Futures
Total Open Interest
Future
Chg
Spot
Chg
Prem /
31-Oct
(%)
31-Oct
(%)
Disc
NIFTY
8,353
1.88
8,322
1.87
30.5
22,185
CNXIT
11,372
1.67
11,341
1.95
30.8
22
3.5
BANKNIFTY
17,146
1.37
17,045
1.70
101.4
2,038
7.8
(OI in '000 Shares)
31-Oct
Chg (%)
13.3
Increasing OI, Increasing Delivery Qty & Increasing Price in Stock Futures (Open Interest in '000 Shares)
Symbol
Total OI
31-Oct % Chg.
% Del.
Prev
% Del.
36%
66%
Del Qty Cash Market
31-Oct
Spot
(Rs.)
Fut
(Rs.)
Spot
Chg (%.)
Fut
Chg (%.)
Prem /
Disc
1,123,329
529
532
3.6%
4.0%
3.0
GAIL
4,441
23%
M&M
3,184
16%
868,193
40%
66%
78,723
1306
1309
1.4%
1.3%
3.0
WIPRO
7,118
12%
2,348,995
78%
69%
170,542
564
567
0.6%
0.7%
3.8
APOLLOTYRE
12,234
12%
2,141,231
37%
34%
1,181,603
219
220
1.4%
1.3%
1.3
ARVIND
12,475
11%
808,678
23%
18%
277,092
298
299
0.4%
0.0%
1.1
MARUTI
2,673
10%
283,134
28%
17%
37,644
3337
3358
3.0%
2.9%
20.4
48,420
8%
7,172,971
33%
40%
3,310,439
156
157
5.4%
5.2%
1.1
12.8
IDFC
SBIN
2,786,618
Increase
Del Qty
5,055
7%
1,035,812
42%
43%
271,178
2703
2716
2.5%
2.4%
AXISBANK
23,562
7%
1,629,521
37%
29%
329,690
439
440
2.1%
1.8%
0.5
ADANIENT
6,108
6%
934,157
46%
41%
564,717
484
487
2.9%
2.8%
3.1
Increase in
Del Qty
Spot
(Rs.)
Fut
(Rs.)
Spot
Chg (%.)
Fut
Chg (%.)
Prem /
Disc
7,726,922
399
401
-2.1%
-2.1%
2.2
Increasing OI, Increasing Delivery Qty & Decreasing Price, (Open Interest in '000 Shares)
Symbol
BHARTIARTL
% Del.
Prev
% Del.
75%
68%
Total OI
31-Oct % Chg.
Del Qty Cash Market
12,092
11,779,184
24%
31-Oct
Open Interest Break-up
(Rs. in Cr.)
31-Oct
30-Oct
Change in OI
% Chg
INDEX FUTURES
22,143
19,410
2,733
14.08
INDEX OPTIONS
92,440
78,180
14,260
18.24
114,583
97,589
16,993
17.41
56,136
53,698
2,438
4.54
56.97
TOTAL INDEX
STOCK FUTURES
8,057
5,133
2,924
TOTAL STOCKS
64,193
58,831
5,362
9.11
GRAND TOTAL
178,776
156,420
22,355
14.29
FII's
116,938
108,166
8771
8.11
61,838
48,254
13584
28.15
STOCK OPTIONS
Others
LKP Advisory Tech View
Corporate News
¾
Wipro, a leading global information technology, consulting and business process services company, has assisted SRL Diagnostics transform
its customer care operations by providing successful customer experiences across multiple communication channels leveraging Oracle
Service Cloud.
¾
JSW Steel has concluded the acquisition of the entire shareholding comprising 99.85% of Welspun Enterprises (WEL) held in Welspun
Maxsteel (WMSL) on October 31, 2014. This is pursuant to the approval of the Competition Commission of India (CCI) received for the
acquisition of WMSL by the company.
¾
NIIT, a leading global talent development corporation, has entered into a global alliance with IEEE Computer Society, the computing
professional’s single, unmatched source for technology information, inspiration and collaboration, to provide training based on the Guide to the
Software Engineering Body of Knowledge (SWEBOK) in order to create quality engineers to meet the industry's requirement for job-ready
talent.
¾
IFB Agro Industries has received an approval for capacity expansion project of Noorpur Distillery. The board of directors at their meeting
held on October 31, 2014 has approved for the same.
¾
Coastal Corporation’s one of the existing shareholder in promoter’s group has acquired 60,000 equity shares from Eastward Exim &
Shipping, consisting of 4.72% of the total equity share capital of the company during the financial year 14-15.
¾
GMR-Megawide Cebu Airport Corporation (GMCAC), a joint venture between GMR Group and Megawide Construction Corporation, has taken
full operational control of the Mactan Cebu International Airport (MCIA) in Cebu, Philippines. This marks a key milestone for GMCAC in its
journey to transform MCIA into a world class airport. This is also an important landmark for Philippines as the MCIA is the country’s first airport
to be privatized under the administration’s ambitious PPP programme aimed at modernizing key infrastructure assets.
¾
Cairn India, one of the largest independent oil and gas E&P companies in India, has started polymer injection at the Mangala field in state of
Rajasthan. Mangala Enhanced Oil Recovery (EOR) project, which is amongst the largest polymer flood EOR programmes in the world,
commences well ahead of the guidance provided by the company. The polymer injection activity would gradually be ramped up.
¾
Deepak Nitrite has issued Commercial Papers (CP) for Rs 25 crore value dated October 31, 2014. This has been subscribed by HDFC Bank
having maturity date as January 29, 2015. The aforesaid issuance of CP is to fund working capital requirement of the company.
¾
Filatex India has received an approval for putting up certain Plants & Machinery(s) for manufacturing of downstream value added products at
its existing unit at Dahej. This will enable the company to enhance its profitability and long term economic viability at an approximate cost of
Rs 200-250 crore. The board of directors at their meeting held on October 31, 2014 has approved for the same.
¾
Welspun Enterprises (WEPL), part of the $3 billion Welspun Group, has completed the sale of Welspun Maxsteel (WMSL) to JSW Steel
(JSW) in follow up of the definitive agreement entered between the two companies on August 18, 2014.
¾
Adani Power has reportedly received Competition Commission of India’s (CCI) approval for its proposed deal with Lanco Infratech to buy
latter’s 1,200-MW imported coal-fired power plant at Udupi in Karnataka for more than Rs 6,000 crore, marking the biggest acquisition in
India’s thermal power industry.
¾
NHPC has decided to extend financial assistance to the Civil Works Contractor HCC to enable completion of balance works of Teesta Low
Dam Hydroelectric Project Stage-IV.
¾
TVS Motor Company has launched TVS TRU4 Synthetic 10W 30, a fully synthetic engine Oil. TVS TRU4 Synthetic meets Japanese
Automotive Standards Organization - JASO MA2 and American Petroleum Institute - API SL. The main characteristics of TVS TRU4 Synthetic
engine oil include smooth clutch operation, low temperature startability and longer service life. This high quality product is available in 1 litre
and 900 ml packs and comes with an attractive pricing of Rs 525 per litre.
¾
JSW Steel has been assigned Ba1 rating with stable outlook by Moody’s and BB+ rating with stable outlook by Fitch.
LKP Advisory Tech View
¾
BNR Udyog’s - one of the promoter - Sunita Rathi has hiked her stake in the company with purchased of 10,550 equity shares. Sunita Rathi
has purchased the shares of the company on October 29, 2014 from the market.
¾
Reserve Bank of India has notified that the aggregate share holdings in ING Vysya Bank by Foreign Institutional Investors (FII)/Registered
Foreign Portfolios Investors (RFPI)/Non-Resident Indians (NRI)/Persons of Indian Origin (PIO) and through American Depository Receipts
(ADR)/Global Depository Receipts (GDRs)/Foreign Direct Investment (FDI) have gone below the prescribed threshold caution limit stipulated
under the extant FDI policy.
¾
Graphite India has become a subsidiary company of Emerald Company. The company has received an intimation from Emerald Company
that the process of transfer of 9,26,71,438 shares comprising 47.432% pursuant to scheme of amalgamation has been completed.
¾
Vijaya Bank has augmented its Tier-II capital by raising Rs 500 crore through an issue of unsecured redeemable non-convertible Basel-III
compliant Tier-II bonds with a coupon rate of 9.15% per annum. The issue was fully subscribed and allotment was made on October 30, 2014.
The bank has shareholders nod to raise additional equity capital of Rs 600 crore from the markets.
¾
Manappuram Finance has signed a non- binding term sheet to acquire majority equity shareholding of Asirvad Microfinance (AMPL) through
a combination of secondary purchase of equity shares from certain existing shareholders and primary investment by way of subscription to
equity shares in AMPL. AMPL, head quartered in Chennai, is a RBI registered NBFC-MFI with operation in Tamil Nadu, Kerala, Odhisa and
Gujarat.
¾
Bliss GVS Pharma has received an approval to consider, negotiate & finalize purchase of substantial stake in Shree Sales, which presently
carries majorities of packaging business for the company. The board of directors at its meeting held on October 30, 2014 has approved for the
same.
¾
Tech Mahindra, a specialist in digital transformation, consulting and business re-engineering, has been named a Microsoft 2014 State and
Local Solution Partner of the Year. The Partner of the Year awards highlight and recognize excellence and achievement among Microsoft
partners who are leading in the cloud-first, mobile-first world, and producing exceptional results for US government, healthcare and education
customers.
¾
Ceat has received an approval for investment of Rs 420.00 crore for setting up a plant for manufacture of 2-3 wheeler tyres with a capacity of
120 MT/day. The board of directors at their meeting held on October 30, 2014 has approved for the same.
¾
Mahindra First Choice Services (MFCS), a wholly owned subsidiary of Mahindra & Mahindra, has expanded its presence in North India with
the inauguration of its authorized dealership ‘Badaliya Auto’. The showroom is located near the Civil Hospital, Dasuya in state of Punjab and is
spread over 5000 square feet.
¾
GTL has received an approval for merger of wholly owned subsidiary (WOS) of the company ‘ADA Cellworks Wireless Engineering’ with itself.
The board of directors at their meeting held on October 30, 2014 has approved for the same. The above is however subject to necessary
consents from regulators / court / lenders as may be required in this regard.
¾
Ceat has received an approval for investment of Rs 50.00 crore for implementing a project for manufacture of Specialty Tyres (which includes
off- the-road tyres) through a subsidiary company. The board of directors at their meeting held on October 30, 2014 has approved for the
same.
Economy
¾
RBI increases gold loan limit for UCBs to Rs 2 lakh
The Reserve Bank of India (RBI) has raised the limit for urban co-operative banks (UCBs) to sanction loan against gold collateral to Rs 2 lakh
from Rs 1 lakh at present under the bullet repayment scheme.
As per the bullet repayment scheme, the UCBs are allowed to sanction loan only on conditions that the period of loan shall not exceed 1 year
from the date of sanction. Interest will become due for payment along with principal only at the end of 12 months from the date of sanction.
Further, banks should maintain a Loan to Value (LTV) ratio of 75 per cent on the outstanding amount on an ongoing basis, failing which the
loan will be treated as a Non Performing Asset.
LKP Advisory Tech View
The RBI’s notification further stated that UCBs should take necessary and usual safeguards and formulate suitable policy for lending against
gold jewellery with the approval of their boards of directors.
¾
Govt likely to make amendments to land acquisition act in winter session of Parliament
To kick-start the development of stalled projects, the government is expected to make amendments to land acquisition act during the winter
session of Parliament, which would commence since November 24, 2014. Among many things, Centre may decide upon dilution of the
consent clause, restricting social impact assessment to large projects and giving states the powers to define 'emergency' under 'urgency
clause' for acquiring land, which are some of the many demands sought by states. The Act has faced criticism from various quarters including
some states.
Further, it is on account of contentious nature of the legislation, the government has been holding wide-ranging consultations to ensure a
smooth sailing when the amendments are tabled in the Parliament. According to Commerce and Industry Minister Nirmala Sitharaman, the
government is looking for amendments for making the acquisition process easier without making changes on the compensation clause. The
Rural Development Ministry has already suggested a number of amendments that will ease provisions such as mandatory consent of at least
70% locals for acquiring land for PPP projects and 80% for private projects.
¾
Govt to launch new products to improve savings
In a bid to enhance the thriftiness of the people, the government has asserted that it is committed to improve the savings rate and has planned
to launch new products to achieve the objective.
Joint Secretary of Department of Economic Affairs (DEA) Rajat Bhargava, has asserted that, two new products will be launched soon by the
government which will be of tremendous significance in increasing the savings rate and giving more choices to small savers. Higher saving
plays an important role to boost the economic growth as more money is deposited into the banks and thus allocated to finance the
infrastructure projects.
To bring unbanked sections of the society into the formal financial sector and promote the savings of people, the government launched
‘Pradhan Mantri Jan Dhan Yojana’ to help the poor open bank accounts. Under the Jan Dhan Yojana, the person opening the bank account
will get a debit card and the family will get Rs 1 lakh insurance cover.
¾
Policy changes by government and RBI termed as ‘credit positive’ by Moody’s
International rating agency, Moody’s has termed recent measures by the government coupled with those unveiled by the Reserve Bank of
India (RBI) on the economic, fiscal and financial fronts as ‘credit positive’ for the economy since this would help sustain higher GDP growth
and would go long way in addressing some of the constraints on the country’s sovereign credit profile.
In a report, titled 'Recent policy changes to support growth acceleration', Moody's Investors Service lauded the recently launched ‘Make in
India’ campaign which saw the government initiating some reforms in the labour and investment policies front. It also appreciated
government’s financial inclusion measures, infrastructure development initiatives, clarity around inflation targets, as well as banking and
energy sector reforms.
Further, the international rating agency termed these measures as incremental rather than radical and underscored these measures would
harness the country's economic advantages of size, diversity and a deep pool of labour and savings. Also, it added that such measures would
not only improve country’s investment climate but also will allow the economy to reap the benefits of lower global commodity prices and
international financial flows seeking real investment assets.
¾
Govt announces austerity measures to cut fiscal deficit
With an aim to trim the fiscal deficit to 4.1 per cent of gross domestic product (GDP) in FY15, the government has issued new austerity
measures including 10 per cent cut in non-Plan expenditure and ban on creation of new posts. Keeping in mind lower revenue realisation till
date, the government also decided to barred senior officials from first-class air travel, foreign jaunts, holding meetings in five-star hotels and
purchase of new cars.
LKP Advisory Tech View
A memorandum issued by Expenditure Department of the Finance Ministry noted that during the current fiscal, every Ministry/Department
shall effect a mandatory 10 per cent cut in non-Plan expenditure excluding interest payment, repayment of debt, Defence capital, salaries,
pension and Finance Commission grants to the States. The government highlighted that there is a need to continue to rationalise expenditure
and optimise available resources and these measures will help to check fiscal deficit without restricting the operational efficiency of the various
government’s departments.
These measures have been announced after considering the low growth in indirect tax collection at 5.8 per cent during first six months of the
current fiscal against the budgeted target of 25.8 per cent. Tax is main source of revenue for the government. Meanwhile, it is expected that
government's latest austerity drive would lead to a saving of up to Rs 40,000 crore or 0.3 per cent of the Gross Domestic Product
(GDP). India's fiscal deficit during the FY14 narrowed to $86.08 billion or 4.5% of GDP as compared to 4.89% during the FY13
Source: Reuters, Ace Equity & LKP Research
LKP Advisory Tech View
CNX NIFTY
TECHNICAL VIEW
Nifty has closed at all-time high levels and comfortably above 8300 with increased volumes in index futures as well as individual stock volumes
indicating that momentum in index is likely to continue in coming days. All the sectors participated in Nifty’s rally implying that major correction
doesn’t seem to be on cards in near term. Nifty index can test 8400 levels in coming days where some amount of resistance can be seen. On the
other hand 8000 level is likely to act as strong support for Nifty in short term.
IMPORTANT LEVELS FOR THE DAY
Support
BSE
NSE
BANKNIFTY
S1
27,872
8202
16792
S2
28,220
8100
16581
R1
27,309
8366
17134
R2
26,961
8467
17345
Pivot
27,591
8,284
16,963
Resistance
.
LKP Advisory PIVOT POINTS
Scrip Name
CMP
RB2
RB1
PP
SB1
SB2
ACC
1499
1524
1511
1500
1489
1476
Scrip Name
CMP
RB2
RB1
PP
SB1
SB2
GAIL
529
588
556
530
504
472
ADANIENT
484
501
491
482
473
463
GLENMARK
718
737
725
715
705
693
ADANIPORTS
286
302
291
283
274
264
GMRINFRA
22
22
22
22
21
21
ADANIPOWER
48
50
49
48
46
45
GODREJIND
302
312
305
300
294
288
ALBK
115
120
116
114
111
108
GRASIM
3508
3598
3541
3495
3449
3392
AMBUJACEM
228
233
230
227
224
221
HAVELLS
285
292
288
284
280
276
HCLTECH
1608
1662
1631
1606
1580
1549
HDFC
1106
1155
1121
1094
1067
1033
912
932
919
908
897
884
83
87
85
83
82
80
3064
3157
3109
3069
3030
2981
ANDHRABANK
84
86
85
83
82
81
APOLLOHOSP
1115
1147
1129
1114
1099
1081
APOLLOTYRE
219
229
224
219
215
210
HDFCBANK
ARVIND
298
313
306
300
294
287
HDIL
46
48
47
46
46
45
ASHOKLEY
HEROMOTOCO
ASIANPAINT
657
669
661
654
647
639
HEXAWARE
198
205
201
198
195
192
AUROPHARMA
968
989
976
965
955
942
HINDALCO
164
170
166
162
159
155
AXISBANK
439
449
443
437
432
425
HINDPETRO
530
551
539
529
519
507
2611
2690
2641
2601
2561
2512
HINDUNILVR
738
762
746
734
722
707
930
954
938
925
912
896
HINDZINC
171
176
173
171
169
167
BAJAJ-AUTO
BANKBARODA
BANKINDIA
285
299
290
283
275
266
IBREALEST
BATAINDIA
1273
1324
1298
1276
1254
1228
ICICIBANK
71
76
73
70
68
64
1627
1666
1641
1620
1599
1573
BHARATFORG
813
835
823
814
805
793
IDBI
71
73
72
70
69
67
BHARTIARTL
399
428
414
403
392
378
IDEA
163
169
166
163
160
157
BHEL
257
262
259
256
253
249
IDFC
156
166
160
154
149
143
BIOCON
448
459
454
450
445
440
IFCI
37
38
37
37
36
36
BPCL
725
758
736
718
700
678
IGL
399
413
405
398
391
383
CAIRN
285
291
288
285
282
279
INDIACEM
112
115
113
111
110
108
CANBK
402
418
407
398
390
379
INDUSINDBK
720
735
725
717
709
699
CENTURYTEX
556
593
575
561
546
529
INFY
4051
4144
4084
4035
3986
3926
CESC
678
699
685
673
661
647
IOB
59
62
60
58
56
54
CIPLA
667
697
678
662
647
628
IOC
364
376
369
363
358
351
COALINDIA
371
384
375
368
360
351
IRB
252
264
258
253
247
241
1690
1741
1716
1696
1676
1651
ITC
355
367
361
356
351
345
CROMPGREAV
189
194
190
188
185
181
JINDALSTEL
162
170
165
161
157
151
DABUR
227
239
231
225
218
210
JISLJALEQS
91
98
93
89
85
81
COLPAL
DISHTV
58
60
59
57
56
54
1876
1937
1898
1867
1835
1796
125
131
128
125
122
118
DRREDDY
3168
3301
3221
3156
3091
3011
EXIDEIND
158
162
160
158
156
FEDERALBNK
142
146
144
141
139
DIVISLAB
DLF
LKP Advisory JPASSOCIAT
31
33
32
31
30
29
JPPOWER
13
14
14
13
13
12
JSWENERGY
80
82
81
81
80
79
JSWSTEEL
1263
1294
1275
1259
1244
1225
154
JUBLFOOD
1259
1342
1302
1270
1238
1199
137
JUSTDIAL
1500
1557
1520
1491
1461
1425
PIVOT POINTS
Scrip Name
CMP
RB2
RB1
PP
SB1
SB2
Scrip Name
CMP
RB2
RB1
PP
SB1
SB2
KOTAKBANK
1118
1150
1129
1112
1094
1073
TATACHEM
407
421
414
408
401
394
124
129
126
123
120
117
TATACOMM
403
415
408
401
395
387
69
71
70
69
68
67
TATAGLOBAL
160
164
162
160
158
155
362
383
369
358
346
332
TATAMOTORS
536
556
543
532
521
508
KTKBANK
L&TFH
LICHSGFIN
LT
1655
1725
1678
1641
1603
1556
TATAMTRDVR
335
349
341
334
327
319
LUPIN
1369
1398
1380
1365
1350
1332
TATAPOWER
94
98
95
93
91
88
M&M
1306
1359
1329
1304
1280
1250
TATASTEEL
490
512
498
486
474
460
M&MFIN
294
300
296
293
289
285
TCS
2608
2678
2633
2596
2560
2515
MARUTI
3337
3455
3375
3311
3247
3168
TECHM
2518
2564
2533
2508
2483
2452
MCDOWELL-N
2764
2814
2781
2753
2726
2692
TITAN
394
425
410
398
386
371
MCLEODRUSS
260
268
263
259
254
249
UBL
698
715
707
700
694
686
31316
32483
31855
31347
30839
30211
87
90
88
87
86
84
NHPC
21
22
21
21
20
19
2548
2603
2569
2541
2513
2479
NMDC
171
178
174
171
168
165
UNIONBANK
226
246
235
226
217
205
UNITECH
MRF
NTPC
150
156
152
149
146
143
OFSS
3383
3445
3405
3372
3339
3299
ONGC
405
416
409
403
398
ORIENTBANK
285
302
291
281
PETRONET
199
206
203
200
21
23
21
20
19
18
349
360
353
346
340
333
391
VOLTAS
251
261
255
251
246
240
272
260
WIPRO
564
574
568
563
559
553
197
194
YESBANK
685
712
694
680
666
648
ZEEL
344
355
350
346
341
336
282
294
287
281
275
267
PNB
931
952
939
928
916
903
POWERGRID
146
149
147
145
144
142
92
96
94
91
89
86
633
648
638
630
622
613
RANBAXY
RCOM
106
114
109
106
102
98
RECLTD
302
316
307
299
292
283
RELCAPITAL
475
501
485
472
459
442
RELIANCE
1001
1026
1009
995
982
965
RELINFRA
637
682
652
627
602
572
RPOWER
76
81
78
75
73
70
SAIL
83
86
84
83
82
81
SBIN
2703
2774
2726
2686
2647
2598
SIEMENS
873
896
883
872
861
848
SRTRANSFIN
950
1013
969
933
897
853
SSLT
256
266
260
256
251
245
SUNPHARMA
845
871
855
841
828
812
SUNTV
327
336
330
325
320
314
SYNDIBANK
126
134
129
124
120
115
LKP Advisory ULTRACEMCO
UPL
PFC
PTC
UCOBANK
The information in this documents has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true and is for general guidance only. While every effort is made to ensure the accuracy and completeness of information contained, the company makes no guarantee and assumes no liability for any errors or omissions of the information. No one can use the information as the basis for any claim, demand or cause of action. LKP Securities Ltd., and affiliates, including the analyst who have issued this report, may, on the date of this report, and from time to time, have long or short positions in, and buy or sell the securities of the companies mentioned herein or engage in any other transaction involving such securities and earn brokerage or compensation or act as advisor or have other potential conflict of interest with respect to companies mentioned herein or inconsistent with any recommendation and related information and opinions. LKP Securities Ltd., and affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. LKP Securities Ltd. Ph: (91‐22) 66351234 FAX: (91‐22) 66351249 E Mail: lkpadvisory@lkpsec.com web: http://www.lkpsec.com LKP Advisory