Research Desk – Stock Broking Morning Moves November 13, 2014

Research Desk – Stock Broking
Morning Moves
November 13, 2014
March 21, 2014 Market Buzz
Global Indices
Global Indices
, 2012
SGX Nifty*
Dow Jones
NASDAQ
S&P 500
FTSE 100
Nikkei 225*
Hang Seng*
Source : Bloomberg
(Close)
(Pts)
Chg (%)
8431.50
17612.20
4675.14
2038.25
6611.04
17221.44
23937.01
17.50
-2.70
14.58
-1.43
-16.36
24.39
-1.17
0.21
-0.02
0.31
-0.07
-0.25
0.14
0.00
*(as of 7:30:00 am) IST)

Oct CPI inflation eases to 5.52%, Sept IIP stands at 2.5%

Aurobindo Pharma set to acquire US nutritional supplements maker Natrol for
$133 million

RPower to commission Rs 2000 cr solar plant in Rajasthan

Tata Steel Q2 profit rises 37% on sale of land in Mumbai for Rs 1,145 crore
as compared to Rs 916.8 crore in the year-ago period

India Cements posts Rs7.49 crore profit in Q2 compared with a loss of
Rs.31.44 crore a year ago

Aditya Birla Nuvo Sept quarter net profit rises 56% to Rs 452.05 crore from
Rs 290.15 crore

IFCI Q2 net profit rises 24% to Rs173 crore
Sectoral Gainers/Losers
Chg(
%)
Sector
(Close)
(Pts)
S&P BSE AUTO
18617.56
217.16
1.18
S&P BSE BANKEX
20117.78
223.20
1.12
S&P BSE POWER
2121.32
-29.36
-1.37
S&P
? BSE METAL
Source: BSE India
11205.93
-102.29
-0.90
Source: Bloomberg, leading business newspapers & websites
Market View
* CD consumer durables
Nifty : Top Gainers & Losers
Gainers
%Cg
AXISBANK
DLF
AMBUJACEM
KOTAKBANK
BAJAJ-AUTO
3.19
2.23
1.84
1.80
1.78
Losers
%Cg
POWERGRID
CIPLA
TATAPOWER
TATASTEEL
NTPC
-3.12
-2.86
-2.73
-2.56
-2.43
Source : NSE India
Institutional Activity
Cash Market
Net
Value
Futures (FIIs)
Net
Value
FII
459.47
Index
179.68
DII
-559.44
Stock
556.49
Source: NSE India
Value (Rs in crs)
Intra-day Recommendations
Scrip Code
Act
Entry
SL
Tgt
MARUTI
L
3352-3359
3345
3380
LICHSGFIN
L
410-412
407
422
AUROPHAR
L
1060-1062
1048
1085
YESBANK
L
700-701
696
709
JINDALSTEL
S
Below 152
155
147
Note: Act=Action: Entry=Entry; SL=Stop loss; Tgt=Target; L= Long;
S= Short, BLW= Below.ABV=Above
CPI and IIP numbers likely to drive market towards new high: Nifty resolved
its 5 days tight trading range on the higher side by gapping up, following the
strong Asian cues on Wednesday. Nifty moved higher to make another all time
high of 8415.05. Post European markets opening nifty moved southwards to fill
the gap, but still managed to close positive at life time high of 8383.30. Going
forward, on the macro front, inflation and IIP numbers released post market hours
on Wednesday are better than expected might fuel this ongoing rally and nifty
might move towards 8500 levels in the coming sessions. Technically nifty gave an
upside breakout of 5days tight trading range, and closed above the range
indicating its uptrend is resumed and can march higher. However on the lower
side nifty moving below 8290, is an indication of caution to the ongoing up move.
For the day, we recommend traders to buy Nifty around 8380 levels with a strict
stop loss placed below 8350 levels for potential upside targets of 8430-8440
levels.
Nifty Option: Sell Nifty Nov 8300 PE @ 38-40, Stop Loss: 8290, Targets: 20-25;
TF: 3-4 Days.
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DERIVATIVES INSIGHT
Nifty Tracker
Nifty Dynamics
Particulars
Current
Previous
% Chg
Nifty Spot
Near Fut
Mid Fut
Near Fut OI
Near Mid Fut OI
COC %
Mid COC %
Nifty PCR Vol
Nifty PCR OI
Market OI (Rs. cr.)
8383.30
8418.80
8469.85
2.38
0.18
10.30
8.97
1.05
1.05
203608
8362.65
8395.85
8446.40
2.32
0.17
9.06
8.50
1.10
1.10
196170
0.25
0.27
0.28
2.50
5.61
1.25
0.47
-4.59
-4.59
3.79
8.27
8.42
-1.78
14.43
14.80
-2.50
Market COC (%)
India VIX
Options Activity (Near Month)

Nifty Nov futures premium increased to 35.50 points from 33.20 points.
Futures added 6 lakh shares in OI.

Nifty Dec futures premium increased to 86.55 points from 83.75 points.
Futures added more than 94,000 shares in OI.

India VIX ended at 14.43 while Nifty historical volatility decreased to
15.25% from 15.67%.

Nifty put options added 30 lakh shares in open interest, while Nifty call
options added 10 lakh shares.

Nifty call options average Implied Volatility (IV) increased to 15.26% from
14.15% and Nifty put options average (IV) decreased to 13.35% from
13.90%.

The average Market COC decreased to 1.78%, with total market open
interest increased by 3.79% to Rs 2,03,608 crore.
Positional Recommendations
CESC Nov Fut: Buy @709-710 levels for targets of 720-722 with stop loss
at 704 levels. CESC witnessed closure of short positions in yesterday’s trade.
The stock shed nearly 6% of open interest during last trading session. The
stock may test 720-722 levels in short term perspective.
YESBANK Nov Fut: Buy @ 703-704 levels for targets of 716-718 with
stop loss at 698 levels. Yes Bank witnessed addition of long positions in
yesterday’s trade. Stock added more than 7% in open interest during last
trading session. The stock has made new life time high of 704.70 in last
trading session. We expect the stock to test 716-718 levels in short term.
TATAMOTORS Nov 540 CE: Tata Motors 540 strike Call option has open
interest of 5,29,500 shares. It added 24,000 shares in yesterday’s trade with
IVs at 30.23%. Long positions can be assumed in the option between Rs.9-10
with stop loss at 5 (spot) levels, for targets of Rs 18-20.
Hybrid Strategy Payoff
Hybrid Strategy
BEAR PUT IN CIPLA
CIPLA Nov 620 PE has open interest of 74000 shares, with shed of 7500
shares in OI in last trading session and CIPLA Nov 590 PE has open interest
of 34500 shares with shed of 15500 shares in OI in last trading session.
Buy one lot of CIPLA Nov 620 PE @ 15-16 and Sell one CIPLA Nov 590
PE @ 5-6; Max Loss: Rs. 5000; Max Gain: Rs. 10000; BEP: 610.
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Research Desk – Stock Broking
PIVOT TABLE
Scrip
CMP
S2
S1
Pivot
R1
R2
28008.90
8383.30
27863.50
8345.07
27936.20
8364.18
28031.34
8389.62
28104.04
8408.73
28199.18
8434.17
AXISBANK
BAJAJ-AUTO
481.15
2599.55
460.38
2515.95
470.77
2557.75
476.73
2591.35
487.12
2633.15
493.08
2666.75
BHARTIARTL
BHEL
387.30
247.45
381.07
241.65
384.18
244.55
386.62
247.90
389.73
250.80
392.17
254.15
CIPLA
COALINDIA
618.30
345.90
598.90
341.43
608.60
343.67
625.70
346.63
635.40
348.87
652.50
351.83
DRREDDY
GAIL
3439.70
485.60
3397.77
479.87
3418.73
482.73
3440.47
487.37
3461.43
490.23
3483.17
494.87
HDFC
HDFCBANK
1142.70
911.75
1118.57
896.18
1130.63
903.97
1140.07
911.93
1152.13
919.72
1161.57
927.68
HEROMOTOCO
HINDALCO
2967.35
151.30
2907.12
148.87
2937.23
150.08
2956.12
151.87
2986.23
153.08
3005.12
154.87
HINDUNILVR
ICICIBANK
770.00
1707.95
759.40
1683.62
764.70
1695.78
768.80
1705.37
774.10
1717.53
778.20
1727.12
INFY
ITC
4106.00
369.50
4064.33
362.03
4085.17
365.77
4117.93
367.88
4138.77
371.62
4171.53
373.73
LT
M&M
1613.50
1253.60
1586.23
1234.13
1599.87
1243.87
1621.93
1258.13
1635.57
1267.87
1657.63
1282.13
MARUTI
NTPC
3359.75
142.20
3285.72
139.17
3322.73
140.68
3347.02
143.47
3384.03
144.98
3408.32
147.77
393.65
974.05
388.98
960.95
391.32
967.50
394.88
975.25
397.22
981.80
400.78
989.55
2746.05
241.75
2715.08
233.98
2730.57
237.87
2751.03
242.88
2766.52
246.77
2786.98
251.78
SUNPHARMA
TATAMOTORS
906.05
531.85
872.25
515.22
889.15
523.53
907.00
530.22
923.90
538.53
941.75
545.22
TATAPOWER
TATASTEEL
91.05
468.35
88.48
455.18
89.77
461.77
91.98
472.23
93.27
478.82
95.48
489.28
2591.75
556.05
2556.58
548.38
2574.17
552.22
2592.58
556.63
2610.17
560.47
2628.58
564.88
SENSEX
NIFTY
ONGC
RELIANCE
SBIN
SSLT
TCS
WIPRO
Corporate Actions
Company
Series
Ex-Date
Record Date
Purpose
NOIDATOLL
EQ
17-Nov-14
18-Nov-14
Interim Dividend - Rs.1.00
PAGEIND
EQ
17-Nov-14
18-Nov-14
2nd Interim Dividend - Rs.18.00
Results
ALOKTEXT
VOLTAS
BALKRISIND
BOMDYEING
CAMSONBIO
DLF
TATAPOWER
FINOLEXIND
FORTIS
GICHSGFIN
HINDALCO
HINDPETRO
IOC
MRPL
NBCC
CIPLA
SUNPHARMA
SAIL
Sources: NSE India, BSE India, Bloomberg, Karvy Research, Leading Business Newspapers & Websites.
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Research Desk – Stock Broking
References
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.
Legends: BPP: Book part profits; BFP: Book full profits; AP: Average profits; EMA: Exponential moving average; SA: Simple average; RVS:
Revised stop loss level.
KARVY RESEARCH DESK – STOCK BROKING
JK Jain
Head Research
QUERIES & FEEDBACK
Toll-Free: 1800 425 8283
Email ID: service@karvy.com
Karvy Stock Broking Limited
“Karvy Centre”, Avenue-4, 2nd Floor, Road No: 10, Banjara Hills, Hyderabad – 500 034. India.
Tel: 91-40-23312454; Fax: 91-40-23311968
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