Morning Note

22 AUG 2013

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DATA MATRIX OF LAST SESSION

INDEX Sensex Nifty Midcap Smallcap Close 17906 5303 5274 5181 %Chg -1.86 -1.81 -1.24 -0.80

FIRST LIGHT HEADINGS

FIIs stood as net sellers in equities as per August 21 data: SEBI Infosys wins highest LEED ratings for buildings in Mangalore and Mysore, India Uttam Galva Steels to surrender its two SEZs in Maharashtra SAIL incurs Rs 42,101 crore expenditure till July 2013 Nalco plans to increase exports by 40% to 1.4 million tonne this fiscal Lambodhara Textile commences commercial production under Modernization Project Central Bank of India revises interest rates on FCNR-B deposits

VALUE TRADED (Rs Crs)

BSE NSE F& O Total Total Volume 2261 13631 246274 262166

%Chg
16.49 7.72 27.93 26.58

MARKET INSIGHT
On Wednesday 21 Aug 2013, The markets despite a good gap-up start went through a very

NET INFLOWS (Rs Crs)

FIIs DIIs (792.1) 775.5

%Chg
-44.39 -27.27

FII OPEN INTEREST (Crs)

FII Index Futures FII Index Options FII Stock Futures FII Stock Options 16284.90 59300.00 56110.44 3051.40

%Chg
10.87 2.06 108.01 -0.39

World Indices
Dow Jones Nasdaq FTSE 100 14898 1643 6391

%Chg
-0.70 -54.54 -0.96

volatile trade with traders opting to book profit at every single opportunity, fearing major downtrend once FII outflow starts. All the early optimism fizzled out in the final hours of the trade and major benchmarks crashed, losing many of their crucial support levels.The markets looked firm in early deals after RBI on late Tuesday announced slew of measures to ease liquidity, including Rs 8,000 crore bond buyback, to ensure adequate credit flow to the productive sectors of the economy. The Reserve Bank will conduct open market purchase of government bonds of Rs 8,000 crore on August 23 to inject liquidity. Nifty and Sensex reclaimed their 5500 and 18500 respectively on the back of short covering and some value buying. However, markets lost ground in the second half of the trade with banking stocks that were flying high since morning,started cooling off. Rupee once again showed its weakness and resumed its declining path, hitting a record low of 64.51/$ intraday as rupee traders clicked on panic button after selling dollar in early morning on anticipation of strength in the local currency. There was across the board weakness in the emerging market currencies. and a low of 18567.70 and 17807.19 respectively. Among the 30-share Sensex pack, 7 stocks gained, while 23 stocks declined. (Provisional) The BSE Mid cap and Small cap indices ended lower by 1.21% and 0.72% respectively. On the BSE Sectoral front, Bankex up by 1.25% and Consumer Durables up by 0.86% were the only gainers, while Realty down by 4.04%, Metal down by 3.69%, Oil & Gas down by 3.47%, FMCG down by 2.79% and Health Care down by 2.19% were the top losers. (Provisional) from its previous close of 27.23 on Thursday. The CNX Nifty lost 77.85 points or 1.44% to settle at 5,323.60. The index touched high and low of 5,504.10 and 5,268.45 respectively. 11 stocks advanced against 39 declining on the index. (Provisional) Hong Kong stocks dropped as investors awaited details of discussions at the Federal Reserve's last policy meeting to gauge when the US central bank might pare its bond purchase. Chinese shares ended flat with positive bias dragged down by weakness in financials and property counters ahead of economic survey that could offer clues on how the Chinese economy is doing. Japan's Nikkei bounced back from a seven-week low on concern that capital outflows from Asia will accelerate as the Federal Reserve starts tapering its monetary stimulus. The Taiwan Stock Exchange Corporation was closed today due to Typhoon TRAMI.

Commodity
Crude (US$/bl)

%Chg
103.8 1363.9 -92.43 1201.43

Gold (US$/oz) Top 5 Movers INDUSINDBK BHEL HDFC HDFCBANK ICICIBANK

Close Price
358.55 105.45 745.45 596 840

%Chg
6.3 4.05 2.64 1.92 1.16

Top 5 Loser
RANBAXY SESAGOA ACC JPASSOCIAT BHARTIARTL

Close Price
339.45 137.5 1,000.00 30.55 301

%Chg
-10.94 -9 -6.98 -5.86 -5.48

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Morning Note
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MARKET OUTLOOK- CAUTIOUSLY OPTIMISTIC

QUANTITATIVE ANALYSIS: The Indian markets after seeing some light intraday, continued their capitulation for the fourth consecutive session. There was an initial spurt in the markets, thanks to the latest RBI measures to loosen some liquidity that led the banking stocks rejoice, moving considerably higher after a series of beating on worries that the apex bank may go for a rate hike as rupee depreciated to a record low. The apex bank took various measures of easing liquidity conditions in the market which has worsened with its recent money tightening steps, including raising short-term rates, to curb volatility in the exchange rate of rupee.The global cues too were not very supportive, as the US markets despite a recovery ended mixed overnight, while the Asian markets too looked in a somber mood in beginning ahead of the release of the minutes of the last FOMC meeting and the traders remained reluctant to take any major positions. For the upcoming sessions we believe

spot index may continue its southward journey however 5310-5290 could be the near term support levels. On the flip side any rebound from current levels could find some strong resistance around 5510-5530. Happy trading...........

Index
SENSEX NIFTY BANK NIFTY

Support 2
17310 5202 8724

Support 1
17680 5262 8990

Previous Close
17906 5356 9321

Resistance 1
18305 5356 9590

Resistance 2
18598 5388 9705

Trend
Rangebound Rangebound Rangebound

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Mansukh Securities and Finance Ltd

Mansukh House, Plot No. 6, Opp. Mother Dairy Plant, Patparganj Road, Pandav Nagar, New Delhi-110002, Phone: 91-11-30211800, 47617800, Fax: 011-30117710, Email: research@moneysukh.com, Website: www.moneysukh.com

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Morning Note
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NAME
Varun Gupta Mohit Taneja Vikram Singh

DESIGNATION
Head - Research Research Analyst Research Analyst

E-MAIL
varungupta@moneysukh.com

mohit.t@moneysukh.com
vikram_research@moneysukh.com

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Please refer to important disclosures at the end of this report

For Private circulation Only

For Our Clients Only

Mansukh Securities and Finance Ltd

Mansukh House, Plot No. 6, Opp. Mother Dairy Plant, Patparganj Road, Pandav Nagar, New Delhi-110002, Phone: 91-11-30211800, 47617800, Fax: 011-30117710, Email: research@moneysukh.com, Website: www.moneysukh.com

SEBI Regn No. INB010985834 / 010985834 NSE: INB230781431 SEBI Reg.No: BSE: INBBSE: 010985834, F&O: INF PMS Regn No. INP000002387 NSE: INB 230781431, F&O: INF 230781431, DP: IN-DP-CDSL-73-2000, IN-DP-NSDL-140-2000 MCX/TCM/CORP/0740 NCDEX/TCM/CORP/0293