ngMorning

Call
Call
October 13, 2014
13 October 2014

Markets end lower; Infy zooms

Domestic

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Chg. %

26,297.4

26,637.3

-1.28%

NIFTY 50

7,860.0

7,960.6

-1.26%

CNX 500

6,330.4

6,416.4

-1.34%

11,230.8

11,407.9

-1.55%

SENSEX 30

CNX MIDCAP

Global

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NIKKEI

15300.55

15478.93

-1.15%

HANGSENG

23088.54

23534.53

-1.90%

6339.97

6431.85

-1.43%

4276.237

4378.336

-2.33%

16544.1

16659.25

-0.69%

Advance

Decline

T/O(mn)

NSE

396

1136

158573

BSE

998

1910

Curr. Spot

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Chg.%

USD/INR

61.335

61.055

0.46%

77.6544

77.9297

-0.35%

0.5692

0.5662

0.53%

FTSE
NASDAQ
DJIA

Market depth

EURO/INR
JPY/INR
GBP/INR

98.4698

98.9973

-0.53%

8.456

8.468

-0.14%

Net Invest

9-Oct*

MTD

CYTD

(103)

13710

6574

16002

107475

(US$mn)

MFs(us$mn)
*NSE as per provisional

Nif. Gainers

Chg. %

Nif. Losers

Chg. %

INFY

6.51

JINDALSTEL

-5.85

HCLTECH

2.34

NMDC

-5.35

ASIANPAINT

1.37

TATAMOTORS

-4.94

BHEL

1.05

HINDALCO

-4.53

HEROMOTOCO

0.84

TATASTEEL

-4.27

quarter earnings.

Buy(mn)

Sell (mn)

Net(mn)

12,578.56

27,217.08

-14,638.52

INDEX FUT
IND.OPTIONS

189,707.27

167,483.87

22,223.40

STOCK FUT

23,832.52

25,595.36

-1,762.84

ST. OPTIONS

38,762.56

38,891.49

-128.93

Global risk appetite remained weak as investors were uncertain about the global
economic growth.

The Indian rupee depreciated on fresh demand for the US currency from banks and
importers due to firm dollar overseas and sharp fall in domestic equities.

Indias foreign exchange reserves fell for the fifth straight week to close $2.755 billion
lower at $311.427 billion, a five-month low during the week ended October 3, 2014.

India Factory output growth slowed to five-month low of 0.4% in August mainly due
to contraction in manufacturing and capital goods.

Global Macro

Japan consumer sentiment index for general households, which includes views on
"overall livelihood," incomes, jobs and readiness to buy durable goods, was at 39.9
in September, down from 41.2 in August.

UK construction output slid 3.9% on the month in August and fell YoY for the first
time since May 2013, by 0.3%.

US import prices fell 0.5% in September as the cost of petroleum products declined
and a strong dollar made it cheaper for Americans to buy goods from the EU. Export
prices fell 0.2% during the month.

Corporate Buzz

Infosys expects revenue in the FY15 to rise 7-9%, maintaining the guidance it had
given in July

Reliance Industries is planning to sell its 45% stake in the US' Eagle Ford shale
acreage for around US$4.5bn.

FII Deri.

Benchmark shares shaved of most of Thursdays gain on Friday amid weak global
cues even as Infosys surged nearly 7% on the back of better-than expected second

Chg. %

G-Sec 10yr

FIIs

M&M will stop production for four days this month across its tractor plants located at
Rudrapur and Jaipur in the wake of weak demand.

Fitch Ratings revised the Outlook on JLR, subsidiary of Tata Motors, outlook to
"Positive" from "stable" on continued strong operational performance.

Cairn India Rajasthan block production in July-September stood at 163,262 barrels

of oil per day as compared to 175,478 bpd a year ago.

ADR

Chg. %

ADR

Chg.%

HDFC BANK

-2.3%

TATA MOTORS

-3.1%

ICICI BANK

-1.6%

WIPRO

-0.3%

INFOSYS
DR REDDY

Commodities
BRENT CRUDE

5.7%

Suzlon plans to list its German subsidiary Senvion on the London Stock Exchange
through an initial public offer, which is likely to garner close to INR 70bn.

-0.9%

Network18 narrowed its net loss in to INR 148mn in 2QFY15 as against INR 169mn
in 2QFY14. Revenues grew 11.2%YoY to INR 6.69bn.

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Previous

Chg. %

90.21

90.05

0.2%

GOLD $/OZ

1219.00

1226.75

-0.6%

CHINA STEEL HRC $/MT

2920.00

2920.00

0.0%

LME COPPER $/MT

6703.00

6777.00

-1.1%

LME ALUM $/MT

1901.75

1920.10

-1.0%

65.52

65.52

0.0%

RICHARD BAY COAL $/MT

NMDC and NALCO to set up a thermal power plant in Madhya Pradesh at a cost of
INR 220bn.

Aban Offshore received two firm orders worth US$91.33mn each for the deployment
of jack-up rigs for a period of three years.

Outlook

Benchmark indices are likely on a cautious note bolstered by demand for safe haven
assets on worries about the health of the global economy with slowdowns evident in
Europe.

Nifty short-term outlook

Supports / Resistances
NIFTY

S1

S2

7590

7800

R1

R2
New high

Nifty has been on a long term up trend. The Index is currently on a corrective decline from its new high. The significant support is place at
7800 level. The market continues to be buying on dips. We maintain our bullish stance on the Nifty.

S1
ACC

S2

PIVOT

R1

R2

1389

1381

1403

1411

1425

AMBUJACEM

210

208

213

214

217

ASIANPAINT

649

631

661

679

691

AXISBANK

376

373

380

383

387

2329

2292

2349

2386

2406

BANKBARODA

853

842

864

875

886

BHARTIARTL

387

383

395

399

406

BHEL

216

209

220

227

232

BAJAJ-AUTO

Trading guidelines
This model is based on the premise that the PIVOT is the most
important price level that decides the intraday trend. Much like how
the door or a window hangs by a hinge and sways in the wind, the
intraday trend also hangs by this PIVOT LEVEL and swings
because of the demand-supply, volatility and market sentiments
prevailing in the market. Hence its importance in intraday trading.
Wait for the market price to stabilize after opening in the first 30

BPCL

664

659

673

678

687

CAIRN

282

276

289

295

301

CIPLA

580

571

589

599

608

Opening Price is considered around close of previous day. Avoid

COALINDIA

332

329

337

340

344

BUYING if prices open abnormally high and avoid selling if prices

DLF
DRREDDY
GAIL

149

145

153

157

160

2960

2933

3003

3030

3072

440

433

443

450

454

GRASIM

3374

3350

3432

3456

3514

HCLTECH

1707

1669

1725

1763

1781

HDFC

988

977

1015

1026

1052

HDFCBANK

859

852

872

879

892

2789

2723

2831

2897

2938

HINDALCO

148

146

151

154

157

HINDUNILVR

711

706

724

729

742

HEROMOTOCO

ICICIBANK

minutes of trading.

open too low.

If the market price is stable above the pivot level after 20-30
minutes of opening, then GO LONG and book profit near the
resistant level (R1 & R2)
If the market price is stable below the pivot level after 20-30
minutes of opening, then GO SHORT and book profit near the
support level (S1 & S2)

Stop loss

1442

1433

1462

1472

1492

Since you are aware of the 'potential returns' at the time of initiating an

IDFC

138

136

140

142

144

intraday trade (difference between the entry price and profit targets), you

INDUSINDBK

618

611

624

631

636

should set up an appropriate STOP LOSS around 1% above / below of the

3717

3477

3812

4052

4148

trade price or a level comfortable to you, to protect yourself if the market

ITC

346

343

356

359

369

JINDALSTEL

151

148

158

161

167

INFY

KOTAKBANK

turns and goes against you.

992

984

1006

1014

1028

LT

1444

1427

1461

1478

1495

LUPIN

1320

1310

1330

1340

1350

If you have already initiated a trade with clear-cut profit targets and a stop

M&M

1297

1282

1330

1345

1378

loss level, and find during the course of the trading day that the market

MARUTI

2936

2912

2965

2989

3018

turns and goes the other way and crosses the TREND LEVEL, then trade

NMDC

147

144

154

157

163

again: For instance, if your first trade was a LONG trade and the market

NTPC

140

138

141

144

144

price drops through the TREND LEVEL to lower price levels, then GO

ONGC

401

399

406

408

413

SHORT and if your first trade was a SHORT trade and the market price

PNB

891

871

900

919

928

POWERGRID

135

134

136

137

139

RELIANCE

945

924

957

978

990

SBIN

2424

2399

2459

2484

2519

SSLT

245

241

252

257

264

SUNPHARMA

806

788

818

836

848

TATAMOTORS

482

473

498

507

524

TATAPOWER

82

81

83

84

85

TATASTEEL

441

436

450

455

464

TCS

2650

2630

2688

2708

2747

TECHM

2305

2272

2345

2378

2418

ULTRACEMCO

2444

2424

2497

2517

2570

WIPRO

574

568

587

593

606

ZEEL

316

313

319

322

326

Alternate strategy

rises through the TREND LEVEL to higher price levels, then GO LONG.
S1, S2 are the immediate support levels.
R1, R2 are the immediate resistance levels.

Cholamandalam Securities Limited

Member: BSE,NSE,MSE
Regd. Office: Dare House,2 (Old) # 234) N.S.C Bose Road, Chennai 600 001.
Website : www.cholawealthdirect.com
Email id customercarewm@chola.murugappa.com
CIN U65993TN1994PLC028674

Chola Securities is a leading southern India based Stock broker. Our focus area of coverage within the Indian market is Mid and small caps with a focus on
companies from southern India.
Our Institutional Equities services are carried out in partnership with RCCR, a boutique Investment research and Corporate Advisory firm founded by a
team with extensive experience in the Asset management industry.

RESEARCH
Srinivasan V

Head of Research*

+91-44 - 4505 6003

srinivasan@chola.murugappa.com

Sathyanarayanan M

Consumption

+91-44 - 3000 7361

sathyanarayananm@chola.murugappa.com

Murugesa S

Engineering & Cement

+91-44 - 3000 7363

murugesas@chola.murugappa.com

Michel Charles C

Technicals

+91-44 - 3000 7353

michelcc@chola.murugappa.com

Rajasekhar R

IT & Auto Ancillary

+91-44 - 3000 7360

rajasr@chola.murugappa.com

Karthikeyan P

Macro & Financial Services

+91-44 - 3000 7344

karthikeyanp@chola.murugappa.com

Sreedevi K

Associate

+91-44 - 3000 7266

sreedevik@chola.murugappa.com

Venkat Chidambaram

Head of FII Business & Corporate Finance*

+91-44 - 24473310

venkatc@chola.murugappa.com

Lakshmanan T S P
Santosh Kumar Sharma

Chennai
Mumbai

+91 - 9840019701
+022 - 22617210

lakshmanantsp@chola.murugappa.com
santoshks@chola.murugappa.com

Nikesh
Sathyanarayana N
Muthiah A N
Baskaran S
Saravanan
A Jaganathan
V Kumar
Maneesh Gupta
Srinivasa Reddy D V
Sudipta Bhaumik
Riken B Mehta
Pravin S
Deepak V Kshirsagar
Sivaraman G
M N Chandra Sekhar

AHMEDABAD
BANGLORE
CHENNAI - HO
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COIMBATORE
DELHI
HYDERABAD
KOLKATA
MUMBAI
MADURAI
PUNE
SALEM
VIZAG

079 30002968 / 69
080-22211160/61/62/63/64
044 3000 7371
044 28240052 / 54
044 - 2452 2111 / 2333
044-42022155/32571443
0422 - 4292041 / 4204620
011 - 30461161 / 62 / 63
040 - 40126821 / 22
033 - 44103638 / 39
022 - 22617210 / 7203
0452 - 2601195 / 96
020 - 30225432 / 33 /34
0427-2313226/4040226
0891 - 6642718

nikeshds@chola1.murugappa.com
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Compliance Officer

044 - 30007226

shakilac@chola.murugappa.com

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