Religare Morning Digest Nifty Outlook

Religare Morning Digest
November 10, 2014
Nifty Outlook
The benchmarks were seen ending flat for third consecutive session amid intraday volatility. Initially, the
sentiments were on the negative side in reaction to the report by the Organization for Economic
Cooperation and Development (OECD), where it lowered India's GDP growth forecast to 5.4% for this year
from 5.7% projected earlier in September. But, the downside also remained limited; tracking continuous FIIs
inflow.
We believe markets are in normal consolidation phase which usually happen post an exceptional move.
And, participants, especially those who wish to trade and invest fresh, can consider this as an opportunity
to buy stocks from private banking, auto, finance, and midcap space.
Nifty
VWAP
Max Call
Max Put
8364
8500
8000
Religare Super Ideas
News
Arvind Ltd reported an increase of 3.56 per cent in its consolidated net profit to Rs. 93.26 crore for the
second quarter ended on September 30, 2014.
United Bank of India reported a net profit of Rs 43.80 crore in Q2 September 2014 compared with net loss
of Rs 489.47 crore in Q2 September 2013.
Scrip
Buy/
Sell
CMP
Initiation
Range
SL
Target
Duration
AMARAJABAT
BUY
665.00
657 - 675
645
710
3-5 Days
IDFC
BUY
152.1
152 - 154
148
164
3-5 Days
L&T reported 6.5 percent rise in its second quarter profit. Its net profit came in at 10.42 billion rupees for
the three months to September 30, 2014.
Sectors to watch
Derivative Ideas
Instrument
B/S
Lot
CMP
M&M 1250 CE
B
250
31
M&M 1300 CE
S
250
14
SL
8
TARGET
33
TRADE STATS
FII & DII activity (Rs. in Cr.)
Sector Name
Outlook
Category
Amt
MTD
YTD
BANKS
STABLE
FII
1030.85
1234
84923
IT
STABLE
DII
-1204.63
3390
15176
OIL &GAS
STABLE
No. of
contracts
Turnover
(in cr.)
IDXFUTS
408063
10721
IDXOPT
4577115
99950
STKFUTS
832939
25787
Results as on Nov 7, 2014: Adani Ports, Adani Power, Apollo Tyres, Bharat Forge, Dena Bank, Godrej Ind, Ipca Labs, Jain Irrigation, Motherson Sumi, REC, TataChem
Disclaimer: http://www.religareonline.com/research/Disclaimer/Disclaimer_RSL.html
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Religare Morning Digest
November 10, 2014
Short term Ideas : (15-30 Days)
Derivatives Ideas :
Scrip
CMP
Initiation Range
Closing SL
Target
ENGINERSIN
270.15
272.50-280
257
310
PRESTIGE
248.30
245-252
235
285
M&M
BUY M&M 1250 CE @ 31 AND SELL M&M 1300 CE @
14, SPREAD @ RS 17, TARGET RS. 33 SL 8
LOT SIZE : 250
*Stoploss trailed
Remarks: Net maximum profit of Rs 4000 and
Engineers India Limited (ENGINERSIN)
Prestige Estates Projects Ltd. (PRESTIGE)

It has rallied from 130 till 280 levels in just
four months (Mar to Jun-14). Post that it is
consolidating and trading in narrow range.


Steep run-up followed by consolidation phase
has resulted in a “Flag pattern” on monthly
chart. It is a continuation pattern indicating
upside momentum to continue.
The stock doubled (135-270) in five month
period (Mar-14 till Jul-14). Post run-up, profit
taking was witnessed and the stock price
retraced 50% as per Fibonacci retracement
levels.

It traded in range 210-240 in the month of Sep &
Oct-14. This trading range was crossed on the
higher side this month. This resulted in
formation of “Flag pattern” on monthly chart.

All this suggest upside move to continue in the
coming trading sessions.

The stock is due for break-out from the above
mentioned pattern formed on the monthly
chart. Hence, traders are advised to create
fresh long positions at current levels.
Disclaimer: http://www.religareonline.com/research/Disclaimer/Disclaimer_RSL.html
net maximum loss of Rs 2250
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Religare Morning Digest
November 10, 2014
Investment Ideas
Scrip
CMP
Recommendation
Price
Target
Duration
Scrip
CMP
Recommendation
Price
Target
Duration
DHFL
377.45
377-388
450
9-12 month
OIL
603.60
603-622
750
9-12 month
Dewan Housing Finance Ltd (DHFL)
Oil India Ltd (OIL)


The price fall in crude oil to its lowest level since 2010 has come as a
boon for state-owned oil and gas companies. A lower price not only
leads to a drastic reduction in under-recoveries but also means working
capital.

OIL is also looking at increasing its gas output from 2.6 billion cubic
metres (bcm) to four bcm. This will boost its prospects in the longer run.
Better realisation, higher gas prices and gradual ramp-up in production is
likely to drive OIL's earnings.
Dewan Housing Finance (DEWH) is the third largest housing finance company in India with 3.7% market share at the end of FY14. The Company is
well positioned to capitalise on the growth opportunities in housing finance in tier II/III cities due to its core expertise in low and middle income (LMI) segment.

With favorable demographics, and increasing income levels with improved affordability the Indian mortgage finance industry has immense
growth potential.

The company has also entered into life insurance business through a JV
called DHFL Pramerica Life Insurance (DPLI), with US based Prudential
Financial.
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