ngMorning

Call
Call
September 30, 2014
Domestic

Close

Previous

Chg. %

26,597.1

26,626.3

-0.11%

NIFTY 50

7,958.9

7,968.9

-0.12%

CNX 500

6,408.3

6,396.6

0.18%

11,394.2

11,296.6

0.86%

SENSEX 30

CNX MIDCAP

Markets end lower ahead of RBI policy

30 September 2014

Benchmark indices ended tad lower on Monday, amid a volatile trading session, with
financials leading the decline ahead of the RBI monetary policy review on Tuesday.

Global markets remained weak on nervousness over Beijing's response to

democracy protests in Hong Kong.

Global

Close

Previous

NIKKEI

16310.64

16229.86

0.50%

HANGSENG

23229.21

23678.41

-1.90%

6646.6

6649.39

-0.04%

NASDAQ

4505.853

4512.194

-0.14%

DJIA

17071.22

17113.15

-0.25%

FTSE

Market depth

Chg. %

Advance

Decline

T/O(mn)

NSE

1003

536

132662

BSE

1872

1074

27418

Curr. Spot

Close

Previous

Chg.%

61.5275

61.1575

0.60%

EURO/INR

78.149

77.8987

0.32%

JPY/INR

0.5619

0.5596

0.41%

USD/INR

GBP/INR

99.8933

99.7204

0.17%

G-Sec 10yr

8.491

8.443

0.57%

Net Invest

25-Sep*

MTD

CYTD

(68)

931

13841

13007

32283

82041

FIIs

(US$mn)

MFs(us$mn)

Patel Logistics ended higher on reports that Amazon, entered into an air cargo
alliance with the company for domestic deliveries.

India non-food bank credit growth has slowed to 10.2% YoY in August 2014 as
against an increase 17% YoY in August 2013.

Global Macro

China index of expectations on home price fell to 100.6 in the third quarter from
102.6 between April and June.

UK mortgage approvals numbered 64,212 August, the weakest reading since May,
and down from 66,100 in July.

Euro zone consumer sentiment fell to 99.9 in September from 100.6 in August
weighed down by less optimistic consumers, retailers, and industry.

Euro zone consumer inflation expectations, measured as anticipated consumer price

trends over the next 12 months, fell to 4.0 in September from 6.6 in August.

US consumer spending accelerated 0.5% in August, the government said, and a

positive sign for an economy that appears to be firing on nearly all cylinders.

National Association of Realtors US Pending Home Sales Index, based on contracts

signed in August, fell 1% to 104.7.

*NSE as per provisional

Nif. Gainers

Chg. %

Nif. Losers

Chg. %

SUNPHARMA

3.64

JINDALSTEL

-3.89

TCS

3.35

DLF

-2.68

GAIL

2.41

KOTAKBANK

-2.18

POWERGRID

2.19

TATASTEEL

-1.74

HINDALCO

2.07

COALINDIA

-1.55

FII Deri.

Buy(mn)

Corporate Buzz

Government cancelled approvals of nine SEZ, including that of Hindalco, Essar and
Adani as no satisfactory progress was made to execute the projects.

Strides Arcolab is merging with itself the Shasun Pharma in an all-stock deal.
Shasun shareholders will get five shares of Strides for every 16 held in Shasun.

INDEX FUT

Sell (mn)

14,520

13,527

Net(mn)
994

106,946

101,723

5,224

STOCK FUT

16,985

18,433

-1,448

ST. OPTIONS

15,855

15,596

259

IND.OPTIONS

M&M launched a new110-cc scooter 'Gusto' as the company seeks to challenge the
supremacy of Japan's Honda in the domestic market.

Tata Powers defence engineering unit, TataPowerSED has signed an agreement

with Honeywell International to produce the US CompanysTALIN" navigator in
India.

ADR

Chg. %

ADR

Chg.%

HDFC BANK

-2.7%

TATA MOTORS

ICICI BANK

-2.5%

WIPRO

INFOSYS
DR REDDY

-2.6%

its expansion plans.

2.7%

0.7%
-0.6%

Commodities
BRENT CRUDE

NTPC tied up loans to the tune of US$250mn with Mizuho Bank Limited for funding

Pricol executed a business transfer agreement with Suprajit Engineering Ltd,

Bangalore, to sell its automotive speedo cable business on a slump sale basis.

Close

Previous

Chg. %

97.20

97.00

0.2%

GOLD $/OZ

1219.50

1213.75

0.5%

CHINA STEEL HRC $/MT

2920.00

2910.00

0.3%

LME COPPER $/MT

6787.50

6766.50

0.3%

LME ALUM $/MT

1930.00

1913.50

0.9%

CHINA IRON ORE FINES $/MT

77.70

78.60

-1.1%

RICHARD BAY COAL $/MT

67.06

67.91

-1.25%

Man Industries bagged orders worth about INR 5.5bn from domestic and
international customers for the supply of pipes for oil and gas projects.

ABB bagged an order worth INR 1.72bn from Power Grid Company of Bangladesh.

Seshasayee Paper and Boards will invest INR 4.8bn in its paper mills to expand raw
material capacity and captive power generation.

Outlook

Benchmark indices are likely to open on a flat note ahead of RBI policy review
scheduled at 11am today. RBI is expected to maintain status quo on rates.

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

1421

1403

1434

1453

1466

AMBUJACEM

212

209

214

218

219

ASIANPAINT

621

617

627

631

638

AXISBANK

382

380

387

389

394

2276

2257

2317

2336

2377

BANKBARODA

889

878

899

911

920

BHARTIARTL

400

396

403

407

411

BHEL

204

202

208

210

214

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

625

617

641

649

664

CAIRN

304

302

308

310

314

CIPLA

611

604

617

625

630

Opening Price is considered around close of previous day. Avoid

COALINDIA

340

337

343

346

350

BUYING if prices open abnormally high and avoid selling if prices

DLF
DRREDDY
GAIL

155

153

160

162

166

3186

3153

3232

3264

3311

445

431

450

464

469

GRASIM

3539

3521

3583

3601

3645

HCLTECH

1695

1684

1711

1722

1738

HDFC

1024

1014

1035

1046

1057

858

852

868

874

884

2827

2804

2871

2895

2939

HINDALCO

156

151

159

165

167

HINDUNILVR

738

728

746

756

763

HDFCBANK
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

1445

1435

1462

1472

1490

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

IDFC

139

138

141

143

145

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

INDUSINDBK

619

610

625

634

641

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

3710

3656

3736

3790

3815

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

ITC

362

359

368

371

376

JINDALSTEL

172

169

179

182

189

KOTAKBANK

988

978

1006

1016

1034

LT

1448

1428

1467

1486

1506

LUPIN

1378

1363

1390

1406

1417

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

M&M

1375

1364

1387

1398

1409

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

MARUTI

2997

2982

3017

3032

3052

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

NMDC

163

160

165

168

170

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

NTPC

138

136

139

140

141

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

ONGC

403

399

409

412

419

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

PNB

877

863

889

903

915

POWERGRID

138

136

139

142

143

INFY

RELIANCE

927

922

935

940

948

SBIN

2429

2402

2454

2481

2506

SSLT

269

266

272

274

277

SUNPHARMA

820

798

830

852

862

TATAMOTORS

506

503

511

514

519

TATAPOWER

83

82

84

85

86

TATASTEEL

458

454

469

474

485

TCS

2724

2650

2750

2824

2850

TECHM

2464

2443

2485

2506

2527

ULTRACEMCO

2617

2593

2639

2663

2684

WIPRO

590

580

595

605

609

ZEEL

301

296

303

308

311

turns and goes against you.

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
Lakshmanan T S P
Santosh Kumar Sharma

Head of FII Business & Corporate Finance*

Chennai
Mumbai

Nikesh
Sathyanarayana N
Muthiah A N
Baskaran S
Saravanan
A Jaganathan
V Kumar
Maneesh Gupta
Srinivasa Reddy D V

AHMEDABAD
BANGLORE
CHENNAI - HO
CHENNAI - Nungambakkam
CHENNAI - Adyar
CHENNAI - Ambattur
COIMBATORE
DELHI
HYDERABAD

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

nikeshds@chola1.murugappa.com
sathyanarayanaN@chola.murugappa.com
muthiahan@chola.murugappa.com
baskarans@chola.murugappa.com
saravananmk@chola.murugappa.com
jaganathana@chola.murugappa.com
kumarv@chola.murugappa.com
maneeshg@chola.murugappa.com
srinivasardv@chola.murugappa.com

Sudipta Bhaumik
Riken B Mehta
Pravin S
Deepak V Kshirsagar
Sivaraman G
M N Chandra Sekhar

KOLKATA
MUMBAI
MADURAI
PUNE
SALEM
VIZAG

033 - 44103638 / 39
022 - 22617210 / 7203
0452 - 2601195 / 96
020 - 30225432 / 33 /34
0427-2313226/4040226
0891 - 6642718

sudiptab@chola.murugappa.com
rikenbm@chola.murugappa.com
pravinsn@chola.murugappa.com
deepakvk@chola.murugappa.com
sivaramang@chola.murugappa.com
chandrasmn@chola.murugappa.com

Shakil Ahmed Choudhury

Compliance Officer

044 - 30007226

shakilac@chola.murugappa.com

INSTITUTIONAL SALES
+91-44 - 24473310
+91 - 9840019701
+022 - 22617210

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

RETAIL SALES

*Employees of Business Partner - RCCR

DISCLAIMER:
This report is for private circulation and for the personal information of the authorized recipient only, and we are not soliciting any action based upon it. This report is not to be construed as an offer to sell or
the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. It does not provide individually tailor-made investment advice and has been prepared
without regard to any specific investment objectives, financial situation, or any particular needs of any of the persons who receive it.
The research analyst who is primarily responsible for this report certifies that: (1) all of the views expressed in this report accurately reflect his or her personal opinions about any and all of the subject
securities or issuers; and (2) no part of any of the research analysts compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in this report. This report
has been prepared on the basis of information that is already available in publicly accessible media or developed through analysis of Cholamandalam Securities Limited makes every effort to use reliable,
comprehensive information, but we make no representation that it is accurate or complete.
The views expressed are those of the analyst and the Company may or may not subscribe to all the views expressed therein Cholamandalam Securities Limited reserves the right to make modifications and
alterations to this statements as may be required from time to time without any prior approval. Cholamandalam Securities Limited, its affiliates, directors and employees may from time to time, effect or have
effect an own account transaction in or deal as agent in or for the securities mentioned in this report. The recipient should take this into account before interpreting the report.
All investors may not find the securities discussed in this report to be suitable. Cholamandalam Securities Limited recommends that investors independently evaluate particular investments and strategies.
Investors should seek the advice of a financial advisor with regard to the appropriateness of investing in any securities / investment strategies recommended in this report. The appropriateness of a particular
investment or strategy will depend on an investors individual preference. Past performance is not necessary a guide to future performance. Estimates of future prospects are based on assumptions that may
not be realized. Re-publication or redistribution in any form, in whole or in part, is prohibited.
No part of this material may be duplicated in any form and/or redistributed without Cholamandalam Securities Limited prior written consent.
The news items appearing in this are collected from various media sources and we make no representations that it is complete or accurate