Religare Morning Digest October 30, 2014 Nifty Outlook Extending their previous session's gains, the domestic bourses were seen making a gap-up opening on Wednesday; tracking firm global cues. Interestingly, recovery in the underperforming sectors like IT, Metal and Realty played the crucial role alongside with Auto and FMCG pack. Finally, the benchmark index, CNX Nifty, settled near the day's high and posted gain of nearly a percent. We expect a highly volatile session on Thursday i.e. 30 November, 2014. First, we shall be seeing participants reacting to the Fed meeting outcome in early trade followed by the F&O expiry. Besides, the Nifty index closed near to the psychological barrier of 8100 so we can't ignore the possibility of profit taking prior to next directional move. Keeping all in mind, it's advisable to hedge trading positions and avoid high beta counters. Nifty VWAP Max Call Max Put 7945 8100 8000 Religare Super Ideas News Scrip Buy/ Sell CMP Initiation Range SL Target Duration MINDTREE BUY 1063.8 1055 1070 1025 1165 3-5 Days JSWENERGY BUY 78.15 77.5 - 79 76 83 3-5 Days Dr Reddy’s Laboratories Ltd’s consolidated net profit decreased 16.8 per cent at Rs. 574 crore in the second quarter ended Sept 30, 2014 compared to Rs. 690 crore in the year-ago period. The total revenue increased from Rs. 3,421 crore to Rs. 3,614 crore. International rating agency Moody's retained its negative outlook on the domestic banking system, citing high leverage in the corporate sector that may prevent any meaningful recovery in asset quality. Derivative Ideas : Instrument BANKNIFTY 17000CE BHARTIARTL 410 CE BHARTIARTL 420 CE Sectors to watch B/S Lot CMP B 25 7 B 1000 4.10 S 1000 1.40 SL 1 TRADE STATS FII & DII activity (Rs. in Cr.) TARGET Sector Name Outlook Category Amt MTD YTD 30 BANKS STABLE FII -108 3148 79871 CAPGOODS STABLE DII -99.66 4118 13266 PHARMA STABLE 6 No. of contracts Turnover (in cr.) IDXFUTS 507885 20710 IDXOPT 5438297 220376 STKFUTS 1549346 58755 Results as on Oct 29, 2014: ACC, Allahabad Bank, Ambuja Cements, Andhra Bank, Bharti Airtel, Ceat, Glenmark, ICICI Bank, IDFC, IOB, Maruti Suzuki, NHPC, Titan Company & Yes Bank. Disclaimer: http://www.religareonline.com/research/Disclaimer/Disclaimer_RSL.html 1 Religare Morning Digest October 30, 2014 Short term Ideas : (15-30 Days) Derivatives Ideas : Scrip CMP Initiation Range SL Target FEDERALBNK 139.65 132 - 138 128* 165 DCBBANK 87.10 86 - 88 83.5 105 *Stoploss trailed FEDERALBNK Bank nifty has seen good rollcost of around 69bps (basis points) and nifty at around 50.6 bps. Long rolls in bank nifty and Nifty seen .we expect Bank nifty to out perform. Strategy:-BUY BANK NIFTY OCT 17000 CE @ 7 TGT 30 DCB BANK LIMITED (DCBBANK) Remarks: Net maximum profit of Rs 575 and net maximum loss of Rs 175. BHARTIARTL BULL CALL SPREAD Strategy:- BUY BHARTIARTL OCT 410 CE @ 4.10 AND SELL 420CE @ 1.40 , SPREAD AT 2.70 , TARGET 6 AND SL 1. Remark: Max profit possible Rs 3300 and Max loss possible Rs 1700    It has performed extremely well in past one year (Sep-13 till Sep-14) and is trading well above its long-term averages (100&200 EMA). It rallied from 45 till 130 plus levels during this period. It consolidated for three months between 110 -130 levels. Upside break form this range was witnessed on 13th Oct, 2014 which was backed by heavy volume.  The stock has witnessed steep up move in past one year (Sep-13 - Sep-14). It rallied form 38 till 92 level during that period.  It registered a positive breakout in the month of June-14 from “Rounding bottom” formation on monthly chart. It is a long term reversal pattern indicating a shift in trend from down to uptrend.  Taking all this into account it seems the stock is over due for break towards higher levels. Considering all these factors, it seems the stock is due for a fresh break towards higher levels. Disclaimer: http://www.religareonline.com/research/Disclaimer/Disclaimer_RSL.html 2 Religare Morning Digest October 30, 2014 Investment Ideas Scrip CMP Recommendation Price Target Duration Scrip CMP Recommendation Price Target Duration ICICIBANK 1605.85 1573 - 1620 1850 6-12 month SKFINDIA 1188.85 1114 - 1148 1450 6-12 month ICICI BANK SKF INDIA   SKF India is part of the SKF Group, the global supplier of rolling bearing and seals including self-aligning ball bearing, spherical roller bearing, the hub bearing units that are widely used in car and truck wheel-ends and the latest bearings that find specialised application in steel plants and paper mills.  Its 45% sales are coming from Automobiles segment, 46% from industrials and rest from exports. Two-wheeler and tractors segment continue to do well while passenger car and CV industry continue to struggle.  The company has sufficient land and building, so the future expansion would be from de bottlenecking or from increasing the machinery lines. Capex for CY 2014 is expected to be around Rs 50 crore, mostly routine in nature.  ICICI Bank has reported 16.8% growth in net profit at Rs 2655.30 crore for Q1FY15. Net interest margin (NIM) was 3.40% in Q1FY2015 compared to 3.27% in the corresponding quarter last year and 3.35% in the previous quarter. The bank continued to improve its net interest margin (NIM) for the fourth straight quarter. It has also maintained asset quality nearly steady during the period. Loan growth for the Bank continues to be driven by the retail segment. Growth in the business banking and rural lending segments continued to be healthy, while commercial business loans declined reflecting both a slowdown in this segment. In the view of the operating environment, the Bank continued to adopt a cautious approach to growth in the corporate and SME segments. Disclaimer: http://www.religareonline.com/research/Disclaimer/Disclaimer_RSL.html 3