MARKET Diary

12-May-17

Nifty Intraday Chart Market

Market Value % Change
KEY LEVELS
Morning Traded Market
Support 1 : 9372
SGX NIFTY 9,437.00 -0.03%
Resistance 1: 9460 NIKKIE 19892 -0.35%
HANG SENG 25,126.00 0.00%
Yesterday Closing Market
Sensex 30,250.98 0.01%
Nifty 9,422.40 0.16%
Market Outlook DOW 20,919.42 -0.11%
Event Today After opening on a subdued note, Nifty rose to NASDAQ 6,115.96 -0.22%
make a high of 9450.30 and then it fell to make low
Result CAC 5,383.42 -0.32%
of 9411.60 yesterday. At the end of the day the
AARTIIND , ABFRL index closed at 9422.40. It had a net gain of 0.16% DAX 12,711.06 -0.37%
CENTURYTEX , DRREDDY over the previous days close. The midcap and small
cap indices also moved in line with the benchmark
FTSE 7,386.63 0.02%
GIPCL , HAVELLS index and closed the day near flat. EW ALL SHARE 17,432.91 0.09%
INOXWIND , LALPATHLAB On the sectoral front, some buying interest was % Change in 1 day
LINDEINDIA , NDTV witnessed in Media, Auto and Pharmaceuticals Commodity Price ( Yesterday Closing )
stocks while Private banking and Financial Services
NESTLEIND , ORIENTBANK Commodity/Currencies Value % Change
indices closed in red. The breadth of the market
PAPERPROD , PNBHOUSING was negative and about three shares declined for GOLD 28004.00 0.03%
RELAXO , QUICKHEAL two shares advanced at NSE. SILVER 37992.00 0.11%
SRIPIPES , TITAN Riding on strong momentum, Nifty opened gap up
CRUDEOIL 50.81 0.08%
yesterday though cooled towards the end of the
UCOBANK , VENKYS NATURALGAS 217.80 2.06%
day and filled the gap. Through the day Nifty faced
Concall resistance from the upward sloping line of the flag DOLLAR/RS. 64.37 -0.38%
Glenmark : 8:30 AM pattern at 9440-9460. Nifty range for the May EURO/RS. 69.96 -0.67%
Westlife Develop : 11:00 AM series is maintained at 9300-9500. Interestingly POUND/RS. 82.97 -0.83%
open interest at 9400 Calls did not fall materially
Magma Fincorp : 11:00 AM % Change in 1 day
yesterday and now both for 9400 Calls and 9400
Kirloskar Oil Engines : 11:00 AM Institutional Turnover
Puts, open Interest is 41.0 lakh contracts each.
Pennar Engineer : 11:00 AM Premium of the straddle at 9400 is Rs 138 and that FII
Himadri Speciality : 12:00 PM gives the next target for the Nifty to be 9538 but Investor Buy(Cr.) Sale(Cr.) Net(Cr.)
Glaxo Consumer : 12:00 PM only if 9440-9460 resistance line is broken 11-May-17 5026 3719 1307
convincingly. And as this resistance line is due to a
IFGL Refractor : 3:00 PM rising flag pattern so as time passes this resistance May-17 76435 77484 (1049)
Oriental Bank :3:30 PM level will keep moving higher.Global market 2017 76435 77484 (1049)
remains in a sideways indecisive zone though Nifty
MRSS ,Varun , GMM : 4:00 PM continue to trade firm. Trading sentiment as
Lal Pathlabs : 4:30 PM reflected on leading social media and websites DII
PNB Housing : 5:30 PM remains bearish (at investing.com- bullish Investor Buy(Cr.) Sale(Cr.) Net(Cr.)
SH Kelkar : 5:30 PM sentiment is 25% and bearish -75% presently). This 11-May-17 2586 3623 (1037)
is largely responsible for continued strength of the
Dr Reddy's : 6:00 PM May-17 49775 45264 4511
current rally in Nifty which is already five months
Vardhman Text : 7:00 PM old now 2017 49775 45264 4511

Reduction of Capital
FRONTIER Quote of the Day : "The extravagance of any corporate office is directly proportional to management's
reluctance to reward the shareholders." Peter Lynch

Narnolia Securities Ltd

IEA Snapshot

HEROMOTOCO "NEUTRAL" 12th May 2017

Hero Motocorp is the market leader in the entry segment motorcycle and commands over 50% market share in that segment. The company
has lost 4-5 percent market share in FY17 to Honda Motorcycle, which has grown fiercely in the Indian two wheeler market. Rising
commodity prices and transition from BS-III to BS-IV restricted the company to expand its profitability. The management has stated that the
margins will be under pressure as the full impact of increased commodity prices has not been factored yet. Higher depreciation on Halol
plant will lead to further contraction in profitability as the plants will take at least 6-8 months to ramp up. The uncertainty regarding tax
structure under GST will also keep automobile industry outlook hazy. We expect 320bps deterioration in FY19E RoE. Considering the margin
contraction and uncertainty regarding GST we reduce our target from Rs.3800 to Rs.3575 and change our rating from BUY to NEUTRAL.

VIJAYA BANK "HOLD" 10th May 2017

We expect NIM to improve further in FY18 to 2.75%. Focus of management is growing retail book going forward hence we expect 8 to 10
percent credit growth in FY18. Assets quality is likely to continue to improve going forward but we are cautious for the whole scenario of
assets quality in PSU banking. With the Tier 1 ratio at 9.96% and CRAR at 12.73% management plans to Raise Rs 1000 Cr core capital in
FY18. With this we expect RoE and RoA of 11.7% and 0.6% respectively in FY18.
We initiated this stock at the price of Rs 48 which has almost doubled till now. The stock is currently trading at (1.3x/1.2x PV FY17/FY18E)
and valuation has got stretched which leaves us with little upside, hence we recommend to partly book profit on this stock and hold for the
rest with the target price of Rs 98.

*For details, refer to our daily report- India Equity Analytics

Top News
Granules concall update:
Granules has completed remediation process at Gagillapur
facility and waiting for the USFDA re-inspection.
Company has filed 4 ANDAs in FY17 and plans to file 12
ANDAs in FY18.
Management has given revenue growth guidance of 20% in
FY18.
Company is facing capacity constraint in API segment which
affected its topline growth in 4QFY17.
Management expects 1 new meaningful launch in FY18.
Capex for FY18E is Rs. 340 Cr. in domestic manufacturing
facility and Rs. 250 Cr. in Virginia facility.
HEROMOTOCO concall update:
# High single digit growth for industry in FY18.
# Double digit growth for Hero in FY18.
# EBITDA Margin would be in the range of 14-15%.
# There will be cost pressure in 1QFY18 also.
# A&P expenses will be 2.5% of sales in FY18.
# Depreciation will be high because of commencement of
production in Halol Plant.
# Scooter segment growth will be higher than industry.
# Rural market is expected to post good growth backed by
good monsoon and marriage season.
# Capex guidance of Rs.2500 crore to be spent on R&D (new
product development) and Andhra plant.
# Inventory level 5-6 weeks.
Reliance Infrastructure (RInfra) said an arbitral tribunal has
awarded its arm DAMEPL a compensation of Rs 2,950 crore
against DMRC. DAMEPL, a subsidiary of RInfra, today
announced that it has been awarded compensation of Rs
2950 crore by a three member arbitral tribunal in a
unanimous decision.
Narnolia Securities Ltd
SHEELA FOAM LTD Q4FY17 and FY17 full year - Concall highlights:
Q4 was a challenging quarter..
Post demonetisation markets lifted up..
Q4 was focues on sales growth to meet the annual target set by us for
FY17, which has met almost 97% in FY17
TDI Prices still being high at the moment.. Average TDI prices for full year
was 160/- and for Q was 251/- TDI Prices dropped from 275 to 250 levels
in APril.. (first 15/- and second 10/- decline)
Price Hike: Decided not to hike prices in March QUarter..
Hiked prices in Nov 2016..
Taken price hike of 7% from 20th April 2017..
Price hike is taken mainly in Mattress (B2C) segment..
Australian business is stable as far as budget and delivery is concerned..
Looking for 2 M&A opportunities..
acquisitions will be in different product segment, complementary to our
existing business..
enhancing product categary through acquisitions is the purpose..
acquisitions will be EPS accretive from the day 1.
1st acquisition wil be done through internal accruals, whereas fopr second
one, we may need some debt..
With a view to use the cash for better business opportunities, Dividend
has been skipped for this year..
in our reading, local suppliers this time has large invesntories of TDI..
- Biggest change which is going to happnen is SADARA unit , which are
checking regularly..
Ready for GST with our dealers and distributors from 1st July..
Change in Product mix and TDI price fluctuations were the only reason for
Gross margin decline in Q4..
Maintianed EBITDA margins in FY17 despite of lower gross margins in
FY17 YoY, due to operating efficiencies..
We are focused on EBITDA margin expansion.. will not let it down, owever
 F&O OPEN INTEREST ( Number of Contracts )
Individual Foreign Institutions

MARKET MOVERS (1 MONTH CHANGE)

Nifty Movers NSE Sectoral Indices Performance

TRADING IDEAS

Scrip Reco Initiation Price Target 1 Target 2 Stop Loss Rational

The stock has found a strong support at 100
DMA (near Rs 960) and thereafter gave a
JUBLFOOD Buy 990.2 1027 1048 968 good pullback rally yesterday. Some fresh
buying is likely to emerge in the stock at the
current level

The stock has made a negative divergence in

QUESS Sell 957.85 831 810 879 Stochastic on daily chart. Some sell-off is
expected in the stock in extreme short term.

Narnolia Securities Ltd

 Result Calendar Q4FY17
BSE Code Company Name Date BSE Code Company Name Date
524208 AARTIIND 12-May-17 505807 ROLCOEN 12-May-17
535755 ABFRL 12-May-17 517500 ROTO 12-May-17
519183 ADFFOODS 12-May-17 500350 RSWM 12-May-17
523537 APMIN 12-May-17 539450 SHK 12-May-17
524640 ARCHITORG 12-May-17 513498 SOUTHMG 12-May-17
539301 ARVSMART 12-May-17 517214 SPICEMOBI 12-May-17
532230 BENGALT 12-May-17 513605 SRIPIPES 12-May-17
532330 BIOPAC 12-May-17 539353 SWARAJAUTO 12-May-17
532485 BLIL 12-May-17 500114 TITAN 12-May-17
514045 BSL 12-May-17 532371 TTML 12-May-17
500040 CENTURYTEX 12-May-17 532513 TVSELECT 12-May-17
501833 CHOWGULSTM 12-May-17 532505 UCOBANK 12-May-17
538715 DHABRIYA 12-May-17 526941 VAICC 12-May-17
533146 DLINKINDIA 12-May-17 540180 VBL 12-May-17
500124 DRREDDY 12-May-17 523261 VENKYS 12-May-17
517477 ELNET 12-May-17 511463 ALEXANDER 13-May-17
517300 GIPCL 12-May-17 509367 APTANN 13-May-17
505255 GMM 12-May-17 531795 ATULAUTO 13-May-17
517354 HAVELLS 12-May-17 512573 AVANTI 13-May-17
500189 HINDUJAVEN 12-May-17 512109 AVIVA 13-May-17
538838 ICL 12-May-17 502219 BOROSIL 13-May-17
539083 INOXWIND 12-May-17 500074 BPL 13-May-17
505737 INTLCOMBQ 12-May-17 531595 CGCL 13-May-17
522245 IYKOTHITE 12-May-17 532656 FACORALL 13-May-17
532508 JSL 12-May-17 500141 FERROALL 13-May-17
531602 KOFFBREAK 12-May-17 524226 GAEL 13-May-17
539524 LALPATHLAB 12-May-17 521176 GANGOTRI 13-May-17
523457 LINDEINDIA 12-May-17 539337 HKT 13-May-17
505850 MANCREDIT 12-May-17 532822 IDEA 13-May-17
522235 MINALIND 12-May-17 521005 INDOVATION 13-May-17
503776 MODIPON 12-May-17 532209 J&KBANK 13-May-17
503772 MODWOOL 12-May-17 532644 JKCEMENT 13-May-17
532140 MOHITE 12-May-17 519191 JOLYMER 13-May-17
531457 NARSM 12-May-17 504076 JYOTI 13-May-17
532529 NDTV 12-May-17 535136 KFL 13-May-17
500790 NESTLEIND 12-May-17 504392 KRISHNA 13-May-17
524558 NEULANDLAB 12-May-17 532652 KTKBANK 13-May-17
500315 ORIENTBANK 12-May-17 517206 LUMAXIND 13-May-17
500314 ORIENTHOT 12-May-17 502157 MANGLMCEM 13-May-17
509820 PAPERPROD 12-May-17 540401 MAXIMUS 13-May-17
521080 PASARI 12-May-17 526301 MEDINOV 13-May-17
500302 PEL 12-May-17 526616 NATPLAS 13-May-17
532366 PNBGILTS 12-May-17 523558 NETWORK 13-May-17
540173 PNBHOUSING 12-May-17 514114 OASISTEX 13-May-17
523315 PURITY 12-May-17 531254 OPTIFIN 13-May-17
539678 QUICKHEAL 12-May-17 500333 PIXTRANS 13-May-17
530517 RELAXO 12-May-17 513532 PRADPME 13-May-17
Narnolia Securities Ltd
 536659 PVVINFRA 13-May-17 505196 TIL 13-May-17
540108 RCSL 13-May-17 505285 TULIVE 13-May-17
522152 SOLIMAC 13-May-17 531126 VIRTUALS 13-May-17
521200 SURYALAXMI 13-May-17 538567 GULFOILLUB 14-May-17

Earning Estimate Q4FY17

Date NSE CODE SALES SALES YoY PAT PAT YoY
11-May-17 ASIANPAINT 3818 4.00 489 17.20
11-May-17 GSKCONS 1128 -1.30 167 -1.80
11-May-17 GLENMARK 3001 38.00 615 313.70
11-May-17 GRANULES 347 -6.90 36 9.60
11-May-17 HCLTECH 12052 12.70 1971 2.40
11-May-17 ARVIND 2489 7.30 129 16.60
12-May-17 HAVELLS 1590 7.70 126 -23.40
12-May-17 NESTLEIND 2755 20.00 412 35.00
12-May-17 DRREDDY 3757 0.00 465 23.60
12-May-17 TITAN 3004 23.30 172 -9.40
12-May-17 SHK 284 7.00 30 16.60

Result Q4FY17
BSE Code NSE CODE SALES SALES YoY PAT PAT YoY
532281 HCLTECH 13183 23.22 2339 20.57
500126 MERCK 230 9.32 15 76.55
513151 STINDIA 12 43.47 -3 -80.46
509055 VISAKAIND 253 -7.68 10 11.98
509438 BENARAS 16 -0.19 2 -36.63
501298 INDPRUD 0 6.25 0 900.00
590031 DENORA 8 -44.10 1 -54.95
523694 APCOTEXIND 87 28.24 4 -58.76
523756 SREINFRA 1103 39.46 63 205.31
511333 VLSFINANCE 250 5.19 6 183.25
521064 TRIDENT 1234 32.04 100 63.56
517498 WEBELSOLAR 95 46.85 73 -1507.51
526801 PSL 5 -16.80 -558 -47.06
530871 CHEMBOND 72 0.52 2 -183.26
532300 WOCKPHARMA 864 -14.52 -175 3147.58
532486 POKARNA 100 -2.65 18 221.94
532687 REPRO 90 11.37 4 -130.99
535754 ORIENTCEM 597 36.99 17 -10.56
532638 SHOPERSTOP 910 3.15 -36 -458.55
532735 RSYSTEMS 144 1.71 5 -31.15
532416 NEXTMEDIA 17 -5.35 -2 -97.03
532424 GODREJCP 2380 11.85 390 212.33
533138 ASTEC 88 12.67 3 -38.32
534976 VMART 252 41.52 5 941.67
533265 GALLISPAT 100 -31.22 7 75.67
534816 INFRATEL 1605 13.20 597 -16.95
500101 ARVIND 2493 7.74 111 0.44
Narnolia Securities Ltd
 500820 ASIANPAINT 4487 23.89 480 10.52
533248 GPPL 175 15.54 66 30.83
532482 GRANULES 364 -2.34 46 37.60
532835 ICRA 64 -30.08 20 3.36
517380 IGARASHI 131 3.75 18 -3.61
500033 BAJAJTEMPO 949 5.10 55 -25.54
532296 GLENMARK 2457 13.02 184 23.45
509496 ITDCEM 531 -47.71 15 -33.71
505533 WESTLIFE 223 7.50 -4 -36.60
523385 NILKAMAL 571 15.31 32 -1.56
524000 MAGMA 560 -11.28 -110 -268.48

Economic Calendar
Monday Tuesday Wednesday Thursday Friday
Country
8th May 17 9th May 17 10th May 17 11th May 17 12th May 17

CPI m/m , Core CPI m/m ,

NFIB Small Business Index Core Retail Sales m/m ,
PPI m/m , Unemployment
, Final Wholesale Crude Oil Inventories , 10-y Retail Sales m/m, Prelim
Labor Market Claims , Core PPI m/m, Natural
US Conditions Index m/m.
Inventories m/m , Bond Auction, Federal Budget
Gas Storage , 30-y Bond
UoM Consumer Sentiment,
IBD/TIPP Economic Balance. Business Inventories m/m ,
Auction.
Optimism. Prelim UoM Inflation
Expectations.

ECB Economic Bulletin ,

German Industrial Manufacturing Production
German Prelim GDP q/q ,
Production m/m , German m/m, Goods Trade Balance ,
German Factory Orders German Final CPI m/m ,
Trade Balance, French German 10-y Bond Auction, BOE Inflation Report , MPC
m/m , BRC Retail Sales French Prelim Non-Farm
UK/EURO ZONE Monitor y/y , Sentix
Final CPI m/m , French RICS House Price Balance , Official Bank Rate Votes ,
Payrolls q/q , Italian Prelim
Gov Budget Balance , NIESR GDP Estimate. Monetary Policy Summary ,
Investor Confidence. GDP q/q , Industrial
French Industrial Official Bank Rate , Asset
Production m/m.
Production m/m. Purchase Facility , MPC Asset
Purchase Facility Votes.

INDIA IIP Data

Narnolia Securities Ltd

 N arnolia Securities Ltd
201 | 2nd Floor | Marble Arch Bu ild ing | 236B-AJC Bose
Road | Kolkata-700 020 , Ph : 033-40501500
em ail: narnolia@narnolia.com ,
w ebsite : w w w .narnolia.com

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