DAILY MORNING NOTE

27 May 2016
Current % %
Indices Value 1D YTD Government fixes transfer fee at 80% of royalty for all minerals
Sensex 25881 2.28 (0.91)
Nifty 7935 2.40 (0.14)
Asian markets are trading mixed with overnight mixed cues from
BSE – Mid Cap 11080 0.97 (0.57) wallstreet. Indian Indices are expected to open marginally higher and
BSE – Sml Cap 10954 0.94 (7.46)
SGX Nifty Fut 7965 0.26 0.23 focus will be on global developments and domestic quarterly earnings.
Sectors –Performance (BSE)
Teck U.S markets ended mixed as crude-oil futures failed to hang on to a move
19297 3.17 (0.17)
Realty 13283 2.96 (5.98) above $50/bbll and investors looking ahead to comments from Federal
Power 11324 2.25 2.38
Auto
Reserve Chair Janet Yellen. Dow Jones lost 0.13% or 23 pts to close at 17828.
11749 0.47 (2.07)
Bankex 15099 0.56 (10.69) While, NASDAQ gained 0.14% or 7 pts to close at 4902.
Capital Goods 7527 1.10 1.75
Nikkei is trading higher by 0.28% while Hang Seng is trading lower by
Index FY16E FY17E FY18E
SensexEPS 1372 1615 1942 0.41%. Sgx Nifty is trading higher by 0.26%
P/E 19.22 16.33 13.58 What to watch
NiftyEPS 401 489 588
20.12 16.50 13.72
 Government fixes transfer fee at 80% of royalty for all minerals, which
P/E
will need to be paid to the states.
FII Trading activities in Cash  India`s installed solar capacity reached 6,000 MW in 6 years
Date Net MTD CYTD
 Road transport ministry releases concept paper to take off old vehicle
FII 26/05 581 1382 12866
from the roads
DII 26/05 685 6539 11837
 Government approves over Rs 5,530 crore for infra boost in 111 cities
Figs. in Rs Cr., Source: Bloomberg.
 Government mulls 10-year tax holiday for low-value electronics
manufacturing
Current % %
Global Indices
Value 1D YTD Corporate
Dow Jones 17852 0.82 2.45
Dow Futures 17801 (0.09) 3.06  Sun Pharma has reportedly terminated the umbrella pact and
Nasdaq 4895 0.70 (2.25) transcation agreements signed with Daiichi Sankyo and its overseas
DAX 10205 1.47 (5.01) subsidiaries due to divestment of Ranbaxy by the Japanese firm
Nikkei 225 16804 0.28 (11.71)  Ambuja Cement has ramped up its capacity by 0.90 MMT/annum
FTSE 100 6263 0.70 0.33 (mtpa) of PPC cement at the Sankrail grinding unit in West Bengal.
Hang Seng 20290 (0.41) (7.44)  Strides Shasun has received tentative approval from the USFDA for
Shanghai A Sha 2792 (0.81) (21.10) Efavirenz tablets used in treating human immunodeficiency virus
Bovespa 49483 0.28 14.15 (HIV) infection.
Strait Times 2780 0.44 (3.60)
 NTPC has announced the opening of its Pakri-Barwadih coal mining
Source: Bloomberg; As on 8.30 am IST
project in Jharkhand
 NIIT has entered into two strategic agreements in China to develop a
Forex Rate
pool of IT professionals in areas like Big Data and analytics
INR/USD 67.34 0.24 (1.75)  RPG Life Sciences has sold its Gujarat-based biotechnology unit to
INR/EUR 75.06 0.89 (3.92)
Intas Pharmaceuticals for Rs 25 crore to focus on core areas of
INR/GBP 98.91 0.04 (0.93)
business
INR/YEN (100) 61.39 (0.44) (10.47)

27 May 2016 For private circulation only

Trading Insights

Insight from bulk deals

Deal % of Share
Entity’s Name Scrip Qty Trans (‘000s) CMP*
Type Capital

CITIGROUP Castrol India S 2689 0.54 376

CREDIT SUISSE Jubilant Food. S 399 0.61 1153

ABG CAPITAL DFM Foods B 158 1.58 1,860

LTR FOCUS FUND DFM Foods B 152 1.52 1860

CITIGROUP Castrol India S 2689 0.54 376

CREDIT SUISSE Jubilant Food. S 399 0.61 1153

Insight from delivery

Scrip Delivery % Total Volume (‘000s) 30 days avg Delivery % CMP*

TVS Motor Co. 47 2678 48 299

PTC India Fin 50 1447 31 69

TRIL 13 523 13 343

PTC India 25 4367 31 69

Chambal Fert. 60 349 61 66

Man Inds. 33 202 34 57

Ucal Fuel Sys. 25 78 25 111

*CMP-Closing Market Price

27 May 2016 2
Investment Picks

Target Target
Target Target
Company CMP Price/ Company CMP Price/
Price Price
CMP (%) CMP (%)
ABB 1297 1239 5% HPCL 1100 848 30%

Ahluwalia Contracts 293 277 6% India Cement 111 93 20%

Arvind 349 312 12% Indian Hume Pipe 373 332 12%

Ashok Leyland 117 104 12% Indraprastha Gas 630 569 11%

Aurobindo Pharma 940 744 26% Infosys Tech 1500 1232 22%

Bajaj Finserv 1950 1789 9% IPCA Labs 680 441 54%

Balkrishna Industries 845 688 23% ITD Cemenration 142 129 10%

Bharat Electronics 1178 1125 5% Mah & Mah 1542 1337 15%

BPCL 1110 926 20% Mahindra Holidays 569 398 43%

Camlin Fine 128 92 39% Manappuram Fin 58 52 11%

Can Fin Homes 1368 1166 17% Maruti Suzuki 4735 4117 15%

CARE 1373 996 38% Mayur Uniquoters 520 395 32%

Cholamandalam Invst 950 873 9% Mold-Tek Pack 181 149 22%

Coal India 410 281 46% Panasonic Energy 435 315 38%

Dish TV 95 86 11% PTC India Fin 49 35 38%

Divi's Lab 1240 1043 19% Reliance Inds 1375 947 45%

eClerx Services 1448 1371 6% Salzer Electronics 283 204 38%

Essel Propack 220 193 14% Solar Inds 3792 3202 18%

Firstsource Sol 52 42 25% Strides Arcolab 1500 1109 35%

Gabriel India 112 86 30% Suprajit Engg 174 162 7%

Godrej Inds 441 344 28% Technocraft Inds 250 233 7%

GSPL 170 133 27% UPL 620 593 5%

Gulf Oil Lubricants 670 541 24% V-Guard Inds 1380 1276 8%

HCL Tech 934 741 26% Wonderla Holidays 409 380 8%

HDFC 1400 1228 14% Zydus Wellness 820 775 6%

HDFC Bank 1400 1181 18%

Note : Selection criteria based on Potential upside ranging from 5 to 50%. Source: Axis Direct.

27 May 2016 3
Technical View (Equity)

Daily call
Index CMP % up/dn S2 S1 P R1 R2
Nifty 8,069.65 1.70% 7900 7985 8035 8120 8170
Sensex 26366.68 1.88% 25780 26070 26235 26530 26695

Daily chart

Comments: Daily view

Nifty opened with an upward gap and buying momentum throughout the session led index to end near the day's high. Nifty
closed at 8070 with a gain of 135 points.
On the daily chart for the second consecutive session index has formed a long Bullish candle forming higher High-Low
compare to previous session indicating positive bias. With current close of 8070 level Nifty has decisively broken out its five
weeks consolidation range (8000-7700 levels) on closing basis indicating strength. This breakout was accompanied with
high volumes which signal increased participation. On the daily as well on weekly chart index has witnessed resumption of
its earlier uptrend as it has continue to form higher Top higher Bottom formation. The chart pattern suggests that if Nifty
crosses and sustains above 8080 level it would witness buying which would lead the index towards 8130-8170 levels. From
current levels an immediate intraday support zone is around 8030 level however any violation of this support zone will
cause some profit booking and index may corrects in the range of 8000-7980 levels. Nifty is trading above 20, 50 and 100
day SMA's which are important short term moving averages, indicating positive bias in the short to medium term. Nifty
continues to remain in an uptrend in the short and medium term, so buying on dips continues to be our preferred strategy.
The daily strength indicator RSI and momentum oscillator Stochastic have both turned positive and are above their
respective reference lines indicating positive bias
The trend deciding level for the day is 8035. If NIFTY trades above this level then we may witness a further rally up to 8120-
8170-8255 levels. However, if NIFTY trades below 8035 levels then we may see some profit booking initiating in the market,
which may correct up to 7985-7900-7850 levels

Stocks to focus for intraday Long Srtransfin, DLF, Ibulhsgfin, Century Text., Yes Bank, Hdfc,
Dr.Reddy

Stocks to focus for intraday Short Bataindia, Tataglobal

27 May 2016 4
Technical View (Currency)

Daily call
Index CMP % up/dn S2 S1 P R1 R2
USD/INR
67.17 -0.37% 66.98 67.07 67.24 67.33 67.50
(Future)

USDINR (May Future) Daily chart

Comments:

USDINR (May. Future) CMP: 67.17

In previous trading session USDINR opened on negative note and selling pressure for most part of the session led
USDINR to close in negative territory at 67.17 with loss of 0.37%. It was the second consecutive session that USDINR
has extended its down move forming a bearish candle. It has also formed a lower High-Low formation and has
closed below previous session’s low indicating weakness. On hourly chart it has witnessed shift of trend to the
downside.

For the day if USDINR trade and sustains below 67.15 levels then it may witness further acceleration of corrective
move in the range of 67-66.90 levels. On the upside an immediate intraday resistance zone is around 67.30 level.

The daily strength indicator RSI and the momentum indicator Stochastic both have turned bearish from overbought
zone along with negative crossover which signals weakness ahead.

27 May 2016 5
Daily Support/ Resistance of Nifty Companies

Company Pivot Point R1 R2 S1 S2 RSI-9D

ACC 1496 1516 1529 1483 1462 70
AMBUJACEM 226 228 232 222 219 64
ADANIPORTS 185 188 191 182 178 40
ASIANPAINT 988 1003 1014 977 962 78
AUROPHARMA 743 750 755 738 731 36
AXISBANK 514 528 537 505 491 74
BHARTIARTL 352 357 360 348 344 51
BHEL 127 131 133 125 122 66
INFRATEL 391 395 401 386 381 60
BAJAJ-AUTO 2499 2524 2542 2481 2457 56
BANKBARODA 135 137 138 133 131 34
BOSCHLTD 21902 22122 22428 21597 21376 71
BPCL 922 936 946 912 898 49
CIPLA 469 473 477 465 461 12
COALINDIA 280 282 283 279 277 45
DRREDDY 3087 3114 3137 3064 3037 66
EICHERMOT 18459 18606 18817 18247 18100 36
GAIL 383 387 394 376 371 56
GRASIM 4329 4362 4394 4297 4264 71
HCLTECH 743 750 759 734 728 48
HDFC 1218 1245 1262 1202 1175 65
HDFCBANK 1179 1193 1202 1170 1157 74
HEROMOTOCO 2956 2995 3029 2922 2883 62
HINDALCO 90 91 93 88 87 52
HINDUNILVR 845 859 867 837 823 56
ICICIBANK 239 245 249 235 229 68
IDEA 113 116 118 111 108 56
INDUSINDBK 1100 1113 1121 1092 1079 71
INFY 1228 1246 1258 1216 1198 66
ITC 360 366 370 356 350 79
KOTAKBANK 728 741 753 717 703 65
LUPIN 1473 1485 1499 1459 1447 31
LT 1450 1509 1545 1414 1355 80
M&M 1332 1357 1376 1313 1288 59
MARUTI 4090 4153 4188 4055 3992 78
NTPC 141 143 144 140 138 59
ONGC 216 221 226 211 206 60
POWERGRID 150 152 153 149 147 71
RELIANCE 948 951 956 943 939 38
SBIN 181 189 193 177 169 57
SUNPHARMA 780 787 794 773 767 36
TATASTEEL 325 330 334 320 316 48
TCS 2540 2574 2599 2514 2480 57
TECHM 537 553 563 526 510 83
TATAPOWER 73 74 75 73 72 69
TATAMOTORS 399 402 405 397 394 59
TATAMTRDVR 271 273 276 267 265 44
ULTRACEMCO 3213 3230 3246 3196 3179 55
WIPRO 546 548 551 542 540 52
YESBANK 1015 1032 1044 1003 986 82
ZEEL 444 448 451 440 436 65
Source: Axis Direct.

27 May 2016 6
Commodity snapshot

27 May 2016 7
Disclosures

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Regulations).

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27 May 2016 8
 Disclosures

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27 May 2016 For private circulation only