ngMorning

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October 10, 2014
Domestic

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Chg. %

26,637.3

26,246.8

1.49%

NIFTY 50

7,960.6

7,842.7

1.50%

CNX 500

6,416.4

6,316.7

1.58%

11,407.9

11,226.4

1.62%

SENSEX 30

CNX MIDCAP

Global

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NIKKEI

15478.93

15595.98

-0.75%

HANGSENG

23534.53

23263.33

1.17%

6431.85

6482.24

-0.78%

NASDAQ

4378.336

4468.594

-2.02%

DJIA

16659.25

16994.22

-1.97%

FTSE

Market depth

Advance

Decline

T/O(mn)

1188

349

143881

BSE

2034

921

Curr. Spot

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Chg.%

USD/INR

61.055

61.395

-0.55%

77.9297

77.6738

0.33%

0.5662

0.568

-0.32%

JPY/INR
GBP/INR

98.9973

98.6066

0.40%

G-Sec 10yr

8.468

8.408

0.71%

Net Invest

8-Oct*

MTD

CYTD

(194)

(105)

13708

108

186

1715

FIIs

(US$mn)

MFs(us$mn)

Federal Reserve also boosted sentiment.

Chg. %

Nif. Losers

BHEL

8.16

TECHM

HINDALCO

5.51

JINDALSTEL

ZEEL

5.1

Global risk appetite flooded into almost every asset class as minutes of US Fed
latest meeting indicated that it wiil not rush into raising interest rates.

The Indian rupee appreciated on persistent selling of dollar following dovish US fed
comments and rallying of domestic equities.

Global Macro

Japan core machinery orders rose 4.7% in August for a third straight month, in a
tentative sign firms are investing their profits in plants and equipment.

Germany exports slumped by 5.8% in August in the latest sign that Europe's largest
economy is faltering amid broader euro zone weakness.

UK RICS national balance slid to +30 for September from a downwardly revised +39
in August

US wholesale inventories increased 0.7% during the month of August after a 0.3%
gain in July.

US initial claims for state unemployment benefits dropped 1,000 to a seasonally

adjusted 287,000 in the week ended Oct. 4, 2014.

Corporate Buzz

*NSE as per provisional

Nif. Gainers

Benchmark shares indices ended higher led by financials following encouraging

India growth forecast by the World Bank, while delay in interest rates by the US

Chg. %

NSE

EURO/INR

Markets snaps 3-day losing streak 10 October 2014

ADAG group to invest INR 600bn in power, coal, cement and telecom businesses in
Madhya Pradesh by 2020.

Chg. %
-2.55

Maruti announced 10,000 pre-bookings for Ciaz of which 60% was for diesel models.

-0.6

Cipla announced collaboration with Israel's Teva Pharmaceuticals for sales and

NMDC

-0.56

AMBUJACEM

3.89

NTPC

-0.49

PNB

3.33

WIPRO

-0.48

distribution of the latter's drugs in South Africa.

GVK Hancock has been granted an Environmental Authority clearance for its Alpha
Coal Project in the Galilee Basin of Central Queens land in Australia.

FII Deri.

Buy(mn)

Sell (mn)

Net(mn)

18,780.26

13,117.42

5,662.84

INDEX FUT
IND.OPTIONS

127,054.14

125,104.62

1,949.53

STOCK FUT

19,364.54

20,077.67

-713.13

ST. OPTIONS

26,050.42

25,769.84

280.58

Madhya Pradesh as it looks at setting up manufacturing base in the state.

Chg. %

HDFC BANK

0.1%

ICICI BANK

-0.5%

INFOSYS

-1.6%

DR REDDY

-1.4%

Commodities
BRENT CRUDE

ADR

Chg.%

TATA MOTORS

-1.8%

WIPRO

-1.6%

JSW Steel's proposed over INR 10bn deal to acquire sponge iron maker Welspun
Maxsteel has the approval from the Competition Commission.

ADR

Suzlon plans to execute 2,000MW wind energy projects over next five years in

BHEL bagged an EPC order worth INR 78bn for a 1320 mega watt (MW) plant near
Chennai from TANGEDCO.

Cox & Kings plans to raise INR 12bn through issue of equity shares, convertible
bonds, or QIP route in this fiscal to reduce debt.

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Previous

Chg. %

90.05

91.38

-1.5%

GOLD $/OZ

1226.75

1217.00

0.8%

CHINA STEEL HRC $/MT

2920.00

2920.00

0.0%

LME COPPER $/MT

6777.00

6687.50

1.3%

LME ALUM $/MT

1920.10

1907.25

0.7%

CHINA IRON ORE FINES $/MT

77.50

77.70

-0.3%

RICHARD BAY COAL $/MT

65.52

65.52

0.0%

Escorts announced implementation of a voluntary retirement scheme (VRS) as part

of its restructuring under which 350 employees have exited the company.

Mahindra Lifespaces launched its second affordable housing project at Boisar, about
100 km from Mumbai.

ONGC allocates gas from its marginal field at Gamij near Kheda to players like Adani
Gas Ltd (AGL), Astron Zircon Pvt. Ltd., and Akash Ceramics Pvt. Ltd.

Outlook

Benchmark indices are likely on a cautious note on lingering concern about the
strength of the global economy and its effect on corporate earnings.

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

1398

1369

1415

1444

1462

AMBUJACEM

213

208

215

220

222

ASIANPAINT

646

634

652

664

670

AXISBANK

382

377

386

391

395

2343

2314

2362

2391

2410

BANKBARODA

861

853

873

881

893

BHARTIARTL

400

395

404

408

413

BHEL

213

205

216

225

228

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

664

659

674

680

690

CAIRN

295

291

297

301

303

CIPLA

582

576

594

600

611

Opening Price is considered around close of previous day. Avoid

COALINDIA

340

337

343

346

349

BUYING if prices open abnormally high and avoid selling if prices

DLF
DRREDDY
GAIL

149

147

152

155

157

2941

2904

2993

3030

3082

441

437

446

450

455

GRASIM

3465

3433

3492

3525

3552

HCLTECH

1691

1661

1700

1730

1739

HDFC

1025

1010

1035

1051

1060

874

859

883

899

908

2799

2783

2817

2833

2851

HINDALCO

153

149

156

161

163

HINDUNILVR

729

722

737

744

751

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

1467

1441

1481

1507

1521

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

IDFC

139

137

140

142

143

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

INDUSINDBK

621

617

626

630

636

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

3617

3577

3665

3705

3754

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

ITC

362

361

365

367

370

JINDALSTEL

162

160

166

168

173

KOTAKBANK

1010

994

1018

1034

1043

LT

1468

1444

1480

1505

1517

LUPIN

1326

1312

1341

1356

1371

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

M&M

1350

1338

1368

1381

1398

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

MARUTI

2979

2944

2996

3032

3049

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

NMDC

159

157

161

163

165

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

NTPC

142

141

143

144

145

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

ONGC

407

403

411

415

418

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

PNB

896

880

902

918

924

POWERGRID

138

137

138

139

140

INFY

RELIANCE

944

931

951

963

970

SBIN

2441

2397

2470

2513

2542

SSLT

259

256

261

264

266

SUNPHARMA

806

793

813

826

832

TATAMOTORS

514

509

518

523

527

TATAPOWER

83

82

84

86

86

TATASTEEL

459

452

464

471

476

TCS

2692

2671

2708

2729

2744

TECHM

2276

2233

2350

2394

2467

ULTRACEMCO

2549

2531

2569

2588

2608

WIPRO

581

573

592

600

610

ZEEL

317

306

322

333

338

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
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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

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Associate

+91-44 - 3000 7266

sreedevik@chola.murugappa.com

Venkat Chidambaram

Head of FII Business & Corporate Finance*

+91-44 - 24473310

venkatc@chola.murugappa.com

Lakshmanan T S P
Santosh Kumar Sharma

Chennai
Mumbai

+91 - 9840019701
+022 - 22617210

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

Nikesh
Sathyanarayana N
Muthiah A N
Baskaran S
Saravanan
A Jaganathan
V Kumar
Maneesh Gupta
Srinivasa Reddy D V
Sudipta Bhaumik
Riken B Mehta
Pravin S
Deepak V Kshirsagar
Sivaraman G
M N Chandra Sekhar

AHMEDABAD
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