Moneylife

STOCK LETTER

Cheetah

Short-term Momentum

Monday, 27 April 2015

Volume 8, Issue 2
MARKET WATCH

Nifty, Sensex, Bank Nifty close to a short-term bottom

he Sensex closed the week

that ended on 24th April at
27,438 (down 1004 points
or 3.53%), while the Nifty closed at
8,305 (down 301 points or 3.49%).
If Nifty manages to close above 8,400
it may mean a short-term rise. In the
previous week, we had mentioned
that the 50-stock Nifty is still under
pressure and will have to close above
8,700, as a first step for the downtrend

to reverse. We expect the market to

remain weak but it is very close to a
short-term bottom. If Nifty does not go
below 8,250, it may rally for the shortterm.
On Monday, Nifty closed at 8,448
(down 158 points or 1.83%). Ratings
agency Fitch said the likely upturn in
the Indias investment climate and
reduction in interest rates will improve
the property market by the end of

Money Flows
FII Net Inflow
17,500

DII Net Inflow

(Rs crore)

1,365

13,695

915

9,890

465

6,085

15

2,280

-435

-1,525
25 Feb-15

(Rs crore)

-885
26 Mar-15

24 Apr-15

25 Feb-15

26 Mar-15

24 Apr-15

The Nifty fell 3% this week. FIIs were net buyers bringing in Rs14,019.43 crore and DIIs were net
buyers bringing in Rs4,001.24 crore.

Market Valuation
Nifty
PE

8,950
7,660

Grossly Overvalued - abvove 22x; Overvalued - 20x to 22x

Fairly valued - 17x to 20x; Undervalued - 15x to 17x
Grossly Undervalued - below 15x

22x
20x
17x
15x

6,370
5,080
3,790
2,500
Jan-08

Aug-11

Apr-15

The current four-quarter trailing Nifty EPS as per NSE is Rs371. On this basis, the current Nifty
PE works out to 22.34. Unless earnings improve, the market is grossly overvalued.

March 2016.
Indices
Change
On
BSE Sensex
-4%
Tuesday, Nifty
Nifty
-3%
closed in the
red for the
fifth consecutive session at 8,378
(down 70 points or 0.83%). The
Indian government plans to auction 69
marginal oil and gas fields owned by
state explorers ONGC and Oil India, Oil
Secretary Saurabh Chandra said.
On Wednesday, Nifty broke the
downtrend and closed at 8,430
(up 52 points or 0.62%). The India
Meteorological Department (IMD)
said that quantitatively the seasonal
monsoon rainfall is likely to be 93% of
the average.
On Thursday, once again Nifty gave
up its gains and closed at 8,399 (down
31 points or 0.37%).
On Friday, the loss on the Nifty
continued especially after Infosys
results disappointed. Nifty closed
8,305 (down 93 points or 1.11%).
Stock: Buy positions: Zee
Entertainment (-13%) and Bajaj
Auto (-3%) both have hit their stop
loss level. SKS Microfinance which
we asked to exit at opening price
of Monday closed 10% above its
recommended price.
Changes: We are taking buy position
in Kotak Mahindra Bank and a fresh
position in Bajaj Auto at an appropriate
stop loss level.

Disclaimer: Although information has been obtained from and is based upon sources we believe to be reliable, we do not guarantee its accuracy and the information may be
incomplete or condensed. All opinions and estimates constitute our judgment as of the date of the report and are subject to change without notice. This report is for informational
purposes only and none of the stock information, data and company information presented herein constitutes a legally binding recommendation or a solicitation of any offer to buy
or sell any securities. Information presented is general information that does not take into account your individual circumstances, financial situation, or needs, nor does it present
a personalised recommendation to you. Individual stocks presented may not be suitable for you. Moneylife is a Media and information company and not investment advisor. Please
consult an advisor about the appropriateness of your investment decisions.

Moneylife

STOCK LETTER

Cheetah

Short-term Momentum
Monday, 27 April 2015
Volume 8, Issue 2

Recommended price

Stop loss

Friday price

Performance

New
1. Kotak Mahindra Bank

Buy

opening price of Monday

1,305.00

1,368.25

2. Bajaj Auto

Buy

opening price of Monday

1,950.00

1,998.85

Exit

Profit/(loss)

1. SKS Microfinance

Buy

447.90

490.80

10%

2. Zee Entertainment Entp

Buy

378.50

330.00

exit,stop loss hit

(13%)

3. Bajaj Auto

Buy

2,065.00

2,000.00

exit,stop loss hit

(3%)

If you are following the advice, we recommend you to equalise your investments across the entire list.

Exit Strategy: Please exit a Cheetah positions strictly based on the stop losses given for each stock. These are short-term recommendations
and must not be converted into longer term holdings by default