Morning Note

Market Mantra
May 30, 2017
Indian Market % Change Trading Strategy
Last Close 1 day YTD Hero Motocorp (Buy Above 3668 with Stop Loss
Sensex 31,109 1.2 19.1 at 3647 for Target of 3710): After consolidating for
Nifty 9,605 1.0 20.9 over two weeks, the stock has broken out from a
Nifty Bank 23,183 (0.0) 37.0 Flag Pattern on the daily charts indicating that a
speedy up move is on the cards. Hero Motocorp
Nifty Midcap 50 4,399 (0.4) 28.8
has reversed from its 15-DMA convincingly and has
Nifty Small Cap 50 3,981 (0.4) 28.8
also seen credible uptick in traded volumes. Other
oscillators also indicate that the current
Developed Markets % Change momentum is here to stay.
Last Close 1 day YTD
Dow Jones 21,080 (0.0) 21.0 Derivative Strategy (Time period: Till expiry)
Nasdaq 6,210 0.1 24.0 Sell IBRE June Future @ 158-160, Stop Loss 163.25
S&P 500 2,416 0.0 18.1 and Target 155-156.
Hang Seng 25,702 1.1 17.3
Nifty Outlook
Nikkei 19,683 (0.3) 3.4
Nifty will see resistance around 9650 while 9550
Institutional Activity (Rs. Crore) will act as first support on the downside. Bank
Cash YTD Nifty also sees strong resistance around 23500,
FII 789 66,272 while 23000 will be first support which if broken
DII 288 76,168
can see 22800 being tested.
FII (Prov) (710) 14782
DII (Prov) 291 50503

Advance/Decline stocks No. (NSE)

29-May-17 26-May-17
Adv 460 1,247
Dec 1219 424
Unch 96 72

Upcoming Events Asian indices saw profit booking on opening bell as

GDP estimate for Jan-Mar, Government
after a heady rally for last 6 weeks, markets turn
31-May finances for FY17 cautious. Weakness in Euro against the US Dollar
also saw profit booking in currencies along with
equities also coming under selling pressure.
 Derivatives
Morning Note

Indices Overview
% Fut % Current OI OI in ATM Max CE Max PE %
Index Spot Future Basis OI Chg PCR OI PCR VOL
Chg v/s Total OI Shares IV Buildup Buildup Rollovers
Nifty 9605 9606 0.3 1 66.0 216 8.2 1.13 0.94 9.7 9700 9400 5.0

BankNifty 23183 23136 (0.5) -47 46.3 32 (1.2) 1.02 0.91 12.8 23500 22000 1.8

OI Gainers Derivative Snippets

OI % OI
%  In the last trading session, Nifty ended on a
Underline Price Price Action lacklustre note amidst huge sell-off in Pharma
(lakhs) Chg
Chg
heavy weights. Nifty ATM call option strike
NATIONALUM 41 70.5 69 0.3 Long Buildup
continues to see short covering along with
ESCORTS 19 32.2 675 4.6 Long Buildup
fresh long build up in the futures contract,
RAMCOCEM 1 26.3 684 (0.2) Short Buildup indicating a continued uptrend up to the
OI Losers resistance level of 9700.
IGL 15 (11.9) 1023 (0.0) Long Unwinding  FIIs were net sellers in cash market segment to
APOLLOTYRE 95 (10.7) 223 (3.2) Long Unwinding the tune of Rs 710 Cr.
AJANTPHARM 4 (9.7) 1531 (4.5) Long Unwinding
 FIIs index future long short ratio at 5.7x with an
addition of fresh long positions to the tune of
~21k contracts.

Weekly Bank Nifty Active Strikes

900
275%
800 FII Long-Short Activity
700 225%
% Chg Long- Long-Short
600 175% %
500 Index OI Since Short Ratio since
Thousands

125% Chg
400 Expiry Ratio Expiry
75%
300 Fut Long 220 11 (3)
200 25% 5.7 1.2
100 -25% Fut Short 38 11 (18)
0 -75% Opt CE Long 235 5 7
1.4 1.1
Opt CE Short 166 0 (1)
Opt PE Long 273 1 17
4.4 1.3
Opt PE Short 62 1 (6)
OI PE (lakhs) OI CE (lakhs) % Price Change % OI Change

Nifty Active Strikes

% Price % OI Chg
Strikes Price OI % OI Chg
Historical Volatility of Active Stocks Chg Since Exp
9400CE 249 11.6 17 (6.4) (17.2)
160
p
9500CE 175 16.8 30 (7.4) (8.5)
9600CE 113 24.5 34 (12.7) 0.5
140
9400PE 51 (3.0) 48 5.3 33.5
120
9500PE 75 (5.0) 43 26.7 129.9
100
80
HV
60 Since Expiry
40
% Underline OI %OIChg %PriceChg %Rollover
20
Chg
0 NIFTY 216 3.4 2.7 5.0
BANKNIFTY 32 (8.1) 3.8 1.8
CAPF 38 353.3 (10.9) 0.3
GLENMARK 75 175.7 (31.0) 1.8
PEL 7 130.9 6.5 0.5
INFIBEAM 14 108.3 (9.6) 0.1
 Pivots and Deals
Morning Note
CMP 50- 200- Support/Resistance levels*
Company (Rs) Support* Resistance* DMA DMA
Close Support Resistance
ACC 1624 1610 1646 1550 1495
ADANIPORTS 328 319 342 336 294 Nifty 50 9605 9556 9646
AMBUJACEM 240 238 243 244 237
S&P Bse Sensex 31109 30915 31259
ASIANPAINT 1147 1131 1156 1098 1051
AUROPHARMA 512 495 537 630 712 Nifty Bank 23183 23061 23384
AXISBANK 507 501 514 504 508
BAJAJ-AUTO 2838 2800 2863 2873 2811
BANKBARODA 174 171 179 178 166 Bulk deals
BPCL 755 745 767 699 655 Avg
Qty
BHARTIARTL 373 368 379 353 334 Date Scrip name Institution B/S price
(‘000)
INFRATEL 379 371 385 352 348 (Rs)
BOSCHLTD 23575 23387 23781 23054 22244 8K Miles Garna Finvest
29 May S 159 562
Soft Serv Private
CIPLA 505 494 512 569 573
Barclays
COALINDIA 267 265 270 282 308 Sintex
29 May Merchant S 4885 30
DRREDDY 2426 2382 2467 2625 2960 Industries
Bank
EICHERMOT 28172 27968 28435 26342 23966
GAIL 401 396 406 396 343
HCLTECH 864 853 874 844 818
HDFCBANK 1632 1617 1647 1499 1322
HEROMOTOCO 3666 3611 3699 3361 3286
HINDALCO 201 197 205 193 173
HINDUNILVR 1072 1048 1087 947 883
HDFC 1599 1563 1618 1516 1381
ITC 316 306 323 282 257
ICICIBANK 315 312 319 287 271
IBULHSGFIN 1107 1092 1118 1010 836
IOC 419 413 429 414 346
INDUSINDBK 1491 1475 1506 1421 1252
INFY 985 975 996 970 993
KOTAKBANK 969 960 974 902 805
LT 1782 1762 1806 1680 1501
LUPIN 1110 1084 1132 1357 1461
M&M 1360 1333 1381 1311 1307
MARUTI 7134 7041 7213 6424 5727
NTPC 157 154 158 162 161
ONGC 176 172 178 185 185
POWERGRID 209 205 212 202 190
RELIANCE 1357 1340 1370 1344 1134
SBIN 284 281 289 289 266
SUNPHARMA 503 487 524 658 693
TCS 2573 2559 2592 2410 2380
TATAMTRDVR 285 283 287 276 310
TATAMOTORS 482 474 487 456 493
TATAPOWER 81 80 82 85 79
TATASTEEL 508 502 517 472 431
TECHM 379 361 394 438 459
ULTRACEMCO 4061 4010 4147 4155 3813
VEDL 244 241 248 246 223
WIPRO 535 530 539 507 485
YESBANK 1438 1416 1477 1542 1351
ZEEL 522 515 527 525 504
 News
Morning Note
the financial year (FY) 2017-18 due to the
Corporate Snippets: impact of demonetisation and
 The Health Products Regulatory Authority of protracted investment recovery. (BS)
Ireland has granted certificate of good
manufacturing practices (GMP) compliance to Result Table:
Wockhardt's Aurangabad facility after an Rev. (Rs PAT (Rs
inspection. (BL) Company YoY % YoY %
mn) mn)
 Glenmark Pharmaceuticals has received final Aurobindo
approval from the US health regulator for 36,416 (2.8) 5,329 (3.9)
Pharma
generic version of Bystolic tablets, used in the Bajaj
treatment of hypertension. (BL) 12,594 (6.8) 384 10.8
Electricals
 Strides Shasun has said the US health BHEL 98,743 (2.2) 2,156 (57.4)
regulator has issued three observations after BPCL 660,232 24.0 18,417 (13.0)
inspecting its formulations facility in City Union
Bengaluru. (BL) 3,110 17.0 1,289 14.8
Bank
 Brookfield Asset Management is in advanced Coal India 134,852 (5.4) 134,383 (5.3)
talks with Idea Cellular and Vodafone India to Cox & Kings 5,345 (5.4) 200 (8.3)
buy the standalone telecom towers business GSFC 16,067 (8.3) 1,870 198.7
of the two mobile phone companies in a Info Edge 2,084 2.1 329 (42.5)
combined deal. (ET) Jagran
 TeamLease Services will acquire 30% stake in 22,830 9.8 3,493 13.8
Prakashan
job portal Freshersworld.com at an enterprise L&T 368,280 12.0 30,970 10.0
valuation of Rs180mn, a move that will NTPC 204,167 13.5 20,794 (23.5)
accelerate its hiring strategy. (ET) Oil India 24,355 28.3 193 (95.9)
 Karur Vysya Bank is planning to raise around Power Grid
67,120 16.9 19,164 22.2
Rs7.60bn through a rights issue, in order to Corp
fund its future growth. (BS) Sadbhav
10,329 20.4 682 95.4
Engg
 Mindtree plans to increase its headcount by
1400 at its Bhubaneswar campus in next six
months. (BS)

Economy Snippets:
 Gross value added (GVA) by public
administration, defence and other services,
which together comprises government
spending, grew by a staggering 11.2%, lifting
overall GVA growth to 6.7%. (BS)
 The government will levy a 5% tax on all
equipment required for generating solar
power compared with nil duty now. (ET)
 The Centre expects to mop up as much
as Rs550bn by levy of cess, including a big
chunk from demerit and luxury goods, during
the 9-month period of the current fiscal after
the Goods and Services Tax (GST) is rolled out
from July 1. (BL)
 The World Bank projected a 7.2% growth rate
of gross domestic product (GDP) for India in
 Morning Note
Event Calendar

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

May 01 May 02 May 03 May 04 May 05 May 06
US Markit Nikkei Manufacturing US Markit Services Nikkei services US Gati, LG
Manufacturing PMI for April by IHS PMI, Fed Interest and composite Unemployment Balakrishnan,
PMI, US ISM Markit, Japan Nikkei Rate Decision PMI for April, Rate, EUR Retail Mangalam
Manufacturing Services PMI, German Ajanta Pharma, BASF India, Cera Sales Organics,
PMI, Japan Nikkei Import Price Index, Alembic Pharma, Sanitaryware, Apollo Tyres, Blue Nitin
Manufacturing PMI USD Crude Oil Agro Tech Foods, Emami, Exide Dart, Dalmia Spinners,
Bharat Financial Imports. DHFL, ICICI Bank, IG Ind, Godrej Prop, Bharat, Equitas Pfizer
Inclusion, Dabur Artson Engineering, Petrochem, L&T Greaves Cotton, Holdings,
India, DCM Inox Leisure, Jm Tech, Merck, TBZ, V- HCC, HDFC, L&T Firstsource
Shriram, Orient Financial, Kansai Mart Retail Finance, L&T Solutions, GE
Cement Nerolac Paints, Infotech, Bank Of Shipping,
Marico, RBL Bank, Maharashtra, Monsanto India,
Shriram City Union MCX India, MRF, NIIT, Rain Ind,
Finance, Shriram Tata Comm Sanofi India,
Asset Management, Shankara Building,
TCI Finance Shoppers Stop
May 07 May 08 May 09 May 10 May 11 May 12 May 13
US Fed Labor Bharti Airtel, Blue China Inflation Rate, US Initial Jobless IIP for March, US JK Cement
Market Conditions Star, Carborundum US Monthly Budget Claims Core Inflation Rate
Index (MoM) Universal, Godrej Statement MoM, CPI
ABB, Bombay Wire Consumer Products, Endurance Tech, Force Motors, Combined
Ropes, Bharti Majesco, Nelco, Hero Motocorp, ICRA, Kirloskar inflation for
Infratel, Jay Shree Petronet LNG, Srei Kirloskar Oil, Sical Ind, Magma March, by CSO
Tea, Precision Infra, Syndicate Bank, Logistics, ZEEL, Asian Fincorp, Balmer Dr. Reddy's Lab,
Wires, Astrazeneca Trident, Caplin Point Paints Lawrie Dr. Lal Pathlabs,
Pharma Lab, Century Enka Investments NDTV, Nestle,
Neuland Lab, PNB
HF, Quick Heal,
TCL, TVS Elec, Atul
Auto
May 14 May 15 May 16 May 17 May 18 May 19 May 20
WPI inflation, China Grasim, Insilco, Indo Tech,Jsw Steel, GST Council to US Initial Jobless
Industrial Maharashtra Kirloskar Brothers, meet in Srinagar Claims,
Production YoY Scooters, Noida Toll Vinyl Chemicals, to discuss CPI for rural and
Chennai Petro, Bridge, Poddar Bajaj Auto, Bajaj fitment of GST farm labourers
Colgate-Palmolive, Housing, Shree Holdings slabs HT Media,
Unity Infra, CARE Cement, TCIL, TCI Pidilite Ind, Motherson Sumi,
Rating, Dhanlaxmi Developers, Bajaj Thangamayil Ramkrishna
Bank Finserv, Bajaj Finance Jewellery, Bharat Forgings, Zuari
Bijlee, Elecon Agro, Zuari Global
Engineering
May 21 May 22 May 23 May 24 May 25 May 26 May 27
Lakshmi Machine, TCI Express, Amara US FOMC Minutes Manappuram TV Today BHEL
Meghmani Raja Batteries, Mukand Engineers, Finance, Prism Network, United
Organics, Mindteck Ashiana Agro Sundram Fasteners, Cement Credit
(INDIA), Ananthi Elcid Investments,
Cons, Novartis Esab India
May 28 May 29 May 30 May 31
Gujarat Narmada Eclerx Services, GDP estimate for
Valley, Info Edge, Finolex Cables, Jan-Mar,
NG Ind, Sunrise Thermax Government
Industrial finances for FY17

Economic Data
Results
 Disclaimer
Recommendation Parameters for Fundamental/Technical Reports:
Buy – Absolute return of over +10%
Accumulate – Absolute return between 0% to +10%
Reduce – Absolute return between 0% to -10%
Sell – Absolute return below -10%

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