DAILY MORNING NOTE

29 July 2016
Indices Current % % Bank of Japan policy meet today; Fiscal stimulus in focus
Value 1D YTD
Sensex 28209 0.66 8.01 Asian markets are trading lower ahead of Bank of Japans highly-
Nifty 8666 0.59 9.06 anticipated policy meeting later this morning.Indian indices are
BSE Mid Cap 12573 0.62 12.83 expected to open marginally higher and global developments along
BSE Sml Cap 12282 0.60 3.76 with domestic corporate earnings keenly watched for further direction
SGX Nifty Fut 8698 0.02 9.46 The U.S. markets ended mixed with better-than-expected earnings reports
Sectors Performance (BSE)
and lower than expected economic data. The Dow Jones lost 16 points or
Consumer Dur 12520 2.30 4.35
0.09% to close at 18,456 while NASDAQ gained 15 points or 0.30% to close
FMCG 8741 1.50 11.05
at 5,155.
Realty 1613 0.95 19.96
Nikkei is trading lower by 0.40% while Hang Seng is trading lower by
Capital Goods 15592 (0.84) 10.36
0.54%. SGX Nifty is trading flattish
Metal 9466 (0.74) 27.95
What to watch
Oil & Gas 10542 (0.12) 10.32
Bank of Japan policy meet today ; Fiscal stimulus in focus
Index FY16E FY17E FY18E
RBI eases norms for individual investors access to G-Sec market
SensexEPS 1352 1537 1851
Government approves abolition of norms for JV firms by defence
P/E 20.86 18.35 15.24
PSUs
NiftyEPS 396 465 563
Foreign capital flow into emerging market rose to $25 bn
P/E 21.88 18.64 15.39
U.S trade deficit for Jun16 widened to $63 bn from a revised $61 bn
FII Trading activities in Cash reported in May16
Date Net MTD CYTD Results today: Alembic Pharma, Alkyl Amines, Astra Microwave,
FII 28/07 1767 10898 28992 CCL Products Ind, Dr Lal Pathlabs, ElgiEquipments, Federal-Mogul
DII 28/07 (1074) (6203) 4064
Go, Gabriel India, Godrej Consumer, ICICI Bank, IIF Holdings,
Figs. in Rs Cr., Source: Bloomberg.
Indoco Remedies, KEC Intl, Kokuyo Camlin , Larsen & Toubro,
Mahindra Holiday, Mahindra Lifespa, Mercator, Munjal Showa ,
Current % %
Global Indices Narayana Hrudaya, Nestle India, Nirlon, Noida Toll Bridg,
Value 1D YTD
Dow Jones 18456 (0.09) 5.92
PidiliteInds, PVR, R Systems Intl, Raj Television, ReligareEnterpr,
Dow Futures 18385 0.05 6.88 Rico Auto Inds, Shoppers Stop, Sun Pharma Adv, Sundaram Finance,
Nasdaq 5155 0.30 2.95 UPL, Vedanta, VST Tillers
DAX 10275 (0.43) (4.36)
Corporate
Nikkei 225 16411 (0.40) (13.78)
Sun Pharma and Spanish firm Almirall have entered into a licensing
FTSE 100 6721 (0.44) 7.67
Hang Seng 22055 (0.54) 0.64
pact for development and commercialisation of tildrakizumab used
Shanghai A Sha 2993 (0.06) (15.45) for treatment of Psoriasis in Europe.
Bovespa 56667 (0.33) 30.72 Oracle Financials: Oracle Corp, the parent company would buy
Strait Times 2887 (1.09) 0.14 NetSuite Inc in a deal valued at about $9.3 bn to expand into the
Source: Bloomberg; As on 8.30 am IST fast-growing cloud market
Kesoram Industries plans to infuse Rs 600 crore for acquiring a
Forex Rate mining land and in the tyre business in the current fiscal
INR/USD 67.04 0.36 (1.31) Kirloskar Ferrous will acquire VSL Steels's pig iron plant for Rs 155
INR/EUR 74.28 (0.57) (2.91) cr in all cash deal
INR/GBP 88.22 (0.26) 11.08 Zen Technologies has bagged an export order worth Rs 30 cr from
INR/YEN (100) 64.11 (0.05) (14.27) Ministry of Defence (MoD), Egypt to provide a range of training
equipment including Smart Target Systems

29 July 2016 For private circulation only

Trading Insights

Insight from bulk deals

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

PRUDENTIAL ICICI MF Bharat Financial S 666 0.52 896

MORGAN STANLEY Dalmia Bharat S 558 0.69 1467

SAK INDUSTRIES PVT LTD Saksoft B 409 3.69 240

SHORECAP II LIMITED Satin Credit S 300 0.94 636

SHORECAP II LIMITED Prism Medico S 200 10.04 24

PORINJU V. VELIYATH ADF Foods B 125 0.57 111

Insight from trading volumes

% Chg in Qty Traded Qty Traded

Scrip Delivery % CMP*
(OverAvg 30 days) (000s)

Bajaj Electrical 153 1796 56 264

Lakshmi Energy 113 1151 53 34

Esab India 49 5 64 627

IFGL Refractory 56 213 56 144

Torrent Pharma 16 651 40 1437

Fiem Industries 300 42 33 1027

Talbros Auto 113 40 66 117

Insight from delivery

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

Lokesh Machines 71 33 52 86

BSL 70 68 36 91

Delta Corp 31 1403 30 93

Fiem Industries 33 42 32 1027

KPIT Tech 39 1716 38 138

Glenmark Pharma 37 460 57 851

Rpp Infra Proj 23 156 33 174

*CMP-Closing Market Price

29 July 2016 2
Investment Picks

Target Target
Target Target
Company CMP Price/ Company CMP Price/
Price Price
CMP (%) CMP (%)
Arvind 349 304 15% Indusind Bank 1300 1168 11%

Ashok Leyland 126 94 34% Infosys Tech 1252 1079 16%

Aurobindo Pharma 1000 779 28% KarurVysya Bank 529 483 9%

Balkrishna Industries 845 732 15% KRBL 278 262 6%

Bharat Electronics 1290 1221 6% Mahindra Holidays 569 441 29%

Camlin Fine 128 95 34% MindaInds 1358 1169 16%

CARE 1200 994 21% Panasonic Energy 435 382 14%

Dish TV 115 94 22% PTC India Fin 49 41 21%

Divi's Lab 1340 1192 12% Reliance Inds 1375 1026 34%

Firstsource Sol 52 47 10% Salzer Electronics 283 247 15%

Gabriel India 112 102 10% Solar Inds 758 655 16%

Godrej Inds 466 437 7% SQS India BFSI 1384 942 47%

GSPL 170 130 31% Strides Arcolab 1500 1140 32%

Gulf Oil Lubricants 670 600 12% SuprajitEngg 201 189 7%

HCL Tech 922 751 23% Tata Power 84 71 19%

HDFC Bank 1400 1248 12% Thermax 1050 880 19%

Hero Motocorp 3388 3192 6%

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

29 July 2016 3
Technical View (Equity)

Daily call
Index CMP % up/dn S2 S1 P R1 R2
Nifty 8,666.30 0.59% 8605 8635 8655 8685 8705
Sensex 28208.62 0.66% 27995 28100 28170 28280 28345

Daily chart

Comments: Daily view

Nifty opened with an upward gap and remained in positive terrain throughout the day. Nifty closed at 8666 with
a gain of 51 points.
On the daily chart the index has formed a long Bullish candle indicating positive bias. The index is moving in a
Higher Top and Higher Bottom formation on the daily chart indicating sustained up trend. The chart pattern
suggests that if Nifty crosses and sustains above 8680 level it would witness buying which would lead the index
towards 8700-8750 levels. However if index breaks below 8630 level it would witness selling which would take
the index towards 8620-8600. 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 8655. If NIFTY trades above this level then we may witness a further rally
up to 8685-8705-8735 levels. However, if NIFTY trades below 8655 levels then we may see some profit booking
initiating in the market, which may correct up to 8635-8605-8585 levels

Stocks to focus for intraday Long Jublfood, Cesc, ITC, Britannia, Tatachem, Apollo tyre, Bharatforge,
BataIndia, GodrejCp

Stocks to focus for intraday Short TechM, PNB, Sail, Tatacomm

29 July 2016 4
Technical View (Currency)

Daily call
Index CMP % up/dn S2 S1 P R1 R2
USD/INR
67.37 +0.18% 67.21 67.30 67.38 67.47 67.55
(Future)

USDINR (Aug. Future) Daily chart

Comments:

USDINR (Aug. Future) CMP: 67.37

USDINR opened on a positive note with an upward gap and remained in positive territory for most part of the
session. On the daily chart it has formed a bearish candle carrying long lower shadow indicating buying support at
lower levels. Since past three weeks USDINR is consolidating within 67.50-67 levels representing sideways
movement.

For the day if USDINR trade and sustains below 67.30 levels then it may fall further in the range of 67.20-67.10 levels.
On the upside an immediate intraday resistance is around 67.45 levels.

The daily strength indicator RSI is in positive territory whereas the momentum indicator Stochastic is negative
territory which supports possible consolidation or upside momentum.

29 July 2016 5
Daily Support/ Resistance of Nifty Companies

Company Pivot Point R1 R2 S1 S2 RSI-9D

ACC 1678 1697 1710 1666 1647 66
AMBUJACEM 271 275 278 267 263 76
ADANIPORTS 227 230 234 223 220 63
ASIANPAINT 1117 1165 1202 1079 1031 85
AUROPHARMA 784 793 806 771 763 51
AXISBANK 545 552 560 537 530 47
BHARTIARTL 372 381 391 363 354 58
BHEL 149 151 153 148 146 73
INFRATEL 398 416 431 382 365 83
BAJAJ-AUTO 2675 2697 2734 2638 2616 42
BANKBARODA 155 156 158 153 152 47
BOSCHLTD 24479 25094 25552 24020 23405 67
BPCL 584 593 602 575 566 68
CIPLA 523 526 531 517 514 60
COALINDIA 330 333 337 326 323 59
DRREDDY 2977 3001 3043 2936 2911 19
EICHERMOT 20936 21413 21725 20624 20147 85
GAIL 385 387 391 381 379 45
GRASIM 4859 4897 4957 4799 4761 64
HCLTECH 752 758 765 745 739 64
HDFC 1395 1417 1431 1381 1359 76
HDFCBANK 1245 1255 1261 1239 1229 71
HEROMOTOCO 3194 3234 3270 3157 3117 46
HINDALCO 134 136 137 132 130 58
HINDUNILVR 906 917 924 899 888 52
ICICIBANK 272 274 276 270 269 65
IDEA 106 107 110 104 102 46
INDUSINDBK 1175 1185 1203 1158 1147 68
INFY 1080 1085 1092 1072 1067 32
ITC 253 257 260 250 246 65
KOTAKBANK 752 758 766 744 738 41
LUPIN 1715 1733 1761 1687 1669 62
LT 1582 1602 1627 1557 1537 55
M&M 1454 1462 1471 1445 1437 53
MARUTI 4706 4841 4919 4628 4493 78
NTPC 158 160 162 157 155 61
ONGC 222 224 227 220 218 45
POWERGRID 176 179 182 173 169 73
RELIANCE 1023 1034 1041 1016 1006 63
SBIN 232 234 238 228 226 61
SUNPHARMA 821 832 839 814 802 75
TATASTEEL 353 356 363 346 342 46
TCS 2609 2640 2661 2588 2556 71
TECHM 489 496 506 479 472 31
TATAPOWER 71 71 72 70 70 40
TATAMOTORS 506 513 519 500 493 65
TATAMTRDVR 328 332 336 323 319 64
ULTRACEMCO 3679 3714 3750 3644 3609 73
WIPRO 552 559 564 546 539 53
YESBANK 1218 1233 1243 1208 1193 78
ZEEL 486 490 495 482 478 67
Source: Axis Direct.

29 July 2016 6
Commodity snapshot

29 July 2016 7
Disclosures

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The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the
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Sr. No Name Designation E-mail
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2 VaishnaviJagtap Technical Analyst vaishnavi.jagtap@axissecurities.in
3 Kruti Shah Derivative Analyst kruti.shah@axissecurities.in
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29 July 2016 8
 Disclosures

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29 July 2016 For private circulation only