Category Archives: Equity Investment

Roll of Equity Advisory Services

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Profit Krishna Equity Advisory ServicesAn equity advisory service is a group of experts in stock market and other investment options. They are skilled and having in-depth knowledge of stock market trends, investment in companies and their analytical progress charts, present and future trends of stock market and commodity market.

Why it needs Equity Advisory Services-

Equity investment is the money investment in share market that fluctuates based on the market and company conditions. Equity investment is not as secured like bank FD, Government bonds and other securities. It carries a risk factor based on the type of equities in which you have made investment. Thus it needs your full concentration, time and money to watch continuously your investment. If you are doing job or business, it is difficult to spare time for investment in stock market.

Equity advisory services consists the team of stock market professionals, who are continuously working on stocks trading and transactions to earn out good profit from the investment. They save your time, efforts and keep rolling your money in different investment options as per your instructions to fetch out maximum returns in short duration. Even if you are novice to stock market, they can guide you, advice you and suggest the investment plans based on your risk carrying nature.

They let you know when to invest in stock and why to invest in stocks along with stock tips, company analytical chart, fundamental chart and technical chart for your information which can help you in deciding your stock investment.

Equity advisory functions transparently to let you know your investment portfolio at each point of time through online access of your account. Based on your earning requirements from stock market, they define a custom plan for investment that can help you to get additional earning from stock market in stipulated time.

One can avail stock advisory services, even though you intend to deal in stock market full time or part time. As per the modern trends, stock investment carries various types of risks that need continuous updates and efforts to manage the investment portfolio in a diversified manner, though the long term equity investment in good stocks gives good returns.

Equity advisory services are a great way to invest and manage your money in stock and commodity market. It helps to the people, who want to earn good profit with professionally managed portfolio.

Multibagger Stock – Cipla Limited

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CIPLA LIMITED:

Cipla Limited is an Indian pharmaceutical company, probably best-known outside its home country for pioneering the manufacture of low-cost anti-AIDS drugs for HIV-positive patients in developing countries. It has played a similarly prominent role in expanding access to drugs to fight influenza, respiratory disease and cancer. Founded by nationalist Indian scientist Khwaja Abdul Hamied as The Chemical, Industrial & Pharmaceutical Laboratories in 1935. It’s Head Quarters is at Mumbai.

Cipla has registered sharp numbers for the quarter ending September 2012. The revenue for the September 2012 quarter is pegged at Rs.2191.84 crore; about 23.86% up against Rs.1769.66 crores recorded during the year-ago period; driven by better product mix i.e. lower proportion of anti retrovirals, Lexapro benefits; price hikes and currency benefits. It gained Rs.26 crores on account of foreign exchange gain. Operating profit skyrocketed about 58% at Rs.676.95 crore vis-a-vis Rs.429.25 crores. Material cost at 36.75% of total sales decreased by 3.8% during Q2FY13 as compared to Q2FY12. PAT reported a handsome growth of 61.83% to Rs.500.01 crores from Rs.308.97 crores. Operating profit margins expanded sharply by 663 bps at 30.89% vis-a-vis 24.26% whereas NPM stood at 22.81% as against 17.46% YoY.

Family revenues grew by 13.5% to Rs.962 cr during Q2 FY13, up from Rs. 847 cr during Q2 FY12. The growth in domestic revenues was largely on account of growth in anti-asthma, antibiotics and cardiovascular therapy segments.

Exports of formulations grew by 38.2% to Rs.1039 cr during Q2 FY13, up from Rs.752 cr during Q2 FY12. Exports of APIs grew by 9.0% to Rs.174 cr during Q2FY13, from Rs.159 cr during Q2FY12. The growth in export revenues was primarily due to growth in anti-depressants, anti-ulcerant and anti-asthma segments.

Cipla received 2012 Thomas Reuters India Innovation Award.

Among strong product mix, increasing focus on exports, firm guidance and ramp up of its facilities, Cipla’s revenue visibility looks strong. We believe Cipla Ltd. is trading at an attractive valuation at 21.69x and 18.75x of FY13EPS of Rs.17.97 and FY14EPS of Rs.20.78. We Bet the Stock price to grab at 390 for Target 500. In time Period of 6-9 Months.

Multibagger Stock to Grab – Maruti Suzuki India Limited

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MARUTI

About Company:

Maruti Suzuki India Limited referred to as Maruti, is a subsidiary company of Japanese automaker Suzuki Motor Corporation. It has a market share of 44.9% of the Indian passenger car market. It was the first company in India to mass-produce and sell more than a million cars. It is largely credited for having brought in an automobile revolution to India. It is the market leader in India, and on 17 September 2007, Maruti Udyog Limited was renamed as Maruti Suzuki India Limited. The company’s headquarters are on Nelson Mandella Road, New Delh and Manufacturing Plants at Gugon & Manesar in India.

Sales &Services:

Maruti 800 ,Omni, Gypsy, WagonR, Alto, Swift,Estilo, SX4, Swift DZire, A-star,Ritz Eeco, Alto, K10, Maruti Ertiga, Maruti XA Alpha, Maruti Alto 800.

Maruti Suzuki has 933 dealerships across 666 towns and cities in all states and union territories of India. It has 2,946 service stations (inclusive of dealer workshops and Maruti Authorised Service Stations) in 1,395 towns and cities throughout India. It has 30 Express Service Stations on 30 National Highways across 1,314 cities in India.

Other Projects:

In 2002 Maruti Suzuki provides vehicle insurance to its customers with the help of the National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram. The service was set up the company with the inception of two subsidiaries Maruti Insurance Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited.

To promote its bottom line growth, Maruti Suzuki launched Maruti Finance in January 2002. Prior to the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti and Maruti Countrywide with Citi Group and GE Countrywide respectively to assist its client in securing loan.  Maruti Suzuki tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak Mahindra, Standard Chartered Bank, and Sundaram to start this venture including its strategic partners in car finance. Again the company entered into a strategic partnership with SBI in March 2003. Since March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti Finance. SBI-Maruti Finance is currently available in 166 cities across India.

Financial Back Ground:

In Q2FY13 net revenues stood at Rs 83bn (+6% YoY, -23% QoQ) driven by better than anticipated improvement in average realizations (+16% YoY, -1% QoQ) while overall volumes declined -8.7% YoY/-22.1% QoQ. EBITDA Margins for the quarter came in-line with our estimate at 6.1% ( -20 bps YoY, – 120 bps QoQ). RM to sales at 79.6% increased +100 bps YoY/+180 bps QoQ impacted by adverse product mix (lower diesel share), higher overall discounts and adverse forex. This was offset by lower other expense to sales at 11.4% (-110 bps YoY/ -120 bps QoQ) which benefitted from lower royalty payment and operating expenses. Net Profit declined 5.4% YoY/ 46.3% QoQ to Rs 2.2 bn but was ~18% above.

FY14. We expect Maruti Suzuki to benefit from both capacity expansion in diesel cars and demand revival in petrol cars this should help clock a 17% volume growth in FY14. We build in 300 bps margin expansion in FY14 over Q2 levels driven by lower discount/car, richer product mix, operating leverage benefits and slight benefit from currency.

Estimates for FY13/FY14 upwards by 3%/8% driven largely by benefits of a richer product mix even as we largely hold on to volume growth expectation of 7%/17% in FY13/14. We believe that the current stock price fully discounts a favorable macro environment for the company in FY14 and see limited upside potential. Key risk to our investment argument remains a sharp improvement in the macro environment and favorable currency.

We Bet the Stock Grab at 1460 for stock target price 1580. Keep stop loss 1400 In time Period 5-6 Months. Long Term Target 1700.

Multibagger Stock Pick – Karur Vysya Bank

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Karur Vysya Bank, popularly known as KVB, It is a privately held Indian bank, headquartered in Karur in Tamil Nadu, one such endeavor, was set up in 1916 by two blokes. The Bank had a Branch Network of 473 and an ATM Network of 1000 in 13 States and 3 Union Territories as on ‘03 Nov 2012′.

KVB offers several deposit and loan products, tailor-made to cater to the specific needs of customers. The bank offers NRE / FCNR deposits and remittance services to NRIs. The bank offers all types of general insurance policies through a tie-up with M/s Bajaj Allianz General Insurance Company. The bank offers life insurance policies through a tie-up with M/s Birla Sun Life Insurance Company. The Bank distributes the Mutual Fund products of UTI, SBI MF, Reliance MF, Sundaram BNP Paribas MF, Birla Sunlife MF, Franklin Templeton MF and LIC MF. The Bank is a Depository Participant through NSDL and opens demat accounts ASBA facility available. Off-line and on-line trading facility is available to the demat customers enabled through a tie-up with M/s Religare Securities Ltd and M/s IDBI Caps respectively. It is one of the authorized banks to open accounts under the New Pension Scheme. The Bank POS terminal facility is available at merchant establishments. The Bank also sells pure 24 carat Assay certified Gold Coins and bars and silver coins and bars. It ties up with SBI Cards for a co-branded credit card.

Have added 81 new branches in FY12, it has a target to reach 540 branches, pan-India, by March 2013, which means it will add about 12 branches per month going forward for the next 6 months or open one new branch every third day. This retail branch expansion will help the bank improve CASA as well as fee based income, improve its earnings.

Seeing that on 30th September 2012, its equity share capital stood at Rs. 107.18 crore, of which, 3.12% was held by promoters, 28.54% stake was held by 75 FIIs and 10.91% by 49 DIIs and balance 57.43% by public shareholders, including 3.45% by RJ. In support of FY12, bank posted interest income of Rs. 3,270 crore and total income was Rs. 3,621 crore. Net profit for the year stood at Rs. 502 crore with EPS of Rs. 46.84, of which, 30% was the dividend payout ratio at Rs. 14 per share. Net interest margin (NIM) for FY12 was 3.08% with Return on Assets (RoA) for the full year at 1.56%.

The bank has been improving its financial performance, by improving CASA ratio, recovering NPAs, improving fee based income and opening new branches to have a pan-India presence. Intended for H1FY13, bank reported total income of Rs. 2,233 crore including interest earnings of Rs. 2,044 crore. PAT for the first half of the year stood at Rs. 279 crore, resulting in EPS of Rs. 26. As of 30th September 2012, shareholders funds stood at Rs. 2,987 crore, leading to BVPS of Rs. 279. This discounts the current market price by a PBV multiple of 1.7 times.

Throughout Q2FY13, bank has strengthened its financial performance, with assets quality improving from the past 3 months as well as 6 months. Gross NPAs, which stood at Rs. 377 crore as of 30th June 2012 declined to Rs. 323 crore as of 30th September 2012, decreasing gross NPA ratio to 1.26% from 1.53% sequentially. This improvement in asset quality is very noteworthy given that concern on bad loans has been mounting on the entire banking sector over the past few quarters. Peers such as South Indian Bank and Karnataka Bank have shown significant deterioration in asset quality while declaring their half yearly results.

KVB net NPAs have also contracted to Rs. 80 crore (0.32%) as of end of Q2FY13, from Rs. 92 crore (0.38%), at the end of Q1FY13. Intended for Q2FY13, bank reported total income of Rs. 1,123 crore and PAT and EPS of Rs. 133 crore and Rs. 12.39 respectively. Its deposits and advances stood at Rs. 33,444 crore and Rs. 25,394 crore respectively as of 30th September 2012. NIM during Q2 was Rs. 3.06%.

Since 31st March 2013, the BVPS is expected to be Rs. 306 and expected EPS for FY13 will be close to Rs. 53. This translates into PBV multiple of 1.55x and PE multiple of 8.9 times. We Bet the stock to pick near 465 levels for stock target price 575 in the a time period 9-12 Months.

Multibagger Stock Tip – Cera Sanitaryware

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CERA SANITARYWARE

Company Overview:

Cera Sanitaryware one of the leading business houses of India and it is the third largest company in the organized sector with over 20% market share. Cera has been steadfastly moving towards its mission of becoming a total bathroom solution company. It is the first Sanitaryware Company to use Natural gas and the company engaged into wide spectrum of activities related to manufacturing Ceramic Sanitaryware, import and export of various bathroom related products like Tiles, C.P Fittings etc.

It is the first Sanitaryware company to implement ISO 9002 and ISO 14001 certifications for Quality Management Systems and Environment-friendly Manufacturing systems.

Business Details:

Cera has been on the forefront of launching a versatile colour range and introducing the bath suite Concept. It also launched innovative designs and water-saving products. The twin-flush model launched in India by Cera for the first time, reduces the water needs of households considerably. WCs designed to flush in just 4 litres of water is another notable innovation by Cera. Its product range includes:

  • Vitreous China Sanitaryware
  • Faucet ware- C.P Fittings and Taps
  • Wellness products like Shower Panels, bathroom cubicles, bath tubs, whirlpools- Jacuzzi, Bath fittings
  • Allied products- PVC Cisterns & Seat Covers
  • Kitchen sinks and bathroom Mirrors

The Company Having a state of the art production facility at Kadi, in North Gujarat. To achieve growth in the rapidly changing retail market in the country, Cera, has launched its one of a kind Cera Style Studios in Ahmedabad, Bangalore, Chandigarh, Kolkata, Cochin, Hyderabad and Mumbai. Cera Style Studios will complement its existing network of 600 dealers and 5000 retailers. To increase penetration, along with Style Studio’s, Cera has launched several Cera Style Galleries across the country which are Exclusive Cera Retail Centre.

Clients:

Besides having a very good presence in the domestic market they are presently exporting the products to as many as 20 different countries spread across in Canada, North America, Africa, Australia, New Zealand, and Middle East etc.

Future Projects & Expansion Plans:

Cera Sanitaryware is planning to invest Rs 140 crore in its manufacturing facility in Kadi in Mehsana district of Gujarat, to enhance capacity. As per the plan it will spend Rs 100 crore to increase production of range of wall and vitrified tiles from the present 2.7 million to 3 million pieces. The company currently has a production capacity of 2 million pieces per annum, which is already being expanded to 2.7 million pieces. The ongoing expansion is likely to be commercially commissioned by January 2013. Another Rs 40 crore for manufacturing faucets from 2,500 to 5,000 pieces per day at the facility. The company expects to add capacity to 3 million pieces per annum over the period of next one and a half year. The company has also forayed into manufacturing of tiles. In this regard, it has launched an array of elegant range of high-definition (HD) digital wall and digital polished glazed vitrified tiles with matching floor tiles. It is also offering the normal vitrified tiles with nano technology. With these new launches, Cera has laid the groundwork for a quantum leap in growth in the coming years and has reaffirmed the brand in the market. The company is expecting revenue of Rs.20 crore from tile business this year and Rs.60 crore next year. Cera, however, will not manufacture tiles but will outsource them from indigenous tile makers. With the compounded annual growth rate (CAGR) of 25 per cent over the past five years, the company is now targeting a turnover of Rs 500 crore for 2012-13.

Financial Performance:

Cera has registered sharp numbers for the quarter ending September 2012. The company has achieved yet again impressive growth with a figure of Rs. 111.38 Cr. being 52% smart increase in top line as against Rs.73.29 crores in the like quarter last year. Operating profit skyrocketed about 58% at Rs.18.43 crore Vis-a-Vis Rs.11.70 crores YoY. The increase in business was due to increased demand. Despite the market vagaries, the company has registered a 44 per cent rise in its profit after tax (PAT) at Rs 11.03 crore for the quarter ended 30 September, 2012 as compared with Rs.7.65 crores in Q2FY12. EPS stood at Rs.8.72 as against Rs.6.05 clocked in quarter ended September 2011. By way of a CAGR of 25 per cent over the last five years, the company is expecting to increase its turnover from Rs 319 crore in 2011-12 to nearly Rs 500 crore this fiscal. The company enjoy’s 75 percent share in Gujarat’s Sanitaryware market

Valuation:

Cera Sanitaryware Ltd. is trading at an attractive valuation at 11.84x and 10.21x of FY13EPS of Rs.31.92 and FY14EPS of Rs.37.02.

We Bet the Share to Grab at 375 for Target of 475. In a time frame of 9-12 Months.

Share to Grab – Rural Electrification Corporation

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Rural Electrification Corporation

Company Overview:

  • Rural Electrification Corporation Limited (REC) is a leading public Infrastructure Finance Company in India’s power sector. The company finances and promotes rural electrification projects across India, operating through a network of 13 Project Offices and 5 Zonal Offices, headquartered in New Delhi. The company provides loans to Central/ State Sector Power Utilities, State Electricity Boards, Rural Electric Cooperatives, NGOs and Private Power Developers
  • REC is a Navratna Company functioning under the purview of the Ministry of Power – Government of India. The company is currently among the top 500 Global Financial Services brands by UK-based plc Brand Finance (Brand Finance @ Global Banking 500 for 2010). The company is also among the Forbes Global 2000 companies for 2010.

Business Operations:

  • REC’s business model spans across the value chain of power infrastructure financing including
  • Equipment finance,
  • Technical/ financial appraisal of project,
  • Project finance as well as short term or bridge loans for generation, intensive electrification, transmission, distribution, repair and maintenance,
  • Support functions like project monitoring, consultancy and advisory.
  • The company operates autonomously as a Central Public Sector Enterprise under the Ministry of Power, Government of India and also acts as nodal agency for expansive Government of India schemes for building electricity infrastructure.
  • Business operations in India are supported by a network of 19 offices headquartered in New Delhi.

Financial Performance:

  • REC had excellent results for Q1 FY13 with net profits up by 32% at Rs.880 crores. Net Interest Margin also saw a good improvement of 25% and now stand at 4.53. The cost of borrowing for REC was quite low at 8.1% since it raises about 80% of its borrowing from Tax free and Taxable bonds. The pace of disbursement was good with the Loan book going up by 25%.

Projects:

  • REC finances all types of Power Generation projects including Thermal, Hydel, Renewable Energy, etc. without limit on size or location. The company aims to increase presence in emerging areas like decentralized distributed generation (DDG) projects, and new and renewable energy sources to reach remote and difficult terrains not connected by power grid network.
  • In Transmission & Distribution (T&D), REC is primarily engaged in ascertaining financial requirements of power utilities in the country in the T&D sector along with appraising T&D schemes for financing. REC has financed T&D schemes for system improvement, intensive electrification, pump-set energization and APDRP Programme. The company is also actively involved in physical as well as financial monitoring of T&D schemes.
  • REC also offers loan products for financing Renewable Energy projects. The company has tied up a line of credit for EUR 100 mn (approximately Rs. 6000 mn) with KfW under Indo-German Development Cooperation for financing renewable energy power projects at concessional rates of interest. Eligible projects include Solar, Wind, Small Hydro, Biomass Power, and Cogeneration Power & Hybrid Projects.

Asset Quality:

  • State Government PSU’s form 84% of the Loan book of REC, the gross NPA was at the low of 0.46%. Despite wide spread worries about the repayment from State Governments, the payments were received without any difficulty.

Valuation:

  • In terms of valuation, the stock trades at a low PE of 7 on FY12 earnings and 6.1 on FY13 earnings based on an EPS of Rs.35 for FY13
  • Q2 Results on Nov 02, 2012
    • We Bet The Share to Grab at 215 for Target 270 In a Time Frame of 6-9 Months

Multibagger Stock Tip – Tube Investment of India Ltd.

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TUBE INVESTMENT OF INDIA LTD.

  • Tube Investment of India Ltd. Belongs to Murugappa Group is a Chennai based Indian Conglomerate. Being a market leader in several of them it has a total of 28 businesses and has manufacturing facilities spread across 13 states in India.

It Has Classified in Four Business It Shows:

  • One is the engineering business where it produces precision tubes, which used in automotive industry and general engineering industry.
  • The second business is cycle business where company has acquired 30-31% of market share. Last year it sold about 4.5 million cycles.
  • Third is a metal formed product business wherein the company manufactures automotive chains, industrial chains and car doorframes. In the car doorframes business the company is a market leader with a market share of almost 60% and supplies to almost all the major passenger car manufacturers.
  • The fourth is a finance business – it holds 54.5% of equity stake in its subsidiary Cholamandalam Investment, the company does vehicle financing, home loans and as well as gold loan business. We can expect considerable increase in bottom-line due to Cholamandalam Investments.
  • Recently company has undertaken a capex of Rs 5 billion whose impact we will witness soon in upcoming years. Expectations Company has showed consistent growth in NPM & bottom-line. EPS has grown from 3.06 to 9.7 over five year’s period nearly 316%. For 2014-15, we are expecting the EPS to be around 19-20.
  • It Shows Expanding Triangle pattern at 165-170 levels. We Bet the Share Grab at 173 for Target 195 In Duration of 6-8 Months Target 225-250 For Long Time Traders in Period 1-2 Years.

Multibagger Stock Tip – Apollo Tyres

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  • Apollo Tyres, mechanized automobile tyres, tubes and flap for Passenger Vehicles, Commercial Vehicles and Off Higway Tyre, have manufacturing presence through 9 units across India (Kerala, Tamil Nadu, Gujarat), Netherlands, Zimbabwe and South Africa.
  • India’s largest producer and exporter of passenger car tyres, its product portfolio comprises of 6 brands flagship Apollo, Dunlop (brand rights for 32 African countries), Vredestein, Regal and Kaizen for truck-bus tyres and Maloya passenger vehicle tyres. Company had bought South Africa-based Dunlop Tyres International Ltd in 2006 and Dutch tire-maker Vredestein Tires in 2009.
  • In the midst of capacity of 1,590 metric tonnes per day, Apollo commands about 40% market share in the Rs. 30,000 crore Indian tyre market, 70% of which is comprised of the top 5 players – Apollo, Birla, Ceat, JK Tyres and MRF.
  • Stand-in market, which makes up 70% of the India market, mirrors the company’s revenue pie, as it accounted for close to 73% of its annual revenues. It exports to over 118 countries and earns approximately one-third of its revenues from exports.
  • Since of 30th September 2012, promoters hold 43.37% in the company, having pruned their stake from 46.94% as of 30th June 2012. The company enjoys good institutional patronage, with 128 FIIs holding 22.80% stake in the company and 103 DIIs 11.23%. Among its shareholders, it counts marquee names such as Merrill Lynch (1.32%), CLSA (2.9%), ICICI Prudential (5.33%) among others.
  • During FY12, it reported consolidated sales of Rs. 12,153 crore, becoming the first Indian tyre company to cross the annual revenue milestone of over Rs 12,000 crore or US $ 2.5 billion. EBITDA for FY12 was at Rs. 1,299 crore, with EBITDA margin of 10.7%.
  • Apollo Tyers net profit for FY12 was Rs. 410 crore, resulting in an EPS of Rs. 8.13. Accounting for Rs. 327 crore of depreciation and Rs. 82 crore deferred taxes, its cash EPS was Rs. 16.23, on equity of Rs. 50.41 crore (face value Re. 1 each). For FY12, dividend of 50 paise per share was paid.
  • For Q1FY13, financial performance showed expansion in margins on near flat revenues. While consolidated sales were Rs. 3,165 crore, net profit jumped to Rs. 138 crore, leading to an EPS of Rs. 2.74 and cash EPS of Rs.4.59.
  • EBITDA for the first quarter of the year stood at Rs. 361 crore leading to EBITDA margin of 11.4%, up from FY12’s 10.7%. Net margins also expanded to 4.4% in Q1FY13 from 3.4% in FY12.
  • Apollo Tyers net worth, as on 30th June 2012, stood at Rs. 2,968 crore, leading to BVPS of Rs. 59. It has debt of about Rs. 2,550 crore.
  • The share price has corrected lately on fear of steep penalty from the Competition Commission of India (CCI) for alleged cartelization in the tyres industry. We believe that current price has corrected more than warranted, as the fine will not be as harsh as those imposed by CCI on DLF and cement companies previously.
  • The Party also plans to raise Rs. 800 crore via a qualified institutional placement (QIP) in November, for which the board approval is in place. To facilitate the same, FII investment limit in the company has also been hiked from 30% to 40%.
  • As well, news reports suggest that the company may acquire US $ 1.2 billion market cap and world’s 10th largest American tyre firm Cooper Tire & Rubber Company for about US $600-800 million (Rs. 3,200-4,200 crore), to tap the latter’s strong foothold in the global replacement tyre market.
  • Intended for FY13, Apollo (without effecting the potential acquisition) is expected to have an EPS and cash EPS of close to Rs. 12 and Rs. 22, respectively. This implies discounting the share price, based on yesterday’s closing price of Rs. 88, by PE multiple of 7.3 times on current earnings, and by just 4 times, based on expected current year cash earnings.
  • Better replacement demand, expanding margins, recent correction in stock price due to CCI penalty fears have made valuation attractive.
  • Our stock tip to bet the Share for grab at 85 for target 105 for 6 Months Time Frame. ONE YEAR TARGET 125.

Nifty out Look & FII Derivative Data – 12 October’2012

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The Bse Index Shuts at 18805 up 174 points from its Previous Close or +0.93%. The Nse Index Shuts at 5709 up 56 Points from its Previous Close or +0.99%.

Infy Results before Market Opening & Hdfc after Market Hours & IIP data at 11.00 A.M

  • Seeing as tomorrow is a significant day with the start of the Results Season getting kicked off by the bell weather Infy it is likely to garner a lot of interest and significance since this result is likely to define the performance of the Corporate Sector for the Q2 of 12-13 which has largely been bearish when compared with the last year due to the higher interest costs and slackening Economic Growth.
  • The charts are indicating that the Markets are likely to remain volatile during the current Results seasons with the Indices facing severe resistance at the higher side which is 5730-5770 and it attains significance since these mentioned levels have not been breached during the last few sessions and the Indices dropped on account of profit booking to the 5650-5500 levels as well.

FII Derivative Data:

  • FII sold 1727 Contracts of Index Future, worth 125.81 cores with net OI increasing by 39437 contracts.
  • Nifty Future was up up by 66 points and Open Interest in Index Futures increased by 39437,so  FII have created fresh longs   in Nifty and Bank Nifty Futures.
  • Nifty Spot closed at 5708 after making a low of 5637 and not breaking our Sell area of 5632 as given yesterday we got a 66 points rally today.  Nifty daily chart is forming a Head and Shoulder pattern we are in process of forming a Right Shoulder now so if 5815 is not breached and 5630 gets broken in coming week lower levels are quiet possible.
  • Resistance for Nifty has come up to 5728 and 5752 which needs to be watched closely ,Support now exists at 5688 and 56661 .Trend is Buy on Dips  till 5688 is not broken on closing basis.
  • Nifty Future October Open Interest is at 2.53 cores with unwinding of 2.3 Lakh in OI,shorts did profit booking in Nifty future .
  • Future & Option turnover was at 1.38 lakh Cores with total contract traded at 2.50 lakh,  PCR at 0.96 and VIX  at 16.49.Volumes have been on decline from past 3 days which is a silver lining for bulls as traders are not unwinding positions and dips can be used to make a base for sustainable rally. Discussion became reality today
  • 5800 Call is having highest Open Interest of 83 lakhs with fresh addition of 6.2 lakhs in OI and Premium at 42.5900 CE Open Interest at 83 with net addition of 5.74 lakhs in OI so speculative or smart money is buying 5900 Call at premium of rs 16, and 5700 Call also unwounded 5.2 lakh in OI as bulls captured 5700 again .5400-6100 CE unwounded 2.2 lakhs in Open Interest.
  • 5600 Put is having highest Open Interest of 70 lakhs with addition of  6.39 lakhs in OI and premium at 23,5700 PE showed added of 3.7 lakhs .5400-6100 Put  unwounded  2.4 lakhs in Open Interest. So it seems rally is on back of short covering only.
  • FII bought 1043.41 cores and DII sold 573.72 cores in cash segment, INR closed at at 52.75. FII sold 311 cores in Stock Futures.
  • Nifty Futures Trend Deciding level is 5695 (For Intraday Traders), Trend Changer at 5738 (For Positional Traders)
  • 5 DMA at 5698
  • 20 DMA at 5649
  • 50 DMA at 5448
  • 200 DMA at 5218
  • 5 Days Relative Strengthen Index at 54 and 14 Days Relative Strengthen Index at 61 Indicates Nifty placed in BULLISH Zone.

Nifty Spot Support & Resistance:

Nifty Resistance at It has the First resistance close to the level 5711 and above the level marks the track point at 5755 later zipper levels at 5777 marks.

Nifty Support at It has the First support close to the level 5688 and below the level marks the track point at 5666 later zipper levels at 5644 marks.

Nifty Future Momentum Call for 12 Oct’2012:

Buy above 5755 sl 5733 Tgt 5775-5800 {Or} Sell Below 5711 sl 5733 Tgt 5688-5666

Bank Nifty Future Momentum Call for 12 Oct’2012:

Buy Above 11600 sl 11555 Tgt 11640-11690 {Or} Sell Nifty Future Below 11510 sl 11555 Tgt 11470-11420

Nifty Day Chart & FII Activity – Nifty Future, Nifty Spot, F&O Tips for 11 October 2012

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The Bse Index Shuts at 18632 down 163 points from its Previous Close or -0.86%. The Nse Index Shuts at 5653 down 53 Points from its Previous Close or -0.92%.

  • Scheduled end of the day chart Nifty closes below weekly average and heading towards monthly average of 5580. On daily chart rsi-macd-cci all given sell signals. Nifty below 5580 next term short support at 5415.

FII Derivative Data:

  • FII sold 34232 Contracts of Index Future, worth 1012.37 cores with net OI decreasing by 20284 contracts.
  • Nifty Future was down by 51 points and Open Interest in Index Futures decreased by 20284,so FII have booked profits in shorts  in Nifty and Bank Nifty Futures. Fresh longs have not been created as nifty is moving in sideways zone after big rally from 5200-5800.
  • Nifty Spot closed at 5653 after making a low of 5648 and filling the gap from 5650-5683, The correction which is ongoing is 4 days old and looking at past 2 correction of 316 points (5349-5033) which took 13 days and 233 points (5449-5216) which took 10 days, current ongoing correction has done 167 points in 4 days so if 5630 does not hold on closing basis we can expect correction to continue with brief pullback rallies.
  • Gap filling of 5650-5683 has started and gap of 5650 did not got filled today, but should be filled in this week as per gap theory. This is what we discussed yesterday and Nifty filled the gap today.
  • Resistance for Nifty has come up to 5685 and 5700 which needs to be watched closely ,Support now exists at 5620 and 5600 .Trend is Sell on Rise till 5684 is not broken on closing basis.
  • Nifty Future October Open Interest is at 2.56 cores with unwinding of 6.9 Lakh in OI, shorts did profit booking in Nifty future.
  • F&O turnover was at 1.17 lakh Cores with total contract traded at 2.22 lakh, PCR at 0.94 and VIX at 16.83, VIX is also trading at its lower end of range and a up move till 18.5-19 is on cards. Volumes have been on decline from past 3 days which is a silver lining for bulls as traders are not unwinding positions and dips can be used to make a base for sustainable rally.
  • Nifty 5800 CALL is having highest Open Interest of 76 lakhs with fresh addition of 3.6 lakhs in OI and Premium at 25.5900 Call Open Interest at 77 with net addition of 8 lakhs in OI so speculative or smart money is buying 5900 Call at premium of rs 10, and 5700 Call also added huge 13 lakh in OI so bears are trying to make ceiling of market at 5700 for short term .5400-6100 Call added huge 32 lakhs in Open Interest.
  • Nifty 5500 PUT is having highest Open Interest of 65 lakhs with addition of  5.17 lakhs in OI and premium at 18,5700 Put showed an unwinding of 4 lakhs and 5600 PE saw a marginal unwinding of 0.35 lajhs.5400-6100 Put  added 5 lakhs in Open Interest.
  • FII bought 407.6 cores and DII sold 396 cores in cash segment, INR closed at at 53.06. FII sold 424 cores in Stock Futures.
  • Nifty Futures Trend Deciding level is 5680 (For Intraday Traders), Trend Changer at 5742.
  • 5 DMA at 5729
  • 20 DMA at 5633
  • 50 DMA at 5436
  • 200 DMA at 5214
  • 5 Days Relative Strengthen Index at 39 and 14 Days Relative Strengthen Index at 57 Indicates Nifty placed in BULLISH Zone.

Nifty Spot Support & Resistance:

Nifty Resistance at It has the First resistance close to the level 5666 and above the level marks the track point at 5688 later zipper levels at 5711 marks.

Nifty Support at It has the First support close to the level 5644 and below the level marks the track point at 5622 later zipper levels at 5600 marks.

Nifty Future Momentum Call for 11 Oct’2012:

Buy above 5688 sl 5666 Tgt 5711-5733 {Or} Sell Below 5666 sl 5688 Tgt 5644-5622

Bank Nifty Future Momentum Call for 11 Oct’2012:

Buy Above 11380 sl 11333 Tgt 11422-11466 {Or} Sell Below 11330 sl 11380 Tgt 11288-11244