MARKET Diary

16-Dec-16
Market

Nifty Intraday Chart

Market
Morning Traded Market

KEY LEVELS

Prime Focus : 2:30 PM

Sudarshan Chem : 4:00 PM

Kaveri Seeds : 4:30 PM

-0.28%

19327

0.50%

21,980.00

-0.36%

Sensex
Nifty

26,519.07
8,153.60

-0.31%
-0.35%

DOW
NASDAQ

19,792.85
5,456.86

-0.60%
0.37%

CAC

4,819.23

1.04%

DAX

11,366.40

1.07%

FTSE
EW ALL SHARE

6,999.01
14,710.17

0.71%
-0.05%

HANG SENG

Yesterday Closing Market

Market Outlook

Persistent : 9:30 AM

8,158.00

NIKKIE

Resistance 1: 8310
Resistance 2: 8598

Concall

% Change

SGX NIFTY

Support 1 : 8056
Support 2 : 7916

Event Today

Value

Indian equities gave a volatile movement

through the day on Thursday and after opening
on subdued note, Nifty fluctuated in the band of
8122-8226. At the end of the index closed at
8153.60. It had a net loss of 0.35% over the
previous days close. The midcap and small cap
indices outshined the benchmark index and
closed the day after gaining 0.4%-0.5%.
On the sectoral front, some selling pressure was
witnessed in FMCG, Media, Auto and
Pharmaceuticals stocks while the other major
indices closed in green.
The US Federal Reserve raised interest rates by a
quarter point on Wednesday and signaled a
faster pace of increase in 2017 as the new
presidents administration take over with
promises to boost growth through tax cuts,
spending and deregulation.
The Feds median outlook for rate hike to three
quarter points increase in 2017 from two as of
September. It would be followed by another
three increase in both 2018 and 2019 until the
rate reaches to its long run normal level at 3%.
After giving a pullback rally from 7916.40, Nifty is
moving in the range of 8000 and 8300 since last
three weeks. We expect the range bound
movement of the index to continue for another
few days. Traders are
advised to hold long
positions with stop loss 8000.

% Change in 1 day

Commodity Price ( Yesterday Closing )

Commodity/Currencies
GOLD
SILVER

Value

% Change

27019.00

-2.06%

39295.00

-5.08%

54.49

-1.96%

234.20

0.89%

67.83

0.59%
0.04%
-0.28%

CRUDEOIL
NATURALGAS
DOLLAR/RS.
EURO/RS.
POUND/RS.

70.67
84.10

% Change in 1 day

Institutional Turnover
FII
Investor

Buy(Cr.)

Sale(Cr.)

Net(Cr.)

3781

4393

(612)

32430

34362

(1932)

2016

1012696

1011778

918

Investor

Buy(Cr.)

Sale(Cr.)

Net(Cr.)

1989
13501

2167
13473

(177)
29

468525

440180

28345

15-Dec-16
Dec-16

DII
15-Dec-16
Dec-16
2016

Quote of the Day : "By confining himself to a relatively few, easy-to-understand cases, a reasonably intelligent,
informed and diligent person can judge investment risks with a useful degree of accuracy."
Benjamin Graham

IEA Snapshot

HDFC Bank is one of the leading banks in the industry with the strong fundamentals, best in assets quality, adequate capital, steady loan
growth and consistency in profitability growth. Where some of its peers in large cap are struggling with the deteriorating assets quality,
HDFC Bank is well poised to take the advantage from improving macroeconomic scenario. While in the short term there may be hiccups in
the lending activity due to demonetization drive and this has led to uncertainty over the earnings during this period, but the long term
growth and profitability remain intact for the bank. One of the huge benefits from the demonetization drive will arise in the form of shoot
in CASA ratio which will help the bank to cut the rates further to drive the demand. Strategy of the management to focus on high yield
products will help the bank to maintain the NIMs apart from the expected benefits from spurt in CASA (due to demonetization). We expect
the RoE of 19% and maintain BUY rating on this stock with our previous target price of Rs 1400.

GODREJCP

"BUY"

15th Dec 2016

Management is rationalizing ad expenses and has increased home insecticide products prices by 2% in the late September 2016 to counter
upward movement of input prices. Going forward we expect relatively less impact on GODREJCP compared to other FMCG players, as
company gets approx 46% of its revenue from international market. Secondly companys proactive initiatives of cutting promotions and
increasing price of the products gives us confidence on margin side. Considering lesser dependence of company in Indian business,
proactive approach towards maintaining the margin and relatively less penetrated product portfolio, we have positive view on this stock
and we maintain `BUY with target price of Rs 1760.
*For details, refer to our daily report- India Equity Analytics

Top News
Mgt Int : BAJAJAUTO
Dominar price logical; may not impact Enfield volumes: Bajaj
>>Bajaj launches new Dominar 400, goes after Royal Enfield
>>Mgt is very upbeat on increasing market share with the
launch of the new 400cc bike Dominar. Mgt is confident of
selling 2 lakh bikes per year.
>>Bajaj is hopeful of clocking sales growth in January-March
2107 and expects to do better than the industry on back of new
launches and product mix.

Technocraft Industries is well-positioned for the next couple

of months to remain insulated from steel price rises and thereby
neutralise any impact arising out of the hike
the companys target of trebling topline in the next five years
will be led by revenue growth in scaffolding business. Besides,
Technocraft is also bullish on standalone projects it is
undertaking and defence is one of them . The companys
current debt stands at Rs 240 crore and has cash in its books of
about Rs 500 crore.
Dilip Buildcon Mgt Guideline : Company arm bagged an order
worth Rs 917 cr to rehabilitate & upgrade NH-66 in
Maharashtra.
It is a hybrid annuity road project from Kalmath to Zarap section
of 43.9 km long. The total cost of the project is around Rs 914
crore, out of which Rs 360 crore will be paid by the government
during construction and Rs 500 crore will be invested by the
company through a mix of equity and debt. This will be received
from the government as annuity.

Sunpharma
The US Department of Justice accused two former generic
pharmaceutical executives of colluding with other generic
manufacturers to fix prices, the first criminal charges stemming from a
two-year investigation.
The executives, Jeffrey Glazer and Jason Malek, were charged in
Philadelphia with conspiring to fix the prices of an antibiotic,
doxycycline hyclate, and to split up the market for glyburide, a diabetes
drug as per the US Department.
Other companies in the congressional probe have since publicly
disclosed receiving subpoenas, including Mylan NV, Allergan, which
later sold its generics business to Teva, Lannett Co, Impax Laboratories,
Par Pharmaceuticals, which is owned by Endo Pharmaceuticals, Sun
Pharmaceutical Industries,Taro Pharmaceuticals Ltd and Mayne, which
purchased a portfolio of drugs from Allergan and Teva.
U.K. retail sales rose to 0.2%, from 1.8% in the preceding month
whose figure was revised down from 1.9%. Analysts had expected retail
sales to rise 0.2% last month.
Euro Zone Services PMI fell to 53.1, from 53.8 in the preceding
quarter. Analysts had expected Euro Zone Services PMI to remain
unchanged at 53.8 in the last quarter.
Swedish Unemployment Rate fell to 6.2%, from 6.4% in the preceding
month. Analysts had expected Swedish Unemployment Rate to fall to
6.3% last month.
U.K. claimant count change rose to a seasonally adjusted 2.4K, from
13.3K in the preceding month whose figure was revised up from 9.8K.

F&O OPEN INTEREST ( Number of Contracts )

Individual

Foreign Institutions

MARKET MOVERS (1 MONTH CHANGE)

Nifty Movers

NSE Sectoral Indices Performance

TRADING IDEAS

Scrip

Reco

RBLBANK

Buy

BIOCON Dec.
900 PE

Short
(1 lot =
1100)

Initiation Price

355.7

6.55

Target 1

379

Target 2 Stop Loss

404

0.5

Rational

330

The stock has given a smart pullback rally

with decent volumes yesterday. It has also
made a positive divergence in stochastic on
daily chart. Some fresh buying is expected
from the current level.

10

After getting a strong support at 100 DMA

(near Rs 900), the stock has given a good
pullback rally from that level. In the short
term it is very unlikely to breach that level.

Country

US

UK/EURO ZONE

INDIA

Monday
12th Dec 16

Federal Budget Balance.

Economic Calendar
Tuesday
Wednesday
13th Dec 16
14th Dec 16

Import Prices m/m.

Thursday
15th Dec 16

Core Retail Sales m/m , PPI

m/m , Retail Sales m/m , Core
PPI m/m , Capacity Utilization CPI m/m , Core CPI m/m , Philly
Rate , Industrial Production
Fed Manufacturing Index ,
m/m , Crude Oil Inventories , Unemployment Claims , Current
FOMC Economic Projections ,
Account , Empire State
FOMC Statement , Federal
Manufacturing Index .
Funds Rate , FOMC Press
Conference.

Friday
16th Dec 16

Building Permits ,
Housing Starts.

CPI y/y , PPI Input m/m

Retail Sales m/m , MPC Official
, RPI y/y ,German ZEW Italian Trade Balance ,Average
German 10-y Bond Auction ,
Bank Rate Votes , Monetary
Final CPI y/y , Final Core
Economic Sentiment ,
Earnings Index 3m/y ,
Spanish 10-y Bond Auction.
Policy Summary , Official Bank CPI y/y , Trade Balance .
ZEW Economic
Claimant Count Change .
Rate , Asset Purchase Facility .
Sentiment .

IIP

WPI

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Road | Kolkata-700 020 , Ph : 033-40501500
em ail: narnolia@narnolia.com ,
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