Equity report by ways2capital 19 jan 2015

Page 1


TECHNICAL VIEW MOVING AVERAGE 21 DAYS

50 DAYS

100 DAYS

200 DAYS

NIFTY BANK NIFTY

8326 18399

82009 17237

7757 15826

8383 18774

NIFTY PIVOT REPORT DAILY

R2 8766

R1 8602

PP 8521

S1 8439

S2 8275

WEEKLY

R2 9401

R1 8761

PP 8441

S1 8120

S2 7480

MONTHLY

R2 10052

R1 8923

PP 8359

S1 7795

S2 6667

BANK NIFTY PIVOT REPORT DAILY

R2 19909

R1 19472

PP 19253

S1 19034

S2 18596

WEEKLY

R2 21997

R1 20075

PP 19114

S1 18153

S2 16231

MONTHLY

R2 22664

R1 20242

PP 19031

S1 17820

S2 15398

NSE EQUITY DAILY LEVELS COMPANY

R3

R2

R1

PP

S1

S2

S3

ACC ALBK

EQ 1574 EQ 135

1544 132

1531 130

1515 128

1502 126

1486 125

1456 121

AMBUJACEM ASIAN PAINT AXISBANK BAJAJ-AUTO BANKBRODA BANKINDIA

EQ EQ EQ EQ EQ EQ

244 866 525 2466 1105 305

241 854 520 2443 1093 303

239 847 516 2418 1085 300

236 835 511 2395 1073 297

234 828 507 2370 1066 294

229 809 498 2322 1046 288

249 885 534 2515 1124 311


BHEL BHARTIARTL CIPLA COALINDIA DLF DRREDDY GAIL GRASIM HCLTECH HDFC HDFCBANK HEROMOTOCO HINDALCO HINDUNILVR ICICIBANK ITC INDUSIND BANK INFY JINDALSTEL KOTAKBANK LT M&M MRF MARUTI ONGC ORIENTBANK RANBAXY RCOM RELCAPITAL RELIANCE RELINFRA RPOWER SBIN SESAGOA SUNPHARMA TATAMOTORS TATAPOWER TATASTEEL UNIONBANK

EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ

291 370 667 407 163 3398 441 3814 1756 1234 1037 3077 151 981 366 374 876 2226 162 1431 1691 1373 42526 3677 364 350 693 81 496 911 522 64 330 202 899 356 86 400 249

281 357 656 390 155 3334 432 3731 1688 1216 1021 2998 145 959 359 366 852 2178 156 1411 1639 1335 40790 3644 356 340 668 79 479 888 503 64 323 197 871 348 84 390 243

277 350 651 384 150 3310 428 3684 1663 1205 1011 2948 142 950 356 363 842 2148 153 1403 1615 1320 39977 3630 351 334 658 79 472 879 494 62 319 195 860 344 83 387 239

271 344 645 374 146 3270 424 3649 1619 1198 1004 2919 139 937 351 358 827 2130 151 1391 1587 1297 39058 3611 347 329 642 78 463 865 485 61 316 192 843 340 82 381 237

267 337 640 368 142 3246 420 3601 1595 1187 994 2869 136 928 349 355 817 2100 148 1383 1563 1281 38243 3597 342 323 632 77 456 856 476 60 312 190 832 336 81 377 234

260 331 634 358 138 3206 415 3567 1551 1180 988 2840 134 915 344 351 803 2082 145 1371 1535 1259 37324 3578 338 319 616 76 447 842 467 60 309 187 815 332 80 372 232

250 318 623 342 130 3143 407 3485 1482 1162 972 2762 128 893 337 343 778 2034 140 351 1483 1220 35590 3545 330 308 590 74 431 819 449 58 301 182 787 324 78 363 226


NSE WEEKLY NEWS UPDATE ✍ SpiceJet shares surge 10% as Ajay Singh checks Stocks of SpiceJet on Friday surged nearly 10 per cent after the company returned to original promoter Ajay Singh for its revival in a multi-layered deal worth up to Rs 1,500 crore. Shares of the cash-strapped firm rallied 9.92 per cent to Rs 20.50 — its highest trading permissible limit for the day on the BSE. Sun TV Network also jumped 12.87 per cent to Rs 423.90. Cashstrapped SpiceJet's original promoter Ajay Singh returned to the airline with a long-term plan entailing an investment of up to Rs 1,500 crore, as Maran family agreed to cede control with transfer of over 53 per cent stake in the carrier. Singh, who is in talks to rope in more investors including foreign entities, would get 53.48 per cent stake, currently worth about Rs 500 crore, in the airline from the Maran family as part of the deal approved by the SpiceJet board yesterday. Kalanithi Maran-led Sun Group would also infuse Rs 80 crore in the loss-making airline following conversion of their warrants, which would give them a 10 per cent minority stake. Marans would remain invested with this stake in the airline, which they acquired over four years ago, as a public shareholder although they would cease to be its promoters. ✍ TCS Q3 PAT at Rs 5,444 crore versus Rs 5,288.3 crore, up 2.9% QoQ Tata Consultancy ServicesBSE -0.51 % (TCS), the country's largest IT services exporter on Thursday reported Profit After Tax (PAT) of Rs 5440 crore for the third quarter of the current financial year, versus an ET NOW Poll of Rs 5,462 crore. This is a rise of 2.9% QoQ.Sales for Q3 were reported at Rs 24,500 crore versus an ET NOW Poll of Rs 24,534.1 crore. The Q3 margin stood at 27%. For the quarter ended December 31, TCS posted revenue of $3.93 billion, compared to $3.92 billion in the second quarter. On a constant currency basis, revenue rose 2.5%, in-line with expectations. Profit after tax rose 0.1% sequentially to $873 million in the same period.The company's operating margin rose 20 basis points to 27%. ✍ Things to watch out for Growth - Analysts expect the company to post around 1.5% revenue growth quarter-overquarter in dollar terms, below Infosys' 2.6% growth. The third-quarter is seasonally weak due to ramp-downs and furloughs around the holiday season. Margins and Utilization - TCS is expected to post marginally stronger margins on the back of the weaker rupee, but cross-currency headwinds are expected to hurt. With utilization already above 85% few see that as a lever the company could use to push margins higher. Analysts expect the operating margin to come it at about 27% for the third-quarter. Deal wins and Pricing - As about $100 billion worth of deals come up for renewal this year, the street will be keeping a close watch on the number of large deal wins - the bread and butter


for IT companies. TCS has always maintained a razor -sharp focus on big contracts and has had greater success winning them. But analysts also want to hear about pricing, and realizations. Client Budgets and Discretionary Spending - Analysts will be looking for guidance on client budgets and discretionary spending after Infosys said verticals such as banking and financial services, oil & gas and telecom would likely not see budget expansion and was cautious on discretionary spending as well. The Law of Large Numbers - With over 300,000 employees, TCS has always said its scale is an advantage. But after the compay dialled back growth expectations for FY15, analysts are looking to see if the company's industry-beating growth days are behind it or whether this year was just an aberration. ✍ RBI cuts repo rates by 25 basis points Encouraged by softening inflation, the RBI on Thursday decided to cut the benchmark interest rate by 0.25 per cent to 7.75 per cent with a view to boost growth.The decision to reduce repo rate comes a fortnight ahead of the scheduled date of monetary policy announcement on February 3.“It has been decided to reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 8.0 per cent to 7.75 per cent with immediate effect,” Reserve Bank said in a statement on Thursday.The RBI has been keeping the benchmark interest rate at elevated level at 8 per cent since January 2014.The RBI, however, has decided to keep the cash reserve ratio (CRR), the portion of deposits which the banks are required to have in cash with the central bank, unchanged at 4.0 per cent.Following reduction in the repo rate, the reverse repo rate has been adjusted to 6.75 per cent and the marginal standing facility (MSF) rate and Bank Rate to 8.75 per cent.The RBI said that the Consumer Price Index (CPI) has been easing since July 2014 and was below the expected trajectory and the government has reiterated its commitment to adhering to its fiscal deficit target. ✍ NIIT Q3 standalone net profit up 6.7% Education company NIIT Ltd on Friday has reported a 6.7 per cent increase in standalone net profit for the third quarter of financial year 2014-15 at Rs. 16.07 crore from Rs. 15.05 crore in the corresponding period last fiscal.The standalone net revenue jumped 2.3 per cent to Rs. 117.15 crore (Rs 114.43 crore), according to the company’s filing to the BSE.The company reported a 50 per cent increase in consolidated profit after tax at Rs. 1.8 crore in the third quarter of financial year 2014-15 compared with Rs. 1.2 crore in the corresponding period of the previous fiscal, NIIT Ltd said in a statement. The consolidated net revenue of the company increased 6.25 per cent at Rs. 248.2 crore (Rs 233.6 crore), the statement added.


✍ Tata wins central bank approval to buy DoCoMo stake in India joint venture India's central bank has allowed conglomerate Tata Sons Ltd to buy Japanese telecom firm NTT DoCoMo Inc's stake in their struggling Indian venture, paving the way for the completion of the long-delayed $1.1 billion deal. In a memo to the finance ministry dated Dec. 22 seen by Reuters, the Reserve Bank of India (RBI) said it was "inclined to accept" the proposal from Tata to buy DoCoMo's stake of around 26 percent in Tata Teleservices Ltd at half the price DoCoMo originally paid for the investment. The RBI has requested for the finance ministry's view. ✍ December WPI inflation at 0.11% versus 0% in November; food price inflation rises to 5.2% Plunging global oil markets helped India post slower-than-expected wholesale price inflation in December, raising hopes for an early cut in interest rates to help the economy out of its longest phase of sub-par growth since the 1980s. The wholesale price index (WPI) rose 0.11 percent year-on-year compared with a 0.6 percent jump forecast by economists in a Reuters poll. Wholesale prices were unchanged in November. ✍ IFC to raise stake in Bandhan Finance International Finance Corporation (IFC) is picking up more stake in Bandhan Financial Services, the only new bank licensee from east, for Rs 580 crore. The newbie lender is raising Rs 1,600 crore from the market as Tier I capital for the proposed Bandhan Bank. Bandhan chairman Chandrasekhar Ghosh told TOI on Thursday that it has already tied up with IFC for Rs 580 crore and for the rest, it will arrange deals with other organizations in the next 10 days. ✍ PVR set to acquire Chennai’s movie exhibition company SPI Cinemas for Rs 750-1,000 crore The Ajay Bijli led PVR group seems set to acquire Chennai's premier movie exhibition company SPI Cinemas, popularly known as Sathyam Cinemas, in what could end up to be the biggest deal in Bijli's career as well for India's multiplex sector. Multiple sources aware of the on-going discussions said save last-minute developments, the deal may close for a rather steep valuation of approximately Rs 750-1,000 crore for just 40 odd screens, located predominantly in the Southern metro. To put this in perspective, last month Carnival Cinemas paid a little over Rs 700 crore to buy out Anil Ambani's Big Cinemas that has 242 screens across the country.


� Axis Bank Q3 net up 18% at Rs 1,899 crore Private sector lender Axis Bank reported a 18.4% rise in its net profit to Rs 1,899.76 crore for the third quarter ended December FY15.The third largest private sector bank's net profit in the corresponding October-December quarter of FY14 stood at Rs 1,604.11 crore."Total income has increased from Rs 9,433.55 crore for the quarter ended December 31, 2013 to Rs 10,928.81 crore for the quarter ended December 31, 2014," it said in a filing to the BSE.The gross NPAs stood at 1.34% in Q3FY15, over 1.25% in the year ago period. Net NPAs also rose marginally to 0.44% from 0.42% during the period under review. � Baja Auto Q3 net down 4.78% at Rs 861 crore Bajaj Auto Ltd today reported 4.78% decline in its net profit to Rs 861.24 crore for the third quarter ended December 31, 2014.The company had posted a net profit of Rs 904.55 crore crore in the same quarter previous fiscal.Net sales during the period under review stood at Rs 5,520 crore as against Rs 5,294.55 crore in the year-ago quarter, the company said in a statement.In terms of volume, sales during the quarter were marginally down at 9,84,520 units as against 9,93,690 units in the same period last fiscal.

� Federal Bank net profit up 15% in Oct-Dec quarter Private sector lender Federal Bank has reported a 15 per cent rise in net profit to at Rs 264.69 crore in the October-December 2014 quarter, compared with Rs 230.13 crore in the corresponding quarter of 2013-14, aided by other income growth and improved lending to small and medium enterprises (SME) and retail business net interest income, the difference between interest income and interest expenditure, grew 7.62 per cent to Rs 587.16 crore in the quarter under review, compared to Rs 545.57 crore in the year-ago quarter.


This Document has been prepared by Ways2Capital (A Division of High Brow Market Research Investment Advisory Pvt Ltd). The information, analysis and estimates contained herein are based on Ways2Capital Equity/Commodities Research assessment and have been obtained from sources believed to be reliable. This document is meant for the use of the intended recipient only. This document, at best, represents Ways2Capital Equity/Commodities Research opinion and is meant for general information only. Ways2Capital Equity/Commodities Research, its directors, officers or employees shall not in any way to be responsible for the contents stated herein. Ways2Capital Equity/Commodities Research expressly disclaims any and all liabilities that may arise from information, errors or omissions in this connection. This document is not to be considered as an offer to sell or a solicitation to buy any securities or commodities. All information, levels & recommendations provided above are given on the basis of technical & fundamental research done by the panel of expert of Ways2Capital but we do not accept any liability for errors of opinion. People surfing through the website have right to opt the product services of their own choices. Any investment in commodity market bears risk, company will not be liable for any loss done on these recommendations. These levels do not necessarily indicate future price moment. Company holds the right to alter the information without any further notice. Any browsing through website means acceptance of disclaimer.


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