Monday 06 , March, 2017

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Monday 06 , March, 2017 ` Monday 06th, March, 2017 Index Levels : Market Trend (Nifty): Trend Reversal Point INDEX SUPPORTS RESISTANCES Period Current Trend (TRP) 27Nifty on close basis NIFTY 8860 / 8840 8920 / 9000 Short Term Trend* UP DOWN BELOW 8760 (8897.55) 8800 / 8760 9120 / 9200 SENSEX 28700 / 28550 28870 / 29150 Medium Term* UP DOWN BELOW 8500 (28832.45) 28300 30000 / 30650 ITE-35* ------------- -------- Long Term Trend* UP DOWN BELOW 7900 (11855.18) *as on 03rd Mar 2017 (*Trend Reversal Point (TRP) is based on close prices.) Imtiaz Merchant’s Best Picks Indices COMPANY CURRENT Equity Close As on Close As on SIZE SECTOR Points % Chg NAME PRICE Indices 23rd Feb 03rd March GODREJ INDS MIDCAP INDUSTRIAL 489 BSE Sensex 28892.97 28832.45 -60.52 -0.20% RELIANCE LARGECAP OIL & GAS 1258 Nifty 8939.5 8897.55 -41.95 -0.47% INDST ITE Shariah TVS MOTORS MIDCAP AUTO 429 11790 11855.18 65.18 0.55% 35* S&P CNX 500 HCL TECH LARGECAP IT 852 2467.09 2476.75 9.66 0.39% Shariah Note: (Buying should be done from a medium to long term Dollar/Rupee 67.00 66.72 -0.28 -0.41% perspective) (*Weekly Returns) Market Brief – Amid stocks specifics move markets last week witness some profit taking on higher levels to end the week on flat note However, Reliance, Escorts, Marico Industry, Hindustan Zinc were amongst the out performers and it appears that stock specific moves will continue. Forth coming Assembly election result in UP, Punjab etc and global market cues are important events to look forward on the markets movements. It is further imperative to see how the GST is implemented although government is proposing to start GST from July and if this happen then this could be a big booster for the markets. In event of positive moves the sectors likely to do well are Metals, Oil & Gas and selected stocks from Auto, Consumer goods, Industrials and Information Technology. Higher leverage and poorly manage companies are not going to do well rather will be punished. Technical’s – In the near term technically markets will remain range bound between 8800 – 9000. A close above 9000 with higher volume will give impieties to the markets and the markets will witness a rally till about 9300 levels, However bad news flows and BJP failing to form government in UP will be detrimental for the markets and a protracted correction will see a substantial down side and in that case market would perhaps test 8500 – 8700 on the Nifty. Investors can still remain stock specifically optimistic on the markets, but should avoid stock with high Debt, low profitability and poor governance. One should partly unload the stocks on Election result turmoil. ` Advance/ Advance Decline AD Un- Decline Ratio Changed BSE 1365 1494 0.91:1 165 News: NSE, BSE small firm listing platforms see NSE 682 875 0.78:1 61 traction Shariah Small and medium enterprises (SMEs) are increasingly Universe*** 486 479 1.01:1 37 looking at equity as an option for funding growth. Industry players say initiatives taken by the government and exchanges have made the equity fund-raising route more Global Indices Close Points % Chg accessible for the country’s burgeoning SME sector, which is largely dependent on bank funding. In the first Dow Jones* 21005.71 2.74 0.01% two months of 2017, there have been 10 initial public NASDAQ* 5870.75 9.53 0.16% offerings (IPOs) worth Rs 135 crore on the SME platforms of the National Stock Exchange (NSE) FTSE* 7374.26 -8.09 -0.11% and BSE. In comparison, there has been only one IPO on Nikkei 19469.17 -95.63 -0.49% the main board, while no primary capital raising. The pace of new listings is likely to accelerate with more than Hang Sang 23552.72 -175.35 -0.74% 50 companies lining up before the exchanges with their Straits Times 3122.34 -14.14 -0.45% fund-raising plans. About 36 SMEs have rd approached BSE SME, while about 15 are eyeing listing #as on 03 Mar 2017 on NSE Emerge, the SME platform of the country’s biggest exchange. BSE SME has given the go-ahead to Institutional Buy Sell Net 28 companies, while eight have filed their offer Activity (Cr) documents and are awaiting approvals. Some of these FII* 5269.58 3740.1 1529.48 companies are Trine Entertainment, Monarch Apparels, Shareway Securities, Octaware Technologies and Perry DII** Impex. Meanwhile, NSE Emerge granted approval to four 2282.05 3019.05 -737 companies, which are Aakash Infrastructure, Sanginita Chemicals, Shree Ram Switchgear and RKEC Projects. Focus Lighting and Fixtures, Bohra Industries, Euro India Fresh Foods and Jalan Transolutions have filed their FII* Foreign institutional investor DII** Domestic institutional invest draft prospectus. The companies eyeing to list are from News: Panic in bond market due to short sectors like apparels, chemicals, fertilisers, pharmaceuticals, realty, infrastructure and capital goods. squeeze Most of the companies are from Gujarat followed by Bond market yields dived on Thursday and Friday Rajasthan and Maharashtra. as traders scrambled to cover their short positions. According to traders, investors pushed Investment bankers say encouraging participation in up yields sharply after the central bank kept policy some of the recent IPOs bode well for new listings. Some rates unchanged on February 8. Yields moved up of the SME IPOs this year saw record subscriptions. from 6.4 per cent to 6.95 per cent in less than a Global Education’s Rs 10-crore IPO was subscribed 82 month. Much of the movement had happened times, generating demand worth around Rs 840 crore. Krishna Phoschem’s Rs 20-crore IPO too saw a because primary dealers and foreign banks had subscription of 33 times. Exchange officials say SME- shorted their positions, expecting yields to rise focused funds set up by the central and state further. As yields rise, prices of bonds fall. The governments are helping start-up listings. The expectation was that, by Thursday and Friday, government of Maharashtra and the Small Industries they would be buying up the bonds from the Development Bank of India (Sidbi) have jointly set up one market to cover the position. Public sector banks, such fund, which has invested in four SME IPOs on the sensing huge shorting, refused to sell bonds in NSE’s Emerge platform. A similar fund is also set up by the secondary market. What accentuated the the West Bengal government. Both the NSE and BSE are shortage of bond supply was that the government talking to several state governments to help with SME IPOs. The framework for a has exhausted its borrowing limit and will no separate SME platform was approved by the Securities longer supply fresh papers in the and Exchange Board of India (Sebi) in 2012. The market. Panicked bond traders therefore started disclosure and regulatory requirements for the platform offering hefty price for the same bonds to the were less stringent than those relating to listing on the public sector banks, pulling down bond yields by main board. Since 2012, around 165 companies have 20 basis points in two-three days. The 10-year listed on BSE SME and another 60 on NSE Emerge. bond yield closed at 6.77 per cent on Friday even Some of these companies have migrated to the main as many illiquid bonds exchanged hands in the platform of the BSE and NSE. past two days. *source: Business Standard *source: Business Standard ` ITE – 35* Shariah Top Gainers & Losers Gainers Losers Stocks % Stocks % Gail Ltd. 17% Divis Lab Ltd. -39% ONGC Ltd. 14% Asian Paint Ltd. -25% Hind Zinc Ltd. 11% AurobindoPhar -22% Tech Mahindra. 10% Ambuja Cement. -20% #% = 3 months Return ITE – 211** Shariah Top Gainers & Losers Gainers Losers Stocks % Stocks % InfeabeamIncorp Ltd. 29% Divis Lab Ltd. -39% Sterlite Tech Ltd. 28% Kajaria Ceramics. -37% Shilpa Medicare Ltd. 25% Century Plyboards. -34% Excel Crop Care Ltd. 24% Housing Dev &Infra -29% Mahanagar Gas Ltd. 19% Dalmia Bharat Ltd. -29% Sonata Software Ltd. 19% Wockhardt Ltd. -26% KRBL Ltd. 19% Asian Paints Ltd. -25% GAIL (India) Ltd. 17% Intellect Design. -24% BalkrishnaIndst Ltd. 17% Berger Paints Ltd. -24% Sectors Indices Indraprastha Gas Ltd. 16% Just Dial Ltd. -24% # % = 3 months Return BSE Top Gainers & Losers Gainers Losers Stocks % Stocks % ESCORTS 6.38% APPOLOHOSP -5.31% INFRATEL 6.35% BAJAJFINSV -3.13% HINDALCO 4.83% JISLJALEQS -2.87% BALRAMCHIN 4.46% NETWORK18 -2.69% rd #as on 03 Mar 2017 ` Weekly roundup: Sensex snaps five-week gaining spree as Fed rate hike looms A surprisingly positive gross domestic product (GDP) growth data and globally US President Donald Trump’s non-combative speech to Congress may have taken the market to two-year high on the fourth trading day, the benchmark indices snapped five-week long gaining spree to end in red terrain as investors preferred to book profits ahead of the US Federal Reserve’s policy meeting on March 14-15 and back home state election results due on March 11. During the week ended March 3, the S&P BSE Sensex fell 0.2% or 60 points to settle at 28832, while the Nifty50 lost 0.5% or 42 points to close the week at 8897. On Thursday, the 30-share Sensex had reclaimed its crucial 29,000 mark, hitting its two-year high of 29133 points, while 50- share Nifty also rose as much as 8,989 in intraday trade before profit-booking pushed the both indices lower. Midcap stocks underperformed the frontline indices. The BSE Midcap index slipped 0.9%, while the BSE Smallcap index lost just 0.2% for the week.
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