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Saturday, 23rd August 2014 Index Levels : Market Trend (Nifty):

Trend Reversal Point INDEX SUPPORTS RESISTANCES Period Current Trend (TRP)Nifty close basis

NIFTY# 7930/8000/8090 Short Term Trend UP DOWN BELOW 7750 (7913.20) 7850/7760

SENSEX# 26250/26000 26550/26700/27200 Medium Term UP DOWN BELOW 7650 (26419.55) ITE-35* ------Long Term Trend UP DOWN BELOW 6500 (10239.68) ND #as on 22 August 2014

Imtiaz Merchant’s Best Picks: Indices:

CURRENT Domestic COMPANY NAME SIZE SECTOR Close Points % Chg PRICE Indices Large Health Care 499 BSE Sensex 26419.55 59.44 0.23 % Cap Large Industrials and UPL 338 Nifty 7913.20 22.10 0.28 % Cap Capital Goods ITE Shariah 10239.68 42.83 0.42 % 35* S&P CNX 500 1919.15 4.92 0.12 % Note: (Buying should be done from a medium to long term perspective) Shariah

Advance/ Advance Decline AD Un- Market Brief Decline Ratio Changed BSE 1462 1572 0.93:1 114 On the back of positive global cues and some NSE 693 782 0.89:1 60 reform announcements by the Union Shariah Government, the markets on Friday ended the Universe*** 291 269 1.08:1 15 day and the week on positive note; Auto, Info. Technology and Health Care sectors were the flavor of the week. The undertone appears to Global Indices Close Points % Chg be bullish. All the trends are up. More reform Dow Jones* 16979.13 60.36 0.36% announcements from the Govt. and good NASDAQ* 4526.48 5.62 0.12% corporate results will further fuel the rally and FTSE* 6755.48 22.18 0.33% the Nifty is likely to see the 8000 level soon.

Nikkei 15586.20 -47.01 -0.30% Investors can remain optimistic on the Hang Sang 24994.10 118.13 0.47% markets. We suggest buying bullish stocks Straits Times 3324.09 1.41 0.04% which are having good governance and low ND *as on 22 August 2014 debts.

Institutional Buy Sell Net One should be having more focus on large cap Activity (Cr) companies with the balance of 70% large cap FII* 3351.04 3048.98 302.06 and 30% mid cap stocks. DII** 1416.48 1600.12 -183.64

FII* Foreign institutional investor DII** Domestic institutional invest `

5 Indian firms among Forbes’s most Innovative companies

Five Indian companies, including and Tata Consultancy Services, are among Forbes' list of the world's 100 most innovative companies that investors think are most likely to "generate big, new growth ideas". The annual 'World's Most Innovative Companies' list, released Wednesday, has been topped by California-based global cloud computing company Salesforce for the fourth year in a row. The five Indian companies on the list are consumer goods company Hindustan Unilever, which is ranked 14th, followed by IT major Tata Consultancy Services (57), construction services firm Larsen & Toubro (58), Pharma major Industries (65) and (96). Hindustan Unilever recorded an innovation premium of 54.7 percent.

Forbes said the innovation premium is a measure of how much investor has bid up the stock price of a company above the value of its existing business based on expectations of future innovative results like new products, services and markets. The innovation premium of TCS was 39.58 percent and the - based company has a market cap of Rs. 4, 81,778.53 crore as of 22nd August 2014. Larsen and Toubro had an innovation premium of 39.4 percent and has a market cap of Rs. 1, 42,576.54 crore. Sun Pharma had an innovation premium of 38.34 percent and a market cap of Rs. 1, 77,338.29 crore. Bajaj Auto recorded an innovation premium of 31.73 percent and a market cap of Rs. 70.59 crore. Salesforce, with a market cap of USD 35.87 billion, had an innovation premium of 75.9 percent and continued its reign as Forbes' most innovative company for the fourth straight year.

COMPANY FINANCIALS

Company Close Price 52 week EPS(TTM) P/E BOOK P/BV FV INDUSTRY High/Low VALUE PE HUL 704.35 734.95/536.00 18.05 38.97 15.15 46.43 1.00 40.74 TCS 2461.65 2613.35/1691.00 102.67 24.02 224.90 10.96 1.00 23.09 L&T 1536.55 1774.70/678.10 62.86 24.45 362.65 4.24 2.00 17.71 SUN 856.80 867.45/475.60 1.46 586.99 41.64 20.58 1.00 27.53 PHARMA BAJA 2263.00 2363.90/1683.35 112.16 20.17 332.04 6.81 10.00 22.05 AUTO #Based on Standalone Numbers ##as on 22ND August 2014

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Shariah Compliant Status

Company Size Sector Shariah Shariah compliant Ratios Rank Interest Debt to Receivables Cash to Income MC* to MC* MC* to MC Large HUL Consumer 06 0% 1% 2% 1% Cap Large Information TCS 01 0% 4% 4% 2% Cap Technology Large Industrials & L&T 10 9% 22% 3% 1% Cap Capital Goods SUN Large Health Care 08 0% 1% 0% 4% PHARMA Cap BAJA Large Automobiles 14 0% 1% 5% 2% AUTO Cap *MC= Market Capitalization

ITE – 35* Shariah Top Gainers & Losers Gainers Losers Stocks % Stocks % Titan Inds. 41 Godrej Consumer -1 37 -1 Larsen & Toubro 35 -1

O N G C 29 # % = 3 months Return

ITE – 211** Shariah Top Gainers & Losers Gainers Losers Stocks % Stocks % Texmaco Rail 167 Kappac Pharma -59 Solar Inds. 135 Ess Dee Alumin. -20 Orient Cement 131 Luminaire Tech. -15 Atul 128 Indian Infotech -13 CCL Inter 116 Jyothy Lab -10 Guj Gas Company 110 Just Dial -7 VST Till. Tract. 110 Esteem Bio Org. -5 UPL 92 Godrej Consum. -1

Finolex Cables 91 Wipro -1 Eco Friendly 87 Infosys -1 # % = 3 months Return

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Stock Universe for July to September 2014

Compliant Status No. of Percentage of Total Total Market Percentage of Total Companies companies Capitalization Market Capitalization Shariah Compliant Stocks 652 19.11% 4945152.61 53.69% Ratio Based Shariah Non –Compliant 2130 62.40% 2197685.30 23.86% Industry Based Non- Compliant 631 18.49% 2068556.44 22.46% Total Traded Stocks 3413 100.00% 9211394.35 100% # as on 22ND August 2014

‘Markets are directionally efficient, meaning that today’s price reflects what is currently known about the future direction of

the markets.’

*ITE-35 Shariah index is a well diversified Index with 35 stocks large size companies developed by Pragmatic Wealth Management research group. The ITE-35 Index commensurate with the Sensex & Nifty. ** ITE -211 Shariah is a broad based index constitutes 211 companies from large, mid and small size companies spread over 9 Shariah permissible sectors. This is parent (macro Index) and it commensurate with BSE- 500 and S&P CNX 500 *** Shariah universe comprises of companies derived (Filtered) from total traded stocks on (BSE) as per Shariah norms

Caution: Islamic Investments strictly prohibits intraday trading and Derivative trading. Stocks should only be sold upon procuring the delivery.

Disclaimer: The recommendations made herein do not constitute an offer to sell or a solicitation to buy any of the securities mentioned. No representations can be made that the recommendations contained herein will be profitable or that they will not result in losses. Readers using the information contained herein are solely responsible for their actions. Information is obtained from sources deemed to be reliable but is not guaranteed as to accuracy and completeness. The above recommendations are based on the theory of Technical & Fundamental Analysis Combined. © Pragmatic Wealth Management Pvt. Ltd.