ShareKhan Pre - Market Action

6th Jan 2016 - Wednesday

TradingIdeas: Long/Short Ideas identified on basis of Fundamental Trigger/News/Events

Watch List: List of stocks identified for trading with positive and negative bias for the day

News/ Important News & Events (Both Domestic & Global) to keep you updated on all News/ Updates:

Important News & Events (Both Domestic & Global) to keep you updated on all the happenings in markets.

Index Ideas: Nifty and Bank Nifty view for the day.

Currency: View on Currencies/ Important News and Updates

Commodity: View on Gold/ Silver/Metals

Trading Ideas

Auro Pharma (CMP – 863)

Aurobindo Pharma gets tentative approval forPrasugrel Anda

Action to be taken: Long Auropharma

Stop loss: 852 Target: 880-890

Valecha Eng (CMP – 53.4)

SEBI Bars Valecha Engineering from raisingcapital from public & securities market for 3years.

Action to be taken: Short Valecha Engg

Stop loss: 55.2 Target: 50-48

News Update

• Jharkhand govt seeks payment of outstanding dues by Rel Power in 3-4 weeks.

• SC has upheld ban on sale of large diesel vehicles in Delhi

• UP cabinet to take up sugarcane pricing policy on Jan • UP cabinet to take up sugarcane pricing policy on Jan 7

• SC asks Govt to set up 104 new CNG pumps in NCR

•High Court hearing today, on Telco's plea on call drops.

News Update

• Narayana Hrudayalaya to list today; issue price Rs 250

• JP Associates shareholders approve raising up to Rs 500 cr via debentures

• Suven Life Sciences secures three (3) Product Patents in Canada, ARIPO and South Korea in Canada, ARIPO and South Korea

•SEBI approves IPO plans of VLCC Health Care, Parag Milk, L&T Infotech | VCCircle.

• Govt scraps 5% export duty on iron ore pallets

News Update

• Zydus acquires select brands of leading animal health co Zoetis.

• Baring Private Equity Asia willing to sell 71% stake in Hexaware

• JHS Svenguard allotted 1.26cr convertible warrants to • JHS Svenguard allotted 1.26cr convertible warrants to non promoters under CDR

• Gokaldas board agrees to sell land in Bangalore, Hyderabad & Mysore

Watch List

Stocks With +ve Bias

CMP (Rs)

Stocks With -ve Bias

CMP (Rs)

Adani Power 35 Bata 489

India Cem 102 JSW Energy 86

Tata Steel 81

Stock for Investment

Stocks for Investment

Stocks CMP (Rs)

ADITYA BIRLA NUVO 2294

AXIS BANK 436

BRITANNIA 2967

PI INDUSTRIES 675

LUPIN 1783

Actionable Ideas

ShareKhan Actionable Ideas – KDDLCMP – 352 Target Price – 400

� Ethos (KDDL’s subsidiary into watch retailing) continues to nurture and improviseits online lead generation platform (www. ethoswatches.com) and expects anincremental growth on every parameter from this mode.

� We remain confident of the omnichannel lead generation retailing model of Ethoswhich is delivering good performance (Ethos has posted over 25% Y-o-Y growth overthe last six quarters).

� This strong growth is likely to continue with strong margin expansion ahead. Weexpect Ethos to post 26% revenue CAGR (FY2015-18), coupled with a 300-basispoint margin expansion over the same period resulting in a sharp 116% CAGRpoint margin expansion over the same period resulting in a sharp 116% CAGRgrowth in net earnings from Rs2.7 crore in FY2015 to Rs19 crore in FY2018. On aconsolidated basis, we expect the revenue and earnings to grow at a CAGR of 21%and 42% respectively.

� Thus, we continue to remain positive on the stock. With the introduction of FY2018estimates and rolling forward our valuation to an average of FY2017 and FY2018, wehave revised our price target on KDDL upwards to Rs400 (manufacturing verticalvalued at 6x; while Ethos valued at 25x average earnings of FY2017E and FY2018E).

Global Update

Global Indices and newsIndex Close Prev

CloseChange Change

Dow

Jones

17159 17149 10 0.06%

S&P 2017 2013 4 0.20%

•The Dow and S&P 500 finishedslightly higher on Tuesday,stabilizing after a weak start to thenew year, though investornervousness stayed high.

•China's markets, closely watchedafter a wild ride so far this week,rallied after services sector datashowed expansion, but other Asian

S&P

500

2017 2013 4 0.20%

FTSE 6137 6093 44 0.72%

showed expansion, but other Asianmarkets remained under pressureWednesday.

•Key data to watch in US today areADP Employment Report,International trade , Factory orders, ISM Non-MFg, EIA PetroleumStatus Report and FOMC minutes

Index View

Technical view – Nifty –7784

� Short Term Target for Nifty is 8200

� Crucial Support area for Nifty is 7551

� Intraday levels:Support 7714-7551 Resistance 7850-7938Support 7714-7551 Resistance 7850-7938

All levels are spot levels

Technical view Bank Nifty- 16542

�Crucial Support for Bank Nifty is at 16188

�Intraday levels:Support 16440-16188 Resistance 16670-16840

All levels are spot levels

Derivative Update

Future’s Activity

Current Previous % change

Nifty 7802.75 7809.8 -0.09%

Nifty CoC 3.69% 3.61% 2.18%

OI 21510000 20932350 2.76%

Nifty added 5.78 lakh shares in OI.

OI 21510000 20932350 2.76%

PCR(OI) 0.85 0.85 0.00%

INDIA VIX 16.70 16.84 -0.83%

Option’s Activity

Strike Curr. IV Curr. OI % Chg. OI % Chg. IV

8000 C 14.53% 5603325 31.95% -2.63%

7900 C 14.89% 3213600 30.61% -3.42%

7800 C 15.48% 2533800 20.63% -2.57%

Most active index call option

Strike Curr. IV Curr. OI % Chg. OI % Chg. IV

7700 P 16.78% 4484250 21.49% -0.96%

7800 P 15.81% 3863925 -2.26% -2.37%

7500 P 18.44% 5388300 16.30% 0.42%

Most active index Put option

On the options front in the January series 7500 PE stands with the

highest number of shares in the open interest (OI). Whereas on call

side 8200 CE stands with the highest number of shares in the open

interest (OI).

Securities in Ban For Trade Date 06-January-2016

1.NIL

FII :

INDEX FUTURES +33.86 cr.

INDEX OPTIONS +1163.85 cr.

STOCK FUTURES -178.56 cr.

STOCK OPTIONS -9.21 cr.

Market Level

5-DAY VWAP Lower RangeHigher

Range

7900 7800 7900

SGX Nifty -11.00 points at 7766.50 (Jan Fut.)

7900 7800 7900

Currency Update

ProductPrevious Close

Trend Action Support Resistance

USDINR 66.8225 Bullish Buy 66.64 67.04

EURINR 71.99 Bearish Sell 71.60 72.40

Technical Overview (Jan) 06/01/2016

EURINR 71.99 Bearish Sell 71.60 72.40

GBPINR 98.1150 Bearish Sell 97.80 99.50

JPYINR 56.07 Bullish Buy 55.85 56.30

Commodity Update

ProductPrevious Close

Trend Action Support Resistance

GOLD (Feb) 25388 UP Buy 35275 25490

SILVER (Mar) 33666 UP Buy 33250 34100

Commodity Technical Overview

(Mar) 33666 UP Buy 33250 34100

CRUDE 2407 Sideways Buy 2380 2440

COPPER (Feb) 311 Down Sell 308.20 314

Thank You !

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