DAILY FOREX RECOMMENDATION

SELL EURINR AT 99.50, SL 99.70, TARGET 99.10, CMP 99.50

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DAILY MCX BULLION RECOMMENDATION

SELL MCX SILVER [MEGA LOT] AT 33700, SL 34000, TARGET 33100, CMP 33730

DAILY MCX ENERGY RECOMMENDATION

SELL MCX CRUDE OIL AT 3030, SL 3055, TARGET 2980

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NIFTY OUTLOOK

Nifty July Futures (8372.8)(-161.55):
Markets opened on a weak note with a downside gap on weak global cues and tanked further on spree of adverse news. Technically, Nifty futures had turned weak having closed below 8546 on Friday and below 8470, the bears had a field day as they hammered the index to a two week low closing. On the higher side, though 8415 is the immediate resistance, 8438 is the strong supply zone now which must be taken out for signalling that the slide has stopped. It closed the day around an important level around 8373 and if this support is breached, it is likely to seek lower levels and then there will be chances of test o the 200 exponential moving average around 8275. Below 8275 there could be a fresh bout of panic. A close above 8570 will, however, negate the bearish outlook.

• Resistance: 8386, 8415, 8438, 8480, 8515-8525, 8570, 8590-8600


• Support: 8370 8330, 8306, 8275, 8230, 8200

Bank Nifty July Futures (18251.45) (-424.5):

Bank Nifty Futures opened gap down and lost further grounds as fresh sales were pressed despite the weak open so that at one point it was down by almost 460 points. It took support around an important level at 18215 and closed off the low of the day. It had turned negative as signalled by the Friday closing and the weak global cues crystallised in a major sell off. 18215 is an important support and a decisive breach of this level will push it down to lower supports at 18126, 18030, 18008. On the higher side, though 18304 is the immediate resistance, 18369 is an important level being the 200 simple moving average and it must sustain decisively above this to signal that the downswing is over. A test of 18370 on rallies and a failure to sustain above it will have more bearish implications and may lead to its testing the 200 exponential moving average posited around 17865.

• Resistance: 18304, 18369, 18436, 18500, 18570, 18605, 18660, 18730, 18780, 18800, 18860, 18890-18900, 18920, 18965, 19000


• Support: 18230, 18215, 18126, 18130, 18030, 18008, 17970, 17865

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MARKET OUTLOOK

Dear Customer,

 

Markets always tend to be interesting with something or the other happening all the time. Our Morning Mantra is released before the opening bell and it includes the market commentary along with Corporate & Global news for the day.

 

• U.S. stocks closed lower on Monday under pressure from an overnight plunge in the Shanghai Composite and a continued decline in commodities, amid a lackluster earnings season.  

Dow Jones	17440.6	-127.9	-0.73%
Dow Futures	17431.0	+35.0	+0.20%
Hangseng	24784.9	433.0	+1.78%
Nikkie	20158.6	-191.5	-0.94%
SGX Nifty	8347.5	-8.5	-0.10%

 

• Asian stocks dropped after a rout in Chinese equities drove global shares lower.
• Market is expected to open on flattish note and likely to remain range bound during the day.
• Rajesh Exports Ltd, India’s largest bullion and jewellery house by revenue, has acquired Valcambi, the world’s largest precious metals refinery, in an all-cash deal of $400 million (Rs 2,600 crore).
• Banks will take control of Electrosteel Steels Ltd, a company that owes its lenders Rs.9,500 crore-the first such takeover under new rules that empower creditors to do so
• Glenmark Pharmaceuticals’ proposed generic version of Bayer AG's Finacea, a gel for treating the common skin condition rosacea, infringes Bayer's patent, a US court ruled on Monday.
• International Paper Says Rajahmundry Unit Resumes Operations After Completion Of Annual Maintenance AP Pollution Control Board Revokes Closure Order Issued To Rajahmundry Unit

 

• Results Announced

Tech Mahindra	result improved  Dollar revenue  came in at 989 mn  vs 981 mn exp vs 984 mn  qoq  and 855 mn yoy Sales came at 6293.8cr vs  6149.32cr exp vs qoq 6116.80cr yoy 5121.50cr EBITDA came at 935.52cr vs  936.06 cr exp vs qoq 928.6cr yoy 928.40cr PAT came at 676cr vs  596 cr  exp vs qoq 472cr yoy 630cr.Stock is trading at PE of 16.42 FY16E and 13.37 FY17E Management of Tech Mahindra has give positive outlook and valuation at 13.4PE FY17 looks attractive
Ambuja Cements	result below expectation Sales came at 2493cr vs exp 2543cr qoq 2424cr yoy 2706cr EBITDA came at 384cr vs Exp 405cr qoq 509cr yoy 587cr PAt came at 226cr vs exp 270cr qoq 317cr yoy 409cr
KEC International - Insti	Strong operating margins leads to robust earnings KEC reported a 9% YoY increase in consolidated revenue at Rs18.8bn, in-line with our estimates/Bloomberg consensus. Raw material costs as a % of sales fell 80bps YoY leading to a 38% YoY rise in EBITDA at Rs1.4bn, 18%/17% above our estimates/Bloomberg consensus. Operating profit margin stood at 7.5% for the quarter,  up 160bps YoY (and 150bps higher compared to FY15 level of 6%) Driven by improved operational efficiency, PAT grew 167% YoY to Rs304mn, significantly higher than our estimate/Bloomberg consensus of Rs147mn/Rs228mn, respectively. Order inflow were strong at Rs31bn, up 63% YoY (FY15 order inflows were at Rs82bn). Consequently, the order backlog grew 11% sequentially to Rs105bn, a life-time high.
Torrent Pharma	Result is above expectations due to launch of Abilify drug in US Sales is Rs 1886 cr vs exp of Rs 1460 cr. QoQ Rs 1134 cr YoY Rs 1092 cr EBITDA is Rs 909 cr vs exp of Rs 415 cr. QoQ Rs 162 cr YoY Rs 345 cr PAT is Rs 449 cr vs exp of Rs 274 cr. QoQ Rs 130 cr YoY rs 256 cr The stock is trading at 23x FY16E earnings
KPR Mills	result  improved sales came at 600cr vs qoq 655cr yoy 578cr EBITDA came at 122cr vs qoq 107cr yoy 109cr PAT came at 50.5cr vs qoq 50cr yoy 39cr qoq PAaT remained flat on account of lower tax in Q4. Qtr EPS is Rs.13.4
Just Dial	result inline. Sales came at 169cr vs exp 169cr EBITDA came at 48cr vs exp 47cr PAT came ar 33cr vs exp 36cr Qtr EPS Rs.4.71
Jagran Prakashan	result improved but was expected. Sales came at 470cr vs exp 480cr qoq 412cr yoy 430cr EBITDA came at 135cr vs exp 134cr qoq 105cr yoy 107cr PAT came at 78cr vs Exp 76cr qoq 49cr yoy 55cr
DIC India	result good. sales came at 188cr vs qoq 171cr yoy 176cr EBITDA came at 15.07cr vs qoq 11.1cr yoy negative 5.4cr PAT came at 8.46cr vs qoq 5.7cr yoy loss of 10.1cr. Qtr EPS Rs.9.21
OCL India Ltd	result good. Sales came at 675.9cr vs exp 617.9cr qoq 660.7cr yoy 542.7cr EBITDA came at 132.6cr vs Exp 94.4cr qoq 101.1cr yoy 97.2cr PAT came at 48.8cr vs Exp 29.7cr qoq 36.0 yoy 36.2cr.
Easter Inds	result improved. Sales came at 208cr vs qoq 206cr yoy 232cr EBITDA came at 24.3cr qoq 19.19cr yoy 19.71cr PAT remain flat qoq at 3.83cr vs qoq 3.70cr yoy 1.77cr on account of higher tax
Mahindra CIE	result ok consolidted sales came at 1335cr vs qoq 1373cr yoy 1403xr EBITDA came at 147cr vs qoq 159cr yoy 142cr EBITDA margin came at 11% vs qoq11.6% yoy 10.1%. PAT came at 66.6cr vs qoq 144cr yoy 20cr
Inox Wind	result improved Sales came at 634cr vs yoy 303cr EBITDA beore Fx came at 94.56cr vs yoy 43cr PAT came at 50.5cr vs yoy 23.48cr
MRF	result good. Sales came at 3535cr vs exp 3245cr EBITDA came at 811cr vs qoq 629cr yoy 489cr PAT came at 446cr vs Exp 301cr qoq 333cr yoy 230cr QoQ margin expansion of MRF is 3.90% vs Ceat 2.7%
Kirloskar Brother	result Improved Sales came at 366cr vs qoq 535 yoy 325cr EBITDA came at 13.5cr vs qoq 55cr yoy negative 5.42cr PAT came at 7.33cr vs qoq 36cr yoy negative 20cr
Century Enka	Result improved
Info edge	Result ok  lower EBITDA is on account of higher Advertisement and promotional exp. Sales came at 171cr vs exp 178cr qoq 173cr yoy 145cr EBITDA came at 24cr vs Exp 51cr qoq 54cr yoy 49cr. PAt came at 40.6cr vs exp 49cr qoq 63cr yoy 40cr
Jindal Saw	result inline Sales came at 1908cr vs exp 1953cdr EBITDA came at 253cr vs exp 264cr PAT came at 104cr vs exp 80cr
Trident Ltd	result inline Sales came lower at Rs.834cr vs qoq 965cr yoy 900cr EBITDA came inline at 196cr vs qoq 195cr yoy 182cr PAT came higher at 61cr vs qoq 40.4cr yoy 32.3cr Higher PAT is on account of lower interest and lower tax.
Adi Finechem	result not good. sales came at 38cr vs qoq 36.7cr yoy 42.7cr EBITDA came at 3.01cr vs qoq 5.4cr yoy 8.8cr PAT Came at 0.62cr vs qoq 3.0cr yoy 5.2cr Qtr EPS Rs.0.45
Subros Ltd	result ok
Century textile	result declining sales came at 1944 vs qoq 2035cr yoy 1838cr EBITDA came at 171cr qoq 210cr yoy 204cr Loss came at 29cr vs qoq profit of 12cr yoy 66cr
Coromandal International	result below expectation. Sales came at 2162cr vs Exp 2245cr EBITDA came at 92.36cr vs Exp 137cr PAT came at 14.5cr vs exp 50cr
Ucal Fuel	result declining Sales came at 112cr vs qoq 125cr yoy 127cr EBITDA came at 13.52cr vs yoy 16.64 qoq16.44 PAT came at 2.36cr vs qoq 2.93cr yoy 3.12cr
Transpek Ltd	result declined qoq
Bannari Amman Sugar	Result not good
Vinyl Chem	Result declining

 

• Result to be Announced (Reported PAT Rs cr)

28/7/2015	Jun'14	Mar'15	Exp	NB Insti
Aditya Birla Chemicals	14.6	8.6	na	na
Bank Of India	805.7	-56.1	372.2	na
BASF India Ltd.	52.0	-59.3	99.0	na
Blue Star Ltd.	31.0	106.2	40.0	na
Dalmia Bharat Ltd.	-27.3	47.3	36.2	na
Dish TV India Ltd.	-16.1	35.0	37.6	na
GSFC	108.2	64.5	89.0	na
Gujarat Alkalies & Chemicals Ltd.	57.0	96.3	na	na
Gulf Oil Lubricants India Ltd.	18.0	21.7	22.5	na
HDFC	1872.9	2646.4	na	na
IDBI Bank Ltd.	106.2	545.9	160.8	na
Intellect Design Arena Ltd.	0.0	-29.7	na	na
J Kumar Infraproject Ltd.	22.9	27.3	24.6	na
Maruti Suzuki India Ltd.	762.3	1284.2	1228.6	1287.5
Mahindra Holidays & Resorts India Ltd.	20.4	24.9	23.9	na
Pidilite Industries Ltd.	168.5	80.6	202.9	na
PI Industries Ltd.	71.7	60.3	79.2	na
Punjab National Bank	1405.1	306.6	823.8	1175.0
Syndicate Bank	485.4	416.9	403.3	na
Tata Communications Ltd.	-21.4	0.0	71.0	na
Thermax Ltd.	41.4	132.3	55.9	58.5
Tide Water Oil Company (India) Ltd.	17.7	43.3	na	na
Union Bank Of India	664.1	443.8	493.8	na
Vaibhav Global Ltd.	21.8	17.6	na	na

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