Morning Moves

28th March 2016

Research Desk Stock Broking

Global Indices Market

Market Watch

Global
Indices

(Close)

(Pts)

Chg (%)

SGX Nifty

7,695.00

9.50

0.12

Dow Jones

17515.73

13.14

0.08

NASDAQ

4773.51

4.64

0.10

S&P 500

2035.94

-0.77

-0.04

FTSE 100

6106.48

-92.63

-1.49

Nikkei 225*

17118.17

115.42

0.68

Hang Seng

20345.61

-269.62

-1.31

Source: Bloomberg, leading business web *(as of 7:30 am) IST

GMR divests 51% in JV; will help pare Rs 1000-crore debt

ONGC gets Russia's nod for Rs 8600 crore Vankor oilfield deal

Tata Steel plans to sell two steel plants in Scotland

ITC buys Technico Agri Sciences

Mercedes-Benz launches new C Class 250d

Honda to hike car prices by up to Rs. 6,000

High Court prevents IDBI Bank employees from carrying out strike

Adani offers 49% stake in Dhamra LNG project to IOC, GAIL

80137827

Sectoral Gainers/Losers
Sector

(Close)

(Pts)

Chg(%)

S&P BSE METAL

7643.19

128.51

1.71

S&P BSE
TELECOM

1302.16

15.34

1.19

S&P BSE O&G

9060.42

-100.98

-1.10

S&P BSE ENERGY

2501.63

-27.02

-1.07

Market View

Source: BSE India

Nifty: Top Gainers & Losers

Gainers

%Chg

Losers

%Chg

HINDALCO

4.37

RELIANCE

-1.97

IDEA

2.65

PNB

-1.75

TATASTEEL

2.32

LUPIN

-1.62

BAJAJ-AUTO

1.99

BANKBARODA

-1.60

YESBANK

1.90

GAIL

-1.54

Source: NSE India | Bloomberg

Institutional Activity
Net
Value

Futures (FIIs)

Net Value

FII

976.91

Index

739.61

DII

-1022.58

Stock

-1081.85

Cash Market

Source: NSE India | Value (Rs in Crs)

Intra-day Recommendations
Scrip Code

Act

Entry

SL

TGT

UPL

453-454

448

465

SIEMENS

1089-1090

1077

1115

LICHSGFIN

ABV 480

474

490

GAIL

357-358

362

348

BIOCON

BLW 461

466

452

Note: Act=Action: Entry=Entry; SL=Stop loss; Tgt=Target; L= Long; S= Short,

Market likely to open flat; Buy sustaining above 7720 Levels: Markets ended
with a positive bias for the fourth consecutive week on account consistent buying
from foreign institutional investors (FIIs) and increasing hopes of rate cut by
Central bank in the upcoming monetary policy slated on 05 Apr 2016. Nifty gained
112 points or 1.47% to close at 7716.50. Overall breadth of market remained
positive, where Banking, IT & Commodity stocks outperformed the market,
whereas Pharma stocks remained underperformer during the week. Global market
remained choppy amid geopolitical concerns after militants targeted Brussels
airport and a city metro station on last Tuesday. Meanwhile, correction in Crude oil
prices kept risk appetite in check ahead of the long Easter break. Technically,
Nifty is well placed above its 21 & 50-DEMA, approaching toward its major 200DEMA which is currently placed near 7780 levels. The India VIX index a measure
of volatility continued to dip to settle at 16.34 levels indicating the strength in the
underlying move. In the coming week with expiry of March contract, markets are
likely to trade with positive bias and likely to head towards 7780-7800 above
which next resistance is pegged around 7860-7900 levels. On the downside,
supports are placed near 7600 levels followed by 7500-7540 area. Therefore we
recommend traders to buy Nifty if it sustains above 7720 levels, for the upside
target of 7780-7800 levels keeping stop loss below 7670 mark.

Nifty Option: Buy Nifty Mar 7700 CE @ 60 | SL: 45 | TGT: 90-100 | TF:
Intraday

28th March 2016

Morning Moves
DERIVATIVES INSIGHT
Nifty Dynamics

Nifty Tracker
Particulars

(Close)

(Previous)

Nifty Spot

7716.50

7714.90

Nifty Near Fut.

7736.30

7726.25

0.13

Nifty Near Fut. OI

2.17

2.11

3.03

Nifty COC %

11.71

5.97

5.74

Nifty PCR Vol

1.10

1.07

3.37

Nifty PCR OI

1.17

1.17

0.12

Bank Nifty Spot

15887.75

15936.00

-0.30

Bank Nifty Fut.

15936.20

15969.00

-0.21

0.24

0.25

-2.26

13.91

8.40

5.52

227609

226509

0.49

16.34

16.43

-0.55

Bank Nifty Fut.

OI
Bank Nifty COC
%
Market OI (Rs.
cr.)
India VIX

Chg(%)

Nifty March future is trading at a premium of 19.80 points as compared to

a premium of 11.35 points in the previous trading session. While
BANKNIFTY March futures is trading at a premium of 48.45 as compared
to premium of 33 points.

On the options front, Nifty March 7600 PE has highest open interest to the
tune of 53.71 lakh shares while Nifty Mar 7800 CE has open interest of
more than 66.57 lakh shares. Whilst Nifty March 7700 PE added 7.06 lakh
shares in open interest whereas Nifty March 7800 CE added 2.04 lakh
shares in open interest.

Nifty put options witnessed shedding of 3 lakh shares in open interest,

while Nifty call options witnessed shedding of 3 lakh shares in open
interest. India VIX ended at 16.34 from 16.43 while Nifty historical volatility
decreased to 21.37% from 22.04%.

Nifty call options average Implied Volatility (IV) increased to 17.56% from
16.17% and Nifty Put options average Implied Volatility (IV) decreased to
15.39% from 16.14% with market OI at Rs. 2,27,609 crore.

0.02

Source: Bloomberg, leading business web *(as of 7:30 am) IST

80137827
Source: Bloomberg, leading business newspapers & websites

Positional Recommendations

Options Activity (Near Month)

x 100000

OPEN INT

70
60
50
40
30
20
10
0

Call
Put

7300 7400 7500 7600 7700 7800 7900

x 100000

OI CHG

8
Call

SRF April Futures: Buy on dips 1243-1245 for the targets of 1285-1290
with a SL at 1215 (SPOT): SRF added 5.36% in open interest with rise in
price. On the technical front, the stock price witnessed breakout from falling
trend line with spurt in volume and momentum picked up, indicating stock may
surge further in sessions to come. Hence, one may go long in the counter with
above levels keeping a stop of 1215 levels.
HCLTECH April Futures: Sell below 812 levels for the targets of 785-790
levels with a stop loss above 830 (SPOT): HCLTECH April Futures
witnessed addition of 2.75% in open interest with fall in price in the last trading
session. Technically stock price is hovering below its 21 & 50-DEMA, while
momentum is also fading away, exhibiting stock may plunge on failing to hold
above 812 levels. Therefore, one may go short below 812 levels for lower
targets of 785-790 levels in the near term with a stop loss placed above 830
levels.

Put

4
0
7300 7400 7500 7600 7700 7800 7900
-4
-8

IDEA April 110 CE: Buy @ 3-3.20 with SL of 2.20 for targets of 5-5.50:
IDEA April 110 strike CE has OI of 1,05,000 and with IVs at 39.44% in the last
trading session. Also in stock futures witnessed addition of 10.88% in open
interest with rise in price. Technically, after brief consolidation stock price
managed to close above its 21-DEMA, while momentum also picked,
indicating stock may rise further in the coming sessions. Hence Long positions
may be assumed in the option @ 3-3.20 with a stop loss placed below 2.20 for
the targets 5-5.50 levels.

Hybrid Strategy

Hybrid Strategy Payoff

Source: NSE India | Value (Rs in Crs)

2800

2700

2600

2500

2400

2300

2200

2000
2100

1900

20000
0
-20000
-40000
-60000
-80000

1800

CALL LADDER IN BAJAJ-AUTO:

BAJAJ-AUTO March Future has total open interest of 13,24,800 shares while
BAJAJ-AUTO Mar.2350 CE witnessed shed of 9,400 shares making a total OI
of 20,800 and March 2400 CE witnessed shed of 400 shares making total OI
of 25,600 and March 2450 CE witnessed added of 1,000 shares making total
OI of 23,800 shares in the previous trading session.
Buy one lot BAJAJ-AUTO March 2350 CE @ 34; Sell one lot BAJAJ-AUTO
March 2400 CE @ 13 & Sell one lot BAJAJ-AUTO March 2450 CE @ 4.50 |
Max Gain: Rs 6700 | Max Loss: Rs.3300 & Unlimited above UBEP|UPPER
BREAK EVEN POINT (UBEP) :2483.50|LOWER BREAK EVEN POINT
(LBEP) :2366.50 | Stoploss: 2310| Time Frame: Expiry

28th March, 2016

Morning Moves

PIVOT TABLE
SYMBOL

CMP

S2

S1

PIVOT

R1

R2

SENSEX

25337.56

25076.41

25206.98

25287.40

25417.97

25498.39

NIFTY

15887.75

15749.45

15818.60

15869.10

15938.25

15988.75

NIFTYBANK

7716.50

7648.40

7682.45

7704.65

7738.70

7760.90

AXISBANK

437.50

431.80

434.65

437.95

440.80

444.10

BAJAJ-AUTO

2356.40

2282.67

2319.53

2341.77

2378.63

2400.87

BHARTIARTL

358.20

347.80

353.00

357.20

362.40

366.60

BHEL

116.40

114.73

115.57

116.68

117.52

118.63

CIPLA

532.80

520.80

526.80

531.55

537.55

542.30

COALINDIA

298.00

293.53

295.77

297.13

299.37

300.73

DRREDDY

3047.90

3004.80

3026.35

3052.55

3074.10

3100.30

GAIL

356.10

349.03

352.57

358.28

361.82

367.53

HDFC

1162.75

1133.98

1148.37

1158.03

1172.42

1182.08

HDFCBANK

1049.35

1035.15

1042.25

1047.65

1054.75

1060.15

HEROMOTOCO

2871.40

2833.00

2852.20

2883.45

2902.65

2933.90

HINDALCO

91.30

86.50

88.90

90.30

92.70

94.10

HINDUNILVR

873.60

853.70

863.65

870.50

880.45

887.30

ICICIBANK

234.20

229.13

231.67

233.33

235.87

237.53

INFY

1207.80

1171.60

1189.70

1200.20

1218.30

1228.80

ITC

324.25

318.48

321.37

323.23

326.12

327.98

LT

1242.55

1221.92

1232.23

1240.62

1250.93

1259.32

M&M

1249.35

1231.65

1240.50

1251.15

1260.00

1270.65

MARUTI

3736.00

3637.93

3686.97

3715.48

3764.52

3793.03

NTPC

127.35

126.05

126.70

127.50

128.15

128.95

ONGC

214.60

208.90

211.75

214.75

217.60

220.60

RELIANCE

1029.20

1008.33

1018.77

1032.83

1043.27

1057.33

SBIN

196.60

194.20

195.40

196.50

197.70

198.80

SUNPHARMA

846.20

826.87

836.53

844.27

853.93

861.67

TATAMOTORS

377.00

371.43

374.22

376.83

379.62

382.23

TATAPOWER

62.65

61.75

62.20

62.80

63.25

63.85

TATASTEEL

317.20

307.87

312.53

315.22

319.88

322.57

TCS

2473.80

2442.40

2458.10

2473.00

2488.70

2503.60

VEDL

96.85

94.75

95.80

97.00

98.05

99.25

WIPRO

555.75

540.18

547.97

553.58

561.37

566.98

Corporate Actions
Company

Series

Ex-Date

Record Date

Purpose

RAJESHEXPO

EQ

29-MAR-16

30-MAR-16

INTERIM DIVIDEND- RE 0.90/- PER SHARE

POWERMECH

EQ

29-MAR-16

30-MAR-16

INTERIM DIVIDEND - RE 1/- PER SHARE

ORICONENT

EQ

29-MAR-16

30-MAR-16

INTERIM DIVIDEND - RE 0.50 PER SHARE

HDFC

EQ

30-MAR-16

31-MAR-16

INTERIM DIVIDEND

PRESTIGE

EQ

30-MAR-16

31-MAR-16

INTERIM DIVIDEND

Page 1: FII= Foreign institutional investor, DII= Domestic institutional investor.| Page 2:Fut=Futures; COC=Cost of Carry; PCR = Put Call Ratio; Vol =
Volume; OI = Open Interest; VIX = Volatility Index | Page 3:Pivot Point: Intra-day trading tool that applies stop loss based on NSE prices.| Pivot Point: This is
a trigger point for intra-day buy/sell based on the price range of the previous day, based on NSE prices.| R1 (Resistance 1): First resistance over pivot point;
R2 (Resistance 2): Second resistance over R1.| S1 (Support 1): First support below pivot point; S2 (Support 2): Second support below S1.| As per the tool,
the trader should take a BUY position just above the pivot point; the stop loss should be kept at the pivot point and the first target would be R1. If R1 is
crossed, then R2 becomes the next target with the stop loss at R1.Similarly, if the price falls below the pivot point, the trader should SELL, keeping the pivot
point as the stop loss and the first target as S1. If S1 is crossed, then S2 becomes the next target with the stop loss at S1.

KARVY RESEARCH DESK STOCK BROKING

QUERIES & FEEDBACK

JK Jain

Toll-Free: 1800 425 8283

Head Research

Email ID: [email protected]

Karvy Stock Broking Limited: Karvy Centre, Avenue-4, 2nd Floor, Road No: 10, Banjara Hills, Hyderabad 500 034. India.
Tel: 91-40-23312454; Fax: 91-40-23311968

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