MOSt Market Outlook

11th May 2017

Nifty Chart

Nifty Outlook

Nifty Cash R1

R2

S1

S2

9407

9450

9500

9350

9320

'Nifty index opened positive and made a new record life

time high of 9414 after the sideways movement of last

three trading sessions. It formed a strong Bullish candle

and given a consolidation breakout from its trading range

of 9270 to 9380 zone. It managed to close with the

handsome gains of 90 points above its crucial hurdle of

9380 zone. Now a hold above 9380 could start the next

move towards 9450 and 9500 while on the downside

supports are shifting higher at 9350 and 9320.

Currency (USDINR) Outlook

USDINR

64.77

S1

64.55

S2

64.30

R1

65.00

R2

65.15

Market Drivers

3

Indian markets moved into new highs break-

ing out from the consolidation. Global cues re-

main sanguine. The results season continues

to be positive. Novelis results were better and

outlook was for stable capex and improved cash

flows. Hindalco should react positively to the

same. Zee numbers were encouraging. Hero

Moto corp profitability was below expecta-

tions. FIIs were net buyers in cash market on

Tuesday as well. Recovery in beaten down

names, positive global cues, FII flows and en-

couraging results should help the markets sus-

tain the upward momentum.

Dip buying is advised as long as 64.30 is held as strong

support.

Trading Idea - Cash & Future

Scrip

ASHOKLEY

Sectoral Outlook

SL

83

Highest Call OI

Outlook

POSITIVE

POSITIVE

Instrument

Strike

OI

6518625

549440

1045400

Chg in OI

849825

1840

101760

Nifty 25 - May

9500

Bank Nifty 25 - May 23000

Bank Nifty 11 - May 23000

Reco

BUY

CMP

85

Target

90

Sector

FMCG

AUTO

Corporate Action:

JMFINANCIL - Final Dividend - Rs. - 1.9052

Security in Ban period:

BHARATFIN, CEATLTD, HDIL, IBREALEST, IFCI, IRB, JSWENERGY

, KTKBANK, SYNDIBANK, UJJIVAN

Trading Idea - Derivatives

STRATEGY : AXIS BANK BULL CALL SPREAD

Instrument

B/S

Lot

Reco

AXIS BANK 530 CE

AXIS BANK 550 CE

Buy

Sell

1

2

11.5

5.5

Highest Put OI

Instrument

Strike

OI

7677000

913360

721000

Chg in OI

1609725

8760

196360

CMP

11.5

5.5

Nifty 25 - May

9300

Bank Nifty 25 - May 22000

Bank Nifty 11 - May 22500

Today Event

US - Initial Jobless Claims

Target: Rs 16800, SL: Rs.7200, Margin: approx Rs. 75000

MOSt Market Outlook

11th May 2017

Trading Calls

ASHOKLEY

Buy

CMP :

Target :

INR 85

INR 90

Derivatives Idea

AXIS BANK

BULL CALL SPREAD

Buy 1 Lot 530 CE

Sell 2 Lots 550 CE

The stock has strongly bounced back from it multiple suppor

tof 82-83 and formed a Bullish Reversal pattern on the daily

chart

3

The long green candle for the day scale points out towards

higher prices and thus this stock is recommended as a buy at

current levels for a potential upside target of 90 with a stop

below 83

3

Axisbank has recently taken support near to 505 zone and given

the highest daily close in last 11 weeks

3

Fresh Put writing at 510-530 strikes suggests shifting of its sup-

port while unwinding in 540 Call could lead the momentum

3

Indicating positive to range bound move this Bull Call Spread is

recommended

3

FII & DII Activity (INR in Cr)

Cat.

FII

DII

Amt

893

-230

MTD

-1047

2030

YTD

14751

43764

FII F&O

Institution

INDEX FUTURES

INDEX OPTIONS

STOCK FUTURES

Net B/S

-395

857

383

OI

Short Built Up

Synthetic Long

Long Built Up

MOSt Market Outlook

11th May 2017

Long Built-up

Short Built-up

Long Unwinding

Short Covering

Nifty Option OI

1- Day change in Nifty OI

MOSt Market Outlook

11th May 2017

Morning Meet Notes

Research Notes

Tata Motors

3

3

3

3

JLR Apr-17 wholesale volumes grew ~2% YoY (-42% MoM) to 41,923 units, below our estimate of 44,500 units

JAguar +37% YoY, LandRover -8% YoY,

JLR Apr-17 retail volumes -2% YoY (-42% MoM) JAguar +54% YoY, LandRover -16% YoY,

Trades at 14.7x/7x FY18/FY19E consolidated EPS, Buy 43% upside (TP INR 619)

Hero Moto

3

Sales -8% YoY, EBITDA -20% YoY, EBITDA margins down 320bps QoQ, PAT -14% YoY, BS 3 impact loss of INR 190cr, raised prices from INR 500-2200

MOSt Market Outlook

11th May 2017

MOSt Market Outlook

11th May 2017

Currency Ideas

USDINR

GBPINR

3

The pair is likely to trade in a higher range in short-term as it has breached out

of its two weeks of consolidation range closing higher at 64.77.

Strong supports are placed at 64.55 - 64.30 levels whereas resistance is at 65 -

65.10 area.

Dip buying is advised for the session

3

Bias remains positive for the pair as long as 83.25 - 83.15 is held as strong

support area.

The pair is likely to target 84.10 - 84.40 levels in short-term.

Dip buying near immediate support at 83.50 is advised for the session.

3

3

3

3

MOSt Market Outlook

11th May 2017

Dharmesh Kant (Head - Retail Research)

Dharmesh.Kant@motilaloswal.com

Chandan Taparia (Derivatives & Technical Analyst)

Chandan.Taparia@motilaloswal.com

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