Motilal Oswal Financial Services

MOSt Market Outlook

10th October 2017

Nifty Chart

Nifty Outlook

Index

Nifty Cash

BankNifty

CMP

9988

24251

10050

24350

10080

24500

9950

24000

9880

23850

Market Drivers

Domestic markets closed marginally higher.

Sectors like financials, metals, real estate,

jewellery players did well. The focus will

continue to be results in the near term. Sectors

like financials, auto, metals, and consumer could

see interest on back of same. Sectors like

infrastructure, Defense, railways could also

remain in focus on expectations of order flow

and improvement in execution. Flows remained

muted with FIIs being net sellers and DIIs

marginal net buyers. Overall domestic market

could consolidate but the bias appears to be

positive.

Nifty index continued its formation of higher highs – higher lows

for sixth consecutive session and headed towards 10015 zones.

However it failed to hold above 10000 zones and formed a Doji

candle as it closed near to its opening levels. Doji candle suggests

that now bears are fighting near to 10k mark after the sharp bounce

back of 328 points in last seven sessions from the support of 9685.

It completed its 61.80% retracement of the entire down leg from

10178 to 9687 and has been hovering near to 9990 zones from last

two sessions. Now it has to continue to hold above 9980-10000

zones to extend its up move towards 10080 then a fresh life highs

while a hold below 9950 could end its pull back to attract a profit

booking towards 9880 then 9850 levels.

Currency (USDINR) Outlook

Trading Idea - Cash & Future

Scrip

Reco

BAJAJ FINANCE Buy

CMP

1941

1910

Target

2000

USDINR

65.52

65.30

65.10

65.70

65.90

Sideways consolidation within 65.30 - 65.90 is likely for the day.

Sectoral Outlook

Sector

NBFC

FMCG

Outlook

POSITIVE

Highest Call OI

Instrument

Nifty 26 - Oct

Bank Nifty 26 - Oct

Bank Nifty 12 - Oct

Strike

10000

24500

24600

4365000

719240

668240

Chg in OI

281700

-62000

176080

Corporate Action:

HERITGFOOD - Stock Split From Rs.10/- to Rs.5/-

Security in Ban period:

BEML, DHFL, IBREALEST, JPASSOCIAT, JSWENERGY, RCOM,

RELCAPITAL

Trading Idea - Derivatives

STRATEGY UPDATE : SUNPHARMA CALL LADDAR SPREAD

Instrument

B/S

Lot

Reco

CMP

SUNPHARMA 520 CE

SUNPHARMA 540 CE

SUNPHARMA 560 CE

SL : 2000, TRAGET : 5000

Highest Put OI

Instrument

Nifty 26 - Oct

Bank Nifty 26 - Oct

Bank Nifty 12 - Oct

Strike

9800

24500

24000

5782950

1364520

646200

Chg in OI

416175

56640

227160

Today Event

India - Trade Balance

Buy

Sell

12.95

6.50

3.35

23.40

13.15

6.15

MOSt Market Outlook

10th October 2017

Trading Calls

BAJAJ FINANCE

Buy

CMP :

Target :

INR 1941

INR 2000

Derivatives Idea

SUNPHARMA

CALL LADDAR SPREAD

Buy 1 Lot 520 CE; Sell 1 Lot 540 CE

Sell 1 Lot 560 CE

Price action in Bajaj Finance is in a steady up trend and its few

points away for new high territory

It closed above its immediate resistance of 1933 and surpassed

its falling supply trendline. As the trend is up the current spurt

in mometum should be used as an opportunity to buy this stock

Thus suggesting to buy with a stop loss below 1910 for an up-

side target towards 2000

It is at the verge of its major triangle breakout which could give

a sharp rally

Supports are gradually shifting higher

Fresh Put writing could support it to give the breakout

Thus a low cost, Call Ladder Spread is recommended

FII & DII Activity (INR in Cr)

FII F&O

6th Oct

-1040

1240

5th Oct

-657

519

Institution

INDEX FUTURES

INDEX OPTIONS

STOCK FUTURES

Net B/S

-30

881

-219

Long Unwinding

Put Buying

Long Unwinding

Cat.

FII

DII

9th Oct

-475

MOSt Market Outlook

10th October 2017

Long Built-up

Short Built-up

Long Unwinding

Short Covering

Nifty Option OI

1- Day change in Nifty OI

MOSt Market Outlook

10th October 2017

Research Notes

Morning Meet Notes

Tata Steel - Site visit; Benchmark in ops excellence, sustainability & CSR (CMP679, TP665, Recom NEUTRAL)

Planning to double its capacity to 26mtpa in India through both org & inorg routes

Branded products comprise of 50% of JSR's revenue

JSR has 10mtpa capacity in 1,700 acres and is expected to increase production by 1mt over 3 yrs

Expansion projects will increase Tata's Indian capacities by 4-6mtpa to 17-19mtpa over the next 3-4 years

Likely to pursue growth instead of de-leveraging & we value it at TP of INR665

Zee Entertainment (CMP523, TP630, Recom BUY)

Acquired 9X Media's six music channels for INR1.6b

9X Media holds ~26% share in the music ad market

Deeper inroads to music genre & Wider marketing channel for own music/movie production

We value it at TP of INR630 (adj. EPS est. of INR12/18 for FY18/19, with CAGR of 13% over FY17-19)

Automobile - 2QFY18 Preview

Vol. recovery across segments (Aug onward); due to pre-fest inventory build-up & improving rural sentiment

Fourth straight quarter of YoY contraction in EBITDA margin; healthy QoQ recovery

Below-normal monsoon may result in slower rural recovery; higher commodity prices may hurt margins

Lowered FY19 EPS est for AMRJ (-13%), increased BJAUT (+7%) & ENDU (+4%)

Our top picks - TAMO, Maruti Suzuki, Ashok Leyland, Amara Raja & MM (on a rural market recovery)

Oil & Gas 2QFY18 PREVIEW

Brent up 13% YoY and 3% QoQ; upstream subsidy nil in 2QFY18

ONGC & Oil India should see YoY EBITDA increase

RIL is expected to clock a GRM of USD12.6/bbl

Petchem segment to do better despite decline in HDPE & LDPE delta with RIL being an integrated player

INTERGLOBE AVIATION FY17: High dividend payout; Equity dilution continues

Declining yield, rising fuel costs impact EBITDA

Low R&M and S&D cost a differentiator; may increase

Rising supplementary rents and incentives boost cash flows

High dividend payout; equity dilution to acquire aircrafts

MOSt Market Outlook

10th October 2017

MOSt Market Outlook

10th October 2017

Currency Ideas

USDINR

EURINR

USDINR stabilized above its previous important support at 65.10 levels.

Short-term supports are now placed at 65.30 - 65.10 zone whereas 65.70 /

65.90 may provide resistances.

Sideways consolidation is likely for the day

EURINR continues to rise forming higher highs and higher lows within an up-

ward sloping trend channel C - C1.

Immediate support is placed at 76.80 / 76.50 whereas 77.40 / 77.70 may act as

stiff resistances.

Dip buying is advised.

MOSt Market Outlook

Chandan Taparia

Research Analyst (Derivatives & Technical Analyst)

Disclosures

The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).

Motilal Oswal Securities Ltd. (MOSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOSL, the Research Entity (RE) as defined in the Regulations, is engaged in the business of providing Stock broking services,

Investment Advisory Services, Depository participant services & distribution of various financial products. MOSL is a subsidiary company of Motilal Oswal Financial Service Ltd. (MOFSL). MOFSL is a listed public company, the details in respect of

which are available on

www.motilaloswal.com.

MOSL is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited

(BSE), Metropolitan Stock Exchange Of India Ltd. (MSE) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) & National Securities Depository Limited (NSDL) and is member of Association

of Mutual Funds of India (AMFI) for distribution of financial products. Details of associate entities of Motilal Oswal Securities Limited are available on the website at

http://onlinereports.motilaloswal.com/Dormant/documents/Associate%20Details.pdf

Pending Regulatory Enquiries against Motilal Oswal Securities Limited by SEBI:

SEBI pursuant to a complaint from client Shri C.R. Mohanraj alleging unauthorized trading, issued a letter dated 29th April 2014 to MOSL notifying appointment of an Adjudicating Officer as per

SEBI regulations to hold inquiry and adjudge violation of SEBI Regulations; MOSL requested SEBI to provide all documents, records, investigation report relied upon by SEBI which were referred

in Show Cause Notice and also sought personal hearing. The matter is currently pending.

MOSL, it's associates, Research Analyst or their relative may have any financial interest in the subject company. MOSL and/or its associates and/or Research Analyst may have beneficial ownership of 1% or more securities in the subject company

at the end of the month immediately preceding the date of publication of the Research Report. MOSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position

in, act as principal in, and buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker

in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other potential conflict of interests with respect to any recommendation and other related

information and opinions.; however the same shall have no bearing whatsoever on the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the

associates of MOSL even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report. Research Analyst may have served as director/officer, etc. in the subject company in the last 12 month

period. MOSL and/or its associates may have received any compensation from the subject company in the past 12 months.

In the last 12 months period ending on the last day of the month immediately preceding the date of publication of this research report, MOSL or any of its associates may have:

a) managed or co-managed public offering of securities from subject company of this research report,

b) received compensation for investment banking or merchant banking or brokerage services from subject company of this research report,

c) received compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company of this research report.

d) Subject Company may have been a client of MOSL or its associates during twelve months preceding the date of distribution of the research report.

MOSL and it's associates have not received any compensation or other benefits from the subject company or third party in connection with the research report. To enhance transparency, MOSL has incorporated a Disclosure of Interest Statement

in this document. This should, however, not be treated as endorsement of the views expressed in the report. MOSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports.

As a result, the recipients of this report should be aware that MOSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant banking,

investment banking or brokerage service transactions. may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant banking, investment banking

or brokerage service transactions.

Terms & Conditions:

This report has been prepared by MOSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and may not be altered in any way, transmitted to, copied or

distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of MOSL. The report is based on the facts, figures and information that are considered true, correct, reliable and

accurate. The intent of this report is not recommendatory in nature. The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty,

representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The report is prepared solely for informational purpose and does

not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report

at the same time. MOSL will not treat recipients as customers by virtue of their receiving this report.

Analyst Certification

The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be directly or indirectly related

to the specific recommendations and views expressed by research analyst(s) in this report.

Disclosure of Interest Statement

Analyst ownership of 1% or more securities

A graph of daily closing prices of securities is available at

www.nseindia.com, www.bseindia.com.

Research Analyst views on Subject Company may vary based on Fundamental research and Technical Research. Proprietary trading desk of MOSL

or its associates maintains arm's length distance with Research Team as all the activities are segregated from MOSL research activity and therefore it can have an independent view with regards to subject company for which Research Team have

expressed their views.

Regional Disclosures (outside India)

This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would

subject MOSL & its group companies to registration or licensing requirements within such jurisdictions.

MOSt Market Outlook

For Hong Kong:

This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong Securities and Futures Commission (SFC) pursuant to the

Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) "SFO". As per SEBI (Research Analyst Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets

(Hong Kong) Private Limited for distribution of research report in Hong Kong. This report is intended for distribution only to "Professional Investors" as defined in Part I of Schedule 1 to SFO. Any investment or investment activity to which

this document relates is only available to professional investor and will be engaged only with professional investors." Nothing here is an offer or solicitation of these securities, products and services in any jurisdiction where their offer or sale

is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not located in Hong Kong & are not conducting Research Analysis in Hong Kong.

For U.S.

Motilal Oswal Securities Limited (MOSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United States. In addition MOSL is not a registered

investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific

exemption under the Acts, any brokerage and investment services provided by MOSL, including the products and services described herein are not available to or intended for U.S. persons. This report is intended for distribution only to "Major

Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional investors"). This document must not be acted on or relied on by persons who are

not major institutional investors. Any investment or investment activity to which this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption

from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order to conduct business with

Institutional Investors based in the U.S., MOSL has entered into a chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report

will have to be executed within the provisions of this chaperoning agreement.

The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered broker-dealer, MOSIPL, and therefore, may not be

subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading securities held by a research analyst account.

For Singapore

Motilal Oswal Capital Markets Singapore Pte Limited is acting as an exempt financial advisor under section 23(1)(f) of the Financial Advisers Act(FAA) read with regulation 17(1)(d) of the Financial Advisors Regulations and is a subsidiary of Motilal

Oswal Securities Limited in India. This research is distributed in Singapore by Motilal Oswal Capital Markets Singapore Pte Limited and it is only directed in Singapore to accredited investors, as defined in the Financial Advisers Regulations and

the Securities and Futures Act (Chapter 289), as amended from time to time. In respect of any matter arising from or in connection with the research you could contact the following representatives of Motilal Oswal Capital Markets Singapore

Pte Limited:

Disclaimer:

The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media

or reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for

securities or other financial instruments. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities

discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This may not

be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities

of companies referred to in this document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not be suitable

for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade securities - involve substantial risk and are not suitable for all investors. No representation or warranty,

express or implied, is made as to the accuracy, completeness or fairness of the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the

transparency and should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make modifications and alternations to this

statement as may be required from time to time without any prior approval. MOSL, its associates, their directors and the employees may from time to time, effect or have effected an own account transaction in, or deal as principal or agent

in or for the securities mentioned in this document. They may perform or seek to perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these

entities functions as a separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that is already available in publicly

accessible media or developed through analysis of MOSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the views expressed therein. This document is being supplied to you solely for your

information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by,

any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject MOSL to

any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come

are required to inform themselves of and to observe such restriction. Neither the Firm, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including

lost revenue or lost profits that may arise from or in connection with the use of the information. The person accessing this information specifically agrees to exempt MOSL or any of its affiliates or employees from, any and all responsibility/

liability arising from such misuse and agrees not to hold MOSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOSL or any of its affiliates or employees free and harmless from all losses, costs,

damages, expenses that may be suffered by the person accessing this information due to any errors and delays.

Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022-3980 4263; www.motilaloswal.com. Correspondence Address: Palm Spring Centre, 2nd Floor,

Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 3080 1000. Compliance Officer: Neeraj Agarwal, Email Id:

na@motilaloswal.com,

Contact No.:022-30801085.

Registration details of group entities.: MOSL: NSE (Cash): INB231041238; NSE (F&O): INF231041238; NSE (CD): INE231041238; BSE (Cash): INB011041257; BSE(F&O): INF011041257; BSE(CD); MSE(Cash): INB261041231; MSE(F&O):

INF261041231; MSE(CD): INE261041231; CDSL: IN-DP-16-2015; NSDL: IN-DP-NSDL-152-2000; Research Analyst: INH000000412. AMFI: ARN 17397. Investment Adviser: INA000007100. Motilal Oswal Asset Management Company Ltd.

(MOAMC): PMS (Registration No.: INP000000670) offers PMS and Mutual Funds products. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.: INP000004409) offers wealth management solutions. *Motilal Oswal

Securities Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs, Insurance and IPO products. * Motilal Oswal Commodities Broker Pvt. Ltd. offers Commodities Products. * Motilal Oswal Real Estate Investment Advisors II Pvt.

Ltd. offers Real Estate products. * Motilal Oswal Private Equity Investment Advisors Pvt. Ltd. offers Private Equity products