}

Friday, 27 November 2015

Morning view - 27 November 2015


MORNING VIEW

Market View

The domestic equity market is likely to open on a flat note on Friday, tracking mixed cues from Asian markets.  US market remaining close for Thanks Giving day.

Nifty Spot Levels

Support
7830 – 7817 – 7650
Resistance
7910 – 7952 - 8000

Stocks for the Day & Actions
Reliance Industries
UK's Hardy Oil & Gas plc said it is in talks to acquire Reliance Industries' entire 90 per cent stake in a gas discovery block off the Gujarat coast. 
Action to be taken
Initiation Range
Stop Loss
Target
Buy
988-990
975
1016-1020









Ashok Leyland
Ashok Leyland wins contract for 3600 vehicles worth $200 mn from Cote D'Ivoire.
Action to be taken
Initiation Range
Stop Loss
Target
Buy
94.10-94.25
96
97



*Stock mentioned above are in Sharekhan research coverage. We also like these Stocks for short-term.

Derivative Data Update
  

NIFTY PCR:
0.83
NIFTY IMPLIED VOLATILITY:
16.69
MARKET WIDE OPEN INTEREST:
Rs.1,58,976 Cr. and Rs. 64,677 Cr. Added in OI
Nifty Roll over:
68.30% vs 73.62%
Market-wide Rollover:
83.34% vs 83.92%
MAJOR OI GAINERS
Aurobindo Pharma (94%), Shriram Transport Finance Company (92%), Karnataka Bank (92%) and Tata Chemicals (91%)
MAJOR OI LOSERS
Mindtree (58%), Kaveri Seed Company (59%), Marico (59%) and Biocon (64%)

Stock in News

GAIL starts satellite monitoring of its gas pipeline network 
  1. Unilever aims to use only renewable energy by 2030 
  2. SRL Diagnostics may see exit of PE investors Avigo Capital, Jacob Ballas and IFC 
  3. Polaris insider trading: SEBI orders seizing of Rs 2 crore
  4. Govt shortlists 5 merchant bankers for CIL stake sale viz,  JM Finanacial, SBI Capital, ICICI Securities, Axis Capital & Kotak Mahindra bank
 Global Market & International Data Update
  
·         The major US indexes were virtually unchanged at the close of a quiet trading day on Wednesday with gains in healthcare and consumer stocks after data showed US modest economic growth.
·         Trading volume was low as many market participants were away in the last session before the U.S. Thanksgiving holiday. Markets will be closed Thursday and most of Friday afternoon.
·         The Dow Jones industrial average rose 1.2 points, or 0.01 percent, to 17,813.39.
Currency
Subject
Forecast
Previous
GBP
GDP (YoY)
2.3%
2.3%

 Stock Update - Investor Eye


Stock Update - Investor Eye

JB Chemicals
Reco – Book Profit
Cmp 282

Outlook remains uncertain due to currency headwinds; Book profit

Key points

  • Sluggish performance continued in Q2: In Q2FY2016, JB Chemicals and Pharmaceuticals Ltd (JBCPL) reported a subdued performance with a revenue growth of just 2%, while operating profit margin declined by 350BPS to 17%. This quarter was the fourth consecutive quarter of dismal operating performance by the company.

  • Volatility in currency affects exports in key emerging markets: JBCPL reported a moderate 3% growth in exports of formulation to Rs133 crore during Q2FY2016. The exports to the Rest of the World (RoW) markets (10% decline during the quarter) were affected due to lower demand and depreciation of market currencies against dollar.
Š
  • Outlook remains bleak; Book profit: The volatility in currencies in key emerging markets is likely to have an effect on H2FY2016 performance too. Also, for FY2017, demand will continue to be weak as dollar is likely to strengthen further. Hence, the operating profit margin and profitability are likely to remain under pressure over the next few quarters. Hence, in view of bleak future, we advise our investors to Book profit from the stock.

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