Outlook for the Week

Date 3rd March 2014

Recap
Markets inched up 2% during the last week as short covering before the F&O February series expiry propped stocks. It was a broad based rally as stocks across the sectors staged recovery on expectations of a turnaround in FY15. 15. FIIs continue to remain buyers for all the days of the shortened week. Long build b up was seen in many stocks on the March series of F&O. F&O With last weeks rise, the benchmark Nifty rallied close to 5.8% from the lows of February beginning.

Inside This Issue

1 2 3 4 5 6 7
Recap Economy and Data Releases Corporate happenings Politics Markets Outlook Calls for the Week

It was a good week for markets with many mid-cap mid counters witnessing sharp accumulation.

Economy and Data Releases

GDP Growth - India
8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% -1.00% -2.00%
4.35% 4.78% 4.38% 4.61% 4.46% 5.07% 6.07% -0.68% 6.60% 4.70% 4.81%

7.56%

Indian Economy grew by 4.7% in the Dec13 quarter, as per CSO. The revised numbers for previous FY indicate that the economy grew at 4.6% against 5% as announced earlier. The services sector witnessed a recovery while both Mfg and Agriculture sectors saw slump in growth rates Stating that the forthcoming elections will delay the reform process and hurt growth, international rating agency Moodys on Monday said it expects growth to pick up to only 5.5% in FY15 Online retailing will triple to Rs 50,000 crore in three years: Crisil Jharkhand owes loans of around Rs 36,000 crore. If the total loan is divided with number of the total population, it will come around Rs 10,000 debt on each person of the state Raghuram Rajan sees no disruption to economic policies due d to polls. Bimal Jalan panel on bank licences submits recommendations to RBI Gold imports rose in December to 25 tonnes, higher than 19 tonnes in the previous month, mainly on account of wrong interpretation of the RBI's 80:20 scheme.

3.63%

Overall Industry YoY

Agri YoY Services YoY

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Corporate happenings
Vodafone-Tata Tele deal hits fervor Gujarat Gas board okays merger with 4 other cos Wipro bagged a 10-year IT and BPO PO contract from UK's Carillion Mahindra Ugine, Mahindra Forgings and Mahindra CIE will be merged into one entity Sahara chief Subrata Roy was arrested for his failure to appear before SC in connection with the case in which his two companies have been directed to refund nd Rs 20,000 crore to investors BNP Paribas upgrades India to Over Weight The flow of money into the fast growing online retailing space continues unabated. US giant eBay buys further ther stake stak in Delhi based online retailer Snapdeal by pumping in $133.77 $13 Million. According to sources, the fresh sh deal values Snapdeal at $650-700 $650 Million Honda plans India R&D unit to develop affordable cars

Politics
The Modi wave started to gather steam after softening of stance from the leaders of so called secular parties, which have seen the PM aspirant as an untouchable Ex Army General VK Singh joins BJP and is likely to contest LS Polls. It is rumored that Kiran Bedi will make an announcement soon RamVilas Paswan lead LJP comes back to NDA fold after almost 11 years. In the pre-election pact reached between LJP and BJP, LJP will contest in 7 seats in Bihar DMK Chief Karunanidhi praises Modi; calls him a 'hardworker' 'hardwo and a good friend, sparking parking off speculation of a possible alliance Ahead of the Lok Sabha polls, 11 parties got together with a vow to defeat Congress-led led UPA and prevent BJP from coming to power by presenting themselves elves as an alternative to them TRS chief Chandrasekhar Rao, remains noncommittal about either a merger or an alliance with Congress for 2014 LS Elections A week after Kiran Kumar Reddy resigned as Andhra Pradesh Chief Minister, the Centre today decided to impose President's Rule in the state while announcing a few sops for the Seemandhra region which has been opposing oppos creation of Telangana state 5-4-106/2, 106/2, Ranigunj, Secunderabad-3 040-66332125, 66329219, 663 9346336312 www.e w.enrichinvestment.in

Markets
Top Price Gainers and Losers KTKBANK CESC PTC JPPOWER VOLTAS 11.02% 9.20% 8.49% 8.41% 7.90% NTPC TATASTEEL UNITECH NMDC MARUTI -14.43% -7.58% -7.23% -6.66% -4.94% Ultra Bullish Bullish

Put Call Ratio - Indicator

Range Bearish Ultra Bearish

Top Open Interest Gainers and Losers NTPC TATASTEEL TATAPOWER RELCAPITAL TECHM 51.66% 35.60% 21.16% 19.25% 16.26% GSKCONS ZEEL BATAINDIA BANKBARODA ONGC -47.89% -38.44% -36.53% -35.95% -35.74% Index Close Change % Change
*Developed in-house house by Enrich Investments

Indices this week:

FII Investments in Indian Equity Markets Nifty Date

24-Feb-14 25-Feb-14 26-Feb-14 28-Feb-14

6276.95 10764.70 10338.55

121.50 210.35 237.50

1.97% 1.99% 2.35% Losers

Purchases ` Crores
2370.9 2380 2702.2 4051.7

Sales ` Crores
1756.6 2098.5 2211 3485.3

Net ` Crore
614.3 281.5 491.2 566.4

Net in $
98.82 45.32 79.25 91.44

BankNifty CNX IT

Gainers
BHEL HINDALCO BANKBARODA LUPIN AXISBANK 11.39% 7.89% 6.40% 6.37% 6.18% NTPC

-15.14% -8.17% -7.04% -5.17% -4.49%

TATASTEEL NMDC MARUTI SSLT

Nifty PE : 17.67

6300

Nifty
6250 6200 6150

10400 10300 10200 10100

10900

CNX IT

10800 10700 10600 10500

Bank Nifty

10000 6100 6050 6000

41694 41695 41696 41697 41698

10400 10300 10200 10100

41694 41695 41696 41697 41698 41694 41695 41696 41697 41698

9900 9800 9700

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Outlook and Calls for the Week

Weak third hird quarter GDP numbers released during the weekend and tensions prevailing in Eastern Europe after Russian tr troops infiltration into Ukraine were the negative developments markets start the week with. The econ economic data being released week after week has nothing positive to write home about but the expectations of a decisive mandate in the 2014 LS elections are getting stronger by the day and this is keeping the market sentiments buoyant. Niftys recovery from the lows of February beginning is quite remarkable considering the kind of weak fundamentals prevailing in the markets. In the immediate term Nifty has broken the immediate term resistance and is waiting to breach the major hurdle of 6360. Nifty may find it difficult to move beyond this barrier in a hurry, as a fall towards 6000 level remains open. On the downside, strong short term support is placed at the level of 6160 where Nifty may find buying support. The short term oscillators have reached over bought territory and point towards a correction once markets show a day of weak close.

Considering the above, one must look for a negative close to short the markets before jumping the guns as the momentum in near term is going very strong. The long term positives remain.

Expected Range in Nifty Futures: 6320 - 6160

Trading Calls:
SCRIPCODE BHARATFORG DIVISLAB M&MFIN RELCAPITAL Happy Trading Week, Recommendation Buy Buy Sell Sell Initiation Price 378 1410 252 312 Target 394 1480 238 298 StopLoss 373 1390 256 315 MAX Reward to Risk Ratio 3.20 3.50 3.50 4.67

Sunil K Daga
Disclaimer: Enrich investments makes no guarantee or warranty of any information provided in the report. The information provided, views and analysis expressed in the report are purely of the author. All efforts are made to provide data as accurately as possible and t the he data is extracted from the sources which are considered reliable. However, Enrich Investments do not take responsibility for any errors or omissions. omissions Enrich Investments is not, in any manner whatsoever, responsible for any losses incurred from action ta taken ken on basis of the data or analysis presented in the document. The content of this presentation is property of Enrich Investments and is not for circulation or publishing

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