HDFC Morning Market Note - Market Outlook and technical analysis for the day - read about updates on Indian markets as well as world markets, currencies, commodities, key events, economy and corporate news, as well as stock ideas.

1. Morning Note
Retail Research
Key Indices Nov 24 % Chg
Sensex 28499 +0.58
Nifty 8530 +0.62
BSE 500 10895 +0.42
DJIA* 17818 +0.04
Nasdaq* 4755 +0.89
MSCI Emerging Markets* 1011 +0.69
MSCI AC Pacific* 137 +0.36
MSCI World* 1740 +0.16
Sectoral Indices Nov 24 % Chg
Major Gainers
BSE IT 11126 +1.86
BSE METAL 11310 +1.64
Major Losers
BSE OIL & GAS 10796 -0.73
BSE HEALTHCARE 14827 -0.45
Top Gainers
(BSE-100) CMP (Rs) % Chg
DLF 147.10 +4.85
CROMPGREAV 204.20 +4.37
JINDALSTEL 149.05 +4.30
Top Losers
(BSE-100) CMP (Rs) % Chg
POWERGRID 142.15 -2.90
GLENMARK 797.50 -2.61
IDEA 168.10 -2.38
52 Week High Price (Rs)
ACCELYA 932.00
JKTYRE 558.90
52 Week Low Price (Rs)
ANGL 161.10
EDSL 18.90
Turnover (Rs bn) NSE BSE
Nov 24 156.65 36.03
5 days average 170.35 35.14
Advance-Decline NSE BSE
Nov 24 0.79:1 0.77:1
5 days average 0.65:1 0.78:1
Volatility Index (ViX) Nifty CBOE
Nov 24 13.02 12.62
5 days average 13.89 13.49
Net Flows (Cr) Debt FII FII MF
Nov 21 -105.5 269.5 567.2
Cumulative for
Nov 8445.1 9140.6 35.0
5 days average 667.5 171.5 200.2
Interest Rates 3 month Chg bps
MIBOR 8.67 +6.00
10 yr bond yield 8.16 -1.00
LIBOR – UK 0.56 +0.00
LIBOR – USA 0.23 +0.00
LIBOR – Europe 0.06 +0.00
Exchange Rates Value % Chg
USD/INR 61.78 -0.11
USD/EURO 0.80 -0.40
USD/YEN 118.26 +0.45
USD/POUND 0.64 -0.33
Other# Value % Chg
RJ/CRB Index 267.19 -0.71
Gold ($ / Oz) 1195.50 -0.18
Crude Oil ($ / Barrel) 75.78 -0.95
Brent Oil ($ / Barrel) 79.68 -0.85
1
Market Round Up Nov 25, 2014
Indian Markets
 The Sensex ended up 165 points at 28,499 and the 50-share Nifty ended up 53 points
at 8,530. Infosys and ICICI Bank alone contributed to nearly 120 point gain seen on
the Sensex. Sensex and Nifty registered an all-time high of 28,542 and 8,535,
respectively in intra-day trades. In the broader markets, the mid and smallcap indices
ended up 0.3% each, underperforming the BSE benchmark index which gained 0.5%.
 On the sectoral front, defensives like FMCG and Health Care indices were in red,
down 0.2% and 0.4% respectively along with Oil & Gas index down 0.7%. Among the
ones in green were bankex, IT, Metal, Realty and Teck indices up 1-2%. Consumer
Durables and Capital Goods indices up 0.8% each were the other notable gainers.
 As per the provisional figures on Monday, FIIs were net buyers of Rs.407 cr in the
cash market, while they were net sellers of Rs. 148 cr in the F&O markets. However,
DIIs were net sellers of Rs. 163 cr in the cash market.
US & European Markets
 US stocks rose on Monday on hopes that China will take further accommodative
monetary policy action if needed, while merger deals kept traders focused even as
volumes were below average. The Dow Jones industrial average rose 7.84 points, or
0.04 percent, to 17,817.9, the S&P 500 gained 5.91 points, or 0.29 percent, to
2,069.41 and the Nasdaq Composite added 41.92 points, or 0.89 percent, to 4,754.89.
 European markets finished mixed as of the most recent closing prices. The DAX
gained 0.54% and the CAC 40 rose 0.49%. The FTSE 100 lost 0.31%.
 Most of the Indian ADRs ended on a mixed note. Banking stocks HDFC Bank was up
1.3% while ICICI Bank was up 0.2%. IT major Infosys was up 2.7% while Wipro was
up 1.3%. Tata Motors was down 2.3% while Dr Reddy’s was down 0.8%.
Latin American Markets
 Among the Latin American markets, the Mexican markets ended almost flat and the
Brazil Bovespa was down 1.2%.
Asian Markets
 Asian markets are higher today as Chinese and Hong Kong shares show gains. The
Shanghai Composite is up 0.40% while the Hang Seng is up 0.04%. The Nikkei 225 is
not trading.
 As of IST 8.30 am SGX Nifty is trading higher by 8 points.
Currencies
 Bucking a strong trend in share market, the Indian rupee today gave up all its initial
gains and slipped 18 paise to close at 61.94 against the Greenback on rising dollar
demand from importers. Dollar demand from oil refiners for meeting their month-end
requirements pushing down the rupee to log its first drop in three sessions, forex
traders said.
 The euro gained 0.4 percent to $1.2437 after trading as low as $1.2359, near a two-year
low hit earlier in the month. It was up 0.8 percent at 147.08 yen, erasing an
earlier loss during Asian trading.
Commodities
 Oil for Jan 2014 contract lost 0.9% at $75.8/barrel.
 Gold for Dec 2014 delivery lost 0.2% at $1195.7/troy ounce.
Key Events for Today
 Japan – CSPI, Speech of BOJ Governor
 Germany – GDP
 UK – BBA Mortgage Applications
 US – GDP, Chain Store Sales, House price index, CB Consumer Confidence
Outlook
Indian markets could open positive and be range bound with a positive bias. Banks, IT, Metals
could relatively outperform. Immediate support for Nifty is at 8490 level, while immediate
resistance is at 8550 level.
.
For fresh and / or open calls refer to page 4

2. Technical Analysis – Market Pulse Nov 25, 2014
Nifty Perspective Support Resistance 21 Day EMA Stock Pick
8530.15 Bullish 8490 - 8450 8550 - 8600 8305 Biocon
Nifty Trend Target Reversal
Near Term (1-7 days) Up 5550 - 5600 8430
Short Term (7-21 days) Up 5600 8350
Stay with Bulls.
Day’s action formed a bull candle within good volumes which indicates bulls are continuing their momentum.
Technically, channel breakout has been witnessed with moderate bull candle which is positive sign for the market. After a long time two
consecutive good bull candles are witnessed. Index has closed at another record high with weak A/D ratio which may disturb the prevailing
uptrend.
However trend wise index is continuing the uptrend towards 8600 levels in the near term. If we see same momentum one more day then
price could easily test the 9000 level without significant price correction. Trend reversal is placed at 8470. Unless we see the violation of this
level on closing basis the view remains intact.
Another higher high, higher low has been witnessed on both daily and weekly chart which is a bullish continuation sign, the progressing
“wave v” is extending towards the above mentioned targets. In reality it is difficult to predict the exact target for an extending leg; so run with
the trend till it reverses.
RSI is hovering in the overbought zone on daily chart which may disturb the bull’s momentum.
Retail Research
2

3. Retail Research
For forthcoming Board Meeting on Nov 25, 2014
click on the following link
http://www.bseindia.com/mktlive/board_meeting.asp#1
3
News Flash Nov 25, 2014
Economy News
 The United States wants to step up its trade dialogue with India, Trade
Representative Michael Froman said on Monday, after the resolution of a global
trade dispute paved the way for President Barack Obama to visit India.
 To increase awareness and deepen insurance penetration, Government should
launch a 'Jan Bima Yojna' on the lines of a similar programme launched for
banking, Insurance Regulatory and Development Authority (Irda) Chairman T S
Vijayan said on Monday.
 The state-run Mumbai Metro Rail Corporation (MMRC) will invite bids for the
construction of the 32.5 km-long, Rs 23,136-crore Mumbai Metro Phase-III project
this week.
Corporate News
 SpiceJet Ltd is in "exploratory and preliminary stage" talks with investors about
raising fresh capital, the budget airline said in a regulatory statement on Monday.
 Striking another major deal in less than four months, Adani Power entered into a
binding agreement with Gautam Thapar-led Avantha Group to buy out its 600 MW
Korba West unit for more than Rs 4,200 crore.
 Jindal Steel and Power Ltd has shelved a $10 billion coal-to-diesel project, its
chairman told Reuters, becoming the first big casualty of a Supreme Court decision
to scrap coalfields allocated to private firms since 1993.
 Dr Reddy's Laboratories has launched Docetaxel injection USP 20 mg/mL and 80
mg/4 mL, a generic version of Taxotere (docetaxel injection) in the US market.
 VA Tech WABAG has bagged an order from Maynilad Water Services, Philippines
for construction of 20 MLD Sewage Treatment Plant (STP) at Tunasan.
 Tamil Nadu Newsprint and Papers, the Tamil Nadu government-owned company,
has launched a a new variety of paper under the brand name 'GreenPal'.
 Multi Commodities Exchange, India’s largest commodities exchange by volumes,
has invited fresh applications for the post of Managing Director, which has been
lying vacant since Manoj Vaish left the organisation in May.
Bulk Deals
Scrip Name Quantity (in lakhs) Fund Name Price
SIMPLEXINF +4.23 RELIANCE TAX SAVER ELSS FUND 351.57
TVTODAY -15.05 RELIANCE CAPITAL LTD 196.07
Key Corporate Action
BC/RD
SCRIP NAME BC/RD
FROM EX-DATE PURPOSE
INGERSOL RND RD 26-11-2014 25-11-2014 30% Interim Dividend
MAX INDIA RD 26-11-2014 25-11-2014 200% Interim Dividend
SURANASOL RD 26-11-2014 25-11-2014 Stock split from Rs.10 to Rs.5
SURANATP RD 26-11-2014 25-11-2014 Stock split from Rs.5 to Rs.1
SURYA PHARMA BC 27-11-2014 25-11-2014 AGM
TAKE SOLUT RD 26-11-2014 25-11-2014 30% Interim Dividend

4. Retail Research
4
Stock Ideas Nov 25, 2014
Update of Index Futures
Date B/S Positional Call Entry at Sloss Targets
Exit
Price /
CMP Exit Date
%
G/L Comments
Time
Horizon
Avg.
Entry
Abs.
Gain/Loss
24-Nov-14 B Nifty Nov Fut 8527.15-
8517
8490 8600 8538 0.1 Hold 3 Days 8527.15 10.9
21-Nov-14 S Nifty Nov Fut 8478-
8488
8510 8425 8492.5 21-Nov-14 -0.1 Premature Exit 3-5 Days 8483 -9.5
20-Nov-14 S Nifty Nov Fut 8409.95-
8425
8450 8335 8391.05 20-Nov-14 0.2 Premature Profit Booked 3-5 Days 8409.95 18.9
Update of Stock and Nifty Options Calls:
Date B/S Positional Call Entry at Sloss Targets
Exit
Price /
CMP Exit Date % G/L Comments
Time
Horizon
Avg.
Entry
Abs.
Gain/Loss
24-Nov-14 B Jindal Steel 150 Call 2.8 1.45 5 3.85 24-Nov-14 37.5 Premature Profit Booked 2-3 days 2.8 1.1
24-Nov-14 B TCS 2650 Call 21.00 14.0 40.0 25.80 24-Nov-14 22.9 Premature Profit Booked 1-5 Days 21.00 4.8
24-Nov-14 B Infy Dec 4200 Calls 145 101 235 158.4 9.2 hold 1-5 days 145 13.4
24-Nov-14 B M&M 1250 Call 14.80 9.0 26.0 14.00 -5.4 Hold 1-5 Days 14.80 -0.8
21-Nov-14 B Adani Ent 500 Call 4.7 2.75 10 2.75 24-Nov-14 -41.5 Stop Loss Triggered 2-3 days 4.7 -2.0
21-Nov-14 B Petronet 195 Call 1.75 0.85 4 2.4 24-Nov-14 37.1 Premature Profit Booked 2-3 days 1.75 0.7
21-Nov-14 B Union Bank 220 Call 2.95 1.75 5.5 3.95 21-Nov-14 33.9 Premature Profit Booked 2-3 days 2.95 1.0
21-Nov-14 B TCS 2650 Call 23.50 16.0 47.0 21.00 21-Nov-14 -10.6 Premature Exit 1-5 Days 23.50 -2.5
20-Nov-14 B Nifty 8500 Nov Calls 16.00 10.0 30.0 30.0 21-Nov-14 87.5 Target achieved 1-5 days 16.00 14.0
20-Nov-14 B Tata Motors 540 Call 6.2 3.75 10 8.2 21-Nov-14 32.3 Premature Profit Booked 2-3 days 6.2 2.0
20-Nov-14 B KTK Bank 135 Put Nov 2.30 1.6 3.8 2.8 20-Nov-14 21.7 Premature Profit Booked 3-5 Days 2.30 0.5
20-Nov-14 B Tata Power 87.50 Put 1.20 0.8 3.0 1.45 20-Nov-14 20.8 Premature Profit Booked 1-5 Days 1.20 0.3
19-Nov-14 B Rel.Capital 500 Put Nov 8.25 5.3 15.0 10.5 20-Nov-14 27.3 Premature Profit Booked 3-5 Days 8.25 2.3
Update of Momentum / Intra Day/Futures Calls:
Date B/S Positional Call Entry at Sloss Targets
Exit
Price /
CMP Exit Date
%
G/L Comments
Time
Horizon
Avg.
Entry
Abs.
Gain/Loss
24-Nov-14 B Sharda Crop Chem 275.10 268.00 292.00 277.80 24-Nov-14 1.0 Premature Profit Booked 2-3 days 275.10 2.7
24-Nov-14 B Atlas Cycles 276.00 268.00 290.00 284.10 24-Nov-14 2.9 Premature Profit Booked 2-3 days 276.00 8.1
24-Nov-14 B PERSISTENT 1315.95 1275.0 1395.0 1360.0 24-Nov-14 3.3 Premature Profit Booked 3-5 Days 1315.95 44.0
24-Nov-14 B Apollo tyre 225-228.35 222.00 245.00 226.50 -0.8 Hold 1-5 days 228.35 -1.85
24-Nov-14 B Ess Dee 385.85 374.00 420.00 380.95 -1.3 Hold 2-3 days 385.85 -4.9
24-Nov-14 B Ceat Ltd 921 895.0 985.0 918.7 -0.3 Hold 3-5 Days 921.00 -2.4
24-Nov-14 B BANCOINDIA 182-180.50 176.5 195.0 179.7 -0.9 Hold 3-5 Days 181.25 -1.6
24-Nov-14 B TV 18 Brdcst 30.65 29.4 33.0 30.5 -0.7 Hold 3 - 7 Days 30.65 -0.2
21-Nov-14 B Anantraj Ind 55.95 53.85 60.00 53.85 24-Nov-14 -3.8 Stop loss Triggered 2-3 days 55.95 -2.1
21-Nov-14 B PIDILITIND 434.05 419.0 465.0 451.2 24-Nov-14 3.9 Premature Profit Booked 3-5 Days 434.05 17.1
21-Nov-14 B Rajesh Export 156.00 149.85 172.50 167.85 21-Nov-14 7.6 Premature Profit Booked 2-3 days 156.00 11.85
21-Nov-14 B Banco India 177.55 171.00 190.00 182.75 21-Nov-14 2.9 Premature Profit Booked 2-3 days 177.55 5.2
21-Nov-14 B Advanta 370.9 359.0 390.0 382.4 21-Nov-14 3.1 Premature Profit Booked 3-5 Days 370.90 11.5
21-Nov-14 B MCX 886.8 855.0 950.0 920.1 21-Nov-14 3.7 Premature Profit Booked 3-5 Days 886.80 33.3
21-Nov-14 B EVEREADY 165 159.5 175.0 174.2 21-Nov-14 5.5 Premature Profit Booked 3-5 Days 165.00 9.2
21-Nov-14 B TV 18 Brdcst 30.05 29.0 33.0 31.9 21-Nov-14 6.0 Premature Profit Booked 3 - 7 Days 30.05 1.8
21-Nov-14 B M&M 1235-1245 1,220.0
0
1,300.0
0
1,250.6
5
0.5 Hold 1-5 days 1,245.0
0
5.65
21-Nov-14 B Harrison Malayalam 61.00 58.9 66.0 60.9 -0.2 Hold 3 - 7 Days 61.00 -0.1
20-Nov-14 S Tata Steel Fut. 466.00 480.0 438.0 478.5 24-Nov-14 -2.6 Premature Exit 3 - 7 Days 466.00 -12.5
20-Nov-14 S ALBK Nov Fut 118.20-119 122.0 110.0 119.9 21-Nov-14 -1.1 Premature Exit 3-5 Days 118.60 -1.3
20-Nov-14 B Tata Sponge 722-705 680.0 780.0 698.8 21-Nov-14 -2.1 Premature Exit 3 - 7 Days 713.50 -14.8
20-Nov-14 S BHEL Fut. 246.00 255.0 232.0 241.6 20-Nov-14 1.8 Premature Profit Booked 3 - 7 Days 246.00 4.4
20-Nov-14 B Divi's Lab 1730-1738 1705.0 1850.0 1727.9 -0.6 Hold 1-5 days 1738.00 -10.1
19-Nov-14 B Wockhardt Pharma 832.00 806.00 865.00 848.75 24-Nov-14 2.0 Premature Profit Booked 3 - 7 Days 832 16.8
19-Nov-14 B JAYSREETEA 96.75 93.5 104.0 93.5 20-Nov-14 -3.4 Stoploss Trig. 3-5 Days 96.75 -3.3
19-Nov-14 B RSSOFTWARE 617-611 599.0 655.0 615.5 20-Nov-14 0.2 Premature Exit 3-5 Days 614.00 1.5
19-Nov-14 B Kajariya Ceramic 611.15 597.00 649.00 600.25 -1.8 Hold 2-3 days 611.15 -10.9
14-Nov-14 B Bajaj Auto 2630-2658.35 2,580.0
0
2,820.0
0
2,673.0
0
21-Nov-14 0.6 Premature Profit Booked 1-5 days 2658.35 14.7
13-Nov-14 B HCL Tech 1600-1636 1582.0 1750.0 1650.0 20-Nov-14 2.0 Premature Profit Booked 1-5 days 1618.00 32.0
Update of Positional Calls:
Date B/S Positional Call Entry at Sloss Targets
Exit
Price /
CMP Exit Date
%
G/L Comments
Time
Horizon
Avg.
Entry
Abs.
Gain/Loss
24-Nov-14 B Williamson Magor 67-61 61.0 79.0 71.5 24-Nov-14 6.6 Premature Profit Booked 3-14 days 67.00 4.5
21-Nov-14 B Granules 787-778 752.0 850.0 779.0 -0.4 Hold 5 Days 782.50 -3.5
20-Nov-14 B Axis Cades 161, 168.05 158.0 193.0 174.2 24-Nov-14 5.9 Premature Profit Booked 5-7 days 164.50 9.7

5. Retail Research
5
19-Nov-14 B GE Shipping 405-412.3 396.0 460.0 396.0 21-Nov-14 -3.1 Stop loss Triggered 5-10 days 408.65 -12.7
19-Nov-14 B Ahluwaliya Contra 155, 163.65 151.0 183.0 171.4 20-Nov-14 4.7 Premature Profit Booked 5-7 days 163.65 7.7
13-Nov-14 S DLF Nov Fut. 138.1-143 149.0 115.0 146.4 -4.0 Hold 3-14 days 140.55 -5.8
10-Nov-14 B Zuari Global 98, 103 94.9 114.0 106.0 24-Nov-14 5.5 Premature Profit Booked 5-7 days 100.50 5.5
24-Nov-14 B Williamson Magor 67-61 61.0 79.0 71.5 24-Nov-14 6.6 Premature Profit Booked 3-14 days 67.00 4.5
21-Nov-14 B Granules 787-778 752.0 850.0 779.0 -0.4 Hold 5 Days 782.50 -3.5
20-Nov-14 B Axis Cades 161, 168.05 158.0 193.0 174.2 24-Nov-14 5.9 Premature Profit Booked 5-7 days 164.50 9.7
19-Nov-14 B GE Shipping 405-412.3 396.0 460.0 396.0 21-Nov-14 -3.1 Stop loss Triggered 5-10 days 408.65 -12.7
19-Nov-14 B Ahluwaliya Contra 155, 163.65 151.0 183.0 171.4 20-Nov-14 4.7 Premature Profit Booked 5-7 days 163.65 7.7
13-Nov-14 S DLF Nov Fut. 138.1-143 149.0 115.0 146.4 -4.0 Hold 3-14 days 140.55 -5.8
10-Nov-14 B Zuari Global 98, 103 94.9 114.0 106.0 24-Nov-14 5.5 Premature Profit Booked 5-7 days 100.50 5.5
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This report has been prepared by the Retail Research team of HDFC Securities Ltd. The views, opinions, estimates, ratings, target price, entry
prices and/or other parameters mentioned in this document may or may not match or may be contrary with those of the other Research teams
(Institutional, PCG) of HDFC Securities Ltd.