The document outlines a market analysis conducted by the 'wanna be vc' team, highlighting positive market sentiment and significant trends in the BSE Sensex and Nifty 50 as of late July 2017. It includes a granular selection of stocks with both successful investments, like Voltas and Maruti Suzuki, and underperforming ones such as SBI, and discusses the future outlook as potentially bearish if key support levels are breached. The analysis also mentions industry preferences and aversions, addressing factors impacting various sectors including telecom, FMCG, and real estate.

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FinXchange - Final Round
Team Name: Wanna Be VC
Participants: Vishal Kumar (Ph. +91-7894511169)
Mohit Shelke (Ph. +91-9920770822)
Symbiosis Institute of Telecom Management (SITM),
Pune

2. Content
• Market Condition before 27th July
• Market Expectation / Sentiment in next week (27th July to 4th Aug)
• Industries not Preferred by us and rationale
• Industries Preferred by us and rationale
• Granular Stock Selection & Strategy
• Current Portfolio Status
• Future Outlook
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3. Market Condition – BSE Sensex
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 Sentiment was positive from the
market.
 BSE Sensex was on the bullish side
with the Sensex touching critical
32000 critical point since July 21st.
 It was maximum with 32575 mark on
1st August 2017

4. Market Condition – Nifty 50
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 Nifty 50 Trend was rising – Day
on day.
 For the first time, Nifty
touched 10,000 mark on July
26th.
 Market condition was favorable
to get into the market with less
chance of correction.
 Why Bullish?

5. Our Analysis on Overall Market
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 We were expecting the market
to maintain bullish trend for 4-
5 trading period.
 We were expecting the
correction to come, but not
this early.
 Unfortunately, on global cues –
(US – North Korea heated
conversation), market couldn’t
support the critical level of
10,000 mark for longer trading
periods.

6. Layoffs, restructuring, automation issue, International
headwinds, high prices-low % gains
New telecom policy - ambiguity, incumbent players
Opposing Consultation Paper by TRAI, TRAI consumer
focus plan of action, Disrupting Competition, M&A
Very rarely give high return in short period, already
high CMP due to GST, high valued, ITC (cigarette) GST
issue and restructuring of business
Not in good shape due to demonetization. Although,
GST and RERA will help industry in long run and is
good from buyer point of view, profit booking in
short run cannot be expected
IT
Telecom
FMCG
Real
Estate
01
02
03
04
Sectors Avoided
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8. Automotive
Consumer Durables
Pharmaceuticals
HealthcareBanking
Leather Products
Sectors Selected

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10. Granular Stock Selection
Voltas
• Q1 results were expected to be favorable for the company and its Net
Profit grew by 18%, which resulted in the stock price appreciation.
• Our Rationale – Summer Season for AC (Peak time for Cooling
equipment)
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11. Maruti Suzuki
• It was expected that Maruti Suzuki will have higher profit than the
4.4% for Q1-2017, which can be attributed to the sale of premium
models
• Our rationale: Positive effect of GST (<1500 cc variants) + Volume
growth because of BS IV sales
• Rate: 28% GST
Cess: 1% for < 1200cc, 3% <1500 cc and 15% > 1500cc
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Granular Stock Selection

12. BATA
• BATA Q1 result was expected to be good because of sales volume
growth.
• Rapid expansion plans announced by BATA (300 stores in next 5
years). Due to which, there was a positive sentiment for the stock.
• The share hit a 52-week high with 19.6% rise in net profit QoQ.`
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Granular Stock Selection

13. Stocks which didn’t went as planned
SBI
• We bought thinking about the rate cut of 25 basis point would be
good and Industry will cheer with Repo Rate of 6%
• But, market expectations were for 50 bps rate cut, due to which the
stock performed poorly.
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14. Shorting of M&M
• Stock: Mahindra & Mahindra
• Rationale:
News of GST panel increasing the Cess of cars with 1500 CC and more
from 15% to 25%, thus we expected the stock price to fall. Thus, we
did shorting.
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15. Portfolio Status
• From 28th July to 4th Aug:
Net Worth: Rs. 10,28,623 /-
• From 8th Aug to 10th Aug:
Net Worth: Rs. 10,01,254 /-
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16. Future Outlook
• Bearish candle.
• Yesterday, it was Bearish day for the fourth consecutive day and
Nifty50 is likely to test its crucial support placed at 50-DEMA in
coming days.
• If it breaches, further downside may happen.
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