Finalaya daily market wrap 16 may 2014

'Acche Din' begin; Sensex salutes ‘Modi Sarkar’ with 25K cannon

1. 'Acche Din' begin; Sensex salutes ‘Modi Sarkar’ with 25K cannon
Market Snapshot | 16-05-2014 04:22 PM
On “The D-day” of the nation, D-Street rocked by zooming over 5% in the morning deals. Exuberant Investors kept
pouring money amidst the outcome of Lok Sabha elections persuading Sensex and Nifty to rise above the unthinkable
levels of 25000 and 7500.
The general election results evinced that business friendly, Narendra Modi led National Democratic Alliance (NDA) is
all set to form the new government at center with the landslide victory. The numbers are unimaginable in favor of NDA
to such an extent that even Bhartiya Janata Party (BJP) alone can run the show with stability. At the time of writing
this report, NDA has won or ahead on about 340 seats whereas ruling UPA is almost routed with a paltry of about 60
seats.
After touching life highs of 25375.63 and 7563, the buoyant benchmarks took a U-turn on profit bookings. Choppy
Sensex and Nifty fluctuated 1470 and 432.8 points during the day. Both frontline gauges ended with decent gains of
around 1%. Among BSE sectorials, Rate sensitives’ went berserk on Modi win. Realty index topped the charts by
rallying 6% with Indiabulls Real-estate as the top gainer. Banks also were on a roll with Bankex soaring 4.4% led by
Canara Bank.
On global front, US markets slumped amid declining growth in the euro zone and mixed domestic economic data.
Tracking the pessimism, Asian and European markets too traded lower.
Back home, on currency front, Rupee rolled to 58/Dollar levels cheering the Modi win. In futures trades, INR hit an
intra-day high of 58.75/USD and an intra-day low of 59.24/USD. In spot trades, INR hit an intra-day high of 58.62/USD
and an intra-day low of 59.09/USD. As per RBI reference rates, INR stood at 58.86/USD.
On stock specific front, Tata Steel crashed 4.4% in the otherwise jubilant market after Supreme Court imposed a
limited mining ban on Odisha that produces over 50% of the country's iron ore and manganese.
Key Quarterly Results
Karnataka Bank jumped 6% on BSE after its Q4 Net spiked 20.51% to Rs 81.21 crore as compared to Rs 67.39 crore
for the same quarter in the previous year.
PSU major, NTPC recorded fall of 29.4% in Q4 net at Rs 3093.54 crore as compared to Rs 4381.61 crore for the same
quarter in the previous year. The stock gained 2% on BSE.
Pharma major, Cadila Healthcare slumped 3% on BSE after its consolidated net profit declined 8.74% to Rs 239.19
crore on 22.39% growth in net sales to Rs 1916.33 crore in Q4 March 2014 over Q4 March 2013.
The market breadth on the BSE closed in positive. Advancing and declining stocks were 1473 and 1428 respectively,
while 177 scrips remained unmoved.
The S&P BSE Sensex ended at 24121.74, up 216.14 points or 0.90%. The 30 share index touched a high and a low
of 25375.63 and 23873.16 respectively. 18 stocks advanced against 12 declining ones on the benchmark index.
The CNX Nifty gained 79.85 points or 1.12% to settle at 7203.00. The index touched high and low of 7563.50 and
7130.65 respectively. 36 stocks advanced against 14 declining ones on the index.
S&P BSE Sensex CNX Nifty
The S&P BSE Mid-cap index moved up to 7765.72 and gained 1.64% while S&P BSE Small-cap index jumped up by
1.21% to 7885.76.
The broader S&P BSE 500 index increased to 8970.17 (up 1.35%) and CNX 500 index rose to 5656.00 (up 1.36%).
The volatility as denoted by INDIA VIX lost 33.94% at 24.29 from its previous close of 36.77 on Thursday.
Sectors in action
On the BSE Sectorial front, Real Estate (up 5.97%), Banks (up 4.39%) and Power (up 3.33%) were the top gainers.
Information Technology (down 2.22%), FMCG (down 1.85%) and Healthcare (down 1.39%) were the top losers.

2. The Angels and the Devils
Sesa Sterlite Ltd (up 11.11%), State Bank of India (up 5.93%), Axis Bank (up 5.60%), Bharat Heavy Electricals Ltd (up
5.25%) and ICICI Bank (up 5.15%) were the top gainers on the Sensex.
Tata Steel Ltd (down 4.40%), Dr. Reddys Laboratories Ltd (down 2.95%), Infosys Ltd (down 2.83%), ITC Ltd (down
2.81%) and Wipro Ltd (down 2.61%) were the top losers on the Sensex.
Benchmark Drivers
ICICI Bank (96.05 points), ITC Ltd (-66.84 points), Reliance Industries Ltd (56.29 points), State Bank of India (52.69
points) and Infosys Ltd (-52.40 points) were the major Sensex drivers today.
On the other end ICICI Bank (24.32 points), ITC Ltd (-18.71 points), State Bank of India (13.90 points), Infosys Ltd (-
13.90 points) and Reliance Industries Ltd (13.78 points) were the major Nifty movers today.
Pivot, Supports and Resistance Levels
CNX Nifty is now pivoted at 7299 for next session. The next support is at 7035 and on upside it has a resistance at
7467 levels.
CNX Nifty
CNX Nifty
Eff. Date
Eff. Date
S 3
S 3
S 2
S 2
S 1
S 1
PIVOT
PIVOT
R 1
R 1
R 2
R 2
R 3
R 3
Actual Close
Actual Close
19-May-2014 6602 6866 7035 7299 7467 7732 7900 -
16-May-2014 7016 7049 7086 7119 7156 7189 7226 7203.00
15-May-2014 7018 7049 7079 7111 7140 7172 7202 7123.15
S&P BSE Sensex has a pivot at 24457 with first level of support and resistance at 23538 and 25041 respectively.
S&P BSE Sensex
S&P BSE Sensex
Eff. Date
Eff. Date
S 3
S 3
S 2
S 2
S 1
S 1
PIVOT
PIVOT
R 1
R 1
R 2
R 2
R 3
R 3
Actual Close
Actual Close
19-May-2014 22036 22954 23538 24457 25041 25959 26543 -
16-May-2014 23546 23644 23775 23873 24004 24102 24233 24121.74
15-May-2014 23513 23633 23724 23844 23935 24056 24147 23905.60
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