news letter 31-10-2014

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Cni Research Limited www.cniglobalbiz.com 1

CNI Publications; Weekly Plattern

Weekly summary

We entered in the new year as per HINUD calendarand this will leave the bitter test behind us. E Treported entry of retail investors at top again which isseen now. So long as retail buy FII owned stocks theywill be treated like this.

We therefore always suggest to buy a value stockwhich is going cheap on current value where earninggrowth is visible. Else try to catch IPR companieswhere something unique is there for trigger.

We began the week with roll over concerns hence wewill have to tolerate some volatility. Though I believethat market is short the situation can change in justhalf an hour and trend will be decided only on thepositions of calls and puts in next 3 days. Ouroperators are capable to manipulate anything andeverything as they have been given free hand oncash settlement.

In such situation we will never suggest to add morepositions. If you are in F O you must roll over. If theprice is falling due to some reason you must addmore with conviction. Every stock which we have

been recommending will bounce back as our calls arenot based on technical but on fundamentals whichcannot be suppressed for a long.

Next 3 days we will suggest add value stocks as webelieve Nifty will cross 8300 in Nov and will try to test8500.

HDFC Bank INDUS Ind bank will still remain in actionas rate cut is now in sight. Hon'ble F M has hinted onrate cut which means Govt is now pro growth.

ROLLS is always boring. Crompton now becamebest buy as it has corrected only for rolls from 210 to177. It will go back to 210 before it has to reach itsdestination of 250.

Nifty is back above 8000. The situation for rollssuggest range of 7900 and 8100. Big move will beseen only after expiry.

Change of the week

31-Oct-14 Rise /Gain

Sensex 26567

Nifty 8322

FII DII

27-Oct-14 64.9 9.5

28-Oct-14 (71.1) (99.6)

29-Oct-14 755.0 (507.2)

30-Oct-14 1450.3 (94.0)

31-Oct-14 1754.7 (276.4)

Total 3953.8 (967.7)

Turnover (`Cr)

FII DII Combined

31-Oct-14 44,616.9 17,544.7 62,162

31-Oct-14 Advances Declines Ratio

963 503 1.91

Editorial Vol -1, No-I, 31 Oct, 2014, 09 pages

1014

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Govt has removed restrictions from OIL and GAS andallowed foreign players. This will improve the visibilityif ABAN as well as GLOBAL. The later is due forresults and since there is no addition of vessel PAThas to be close to Q1 or slightly better than Q1. 2 newadditions will add handsome chunk to PAT but theimpact will come in FY 15 16.

We suggest add more and more stock as per your

convenience as we upgrade our Nifty target from8500 to 9900 before June next year. We believe nextBudget will be super dooper and will be for full 12months. Lot of reforms will be seen. The oil and goldimports will crash. Fiscal deficit will be less. CAD willimprove and FII flow will rise. The target of NAMO is1 trillion usd in next 5 years.

SUUTI will be the big trigger for NAMO GOVT as theyare reconciled to break the lobby and go ahead withstake sell in SUUTI stocks to raise 10 bn usd in nextfew months. Apart from ONGC and OIL

disinvestment which will give another 5 bn usd. Thusthe 58000 crs target will be crossed. Revenue targetsare upwards and hence seen no problem there.

The loss of Brazil will be huge plus for India as themoney withdrawn from BRAZIL will come in INDIA.

We expect all B gr stocks to double in next 12 months

No one in the world is perfect. When Dow fell 5%even one said 10% more correction is in offing. Everyone sold here in fear. CNI was very sure that this will

not last and see Dow is back to 17000 plus. So alsoNifty from 7750 to close to 8100.

Same thing is true with OIL. When global researchguys told you that OIL will fall to 60 USD we felt that itis bottomed. Now OIL is heading back to 90 95 veryfast.

This what is important for you to rely on fair researchguy who gives you clear and fair view instead ofmotivated and vested view.

We have seen whenever a Firung has given directionon market oil nifty dow the reverse has happenedmost of time because they vitiate you guys and selfbecome buyers. It's like bigger fish eating small fishand other creatures like you getting crushed.

My view Nifty 8300 and 8500 is very much sure. Noone can change it. I bet on NAMO RBI and our

economy. See the revenue collection post NAMOtaking over......

5 Top Gainer

Stock 31-Oct-14 27-Oct-14 % G

KAILASH AUTO 28.05 19.70 4

NCC 59.6 44.6 3

SRF LIMITED 854.3 677.5 2

GVK POWER INF 11.7 10 1

UNITECH LTD 20.4 17.7 1

5 Top Losers

Stock 31-Oct-14 27-Oct-14 %

JUBILANT 144.8 159.3

DEN NETWORK 165.3 180.9

RAYMOND 464.1 507.1

JUST DIAL 1495.7 1621.9

BIOCON LTD 448 480.4

Top 5 Picks By CNI 'A' Group

Company

RIL

SBI

BAJAJ AUTO

TATA STEEL

RCOM

Top 5 Picks By CNI 'B' Group

Company

BALASORE ALLOYS

KINETIC ENG

GLOBAL OFF

INTEGRA ENG

IMFA

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April-Sep'14

Direct Tax collection up by 15%Corporate Tax collection up by 15.31%Personal Income tax including STT & Wealth Tax up by 14.37%STT collection Rs 3223 cr up by 45.83%Collections byCustoms 89000 crExcise 75000 cr

Service Tax 77000 cr

Balance sheet will be rosy in the next budget.

Plus disinvestment is on target. 59000 crs will be raised easily. What more you want. We can expect nextBUDGET a BIG BANG which will kick the economy further. Plus I feel we will see 50 bsp rate cut on 2nd Dec2014. This is simply because to kick start a bigger cut followed by another 2 25 bsp rate cuts required whichwill take Nifty past 9000.

Many traders were confused on the S C direction on black money. They felt market will collapse. Believe meeven if some names comes out which are from market only those stocks will get affected. In general this isvery positive move and FII welcome this. Simply this is happening which did not happen in last 50 years. FII

love transparency and they will rate India one notch up on Governance. This is in addition to some big check into exchequers by way of taxes and penalties from I T department.

In all I believe India is heading for smooth transmission. The best time of INDIA is yet to come. We have 160 crpeople to buy anything and everything leaving no choice to all MNC to enter INDIA. So also FII.

Satyamev Jayate.....

All proved wrong in DOW as well as Nifty call except CNI team hence I must pat them.

We had shown full faith in Century Tisco and RIL and all these stocks are doing well.

Expiry wherever happens I am sure now in the shortened week where retail will shy to build positions FII wilscrew short sellers by taking Nifty to new high. I see 8300 next week. Once we see new high short coveringwill take us past 8500.

Wait and remain long. Frontline hits upper cct with huge volumes after co announced board meeting forconsidering preferential issue which may be in my opinion to raise funds to acquire international lingeriesbrands. This is a big business and one should bet on this. Only 3 or 4 companies in India and they trade at PEmultiple of 50 to 120 hence this stock could be jackpot. When everything there you cannot expect to enter at18 so risk has to be taken.

Market today touched all time highs. Cheers for the street. Now wait for 8888 on the nifty.

We will see strong retail participation in market from Monday. Since Index is becoming costly, small andmidcap stock has comparatively become cheaper. So rally expected in the same.

Ril is heading for 1200 in December 2014.

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Next Weeks Events GLOBAL STORY

Needless to pat the success rate of CNI against alodds. There were some foreign brokerage housessaying that Nifty will correct till 7400 and Dow wilcorrect by 10% whereas CNI maintained all alongthat Nifty will cross 8500 and Dow will bounce backsharply. We were negative in Gold from 30000levels and still not prepared to see going long stateWe will see sub 24000 levels. OIL many predictedwill test 75 , 70 we believe it will bounce to 95. Westill hold our long term (3 years) target of OIL at 170USD hence you need to understand that this isagain a correction and not bear phase. The fall indemand is temporary. The difference betweencrude and Brent has come down to 4 USD asagainst a peak difference of 24 USD. This is nobecause of lower demand but break in speculation.

Anyways what af ter 8500...?

Is the life ending here. No. Nifty will move 8888which was told to you 2 months back. After 8888we may see some correction till 8300 8350 but areversal from that point will take us back to 9292before March 2015. This rally will be much fastethan all previous rallies.

The reasons for the rally are...

Japanese Stimulus

Recovery in Indian economy

Rate cut to spur growth and credit off take

Full fledged reforms

Budget expectations

Weakness of Brazil

Expected flow of over 50 BN USD in next 12months

Capital market reforms

SUUTI restructuring

Disinvestment of PSU

Sharp recovery on global markets

Excess liquidity chasing lower supply of qualitypapers

Monday, 27-OCT-2014

Pending home sales indexDallas fed mfg survey

Tuesday,28-OCT-2014

Durable goods orderConsumer confidence

Wednesday,29-Oct-2014

EIA Petroleum Status reportFOMC Meeting announcement

Thursday,30-Oct-2014

Jobless claimGDP

Friday, 31-Oct-2014

Personal income and outlaysEmployment cost index

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Where money lies...

The entry of big long only funds will definitely try and enter Sensex and Nifty stocks which have already run upover 100% from pre election levels to current levels. Many operators, hedge funds, and existing FII (havingknown Indian terrains well) will churn their holding to new incoming long only FII all Sensex and Nifty basedstocks. Eg the steep fall in yen is good for MARUTI. This will trigger major buying in MARUTI from long onlyfunds. Increase in FII limit comes handy here. Our local players will take this opportunity and exit maruti asthey had been buying since Rs 1100. This is the first level where CNI generate buy call in MARUTI. Manyinnocent investors too may buy share seeing YEN issue and entry of big names. But in our opinion you should

try to stay away from these stocks now.

The money which gets released will be used for second round B gr shares like KINETIC Engg and other Autoancillary where they will multiply money in no of times. So smart investors should also do the same thing. Enterstocks which are undervalued belong to strong promoters and enter with conviction and you will see hugereturns. e g we had recommended CCL at 40 now it Rs 126 and whole world is buying madly. Same thing istrue with CERA, Wimplast, Gayatri, Walchandnagar, Vatech, Ceat, VST Tillers, CESC, Global Offshore, AmarRaja Batteries, Exide, UPL, Eveready etc.

This clearly suggests the run on B grade will start now. We will not speak about stocks but suggest you toconcentrate on B grade stocks now which will give at least 500% returns in next 12 to 24 months. After Niftycrossed 8265 earlier high the doubt about Bull Run is getting clear at least in some circles. Nifty may take time

to cross 10000 after it crosses 9000 but the rally will give huge advantage to B gr.CNI being a major research player without any broking bias will delivery many more research ideas and hencesuggest members to become active and remained logged to CNI website.

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Global Indices

Country Indices Date Index Net Change Change

Hong Kong Hang Seng 31/10 23,998.06 +296.02 +1.25

Singapore Straits Times 31/10 3,274.25 +39.94 +1.23

South Korea Seoul Composite 31/10 4,630.74 +64.60 +1.41

United States NASDAQ 31/10 17,390.52 +195.10 +1.13

United States DJIA 31/10 2,018.05 +23.40 +1.17

United States S&P 500 31/10 16,413.76 +755.56 +4.83

Japan Nikkei 225 31/10 6,546.47 +82.92 +1.28

United Kingdom FTSE 100 31/10 1,855.15 +12.37 +0.67

Malaysia KLSE Composite 31/10 5,089.55 +30.70 +0.61

Indonesia Jakarta Composite 31/10 1,584.16 +18.81 +1.20

Thailand SET 31/10 4,233.09 +91.85 +2.22

France CAC 40 31/10 9,326.87 +212.03 +2.33

Germany DAX 31/10 11,019.43 +479.99 +4.55

Argentina MerVal 31/10 54,628.60 +2,291.77 +4.38

Brazil Bovespa 31/10 45,027.52 +428.25 +0.96

Mexico IPC 31/10 2,214.70 +22.41 +1.02

Austria ATX 31/10 3,157.15 +36.44 +1.17

Belgium BEL-20 31/10 411.32 +7.61 +1.89

Netherlands AEX General 31/10 1,062.15 +22.43 +2.16

Spain Madrid General 31/10 8,837.78 +118.75 +1.36

Switzerland Swiss Market 31/10 5,505.02 +47.94 +0.88

Australia All Ordinaries 31/10 2,420.18 +29.10 +1.22

China Shanghai Composite 31/10 7,215.73 +44.74 +0.62

Philippines PSE Composite 31/10 7,326.81 +32.40 +0.44

Sri Lanka All Share 31/10 8,974.76 +86.69 +0.98

Taiwan Taiwan Weighted 31/10 1,276.87 -8.00 -0.62

East Egypt CMA 31/10 1,964.43 +5.50 +0.28

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Bulk deal

Company Name Date BSE Code Client Name Deal Type Quantity Price (Rs

ACTIONFI 31-Oct-14 511706 Kedia Consul tants Pv S 90724

ACTIONFI 31-Oct-14 511706 JAYESHA VIKAS PATWA B 90724

ASAHINFRA 31-Oct-14 512535 KIRAN SHAMJI SINDHAL B 474805 1

ASYAINFO 31-Oct-14 511144 NEEPASHARVILPATHAK S 18000

ASYAINFO 31-Oct-14 511144 MUKESHBHAI PRAGAJIBH B 18000

ATISHAY 31-Oct-14 538713 MEENAKSHI LODHA S 64000 2

ATISHAY 31-Oct-14 538713 HEM CHAND JAIN B 104000 2

BERLDRG 31-Oct-14 524606 SAURABH RASIKLAL GAN B 31672 30

CATECH 31-Oct-14 531682 SHREE GANESH TRADERS B 453245 5

CURATECH 31-Oct-14 532332 SANTOSH INDUSTRIES L S 111950 14

Sharon Bio-Medi Ltd 31-Oct-14 SHARONBIO SHREE SUPRINIT TRADI S 868876 65

Texmo Pipe & Products Lt 31-Oct-14 TEXMOPIPES GANDHI RITABEN NAREN B 161484 17

Texmo Pipe & Products Lt 31-Oct-14 TEXMOPIPES GANDHI RITABEN NAREN S 161484 17

VKS Projects Limited 31-Oct-14 VKSPL GREEN VENTURE SECURI B 699945 0

VKS Projects Limited 31-Oct-14 VKSPL GREEN VENTURE SECURI S 15265071 0

Astec LifeSciences Ltd 30-Oct-14 ASTEC CROSSEAS CAPITAL SER S 195646 100

Astec LifeSciences Ltd 30-Oct-14 ASTEC GAJANAN ENTERPRISES S 160519 102

Astec LifeSciences Ltd 30-Oct-14 ASTEC GKN SECURITIES S 120367 101

Insecticides (India) Lim 30-Oct-14 INSECTICID N.K. SECURITIES B 91080 857

Insecticides (India) Lim 30-Oct-14 INSECTICID N.K. SECURITIES S 91080 858

Intrasoft Tech. Ltd 30-Oct-14 ISFT SSL CONSOLIDATED LTD B 117

Intrasoft Tech. Ltd 30-Oct-14 ISFT SSL CONSOLIDATED LTD S 223392 52

Himatsingka Seide Ltd 29-Oct-14 HIMATSEIDE AMANSA HOLDING PRIVA S 6138495 93

Prithvi Information S 29-Oct-14 PRITHVI SURARCHITA TRADERS P B 100000

Prithvi Information S 29-Oct-14 PRITHVI PRADIP KUMAR SHAH S 100170

Vikas GlobalOne Ltd 29-Oct-14 VIKASGLOB ASHROJ CREDIT INDIA B 647552 17

Vikas GlobalOne Ltd 29-Oct-14 VIKASGLOB ASHROJ CREDIT INDIA S 27328 16

Vikas GlobalOne Ltd 29-Oct-14 VIKASGLOB ISHWAR CHAND MITTAL S 852043 17

VKS Projects Limited 29-Oct-14 VKSPL GREEN VENTURE SECURI B 12886977

Momai Apparels Ltd. 28-Oct-14 MOMAI PRERNA BHUPENDRA JUT B 110400 89

Momai Apparels Ltd. 28-Oct-14 MOMAI VIJAY AASUMAL KESHW S 94400 87

Panasonic Appl.Ind Co L 28-Oct-14 PANASONIC CHETNA JAIN B 205000 24

Panasonic Appl.Ind Co L 28-Oct-14 PANASONIC MARUTI TRADERS AND I B 300000 24

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Call put option

Option Month - PUT CALL

Strike Price Volume Best

Buy

Best

Sell

LTP OI Change

OI(%)

Volume Best

Buy

Best

Sell

LTP OI Cha

OI(November - 7600.00 1899825 5.85 6.1 6.1 1322050 -11.83 199625 750.7 753.95 754 272600 -

November - 7650.00 17425 6 7.2 7.25 106500 -2.38 0 412 887.7 500 0

November - 7700.00 3086650 7.9 8.15 8 2240450 0.12 200025 653.5 657.15 655 213275 -

November - 7750.00 15675 9 9.5 9.05 8075 -16.32 0 431 783.55 0 0

November - 7800.00 4677200 10.7 10.9 10.7 2273925 15.2 338475 558.2 560.1 558.2 419350 -

November - 7850.00 63200 12.85 13.5 13.4 77350 6.76 0 500.25 537.2 325 450

November - 7900.00 7072500 15 15.2 15.2 2509300 6.57 278400 464 465.15 465.55 758775 -

November - 7950.00 227250 18.1 19 18.95 117025 37.35 700 409.15 419.95 406.3 1250

November - 8000.00 12609575 22.5 22.9 22.9 5445925 35.39 1248375 370 371.3 373 1672225

November - 8050.00 489850 28 29.9 29.9 182300 61.26 17325 322.4 333 322 19500

November - 8100.00 11968250 34.5 34.7 34.7 3116150 45.49 2097075 284.5 285.6 285.2 1356075

November - 8150.00 672525 42.95 44 43 218900 113.67 160000 241.85 246 246.95 43675

November - 8200.00 14668775 54.05 54.8 54.8 3261625 81.04 7184875 202.95 206.2 202.4 2145500 -

November - 8250.00 823275 68.15 68.95 68.5 359125 42150 615300 169 170 170 64250

November - 8300.00 9268575 84 84.3 84 2068050 191.01 1.7E+07 137 139 138.05 3278275

November - 8350.00 81825 103.1 106.85 106.65 55200 110300 1123125 108 109.45 109.1 221050 1

November - 8400.00 1278000 126.2 126.65 126.1 632350 336.71 1.9E+07 82.05 82.9 81.8 3353225

November - 8450.00 50 145.1 206.95 162.8 50 0 829525 58 62.35 63.35 183425 1

November - 8500.00 940875 183.65 186 183 944850 81.93 1.6E+07 44.25 44.85 44.05 3400150

November - 8550.00 0 167.5 535.75 350 50 0 96625 31.2 32 31.25 35050

November - 8600.00 127725 259.55 264.05 259.4 72950 91.97 9181100 21.75 22 21.75 2332000 1

November - 8650.00 0 231.3 599 0 0 0 34800 14 15.5 15.5 11200

November - 8700.00 20725 346.05 359.5 345.05 19725 1778.6 3392175 9.5 9.65 9.65 898700 2

November - 8750.00 0 326.15 703.8 0 0 0 1500 5 7.4 7.4 1125

November - 8800.00 100 401 477.2 411.7 300 0 1607700 4.5 4.55 4.5 478500 2

November - 8850.00 0 425.05 803.8 918.45 15550 0 0 1.2 4 0 0

November - 8900.00 0 501 575.35 774.9 150 0 428300 2.4 2.55 2.4 120575 8

November - 8950.00 0 520.95 907.5 1014.55 1000 0 0 1.1 3 0 0

November - 9000.00 64825 633.6 637.25 635 444225 7.55 304025 1.2 1.45 1.45 222100

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DISCLAIMER STATEMENT

This document is provided for assistance only and is not intended to be and must not alone be taken as the basis for aninvestment decision. Nothing in this document should be construed as investment or financial advice, and nothing in thisdocument is solicitation to buy or sell the securities of companies referred to in this document. The intent of this documentis not in recommender nature. Each recipient of this document should make such investigations as it deems necessary toarrive at an independent evaluation of an investment in the securities of companies referred to in this document (includingthe merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment.The investment discussed or views expressed may not be suitable for all investors.The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and

should not be treated as endorsement of the views expressed in the report. This information is subject to change withoutany prior notice. The Company reserves the right to make modifications and alternations to this statement as may berequired from time to time without any prior approval.This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on,directly or indirectly, to any other person or published, copied, in whole or in part, for any purpose. The distribution of thisdocument in other jurisdictions may be restricted by law, and persons into whose possession this document comes shouldinform themselves about, and observe, any such restrictions. Neither the Firm nor its directors, employees, agents orrepresentatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lostrevenue or lost profits that may arise from or in connection with the use of the information.Copyright in thi s document vests exclusively with CNI Research Ltd.

Name of Editor: Minit jhaveri

Publisher:

Mr. Kishor Ostwal

120, Gokul Arcade,

Sahar Road, Vile Parle (East),

Mumbai-400057

Tel No: 022-28220323/28383889, Fax No: +91-22-28242220

E-Mail at: [email protected]

Printer: Owner: Place of Publication

KOKILA GRAPHICS CNI Research Ltd A-120, Gokul Arcade,

1stFloor, opp Garware House,

Printing Press Address: Sahar Road, Vile Parle (E)

Gala No-12, Gr. Floor, Mumbai- 400057Bliss Compound, Nivetia Road,Malad (East),

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news letter 31-10-2014

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