2017

Daily Equity Report

6TH JUNE, 2017

Prepared By: Highlight Investment Research

Email: info@highlightinvestment.com

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NIFTY 9637.20(-37.95) -0.39%

NSE Nifty hit its record high of 9709 in opening trade and closed at 9637 levels, lower
by 37 points or 0.3%, whereas the BSE Sensex closed at 31190 levels, higher by 118
points or 0.3%.While, BSE Mid-cap Index closed down 0.6% at 14732 whereas, BSE
Small-cap Index closed down by 0.6% at 15310. There were 527 advances, 1107
declines and 320 unchanged stocks on NSE, reflecting fairly bearish undertone
floating in the market.TCS was the top Nifty gainer whereas, Tata Motors was the top
Nifty loser. IT stocks were on a roll on Dalal Street, mainly led by gains of
heavyweights like TCS, Infosys and HCL Tech. These stocks jointly contributed to the
BSE IT gains and pushed it up by 2.6%.

Nifty Daily Chart

Symbol SUP.3 SUP.2 SUP.1 PIVOT RES.1 RES.2 RES.3 52W 52W
HIGH LOW

NIFTY 9619 9640 9648 9668 9703 9710 9731 9704 7678.35
BANK NIFTY:- 23416.30 (-43.35) -0.18%

Bank Nifty was trading weak ahead of Reserve Bank of Indias monetary policy meet
scheduled on June 6 and June 7, 2017. It was trading lower by 0.15% at 23423.45
level as of 1520 hours on Tuesday. On the derivatives front, Bank Nifty 15-June 24000
CE and 22800 PE witnessed maximum addition in their open interest. Nifty PSU Bank
index was trading down by around 0.76% at 3503.9 level. Public sector bank stocks
like Punjab National Bank, Bank of India, Bank of Baroda, Orient Bank, Union Bank
and IDBI Bank were trading in negative territory in the closing hour on Tuesday.
Nifty Private Bank index was also trading lower by 0.17% at 13038 level. South
Indian Bank, Federal Bank, Yes Bank and Kotak Bank were also trading in the red
zone on Tuesday.

Bank Nifty Daily Chart

Symbol SUP.3 SUP.2 SUP.1 PIVOT RES.1 RES.2 RES.3 52W 52W
HIGH LOW
BANK 23291 23357 23381 23435 23539 23563 23629 23778.50 16186.
NIFTY 25
 MARKET STATISTICS:-

TOP GAINERS:-

Company Name High Low Prev Close % GAIN

TCS 2708.95 2630 2696 3.88%

HCLTECH 909.60 866.10 889.45 3.37%
INFY 987.50 964.40 979.35 2.22%
TECHM 414.85 399.55 402.75 1.42%
WIPRO 568 551.55 555.55 0.80%

TOP LOSERS:-

Company Name High Low Prev Close % Loss

TATAMOTORS 484.35 457.60 478.15 -3.44%

NTPC 163 157.75 162.60 -2.86%
IBULHSGFIN 1175.85 1133.05 1170.15 -2.66%
TATAMTRDVR 290.55 276.65 288.25 -2.65%
ONGC 176 171.10 175.75 -2.48%

INDIAN MARKET
Company Name LAST PRICE CHANGE CHANGE %
S&P BSE SENSEX 31190.56 -118.93 -0.38%

NIFTY 50 9637.15 -37.95 -0.39%

S&P BSE MIDCAP 14732.39 -91.67 -0.62%

EUROPEAN MARKET
Company Name LAST PRICE CHANGE CHANGE %

DAX 12737.27 -85.67 -0.67%

CAC 40 INDEX 5280.25 -27.64 -0.52%
FTST100 7516.78 -8.98 -0.12%
 MARKET NEWS:-
Big bet on India! Morgan Stanley sees Nifty hitting mount 30000 in next 5 years
It cant get bigger than this for investors and traders. Morgan Stanley predicts Nifty to triple
in next 5 years to hit Mount 30K while in the short term, it sees Sensex hitting 34000 by June
2018.If you remember between 2003-2007 Nifty earnings compounded at 39 percent and
the index was up 7-fold, we expect earnings to compound by 20 percent in the next 5 years
which could take the index towards 30,000. These are very modest estimates, Ridham Desai,
MD, Morgan Stanley said in an interview with CNBC-TV18 on the sidelines of 19th India
Summit. One big reason behind the estimates is profit share to GDP is close to all-time low,
and we should not forget that it is just a cyclical number and it tends to recover. Many factors
will contribute to push profit share to GDP which includes a recovery in consumption, real
wages are turning, exports are picking up, and government infrastructure is at an all-time
high. The only missing piece is private capex, but that should also recover by next year.We
are in the midst of a cyclical recovery in the economy which is good for earnings. The market
will not go up in a straight line but it is safe to assume that it is a well-entrenched bull market,
and there is considerable more upside for the long-term investor, said Desai. For somebody
who is looking for a 3-6 months perspective, there will be a lot of problems as valuations look
stretch, but that should not worry long term investor.Valuation are not my concern, although
it looks stretched in the small and midcap space. PE multiples will look loft at current levels
because earnings look depressed. But, if we normalise earnings, PE multiple may not look that
rich. Therefore, I look at price to book, India close to its long-term averages, said Desai. He
further added that if we look India relative to US markets, its valuations are just off the 2008
lows which tells us how rich the valuation are. But, relative to emerging markets, the
valuations are above average which is justified because of Indias superior growth and rising
return on equity (ROEs). GST Could Be Trigger For Market To Correct: In the short term,
goods & services tax (GST) could trigger some correction in the market, said Desai. Why?
Morgan Stanley did a survey of micro and small manufacturing and Services Company
recently which showed that almost half of firms survey said that they are not prepared for
GST launch on July 1.In fact, 90 percent of them have expressed a desire for training. Hence,
there is a possibility that when GST get launched, we face some amount of disruption on
growth.

The market could react negatively to this and if this gets combined with a global event then
you could get a drawdown on Nifty in the range of 5-10 percent, said Desai. This is not the
time to short this market.
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