Daily Update >> SBIL 6-Feb-15 Headlines :Daily Update SBIL - Markets continue to be volatile with Nifty falling almost 150 points from days high. Smallcaps and Midcaps were laggard and IT names were amongst the gainers. Banks again continued to be under pressure and we believe that the current price action should generate good opportunities to enter long term winners - Global markets were up driven by Greece and Oil, the latter bounced over $50 and helped the market sentiment. Greece however is still in trouble with its austerity program. The participants are awaiting clarity in terms of the willingness on the greek front and laxity on the ECB. Couple of mega billion dollar deals on either side of atlantic also helped the general market sentiment. In our regular central bank surprise moves, Danish CB cut rates again !!! - Kejriwal or Kiran... As market participants, awaiting the poll results in Delhi. BJP win should give a boost to the modi sentiment - We continue to believe markets will be range bound on both sides. Budget session will be a positive trigger alongwith global cues. We are a long term bull, but currently are playing our bias via single name stories Upcoming Events:- PMI Recommendations Current Reco Price Price GATI LTD 248 141/175/2 80 JK LAKSHMI CEMENT LTD 393 304 GREENPLY INDUSTRIES LTD 1450 988 Target Price View P/E Gain 500 Is again recommended by our short term model. One can enter with a short term view at around 240 NA 22% 49 26% 20 38% 6 6% 11 -4% 98 -6% 90 1% P/E Gain 29 0% Continue to like the story and the sector. 470/550 Capacity will be coming online in the next 12m adding to the volume growth NA BENGAL & ASSAM CO LTD 521 541/442 675 BANCO PRODUCTS (INDIA) LTD 134 140 NA INFO EDGE INDIA LTD 803 854 1100 ASHIANA HOUSING LTD 222 220 NA Recommendations MANGALAM CEMENT LTD A pull back in Bengal&Assam is required to maintain the long term bull trend. 520 remains critical below which the price may fall further Greenply came out with good set of numbers. Utilization above 100%. MDF business grew at 37%. Lower margins owing to higher ad spend which in the longer run should benefit in maintaing/gaining market share. Overall, the industry will continue to eat into the unorganized retail sales Keeping a close watch as 520 is a support. Further downmove and the price could fall to 440 levels 155 is the resistance for the stock. We update our stop to 120 Another big ticket deal in the internet/mobile space with Alibaba, the Chinese giant investing in Paytm QIP to raise 350 crores has been passed by the board. The stock was up almost 10% during the day Short Term Trade Ideas: For seasoned traders Current Target Triggers Reco Price Price Price Results on Monday 321 320 NA Daily Update >> SBIL 6-Feb-15 Closed Trades Recommendations Exit Price Reco Price Gain Future IIFL HOLDINGS LTD 186 Short Term Trade Ideas: For seasoned traders Results are out and the stock looks good to move to 250 in its bullish 169 10% uptrend. But a 10% move in 3 days compelled us to book the gains ESSEL PROPACK LTD 121 129 -6% SOLAR INDUSTRIES INDIA LTD 3100 2719 14% APAR INDUSTRIES LTD 375 451 -17% MUTHOOT CAPITAL SERVICES LTD 217 211 3% Poor results, though the stock is tied to the performance of FMCG. Long Term Ideas If the current market dip provides an opportunity to re-enter, we will definitely like to add to the name Results are out and headline nos look weak. We will probably initiate our call post the earnings release Results are flat and we expect the name to be range bound in near term. Longer term investors can continue to hold the name Investment Ideas These are names that we plan to hold 6 months or so. We remain invested in the names till there is some structural change in the company / industry or the stock runs up to some big resistances. However, we continue to trade these names booking profit/loss throughout Short Term Trading Ideas We introduce a new short term trading screen. This is primarily generated using our proprietary quantitative model and churns out names that are likely to witness big swing moves. These names are very volatile and could move either way with quite some velocity. One is advised to trade these names with strict discipline and allocate less than 2% of their portfolio size at any given point in time. The standard holding period is around 4 weeks, though we will evaluate each on a case to case basis. Hard Stop at 20% and reevaluation at 10% drop in prices