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Monday6th January,2014WEEKLY UPDATE

Domestic Markets

Index Last Change % Change

CNX 500

CNX MIDCAP

NIFTY

SENSEX 20851

6211

4850

6553

7964

(37.00)

(10.00)

1.70

38.76

23.25

-0.18%

-0.16%

0.04%

0.60%

0.29%

Currency Update

Index Last Change % Change

GBP INR

EUR INR

JPY INR

USD INR

Global Markets

Index Last Change % Change

FTSE 100

HANG SENG

S & P 500

NASDAQ

16496 28.64 0.17%

0.27%

0.03%

-2.24%

0.19%

-0.11%

-0.43%

0.84%

-0.54%

0.0675

(0.3700)

0.4975

(0.5550)

62.5457

85.3575

59.9050

103.0000

29159

45475

(11.16)

(0.61)

(522.00)

12.76

4131

1831

22817

6730

Last Week Summary

Commodity Update

Commodity Last Change % Change

CRUDE (MCX)

GOLD (MCX)

The New Year 2014 started on a very dull note due to holiday season. Most of the traders were away and the volumes were very thin. The markets were choppy and volatile throughout the week. Markets closed

rdlower in the first week ended 3 January. Both the benchmark indices, Sensex and Nifty closed in red after a volatile and directionless trade over the week. Weak domestic as well as global economic data seemed to have dampened the spirits. However, mid cap and small cap indices saw action and outperformed the main index.

RBI Governor Raghuram Rajan's comments about tapering in the US and how it will affect the Indian markets spoiled the very first day of the

thweek on 30 December 2013. The Governor had expressed his concern about the re-pricing of assets due to the tapering and subsequent volatility in global markets. A potential additional source of uncertainty for India is the coming general election. Also, the manufacturing data from China, the world's second biggest economy was disappointing.

Sectorally, Metal and mining stocks declined on weak Chinese economic data, Bank stocks edged lower over concern about persistent inflation, while Capital goods majors dropped. Auto stocks declined on weak December sales but IT stocks rose on defensive buying. But on the macro front, India's manufacturing sector ended 2013 on an encouraging footing, Operating conditions improved for the second successive month in December, as both output and new orders increased. Consequently, firms raised their workforce numbers further in the latest month.

HSBC India Manufacturing Purchasing Managers' Index (PMI) signalled a second consecutive monthly improvement in business conditions. Although weaker than its long-run trend, the PMI average for the final quarter of the year at 50.5 was greater than that seen for Q3 at 49.4.

In the coming week, the big trigger for our markets is the corporate earnings season. Investors as well as analysts would be watching this event carefully. The ceremonial bell will be done by Infosys

thTechnologies as usual on the Friday 10 January. Another important data on the same day would be industrial production data for November 2013. Industrial production had declined 1.8% in October 2013, against 2% growth in September 2013. Also, the US Federal Reserve will cut its monthly bond purchases to $75 billion from $85 billion starting in January 2014. These events will decide the way markets will turn out in the coming week.

Dear Readers, Wish You All a Very Happy New Year.

5897

191.00 0.66%

0.28%

-1.98%

127.00

(119.00)

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Monday6th January,2014WEEKLY UPDATE

CNX Auto (5194.90) Bias : Negative.

Bank Nifty (11181.65) Bias : Negative.

CNX Pharma (7663.10) Bias : Negative.

SECTOR ANALYSIS

The CNX Auto Index chart shows a bearish pattern. It has just closed below the 50 day moving average indicating short term bearishness. The nearest support is around 5140. The next supports are around 5070 and 5027. The CNX Auto has underperformed the CNX Nifty in the last week.

Pick in the Auto Index: Maruti (1798.60) : Maruti Suzuki looks very attractive with a week's perspective in mind. The chart shows a renewed interest in the stock. The stock has been in a downward trend in the last week but has managed to hold onto a crucial support around 1750 area. The resistance is around 1830 area. We expect Maruti to test 1850 area in the coming week.

Underperforming Stocks: M&M, Tata Motors.

Underperforming Stocks: SBI.ICICI.

Underperforming Stocks: Cipla, Glenmark.

Outperforming Stocks: Maruti, Ashok Leyland, Apollo Tyres.

Outperforming Stocks: Canara Bank, Yes Bank.

Outperforming Stocks: Lupin, Ranbaxy, Sun Pharma.

The bank Nifty has been the most active and most volatile index in the NSE pack. Because of its sensitiveness to interest rates, it has been the most volatile index. The short term bias is negative on the Bank Nifty. It has not only broken the 50 day as well as 200 day moving average. The Bank Nifty chart is very miserable. A major crucial support at 11087 needs to be held in order to sustain the downward movement.

Pick in the Bank Index: Canara Bank (277.85): Canara Bank is the outperformer in the banking pack. The chart shows that the scrip may test its crucial resistance around 290 levels. A decisive break above 290 will clear path till 320 area. We are positive on Canara Bank and expect it to test at least 300 area in coming week.

Pharmaceutical index is probably the only index which has outperformed almost all indices. Due to the uncertainty in the markets as well as the weakening of rupee, Pharmaceutical stocks have been in demand. The index has closed almost just above the crucial breakout level at 7660. We expect the index to breakout and test previous highs of 7800 in coming months.

Pick in the Bank Index: Lupin (932.90): The stock has been performing very well in the last whole week. It has broken out in the last week from a consolidation around 900 area. The next resistance is around 945, which happens to be its 52 week high. We are positive on the stock and expect it to test its 52 week highs.

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Monday6th January,2014WEEKLY UPDATE

CNX Reality (185.55) Bias : Neutral

CNX IT (9673.20) Bias : Positive.

Weekly Stock Recommendation

SECTOR ANALYSIS

The CNX Realty index has been a languishing in the range of 180-190 for the whole last week. It has a major resistance around 191.55 area at its 200 day moving average. A small breakdown is seen on the chart indicating a fall to around 175-177 area.

Pick in the Realty Index: Sobha Developers (334.80): This stock has definitely outperformed the whole index and other stocks in the last week. There was a surge of more than 7% on Friday. It will test its weekly res of 353.50 very soon. We are positive on the stock.

Underperforming Stocks: Unitech, DLF.

Outperforming Stocks: Sobha Developers.

Underperforming Stocks: Tech Mahindra.

Lupin (932.90)

Outperforming Stocks: TCS, Infy, HCL Tech, Wipro.

Recommendation: BUY. Target: 975. Holding Period: One Week.

Similar to the Pharmaceutical index, IT index has also been performing very well. That too for the same reasons: Defensive buying and depreciation of the rupee against the Dollar. CNX IT has been trading at the all time highs and is expected to do well in near future too. It has just broken out of a small consolidation.

Pick in the IT Index: TCS (2222.20) This stock has outperformed the whole index and other stocks. It is trading at almost all time highs. We are positive on the stock.

The stock has been performing very well in the last whole week. It has broken out in the last week from a consolidation around 900 areas. The next resistance is around 945, which happens to be its 52 week high. We are positive on the stock and expect it to test its 52 week highs and test around 975 areas in a week's time. However, the trend changes after it breaches 905 (closing basis) areas on the downside. Watch out for the break below 905

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Monday6th January,2014WEEKLY UPDATE

Time Country Impact Event

Thursday, January 9

Friday, January 10

Monday, January 6

Wednesday, January 8

Economic Calendar

Services PMI

ISM Non-Manufacturing PMI

60.0

54.5

200K

-1.3%

0.50%

197K

60.0

53.9

215K

3.0%

0.50%

203K

HIGH

HIGH

HIGH

HIGH

HIGH

HIGHUSD

GBP

CNY

USD

GBP

USD

14.58

20.30

18.45

07.30

17.30

19.00

ADP Nonfarm Employment Change

Chinese CPI (YoY)

Interest Rate Decision

Nonfarm Payrolls

7.0% 7.0%HIGHUSD19.00 Unemployment Rate

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Monday6th January,2014WEEKLY UPDATE

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Money Plex Securities Pvt. Ltd.

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DISCLAIMER: This is solely for information of clients of Money Plex Securities Pvt. Ltd. and does not construe to be an investment advice. It is also

contained herein is your responsibility alone and Money Plex Securities Pvt. Ltd. its subsidiaries or its employees or associates will not be liable in any manner for the consequences of such action taken by you. We have exercised due diligence in checking the correctness and authenticity of the information contained in this recommendation, but Money Plex Securities Pvt. Ltd. or any of its subsidiaries or associates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this recommendation or any action taken on basis of this information.

Technical analysis studies market psychology, price patterns and volume levels. It is used to forecast future price and market movements. Technical analysis is complementary to fundamental analysis and news sources. The recommendations issued herewith might be contrary to recommendations issued by Money Plex Securities Pvt. Ltd. in the company research undertaken as the recommendations stated in this report is derived purely from technical analysis. Money Plex Securities Pvt. Ltd. has based this do cument on information obtained from sources it believes to

no responsibility or liability as to its accuracy or completeness. The opinions contained within the report are based upon publicly available information at the time of publication and are subject to change without notice. The information and any disclosures provided herein are in summary form and have been prepared for informational purposes. The recommendations and suggested price levels are intended purely for trading purposes. The recommendations are valid for the day of the report however trading trends and volumes might vary substantially on an intraday basis and the

unaudited. Past performance does not guarantee future returns. There can be no assurance that investments will achieve any targeted rates of return, and there is no guarantee against the loss of your entire investment.

POTENTIAL CONFLICT OF INTEREST DISCLOSURE (as on date of report)Disclosure of interest statement – • Analyst interest of the stock /Instrument(s): - No. • Firm interest of the stock / Instrument (s): - No.

Weekly Update newsletter provides insights and themes for Indian equity markets.

We also try and cover international themes for the week. This newsletter covers the

most preferred trading strategy for the week.In the Weekly Stock Recommendation section, we recommend a stock which is likely to

move significantly in the short term, clearly defining the supports, resistances and bias

for the stock.