Special report-01-november-2018-epic-research

Page 1

Special Report 30-Oct-2018

Global markets at a glance US stocks fell in a volatile session on Monday, with the benchmark S&P 500 index ending close to confirming its second correction of 2018, hurt by fresh worries about USChina trade policy tensions and a sharp drop in the big technology and internet shares. Following a morning rally, major US indexes pulled back steeply after a Bloomberg report that the US is preparing to announce tariffs on all remaining Chinese imports by early December if talks next month between presidents Donald Trump and Xi Jinping falter. "Obviously this trade skirmish is metastasizing potentially into something worse than it already is," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia. Asian shares came under pressure on Tuesday after Wall Street peers finished weaker, hurt by fresh worries about the US-China trade war and were on track for their biggest October decline since the 2008 financial crisis. MSCI's broadest index of Asia-Pacific shares outside Japan slid 0.1 percent, tracking falls in US stocks. The index has fallen more than 12 percent this month.Japan's Nikkei average rose 0.9 percent and the Australian benchmark shed 0.2 percent in early morning trade.Major U.S. indices fell steeply in volatile trade after a Bloomberg report that the United States is preparing to announce tariffs on all remaining Chinese imports by early December if talks next month between presidents Donald Trump and Xi Jinping falter. PREVIOUS DAY ROUNDOFF Bulls staged a smart comeback on Monday after sharp selloff last week. The Nifty50 after gap up opening extended rally as the day progressed and closed above 10,250 levels, driven by short covering in banking & financials after ICICI Bank's Q2 earnings. All sectoral indices closed in the green with Pharma rising the most (up 5.2 percent) followed by Bank, Financial Service, IT, Metal and Realty which gained 2 -3 percent.The Nifty50 after opening higher at 10,078.10 extended rally as the day progressed and touched an intraday high of 10,275.30 in late trade. The index almost recovered all its previous week's losses and closed 220.90 points higher at 10,250.90, forming large bullish candle on the daily charts. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[19.25pts], Consumption[52.85pts],PSE[22.40pts],CPSE[+8.00pts],Energy [92.85pts],FMCG[275.80pts],Auto[75.95pts],Pharma [222.20pts],IT[584.25pts],Metal[-36.10pts],Realty[1.40 pts], Fin Serv sector[241.30pts].

World Indices Index

Value

% Change

DJI

24,442.92

-0.99

S&P500

2,658.69

-1.73

NASDAQ

6,713.90

-2.02

FTSE100

7,026.32

1.32

21,424.53 24,769.77

1.28 -0.17

NIKKEI HANG SENG

Top Gainers Company

CMP

Change

% Chg

Tech Mahindra

743.90

58.80

8.58

Indiabulls Hsg

834.60

65.45

8.51

UPL

674.35

37.55

5.90

HDFC

1,769.25

97.35

5.82

HCL Tech

1,055.60

50.75

5.05

CMP

Change

% Chg

Coal India Dr Reddys Labs Tata Steel Hindalco

266.15 2,542.45 553.85 220.40

-9.70 -51.85 -10.65 -3.50

-3.52 -2.00 -1.89 -1.56

Maruti Suzuki

6,616.40

-80.60

-1.20

Top Losers Company

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

ATNINTER

0.3

0.05

16.67

BLUECHIP

0.6

0.05

8.33

1485.75

-7.75

-0.52

2900

0

0

179.05

7.6

4.24

DIVISLAB HDFCMFGETF KILITCH

Stocks at 52 Week’s LOW Symbol

21STCENMGM 8KMILES AIFL AMBUJACEM ANGIND

Prev. Close

Change

%Chg

23.15 75.85 88.05 192.45 1.45

-0.45 -7.55 -4.4 4.2 0.05

-1.94 -9.95 -5 2.18 3.45

Indian Indices Company

CMP

Change

% Chg

NIFTY

10386.60

188.20

1.85

SENSEX

34442.05

550.92

1.63

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Special Report 30-Oct-2018

RECOMMENDATIONS [FUTURE] 1.SUNPHARMA [FUTURE ] Stock has shown consolidation from the bottom of the chart with good volumes. It took support on the trend line on daily chart. The stockhastic has also shown reversal from its bottom level of 10. As per the last candle it has made a breakout and closed above its crucial resistance level of 578 in the intraday level its in little oeverbought condition so we advice you to buy around 570-572 for the targets of 580-590 with stoploss below 565.

2.RAYMOND [FUTURE] A clear consolidation can be seen around the levels of 735758 as per the market strength the traders can get opportunity to enter in this counter and as per the daily chart it has made a double bottom breakout and as per the trend it may continue its movement today also so we you to buy raymond future around 768-770 for the targets of 780-790 with stoploss below 760.

STOCK RECOMMENDATION [CASH] KEC - [CASH] Stock has shown consolidation from the bottom of the chart with good volumes. It made multiple times reversals around these levels 263 and 255 and shown bounce back from there now its near to make a breakout above 290 ,so we recommend you to buy around 290-292 for the target of 296-300 with the stop loss below 287.

MACRO NEW  Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 33.5 points or 0.33 percent. Nifty futures were trading around 11,242level on the Singaporean Exchange.  Oil prices fell on Tuesday, dragged down by ongoing weakness in global stock markets and by signs of rising global supply despite looming sanctions on Iran’s crude exports.Front-month Brent crude oil futures were at $76.78 a barrel at 0040 GMT, down 56 cents, or 0.8 percent, from their last close. US West Texas Intermediate (WTI) crude futures were at $66.78 a barrel, down 26 cents, or 0.4 percent, from their last settlement.  Domestic institutional investors (DIIs) invested Rs 23,545.94 crore in Indian stock markets in October, taking advantage of the correction in the market. Their total investments this year have crossed Rs 1 trillion so far. DIIs’ net investment in Indian equity market so far this year stands at Rs 1.06 trillion. Mutual funds have pumped in a net of Rs 1.04 trillion, implying that some DIIs may have been net sellers of the asset class.  As many as 135 companies will declare their results for the quarter ended September 30 which include names like Bank of Baroda, Bhushan Steel, Cummins India, Dena Bank, IDFC Ltd, JK Tyre, Bank of Maharashtra, Tech Mahindra and Torrent Power among others.

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Special Report 30-Oct-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION Symbol

Op- Strike tion Price Type

LTP

Traded Volume (Contracts)

Open Interest

AAVAS Financiers Q2: Profit rises to Rs 35.28 crore versus Rs 32.86 crore; revenue jumps to Rs 163.62 crore versus Rs 128.03 crore YoY.

Nucleus Software Q2: Profit increases to Rs 19.14 crore versus Rs 17.59 crore; revenue rises to Rs 121.49 crore from Rs 112.61 crore QoQ.

NIFTY

CE

10,500

149

1,58,775

20,31,825

NIFTY

CE

10,600

103.8

1,10,299

18,98,175

BANKNIFTY

CE

25,000

163.4 12,70,545

4,91,420 NIFTY FUTURE

BANKNIFTY

CE

25,200

73.85 10,59,991

6,59,460

RELIANCE

CE

1,100

24.2

7,035

20,68,000

MARUTI

CE

7,000

114

5,455

2,51,100

RELIANCE

CE

1,080

32

4,362

9,61,500

RELIANCE

CE

1,060

41.3

3,361

6,14,000

MARUTIACTIVE PUT CE OPTION 9,000 111.5 5,823 MOST Symbol

Op- Strike tion Price Type

LTP

2,83,500

Traded Volume (Contracts)

Open Interest

1,37,321

45,22,950

NIFTY

PE

10,000 102.1

NIFTY

PE

10,200

155

97,811

35,77,200

BANKNIFTY

PE

24,500

15.5

10,05,670

9,53,360

BANKNIFTY

PE

24,400

12.8

6,88,071

5,83,800

RELIANCE

PE

1,000

16.2

4,432

8,32,500

RELIANCE

PE

1,040

29.2

3,910

5,00,500

TATASTEEL

PE

500

6.8

3,405

6,90,711

RELIANCE

PE

1,060

38.3

3,115

3,94,000

From the daily chart after rebounding from its important support level of 10030 the nifty future made a breakout which closed above its previous resistance level of 10280, however some corrections can be found during the initial trading session of the market since as per the intraday level stockhastic momentum indicator is showing a overbought conditiion in hourly chart so its better to buy nifty future around 10320-10300 for the targets of 10400-450 with stoploss below 10250.

FII DERIVATIVES STATISTICS BUY

SELL

No. of Contracts

Amount in Crores

No. of Amount in Contracts Crores

INDEX FUTURES

73946

4619.45

72111

INDEX OPTIONS

1001953

57259.97

STOCK FUTURES

330001

STOCK OPTIONS

100161

OPEN INTEREST AT THE END OF THE DAY No. of Contracts

Amount in Crores

NET AMOUNT

4765.99

320587

22900.51

-146.5317

983452

56495.98

687254

48146.91

763.986

16696.10

319543

16154.86

1413465

77292.40

541.24

5482.55

98899

5393.56

54369

2965.15

88.9889 1247.6832

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

10586.00

10486.00

10295.00

10195.00

10004.00

BANKNIFTY

25633.00

25393.00

24960.00

24720.00

24287.00

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Special Report 30-Oct-2018

RECOMMENDATIONS GOLD TRADING STRATEGY: BUY GOLD DEC FUT ABOVE 32000 TGT 32050 32100 SL BELOW 31950 SELL GOLD DEC FUT BELOW 31900 TGT 31850 31800 SL ABOVE 31950

SILVER TRADING STRATEGY: BUY SILVER DEC FUT ABOVE 38750 TGT 38800 38850 SL BELOW 38700 SELL SILVER DEC FUT BELOW 38650 TGT 38600 38550 SL ABOVE 38700

COMMODITY ROUNDUP COMEX Gold extended a drop and slipped to near three week lows as a recent correction extended. The metal is currently trading at $1219 per ounce, down half a percent on the day. A report released by the Conference Board on Tuesday showed a continued increase in US consumer confidence in the month of October. The Conference Board said its consumer confidence index rose to 137.9 in October from a downwardly revised 135.3 in September. DOW jumped on bargain buying after testing near three month lows. Supportive economic data helped the sentiments. This upmove in stocks pushed Gold lower. MCX Gold futures also ended down 0.20% at Rs 31825 after falling under Rs 32000 levels. Besides, a pick-up in buying by local jewellers to meet seasonal demand at domestic spot markets and diversion of funds from falling equity markets also supported the uptrend, they said. In the national capital gold of 99.99 and 99.5 per cent purity rallied by Rs 125 each to Rs 32,625 and Rs 32,475 per 10 gram, respectively. This is the highest level since November 29, 2012 when the precious metal had closed at Rs 32,940 per ten gram. This is the third straight session of gain for the yellow metal which has gained Rs 405 since October 23. Sovereign gold, however, traded steady at Rs 24,800 per piece of eight gram. COMEX Copper futures took a hefty tumble as China reported weakest manufacturing growth in more than two years. China's manufacturing sector continued to expand in October, albeit at a slower pace with a manufacturing PMI score of 50.2, the latest survey from the National Bureau of Statistics said on Wednesday, down from 50.8 in September. It remains above the boom-or-bust line of 50 that separates expansion from contraction. COMEX Copper is quoting down 2.60% at $2.66 per pound- around six week lows. MCX Copper futures crashed 2.30% to end at Rs 435 per kg yesterday and should start on a bleak note today as well. MCX Zinc futures jumped half a percent today, extending a recovery from near one month low as the base metals complex eyed gains in equities today. Share markets edged up in Asia and Europe and offered good support to commodities too. MCX Zinc futures are currently trading at Rs 192.60 per kg, up 0.47% on the day right now. LME Zinc futures fell around 1.50% yesterday to close at a two week low of $2650 per tonne. Prices have been under stress of late.The global zinc market was in surplus by 20.6 kilo tons (kt) during January to August 2018 which compares with a deficit of 439 kt recorded in the whole of the previous year, according to the latest data released by the World Bureau of Metal Statistics.

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Special Report 30-Oct-2018

RECOMMENDATIONS GUARGUM5 TRADING STRATEGY: BUY GUARGUM OCT ABOVE 10170 TARGET 10220 10280 SL 10120 SELL GUARGUM OCT BELOW 10040 TARGET 10000 9950 SL 10100

NCDEX INDICES Index

Value

% Change

Barley Castor Seed Chana Coriander Cotton Seed Oilcake Guar Seed 10 MT

1904 5736 4004 5825 1810 4603

0.74 0.46 1.11 -0.65 -1.6 -0.36

20620

1.9

4090 3308 6788

-0.61 -0.75 -0.35

Jeera Mustardseed Soy Bean Turmeric

DHANIYA TRADING STRATEGY: BUY CORIANDER OCT ABOVE 5950 TARGET 6000 6050 SL 5900 SELL CORIANDER OCT BELOW 5750 TARGET 5700 5650 SL 5800

Heavy selling was seen in chana and wheat market due to fragile demand by millers at higher levels along with stock liquidation by government agencies. In today's trading both Chana and wheat futures hammered by more than 2 percent. The market sources added that heavy stock selling by NAFED to cater domestic festival demand has maintained adequate supplies in local mandies. On the other side, selling was also emerged in guraseed counter as traders have reported some profit taking in guar market. The sources have estimated 60 thousand bags of daily arrivals of guar seed. The daily arrivals are likely to increase in the coming days. The NCDEX Guarseed November futures declined by 0.40 percent today. Sharp selling was seen in across all agri commodities on the back of strong kharif supplies in local mandies coupled with limited demand at current levels. All the major counters such as spices and oilseeds complex settled with losses.The NCDEX Chana futures settled in red as prices were guided by heavy stock liquidation by NAFED in local mandies. The daily arrivals were reported at 20 motors today in Delhi. On the other side, selling was seen in oilseeds market as prices declined today due to bearish nodes from international market along with sowing trend of Soyabean crop so far in the current year. Soyabean market has reported 11 lakh bags of arrivals today , around 6 lakh bags higher from last day. Weakness was seen in Jeera market due to fragile export at elevated levels. The NCDEX November futures declined by 0.40% today. The prices have declined by almost 6% from peak. While limited trading was seen in turmeric market as prices were hovering around last close to settle with marginal losses.

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Special Report 30-Oct-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

73.9936 Yen

65.3600

Euro

83.9250 GBP

94.1016

USD/INR TRADING STRATEGY: BUY USDINR ABOVE 74.00 TGT 74.50/75.00 SL BELOW 73.50 SELL USDINR BELOW 73.00 TGT 72.50/72.00 SL ABOVE 73.50

GBP/INR TRADING STRATEGY: BUY GBPINR ABOVE 94.80 TGT 95.30/95.80 SL BELOW 94.30 SELL GBPINR BELOW 93.00 TGT 92.50/92.00 SL ABOVE 93.50

The euro skidded to its weakest since Aug. 20 on Wednesday after signs that economic growth could be slowing in Germany and France, the euro zone's two biggest economies. German private-sector growth slowed to its lowest level in more than three years as manufacturing and services both lost momentum, below forecasts, while manufacturing in France hit a 25-month low, widely-watched surveys showed. The single currency, earlier trading flat, dropped 0.4 per cent to $1.1422 after the surveys were published. The euro was the only big mover, with broader currency markets treading water as investors stay nervous about which direction to take despite some calm coming back into the market after this week's sharp falls in equity prices. The euro was the only big mover, with broader currency markets treading water as investors stay nervous about which direction to take despite some calm coming back into the market after this week's sharp falls in equity prices. The Japanese yen - often bought when broader markets slide - gave up some of its earlier gains, suggesting renewed demand for risk-taking as Asian stock markets rebounded. Big falls in stock prices have shaken foreign exchange markets this week, with the yen the main gainer, although currencies have largely remained calm as investors weigh up whether equity weakness is a major correction or just another wobble in a nearly decade-long bullmarket run. The rupee bounced back from the day's low level to settle almost flat at 73.57 against the US currency Tuesday helped by easing crude oil prices and increased dollar selling by banks and exporters. The rupee opened weak at 73.74 and later fell to the day's low of 73.82 due to steady capital outflows amid deep losses in stock markets due to growing geopolitical concerns. However, retreating crude oil prices which fell 1.93 per cent to USD 78.29 per barrel eased concerns and helped arrest a decline in the local currency, a dealer said. Increased dollar selling by banks on the behalf of the Reserve Bank helped the rupee recover from losses. "Rupee pared losses and closed flat as crude oil prices retreated and dollar selling by state run lenders on behalf of RBI," V K Sharma, Head PCG & Capital Markets Group, HDFC Securities said.

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Special Report 30-Oct-2018

Date

Commodity/ Currency Pairs

31/10/18

NCDEX DHANIYA

SEP

BUY

31/10/18

NCDEX DHANIYA

SEP

31/10/18

NCDEX GUARGUM5

31/10/18

Contract Strategy

Entry Level

Target

Stop Loss

Remark

5930

5980 6030

5880

SL TRIGGERED

SELL

5800

5750 5700

5850

NOT EXECUTED

OCT

BUY

10350

10400 10450

10300

NOT EXECUTED

NCDEX GUARGUM5

OCT

SELL

10050

10000 9950

10100

NOT EXECUTED

31/10/18

MCX GOLD

OCT

BUY

32000

32050 32100

31950

OPEN

31/10/18

MCX GOLD

OCT

SELL

31800

31750 31700

31850

TARGET HIT

31/10/18

MCX SILVER

SEP

SELL

38400

38450 38500

38350

TARGET HIT

31/10/18

MCX SILVER

SEP

BUY

38250

38200 38150

38300

NOT EXECUTED

Date

Scrip

CASH/ FUTURE/ OPTION

Strategy

Entry Level

Target

Stop Loss

Remark

31/10/18

NIFTY

FUTURE

BUY

10000

10400

9950

OPEN

31/10/18

INDUSINDBK

FUTURE

BUY

1400-1395

1375-55

1415

TARGET HIT

31/10/18

IRB

FUTURE

BUY

127.50-128

133-138

125

TARGET HIT

31/10/18

DELTACORP

CASH

BUY

231-232

236-242

228

TARGET HIT

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Special Report 30-Oct-2018

NEXT WEEK'S MAJOR U.S. ECONOMIC REPORTS TIME (ET)

REPORT

PERIOD

ACTUAL

FORECAST

PREVIOUS

0.4%

0.3%

0.1%

0.0%

TUESDAY, OCT. 30

TUESDAY, OCT. 30

136.5

138.4

MONDAY, OCT. 29 8:30 am

Personal income

Sept. 8:30 am

8:30 am

Core inflation

Sept.

TUESDAY, OCT. 30

TUESDAY, OCT. 30

TUESDAY, OCT. 30

TUESDAY, OCT. 30

9 am 10 am

Consumer confidence index

Oct.

10 am

Home ownership

Q3 WEDNESDAY, OCT. 31

8:15 am

ADP employment

Oct.

8:30 am

Employment cost index

Q3

9:45 am

Chicago PMI

Oct.

THURSDAY, NOV. 1

THURSDAY, NOV. 1

THURSDAY, NOV. 1

230,000 0.8%

0.6% 60.4

THURSDAY, NOV. 1

THURSDAY, NOV. 1

THURSDAY, NOV. 1

2.3%

2.9%

8:30 am 8:30 am

Productivity

Q3 Disclaimer

The8:30 information website any responsibility (or liabilam and views in this report, Unit our labor costs& all the service we provide Q3are believed to be reliable, but we do not accept 1.3% -1.0% ity) for errors of fact or opinion. Users have the right to choose the product/s that suits them the most. Sincere efforts ha ve been made to present the right investment perspective. The information contained herein is based on analysis and up on sources that we consider reliable. This material is for personal information and based upon it & takes no responsibility. The information given herein should be treated as only factor, while maki ng investment decision. The re9:45 am Markit manufacturing PMI Oct. final 55.9 port does not provide individually tailor-made investment advice. Epic research recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial adviser. Epic research shall not be responsible for any transaction conducted based on the information given in this report, which is in violation of rules and regulations of NSE and BSE. The share price projections shown are not necessarily indicative of 10price am performance. TheISM manufacturing indexwith all estimates and Oct.forecasts, can change without notice. Analyst 58.8% 59.8% future information herein, together or any person related to epic research might be holding positions in the stocks recommended. It is understood that anyone who is browsing through the site has done so at his free will and does not read any views expressed as a recommendation for which either the site or its owners or anyone can be held responsible for . Any surfing and reading 10information am Construction spending Sept. in equity & bullion market has its own risks. 0.4% of the is the acceptance of this disclaimer. All Rights Reserved. Investment We, however, do0.1% not vouch for the accuracy or the completeness thereof. We are not responsible for any loss incurred whatsoever for any financial profits or loss which may arise from the recommendations above epic research does not purport to be an invitation or an offer to buy or sell any financial instrument. Our Clients (Paid or Unpaid), any thirdVaries party or anyone else have no rights vehicle to forwardsales or share our calls or SMS Oct. or Report or Any Information Provided by us to/with anyone which is received Motor 17.2 mln 17.4 mln directly or indirectly by them. If found so then Serious Legal Actions can be taken.

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