Special report-02-apr-2019-epic-research

Page 1

Special Report 2–APR -2019

Global markets at a glance

World Indices

US stocks rallied on Monday, starting off the second quarter on a strong note, as upbeat manufacturing numbers from China and the United States eased worries about slowing global growth.The Dow Jones Industrial Average rose 329.74 points, or 1.27 percent, to 26,258.42, the S&P 500 gained 32.79 points, or 1.16 percent, to 2,867.19, and the Nasdaq Composite added 99.59 points, or 1.29 percent, to 7,828.91.

Index

Value

% Change

DJI

26258

+1.27

S&P500

2867

+1.16

NASDAQ

7828

+1.29

FTSE100

7317

+0.52

21574 29588

+0.31 +0.09

Asia shares extended their rally on Tuesday as factory activity surveys from China and the United States boosted investor confidence, triggering the largest one-day sell-off in the US Treasury market in nearly three months.MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3 percent to a seven-month high after rallying more than one percent in the previoussession. Australian shares gained 0.8 percent while Japan’s Nikkei advanced 0.4 percent, extending its gains for a third session.

Top Gainers

A positive opening is likely as Nifty Futures on Singaporean Exchange were trading over 13 points higher. The futures traded around 11,747-odd levels. Oil prices rose to fresh highs for the year on Tuesday, after a US official said Washington is considering more sanctions on Iran and a key Venezuelan export terminal halted operations. PREVIOUS DAY ROUNDOFF Indian equity markets started the April F&O series on a positive note with Nifty closing the day ~0.4% up.The Nifty Metal index was among the outperformers, ending ~2.5% higher as across the board long formation was seen in major heavyweights like Jindal Steel & Power, Tata Steel, and Vedanta.The Nifty PSU Bank index ended its 4-day winning streak and closed ~0.3% down, as long unwinding was witnessed in PNB and Canara Bank. Market breadth ended in favor of advances on the NSE with the advance/decline ratio closing at 1:1x. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[+15.95pts], Consumption[-5.45pts],PSE[-18.7pts],CPSE[27.45pts],Energy[+48.10pts],FMCG[-128.25pts],Auto [+79pts],Pharma[+28.85pts],IT[+212.45pts],Metal [+58.15pts],Realty[-2.00pts], Fin Serv sector[-44.50pts].

NIKKEI HANG SENG Company

CMP

Change

% Chg

187.35

13.1

7.52

Hindalco

215.9

10.4

5.06

Tata Steel

535.15

14.15

2.72

Wipro

261.65

6.85

2.69

6,840.70

168.15

2.52

CMP

Change

% Chg

431.7 934.3 158.7 20,048.40 1,743.05

-13.8 -24.55 -4.15 -499.3 -36.95

-3.1 -2.56 -2.55 -2.43 -2.08

Tata Motors

Maruti Suzuki

Top Losers Company

Zee Entertain UPL IOC Eicher Motors IndusInd Bank

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

135.5

12.1

10.35

ATUL

3,658.95

11.8

0.33

BAJFINANCE

3,034.95

24.65

0.82

38

1.8

4.97

3,140.00

26.41

0.85

Prev. Close

Change

%Chg

CHROMATIC

0.85

-0.05

-5.56

COMPUSOFT

7.9

-0.35

-3.78

CYBERMEDIA DNAMEDIA GAL

4.65 1.25 4.55

-0.15 -0.05 0.05

-3.13 -3.85 1.05

ADANIGAS

BALAXI BANKBEES

Stocks at 52 Week’s LOW Symbol

Indian Indices Company

CMP

Change

% Chg

NIFTY

11669

+45.3

+0.39

SENSEX

38837

+164.27

+0.33

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Special Report 2–APR -2019

RECOMMENDATIONS [FUTURE]

STOCK RECOMMENDATION [CASH]

1. Jindal Steel [FUTURE ]

REPCOHOME

Jindal Steel — Stock is trading in channel line & strong buying seen in last week in this stock . In last week buying in metal sector & stock specific like Vedanta , Jindal , Tata Steel. Our recommendation is to Buy in the range 180-182 Target 187/190 Sl below 177.

Stock showing strength in last day & it is going to be continued beacuse after analysis of derivate date we have seen the increase in open interest along with the price of stock rise . Our recommendation is to buy the stock above 460 target 465/470 Sl 450 .

2. KSCL [FUTURE] KSCL— In KSCL we have seen Buying in this week , we may expect that it will be continue in upcoming week also. On Technical point of view seen trend line breakout & also stock bounce back RSI & MACD also indicate upmove in this stock with strong volume.Our recommendation is Buy stock future in the range of 460 Target 470/480 Sl 450

MACRO NEWS 

US President Donald Trump said on Monday he intends to end India’s preferential trade treatment under a program that allows $5.6 billion worth of Indian exports to enter the United States duty free. Trump, who has vowed to reduce US trade deficits, has repeatedly called out India for its high tariffs.“I am taking this step because, after intensive engagement between the United States and the Government of India, I have determined that India has not assured the United States that it will provide equitable and reasonable access to the markets of India,” Trump said in a letter to congressional leaders

China set a 2019 budget deficit target that’s higher than last year’s ratio and said its fiscal policy would be more “proactive and effective”. The Ministry of Finance said on Tuesday that it is targeting a budget deficit of 2.8 percent of gross domestic product (GDP) for this year, compared with 2018’s 2.6 percent target.Policymakers have pledged to step up support for the cooling economy this year, following a raft of measures in 2018 including fast-tracked infrastructure projects and cuts in banks’ reserve requirements and taxes.

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Special Report 2–APR -2019

STOCKS IN NEWS

MOST ACTIVE CALL OPTION Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

BANKNIFTY

CE

31,000

54

3,59,887

NIFTY

CE

11,700

51.4

2,52,612

BANKNIFTY

CE

30,800

89.8

2,19,666

RELIANCE

CE

1,400 42.25

10,357

MARUTI

CE

7,000 148.9

9,222

TATAMOTORS CE

200

4.8

8,151

RELIANCE

CE

1,440 26.35

7,105

RELIANCE

CE

1,420 33.55

6,249

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

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

Open Interest

6,38,180 Cipla's wholly owned subsidiary in USA i.e. Cipla Technologies LLC, has signed a binding term sheet today 14,03,550 with Pulmatrix Inc 4,06,300 NIFTY FUTURE NIFTY -On weekly chart Nifty close with 10,73,000 green candle,during this week nifty was traded in a 1,49,025 brode range of 235 points. On Nifty we may expect new all time high will see before starting first phase of 36,68,000 election April 17,2019 . In last week FII infuse more than 4,10,000 6000 cr & selling by DII in cash Rs 435 cr, which was less as we compare to last week data . After analysis of data 4,48,000 suggest that 11500-11600 work as support & OI addtion seen in 11700-11800 works as resistance . Our 2,83,500 recommendation is to Buy Nifty 50 in the range 11550Open 11600 Target 11700/11800 SL below 11450. Interest

BANKNIFTY

PE

30,000

120

3,59,586

5,46,320

BANKNIFTY

PE

30,200

189

2,82,771

2,47,880

BANKNIFTY

PE

30,500

344

2,14,021

2,24,900

RELIANCE

PE

1,360

24.3

4,815

6,41,500

RELIANCE

PE

1,300

9.8

4,110

8,08,000

RELIANCE

PE

1,380

32.5

3,867

2,28,000

RELIANCE

PE

1,340 18.45

3,248

2,88,500

RELIANCE

PE

1,320

3,190

3,96,500

13.5

Karnataka Bank: Bank targets Rs 1,44,000 crore business turnover for FY20.

FII DERIVATIVES STATISTICS BUY No. of Contracts

SELL Amount in Crores

OPEN INTEREST AT THE END OF THE DAY

No. of Amount in No. of Contracts Crores Contracts

Amount in Crores

NET AMOUNT

INDEX FUTURES

32355

2533.07

40841

3199.87

215281

17173.14

-666.7974

INDEX OPTIONS

1278167

87372.33

1270874

86734.58

755268

60475.66

637.7477

STOCK FUTURES

220022

13566.68

211998

13178.58

1379319

89408.43

388.1047

STOCK OPTIONS

104038

6347.42

100258

6193.38

60146

3983.20

154.0382 513.0932

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

11777

11723

11684

11629

11590

BANKNIFTY

30827

30576

30397

30147

29967

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Special Report 2–APR -2019

RECOMMENDATIONS GOLD TRADING STRATEGY: GOLD BUY ABOVE 31500 Target 31550/31600 Sl 31400 GOLD SELL BELOW 31475 Target 31450/31350 Sl 31575

SILVER TRADING STRATEGY: Silver Buy Above 37700 Target 37800/37900 Sl 37575 Silver Sell Below 37580 Target 37500/37400 Sl 37680

COMMODITY ROUNDUP Gold prices eased on Monday as stock markets rallied after upbeat Chinese economic data soothed some concerns about the global economy and boosted risk appetite, although losses were limited by a sliding dollar. Spot gold XAU= was down 0.1 percent at $1,290.22 per ounce by 1005 GMT, after touching its lowest since March 8 at $1,286.35 on Friday.U.S. gold futures GCv1 fell 0.2 percent to $1,295.80 an ounce."We have a positive environment in the equity markets so risk is on and that's a negative for gold," Julius Baer analyst Carsten Menke said. Global stocks surged on strong Chinese factory activity data and signs of progress in U.S.-China trade negotiations. MKTS/GLOB dollar index .DXY was lower, however, limiting gold's losses as it makes holding the metal cheaper for buyers holding other currencies."We have to look through the noise and at the bigger picture. We still think the global economy is slowing in the 12-18 month horizon, especially in the U.S., which should help gold in the longer term," Menke said.Gold has gained more than 11 percent since touching more than 1-1/2-year lows last August on a dovish U.S. Federal Reserve and global growth concerns.Investors are now waiting for U.S. retail sales and manufacturing PMI data due later in the day. Global demand for gold in 2019 will rise to the highest in four years as higher consumption by jewellers offsets a fall in purchases by central banks, an industry report said on Monday. Britain's exit from the European Union was in disarray after the implosion of Prime Minister Theresa May's Brexit strategy left her under pressure from rival factions to leave without a deal, go for an election or forge a much softer divorce. increased their net long position in COMEX gold for the second straight week in the week to March 26, data showed on Friday. Oil rose on Monday, building on its largest first-quarter gains in nearly a decade, as tight supply and positive signs for the global economy supported prices.Brent crude for June delivery LCOc1 was up 96 cents, or 1.42 percent, at $68.54 a barrel by 0900 GMT, having risen 27 percent in the January-March period.U.S. West Texas Intermediate futures CLc1 rose 56 cents, or 0.93 percent, to $60.70 a barrel, after gaining 32 percent in the first quarter..

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Special Report 2–APR -2019

RECOMMENDATIONS GUARGUM5 TRADING STRATEGY: BUY GUARGUM APR ABOVE 8900 TGT 8915/8940/8960 SL BELOW 8840 SELL GUARGUM APR BELOW 8800 TGT 8785/8760/8740 SL ABOVE 8860

DHANIYA TRADING STRATEGY: BUY DHANIYA APRIL ABOVE 6900 TGT 6260/6310 SL BELOW 6170 SELL DHANIYA APRIL BELOW 6800 TGT 6080/6030 SL ABOVE 6200

NCDEX INDICES Index

Value

% Change

4100 6268 1936 4146.5 15440

-0.46 -1.72 -1.14 0.33 0.03

Jeera

3840

-0.42

Mustardseed Soy Bean Turmeric

3637 6238 6148

-0.55 0.64 0.29

Castor Seed Chana Coriander Cotton Seed Oilcake Guar Seed 10 MT

Global liquid fuels production was expected to exceed global consumption through 2020, the U.S. Energy Information Administration (EIA) said in its Short-Term Energy Outlook.EIA forecast that higher U.S. crude oil production growth and slightly lower global oil consumption will offset the short-term supply reductions. As a result, global petroleum liquids stocks increase and prices remain relatively flat.According to EIA's February Short-Term Energy Outlook (STEO), global liquid fuels inventories grew by an estimated 0.5 million barrels per day (b/d) in 2018, and will grow by 0.4 million b/d in 2019 and by 0.6 million b/d in 2020.EIA expected U.S. crude oil production to average 12.4 million b/d in 2019 and 13.2 million b/d in 2020, with most of the growth from the Permian region of the state of Texas and New Mexico. When it comes to oil prices, EIA forecast Brent spot prices will average 61 U.S. dollars per barrel in 2019 and 62 dollars per barrel in 2020, compared with an average of 71 dollars per barrel in 2018.EIA expected that West Texas Intermediate (WTI) crude oil prices will average 8 dollars per barrel lower than Brent prices in the first quarter of 2019 before the discount gradually falls to 4 dollars per barrel in the fourth quarter of 2019 and through 2020. India's natural rubber imports in January declined 4.8% from a year earlier to 39,997 tonnes, the state-run Rubber Board said, as local consumption fell due to weak demand from tyre makers.The country's production last month eased 1.4 percent from a year ago to 72,000 tonnes, while consumption dropped 2.4 percent to 97,000 tonnes, the board said.India's imports between April to January jumped more than 30 percent from a year ago to 489,085 tonnes, it said.

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Special Report 2–APR -2019

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

69.4825 Yen

62.85

Euro

78.2925 GBP

91.1575

USD/INR TRADING STRATEGY: USD/INR BUY USDINR ABOVE 69.5 TGT 69.6/69.7 SL BELOW 69.3 SELL USDINR BELOW 69.4 TGT 69.3/69.2 SL ABOVE 69.2

GBP/INR TRADING STRATEGY: BUY GBPINR ABOVE 91.4 TGT 91.5/91.6 SL BELOW 91.2 SELL GBPINR BELOW 91.1 TGT 91/90.9 SL ABOVE 91.3

The Australian dollar and the Chinese yuan inched up on hopes Washington and Beijing were close to a trade deal after a bitter year-long tariff dispute.Fuelling such expectations was a report from the Wall Street Journal on Sunday that said the United States and China could reach a formal agreement at a summit around March 27 given progress in talks between the two countries. Aussie gained as much as 0.57 percent to $0.7118, before giving up some of its gains to $0.7085 AUD=D4 following soft business inventories and declines in job advertisements and dwelling approvals. data was seen as pointing to a weak reading in Australian GDP data due on Wednesday, prompted speculators to create new short positions," said Yukio Ishizuki, senior strategist at Daiwa Securities.But Ishizuki also said markets had gone too far in pricing in a downturn in the Australian economy."Interest rate futures are now pricing in a rate cut this year but the economy could turn out to be stronger than expected given recent strength in commodity prices. I'd bet the Aussie could easily rise to around $0.73-74," he said.The Reserve Bank of Australia will hold its policy meeting on Tuesday.The Chinese yuan ticked up 0.20 percent to 6.7030 to the dollar in offshore trade CNH= , edging near its 7-1/2-month high of 6.6737 hit last week.The yuan has been supported since late last month after Washington delayed its self-imposed March 1 deadline for raising tariffs on $200 billion worth of Chinese imports, citing progress in its trade talks with Beijing. While the trade optimism pushed the dollar lower against most Asian currencies, it helped erase the greenback's earlier losses against the safe-haven yen JPY= , which followed U.S. President Donald Trump's criticism about Federal Reserve monetary policy and a strong dollar. dollar traded at 111.96 yen JPY= , near a 10-week high of 112.08 on Friday. It had dipped to 111.75 yen after Trump's comments on the Fed. have a gentleman that likes a very strong dollar at the Fed...I want a strong dollar, but I want a dollar that's great for our country not a dollar that is so strong that it is prohibitive for us to be dealing with other nations," he told his supporters in a speech.

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Special Report 2–APR -2019

Date

Commodity/ Currency Pairs

29/03/19

NCDEX DHANIYA

APR

BUY

6340

29/03/19

NCDEX DHANIYA

APR

Sell

29/03/19

NCDEX GUARGUM5

MAR

29/03/19

NCDEX GUARGUM5

29/03/19

Contract Strategy

Entry Level

Stop Loss

Remark

6355/6370/64 00

6280

NOT EXECUTED

6250

6235/6220/61 90

6310

TARGET

BUY

8200

8215/8240/82 60

8260

TARGET

MAR

SELL

8150

8135/8120/80 80

8210

TARGET

MCX GOLD

MAR

BUY

33350

33400/33475

33250

NOT EXECUTED

29/03/19

MCX GOLD

MAR

SELL

32900

32800/32800

33

TARGET

29/03/19

MCX SILVER

MAR

BUY

40700

40750/40800

40500

NOT EXECUTED

29/03/19

MCX SILVER

MAR

SELL

40400

40300/40200

40600

NOT EXECUTED

Entry Level

Target

Stop Loss

Remark

Target

Date

Scrip

CASH/ FUTURE/ Strategy OPTION

29/03/19

NIFTY

FUTURE

SELL

10800

10750/10700

10900

TARGET

29/03/19

TITAN

FUTURE

BUY

1040

1045/1050

1030

TARGET

29/03/19

KSCL

FUTURE

SELL

410

405/400

420

TARGET

29/03/19

REPOHOME

CASH

BUY

325

330/335

315

TARGET

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Special Report 2–APR -2019

NEXT WEEK'S MAJOR U.S. ECONOMIC REPORTS

TIME (ET)

REPORT

PERIOD

ACTU FORECAS PREVIOUS AL T

THE GOVERNMENT SHUTDOWN WILL DELAY THE RELEASE OF SOME DATA THIS WEEK. MONDAY, APRIL 1 8:30 am

Retail sales* (new date)

Feb.

0.3%

0.2%

8:30 am

Retail sales ex-autos* (new date)

Feb.

0.4%

0.9%

9:45 am

Markit manufacturing PMI (final)

March

--

52.5

10 am

ISM manufacturing index

March

54.6%

54.2%

10 am

Construction spending

Feb.

-0.1%

1.3%

10 am

Business inventories* (new date)

Jan.

--

0.6%

TUESDAY, APRIL 2 8:30 am

Durable goods orders* (new date)

Feb.

-2.0%

0.3%

8:30 am

Core capex orders* (new date)

Feb.

--

0.8%

Varies

Motor vehicle sales

March

16.8mln

16.6mln

WEDNESDAY, APRIL 3 9:45 am Markit manufacturing index flashreport 8:15 am ADP employment

Nov.

9:45 am

Nov.

Markit services index flash

-March --

55.7 --

183,000

54.8

9:45 am

Markit services PMI (final)

March

--

54.8

10 am

ISM nonmanufacturing index

March

58.3%

59.7%

3/30

--

--

THURSDAY, APRIL 4 8:30 am

Weekly jobless claims

FRIDAY, APRIL 5 8:30 am

Nonfarm payrolls

March

173,000

20,000

8:30 am

Unemployment rate

March

3.8%

3.8%

8:30 am

Average hourly earnings

March

0.2%

0.4%

3 pm

Consumer credit

Feb.

--

$17 bln

*DELAYED BY GOVERNMENT SHUTDOWN

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Special Report 2–APR -2019

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Sachin Yadav

Digitally signed by Sachin Yadav DN: cn=Sachin Yadav c=IN o=Personal Reason: I am the author of this document Location: Date: 2019-04-02 09:17+05:30

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