Special Report 02-Aug-2018
Global markets at a glance The S&P 500 and Dow slipped on Wednesday as gains in Apple shares were offset by a drop in energy and industrial companies, while the U.S. Federal Reserve remained on course for an expected interest rate hike in September.Technology companies pushed the Nasdaq higher.The central bank left rates unchanged, and reiterated its view that the US economy is growing and the job market is strengthening, and inflation continues to hover near the Fed's 2 percent target since it last raised rates in June.While technology stocks pulled the Nasdaq into positive territory and gave a boost to the S&P and the Dow, trade worries intensified on news that the Trump administration is considering hiking tariffs to 25 percent from 10 percent on $200 billion worth of Chinese imports.China called the move "blackmail," and warned it would respond in kind. Asian stocks were little changed on Thursday, with sentiment fragile after the latest escalation in Sino-US trade war while global bond markets were rattled by Washington's increased borrowing and Japan's new tolerance for higher yields.MSCI's broadest index of AsiaPacific shares outside Japan was off less than 0.1 percent in early trade while Japan's Nikkei was flat.On Wednesday, the US administration increased pressure on China for trade concessions by proposing a higher 25 percent tariff on USD 200 billion worth of Chinese imports. The trade issues will continue to weigh on markets. On the whole, Japanese corporate earnings have not been bad but many companies remain cautious as they need to see the impact of trade frictions. Previous day Roundup After a flat open and rangebound trade for the most part of the day, the Nifty50 closed mildly lower Wednesday. This was after the Reserve Bank of India (RBI) raised the repo rate by 25 basis points to 6.5 percent while keeping the policy stance neutral. The fall in the market is on account of mild profit booking after rising 400-points in the previous four consecutive sessions. The index formed 'Spinning Top' kind of pattern on the daily candlestick charts. Overall it was a volatile session for the market. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[8.25pts], Consumption[-12.95pts],PSE[36.30pts],CPSE [27.55pts],Energy[95.10pts],FMCG[167.85pts],Auto[ 83.65pts],Pharma[122.30pts],IT[91.55pts],Metal[ 15.10pts],Realty[0.50 pts], Fin Serv sector[-72.65pts].
World Indices Index
Value
% Change
25,415.19
0.43
S&P500
2,815.75
-0.04
NASDAQ FTSE100
7,261.75 7,748.76
0.54
22,706.90 28,576.41
0.68 -0.03
DJI
NIKKEI HANG SENG
0.62
Top Gainers Company
CMP
Change
% Chg
Coal India
270.65
9.55
3.66
Lupin
844.20
19.80
2.40
Bharti Infratel
293.25
6.60
2.30
Dr Reddys Labs
2,175.70
47.90
2.25
TCS
1,976.50
36.30
1.87
CMP
Change
% Chg
208.00 53.55 9,341.60 27,298.70
-5.40 -1.30 -178.95 -499.85
-2.53 -2.37 -1.88 -1.80
218.20
-4.00
-1.80
Top Losers Company
Hindalco Idea Cellular Maruti Suzuki Eicher Motors Vedanta
Stocks at 52 Week’s HIGH Symbol
Prev. Close
Change
%Chg
60.4
3
4.97
ASTRAZEN
1530.65
67.35
4.4
BAJAJFINSV
6977.3
-4.85
-0.07
BATAINDIA
908.9
35.1
3.86
BHARATFIN
1214.55
-3.55
-0.29
ADANIGREEN
Stocks at 52 Week’s LOW Symbol
ABGSHIP DIAPOWER GAMMNINFRA GAYAHWS GOENKA
Prev. Close
Change
%Chg
5.4 2 1.2 3.5 0.25
0.05 0.1 0 -0.15 0
0.93 5 0 -4.29 0
Indian Indices Company
CMP
Change
% Chg
NIFTY
11346.20
-10.30
-0.09
SENSEX
37521.62
-84.96
-0.23
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Special Report 02-Aug-2018
RECOMMENDATIONS [FUTURE] 1.SUNTV [FUTURE ] The particular script has rebounded from its support level of 763 and can break its crucial resistance level of 785 ,now it has closed above it with a good volume so today we can witness a good breakout since it is consolidating around its crucial resistance level around 796.40 here we advice you to make a long position around 800-805 for the target of 815830 with stoploss of 795
2.ONGC [FUTURE]
From the daily chart its clear that the particular script formed a Bullish Candle on daily scale and supports are gradually shifting higher. Now it has to continue to hold above 167 zones to extend its move towards 172-180 so we advice you to buy around the levels of 167-168 for the target of 172-176 with stoploss below 164.
STOCK RECOMMENDATION [CASH] KPIT [CASH] Due to the strength in the IT sector KPIT has made its fresh high after breaking its previous high of 305, now it is at trading at its 52 weeks high today we can expect some correction upto its previous high of 305 buy on correction would be good choice to make a long position,so we advice to buy around the levels of 305-306 for the target of 310-315 with a stoploss below 300.
MACRO NEW Trends on SGX Nifty indicate a flat to positive opening for the broader index in India, a rise of 3.5 points or 0.03 percent. Nifty futures were trading around 11,362-level on the Singaporean Exchange. The US Federal Reserve kept interest rates unchanged on Wednesday but characterized the economy as strong, keeping the central bank on track to increase borrowing costs in September.The Fed said economic growth has been rising strongly and the job market has continued to strengthen while inflation has remained near the central bank’s 2 percent target since its last policy meeting in June, when it raised rates. The benchmark 10-year US Treasury note’s yield reached its highest in 2-1/2 months on Wednesday, breaking above 3 percent after the government said it intended to boost borrowing in the bond market in the coming quarter to fund spending and debt obligations. Oil prices fell about 2 percent on Wednesday as a surprise increase in US crude stockpiles fed concerns about global oversupply, while investors worried that trade tensions could hit energy demand.Brent crude futures fell USD 1.82 to settle at USD 72.39 a barrel, a 2.5 percent loss. US West Texas Intermediate (WTI) crude futures fell USD 1.10 to settle at USD 67.66 a barrel, a 1.6 percent loss.
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Special Report 02-Aug-2018
STOCKS IN NEWS
MOST ACTIVE CALL OPTION Symbol
Optio Strike n Price Type
LTP
Traded Volume (Contracts)
Open Interest
BANKNIFTY
CE
27,600
51
1,45,352
4,70,240
NIFTY
CE
11,400 110.25
1,10,835
BANKNIFTY
CE
28,300
1.5
1,09,575
2,70,080
TATAMOTORS CE
270
8.1
13,109
37,87,500
TATAMOTORS CE
280
4.8
13,049
42,30,000
TATAMOTORS CE
300
1.65
9,875
40,98,000
TATAMOTORS CE
260 13.05
9,638
12,81,000
8,607
23,47,000
RELIANCE
CE
1,200
26.6
MARUTIACTIVE PUT CE OPTION 9,000 111.5 5,823 MOST Symbol
Optio Strike n Price Type
LTP
Kotak Mahindra Bank approved issue of PNCPS on a private placement basis aggregating to an issue size of up to Rs 500 crore
Pidilite Q1: Profit up 6% at Rs 240.8 crore; Revenue up 20% at Rs 1834.1 crore.
27,20,550 NIFTY FUTURE
2,83,500
Traded Volume (Contracts)
Open Interest
BANKNIFTY
PE
27,500
72
5,53,354
7,10,160
BANKNIFTY
PE
27,600 121.95
4,75,559
5,09,640
BANKNIFTY
PE
27,400
39
4,02,658
6,23,840
TATAMOTORS PE
250
4.75
12,128
44,95,500
TATAMOTORS PE
240
2.7
8,404
32,25,000
TATAMOTORS PE
260
8.1
6,377
17,98,500
PE
9,000
95
4,818
65,475
TATAMOTORS PE
230
1.7
4,764
15,70,500
MARUTI
The index formed 'Spinning Top' kind of pattern on the daily candlestick charts.Overall it was a volatile session for the market. The Nifty50 after flat opening at 11,359.80 traded higher and hit fresh intraday record high of 11,390.55, but the rally gradually fizzled out in late morning deals amid rangebound trade and hit an intraday low of 11,313.55 after the RBI monetary policy announcement. The index closed 10.30 points lower at 11,346.20.here we advice to sell nifty future on rise around 11400-390 with stop loss of 11450 for the target of 11350-11300.
FII DERIVATIVES STATISTICS BUY
SELL
No. of Contracts
Amount in Crores
INDEX FUTURES
41366
3853.59
28435
2645.31
INDEX OPTIONS
860466
89152.00
862381
STOCK FUTURES
197027
13300.30
STOCK OPTIONS
104179
6989.77
OPEN INTEREST AT THE END OF THE DAY
No. of Amount in No. of Contracts Crores Contracts
Amount in Crores
NET AMOUNT
261608
22508.23
1208.2795
89258.36
615513
54353.45
-106.3634
195661
13258.68
1099735
81231.56
41.6211
104445
6968.43
90987
6830.51
21.3367 1164.8739
INDICES
R2
R1
PIVOT
S1
S2
NIFTY
11426.00
11386.00
11349.00
11309.00
11272.00
BANKNIFTY
37833.00
37677.00
37554.00
37398.00
37275.00
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Special Report 02-Aug-2018
RECOMMENDATIONS GOLD TRADING STRATEGY: BUY GOLD AUG FUT ABOVE 29750 TGT 29850 30000 SL BELOW 29650 SELL GOLD AUG FUT BELOW 29650 TGT 29550 29450 SL ABOVE 29750
SILVER TRADING STRATEGY: BUY SILVER SEP FUT ABOVE 38100 TGT 38300 38600 SL BELOW 37900 SELL SILVER SEP FUT BELOW 37800 TGT 37600 37300 SL ABOVE 38000
COMMODITY ROUNDUP Gold is widely advocated by financial analysts as one of the major safe harbors for worried investors as the world has to move from an international monetary system dominated by the US dollar to a multi-polar currency system.Gold will remain a crucial component of diversified portfolios, as a hedge against potential corrections across asset classes. It is liquid and has neither credit nor default risk. The inescapable conclusion is that the only viable alternative asset for official reserves is physical gold, as it alone has the requisite liquidity, correlation characteristics, and trust. Central banks seeking true risk diversification or insurance, therefore, should increase their gold holdings.Gold is almost never a ‘buy’ when it is both loved by the gold “community” and the cyclical backdrop is positive. It is almost always a ‘buy’ when it is hated by the gold “community” and the cyclical backdrop is counter, bleak and/or not inflationary.Data from the Commodity Futures Trading Commission showed speculators significantly expanded net short positions — bets the price will fall — to 26,400 contracts in the week to July 17, not far off the late 2015 record high. Oil prices fell about 2 percent on Wednesday as a surprise increase in US crude stockpiles fed concerns about global oversupply, while investors worried that trade tensions could hit energy demand. Brent crude futures fell USD 1.82 to settle at USD 72.39 a barrel, a 2.5 percent loss. US West Texas Intermediate (WTI) crude futures fell USD 1.10 to settle at USD 67.66 a barrel, a 1.6 percent loss. Oil prices rose for a second day on Wednesday after industry group data showed U.S. crude inventories fell more than expected last week, easing worries about oversupply that had dragged on markets in recent sessions.Brent crude LCOc1 was up 29 cents, or 0.4 percent, at $73.73 a barrel by 0035 GMT. The global benchmark settled 38 cents higher at $73.44 a barrel on Tuesday, after climbing as high as $74.U.S. West Texas Intermediate CLc1 rose 22 cents, or 0.3 percent, to $68.74, having settled the previous session up 63 cents, or nearly 1 percent.Reports that China will increase infrastructure spending also helped reduce concerns that U.S.-China trade tensions will dent the country's demand for oil. crude and fuel stockpiles dropped more than expected last week, industry group the American Petroleum Institute said on Tuesday.Crude inventories fell by 3.2 million barrels in the week to July 20 to 407.6 million barrels, compared with analyst expectations for a decrease of 2.3 million barrels.Distillate fuels stockpiles, which include diesel and heating oil, fell by 1.3 million barrels, compared with expectations for a 207,000-barrel gain.
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Special Report 02-Aug-2018
RECOMMENDATIONS GUARGUM5 BUY GUARGUM OCT FUT ABOVE 9750 TGT 9830 9930 SL BELOW 9680 SELL GUARGUM OCT FUT BELOW 9650 TGT 9580 9480 SL ABOVE 9720
NCDEX INDICES Index
Value
% Change
Barley Castor Seed Chana Coriander Cotton Seed Oilcake Guar Seed 10 MT
1607 4615 4190 5081 1785 4444
-0.19 -0.88 -0.71 -0.47 -2.57 -0.19
20045
-0.74
4120 3411 7210
-1.1 0.56 -0.85
Jeera Mustardseed Soy Bean Turmeric
USDA forecasts that China's soybean imports will increase to 100.5 MMT in MY18/19 from the estimated 97 MMT in MY17/18. This forecast, is 2.5 MMT lower than USDA's June forecast. Due to the combination of the moderate increase in domestic soybean production, together with the slowdown in growth of soybean meal use, a net growth of 3.5 MMT of soybean imports in MY18/19 is expected to meet the Chinese demand growth for protein meals. DHANIYA BUY DHANIYA AUG FUT ABOVE 5150 TGT 5200 5300 SL BELOW 5100 SELL DHANIYA AUG FUT BELOW 5050 TGT 5000 4900 SL ABOVE 5120
U.S. soybean exports to China continue to face strong competition from soybean exports from South America. Excessive soybean stocks and a fall in the soybean price in Brazil attributed to the 14.2 MMT of Brazilian soybean exports to China in the first half of MY17/18. This is significantly higher than the 5.2 MMT during the same period in MY16/17. Despite China's net growth of over 2 MMT of soybean imports in the first half of MY17/18, total soybean imports from the United States fell to 24.4 MMT in this period, down from the 31.6 MMT in the previous year. Chinese importers note that Brazilian soybeans have a one percent higher protein content than U.S. soybeans. Importers were previously willing to pay a slightly higher price for soybeans with a higher protein content, but with the drop in the price of Brazilian soybeans, exports are now surging As per official data, Ukraine supplied some 1 MMT of wheat to foreign markets in May 2017/18. This was down 10% from April (1.1 MMT) but up 2% from May 2016/17 (986.8 KMT). In July-May 2017/18, wheat exports totaled 16.3 MMT, or 3% less than in the same period in MY 2016/17. Ukrainian wheat shipments to the European Union and Indonesia grew substantially in the current season. In the period under review, exports to Indonesia increased to 2.1 MMT that was 31% more than in the whole of MY 2016/17.
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Special Report 02-Aug-2018
RBI Reference Rate Currency
Rate Currency
Rate
Rupee- $
68.6500 Yen
61.5175
Euro
80.3975 GBP
90.3025
USD/INR BUY USDINR ABOVE 69.00 TGT 69.30/69.60 SL BELOW 68.70 SELL USDINR BELOW 68.00 TGT 67.70/67.40 SL ABOVE 68.30
GBP/INR BUY GBPINR ABOVE 90.50 TGT 90.80/91.10 SL BELOW 90.20 SELL GBPINR BELOW 90.20 TGT 89.90/89.60 SL ABOVE 90.60
The rupee retreated from early high levels to close down with a modest loss of 2 paise at 68.86 against the US currency on stray dollar demand from importers. The home currency initially reacted positively to the GST Council's decision to cut rates on several items and also tracking broad weakness in the dollar. It touched a high of 68.65 in early trade before slipping back toward the tail-end trade. Consistent unwinding by foreign investors on growing expectations of Fed rate hike kept home currency under pressure, a dealer said. Overall, forex sentiment remained fragile in the face macro challenges coupled with tense trade relations between the US and major economies and expectations that the Federal Reserve will raise interest rates further this year. The Indian rupee had hit its life-time low of 69.13 a dollar last Friday. Oil prices too inched up today after tensions worsened between Iran and the US. The Brent crude rising 66 cents to USD 73.73 per barrel and West Texas Intermediate gaining 27 cents to USD 68.53 per barrel. Foreign investors remained net investors in stock markets as they bought equities worth Rs 259 crore on net basis today. Domestic bourses maintained their bullish momentum for the second-straight session with the flagship BSE Sensex ending at a historic closing high driven by optimistic corporate earnings as well as strong buying from investors. The rupee resumed higher at 68.70 against weekend close of 68.84 at the Interbank Foreign Exchange (forex) market on increased selling of the American currency by exporters and banks. The local currency dropped to a low of 68.87 before settling at 68.86, showing a loss of 2 paise. The Financial Benchmarks India private limited (FBIL), meanwhile, fixed the reference rate for the dollar at 68.7040 and for the euro at 80.5619. The bond market also witnessed fresh selling and the 10-year benchmark yield end at higher at 7.81 per cent. The bond market also witnessed fresh selling and the 10-year benchmark yield end at higher at 7.81 per cent. In the cross currency trade, the rupee continued to lose ground against the pound sterling to finish at 90.50 per pound from 89.80 and dropped against the euro to end at 80.68 as compared to 80.25. It also slumped further against the Japanse yen to close at 62.00 per 100 yens from 61.26 earlier.
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Special Report 02-Aug-2018
Date
Commodity/ Currency Pairs
31/07/18
NCDEX DHANIYA
AUG
BUY
31/07/18
NCDEX DHANIYA
AUG
31/07/18
NCDEX GUARGUM5
31/07/18
Target
Stop Loss
Remark
5180
5240 5340
5100
TGT HIT
SELL
4980
4900 4800
5060
NOT EXECUTED
OCT
BUY
9150
9370 9520
9170
TGT HIT
NCDEX GUARGUM5
OCT
SELL
9150
9250 9400
9050
NOT EXECUTED
31/07/18
MCX GOLD
AUG
BUY
29900
30000 30200
29800
NOT EXECUTED
31/07/18
MCX GOLD
AUG
SELL
29780
29680 29480
29880
OPEN
31/07/18
MCX SILVER
SEP
BUY
38500
38700 39000
31/07/18
MCX SILVER
SEP
SELL
38200
Date
Scrip
CASH/ FUTURE/ OPTION
Strategy
31/07/18
NIFTY
FUTURE
31/07/18
JSWSTEEL
31/07/18
31/07/18
PTC
PIDILITEIND
Contract Strategy
Entry Level
38300
NOT EXECUTED
38000 37700
38400
TGT HIT
Entry Level
Target
Stop Loss
Remark
BUY
11280-90
11400-11600
11200
NOT EXECUTED
FUTURE
BUY
330-331
335-340
328
OPEN
FUTURE
BUY
79-79.30
85-90
76
OPEN
CASH
SELL
1123-1120
1100-1080
1135
CLOSED AT 1123.45
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Special Report 02-Aug-2018
NEXT WEEK'S MAJOR U.S. ECONOMIC REPORTS TIME (ET)
REPORT
PERIOD
ACTUAL
FORECAST
PREVIOUS
MONDAY, AUG. 6 11 am
Survey of consumer expectations
July TUESDAY, AUG. 7
10 am
Job openings
June
6.6 mln
3 pm
Consumer credit
June
$25 bln
WEDNESDAY, AUG. 8 None scheduled THURSDAY, AUG. 9
THURSDAY, AUG. 9
THURSDA Y, AUG. 9
THURSDAY, AUG. 9
THURSDAY, AUG. 9
THURSDAY, AUG. 9
8:30 am 8:30 am
Producer price index
July
0.3%
10 am
Wholesale inventories
June
0.6%
FRIDAY, AUG. 10
FRIDAY, AUG. 10
FRIDAY, AUG. 10
8:30 am
Consumer price index
July
FRIDAY, AUG. 10
FRIDAY, AUG. 10
FRIDAY, AUG. 10 0.1%
8:30 am 2 pm
Federal budget
8:30 am
Gross domestic product
July Q2 Disclaimer
4.0%
2.0%
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