Special report-03-august-2018-epic research

Page 1

Special Report 03-Aug-2018

Global markets at a glance US stocks rebounded on Tuesday, boosted by gains in industrial shares following reports of renewed trade negotiations between the United States and China. Both the S&P 500 and the Dow Jones Industrial Average posted their biggest monthly percentage gains since January, when markets hit peak levels. The markets were buoyed by a Bloomberg report that US Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He are exploring ways to cool down the tariff war brewing between the world's two largest economies.The trade-sensitive industrial sector led the S&P 500 and the Dow industrials higher, rising 2.1 percent a day after a broad sell-off in technology stocks pulled markets lower. Asian markets were mixed in morning trade on Friday as investors weighed gains from the optimism for technology shares on Wall Street and the elevated trade tensions between China and the U.S.Apple (NASDAQ:AAPL) made headlines as it rose 2.9% to close at $207.3 in the U.S. on Thursday and became the first U.S.-based company with a market value of $1 trillion. The company reported strong third-quarter earnings earlier this week.China-based PetroChina Co Ltd (HK:0857) reached that valuation in 2007 but slumped soon after a financial crisis sent oil prices down.So far, almost 400 companies listed on the S&P 500 reported earnings this season and about 85% of them beat analysts’ expectations, Bloomberg reported.In Asia, China’s Shanghai Composite and the Shenzhen Component were down 0.1% and 0.5% by 10:20PM ET (02:20 GMT). Chinese stocks continued to underperform their regional peers as trade concerns returned to focus this week. Previous day Roundup Bears finally and decisively took charge of Dalal Street Thursday with the Nifty50 extending early losses and breaking the psychological 11,300-mark on profit booking. The index closed sharply lower, forming 'Bearish Belt Hold' pattern on the daily candlestick chart. Weak global cues amid renewed trade war concerns dented market sentiment.The 50-share NSE Nifty after opening at 11,328.90 which was also an intraday high traded sharply lower to break the 11,300-mark and hit an intraday low of 11,234.95. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[-9.55pts], Consumption[-40.75pts],PSE[22.40pts],CPSE[2.35pts],Energy[-142.30pts],FMCG[-99.85pts],Auto[156.45pts],Pharma[122.95pts],IT[-126.75pts],Metal [7.75pts],Realty[-4.55 pts], Fin Serv sector[-130.95pts].

World Indices Index

Value

% Change

25,326.16

-0.03

S&P500

2,826.75

-0.06

NASDAQ FTSE100

7,385.25 7,575.93

-0.01

22,503.33 27,681.20

-0.04 -0.12

DJI

NIKKEI HANG SENG

-1.02

Top Gainers Company

CMP

Change

% Chg

864.85

20.65

2.45

2,227.85

52.15

2.40

Power Grid Corp

188.70

4.00

2.17

HPCL

292.50

5.15

1.79

54.40

0.85

1.59

CMP

Change

% Chg

373.00 1,280.20 9,142.40 1,168.35

-11.50 -32.50 -199.20 -24.00

-2.99 -2.48 -2.13 -2.01

911.30

-18.45

-1.98

Lupin Dr Reddys Labs

Idea Cellular

Top Losers Company

Bharti Airtel Kotak Mahindra Maruti Suzuki Reliance M&M

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

7666.55

238.45

3.11

63.4

3.15

4.97

AIAENG

1682.05

17.95

1.07

ASTRAZEN

1603.25

-12.25

-0.76

16.2

0.8

4.94

ABBOTINDIA ADANIGREEN

BALAXI

Stocks at 52 Week’s LOW Symbol

ABGSHIP ABMINTLTD ANKITMETAL ARENTERP BAGFILMS

Prev. Close

Change

%Chg

5.35 18.45 0.55 9.4 4.45

-0.2 -0.15 0 -0.45 -0.05

-3.74 -0.81 0 -4.79 -1.12

Indian Indices Company

CMP

Change

% Chg

NIFTY

11244.70

-101.50

-0.89

SENSEX

37165.16

-356.46

-0.95

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Special Report 03-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.GRANULES [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 105 zones to extend its move towards 110 so we advice you to buy around the levels of 105-106 for the target of 109-113 with stoploss below 102.

STOCK RECOMMENDATION [CASH] IDEA [CASH] The particular script has rebounded from its support level of 53,it has made a bullish harami candle at this level here buy on support would be a good strategy to follow so we advice you to buy around the levels of 53-53.50 for the possible target of 56-60 with a stoploss below 51.

MACRO NEW  Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 44.5 points or 0.39 percent. Nifty futures were trading around 11,322level on the Singaporean Exchange.  India plans to delay the imposition of retaliatory duties on US goods, the trade ministry said on Thursday, to allow time to resolve disputes that worsened after President Donald Trump imposed tariff hikes on steel and aluminium.In June, New Delhi, incensed by Washington's refusal to exempt it from these new tariffs, announced it would raise import tax on some US products including almonds, walnuts and apples. An Indian commerce ministry spokesman said the government proposed to put the new tariffs, which were due to go into effect on August 4, on hold.  Apple Inc became the first USD 1 trillion publicly listed US company on Thursday, crowning a decade-long rise fueled by its ubiquitous iPhone that transformed it from a niche player in personal computers into a global powerhouse spanning entertainment and communications.The tech company's stock jumped 2.8 percent to as high as USD 207.05, bringing its gain to about 9 percent since Tuesday when it reported Junequarter results above expectations and said it bought back USD 20 billion of its own shares.  Oil prices edged lower on Friday after strong gains the previous day, easing on persistent supply concerns as Russia increased production in July and Saudi Arabia cut the price of crude for its Asian customers.

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Special Report 03-Aug-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION

Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

BANKNIFTY

CE

27,900

0.05

3,09,594

BANKNIFTY

CE

27,300

54.5

2,83,508

BANKNIFTY

CE

28,000

0.05

1,13,728

12,32,040

NIFTY

CE

11,500 45.25

1,09,274

35,74,800

MARUTI

CE

9,500

73.5

5,092

2,10,375

TATAMOTORS CE

280

3.65

4,835

49,18,500

TATAMOTORS CE

270

6.45

4,833

39,43,500

1,200

19

4,377

25,40,000

RELIANCE

CE

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

Optio Strike n Price Type

LTP

Open Interest

8,26,760  SBI signs MoU with Reliance Industries 26,640 NIFTY FUTURE

2,83,500

Traded Volume (Contracts)

Open Interest The index closed sharply lower, forming 'Bearish Belt

BANKNIFTY

PE

27,600 222.7

1,14,606

8,480

NIFTY

PE

11,200

106

1,00,918

31,70,250

NIFTY

PE

11,300 146.1

91,484

19,90,050

BANKNIFTY

PE

26,900

0.05

73,805

2,59,520

RELIANCE

PE

1,140 15.05

3,649

13,42,000

TATAMOTORS PE

ONGC: Q1 consolidated profit rises 3.9 percent to Rs 6,143 crore versus Rs 5,915.2 crore; revenue increases 13.5 percent to Rs 27,212 crore versus Rs 23,970 crore (QoQ).

250

5.5

3,448

39,87,000

RELIANCE

PE

1,160

22

3,307

9,52,000

TATASTEEL

PE

540

15.4

3,178

7,63,920

Hold' pattern on the daily candlestick chart. Weak global cues amid renewed trade war concerns dented market sentiment.The 50-share NSE Nifty after opening at 11,328.90 which was also an intraday high traded sharply lower to break the 11,300-mark and hit an intraday low of 11,234.95.The index closed 101.50 points lower at 11,244.70, but the broader markets outperformed frontliners with the Nifty Midcap index rising 0.1 percent .Here we advice you to sell nifty future on correction around 11330-320 with stop loss of 11400 for the target of 11250-11180.

FII DERIVATIVES STATISTICS BUY

SELL

No. of Contracts

Amount in Crores

INDEX FUTURES

23823

2245.33

36240

3315.32

INDEX OPTIONS

897499

92652.94

864258

STOCK FUTURES

173281

11490.31

STOCK OPTIONS

77785

5458.77

OPEN INTEREST AT THE END OF THE DAY

No. of Amount in No. of Contracts Crores Contracts

Amount in Crores

NET AMOUNT

269923

23048.57

-1069.9895

89304.18

628751

54815.29

3348.7578

175646

11774.77

1105150

81313.23

-284.4572

78342

5477.64

97384

7282.45

-18.8705 1975.4406

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

11362.00

11303.00

11268.00

11209.00

11174.00

BANKNIFTY

27549.00

27452.00

27389.00

27292.00

27229.00

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Special Report 03-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 03-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

1606.5 4720 4239 5077 1811.5 4504

0.19 2.3 1.02 -0.14 1.17 1.42

Jeera

20470

1.99

4126 3429 7206

0.19 0.59 -0.11

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 03-Aug-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

68.8950 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 68.30 TGT 68.00/67.70 SL ABOVE 68.60

GBP/INR BUY GBPINR ABOVE 90.70 TGT 91.00/91.30 SL BELOW 90.40 SELL GBPINR BELOW 89.50 TGT 89.20/88.90 SL ABOVE 89.80

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 03-Aug-2018

Date

Commodity/ Currency Pairs

02/08/18

NCDEX DHANIYA

AUG

BUY

02/08/18

NCDEX DHANIYA

AUG

02/08/18

NCDEX GUARGUM5

02/08/18

Contract Strategy

Entry Level

Target

Stop Loss

Remark

5180

5240 5340

5100

SL TRIGGERED

SELL

4980

4900 4800

5060

NOT EXECUTED

OCT

BUY

9750

9830 9930

9680

TGT HIT

NCDEX GUARGUM5

OCT

SELL

9650

9580 9480

9720

NOT EXECUTED

02/08/18

MCX GOLD

AUG

BUY

29750

29850 30000

29650

OPEN

02/08/18

MCX GOLD

AUG

SELL

29650

29550 29450

29750

NOT EXECUTED

02/08/18

MCX SILVER

SEP

BUY

38100

38300 38600

02/08/18

MCX SILVER

SEP

SELL

37800

Date

Scrip

CASH/ FUTURE/ OPTION

Strategy

02/08/18

NIFTY

FUTURE

SELL

37900

OPEN

37600 37300

38000

NOT EXECUTED

Target

Stop Loss

Remark

11400-390

11350-11300.

11450

NOT EXECUTED

Entry Level

02/08/18

ONGC

FUTURE

BUY

167-168

172-176

164

SL TRIGGERED

02/08/18

SUNTV

FUTURE

BUY

800-805

815-830

795

OPEN

02/08/18

KPIT

CASH

BUY

305-306

310-315

300

CLOSED AT 1123.45

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Special Report 03-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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