Special report-06-august-2018-epic-rresearch

Page 1

Special Report 06-Aug-2018

Global markets at a glance US stocks advanced on Friday as upbeat earnings helped investors shrug off heightened trade anxieties and weakerthan-expected July jobs growth. For the week, the S&P 500 and the Nasdaq gained ground, up 0.8 percent and 1.0 percent, respectively, while the Dow was essentially flat. The S&P 500 notched its fifth straight weekly gain, its longest such streak of the year. The second-quarter reporting season nears its final stretch with 406 of the companies in the S&P 500 having reported, 78.6 percent of which came in above Street estimates, according to Thomson Reuters data. Asian stocks were steady on Friday, with gains from the tech-led rise on Wall Street capped by the latest exchange of trade threats between Beijing and Washington, while safe haven flows lifted the dollar to a two-week high. Investors also remain cautious ahead of the July US jobs report due later on Friday, which will give a reading on the health of the world's largest economy and possible clues about the pace of Federal Reserve interest rate rises. MSCI's broadest index of Asia-Pacific shares outside Japan inched down 0.03 percent. The index was down about 0.6 percent for the week, during which it slumped to a two-week high on Thursday on US-China trade tensions.The trade war between the world's top two economies intensified midweek after US President Donald Trump raised pressure on China by proposing a higher 25 percent tariff on $200 billion worth of Chinese imports. Previous day Roundup The Nifty50 after opening sharply higher extended rally as the day progressed and recouped all losses seen in the previous session to end at fresh record closing high on Friday.The index formed strong bullish candle on the daily candlestick charts. The renewed trade war tensions between world's largest economies US and China spooked the market on Thursday.

World Indices Index

Value

% Change

25,462.58

0.54

S&P500

2,826.75

0.06

NASDAQ FTSE100

7,413.50 7,659.10

0.16

22,561.23 27,867.39

0.16 0.69

DJI

NIKKEI HANG SENG

1.09

Top Gainers Company

CMP

Change

% Chg

Axis Bank

574.75

27.50

5.03

Vedanta

222.40

8.25

3.85

Yes Bank

373.20

11.40

3.15

GAIL

388.20

10.55

2.79

Lupin

886.00

21.15

2.45

CMP

Change

% Chg

Tech Mahindra Tata Motors Grasim Asian Paints

662.75 258.45 1,006.20 1,411.85

-6.25 -2.40 -8.00 -6.55

-0.93 -0.92 -0.79 -0.46

Hero Motocorp

3,250.55

-13.15

-0.40

Top Losers Company

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

ABBOTINDIA

7922.9

143.1

1.81

ADANIGREEN

66.55

3.3

4.96

AIAENG

1701.3

-1.3

-0.08

ASTRAZEN

1597.9

117.1

7.33

17

0.85

5

BALAXI

Stocks at 52 Week’s LOW The Nifty Bank index closed at 27,695.50, up 339.55 points on Friday. The important Pivot level, which will act as crucial support for the index, is placed at 27,521.47, followed by 27,347.43. On the upside, key resistance levels are placed at 27,796.27, followed by 27,897.04. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[19.90pts], Consumption[36.90pts],PSE[25.20pts],CPSE [22.90pts],Energy[102.95pts],FMCG[176.70pts],Auto [ 4 1 .6 5 pt s ],P h a rm a [7 6 . 1 0 pt s ], IT [9 6 .4 5 p ts ] ,M e ta l [53.10pts],Realty[1.60 pts], Fin Serv sector[176.70pts].

Symbol

ANKITMETAL DIAMONDYD GAMMNINFRA GAYAHWS GOENKA

Prev. Close

Change

%Chg

0.55 1130.05 1.2 3.2 0.25

0.05 -9.55 0 -0.15 0

9.09 -0.85 0 -4.69 0

Indian Indices Company

CMP

Change

% Chg

NIFTY

11360.80

116.10

1.03

SENSEX

37556.16

391.00

1.05

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Special Report 06-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] RALLIS [CASH] The particular script is showing strength around its nearest resistance level of 204.90, after breaking this level its can go up to level of 212 in 2-3 trading session here we advice you to make a long position around the levels of 205-206 for the targets of 210-215 with stoploss of 202.

MACRO NEW  Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 39 points or 0.34 percent. Nifty futures were trading around 10,436level on the Singaporean Exchange.  Beijing warned it was prepared to impose new tariffs on $60 billion worth of US goods if Washington ups the ante in the escalating US-China trade war. The commerce ministry issued a statement saying the new duties would be applied if Washington pulled the trigger on President Donald Trump's threat to raise tariffs on $200 billion worth of Chinese goods.Washington and Beijing are locked in battle over American accusations that China's export economy benefits from unfair policies and subsidies, as well as theft of American technological know-how. Trump has threatened to slap tariffs on virtually all of China's exports to the United States in the tit-for-tat trade conflict.  Bank credit grew by 12.44 percent to Rs 86,13,164 crore in the fortnight to July 20, according to data recently published by the Reserve Bank 0f India (RBI). In the year-ago period, bank credit had stood at Rs 76,59,898 crore.  The foreign exchange reserves declined by USD 950.9 million to USD 404.192 billion in the week to July 27, on account of a fall in the foreign currency assets, the RBI said. In the previous week, the reserves had increased a marginal USD 67.7 million to USD 405.143 billion.

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Special Report 06-Aug-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

Open Interest

BANKNIFTY

CE

27,900

0.05

3,09,594

8,26,760

BANKNIFTY

CE

27,300

54.5

2,83,508

26,640

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

BANKNIFTY

Divis Lab: Q1 profit jumps to Rs 266.2 crore versus Rs 176.5 crore; revenue rises to Rs 995.3 crore versus Rs 821.20 crore (YoY).

Jaiprakash Power Ventures: Q1 profit at Rs 4.14 crore versus loss of Rs 19.02 crore; revenue increases Rs 1,083 crore versus Rs 995.92 crore (YoY).

NIFTY FUTURE

2,83,500

LTP

Traded Volume (Contracts)

Open Interest

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

BANKNIFTY

PE

26,900

0.05

73,805

RELIANCE

PE

1,140 15.05

3,649

TATAMOTORS PE

250

5.5

3,448

RELIANCE

PE

1,160

22

3,307

TATASTEEL

PE

540

15.4

3,178

Last week Nifty again made new all time high of 11390 19,90,050 and finished at 11360 again PSU Bank, NBFC, Capital 2,59,520 Good and FMCG share support Nifty for maintain up trend. According to daily chart Nifty moving in rising 13,42,000 channel line pattern so we can see volatile in next week 39,87,000 here the gap of channel is 270 points so be cautious and 9,52,000 buy Nifty in decline with strict stop loss of below 11100 for the target of 11450. 7,63,920

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

11414.00

11387.00

11340.00

11313.00

11266.00

BANKNIFTY

27897.00

27796.00

27622.00

27521.00

27347.00

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Special Report 06-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 38300 TGT 38450 38750 SL BELOW 38100 SELL SILVER SEP FUT BELOW 37000 TGT 37850 37550 SL ABOVE 38200

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 06-Aug-2018

RECOMMENDATIONS GUARGUM5 BUY GUARGUM OCT FUT ABOVE 9800 TGT 9850 9950 SL BELOW 9730 SELL GUARGUM OCT FUT BELOW 9650 TGT 9600 9530 SL ABOVE 9720

NCDEX INDICES Index

Value

% Change

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

1608 4721 4249 5006 1751 4450

-0.06 0.28 0.24 -1.36 -3.37 -0.89

20365

-0.51

4125 3412 7180

0.1 -0.5 -0.11

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 5050 TGT 5080 5120 SL BELOW 5000 SELL DHANIYA AUG FUT BELOW 4990 TGT 5960 4860 SL ABOVE 5040

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 06-Aug-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

68.8300 Yen

61.7775

Euro

79.9675 GBP

89.7825

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 89.90 TGT 90.20/90.50 SL BELOW 89.60 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 06-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

Target

Stop Loss

Remark

5180

5240 5340

5100

SL TRIGGERED

SELL

4980

4900 4800

5060

TGT HIT

OCT

BUY

9750

9830 9930

9680

SL TRIGGERED

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

SL TRIGGERED

02/08/18

MCX SILVER

SEP

BUY

38100

38300 38600

02/08/18

MCX SILVER

SEP

SELL

37800

Date

Scrip

CASH/ FUTURE/ OPTION

Strategy

03/08/18

NIFTY

FUTURE

SELL

03/08/18

SUNTV

FUTURE

03/08/18

GRANULES

03/08/18

IDEA

Contract Strategy

Entry Level

37900

OPEN

37600 37300

38000

SL TRIGGERED

Target

Stop Loss

Remark

11330-320

11250-11180

11400

SL TRIGGERED

BUY

796.40

800-805

795

NOT EXECUTED

FUTURE

BUY

105-106

109-113

102

NOT EXECUTED

CASH

BUY

53-53.50

56-60

51

NOT EXECUTED

Entry Level

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Special Report 06-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

THURSDAY, AUG. 9

THURSDAY, AUG. 9

WEDNESDAY, AUG. 8 None scheduled THURSDAY, AUG. 9

THURSDAY, AUG. 9

THURSDA Y, AUG. 9

THURSDAY, AUG. 9

8:30 am 8:30 am

Producer price index

July

0.3%

0.3%

10 am

Wholesale inventories

June

--

0.6%

FRIDAY, AUG. 10

FRIDAY, AUG. 10

FRIDAY, AUG. 10

FRIDAY, AUG. 10

FRIDAY, AUG. 10

8:30 am

Consumer price index

July

0.2%

0.1%

--

-$43 bln

4.0%

2.0%

FRIDAY, AUG. 10

8:30 am 2 pm

Federal budget

8:30 am

Gross domestic product

July Q2 Disclaimer

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