Special report-06-dec-2018-epic-research

Page 1

Special Report

06-Dec-2018

Global markets at a glance

World Indices

US President Donald Trump called on the Organization of the Petroleum Exporting Countries and its allies not to cut oil production next year, saying it would trigger higher oil prices worldwide."Hopefully OPEC will be keeping oil flows as is, not restricted. The World does not want to see, or need, higher oil prices!" Trump wrote in a tweet ahead of the group's meeting this week to discuss possible cuts.

Index

Value

% Change

DJI

25113

+0.27

S&P500

2700

-3.24

NASDAQ

7158

-3.95

FTSE100

7022

-0.56

22036 27260

-2.44 +0.29

NIKKEI HANG SENG

OPEC meets in Vienna on December 6 to weigh production and will hold talks with allies such as Russia. Official US government oil production and inventory data are also due on December 6. Saudi Arabia, OPEC's de facto leader, has pressed for steep output reductions but has faced pressure from Trump to keep oil flows steady to keep prices low, rather than reduce inventory.

Top Gainers

US stock futures tumbled on Thursday and Asian markets followed after Canadian authorities arrested a top executive of Chinese tech giant Huawei Technologies, fanning fears of further tensions between China and the United States.

HDFC Bank

PREVIOUS DAY ROUNDOFF The Indian equity markets witnessed a volatile trading session on Wednesday with heavy selling pressure witnessed across-the-board. A selloff in global equities on Tuesday added to the sell-off in the markets even as Indian investors awaited the outcome of the RBI policy meet. The Reserve Bank of India (RBI) kept the key repo rates unchanged while maintaining its "calibrated tightening" stance.Nifty ended the day 86 points lower at 10,782, while Bank Nifty closed down 174 points at 26,519. Barring Nifty IT, all sectoral indices closed in the red with Nifty Metal being the worst-performer and closing 3.68% lower.Sun Pharma continued to face relentless selling, which led to the market cap of the company dropping below the Rs1 lakh cr-mark. The pharma major's stock ended ~6.8% . Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[-1.99pts], Consumption[-0.79pts],PSE[-1.97pts],CPSE[-2.02pts],Energy [-0.34pts],FMCG[-0.58pts],Auto[-2.32pts],Pharma[2.54pts],IT[+0.04pts],Metal[-3.68pts],Realty[-0.61pts], Fin Serv sector[-0.27pts].

Company

CMP

Change

% Chg

HUL

1,848.10

40.45

2.24

HDFC

1,973.30

33.85

1.75

HCL Tech

1,051.05

14.8

1.43

258.35

3.5

1.37

2,099.20

13.65

0.65

CMP

Change

% Chg

412.95 221.35 517.7 198.4 169.2

-29.95 -12 -20.5 -7.8 -6.55

-6.76 -5.14 -3.81 -3.78 -3.73

Bharti Infratel

Top Losers Company

Sun Pharma Hindalco Tata Steel Vedanta Tata Motors

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

33.1

1.65

4.98

FILATEX

57

1.05

1.84

ICICILIQ

999.99

0

0

1000.01

0

0

1869.4

50.6

2.71

Prev. Close

Change

%Chg

ABGSHIP

2.5

0.05

2

ADHUNIK

2.6

0.1

3.85

39.05 2.5 4

-1.95 0 -0.2

-4.99 0 -5

ELECTROSL

LIQUIDETF VINDHYATEL

Stocks at 52 Week’s LOW Symbol

AIFL ALCHEM AMTEKAUTO

Indian Indices Company

NIFTY SENSEX

CMP

Change

% Chg

10782.9

-86.6

-0.8

35884.41

-249

-0.69

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Special Report

06-Dec-2018

RECOMMENDATIONS [FUTURE] 1. DCB BANK (FUTURE ) On Daily chart we have seen that stock near its support level, expectation it will broke its suppoet level. . Fresh selling we have seen in last trading session . After analysis of derivative data its indicate that traders view is to sell the stock . Our recommendation is also sell the stock in the range of 150-151 target 148/147 Sl 153

STOCK RECOMMENDATION [CASH] DCB BANK On Daily chart we have seen that stock near its support level, expectation it will broke its suppoet level. . Fresh selling we have seen in last trading session . After analysis of derivative data its indicate that traders view is to sell the stock . Our recommendation is also sell the stock in the range of 150-151 target 148/147 Sl 153

MACRO NEWS 

Gross domestic product (GDP) growth slowed down to 7.1 percent in the second quarter of the current fiscal after four consecutive quarters of acceleration. This was mainly on account of slowing private consumption and a sharp drop in net exports. On the supply side, the growth of gross value added (GVA) at basic prices decelerated to 6.9 percent during the same period reflecting moderation in agricultural and industrial activities.

US stocks closed lower in a last trading session on Friday as the energy sector tumbled on continued weakness in oil prices, and the benchmark S&P 500 confirmed its second correction of 2018.The three major US indexes all fell well over 3 percent for the week, with the Dow industrials and the Nasdaq posting their biggest weekly percentage declines since March.

Country's third largest software company HCL Technologies and NBFC major Bajaj Finance will be included in the 30-share BSE Sensex effective December 24, 2018.Wipro and Adani Ports will be excluded from the index on the same day.

2. DIVI’S LAB [FUTURE] On Daily chart we have seen that stock close above its pivot support level . Fresh Buying we have seen in last trading session . After analysis of derivative data its indicate that traders view is to Buy the stock . Our recommendation is also Buy the stock in the range of 1492 target 1498/1510 Sl 1480

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Special Report

06-Dec-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION Symbol

Optio Strike n Price Type

LTP

BANKNIFTY

CE

26,800

24.5

8,61,898

BANKNIFTY

CE

26,700

45.8

8,43,056

BANKNIFTY

CE

27,000

7.65

7,86,041

SUNPHARMA

CE

460

8.75

6,083

21,38,400

RELIANCE

CE

1,180

25.7

5,716

8,12,000

SUNPHARMA

CE

500

RELIANCE

CE

1,160

RELIANCE

CE

1,200

MARUTIACTIVE PUT CE OPTION 9,000 MOST

Traded Volume (Contracts)

Open Interest

BHEL's Rs 1,628-cr buyback offer to open on December 10,91,240 13 7,84,760 Elecon Engineering board to consider raising Rs 150 17,79,080 crore via NCD on December 10 NIFTY FUTURE

42,19,600 Nifty 50 on Tuesday the flat line for a greater part of the session, equity benchmarks have ended in the Red. The 34.8 5,367 7,22,500 Nifty failed to close above 10,900, thought. Our 18.4 5,365 11,92,500 recommendation is to sell the nifty future in range of 10790 Target 10750 /10720 SL 10830 . Sell on rise 111.5 5,823 2,83,500 strategy follow. 3.15

5,530

Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

Open Interest

BANKNIFTY

PE

26,500

66.4

9,20,625

10,20,100

BANKNIFTY

PE

26,400 38.55

7,31,216

6,58,280

BANKNIFTY

PE

26,300

22.9

6,25,623

6,41,900

SUNPHARMA PE

400

15

6,756

23,22,100

PE

1,140

22

4,709

4,77,500

SUNPHARMA PE

420

22.7

4,105

7,44,700

ASHOKLEY

PE

100

3.35

3,833

37,96,000

RELIANCE

PE

1,120

15.8

3,830

3,10,500

RELIANCE

PFC to acquire govt's stake in REC for Rs 15k crore

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

64832

4680.02

70832

4847.81

459747

35146.17

-167.7884

INDEX OPTIONS

1448606

88832.54

1422548

87010.61

1053228

76767.14

1821.932

STOCK FUTURES

439701

24575.05

433045

24099.84

1473795

85741.19

475.2068

STOCK OPTIONS

154804

8739.18

156774

8865.47

176312

10446.71

-126.2875 2003.0629

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

10856.97

10819.93

10783.97

10746.93

10710.97

BANKNIFTY

26713.8

26616.7

26530.2

26433.1

26346.6

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Special Report

06-Dec-2018

RECOMMENDATIONS GOLD TRADING STRATEGY: BUY GOLD ABOVE 30925 TGT 30975 31000 SL BELOW 30820 SELL GOLD BELOW 30600 TGT 30500 30450 SL ABOVE 30700

COMMODITY ROUNDUP Gold prices were tepid on Wednesday pressured by a robust dollar after a senior U.S. Federal Reserve official reaffirmed the need for a further increase in interest rates, making bullion more expensive for holders of other currencies. Fed Vice Chair Richard Clarida said on Tuesday the central bank should continue to gradually raise interest rates, but it was "especially important" to monitor economic data as monetary policy was getting close to a neutral stance. strength of the U.S. dollar has been bad for gold, while the Fed is little more bullish about interest rates," said John Sharma, an economist with National Australia Bank (NAB).Prospects of higher U.S. interest rates are negative for dollar-priced gold as they raise the opportunity cost of holding the bullion.

SILVER TRADING STRATEGY: BUY SILVER ABOVE 36150 TGT 36220 36380 SL BELOW 36000 SELL SILVER BELOW 36000 TGT 35950/35870 SL ABOVE 36150

Oil rose further above $60 a barrel on Wednesday, supported by expectations that OPEC and its partners will next week decide to curb supply and helped by a drop in North Sea output. The Organization of the Petroleum Exporting Countries plus Russia and other allies meet on Dec. 6-7. Producers are discussing a supply curb of 1 to 1.4 million barrels per day and possibly more, OPEC delegates have told Reuters. crude LCOc1 , the global benchmark, was up 53 cents at $60.74 a barrel at 0919 GMT and traded as high as $61.27.U.S. crude CLc1 added 41 cents to $51.97. Palm oil futures in Malaysia recovered from a more than three-year low on Wednesday, helped by a weaker ringgit but soft demand and high inventory levels kept a lid on prices.Palm touched its lowest since August 2015 on Tuesday, falling 4.4 percent over three consecutive sessions. The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange rebounded by 2.4 percent to 2,014 ringgit ($479.75) per tonne by closing time on Wednesday.Palm futures are traded in ringgit and any weakness in the currency makes them cheaper for holders of other currencies.The ringgit edged lower for a second day on Wednesday, hitting its lowest in more than a year against the dollar.But the trader said palm was likely to struggle .

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Special Report

06-Dec-2018

RECOMMENDATIONS GUARGUM5 TRADING STRATEGY: BUY GUARGUM DEC ABOVE 8890 TARGET 8905/8915/8930 SL 8840 SELL GUARGUM ABOVE DEC 8660 TARGET 8645/8630/8600 SL 8600

NCDEX INDICES Index

Value

% Change

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

1818 5692 4601 6781 1874.5 4388

-0.17 -2.85 -0.67 -0.19 -0.88 -1.16

Jeera

18715

-1.66

3968 3315 6426

-0.05 -0.3 -0.75

Mustardseed Soy Bean Turmeric

DHANIYA TRADING STRATEGY: BUY DHANIYA DEC ABOVE 6790 TARGET 6805/6830/6845 SL 6720 SELL DHANIYA DEC ABOVE 6700 TARGET 6680/6660/6640 SL 6780

The Agriwatch Agri Commodities Index fell 1.07 per cent to 109.53 during the week ended Nov 24, 2018 from 110.71 the previous week due to a sharp fall in prices of potato and onion. Sugar, pulses and edible oils also declined while cereals and cotton gained. The base for the Index and all sub-Indices is 2014 (= 100). Six of the nine commodity group sub-Indices and 17 of the 29 individual commodity sub-Indices ended lower during the week. Oil prices on Monday clawed back some losses from a nearly 8 per cent plunge the previous session, with Brent jumping back above $60 per barrel, but sentiment remained weak amid a broad sell-off in financial markets in past weeks. Front-month Brent crude oil futures rose $1.31, or 2.2 per cent, to $60.11 per barrel by 0643 GMT. The gains partly made up for Friday's selloff, which traders have already dubbed 'Black Friday'. Reacting to Friday's falls in Brent and WTI, China's Shanghai crude futures on Monday fell by 5 per cent, hitting their daily downside-limit. The downward pressure comes from surging supply and a slowdown in demand growth which is expected to result in an oil supply overhang by next year. Australia-based MoooFarm Monday said it will train two lakh Indian dairy farmers by 2020 to develop their skills in areas like cattle nutrition with a view to increase farmers' income by at least 20 per cent. MoooFarm will train the farmers through UDAY, a skill development firm, which is its partner in India. The firm said it will also launch a hashtag called #TheColorofMilk on the occasion of National Milk Day, asking people to find the purity of milk. "Our master trainers are providing content to farmers for scaling up, which is being delivered through village-level entrepreneurs. Our target states include Uttar Pradesh, Madhya Pradesh, Rajasthan, Andhra Pradesh, Haryana .

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Special Report

06-Dec-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

70.45 Yen

62.04

Euro

79.83 GBP

89.6539

USD/INR TRADING STRATEGY: USD/INR BUY USDINR NOV ABOVE 70.5 TGT 70.6 70.7 SL 70.25 SELL USDINR NOV BELOW 70.10 TGT 70 69.8 SL 70.30

GBP/INR TRADING STRATEGY: BUY GBPINR NOV ABOVE 90 TGT 90.2 90.4 SL 89.8 SELL GBPINR NOV BELOW 88.95 TGT 88.85 88.75 SL 89.20

The dollar was trading at two-week highs against a currency basket on Wednesday as markets awaited fresh signals from the Federal Reserve on interest rates and developments in the U.S.-China trade war remained in focus.The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, edged up 0.1% to 97.35 by 04:25 AM GMT (09:25 AM GMT), the most since Nov. 13.Investors were looking ahead to a speech by Fed Chairman Jerome Powell later in the day and the minutes of the U.S. central bank’s November meeting, due to be released on Thursday. Markets are hoping for fresh indications on the future path of interest rate increases. The Fed is widely expected to raise rates for a fourth time this year at its upcoming meeting in December and has indicated that it may raise rates three more time in 2019.But dovish sounding comments by some policymakers in recent weeks have raised the prospect that the Fed may slow the pace of future rate hikes amid concerns over the outlook for the global economy and ongoing global trade tensions.On Tuesday, U.S. President Donald Trump once again criticized Powell, whom he picked last year to lead the bank, and the Fed’s rate hikes, which he said were harming the economy.Also Tuesday, Fed Vice Chair Richard Clarida backed further rate hikes, but said the tightening path would be data dependent.Market watchers were also looking ahead to the upcoming G20 summit in Buenos Aires later this week, where Trump and his Chinese counterpart, Xi Jinping, are scheduled to discuss trade. Investors are hoping that talks could lead to a ceasefire in the trade war.Trump said earlier this week that it was "highly unlikely" he would accept China's request to hold off a planned increase in tariffs due to take effect in January. The Euro US Dollar (EUR/USD) exchange rate dipped today, and is currently trading at $1.1274, after the release of Germany’s Gfk consumer confidence survey showed a decrease for December.

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Special Report

06-Dec-2018

Date

Commodity/ Currency Pairs

05/12/18

NCDEX DHANIYA

DEC

BUY

6790

05/12/18

NCDEX DHANIYA

DEC

Sell

05/12/18

NCDEX GUARGUM5

DEC

05/12/18

NCDEX GUARGUM5

05/12/18

Contract Strategy

Entry Level

Stop Loss

Remark

6805/6830/68 45

6720

TARGET HIT

6700

6680/6660/66 40

6780

TARGET HIT

BUY

8890

8905/8915/89 30

8840

NOT EXECUTED

DEC

SELL

8660

8645/8630/86 00

8700

NOT EXECUTED

MCX GOLD

DEC

BUY

30925

30975/31000

30820

NOT EXECUTED

05/12/18

MCX GOLD

DEC

SELL

30600

30500/30450

30700

NOT EXECUTED

05/12/18

MCX SILVER

DEC

BUY

36150

36220/36380

36000

NOT EXECUTED

05/12/18

MCX SILVER

DEC

SELL

36000

35950/35870

36150

NOT EXECUTED

Entry Level

Target

Stop Loss

Remark

Target

Date

Scrip

CASH/ FUTURE/ Strategy OPTION

05/12/18

NIFTY

FUTURE

BUY

10940

10900/10850

11000

NOT EXECUTED

05/12/18

JUBILANT FOOD

FUTURE

BUY

1320-1325

1335/1340

1310

SL HIT

05/12/18

DIVIS LAB

FUTURE

BUY

1510

1520/1525

1500

NOT EXECUTED

05/11/18

JUBILANT FOOD

CASH

BUY

1320-1325

1335/1340

1310

SL HIT

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Special Report

06-Dec-2018

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

REPORT

PERIOD

ACTUAL

FORECAST

PREVIO US

MONDAY, DEC. 3 9:45 am

Markit manufacturing PMI

Nov.

--

55.4

10 am

Construction spending

Oct.

0.3%

0.0%

TUESDAY, DEC. 4

TUESDAY, DEC. 4

TUESDAY, TUESDAY, DEC. 4 DEC. 4

TUESDA TUESDAY, DEC. Y, DEC. 4 4

WEDNESD AY, DEC. 5

WEDNESDAY, DEC. 5

WEDNESD WEDNESDAY, WEDNESDAY, DEC. 5 AY, DEC. 5 DEC. 5

WEDNE SDAY, DEC. 5

8:15 am

ADP employment

Nov.

---

227,000

8:30 am

Productivity

Q3

2.3%

2.2%

9:45 am

Markit services PMI

Nov.

--

55.4

10 am

ISM nonmanufacturing index

Nov.

59.8%

60.3%

--

--

--

-THURSD AY, DEC. 6

10 am

Varies

8:30 am

10 am

9:45 am

9:45 am 2 pm

Quarterly services survey

Markit manufacturing index flash

Nov.

Markit Beigeservices book index flash

Nov.

Q3

--

55.7

--

54.8

THURSDAY THURSDAY, DEC. 6 , DEC. 6

THURSDA THURSDAY, DEC. 6 Y, DEC. 6

THURSDAY, DEC. 6

8:30 am

12/1

225,000

Weekly jobless claims

234,000

8:30 am 10 am

The

Factory orders

Oct.

-2.0%

0.7%

information and views in this report, our website & all the service we provide are believed to be reliable, but we do not accept any responsibility (or liability) for errors of fact or opinion. Users have the right to choose the product/s that suits them the most. Sincere efforts have 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 making investment decision. The report 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 future price performance. The information herein, together with all estimates and forecasts, can change without notice. Analyst 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 of the information is the acceptance of this disclaimer. All Rights Reserved. Investment in equity & bullion market has its own risks. We, however, do 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

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