Special report-07-august-2018-epic-research

Page 1

Special Report 07-Aug-2018

Global markets at a glance The three major US stock indexes closed higher on Monday as investors applauded a strong US earnings season with results from Berkshire Hathaway impressing and Facebook lifting Nasdaq after a report it was planning new services.The S&P edged closer to a record hit on January 26, closing within a percentage point of the all-time high for the first time since the current correction began.Investors were focused on robust corporate earnings and shrugged off worries about US tensions with countries including China and Iran.ranian President Hassan Rouhani dismissed a US call for talks on Monday, hours before Washington was due to impose new sanctions following Trump's decision to pull out of a 2015 agreement over Iran's nuclear programme.Also Kristina Hooper, global market strategist at Invesco in New York, said there were some signs China is "hunkering down and getting ready for a significant trade war• and that the impact could be more far-reaching than previously assumed.•Chinese state media on Monday lambasted US President Donald Trump's trade policies in an unusually personal attack, and sought to reassure investors anxious about China's economy as growth concerns battered its financial markets. Asian stocks were largely steady on Tuesday, with worries over the US-China trade conflict offsetting support from earnings-led gains on Wall Street.MSCI's broadest index of Asia-Pacific shares outside Japan was almost flat.Australian stocks dipped 0.2 percent. Previous day Roundup The Nifty 50 opened above the 11,400-level for the first time and maintained positive momentum throughout the session on August 6. However, it failed to hold on to opening levels, forming a small bearish candle in intraday trade, resembling a Spinning Top kind of a pattern on daily charts. The Nifty index opened the gap up and made a new life time high of 11,428 by surpassing recent high of 11,390 levels. However, it failed to hold half of the gains and witnessed some profit booking to decline from higher levels.The Nifty 50 after opening at 11,401.50 gained more strength to touch an intraday record high of 11,427.65, but it wiped out some gains in afternoon trade to hit the day's low of 11,370.60. The index closed 26.30 points higher at 11,387.10. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[18.05pts], Consumption[5.10pts],PSE[4.40pts],CPSE[1.60pts],Energy [113.30pts],FMCG[-202.95pts],Auto[47.50pts],Pharma[92.15pts],IT[-43.50pts],Metal[24.85pts],Realty[ -1.60 pts], Fin Serv sector[63.05pts].

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

8071

64

0.79

170.95

9.6

5.62

ADANIGREEN

69.85

3.45

4.94

APLLTD

589.5

4.5

0.76

BALAXI

17.85

0.85

4.76

ABBOTINDIA ABFRL

Stocks at 52 Week’s LOW Symbol

ABGSHIP AMTEKAUTO ANKITMETAL BSLIMITED DBCORP

Prev. Close

Change

%Chg

5.3 7.1 0.6 0.4 235.2

-0.15 0.35 -0.05 0.05 0.35

-2.83 4.93 -9.09 12.5 0.15

Indian Indices Company

CMP

Change

% Chg

NIFTY

11387.10

26.30

0.23

SENSEX

37691.89

135.73

0.36

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Special Report 07-Aug-2018

RECOMMENDATIONS [FUTURE] 1.SUNPHARMA [FUTURE ] The particular counter is showing a clear sign of reversal from its higer levels of 590 with stochastic momentum indicator giving a overbought signal, as per the candlestick pattern a bearish engluf candle is found around the reistance level of 590 sell on weakness would be good opportunity to grab so we advice to sell sunpharma around the levels of 582-580 for the targets of 570-560 with stoploss above 588

2.HINDPETRO [FUTURE]

The particular script has rebounded from its support level of 204 by making a spinning top candle which is reversal candle and breaked its crucial resistance level of 216.80 ,now it has closed above it with optimum volume so today we can witness a good upside movement here buy on high would be a good opportunity to trade. So we recommend you to buy hindpetro future around 218-219 target 225-230 with stoploss below 215.

STOCK RECOMMENDATION [CASH] EDELWEISS [CASH] 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 316 zones to extend its move towards 330 so we advice you to buy around the levels of 316-318 for the target of 325-332 with stoploss below 312.

MACRO NEW  Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 14.5 points or 0.13 percent. Nifty futures were trading around 11,444level on the Singaporean Exchange.  President Donald Trump’s top security adviser on Monday urged Iran to take up an offer of talks with the United States or suffer more pain from economic sanctions, but Iran’s president said Washington needed first to prove it can be trusted.“They could take up the president’s offer to negotiate with them, to give up their ballistic missile and nuclear weapons programs fully and really verifiably,” Bolton told Fox News.The renewed sanctions were among those lifted under a 2015 deal between world powers and Tehran on curbing Iran’s nuclear program. Trump abandoned the deal in May. Heavier US sanctions, aimed at Iran’s oil sector, are due in November.  The European Union vowed on Monday to counter US President Donald Trump’s renewal of sanctions on Iran, in a test of the EU’s ability to preserve a deal that saw Iran limit its nuclear ambitions in exchange for removing strict curbs on its economy.Despite protests from European allies, US Secretary of State Mike Pompeo said Washington would fully enforce the sanctions. EU diplomats said they were awaiting details on Monday on how they will be implemented.

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Special Report 07-Aug-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION

ï‚·

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

LTP

NIFTY FUTURE

2,83,500

Traded Volume (Contracts)

Open Interest The Nifty 50 opened above the 11,400-level for the first

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

Adani Power: Q1 net loss at Rs 825.2 crore versus loss of Rs 452.8 crore; revenue falls to Rs 3,829.7 crore versus Rs 5,543.4 crore (YoY).

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

time and maintained positive momentum throughout the session on August 6. However, it failed to hold on to opening levels, forming a small bearish candle in intraday trade, resembling a Spinning Top kind of a pattern on daily charts.The index closed higher, but closing value was lower than opening, which indicated that traders preferred to book profits at higher levels. It has to hold 11,400 levels on closing basis, only then strong momentum would be possible so we advice you to buy nifty future around the levels of 11430-35 for the targets of 11500-550 with stoploss below 11280.

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

11451.00

11419.00

11394.00

11362.00

11337.00

BANKNIFTY

28114.00

28006.00

27886.00

27778.00

27658.00

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Special Report 07-Aug-2018

RECOMMENDATIONS GOLD TRADING STRATEGY: BUY GOLD OCT FUT ABOVE 29700 TGT 29770 29870 SL BELOW 29600 SELL GOLD OCT FUT BELOW 29600 TGT 29530 29430 SL ABOVE 29700

SILVER TRADING STRATEGY: BUY SILVER SEP FUT ABOVE 38000 TGT 38200 38500 SL BELOW 37850 SELL SILVER SEP FUT BELOW 37850 TGT 37650 37350 SL ABOVE 38000

COMMODITY ROUNDUP Broad demand worries in global and local markets and poor technical picture for COMEX Gold kept the proceedings lax and the prices fell near their one year low. The yellow metal did see some buying thereafter and ended above $1220 per ounce but the overall undertone in the market remains tepid. MCX Gold futures closed at Rs 29650 per 10 grams. Indian gold demand was down from a strong Q2 2017, falling 8% to 147.9 tonnes (t) in Q2 2018 due to high local prices and seasonal factors, but was in line with the longterm average, according to a latest update from the World Gold Council (WGC). The y-o-y drop in demand was magnified by the jump in demand seen in Q2 last year when consumers rushed to make gold purchases before GST was implemented on 1 July. Global demand showed a grim picture.Global Gold demand slipped 6% in the first half of this year following a sharp decline in purchases for investment purposes, the World Gold Council (WGC) said in a report. Total global demand for gold was 1,959.9 tonnes over January-June, down from 2,086.5 tonnes in the same period last year and the lowest first-half total since 2009, the WGC said in its latest Gold Demand Trends report. For the second quarter, demand was down 4% year-on-year at 964.3 tonnes. Purchases of gold for investment fell 9%, driven by a 46% decline in ETF buying. Central bank purchases dropped 7% over April-June period.WTI Crude oil futures saw volatile moves, falling near six week low before recovering on bargain buying and consolidated just under $69 per barrel mark. MCX Crude oil futures ended just under Rs 4700 per barrel mark. The US Energy Information Administration or EIA reported that US crude oil inventories had added 3.8 million barrels last week. At 408.7 million barrel, US crude oil inventories are about 1% below the 5year average for this time of year, the Weekly Petroleum Status Report indicated. US refinery inputs averaged 17.5 million b/d for the week ended July 27, about 195,000 b/d more than the previous week's average. Refineries operated at 96.1% of capacity. Gasoline production increased, averaging 10.5 million b/d. Distillate fuel production increased, averaging 5.2 million b/d. US crude oil imports averaged 7.7 million b/d, down by 21,000 b/d from the previous week. Over the last 4 weeks, crude oil imports averaged 8 million b/d, 0.4% more than the same period last year - highlighting strong US demand. Copper saw a recovery after recent correction that took prices to two week low on COMEX. Brazilian farmers will increase their soybean acreage for the 12th consecutive year in a row in 2018/19. It is estimating that the Brazilian soybean acreage will increase by 3-4% to 36 million hectares or more.

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Special Report 07-Aug-2018

RECOMMENDATIONS GUARGUM5 BUY GUARGUM OCT FUT ABOVE 9500 TGT 9600 9800 SL BELOW 9350 SELL GUARGUM OCT FUT BELOW 9300 TGT 9200 9000 SL ABOVE 9450

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

DHANIYA BUY DHANIYA AUG FUT ABOVE 5020 TGT 5100 5200 SL BELOW 4940 SELL DHANIYA AUG FUT BELOW 4900 TGT 4830 4730 SL ABOVE 4980

Weakness was seen in wheat due to thin buying in local mandies. The spot prices of wheat increased by Rs 10 per quintal at Delhi Mandi. As per latest update from United States Department of Agriculture (USDA), the global 2018/19 wheat supplies are seen decreasing 9.3 million tons due to primarily on lower production, which is the smallest in three years. Strong buying by traders has extended gains in turmeric market today. The total daily arrivals of 18000-25000 bags have been reported in Nizamabad mandi, while 1000-1200 bags in Erode mandi. The spot prices of turmeric increased by Rs 30 per quintal, with the price range of Rs 6950-7200 per quintal. Weakness in oilmeal demand has added selling in mustard seed market. As per latest data compiled by Ministry of Agriculture, oilseeds acreage declined by 1.15 percent on the account of decline in groundnut and sunflower area in Gujarat. Traders stated that spot prices decreased by more than Rs 12 per quintal today in Jaipur, while arrivals were reported in the range of 0.80-1.20 lakh bags. Domestic exports of farm and processed food products went up by nearly 6% growth in dollar terms to $4.68 billion during the April-June quarter of this year over the corresponding period last year according to the latest numbers from the Agricultural and Processed Foods Export Development Authority (Apeda). In rupee terms, the growth was higher, clocking around 10% to Rs 31,397 crore. The export growth has been buyoant mainly on account of strong demand for non-basmati rice, pulses, dairy products, guar gum, fruits, vegetable seeds etc. Buoyancy continued in Chana prices today due to limited supplies. The spot prices were trading in the range of Rs 4350-4400 per quintal with total arrivals of 12 motors. As per latest data compiled by Ministry of Agriculture, the Kharif pulses area lagged by 3.90% to stand at 115 lakh hectares.

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Special Report 07-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 69.10 TGT 69.40/69.70 SL BELOW 68.80 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 89.30 TGT 89.00/88.70 SL ABOVE 89.60

The beaten-down rupee today staged a good show by recuperating 10 paise to end at 68.60 against the US dollar in line with a stellar rally in domestic equities despite ongoing global trade war jitters. The domestic unit yesterday plunged by 27 paise to hit a one-week low of 68.70. Today, however, steady unwinding of dollars by banks and corporates ahead of the key US labour data too supported the late upmove in the Indian currency. The forex market sentiment got revived towards the fagend trade largely tracking strength in local shares and falling global crude prices that helped offset early steep losses in the Indian rupee. The domestic unit swung between a high of 68.60 and a low of 68.84 against the American dollar during the day. Meanwhile, bulls staged a spectacular comeback as stocks rallied with vigour and strength on wave of frenzied buying amid promising Q1 earnings growth outlook, lifting the Nifty to another historical close. On the energy front, crude prices drifted after China announced it would impose tariffs on USD 60 billion in US goods, the latest development in an escalating trade dispute that has raised concerns about a slowdown in economic growth. The Benchmark brent for September settlement traded sharply lower at USD 73.43 a barrel in early Asian trade. Yuan dipped further after an aggressive devaluation from the PBOC today with the Chinese currency depreciating beyond record low of 6.89 against the greenback. The People's Bank of China is devaluing its currency in response to the trade war. Earlier, the rupee opened almost flat at 68.69 from overnight close of 68.70 at the Interbank Foreign Exchange (forex) market. But, it eventually lost uptrend support and drifted sharply to hit an intra-day low of 68.84 in midafternoon deals. The local unit, however, regained lost ground in the second half of the session owing to some fresh US dollar selling heading into the US labour market report due later today and managed to close at the session high of 68.60, showing a gain of 10 paise, or 0.15 per cent. The bond markets, however, remained under pressure for the second straight day on expectations that the RBI may hike key policy rates higher again in order to keep inflation in check. The 10-year benchmark bond yield rose 4 bps to 7.76 per cent.

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Special Report 07-Aug-2018

Date

Commodity/ Currency Pairs

06/08/18

NCDEX DHANIYA

AUG

BUY

06/08/18

NCDEX DHANIYA

AUG

06/08/18

NCDEX GUARGUM5

06/08/18

Contract Strategy

Entry Level

Target

Stop Loss

Remark

5050

5080 5120

5000

NOT EXECUTED

SELL

4990

5960 4860

5040

TGT HIT

OCT

BUY

9800

9850 9950

9730

NOT EXECUTED

NCDEX GUARGUM5

OCT

SELL

9650

9600 9530

9720

TGT HIT

06/08/18

MCX GOLD

AUG

BUY

29750

29850 30000

29650

NOT EXECUTED

06/08/18

MCX GOLD

AUG

SELL

29650

29550 29450

29750

OPEN

06/08/18

MCX SILVER

SEP

BUY

38300

38450 38750

38100

NOT EXECUTED

06/08/18

MCX SILVER

SEP

SELL

37000

37850 37550

38200

NOT EXECUTED

Date

Scrip

CASH/ FUTURE/ OPTION

Strategy

Target

Stop Loss

Remark

06/08/18

NIFTY

FUTURE

SELL

11330-320

11250-11180

11400

NOT EXECUTED

06/08/18

SUNTV

FUTURE

BUY

796.40

800-805

795

NOT EXECUTED

06/08/18

GRANULES

FUTURE

BUY

105-106

109-113

102

TGT HIT

06/08/18

RALLIS

CASH

BUY

205-206

210-215

202

OPEN

Entry Level

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Special Report 07-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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