Special report-08-august-epic-research2018

Page 1

Special Report 08-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. "The earnings news has been powerful and it's allowed investors to focus on what's most important but with earnings winding down then investors tend to react to the latest shiny object or geopolitical news headline," said Jack Ablin, chief investment officer at Cresset Wealth Advisors in Chicago. Asian shares rose on Wednesday on the back of firmer Wall Street earnings while expectations for increased Chinese stimulus helped take the edge off wider concerns about the worsening Sino-US trade dispute. MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.22 percent while Japan's Nikkei ticked up 0.05 percent.On Wall Street, the S&P 500 rose 0.28 percent to 2,858, which is just 14 points, or about 0.5 percent, below its record high marked in January.A strong second-quarter earnings season fuelled optimism about US economic strength. S&P 500 firms saw a 23.5 percent rise in their April-June profits, according to Thomson Reuters data. Previous day Roundup After opening higher Tuesday, the Nifty 50 ended flat but not before hitting a fresh intraday record high. It also made a fresh closing high. The index formed a bearish candle on the daily charts as the closing price is lower than the opening price. The Sensex, however, ended 26.09 points lower at 37,665.80 and even the broader markets closed in the red with the Nifty Midcap index falling 0.3 percent. The sectoral trend was mixed.The Nifty50 after opening above 10,400 levels hit a fresh record high of 11,428.95 on intraday basis but erased gains in late morning deals to touch a day's low of 11,359.70. Overall the index remained rangebound for major part of the session and managed to close in the green with 2.40-point gain at 11,389.50. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[4.50pts], Consumption[12.35pts],PSE[-20.25pts],CPSE[26.00pts],Energy[-99.55pts],FMCG[-81.65pts],Auto [32.85pts],Pharma[-37.55pts],IT[8.20pts],Metal [39.55pts],Realty[-1.65 pts], Fin Serv sector[3.35pts].

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

Tata Steel

573.15

19.90

3.60

Titan Company

927.25

25.60

2.84

Grasim

1,018.85

19.45

1.95

Asian Paints

1,424.25

26.85

1.92

Bajaj Finance

2,747.35

51.10

1.90

CMP

Change

% Chg

Adani Ports Coal India HPCL BPCL

372.30 275.40 288.60 394.10

-25.05 -7.75 -5.50 -6.90

-6.30 -2.74 -1.87 -1.72

SBI

304.05

-4.45

-1.44

Top Losers Company

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

AIAENG

1722.55

62.45

3.63

BALAXI

18.7

0.9

4.81

BANKBEES

2846.66

-11.16

-0.39

BATAINDIA

934.25

26.85

2.87

BIRLACABLE

107.8

10.75

9.97

Stocks at 52 Week’s LOW Symbol

ABGSHIP BIOFILCHEM CTE CURATECH DEN

Prev. Close

Change

%Chg

5.2 10.7 50.1 3.75 46.25

-0.05 0.45 2.5 -0.15 1.25

-0.96 4.21 4.99 -4 2.7

Indian Indices Company

CMP

Change

% Chg

NIFTY

11389.50

2.40

0.02

SENSEX

37665.80

-26.09

-0.07

_____________________________________________________________________________________________________________________ Please refer to disclaimer Epic Research Ltd www.epicresearch.co


Special Report 08-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 5 points or 0.04 percent. Nifty futures were trading around 11,431level on the Singaporean Exchange.  Oil prices rose on Tuesday after US sanctions on Iranian goods went into effect, intensifying concerns that sanctions on Iranian oil, expected in November, could cause supply shortages. Renewed US sanctions against OPEC member Iran officially went into effect at 12:01 a.m. EDT. The sanctions did not include Iran’s oil exports. The country exported almost 3 million barrels per day (bpd) of crude in July.  Mutual funds' asset base rose by 5 percent to Rs 23.96 lakh crore in July-end, driven by participation from retail investors and a spirited investor awareness campaign by the industry. The asset under management (AUM) of the industry, comprising 42 players, was Rs 22.86 lakh crore at the end of June, according to the data by Association of Mutual Funds in India (Amfi).  ndia doubled the import tax on more than 300 textile products to 20 percent on Tuesday as the world’s biggest producer of cotton tries to curb rising imports from China. It was the second tax hike on textiles in as many months after an increase on other products including fiber and apparels last month.

_____________________________________________________________________________________________________________________ Please refer to disclaimer Epic Research Ltd www.epicresearch.co


Special Report 08-Aug-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION

ï‚·

Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

Open Interest

BANKNIFTY

CE

28,500

2.05

1,04,846

6,21,640

NIFTY

CE

11,400 131.55

84,400

28,45,950

NIFTY

CE

11,600

42.8

66,433

24,75,300

PNB

CE

90

2.15

10,244 1,41,84,500

PNB

CE

100

0.8

9,038 1,00,43,000

PNB

CE

95

1.2

6,460

69,41,000

TATASTEEL

CE

580

20.4

5,129

10,10,072

MARUTI

CE

9,500

126

5,090

1,65,900

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)

The Nifty50 after opening above 10,400 levels hit a fresh

Open Interest record high of 11,428.95 on intraday basis but erased

BANKNIFTY

PE

27,800 69.95

2,85,675

7,61,360

BANKNIFTY

PE

27,700 45.85

2,13,245

9,24,000

BANKNIFTY

PE

27,600

29

2,00,140

8,40,640

PNB

PE

80

2.75

5,114

61,65,500

PNB

PE

85

5.2

4,175

36,74,000

AXISBANK

PE

580 12.95

3,810

7,54,800

TATAMOTORS PE

250

7.25

3,270

35,61,000

ICICIBANK

300

4.65

3,213

36,98,750

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).

gains in late morning deals to touch a day's low of 11,359.70. Overall the index remained rangebound for major part of the session and managed to close in the green with 2.40-point gain at 11,389.50.The index formed a bearish candle on the daily charts as the closing price is lower than the opening price.According to Pivot charts, the key support level is placed at 11,356.47, followed by 11,323.43. If the index starts moving upwards, key resistance levels to watch out are 11,425.77 and 11,462.03.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

18797

1732.24

16696

1600.94

INDEX OPTIONS

495820

50403.69

512765

STOCK FUTURES

176472

11999.53

STOCK OPTIONS

98471

6949.88

OPEN INTEREST AT THE END OF THE DAY

No. of Amount in No. of Contracts Crores Contracts

Amount in Crores

NET AMOUNT

303684

26636.51

131.3

52075.29

673371

60394.18

-1671.5991

178301

12020.70

1116162

83275.79

-21.1685

101906

7204.18

116286

8824.33

-254.3075 -1815.7751

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

11461.00

11425.00

11392.00

11356.00

11323.00

BANKNIFTY

28057.00

27966.00

27896.00

27805.00

27735.00

_____________________________________________________________________________________________________________________ Please refer to disclaimer Epic Research Ltd www.epicresearch.co


Special Report 08-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 ABOVE 38000 TGT 38200 38500 SL BELOW 37850 SELL SILVER 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.

_____________________________________________________________________________________________________________________ Please refer to disclaimer Epic Research Ltd www.epicresearch.co


Special Report 08-Aug-2018

RECOMMENDATIONS GUARGUM5 BUY GUARGUM OCT FUT ABOVE 9570 TGT 9640 9790 SL BELOW 9470 SELL GUARGUM OCT FUT BELOW 9470 TGT 9400 9250 SL ABOVE 9570

NCDEX INDICES Index

Value

% Change

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

1611 4647 4160 4958 1742 4353

0.19 1.04 1.51 0.02 1.63 1.94

19630

-1.16

4102 3393 7238

0.39 0.5 0.17

Jeera Mustardseed Soy Bean Turmeric

DHANIYA BUY DHANIYA AUG FUT ABOVE 5000 TGT 5050 5150 SL BELOW 4930 SELL DHANIYA AUG FUT BELOW 4930 TGT 4880 4780 SL ABOVE 5000

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.

_____________________________________________________________________________________________________________________ Please refer to disclaimer Epic Research Ltd www.epicresearch.co


Special Report 08-Aug-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

68.8525 Yen

62.0175

Euro

79.9875 GBP

89.3575

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.

_____________________________________________________________________________________________________________________ Please refer to disclaimer Epic Research Ltd www.epicresearch.co


Special Report 08-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

The 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 recommendations above epic research does not purport to be an invitation or an offer to buy or sell any financial instrument. Our Clients (Paid or Unpaid), any third party or anyone else have no rights to forward or share our calls or SMS or Report or Any Information Provided by us to/with anyone which is received directly or indirectly by them. If found so then Serious Legal Actions can be taken.

_____________________________________________________________________________________________________________________ Please refer to disclaimer Epic Research Ltd www.epicresearch.co


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.