special report 08 jan 2018 epic research

Page 1

Special Report

08–JAN-2019

Global markets at a glance Wall Street plunged on Thursday after slowing U.S. factory activity on the heels of a dire revenue warning from Apple Inc fueled fears of a global economic slowdown.The magnitude of Apple's holiday quarter revenue shortfall sent shockwaves through the technology sector, which pulled all three major U.S. stock indexes down more than 2 percent, with the Nasdaq posting a 3 percent loss. S&P Technology companies slid 5.1 percent, its biggest one -day percentage drop since August 2011. The Philadelphia SE Semiconductor index ended the session 5.9 percent lower.Late Wednesday, Apple chief executive Tim Cook wrote in a letter to investors that the company had not foreseen the extent of China's economic deceleration, which was exacerbated by U.S.-China trade tensions. The iPhone maker's shares dropped 10.0 percent. The Chinese slowdown was expected but today's softer-than-expected ISM number took investors by surprise because the U.S. seemed to be the only port in the storm," said Sam Stovall, chief investment strategist of CFRA Research in New York. "But now it appears that our economic growth is facing trade related headwinds."Major automakers reported weak U.S. new car sales in December, with Ford Motor Co and General Motors Co reporting sales falling by 8.8 percent and 2.7 percent, respectively. Ford shares fell 1.5 PREVIOUS DAY ROUNDOFF Buying counters were buzzing in the last couple of hours for the market, helping them not only recover from low points, but also end the week on a strong note.Except IT names, investors bought across sectors, with maximum gains seen among metals, energy and banks, among others. The Nifty Midcap index ended higher too. At the close of market hours, the Sensex was up 181.39 points or 0.51% at 35695.10, and the Nifty up 55.10 points or 0.52% at 10727.40. The market breadth was narrow as 1322 shares have advanced, against a decline of 1255 shares, and 159 shares are unchanged.Yes Bank, Vedanta, and Bharti Infratel gained the most, while Infosys, TCS, HCL Tech and Tech Mahindra were the top losers. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[+14.3pts], Consumption[+15.3pts],PSE[+18.05pts],CPSE [+8.1pts],Energy[+945ts],FMCG[+92.4pts],Auto [+10.65pts],Pharma[-55.4pts],IT[+145.35pts],Metal[4.6pts],Realty[+3.15pts], Fin Serv sector[+73.2pts].

World Indices Index

Value

% Change

DJI

22686

-2.83

S&P500

2447

-2.48

NASDAQ

6738

+4.26

FTSE100

6837

+2.16

20101 25810

+2.76 +0.72

NIKKEI HANG SENG

Top Gainers Company

CMP

Change

% Chg

Axis Bank

637.45

17.85

2.88

Bharti Infratel

293.75

8.70

3.05

Tata Motors

175.35

4.40

2.57

Grasim

820.65

14.50

1.80

7,362.05

127.55

1.76

CMP

Change

% Chg

793.90 2,658.55 187.15 2,558.65 19,830.40

-35.90 -75.65 -2.50 -41.35 -273.20

-4.33 -2.77 -1.32 -1.59 -1.36

Maruti Suzuki

Top Losers Company

Indiabulls Hsg Bajaj Auto Yes Bank Dr Reddys Labs Eicher Motors

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

ASTRAL

1178.9

-39.8

-3.38

DVL

106.95

-2.65

-2.48

LIQUIDETF

999.99

0.01

0

109.1

-1.72

-1.58

0.05

0

0

Prev. Close

Change

%Chg

1.9

0.05

2.63

AMTEKAUTO

3.25

-0.15

-4.62

ANGIND ANKITMETAL ARROWTEX

1.25 0.45 21.5

0.05 0 -0.05

4 0 -0.23

NETF NOESISIND

Stocks at 52 Week’s LOW Symbol

ABGSHIP

Indian Indices Company

CMP

Change

% Chg

NIFTY

10771

44.45

0.41

SENSEX

35850

155.06

0.43

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Special Report

08–JAN-2019

RECOMMENDATIONS [FUTURE]

STOCK RECOMMENDATION [CASH]

1. AJANTPHARM [FUTURE ]

REPCOHOME Stock has given the breakout of the neckline of the double After a week of the correction phase stock has shown good bottom pattern on the daily chart with the good volumes strength on the daily chart and closed in green. It also closed and closed near to days high. We recommend buying above the 200 EMA on the daily chart. We recommend above 424 for the target of 428 with the stop loss of 420. buying above 1182 for the target of 1197 with the stop loss of 1169.

2. BEML [FUTURE] Stock is consolidating for a couple of weeks and performed well today. We have seen a good recovery in the last couple of hours in the trading session. it also closed above the 200 EMA on the daily chart. We recommend buying above 922 for the target of 930 with the stop loss of 914.

MACRO NEWS 

The Indian economy will likely grow at 7.2 percent in 2018-19, faster than the previous year’s 6.7 percent expansion, but is set to moderate to below 7 percent during October-March this year, signaling a slowdown amid festering rural distress.

The global market for drones and drone powered solutions is expected to cross $100 billion by 2023, and India seems to be on the right track to cash on in this sector. The country's newly-announced Drone Regulation 1.0 is a step to open up the use of Remotely Piloted Aircraft (RPAs) — commonly known as drones — for commercial activities.

The apex bank will inform about its decision to transfer interim dividend to the government "as and when it is taken", Reserve Bank of India (RBI) Governor Shaktikanta Das said on January 7.

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Special Report

08–JAN-2019

STOCKS IN NEWS

MOST ACTIVE CALL OPTION Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

BANKNIFTY

CE

27,500 77.65

5,63,487

BANKNIFTY

CE

27,600

50.5

4,58,000

BANKNIFTY

CE

27,700 32.05

3,81,939

NIFTY

CE

11,000 77.25

1,66,183

NIFTY

CE

10,900 116.55

1,21,598

RELIANCE

CE

1,140

19.5

4,881

TATAMOTORS CE

180

5

4,355

ASHOKLEY

105

0.75

4,173

CE

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

Optio Strike n Price Type

BANKNIFTY

PE

BANKNIFTY

Open Interest

9,49,580 TCS: Central Bank of Kuwait modernised its technology platform with TCS BaNCS 6,63,900 6,35,920 NIFTY FUTURE Nifty followed global market and started with gap up but today PSU and Metal share made 40,63,800 pressure in market due to that whole day Nifty traded in 27,00,000 sideways and in last one hour it loosed almost fifty per 15,11,000 cent gains in intraday. On daily chart it created bearish candle since Nifty forming Open Broadening pattern so 35,04,000 we it will be buy in decline around 10720-10740 with 69,68,000 stop loss o 10600 for the target of 10830 10950. 2,83,500

LTP

Traded Volume (Contracts)

Open Interest

27,200

117

4,96,584

5,60,720

PE

27,000

57.8

4,17,069

9,13,160

NIFTY

PE

10,700 125.45

94,310

32,69,775

NIFTY

PE

10,500

71

82,123

38,98,725

RELIANCE

PE

1,100

27

3,515

6,77,000

RELIANCE

PE

1,080 18.55

3,015

4,65,000

ASHOKLEY

PE

2.35

2,918

36,92,000

RELIANCE

PE

1,060 12.85

2,681

5,70,000

90

Bandhan Bank: Board approved amalgamation of Gruh Finance, subsidiary of HDFC, into the bank.

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

30262

2338.03

25739

1929.62

377527

29756.42

408.4089

INDEX OPTIONS

916832

57413.50

908507

56903.90

667232

50244.48

509.5968

STOCK FUTURES

151116

8804.26

147800

8678.95

1338427

81229.38

125.3102

STOCK OPTIONS

67045

3820.50

67898

3845.37

112677

6461.66

-24.8789 1018.437

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

10870

10820

10785

10735

10700

BANKNIFTY

27551

27427

27353

27229

27155

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Special Report

08–JAN-2019

RECOMMENDATIONS GOLD TRADING STRATEGY: BUY GOLD ABOVE 31790 TGT 31840 31940 SL BELOW 31720 SELL GOLD BELOW 31700 TGT 31650 31550 SL ABOVE 31770

SILVER TRADING STRATEGY: BUY SILVER ABOVE 39460 TGT 39600 39800 SL BELOW 39260 SELL SILVER BELOW 39350 TGT 39200 39000 SL ABOVE 39550

COMMODITY ROUNDUP Traders said weaker rupee against dollar and safe haven buying contributed the surge in the prices of the yellow metal. Besides, firm trend overseas helped the rise in gold prices, they added.In Delhi, prices of gold of 99.9 per cent and 99.5 per cent purities gained Rs 335 each to Rs 32,835 per 10 gram and Rs 32,685 per 10 gram, respectively. Sovereign gold, however, remained unchanged at Rs 25,200 per piece of 8 gram.Globally, gold prices traded higher at USD 1290.82 an ounce, while silver was up at USD 15.55 an ounce in New York.Silver ready advanced Rs 350 to Rs 39,700 per kg and weekly-based delivery witnessed a rise of Rs 617 to Rs 39,365 per kg. Silver coins, however, remained unchanged at Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces. Oil prices fell on Thursday amid volatile currency and stock markets, and as analysts warned of an economic slowdown for 2019 just as crude supply is rising globally.U.S. West Texas Intermediate (WTI) crude oil futures CLc1 were at $45.93 per barrel at 0152 GMT, down 61 cents, or 1.3 percent, from their last settlement.International Brent crude futures LCOc1 were down 36 cents, or 0.7 percent, at $54.55 per barrel. Markets were roiled by a more than 3 percent crash of the U.S.-dollar against Japan's yen overnight JPY=D3 , and after U.S. tech giant Apple AAPL.O cut its sales forecast. did not foresee the magnitude of the economic deceleration, particularly in Greater China," Apple chief executive Tim Cook said. slowdown in China and turmoil in stock and currency markets is making investors nervous, including in oil markets. bank Jefferies said in a 2019 opening note to clients and employees that the start of the year "doesn't feel as firm, the future doesn't feel as certain and optimistic, and the path forward does not seem as clear." India's Finance Minister Arun Jaitley said on Thursday commercial banks were likely to recover 700 billion rupees ($9.95 billion) of bad loans by the end of March, helped by resolution of 12 large cases.Some of the big cases such as Bhushan Power and Steel Ltd and Essar Steel India Ltd are in advanced stages of resolution, and are likely to be resolved in this financial year, Jaitley said in a blog post on Facebook

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Special Report

08–JAN-2019

RECOMMENDATIONS GUARGUM5 TRADING STRATEGY: BUY GUARGUM JAN ABOVE 8615 TARGET 8630/8650/8675 SL 8565 SELL GUARGUM JAN BELOW 8590 TARGET 8575/8555/8530 SL8650

NCDEX INDICES Index

Value

% Change

Barley

1941

-1.27

Castor Seed

5348

1.44

Chana Coriander Cotton Seed Oilcake Guar Seed 10 MT

4198 6167 1930 4348

-1.85 -2.74 -1.43 0.24

17490

-0.51

3959 3466 6626

0.61 0.7 0.18

Jeera Mustardseed Soy Bean Turmeric

DHANIYA TRADING STRATEGY: BUY DHANIYA JAN ABOVE 6200 TARGET 6215/6235/6260 SL 6140 SELL DHANIYA JAN BELOW 6150 TARGET 6135/6115/6090 SL 6210

Planters in Bengal tea belt are expecting bright post winter high value first flush output for the consecutive second year due to prevailing favorable weather conditions. Entire tea belt in Bengal has taken submergence deep under chill. While the mercury at in Terai and Dooars tea belts in foothills have dipped even lower than 5 Degree Celsius, many high altitude places have gone under thick snow cover. Darjeeling city itself and surrounding areas, known for premium quality tea, also had a day-long snow fall after a decade. According to Indian Meteorological Department, the low temperature is likely to continue for the first half of January. With the general election a few months away, the central government has begun crunching the numbers in preparation for a comprehensive programme to help farmers tide over challenges posed by a dip in prices and dwindling incomes. The government is keen on a more substantive intervention than a loan waiver at the central level to alleviate agrarian distress besides stepping up investments in the sector, having concluded that writing off debt doesn’t help address underlying problems. Milk prices are likely to go up in 2019, cooperative dairies said, as supplies are less than usual during this period. Lower returns to farmers have led to the drop in milk production in winter, when supplies tend to go up, they said.“Milk prices are bound to increase in 2019. Low stocks of skimmed milk powder (SMP) and a drop in milk supplies compared to previous year are the two major reasons,” said RS Sodhi, managing director of Gujarat Cooperative Milk Marketing Federation which owns the Amul brand.

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Special Report

08–JAN-2019

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

69.4814 Yen

64.21

Euro

79.3890 GBP

88.5943

USD/INR TRADING STRATEGY: USD/INR BUY USDINR FUTURE ABOVE 69.8500 TARGET 69.9700/70.10 SL 69.70 SELL USDINR FUTURE 69.5800/69.4500 SL 69.8500

BELOW

69.70

TARGET

The Reserve Bank of India (RBI) issued norms for restructuring loans defaulted by micro, small and medium enterprises. The RBI permitted a one-time restructuring of existing loans to MSMEs that are in default but 'standard" as on January 1, 2019, the central bank said in a statement. To be eligible for the scheme, the aggregate exposure, including non-fund based facilities of banks and NBFCs, to a borrower should not exceed Rs 25 crore as on January 1, 2019. The restructuring has to be implemented by March 31, 2020. The Indian rupee kicked off 2019 on a resounding note, building up on gains of the previous two sessions and adding another 34 paise on January 1 to close at 69.43 against the US dollar on increased selling of the greenback by exporters and smart gains in domestic equities. The domestic unit has rallied by a hefty 92 paise in the last three trading sessions.At the Interbank Foreign Exchange (forex), the rupee opened on a firm note at 69.63. It gained further to hit a high of 69.43 following dollar selling by exporters, before finally closing at 69.43, up 34 paise.

GBP/INR TRADING STRATEGY: BUY GBPINR FUTURE ABOVE 89.20 TARGET 89.3200/89.45 SL 89.0500 SELL GBPINR FUTURE BELOW 88.90 TARGET 88.7800/88.6500 SL 89.0500

The government has exempted rupee payments made to Iran's national oil company NIOC towards the purchase of crude oil from payment of any tax, according to a Gazette notification. The finance ministry in a December 28, 2018 Gazette notification said the National Iranian Oil Company (NIOC) will not have to pay any withholding tax on payments it gets from Indian refiners. India had on November 2, 2018, signed an agreement with Iran to pay for crude oil it imports from the Persian Gulf nation in rupees. Any income a foreign company receives in an Indian bank account is subject to a withholding tax of 40 per cent, which together with sundry cesses totals to 42.5 percent. Exempting payments received by NIOC for crude oil it sells to Indian refiners, the notification said the Iranian firm "shall not engage in any activity in India, other than the receipt of income under the aforesaid arrangement".

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Special Report

08–JAN-2019

Date

Commodity/ Currency Pairs

07/1/19

NCDEX DHANIYA

JAN

BUY

6400

07/1/19

NCDEX DHANIYA

JAN

Sell

07/1/19

NCDEX GUARGUM5

JAN

07/1/19

NCDEX GUARGUM5

07/1/19

Contract Strategy

Entry Level

Stop Loss

Remark

6415/6435/64 60

6340

NOT EXECUTED

6330

6315/6300/62 70

6390

NOT EXECUTED

BUY

8410

8425/8445/84 70

8450

TARGET HIT

JAN

SELL

8370

8355/8335/83 10

8430

NOT EXECUTED

MCX GOLD

JAN

BUY

31700

31750/31850

31620

TARGET HIT

07/1/19

MCX GOLD

JAN

SELL

31600

31520/31420

31680

07/1/19

MCX SILVER

MAR

BUY

39100

39250/39450

38900

NOT EXECUTED

07/1/19

MCX SILVER

MAR

SELL

38900

38750/38550

39100

NOT EXECUTED

Entry Level

Target

Stop Loss

Remark

Target

NOT EXECUTED

Date

Scrip

CASH/ FUTURE/ Strategy OPTION

07/1/19

NIFTY

FUTURE

SELL

10700

10650/10600

10800

NOT EXECUTED

07/1/19

SUN PHARMA

FUTURE

BUY

435-437

442/448

425

TARGET

07/1/19

TORRENT POWER

FUTURE

BUY

262

264/266

259

TARGET HIT

07/1/19

KRBL

CASH

BUY

297.5

307/320

289

NOT EXECUTED

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Special Report

08–JAN-2019

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

REPORT

PERIOD

ACTUAL

MEDIAN FORECAST

PREVIOUS

--

60.7%

-$53.9 bln

-$55.5bln

--

$25 bln

--

0.8%

MONDAY, JAN. 7 10 am

ISM nonmanufacturing index

Dec. 10 am TUESDAY, JAN. 8 6 am

8:30 am

International trade*

Nov. 10 am

3 pm

Consumer credit

Nov. WEDNESDAY, JAN. 9

2 pm

FOMC minutes THURSDAY, JAN. 10 8:30 am

9:45 am

10 am

Markit manufacturing index flash

Nov. Wholesale inventories*

9:45 am

Markit services index flash

Nov.

Nov.

--

55.7

--

54.8

FRIDAY, JAN. 11 8:30 am

Consumer price index

Dec.

-0.1%

0.0%

8:30 am

Core CPI

Dec.

0.2%

0.2%

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