Special report-09-august-2018-epic-research

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Special Report 09-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. Previous day Roundup Bulls pushed the Nifty index to a record high of 11,459.95 Wednesday after two straight days of consolidation, but analysts’ feel investors should tread with cautions as the index is near crucial resistance levels. The index formed a bullish candle on the daily charts after two successive bearish candles. The next crucial resistance for the index is placed at 11,500-11530 while support is placed at 11,330.The index formed a Bullish candle on the daily scale with the highest ever daily closing ahead of weekly expiry day. It has to hold above 27,900 zones to extend its move towards 28,250 zones while major support is seen at 27,650 zones. According to Pivot charts, the key support level is placed at 11,399.53, followed by 11,349.07. If the index starts moving upwards, key resistance levels to watch out are 11,480.23 and 11,510.47. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[16.65pts], Consumption[7.75pts],PSE[-0.70pts],CPSE[14.75pts],Energy [264.10pts],FMCG[162.15pts],Auto[-34.45pts],Pharma[63.80pts],IT[-5.55pts],Metal[8.35pts],Realty[-0.15 pts], Fin Serv sector[67.85pts].

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

172.50

4.95

2.95

Reliance

1,217.70

33.50

2.83

Bajaj Finance

2,813.15

65.80

2.40

ICICI Bank

318.70

5.55

1.77

Bharti Infratel

290.45

4.55

1.59

CMP

Change

% Chg

Lupin Maruti Suzuki HPCL BPCL

825.55 9,207.40 282.70 387.30

-41.05 -204.10 -5.90 -6.80

-4.74 -2.17 -2.04 -1.73

Bajaj Auto

2,660.60

-26.00

-0.97

ONGC

Top Losers Company

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

1329.7

69.25

5.21

AIAENG

1755.75

49.25

2.81

BAJFINANCE

2747.35

62.6

2.28

19.6

0.95

4.85

2841.02

15.38

0.54

AARTIIND

BALAXI BANKBEES

Stocks at 52 Week’s LOW Symbol

ARENTERP ASIANTILES BIOFILCHEM CCCL CURATECH

Prev. Close

Change

%Chg

8.95 282 10.45 2.9 3.6

-0.2 -6.8 0.45 0 0

-2.23 -2.41 4.31 0 0

Indian Indices Company

CMP

Change

% Chg

NIFTY

11450.00

60.50

0.53

SENSEX

37887.56

221.76

0.59

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Special Report 09-Aug-2018

RECOMMENDATIONS [FUTURE] 1.GRANULES [FUTURE ] The particular counter is showing a clear sign of reversal from its higer levels of 110 with stochastic momentum indicator giving a overbought signal, as per the candlestick pattern a bearish hanging man candle is found around the reistance level of 110 with a bearish confiramtion candle sell on weakness would be good opportunity to grab so we advice to sell granules around the levels of 104-103 for the targets of 100-96 with stoploss above 107

2.ONGC [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 171 zones to extend its move towards 180 so we advice you to buy around the levels of 172-173 for the target of 176-180 with stoploss below 170.

STOCK RECOMMENDATION [CASH] BEL [CASH] From the daily chart its clear that the particular counter is showing strength around its crucial resisatnce level of 122.25, today if the market shows a little strength then it may break this level and 2-3 upside movement is easily possible so buy on strength would be a good opportunity here we advice you to go for a long position around 122.25 -123 for the targets of 126-130 with stoploss below 120.

MACRO NEW  Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 4.5 points or 0.04 percent. Nifty futures were trading around 10,473level on the Singaporean Exchange.  China is slapping additional import tariffs of 25 percent on USD 16 billion worth of US goods ranging from oil and steel products to autos and medical equipment, the commerce ministry said, as the world's two largest economies escalate their trade dispute."This is a very unreasonable practice," the commerce ministry said on its website www.mofcom.gov.cn, responding to the United States' decision to slap 25 percent tariffs on another USD16 billion of Chinese goods on August 23.  The National Stock Exchange (NSE) plans to focus on equity, debt and interest rate futures segments for business expansion as well as on reducing the cost of raising funds for companies, a senior official said.Equity market penetration has the potential to grow and the bourse intends to concentrate on segments like debt, interest rate futures and commodity market for expanding its business, NSE chairman Ashok Chawla said at the exchange's silver jubilee celebrations.

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Special Report 09-Aug-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

Open Interest

BANKNIFTY

CE

27,900 206.15

1,92,819

3,28,560

NIFTY

CE

11,500

98.7

1,48,296

36,78,525

NIFTY

CE

11,400 158.7

97,644

RELIANCE

CE

1,200

41.1

8,280

17,03,000

RELIANCE

CE

1,220

29.7

8,115

12,19,000

ASHOKLEY

CE

130

3

7,513

64,92,000

LUPIN

CE

900

6.5

7,116

8,51,200

RELIANCE

CE

1,240

21

6,996

19,17,000

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

Optio Strike n Price Type

LTP

NMDC Q1: Net profit at Rs 975.2 crore against Rs 969.2 crore, revenue down 14.8% at Rs 2,422 crore versus Rs 2,841 crore,YoY

2,83,500

Traded Volume (Contracts)

Open Interest

PE

27,400

4

1,35,990

4,23,720

NIFTY

PE

11,400

91.4

1,27,098

23,84,475

NIFTY

PE

11,300

63

1,12,589

41,25,375

LUPIN

PE

800

17.5

5,470

4,15,800

RELIANCE

PE

1,180

12.3

5,038

14,27,000

RELIANCE

PE

1,160

8.5

4,560

13,49,000

MARUTI

PE

9,000 105.05

4,367

78,750

ICICIBANK

PE

3,213

36,98,750

4.65

Indian Hume Pipe board approved proposed revenue sharing transaction with developer Kalpataru Gardens

26,13,750 NIFTY FUTURE

BANKNIFTY

300

Bulls pushed the Nifty index to a record high of 11,459.95 Wednesday after two straight days of consolidation, but analysts’ feel investors should tread with cautions as the index is near crucial resistance levels.The index formed a bullish candle on the daily charts after two successive bearish candles. The next crucial resistance for the index is placed at 11,500-11530 while support is placed at 11,330, suggest experts,so we advice you to buy nifty future around the levels of 11460-75 for the targets of 11520-570 with stoploss below 11400.

FII DERIVATIVES STATISTICS BUY

SELL

No. of Contracts

Amount in Crores

INDEX FUTURES

30365

2863.78

23277

2204.82

INDEX OPTIONS

882603

92342.34

889773

STOCK FUTURES

158203

10878.12

STOCK OPTIONS

73912

5546.71

OPEN INTEREST AT THE END OF THE DAY

No. of Amount in No. of Contracts Crores Contracts

Amount in Crores

NET AMOUNT

315364

27737.94

658.9689

92974.78

675189

60824.38

-632.4454

159619

10793.21

1120952

83926.73

84.9038

75606

5706.08

123358

9470.90

-159.3718 -47.9445

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

11509.00

11479.00

11429.00

11399.00

11349.00

BANKNIFTY

28286.00

28174.00

28016.00

27904.00

27746.00

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Special Report 09-Aug-2018

RECOMMENDATIONS GOLD TRADING STRATEGY: BUY GOLD OCT FUT ABOVE 29670 TGT 29740 29840 SL BELOW 29570 SELL GOLD OCT FUT BELOW 29570 TGT 29500 29600 SL ABOVE 29670

SILVER TRADING STRATEGY: BUY SILVER SEP FUT ABOVE 38050 TGT 38250 38550 SL BELOW 37900 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 09-Aug-2018

RECOMMENDATIONS GUARGUM5 BUY GUARGUM OCT FUT ABOVE 9500 TGT 9580 9680 SL BELOW 9420 SELL GUARGUM OCT FUT BELOW 9400 TGT 9420 9320 SL ABOVE 9480

NCDEX INDICES Index

Value

% Change

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

1606 4680 4148 4929 1710 4381

-0.19 0.8 -0.26 -0.4 -1.78 0.39

19710

0.38

4089 3353 7220

-0.2 -1.18 -0.41

Jeera Mustardseed Soy Bean Turmeric

DHANIYA BUY DHANIYA AUG FUT ABOVE 4960 TGT 5010 5110 SL BELOW 4900 SELL DHANIYA AUG FUT BELOW 4890 TGT 4840 4740 SL ABOVE 4950

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 09-Aug-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

68.6465 Yen

61.7400

Euro

79.7169 GBP

88.8167

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 09-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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