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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