Special Report 09 JULY 2018 Epic Research

Page 1

Special Report 9-July-2018

Global markets at a glance US stocks climbed on Friday, with the S&P 500 and the Nasdaq hitting their highest levels in two weeks, as strong US jobs growth blunted the impact of an escalating USChina trade dispute.Nonfarm payrolls increased by 213,000 jobs last month, the US Labor Department said, topping expectations of 195,000, while the unemployment rate rose from an 18-year low to 4 percent and average hourly earnings rose 0.2 percent. The moderate wage growth allayed fears of a strong buildup in inflation pressures and boosted optimism that the Federal Reserve would stay on a path of gradual interest rate increases. Asian share markets crept higher on Monday following favorable US jobs data, while sterling slipped after two members of the British government resigned over Brexit and put the future of Prime Minister Theresa May in doubt.The pound peeled off around a third of a US cent to USD 1.3292 GBP=D3 in early trading as news broke British Brexit Secretary David Davis and Brexit Minister Steven Baker had resigned.The loss came just two days after a meeting at May’s Chequers country residence supposedly sealed a cabinet deal on Brexit and underlines the deep divisions in her ruling Conservative Party over the departure from the EU. Previous day Roundup The Nifty, which started on a flat note on Friday, gained momentum and reclaimed its crucial resistance level of 10,800, but last hour selling saw it close at 10,772.The index formed a ‘Shooting Star’ kind of pattern on the daily charts and a 'hammer’ kind of pattern on the weekly scale.The Nifty took support at its 13-day exponential moving average (EMA) and bounced back to close at 10,772 levels. It hit an intraday low of 10,735 and an intraday high of 10,816.35.India VIX fell down 1.11 percent to 12.45. It has been falling down for the last four trading sessions. Lower volatility indicates limited downside in the market till it remains below 13.50 zones. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[11.5pts], Consumption[15.40pts],PSE[26.55pts],CPSE [21.50pts],Energy[112.75pts],FMCG[ -54.5pts],Auto [142.1 pts],Pharma[ -84 .35pts],IT[45.4 pts],Metal[ 0.4pts],Realty[2.65 pts], Fin Serv sector[-19.2pts].

World Indices Index

Value

% Change

24,356.70

0.75

S&P500

2,738.50

0.00

NASDAQ FTSE100

7,586.40 7,547.85

1.12 -1.18

21,644.83 28,144.92

-0.77 -2.88

DJI

NIKKEI HANG SENG

Top Gainers Company

CMP

Change

% Chg

HINDPETRO

268.05

11.65

4.52

TATAMOTORS

271.15

7.95

3.67

3,629.85

142.05

3.54

989.85

19.50

2.19

1,912.20

37.45

1.7

HEROMOTOCO GRASIM TCS

Top Losers Company

CMP

Change

% Chg

CIPLA TECHM INFRATEL DRREDDY

612.15 635.45 298.95 2,266.95

-14.10 -11.70 -4.45 -31.65

-2.3 -1.73 -1.48 -1.38

559

-7.95

-1.40

SUNPHARMA

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

4.65

0.2

4.3

1321.4

0.1

0.01

2

0.1

5

1127.3

29.25

2.59

1688

-12

-0.71

ALOKTEXT ASIANPAINT ELECTROSL GARWALLROP HINDUNILVR

Stocks at 52 Week’s LOW Symbol

ADORWELD AMTEKAUTO ANTGRAPHIC APARINDS APOLLO

Prev. Close

Change

%Chg

301.25 8.25 0.55 654.6 148.3

-10 0.3 0 -3.05 -2.05

-3.32 3.64 0 -0.47 -1.38

Indian Indices Company

CMP

Change

% Chg

NIFTY

10772.65

22.90

0.21

SENSEX

35657.86

83.31

0.23

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Special Report 9-July-2018

RECOMMENDATIONS [FUTURE] 1.INFY [FUTURE ] The base line (26 period high low average ) is acting as a support level at 1270 level, as per the trend IT sector is going but reboudning from its support level here we can buy on reversal so we advice you to BUY INFY FUTURE AROUND 1310-1312 TGT 1325-1350 SL BELOW 1300

2.APOLLOTYRE [FUTURE] As per the intraday movement the particular counter has made a breakout above its crucial resistance level of 254 and has closed above as per its movement on Monday it can show some correction so you can take long position after it touches its support level of 254 so we advice you to BUY APOLLOTYRE FUTURE AROUND 254-254.50 TGT 258-262 SL BELOW 251

STOCK RECOMMENDATION [CASH] SHANKARA [CASH] The particular conter is consolidating within a range from where we can get a chance of reversal, 1514 is an important support level here you can buy on reversal so we advice you to BUY SHANKARA AROUND 1590-1600 TGT 1640-80 SL BELOW 1570

MACRO NEW  Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 66.5 points or 0.62 percent. Nifty futures were trading around 10,832level on the Singaporean Exchange.  Asian share markets crept higher on Monday following favorable US jobs data, while sterling slipped after two members of the British government resigned over Brexit and put the future of Prime Minister Theresa May in doubt.MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.2 percent, on top of 0.7 percent rally on Friday. Japan's Nikkei followed up with gains of 1 percent on Monday.  Job creation in the world's largest economy continued its brisk pace in June but the unemployment rate jumped as more people joined the hunt for employment, according to a government report today. The US added 213,000 new jobs for the month, well above analyst expectations, but the jobless rate rose 0.2 points to four percent, erasing May's improvement.As unemployment rose, the closelywatched labour force participation rate also edged higher to 62.9 percent, while the number of people counted as unemployed rose to 6.6 million people, up nearly a half million.  Public sector banks are planning to tap the markets to raise more than Rs 50,000 crore this fiscal to shore up their capital base for business growth and meeting regulatory global risk norms.

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Special Report 9-July-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

Open Interest

NIFTY

CE

10800 95.25

2,05,668

37,77,300

NIFTY

CE

10900 52.95

1,46,722

31,53,525

BANKNIFTY

CE

26700

74

1,78,354

4,44,760

BANKNIFTY

CE

26600 111.55

1,65,379

3,91,480

TATAMOTORS CE

280

5.6

6034

55,35,000

RELIANCE

CE

1000

16.3

5550

35,41,000

ASHOKLEY

CE

140

1.95

5541

45,80,000

MARUTI

CE

9500

97

5033

81375

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

Trigyn Tech has bagged an order from Nashik Municipal Smart City Development

Ashok Leyland plans to international operations

scale

up LCV biz,

NIFTY FUTURE

2,83,500

Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

NIFTY

PE

10700

87.5

1,74,518

NIFTY

PE

10600

59

1,13,581

BANKNIFTY

PE

26300

76

1,31,311

BANKNIFTY

PE

26000

24.8

1,30,396

MARUTI

PE

9000 52.55

3569

TATAMOTORS PE

260

4.9

3022

RELIANCE

PE

960 14.95

2503

RELIANCE

PE

940

2211

9

Open Interest

The Nifty, which started on a flat note on Friday, gained 36,29,625 momentum and reclaimed its crucial resistance level of 10,800, but last hour selling saw it close at 10,772. 51,74,550 The index formed a ‘Shooting Star’ kind of pattern on the 3,99,480 daily charts and a 'hammer’ kind of pattern on the 7,48,520 weekly scale.The Nifty took support at its 13-day 1,29,825 exponential moving average (EMA) and bounced back to close at 10,772 levels. It hit an intraday low of 10,735 18,16,500 and an intraday high of 10,816.35.We recommend to 12,45,000 BUY NIFTY FUTURE AROUND 10720-10740 TGT 1080014,91,000 10850 SL ABOVE 10680.

FII DERIVATIVES STATISTICS BUY

SELL

No. of Contracts

Amount in Crores

INDEX FUTURES

21339

1875.18

26507

2425.00

INDEX OPTIONS

925165

90098.59

915408

STOCK FUTURES

143157

9276.69

STOCK OPTIONS

68719

4762.33

OPEN INTEREST AT THE END OF THE DAY

No. of Amount in No. of Contracts Crores Contracts

Amount in Crores

NET AMOUNT

245786

20201.28

-549.8184

89215.30

638605

53648.74

883.2853

142552

9182.84

1149054

79729.12

93.8536

69376

4794.35

59195

4005.05

-32.0172 395.3033

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

10868.10

10821.05

10769.65

10722.60

10671.20

BANKNIFTY

26672.28

26578.82

26490.48

26397.02

26308.68

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Special Report 9-July-2018

RECOMMENDATIONS GOLD TRADING STRATEGY: BUY GOLD AUG FUT ABOVE 30750 TGT 30800 30850 SL BELOW 30700 SELL GOLD AUG FUT BELOW 30540 TGT 30500 30450 SL ABOVE 30600

COMMODITY ROUNDUP Gold prices were lower on Friday as the U.S. dollar weakened and U.S. trade tariffs against China went into effect.U.S. tariffs on $34 billion worth of Chinese goods went into effect at 12:01 AM ET (04:01 GMT) on Friday, with additional tariffs on another $16 billion expected to go into effect in two weeks. Meanwhile U.S. President Donald Trump has given instructions to identify a further $300 billion in possible Chinese goods. China previously said it would retaliate with tariffs on $34 billion of American goods, including agricultural products, crude imports, and vehicle products.The precious metal was also held back by the Federal Reserve expressing concerns about the trade war, according to minutes from its last policy meeting in June."Most (Fed policymakers) noted that uncertainty and risks associated with trade policy had intensified and were concerned that such uncertainty and risks eventually could have negative effects," according to the minutes.

SILVER TRADING STRATEGY: BUY SILVER SEP FUT ABOVE 39920 TGT 39970 40020 SL BELOW 39870 SELL SILVER SEP FUT BELOW 39670 TGT 39620 39570 SL ABOVE 39720

Oil slipped towards $77 a barrel on Friday, under pressure from higher Saudi production and trade tensions between the United States and China, although oil supply disruptions lent support.Top exporter Saudi Arabia told OPEC it raised oil output by almost 500,000 barrels per day last month, OPEC sources said, a sign Riyadh wants to make up for shortages elsewhere and dampen prices. crude , the global benchmark, was down 19 cents at $77.20 a barrel by 0910 GMT. U.S. crude slipped 2 cents to $72.92. "On the bearish side both Saudi Arabia and Russia are living up to their promise to increase output," said Tamas Varga of oil broker PVM. "Looming U.S. sanctions on Iran, however, are causing serious concerns amongst market players."U.S. tariffs on $34 billion in Chinese imports took effect as a deadline passed on Friday and Beijing has vowed to respond immediately in kind, setting the two world's biggest economies on a path towards a full-blown trade conflict."The oil market is in the hands of global politics," said Norbert Ruecker, head of macro and commodity research at Julius Baer. "China's reciprocation will in a first tranche include agricultural commodities and in a second tranche most likely oil products and crude oil." A U.S. government report also weighed on prices this week, by crude stockpiles rose 1.3 million barrels and showing unexpectedly ample supplies after analysts had forecast a decline.

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Special Report 9-July-2018

RECOMMENDATIONS GUARGUM5 BUY GUARGUM JULY ABOVE 8630 TARGET 8680 8710 SL 8600 SELL GUARGUM JULY BELOW 8410 TARGET 8370 8340 SL 8440

NCDEX INDICES Index

Value

% Change

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

1470.5 4278 3612 4773 1542 3875.5

-0.57 2.1 0.89 0.82 0.72 -0.23

Jeera

18575

1.12

4001 3526 7150

-0.67 -1.48 0.3

Mustardseed Soy Bean Turmeric

USDA forecasts that China's soybean imports will increase to 100.5 MMT in MY18/19 from the estimated 97 MMT in MY17/18. This forecast, is 2.5 MMT lower than USDA's June forecast. Due to the combination of the moderate increase in domestic soybean production, together with the slowdown in growth of soybean meal use, a net growth of 3.5 MMT of soybean imports in MY18/19 is expected to meet the Chinese demand growth for protein meals.

CORINDER BUY CORIANDER JULY ABOVE 4830 TARGET 4860 4890 SL 4800 SELL CORIANDER JULY BELOW 4715 TARGET 4685 4655 SL 4745

U.S. soybean exports to China continue to face strong competition from soybean exports from South America. Excessive soybean stocks and a fall in the soybean price in Brazil attributed to the 14.2 MMT of Brazilian soybean exports to China in the first half of MY17/18. This is significantly higher than the 5.2 MMT during the same period in MY16/17. Despite China's net growth of over 2 MMT of soybean imports in the first half of MY17/18, total soybean imports from the United States fell to 24.4 MMT in this period, down from the 31.6 MMT in the previous year. Chinese importers note that Brazilian soybeans have a one percent higher protein content than U.S. soybeans. Importers were previously willing to pay a slightly higher price for soybeans with a higher protein content, but with the drop in the price of Brazilian soybeans, exports are now surging As per official data, Ukraine supplied some 1 MMT of wheat to foreign markets in May 2017/18. This was down 10% from April (1.1 MMT) but up 2% from May 2016/17 (986.8 KMT). In July-May 2017/18, wheat exports totaled 16.3 MMT, or 3% less than in the same period in MY 2016/17. Ukrainian wheat shipments to the European Union and Indonesia grew substantially in the current season. In the period under review, exports to Indonesia increased to 2.1 MMT that was 31% more than in the whole of MY 2016/17.

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Special Report 9-July-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

68.5757 Yen

62.2500

Euro

80.6328 GBP

91.1432

USD/INR BUY USDINR ABOVE 69.20 TGT 69.50/69.80 SL BELOW 69.00 SELL USDINR BELOW 68 TGT 67.80/67.55 SL ABOVE 68.20

GBP/INR BUY GBPINR ABOVE 91.50 TGT 91.70/91.90 SL BELOW 91.30 SELL GBPINR BELOW 91.20 TGT 91.00/90.70 SL ABOVE 91.50

The U.S. dollar was modestly lower on Friday as the salvos of a trade war between the U.S. and China began.The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies.Trade conflict between the two biggest economies in the world began in force on Friday, when U.S. tariffs on $34 billion worth of Chinese goods went into effect at 12:01 AM ET (04:01 GMT). An additional tariffs on another $16 billion expected to go into effect in two weeks. Meanwhile U.S. President Donald Trump has given instructions to identify a further $300 billion in possible Chinese goods. China has also retaliated with tariffs on $34 billion of American goods, according to Xinhua news. Beijing had previously said it would impose tariffs on U.S. agricultural products, crude imports, and vehicle products.The dollar was lower against the safe-haven yen, with USD/JPY decreasing 0.03% to 110.62. In times of uncertainty, investors tend to invest in the Japanese yen, which is considered a safe asset during periods of risk aversion.The euro gained ground, boosted by strong German industrial orders on Thursday and reports that the U.S. could soften its trade tariffs on European Union automakers. Major currencies trod water early on Friday as investor caution prevailed ahead of Washington's implementation of its threatened tariffs on Chinese goods and the U.S. jobs report due later in the day.The United States is due to begin collecting tariffs on $34 billion in Chinese goods at 0401 GMT on Friday. Focus has shifted to how China will retaliate and the potential volatility that could cause in the global financial markets. U.S. President Donald Trump warned that subsequent rounds of tariffs could apply to more than $500 billion of Chinese goods - roughly the amount that the United States imported from China last year as the world's two largest economies hurtled toward the start of a trade war. dollar index against at basket of six major currencies was a shade lower at 94.362 .DXY after slipping to 94.177, its lowest since June 26, the previous day.

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Special Report 9-July-2018

Date

Commodity/ Currency Pairs

06/07/18

NCDEX DHANIYA

JULY

BUY

06/07/18

NCDEX DHANIYA

JULY

SELL

06/07/18

NCDEX GUARGUM5

JULY

BUY

06/07/18

NCDEX GUARGUM5

JULY

06/07/18

MCX GOLD

06/07/18

Contract Strategy

Entry Level

Target

Stop Loss

Remark

4800

4830 4860

4770

SL TRIGGERED

4670 4640

4730

NOT EXECUTED

8400

8430 8460

8370

NOT EXECUTED

SELL

8140

8100 8070

8170

NOT EXECUTED

AUG

BUY

30970

31070-31270

30870

NOT EXECUTED

MCX GOLD

AUG

SELL

38830

30730-30530

30870

NOT EXECUTED

06/07/18

MCX SILVER

SEP

BUY

40000

40200-40500

40800

NOT EXECUTED

06/07/18

MCX SILVER

SEP

SELL

39600

39400-39100

40800

OPEN

Date

Scrip

CASH/ FUTURE/ OPTION

Strategy

Entry Level

Target

Stop Loss

Remark

06/07/18

NIFTY

FUTURE

BUY

10700-10710

10750-10800

10650

NOT EXECUTED

06/07/18

JETAIRWAYS

FUTURE

SELL

335-334

330-326

338

SL TRIGGERED

06/07/18

BHARATFIN

FUTURE

SELL

1194-96

1188-1180

1200

NOT EXECUTED

06/07/18

ADANITRANS

CASH

BUY

161.60-162

165-170

159

SL TRIGGERED

4700

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Special Report 9-July-2018

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

REPORT

PERIOD

ACTUAL

FORECAST

PREVIOUS

--

54.6

0.0%

1.8%

MONDAY, JULY 2 9;45 am

Markit manufacturing PMI (final)

June 10 am

10 am

Construction spending

May

TUESDAY, JULY 3

TUESDAY, JULY 3

TUESDAY , JULY 3

TUESDAY, JULY 3

TUESDAY, JULY TUESDAY, 3 JULY 3

Varies 10 am

Factory orders

May

-0.1%

WEDNESD AY, JULY 4

WEDNESDAY, JULY 4

WEDNES WEDNESDAY, JULY DAY, 4 JULY 4

THURSDA Y, JULY 5

THURSDAY, JULY 5

THURSD AY, JULY THURSDAY, JULY 5 5

8:15 am

ADP employment

8:30 am 9:45 am

-0.8%

WEDNESDAY, WEDNESD JULY 4 AY, JULY 4

THURSDAY, JULY 5

THURSDA Y, JULY 5

June

--

178,000

Weekly jobless claims

6/23

224,000

227,000

Markit services PMI (final)

June

56.5

10 am 2 pm

FOMC minutes

Disclaimer

FRIDAY, JULY 6

FRIDAY, JULY 6

FRIDAY, JULY 6

FRIDAY, JULY 6

FRIDAY, JULY 6

FRIDAY, JULY 6

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