Special report-10-august-epic-research2018

Page 1

Special Report 10-Aug-2018

Global markets at a glance The S&P 500 and Dow ended down slightly on Thursday as gains in Apple and Amazon were offset by losses in energy and financial shares. Tesla Inc's shares also fell to a two-day low and wiped out all of the gains fuelled by Chief Executive Elon Musk's recent tweet announcing a plan to take the company private. The stock ended down 4.8 percent. The S&P 500 was in slightly positive territory most of the day, putting it once again close to the record high it hit Jan. 26. The Nasdaq also neared its all-time high.Shares of Apple rose 0.8 percent, while those of Amazon were up 0.6 percent. "It's hard pressed for this market to really leap ahead. It's been a slow, steady climb, led by an increasingly smaller number of companies," said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey. Asian stock markets fell on Friday amid heightened global trade tensions, while currency markets were whipsawed by a searing selloff in Russia's rouble after the United States slapped on new sanctions, and as economic worries sent the Turkish lira tumbling. Washington said it would impose fresh sanctions because it had determined that Moscow had used a nerve agent against a former Russian agent and his daughter in Britain, which the Kremlin denies. Previous day Roundup The Nifty50 after opening sharply higher hit a fresh intraday record high in the morning and remained rangebound throughout the session on Thursday, but the index formed small bearish candle on the daily charts as closing value is lower than opening value. Not only frontline indices but also broader markets ended higher. The Nifty Midcap index was up half a percent while the BSE Sensex closed above psychological 38,000-mark for the first time, up 136.81 points at 38,024.37. The Nifty50 after opening at 11,493.25 touched a fresh all-time high of 11,495.20 and traded in about 40-point range for rest of the session. The index ended at fresh record closing high of 11,470.70, up 20.70 points, and is 29 points away from 11,500 levels. India VIX moved up by 1.33 percent at 12.70. Overall lower volatility suggests that bulls are likely to hold the market. 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

AXISBANK

621.35

4.2

-

ICICIBANK

332

4.17

-

HINDALCO

228.1

3.4

-

SBIN

317.65

2.9

-

VEDL

230.55

2.56

-

CMP

Change

% Chg

BHARTIARTL TITAN ONGC CIPLA

367 914.95 169 621.05

-4.75 -2.14 -2.03 -1.82

-

IBULHSGFIN

1,348.80

-1.56

-

Top Losers Company

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

AARTIIND

1397.85

35.15

2.51

ATUL

2977.75

156.45

5.25

BAJFINANCE

2813.15

12.3

0.44

20.55

1

4.87

692.75

37.25

5.38

BALAXI BANDHANBNK

Stocks at 52 Week’s LOW Symbol

ABGSHIP ANKITMETAL APARINDS BYKE CURATECH

Prev. Close

Change

%Chg

5.15 0.55 604.5 117.85 3.6

0.15 0 -16 -0.35 0

2.91 0 -2.65 -0.3 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 10-Aug-2018

RECOMMENDATIONS [FUTURE] 1.ASHOKLEY [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 130.50 zones since it is the only nearest resistance level to extend its move towards 137-140 so we advice you to buy around the levels of 130.50-131 for the target of 133136 with stoploss below 129.

2.SUNTV [FUTURE]

The particular counter is showing a clear sign of correction from its higer levels of 835 with stochastic momentum indicator giving a overbought signal ie., above 90 as per the candlestick pattern a hanging man candle is found around the reistance level of 835 here sell on high would be good opportunity to grab so we advice to sell suntv around the levels of 835-832 for the targets of 824-810 with stoploss above 842.

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 flat opening for the broader index in India, a fall of 4.5 points or 0.04 percent. Nifty futures were trading around 11,483level on the Singaporean Exchange.  A total of 117 fresh cases were taken up for investigation by (SEBI) in 2017-18, marking a decline of 52 percent from the preceding financial year, as per the markets regulator's latest annual report. The cases were related to alleged violation of securities law including market manipulation and price rigging."During 2017-18, 117 new cases were taken up for investigation and 145 cases were completed compared to 245 new cases taken up and 155 cases completed in 2016-17," the report noted. Sebi said 34 percent of the total cases taken up for investigation in 2017-18 pertained to market manipulation and price rigging.Besides, insider trading, takeover violation, among others, accounted for 15 percent of the total cases, while 51 percent were related to other violations of securities laws.  Crude prices settled slightly lower on Thursday, extending the previous session’s losses as the escalating China-US trade dispute casts doubt over the outlook for oil demand. Brent crude futures fell 21 cents to settle at USD 72.07 a barrel. US crude fell 13 cents to USD 66.81 a barrel.

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Special Report 10-Aug-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION Symbol

Optio Strike n Price Type

BANKNIFTY

Jindal Steel & Power: Q1 profit at Rs 180.8 crore versus loss of Rs 387.1 crore; revenue surges 70.5 percent to Rs 9,665.4 crore versus Rs 5,668.2 crore (YoY).

3,28,560  36,78,525

Aurobindo Pharma: Q1 profit falls 12.1 percent to Rs 455.6 crore versus Rs 518.3 crore; revenue jumps 15.5 percent to Rs 4,250 crore versus Rs 3,678.7 crore (YoY).

LTP

Traded Volume (Contracts)

CE

27,900 206.15

1,92,819

NIFTY

CE

11,500

98.7

1,48,296

NIFTY

CE

11,400 158.7

97,644

RELIANCE

CE

1,200

41.1

8,280

RELIANCE

CE

1,220

29.7

8,115

17,03,000 NIFTY FUTURE 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

BANKNIFTY

PE

NIFTY

Open Interest

26,13,750

2,83,500

LTP

Traded Volume (Contracts)

Open Interest

27,400

4

1,35,990

4,23,720

PE

11,400

91.4

1,27,098

23,84,475

NIFTY

PE

11,300

63

1,12,589

LUPIN

PE

800

17.5

5,470

RELIANCE

PE

1,180

12.3

5,038

RELIANCE

PE

1,160

8.5

4,560

MARUTI

PE

9,000 105.05

4,367

ICICIBANK

PE

41,25,375 The Nifty50 after opening sharply higher hit a fresh 4,15,800 intraday record high in the morning and remained rangebound throughout the session on Thursday, but 14,27,000 the index formed small bearish candle on the daily charts 13,49,000 as closing value is lower than opening value. we advice 78,750 you to sell nifty future around the levels of 11480-60 for the targets of 11400-350 with stoploss below 11530. 36,98,750

300

4.65

3,213

FII DERIVATIVES STATISTICS BUY

SELL

No. of Contracts

Amount in Crores

INDEX FUTURES

17540

1725.85

20659

2008.19

INDEX OPTIONS

924466

99449.75

918776

STOCK FUTURES

174791

12167.43

STOCK OPTIONS

111289

8417.43

OPEN INTEREST AT THE END OF THE DAY

No. of Amount in No. of Contracts Crores Contracts

Amount in Crores

NET AMOUNT

320927

28303.31

-282.3357

98849.54

656966

58773.38

600.2065

166114

11608.50

1128815

84972.14

558.9315

112367

8528.15

127674

9947.80

-110.7233 766.079

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

11514.00

11492.00

11473.00

11451.00

11451.00

BANKNIFTY

28286.00

28174.00

28016.00

27904.00

27746.00

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Special Report 10-Aug-2018

RECOMMENDATIONS GOLD TRADING STRATEGY: BUY GOLD OCT FUT ABOVE 29750 TGT 29800 29900 SL BELOW 29650 SELL GOLD OCT FUT BELOW 29650 TGT 29600 29500 SL ABOVE 29750

SILVER TRADING STRATEGY: BUY SILVER SEP FUT ABOVE 38200 TGT 38400 38700 SL BELOW 38000 SELL SILVER SEP FUT BELOW 38000 TGT 37800 37500 SL ABOVE 38200

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 10-Aug-2018

RECOMMENDATIONS GUARGUM5 BUY GUARGUM OCT FUT ABOVE 9530 TGT 9600 9700 SL BELOW 9450 SELL GUARGUM OCT FUT BELOW 9430 TGT 9350 9250 SL ABOVE 9510

NCDEX INDICES Index

Value

% Change

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

1608 4631 4125 4944 1716 4395

-0.09 -1.03 -0.7 0.88 0.32 0.72

19670

-0.23

4060 3350 7120

-0.71 -0.06 -1.25

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 10-Aug-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

68.6240 Yen

61.8000

Euro

79.6327 GBP

88.3475

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 10-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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