special report 10 jan 2019 epicresearch

Page 1

Special Report

10–JAN-2019

Global markets at a glance Wall Street rallied for a fourth session on Wednesday, propelled by Apple, chipmakers and other trade-sensitive stocks after signs of progress in trade talks between the United States and China.The Dow Jones Industrial Average rose 0.39 percent to finish at 23,879.12 points, while the S&P 500 gained 0.41 percent to 2,584.96. The NasdaqComposite added 0.87 percent to 6,957.08.Asian shares began cautiously on Thursday, struggling to rise after a multi-day rally as markets await more news on USChina trade talks that have raised hopes of a deal to avert an all-out trade war.MSCI’s broadest index of Asia-Pacific shares outside Japan was a tad lower, trading not far off a near four-week high. Australian shares were down 0.2 percent, while Japan’s Nikkei eased 1.2 percent.Oil prices fell by 1 percent on Thursday on swelling US supply, although the mood in global markets was increasingly confident amid hopes the United States and China may soon end trade disputes that have undermined global economic growth.US West Texas Intermediate (WTI) crude oil futures were at $51.75 per barrel at 0113 GMT, down 61 cents, or 1.2 percent, from their last settlement.International Brent crude futures were down 1 percent, or 63 cents, at $60.81 per barrel. PREVIOUS DAY ROUNDOFF The Indian equity markets witnessed an extremely volatile trading session with wild swings recorded in benchmark indices at the fag-end of the session on Wednesday. For the day, the NSE Nifty managed to end 53 points higher at 10,855 led by strong gains in ITC and HDFC Ltd, which helped the index close higher for the fourth consecutive session. Bank Nifty too continued its strong momentum and managed to end the day 210 points higher on the back of a strong rally in Axis Bank and IndusInd Bank, consequently helping the index close at its highest levels since September 6, 2018.Bank Nifty futures, meanwhile, continued to witness a surge in opening interest, mainly fresh long positions. 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

23743

-0.36

S&P500

2584

+0.41

NASDAQ

6957

+0.87

FTSE100

6906

+0.66

20427 26462

+1.10 +2.27

NIKKEI HANG SENG

Top Gainers Company

CMP

Change

% Chg

Axis Bank

670.1

19.2

2.95

ITC

290.4

6.15

2.16

183.05

3.1

1.72

764.8

12.6

1.68

1,994.95

36

1.84

CMP

Change

% Chg

239 341.35 340.05 186.45 3,817.25

-8.95 -13.25 -11.9 -5.9 -99.05

-3.61 -3.74 -3.38 -3.07 -2.53

Tata Motors UPL HDFC

Top Losers Company

HPCL GAIL BPCL Yes Bank UltraTechCement

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

367.7

-0.85

-0.22

IOLCP

176.45

1.4

0.73

KILITCH

190.85

-2

-0.91

LIQUIDETF

1000

-0.01

0

MUTHOOTFIN

513.4

-0.55

-0.11

Prev. Close

Change

%Chg

HEXATRADEX

25.1

-1.2

-4.78

MIC

1.25

-0.05

-4

RAJRAYON TREJHARA ARROWTEX

0.15 46.5 21.5

-0.05 -2.3 -0.05

-33.33 -4.95 -0.23

ICICIBANK

Stocks at 52 Week’s LOW Symbol

Indian Indices Company

CMP

Change

% Chg

NIFTY

10849

47.6

0.44

SENSEX

36204

223.6

0.62

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Special Report

10–JAN-2019

RECOMMENDATIONS [FUTURE]

STOCK RECOMMENDATION [CASH]

1. STAR [FUTURE ]

REPCOHOME Stock has given the breakout of the neckline of the double In Star on daily chart as well as weekly we have seen the bottom pattern on the daily chart with the good volumes trend line breakout & also asending triangle breakout .In and closed near to days high. We recommend buying last two trading session strong buying force by trader . above 430 for the target of 435 with the stop loss of 420 Derivative data also suggest that traders are bullish on this . Our recommendation is Buy in range 477-480 Target 487/493 SL 468

MACRO NEWS 2. BHARAT FIN [FUTURE]

Tata Steel BSL said its board has approved a proposal to raise up to Rs 24,000 crore through an issue of preference shares to Tata Steel on private placement basis.Tata Steel last year acquired Tata Steel BSL, formerly known as Bhushan Steel, through its whollyowned subsidiary Bamnipal Steel.

Luxury car sales grew by nine percent in 2018, despite a week broader demand trend as manufacturers gear up for their new launches with a hope of no further penalty on their segment of vehicles this year.

Brokerages have largely maintained their positive view on IndusInd Bank after it reported steady financial performance for the December quarter. No divergences from the RBI inspection along with better earnings outlook ahead, analysts believe he stock could be a good bet.The lender reported a steady quarter with most parameters on expected lines. The ad-hoc provision on IL&FS exposure marred the reported performance.

In last hour our trading session we have seen buying in the stock . Closing of stock is above 50 days EMA with good volume . On daily chart stock is ready for breakout if nifty support . Our recommendarion is Buy in range 1010-1012 Target 1020/1030/1035 SL 995 .

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Special Report

10–JAN-2019

STOCKS IN NEWS

MOST ACTIVE CALL OPTION Symbol

Optio Strike n Price Type

BANKNIFTY

CE

BANKNIFTY

LTP

Traded Volume (Contracts)

Open Interest

27,700

76 15,02,283

7,01,600

CE

27,800

41.5 12,74,345

BANKNIFTY

CE

27,600 127.2 10,99,462

INDUSINDBK

CE

1,600

44.8

11,848

YESBANK

CE

200

8.25

6,952

RELIANCE

CE

1,140

19.2

6,230

RELIANCE

CE

1,120

26.8

5,393

INDUSINDBK

CE

1,640 24.85

5,092

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

Optio Strike n Price Type

BANKNIFTY

Delta Corp: Board fixed January 21 as record date for ascertaining entitlement for the payment of interim dividend.

Yes Bank: Board finalised names of potential candidates 7,73,280 for the position of MD & CEO and will submit an 4,39,240 application to the Reserve Bank of India on January 10, seeking approval for the appoinbnent of the new MD & 4,61,100 CEO. 73,64,000 15,72,500 NIFTY FUTURE Nifty followed global market and started with gap up but today PSU and Metal share made 12,55,000 pressure in market due to that whole day Nifty traded in 2,58,000 sideways and in last one hour it loosed almost fifty per cent gains in intraday. On daily chart it created bearish 2,83,500 candle since Nifty forming Open Broadening pattern so Open we it will be buy in decline around 10850 with stop loss o Interest 10770 for the target of 10920/10970.

LTP

Traded Volume (Contracts)

PE

27,500 34.55

12,85,288

7,76,220

BANKNIFTY

PE

27,400

18

10,79,440

6,68,920

BANKNIFTY

PE

27,300

10

9,41,398

7,97,480

INDUSINDBK

PE

1,500

11

5,734

3,58,500

RELIANCE

PE

1,100

24

4,648

7,01,000

INDUSINDBK

PE

1,560

21.5

4,438

2,53,800

YESBANK

PE

180

9.6

4,066

25,41,000

RELIANCE

PE

1,080 16.25

3,655

6,10,500

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

51682

3809.87

47972

3349.39

398878

31476.85

460.4813

INDEX OPTIONS

2189187

129123.93

2164697

127874.85

727992

54781.09

1249.0744

STOCK FUTURES

207573

12377.69

215406

12744.15

1358275

82898.30

-366.4586

STOCK OPTIONS

120212

7125.50

119307

7089.91

124498

7282.46

35.5899 1378.687

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

10946

10900

10825

10779

10704

BANKNIFTY

27973

27846

27628

27501

27283

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Special Report

10–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 Import of Soya bean Oil and Palm Oil from Bangladesh to India has almost hampered since September last year, after cheerful three months, as India tightened duty-free import of the products from Bangladesh to protect the local millers.Since demand for Edible Oil increased in India, import of Soya bean and Palm Oil by Indian traders from Bangladesh stood at $83.80 million in July-September of the current fiscal year (2018-2019).In October-December quarter Indian traders imported Edible Oil worth only $3.84 million, taking the total import to $87.64 million in JulyDecember.Export Promotion Bureau data showed that the export of Soya bean Oil to India was $48.53 million in JulySeptember of FY19 and the export of the item was only $0.3 million in October-December of FY19. Export of Palm Oil to India in the first quarter of FY19 was $35.27 million but the export was only $3.55 million in the second quarter of FY19. Rice procurement this season crossed 263 lakh tonnes as of 4th January 2019 compared with 254 lakh tonnes in the last year till January 2018.While procurement has marginally trailed this year in traditional states like Punjab and Uttar Pradesh, the pre-poll announcement of bonus has bolstered arrival of paddy in Chhattisgarh and Telangana. Rice procurement is higher than last year so far and it may turn out to be a record high if the trend reflects in Andhra Pradesh and West Bengal where procurement lasts till June,” said a top official of Food Corporation of India.After a sluggish beginning, paddy procurement picked up in UP in the last few weeks as the state relaxed procurement norms. The state allowed up to 35% of hybrid paddy in overall procurement.“Procurement has picked as Uttar Pradesh government has announced various relaxations including 3 per cent higher Out Turn Ratio for hybrid paddy,” a senior official of Uttar Pradesh food and supplies department said. India’s tea exports declined marginally to 225.76 million kg during the January-November period in 2018 from 226.04 million kg exported during same period the previous year, according to data from Tea Board India. Tea exports, in value terms, during the eleven month period was up by about 3.2% to Rs 4,624.34 crore as against Rs 4,478.24 crore in the year-ago period.

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Special Report

10–JAN-2019

RECOMMENDATIONS GUARGUM5 TRADING STRATEGY: BUY GUARGUM JAN ABOVE 8380 TARGET 8395/8420/8440 SL 8320 SELL GUARGUM JAN BELOW 8350 TARGET 8335/8320/8290 SL8410

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 6020 TARGET 6035/6055/6080 SL 5960 SELL DHANIYA JAN BELOW 6000 TARGET 5985/5960/5940 SL 6060

The United States and China will continue trade talks in Beijing for an unscheduled third day, a member of the U.S. delegation said on Tuesday amid signs of progress on issues including purchases of U.S. farm and energy commodities and increased access to China's markets. Trump, in a post on Twitter on Tuesday, reiterated his recent statement that the talks with China were going well but gave no details.An index of world stock markets rose for the third straight session on Tuesday, with investors hopeful that the United States and China would strike a deal to end their monthslong trade war. MKTS/GLOB.Federal Reserve Chairman Jerome Powell said last week that the central bank was not on a preset path of rate hikes and will be sensitive to the downside risks markets are pricing in. Gold tends to gain when expectations of interest rate hikes ease because lower rates reduce the opportunity cost of holding nonyielding bullion and weigh on the dollar, in which it is priced.German industrial output unexpectedly fell in November for the third consecutive month, adding to signs that companies in Europe's largest economy are shifting into a lower gear due to mounting risks from abroad. British Prime Minister Theresa May's government suffered a defeat in parliament on Tuesday when lawmakers who oppose leaving the European Union without a deal won a vote on creating a fresh obstacle to a no-deal Brexit. Holdings of SPDR Gold Trust GLD , the world's largest goldbacked exchange-traded fund, fell 0.03 percent to 796.53 tonnes on Tuesday from 796.78 tonnes on Monday. GOL/ET Gold held steady on Wednesday as a surge in risk appetite on hopes of a Sino-US trade deal offset support from expectations of a pause in US Federal Reserve rate hikes.

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Special Report

10–JAN-2019

RBI Reference Rate Currency Rupee- $ Euro

Rate Currency

Rate

706425 Yen

64.97

80.99 GBP

90.02

USD/INR TRADING STRATEGY: USD/INR BUY USDINR FUTURE ABOVE 70.15 TARGET 70.25 70.35 SL 69.95 SELL USDINR FUTURE BELOW 70.4 TARGET 70.3 70.2 SL 70.6

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 dollar fell versus other major currencies for a fourth straight session on Tuesday, as investors grew increasingly convinced the Federal Reserve will not raise interest rates this year amid uncertainties over the US economy. The dollar index fell marginally to 95.64. It dipped 0.1 per cent against the yen and eased marginally versus the euro and sterling in early Asian trade. On Friday, Fed Chairman Jerome Powell told the American Economic Association the Fed is not on aa preset path of rate hikes and it will be sensitive to the downside risks markets are pricing in. The Indian Rupee reclaimed its key level of 70 against the dollar on Tuesday. The currency depreciated 15 paise to open at 69.83/$ compared to its previous close of 69.68.The domestic unit depreciated 41 paise to 70.09 against the dollar in intraday trade on Tuesday. At 9:40 AM IST, the currency was trading at 70.06/$.The fall could be attributed to increasing crude oil prices in the global market. Crude oil extended its six-day winning strike, with the international benchmark for oil prices, Brent gaining 0.2% at $57.47/barrels and West Texas Intermediate (WTI) crude rose 0.3% to $48.67/barrels. The gain in oil prices was on the back of optimism regarding a halt in the trade war between the United States and China. Further, falling crude oil supply from OPEC also kept oil prices Brent gaining 0.2% at $57.47/ barrels and West Texas Intermediate (WTI) crude rose 0 . 3 % t o $ 4 8 . 6 7 / b a r r e l s . The gain in oil prices was on the back of optimism regarding a halt in the trade war between the United States and China. Further, falling crude oil supply from OPEC also kept oil prices elevated. As per media reports, OPEC oil supply fell in December by 460,000 barrels per day (bpd) to 32.68mn bpd. US stock futures and European equities rose on Tuesday with investors eagerly awaiting news on any progress in trade talks between the US and China.Futures on the Dow, Nasdaq and S&P 500 all indicated to a firm opening after the US showed optimism for arriving at a “reasonable” deal

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Special Report

10–JAN-2019

Date

Commodity/ Currency Pairs

09/1/19

NCDEX DHANIYA

JAN

BUY

6020

09/1/19

NCDEX DHANIYA

JAN

Sell

09/1/19

NCDEX GUARGUM5

JAN

09/1/19

NCDEX GUARGUM5

09/1/19

Contract Strategy

Entry Level

Stop Loss

Remark

6035/6055/60 80

5960

TARGET

6000

5985/5960/59 40

6060

TARGET

BUY

8380

8395/8420/84 40

8320

NOT EXECUTED

JAN

SELL

8350

8335/8320/82 90

8410

TARGET HIT

MCX GOLD

JAN

BUY

31790

31840 31940

31720

09/1/19

MCX GOLD

JAN

SELL

31700

31650 31550

31770

09/1/19

MCX SILVER

MAR

BUY

39460

39600 39800

39260

NOT EXECUTED

09/1/19

MCX SILVER

MAR

SELL

39350

39200 39000

39550

TARGET HIT

Entry Level

Target

Stop Loss

Remark

Target

NOT EXECUTED

TARGET HIT

Date

Scrip

CASH/ FUTURE/ Strategy OPTION

09/1/19

NIFTY

FUTURE

BUY

10850

10920/10970

10750

OPEN

09/1/19

BEML

FUTURE

BUY

930

935/942

920

NOT EXECUTEED

09/1/19

AJANTA PHARAMA

FUTURE

BUY

1192

1200/1205

1170

NOT EXECUTEED

09/1/19

REPOHOME

CASH

BUY

430

435

420

OPEN

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Special Report

10–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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