Special Report 10 July 2018 Epic Research

Page 1

Special Report 10-July-2018

Global markets at a glance US stocks rose on Monday, helped by bank, industrial and energy shares, as investors looked ahead to a strong quarterly earnings season.

World Indices Index

Value

% Change

24,776.59

1.31

S&P500

2,793.00

0.20

Bank stocks were the biggest gainers, with the S&P banks index rising 2.3 percent, on track for its biggest percentage gain in over three months.

NASDAQ FTSE100

7,325.50 7,687.99

0.35 0.91

JPMorgan , Wells Fargo and Citigroup are scheduled to report results on Friday, kicking off the second-quarter earnings season in earnest.

22,249.15 28,808.03

0.89 0.41

Top Gainers

DJI

NIKKEI HANG SENG Company

CMP

Change

% Chg

A stronger economy and plans for more buybacks are helping bank shares, said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.

Vedanta

226.60

7.50

3.42

Yes Bank

363.30

10.70

3.03

Asian Paints

1,363.10

39.95

3.02

Dr Reddys Labs

2,330.05

61.00

2.69

Asian shares sought to rally for a third session on Tuesday as hopes for upbeat corporate earnings buoyed Wall Street, while several high-profile resignations from Britain's government kept sterling on the defensive.

Axis Bank

525.25

11.55

2.25

CMP

Change

% Chg

MSCI's broadest index of Asia-Pacific shares outside Japan put on 0.2 percent in early trade, adding to a 1.3 percent rise on Monday.

TCS UltraTechCement Titan Company Zee Entertain

1,883.00 3,899.25 821.80 540.60

-29.95 -55.10 -7.85 -4.10

-1.57 -1.39 -0.95 -0.75

Previous day Roundup

Hero Motocorp

3,611.50

-25.60

-0.70

The Nifty, which started off the week on a positive note, maintained uptrend throughout the session and managed to hold on to 10,850 levels at close on Monday, backed by positive global cues.The index made a bullish candle which looked like a 'Hanging Man' kind of pattern. The Nifty, which opened at 10,838.30, jumped to hit an intraday high of 10,860.35, before closing 80.20 points higher at 10,852.90.India VIX fell 0.68 percent to 12.36 levels. VIX has been falling down from last five trading sessions and lower volatility indicates bullish stance of 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[31.45pts], Consumption[34.60pts],PSE[26.75pts],CPSE [11.30pts],Energy[214.60pts],FMCG[242.90pts],Auto [67.80 pts],Pharma[11 7.70pts],IT[92.95 pts],Metal [44.30pts],Realty[2.05 pts], Fin Serv sector[66.65pts].

Top Losers Company

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

ALOKTEXT

0.95

-0.05

-5.26

ASIANPAINT

0.55

0

0

BERGEPAINT

648.95

46

7.09

BRITANNIA

24.15

-1.2

-4.97

CIGNITITEC

0.15

0.05

33.33

Stocks at 52 Week’s LOW Symbol

Prev. Close

Change

%Chg

301.25 8.25

-10 0.3

-3.32 3.64

APARINDS

0.55

0

0

ARSSINFRA AUSTRAL

654.6 148.3

-3.05 -2.05

-0.47 -1.38

ANKITMETAL ANTGRAPHIC

Indian Indices Company

CMP

Change

% Chg

NIFTY

10852.90

80.20

0.74

SENSEX

35934.72

276.86

0.78

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Special Report 10-July-2018

RECOMMENDATIONS [FUTURE] 1.EXIDEIND [FUTURE ] The particular counter has closed just below its 52 weeks high ie., 269.80 which is also acting as a crucial resistance level, here we advice you to BUY EXIDEIND FUTURE AROUND 269.90-270.50 TGT 274-278 SL BELOW 267

2.TATAGLOBAL [FUTURE] Due to the strength in the FMCG sector, this stock has rebounded from its 200 DAYS SMA, in todays trading session it can show some correction after bouncing from its support level of 271 here we can buy on reversal so we advice to BUY TATAGLOBAL AROUND 271.50-272.50 TGT 277-285 SL BELOW 268

STOCK RECOMMENDATION [CASH] SREINFRA [CASH] The particular conter is consolidating within a range from where we can get a breakout above 63, here we advice to buy around 63-63.10 TGT 64-65 SL BELOW 62

MACRO NEW  Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 32.5 points or 0.3 percent. Nifty futures were trading around 10,902level on the Singaporean Exchange.  Oil prices rose on Tuesday on escalating concerns about potential supply shortages, with Brent crude leading the way as hundreds of oil workers in Norway are set to strike later in the day after failed wage talks.Brent crude had added 25 cents, or 0.3 percent, to USD 78.32 per barrel following a 1.2-percent climb on Monday. US light crude futures were up by 17 cents, or 0.2 percent, at USD 74.02. They gained 5 cents to settle at USD 73.85 a barrel the session before.  Hiring activity registered nine percent rise in June driven by significant growth in real estate, automobile and telecom sectors, says a report. Naukri Job Speak Index for June 2018 stood at 2,047, registering 9 percent rise compared to the previous year when it stood at 1,885.“Non-IT sectors viz auto, auto ancillary, real estate, construction and BFSI continue to lead the growth. We can expect the job market to be cautiously optimistic and move further north in the months to come,” Naukri.com chief sales officer V Suresh said.  A panel comprising government officials has proposed 46 categories of amendments in GST-related laws, with a broader idea to reduce compliance burden, simplify the indirect tax system and bring more entities under the tax net.

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Special Report 10-July-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION Symbol

Otco International - Rs 10 to Rs 2

Karnataka Bank introduces cash@PoS facility

NIFTY

CE

10,900

78.8

1,27,299

30,57,150 NIFTY FUTURE

NIFTY

CE

11,000

40.3

1,18,433

37,56,450

NIFTY

CE

10,800 135.7

1,02,001

36,29,550

RELIANCE

CE

1,000

22.8

6,436

27,57,000

TCS

CE

1,900

40.8

5,397

13,72,000

RELIANCE

CE

1,020

15

4,540

24,04,000

TATAMOTORS CE

280

6.25

4,322

51,15,000

TATASTEEL

580

8.7

4,298

30,81,144

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

Optio Strike n Price Type

LTP

Open Interest

TCS, IndusInd Bank, Prakash Industries, Kore Foods .

LTP

CE

Traded Volume (Contracts)

Optio Strike n Price Type

2,83,500

Traded Volume (Contracts)

NIFTY

PE

10,800

81

1,21,147

BANKNIFTY

PE

26,200

13.5

1,11,980

NIFTY

PE

10,700

53.5

97,281

RELIANCE

PE

960

7.85

3,141

RELIANCE

PE

980

13.7

2,956

TCS

PE

1,850 25.85

2,824

RELIANCE

PE

940

4.3

2,249

TCS

PE

1,800

11.6

2,062

Open Interest

The Nifty, which started off the week on a positive note, maintained uptrend throughout the session and 27,60,000 managed to hold on to 10,850 levels at close on Monday, 4,60,760 backed by positive global cues. The index made a bullish candle which looked like a 43,13,400 'Hanging Man' kind of pattern. The Nifty, which opened 12,19,000 at 10,838.30, jumped to hit an intraday high of 11,56,000 10,860.35, before closing 80.20 points higher at 10,852.90.We recommend to BUY NIFTY FUTURE 5,94,500 AROUND 10820-10840 TGT 10880-10940 SL ABOVE 15,05,000 10780. 7,43,000

FII DERIVATIVES STATISTICS BUY

SELL

No. of Contracts

Amount in Crores

INDEX FUTURES

23062

2036.86

21474

1881.01

INDEX OPTIONS

503588

45579.22

502524

STOCK FUTURES

167584

10769.56

STOCK OPTIONS

83331

5605.05

OPEN INTEREST AT THE END OF THE DAY

No. of Amount in No. of Contracts Crores Contracts

Amount in Crores

NET AMOUNT

244597

19971.26

155.8563

45507.63

631101

52433.20

71.5907

158873

10289.67

1139794

79121.40

479.8846

84049

5687.91

69089

4671.77

-82.8658 624.4658

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

10892.00

10872.00

10839.00

10819.00

10786.00

BANKNIFTY

26885.00

26819.00

26715.00

26649.00

26545.00

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Special Report 10-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

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

COMMODITY ROUNDUP COMEX Gold slipped from a one week high as a recovery in US equities clubbed with cues from latest Fed minutes weighed on the metal after prices edged up from a seven month low. The US Federal Reserve is likely to go ahead with interest rate hikes despite mounting concerns about a possible trade war, according to the minutes of the Fed's June meeting. At that meeting, the Fed raised rates and projected four rate increases in 2018 instead of three previously planned. The central bank maintained its outlook for three rate hikes in 2019. MCX Gold futures ended around Rs 30560 per 10 grams after a modest recovery. Local demand is expected to edge up in second half of the year following the current economic momentum though a good monsoon is very much required to sustain rural earnings. Gold has not gained much prominence despite this mayhem of global trade front. Meanwhile, over the past decade, the technology sector has accounted for more than 380 tonnes of gold demand annually, a significant figure in itself and almost 13% ahead of central bank net purchases during the same period. Yet gold’s role in this vibrant and growing industry is broadly unrecognised and often misunderstood, according to Aram Shishmanian, CEO of World Gold Council (WGC). Copper snapped back sharply on Monday from near oneyear lows hit in the session, as a weak dollar forced short holders to cover positions even amid simmering trade war tension. London Metal Exchange copper rallied by 1.6 percent to $6,383.50 after prices slumped to $6,221.50 a tonne on Friday, which was the weakest since late July 2017. There is still huge tightness between the July-August copper contract, suggesting shorts may have to deliver into warehouses in the next week if they can. Indian Copper is set to rebound higher in today's opening session. The prices were down at Rs 431 per kg last week. Expectations for a jump towards Rs 435 per kg cannot to ruled out in Copper. The U.S. economy created more jobs than expected in June, but steady wage gains pointed to moderate inflation pressures that should keep the Federal Reserve on a path of gradual interest rate increases this year. The global economy is starting to show signs of strain from the ??? America First??? push of U.S President Donald Trump who will hear renewed pleas to step back from a broader trade war when he visits Europe in the coming week.

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Special Report 10-July-2018

RECOMMENDATIONS GUARGUM5 BUY GUARGUM OCT ABOVE 8970 TARGET 9000 9030 SL 8940 SELL GUARGUM OCT BELOW 8970 TARGET 8940 8910 SL 9000

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

CORINDER BUY CORIANDER AUG ABOVE 4900 TARGET 4930 4960 SL 4870 SELL CORIANDER AUG BELOW 4800 TARGET 4770 4740 SL 4830

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. 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 10-July-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

68.6573 Yen

62.1600

Euro

80.7822 GBP

91.4653

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

Staging a mild recovery from a record closing low, the rupee edged up by 8 paise to end at 68.87 against the US currency, largely tracking gains in key Asian units amid weak dollar tone overseas. The domestic bourses too enjoyed a healthy weekend run. The outcome of the latest FOMC meeting minutes and the release of better-than-expected US ISM nonmanufacturing PMI numbers did little to influence the home currency even as investors braced for a potential interest rate hikes near term. Though, the rupee briefly slipped below 69 levels in midmorning deals but managed to recoup losses on apparent intervention by the Reserve Bank, coupled with greenback selling by exporters. The Indian rupee hit a record closing low of 68.95 on Thursday following a panic demand for the US dollar coupled with savage capital flight worries.

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

Meanwhile, fears over a slowdown in the country's economy in the midst of surging international crude oil prices and widening current account deficits predominantly kept the forex sentiment highly nervous. Meanwhile, the latest FOMC June meeting minutes showed that policy makers remain wary over intensifying trade disputes but were still on track for gradual monetary policy tightening cycle. Worrying development on escalation of trade conflict between the world's two biggest economic powers with the US President's latest salvo were largely weighed on the currency and financial markets worldwide with investors on edge awaiting the next developments. The response among major currencies, however, was fairly limited. The Chinese government retaliated immediately against US President Donald Trump's USD 34 billion tariff package with a simultaneous set of counter measures and accused Washington of starting "the largest trade war in history".

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Special Report 10-July-2018

Date

Commodity/ Currency Pairs

09/07/18

NCDEX DHANIYA

JULY

BUY

09/07/18

NCDEX DHANIYA

JULY

SELL

09/07/18

NCDEX GUARGUM5

JULY

09/07/18

NCDEX GUARGUM5

09/07/18

Contract Strategy

Entry Level

Target

Stop Loss

Remark

4830

4860 4890

4800

NOT EXECUTED

4715

4685 4655

4745

NOT EXECUTED

BUY

8630

8680 8710

8600

TGT HIT

JULY

SELL

8410

8370 8340

8440

SL TRIGGERED

MCX GOLD

AUG

BUY

30750

30800 30850

30700

SL TRIGGERED

09/07/18

MCX GOLD

AUG

SELL

30540

30500 30450

30600

NOT EXECUTED

09/07/18

MCX SILVER

SEP

BUY

39920

39970 40020

39870

TGT HIT

09/07/18

MCX SILVER

SEP

SELL

39670

39620 39570

39720

NOT EXECUTED

Date

Scrip

CASH/ FUTURE/ OPTION

Strategy

Entry Level

Target

Stop Loss

Remark

09/07/18

NIFTY

FUTURE

BUY

10720-10740

10800-10850

10680

NOT EXECUTED

09/07/18

INFY

FUTURE

BUY

1310-1312

1325-1350

1300

NOT EXECUTED

09/07/18

APOLLOTYRE

FUTURE

BUY

254-254.50

258-262

251

NOT EXECUTED

09/07/18

SHANKARA

CASH

BUY

1590-1600

1640-80

1570

SL TRIGGERED

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Special Report 10-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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