Special report-10-october-2018-epic-research

Page 1

Special Report 10-Oct-2018

Global markets at a glance The Dow and S&P 500 ended slightly lower on Tuesday as investors, worried about global growth prospects, fled from materials and industrials stocks but falling bond yields kept declines in check in the three major indexes. The International Monetary Fund cut global economic growth forecasts for 2018 and 2019 and its 2019 US and China estimates, saying the two countries would feel the brunt of their trade war next year. Meanwhile, US President Donald Trump repeated a threat to impose tariffs on USD 267 billion worth of additional Chinese imports if Beijing retaliates for the recent levies and other measures the United States has taken in the countries' escalating trade war. The materials index ended down 3.4 percent, its biggest one-day percentage drop since February 8. Chemical company PPG Industries was its biggest loser, falling 10 percent after warning that its current-quarter profit would be hit by higher raw material costs and softer demand in China. Asian shares steadied in early Wednesday trade after world stocks hit eight-week lows the previous day on worries about global economic growth, although the pound stayed firm on hopes for a Brexit deal. MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.3 percent, while Japan's Nikkei gained 0.25 percent. The Australian benchmark was up 0.11 percent. "As uncertainty continues to prevail in financial markets across the world, many investors are staying on the sidelines until more clarity emerges in US Treasury and Chinese markets," said Yasuo Sakuma, chief investment officer at Libra Investments. Previous day Roundup The Nifty 50 ended the volatile session sharply lower on October 9, weighed down by rupee's new low and crude volatility. The index made a bearish candle formation on the daily charts resembling a 'Bearish Engulfing' pattern. The Nifty 50 opened sharply higher at 10,390.30 and touched an intraday high of 10,397.60, but gradually wiped out gains in morning trade itself to trade lower.In the last hour of trade, it rebounded, but within a few minutes of trade, it caught in a bear trap again and fell sharply to hit day's low of 10,279.35. The index closed 47 points lower at 10,301 amid volatility. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[-24.15], C o n s u m p t i o n [ - 8 0 . 7 5 pt s ] , B a n k [ - 9 0 . 7 0 p t s ] , Au t o [ 236.20pts],FinService[36.50pts],Fmcg[-556.15pts],Media [50.05pts],P harma[132 .95 pts],IT[64 .80 pts],Metal [34.30pts],Realty[-2.00 pts], Pvt Bank[-37.80pts].

World Indices Index

Value

% Change

26,430.57

-0.21

S&P500

2,883.25

-0.17

NASDAQ

7,386.95

-0.11

FTSE100

7,237.59

0.06

23,416.28 26,275.12

-0.23 0.39

DJI

NIKKEI HANG SENG

Top Gainers Company

CMP

Change

% Chg

2,454.15

114.05

4.87

Adani Ports

318.75

14.40

4.73

Zee Entertain

432.80

18.75

4.53

Bajaj Finance

2,060.85

86.00

4.35

HDFC

1,712.75

45.05

2.70

CMP

Change

% Chg

184.35 749.50 21,085.70 171.25 1,201.40

-28.00 -64.05 -1049.05 -7.95 -46.40

-13.19 -7.87 -4.74 -4.44 -3.72

Dr Reddys Labs

Top Losers Company

Tata Motors Titan Company Eicher Motors HPCL Asian Paints

Stocks at 52 Week’s HIGH AIONJSW

43.35

2.15

4.96

JAINSTUDIO

6.35

0.3

4.72

LIQUIDETF

1000

0

0

PRAKASHSTL

0.85

0.05

5.88

0.9

0.05

5.56

-

-

-

Prev. Close

Change

%Chg

26.25 148.2 73.2 4 1005.05

-0.5 -7.4 0.6 -0.1 -25.05

-1.9 -4.99 0.82 -2.5 -2.49

SPCENET -

Stocks at 52 Week’s LOW Symbol

21STCENMGM 8KMILES ABAN ABGSHIP ACCELYA

Indian Indices Company

CMP

Change

% Chg

NIFTY

10301.00

-47.00

-0.45

SENSEX

34299.47

-174.91

-0.51

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Special Report 10-Oct-2018

RECOMMENDATIONS [FUTURE] 1. TECHM [FUTURE ] This particular counter has made a doji at the support level of 690 it is showing a clear sign of reversal from its specified lower levels with stockhastic momentum indicator around 10. A chance of bounce back can be found from here so long position can be made around 690-692 for the possible targets of 700-710 sl below 682.

2. ITC [FUTURE] The partiuclar counter is showing a tendency to rebound from its support level of 268,today if its resist at this level then we can get a opportunity of buy on dip so we advice to sell itc future around 268-270 for the targets of 274-278 with stoploss above 266.

STOCK RECOMMENDATION [CASH] MINDTREE [CASH] From the daily chart its clear that after moving in continuous downtrend the particular script has got a support at its important level of 980, it has made a spinning top candle which is a reversal candle at its support level so we advice to buy mindtree around 10051008 for the target of 1025-1040 with stoploss below 995.

MACRO NEWS  Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 40 points or 0.4 percent. Nifty futures were trading around 10,353level on the Singaporean Exchange.  Oil prices edged lower on Wednesday after the IMF lowered its global growth forecasts but prices were supported as Hurricane Michael churned towards Florida, causing the shutdown of nearly 40 percent of US Gulf of Mexico crude output.  The Reserve Bank announced it will inject Rs 12,000 crore liquidity into the system through purchase of government bonds on October 11 to meet the festival season demand for funds. The government will purchase bonds with maturity ranging between 2020 to 2030, the RBI said in a statement.  Tata Consultancy Services is set to kick off JulySeptember quarter earnings season on October 11. Almost all analysts on the Street already predicted that the rupee tailwind is likely to play big role in earnings of IT companies.Most experts expect TCS to lead the sector with revenue growth in the range of 3.5-4.5 percent sequentially. ICICI Securities expects profit to grow 7.7 percent sequentially to Rs 7,905.4 crore while Emkay sees profit growth of 8.6 percent QoQ. Sharekhan expects bottomline growth at around 8.8 percent QoQ.

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Special Report 10-Oct-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION

NALCO meeting of board of directors of the company will be held on October 12, 2018 to consider the proposal for buyback of the fully paidup equity shares of the company

1,61,343

30,03,450  5,35,120

43.5

1,42,774

23,03,325

Tata Motors: Group global wholesales in September 2018, including Jaguar Land Rover, were at 1,23,577 numbers, higher by 6 percent compared to September 2017.

200

6.45

12,942

TATAMOTORS CE

230

1.35

12,339

26,17,500  30,75,000

TATAMOTORS CE

240

0.75

12,304

35,77,500

TATAMOTORS CE

220

2.3

9,111

24,46,500

TATAMOTORS CE

210

3.8

8,728

17,79,000

Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

NIFTY

CE

10,500

73

1,75,605

BANKNIFTY

CE

25,300

6

NIFTY

CE

10,600

TATAMOTORS CE

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

Optio Strike n Price Type

BANKNIFTY

PE

23,900

NIFTY NIFTY

Open Interest

Bharat Gears: Board approved the Rights issue of equity shares upto Rs 15 crore to the existing shareholders of the company.

NIFTY FUTURE

2,83,500

LTP

Traded Volume (Contracts)

Open Interest

38

1,25,657

4,01,880

PE

10,300 166.9

1,19,240

18,57,975

PE

10,200

130

1,09,442

18,64,575

TATAMOTORS PE

180 10.95

11,481

TATAMOTORS PE

160

5.6

10,406

TATAMOTORS PE

170

7.95

8,118

TATAMOTORS PE

190

15.2

6,490

TATAMOTORS PE

200

21

6,095

Yesterday nifty future showed range bound movement 11,85,000 between 10414-10300, 10200 is a crucial support level 17,73,000 which it failed to break , around 10215 it showed sudden 10,90,500 bounce back but got resistance from 10420 here you can go for sell on rise strategy around 10470-50 for the 5,50,500 targets of 10400-10350 with stoploss above 10550. 12,93,000

FII DERIVATIVES STATISTICS BUY

SELL

No. of Contracts

Amount in Crores

INDEX FUTURES

78865

6536.12

67988

5618.32

INDEX OPTIONS

1304282

114888.81

1321417

STOCK FUTURES

326210

18973.48

STOCK OPTIONS

125066

8347.18

OPEN INTEREST AT THE END OF THE DAY

No. of Amount in No. of Contracts Crores Contracts

Amount in Crores

NET AMOUNT

283509

22054.94

917.8021

116484.01

930650

75054.75

-1595.1941

302525

17639.13

1285860

82670.72

1334.3467

124348

8250.07

96520

6248.54

97.1182 754.0729

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

10443.00

10372.00

10325.00

10254.00

10207.00

BANKNIFTY

24878.00

24702.00

24583.00

24407.00

24288.00

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Special Report 10-Oct-2018

RECOMMENDATIONS GOLD TRADING STRATEGY: BUY GOLD DEC FUT ABOVE 31310 TGT 31350 31400 SL BELOW 31260 SELL GOLD DEC FUT BELOW 31250 TGT 31200 31150 SL ABOVE 31300

SILVER TRADING STRATEGY: BUY SILVER DEC FUT 38670 TGT 38720 38770 SL BELOW 38620 SELL SILVER DEC FUT 38540 TGT 38500 38450 SL ABOVE 38590

COMMODITY ROUNDUP COMEX Gold recovered from lows near $1200 per ounce levels as soaring crude oil futures and weak US dollar boosted the metal. The US dollar index is hovering under 94 mark - its lowest level in around three months though some recovery can be seen in the greenback ahead of the Fed monetary policy meet today. COMEX Gold is currently trading at $1206 per ounce, up marginally on the day. Continued strength in US economic data can also support the dollar. US consumer confidence climbed to 138.4 in September from an upwardly revised 134.7 in August, according to a report released by the Conference Board on Tuesday. With the unexpected increase, the consumer confidence index reached a new 18-year high and is not far from the all-time high of 144.7 reached in 2000.MCX Gold futures closed around Rs 30800 per 10 grams, down marginally on the day. Brent Crude oil prices soared to a four-year high around 81 per barrel on US sanctions on Iranian crude exports and steady cues from global stock markets. MCX Copper futures pulled back slightly today after hitting near three month highs around Rs 460 per kg as a recovery in Indian Rupee and mixed undertone in global Copper market weighed on the counter. COMEX Copper futures steadied around $2.86 per pound- their two month high as risk sentiment mostly remained supported with oil prices holding near four-year highs. However, the lingering USChina trade tension and the upcoming Federal Reserve meeting capped the gains for global equities. The Indian Rupee moved lower in early moves, threatening to test yet another record low near 73 per US dollar mark but flipped back the direction in afternoon as local equities soared sharply from their two and half month lows. The INR also eventually gained following this and ended just under 72.70 per dollar mark. This strength in the local currency hurt MCX Copper and the benchmark MCX Copper futures are quoting at Rs 458.85 per kg, down marginally in red. Brent Crude oil prices soared to a four-year high around 81 per barrel on US sanctions on Iranian crude exports and steady cues from global stock markets. Long-term global crude oil demand has been revised upward for the second consecutive year, with total demand at over 111.7 mb/d in 2040, according to the 2018 OPEC World Oil Outlook (WOO). Total primary energy is set to expand by a robust 33% between 2015 and 2040, driven predominantly by Developing countries, which see almost 95% of the overall energy demand growth. MCX Crude ended at Rs 5266 per barrel, down 0.13% on the day following a correction under Rs 5300 on strength in the Indian Rupee.

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Special Report 10-Oct-2018

RECOMMENDATIONS GUARGUM TRADING STRATEGY: BUY GUARGUM OCT FUT ABOVE 9050 TGT 9100 9150 SL BELOW 9000 SELL GUARGUM OCT FUT BELOW 8990 TARGET 8950-8900 SL 9040

NCDEX INDICES Index

Value

% Change

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

1782 4730 4180 4860 1720 4175

-0.64 0.34 0.05 -1.04 0.53 -0.04

19400

-0.87

4078 3212 6900

-0.37 0.16 -0.49

Jeera Mustardseed Soy Bean Turmeric

Selling intensified in mustard seed market on poor demand from millers in local mandies. The market sources added that rise in sowing acreage of kharif oilseeds along with favourable monsoon rainfall in Rajasthan and Gujarat will encourage mustard seed crop sowing in the current season. The spot prices in Jaipur mandi are trading around Rs 4000 per quintal, down Rs 15 per quintal on the day.

DHANIYA TRADING STRATEGY: BUY DHANIYA OCT FUT ABOVE 4950 TGT 5000 5050 SL BELOW 4900 SELL DHANIYA OCT FUT BELOW 4800 TARGET 4750-4700 SL 4850

The latest report of United States Department of Agriculture (USDA ) has raised India's total oilmeal exports in MY 2017/18 to settle at 2.4 MMT, 0.3 MMT above previous estimate. Indian soymeal prices have declined from $486/MT in February 2018 to $433/MT in July 2018, but are still 10 percent higher than soymeal from the United States and Brazil. Stronger demand from South Korea, Japan, Thailand, Sri Lanka, and France have helped spur Indian soymeal sales. Similarly, Indian rapeseed meal prices have dropped by more than $33/MT to $217/MT, as of July 2018, which is approximately $47/MT lower than other international suppliers. As a result, rapeseed meal sales to South Korea, Vietnam, Thailand, Taiwan and other South East Asian countries have improved. The MY 2018/19 oilmeal export forecast remains unchanged at 2.9 MMT, but USDA notes that the future direction of India's exports will depend on price competitiveness of Indian oilmeals in the international markets and local demand from poultry feed manufacturers, which is likely to remain strong. The foreign direct investment (FDI) in the food processing sector has already touched the $1-billion mark so far this year, Food Processing Minister Harsimrat Kaur Badal said Tuesday, according to media reports. According to official data, FDI in the food processing sector was $904.9 million in the 2017-18 fiscal, while it stood at $727.22 million, $505.88 million and $515.86 million in 2016-17, 2015-16 and 2014-15, respectively.

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Special Report 10-Oct-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

74.0989 Yen

65.5100

Euro

85.1080 GBP

96.9895

USD/INR TRADING STRATEGY: BUY USDINR ABOVE 74.80 TGT 75.30 75.80 SL BELOW 74.30 SELL USDINR BELOW 73.50 TGT 73.00 72.50 SL ABOVE 74.00

GBP/INR TRADING STRATEGY: BUY GBPINR ABOVE 97.60 TGT 98.00 98.50 SL BELOW 97.20 SELL GBPINR BELOW 95.50 TGT 95.00 94.50 SL ABOVE 96.00

The rupee Tuesday weakened further by 6 paise to close at 72.69 to the US dollar on sustained demand for the American currency amid soaring crude prices. It was a highly volatile day on the forex market as wide swings in the currency value kept investors on edge and precluded the emergence of a clear trend. A further sharp spike in international crude oil prices due to a combination of factors and bullish dollar overseas trend ahead of Federal Reserve's two-day policy kept trading sentiment little shaky. The Indian currency dangerously slipped to a low of 72.96 in early trade -- within striking distance of its life-time low of 72.99 hit last week but managed to pare some losses on likely intervention from the central bank. It briefly touched a high of 72.57 in mid-afternoon deals. The rupee has lost 49 paise in last two days. Heavy dollar selling by banks and exporters along with greenbank's weakness against some currencies overseas largely supplemented the recovery momentum. A spectacular bull back rally in domestic bourses after five straight-day pounding on the back of value buying in beaten-down key stocks and hectic short-covering ahead of expiry also helped in propping up the currency. The currency markets worldwide are rattled with overlapping geopolitical factors rubbing shoulder against each other and also underpinned by the divergent monetary policy outlooks against major global central banks, a forex dealer commented. The US Fed is likely to stay on course and hike interest rates by 25 basis points (bps) tomorrow. The benchmark 10-year sovereign yield held also stable at 8.1258 per cent buoyed by the RBI decision to conduct open market operations (OMO) Thursday to purchase government bonds to infuse liquidity of Rs 10,000 crore. Meanwhile, crude prices rose to four-year highs near USD 82 a barrel after global producers decided against further output increases, despite pressure from US president Donald Trump for renewed action to cool prices. Brent crude futures were at USD 81.79 per barrel in early Asian trade - the highest level since November 2014. At the inter-bank foreign exchange (forex) market, the rupee opened sharply lower at 72.89 from overnight close of 72.63 on sustained dollar demand.

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Special Report 10-Oct-2018

Date

Commodity/ Currency Pairs

09/10/18

NCDEX DHANIYA

SEP

BUY

09/10/18

NCDEX DHANIYA

SEP

09/10/18

NCDEX GUARGUM5

09/10/18

Contract Strategy

Entry Level

Target

Stop Loss

Remark

4950

5000 5050

4900

NOT EXECUTED

SELL

4800

4750-4700

4850

NOT EXECUTED

OCT

BUY

9050

9100 9150

9000

NOT EXECUTED

NCDEX GUARGUM5

OCT

SELL

8990

8950-8900

9040

OPEN

09/10/18

MCX GOLD

DEC

BUY

31570

31620 31670

31520

NOT EXECUTED

09/10/18

MCX GOLD

DEC

SELL

31200

31150 31100

09/10/18

MCX SILVER

DEC

BUY

39330

39380 39420

39280

NOT EXECUTED

09/10/18

MCX SILVER

DEC

SELL

38800

38750 38700

38850

TARGET HIT

Date

Scrip

CASH/ FUTURE/ OPTION

Strategy

Target

Stop Loss

Remark

09/10/18

NIFTY

FUTURE

SELL

10400-390

10300-10200

10470

TARGET HIT

09/10/18

TATAGLOBAL

FUTURE

SELL

211-210

214

SL TRIGGERED

09/10/18

EXIDEIND

FUTURE

BUY

246.50-247

250-253

244

SL TRIGGERED

09/10/18

MANAPPURAM

CASH

SELL

65-66

62-58

68

SL TRIGGERED

Entry Level

205-200

31250

NOT EXECUTED

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Special Report 10-Oct-2018

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

REPORT

PERIOD

ACTUAL

FORECAST

PREVIOUS

--

108.8

WEDNESDAY, OCT. 10

WEDNESDAY , OCT. 10

0.2%

-0.1%

THURSDAY, OCT. 11

THURSDAY, OCT. 11

206,000

207,000

MONDAY, OCT. 8 None scheduled Columbus Day TUESDAY, OCT. 9 6 am

NFIB small-business index

WEDNESDA Y, OCT. 10

WEDNESDAY, OCT. 10

8:30 am

Producer price index

Sept. WEDNESD WEDNESDAY, OCT. AY, OCT. 10 10 Sept. 10 am

THURSDAY, OCT. 11

THURSDAY, OCT. 11

8:30 am

Weekly jobless claims

THURSDA THURSDAY, OCT. 11 Y, OCT. 11 10/6 8:30 am

8:30 am

Core CPI

Sept.

0.2%

0.1%

2pm

Federal budget

Sept.

--

$8 bln

FRIDAY, OCT. 12

FRIDAY, OCT. 12

FRIDAY, OCT. 12

FRIDAY, OCT. 12

FRIDAY, OCT. 12

8:30 am

Import price index

Sept.

--

-0.6%

10 am

Consumer sentiment index

Oct.

100.6

100.1

FRIDAY, OCT. 12

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