Special report-11-july-2018-epic-resarch

Page 1

Special Report 11-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[37.75pts], Consumption[26.95pts],PSE[32.90pts],CPSE [33.75pts],Energy[251.55pts],FMCG[127.85pts],Auto [103.55pts],Pharma[-31.50pts],IT[113.90pts],Metal [56.00pts],Realty[4.85 pts], Fin Serv sector[100.65pts].

Top Losers Company

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

ASIANPAINT

1363.1

7.9

0.58

BANDHANBNK

557.95

23.05

4.13

BHARATRAS

6784.55

430.45

6.34

BRITANNIA

6382.85

6.9

0.11

CIGNITITEC

377.65

7.35

1.95

Stocks at 52 Week’s LOW Symbol

ANKITMETAL ANTGRAPHIC ARSSINFRA ATLASCYCLE BHARATIDIL

Prev. Close

Change

%Chg

0.9 0.55 23.2 122.9 3.45

-0.05 0 0.7 4.05 0.15

-5.26 0 3.02 3.3 4.35

Indian Indices Company

CMP

Change

% Chg

NIFTY

10947.30

94.40

0.87

SENSEX

36239.62

304.90

0.85

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Special Report 11-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 negative opening for the broader index in India, a fall of 35 points or 0.32 percent. Nifty futures were trading around 10,923level on the Singaporean Exchange.  Major markets in Asia fell in the morning trade following the release of a list of an additional USD 200 billion in Chinese goods on which the US is considering imposing tariffs. China markets dropped on the back of the news, with the Shanghai composite sinking 2.31 percent in morning trade.Hong Kong's Hang Seng Index slumped 2.02 percent in early trade. Japan's Nikkei 225 fell 1.74 percent while the Kospi declined 1.13 percent.  The Trump administration raised the stakes in its trade war with China on Tuesday, saying it would slap 10 percent tariffs on an extra USD 200 billion worth of Chinese imports. The administration released a wideranging list of Chinese goods it proposes be hit with tariffs, including hundreds of food products as well as tobacco, coal, chemicals and tires, dog and cat food, and consumer electronics including television components.  Oil rose on Tuesday, supported by a larger-than expected US stock draw and supply concerns in Norway and Libya, though gains were tempered by the United States’ indication that it would consider requests for waivers from Iranian oil sanctions.

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Special Report 11-July-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

Open Interest

CE

10,900 124.1

1,48,434

BANKNIFTY

CE

27,200

18

1,37,387

4,25,360

NIFTY

CE

11,100

35.3

1,00,987

23,20,125

RELIANCE

CE

1,020 25.95

9,267

14,96,000

INDUSINDBK

CE

2,000

14

8,820

7,57,200

RELIANCE

CE

1,040 16.65

7,618

13,80,000

TCS

CE

1,900 35.45

6,777

21,54,000

TATASTEEL

CE

4,298

30,81,144

8.7

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

Optio Strike n Price Type

LTP

TCS, IndusInd Bank, Prakash Industries, Kore Foods .

Otco International - Rs 10 to Rs 2

Karnataka Bank introduces cash@PoS facility

25,29,900 NIFTY FUTURE

NIFTY

580

2,83,500

Traded Volume (Contracts)

Open Interest

NIFTY

PE

10,800 53.15

1,55,557

39,67,725

BANKNIFTY

PE

26,900

112

1,38,356

2,73,800

NIFTY

PE

10,900

80

1,28,767

21,21,900

RELIANCE

PE

1,000 11.25

5,383

15,20,000

TCS

PE

1,800 11.85

4,843

12,82,500

RELIANCE

PE

980

6.9

4,380

11,55,000

INDUSINDBK

PE

1,900

20.7

4,112

2,75,700

TCS

PE

1,800

11.6

2,062

7,43,000

Bulls maintained their power at Dalal Street for third consecutive session on Tuesday as the Nifty50 after a strong breakout above 10,900 levels in morning extended rally in later part of the session to reclaim 10,956.90 levels intraday.The index also crossed Karnataka Election Result day's high of 10,929 and closed at five-month high, forming a solid Bullish candle on the daily charts.We recommend to BUY NIFTY FUTURE AROUND 10720-10740 TGT 10800-10850 SL ABOVE 10680.We recommend to BUY NIFTY FUTURE AROUND 10820-10840 TGT 10880-10940 SL ABOVE 10780.

FII DERIVATIVES STATISTICS BUY

SELL

No. of Contracts

Amount in Crores

INDEX FUTURES

41112

3514.19

19431

1742.84

INDEX OPTIONS

482889

45916.63

489898

STOCK FUTURES

149044

10203.82

STOCK OPTIONS

88271

6459.24

OPEN INTEREST AT THE END OF THE DAY

No. of Amount in No. of Contracts Crores Contracts

Amount in Crores

NET AMOUNT

278297

23205.98

1771.3479

46503.87

650078

55037.82

-587.241

146351

9909.07

1137968

80393.76

294.748

89959

6532.22

83635

5783.70

-72.9782 1405.8767

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

11006.00

10976.00

10926.00

10896.00

10846.00

BANKNIFTY

27031.00

26962.00

26870.00

26801.00

26709.00

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Special Report 11-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 11-July-2018

RECOMMENDATIONS GUARGUM5 BUY GUARGUM ABOVE 8520 TGT 8570 8670 SL BELOW 8380 SELL GUARGUM BELOW 8350 TGT 8300 8200 SL ABOVE 8510

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 DHANIYA ABOVE 4730 TGT 4760 4830 SL BELOW 4660 SELL DHANIYA BELOW 4650 TGT 4620 4550 SL ABOVE 4730

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 11-July-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

68.9775 Yen

62.0500

Euro

80.7975 GBP

91.3400

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.

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 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. 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 11-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 11-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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