Special report-11-october-2018-epioc-research

Page 1

Special Report 11-Oct-2018

Global markets at a glance Wall Street was hammered on Wednesday as investors dumped high-growth names such as technology and FAANG stocks, with rising Treasury yields and trade-related worries sapping their risk appetite. The benchmark S&P 500 and the Dow Jones Industrial Average fell nearly 1.5 percent and at the day's low had retreated 3.7 percent and 3.6 percent, respectively, from their all-time highs. The Nasdaq's 2-percent drop pulled it 7.1 percent away from its high. All three indexes hit records between Aug. 30 and Oct. 3, despite the escalating Sino-US trade dispute gnawing at confidence on corporate profit growth through most of the year. But a recent IMF warning on global growth taking a hit from trade disputes has hit confidence in the stock market, as has US Treasury yields at more than 7-year highs, signalling a tightening of capital globally. Asian share markets sank on Thursday after Wall Street suffered its worst drubbing in eight months, a conflagration of wealth that could threaten business confidence and investment across the globe. It also raised the stakes for US inflation figures due later on Thursday as a high outcome would only stoke speculation of more aggressive rate hikes from the Federal Reserve. MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.9 percent to its lowest in 17 months. Japan's Nikkei sank 3.2 percent in early trading, which would be the biggest daily drop since March. Previous day Roundup Bulls made a strong come back on Wednesday. The Nifty50 after gap up opening continued to inch higher as the day progressed and reclaimed 10,450 levels, driven by financial space after SBI decided to purchase loan assets worth up to Rs 45,000 crore from NBFCs. The index closed sharply higher and formed bullish candle on the daily charts, negating the formation of lower highs for previous six consecutive trading sessions. If the 50-share NSE index sustains above 10,300 levels then it can cross 10,700 levels followed by 10,850 levels, the critical hurdle, experts said.The Nifty50 opened higher at 10,331.85 and extended gains as the day progressed. The index touched an intraday high of 10,482.35, before closing 159.10 points higher at 10,460.10. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[57.65], Consumption[111.45pts],Bank[794.05pts],Auto [229.05pts],FinService[351.15pts],Fmcg[446.85pts],Media [131.90pts],Pharma[132.60pts],IT[ -226.60pts],Metal [64.90pts],Realty[8.40 pts], Pvt Bank[463.10pts].

World Indices Index

Value

% Change

25,598.74

-3.15

S&P500

2,762.25

-0.68

NASDAQ

7,422.05

-4.08

FTSE100

7,145.74

-1.29

22,508.31 25,207.03

-4.43 -3.91

DJI

NIKKEI HANG SENG

Top Gainers Company

CMP

Change

% Chg

Bajaj Finance

2,270.95

210.10

10.19

Bajaj Finserv

5,961.50

532.40

9.81

22,582.35

1496.65

7.10

Axis Bank

589.20

36.35

6.58

Zee Entertain

459.80

27.00

6.24

CMP

Change

% Chg

258.25 700.45 2,043.60 315.95 1,051.80

-8.25 -17.30 -48.20 -5.70 -16.60

-3.10 -2.41 -2.30 -1.77 -1.55

Eicher Motors

Top Losers Company

Bharti Infratel Infosys TCS Wipro HCL Tech

Stocks at 52 Week’s HIGH AAVAS

767.7

22.3

2.9

AIONJSW

45.5

-2.25

-4.95

GRSE

118

0.15

0.15

JAINSTUDIO

6.65

0.3

4.51

LIQUIDETF

1000

0.01

0

0.9

0.05

5.56

Prev. Close

Change

%Chg

25.75 140.8 16.15 179.95 4.55

0.45 -7 -1.6 -8.95 -0.2

1.75 -4.97 -9.91 -4.97 -4.4

PRAKASHSTL

Stocks at 52 Week’s LOW Symbol

21STCENMGM 8KMILES ADLABS AIFL ALCHEM

Indian Indices Company

CMP

Change

% Chg

NIFTY

10460.10

159.10

1.54

SENSEX

34760.89

461.42

1.35

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Special Report 11-Oct-2018

RECOMMENDATIONS [FUTURE] 1. UJJIVAN [FUTURE ] After making a doji candle at its support level of 232 the particular counter has made a bullish confirmation candle which clearly show a sign of reversal, 255 is the only resistance level which is acting as a hurdle for it so we advice you to buy around 255-256 for the targets of 260-266 with stoploss below 252.

2. ITC [FUTURE] The partiuclar counter is showing a tendency to rebound from its support level of 268, also it has made a doji candle at this level today we can get a opportunity to buy on dip so we advice to sell itc future around 269-271 for the targets of 274-278 with stoploss above 267.

STOCK RECOMMENDATION [CASH] MINDTREE [CASH] After consolidating in the range between 90-79 the stock made a clear breakout and closed with a bullish candle above its resistance level of 91.75. As per the daily chart if it sustains at this level then 99-100 levels can be achieved in intraday so we advice to buy ibrealest around 96-97 for the targets of 100-104 with stoploss below 94.

MACRO NEWS  Trends on SGX Nifty indicate a negative opening for the broader index in India, a plunge of 240 points or 2.29 percent. Nifty futures were trading around 10,240-level on the Singaporean Exchange.  Oil dropped on Thursday to extend big losses from the previous session as global stock markets suffered a rout, with crude prices also taking a hit from a weekly industry report showing US crude inventories had risen more than expected.  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 have already predicted that the rupee tailwind is likely to play a big role in earnings of IT companies. Experts suggest that the effect of currency depreciation is likely to be seen for couple of quarters, and that the stock prices seem to have priced in this momentum.Most analysts expect TCS to lead the sector with revenue growth in the range of 3.5-4.5 percent, sequentially.

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Special Report 11-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

1,47,321

27,52,575  21,31,875

40.3

5,88,657

13,73,920

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

5.2

6,716

CE

7,500

72

5,360

36,91,500 NIFTY FUTURE 1,76,925

TATAMOTORS CE

230

0.75

4,795

29,23,500

Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

NIFTY

CE

10,500

127

1,83,020

NIFTY

CE

10,600

81.5

BANKNIFTY

CE

25,500

TATAMOTORS CE MARUTI

Open Interest

MARUTI

CE

7,200

154

4,706

70,500

SBIN

CE

280

7.5

4,407

26,70,000

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

Optio Strike n Price Type

BANKNIFTY

PE

BANKNIFTY BANKNIFTY

2,83,500

LTP

Traded Volume (Contracts)

24,500

7.2

4,67,289

PE

24,800

15.2

3,73,389

PE

25,000

36.5

3,60,821

TATAMOTORS PE

180

5.75

4,746

YESBANK

PE

220

8.45

4,261

RELIANCE

PE

1,080 26.55

3,649

Open Interest

TATAMOTORS PE

170

3.4

3,118

10,13,600 The Nifty50 opened higher at 10,331.85 and extended 7,71,080 gains as the day progressed. The index touched an intraday high of 10,482.35, before closing 159.10 points 8,39,280 higher at 10,460.10. The index closed sharply higher and 21,51,000 formed bullish candle on the daily charts, negating the 33,67,000 formation of lower highs for previous six consecutive trading sessions Here you can go for sell on rise strategy 5,96,000 around 10470-50 for the targets of 10400-10350 with 12,73,500 stoploss above 10550.

YESBANK

200

4.2

2,788

22,34,750

PE

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

10584.00

10522.00

10420.00

10358.00

10256.00

BANKNIFTY

25895.00

25608.00

25083.00

24796.00

24271.00

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Special Report 11-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 11-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

1760 4820 4180 4810 1718 4146

-1.29 1.99 -0.02 -1.31 -0.26 -0.59

19485

0.1

4034 3202 6950

-1.05 -0.19 0.70

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 11-Oct-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

74.1316 Yen

65.6000

Euro

85.2637 GBP

97.6284

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 98.60 TGT 99.00 99.50 SL BELOW 98.20 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 11-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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