Special report-12-nov-2018-epic-research

Page 1

Special Report 12-Nov-2018

Global markets at a glance Wall Street’s three major stock indexes lost ground on Friday, after a week of recovery from the October sell-off, as oil prices fell further and more evidence of a slowing Chinese economy was reported. Oil prices fell nearly 1.0 percent on Friday, and have now seen the longest stretch of daily declines since 1984, on rising global supply and evidence of a slowing world economy.

World Indices Index

Value

% Change

DJI

25965

-0.90

S&P500

2781.01

+0.92

NASDAQ

7,406.90

-1.67

FTSE100

7105.34

-0.50

22,250 25601.92

-1.06 -2.44

NIKKEI HANG SENG

Top Gainers The United States formally imposed punitive sanctions on Iran this week, but granted eight countries temporary waivers allowing them to keep buying oil from the Islamic Republic. Asian stocks dipped on Friday as Wall Street took a breather after the Federal Reserve kept intact its plans to continue raising interest rates at a gradual pace, with a fourth hike for this year expected next month. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.06 percent. The index was still headed for a sizable gain of more than 6 percent this week, during which it rose to a one-month high. PREVIOUS DAY ROUNDOFF It’s a negative close for the market, with the Nifty ending below 10,600.Among sectors, automobiles, pharmaceuticals and infrastructure were the top gainers, while energy and metal names ended in the red. There was a strong surge in the midcaps space as well, with Nifty Midcap closing over a percent higher. Yes Bank, Asian Paints, and HPCL were the top gainers, while Bharti Airtel and Infosys lost the most. At the close of market hours, the Sensex ended down 79.13 points or 0.22% at 35158.55, while the Nifty shut down by 13.20 points or 0.12% at 10585.20. The market breadth was narrow as 1,316 shares advanced, against a decline of 1,203 shares, while 144 shares were unchanged. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[-0.21], Consumption[+0.09pts],PSE[+0.86pts],CPSE [+1.13pts],Energy[-0.67pts],FMCG[-0.09pts],Auto[+0 .6 3 pts ],P h arm a [+1 . 3 9 pts] ,IT [ -0 .8 3 pts ],M etal[ 0.87pts],Realty[-0.42 pts], Fin Serv sector[+0.13pts].

Company

CMP

Change

% Chg

Yes Bank

227.9

11.95

5.53

HPCL

241.3

11.7

5.1

862.15

30.25

3.64

Asian Paints

1,295.60

44.65

3.57

Adani Ports

337.6

11.4

3.49

CMP

Change

% Chg

659.5 2,400.00 238.8 299.75 367.35

-16 -52.95 -5.25 -6.5 -7.8

-2.37 -2.16 -2.15 -2.12 -2.08

Indiabulls Hsg

Top Losers Company

Infosys Dr Reddys Labs Hindalco Bharti Airtel GAIL

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

81.3

-1.3

-1.6

ALKYLAMINE

713.35

69.45

9.74

BIRLACABLE

196.65

-9.8

-4.98

COX&KINGS

197

-3.45

-1.75

CRMFGETF

2950

-34.5

-1.1

Prev. Close

Change

%Chg

22.35

0.4

1.79

3.2

0

0

15.7 19 64.85

0 0.05 -3.2

0 0.26 -4.93

ADANIGAS

Stocks at 52 Week’s LOW Symbol

21STCENMGM ABGSHIP ABMINTLTD ADROITINFO AIFL

Indian Indices Company

CMP

Change

% Chg

NIFTY

10585.20

-13.20

-0.12

SENSEX

35158.55

-79.13

-0.22%

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Special Report 12-Nov-2018

RECOMMENDATIONS [FUTURE] 1. CIPLA [FUTURE ] After analysis of derivative data , short position taken by the traders which indicate that market is bearish on this stock .On daily chart we have seen the three black crows bearish pattern and also traded near its critical support level .Our recommandation is to Short the Cipla future in range of 529-525 Target 523/517/512 Sl 535

STOCK RECOMMENDATION [CASH] SRF [CASH] Our recommandation to buy the stock , Stock is trade is near its resistance level of 2090 & stock has potential to brake its resistance level . Buy in the range of 2070-2075 Target 2080/2092/2110 Sl 2059

. MACRO NEWS 

2. BPCL [FUTURE] In International market we have seen that the prices of crude oil decrease from its month high , which is more benificial for oil & natural gas companies. Analysis of derivative data traders make long position on this stock .On daily chart we have seen that stock ios tradered ius above its suppport level of 290. Our view is BUY BPCL Future in range of 297-300 Target 302/306/310/315 Sl 292

Bombardier Inc said on Thursday it would sell two businesses for around $900 million and cut 5,000 jobs and as it expands its stronger corporate jet and rail divisions, but the company's shares fell as much as 26 percent on a disappointing free cash flow forecast. The US Federal Reserve held interest rates steady on Thursday, but remained on track to keep gradually tightening borrowing costs, as it pointed to a healthy economy that was marred only by a dip in the growth of business investment.Business investment can be a key to rising productivity and future growth, and the fact that it had "moderated from its rapid pace," as the Fed said, was the only cautionary note in a policy statement that touted strong job gains and household spending, and a "strong rate" of overall economic activity. Alphabet Inc's Google said on Thursday it would change the way it handles sexual harassment claims, a week after 20,000 of its workers around the world walked off their jobs to protest its response to such issues.Arbitration will become optional for individual sexual harassment and sexual assault claims, Google said, enabling lawsuits on those matters. Rupee rose against the US dollar after the Mid-term elections results showed that the Democrats gained control of the house hitting the magic 218-seat mark to guarantee a majority, after flipping multiple Republican-controlled seats.

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Special Report 12-Nov-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

Open Interest

Dr Reddy's Laboratories slips 2% on report of US FDA handing out observations to Duvvada unit

The bank reported gross non-performing assets (NPAs) ratio of 7.16 percent against 7.20 percent in the previous quarter. PC Jeweller surges nearly 14%; board meeting on November 14

BANKNIFTY

CE

26,000

103

4,89,454

6,75,400

BANKNIFTY

CE

26,200

47

2,45,461

3,78,440 

BANKNIFTY

CE

25,900 143.45

2,18,817

2,19,680

RELIANCE

CE

1,120 19.85

5,813

12,89,500

RELIANCE

CE

1,100 28.15

5,761

21,47,500

MARUTI

CE

7,500

92.5

5,277

Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

Open Interest

BANKNIFTY

PE

25,500

101

3,42,233

7,01,540

BANKNIFTY

PE

25,000 19.95

2,38,124

7,37,380

BANKNIFTY

PE

25,400

73

2,20,107

2,38,940

RELIANCE

PE

1,080 21.45

4,208

3,80,000

RELIANCE

PE

1,100 30.75

3,724

6,06,000

RELIANCE

PE

1,060

15.3

3,386

5,47,000

YESBANK

PE

200

2.75

2,834

25,18,250

RELIANCE

PE

1,040

10.6

2,752

8,63,000

NIFTY FUTURE

Nifty 50 is trading on above its poivot level of 10555 , we 1,36,725 have also seen that FII started buying in index futures YESBANK CE 230 10.75 5,052 24,57,000 and options .Our recommandation to buy nifty future in range of 10580-10600 . Buy on deep from above level. TATAMOTORS CE 200 5.1 4,653 39,10,500 Our view on market is bullish for the levels of 10800. Buy 10580-10600 & Target 10630/10650 Sl 10550 MARUTIACTIVE PUT CE OPTION 9,000 111.5 5,823 2,83,500 MOST

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

43362

3076.64

36176

2429.45

396194

30244.58

647.1889

INDEX OPTIONS

877963

51500.57

886716

52276.62

964062

70661.95

-776.0495

STOCK FUTURES

193121

10783.99

192418

10647.22

1368875

81596.29

136.7783

STOCK OPTIONS

99652

5666.84

99507

5662.04

141653

8570.90

4.7956 12.7133

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

10657.86

10621.53

10583.13

10546.83

10508.47

BANKNIFTY

25954.86

25862.93

25730.87

25638.93

25506.87

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Special Report 12-Nov-2018

RECOMMENDATIONS GOLD TRADING STRATEGY: BUY GOLD ABOVE 31190 TGT 31230 31335 31413 SL BELOW 30050 SELL GOLD BELOW 30990 TGT 30890/30800/30750 SL ABOVE 31200

SILVER TRADING STRATEGY: BUY SILVER ABOVE 36970 TGT 37080 37150 36850 SELL SILVER BELOW 36825 TGT 36770/36700 36970

SL BELOW SL ABOVE

COMMODITY ROUNDUP

Turkey has been granted a waiver of around 25 percent on U.S. oil sanctions against Iran, Turkish Energy Minister Fatih Donmez said on Friday, amounting to around three million tonnes of oil annually. Speaking in an interview with broadcaster NTV, Donmez said oil refiner Tupras(IS:TUPRS) was looking at alternatives to avoid any market difficulties. He said the 25 percent figure was approximate and Ankara had not yet received an exact figure.He also said Turkey still had a contract to buy natural gas from Iran for five to six years and added that Ankara would continue to buy gas from Tehran. Oil prices fell to multi-month lows on Friday as global supply increased and investors worried about the impact on fuel demand from of lower economic growth and trade disputes. Benchmark Brent crude oil LCOc1 fell below $70 a barrel for the first time since early April, down more than 18 percent since reaching four-year highs at the beginning of October.Brent fell 66 cents to a low of $69.99 a barrel before recovering slightly to trade around $70.10 by 1010 GMT, down 3.5 percent for the week and more than 15 percent this quarter. U.S. light crude oil CLc1 was 55 cents lower at $60.12, down 4.7 percent this week and off more than 20 percent since early October, putting it officially in "bear market" territory, borrowing a definition commonly used in stock markets. "There is no slowing down the bear train," said Stephen Brennock, analyst at London brokerage PVM Oil. "Instead, the energy complex has extended a rout driven by swelling global supplies and a softening demand outlook. Gold prices were steady in early Asian trade on Thursday, while the dollar edged higher and investors turned their attention to this week's Federal Reserve meeting for clues on future interest rate hikes. Asian stocks rose on Thursday as investors, relieved to have moved past the U.S. midterm elections without any major political surprises, drove a Wall Street rally, while the dollar clawed back some of its earlier losses.

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Special Report 12-Nov-2018

RECOMMENDATIONS GUARGUM5 TRADING STRATEGY: BUY GUARGUM ABOVE 10450 TGT 10520 10620 SL BELOW 10390 SELL GUARGUM BELOW 10180 TGT 10110 10010 SL ABOVE 10260

NCDEX INDICES Index

Value

% Change

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

1944 5838 4559 6027 1895 4673.5

0.8 -0.03 3.99 -2.74 -1.46 1.86

Jeera

20040

-2.36

4045 3323 6540

-1.32 -1.48 1.14

Mustardseed Soy Bean Turmeric

Firmness in cash chana market continues on the back of poor arrival in major markets,good festive demand and buyer's increased interest at current level.Millers from Indore are buying chana from Gwalior line while Millers in Delhiare active for Rajasthan and MP line chana.Growing fear of lower crop due to lower area coverage so far and prevailing moisture stress in the field are not favorable for sowing.Dry condition may further delay sowing. Farmers in MP,Maharashtra,AP and Gujarat are waiting for post monsoon rains.In major producing states like Raj,MP and Mah farmers have planted only 50 to 55% chana so far.Under emerging condition chana may move towards 5000 level soon. However,one correction is expected at this level.Chana is being traded at 4500-4550 in Delhi marke DHANIYA TRADING STRATEGY: BUY DHANIYA ABOVE 6450 TGT 6500/6560 SL BELOW 6390 SELL DHANIYA BELOW 6365 TGT 6315/6255 SL ABOVE 6405

The China has agreed to buy raw sugar from India following months of negotiations and the export is expected to begin early next year. A contract for exporting 15,000 tonnes of raw sugar has been entered to by the Indian Sugar Mills Association (ISMA) and COFCO. India plans to export 2 million tonne of raw sugar to China beginning next year. ISMA has set a target of a total sugar export of 5 million tonne in 2018-19 sugar year (October-September). According to United States Department of Agriculture (USDA) November estimate, U.S 2018/19 ending stocks of soy oil is fell 9.5 percent to 1,915 million lbs from 2,116 million lbs in earlier estimate. Opening stocks are lowered to 1,990 million lbs from 2,206 million lbs. Production of soy oil in 2018/19 is lowered to 26,315 million lbs from 26,416 million lbs in its earlier estimate. Imports in 2018/19 are kept unchanged at 300 million lbs. Biodiesel use in 2018/19 was unchanged at 7,800 million lbs. Food, feed and other industrial use in 2018/19 is increased to 14,400 million lbs compared to 14,300 lbs in its earlier estimate. Exports in 2018/19 were unchanged at 2,200 million lbs.

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Special Report 12-Nov-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

72.49 Yen

63.69

Euro

82.31 GBP

94.4495

USD/INR TRADING STRATEGY: BUY USDINR ABOVE 72.61 Target 72.70 72.75 SL BELOW 72.49 SELL USDINR BELOW 72.49 TGT 72.4 72.27 SL 72.6

The Indian rupee opened higher by 30 paise at 72.70 per dollar on Friday versus Tuesday's close of 73 per dollar. Rupee rose against the US dollar after the Mid-term elections results showed that the Democrats gained control of the house hitting the magic 218-seat mark to guarantee a majority, after flipping multiple Republicancontrolled seats. The elections delivered the most expected outcome: split control of the US Congress, with Democrats winning control of the House of Representatives and Republicans cementing their majority in the Senate. That’s a better-than-average performance; usually the president’s party loses Senate seats in midterms, said Motilal Oswal. The major averages had earlier hit their session highs after US President Donald Trump indicated he is willing to work with Democrats on policy initiatives that would help the economy keep growing. Today, USD-INR pair is expected to quote in the range of 72.50 and 73.05

GBP/INR TRADING STRATEGY: BUY GBPINR ABOVE 94.7 TGT 94.8 94.85 SL Below 94.45 SELL GBPINR BELOW TGT 94.55 TARGET 94.40 94.30 SL ABOVE 94.65

Indian oil demand, which faced substantial pressures in 2018 because of rising rates and a weakened rupee, is set for recovery next year, Fitch Solutions Macro Research said in a note. "Indian oil demand will become an increasingly important driver of global demand growth, as China's economy slows and the government pushes diversification away from oil," Fitch Solutions, an affiliate of Fitch Ratings, said. It put fuel consumption growth at 6 percent in 2019, up from 5.5 percent this year.Although their populations are of similar size, the scale of the Indian economy and its capacity for growth are not comparable to that of China, it said, adding that demand will become increasingly diversified across emerging markets, in particular, those in Asia. The world's third largest oil consumer will, however, not be able to replicate the strength of China's demand, with growth becoming increasingly diversified across emerging markets.

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Special Report 12-Nov-2018

Date

Commodity/ Currency Pairs

09/11/18

NCDEX DHANIYA

NOV

BUY

09/11/18

NCDEX DHANIYA

NOV

09/11/18

NCDEX GUARGUM5

Target

Stop Loss

Remark

6600

6670/6770

6530

NOT EXECUTED

Sell

6400

6330/6220

6470

OPEN

NOV

BUY

9950-9970

10050/10100

9900

TARGET HIT

NCDEX GUARGUM5

NOV

SELL

10140

10040/9950

10220

SL HIT

09/11/18

MCX GOLD

Dec

BUY

31250

31320/31400

31190

OPEN

09/11/18

MCX GOLD

Dec

SELL

31400

31320/31250

31470

TARGET HIT

09/11/18

MCX SILVER

Dec

BUY

37470

37560/37600

37330

SL HIT

09/11/18

MCX SILVER

Dec

SELL

37780

37690/37600/3 7550

37850

NOT EXECUTED

Date

Scrip

CASH/ FUTURE/ OPTION

Strategy

Target

Stop Loss

Remark

09/11/18

NIFTY

FUTURE

BUY

10580-10590

10620/10650

10550

TARGET HIT

09/11/18

Glenmark Pharma

FUTURE

BUY

660-665

670/680/687

652

TARGET HIT

09/11/18

Reliance

FUTURE

BUY

1103-1105

1110/1115/112 0

1092

TARGET HIT

09/11/18

Balrampur chinni

CASH

BUY

106-108

111/113

105

TARGET HIT

09/11/18

Contract Strategy

Entry Level

Entry Level

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Special Report 12-Nov-2018

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

REPORT

PERIOD

ACTUAL

FORECAST

PREVIOUS

MONDAY, NOV. 12 Veterans Day TUESDAY, NOV. 13 6 am

NFIB small-business index

Oct.

2 pm

Federal budget

Oct.

107.9

WEDNESDAY, NOV. 14 8:30 am

Consumer price index

Oct.

0.1%

8:30 am

Core CPI

Oct.

0.1%

THURSDAY, NOV. 15 8:30 am

Weekly jobless claims

11/10

8:30 am

Retail sales

Oct.

0.1%

8:30 am

Retail sales ex-autos

Oct.

-0.1%

8:30 am

Philly Fed

Nov.

22.2

8:30 am

Empire state index

Nov.

21.1

8:30 am

Import price index

Oct.

0.5%

10 am

Business inventories

Sept.

0.5%

FRIDAY, NOV. 16 9:15 am

Industrial production

Oct.

0.3%

9:15 am

Capacity utilization

Oct.

78.1%

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