Special report-14-jan-epic-research-2019

Page 1

Special Report

14–JAN-2019

Global markets at a glance Wall Street dipped slightly on Friday, breaking a fivesession rally, as energy shares declined and investors looked ahead to earnings season, which kicks off next week with Citigroup, JPMorgan and other big banks.Underpinned by optimism over China-US trade talks and expectations of a slow pace of interest rate hikes from the Federal Reserve, the stock market'swinning streak through Thursday added 6 percent to the S&P 500 and left it up about 10 percent from the 20-month low it hit around Christmas.The Dow Jones Industrial Average ended down 0.02 percent at 23,995.95 points, while the Nasdaq Composite dropped 0.21 percent to 6,971.48. The S&P 500 ended down 0.38 points at 2,596.26. Asian shares camped near 1-1/2 month highs on Monday as investors kept a wary eye on looming Chinese trade data on increasing signs a slowdown in the world’s secondbiggest economy is dragging on global growth. MSCI’s broadest index of Asia-Pacific shares outside Japan was barely changed at 490.97 points after climbing to the highest since early December on Friday. Liquidity was expected to be light during Asian hours as Japan was on public holiday. Australian shares ticked up 0.3 percent while New Zealand's benchmark index was off 0.2 percent.China's exports rose 9.9 percent in 2018, its strongest trade performance in seven years, despite growing disruptions from an escalating trade war with the United States, customs data showed on Monday. PREVIOUS DAY ROUNDOFF Indian benchmark indices witnessed a lackluster trading session come to an end with Nifty & Bank Nifty closing lower for the second day in a row.TCS was among the top losers on the benchmark index and tumbled ~2% on the day after the company missed its Q3FY19 margin.On the derivatives front, TCS futures added fresh short positions while heavy call writing was seen in out-of-the-money option strikes. Among the sectoral indices, Nifty FMCG was among the outperformers and closed ~0.6% higher. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[+18pts], Consumption[+25pts],PSE[+18.05pts],CPSE[+8.1pts],Energy [+900ts],FMCG[+92pts],Auto[+10.5pts],Pharma[+60Pts],IT [+145.35pts],Metal[-4.6pts],Realty[+3.15pts], Fin Serv sector[+73.2pts].

World Indices Index

Value

% Change

DJI

23758

-0.80

S&P500

2596

-0.015

NASDAQ

6971

-0.21

FTSE100

6918

-0.36

20322 26521

+0.79 +0.22

NIKKEI HANG SENG

Top Gainers Company

CMP

Change

% Chg

ITC

295.35

5.75

1.99

UPL

783.45

10.35

1.34

IOC

131.2

1.3

1

ONGC

144.65

1.4

0.98

Hindalco

205.85

1.85

0.91

CMP

Change

% Chg

1,515.15 180.3 277.2 1,842.55 1,369.60

-50.75 -5.45 -7.85 -46 -23

-3.24 -2.93 -2.75 -2.44 -1.65

Top Losers Company

IndusInd Bank Tata Motors Bharti Infratel TCS Larsen

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

1,560.00

2.45

0.16

796

45.8

6.15

LIQUIDETF

1,000.01

-0.02

0

MAHSCOOTER

3,499.00

145.65

4.4

MUTHOOTFIN

545.35

12.45

2.37

Prev. Close

Change

%Chg

1.85

0.05

2.63

APLAPOLLO

1,045.00

31.95

2.91

ASIANTILES BASF CURATECH

140.25 1,500.00 0.95

-4.15 -12.65 -0.05

-2.86 -0.83 -5

AARTIIND LINDEINDIA

Stocks at 52 Week’s LOW Symbol

ABGSHIP

Indian Indices Company

CMP

Change

% Chg

NIFTY

10795

-26.6

-0.25

SENSEX

36009

-96.66

-0.27

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Special Report

14–JAN-2019

RECOMMENDATIONS [FUTURE]

STOCK RECOMMENDATION [CASH]

1. STAR [FUTURE ]

REPCOHOME Stock has given the breakout of the neckline of the double In Star on daily chart as well as weekly we have seen the bottom pattern on the daily chart with the good volumes trend line breakout & also asending triangle breakout .In and closed near to days high. We recommend buying last four trading session strong buying force by trader . above 430 for the target of 435 with the stop loss of 420 Derivative data also suggest that traders are bullish on this . Our recommendation is Buy in range 477-480 Target 490/500/520 SL 460.Stock is trade above all its important moving avaerages.

MACRO NEWS 2. REPCO HOME [FUTURE]

The Finance Ministry may consider selling part of its stake in Axis Bank and ITC, held through SUUTI, in next few months, an official said.As on September 30, 2018, Specified Undertaking of Unit Trust of India (SUUTI) held around 9.63 percent stake in Axis Bank, 7.97 percent in ITC and 1.80 percent in L&T.While the government is waiting for L&T to launch a buyback offer to tender its shares; for holding in Axis Bank and ITC, it would consider off-market deals, an official said.

The World Bank has committed to provide India funds worth $300 million to aid its energy efficiency programme, sources told Moneycontrol. The move will help the government set up the requisite infrastructure to push forward its ambition of expanding electric mobility in the country. In a meeting held in December 2018, the Ministry of New and Renewable Energy (MNRE) informed the Committee of Secretaries that the World Bank would route the aid to India through Energy Efficiency Services Ltd (EESL), a government-owned public sector unit, people aware of the development said.EESL did not respond to Moneycontrol’s request for comment at the time of publishing. received.

Stock has given the breakout of the neckline of the double bottom pattern on the daily chart with the good volumes and closed near to days high. We recommend buying above 430 for the target of 435 with the stop loss of 420

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Special Report

14–JAN-2019

STOCKS IN NEWS

MOST ACTIVE CALL OPTION Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

Open Interest

BANKNIFTY

CE

27,800

71.7

3,68,957

5,90,000

BANKNIFTY

CE

28,000 30.25

3,64,273

BANKNIFTY

CE

27,700 100.9

3,03,930

TCS

CE

1,900

21.5

TCS

CE

2,000

5.95

RELIANCE

CE

1,140

14.3

TCS

CE

1,950

11.2

TCS

CE

1,940

12.7

MARUTIACTIVE PUT CE OPTION 9,000 111.5 MOST Symbol

Optio Strike n Price Type

BANKNIFTY

PE

27,300

BANKNIFTY

17,886

Cadila Healthcare: Zydus received final approvals from the USFDA for Betamethasone Dipropionate Cream and Amlodipine & Atorvastatin tablets.

GNA Axles Q3: Profit rises 41.6 percent to Rs 18 crore 8,17,900 versus Rs 12.7 crore; revenue increases 47.5 percent to 5,50,900 Rs 246.3 crore versus Rs 167 crore YoY. 14,57,250

NIFTY FUTURE Nifty followed global market and started 18,42,750 with gap up but today PSU and Metal share made 8,174 20,30,000 pressure in market due to that whole day Nifty traded in sideways and in last one hour it loosed almost fifty per 7,436 5,51,250 cent gains in intraday. On daily chart it created bearish 6,818 4,65,250 candle since Nifty forming Open Broadening pattern so we it will be buy in decline around 10850 with stop loss o 5,823 2,83,500 10770 for the target of 10920/10970. 15,755

LTP

Traded Volume (Contracts)

Open Interest

120

3,51,620

2,80,120

PE

27,400 157.95

3,05,869

2,45,660

BANKNIFTY

PE

27,000

44

3,00,859

5,63,620

TCS

PE

1,800 21.85

13,650

11,76,750

TCS

PE

1,850

42.3

4,758

4,23,250

TCS

PE

1,840

37.4

4,733

2,07,250

TCS

PE

1,820

28.5

4,353

1,73,750

RELIANCE

PE

1,080 20.75

4,330

7,43,000

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

51682

3809.87

47972

3349.39

398878

31476.85

460.4813

INDEX OPTIONS

2189187

129123.93

2164697

127874.85

727992

54781.09

1249.0744

STOCK FUTURES

207573

12377.69

215406

12744.15

1358275

82898.30

-366.4586

STOCK OPTIONS

120212

7125.50

119307

7089.91

124498

7282.46

35.5899 1378.687

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

10905

10850

10794

10739

10684

BANKNIFTY

27712

27583

27482

27353

27252

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Special Report

14–JAN-2019

RECOMMENDATIONS GOLD TRADING STRATEGY: BUY GOLD ABOVE 32000 TGT 32050/32100 SL BELOW 31900 SELL GOLD BELOW 31850 TGT 31800/31750 SL ABOVE 31950

SILVER TRADING STRATEGY: BUY SILVER ABOVE 39500 TGT 39550/39600 SL BELOW 39350 SELL SILVER BELOW 39200 TGT 39100 39050 SL ABOVE 39350

COMMODITY ROUNDUP World food prices were virtually unchanged in December, with firmer cereal prices helping offset declines in dairy and sugar quotations, the United Nations food agency said.The Food and

Agriculture Organization's (FAO) food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 161.7 points last month against 161.6 in November.In 2018 the index averaged 168.4 points, down 3.5 percent from 2017 and almost 27 percent below the highest level of 230 points reached in 2011, FAO said.“Sugar values dropped the most in 2018, with also vegetable oil, meat and dairy prices registering year-on-year decreases. However, international prices of all major cereals rose in 2018,” FAO said. The FAO Cereal Price Index increased 1.8% in December 2018 over November 2018 and jumped 9.6% above December 2017. Wheat prices were up slightly in December, mostly supported by harvesting concerns in Argentina due to untimely rains and tightening export supplies in the Russian Federation. However, strong competition for exports limited the rise in prices. International maize prices also rose in December, amid firm global demand coupled with weather concerns in the southern hemisphere. By contrast, international rice prices subsided for the sixth successive month, pressured further by a quiet pace of trade.Over the whole of 2018, the FAO Cereal Price Index increased 9.0% above 2017 but still remained 31% below its peak reached in 2011. Falling world output of wheat and maize contributed to the increase in prices during 2018, although overall global supplies of all the major cereals remained more than sufficient, leaving inventories still at high levels.

Gold prices edged up on Friday in Asia as U.S. dollar slipped on expectations that the Federal Reserve may pause interest rates hike this year if the global economy continues to slow.Gold futures for February delivery rose 0.3% to ET ( 0 6 : 4 8 G M T ) 1,292.30 by 1 : 4 8 A M Chairman Jerome Powell onthe Comex exchanged.Fed reiterated on Thursday that the central bank could afford to be patient on monetary policy, and downplayed suggestions that interest rates would be hiked twice more in 2019."We can afford to be patient about assessing how to adjust our policy stance," he said. This is in part because "we begin the year as close to our assigned objectives as we have in a very long time," he added.

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Special Report

14–JAN-2019

RECOMMENDATIONS GUARGUM5 TRADING STRATEGY: BUY GUARGUM JAN ABOVE 8380 TARGET 8395/8420/8440 SL 8320 SELL GUARGUM JAN BELOW 8100 TARGET 8085/8060/8040 SL 8160

NCDEX INDICES Index

Value

% Change

Barley

1941

-1.27

Castor Seed

5348

1.44

Chana Coriander Cotton Seed Oilcake Guar Seed 10 MT

4198 6167 1930 4348

-1.85 -2.74 -1.43 0.24

17490

-0.51

3959 3466 6626

0.61 0.7 0.18

Jeera Mustardseed Soy Bean Turmeric

DHANIYA TRADING STRATEGY: BUY DHANIYA JAN ABOVE 6020 TARGET 6035/6055/6080 SL 5960 SELL DHANIYA JAN BELOW 6000 TARGET 5985/5960/5940 SL 6060

Rice export prices in India rose this week due to a rally in local rates, while Thai and Vietnam prices are expected to drop in the coming weeks with fresh supplies hitting the market.India's 5 percent broken parboiled variety was quoted around $382-$387 per tonne this week, compared with $376-$383 last week.Export prices in India had shot up earlier after Chhattisgarh, a leading Rice producing state in central India, raised the minimum paddy buying price.Meanwhile, rates for Vietnam's 5 percent broken Rice stayed flat from last week at $370-$375 a tonne, and traders expect prices to fall in the coming weeks on rising supplies and weak demand.In Thailand, benchmark 5percent broken Rice prices narrowed to $390-$400 range, free on board Bangkok, from $380-$400 last week due to the baht's strength against the U.S. Dollar. According to the price analysis done by Tamil Nadu Agriculture University ( TNAU), Coconut would fetch a better price for farmer till March.Farmers could expect good quality Coconut to fetch a farm gate price of Rs 15 to Rs 17 per piece.The study also found that the damage caused to Coconut plantation due to the cyclone Gaja and the up coming festival season would spur the demand for Coconuts.Coconut is cultivated in 20.79 lakh hectares land across the country, Tamil Nadu, Kerala, Karnataka and Andhra Pradesh are main producers. The southern states together accounts for nearly 81 percent of the total Coconut produced in the country. According to the price analysis done by Tamil Nadu Agriculture University ( TNAU), Coconut would fetch a better price for farmer till March. Farmers could expect good quality Coconut to fetch a farm gate price of Rs 15 to Rs 17 per piece. The study also found that the damage caused to Coconut plantation due to the cyclone Gaja and the up coming festival season would spur the demand for Coconuts.

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Special Report

14–JAN-2019

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

70.62 Yen

65.2825

Euro

81.44 GBP

90.34

USD/INR TRADING STRATEGY: USD/INR BUY USDINR FUTURE ABOVE 70.80 TARGET 70.9 71 SL 70.5 SELL USDINR FUTURE BELOW 70.5 TARGET 70.4 70.3 SL 70.8

GBP/INR TRADING STRATEGY: BUY GBPINR FUTURE ABOVE 90.75 TARGET 90.85 90.95 SL 90.55 SELL GBPINR FUTURE BELOW 90.20 TARGET 90.10 90 SL 90.4

The dollar fell versus other major currencies for a fourth straight session on Tuesday, as investors grew increasingly convinced the Federal Reserve will not raise interest rates this year amid uncertainties over the US economy. The dollar index fell marginally to 95.64. It dipped 0.1 per cent against the yen and eased marginally versus the euro and sterling in early Asian trade. On Friday, Fed Chairman Jerome Powell told the American Economic Association the Fed is not on aa preset path of rate hikes and it will be sensitive to the downside risks markets are pricing in. The euro was on track for its biggest weekly rise in four months on Friday as the U.S. dollar weakened on signs that the Federal Reserve could slow down the pace of interest rate hikes.EUR/USD jumped 0.23% to 1.1524 as of 5:30 AM ET (10:30 AM ET), pushed higher by the falling greenback. Still, the single currency remains under pressure due to weak economic data and expectations the European Central Bank will keep rates low in 2019."The euro remains supported by the soft dollar story. The risk of a short squeeze perhaps to the $1.1620/ area remains," said Chris Turner, head of foreign exchange at ING in London.The U.S. dollar was pushed lower on Thursday after Fed Chairman Jerome Powell restated that the central bank will evaluate the economy before making any decisions on monetary policy.“We have the ability to be patient and watch patiently and carefully as we watch the economy evolve,” Powell said in prepared remarks on Thursday at the Economic Club of Washington, D.C.The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.19% to 94.93.Elsewhere, the pound inched up despite Brexit uncertainty. GBP/USD rose 0.15% to 1.2765. The Indian rupee extended its fall for the third consecutive trading session on Thursday and depreciated 15 paise to 70.61 against the American currency in intraday trading. Notably, the currency has been oscillating between gains and losses since it opened on Thursday. It had depreciated 3 paise to open at 70.49/US$ compared to its previous close of 70.46.

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Special Report

14–JAN-2019

Date

Commodity/ Currency Pairs

11/1/19

NCDEX DHANIYA

JAN

BUY

6020

11/1/19

NCDEX DHANIYA

JAN

Sell

11/1/19

NCDEX GUARGUM5

JAN

11/1/19

NCDEX GUARGUM5

11/1/19

Contract Strategy

Entry Level

Stop Loss

Remark

6035/6055/60 80

5960

NOT EXECUTED

6000

5985/5960/59 40

6060

TARGET

BUY

8380

8395/8420/84 40

8320

TARGET

JAN

SELL

8350

8335/8320/82 90

8410

TARGET

MCX GOLD

JAN

BUY

31790

31840 31940

31720

11/1/19

MCX GOLD

JAN

SELL

31700

31650 31550

31770

11/1/19

MCX SILVER

MAR

BUY

39460

39600 39800

39260

NOT EXECUTED

11/1/19

MCX SILVER

MAR

SELL

39350

39200 39000

39550

TARGET HIT

Entry Level

Target

Stop Loss

Remark

Target

NOT EXECUTED

TARGET HIT

Date

Scrip

CASH/ FUTURE/ Strategy OPTION

11/1/19

NIFTY

FUTURE

BUY

10850

10920/10970

10750

OPEN

11/1/19

STAR

FUTURE

BUY

477-480

487/493

468

OPEN

11/1/19

BHARAT FIN

FUTURE

BUY

1010-1012

1020/1030/10 35

995

NOT EXECUTEED

11/1/19

REPOHOME

CASH

BUY

430

435

420

TARGET

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Special Report

14–JAN-2019

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

REPORT

PERIOD

ACTUAL

FORECAST

PREVIOUS

THE GOVERNMENT SHUTDOWN COULD DELAY THE RELEASE OF SOME DATA THIS WEEK MONDAY, JAN. 14 None scheduled TUESDAY, JAN. 15 8:30 am

Producer price index

Dec.

-0.1%

0.1%

8:30 am

Empire state index

Jan.

--

10.9

8:30 am

Retail sales*

Dec.

0.1%

0.2%

8:30 am

Retail sales ex-autos*

Dec.

0.0%

0.2%

8:30 am

Import price index

Dec.

--

-1.6%

10 am

Business inventories*

Nov.

--

0.6%

10 am

Home builders' index

Jan.

--

56

8:30 am

Weekly jobless claims

1/12

220,000

216,000

8:30 am

Housing starts*

Dec.

1.256mln

1.256mln

8:30 am

Building permits*

Dec.

--

1.328mln

8:30 am

Philly Fed index

--

9.1

WEDNESDAY, JAN. 16

THURSDAY, JAN. 17

9:45 am

Markit manufacturing index flash

9:45 am Markit18 services index flash FRIDAY, JAN.

Nov.

Jan.

Nov.

--

55.7

--

54.8

9:15 am

Industrial production

Dec.

0.3%

0.6%

9:15 am

Capacity utilization

Dec.

78.5%

78.5%

10 am

Consumer sentiment index

Jan.

98.0

98.3

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