Special report-15-nov-epic-research-2018

Page 1

Special Report 15-Nov-2018

Global markets at a glance Wall Street stocks fell on Wednesday, with the S&P 500 notching a fifth straight day of losses as financial stocks were hit by fears that regulations on the banking industry would tighten once the Democratic Party takes control of the US House of Representatives. Financial stocks fell after Democrat Maxine Waters, who is expected to become chair of the House Financial Services Committee, made clear that she intends to push for stricter rules on the sector. Waters said she was concerned by the Federal Reserve's efforts to reduce capital and liquidity requirements for banks and wants the central bank to vigorously supervise large banks.The financial sector dropped 1.4 percent and was the biggest percentage decliner on the S&P 500. The S&P 500 Banks index fell 1.7 percent.US stocks pared losses somewhat after British Prime Minister Theresa May won the backing of her senior ministers on a draft agreement for exiting the European Union, though they resumed their descent in the last halfhour of trading. Asian stocks edged up on Thursday as a steep slide in crude oil prices which had chilled investor sentiment slowed, while the pound and euro were supported after British Prime Minister Theresa May gained cabinet support for a Brexit deal. PREVIOUS DAY ROUNDOFf Bulls failed to maintain their hold on markets on November 14 and ended the day flat. The index formed a bearish candle resembling a ‘Hanging Man’ on the daily charts.The index reversed gains after hitting levels between 10,60010,650 for the fifth consecutive day in a row and now a close above 10,650-10,700 is required for bulls to regain control over D-Street. On the other hand, a close below 10,550-10,532 could take the index lower towards 10,440 levels suggest experts.Even though the market might be giving mixed signals, experts suggest investors stay long on the index with a stop below 10,440 levels. The index formed a Piercing patter in Tuesday's session which suggested bulls might regain control of D-Street, but the formation of a bearish candle might have now negated the positive pattern.

World Indices Index

Value

% Change

DJI

25286.49

-0.40

S&P500

2722.18

-0.15

NASDAQ

7200.87

-2.66

FTSE100

7053.76

0.00096

21784.17 25784.48

-0.12 -0.033

NIKKEI HANG SENG

Top Gainers Company

CMP

Change

% Chg

HPCL

243.7

10.9

4.68

BPCL

315.95

12.8

4.22

UPL

760.25

23.7

3.22

7,369.05

218.6

3.06

161

4.5

2.88

CMP

Change

% Chg

520.1 700.25 352.55 997.1 1,129.90

-41.65 -27.8 -12.8 -36.1 -36

-7.41 -3.82 -3.5 -3.49 -3.09

Maruti Suzuki ONGC

Top Losers Company

Sun Pharma Tech Mahindra GAIL HCL Tech Kotak Mahindra

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

AARTIIND

1375.3

70.7

5.14

ELECTROSL

23.65

1.15

4.86

GUJFLUORO

924.75

-27.65

-2.99

360.9

5.4

1.5

619.35

21.65

3.5

Prev. Close

Change

%Chg

2.9

0.1

3.45

18.65

0.05

0.27

55.7 3.1 1.4

-2.75 -0.1 0.05

-4.94 -3.23 3.57

ICICIBANK LINDEINDIA

Stocks at 52 Week’s LOW Symbol

ABGSHIP ADROITINFO

Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[-42.05pts], Consumption[-6.5ts],PSE[-28.1pts],CPSE[-17.4pts],Energy [-7 4 .45 pts],FM CG[+1 .4 pts],Auto [ -1 .9 pts],Pharm a [37.15pts],IT[+151.45pts],Metal[-24.8pts],Realty[-0.45 pts], Fin Serv sector[+8.5pts].

AIFL ALCHEM ANGIND

Indian Indices Company

CMP

Change

% Chg

NIFTY

10576.30

-6.20

-0.06

SENSEX

35141.99

-2.50

-0.01

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Special Report 15-Nov-2018

RECOMMENDATIONS [FUTURE] 1. CADILAHC [FUTURE ] Stock has given the breakout of ascending triangle on the closing basis on the daily chart and closed near to days high. It also maintained itself above the 200 EMA on the hourly chart. We recommend buying around the 370 level for the target of 375 with the stop loss of 365

2. BANKBARODA [FUTURE] Stock is consolidating from past a few trading sessions and today performed well good volumes. It also formed the flag pattern on the daily chart. We recommend buying above the 114 level for the target of 116 with the stop loss of 112.

STOCK RECOMMENDATION [CASH] FCONSUMER [CASH] Stock outperformed well with volume breakout and closed near to days high it also gave closing above the 200 EMA on the daily chart. The RSI also looking strong on the daily chart. We recommend buying above the 53 level for the target of 54 with the stop loss of 52.

MACRO NEWS 

Oil rebounds from steep sell-off as OPEC, partners discuss supply cutOil rose about 1 percent on Wednesday, recouping some of the previous session's heavy sell-off, on growing prospects that the Organization of the Petroleum Exporting Countries and allied producers would cut output at a meeting next month to prop up prices.

JSW Steel sets sights on troubled steel companiesJSW Steel is training its eyes on downstream assets as it looks at the next round of companies that have been referred to the insolvency courts.

Vodafone Idea reports loss of Rs 4,973 cr for Sept quarter, mulls raising Rs 25k cr

Auto manufacturers may recoup lost pricing power in 2019 pre-buying burst

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Special Report 15-Nov-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

Open Interest

BANKNIFTY

CE

26,000

60.3 14,97,725

9,57,860

BANKNIFTY

CE

26,200

18.4 10,24,998

7,34,600

BANKNIFTY

CE

26,100

34.8

9,78,022

7,37,740

NIFTY

CE

10,700

79.4

2,17,665

27,78,450

RELIANCE

CE

1,100

24.5

9,752

24,85,500

TATASTEEL

CE

620

4.6

9,555

15,04,498

MARUTI

CE

7,500

107

8,928

1,51,050

ASHOKLEY

CE

120

0.95

8,773

97,52,000

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

Optio Strike n Price Type

LTP

PC Jeweller: The company's net profit fell 38 percent at Rs 39.7 crore.

Alkem Labs: US FDA has concluded inspection at Taloja unit with no observations.

Yes Bank: Non-Executive (Independent) Part-Time

NIFTY FUTURE

2,83,500

Traded Volume (Contracts)

Open Interest Last trading session NIFTY Future close on flatish note

BANKNIFTY

PE

25,800

49

10,57,859

7,76,800

BANKNIFTY

PE

25,700 27.85

9,48,097

8,61,600

BANKNIFTY

PE

25,200

5

2,49,442

3,95,740

NIFTY

PE

10,500 95.95

1,61,993

25,71,675

RELIANCE

PE

1,080 16.75

7,776

6,19,000

TATASTEEL

PE

12.2

5,550

7,20,419

RELIANCE

PE

1,060 10.95

5,455

6,87,000

RELIANCE

PE

1,100 25.35

5,158

6,63,500

580

with mildly bearish candle in daily chart,and if we go technically on chart we can clearly see that nifty future respect major resistsance level 10700 then after nifty retrace and made a low around 10550, It’s support level.But again NIFTY bounce back at support area and close around 10600 and bullish sentiment is strong across sectors. During the week highest OI add at 10500 PUT and maximum OI at 10700 CALL option in the week. And volatile moves may continue in the market.So we can follow buy on decline strategy it will be good, buy around 10550-10560 for the target of 10650-10700 with SL of 10500

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

66781

4364.32

66489

4272.53

412314

31350.74

91.7901

INDEX OPTIONS

2284494

128135.38

2273286

127533.33

1015050

73617.14

602.0536

STOCK FUTURES

264769

15212.25

286715

16427.35

1396881

82368.79

-1215.0953

STOCK OPTIONS

172022

10099.96

171422

10033.10

156839

9449.02

66.857 -454.3946

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

10738.67

10673.33

10530.57

10415.63

10349.67

BANKNIFTY

26132.67

25984.33

25706.67

25558.33

25280.67

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Special Report 15-Nov-2018

RECOMMENDATIONS GOLD TRADING STRATEGY: BUY GOLD ABOVE 30725 TGT 30775 30875 SL BELOW 30650 SELL GOLD BELOW 30600 TGT 30550 3450 SL ABOVE 30680

SILVER TRADING STRATEGY: BUY SILVER ABOVE 36300 TGT 36450 36650 SL BELOW 36100 SELL SILVER BELOW 36000 TGT 35850 35650 SL ABOVE 36200

COMMODITY ROUNDUP Anxiety over the U.S.-China trade war and Brexit is keeping gold's $1,200 perch alive, even as the dollar tries to gain leverage against the yellow metal on the same concerns. Skittish trading in U.S. stocks was also prompting bullion fans to stay with the precious metal as October's rout in global equities, and gold's surge to four-month highs, remains in their memory. The Dow was 0.8% lower by 2:38 PM ET (19:38 GMT), giving back early gains as Apple (NASDAQ:AAPL) led a decline in tech stocks. Gold also got a sentiment pop from the rebound in crude prices, which snapped a 12-day rout on Wednesday, the most prolonged selloff in oil history, traders said. On the trade war front, U.S. President Donald Trump and his Chinese counterpart Xi Jinping are to meet in two weeks at the G20 summit in Argentina to try and strike a deal to lower tariffs on roughly $360 billion worth of goods flowing between the two countries. But ahead of that, Trump economic adviser Larry Kudlow and adviser Peter Navarro are at odds over the latter's criticism of Wall Street for trying to influence the outcome of the talks. Oil prices fell on Thursday, pressured by rising supply going into a market in which consumption is expected to slow down amid a glum economic outlook. Front-month Brent crude oil futures were trading at $65.90 per barrel at 0254 GMT, down 22 cents, or 0.3 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were at $55.95, down 30 cents, or 0.5 percent. Since early October, oil prices have lost around a quarter of their value as supply soars just as demand is expected to slow down along with an economic downturn. "Asian refiners and consumers we speak with are mentioning initial concerns of slowing demand," said Mike Corley, president of Mercatus Energy Advisors. U.S. bank Morgan Stanley (NYSE:MS) said in a note on Wednesday that China's economic "conditions deteriorated materially" in the third quarter of 2018. Meanwhile, data released this week showed economic contraction in industrial powerhouses Japan and Germany in the third quarter.At the same time, supply has been surging, especially due to a 22 percent rise in output in U.S. crude oil production this year to a record 11.6 million barrels per day (bpd).

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Special Report 15-Nov-2018

RECOMMENDATIONS GUARGUM5 TRADING STRATEGY: BUY GUARGUM DEC ABOVE 10040/10070/10100 SL 9900

10010

TARGET

SELL GUARGUM ABOVE DEC 9900 TARGET 9870/9840/9810 SL 10000

NCDEX INDICES Index

Value

% Change

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

1867 6208 4567 6230 1956 4622

-0.51 0.39 0.37 -0.24 0.08 -2.89

19650

-2.75

4100 3355 6600

-0.82 -0.47 0.24

Jeera Mustardseed Soy Bean Turmeric

DHANIYA TRADING STRATEGY: BUY DHANIYA DEC ABOVE 6500 TARGET 6530/6560/6600 SL 6400 SELL DHANIYA DEC ABOVE 6430 TARGET 6400/6370/6340 SL 6530

The United States Department of Agriculture (USDA) estimates India's 2018-19 soybean production at 11.0 million metric tons, up nearly 32 percent from 2017/18.Area is estimated to reach 11.0 million hectares, up 6 percent from last year. Yield is estimated at 1.0 ton per hectare, up 25 percent from both last year and the 5-year average.“The high yield is attributed to favorable weather in the major soybean producing areas,” USDA said in its latest report. USDA cuts its estimate for global Soybean production by 2.0 million tons with lower production for the United States and Argentina partly offset by increases for China, India, and Ukraine. Paddy procurement for federal food security system is likely to decline 6-8% in India as farmers are harvesting a lower yield after heavy rains in September had hit the harvest-ready crops in the northern states.Farmers are harvesting a lower yield per acre in key Rice producing states of Punjab, Haryana and UP. The drop in yield has fueled the price of Paddy and likely to reduce government purchase of the cereal by 20-30% compared to the last season as crop maturity has been affected.  Export of raw sugar from India to China will begin early next year, the government said in a notification. Raw sugar is the second product after non-basmati rice that China will import from India.“A contract for exporting 15,000 tonne of raw sugar has been entered to by the Indian Sugar Mills Association and COFCO, a government of China run public sector Company,” said commerce and industry ministry in a statement.India plans to export 2 million of raw sugar to China next year onwards.India is the largest producer of sugar in the world with 32 million tonnes production in 2018. India is in a position to become a regular and dependable exporter of high quality sugar in significant volumes to China.

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Special Report 15-Nov-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

72.1039 Yen

63.31

Euro

81.4361 GBP

93.6961

USD/INR TRADING STRATEGY: USD/INR BUY USDINR NOV ABOVE 72.50 TGT 72.62 72.75 SL 72.35 SELL USDINR NOV BELOW 72.30 TGT 72.18 72.05 SL 72.45

The rupee gained 36 paise to end at 72.31 against the US dollar Wednesday as global crude oil prices hovered near one-year lows, easing concerns over expanding current account deficit and inflation. The recovery was also supported by dollar-selling by exporters and banks, foreign fund inflows and the greenback's weakness against some currencies overseas, traders said. Brent crude, the international benchmark, dropped almost 7 per cent to a one-year low of USD 65 a barrel, before staging a modest recovery. Indian rupee and bonds rose in early trade on Wednesday, boosted by a fall in global oil prices and on the central bank's announcement to buy bonds via open market purchases.The Indian rupee opened at 72.18 to the dollar, its strongest since Sept. 21 and compared with 72.6750 on Tuesday, while the 10-year benchmark bond yield fell to as much as 7.70 percent, its lowest since Aug. 2. The paper had ended at 7.76 percent on Tuesday.

GBP/INR TRADING STRATEGY: BUY GBPINR NOV ABOVE 93.50 TGT 93.62 93.75 SL 93.35 SELL GBPINR NOV BELOW 93.30 TGT 93.18 93.05 SL 93.45

The euro and sterling climbed higher on Wednesday as investor confidence rose on news Britain had struck a draft divorce deal with the European Union after more than a year of talks. The dollar index, a gauge of its value versus six major peers traded at 97.03 on Wednesday, down 0.28 per cent. The index hit a 16-month high of 97.69 on Monday. The Reserve Bank is intervening in the currency market without hurting the reserves and domestic liquidity. It has gone slow on its spot foreign exchange market intervention in September.It sold only $ 1 billion in spot market, but sold $7 billion in forward, according to the latest date released by the central bank. In comparison it sold $ 6 billion in spot and $ 5 billion in forward in August.

The Reserve Bank has been aggressively selling dollars in the spot as well as forward markets since January this year. This is because the rupee has been losing value as foreign investors started pulling out investments from emerging markets including India following the rate hike since last December. _____________________________________________________________________________________________________________________ Please refer to disclaimer Epic Research Ltd www.epicresearch.co


Special Report 15-Nov-2018

Date

Commodity/ Currency Pairs

14/11/18

NCDEX DHANIYA

DEC

BUY

6480

14/11/18

NCDEX DHANIYA

DEC

Sell

14/11/18

NCDEX GUARGUM5

DEC

14/11/18

NCDEX GUARGUM5

14/11/18

Contract Strategy

Entry Level

Stop Loss

Remark

6500-6520

6420

TARGET

6450

6430-6410

6510

TARGET

BUY

10145

10160-10180

10085

NOT EXECUTED

DEC

SELL

10130

10110-10080

10190

NOT EXECUTED

MCX GOLD

DEC

BUY

30850

30900-31000

30770

NOT EXECUTED

14/11/18

MCX GOLD

DEC

SELL

30800

30750-30650

30880

FINAL TARGET

14/11/18

MCX SILVER

DEC

BUY

36600

36750-36950

36400

NOT EXECUTED

14/11/18

MCX SILVER

DEC

SELL

36500

36350-36150

36700

FINAL TARGET

Entry Level

Target

Stop Loss

Remark

Target

Date

Scrip

CASH/ FUTURE/ Strategy OPTION

14/11/18

NIFTY

FUTURE

BUY

10600

10650-10700

10450

TARGET

14/11/18

JUBLFOOD

FUTURE

BUY

1160

1180

1130

TARGET

14/11/18

GRASIM

FUTURE

BUY

883

890

870

TARGET

14/11/18

UBL

CASH

BUY

1300

1320

1290

STOP LOSS

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Special Report 15-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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