Special report-16-august-epic-research-2018

Page 1

Special Report 16-Aug-2018

Global markets at a glance Wall Street fell in a day of heavy trading on Wednesday with the S&P 500 posting its biggest percentage drop since late June as investors turned risk-averse on disappointing earnings and escalating global tariff worries. Chinese technology company Tencent Holdings Ltd reported its first profit decline in almost 13 years, putting pressure on the US tech sector.Technology stocks were the biggest drag on the S&P 500 and the Nasdaq, with the S&P 500 technology index down 1.1 percent. Retail shares fell as Macy’s Inc stock tumbled 15.9 percent after margin fears spooked investors, overshadowing its stronger-than-expected sales and earnings. Asian shares hit fresh one-year lows in early trading on Thursday, while oil and precious metal prices also tumbled as Turkey’s currency crisis and fears of an economic slowdown in China fanned worries about global growth. MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.0 percent, while Japan's Nikkei and the Australian benchmark dropped 1.2 percent and 0.4 percent, respectively. Chinese stocks continued to sag, with the Shanghai Composite Index and Hong Kong's Hang Seng index shedding 1.1 percent and 0.9 percent, respectively. Previous day Roundup The Nifty 50 rebounded from two-day losses Tuesday and extended the rally on August 14 despite volatility in the rupee, which breached the 70 to a US dollar-mark. The index closed decisively above the psychological 11,400 levels despite mixed global cues, forming bullish candle on the daily candlestick charts.The broad-based rally saw all sectoral indices end in the green with pharma leading the charge with a 3 percent rise. The broader markets also participated in the up move, with the Nifty Midcap index rising a percent.After opening higher at 11,381.70, the Nifty extended gains as the day progressed and crossed 11,400 levels to hit an intraday high of 11,452.45. The index closed 79.30 points higher at 11,435.10.According to Pivot charts, the key support level is placed at 11,386.43, followed by 11,337.77. If the index starts moving upwards, key resistance levels to watch out are 11,468.13 and 11,501.17. The Nifty Bank index closed at 28,021.70, up 227.30 points on Tuesday. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[16.05pts], Consumption[25.50pts],PSE[-0.10pts],CPSE [10.70pts],Energy[168.55pts],FMCG[245.50pts],Auto [46.45pts],Pharma[294.55pts],IT[129.00pts],Metal [8.80pts],Realty[5.35 pts], Fin Serv sector[67.15pts].

World Indices Index

Value

% Change

DJI

25,162.40

-0.54

S&P500

2,829.75

0.29

NASDAQ FTSE100

7,403.25 7,497.87

0.39 -1.52

22,161.77 27,155.66

-0.19 -0.62

NIKKEI HANG SENG

Top Gainers Company

CMP

Change

% Chg

Sun Pharma

601.80

37.90

6.72

Yes Bank

382.50

11.80

3.18

Lupin

836.75

24.80

3.05

Bajaj Finance

2,830.20

69.80

2.53

UltraTechCement

4,299.10

104.90

2.50

CMP

Change

% Chg

610.45 3,266.35 1,253.25 270.05

-14.95 -41.85 -15.80 -3.05

-2.39 -1.27 -1.25 -1.12

373.15

-4.00

-1.06

Top Losers Company

UPL Hero Motocorp Larsen HPCL Adani Ports

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

ABFRL

179.05

13.3

7.43

ALBERTDAVD

514.95

45.05

8.75

23.7

1.15

4.85

981.85

23.2

2.36

441.2

10.8

2.45

BALAXI BATAINDIA DABUR

Stocks at 52 Week’s LOW Symbol

ABMINTLTD APARINDS APCL ARENTERP ASIANTILES

Prev. Close

Change

%Chg

17.75 563.8 149.5 8.75 254.1

-0.25 14.7 -5.4 -0.4 -23.1

-1.41 2.61 -3.61 -4.57 -9.09

Indian Indices Company

CMP

Change

% Chg

NIFTY

11435.10

79.30

0.70

SENSEX

37852.00

207.10

0.55

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Special Report 16-Aug-2018

RECOMMENDATIONS [FUTURE] 1.INFY [FUTURE ] After showing good strength this particular script has shown weakness aroun its crucial resistacne level of 1425 in future. In the earlier trading session it clsoed with a negative spinning top candle here we can withness a chance of reversal so we advice to short infy around the levels of 142125 for the targets of 1400-1370 with stoploss above 1430.

2.AUROPHARMA [FUTURE] The pharma sector is showed strength on Tuesday , this particular rebounded from its support level of 618 and closed just near its resistance level of 638 here buy on strngth would be good opportunity to grab so we advice to buy auropharma future around the levels of 638-640 for the targets of 650-660 with stoploss below 630.

STOCK RECOMMENDATION [CASH] PHILIPCARB [FUTURE] the particular script has rebounded from its support level of 257, in the previous two trading session it showed some profit booking by correcting from its resistance level of 280now it has closed with a bullish harami candle at its support level of 257 here you can go long from the current level of 263-264 for the targets of 270-280 with stoploss below 258.

MACRO NEW  Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 37.5 points or 0.33 percent. Nifty futures were trading around 11,406level on the Singaporean Exchange.  After falling to a historic low of 70.08 to the US dollar during the day, the rupee on Tuesday ended at 69.89, up 2 paise from its previous close of 69.91.Weakness in Turkish currency (lira), along with panic among importers led to the selloff in the Indian currency, analysts that Moneycontrol spoke to, said. At 70.08 per US dollar, the currency witnessed a depreciation of depreciated 10 percent in 2018 so far. It had opened marginally higher at 69.85 against the greenback.The currency had breached psychological mark of 70 per US dollar in the morning session. However, a possible intervention by the central bank, helped it to recover as well.  Investors pumped a staggering Rs 10,585 crore in equity mutual funds in July, mainly driven by strong corporate earnings and near normal monsoon. With this, total inflow has reached to over Rs 43,300 crore in equities during the current financial year (AprilJuly), according to the data from the Association of Mutual Funds in India (Amfi). Strong inflow pushed the asset base of equity mutual funds (MFs) by more than 10 percent to Rs 8.3 lakh crore by July-end from Rs 7.5 lakh crore at end-March.

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Special Report 16-Aug-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION

Indiabulls Real Estate: Q1 consolidated net profit down 0.9 percent at Rs 117 crore versus Rs 118.50 crore; consolidated net revenue up 38.5 percent at Rs 810.9 crore versus Rs 585.6 percent crore (YoY).

3,97,896

6,80,920  4,24,760

3,52,398

4,96,880

Fortis Healthcare: Q1 net loss of Rs 52.8 crore versus profit of Rs 22.6 crore; revenue down 9.9 percent at Rs 1,042 crore versus Rs 1,156.6 crore (YoY).

9.25

16,609

25,89,901

600

23.2

15,546

20,28,400

CE

580

16.9

12,187

16,68,953

SUNPHARMA

CE

620 13.85

10,112

21,39,500

TATASTEEL

CE

620

7,840

14,62,058

Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

BANKNIFTY

CE

28,200

38.5

4,15,598

BANKNIFTY

CE

28,100

73

BANKNIFTY

CE

28,000 124.8

TATASTEEL

CE

600

SUNPHARMA

CE

TATASTEEL

4.8

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

Optio Strike n Price Type

BANKNIFTY

Open Interest

2,83,500

LTP

Traded Volume (Contracts)

Open Interest

PE

27,900 40.95

3,44,065

6,22,360

BANKNIFTY

PE

27,800 24.05

3,29,196

BANKNIFTY

PE

28,000

64

3,00,340

TATASTEEL

PE

560

9.05

10,201

TATASTEEL

PE

540

4.6

6,235

SUNPHARMA PE

560

4

5,838

TATASTEEL

580 16.55

4,802

540

4,420

PE

SUNPHARMA PE

2.45

NIFTY FUTURE

The Nifty 50 rebounded from two-day losses Tuesday 10,71,360 and extended the rally on August 14 despite volatility in 6,33,560 the rupee, which breached the 70 to a US dollarmark.The index closed decisively above the psychological 11,44,819 11,400 levels despite mixed global cues, forming bullish 13,81,422 candle on the daily candlestick charts, the traders can 13,87,100 make a short position around its crucial resistance levels of 10440-20 for the targets of 11350-300 in nifty future 6,25,990 with stoploss above 11480. 11,40,700

FII DERIVATIVES STATISTICS BUY

SELL

No. of Contracts

Amount in Crores

INDEX FUTURES

20970

2015.49

29929

2737.91

INDEX OPTIONS

712922

71448.39

714828

STOCK FUTURES

163460

11154.74

STOCK OPTIONS

106459

8114.83

OPEN INTEREST AT THE END OF THE DAY

No. of Amount in No. of Contracts Crores Contracts

Amount in Crores

NET AMOUNT

322707

28023.56

-722.4196

71852.23

712100

62983.05

-403.8392

157324

10676.09

1143619

84822.14

478.6583

107152

8194.01

132073

9999.00

-79.1878 -726.7883

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

11501.00

11468.00

11419.00

11386.00

11337.00

BANKNIFTY

28175.00

28098.00

27976.00

27899.00

27777.00

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Special Report 16-Aug-2018

RECOMMENDATIONS GOLD TRADING STRATEGY: BUY GOLD OCT FUT ABOVE 29830 TGT 29880 29880 SL BELOW 29760 SELL GOLD OCT FUT BELOW 29730 TGT 29630 29530 SL ABOVE 29800

SILVER TRADING STRATEGY: BUY SILVER SEP FUT ABOVE 37900 TGT 38100 38300 SL BELOW 37700 SELL SILVER SEP FUT BELOW 37700 TGT 37500 37300 SL ABOVE 37900

COMMODITY ROUNDUP Gold prices edged down and closed marginally lower on Friday, as the dollar strengthened against most major currencies. The dollar climbed to its best level in more than a year against major currencies. The lira crashed over 16% to a record low against the greenback amid fears the turmoil in Turkey's banking sector could significantly hurt the European economy. Russia's rouble dropped to its weakest level since late 2016 while the euro and pound hit their lowest levels in a year. With trade war concerns and imminent interest rate hikes by the Fed already keeping the dollar on a high against most major currencies, gold has been finding it tough to move higher from 2018 lows. The dollar index rose nearly 1% to 96.31.Gold futures for December ended down $0.90, or about 0.9%, at $1,219.00 an ounce. With today's fall, the yellow metal has recorded its fifth successive weekly decline. Crude oil prices climbed higher on Friday, lifted by International Energy Agency's forecast that world oil demand will increase by 110,000 barrels a day to 1.5 million barrels next year. The IEA said in its monthly oil market report that maintaining the world's oil supply will be very challenging, due to fresh U.S. sanctions against Iran. However, the agency noted that there were risks to the demand forecast from the escalating trade dispute along with any rally in prices caused by supply constraints.According to reports, China has decided to remove crude oil from its latest tariff list. Meanwhile, Baker Hughes reported today that the number of active U.S. rigs count increased by 10 to 869 for the week. Last week, rig count had dropped by 2. Crude oil futures for September delivery ended up $0.82, or 1.3%, at $67.63 a barrel. On Thursday, oil futures ended ended down $0.13, or 0.2%, at $66.81 a barrel. For the week, oil futures shed 1.3%, with concerns about likely supply shortage due to sanctions on Iran and disruptions in Libya and Venezuela. Concerns that the U.S.-China trade war could hurt global economic growth and result in a drop in demand for crude too contributed to oil's fall in recent sessions. Indian Copper futures on were trading at Rs 419 per kg, sliding around half a percent on the day. The prices were down amid weak global cues as COMEX Copper pulled back by nearly 0.70% today after a spurt in last session. India industrial production rose 7 percent year-on-year in June from a year ago, with strong gains across the board, official data showed Friday. Factory output growth measured in terms of the Index of Industrial Production (IIP) was revised upwards for May at 3.9 per cent from previous estimate of 3.2 per cent estimated .

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Special Report 16-Aug-2018

RECOMMENDATIONS GUARGUM5 BUY GUARGUM OCT FUT ABOVE 9800 TGT 9850 9900 SL BELOW 9750 BUY GUARGUM5 OCT ABOVE 9730 TARGET 9680 9630 SL 9780.

NCDEX INDICES Index

Value

% Change

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

1624.5 4610 4279 4901 1726 4464

-0.18 1.41 -0.42 -0.43 -0.49 1.69

Jeera

19150

-0.08

4110 3322 7000

0.27 -0.27 0.00

Mustardseed Soy Bean Turmeric

DHANIYA BUY DHANIYA AUG FUT ABOVE 4990 TGT 5040 5140 SL BELOW 4900 SELL DHANIYA AUG BELOW 4860 TARGET 4820 4770 SL 4900.

Weakness was seen in wheat due to thin buying in local mandies. The spot prices of wheat increased by Rs 10 per quintal at Delhi Mandi. As per latest update from United States Department of Agriculture (USDA), the global 2018/19 wheat supplies are seen decreasing 9.3 million tons due to primarily on lower production, which is the smallest in three years. Strong buying by traders has extended gains in turmeric market today. The total daily arrivals of 18000-25000 bags have been reported in Nizamabad mandi, while 1000-1200 bags in Erode mandi. The spot prices of turmeric increased by Rs 30 per quintal, with the price range of Rs 6950-7200 per quintal. Weakness in oilmeal demand has added selling in mustard seed market. As per latest data compiled by Ministry of Agriculture, oilseeds acreage declined by 1.15 percent on the account of decline in groundnut and sunflower area in Gujarat. Traders stated that spot prices decreased by more than Rs 12 per quintal today in Jaipur, while arrivals were reported in the range of 0.80-1.20 lakh bags. Domestic exports of farm and processed food products went up by nearly 6% growth in dollar terms to $4.68 billion during the April-June quarter of this year over the corresponding period last year according to the latest numbers from the Agricultural and Processed Foods Export Development Authority (Apeda). In rupee terms, the growth was higher, clocking around 10% to Rs 31,397 crore. The export growth has been buyoant mainly on account of strong demand for non-basmati rice, pulses, dairy products, guar gum, fruits, vegetable seeds etc. Buoyancy continued in Chana prices today due to limited supplies. The spot prices were trading in the range of Rs 4350-4400 per quintal with total arrivals of 12 motors. As per latest data compiled by Ministry of Agriculture, the Kharif pulses area lagged by 3.90% to stand at 115 lakh hectares.

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Special Report 16-Aug-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

69.4685 Yen

62.9700

Euro

79.1876 GBP

88.6274

USD/INR BUY USDINR ABOVE 70.50 TGT 70.80/71.10 SL BELOW 70.20 SELL USDINR BELOW 68.90 TGT 68.60/67.30 SL ABOVE 69.20

GBP/INR BUY GBPINR ABOVE 89.90 TGT 90.20/90.50 SL BELOW 89.60 SELL GBPINR BELOW 89.30 TGT 89.00/88.70 SL ABOVE 89.60

The Reserve Bank of India likely intervened in the foreign exchange market to support the rupee on Friday, after most emerging market currencies fell sharply on heightened global tensions, dealers said. The rupee fell to as low as 69.03 to the dollar, its lowest since July 24, before trimming some of its losses to trade at 68.95. The rupee has been the worst performing currency in Asia so far in 2018, falling 7.4 percent since the start of January. The currency has been beset by a host of factors, with higher oil prices adding to worries about inflation, current account and fiscal deficits and rising global trade tensions. The RBI has intervened strongly in recent months to slow the slide, but it has still lost 3 percent since start of June. With the central bank hiking interest rates, the rupee is expected to trade in a tight range in the coming year, possibly edging up to 68.22 but remaining near its historic low, a Reuters poll found. The sharp fall in the rupee had prompted foreign investors to sell $5.35 billion in debt and equity in India. But flows turned mildly positive in July and August. Since the rupee is traded over the counter, the size of interventions by the central bank during the day is difficult to ascertain. However, a few dealers estimated that the RBI might have sold close to $600-800 million so far on Friday to stem the rupee's fall. The RBI typically intervenes in forex market through staterun banks. Since April RBI has sold $21 billion in spot and $10 billion in forwards, according to traders and analysts, estimating from the fall in overall foreign exchange reserves and the central bank's monthly bulletin data. Turkey's lira plunged as much as 14 percent on Friday as worries about President Tayyip Erdogan's influence over monetary policy and worsening US relations snowballed into a market panic that also hit shares of European banks. The sell-off has deepened concern about exposure to Turkey, particularly whether over-leveraged companies will be able to pay back loans in euros and dollars after years of overseas borrowing to fund a construction boom under Erdogan. Erdogan's characteristic defiance in the face of the sell-off has further unnerved investors. The president, who says a shadowy "interest rate lobby" and Western credit ratings agencies are attempting to undermine Turkey's economy, said in a speech overnight that Turks should "have no worries".

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Special Report 16-Aug-2018

Date

Commodity/ Currency Pairs

14/08/18

NCDEX DHANIYA

AUG

BUY

14/08/18

NCDEX DHANIYA

OCT

14/08/18

NCDEX GUARGUM5

14/08/18

Contract Strategy

Entry Level

Target

Stop Loss

Remark

4990

5040 5140

4900

NOT EXECUTED

SELL

4930

4880 4800

4990

OPEN

AUG

BUY

9530

9600 9700

9450

NOT EXECUTED

NCDEX GUARGUM5

AUG

SELL

9800

9700 9500

9900

SL TRIGGERED

14/08/18

MCX GOLD

AUG

BUY

29800

29850 30000

29730

NOT EXECUTED

14/08/18

MCX GOLD

AUG

SELL

29730

29630 29530

29800

SL TRIGGERED

14/08/18

MCX SILVER

SEP

BUY

38100

38300 38600

37900

NOT EXECUTED

14/08/18

MCX SILVER

SEP

SELL

37900

37700 37400

38100

OPEN

Date

Scrip

CASH/ FUTURE/ OPTION

Strategy

Entry Level

Target

Stop Loss

Remark

14/08/18

NIFTY

FUTURE

SELL

11430

11400

11480

SL TRIGGERED

14/08/18

NBCC

FUTURE

BUY

70.50

68-64

73

NOT EXECUTED

14/08/18

INFY

FUTURE

BUY

1405-1408

1415-1425

1400

TGT HIT

14/08/18

AUROPHARMA

FUTURE

BUY

620-622

630-640

615

SL TRIGGERED

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Special Report 16-Aug-2018

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

REPORT

PERIOD

ACTUAL

FORECAST

PREVIOUS

TUESDAY, AUG. 14

TUESDAY, AUG. 14

TUESDAY, AUG. 14

--

-0.4%

WEDNESDAY, AUG. 15

WEDNESDA Y, AUG. 15

11 am TUESDAY, AUG. 14

TUESDAY, AUG. 14

TUESDAY, AUG. 14 6 am

8:30 am WEDNESDA Y, AUG. 15

Import price index WEDNESDAY, AUG. 15

WEDNESD WEDNESDAY, AUG. AY, AUG. 15 15 8:30 am

8:30 am

Retail sales ex-autos

July

0.3%

0.4%

8:30 am

Empire state index

Aug.

--

22.6

8:30 am 8:30 am

Unit labor costs

Q2

0.0%

2.9%

9:15 am

Industrial production

July

0.3%

0.6%

9:15 am

Capacity utilization

July

78.2%

78.0%

10 am

Home builders' index

Aug.

--

68

THURSDAY, AUG. 16

THURSDAY, AUG. 16

--

213,000

10 am THURSDAY, AUG. 16

THURSDAY, AUG. 16

8:30 am

Weekly jobless claims

THURSDA THURSDAY, AUG. 16 Y, AUG. 16 Disclaimer 8/11

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