Special report-16-october-2018-epic-research

Page 1

Special Report 16-Oct-2018

Global markets at a glance Even the hard-hit S&P500 energy and financial sectors managed to close the session with slight gains after a late afternoon rally. The S&P technology index gained 3.2 percent on the day, showing its strongest one-day gain since March 26, although it still registered its biggest weekly drop since March 23. “People are starting to buy in, thinking the higher flying growth stocks were oversold. They wanted to get in before next week when earnings start coming,” said Janna Sampson, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois. But until the US and China reach a trade deal, the rebound in the stockmarket could be vulnerable as investors are anxious about the impact of tariffs on corporate profits. Asian shares slipped on Monday as worries over Sino-US trade disputes, a possible slowdown in the Chinese economy and higher US borrowing costs tempered optimism despite a rebound in global equities late last week. Not helping the mood, oil prices jumped and Saudi Arabian shares tumbled on rising diplomatic tensions between Riyadh and the West after the monarchy warned against threats to punish it over disappearance of a journalist. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.3 percent while Japan's Nikkei dropped 0.9 percent. MSCI’s broadest gauge of the world’s stock markets, was off 0.1 percent after a sizable 3.87 percent decline last week to a one-year nadir, and marking its biggest weekly fall since March. The market shakeout has been blamed on a series of factors, including worries about the impact of a US-China trade war. PREVIOUS DAY ROUNDOFF The market managed to extend Friday's gains and closed higher on Monday after a roller-coaster ride. The late buying by the bulls pushed the Nifty to close above psychological 10,500 levels which resulted in a 'Dragonfly Doji' type of pattern on the daily candlestick charts on Monday which also resembles a 'Hammer' like formation. The Nifty50, after opening higher at 10,524.20 traded rangebound for the major part of the session but gained strength in late trade to close 40 points higher at 10,512.50. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[3.15pts], Consumption[-23.10pts],PSE[10.00pts],CPSE [5.30pts],Energy[120.10pts],FMCG[177.15pts],Auto[ 49.85pts],Pharma[248.50pts],IT[258.00pts],Metal[ 14.60pts],Realty[0.30 pts], Fin Serv sector[7.50pts].

World Indices Index

Value

% Change

DJI

25,250.65

-0.35

S&P500

2,756.25

+0.26

NASDAQ FTSE100

7,430.75 7,029.22

-0.88 +0.47

22,343.88 25,396.19

+0.32 -0.19

NIKKEI HANG SENG

Top Gainers Company

CMP

Change

% Chg

2,566.85

116.35

4.75

Cipla

647.85

24.95

4.01

Infosys

698.80

20.00

2.95

ITC

282.50

7.30

2.65

BPCL

296.35

7.45

2.58

CMP

Change

% Chg

5,634.25 1,526.30 212.50 749.00

-179.30 -43.30 -5.90 -19.50

-3.08 -2.76 -2.70 -2.54

351.05

-8.25

-2.30

Dr Reddys Labs

Top Losers Company

Bajaj Finserv HUL HPCL M&M GAIL

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

2896.15

47.85

1.65

JAINSTUDIO

7.6

0.35

4.61

KILITCH

147

18

12.24

LIQUIDETF

999.99

0.01

0

QGOLDHALF

1393.2

26.7

1.92

HDFCMFGETF

Stocks at 52 Week’s LOW Symbol

AIFL ALCHEM ANGIND ANKITMETAL ARCOTECH

Prev. Close

Change

%Chg

154.35 4.2 1.9 0.5 6.7

-7.7 0.2 -0.05 0 -0.3

-4.99 4.76 -2.63 0 -4.48

Indian Indices Company

CMP

Change

% Chg

NIFTY

10512.50

40.00

0.38

SENSEX

34865.10

131.52

0.38

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Special Report 16-Oct-2018

RECOMMENDATIONS [FUTURE] 1.GSFC [FUTURE ] The particular conter bounced back from it lower level of 90 since the market provided much needed support for upside movement but yesterday it made much needed breakout candle and closed above its previous resistance level of 94.50 from here it can reach upto the level of 100 so we advice you to buy gsfc future around 95-96.50 for the target of 100-104 with stoploss below 93

2.WOCKPHARMA [FUTURE] At its downside level of it has made a bullish engulf candle which symbolize that the stock is ready for a breakout as per the market strength it can push upto its next resistance level so we advice you to buy wockpharma future around 523-525 for the targets of 535-555 with stoploss below 517.

STOCK RECOMMENDATION [CASH] DELTACORP [CASH] Stock has shown consolidation from the bottom of the chart with good volumes. It made closing candle which is also a breakout candle above 225.30 on daily chart. The stockhastic has also shown reversal on daily chart. We recommend to buy from current level for the target of 234 -245 with the stop loss below 222.

MACRO NEW  Trends on SGX Nifty currently indicate a higher opening for the market here. The futures are trading around 10,540, up around 25 points.  The rupee snapped its three-session gaining streak to end 26 paise lower at 73.83 against the US dollar on October 15 after crude prices rose amid intensifying geopolitical tensions, according to a report by Press Trust of India.Dealers said a spurt in dollar demand from importers dragged down the domestic currency.  Big bull Rakesh Jhunjhunwala raised his stake in housing finance company DHFL during July-September quarter when the stock crashed 57 percent on the back of IL&FS-led liquidity crisis fears in the NBFC space.As per the latest shareholding pattern, Rakesh Radheshyam Jhunjhunwala held 3.19 percent stake in Dewan Housing Finance Corporation by end of September quarter.The ace investor increased his stake in the company by 43 basis points from 2.76 percent in the June quarter.  Despite high oil prices, merchandise trade deficit was at a five-month low of $13.98 billion in September as compared with $17.39 billion in August. The deficit was $9 billion in September, 2017, data released by commerce ministry showed. During April-September, the deficit was $94.32 billion.

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Special Report 16-Oct-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION

South Indian Bank: Board decided to augment the capital by issue of Basel III compliant Tier II Bonds not exceeding Rs 500 crore in one or more tranches with or without green shoe option.

2,30,854

4,60,960  24,87,975

53

2,19,222

33,27,075

Zee Media Corporation Q2: Consolidated net profit spikes to Rs 17.25 crore versus Rs 3.8 crore; revenue rises to Rs 168.7 crore versus Rs 124.5 crore (YoY).

10,600

88

2,04,660

25,75,725

CE

1,700

15.8

9,370

6,66,600

RELIANCE

CE

1,200 12.75

6,978

21,23,000

ICICIBANK

CE

320

6.4

5,291

37,15,250

LT

CE

1,300

39

10,038

7,14,000

Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

BANKNIFTY

CE

25,500 158.95

2,93,095

NIFTY

CE

10,500 138.15

NIFTY

CE

10,700

NIFTY

CE

INDUSINDBK

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

Optio Strike n Price Type

BANKNIFTY

PE

NIFTY

Open Interest

NIFTY FUTURE

2,83,500

LTP

Traded Volume (Contracts)

Open Interest

25,000

108

2,39,506

9,45,000

PE

10,400

84

1,99,978

25,67,250

BANKNIFTY

PE

24,800

69

1,80,854

NIFTY

PE

10,300

59.4

1,44,545

INDUSINDBK

PE

1,600

25.5

4,478

RELIANCE

PE

1,100

17.4

3,905

RELIANCE

PE

1,120

24.4

3,436

After making a reversal candle at 10150 nifty future 4,74,840 showed a great bounce back and made two bull candle 22,70,700 as per the movement the crucial resistance level which can act as a hurdle is 10540, above which we can find 2,98,800 one sided movement so we advice to buy nifty future 11,61,000 around 10545-50 for the targets of 10600-650 with 5,20,000 stoploss below 10500.

RELIANCE

PE

1,220

12.1

5,018

11,57,000

FII DERIVATIVES STATISTICS BUY

SELL

No. of Contracts

Amount in Crores

INDEX FUTURES

17799

1647.55

18928

1765.72

INDEX OPTIONS

542430

54129.47

546091

STOCK FUTURES

168720

11732.40

STOCK OPTIONS

138607

10489.78

OPEN INTEREST AT THE END OF THE DAY

No. of Amount in No. of Contracts Crores Contracts

Amount in Crores

NET AMOUNT

352984

31184.64

-118.164

54522.88

803213

72450.22

-393.4078

160850

11129.00

1161077

87970.20

603.4023

140064

10600.21

143641

11069.82

-110.4389 -18.6084

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

10598.00

10555.00

10482.00

10439.00

10366.00

BANKNIFTY

25652.00

25520.00

25333.00

25201.00

25014.00

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Special Report 16-Oct-2018

RECOMMENDATIONS GOLD TRADING STRATEGY: BUY GOLD DEC FUT ABOVE 32210 TGT 32250 32300 SL BELOW 32160 SELL GOLD DEC FUT BELOW 32030 TGT 32000 31150 SL ABOVE 32080

SILVER TRADING STRATEGY: BUY SILVER DEC FUT ABOVE 39380 TGT 39430 39480 SL BELOW 39330 SELL SILVER DEC FUT BELOW 39120 TGT 38070 38020 SL ABOVE 39170

COMMODITY ROUNDUP Large precious metals speculators continued to add to their bearish net positions in the Gold futures markets again last week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday. The non-commercial futures contracts of Gold futures, traded by large speculators and hedge funds, totaled a net position of -38,175 contracts in the data reported through Tuesday October 9th. This was a weekly fall of -16,353 contracts. The bearish speculative position has now increased for four straight weeks and for the fifth time out of the past six weeks. The current standing is now at the most bearish level in nearly 17 years. The commercial traders position, hedgers or traders engaged in buying and selling for business purposes, totaled a net position of 25,866 contracts on the week. This was a weekly increase of 16,991 contracts. Large metals speculators trimmed their bullish net positions in the Copper Futures markets last week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday. The non-commercial futures contracts of Copper futures, traded by large speculators and hedge funds, totaled a net position of 8,247 contracts in the data reported through Tuesday October 9th. This was a weekly decrease of -3,728 contracts. This week’s drop in the speculative bullish position was the first pull back in four weeks after the net positioning crossed back into bullish territory on September 25th. The commercial traders position, hedgers or traders engaged in buying and selling for business purposes, totaled a net position of -8,924 contracts on the week. This was a weekly gain of 4,348 contracts. India's fuel product consumption or sales rose 1.1% to 16.54 mt in September 2018 over a year ago. LPG sales increased 6.4% to 2.06 mt, other products 20.5% to 0.79 mt, bitumen 44.1% to 0.40 mt and petrol 4.2% to 2.23 mt. The consumption of ATF also improved 8.0% to 0.66 mt, lubes/ greases 8.0% to 0.35 mt, fuel oil 0.2% to 0.56 mt and light diesel oil (LDO) 0.2% to 0.04 mt. However, the consumption of pet coke declined 10.2% to 2.00 mt, kerosene 15.1% to 0.28 mt, diesel 0.8% to 6.03 mt and naphtha 3.2% to 1.13 mt in September 2018. Consumption or sales of fuel products increased 3.6% to 104.38 mt in April-September 2018 over April-September 2017. Sales of diesel increased 3.2% to 40.84 mt, other products 27.9% to 4.84 mt, petrol 7.5% to 14.03 mt, naphtha 13.7% to 6.82 mt and LPG 7.1% to 12.04 mt.

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Special Report 16-Oct-2018

RECOMMENDATIONS GUARGUM5 TRADING STRATEGY: BUY GUARGUM OCT ABOVE 9580 TARGET 9630 9680 SL 9530 SELL GUARGUM OCT BELOW 9220 TARGET 9170 9120 SL 9270

NCDEX INDICES Index

Value

% Change

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

1632 4667 4300 4952 1765 4623

0.09 0.93 -0.02 1.39 1.64 0.48

20040

3.43

4149 3353 6840

-0.41 -0.53 -1.75

Jeera Mustardseed Soy Bean Turmeric

Mentha oil prices were trading higher in futures trading in Monday’s morning trade as speculators engaged in building up positions, driven by surging demand in the spot market. MCX Mentha Oil was up 1.29 per cent at Rs 1709.90 per 1 kg at around 10.30 am (IST), the overall sentiments are still bullish as consistent depreciation in Indian rupee has raised export. In order to get maximum value for the exportdriven commodity, traders and stockists are holding on to their stocks and waiting to see where the rupee is headed. DHANIYA TRADING STRATEGY: BUY CORIANDER OCT ABOVE 5450 TARGET 5500 5550 SL 5400 SELL CORIANDER OCT BELOW 5330 TARGET 5280 5230 SL 5380

The Agriwatch Agri Commodities Index gained 0.63 per cent to 108.87 during the week ended October 13, 2018 from 108.19 the previous week as onion and cotton prices recovered after a sharp fall. Pulses and cereals rose while oilseeds and spices declined. The base for Index and subIndices is 2014 (= 100). Six of the nine commodity group sub -Indices and 16 of the 29 individual commodity sub-Indices ended the week higher. The commodity group sub-Index values and their weekly changes are: Cereals: 116.12 (+0.35 per cent), Pulses: 108.70 (+1.42 per cent), Potato & Onion: 86.24 (+7.85 per cent), Edible Oils: 110.02 (+0.08 per cent), Oilseeds: 98.22 (1.17 per cent), Spices: 113.37 (-1.43 per cent), Sweeteners: 105.38 (+0.37 per cent), Fibres: 109.03 (+3.59 per cent) and Other Non-Food Articles: 89.80 (-0.36 per cent). Rebound in export demand and deficient rainfall may drive jeera (cumin) prices up in the coming weeks. The October futures contract prices in NCDEX hovered around Rs 195 per kg on Thursday. The overseas demand for Indian jeera is expected to increase as the supply from other sources are limited and of poor quality. “The stock from Turkey and Syria has been damaged by rain. Though Indian jeera is priced $300 higher at $2500 per tonne in the global market, it is drawing more buyers because of superior quality.

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Special Report 16-Oct-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

73.9708 Yen

66.0800

Euro

85.4895 GBP

97.0832

USD/INR TRADING STRATEGY: BUY USDINR ABOVE 70.35 TGT 70.65/70.95 SL BELOW 70.10 SELL USDINR BELOW 69.20 TGT 68.90/68.60 SL ABOVE 69.50

GBP/INR TRADING STRATEGY: BUY GBPINR ABOVE 97.70 TGT 98.20/98.70 SL BELOW 97.20 SELL GBPINR BELOW 97.00 TGT 96.50/96.00 SL ABOVE 97.50

The pound was pressured lower on Monday as talks aimed at reaching a Brexit deal ended in a stalemate, while the safe haven yen strengthened as equity markets started the week lower amid ongoing concerns over rising U.S. yields and trade tensions. GBP/USD was down 0.28% to 1.3119 by 04:49 AM ET (08:49 AM GMT), while EUR/GBP was up 0.2% to 0.8810. The pound came under pressure after talks between Britain’s Brexit Secretary Dominic Raab and the European Union’s chief Brexit negotiator Michel Barnier ended in a stand-off ahead of Wednesday’s EU leaders summit. The lack of progress towards a Brexit deal added to a cocktail of geopolitical risks weighing on market sentiment. Markets were watching developments in the euro zone, where Italy’s government was expected to approve its new budget, despite criticism from Brussels that it will breach EU fiscal rules. The yen hit a one-month high and the Swiss franc gained on Monday as rising geopolitical tension and investor anxiety about the global economy left investors skittish at the start of the week. Equity markets fell on worries the ongoing Sino-U.S. trade dispute is hitting China's economy, while Saudi Arabian shares tumbled on rising tensions between Riyadh and the West after the monarchy warned against trying to punish it over disappearance of a journalist Chancellor Angela Merkel's Bavarian allies suffered their worst election result since 1950 on Sunday, in a setback that raised tensions within the country's crisis-prone national government don't think it's a huge political risk, but it does tell you that political risks in Europe are not going away. The yen rose as much as half a percent to 111.69 JPY= , its strongest since Sept. 18. The franc also rose versus both the euro EURCHF= and dollar CHF= , but the gains were limited. The Australian dollar AUD= , often seen as a barometer of global risk sentiment, shrugged off the mood and rose 0.2 percent to $0.7128 against the dollar, suggesting investors were far from panicked. The Aussie had hit a two-year low of 0.7039 on Oct. 5. The euro nudged higher to $1.1571 EUR= against the dollar, while the dollar traded flat against a basket of currencies .DXY .

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Special Report 16-Oct-2018

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

REPORT

PERIOD

ACTUAL

FORECAST

PREVIOUS

MONDAY, OCT. 15 8:30 am

Retail sales

Sept.

0.1%

8:30 am 8:30 am

Empire State index

Oct.

19.0

10 am

Business inventories

Aug.

0.6%

TUESDAY, OCT. 16 9:15 am

Industrial production

Sept.

0.4%

9:15 am

Capacity utilization

Sept.

78.1%

10 am 10 am

Home builders' index

Oct.

67

WEDNESDA Y, OCT. 17

WEDNESDAY, OCT. 17

WEDNESD AY, OCT. 17

8:30 am

Housing starts

Sept.

1.28 mln

8:30 am

Building permits

Sept.

1.25 mln

WEDNESDAY, OCT. 17

WEDNESDAY, OCT. 17

WEDNESDA Y, OCT. 17

2 pm THURSDAY, OCT. 18

THURSDAY, OCT. 18

THURSDA THURSDAY, OCT. 18 Disclaimer Y, OCT. 18

THURSDAY, OCT. 18

THURSDAY, OCT. 18

The information and views in this report, our website & all the service we provide are believed to be reliable, but we do not accept any responsibility (or liability) Usersjobless have theclaims right to choose the product/s that suits them the most. Sincere efforts have been the right 8:30for amerrors of fact or opinion. Weekly 10/13 N/Amade to presentN/A investment perspective. The information contained herein is based on analysis and up on sources that we consider reliable. This material is for personal information and based upon it & takes no responsibility. The information given herein should be treated as only factor, while making investment decision. The report tailor-made investment advice. Epic research 8:30does amnot provide individually Philly Fed manufacturing Oct.recommends that investors independently evaluate particular investments 22.9 and strategies, and encourages investors to seek the advice of a financial adviser. Epic research shall not be responsible for any transaction conducted based on the information given in this report, which is in violation of rules and regulations of NSE and BSE. The share price projections shown are not necessarily indicative of future price performance. The information herein, together withSept. all estimates and forecasts, can change without notice. Analyst or any person 10 am Leading economic indicators 0.4% related to epic research might be holding positions in the stocks recommended. It is understood that anyone who is browsing through the site has done so at his free will and does not read any views expressed as a recommendation for which either the site or its owners or anyone can be held responsible for . Any FRIDAY, FRIDAY, FRIDAY, surfing and reading of the information is the acceptance of this disclaimer. All Rights Reserved. Investment in equity & bullion market has its own risks. We, FRIDAY, OCT. 19 FRIDAY, OCT. 19 FRIDAY, OCT. 19 however, do not vouch for the accuracy or the completeness thereof. We areOCT. not responsible for any loss incurred whatsoever for any financial profits OCT. 19 19 OCT.or19loss which may arise from the recommendations above epic research does not purport to be an invitation or an offer to buy or sell any financial instrument. Our Clients (Paid or Unpaid), any third party or anyone else have no rights to forward or share our calls or SMS or Report or Any Information Provided by us to/with 10 which am is received directlyExisting home sales 5.34 mln anyone or indirectly by them. If found so then SeriousSept. Legal Actions can be taken.

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