Special report-17-october-2018-epic-research

Page 1

Special Report 17-Oct-2018

Global markets at a glance US stocks surged more than 2 percent on Tuesday after upbeat earnings reports from major companies including UnitedHealth and Goldman Sachs and solid economic data, as equities rebounded from a recent sharp sell-off. Wall Street's three major indexes tallied their biggest oneday percentage gains since March. The small-cap Russell 2000 recorded its biggest single-session gain in nearly two years.Technology, which sold off heavily in the recent pullback, led the gains as all 11 major sectors were positive. Investors are expecting another strong quarter of corporate profits, hoping the reports can calm nerves following concerns over global trade tensions and rising bond yields. Third-quarter earnings for S&P 500 companies are expected to have climbed 21.8 percent, according to I/ B/E/S data from Refinitiv.The Dow Jones Industrial Average rose 547.87 points, or 2.17 percent, to 25,798.42, the S&P 500 gained 59.13 points, or 2.15 percent, to 2,809.92 and the Nasdaq Composite added 214.75 points, or 2.89 percent, to 7,645.49.The technology sector gained 3.0 percent while healthcare rose 2.9 percent. Those two groups have led the S&P 500's advance this year. Asian equities got some much needed relief on Wednesday after upbeat US earnings reports drove a rebound on Wall Street and helped restore a little confidence in emerging market stocks and currencies.Japan's Nikkei leaped out of the gates with an early rise of 1.3 percent, but still has a long way to go to recoup the past week's losses.MSCI's broadest index of Asia-Pacific shares outside Japan added 0.5 percent and South Korea 1.5 percent. PREVIOUS DAY ROUNDOFF The market is likely to see a strong start, following strong handover from Wall Street as well as Asian markets. In fact, SGX Nifty trends indicate a gap-up opening for D-Street. Benchmark indices closed higher for the third consecutive session on Tuesday, backed by a healthy start to September quarter earnings season, rising rupee and falling oil prices. The 30-share BSE Sensex gained nearly 300 points while the Nifty50 closed 72.30 points higher at 10,584.80 and made a small bullish candle on the daily charts.The Nifty50 appears to have made most of the gains in the first one hour of trade before signing off the session with a small bullish candle suggesting a narrow range for the day Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[36.10pts], Consumption[-40.75pts],PSE[23.40pts],CPSE [24.45pts],Energy[233.80pts],FMCG[167.55pts],Auto [ 6 8 . 3 0 pt s ] ,P ha rm a [6 2 . 6 5 p t s] , I T[ 9 0 .1 5 p t s] ,M et a l [6.60pts],Realty[2.15 pts], Fin Serv sector[83.20pts].

World Indices Index

Value

% Change

DJI

25,669.32

+0.43

S&P500

2,850.13

+0.33

NASDAQ FTSE100

7,816.33 7,558.59

+9.81

22,210.22 27,463.00

-0.27 +0.92

NIKKEI HANG SENG

+2.21

Top Gainers Company

CMP

Change

% Chg

M&M

777.70

28.70

3.83

Adani Ports

333.35

12.10

3.77

Tech Mahindra

718.70

24.15

3.48

ONGC

165.60

5.45

3.40

SBI

270.30

7.10

2.70

CMP

Change

% Chg

907.35 23,002.15 639.75 266.25

-41.55 -432.35 -8.10 -2.35

-4.38 -1.84 -1.25 -0.87

373.60

-3.20

-0.85

Top Losers Company

Indiabulls Hsg Eicher Motors Cipla Bharti Infratel JSW Steel

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

2.8

-0.05

-1.79

22.95

1

4.36

3.7

0.15

4.05

3263.95

109.05

3.34

30.5

1.5

4.92

ADHUNIK ADROITINFO ALOKTEXT ATUL BHAGYANGR

Stocks at 52 Week’s LOW Symbol

8KMILES ADHUNIK ADLABS ADROITINFO AIFL

Prev. Close

Change

%Chg

126.45 2.8 13.95 22.95 146.65

-6.3 -0.05 -0.95 1 -7.3

-4.98 -1.79 -6.81 4.36 -4.98

Indian Indices Company

CMP

Change

% Chg

NIFTY

10584.80

72.30

0.69

SENSEX

35162.48

297.38

0.85

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Special Report 17-Oct-2018

RECOMMENDATIONS [FUTURE] 1.TATAELXSI [FUTURE ] Stock outperformed well with average volumes and closed near to days high and The stockhastic has also shown the reversal from the oversold zone on the daily chart. We recommend buying from the current level for the target of 1060 with the stop loss of 1035.

2.TORNTPOWER [FUTURE] Stock outperformed well with good volumes and closed near to days high. The momentum oscillator CCI has also given closing above 100 on the daily chart and it also gave closing above the 200 EMA on the daily chart. We recommend buying from the current level for the target of 250 with the stop loss of 240.

STOCK RECOMMENDATION [CASH] EQUITAS - [CASH] Stock opened gap up and maintained itself positively. The stock was maintaining itself above the 200 EMA on the hourly chart and it closed above it. We recommend buying from the current level for the target of 138 with the stop loss of 128.

MACRO NEW  Nifty futures on the Singaporean exchange are trading strong, gaining almost 100 points. It points to a gap-up opening on the index here as well.  While both the exchanges will together suspend Gitanjali Gems, Amtek Auto, Easun Reyrolle and Panoramic Universal, the BSE will suspend Thambbi Modern Spinning Mills, Indo Pacific Projects, Haryana Financial Corporation, Noble Polymers and Samruddhi Realty as well.  On the earnings front, the big index heavyweight, Reliance Industries, will be declaring its September quarter earnings later in the day. Apart from it, names such as Mindtree, Havells India, DCB Bank, ACC, and NIIT Technologies will also be in focus due to earnings announcements.  Jet Airways will operate additional domestic and international flights to Thiruvananthapuram from Bengaluru, Mumbai, Dammam and Dubai from Sunday, August 19, in light of the floods in Kerala that have killed hundreds.  The rupee climbed 35 paise to end at nearly two-week high of 73.48 per dollar on Tuesday amid softening crude oil prices and easing concerns over the trade deficit, PTI reported. Traders said foreign fund inflows and greenback weakening against other currencies were the other factors that provided support to the home unit.

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Special Report 17-Oct-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION

Jammu & Kashmir Bank Q2: Net profit jumps 20 percent to Rs 93.7 crore versus Rs 71.64 crore YoY; gross NPA falls to 9 percent against 9.83 percent and net NPA falls to 3.9 percent versus 4.85 percent QoQ.

3,55,568

4,97,040 

85.5

3,00,412

4,68,000

Shakti Pumps Q2: Consolidated profit jumps to Rs 9.27 crore versus Rs 3.02 crore; revenue surges to Rs 138.7 crore versus Rs 67.7 crore YoY.

CE

1,700 10.25

8,542

RELIANCE

CE

1,200

17.2

7,445

4,91,100 NIFTY FUTURE 21,98,000

RELIANCE

CE

1,160 34.45

7,348

19,89,000

FEDERALBNK

CE

85

1.5

6,149

40,97,500

FEDERALBNK

CE

90

0.6

5,719

33,44,000

Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

Open Interest

BANKNIFTY

CE

26,000

20

4,17,095

11,73,480

BANKNIFTY

CE

25,800 56.65

BANKNIFTY

CE

25,700

INDUSINDBK

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

Optio Strike n Price Type

BANKNIFTY

2,83,500

LTP

Traded Volume (Contracts)

Open Interest

PE

25,300 52.55

2,69,919

5,47,440

BANKNIFTY

PE

25,200

35.6

2,67,275

4,76,640

BANKNIFTY

PE

25,000

20.1

2,62,353

RELIANCE

PE

1,100

9.2

4,271

RELIANCE

PE

1,120 13.35

3,928

INDUSINDBK

PE

1,600

21.5

3,795

TCS

PE

1,900

16.7

3,629

FEDERALBNK

PE

75

0.8

3,576

8,91,480 After making a reversal candle at 10150 nifty future 12,10,000 showed a great bounce back and made two bull candle as per the movement the crucial resistance level which 6,76,000 can act as a hurdle is 10620, above which we can find 2,15,700 one sided movement so we advice to buy nifty future 8,04,000 around 10630-50 for the targets of 10700-750 with stoploss below 10580. 28,65,500

FII DERIVATIVES STATISTICS BUY

SELL

No. of Contracts

Amount in Crores

INDEX FUTURES

30166

2710.19

28630

2523.88

INDEX OPTIONS

1033760

97284.06

1016949

STOCK FUTURES

197118

12013.78

STOCK OPTIONS

107758

7477.41

OPEN INTEREST AT THE END OF THE DAY

No. of Amount in No. of Contracts Crores Contracts

Amount in Crores

NET AMOUNT

280504

22358.88

186.3106

95806.16

1042869

86041.12

1477.9027

194079

11695.34

1292331

85587.24

318.4417

104350

7310.84

143330

9571.43

166.5658 2149.2208

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

10650.00

10617.00

10571.00

10538.00

10492.00

BANKNIFTY

25905.00

25747.00

25549.00

25391.00

25193.00

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Special Report 17-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 17-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

1790 5020 4150 5177 1783 4289

1.27 1.29 -0.02 -0.96 -0.61 1.26

20260

-0.64

4049 3270 6924

-0.39 -0.34 -0.49

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 17-Oct-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

73.9041 Yen

65.9500

Euro

85.5750 GBP

97.3327

USD/INR TRADING STRATEGY: BUY USDINR ABOVE 74.50 TGT 75.00/75.50 SL BELOW 74.00 SELL USDINR BELOW 73.00 TGT 72.50/72.00 SL ABOVE 73.50

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 17-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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