Epic Research: 18 April 2019 Special Report on the Stock Market

Page 1

Special Report 18 –APR -2019

Global markets at a glance Wall Street lost ground on Monday, dragged down by financials as underwhelming bank earnings curbed investor enthusiasm. But while all three major US stock indexes edged lower, the S&P 500 remained within a percent of its record high.The Dow Jones Industrial Average fell 27.53 points, or 0.1 percent, to 26,384.77, the S&P 500 lost 1.83 points, or 0.06 percent, to 2,905.58 and the Nasdaq Composite dropped 8.15 points, or 0.1 percent, to 7,976.01. Asian stocks hovered below a nine-month peak on Tuesday after disappointing bank earnings dented Wall Street, though recent signs the global economy is likely to avoid a sharper downturn helped limit the losses.MSCI’s broadest index of Asia-Pacific shares outside Japan stood little changed.Expectations that Chinese and U.S. trade negotiators would strike a deal soon also lifted confidence. Japan’s Nikkei nudged up 0.25 percent.

World Indices Index

Value

% Change

DJI

26449

-0.01

S&P500

2900

-0.23

NASDAQ

7996

-0.05

FTSE100

7471

+0.02

22117 29942

-0.72 -0.60

NIKKEI HANG SENG

Top Gainers Company

CMP

Change

% Chg

1,815.15

66.25

3.79

407

14.25

3.63

1,120.05

29.9

2.74

ONGC

160.45

4

2.56

Adani Ports

395.65

8.6

2.22

CMP

Change

% Chg

280.9 559.35 351.6 196.85 230.5

-6.8 -6.95 -2.45 -1.2 -1.25

-2.36 -1.23 -0.69 -0.61 -0.54

IndusInd Bank ICICI Bank Titan Company

Top Losers Company

PREVIOUS DAY ROUNDOFF Indian equity markets traded with a positive bias throughout the day as across the board buying was seen in major sectoral indices.Nifty Bank index outperformed the benchmark index by ~0.5%, led by strong gains in ICICI Bank & Indusind Bank, closing ~4% higher with an addition of fresh open interest consisting of mainly long positions. Nifty Midcap index underperformed the benchmark index, closing 0.1% higher. Market breadth ended in the favour of the advances with advance/decline ratio closing at 1:1x. Nifty futures closed at record highs and added fresh open interest, consisting of mainly long positions.On the options front (April 11, 2019 expiry), across the board short covering was witnessed in at the money and in the money Nifty call option strikes with Nifty 11700CE, shedding 11.12 lakh shares in open interest indicating 11700 level as an immediate floor level for the weekly contract. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[+27.40pts], Consumption[+16.8pts],PSE[+8.20pts],CPSE [+12.75pts],Energy[-55.30pts],FMCG[+13.70pts],Auto [+134.15pts],Pharma[-8.70pts],IT[+202.6pts],Metal [+69.75pts],Realty[+4.55pts], Fin Serv sector[+39.70 pts].

Wipro Cipla GAIL Power Grid Corp Tata Motors

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

892.5

14.25

1.67

ASTRAZEN

2,199.00

143.2

6.97

BAJAJFINSV

7,594.95

-0.75

-0.01

61.55

2.9

4.94

5.05

0.2

4.12

Prev. Close

Change

%Chg

ASHIMASYN

11.3

0.55

4.76

ATNINTER

0.05

0

0

BALLARPUR BLUECOAST CKFSL

2.75 34.2 63.2

-0.1 -1.8 -3.3

-3.51 -5 -4.96

ALKYLAMINE

BALAXI BILENERGY

Stocks at 52 Week’s LOW Symbol

Indian Indices Company

CMP

Change

% Chg

NIFTY

11787

+96.8

+0.83

SENSEX

39275

+369.8

+0.95

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Special Report 18 –APR -2019

RECOMMENDATIONS [FUTURE]

STOCK RECOMMENDATION [CASH]

1. DCB BANK [FUTURE ]

ONGC

DCB BANK — Stock outperformed well with volume breakout and closed near to days high. It formed bullish engulfing on the daily chart. It also gave the breakout of a trendline on a closing basis on the daily chart. We recommend buying above 207 for the target of 209 with the stop loss of 205.

ONGC — Stock is consolidating for more than a week but it has shown some strength on the daily chart in RSI and closed in green with good volumes. The RSI and CCI have shown the reversal on the daily chart. We recommend buying above 161 for the target of 163 with the stop loss of 159

2. DABUR[FUTURE]

MACRO NEWS

DABUR — On weekly chart stock is taken a support of  trendline & forming a green candle & in last week seen that fresh buying in FMCG stock . Our view on the technical basis is to buy stock future in range 400-405 Target 420-440 Sl below 380 . Stock is moving above all its important moving averages like 100 & 200 DEMA.

Oil prices halted their rally on Monday, with both benchmarks down nearly 1 percent, after Russia’s finance minister said Russia and OPEC may decide to boost production to fight for market share with the United States, where output remains at record highs.Brent crude futures ended the session at USD 71.18 a barrel, down 37 cents, or 0.5 percent, having earlier slid below USD 71. Brent hit its highest sinceNovember 12 on Friday at USD 71.87. US West Texas Intermediate crude futures fell 49 cents, or 0.8 percent, to settle at USD 63.40 per barrel.

The Reserve Bank will cut its key policy rates by another 25 basis points, after governor Shaktikanta Das' weekend speech focusing on ways to revive growth, BofAML said."We now expect the monetary policy committee to cut rates by 0.25 percent to 5.75 percent on June 7," Bank of America Merrill Lynch said in a note. If done this will be the third straight reduction, taking the quantum of reduction in six months to a hefty 75 bps.

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Special Report 18 –APR -2019

STOCKS IN NEWS

MOST ACTIVE CALL OPTION Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

BANKNIFTY

CE

30,500

144

9,15,499

BANKNIFTY

CE

30,600 90.05

7,70,503

BANKNIFTY

CE

30,700 48.05

6,08,895

RELIANCE

CE

1,360 25.45

11,150

TCS

CE

2,150

20.8

10,645

TCS

CE

2,200

7.9

10,437

RELIANCE

CE

1,400

11.9

9,229

RELIANCE

CE

1,380

17.3

8,487

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

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

Open Interest

3,63,460 Granules Pharmaceuticals Inc. received USFDA approval for Acetaminophen 650 mg, extended release tablets 3,32,260 4,44,400 NIFTY FUTURE NIFTY -Nifty gives a bullish continuation break out on the Daily chart climbing to a new all-time 24,15,000 high of 11810 and closing on a strong note as well. The 3,85,250 rally was largely supported by positive sentiments on the 9,47,500 back of FII inflows, muted crude prices and appreciating rupee. Derivatives data pointed to a short covering at 35,76,500 strikes of 11800 - 11900 on calls side while now we have 13,65,500 seen aggressive writing at 11700 - 11600 PE as well. This point to 11700 as strong support for this rally. We also 2,83,500 have seen some fresh longs created at 11900 - 12000 Open strikes. Interest

BANKNIFTY

PE

30,300 22.25

6,06,259

6,32,280

BANKNIFTY

PE

30,200 14.85

6,02,455

4,47,100

BANKNIFTY

PE

30,000

9.7

5,91,863

6,74,940

TCS

PE

2,100

11.7

8,252

5,24,250

RELIANCE

PE

1,320

14.4

5,963

11,93,000

RELIANCE

PE

1,340 22.45

5,143

9,48,500

TATAMOTORS PE TCS

PE

Ashoka Buildcon received letter of Award from Rail Vikas Nigam of Rs 443.23 crore

220

1.8

4,278

22,34,000

2,120

17.3

4,065

1,36,500

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

48370

3859.95

41877

3119.00

255368

20463.09

740.9548

INDEX OPTIONS

2535654

170904.27

2516615

169367.48

932686

74524.15

1536.791

STOCK FUTURES

171911

11104.54

179588

11474.01

1397356

91353.14

-369.477

STOCK OPTIONS

121375

7915.99

117731

7691.65

137595

8852.36

224.3397 2132.6085

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

11856

11821

11776

11742

11697

BANKNIFTY

30812

30672

30450

30309

30087

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Special Report 18 –APR -2019

RECOMMENDATIONS GOLD TRADING STRATEGY: GOLD BUY ABOVE 31710 Target 31750/31850 Sl 31650 GOLD SELL BELOW 31650 Target 31600/31570 Sl 31730

SILVER TRADING STRATEGY: Silver Buy Above 37200 Target 37275/37350 Sl 37000 Silver Sell Below 37100 Target 37000/36950 Sl 37200

COMMODITY ROUNDUP Gold prices inched down on Monday to a more than oneweek low as progress in U.S.-China trade talks lifted risk sentiment, taking sheen off safe-haven bullion even as the U.S. dollar weakened.Spot gold XAU= edged 0.3 percent lower to $1,286.74 per ounce as of 0930 GMT, having touched $1,285.48, its lowest since April 5. U.S. gold futures GCcv1 fell 0.4 percent to $1,289.70 an ounce."Gold has clearly lost the upward trajectory that it was on, trying to find new supportive catalysts. We've seen continued positive murmuring on the trade negotiations in recent days. That's obviously a headwind for safe-haven gold," Capital Economics analyst Ross Strachan said.U.S. Treasury Secretary Steven Mnuchin said he hoped U.S.-China trade talks were approaching a final lap. combined with strong Chinese export and euro zone industrial production data on Friday, has lifted global equities, bund yields and the euro. MKTS/GLOB"The continued positiveness coming out of equity markets is acting as a drag on gold prices as people have liquidated their positions," Strachan said.Gold fell below $1,300 last week and that was seen as a negative bias in charts used by technical traders, analysts and traders said. India's gold smugglers have slowed their operations over worries their shipments will be caught up in seizures of cash, bullion, booze and drugs that are aimed at controlling vote-buying in the country's national elections, industry officials told Reuters.In India, political parties and their supporters often offer money or goods in exchange for votes. The Election Commission, which monitors the polls, tries to prevent this by setting up highway checkpoints to seize cash, gold, liquor and other high-value items that candidates avoid mentioning in their expenses due to a cap on the amount they can spend. month in Mumbai, in one of the biggest seizures since the current election was announced on March 10, the Directorate of Revenue Intelligence seized 107 kg of gold, worth about 300 million rupees ($4.3 million). slowdown in smuggling has boosted gold imports at banks in the world's second-biggest buyer of the precious metal, allowing them to charge a premium over global prices XAU= ."After a big seizure in Mumbai, smuggling has gone down drastically. Grey market operators don't want to take the risk during the election period," Anantha Padmanabhan, chairman of All India Gem and Jewellery Domestic Council (GJC) told Reuters.

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Special Report 18 –APR -2019

RECOMMENDATIONS GUARGUM5 TRADING STRATEGY: BUY GUARGUM MAY ABOVE 8957 TGT 8972/8997/9032 SL BELOW 8882 SELL GUARGUM MAY BELOW 8747 TGT 8732/8707/8672 SL ABOVE 8822

NCDEX INDICES Index

Value

% Change

Castor Seed Chana Coriander Cotton Seed Oilcake Guar Seed 10 MT

6008 4502 7184 2439 4449

-2.6 0.18 -0.47 -0.86 -0.83

16400

0.24

3771 3718 6562

-0.16 -1.16 -3.08

Jeera Mustardseed Soy Bean Turmeric

DHANIYA TRADING STRATEGY: BUY DHANIYA MAY ABOVE 7333 TGT 7348/7373/7408 SL BELOW 7258 SELL DHANIYA MAY BELOW 7128 TGT 7113/7088/7053 SL ABOVE 7203

The central government's National Agricultural Cooperative Marketing Federation (NAFED) is planning to buy 20 lakh tonne of mustard and 15-20 lakh tonne of pulses in the ongoing rabi (winter-sown) harvesting season at the minimum support price (MSP).NAFED will buy pulses and oilseeds on behalf of the government to provide MSP to farmers. The co-operative has made arrangements of funds to carry out this procurement operations, NAFED Managing Director Sanjeev Chaddha told reporters on the sidelines of a conference organised by industry body Assocham on compressed bio-gas.NAFED already has a stock of 35 lakh tonne of pulses.Asked about disposal of the pulses stock, the official said the Centre provides pulses to states at a subsidised price for distribution through the ration shops. On the compressed bio-gas programme, the official said NAFED and Indian Oil Corporation (IOC) are working with private entrepreneurs to set up bio-CNG manufacturing plants across the country using agri-wastes.IOC Executive Director Subodh Kumar said about 200 letters of intent (LOIs) have been issued so far to set up plants, which would require an investment of Rs 25-40 crore each. He said oil marketing companies would buy compressed bio -gas from these plants for supply through their retail outlets at around Rs 50 per kg.Kumar said these projects should be treated under the priority sector lending so that the private companies get finance at cheaper rates.Green energy company Clean Effentech (CEF) will provide technology to these proposed plants.We expect that many plants will become operational by the end of this year in Uttar Pradesh, Haryana and Punjab," CEF group Director (Business Development) Maninder Singh said, adding that the government is targeting 5,000 such plants by 2023.- PTI

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Special Report 18 –APR -2019

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

69.7075 Yen

62.3925

Euro

78.8600 GBP

91.30

USD/INR TRADING STRATEGY: USD/INR BUY USDINR ABOVE 69.6 TGT 69.7/69.8 SL BELOW 69.5 SELL USDINR BELOW 69.45 TGT 69.35/69.25 SL ABOVE 69.55

GBP/IN TRADING STRATEGY: BUY GBPINR ABOVE 91 TGT 91.2/91.5 SL BELOW 90.9 SELL GBPINR BELOW 90.8 TGT 90.7/90.6 SL ABOVE 91

The euro gained on Friday in a move dealers said may have be driven by anticipated currency demand arising from a Japanese bank's plans to purchase a German multi-billion dollar aviation finance business.The jump in the common currency occurred late in Friday's Asia session and saw the euro rise to a 2-1/2-week high.Markets are often quiet in the hours before European trade opens and thin liquidity has in recent months caused sudden jolts or "flash crashes" in major currencies including the Swiss franc. the heavilytraded euro-dollar currency pair, with a daily turnover of over $1 trillion, has recently traded in a narrow range at a time when volatility in foreign exchange markets is at a multi-year low, said Elisabeth Andreae, an FX strategist at Commerzbank (DE:CBKG)."It is remarkable that particularly in this market environment we see jumps even in EUR-USD typically during Asian trading times. This morning we saw a move from $1.1260 to $1.1290 in one fell swoop," she said. The euro was slightly higher against the dollar and pound in early trade in Europe on Friday, supported by signs of an economic rebound in China and reports of buying related to a big cross-border acquisition, while sterling continues to slip amid the prospect of more months of Brexit-related uncertainty.Reuters reported speculative buying of the euro ahead of the completion of Mitsubishi UFJ’s acquisition of the aviation business of Germany’s DZ Bank, a deal that will cost over 5.3 billion euros ($5.9 billion).The dollar index, which measures the greenback against a basket of six major currencies, was down 0.1% at 96.675, despite rising against the yen on the back of better -than-expected jobless claims and producer price inflation data on Thursday.Risk sentiment received another modest fillip from a mixed set of Chinese trade data for March, which showed a sharp rebound in exports, which rose over 14% on the year, well above forecasts for a 7.3% increase.Closer to home, sentiment toward the euro has been subdued in the wake of another dovish press conference from the European Central Bank, but it has still risen against sterling, which has suffered in the wake of the EU’s decision to extend the deadline for Brexit to the end of October.

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Special Report 18 –APR -2019

Date

Commodity/ Currency Pairs

16/04/19

NCDEX DHANIYA

MAY

BUY

7189

16/04/19

NCDEX DHANIYA

MAY

Sell

16/04/19

NCDEX GUARGUM5

MAY

16/04/19

NCDEX GUARGUM5

16/04/19

Contract Strategy

Entry Level

Stop Loss

Remark

7204/7264/7334

7159

TARGET HIT

6965

6950/6890/6820

6995

NOT EXECUTED

BUY

9050

9080/9140/9190

9000

NOT EXECUTED

MAY

SELL

8909

8879/8819/8769

8905

TARGET HIT

MCX GOLD

JUN

BUY

32155

32200/32250

32050

SL HIT

16/04/19

MCX GOLD

JUN

SELL

32000

31950/31900

32100

NOT EXECUTED

16/04/19

MCX SILVER

JUL

BUY

38500

38550/38600

38400

TARGET

16/04/19

MCX SILVER

JUL

SELL

38450

38400/38300

38550

TARGET

Entry Level

Target

Stop Loss

Remark

Target

Date

Scrip

CASH/ FUTURE/ Strategy OPTION

16/04/19

NIFTY

FUTURE

BUY

11700-11750

11800/11900

10900

TARGET

16/04/19

HAVELLS

FUTURE

BUY

767

770/775

764

SL HIT

16/04/19

PVR

FUTURE

BUY

1698

1706/1720

1690

TARGET

16/04/19

INFY

CASH

BUY

760-762

770/780

750

OPEN

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Special Report 18 –APR -2019

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

PE RI ACTUAL OD

REPORT

FORECAST PREVIOUS

THE GOVERNMENT SHUTDOWN WILL DELAY THE RELEASE OF SOME DATA THIS WEEK. MONDAY, APRIL 15 8:30 am

Empire state index

Ap ril

3.7

TUESDAY, APRIL 16 9:15 am

Industrial production

Ma rch

0.0%

9:15 am

Capacity utilization

Ma rch

79.1%

10 am

Home builders' index

Ap ril

62

WEDNESDAY, APRIL 17 8:30 am

Trade deficit* (new date)

Fe b.

-$51.1bln

10 am

Wholesale inventories* (new date)

Fe b.

1.2%

2 pm

Beige book

THURSDAY, APRIL 18 8:30 am 9:45 am

4/ 13

Weekly jobless claims Markit manufacturing index flash

8:30 am MarkitRetail sales* (new date) 9:45 am services index flash

Nov. Nov.

Ma-rch--

--

-55.7 54.8

-0.2%

8:30 am

Retail sales ex-autos* (new date)

Ma rch

-0.4%

8:30 am

Philly Fed index

Ap ril

13.7

10 am

Business inventories* (new date)

Fe b.

0.8%

10 am

Leading indicators

Ma rch

0.2%

FRIDAY, APRIL 19 8:30 am

Housing starts* (new date)

Ma rch

1.162mln

8;30 am

Building permits* (new date)

Ma rch

1.291mln

*DELAYED BY GOVERNMENT SHUTDOWN _____________________________________________________________________________________________________________________


Special Report 18 –APR -2019

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Sachin Yadav

Digitally signed by Sachin Yadav DN: cn=Sachin Yadav c=IN o=Personal Reason: I am the author of this document Location: Date: 2019-04-18 09:57+05:30

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