Special Report 19-Sep-2018
Global markets at a glance Wall Street rebounded on Tuesday in a broad-based rally as investors brushed aside intensifying trade rhetoric between the United States and China. All three major US indexes closed higher following Monday's sell-off. Late Monday, US President Donald Trump announced that 10 percent tariffs on USD 200 billion in imports from China would go into effect next week, escalating the tit-for-tat trade spat between the world's two largest economies. China responded on Tuesday by unveiling 10 percent tariffs on about $60 billion of US goods effective Sept. 24. Asian stocks rose and US Treasury yields hovered near fourmonth highs on Wednesday, as investors looked past the latest escalation in the US-China trade conflict, seen by some market participants as less severe than expected. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.15 percent. Australian stocks added 0.35 percent, South Korea's KOSPI climbed 0.1 percent and Japan's Nikkei rose 1.45 percent. Equity markets in Asia took their cues from Wall Street, which posted a broad-based rally on Tuesday amid emerging views that the US-China trade dispute's impact on world growth might not be as heavy as previously feared. Previous day Roundup The Nifty50 corrected sharply for second consecutive session and broke the psychological 11,300-mark on Tuesday, forming bearish candle on the daily candlestick charts. Rising crude oil prices, weakening rupee and escalated trade war tensions between world's largest economies US & China caused selling pressure in the market. All sectoral indices closed in the red with Nifty PSU Bank falling the most (down 5.44 percent) followed by Bank, Auto, Metal and Realty which lost between 1-3 percent. The broader markets also caught in bear trap with the Nifty Midcap index losing 1.4 percent.The Nifty50 after opening flat tried to rebound and hit an intraday high of 11,411.45, but could not sustain for long and corrected further as the day progressed.The index fell up to 11,268.95 intraday in late trade but managed to hold its crucial support of 11,250 levels. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[-48.20], Co nsum ptio n[ -14 .90 pts],Bank[ -378 .8 5 pts],Auto [ 165.15pts],FinService[-157.65pts],Fmcg[333.50pts],Media[53.45pts],Pharma[-38.75pts],IT[-88.75pts],Metal[57.35pts],Realty[-8.20 pts], Pvt Bank[-173.20pts].
World Indices Index
Value
% Change
26,246.96
0.71
S&P500
2,911.25
-0.02
NASDAQ
7,956.11
0.76
FTSE100
7,300.23
-0.03
23,797.04 27,377.08
1.58 1.07
DJI
NIKKEI HANG SENG
Top Gainers Company
CMP
Change
% Chg
1,664.95
59.50
3.71
Yes Bank
323.55
4.95
1.55
ONGC
173.90
2.20
1.28
Wipro
332.55
2.65
0.80
2,584.15
15.65
0.6
CMP
Change
% Chg
273.80 249.40 251.50 2,773.80 46.25
-11.50 -8.95 -8.75 -86.85 -1.45
-4.03 -3.46 -3.36 -3.04 -3.0
HUL
Dr Reddys Labs
Top Losers Company
SBI HPCL Tata Motors Bajaj Auto Vodafone Idea
Stocks at 52 Week’s HIGH AIONJSW CENTEXT
23.2 8.55
1.15 -0.2
4.96 -2.34
118.15
5.9
4.99
17.65
0.85
4.82
1857.35
-37.35
-2.01
56.2
5.5
9.83
Prev. Close
Change
%Chg
3.45 4.2 3.2 91 73.2
0.65 0.15 -0.1 -1.9 -1
18.84 3.57 -3.13 -2.09 -1.37
DELTAMAGNT ELECTROSL EXCELINDUS GALLANTT
Stocks at 52 Week’s LOW Symbol
3IINFOTECH ABGSHIP ADHUNIK AGCNET AGRITECH
Indian Indices Company
CMP
Change
% Chg
NIFTY
11278.90
-98.90
-0.87
SENSEX
37290.67
-294.84
-0.78
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Special Report 19-Sep-2018
RECOMMENDATIONS [FUTURE] 1. ORIENTBANK [FUTURE ] This particular counter is maintaining its downtrend since two weeks in the previous trading session it closed below its support level of 72.75 which confirms its further downtrend below 173.the specified level so sell on intraday rise would be good strategy to follow so we recommend to sell orientbank around 72.80-70 TGT 70-68 SL ABOVE 74.
2. ONGC [FUTURE] Respecting the support level of 170 the particular counter bounce backed and surged above 1.20%. In the intraday the price closed above its previous resistance level of 172.50 from here further uptrend is possible so we advice to follow buy on strength strategy around the levels of 173-174 for the targets of 177-180 with stoploss below 171.
STOCK RECOMMENDATION [CASH] KNRCON [CASH] This particular counter is showing a clear downtrend ,198.35 is a nearest support level below which we can withness freefall as per the market weakness sell on low should be considered so we suggest to sell crompton around 198.30-198 for the targets of 196-194 with stoploss below 200.
MACRO NEWS Trends on SGX Nifty indicate a flat to negative opening for the broader index in India, a fall of 8 points or 0.07 percent. Nifty futures were trading around 11,307level on the Singaporean Exchange. China will levy tariffs on about $60 billion worth of US goods in retaliation for new US tariffs, as previously planned, but has reduced the volume of tariffs that it will collect on the products. The tariff rates will be levied at 5 and 10 percent, instead of the previously proposed rates of 5, 10, 20 and 25 percent, the Finance Ministry said on its website. Oil prices on Wednesday pulled back from gains racked up the previous day, pushed down amid a surprise climb in US crude stockpiles. Brent crude futures had dropped 22 cents, or 0.28 percent, to $78.81 per barrel by 0042 GMT, chipping away at Tuesday’s 1.26 percent gain. US West Texas Intermediate (WTI) crude fell 0.20 percent, or 14 cents, to $69.71 a barrel. To ease the pressure on the rupee and keep the widening Current Account Deficit (CAD) on check, the finance ministry on September 18 asked ministries to shortlist commodities and goods for import curbs by increasing customs duty, said people familiar with the matter. ICICI Bank: The bank in clarification note said it has not filed any application for settlement after certain media reports indicated that the bank has filed a consent petition with SEBI.
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Special Report 19-Sep-2018
STOCKS IN NEWS
MOST ACTIVE CALL OPTION
Som distilleries' subsidiary Woodpecker Distilleries & Breweries has launched Blackfort Beer in Lager variant to tap the mild beer segment in Karnataka
Lupin: Company appoints Alok Sonig as CEO - US Generics and Global Head - Generics R&D & Biosimilars.
Symbol
Optio Strike n Price Type
LTP
Traded Volume (Contracts)
Open Interest
BANKNIFTY
CE
27,000
4.75
7,36,142
15,19,720
BANKNIFTY
CE
26,900
7
6,56,876
9,09,480
BANKNIFTY
CE
26,800
12
6,30,334
9,60,160 NIFTY FUTURE
BANKNIFTY
CE
27,100
3.1
4,60,676
6,11,840
BANKBARODA CE
130
0.95
10,194
55,36,000
RELIANCE
CE
1,260
8.25
9,178
26,60,000
RELIANCE
CE
1,240
13.5
6,848
19,01,000
SBIN
CE
290
1.65
6,038
60,09,000
MARUTIACTIVE PUT CE OPTION 9,000 111.5 5,823 MOST Symbol
Optio Strike n Price Type
BANKNIFTY
PE
26,500
BANKNIFTY
2,83,500
LTP
Traded Volume (Contracts)
Open Interest
115
6,54,055
5,77,240
PE
26,600 172.1
5,02,813
2,55,160
BANKNIFTY
PE
26,400 72.05
4,49,915
BANKNIFTY
PE
26,700
244
4,37,903
RELIANCE
PE
1,200 12.85
6,923
BANKBARODA PE RELIANCE
PE
BANKBARODA PE
110
4.05
6,381
1,220 20.85
6,332
120
10
5,228
Yesterday nifty future fell down around 98 point started 5,00,160 from 11388 moved towards support level of 11297 but 1,88,120 could not break it ,made a low of 11298 and closed at 11318. Today it can continue its sideways trend in the 18,39,000 morning session and can start its fall after the mid 24,88,000 session so we advice to sell nifty future around the levels 15,01,000 of 11370-60 for the targets of 11300-250 with stoploss above 11420. 12,68,000
FII DERIVATIVES STATISTICS BUY
SELL
No. of Contracts
Amount in Crores
INDEX FUTURES
28201
2659.49
36293
3276.10
INDEX OPTIONS
953456
95767.75
967097
STOCK FUTURES
163871
11152.67
STOCK OPTIONS
133086
10304.35
OPEN INTEREST AT THE END OF THE DAY
No. of Amount in No. of Contracts Crores Contracts
Amount in Crores
NET AMOUNT
291253
24871.02
-616.6038
97087.53
950096
83898.56
-1319.7792
172826
11881.53
1209163
89916.68
-728.8608
131760
10204.50
131498
9745.45
99.8484 -2565.3954
INDICES
R2
R1
PIVOT
S1
S2
NIFTY
11462.00
11370.00
11319.00
11227.00
11176.00
BANKNIFTY
27077.00
26759.00
26583.00
26265.00
26089.00
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Special Report 19-Sep-2018
RECOMMENDATIONS GOLD TRADING STRATEGY: BUY GOLD OCT FUT ABOVE 30950 TGT 31050 31250 SL BELOW 30850 SELL GOLD OCT FUT BELOW 30750 TGT 30650 30450 SL ABOVE 30850
SILVER TRADING STRATEGY: BUY SILVER SEP FUT 37700 TGT 37900 38200 SL BELOW 37500 SELL SILVER SEP FUT 37300 TGT 37100 36800 SL ABOVE 37500
COMMODITY ROUNDUP WTI Crude oil futures edged up after correcting heavily this week. Bargain buying supported the commodity as equities edged up in Asia and Europe today. Risky assets benefited on hopes that the potential trade talks between the US and China would be beneficial. The WTI Crude oil futures are currently trading at $68.75 per barrel, up 0.26% on the day. MCX Crude oil futures are quoting at Rs 4943 per barrel, up half a percent on the day after tanking from highs above Rs 5000 per barrel in last session. Crude oil futures tumbled from near two month highs this week as the International Energy Agency or the IEA said that the global supplies hit a record of 100 million barrels a day. It also said that daily crude-oil output in the Organization of the Petroleum Exporting Countries climbed in August by 420,000 barrels a day, to average 32.63 million a day. IEA noted that as far as oil demand is concerned, following an increase of 1.4 mb/d in 2018, growth next year will be 1.5 mb/d. Natural Gas futures stayed slippery after the US Energy Information Administration (EIA) reported yesterday that US natural gas stockpiles increased by 69 billion cubic feet for the week ending August 31. The five-year average for the week is an injection of 74 billion cubic feet, and last year’s storage increase for the week totaled 87 billion cubic feet. Natural gas inventories rose by 63 billion cubic feet in the week ending August 31. The commodity is currently trading at $2.80 per mmbtu, down 0.40% on the day. MCX Natural Gas futures are trading at Rs 201.70 per kg, down 0.64% on the day. In its Short-term Energy Outlook published earlier this week, the EIA forecast dry natural gas production to average 81 billion cubic feet per day in 2018, up by 7.4 billion cubic feet in 2017 and establishing a new record high. The agency expects natural gas production will continue to rise in 2019 to an average of 84.7 billion cubic feet per day. This also pulled the commodity lower. The demand remains moderate and the energy markets are eyeing Hurricane Florence now. US economic data remains sound. IHS Markit US Sector PMI data revealed yesterday that the August survey data signalled a pick-up in Industrials output growth, according to the latest US Sector PMI from IHS Markit.Activity increased at a sharp rate that was one of the fastest over the last three- and-a-half years. Industrials also indicated the quickest expansion of the monitored sectors. Oil market is also being supported on US sanctions on Iranian crude exports.
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Special Report 19-Sep-2018
RECOMMENDATIONS GUARGUM TRADING STRATEGY: BUY GUARGUM OCT FUT ABOVE 9380 TGT 9430 9480 SL BELOW 9330 SELL GUARGUM OCT FUT BELOW 9330 TARGET 9380-9340 SL 9470.
NCDEX INDICES Index
Value
% Change
Barley Castor Seed Chana Coriander Cotton Seed Oilcake Guar Seed 10 MT
1621 4640 3866 4815 1634 4345.5
-0.15 1.2 0.36 1.5 -0.94 4
Jeera
19525
1.24
4150 3299 6578
0.92 2.07 -0.21
Mustardseed Soy Bean Turmeric
Coriander prices are holding up this week though overall sentiments appear to be mixed. However, export demand is seen supporting the trend in prices after the massive weakness in Indian Rupee. Steady arrivals are likely to weigh on the sentiments in coming weeks though. The commodity is holding above Rs 5000 per quintal in Kota. Rupee has recently dropped near an all time low against the US dollar and further losses could support exports.
DHANIYA TRADING STRATEGY: BUY DHANIYA SEP FUT ABOVE 5190 TGT 5250 5300 SL BELOW 5140 SELL DHANIYA SEP FUT BELOW 5110 TARGET 5070-5020 SL 5160
The overall stocks in the ready markets are quite comfortable though. Selling intensified in major agri commodities on the back of bearish USDA news along with rise in imported oil inflows in local mandies. All the major oilseeds and spices have witnessed heavy selling in last trading hour of the day. The latest import data of edible oil has fuelled some negative sentiments in oilseeds counter. As per the Solvent Extractors' Association of India, the Import of vegetable oils during August 2018 is reported at 1,512,597 tons compared to 1,361,272 tons in August 2017 consisting 1,465,594 tons of edible oils and 47,003 tons of non-edible oils i.e. Up by 11%. The NCDEX September futures declined by 0.29 percent from previous close. While NCDEX October Mustard seed futures plummeted by 0.31 percent. On the other side, as per the latest release by United States Department of Agrculture (USDA), the global soybean production is increased 2.2 million tons, with larger crops for the United States and China that are partly offset by lower projections for Canada, India, and Uruguay.Despite of bearish cues from global market , the NCDEX Wheat futures added more than 1 percent. However, as per the latest release by United States Department of Agriculture (USDA), the global wheat supplies for 2018/19 are raised 4.7 million tons on a 3.4-million-ton production increase to 733 million tones and higher beginning stocks.
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Special Report 19-Sep-2018
RBI Reference Rate Currency
Rate Currency
Rate
Rupee- $
72.7549 Yen
64.9800
Euro
84.3244 GBP
94.6211
USD/INR TRADING STRATEGY: BUY USDINR ABOVE 73.10 TGT 73.50 74.00 SL BELOW 72.80 SELL USDINR BELOW 72.50 TGT 72.00 71.50 SL ABOVE 73.00
GBP/INR TRADING STRATEGY: BUY GBPINR ABOVE 95.80 TGT 96.30 96.80 SL BELOW 95.30 SELL GBPINR BELOW 95.20 TGT 94.90 94.40 SL ABOVE 95.70
The rupee Wednesday rebounded from the historic low of 72.91 to end higher by 51 paise at 72.18 against the dollar after the finance ministry assured of steps to avert its fall to "unreasonable levels". The rupee had crashed to an all-time low of 72.91 in morning trade tracking higher crude oil prices that increased concerns of widening trade deficit at home. The forex sentiment bolstered after the government said all steps will be taken to ensure the domestic currency does not depreciate to "unreasonable levels", amid reports that Prime Minister Narendra Modi will take stock of the economic situation over the weekend. "Government and RBI will do everything to ensure that rupee does not slide to unreasonable levels. Today's correction seems to reflect that realisation," Economic Affairs Secretary Subhash Chandra Garg tweeted. Adding to the bullish mode, the country's trade deficit for August softened to USD 17.4 billion against near five-year high of USD 18.02 billion. The rupee hit a day's high of 71.86, showing a sharp jump of 105 paise from the historic low, in the afternoon trade on positive sentiment. India's benchmark 10-year sovereign yield also eased to 8.13 per cent. The Indian currency has been caught in a free fall for last few sessions and tagged among the worst performing currencies in Asia having weakened by a steep 13.81 per cent since the beginning of the year. Asia's third-largest economy is battling with deluge of headlines covering from a range of fundamental concerns to deteriorating macro environment against the grim backdrop of surging global crude prices and sustained capital outflows. Besides, multiple factors including inflation fears and a widening current account deficit along with escalation in global trade war tensions have also gripped forex sentiment. This year has also seen a sustained outflow of foreign funds from equity and debt markets. Meanwhile, crude prices turned little weak, having neared the USD 78-mark after a drop in US crude inventories and the prospect of supply disruption from Iran. Benchmark Brent crude futures were trading at USD 78.83 a barrel in early Asian trade.
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Special Report 19-Sep-2018
NEXT WEEK'S MAJOR U.S. ECONOMIC REPORTS TIME (ET)
REPORT
PERIOD
ACTUAL
FORECAST
PREVIOUS
MONDAY, SEPT. 17 8:30 am
Empire State index
Sept.
25.6
TUESDAY, SEPT. 18 10 am
Home builders' index
WEDNESDA Y, SEPT. 19
WEDNESDAY, SEPT. 19
8:30 am
Housing starts
Sept.
67
WEDNESD WEDNESDAY, SEPT. AY, SEPT. 19 19
WEDNESDAY, SEPT. 19
Aug.
WEDNESDAY , SEPT. 19 1.168mln
8:30 am 8:30 am THURSDAY, SEPT. 20
Current account deficit
Q2
THURSDAY, SEPT. 20
THURSDA Y, SEPT. 20
-$124bln THURSDAY, SEPT. 20
THURSDAY, SEPT. 20
THURSDAY, SEPT. 20
8:30 am 8:30 am
Philly Fed index
Sept.
11.9
10 am
Existing home sales
Aug.
5.34 mln
10 am
Leading economic indicators
Aug.
0.6%
FRIDAY, SEPT. 21
FRIDAY, SEPT. 21
FRIDAY, SEPT. 21
FRIDAY, SEPT. 21
FRIDAY, SEPT. 21
FRIDAY, SEPT. 21
9:45 am 9:45 am
Markit services PMI (flash)
Sept. Disclaimer
54.8
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