Special report-20-august-epic-research-2018

Page 1

Special Report

20-Aug-2018

Global markets at a glance The Dow Jones Industrial Average rose 110.59 points, or 0.43 percent, to 25,669.32, the S&P 500 gained 9.44 points, or 0.33 percent, to 2,850.13 and the Nasdaq Composite added 9.81 points, or 0.13 percent, to 7,816.33. US stocks closed higher on Friday, with the S&P 500 and the Dow Jones Industrial Average extending gains and the Nasdaq turning positive on reports of progress in tariff disputes between the United States and its trading partners China and Mexico. Chinese and US negotiators are planning talks to resolve their trade row ahead of meetings in November, the Wall Street Journal reported on Friday. Additionally, Mexico’s economy minister, Ildefonso Guajardo, said he hopes to wrap up outstanding bilateral issues on the North American Free Trade Agreement (NAFTA) by the middle of next week. “The threat of a trade war threatens economic activity,” said Stephen Massocca, senior vice president at Wedbush Securities in San Francisco. “The fact that the administration might resolve (trade disputes) sooner rather than later, without a sustained time frame of slower economic actively due to tariffs, that bodes well for the market.”Asian share markets crept cautiously higher on Monday as investors awaited developments on proposed Sino-US trade talks and the Chinese yuan rallied away from dangerous lows. MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.4 percent, while Shanghai blue chips firmed 0.2 percent. The Nifty50 after opening sharply higher above psychological 11,400-mark extended rally to move near its intraday record high and finally ended at record closing high on Friday, driven by broadbased buying. The index formed bullish candle on the daily candlestick charts as well as weekly scale. It closed half a percent higher for the truncated week.The broader markets also participated in the rally today with the Nifty Midcap index rising over a percent while all sectoral indices ended in the green with Nifty Bank, FMCG, Metal and Pharma rising 1-2 percent. The Nifty50 started off session above 11,400 levels at 11,437.15 and rallied further during the day to touch an intraday high of 11,486.45 but failed to reclaim its intraday record high of 11,495.20 seen on August 9. 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[+1.43pts],Energy [168.55pts],FMCG[245.50pts],Auto[+104.36pts],Pharma [+185.81pts],IT[+76.30pts],Metal[+216.43pts],Realty [+14.98 pts], Fin Serv sector[+52.06pts].

World Indices Index

Value

% Change

DJI

25,669.32

+0.43

S&P500

2,850.13

+0.33

NASDAQ

7,816.33

+9.81

FTSE100

7,558.59

+2.21

22,210.22 27,463.00

-0.27 +0.92

NIKKEI HANG SENG

Top Gainers Company

CMP

Change

% Chg

1,045.85

46.4

4.64

393.2

14.75

3.9

881.25

31.5

3.71

SBI

302.1

9.4

3.21

Vedanta

215.2

6.4

3.07

CMP

Change

% Chg

387.70 3242.3 28476.15 163.05

-6.1 -40.35 -327.7 -1.4

-1.55 -1.23 -1.14 -0.85

9152.1

-48.45

-0.53

Grasim Yes Bank Lupin

Top Losers Company GAIL Hero Motocorp Eicher Motors ONGC Maruti Suzuki

Stocks at 52 Week’s HIGH Symbol 3MINDIA

Prev. Close

Change

%Chg

25336.8

-136.8

-0.54

39.2

1.55

3.95

619.35

12.65

2.04

1708.25

181.75

10.64

26.05

1.3

4.99

ALMONDZ APCOTEXIND ASTRAZEN BALAXI

Stocks at 52 Week’s LOW Symbol

Prev. Close

Change

%Chg

16.65

0

0

AMTEKAUTO

6.9

0.05

0.72

ANTGRAPHIC

0.5

0

0

BLUEBLENDS

6.65

0.15

2.26

105.3

0.2

0.19

ABMINTLTD

BYKE

Indian Indices Company

CMP

Change

% Chg

NIFTY

11470.75

+85.70

+0.75

SENSEX

37947.88

+284.32

+0.75

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Special Report

20-Aug-2018

RECOMMENDATIONS [FUTURE] 1.TORNTPHARM [FUTURE ] Stock was consolidating from past four trading sessions and it outperformed well with good volumes and closed near to days high. It is also trading near to 52 week high. It should continue trend for next week. We recommend to buy from current level for the target of 1780 with the stop loss of 1744.

2.GRANULES [FUTURE] After a short consolidation stock outperformed well with above the average volumes on daily chart. The RSI also moving up side on daily chart and it gave closing above the 200 SMA & EMA on daily chart. We recommend to buy from current level for the target of 115 with the stop loss of 108.

STOCK RECOMMENDATION [CASH] CADILAH - [CASH] Stock has shown good strength from the bottom of the chart with good volumes. It took support of trend line on daily chart. The RSI has also shown reversal on daily chart. We recommend to buy from current level for the target of 370 with the stop loss of 351.

MACRO NEW  Bank Nifty futures open interest data depicts the cycle of Long- Long unwinding. Considering truncated week, faster theta decay is certain. Thus to take combat the fast perishing time value, Ratio Call Spread is recommended, says Shubham Agarwal of Quantsapp Private Limited.  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.  Infosys today announced that Chief Financial Officer M D Ranganath has stepped down to pursue professional opportunities in new areas”.His resignation was accepted by the Infosys Board on Saturday.Ranganath will remain CFO until November 16.  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. All operations from Cochin International Airport have been suspended till Sunday, August 26, due to floods in the city.

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Special Report

20-Aug-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION Symbol

Op- Strike tion Price Type

LTP

Traded Volume (Contracts)

Open Interest

NIFTY

CE

11,600

38

1,18,080

35,93,925

BANKNIFTY

CE

28,000 251.05

97,623

3,83,600

NIFTY

CE

11,400 142.5

91,525

28,36,500

BANKNIFTY

CE

28,600

21.1

79,710

2,78,760

SUNPHARMA

CE

640

8

8,006

22,23,100

TATASTEEL

CE

600

7.65

7,079

21,26,244

YESBANK

CE

400

7.4

6,364

32,93,500

TATAMOTOR

CE

260

5.85

6,024

43,99,500

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

Op- Strike tion Price Type

LTP

Traded Volume (Contracts)

Navin Fluorine's Managing Director Shekhar Khanolkar resigned

NIFTY FUTURE

Open Interest Nifty finished at all time highs but in previous week it

PE

27800

44

1,58,395

4,87,200

BANKNIFTY

PE

27900

66.3

1,42,996

4,32,120

BANKNIFTY

PE

27700

33.1

1,21,871

3,76,440

NIFTY

PE

11300

37.5

1,12,559

41,74,200

RELIANCE

PE

1200

18

4584

14,30,000

TATASTEEL

PE

560

5.8

4247

12,70,017

RELIANCE

PE

1180 10.55

4077

14,60,000

ICICIBANK

PE

3989

58,19,000

4.25

Larsen & Toubro: Company will consider the proposal of buyback of equity shares on August 23

2,83,500

BANKNIFTY

330

dint cross all time high of 11495, according to spot market chart Nifty moving in rising channel line pattern which followed in last week where Nifty traded near pattern support level here down side support is at 11400, if Nifty break this level on closing basis then we can see two per cent fall, while on future market chart it is moving in rising wedge pattern and RSI also has double top pattern where below 11274 it will divergence on RSI so be cautious at this points, here Nifty can be buy around 11400-11380 with strict stop loss of 11200 for the target of 11550 11700 12000.

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

20467

1874.43

27766

2569.85

346671

30356.38

-695.4195

INDEX OPTIONS

552645

54925.69

533042

53011.42

772124

69030.26

1914.2644

STOCK FUTURES

158364

10898.93

146301

10043.50

1162435

87279.64

855.434

STOCK OPTIONS

111148

8344.02

114361

8556.46

142548

10938.40

-212.4435 1861.8354

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

11403.66

11387.33

11455.00

11471.66

11523.33

BANKNIFTY

28331.67

28250.34

28127.67

28046.34

27923.67

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Special Report

20-Aug-2018

RECOMMENDATIONS GOLD TRADING STRATEGY: BUY GOLD ABOVE 29400 TGT 29470 29570 SL BELOW 29330 SELL GOLD BELOW 29330 TGT 29260 29160 SL ABOVE 29400

SILVER TRADING STRATEGY: BUY SILVER ABOVE 36900 TGT 37100 37400 SL BELOW 36700 SELL SILVER BELOW 36700 TGT 36500 36300 SL ABOVE 36900

COMMODITY ROUNDUP Gold prices fell by Rs 90 to Rs 30,250 per 10 grams at the bullion market today owing to tepid demand from local jewellers even as the precious metal strengthened overseas. However, silver held steady at Rs 38,000 per kg on scattered enquiries from industrial units and coin makers. Marketmen attributed the slide in gold prices to easing demand from local jewellers and retailers in the domestic spot market but a firm trend overseas capped the fall. Globally, gold rose by 0.93 percent to $1,184.60 ounce and silver climbed 0.99 percent to $14.77 an ounce in New York in yesterday's trade. In the national capital, gold of 99.9 percent and 99.5 percent purity declined by Rs 90 each to Rs 30,250 and Rs 30,100 per 10 grams, respectively. Sovereign also traded lower by Rs 100 to Rs 24,400 per piece of 8 grams. On the other hand, silver ready ruled flat at Rs 38,000 per kg, while weekly-based delivery recovered by Rs 235 to Rs 36,940 per kg on speculative buying. Silver coins, however, held steady at Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces. Natural Gas prices made a higher high for the week and traded higher than last week closing of Rs 203.2. In general, the market looks as if it is getting a bit heavy, but there is no hurry to go in either direction right now. The US Energy Information Administration (EIA) reported Thursday morning that the US natural gas stockpiles increased by 33 billion cubic feet for the week ending August 10. In its August revision to the Short-Term Energy Outlook, the EIA estimated that dry gas production rose by 8.4 billion cubic feet per day to 81.8 billion cubic feet in July despite record-high demand and relatively low inventory levels. Daily production is forecast to rise to 84.3 billion cubic feet by the end of next year.Total US stockpiles rose week over week to 22.3 percent below last year’s level and are now 20 percent below the five-year average. The EIA reported that the US working stocks of natural gas totalled about 2.387 trillion cubic feet at the end of last week, around 595 billion below the five-year average of 2.982 trillion cubic feet and 687 billion below last year’s total for the same period. Working gas in storage totalled 3.074 trillion cubic feet for the same period a year ago. Bearish risks are record high production, falling Cooling degree-days (CDD)/ Total degree -days (TDD) and mild winter outlook. Rising nuclear outages and global LNG fundamentals are the two bullish factors as of now.

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Special Report

20-Aug-2018

RECOMMENDATIONS GUARGUM5 TRADING STRATEGY: BUY GUARGUM OCT ABOVE 9985 TARGET10030 10080 SL 9935 SELL GUARGUM OCT BELOW 9825 TARGET 9775 9725 SL 9875

NCDEX INDICES Index

Value

% Change

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

1651 4609 4290 4830 1730.5 4582

-0.18 -0.73 -1.13 -0.47 -0.63 -0.91

Jeera

19495

1.33

4168 3370 6966

0.97 0.63 0.09

Mustardseed Soy Bean Turmeric

DHANIYA TRADING STRATEGY: BUY CORIANDER SEP ABOVE 4985 TARGET 5030 5080 SL 4935 SELL CORIANDER SEP BELOW 4815 TARGET 4755 4705 SL 4965

Global soyabean production is on the upswing, pressuring prices. What is coming as an additional headwind is the ongoing trade slugfest between the US and China. According to USDA latest crop production estimates -- released last week -- global soybean production for crop year 2018-19 will reach 3,671 lakh tonnes against the earlier estimate of 3,594 lakh tonnes. While the US is seen to account for 1,248 lakh tonnes against the previous estimate of 1,172 lakh tonnes, Brazil’s ..output is projected at 1,205 lakh tonnes against Argentina’s 570 lakh tonnes. Even on the domestic front, this year could be a bumper one for soyabean production as sowing crossed 11 million hectares. US end stock is expected to stay higher on lower export to China because of the ongoing trade issues involving China. The prices are visibly under pressure. Soybean futures contracts at CBOT plunged more than 5 per cent below 900 cent per bushel. Looking at fundamentals and the record global output, further weakness in the soybean prices cannot be ruled out. The dollar is getting stronger among its peers, a negative for global commodity prices. National Commodity and Derivatives Exchange (NCDEX) has successfully settled its first options contract in guar seed after trading over 52,000 tonnes, according to a release issued by the exchange on Monday. Finance Minister Arun Jaitley had announced the commencement of agri options contract in guar seed on January 14. On the launch day, the quantity traded was 8,010 tonnes. The first set of call and put options expired on February 28, 2018 with 1,130 tonnes being exercised by holders of the options. The open interest in the February expiry options increased from the first day’s 4,290 tonnes to touch a peak of 8710 metric tonnes on February 23, 2018.The average daily EOD Open Interest was 6610 MT. On the completion of the first settlement of agri commodity options, a NCDEX spokesperson said, “It is heartening to observe that such a large number of members actively participated in the first ever expiry options of an agri commodity. With increasing participation in the exchange, we are sure the subsequent options expiring on 28 March 2018 and 25 April 2018 will also be successful.”

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Special Report

20-Aug-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

70.2287 Yen

63.35

Euro

79.9718 GBP

89.3670

USD/INR TRADING STRATEGY: BUY USDINR ABOVE 70.35 TGT 70.55/70.75 SL BELOW 70.20

SELL USDINR BELOW 70.15 TGT 70/69.80 SL ABOVE 70.32

GBP/INR TRADING STRATEGY: BUY GBPINR ABOVE 89.50 TGT 89.70/89.90 SL BELOW 89.35 SELL GBPINR BELOW 89.30 TGT 89.10/88.90 SL ABOVE 89.48

A parliamentary committee looking into the issue of mounting non-performing assets (NPAs) has asked former RBI Governor Raghuram Rajan to appear before it and brief on the matter. Rajan was invited after former Chief Economic Advisor (CEA) Arvind Subramanian praised him before the Parliament's Committee on Estimates, headed by veteran BJP leader Murali Manohar Joshi, for identifying the NPA crisis and trying to resolve it. Joshi has written a letter to Rajan asking to appear before the panel and brief the members on the issue of mounting NPAs, a source said. Rajan, who was RBI governor for three years till September 2016, is currently the Katherine Dusak Miller Distinguished Service Professor of Finance at Chicago Booth School of Business. The letter has been written to Rajan after Subramanian credited him for identifying the problem, the source said. Subramanian appeared before the panel last month as CEA and briefed it on the bad loans issue. During his submission, he expressed scepticism over the handling of the NPAs and indicated that big-ticket loans by public sector banks were influenced. Indian currency and debt markets are closed on Friday for a local holiday and trading would resume on Monday, but the local stock markets will be functioning as normal.On Thursday, the benchmark 10year bond yield ended at 7.86 percent, up 4 basis points from its Tuesday's close.All financial markets including stocks were closed on Wednesday for Independence Day celebrations.The partially convertible rupee INR=D2 closed Thursday at 70.15/16 per dollar versus its previous close of 69.90/91. It hit a record low of 70.40 during the session. At press time, the USD/INR is trading at 70.20, having clocked a record high of 70.32 earlier today. The Indian currency fell past 70 per US dollar earlier this week, courtesy of the broad-based sell-off in the Asian currencies. The INR's pain has been accentuated by worsening economic data. India’s trade deficit widened to a more-thanfive-year high of $18.02 billion in July, the trade ministry said on Tuesday, according to a Reuters report. The Indian rupee dropped to a record low in opening deals on Thursday with investor sentiment affected by a widening trade deficit on the domestic front and the broad rise in the U.S. dollar versus other Asian peers.

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Special Report

20-Aug-2018

Date

Commodity/ Currency Pairs

17/08/18

NCDEX DHANIYA

SEP

BUY

17/08/18

NCDEX DHANIYA

SEP

SELL

17/08/18

NCDEX GUARGUM5

OCT

BUY

17/08/18

NCDEX GUARGUM5

OCT

SELL

17/08/18

MCX GOLD

OCT

BUY

17/08/18

MCX GOLD

OCT

17/08/18

MCX SILVER

17/08/18

Contract Strategy

Entry Level

Target

Stop Loss

Remark

4980-5030

4880

OPEN

4820-4770

4920

NOT EXECUTED

9800

9850-9900

9750

TARGET HIT

9730

9680-9630

9780

TARGET HIT

29600

29700-29900

29500

NOT EXECUTED

SELL

29350

29250-29150

29450

SL TRIGGERED

SEP

BUY

37400

37600-37900

37200

NOT EXECUTED

MCX SILVER

SEP

SELL

36700

36500-36300

36900

NOT EXECUTED

Date

Scrip

CASH/ FUTURE/ OPTION

Strategy

Entry Level

Target

Stop Loss

Remark

17/08/18

NIFTY

FUTURE

SELL

11440-20

11350-300

11480

NOT EXECUTED

17/08/18

SUNPHARMA

FUTURE

BUY

612-615

625-635

605

NOT EXECUTED

17/08/18

DLF

FUTURE

BUY

206.90-208

212-216

203

NOT EXECUTED

17/08/18

NBCC

CASH

BUY

74.50-75

76.50-78.50

73.25

COST EXIT

4930

4870

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Special Report

20-Aug-2018

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

REPORT

PERIOD

ACTUAL

FORECAST

PREVIOUS

WEDNESDAY, AUG. 22

WEDNESDAY, AUG. 22

MONDAY, AUG. 20 None scheduled TUESDAY, AUG. 21 None scheduled WEDNESDAY, AUG. 22

WEDNESWEDNESDAY, AUG. DAY, AUG. 22 22

WEDNESDAY, AUG. 22

WEDNESDAY, AUG. 22

2 pm

FOMC minutes

7/31-8/1

THURSDAY, AUG. 23 9:45 am

Markit manufacturing PMI (flash)

Aug.

--

55.3

9:45 am

Markit services PMI (flash)

Aug.

--

56.0

10 am

New home sales

July

641,000

631,000

--

0.7%

FRIDAY, AUG. 24 8:30 am

Core capital goods orders

10 am

Jerome Powell speaks

July Disclaimer

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