Special-Report-21-SEPTEMBER-2018-Epic-Research

Page 1

Special Report 21-Sep-2018

Global markets at a glance The S&P 500 and the Dow Jones industrial average rose on Wednesday, with the Dow hitting its highest closing level since late January as rising Treasury yields boosted the financial sector and trade worries subsided.The tech-heavy Nasdaq ended the session slightly lower. Financial companies rose 1.8 percent, the biggest percentage gainer among the major S&P 500 sectors, as the benchmark 10-year Treasury yield hit a four-month high. Goldman Sachs , JPMorgan Chase , Citigroup and Bank of America ended the session up between 2.6 and 3.3 percent.The Dow Jones Industrial Average rose 158.8 points, or 0.61 percent, to 26,405.76, the S&P 500 gained 3.64 points, or 0.13 percent, to 2,907.95 and the Nasdaq Composite dropped 6.07 points, or 0.08 percent, to 7,950.04.Of the 11 major sectors of the S&P 500, seven ended in negative territory.So-called defensive stocks lost ground as rising yields provided investors with an attractive alternative to higher-risk equities. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.05 percent in early trade in Asia, taking support from Wall Street overnight.Japan's Nikkei stock index was 0.2 percent higher, while Australian shares eased 0.3 percent.The Dow Jones Industrial Average ended 0.61 percent higher on Wednesday at 26,405.76, its highest close since late January, while the S&P 500 gained 0.13 percent to 2,907.95. Previous day Roundup The index continued to fall for third consecutive session to break crucial support of 11,250 levels and formed bearish candle on the daily charts again. The Nifty Midcap index also caught in bear trap, falling nearly a percent while all sectoral indices ended in the red barring Metal and IT.The Nifty50 after gap up opening above 11,300-mark rallied to hit an intraday high of 11,332.05, but wiped out all gains in last couple of hours of trade to break crucial support and hit day's low of 11,210.90. The index fell nearly 100 points from day's high to end down 44.50 points at 11,234.40. According to Pivot charts, the key support level is placed at 11,186.13, followed by 11,137.97. If the index starts moving upwards, key resistance levels to watch out are 11,307.23 and 11,380.17. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[17.50], Co nsum ptio n[ -43 .85 pts],Bank[ -164 .1 0 pts],Auto [ 37.75pts],FinService[-92.80pts],Fmcg[-405.55pts],Media[50.15pts],Pharma[-8.45pts],IT[32.95pts],Metal [43.70pts],Realty[-3.20 pts], Pvt Bank[-71.00pts].

World Indices Index

Value

% Change

26,661.72

0.97

S&P500

2,941.25

0.06

NASDAQ

8,028.23

0.98

FTSE100

7,367.32

0.87

23,886.94 27,708.61

0.89 0.83

DJI

NIKKEI HANG SENG

Top Gainers Company

CMP

Change

% Chg

BPCL

365.05

9.95

2.80

Coal India

280.65

7.45

2.73

GAIL

384.55

9.75

2.60

Tech Mahindra

769.95

15.25

2.02

ONGC

177.00

3.10

1.7

CMP

Change

% Chg

6,312.05 1,804.65 450.80 2,499.55 692.30

-215.55 -57.50 -13.75 -70.85 -16.75

-3.30 -3.09 -2.96 -2.76 -2.36

Top Losers Company

Bajaj Finserv IndusInd Bank Zee Entertain Bajaj Finance UPL

Stocks at 52 Week’s HIGH AIONJSW CIPLA

24.35 663.7

1.2 -1.65

4.93 -0.25

DELTAMAGNT

124.05

6.2

5

DIVISLAB

1379.8

14.15

1.03

ELECTROSL

18.5

0.9

4.86

GANGOTRI

4.05

0.2

4.94

Prev. Close

Change

%Chg

3.15 31.2 89.35 71.65 1708.8

0.05 -0.5 -0.35 -1.4 -58.8

1.59 -1.6 -0.39 -1.95 -3.44

Stocks at 52 Week’s LOW Symbol

ADHUNIK ADLABS AGCNET AGRITECH AKZOINDIA

Indian Indices Company

CMP

Change

% Chg

NIFTY

11234.40

-44.50

-0.39

SENSEX

37121.22

-169.45

-0.45

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Special Report 21-Sep-2018

RECOMMENDATIONS [FUTURE] 1. IRB [FUTURE ] After consolidating within a range the particular counter brooked its support level of 168.40 and closed below it .Today it may show some correction upto 168, from that level we can short so we advice to sell IRB infra future around 168-167.50 for the targets of 165-163 with stoploss above 170.

2. INDIGO [FUTURE] Respecting the support level of 860 the particular counter is showing bounce back closed with a hanging man candlle .Here we can get the change of buy on dip oportunity around the levels of 870-874 for the targets of 885-895 with stoploss below 860.

STOCK RECOMMENDATION [CASH] VIPIND [CASH] This particular counter is showing a clear downtrend ,515 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 vipind around 515-514 for the targets of 508-500 with stoploss above 520.

MACRO NEWS  Trends on SGX Nifty indicate a positive opening for the broader index in India, a gain of 39.5 points or 0.35 percent. Nifty futures were trading around 11,351level on the Singaporean Exchange.  North Korea’s Kim Jong Un wants a second summit with US President Donald Trump soon to hasten denuclearization, but a key goal is declaring an end this year to the 1950-53 Korean War, the South’s President Moon Jae-in said on Thursday. Moon said he and Kim spent most of a three-day summit discussing how to break an impasse and restart nuclear talks between Pyongyang and Washington, which are at odds over which should come first, denuclearization or ending the war.  Prime Minister Narendra Modi said Thursday the size of Indian economy will double to $5 trillion by 2022 with manufacturing and agriculture contributing $1 trillion each. Speaking at the foundation laying ceremony of India International Convention and Expo Centre, he cited this week's announcement of merger of Dena Bank, Vijaya Bank and Bank of Baroda to create the country's third largest lender to say that the government will not shy away from taking tough decisions in the national interest.  The Finance Ministry Thursday pegged the exchange rate for dollar at Rs 73.65 for calculation of import duty with effect from September 21, as against Rs 72.55 a fortnight ago. Similarly, in case of Pound Sterling, the value has been fixed at Rs 97.40 acompared to Rs 94.30 earlier.

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Special Report 21-Sep-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION

Wipro shareholders approve amalgamation with Wipro Tech Austria

2,88,873

39,12,900

Sterlite Tech clarified, on Airtel, Jio, Sterlite Tech among bidders for Aircel Assets - that this is factually incorrect, and that the company denies having participated in any such bid

61.6

2,14,170

24,94,575 

640

5.6

9,440

23,36,322

Stata Bank of India: The bank concluded the issuance of $650 Mio Green Senior Unsecured Fixed Rate Notes under $10 billion MTN programme.

CE

1,240

8.5

9,276

BANKBARODA CE

120

2.1

8,864

22,40,000 NIFTY FUTURE 56,96,000

Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

Open Interest

BANKNIFTY

CE

27,000

0.05

3,44,774

12,49,080

NIFTY

CE

11,400

32.5

NIFTY

CE

11,300

TATASTEEL

CE

RELIANCE MARUTI

CE

8,500

28.4

7,877

1,53,150

RELIANCE

CE

1,260

4.7

7,244

27,09,000

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

5,00,160 The Nifty future confirmed its downtrend by making 1,88,120 three consecutive bearish candle and closing below 11297 which was acting as a crucial support level the 18,39,000 index is showing a clear sign of downtrend with no 24,88,000 strong support level so we advice to make a short 15,01,000 position around 11270-250 for the targets of 11200-150 with stoploss above 11320. 12,68,000

FII DERIVATIVES STATISTICS BUY

SELL

No. of Contracts

Amount in Crores

INDEX FUTURES

42828

4130.75

34490

3165.76

INDEX OPTIONS

1617033

162967.98

1601002

STOCK FUTURES

206019

13963.09

STOCK OPTIONS

163739

11817.36

OPEN INTEREST AT THE END OF THE DAY

No. of Amount in No. of Contracts Crores Contracts

Amount in Crores

NET AMOUNT

304701

26088.27

964.9908

161430.14

978793

85940.78

1537.8368

224280

15124.92

1223542

89686.08

-1161.8239

164307

11863.13

136958

9998.05

-45.7675 1295.2362

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

11380.00

11307.00

11258.00

11185.00

11136.00

BANKNIFTY

26750.00

26513.00

26374.00

26137.00

25998.00

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Special Report 21-Sep-2018

RECOMMENDATIONS GOLD TRADING STRATEGY: BUY GOLD OCT FUT ABOVE 30800 TGT 30900 31100 SL BELOW 30700 SELL GOLD OCT FUT BELOW 30600 TGT 30500 30300 SL ABOVE 30700

SILVER TRADING STRATEGY: BUY SILVER SEP FUT 37600 TGT 37800 38100 SL BELOW 37400 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 21-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

1653 4660 3925 4785 1595.5 4313

1.97 0.43 2.19 -0.31 -2.27 -0.75

Jeera

19450

-0.21

4121 3300 6492

-0.31 0.24 -1.40

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 21-Sep-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

72.6781 Yen

64.6900

Euro

84.9050 GBP

95.5925

USD/INR TRADING STRATEGY: BUY USDINR ABOVE 73.10 TGT 73.50 74.00 SL BELOW 72.80 SELL USDINR BELOW 72.30 TGT 71.80 71.30 SL ABOVE 72.80

GBP/INR TRADING STRATEGY: BUY GBPINR ABOVE 95.80 TGT 96.30 96.80 SL BELOW 95.30 SELL GBPINR BELOW 94.90 TGT 94.40 94.00 SL ABOVE 95.40

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 21-Sep-2018

Date

Commodity/ Currency Pairs

19/09/18

NCDEX DHANIYA

SEP

BUY

19/09/18

NCDEX DHANIYA

SEP

19/09/18

NCDEX GUARGUM5

19/09/18

Contract Strategy

Entry Level

Target

Stop Loss

Remark

5190

5250 5300

5140

NOT EXECUTED

SELL

5110

5070-5020

5160

NOT EXECUTED

OCT

BUY

9380

9430 9480

9330

NOT EXECUTED

NCDEX GUARGUM5

OCT

SELL

9330

9380-9340

9470

NOT EXECUTED

19/09/18

MCX GOLD

OCT

BUY

30950

31050 31250

30850

NOT EXECUTED

19/09/18

MCX GOLD

OCT

SELL

30600

30500 30300

30700

OPEN

19/09/18

MCX SILVER

SEP

BUY

37700

37900 38200

37500

NOT EXECUTED

19/09/18

MCX SILVER

SEP

SELL

37300

37100 36800

37500

NOT EXECUTED

Date

Scrip

CASH/ FUTURE/ OPTION

Strategy

Target

Stop Loss

Remark

19/09/18

NIFTY

FUTURE

SELL

11370-60

11300-250

11420

TARGET HIT

19/09/18

ORIENTBANK

FUTURE

SELL

72.80-70

70-68

74

OPEN

19/09/18

ONGC

FUTURE

BUY

173-174

177-180

171

TARGET HIT

19/09/18

KNRCON

CASH

SELL

198.30-198

196-194

200

TARGET HIT

Entry Level

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Special Report 21-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

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) for errors of fact or opinion. Users have the right to choose the product/s that suits them the most. Sincere efforts have been made to present the right 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 does not provide individually tailor-made investment advice. Epic research recommends that investors independently evaluate particular investments 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 with all estimates and forecasts, can change without notice. Analyst or any person 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 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, however, do not vouch for the accuracy or the completeness thereof. We are not responsible for any loss incurred whatsoever for any financial profits or loss 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

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