Special report-22-october-2018-epic-research

Page 1

Special Report 22-Oct-2018

Global markets at a glance US stocks fell more than 1 percent on Thursday as the European Commission issued a warning regarding Italy's budget and concerns mounted over the possibility of strained relations between the United States and Saudi Arabia, further denting investors' appetite for risk amid global trade tensions and rising interest rates. The benchmark S&P 500 index closed just above its 200day moving average, a key indicator of long-term price trends. Stocks in Asia fell on Friday as global sentiment soured on issues ranging from trade worries, Italy's 2019 budget, higher U.S. interest rates and growth concerns in China that led to a slump in Chinese shares in the previous session. Early in the trading day, MSCI's broadest index of AsiaPacific shares outside Japan was 0.4 percent weaker following losses on Wall Street overnight. The Dow Jones Industrial Average fell 1.27 percent, the S&P 500 lost 1.44 percent and the Nasdaq Composite dropped 2.06 percent.Australian shares were down 0.6 percent, while Japan's Nikkei stock index was 1.7 percent lower. On Thursday, the flight to safe-haven assets partly offset a rise in U.S. Treasury yields sparked by worries about the pace of interest rate increases by the U.S. Federal Reserve. Early in Asia on Friday, the 10-year yield <US10YT=RR> was higher at 3.1767 percent, compared with a U.S. close of 3.175 percent on Thursday. PREVIOUS DAY ROUNDOFF The market is likely to take cues from the negative sentiment across the globe. Asian and US markets have shown downward trends, while the Nifty futures on Singaporean Exchange also hint at a lower opening. The market was in a bear trap on October 18 after consistent upmove in previous three consecutive trading sessions. The Nifty started the day with a 100-point rally but wiped out all gains in afternoon trade to close below the 10,500 levels and formed 'Bearish Engulfing' pattern on the daily candlestick charts.A Bearish Engulfing Pattern consists of two candles. The Nifty index opened gap up with 104 points gains at 10,688.70 to hit an intraday high of 10,710.15 but failed to hold its gains and corrected sharply in afternoon trade to hit day's low of 10,436.45. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[-33.30pts], Consumption[-37.35pts],PSE[-7.85pts],CPSE[12.00pts],Energy[-391.45pts],FMCG[221.90pts],Auto[144.45pts],Pharma[-36.10pts],IT[472.75pts],Metal[2.05pts],Realty[-1.55 pts], Fin Serv sector[-132.35pts].

World Indices Index

Value

% Change

DJI

25,444.34

0.26

S&P500

2,767.50

-0.17

NASDAQ FTSE100

7,444.03 7,049.80

-0.48

22,532.08 25,561.40

-0.56 0.42

NIKKEI HANG SENG

0.32

Top Gainers Company

CMP

Change

% Chg

289.45

3.00

1.05

HUL

1,578.40

16.40

1.05

Kotak Mahindra

1,198.95

22.95

1.95

HPCL

215.90

8.60

4.15

Wipro

323.15

0.00

0.00

CMP

Change

% Chg

653.80 217.90 2,140.50 2,712.75

-134.85 -14.00 -10.00 -94.80

-17.10 -6.04 -0.47 -3.38

283.55

-1.60

-0.56

ITC

Top Losers Company

Indiabulls Hsg Yes Bank Bajaj Finance Hero Motocorp BPCL

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

8KMILES

114.15

-5.7

-4.99

GOLDBEES

2835.2

24.5

0.86

1000

0.01

0

8.7

0.4

4.6

1000

0.01

0

ICICILIQ JAINSTUDIO LIQUIDETF

Stocks at 52 Week’s LOW Symbol

8KMILES ABGSHIP ABMINTLTD ADLABS AGCNET

Prev. Close

Change

%Chg

114.15 3.6 16 12.3 66.55

-5.7 0.1 0 -0.1 -6.25

-4.99 2.78 0 -0.81 -9.39

Indian Indices Company

CMP

Change

% Chg

NIFTY

10303.50

-149.50

-1.43

SENSEX

34315.63

-463.95

-1.33

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Special Report 22-Oct-2018

RECOMMENDATIONS [FUTURE] 1.UJJIVAN [FUTURE ] From its crucial support level of 224 the stock has got support and closed with a bullish doji candle which signifies that a chance of reversal can be found it may reach upto its next resistance level of 240 so we advice you to buy ujjivan future around 225-226 for the targets of 240-250 with stoploss below 220.

2.IRB [FUTURE] After consolidating between the range 135-120 the stock made closing candle below its support level of 120 which is clear indication of range breakout , so here sell on low would be good strategy to follow so we advice to sell irbfuture around 119-118 for the target of 115-110 with stoploss above 122.

STOCK RECOMMENDATION [CASH] BEL - [CASH] This stock has got resistance from its crucial resistance level of 89.25 and closed with two bearish candle which signifies that the bear run has not come to an end, it may reach upto the level of 77 which is its next support level so we advice you to sell bel at its current for the targets of 163-158 with stoploss above 171.

MACRO NEW  Trends on SGX Nifty indicate a flat to negative opening for the broader index in India, a loss of 11.5 points or 0.11 percent. Nifty futures were trading around 10,313- level on the Singaporean Exchange.  Oil prices were stable on Monday, supported by supply concerns ahead of the start of US sanctions against Iran’s crude exports, but held back by rising drilling activity in the United States. Front-month Brent crude oil futures were trading at $79.74 a barrel at 0042 GMT, 4 cents below their last close at the end of last week. US West Texas Intermediate (WTI) crude futures were at $69.07 a barrel, 5 cents below their last settlement.  The continuing fall of the rupee has had its impact on foreign exchange reserves, which plunged by $5.143 billion to $394.465 billion during the week to October 12 on account of decline in foreign currency assets, according to the RBI data released on October 19.This is one of the steepest falls that forex kitty has seen in recent decades. In the previous week, the reserves had declined by $915.8 million to $399.609 billion. As the rupee has been plummeting, the RBI has sold over $40 billion of its reserves to prop it up since the beginning of the current fiscal.  The rupee recovered early losses and finally settled 29 paise higher at 73.32 against the US dollar on October 19, amid a weakening greenback.

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Special Report 22-Oct-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION Symbol

Optio Strike n Price Type

NIFTY

CE

NIFTY

Persistent Systems Q2: Profit rises to Rs 88.14 crore versus Rs 87.35 crore; revenue increases to Rs 835.55 crore versus Rs 834.28 crore (QoQ).

Bhageria Industries Q2: Profit jumps to Rs 28.21 crore versus Rs 10.65 crore; revenue rises to Rs 126.62 crore versus Rs 91.76 crore (YoY)

9,23,920 

SBI Life Insurance Q2: Profit rises 11 percent to Rs 250.53 crore versus Rs crore; new business premium increases 9 percent Rs 2,221.92 crore YoY.

LTP

Traded Volume (Contracts)

Open Interest

10,500

25

3,97,994

38,57,250

CE

10,400

54.2

3,62,591

26,75,475

BANKNIFTY

CE

25,500

110

2,94,984

RELIANCE

CE

1,100

20.5

16,633

16,80,000

RELIANCE

CE

1,120

12.1

14,290

RELIANCE

CE

1,140

7

13,824

14,02,000 NIFTY FUTURE 21,92,000

RELIANCE

CE

1,200

2.05

10,890

43,91,000

RELIANCE

CE

1,160

4.2

10,530

28,49,000

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

Optio Strike n Price Type

NIFTY

2,83,500

LTP

Traded Volume (Contracts)

Open Interest

PE

10,300 88.45

3,43,144

20,46,600

NIFTY

PE

10,200

57.3

3,25,293

BANKNIFTY

PE

24,500 96.65

2,64,984

NIFTY

PE

10,000 22.35

2,58,191

RELIANCE

PE

1,080 11.95

10,327

RELIANCE

PE

1,060

6.8

9,275

RELIANCE

PE

1,100 19.45

8,274

RELIANCE

PE

1,040

6,706

26,66,325 Again the index got support at its previous support level 7,52,200 of 10280, in the previous week it bounced backed from this level but could not continue its upward movement 33,53,100 after 10599, here we can expect the same trend can be 9,54,000 found since a doji candle is made at the above specified 8,74,000 support level, so we advice you to buy nifty future around 10330-350 for the targets of 10400-450 with 11,31,000 stoploss below 10280. 10,22,000

4.35

FII DERIVATIVES STATISTICS BUY

SELL

No. of Contracts

Amount in Crores

INDEX FUTURES

50466

4294.41

55770

4732.33

INDEX OPTIONS

1229482

106409.57

1255331

STOCK FUTURES

321736

18912.79

STOCK OPTIONS

160892

10942.88

OPEN INTEREST AT THE END OF THE DAY

No. of Amount in No. of Contracts Crores Contracts

Amount in Crores

NET AMOUNT

284993

22255.05

-437.9134

108993.99

1033414

81939.79

-2584.4122

349764

20576.46

1342721

85032.65

-1663.6745

156947

10657.46

143029

9290.23

285.4198 -4400.5803

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

10441.00

10372.00

10310.00

10241.00

10179.00

BANKNIFTY

25449.00

25267.00

25094.00

24912.00

24739.00

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Special Report 22-Oct-2018

RECOMMENDATIONS GOLD TRADING STRATEGY: BUY GOLD DEC FUT ABOVE 31950 TGT 32000 32050 SL BELOW 31900 SELL GOLD DEC FUT BELOW 31850 TGT 31800 31750 SL ABOVE 31900

SILVER TRADING STRATEGY: BUY SILVER DEC FUT ABOVE 38830 TGT 38580 38650 SL BELOW 38780 SELL SILVER DEC FUT BELOW 38740 TGT 38700 38650 SL ABOVE 38800

COMMODITY ROUNDUP Oil slipped below $80 a barrel on Thursday as the fourth weekly increase in U.S. crude inventories suggested ample supply, while Saudi-U.S. tension and falling Iranian exports lent support. U.S. crude inventories rose 6.5 million barrels last week, the Energy Information Administration said on Wednesday, the fourth straight weekly increase and almost three times what analysts had forecast. EIA/S. Brent crude LCOc1 , the global benchmark, was down 50 cents at $79.55 a barrel at 0840 GMT. It has dropped over $7 from a 2014 high of $86.74 reached on Oct. 3. U.S. crude CLc1 was down 28 cents at $69.47. "Stocks are building," said Olivier Jakob, oil analyst at Petromatrix. "It's a continuous trend. Week after week, it does start to add up."Oil had been rising this week on concern about a decline in Iranian exports due to U.S. sanctions and tension between the United States and Saudi Arabia after the death of Saudi journalist Jamal Khashoggi.U.S. lawmakers pointed the finger at the Saudi leadership over the disappearance of the Saudi critic, suggesting sanctions could be possible. Saudi Arabia denies that it had any role in Khashoggi's disappearance. President Donald Trump on Wednesday gave Saudi Arabia the benefit of the doubt in the journalist's disappearance, suggesting the White House may not take additional action against Saudi Arabia. Gold prices fell by 0.19 per cent to Rs 31,806 per ten gram in futures trade Wednesday as participants trimmed their positions in line with weak global trend. At the Multi Commodity Exchange, gold for delivery in December declined by Rs 62, or 0.19 per cent, to Rs 31,806 per ten gram in a business turnover of 13,379 lots. The precious metal to be delivered in November contracts also fell by Rs 60, or 0.19 per cent, to quote at Rs 31,641 per ten gram with a business volume of 23,444 lots. Gold rallied by Rs 110 to Rs 31,460 per 10 gram at the bullion market today, tracking a firm trend overseas amid sustained buying by local jewellers. Silver also advanced by Rs 175 to Rs 39,375 per kg due to increased offtake by industrial units and coin makers. Traders said sentiment remained upbeat on the back of a firm trend overseas as the dollar eased amid fresh concerns of trade tensions between the US and China. In sync with gold, silver ready strengthened by Rs 175 to Rs 39,375 per kg and weekly-based delivery by Rs 205 to Rs 38,525 per kg. Silver coins however continued to trade at last level of Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.

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Special Report 22-Oct-2018

RECOMMENDATIONS GUARGUM5 TRADING STRATEGY: BUY GUARGUM OCT ABOVE 9940 TARGET 10000 10050 SL 9900 SELL GUARGUM OCT BELOW 9750 TARGET 9700 9650 SL 9800

NCDEX INDICES Index

Value

% Change

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

1827.5 5172 4137 5570 1809.5 4543

0.66 2.38 0.95 3.26 1.34 3.2

Jeera

20250

1.07

4186 3302 6532

0.65 0.86 0.37

Mustardseed Soy Bean Turmeric

DHANIYA TRADING STRATEGY: BUY CORIANDER OCT ABOVE 5750 TARGET 5800 5850 SL 5700 SELL CORIANDER OCT BELOW 5600 TARGET 5550 5500 SL 5650

Turmeric prices were trading up by 0.46 per cent to Rs 6,526 per quintal in futures trade Wednesday as participants built up fresh positions, mainly driven by uptick in domestic and export demand in the spot market. Besides, limited arrivals from major producing regions fuelled the uptrend. At the National Commodity and Derivatives Exchange, turmeric for delivery in December month was trading higher by Rs 30, or 0.46 per cent, to Rs 6,526 per quintal with an open interest of 1,195 lots. Similarly, the spice for delivery in November month increased by Rs 18, or 0.28 per cent, to Rs 6,526 per quintal, in an open interest of 12,490 lots. Chana prices declined by 0.34 per cent to Rs 4,084 per quintal in futures market Wednesday as speculators booked profits amid ample stocks position at the spot market against low demand. At the National Commodity and Derivatives Exchange, chana for delivery in November fell by Rs 16, or 0.34 per cent, to Rs 4,084 per quintal with an open interest of 43,980 lots. Likewise, the commodity for delivery in December shed Rs 11, or 0.27 per cent to Rs 4,102 per quintal in 10,680 lots. Heavy rain in Kerala and parts of Karnataka in the past two months has damaged the arecanut crop. Growers are also expecting a sharp drop in production in the coming harvest as they struggle to cope with illegal imports into the country. “We expect 35 per cent shortfall in the crop. Rains have led to disease of the nuts,� said M Suresh Bhandary, MD of Mangalore-based Campco, which buys large quantities of nuts. Arecanut, a chief ingredient of pan masala, is mainly grown in Karnataka, Kerala and Assam. As per advance estimates of production by Directorate of Arecanut and Spices Development, output was 822,495 tonnes in 2017-18, a marginal rise from the previous year. Though area under the nut has remained stagnant, productivity has gone up in certain regions.

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Special Report 22-Oct-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

73.4354 Yen

65.2700

Euro

84.1741 GBP

95.6525

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

GBP/INR TRADING STRATEGY: BUY GBPINR ABOVE 97.70 TGT 98.20/98.70 SL BELOW 97.20 SELL GBPINR BELOW 96.50 TGT 96.00/95.50 SL ABOVE 97.00

The dollar rallied to a one-week high against its rivals on Thursday as upbeat Fed minutes confirmed that policymakers are likely to raise interest rates a few more times until end-2019. While interest rate differentials haven't played a big role in the first half of the year in predicting currency trends as trade war concerns have dominated sentiment, that relationship has begun to exert its influence again in recent weeks. The gap between ten-year U.S. yields and its German counterparts has widened out to three-decade highs of 274 basis points and market watchers expect the spread to widen more in the coming months. The minutes from the Fed's Sept. 25-26 meeting showed every Fed policymaker backed raising interest rates and also generally agreed borrowing costs were set to rise further, despite U.S. President Donald Trump's view that the tightening have already gone too far. minutes confirm that policymakers are expected to raise rates more over the next year and that is helping the dollar gain and the risk off moves last night in Asian stocks is also another factor," said Richard Falkenhall, senior FX strategist at SEB in Stockholm.China's benchmark stock index . SSEC skidded to four-year lows, sapping appetite for risk taking with the euro EURCHF= down 0.1 percent against the perceived safe-haven Swiss Franc.Interest rate futures are now pricing in an 83 percent likelihood that the Fed raises rates in December, according to the CME Group's FedWatch Tool, the fourth hike this year. Two more increases are expected next year.Against a basket of its rivals =USD .DXY , the dollar gained for a third consecutive day, up 0.2 percent at 95.78. A semi-annual report by the U.S. Treasury report released overnight refrained from naming China directly as a currency manipulator though market watchers said Washington will closely monitor the Chinese currency's moves. Bank strategists termed the report "as a bit of an escalation without being too dramatic". The Chinese currency traded in the offshore market CNH=D3 was trading near a three-month low against the dollar at 6.9385 yuan per dollar. The euro EUR= changed hands at $1.1497 on Thursday, trading flat versus the greenback, after losing 0.65 percent on Wednesday.

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Special Report 22-Oct-2018

Date

Commodity/ Currency Pairs

19/10/18

NCDEX DHANIYA

SEP

19/10/18

NCDEX DHANIYA

19/10/18

Contract Strategy

Entry Level

Target

Stop Loss

Remark

BUY

5600

5650 5700

5550

TARGET HIT

SEP

SELL

5500

5550 5600

5450

SL TRIGGERED

NCDEX GUARGUM5

OCT

BUY

9580

9630 9680

9530

TARGET HIT

19/10/18

NCDEX GUARGUM5

OCT

SELL

9220

9170 9120

9270

NOT EXECUTED

19/10/18

MCX GOLD

OCT

BUY

31950

32000 32050

31900

TARGET HIT

19/10/18

MCX GOLD

OCT

SELL

31850

31800 31750

31900

NOT EXECUTED

19/10/18

MCX SILVER

SEP

BUY

39200

39250 39300

39150

NOT EXECUTED

19/10/18

MCX SILVER

SEP

SELL

38740

38700 38650

38800

SL TRIGGERED

Date

Scrip

CASH/ FUTURE/ OPTION

Strategy

Entry Level

Target

Stop Loss

Remark

19/10/18

NIFTY

FUTURE

BUY

10440-450

10530-570

10400

NOT EXECUTED

19/10/18

MANAPPURAM

FUTURE

SELL

71

69-66

74

TARGET HIT

19/10/18

ONGC

FUTURE

SELL

230-228

224-220

234

NOT EXECUTED

19/10/18

EDELWEISS

CASH

SELL

167.80

163-158

171

TARGET HIT

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Special Report 22-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

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