Special report-24-august-epic-research-2018

Page 1

Special Report 24-Aug-2018

Global markets at a glance The Dow Jones Industrial Average fell 76.62 points, or 0.3 percent, to 25,656.98, the S&P 500 lost 4.84 points, or 0.17 percent, to 2,856.98 and the Nasdaq Composite dropped 10.64 points, or 0.13 percent, to 7,878.46. Wall Street's major indexes fell on Thursday as trade-sensitive stocks were hit by a fresh round of tariffs in the trade dispute between the United States and China. Despite ongoing talks, the two countries imposed tariffs on $16 billion worth of each other's goods. Shares of industrial giants Caterpillar Inc and Boeing Co , which have been bellwethers of trade sentiment, were among the biggest drags on the Dow. Caterpillar shares fell 2.0 percent, and Boeing shares fell 0.7 percent. In the S&P 500, the technology sector was the sole gainer, rising 0.2 percent. But it pared gains late in the session, sending the techheavy Nasdaq into negative territory along with the S&P and the Dow. Asian stocks tracked Wall Street losses and edged down in early trade on Friday, but the dollar was buoyant after ending a long losing run ahead of a speech by Federal Reserve Chairman Jerome Powell. MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.18 percent. Australian stocks rose 0.16 percent, South Korea's KOSPI fell 0.35 percent and Japan's Nikkei climbed 0.35 percent. The S&P 500 shed 0.17 percent overnight to pull back slightly from a record high scaled midweek, with industrial shares sagging after the United States and China imposed a fresh round of trade tariffs on each other. The benchmark S&P 500 touched a record high on Tuesday and equalled its longest-ever bull-market run, buoyed by strong earnings reports in the consumer sector and relative calm in the trade dispute between the United States and China. The S&P 500 rose as much as 0.6 percent to a record intraday high of 2,873.23 points, topping its previous record high of 2,872.87 on Jan. 26, though it closed below both those marks.Late in the day, stock market futures fell after US President Donald Trump's former personal lawyer, Michael Cohen, pleaded guilty to campaign finance violations and other charges, saying he made payments to influence the 2016 election at the direction of a candidate for federal office. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[-25.25], Consumption[+12.8pts],PSE[ —16.05pts],CPSE[+14.7pts],Energy[+44.60pts],FMCG[+111.15pts],Auto[ 67.10pts],Pharma[+160.70pts],IT[+98.45pts],Metal[ 48.65pts],Realty[+2.05 pts], Fin Serv sector[-1.75pts].

World Indices Index

Value

% Change

DJI

25,656.98

-0.30

S&P500

2,856.98

-0.17

NASDAQ FTSE100

7,878.46 7,563.22

-0.13

22,575.78 27,689.79

+0.74 -0.36

NIKKEI HANG SENG

-0.15

Top Gainers Company

CMP

Change

% Chg

TECHM

728.9

17.25

2.75

2,467.90

52.65

2.36

164.5

3.50

2.27

HCLTECH

1,026.00

21.05

2.13

LT

1,349.95

29.50

2.07

CMP

Change

% Chg

TATAMOTORS BPCL IOC HINDPETRO

256.55 358.5 153.65 260.1

-11.90 -11.00 -7.25 -5.35

-4.56 -2.78 -2.57 -2.53

HINDALCO

221.15

-19.85

-2.32

DRREDDY NTPC

Top Losers Company

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

ALMONDZ

40.6

-0.1

-0.25

AXISBANK

635.75

-1.75

-0.28

BAJFINANCE

2871.8

19.25

0.67

1034

47

4.55

1673.6

334.7

20

BATAINDIA BBTC

Stocks at 52 Week’s LOW Symbol

ALCHEM AMTEKAUTO AYMSYNTEX BALAJITELE BLBLIMITED

Prev. Close

Change

%Chg

5.65 6.35 39.45 107.45 4.75

-0.15 -0.3 -0.15 -0.45 -0.2

-2.65 -4.72 -0.38 -0.42 -4.21

Indian Indices Company

NIFTY SENSEX

CMP

Change

% Chg

11582.8

11.9

0.10

38336.76

51.01

0.13

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Special Report 24-Aug-2018

RECOMMENDATIONS [FUTURE] 1.GRANULES [FUTURE ] Stock has given good closing and it also closed above the resistance level on daily chart. The RSI and CCI are indicating strong buy on daily chart. We recommend to buy from current level for the target of 120 with the stop loss of 113.

2.MARICO [FUTURE] After a short consolidation stock outperformed well with volume breakout on daily chart and it closed near to days high. We recommend to buy from current level for the target of 390 with the stop loss of 380.

STOCK RECOMMENDATION [CASH] LUPIN - [CASH] Stock has shown good upside rally and it gave closing above the 200 SMA on daily chart. It should form W pattern on daily chart. We recommend to buy from current level for the target of 950 with the stop loss of 865.

MACRO NEWS  VRL Logistics, one of the largest transportation and logistics company in India, had a muted performance in the first quarter of this fiscal year as the volume growth was offset by an increase in fuel costs.The company has seen an uptick in demand after the implementation of the goods and services tax (GST) and along with the e-way bill, this is helping organised players attract fresh business as smaller unorganised players are facing compliance as well as regulatory cost pressures.  Australian Treasurer Scott Morrison will become Australia's new prime minister after winning a Liberal party leadership vote on Friday, ending an internecine battle that has scarred the conservative government ahead of an election due by May 2019. Morrison, who will be Australia's sixth prime minister in less than 10 years, emerged victorious from a three-way race with former home affairs minister Peter Dutton and Foreign Minister Julie Bishop.  Securities and Exchange Board of India (SEBI) Chairman Ajay Tyagi expressed concerns over the growing concentration of assets under management (AUM) among the top seven players.

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Special Report 24-Aug-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION Traded Volume (Contracts)

Symbol

Optio Strike n Price Type

LTP

BANKNIFTY

CE

28,100

0.05 14,92,882

BANKNIFTY

CE

28,200

0.05 14,76,907

BANKNIFTY

CE

28,300

0.05 11,32,586

BANKNIFTY

CE

28,000

8.9 10,53,926

BANKNIFTY

CE

28,400

0.05

6,94,487

14,84,240

BANKNIFTY

CE

28,500

0.05

4,27,003

12,20,080

NIFTY

CE

11,600

58.5

2,21,867

35,32,125

NIFTY

CE

11,700 20.15

1,64,997

28,80,600

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

Optio Strike n Price Type

LTP

BANKNIFTY

PE 28,000

BANKNIFTY

Open Interest

ONGC gains 2%; UBS maintains buy with target Rs 245 ,It believes that strong earnings trajectory and potential of stake sales would be positive for the company.

21,69,920  D-Street Buzz: PSU banks gain led by PNB; RIL hits new record high, Hexaware plunges 14%. 22,49,080 18,43,600 NIFTY FUTURE 2,13,440

2,83,500

Traded Volume (Contracts)

Open Interest

0.05

19,25,474

14,70,080

PE 28,100

71.1

11,99,109

1,08,000

BANKNIFTY

PE 27,900

0.05

8,37,405

12,61,640

BANKNIFTY

PE 28,200 136.95

4,93,483

16,160

BANKNIFTY

PE 27,800

0.05

4,28,528

6,08,360

NIFTY

PE 11,500

33.9

1,88,463

45,85,650

NIFTY

PE 11,600

65.8

1,36,827

17,90,400

BANKNIFTY

PE 27,700

0.05

1,24,297

2,75,240

Nifty future hit again all time high of 11622 then it weak hands created profit booking due to that it slipped form the highs but near the previous day high it again bounced and closed near all time high. Technically it is moving in rising wedge pattern where RSI also in over bought region while if we see candle stick on daily chat it is similar to hanging man pattern so trade with strict stop loss since the trend is positive but according to pattern here we can see 120 points fall from the 11630 so sell Nifty near these level with stop loss of 11700 for the target of 11560 11480.

FII DERIVATIVES STATISTICS BUY

SELL

No. of Contracts

Amount in Crores

INDEX FUTURES

38251

3644.28

36601

3285.89

INDEX OPTIONS

1313514

139836.43

1305513

STOCK FUTURES

240851

17675.32

STOCK OPTIONS

168146

13467.60

OPEN INTEREST AT THE END OF THE DAY

No. of Amount in No. of Contracts Crores Contracts

Amount in Crores

NET AMOUNT

370555

32513.30

358.39

138889.15

783391

70261.48

947.28

244055

17669.98

1162397

88524.28

5.34

169771

13497.45

154782

11966.76

-29.84 1281.17

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

11645.00

11613.00

11580.00

11548.00

11515.00

BANKNIFTY

28451.27

28239.13

28102.57

27890.43

27753.87

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Special Report 24-Aug-2018

RECOMMENDATIONS GOLD TRADING STRATEGY: BUY GOLD ABOVE 29730 TGT 29830 30030 SL BELOW 29630 SELL GOLD BELOW 29530 TGT 29430 29230 SL ABOVE 29630

SILVER TRADING STRATEGY: BUY SILVER ABOVE 36800 TGT 37000 37300 SL BELOW 36600 SELL SILVER BELOW 36500 TGT 36300 36000 SL ABOVE 36700

COMMODITY ROUNDUP Gold prices edged up on Friday after falling nearly 1 percent in the previous session, but expectations of higher U.S. interest rates and a robust dollar amid the Sino-U.S. trade war kept a lid on the market. Gold has lost its appeal as a safe-haven asset amid international trade disputes and the Turkish currency crisis, with investors increasingly turning to the U.S. dollar instead. Spot gold XAU= was up 0.2 percent at $1,187.06 an ounce at 0337 GMT, after falling about $10 on Thursday. Prices have risen 0.2 percent so far this week, after dropping for six straight weeks. U.S. gold futures GCcv1 were down 0.1 percent at $1,192.60 an ounce. U.S. and Chinese officials ended two days of talks on Thursday with no major breakthrough as their trade war escalated with activation of another round of tariffs on $16 billion worth of each country's goods. are worried about the trade war and that has helped the dollar. But the dollar will not be as strong as it has been going forward and that should help gold prices to go up," said Ji Ming, chief analyst at Shandong Gold Group. The dollar eased 0.1 percent to 95.587 against a basket of six major currencies .DXYon Friday, after rising 0.6 percent the day before. Investor focus is shifting to a speech by Federal Reserve Chairman Jerome Powell later on Friday at an annual meeting of central bankers in Jackson Hole, Wyoming. Fed policymakers broadly agree that U.S. interest rates should rise further this year and next, despite U.S. President Donald Trump's displeasure with such a plan, two policymakers' comments underscored on Thursday. officials have been repeatedly saying that rates will be raised in the future and there was no surprise in that. What their reaffirmation tells the market is that the central bank will not be influenced by President Donald Trump," Ming said. Gold has fallen about 9 percent so far this year on a firm dollar and rising interest rates. Prices touched 1-1/2-year lows last week, before recovering a touch. "There is some buying as gold has been in a downward trough for a while. $1,200 remains an interesting level and we might see prices going down again if that level does not hold," said Brian Lan, managing director at dealer GoldSilver Central in Singapore. Negative sentiment towards gold was reflected in record net short positions and liquidations in exchange traded funds (ETF). Holdings of SPDR Gold Trust GLD , the world's largest gold-backed ETF, have fallen over 3 million ounces from a peak in late April. GOL/ETF Spot silver XAG= was up 0.2 percent at $14.49 an ounce, after touching a one-week lows of $14.41 on Thursday. Platinum XPT= was up 0.6 percent at $779.80 an ounce, after earlier hitting its lowest in a week at $769.50.

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Special Report 24-Aug-2018

RECOMMENDATIONS GUARGUM5 TRADING STRATEGY: BUY GUARGUM OCT ABOVE 9680 TARGET 9730 9780 SL 9630 SELL GUARGUM OCT BELOW 9300 TARGET 9250 9200 SL 9350

NCDEX INDICES Index

Barley

Value

% Change

1623.5

-0.64

Castor Seed Chana Coriander

4759 4205 4891

0.93 -1.36 -1.53

Cotton Seed Oilcake

1775

-2.61

Guar Seed 10 MT

4347

-3.57

19675

-3.41

Jeera

Mustardseed 4132 -0.51 Soy Bean 3292 -1.02 Turmeric 6910 -1.62 Raw sugar prices slipped on Thursday, hovering near 10year lows as ample supplies and a weak Brazilian currency weighed, while arabica coffee also fell and cocoa continued to advance. Cocoa prices on ICE rose for the fourth straight session on Thursday, buoyed by lower bean arrivals in top grower Ivory Coast and strengthening charts, which lifted the New York premium over London to the highest since May. Raw sugar and arabica coffee hovered above the prior session's multi-year lows, shrugging off further weakness in the currency in No. 1 producer Brazil. DHANIYA TRADING STRATEGY: BUY CORIANDER SEP ABOVE 5210 TARGET 5260 5310 SL 5160 SELL CORIANDER SEP BELOW 4870 TARGET 4820 4770 SL 4920

Although 94 per cent kharif sowing has been completed in Maharashtra so far, crop loan for the season has been disbursed to only about 50 per cent farmers till now, an official said today. According to the official, this delay in loan disbursement was due to several factors, including that previous unpaid debts have rendered a number of farmers ineligible to get fresh loan. Earlier this week, the state government announced that of the total 140.69 lakh hectares of agricultural . The food ministry today extended the deadline for exporting 2 million tonne of sugar by three months to December as only a fourth of it has been shipped so far. In March, the government had allowed sugar export in view of record domestic output of 32 MT. Mill-wise, Minimum Indicative Export Quotas (MIEQ) were allocated by the ministry in May. "The date of export of MIEQ allocated to sugar mills is extended by three months up to December 31," an official order said. As per the official data, only about 5 lakh tonne sugar has been exported so far.

The government has taken slew of measures to bail out cash-starved sugar mills as well as cane farmers. Record sugar production in 2017-18 season ending September depressed local prices resulting in huge cane arrears which touched the peak of Rs 23,232 crore in May-end. _____________________________________________________________________________________________________________________ Please refer to disclaimer Epic Research Ltd www.epicresearch.co


Special Report 24-Aug-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

70.0656 Yen

63.21

Euro

81.0486 GBP

90.2576

USD/INR TRADING STRATEGY: BUY USDINR ABOVE 70.20 TGT 70.40/70.65 SL BELOW 70 SELL USDINR BELOW 69.95 TGT 69.75/69.55 SL ABOVE 70.15

GBP/INR TRADING STRATEGY: BUY GBPINR ABOVE 90.05 TGT 90.25/90.50 SL BELOW 89.85 SELL GBPINR BELOW 89.80 TGT 89.60/89.40 SL ABOVE 90

India must put an end to the dual control over public sector banks, which have been under severe stress due to high level of sticky loans, former Reserve Bank of India Governor Yaga Venugopal Reddy said.He said that improving governance in public sector banks is more important than consolidation. Governance and prudential regulation are the two aspects to the regulation and supervision of banks. The governance relates to the fit and proper criteria of the board of directors, the senior management and their role in the functioning of the banks. The RBI regulates both governance and prudential norms of private banks. For public banks, the government exercises the powers relating to governance while leaving prudential regulation to RBI. Present RBI Governor Urjit patel has recently exasperated the government by stating that RBI did not have enough powers to regulate public sector banks. "The government is fully responsible for perpetuating the problem of dual control for over 25 years. There must be reasons for this state of affairs. They are called political economy considerations," Reddy said Thursday in Kolkata. India needs three-four large lenders which could figure among top 200 global-sized banks, Niti Aayog vicechairman Rajiv Kumar said today. Kumar made a strong case for giving banking sector more freedom to take risks and provide credit to industry especially the MSME sector. "We need to have 3-4 banks of global standard in size," he said adding they ought to figure in top 200 global-sized banks. While speaking at an event here, he regretted that India's banking sector is highly conservative and risk averse."Our banking sector is high conservative. It's risk appetite is minimal and it's capacity of project assessment is not as much it should be. So, it takes recourse to safe banking," the Niti Aayog vice chairman said. He further said that the RBI should refrain from over regulation and encourage banks to take risks and increase exposure to the MSME sector . The central bank should take steps to enhance the lending capacity of the banks, he said, adding that India's credit to GDP ratio is very low compared to many countries. The dollar held onto recent gains in early trade on Friday after U.S. and Chinese officials ended two days of trade talks without any major breakthroughs.

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Special Report 24-Aug-2018

Date

Commodity/ Currency Pairs

23/08/18

NCDEX DHANIYA

SEP

23/08/18

NCDEX DHANIYA

23/08/18

Contract Strategy

Entry Level

Target

Stop Loss

Remark

BUY

5030

5080-5130

4980

NOT EXECUTED

SEP

SELL

4968

4918-4868

5018

TARGET HIT

NCDEX GUARGUM5

OCT

BUY

9740

9790-9840

9690

NOT EXECUTED

23/08/18

NCDEX GUARGUM5

OCT

SELL

9620

9570-9500

9670

TARGET HIT

23/08/18

MCX GOLD

OCT

BUY

29800

29900-31100

29700

NOT EXECUTED

23/08/18

MCX GOLD

OCT

SELL

29600

29500-29300

29700

OPEN

23/08/18

MCX SILVER

SEP

BUY

37000

37200-37500

36800

NOT EXECUTED

23/08/18

MCX SILVER

SEP

SELL

36600

36400-36100

36800

OPEN

Date

Scrip

CASH/ FUTURE/ OPTION

Strategy

Entry Level

Target

Stop Loss

Remark

23/08/18

NIFTY

FUTURE

SELL

11620

11530

11700

IN PROFIT

23/08/18

KTKBANK

FUTURE

SELL

128-129

125

131

NOT EXECUTED

23/08/18

KSCL

FUTURE

BUY

632

650

628

IN PROFIT

23/08/18

CESE

CASH

BUY

1000

1020

980

OPEN

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Special Report 24-Aug-2018

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

REPORT

PERIOD

ACTUAL

FORECAST

PREVIOUS

WEDNESDAY, AUG. 22

WEDNESDA Y, AUG. 22

MONDAY, AUG. 20 None scheduled TUESDAY, AUG. 21 None scheduled WEDNESDA Y, AUG. 22

WEDNESD WEDNESDAY, AUG. AY, 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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