Special report-24-july-2018-epic-research

Page 1

Special Report 24-July-2018

Global markets at a glance Wall Street stocks largely rose on Monday as a jump in 10year bond yields boosted financials and as news of upcoming international trade talks offset the negative impact of the strengthening U.S. dollar on corporate earnings forecasts.The financial sector rose 1.4 percent after 10-year US Treasury yields climbed to their highest level in five weeks. The Federal Reserve was seen as likely to continue raising interest rates despite criticism from President Donald Trump.News of ongoing trade talks helped U.S. stocks edge upward. Mexican President-elect Andres Manuel Lopez Obrador sent Trump a letter urging a quick wrap-up of trade negotiations, and trade officials from Mexico and the United States will meet later this week.Also, European Commission President Jean-Claude Juncker is scheduled to meet with Trump on Wednesday, though he will not arrive in Washington with a specific trade offer.

World Indices Index

Value

% Change

25,044.29

-0.06

S&P500

2,818.50

0.23

NASDAQ FTSE100

7,841.87 7,655.79

0.28 -0.30

22,529.64 28,675.41

0.59 1.46

DJI

NIKKEI HANG SENG

Top Gainers Company

CMP

Change

% Chg

UPL

632.10

82.50

15.01

Vedanta

211.60

9.20

4.55

Bharti Airtel

358.95

13.55

3.92

Bajaj Finserv

6,923.10

259.15

3.89

284.15

10.15

3.70

CMP

Change

% Chg

Hero Motocorp Bajaj Auto Wipro Grasim

3,165.45 2,684.15 276.45 921.40

-211.50 -155.45 -6.55 -17.70

-6.26 -5.47 -2.31 -1.88

Tech Mahindra

648.55

-10.90

-1.65

ITC Asian stocks eked out modest gains on Friday as investor caution prevailed amid concerns about the European Union imposing retaliatory tariffs on US goods while US President Donald Trump's criticism of Federal Reserve policy knocked the dollar.MSCI's broadest index of AsiaPacific shares outside Japan inched up 0.1 percent.Australian stocks added 0.5 percent and South Korea's KOSPI edged up 0.07 percent. Japan's Nikkei reversed earlier modest losses to rise 0.2 percent, lifted as the dollar came off lows versus the yen. Previous day Roundup The Nifty after opening above 11,000-mark rallied sharply to hit a fresh six-month high and closed around the same level, forming bullish candle on the daily charts on Monday.The winning of no-confidence motion by Narendra Modi government in the Lok Sabha and cut in GST rates for several products boosted investors' sentiment.The 30share BSE Sensex ended at record closing high of 36,718.60, up 222 points while all sectoral indices also finished in the green barring IT. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[-9.35pts], Consumption[-32.05pts],PSE[-23.20pts],CPSE[13.90pts],Energy[111.00pts],FMCG[68.50pts],Auto[ 46.30pts],Pharma[145.35pts],IT[211.55pts],Metal[ 12.40pts],Realty[3.20 pts], Fin Serv sector[61.85pts].

Top Losers Company

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

35.4

7.05

19.92

ASIANPAINT

1396.45

37.05

2.65

BAJAJFINSV

6663.95

256.05

3.84

BAJFINANCE

2721.35

30.3

1.11

687.4

-6.1

-0.89

ADANIGREEN

BANDHANBNK

Stocks at 52 Week’s LOW Symbol

ADANIGREEN ASIANPAINT BAJAJFINSV BAJFINANCE BANDHANBNK

Prev. Close

Change

%Chg

35.4 1396.45 6663.95 2721.35 687.4

7.05 37.05 256.05 30.3 -6.1

19.92 2.65 3.84 1.11 -0.89

Indian Indices Company

CMP

Change

% Chg

NIFTY

11084.80

74.60

0.68

SENSEX

36718.60

222.23

0.61

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Special Report 24-July-2018

RECOMMENDATIONS [FUTURE] 1.SUNPHARMA [FUTURE ] After breaking its previous support level of 547 the particular script has rebounded from its another support level of 530,and it has clsoed above its resistance level of 560,if today pharma sector shows some positivity then sunpharma will surely continue its uptrend , so you can buy SUNPHARMA FUTURE AROUND 561-562 TGT 573-590 SL BELOW 555.

2.NBCC [FUTURE]

The particular counter is shwoing a clear sign of reversal from its lower levels of 61.50 with stockhastic momentum indicator showing a bounce back , as per the daily chart the last trading session candle has closed near to its resistance level of 65.55, here long position can be made around 65.5566 for the possible targets of 68-70 sl below 64.

STOCK RECOMMENDATION [CASH] QUICKHEAL [CASH] From the daily chart its clear that after moving in continuos downtrend the particular script has got a support at its important level of 244, it has made a Bullish Engulf candle which is overshadowing its previos candle from here a chance of reversal can be found, so we advice to BUY QUICKHEAL AROUND 254-255 TGT 260-265 SL BELOW 251

MACRO NEW  Trends on Nifty futures, which are trade on the Singaporean exchange, reveal that the market could see a mildly lower opening, with the Nifty falling around 10 points from Monday's close.  Banks and financial institutions in India Monday entered into an inter-creditor agreement to speed up the resolution of stressed assets of Rs 50 crore and above that are under consortium lending.The agreement was signed by 22 public sector banks including State Bank of India (SBI), Punjab National Bank (PNB), and India Posts Payments Bank, 19 private sectors banks, and many foreign banks. The signatories also included 12 major financial institutions such as Life Insurance Corporation of India (LIC), HUDCO, PFC, and REC, among others.  Investments through participatory notes into Indian capital markets plunged to over nine-year low of Rs 83,688 crore at June-end amid stringent norms put in place by the Securities and Exchange Board of India to check the misuse of these instruments.  P-notes are issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to be part of the Indian stock markets without registering themselves directly. They, however, need to go through a proper due diligence process.

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Special Report 24-July-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION Symbol

Optio Strike n Price Type

BANKNIFTY

Hindustan Zinc: Q1 profit increases 1.5 percent to Rs 1,918 crore versus Rs 1,889 crore; revenue rises 16 percent to Rs 5,310 crore versus Rs 4,576 crore (YoY).

8,07,000  3,08,120

Linde India: Q1 profit at Rs 5.2 crore versus loss of Rs 2.2 crore; revenue rises 2.8 percent at Rs 549.6 crore versus Rs 534.7 crore (YoY).

LTP

Traded Volume (Contracts)

CE

27,000 169.2

2,04,129

BANKNIFTY

CE

27,100 118.7

1,98,103

NIFTY

CE

11,200

13.3

1,75,651

30,55,575

MARUTI

CE

9,800 107.7

10,673

77,175

MARUTI

CE

9,700

153

10,294

64,575

BAJFINANCE

CE

2,800

28

8,761

3,84,000

ASHOKLEY

CE

115

0.8

8,399

54,88,000

ASHOKLEY

CE

120

0.35

7,948

95,36,000

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

Optio Strike n Price Type

NIFTY

Open Interest

NIFTY FUTURE

2,83,500

LTP

Traded Volume (Contracts)

Open Interest

PE

11,000 24.55

2,63,650

57,63,300

NIFTY

PE

10,900

12.8

2,10,830

44,94,150

BANKNIFTY

PE

26,800

52

1,98,477

BANKNIFTY

PE

26,700 35.35

1,63,189

RELIANCE

PE

1,100

4.4

5,306

BAJAJ-AUTO

PE

2,700

40

5,185

BAJAJ-AUTO

PE

2,600

10

4,534

INFY

PE

1,340

7.55

3,938

From the daily chart its clear that the Nifty future has 6,07,920 finally broken its crucial resistance level of 11073 and 5,37,840 closed above it ,here it is showing that now the index has created its new support and resistance level, today it 19,03,000 may touch its earlier level of 11080 due to profit 1,03,000 booking so we advice you bid a long position around 1,29,000 11070-11090 for target of 11140-11190 sl below 11020. 4,09,200

FII DERIVATIVES STATISTICS BUY

SELL

No. of Contracts

Amount in Crores

INDEX FUTURES

23925

2110.62

35246

3096.11

INDEX OPTIONS

501190

45250.38

504545

STOCK FUTURES

216975

14875.28

STOCK OPTIONS

140782

10894.43

OPEN INTEREST AT THE END OF THE DAY

No. of Amount in No. of Contracts Crores Contracts

Amount in Crores

NET AMOUNT

328968

27514.72

-985.4945

45532.14

894033

75856.08

-281.7658

208146

14281.02

1132704

79759.03

594.2573

145465

11221.69

123570

8385.27

-327.2656 -1000.2686

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

11145.00

11114.00

11062.00

11031.00

10979.00

BANKNIFTY

27275.00

27141.00

26906.00

26772.00

26537.00

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Special Report 24-July-2018

RECOMMENDATIONS GOLD TRADING STRATEGY: BUY GOLD AUG FUT ABOVE 30000 TGT 30100 30300 SL BELOW 29900 SELL GOLD AUG FUT BELOW 29850 TGT 29700 29500 SL ABOVE 29950

SILVER TRADING STRATEGY: BUY SILVER SEP FUTABOVE 38500 TGT 38700 39000 SL BELOW 38300 SELL SILVER SEP FUT BELOW 38000 TGT 38600 38300 SL ABOVE 38200

COMMODITY ROUNDUP Gold carved out some gains after testing fresh 12 month low as investor sentiment was rattled following a continued escalation in global trade worries. US President Donald Trump indicated that he is ready to impose tariffs on $500 billion worth of Chinese goods to the US if China does not comply on its trade policies noted media reports. Meanwhile, global mining major Newmont Mining Corp has announced the completion of the Northwest Exodus project in Nevada, according to media reports. This is likely to add between 50,000 and 75,000 ounces of gold production per year and lower Carlin's all-in sustaining costs by approximately $25 per ounce during the first five years of operation, Newmont stated. The underground infrastructure also provides exploration platforms for potential future supply growth. Newmont noted that the project is expected to extend the mine life from the Exodus underground operation in the Carlin North area for 10 years. COMEX Gold closed at $1232 per ounce, up 0.65% on the day. MCX Gold closed at Rs 29900 per 10 grams, almost unchanged on the day. Southern Silver Exploration Corp reported an expansion of the exploration program at the CLM West portion of its Cerro Las Minitas project in Durango, Mexico with the mobilization of a second core drill to begin the next phase of the current US$3 million, 2018 exploration program on the project. The second drill will focus on the discovery and delineation of major Ag-Au quartz vein systems within the more recently acquired CLM West claim. Southern Silver Exploration Corp. is a precious metals exploration and development company with a focus on the discovery of world-class mineral deposits in north-central Mexico and the southern USA. The Company engages in the acquisition, exploration and development either directly or through joint-venture relationships in mineral properties in major jurisdictions. Indian Copper was trading up due to bottom fishing in the session on Friday. Earlier in the week, Metals have sold-off over the past six weeks on concerns that an escalating trade conflict between China and the U.S. could hurt the global economy and dent demand for raw materials. This has seen the dollar surge, particularly against the yuan.Earlier Friday, China's central bank had weakened its daily reference rate for the currency by the most in two years, making imports more pricey for the top consumer of raw materials.

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Special Report 24-July-2018

RECOMMENDATIONS GUARGUM5 BUY GUARGUM OCT FUT ABOVE 9300 TGT 9370 9470 SL BELOW 8230 SELL GUARGUM OCT FUT BELOW 9150 TGT 9080 8980 SL ABOVE 9220

NCDEX INDICES Index

Value

% Change

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

1596 4555 4265 4913 1768.5 4249

0 0.2 -0.47 3 -1.7 -2.05

Jeera

19580

3.98

4216 3352 7388

-0.14 -1.12 0.74

Mustardseed Soy Bean Turmeric

USDA forecasts that China's soybean imports will increase to 100.5 MMT in MY18/19 from the estimated 97 MMT in MY17/18. This forecast, is 2.5 MMT lower than USDA's June forecast. Due to the combination of the moderate increase in domestic soybean production, together with the slowdown in growth of soybean meal use, a net growth of 3.5 MMT of soybean imports in MY18/19 is expected to meet the Chinese demand growth for protein meals. DHANIYA BUY DHANIYA AUG FUT ABOVE 4950 TGT 5000 5100 SL BELOW 4900 SELL DHANIYA AUG FUT BELOW 4850 TGT 4800 4700 SL ABOVE 4900

U.S. soybean exports to China continue to face strong competition from soybean exports from South America. Excessive soybean stocks and a fall in the soybean price in Brazil attributed to the 14.2 MMT of Brazilian soybean exports to China in the first half of MY17/18. This is significantly higher than the 5.2 MMT during the same period in MY16/17. Despite China's net growth of over 2 MMT of soybean imports in the first half of MY17/18, total soybean imports from the United States fell to 24.4 MMT in this period, down from the 31.6 MMT in the previous year. Chinese importers note that Brazilian soybeans have a one percent higher protein content than U.S. soybeans. Importers were previously willing to pay a slightly higher price for soybeans with a higher protein content, but with the drop in the price of Brazilian soybeans, exports are now surging As per official data, Ukraine supplied some 1 MMT of wheat to foreign markets in May 2017/18. This was down 10% from April (1.1 MMT) but up 2% from May 2016/17 (986.8 KMT). In July-May 2017/18, wheat exports totaled 16.3 MMT, or 3% less than in the same period in MY 2016/17. Ukrainian wheat shipments to the European Union and Indonesia grew substantially in the current season. In the period under review, exports to Indonesia increased to 2.1 MMT that was 31% more than in the whole of MY 2016/17.

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Special Report 24-July-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

68.5350 Yen

60.9625

Euro

80.3775 GBP

90.5900

USD/INR BUY USDINR ABOVE 68.90 TGT 69.20/69.50 SL BELOW 68.60 SELL USDINR BELOW 68.50 TGT 68.35/67.40 SL ABOVE 68.65

GBP/INR BUY GBPINR ABOVE 90.60 TGT 90.90/91.20 SL BELOW 90.30 SELL GBPINR BELOW 89.60 TGT 89.30/89.00 SL ABOVE 89.90

The rupee today staged an impressive rebound from lifetime low levels, surging by 21 paise to end at 68.84 against the US dollar on suspected the central bank's intervention to check volatility in currency markets. The sell-off in the rupee accelerated in early trade, with the local unit plunging to a new historic low of 69.13 before recouping losses. Suspected intervention by the Reserve Bank of India (RBI) through state-run banks and short-selling the dollar by some foreign banks predominantly triggered the recovery momentum. The US dollar has gained more than 5 per cent in the past three months on expectations the US central bank will keep raising interest rates in the coming months. The US Fed has raised interest rates five times since Trump took office in January 2017. Forex sentiment turned highly volatile initially tracking the Chinese yuan's fall to its weakest in more than a year, as a trade dispute between the world's two largest economies intensified. Most Asian currencies were trading flat to higher against the dollar. In the meantime, crude prices were little changed and set for a sharp weekly drop on concerns over oversupply and the ongoing trade conflict between the US and China. The benchmark Brent was trading at USD 72.55 a barrel in early Asian trade. Worrying development on escalation of trade conflict between the world's two biggest economic powers with the US President's latest salvo were largely weighed on the currency and financial markets worldwide with investors on edge awaiting the next developments. The response among major currencies, however, was fairly limited. The Chinese government retaliated immediately against US President Donald Trump's USD 34 billion tariff package with a simultaneous set of counter measures and accused Washington of starting "the largest trade war in history". The sudden fall in global crude oil prices is propping up more things than just the stocks of motor-fuel retailers. The rupee should retrace lost ground against the dollar if Saudi Arabia were to raise output further, triggering a meaningful slide in India's energy costs. “Lower crude prices will be a positive for the Indian economy at large and will reflect in the currency too,� said Vijay Santhanam, head of risk solutions group, Barclays India.

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Special Report 24-July-2018

Date

Commodity/ Currency Pairs

23/07/18

NCDEX DHANIYA

OCT

BUY

23/07/18

NCDEX DHANIYA

OCT

23/07/18

NCDEX GUARGUM5

23/07/18

Contract Strategy

Entry Level

Target

Stop Loss

Remark

4740

4800 4850

4700

TGT HIT

SELL

4600

4550 4500

4650

NOT EXECUTED

AUG

BUY

9135

8570 8670

8380

NOT EXECUTED

NCDEX GUARGUM5

AUG

SELL

8840

8300 8200

8510

NOT EXECUTED

23/07/18

MCX GOLD

AUG

BUY

29780

29810 29840

29750

OPEN

23/07/18

MCX GOLD

AUG

SELL

30630

30600 30570

30660

NOT EXECUTED

23/07/18

MCX SILVER

SEP

BUY

38540

39600 39650

38500

SL TRIGGERED

23/07/18

MCX SILVER

SEP

SELL

38120

38070 38020

38170

OPEN

Date

Scrip

CASH/ FUTURE/ OPTION

Strategy

Target

Stop Loss

Remark

23/07/18

NIFTY

FUTURE

BUY

11040-11060

12000-12050

11000

TGT HIT

23/07/18

SUNPHARMA

FUTURE

BUY

561-562

573-590

555

OPEN

23/07/18

YESBANK

FUTURE

SELL

385-384

380-375

388

SL TRIGGERED

23/07/18

CENTURYPLY

CASH

BUY

238.50-239

242-248

236

TGT HIT

Entry Level

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Special Report 24-July-2018

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

REPORT

PERIOD

ACTUAL

FORECAST

PREVIOUS

--

-0.15

TUESDAY, JULY 24

TUESDAY, JULY 24

--

55.4

WEDNESDAY, JULY 25

WEDNESDA Y, JULY 25

670,000

689,000

MONDAY, JULY 23 8:30 am

Chicago Fed national activity index

June 10 am

TUESDAY, JULY 24

TUESDAY, JULY 24

TUESDAY, JULY 24

9:45 am

Markit manufacturing PMI flash

July

TUESDAY, JULY 24

9:45 am WEDNESDA Y, JULY 25

WEDNESDAY, JULY 25

WEDNESD AY, JULY 25

10 am

New home sales

June

WEDNESDAY, JULY 25

THURSDAY, JULY 26 8:30 am

Weekly jobless claims

7/14

215,000

207,000

8:30 am

Durable goods orders

June

2.9%

-0.4%

8:30 am

Core capital equipment orders

June

--

0.3%

8:30 am

Advance trade in goods

June

-$69.1 bln

-$64.8bln

FRIDAY, JULY 27

FRIDAY, JULY 27

4.0%

2.0%

10 am FRIDAY, JULY 27

FRIDAY, JULY 27

8:30 am

Gross domestic product

FRIDAY, JULY 27 Disclaimer Q2

FRIDAY, JULY 27

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