Special report-24-october-2018-epic-research

Page 1

Special Report 24-Oct-2018

Global markets at a glance US stocks fell on Tuesday after worries about the earnings outlook added to recent selling pressure, though major indexes ended well off the day's lows as investors snapped up beaten-down shares late in the session. Shares of Caterpillar tumbled 7.6 percent after the heavyequipment maker maintained its 2018 earnings forecast, following forecast increases in the previous two quarters. 3M Co slid 4.4 percent after cutting its full-year profit outlook due to foreign currency-related challenges. That reignited worries over the impact of rising borrowing costs, wages and tariffs on corporate profits and caused S&P industrial stocks to slide 1.6 percent.Along with worries over profit growth, concerns over the upcoming U.S. mid-term elections and Italy's budget have also sent investors scrambling out of stocks. The S&P 500 energy index fell 2.7 percent, the most of any sector, as oil prices plunged after Saudi Arabia said it could supply more crude quickly if needed. Investors trimmed most of the losses in afternoon trading as some thought the losses were overdone. Technical buying at support levels around 2,700 on the S&P 500 also helped stocks to bounce back, strategists said. Asian stocks edged lower on Wednesday as concerns, ranging from worries about US corporate earnings to Middle East tensions, weighed on sentiment while crude oil approached two-month lows after Saudi Arabia flagged possible supply increases. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.2 percent, extending the decline of more than 2 percent in the previous session. Global stocks have suffered this week on worries about US earnings, Italian government finances, US trade tensions and mounting pressure on Saudi Arabia over the death of dissident journalist Jamal Khashoggi. PREVIOUS DAY ROUNDOFF The index made a small bullish candle and formed 'Long Legged Doji' pattern on the daily candlestick charts. The Nifty50 after the gap down opening traded range bound and extended losses in the second half of the session to hit an intraday low of 10,102.35. The index managed to recover some losses in late trade but still closed 98.50 points lower at 10,146.80.India VIX fell sharply by 10.87 percent at 19.03. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[-39.00pts], Consumption[-43.15pts],PSE[8.60pts],CPSE[ 0.40pts],Energy[-49.70pts],FMCG[-316.95pts],Auto[51.30pts],Pharma[-278.40pts],IT[-406.70pts],Metal[26.90pts],Realty[0.35 pts], Fin Serv sector[-14.35pts].

World Indices Index

Value

% Change

DJI

25,191.40

-0.50

S&P500

2,740.69

-0.55

NASDAQ FTSE100

7,118.67 6,955.21

-0.32

-1.24

22,124.93 25,565.67

0.52 0.86

NIKKEI HANG SENG

Top Gainers Company

CMP

Change

% Chg

HPCL

217.90

7.30

3.47

Indiabulls Hsg

734.65

21.50

3.01

HDFC

1,686.75

28.45

1.72

IndusInd Bank

1,473.15

23.70

1.64

Bajaj Auto

2,586.50

29.60

1.1

CMP

Change

% Chg

Asian Paints Sun Pharma Wipro Grasim

1,138.45 575.85 309.10 825.95

-61.95 -31.05 -13.10 -31.40

-5.16 -5.12 -4.07 -3.66

UltraTechCement

3,343.65

-119.60

-3.4

Top Losers Company

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

0.3

0.05

16.67

999.99

0

0

9.55

0.45

4.71

KSB

731.5

-21.5

-2.94

LIQUIDETF

1000

0

0

BLUECHIP ICICILIQ JAINSTUDIO

Stocks at 52 Week’s LOW Symbol

3IINFOTECH 5PAISA 8KMILES AAVAS ABCAPITAL

Prev. Close

Change

%Chg

3.25 186.3 103.05 678.4 100.05

-0.05 -7.35 -5.15 -47.35 -3.05

-1.54 -3.95 -5 -6.98 -3.05

Indian Indices Company

CMP

Change

% Chg

NIFTY

10146.80

-98.50

-0.96

SENSEX

33847.23

-287.15

-0.84

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Special Report 24-Oct-2018

RECOMMENDATIONS [FUTURE] 1.DIVISLAB [FUTURE ] Yesterday the pharma sector showed a major negative trend from the initial session of the market. From the daily chart divislab is making a clear head and shoulder pattern respecting its nearest support level of 1240. Since few months the market is showing excess volatility in the starting session so it would be better to trade this stock if it maintains its level around 1240-1235 in the first hour of the market so we advice you to sell divislab future around 12381235 for the targets of 1220-1200 with stoploss above 1255.

2.M&M [FUTURE] In the yesterday trading session the stock broke its crucial support level of 725 but due to market volatility it regained its losses and closed with a bullish doji candle above it. From here we can get an early sign of reversal so it would be better to follow buy on dip strategy around 728-730 for the targets of 740-750 with stoploss below 720.

STOCK RECOMMENDATION [CASH] UJJIVAN - [CASH] The particular stock is continuously breaking its important support levels day by day. Yesterday it broke its life time low of 216.65 but closed above it due to market volatility. The stock has a tendency to show initial upside movement and rebounds from its nearest resistance level so it would be better to wait for an hour to trade on this stock. Our suggestion is to short ujjivan around 214-212 for the targets of 208-200 with stoploss above 218.

MACRO NEW  Trends on SGX Nifty indicate a positive opening for the broader index in India, a gain of 55 points or 0.54 percent. Nifty futures were trading around 10,227level on the Singaporean Exchange.  Oil prices on Tuesday extended falls from the previous day, when crude slumped as much as 5 percent, after Saudi Arabia said it would make up for supply disruptions from US sanctions targeting Iran’s petroleum exports from next month.Front-month Brent crude oil futures were at $76.37 a barrel at 0031 GMT, 7 cents below their last close. US West Texas Intermediate (WTI) crude futures were at $66.31 a barrel, 12 cents below their last settlement.  The Reserve Bank will infuse liquidity into the market by purchasing government bonds of around Rs 12,000 crore in an auction on October 25. "Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the Reserve Bank has decided to conduct purchase of the government securities under Open Market Operations for an aggregate amount of Rs 120 billion on October 25, 2018," RBI said in a release.  National Stock Exchange of India (NSE) said it has got regulatory approval to launch copper large futures contract with a trading unit of 25 tonne.

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Special Report 24-Oct-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION

Ambuja Cements Q3: Profit falls 34.4 percent to Rs 178.6 crore versus Rs 272.4 crore; revenue rises 12.6 percent to Rs 2,613.9 crore versus Rs 2,321.8 crore YoY.

22,03,125  26,50,950

Bajaj Corp Q2: Profit rises to Rs 51.65 crore versus Rs 50.71 crore; revenue increases to Rs 212.72 crore versus Rs 204.13 crore YoY.

Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

NIFTY

CE

10,200

63.8

4,32,329

NIFTY

CE

10,300

24.6

4,25,563

BANKNIFTY

CE

25,200 130.45

3,14,019

6,46,880

BAJFINANCE

CE

2,200

33

14,579

5,55,000

RELIANCE

CE

1,060

13.9

12,563

10,22,000

RELIANCE

CE

1,080

5.85

12,523

15,29,000

RELIANCE

CE

1,100

2.55

10,875

35,20,000

SBIN

CE

270

0.6

8,304

39,90,000

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

Open Interest

NIFTY FUTURE

2,83,500

Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

Open Interest

NIFTY

PE

10,100

42.2

4,06,405

21,64,350

NIFTY

PE

10,000 20.35

4,05,567

BANKNIFTY

PE

24,500 50.15

3,29,619

RELIANCE

PE

1,040

5.9

10,046

RELIANCE

PE

1,020

2.5

7,286

BAJFINANCE

PE

2,000

18

6,297

ASIANPAINT

PE

1,100

5

6,030

RELIANCE

PE

1,000

1.2

5,996

The index made a small bullish candle and formed 'Long 36,66,075 Legged Doji' pattern on the daily candlestick charts. The 8,61,080 Nifty50 after the gap down opening traded range bound and extended losses in the second half of the session to 9,99,000 hit an intraday low of 10,102.35. The index managed to 9,02,000 recover some losses in late trade but still closed 98.50 2,97,000 points lower at 10,146.80, so we advice you to buy nifty future around 10190-200 for the targets of 10250-300 1,94,400 with stoploss below 10130. 14,98,000

FII DERIVATIVES STATISTICS BUY

SELL

No. of Contracts

Amount in Crores

INDEX FUTURES

97249

7962.52

90663

7437.56

INDEX OPTIONS

1303345

114330.74

1292493

STOCK FUTURES

505205

30749.93

STOCK OPTIONS

132030

9280.48

OPEN INTEREST AT THE END OF THE DAY

No. of Amount in No. of Contracts Crores Contracts

Amount in Crores

NET AMOUNT

278453

21527.84

524.9607

113388.73

1078190

85240.07

942.0101

499826

30400.41

1352690

85008.72

349.5161

130636

9125.34

141875

9108.72

155.1423 1971.6292

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

10276.00

10211.00

10156.00

10091.00

10036.00

BANKNIFTY

25300.00

25136.00

24960.00

24796.00

24620.00

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Special Report 24-Oct-2018

RECOMMENDATIONS GOLD TRADING STRATEGY: BUY GOLD DEC FUT ABOVE 31920 TGT 32000 32050 SL BELOW 31850 SELL GOLD DEC FUT BELOW 31850 TGT 31800 31750 SL ABOVE 31900

SILVER TRADING STRATEGY: BUY SILVER DEC FUT ABOVE 38910 TGT 38950 39000 SL BELOW 38850 SELL SILVER DEC FUT BELOW 38650 TGT 38600 38550 SL ABOVE 38700

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 24-Oct-2018

RECOMMENDATIONS GUARGUM5 TRADING STRATEGY: BUY GUARGUM OCT ABOVE 10150 TARGET 10200 10250 SL 10100 SELL GUARGUM OCT BELOW 10050 TARGET 10000 9950 SL 10100

NCDEX INDICES Index

Value

% Change

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

1895 5416 4118 5650 1819 4669

-0.05 0.82 -0.91 -1.24 1.31 0.48

19930

-0.4

4200 3237 6616

-0.45 0.34 0.15

Jeera Mustardseed Soy Bean Turmeric

DHANIYA TRADING STRATEGY: BUY CORIANDER OCT ABOVE 5670 TARGET 5700 5750 SL 5620 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 24-Oct-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

73.7818 Yen

65.6200

Euro

84.4743 GBP

95.5568

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 96.50 TGT 97.00/97.50 SL BELOW 96.00 SELL GBPINR BELOW 95.50 TGT 95.00/94.50 SL ABOVE 96.00

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 24-Oct-2018

Date

Commodity/ Currency Pairs

23/10/18

NCDEX DHANIYA

SEP

BUY

23/10/18

NCDEX DHANIYA

SEP

23/10/18

NCDEX GUARGUM5

23/10/18

Contract Strategy

Entry Level

Target

Stop Loss

Remark

5750

5800 5850

5700

TARGET HIT

SELL

5600

5550 5500

5650

NOT EXECUTED

OCT

BUY

10050

10100 10150

10000

TARGET HIT

NCDEX GUARGUM5

OCT

SELL

9750

9700 9650

9800

NOT EXECUTED

23/10/18

MCX GOLD

OCT

BUY

31920

32000 32050

31850

TARGET HIT

23/10/18

MCX GOLD

OCT

SELL

31850

31800 31750

31900

NOT EXECUTED

23/10/18

MCX SILVER

SEP

SELL

38830

38580 38650

38780

TARGET HIT

23/10/18

MCX SILVER

SEP

BUY

38910

38950 39000

38850

SL TRIGGERED

Date

Scrip

CASH/ FUTURE/ OPTION

Strategy

Entry Level

Target

Stop Loss

Remark

23/10/18

NIFTY

FUTURE

BUY

10190-200

10250-300

10130

SL TRIGGERED

23/10/18

M&M

FUTURE

SELL

731-728

720-710

740

OPEN

23/10/18

IRB

FUTURE

SELL

119-118

115-110

122

SL TRIGGERED

23/10/18

HDFCLIFE

CASH

SELL

358-350

370

IN PROFIT

365-363

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Special Report 24-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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