Special-Report-26-JULY-Epic-Research-2018

Page 1

Special Report 26-July-2018

Global markets at a glance Wall Street rose on Wednesday as US President Donald Trump secured concessions from the European Union on trade, while a disappointing quarterly report from Facebook after the bell slammed its stock and threatened to put the brakes on a tech rally.The benchmark S&P 500 jumped more than half a percent in the last half-hour of trading on news of the concessions and closed at its highest level since Jan. 29. Trump said that the United States and the European Union had agreed to work toward eliminating tariffs on industrial goods and increasing US exports of liquefied natural gas and soybeans to Europe. Asian stocks edged higher on Thursday, taking comfort from gains on Wall Street after U.S. President Donald Trump and European Commission President Jean-Claude Juncker agreed to work toward eliminating trade barriers on industrial goods.In a news conference following a meeting between the two leaders on Wednesday, Trump said he and Juncker had agreed to work to lower industrial tariffs on both sides and to increase European imports of liquefied natural gas and soybeans from the United States, among other measures.The meeting helped to extend a rally in global stocks into its fourth day, as investors took heart from a rare piece of good news amid global concerns over trade. Previous day Roundup The NIfty after opening higher attempted many times to move near its earlier record high amid rangebound trade but failed to do so due to selling pressure at higher levels on Wednesday. The index ended flat with a negative bias ahead of expiry of July derivative contracts, forming bearish candle on the daily candlestick charts, which also resembles 'Spinning Top’ kind of pattern.Spinning Top is often regarded as a neutral pattern which suggests indecisiveness on the part of both bulls as well as bears. It can be formed in an uptrend as well as in a downtrend.The Nifty Midcap index also ended flat while the sectoral trend was mixed. The 30-share BSE Sensex managed to end at record closing high again, rising 33.13 points to 36,858.23. ]Index stats

The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[-7.40pts], Consumption[-24.20pts],PSE[-32.85pts],CPSE[8.10pts],Energy[-31.00pts],FMCG[-60.90pts],Auto[5 1 .35 pts],P harm a[ -7 9 .8 0 pts],IT[ -8 8 .55 pts],M etal [28.75pts],Realty[-3.75 pts], Fin Serv sector[65.15pts].

World Indices Index

Value

% Change

25,241.94

0.79

S&P500

2,816.50

-0.10

NASDAQ FTSE100

7,840.77 7,709.05

-0.01 0.69

22,620.27 28,892.11

0.49 0.77

DJI

NIKKEI HANG SENG

Top Gainers Company

CMP

Change

% Chg

271.85

5.00

1.87

6,949.50

121.80

1.78

Tata Steel

536.00

8.60

1.63

Adani Ports

398.75

6.15

1.57

2,000.85

25.30

1.20

CMP

Change

% Chg

NTPC Lupin HCL Tech Idea Cellular

151.00 796.95 964.30 54.90

-6.45 -24.00 -27.30 -1.50

-4.10 -2.92 -2.75 -2.66

Axis Bank

532.25

-13.85

-2.50

SBI Bajaj Finserv

HDFC

Top Losers Company

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

46.65

4.65

9.97

ASIANPAINT

1467.75

-21.55

-1.47

ASTRAZEN

1463.25

58.75

4.02

BAJAJFINSV

6827.7

122.3

1.79

708.7

-14.2

-2

ADANIGREEN

BANDHANBNK

Stocks at 52 Week’s LOW Symbol

8KMILES ABGSHIP ANKITMETAL ANTGRAPHIC BGLOBAL

Prev. Close

Change

%Chg

249.1 5.35 0.65 0.5 2.35

-12.45 0.25 -0.05 0 -0.1

-5 4.67 -7.69 0 -4.26

Indian Indices Company

CMP

Change

% Chg

NIFTY

11132.00

-2.30

-0.02

SENSEX

36858.23

33.13

0.09

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Special Report 26-July-2018

RECOMMENDATIONS [FUTURE] 1.AUROPHARMA [FUTURE ] From the daily chart it is clear that the particular counter of pharma sector had reversed from its crucial resistance level of 600, the trend is looking down Around the levels of 600, it has made a bearish engulf candle which is covering the previous day body so we advice to sell auropharma future near the levels of 583-580 for the targets of 574-564 sl above 590.

2.HINDZINC [FUTURE]

From the daily chart its clear that after moving in continuos downtrend the particular script has got a support at its important level of 265and 272 it has shown a reversal from its lower levels and closed just below its resistance level of 28.75 from here a chance of breakout can be found, so we advice to buy hindzinc around the levels of 283.90-284.50 for the targets of 288-292 with stoploss below 280.

STOCK RECOMMENDATION [CASH] ACE [CASH] As per the daily chart this counter is showing weakness at its upper level around 143 here we can a chance of reversal due to its overbought condition also it has made a spinning top candle at this level, so we advice you to SELL ACE around 137-136.50 for the targets of 133-127 with stoploss above 140.

MACRO NEW  Nifty Futures on the Singaporean exchanges were trading strong, with the index inching towards 11,200, pointing to a possible fresh record high. As of 10 am Singapore Time, the futures were trading at 11,171, up 39 points and had clocked an intraday high of 11,194.  The market will watch out for all the action from earnings front as 62 companies will be declaring their June quarter earnings. Among the key ones to watch out will be Bharti Airtel, Biocon, Colgate, Dr Reddy’s Labs, Eveready Industries, ITC, Maruti Suzuki, NIIT, Quess Corp, SBI Life Insurance, Tata Coffee, Tata Power, and Yes Bank.  Reversing its two-session slide, the rupee rebounded by 15 paise today to end at a fresh one-week high of 68.79 against the US dollar on bouts of greenback selling by exporters and corporates. The forex market witnessed a highly volatile session, with the home currency falling initially before staging a comeback.The upbeat trend was supported by unwinding of long dollar positions by speculators and local banks in view of subdued overseas cues, even as Dalal Street's record-breaking run continued for the third straight day.  The initial public offer of HDFC Asset Management Company has been fully subscribed on the first day Wednesday.

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Special Report 26-July-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION

Larsen & Toubro: Q1 profit jumps 36.1 percent to Rs 1,215 crore versus Rs 892.5 crore; revenue increases 18.8 percent to Rs 28,283 crore versus Rs 23,811 crore (YoY).

3,76,035

11,00,720  6,90,640

6.5

3,62,311

32,18,325

Hero MotoCorp: Q1 profit falls 0.5 percent to Rs 909.2 crore versus Rs 914 crore; revenue rises 10.4 percent to Rs 8,809.8 crore versus Rs 7,980.5 crore (YoY).

11,100

44.9

2,85,615

CE

27,300

14

2,38,343

16,67,475 NIFTY FUTURE 6,80,840

RELIANCE

CE

1,120

4.9

10,677

20,02,000

SBIN

CE

270

2.5

10,629

37,41,000

JUBLFOOD

CE

1,500

3.4

10,278

7,51,500

Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

BANKNIFTY

CE

27,200

29.5

4,30,187

BANKNIFTY

CE

27,100 56.75

NIFTY

CE

11,200

NIFTY

CE

BANKNIFTY

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

Optio Strike n Price Type

NIFTY

Open Interest

2,83,500

LTP

Traded Volume (Contracts)

Open Interest

PE

11,100 18.95

3,47,602

25,90,275

BANKNIFTY

PE

26,900

38

3,35,280

NIFTY

PE

11,000

4.1

2,58,955

BANKNIFTY

PE

26,800

20

2,55,087

RELIANCE

PE

1,100

2.25

7,474

JUBLFOOD

PE

1,400

33.8

6,237

INFY

PE

1,360

2.1

5,276

TATASTEEL

PE

520

0.95

4,335

7,61,240 Yesterday Nifty future was struggling to break its 49,78,275 important resistance level of 11160, in the early trading session it managed to go above this level but could not 8,53,400 sustain above it, in the lower side there are multiple 21,38,000 support levels at 11108 and 11070 from were we can get 1,76,000 chance of reversal so we advice to buy nifty future around the levels of 11100-11110 for the target of 11150 4,76,400 -11200 with strict stop loss of 11050. 11,16,172

FII DERIVATIVES STATISTICS BUY

SELL

No. of Contracts

Amount in Crores

INDEX FUTURES

100587

8632.01

100603

8667.34

INDEX OPTIONS

741421

68883.11

743902

STOCK FUTURES

447480

30336.20

STOCK OPTIONS

104356

7341.40

OPEN INTEREST AT THE END OF THE DAY

No. of Amount in No. of Contracts Crores Contracts

Amount in Crores

NET AMOUNT

348860

29522.94

-35.3332

69131.40

887701

76167.75

-248.2937

437306

29864.59

1138670

82486.68

471.6029

109327

7674.68

120051

8368.54

-333.2818 -145.3058

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

11178.00

11155.00

11134.00

11111.00

11090.00

BANKNIFTY

27149.00

27090.00

27014.00

26955.00

26879.00

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Special Report 26-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 ABOVE 38700 TGT 38900 39200 SL BELOW 38500 SELL SILVER SEP BELOW 38300 TGT 38100 37800 SL ABOVE 38500

COMMODITY ROUNDUP Gold is widely advocated by financial analysts as one of the major safe harbors for worried investors as the world has to move from an international monetary system dominated by the US dollar to a multi-polar currency system.Gold will remain a crucial component of diversified portfolios, as a hedge against potential corrections across asset classes. It is liquid and has neither credit nor default risk. The inescapable conclusion is that the only viable alternative asset for official reserves is physical gold, as it alone has the requisite liquidity, correlation characteristics, and trust. Central banks seeking true risk diversification or insurance, therefore, should increase their gold holdings.Gold is almost never a ‘buy’ when it is both loved by the gold “community” and the cyclical backdrop is positive. It is almost always a ‘buy’ when it is hated by the gold “community” and the cyclical backdrop is counter, bleak and/or not inflationary.Data from the Commodity Futures Trading Commission showed speculators significantly expanded net short positions — bets the price will fall — to 26,400 contracts in the week to July 17, not far off the late 2015 record high. Extreme positioning is often seen as a contrarian indicator. Speculative market participants often behave in a very cyclical fashion, and in the past such extreme positioning has frequently been an indicator of a pronounced counter-movement in the near future. Very negative market positioning at the end of 2015 was followed by a surge in the gold price of roughly $300 in the first half of 2016. Oil prices rose for a second day on Wednesday after industry group data showed U.S. crude inventories fell more than expected last week, easing worries about oversupply that had dragged on markets in recent sessions.Brent crude LCOc1 was up 29 cents, or 0.4 percent, at $73.73 a barrel by 0035 GMT. The global benchmark settled 38 cents higher at $73.44 a barrel on Tuesday, after climbing as high as $74.U.S. West Texas Intermediate CLc1 rose 22 cents, or 0.3 percent, to $68.74, having settled the previous session up 63 cents, or nearly 1 percent.Reports that China will increase infrastructure spending also helped reduce concerns that U.S.-China trade tensions will dent the country's demand for oil. crude and fuel stockpiles dropped more than expected last week, industry group the American Petroleum Institute said on Tuesday.Crude inventories fell by 3.2 million barrels in the week to July 20 to 407.6 million barrels, compared with analyst expectations for a decrease of 2.3 million barrels.Distillate fuels stockpiles, which include diesel and heating oil, fell by 1.3 million barrels, compared with expectations for a 207,000-barrel gain.

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Special Report 26-July-2018

RECOMMENDATIONS GUARGUM5 BUY GUARGUM OCT FUT ABOVE 8940 TGT 9000 9150 SL BELOW 8880 SELL GUARGUM OCT FUT BELOW 8730 TGT 8680 8780 SL ABOVE 8800

NCDEX INDICES Index

Value

% Change

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

1607 4509 4180 5060 1795 4175

0.47 -0.92 -2.38 2.99 1.21 -2.00

19720

0.72

4162 3347 7354

-1.47 -0.39 -0.86

Jeera 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 OCT FUT ABOVE 5050 TGT 5100 5200 SL BELOW 5000 SELL DHANIYA OCT FUT BELOW 4940 TGT 4890 4790 SL ABOVE 4990

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 26-July-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

68.8275 Yen

63.9375

Euro

80.5000 GBP

90.5375

USD/INR BUY USDINR ABOVE 69.20 TGT 69.50/69.80 SL BELOW 68.90 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 retreated from early high levels to close down with a modest loss of 2 paise at 68.86 against the US currency on stray dollar demand from importers. The home currency initially reacted positively to the GST Council's decision to cut rates on several items and also tracking broad weakness in the dollar. It touched a high of 68.65 in early trade before slipping back toward the tail-end trade. Consistent unwinding by foreign investors on growing expectations of Fed rate hike kept home currency under pressure, a dealer said. Overall, forex sentiment remained fragile in the face macro challenges coupled with tense trade relations between the US and major economies and expectations that the Federal Reserve will raise interest rates further this year. The Indian rupee had hit its life-time low of 69.13 a dollar last Friday. Oil prices too inched up today after tensions worsened between Iran and the US. The Brent crude rising 66 cents to USD 73.73 per barrel and West Texas Intermediate gaining 27 cents to USD 68.53 per barrel. Foreign investors remained net investors in stock markets as they bought equities worth Rs 259 crore on net basis today. Domestic bourses maintained their bullish momentum for the second-straight session with the flagship BSE Sensex ending at a historic closing high driven by optimistic corporate earnings as well as strong buying from investors. The rupee resumed higher at 68.70 against weekend close of 68.84 at the Interbank Foreign Exchange (forex) market on increased selling of the American currency by exporters and banks. The local currency dropped to a low of 68.87 before settling at 68.86, showing a loss of 2 paise. The Financial Benchmarks India private limited (FBIL), meanwhile, fixed the reference rate for the dollar at 68.7040 and for the euro at 80.5619. The bond market also witnessed fresh selling and the 10-year benchmark yield end at higher at 7.81 per cent. The bond market also witnessed fresh selling and the 10-year benchmark yield end at higher at 7.81 per cent. In the cross currency trade, the rupee continued to lose ground against the pound sterling to finish at 90.50 per pound from 89.80 and dropped against the euro to end at 80.68 as compared to 80.25. It also slumped further against the Japanse yen to close at 62.00 per 100 yens from 61.26 earlier.

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Special Report 26-July-2018

Date

Commodity/ Currency Pairs

25/07/18

NCDEX DHANIYA

OCT

BUY

25/07/18

NCDEX DHANIYA

OCT

25/07/18

NCDEX GUARGUM5

25/07/18

Contract Strategy

Entry Level

Target

Stop Loss

Remark

5120

5170 5270

5020

TGT HIT

SELL

5040

4990 4900

5100

NOT EXECUTED

AUG

BUY

9150

9220 9320

9080

NOT EXECUTED

NCDEX GUARGUM5

AUG

SELL

8950

8870 8770

9020

TGT HIT

25/07/18

MCX GOLD

AUG

BUY

30000

30100 30300

29900

NOT EXECUTED

25/07/18

MCX GOLD

AUG

SELL

29850

29700 29500

29950

SL TRIGGERED

25/07/18

MCX SILVER

SEP

BUY

38700

38900 39200

25/07/18

MCX SILVER

SEP

SELL

38300

Date

Scrip

CASH/ FUTURE/ OPTION

Strategy

25/07/18

NIFTY

FUTURE

BUY

38500

OPEN

38100 37800

38500

NOT EXECUTED

Entry Level

Target

Stop Loss

Remark

11070-11090

11140-11190

11020

NOT EXECUTED

25/07/18

AUROPHARMA

FUTURE

SELL

600-601

594-590

604

NOT EXECUTED

25/07/18

SREINFRA

FUTURE

BUY

51.55-70

54-56

49

NOT EXECUTED

25/07/18

IBREALEST

CASH

BUY

161-162

165-170

160

SL TRIGGERED

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Special Report 26-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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