Special report-26-nov -2018-epicc-research

Page 1

Special Report 26-Nov-2018

Global markets at a glance US stocks closed lower in a shortened post-holiday trading session on Friday as the energy sector tumbled on continued weakness in oil prices, and the benchmark S&P 500 confirmed its second correction of 2018.The three major US indexes all fell well over 3 percent for the week, with the Dow industrials and the Nasdaq posting their biggest weekly percentage declines since March.The S&P 500 ended about 10.2 percent down from its September 20 closing record high, confirming it had entered a correction.

World Indices Index

Value

% Change

DJI

24470

+0.7

S&P500

2649.93

+0.30

NASDAQ

6972.25

+0.91

FTSE100

7050.23

+1.45

21507.54 25971.47

-0.35 +0.58

NIKKEI HANG SENG

Top Gainers Company

The S&P last entered a correction earlier this year after posting a then record high in late January, and falling more than 10 percent by early February. That correction lasted roughly seven months, until the index posted a fresh record high in late August.On Friday, the S&P 500 energy sector fell 3.3 percent, dragged down by another plunge in oil prices, amid fears of a supply glut even as major producers consider cutting output. Oil prices have plunged some 30 percent since the start of October. Aside from energy, declines in Apple and Amazon weighed on the S&P 500, underscoring the drop in technology and internet stocks that has marked this latest swoon in equities. PREVIOUS DAY ROUNDOFF Indian equities settled with losses for third day in a row weighed by slide in ICICI Bank, Reliance Industries and HDFC Bank. The Sensex settled below the psychological 35,000 level after sliding below that level in late trade. Metal and mining stocks declined. Realty stocks fell.The Nifty 50 index lost 73.30 points or 0.69% at 10,526.75. The index hit high of 10,646.25 and low of 10,512 in intraday trade.Intraday volatility was high. Stocks drifted higher in early trade as buying resumed in the market after a twoday slide. Key benchmark indices extended gains in morning trade. Indices trimmed gains in mid-morning trade. Indices hovered in a small range with positive bias in early afternoon trade. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[-1.42pts], Consumption[-0.79pts],PSE[-1.18pts],CPSE[— 1.45pts],Energy[ -1.03pts],FMCG[-0.50pts],Auto[— 0.62pts],Pharma[-0.78pts],IT[-0.31pts],Metal[1.77pts],Realty[-1.35pts], Fin Serv sector[-0.65pts].

CMP

Change

% Chg

Zee Entertain

458.85

20.15

4.59

Adani Ports

368.15

6.9

1.91

Larsen

1,410.15

8.05

0.57

ONGC

152.25

0.5

0.33

HDFC

1,873.70

5.55

0.3

CMP

Change

% Chg

746.1 138.25 843.35 3,950.40 218.1

-23 -3.35 -20.4 -93.4 -5.05

-2.99 -2.37 -2.36 -2.31 -2.26

Top Losers Company

M&M IOC Grasim UltraTechCement Hindalco

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

1436.15

17.85

1.24

ADANIGAS

97.05

13.8

14.22

BIRLACABLE

221.15

-5.7

-2.58

ELECTROSL

31.55

1.55

4.91

LIQUIDETF

1000.01

0

0

AARTIIND

Stocks at 52 Week’s LOW Symbol

Prev. Close

Change

%Chg

ABGSHIP

2.55

-0.05

-1.96

ADHUNIK

2.7

-0.1

-3.7

41.1 2.6 0.5

-2.05 -0.1 0

-4.99 -3.85 0

AIFL ALCHEM ANTGRAPHIC

Indian Indices Company

CMP

Change

% Chg

NIFTY

10526.75

-73.30

-0.69

SENSEX

34981.02

-218.78

-0.62

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Special Report 26-Nov-2018

RECOMMENDATIONS [FUTURE] 1. Amarraja Battery FUTURE ] On daily chart we have seen that stock is forming bearish candle. In last trading session a large bearish candle form with strong volume . After analysis of derivative data its indicate that traders view is to sell the stock . Our recommendation is to sell stock future from 710 Target 700/690 Sl 720 .

STOCK RECOMMENDATION [CASH] Amar Raja Battery [CASH] On daily chart we have seen that stock is forming bearish candle. In last trading session a large bearish candle form with strong volume . After analysis of derivative data its indicate that traders view is to sell the stock . Our recommendation is to sell stock future from 710 Target 700/690 Sl 720

2. KPIT [FUTURE] On daily chart we have seen that stock is approching towards its major support level of 194-192 . Profit boking we have seen in last trading session . After analysis of derivative data its indicate that traders view is to short the stock . Our recommendation is also sell the stock in the range of 200 target 195/190 Sl 205

MACRO NEWS 

Revised and simpler tax return forms as well as lower refunds will likely boost revenue collection from Goods and Services Tax (GST), which the government expects to touch to Rs 1.5 lakh crore every month from the next financial year (2019-20).“GST collections should be around Rs 1.5 lakh crore per month from next year. New return form will also help in tax evasion,” a senior government official told .

US stocks closed lower in a shortened post-holiday trading session on Friday as the energy sector tumbled on continued weakness in oil prices, and the benchmark S&P 500 confirmed its second correction of 2018.The three major US indexes all fell well over 3 percent for the week, with the Dow industrials and the Nasdaq posting their biggest weekly percentage declines since March.

Country's third largest software company HCL Technologies and NBFC major Bajaj Finance will be included in the 30-share BSE Sensex effective December 24, 2018.Wipro and Adani Ports will be excluded from the index on the same day.

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Special Report 26-Nov-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION Symbol

Optio Strike n Price Type

LTP

BANKNIFTY

CE

26,300

0.05 23,30,867

BANKNIFTY

CE

26,200

0.05 21,63,915

BANKNIFTY

CE

26,400

0.05 21,16,430

RELIANCE

CE

1,140

3.2

13,609

22,10,500

RELIANCE

CE

1,120

6.95

11,828

14,78,500

MARUTI

CE

7,500

RELIANCE

CE

1,160

MARUTI

CE

7,600

MARUTIACTIVE PUT CE OPTION 9,000 MOST Symbol

Optio Strike n Price Type

Traded Volume (Contracts)

Open Interest

Adani Enterprises: Company incorporated a wholly owned subsidiary namely, Mundra Copper Limited.

14,38,660 Brent crude futures fall below $59/barrel: IOC, HPCL, BPCL, Jet Airways, SpiceJet, InterGlobe Aviation, Shalimar 14,64,240 Paints, Apollo Tyres, MRF, Ceat, Asian Paints, Nerolac 17,16,180 Paints etc may see some rally. NIFTY FUTURE

2,01,375 Nifty 50 on Tuesday Strong Selling pressure in market . Nifty broke the pivot support of 10550 . Profit booking 1.55 7,382 24,04,500 shown in th market in last three trading session .Our 25.95 7,075 1,24,800 recommendation is to Buy the nifty future in range of 10480 Target 10520/10540 SL 10440. Next major 111.5 5,823 2,83,500 support level in the range of 10440 & we still bullish on LTP Traded Open nifty from the lower level .Buy on dips strategy . 50

10,147

Volume (Contracts)

Interest

BANKNIFTY

PE

26,100

92.5

29,88,228

15,960

BANKNIFTY

PE

26,000

0.35

28,78,343

6,46,440

BANKNIFTY

PE

26,200 199.85

18,97,667

32,120

RELIANCE

PE

1,100

13.6

11,054

8,59,500

RELIANCE

PE

1,080

6.75

5,324

6,76,000

MARUTI

PE

7,300 60.95

4,407

63,225

RELIANCE

PE

1,120

25.7

4,389

6,73,500

TATASTEEL

PE

540

7.1

4,375

8,06,360

FII DERIVATIVES STATISTICS BUY No. of Contracts

SELL Amount in Crores

OPEN INTEREST AT THE END OF THE DAY

No. of Amount in No. of Contracts Crores Contracts

INDEX FUTURES

57826

3526.33

28634

INDEX OPTIONS

2271697

127727.92

STOCK FUTURES

143977

8199.27

148711

STOCK OPTIONS

135875

7756.18

137480

Amount in Crores

NET AMOUNT

1925.74

431739

32936.57

1600.5808

2244112 126123.40

1056066

76394.52

1604.5222

8487.84

1443785

83330.99

-288.5684

7846.45

176448

10384.37

-90.2695 2826.2651

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

10691.23

10607.87

10562.83

10479.47

10434.43

BANKNIFTY

26442.07

26220.64

26102.47

25881.04

25762.87

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Special Report 26-Nov-2018

RECOMMENDATIONS GOLD TRADING STRATEGY: BUY GOLD ABOVE 30580 TGT 30630 30680 SL BELOW 30450 SELL GOLD BELOW 30450 TGT 30420 30360 SL ABOVE 30580

COMMODITY ROUNDUP Oil prices renewed their fall on Friday, pressured by concerns that producers are churning out more oil than the world needs amid a bleak economic outlook.Markets were offered some support by an expectation that the Organization of the Petroleum Exporting Countries (OPEC) producer group will start withholding supply in 2019 to rein in any glut.U.S. West Texas Intermediate (WTI) crude futures CLc1 slumped by around 2.5 percent from their last close, down $1.34 to $53.29 per barrel at 0333 GMT.International benchmark Brent crude oil futures LCOc1 were at $61.82 per barrel, down 78 cents, or 1.3 percent amid thin trading due to a holiday in Japan. The divergence between U.S. and international crude comes as surging North American supply is clogging the system and depressing prices there, while global markets are somewhat tighter - in part because of reduced exports from Iran due to newly imposed U.S. sanctions. however, global oil supply has surged this year, with the top-three producers of the United States, Russia and Saudi Arabia pumping out more than a third of global consumption, which stands around 100 million barrels per day (bpd).

SILVER TRADING STRATEGY: BUY SILVER ABOVE 36250 TGT 36320 36380 SL BELOW 36100 SELL SILVER BELOW 36000 TGT 35950/35870 SL ABOVE 36150

High production comes as the demand outlook weakens on the back of a global economic slowdown. prices have plunged by around 30 percent since their last peaks in early October, as global production started to exceed consumption in the fourth quarter of this year, ending a period of undersupply that started in the first quarter of 2017, according to data in Refinitiv Eikon.Adjusting to lower demand, top crude exporter Saudi Arabia said that it may reduce supply."We will not sell oil that customers don't need," Saudi Energy Minister Khalid al-Falih said. Saudi Arabia is pushing OPEC to cut oil supply by as much as 1.4 million bpd to prevent a supply glut. group officially meets on Dec. 6 to discuss its supply policy.U.S. bank Morgan Stanley said it saw "a far greater probability that OPEC reaches an agreement to balance the market in 2019" than not, adding that this would likely support oil prices "in the high-$50s, at least near term.".

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Special Report 26-Nov-2018

RECOMMENDATIONS GUARGUM5 TRADING STRATEGY: BUY GUARGUM DEC ABOVE 9200 TARGET 9215/9235/9250 SL 9140 SELL GUARGUM ABOVE DEC 9130 TARGET 9115/9100/9070 SL 9200

NCDEX INDICES Index

Value

% Change

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

1862 5688 4652 6618 1930.5 4513.5

0.16 -0.39 0.69 -2.77 0.39 -2.27

Jeera

19760

-1.57

4080 3410 6478

0.02 0.12 0

Mustardseed Soy Bean Turmeric

DHANIYA TRADING STRATEGY: BUY DHANIYA DEC ABOVE 6280 TARGET 6310/6350/6380 SL 6200 SELL DHANIYA DEC ABOVE 6190 TARGET 6175/6150/6130 SL 6270

The yield on the benchmark 10-year government security will trade in a relatively wide range of 7.6-8 per cent till December, a report said Thursday. The benchmark g-sec is trading at between 7.7-7.75 per cent at present, domestic rating agency Icra said. It said the yield will be influenced by various factors including crude oil prices, the evolving balance of various fiscal risks, likelihood of revision in governments market borrowing in Q4, magnitude of open market operatiion In the report, the agency said price of the Indian crude oil basket is likely to remain considerably lower in the immediate term than the average of USD 80 per barrel in October 2018. It attributed this expectation to factors like exemptions from US sanctions on Iran for India and seven other jurisdictions. However, factors like supplydemand balances, the evolving scenario related to geopolitical developments, and the extent of concerns regarding the impact of trade wars on on global growth would impart volatility to crude prices . Oil ended slightly firmer after volatile trading on Friday, supported by expectations that the Organization of the Petroleum Exporting Countries would agree to cut output next month, though prices fell for the sixth straight week amid global oversupply concerns. OPEC kingpin Saudi Arabia is keen for the major producers to cut output by about 1.4 million barrels per day, around 1.5 percent of global supply, to support the market, sources told Reuters this week. But other producers, including Russia, have been reluctant to agree to a cut. LCOc1 settled up 14 cents, or 0.2 percent, at $66.76 a barrel. The global benchmark fell 4.6 percent in the week, the sixth consecutive decline.

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Special Report 26-Nov-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

70.67 Yen

62.57

80.1702 GBP

90.6258

Euro USD/INR TRADING STRATEGY: USD/INR

BUY USDINR NOV ABOVE 70.95 TGT 71.05 71.15 SL 70.75 SELL USDINR NOV BELOW 70.75 TGT 70.6 70.50 SL 71

GBP/INR TRADING STRATEGY: BUY GBPINR NOV ABOVE 9 1.40 TGT 91.60 91.70 SL 91 SELL GBPINR NOV BELOW 91.25 TGT 91.15 91 SL 91.50

The Indian rupee opened 32 paise higher to trade at 71.14 per US dollar. The Indian currency had ended the previous session at 71.46 per US dollar.Increased selling of the greenback by exporters amid softening crude oil prices, and persistent foreign fund inflows pushed the Indian currency higher on Tuesday. However, Economy Minister Giovanni Tria said that the growth forecast contained in the budget is the result of technical evaluations and ‘non - negotiable,’ suggesting that the country is ready to f ace the EU Commission's sanctions creating more rifts between the two parties. GDP data from Germany came in at - 0.2 percent against market expectations of - 0.1 percent. Direct tax collection has already crossed Rs 5 lakh crore and will exceed the budgeted target of Rs 11.5 crore set for the current fiscal, CBDT Chairman Sushil Chandra said Wednesday. He further said that so far the I-T department has issued refunds to 2.15 crore assessees amounting to Rs 1.15 lakh crore and from now onwards the net collections will increase .We have already crossed the Rs 5 lakh crore figure that is 44 per cent of the net direct tax collection target. This is despite the fact there is a surge in refund," Chandra said. Speaking to reporters after inaugurating the pavillion of the Central Board of Direct Taxes (CBDT) at the India International Trade Fair (IITF), Chandra said the number of people voluntarily filing tax returns has gone up substantially, and 6.85 crore income tax returns . EURUSD appreciated by 1.1 percent last week while EURINR appreciated by 0.36 percent during the same time frame. GDP data from Germany came in at - 0.2 percent against market expectations of - 0.1 percent. Meanwhile, EU commission had asked Italy to revise their budget plans. However, Economy Minister Giovanni Tria said that the growth forecast contained in the budget is the result of technical evaluations and ‘non - negotiable,’ suggesting that the country is ready to face the EU Commission's sanctions creating more rifts. .

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Special Report 26-Nov-2018

Date

Commodity/ Currency Pairs

22/11/18

NCDEX DHANIYA

DEC

BUY

6500

22/11/18

NCDEX DHANIYA

DEC

Sell

22/11/18

NCDEX GUARGUM5

DEC

22/11/18

NCDEX GUARGUM5

22/11/18

Contract Strategy

Entry Level

Stop Loss

Remark

6530/6560/65 90

6400

TARGET HIT

6400

6370/6340

6500

TARGET HIT

BUY

9050

9100/9150

8950

NOT EXECUTED

DEC

SELL

9000

8950/8900

9100

NOT EXECUTED

MCX GOLD

DEC

BUY

30800

30850/30900

30750

NOT EXECUTED

22/11/18

MCX GOLD

DEC

SELL

30750

30700/30650

30850

TARGET HIT

22/11/18

MCX SILVER

DEC

BUY

37000

37070/37120

36800

TARGET HIT

22/11/18

MCX SILVER

DEC

SELL

37800

37750/37700

37920

NOT EXECUTED

Entry Level

Target

Stop Loss

Remark

Target

Date

Scrip

CASH/ FUTURE/ Strategy OPTION

22/11/18

NIFTY

FUTURE

BUY

10600/10620

10650/10680/ 10700

10540

SL HIT

22/11/18

Pidilite

FUTURE

BUY

1155

1162/1170

1140

TARGET HIT

22/11/18

ADANI PORTS

FUTURE

BUY

362

358/355

365

22/11/18

TCS

CASH

SELL

1805

1800/1780

1820

TARGET HIT

OPEN

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O


Special Report 26-Nov-2018

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

REPORT

PERIOD

ACTUAL

FORECAST

PREVIO US

MONDAY, NOV. 26 8:30 am

Chicago Fed national activity index

Oct.

0.17

TUESDAY, NOV. 27 9 am

Case-Shiller house prices

Sept.

10 am

Consumer confidence index

Nov.

137.9

Q3

3.5%

WEDNESDAY, NOV. 28 8:30 am

GDP

8:30 am

Advance trade in goods

Oct.

$76.0bl n

10 am

New home sales

Oct.

553,000

THURSDAY, NOV. 29 8:30 am

Weekly jobless claims

11/24

8:30 am

Personal income

Oct.

0.2%

8:30 am

Consumer spending

Oct.

0.4%

8:30 9:45am am 9:45 am

10 am 2 pm

Core manufacturing inflation index flash Markit

Nov.

Markit services index flash

Nov.

Pending home sales

Oct. Oct.

--

55.7

--

54.8

0.1% 0.5%

FOMC minutes

FRIDAY, NOV. 30 9:45 am

Chicago PMI

Nov.

58.4

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