Special Report 27 July 2018 Epic Research

Page 1

Special Report 27-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 struggled to gain traction on Friday, following a mixed end to Wall Street trade and as the worsening Sino -US trade dispute kept investors in the region cautious, despite signs of rapprochement between the United States and Europe.MSCI's broadest index of Asia-Pacific shares outside Japan was little changed in early trade.Japan's Nikkei eked out a 0.3 percent gain though it was capped by worries that the Bank of Japan could scale down its asset purchase at its upcoming policy review next week.MSCI's gauge of stocks across the globe hit four-month highs on Thursday, with European car maker shares gaining 2.6 percent after the European Union and the United States agreed to negotiate on trade, easing fears of a transatlantic trade war.

World Indices Index

Value

% Change

25,527.07

0.44

S&P500

2,843.50

0.04

NASDAQ FTSE100

7,852.19 7,663.17

-1.01 0.32

22,658.97 28,750.48

0.32 -0.11

DJI

NIKKEI HANG SENG

Top Gainers Company

CMP

Change

% Chg

SBI

287.70

15.85

5.83

ICICI Bank

285.65

11.00

4.01

1,024.20

38.40

3.90

28,265.65

977.35

3.58

181.85

6.20

3.5

CMP

Change

% Chg

9,396.25 369.75 276.80 388.90

-362.70 -13.15 -5.15 -6.75

-3.72 -3.43 -1.83 -1.71

854.50

-11.40

-1.3

Grasim Eicher Motors Power Grid Corp

Top Losers Company

Maruti Suzuki Yes Bank HPCL BPCL Titan Company

Previous day Roundup The Nifty50 finally hit a fresh record high for the first time since January 29 and ended at all-time closing high on the day of July futures and options (F&O) contracts expiry Thursday, though it dropped in the red in last hour of trade.The index formed a small bullish candle on the daily charts. The market shrugged off weakness in Asian peers.The rally was majorly driven by banking & financials space as the Nifty Bank index gained 1.4 percent and Financial Services 1.7 percent. PSU Bank gained the most among sectoral indices, rising 5.5 percent, especially after Canara Bank earnings. ]Index stats

The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[15.20pts], Consumption[-14.60pts],PSE[23.20pts],CPSE [18.40pts],Energy[17.10pts],FMCG[71.00pts],Auto[ 39.95pts],Pharma[25.40pts],IT[ -107.25pts],Metal[26.70pts],Realty[2.10 pts], Fin Serv sector[190.25pts].

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

51.3

1.9

3.7

BAJAJFINSV

6949.5

91.5

1.32

BATAINDIA

892.6

24.4

2.73

BHARATFIN

1191.4

-1.5

-0.13

CIGNITITEC

437.55

20.5

4.69

ADANIGREEN

Stocks at 52 Week’s LOW Symbol

8KMILES ALCHEM ANKITMETAL ANTGRAPHIC APARINDS

Prev. Close

Change

%Chg

236.65 5.55 0.6 0.5 614.9

11.8 0.25 -0.05 0.05 9.05

4.99 4.5 -7.69 10 1.47

Indian Indices Company

CMP

Change

% Chg

NIFTY

11167.30

35.30

0.32

SENSEX

36984.64

126.41

0.34

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Special Report 27-July-2018

RECOMMENDATIONS [FUTURE] 1.IGL [FUTURE ] As per the daily chart this counter is showing weakness at its upper level around 298 here we can a chance of reversal due to its overbought condition with stockhastic momentum indicator above 80, it has made a red doji at this level near to its 200 days SMA, so we advice you to sell igl future around 298-297 for the targets of 294-290 with stoploss above 300.

2.DCBBANK [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 158 it has shown a reversal from its lower levels and closed just above its previous resistance level of 164.85 from here a chance of breakout can be found, so we advice to buy dcbbank future around the levels of 165-166 for the targets of 169-174 with stoploss below 163.

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  Trends on SGX Nifty indicate a flat opening for the broader index in India, a gain of 25 points. Nifty futures were trading around 11,247.50 on the Singaporean Exchange.  Oil prices edged down on Friday after three days of gains, but were still supported by Saudi Arabia’s halt on transporting crude through a key shipping lane, falling US inventories and easing trade tensions between Washington and Europe.Brent futures were down 6 cents at USD 74.48 a barrel by 0043 GMT, after gaining 0.8 percent on Thursday. US West Texas Intermediate futures were also 6 cents lower, at USD 69.55, after posting a nearly 0.5-percent gain the previous session.  Petrochemical-retail-to-telecom conglomerate Reliance Industries will announce its April-June quarter earnings on July 27. Brokerage houses expect the company's petrochemical business to post strong results.  HDFC Asset Management Company's initial public offer was subscribed 5.52 times on the second day of the three-day bidding yesterday. The Rs 2,800-crore public offer received bids for 10,38,77,982 shares against the total issue size of 1,88,04,290 shares, according to data available with the NSE.

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Special Report 27-July-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION

Biocon: Q1 profit zooms 47.2 percent to Rs 119.7 crore versus Rs 81.3 crore; revenue increases 21.2 percent to Rs 1,123.8 crore versus Rs 927.4 crore (YoY).

3,40,162

2,41,200  6,15,080

53.5

2,75,467

1,57,650

Lakshmi Vilas Bank: Q1 net loss at Rs 123.9 crore versus profit of Rs 66.1 crore; NII falls 40.2 percent to Rs 130.2 crore versus Rs 217.8 crore (YoY).

CE

27,100 275.65

2,38,782

10,920

NIFTY

CE

11,250

0.05

2,17,664

31,15,050

SBIN

CE

290

0.05

21,922

43,32,000

SBIN

CE

285

2.75

21,287

8,52,000

SBIN

CE

280

7.45

16,108

10,26,000

Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

NIFTY

CE

11,150

5

3,91,226

BANKNIFTY

CE

27,600

0.05

NIFTY

CE

11,100

BANKNIFTY

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

Open Interest

2,83,500

Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

Open Interest

NIFTY

PE

11,100

0.05

5,14,881

36,17,925

NIFTY

PE

11,150

0.05

4,62,609

14,64,825

BANKNIFTY

PE

26,800

0.05

4,58,828

NIFTY

PE

11,200 30.05

2,60,292

BANKNIFTY

PE

27,400

0.05

2,37,325

MARUTI

PE

9,400

6.1

12,108

MARUTI

PE

9,500 105.55

9,974

SBIN

PE

280

0.05

NIFTY FUTURE

9,814

Yesterday Nifty future was struggling to break its 7,78,160 important resistance level of 11160, in the early trading 69,750 session it managed to go above this level but could not sustain above it, in the lower side there are multiple 2,76,920 support levels at 11108 and 11070 from were we can get 19,275 chance of reversal so we advice to buy nifty future 33,300 around the levels of 11100-11110 for the target of 11150 -11200 with strict stop loss of 11050. 27,06,000

FII DERIVATIVES STATISTICS BUY

SELL

No. of Contracts

Amount in Crores

INDEX FUTURES

73351

6260.86

74910

6467.51

INDEX OPTIONS

777594

73143.32

778963

STOCK FUTURES

476957

33107.54

STOCK OPTIONS

96973

7001.94

OPEN INTEREST AT THE END OF THE DAY

No. of Amount in No. of Contracts Crores Contracts

Amount in Crores

NET AMOUNT

347057

29419.70

-206.6496

73350.93

873070

75228.23

-207.6082

478947

33104.20

1155094

83616.83

3.3441

91728

6610.56

117952

8246.80

391.378 -19.5357

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

11219.00

11193.00

11159.00

11133.00

11099.00

BANKNIFTY

27712.00

27559.00

27302.00

27149.00

26892.00

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Special Report 27-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 27-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

1610 4519 4104 5053 1811.5 4164

0.63 1.21 0.12 1.81 1.29 0.58

Jeera

19605

0.44

4171 3368 7254

1.09 0.93 0.10

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 27-July-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

68.6575 Yen

61.9475

Euro

80.4175 GBP

90.4800

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 27-July-2018

Date

Commodity/ Currency Pairs

26/07/18

NCDEX DHANIYA

OCT

BUY

26/07/18

NCDEX DHANIYA

OCT

26/07/18

NCDEX GUARGUM5

26/07/18

Contract Strategy

Entry Level

Target

Stop Loss

Remark

5050

5100 5200

5000

OPEN

SELL

4940

4890 4790

4990

NOT EXECUTED

AUG

BUY

8940

9000 9150

8880

SL TRIGGERED

NCDEX GUARGUM5

AUG

SELL

8730

8680 8780

8800

NOT EXECUTED

26/07/18

MCX GOLD

AUG

BUY

30000

30100 30300

29900

NOT EXECUTED

26/07/18

MCX GOLD

AUG

SELL

29850

29700 29500

29950

OPEN

26/07/18

MCX SILVER

SEP

BUY

38700

38900 39200

26/07/18

MCX SILVER

SEP

SELL

38300

Date

Scrip

CASH/ FUTURE/ OPTION

Strategy

26/07/18

NIFTY

FUTURE

BUY

38500

NOT EXECUTED

38100 37800

38500

NOT EXECUTED

Entry Level

Target

Stop Loss

Remark

11100-11110

11150 -11200

11050

NOT EXECUTED

574 -564

590

OPEN

583-580

26/07/18

AUROPHARMA

FUTURE

SELL

26/07/18

HINDZINC

FUTURE

BUY

283.90-284.50

288-292

280

NOT EXECUTED

CASH

SELL

137-136.50

133-127

140

SL TRIGGERED

26/07/18

ACE

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Special Report 27-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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