Special report-28-august-2018-epic-research

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Special Report 28-Aug-2018

Global markets at a glance Wall Street's major indexes fell on Thursday as tradesensitive stocks were hit by a fresh round of tariffs in the trade dispute between the United States and China. Despite ongoing talks, the two countries imposed tariffs on $16 billion worth of each other's goods. Shares of industrial giants Caterpillar Inc and Boeing Co , which have been bellwethers of trade sentiment, were among the biggest drags on the Dow. Caterpillar shares fell 2.0 percent, and Boeing shares fell 0.7 percent. In the S&P 500, the technology sector was the sole gainer, rising 0.2 percent. But it pared gains late in the session, sending the tech-heavy Nasdaq into negative territory along with the S&P and the Dow.The Dow Jones Industrial Average fell 76.62 points, or 0.3 percent, to 25,656.98, the S&P 500 lost 4.84 points, or 0.17 percent, to 2,856.98 and the Nasdaq Composite dropped 10.64 points, or 0.13 percent, to 7,878.46. The energy index fell 0.5 percent and the materials index fell 0.7 percent, the biggest percentage drops among the S&P's major sectors, as prices of crude oil and metals fell due to trade war worries.The potential political fallout from the legal woes of two former advisers to U.S. President Donald Trump also weighed on investor sentiment. Asian shares advanced again on Tuesday while major currencies held on to gains amid hopes global tariff tensions were abating as the United States and Mexico made a deal to overhaul the North American Free Trade Agreement.Investors expect Canada too would agree to the new terms to preserve a three-nation pact, ultimately dispelling the economic uncertainty caused by US President Donald Trump's repeated threats to ditch the 1994 NAFTA accord.MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.3 percent for a second straight day of gains. Australian shares added 0.5 percent while Japan's Nikkei jumped 0.8 percent. Previous day Roundup The Nifty50 on Monday kicked off the F&O expiry week on a strong note. The 50-pack took out the immediate resistance at 11,620 and ended near the 11,700 level, suggesting that the bulls were back on a buying spree after Friday’s indecisiveness. A large bullish candle on the daily chart is signalling confidence and the index may do well in the rest of week. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[49.15], Consumption[42.90pts],PSE[55.95pts],CPSE[ 29.70pts],Energy[200.70pts],FMCG[218.55pts],Auto [90.55pts],P harma[33 .10 pts],IT[254 .90 pts],Metal [51.65pts],Realty[0.20 pts], Fin Serv sector[149.05pts].

World Indices Index

Value

% Change

DJI

26,049.64

+1.01

S&P500

2,901.25

+0.19

NASDAQ

8,017.90

+0.91

FTSE100

7,577.49

+0.19

22,907.86 28,367.04

+0.47 +0.34

NIKKEI HANG SENG

Top Gainers Company

CMP

Change

% Chg

Hindalco

230.25

8.15

3.67

Power Grid Corp

197.80

6.85

3.59

ICICI Bank

339.90

9.75

2.95

Bharti Airtel

379.15

10.20

2.76

Tech Mahindra

737.95

19.40

2.70

CMP

Change

% Chg

374.2 885.35 3,212.30 330.15 376.75

-14.4 -26.55 -72.45 -7.05 -7.75

-3.71 -2.91 -2.21 -2.09 -2.02

Top Losers Company

Yes Bank Titan Company Hero Motocorp ICICI Bank Adani Ports

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

202.05

7.35

3.64

73.15

6.85

9.36

344.45

0.55

0.16

ASTRAZEN

1878

-11.85

-0.63

AXISBANK

639.9

8.1

1.27

Prev. Close

Change

%Chg

17.05 5.25 5.75 40.25 20.45

-0.85 0 -0.25 0.75 -0.35

-4.99 0 -4.35 1.86 -1.71

ABFRL AFL AMRUTANJAN

Stocks at 52 Week’s LOW Symbol

ABMINTLTD ALCHEM AMTEKAUTO AYMSYNTEX BAFNAPHARM

Indian Indices Company

CMP

Change

% Chg

NIFTY

11692.00

134.90

1.17

SENSEX

38694.11

442.31

1.16

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Special Report 28-Aug-2018

RECOMMENDATIONS [FUTURE] 1. BPCL [FUTURE ] The stock has shown a reversal candlestick pattern from its lower level of stockhastic indicator in a previous week. A follow up buying with positive close suggest a point of strength from its lower level buy from current level of 362 for the targets of 368-375 with the stoploss below 358

2. MANAPPURAM [FUTURE] The particular script has rebounded from its support level of 99 and closed in a positive note above the levels of 101 we cand witness its upward movement from this level since the market is also in a positive trend so we suggest to buy around the levels of 101-102 for the possible targets of 105110 with stoploss below 99.

STOCK RECOMMENDATION [CASH] TATAMOTORS [CASH] As per the daily chart this counter is showing weakness from falling down, in the on 24 aug at the closing session it had shown a anamoly which shows a clear sign of reversal around the levels of 255 and yesterday it closed on a positive note here a long position can be made around the levels of 269-270 for the targets of 274-278 with the stoploss below 266.

MACRO NEWS  Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 31 points or 0.26 percent. Nifty futures were trading around 11,754level on the Singaporean Exchange.  The United States and Mexico agreed on Monday to overhaul the North American Free Trade Agreement (NAFTA), putting pressure on Canada to agree to new terms on auto trade and dispute settlement rules to remain part of the three-nation pact.Negotiations among the three partners, whose mutual trade totals more than USD 1 trillion annually, have dragged on for more than a year, putting pressure on the Mexican peso and the Canadian dollar. Both currencies gained against the US dollar after Monday's announcement.  Oil prices rose on Tuesday as risks of supply disruptions from places such as Venezuela, Africa and Iran triggered expectations of a tightening market. International Brent crude oil futures were at USD 76.51 per barrel at 0037 GMT, up 30 cents, or 0.4 percent, from their last close. US West Texas Intermediate (WTI) crude futures were up 24 cents, or 0.4 percent, at USD 69.11 a barrel.  Economic policy think-tank NCAER has retained India's growth forecast for the current fiscal at 7.4 percent citing comfortable agricultural sector outlook and a marked improvement in the external sector.

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Special Report 28-Aug-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

Open Interest

NIFTY

CE

11,700 48.15

3,63,174

29,27,025

BANKNIFTY

CE

28,300

113

2,79,521

4,99,240

BANKNIFTY

CE

28,500

49

2,27,735

RELIANCE

CE

1,300

8.35

15,060

25,89,000

RELIANCE

CE

1,280

18.7

8,206

11,26,000

SBIN

CE

310

3.1

8,190

60,45,000

ICICIBANK

CE

340

4.35

7,447

46,22,750

RELIANCE

CE

1,320

3.05

6,744

13,07,000

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

Optio Strike n Price Type

NIFTY

RIL gains 1% on report of Jio becoming secondlargest telco by revenue market share

LIC Housing down 5% despite better Q1 nos; JP Morgan, Macquarie maintain neutral call

Future Retail surges 6% on report of Google, Paytm teaming up to buy 7-10% stake

10,23,720 NIFTY FUTURE

2,83,500

LTP

Traded Volume (Contracts)

PE

11,600 14.35

3,04,165

BANKNIFTY

PE

28,000

40

2,85,409

NIFTY

PE

11,500

6.85

2,13,666

RELIANCE

PE

1,280

6.2

7,695

RELIANCE

PE

1,260

2.25

6,835

SUNPHARMA PE

620

7

4,375

SBIN

PE

300

1.75

4,178

RELIANCE

PE

1,240

0.95

3,646

Open Interest

37,79,775 The Nifty50 on Monday kicked off the F&O expiry week on a strong note. The 50-pack took out the immediate 13,46,560 resistance at 11,620 and ended near the 11,700 level, 39,47,325 suggesting that the bulls were back on a buying spree 11,04,000 after Friday’s indecisiveness. A large bullish candle on the daily chart is signalling confidence and the index may 16,52,000 do well in the rest of week. Here you can go for a long 8,88,800 position in nifty future around the levels of 11660-670 38,97,000 for the targets of 11700-11750 with stoploss below 11620 16,50,000

FII DERIVATIVES STATISTICS BUY

SELL

No. of Contracts

Amount in Crores

INDEX FUTURES

25613

2405.07

26912

2452.13

INDEX OPTIONS

769658

77567.79

769995

STOCK FUTURES

214895

15459.29

STOCK OPTIONS

146901

11480.39

OPEN INTEREST AT THE END OF THE DAY

No. of Amount in No. of Contracts Crores Contracts

Amount in Crores

NET AMOUNT

372778

32684.19

-47.059

77570.68

788524

70809.87

-2.8891

219106

15681.79

1161708

88420.58

-222.4992

148981

11614.81

158746

12203.26

-134.4109 -406.8582

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

11767.00

11729.00

11662.00

11624.00

11557.00

BANKNIFTY

28538.00

28401.00

28179.00

28042.00

27820.00

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Special Report 28-Aug-2018

RECOMMENDATIONS GOLD TRADING STRATEGY: BUY GOLD ABOVE 30150 TGT 30250 30350 SL BELOW 30050 SELL GOLD BELOW 30050 TGT 29950 29850 SL ABOVE 30150

SILVER TRADING STRATEGY: BUY SILVER ABOVE 37400 TGT 37600 37900 SL BELOW 37200 SELL SILVER BELOW 36900 TGT 36700 36400 SL ABOVE 37100

COMMODITY ROUNDUP Gold prices traded higher on Friday as Federal Reserve chairman Jerome Powell emphasized the central bank’s plans for gradual interest rate hikes would be conditioned on the continued strength of the U.S. economy and labor market. At 11:06 AM ET (15:06 GMT), gold futures for December delivery on the Comex division of the New York Mercantile Exchange gained $20.00, or 1.68%, to $1,214.00 a troy ounce. In his speech at the Jackson Hole Economic Symposium, Powell indicated that there was no clear sign of an acceleration above the Fed’s 2% inflation objective and said there did not seem to be an elevated risk of the economy overheating. “As the most recent FOMC statement indicates, if the strong growth in income and jobs continues, further gradual increases in the target range for the federal funds rate will likely be appropriate,” he concluded. Investors took Powell’s speech as a more dovish stance, which seemed to rule out the need for a more aggressive tightening as he suggested a lack of inflationary pressure and put the caveat for further gradual increases in interest rates on a continuation of current economic strength and a strong labor market. Higher interest rates tend to weigh on demand for gold, which doesn’t bear interest, in favor of yield-bearing investments. The remarks also weighed on the dollar, extending the greenback’s losses and increasing the demand of the precious metal for holders of foreign currencies. In other metals trading, silver futures rose 1.88% at $14.815 a troy ounce by 11:08 AM ET (15:08 GMT). Palladium futures traded up 2.28% to $932.00 an ounce, while sister metal platinumrose 2.03% at $794.20. In base metals, copper gained 2.05% to $2.709 a pound. The aluminum market has been thrust into a period of uncertainty that has become a feature of the trade in recent months because of tariffs and sanctions, a situation that seems unlikely to change.The lack of clarity began in April, when the US announced sanctions against several Russian individuals and companies, including aluminum producer UC Rusal.These sanctions created a lot of uncertainty in the market, which in turn led to a price spike in April and high volatility. But, since April, metal and alumina flows have resumed to a great extent, and prices have moderated. Oil prices rose on Tuesday as risks of supply disruptions from places such as Venezuela, Africa and Iran triggered expectations of a tightening market.

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Special Report 28-Aug-2018

RECOMMENDATIONS GUARGUM5 TRADING STRATEGY: BUY GUARGUM OCT ABOVE 9000 TGT 9030 9060 SL BELOW 8970 SELL GUARGUM OCT BELOW 8820 TARGET 8770-8720 SL 8850.

NCDEX INDICES Index

Value

% Change

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

1595 4572 3975 4623 1677 4138

-1.27 -2.1 -3.07 -3.16 -3.98 -3.98

19025

-1.58

4002 3172 6750

-1.86 -2.37 -1.72

Jeera Mustardseed Soy Bean Turmeric

DHANIYA TRADING STRATEGY: BUY DHANIYA SEP ABOVE 4850 TGT 4900 4950 SL BELOW 4800 SELL DHANIYA SEP BELOW 4590 TARGET 4540-4500 SL 4640.

Kharif crop planting has been done on 94% of the arable land, with last phase of planting picking up in rain-fed parts of the country boosted by fresh spells of rains across western, central and southern India in the past one week. However , the planting is still marginally lower than the level this time last year. Planting covering 995.62 lakh hectares so far this season is 1.28% less than a year earlier, data from the Agriculture ministry showed. Total area to be planted this kharif season is estimated at 1,058.10 lakh hectares. Coarse cereals, cotton, rice and pulses have seen a fall in acreage, while oilseeds and sugarcane have reported an increase. Monsoon data showed rains were 7% below normal since June 1. Still, India’s 91 major reservoirs held 28% more water than at this time last year, and 7% higher than the 10-year average at 101.286 billion cubic metres suggesting better water availability for crops after the monsoon ends. Officials say that in parts of the country where farmers will have to go for replanting of crop due to excess rain or deficit rain, farmers will now go for planting of sturdy short duration crops like pulses and coarse cereals. Farmers who had prepared rice nurseries in the rain-fed parts of north-eastern states, Jharkhand and Karnataka will transplant those in rice fields, government officials said. Rice is so far planted on 356.83 lakh hectares, which is 0.75% less than the previous year as per the ministry data. Pulses acreage fell by 2.27% at 130.83 lakh hectares. Though arhar, and moongbean acreage was higher than the previous year, planting of uradbean fell by 13%. Overall, coarse cereals saw a slight increase in planting over the previous year. Meanwhile, farmers have opted more for oilseeds, particularly soyabean. Overall, oilseed planting saw a 1.68% increase at 167 lakh hectares.

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Special Report 28-Aug-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

70.0366 Yen

63.0700

Euro

81.3032 GBP

89.9541

USD/INR TRADING STRATEGY: BUY USDINR ABOVE 70.20 TGT 70.50 70.80 SL BELOW 70.00 SELL USDINR BELOW 69.80 TGT 89.50 89.20 SL ABOVE 70.00

GBP/INR TRADING STRATEGY: BUY GBPINR ABOVE 90.20 TGT 90.50 90.80 SL BELOW 90.00 SELL GBPINR BELOW 89.60 TGT 89.30 89.00 SL ABOVE 89.80

The rupee today staged a good recovery to end higher by 20 paise at 69.91 against the US currency on bouts of dollar selling by exporters and corporates. The domestic currency recouped early losses and withstood the headwinds of surging crude prices and trade deficit worries. Excess volatility and movements in the US dollar had a major impact on the domestic currency. The domestic unit hit a low of 70.24 before rebounding in late afternoon deals. India's trade .deficit soared to a near five-year high of USD 18 billion, raising concerns on the current account front. Also, global crude prices surged after a brief consolidation largely supported by signs that US sanctions on Iran, the third-biggest producer in the OPEC, are already reducing global crude supply. A single sneeze, and the world catches cold. The market worldwide is reeling under pressure as their currencies continue to get devalued against a strong dollar. Turkey was first to sneeze and now, it appears that the contagion might spread throughout emerging markets. World market is already under too much debt. If we look at most of the country’s debt to GDP, it’s are more than 50 per cent, and for many of the advanced economies such as the US, Japan, the UK and Italy, the figure is more than 100 per cent. he problem is most of emerging markets debt is dollar denominated. With a rise in US dollar, all emerging market currencies have devalued. It becomes difficult for countries to repay their debt as it becomes expensive to pay in the dollar as their currencies already have devalued. India's foreign exchange reserves fell by $33.2 million to $400.847 billion in the week to August 17 mainly due to fall in foreign currency assets, according to RBI data. In the previous week, the forex reserves had witnessed a drop of $1.822 billion to $400.881 billion. The reserves have been declining in the past few weeks as the Reserve Bank is selling the US dollar to contain depreciation in the rupee, which is frequently testing the 70-level against the American unit. The rupee opened today at 70.24 a dollar and closed at 69.91. The Indian unit had hit an intra-day low of $70.40 on April 14, 2018. In the week ended August 17, foreign currency assets, a major component of the overall reserves, dipped by $60.2 million to $376.205 billion, as per data.

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Special Report 28-Aug-2018

Date

Commodity/ Currency Pairs

27/08/18

NCDEX DHANIYA

SEP

27/08/18

NCDEX DHANIYA

27/08/18

Contract Strategy

Entry Level

Target

Stop Loss

Remark

BUY

4800

4870 5000

4730

SL TRIGGERED

SEP

SELL

4700

4630 4500

4770

TGRGET HIT

NCDEX GUARGUM5

OCT

BUY

9250

9350 9500

9150

SL TRIGGERED

27/08/18

NCDEX GUARGUM5

OCT

SELL

9150

9050 8950

9250

TGRGET HIT

27/08/18

MCX GOLD

OCT

BUY

30000

30100 30300

29900

OPEN

27/08/18

MCX GOLD

OCT

SELL

29530

29430-29230

29630

NOT EXECUTED

27/08/18

MCX SILVER

SEP

BUY

37200

37400 37700

37000

OPEN

27/08/18

MCX SILVER

SEP

SELL

36900

36700 36400

37100

NOT EXECUTED

Date

Scrip

CASH/ FUTURE/ OPTION

Strategy

Entry Level

Target

Stop Loss

Remark

27/08/18

NIFTY

FUTURE

SELL

11640-11660

11500 11350

11750

TARGET HIT

27/08/18

BHEL

FUTURE

BUY

80.45

88

75

OPEN

27/08/18

UJJIVAN

FUTURE

BUY

357.90

385

340

OPEN

27/08/18

LUPIN

CASH

BUY

1036

1090

1020

OPEN

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Special Report 28-Aug-2018

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

REPORT

PERIOD

ACTUAL

FORECAST

PREVIOUS

MONDAY, AUG. 27 8:30 am

Chicago national activity index

July

0.43

TUESDAY, AUG. 28 8:30 am

Advance trade in goods

July

-$68.3bln

9 am

Case-Shiller home price index

June

6.4%

10 am

Consumer confidence index

Aug.

127.4

WEDNESDAY, AUG. 29 8:30 am

Gross domestic product revision

Q2

4.1%

10 am

Pending home sales

July

0.9%

THURSDAY, AUG. 30 8:30 am

Weekly jobless claims

8/25

8:30 am

Personal income

July

0.4%

8:30 am

Consumer spending

July

0.4%

8:30 am

Core inflation

July

0.1%

FRIDAY, AUG. 31 9:45 am

Chicago PMI

Aug.

65.5

10 am

Consumer sentiment index

Aug.

97.9

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