Special report 28 june 2018 epic research

Page 1

Special Report 28-Jun-2018

Global markets at a glance US stocks fell on Wednesday on renewed uncertainty regarding the U.S. stance on Chinese investments in American technology companies, reversing gains earlier in the session. At the market open, stocks rose as President Donald Trump said he will use a strengthened national security review panel "the Committee on Foreign Investment in the United States (CFIUS)" to deal with potential threats from Chinese acquisitions of US technology, instead of imposing Chinaspecific restrictions.The decision was seen by investors as a somewhat softer approach than plans reported earlier to block firms with at least 25 percent Chinese ownership from buying US tech firms. Asian stocks slumped to nine-month lows on Thursday on growing worries the US administration's approach to trade is harming global economic growth even as it appeared to be modifying its approach to curb Chinese investments in US technology firms.US oil prices hit a 3-1/2-year high as plunging US crude stockpiles compounded supply worries in a market already uncertain about Libyan exports, a production disruption in Canada and Washington's demands that importers stop buying Iranian crude. Previous day Roundup

World Indices Index

Value

% Change

24,117.59

-0.68

S&P500

2,710.50

0.20

NASDAQ FTSE100

7,014.75 7,621.69

+0.23 1.10

22,177.58 28,501.03

-0.42 0.51

DJI

NIKKEI HANG SENG

Top Gainers Company

CMP

Change

% Chg

TECHM

716.2

28.35

4.12

INFRATEL

300

7.05

2.41

HCLTECH

922

11.60

1.27

2,114.90

21.20

1.01

605.5

6

1

CMP

Change

% Chg

BPCL

380.65

-34.60

-8.33

HINDPETRO IOC GAIL

275.55 155.4 326

-23.55 -11.40 -15.75

-7.87 -6.83 -4.61

618

-21.80

-3.41

HDFCBANK CIPLA

Top Losers Company

UPL The Nifty, which started on a flat note on Wednesday, closed sharply lower due to weak global cues and fell below its crucial support placed around 10,700 levels, ahead of expiry of June futures & options contracts in the coming session. The index formed a 'Bearish Belt Hold’ kind of pattern on the daily charts. The 50-share NSE Nifty opened at 10,785.50 which was also the intraday high for the index which resulted in small lower shadow. The bears took control of D-Street in morning trade itself and pushed the index below its crucial support placed at 10,700 levels. It hit an intraday low of 10,652.40 and then bounced back to marginally close above its 50-day exponential moving average (EMA) placed around 10,670. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[-77.25pts], C o n s u m pt i o n [ - 4 0 . 8 5 pt s ] , P S E [ -1 1 2 . 6 5 p t s ] , CP S E [ 64.45pts],Energy[-333.90pts],FMCG[-167pts],Auto[1 35 .9 0 pts],P harma[15.7 pts],IT[7 4 .90 pts],Metal[ 42.60pts],Realty[-4.95 pts], Fin Serv sector[-95.70pts].

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

845.55

-9.45

-1.12

386.5

6.65

1.72

ELECTROSL

1.65

0.05

3.03

GODREJCP

1191.25

18.65

1.57

462.8

3.55

0.77

BATAINDIA DABUR

HEXAWARE

Stocks at 52 Week’s LOW Symbol

ABAN ABCAPITAL ABMINTLTD ADANIGREEN ADANIPOWER

Prev. Close

Change

%Chg

114.5 131.55 20 28.8 17.1

-2.75 -2.85 -0.5 -1.4 -0.95

-2.4 -2.17 -2.5 -4.86 -5.56

Indian Indices Company

CMP

Change

% Chg

NIFTY

1067140

-97.75

-0.91

SENSEX

35217.11

-272.93

-0.77

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Special Report 28-Jun-2018

RECOMMENDATIONS [FUTURE] 1.BHARATFIN [FUTURE ] The particular counter is sustaining at its support level of 1180, as per the hourly chart there are two indecsion candles at that position and as per the daily chart it has rebounded from this level and closed above it so we can get a chance to make a long position from the support level so we advice to BUY BHARATFIN AROUND 1185-1188 TGT 1193 -1205 SL BELOW 1180.

2.DABUR [FUTURE] The particular script has breaked its 52 weeks high level here we can get a buying opportunity from its high of 396 so we advice to BUY DABUR FUTURE ABOVE 396 TGT 400-410 SL BELOW 392

STOCK RECOMMENDATION [CASH] HDIL [CASH] The particular script is trading at its 52 weeks low level of 20 below it has not support level to sustain so we recommend to SELL HDIL BELOW 20 TGT 19-18 SL ABOVE 21.

MACRO NEW  Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 30 points or 0.28 percent. Nifty futures were trading around 10,645level on the Singaporean Exchange.  Moscow and Washington struck a deal on Wednesday to hold a summit soon between Russian President Vladimir Putin and US President Donald Trump, a move likely to worry some US allies and draw a fiery reaction from some of Trump’s critics at home.Trump confirmed that Helsinki was a possible site. Other officials said the Russians were pushing for the summit to be in the Austrian capital of Vienna. Trump listed Syria and Ukraine among the many subjects he said they would discuss. His list did not include warnings from US intelligence officials that Russia will try to interfere in US congressional elections in November.  The US yesterday conveyed to India that it has postponed the first '2+2 dialogue' between the two sides due to "unavoidable reasons" and expressed regret. The India-US '2+2 dialogue' was to be held on July 6, and External Affairs Minister Sushma Swaraj and Defence Minister Nirmala Sitharaman were to travel to the US to take part in the meeting with US Secretary of State Michael R Pompeo and Secretary of Defence James Mattis.  Seafood company Penver Products yesterdat filed draft papers with markets regulator Sebi to raise funds through an initial public offering. Besides, microfinance lender Spandana Sphoorty has approached the Sebi with its IPO papers this week.

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Special Report 28-Jun-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

Open Interest

NIFTY

CE

10,800

3

7,16,074

60,64,125

NIFTY

CE

10,700

21.1

5,04,959

36,38,100

BANKNIFTY

CE

26,600

31

5,20,463

12,25,200

BANKNIFTY

CE

26,700

16.2

4,37,383

10,14,200

MARUTI

CE

9,000

15.7

15,114

2,14,875

RELIANCE

CE

980

1.35

14,936

31,78,000

RELIANCE

CE

1,000

0.5

12,213

40,93,000

TCS

CE

1,900

2.15

11,961

11,96,000

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

Bank of Maharashtra: CEO Marathe granted bail in DS Kulkarni case

Tata Steel: Thyssenkrupp nears JV compromise deal with Tata Steel, say sources

NIFTY FUTURE

2,83,500

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

Open Interest The Nifty, which started on a flat note on Wednesday,

NIFTY

PE

10,700

49.1

6,20,748

39,81,825

NIFTY

PE

10,600

12

4,35,553

35,21,100

BANKNIFTY

PE

26,400

75

4,81,581

5,25,480

BANKNIFTY

PE

26,300

42

4,72,456

7,90,960

RELIANCE

PE

960

3

9,904

14,32,000

TATASTEEL

PE

540

3.4

6,668

8,23,336

MARUTI

PE

8,800

20

6,331

RELIANCE

PE

980 15.55

5,933

closed sharply lower due to weak global cues and fell below its crucial support placed around 10,700 levels, ahead of expiry of June futures & options contracts in the coming session. The index formed a 'Bearish Belt Hold’ kind of pattern on the daily charts.According to Pivot charts, the key support level is placed at 10,620.7, followed by 10,570.0. If the index starts moving upwards, key resistance levels to watch out are 10,753.8 and 10,836.2.

54,900 We recommend to SELL NIFTY FUTURE AROUND 1072010715 TGT 10650-10600 SL ABOVE 10780. 10,27,000

FII DERIVATIVES STATISTICS BUY

SELL

No. of Contracts

Amount in Crores

INDEX FUTURES

25252

2192.04

38031

3439.32

INDEX OPTIONS

916686

88443.33

900605

STOCK FUTURES

156307

10509.40

STOCK OPTIONS

87942

6298.92

OPEN INTEREST AT THE END OF THE DAY

No. of Amount in No. of Contracts Crores Contracts

Amount in Crores

NET AMOUNT

281027

23798.98

-1247.2773

87198.91

898982

75706.04

1244.4248

148119

9934.65

1221389

84892.41

574.7451

86421

6178.58

143975

10472.61

120.3403 692.2329

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

10871.80

10771.40

10711.45

10611.05

10551.10

BANKNIFTY

26726.05

26577.40

26449.20

26300.55

26172.35

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Special Report 28-Jun-2018

RECOMMENDATIONS GOLD TRADING STRATEGY: BUY GOLD AUG FUT ABOVE 30750 TGT 30800 30850 SL BELOW 30700 SELL GOLD AUG FUT BELOW 30550 TGT 30500 30450 SL ABOVE 30600

COMMODITY ROUNDUP A stronger dollar and higher U.S. interest rates reduce demand for non-interest bearing gold as the metal becomes more expensive for holders of other currencies. The U.S. House of Representatives overwhelmingly passed a bill on Tuesday to tighten foreign investment rules, spurred by bipartisan concerns about Chinese bids to acquire sophisticated U.S. technology. President Donald Trump endorsed Treasury Secretary Steven Mnuchin's measured approach to restrict Chinese investments in U.S. technology companies. strong dollar and the prospect of a fourth rate hike have tempered gold prices, said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong. Dallas Federal Reserve Bank President Robert Kaplan said he believes the U.S. central bank's monetary policy is still accommodative and suggested the Fed could raise rates at least two more times.

SILVER TRADING STRATEGY: BUY SILVER JUL FUT ABOVE 39950 TGT 40000 40050 SL BELOW 40900 SELL SILVER JUL FUT BELOW 39375 TGT 39320 39280 SL ABOVE 40425

Oil prices rose on Wednesday on supply disruption in Canada, falling U.S. crude stocks, uncertainty over Libyan exports and U.S. demands that importers stop buying Iranian crude from November.Brent crude was up 25 cents a barrel at $76.56 by 1000 GMT. U.S. light crude was 65 cents higher at $71.18."The worry is whether 'OPEC Plus' will have enough spare capacity to balance potential declines in oil production," said Abhishek Kumar, senior analyst at Interfax Europe Ltd in London. A supply outage at Syncrude in Canada has locked in 350,000 barrels per day (bpd) of crude, with repairs expected to last at least through July. fall in Canadian exports has helped drain supplies of heavy crude across North America and contributed to a major draw in U.S. crude oil inventories, analysts say. The American Petroleum Institute reported a much-higherthan-expected 9.2 million barrel fall in U.S. crude inventories in the week to June 22 to 421.4 million barrels. polled by Reuters had estimated on average that crude stocks would fall 2.6 million barrels last week. Also keeping markets on edge was the risk of a disruption to supplies from Africa and the Middle East.In Libya, a power struggle between the internationally recognised government and rebels has left it unclear who will handle the country's oil exports. future of Iranian crude exports is also unclear.

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Special Report 28-Jun-2018

RECOMMENDATIONS GUARGUM5 BUY GUARGUM JULY ABOVE 7810 TARGET 7840 7870 SL 7780 SELL GUARGUM JULY BELOW 7740 TARGET 7710 7680 SL 7770

NCDEX INDICES Index

Value

% Change

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

1490 4155 3507 4610 1484.5 3665

0.2 1.56 1.51 1.07 -0.24 -0.34

Jeera

17050

1.25

3973 3467 7320

-0.15 0.03 0.05

Mustardseed Soy Bean Turmeric

CORINDER BUY CORIANDER JULY ABOVE 4640 TARGET 4670 4700 SL 4610 SELL CORIANDER JULY BELOW 4500 TARGET 4470 4440 SL 4530

Weak Pulses acreage in the ongoing Kharif season clubbed with good buying in retail markets is supporting Chana futures. The NCDEX Chana futures for July had tested a one and half week low of Rs 3380 per quintal this week and currently trade at Rs 3468 per quintal, up 1.31% on the day. Futures have been witnessing some short covering in last few days and similar trend was seen today as well with the open interest in the counter sliding by nearly 1.90% so far. The supplies in Delhi market have been sluggish over last few weeks and are unlikely to pick up much in coming weeks. Domestic Pulses acreage has dropped to 0.6 million hectare from 0.8 million hectare in the corresponding period last year, according to latest data released by agriculture ministry. The overall trend in Kharif sowing is tepid after an initially strong response from growers. Latest data places sowing area at 11.6 million hectare as of June 22 against 12.84 million hectare in the corresponding period of previous year. India received 10% lower than normal rainfall during June 1-22, taking a toll on the sowing. Harvesting of winter rapeseed started in Ukraine this past week. The rapid build-up of warmth in the spring accelerated growing processes in plants and caused early ripening of rapeseed. As a result, farmers took to the fields almost ten days earlier than last year and harvested 62 KMT of rapeseed from 36.5 Th ha by June 22, i.e. from 4% of its projected harvest area of 982.6 .

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Special Report 28-Jun-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

68.5246 Yen

62.3600

Euro

79.8654 GBP

90.6032

USD/INR BUY USDINR ABOVE 68.60 TGT 68.90/69.20 SL BELOW 68.30 SELL USDINR BELOW 68 TGT 67.80/67.55 SL ABOVE 68.20

The Indian rupee weakened to 68.61 to the dollar, its weakest since Nov. 30, 2016, as high oil prices stoked importers to step-up purchase of the greenback.Oil prices rose on Wednesday as a supply disruption in Canada tightened the market and after U.S. officials told importers to stop buying Iranian crude from November. Some dealers said the Reserve Bank of India had intervened only mildly earlier in the day by selling dollars. The euro fell on Wednesday as concern about an escalating trade conflict boosted the dollar and the yen, while the Chinese yuan slumped to a six-month low.

GBP/INR BUY GBPINR ABOVE 91.50 TGT 91.70/91.90 SL BELOW 91.30 SELL GBPINR BELOW 90.40 TGT 90.20/90.00 SL ABOVE 90.60

Worries that a full-blown trade war will break out between Beijing and Washington continued to weigh on currencies and sent Chinese stocks hurtling lower, despite data showing profits rose at China's industrial companies euro slipped in European trading, under pressure from the trade conflict, the threat of a political crisis in Germany and uncertainty over a European Union summit. The single currency dropped 0.1 percent to $1.1633 after earlier falling to $1.1622, its weakest since June 22. The yen, a prominent gauge of investor risk aversion, gained. The dollar edged higher, its index against a basket of currencies up 0.1 percent at 94.765. A row over migration within Germany's governing coalition will also limit gains for the single currency investor caution about trade, equity markets in Asia slipped across the board on Wednesday and stock markets in Europe opened weaker. Expectations that U.S. interest rates will rise just as the European Central Bank is pushing back its planned rate increases have been a key driver for a two-month rally in the dollar. The trade-sensitive Australian dollar earlier fell 0.3 percent to $0.7371 , edging back towards last week's 13-month low of $0.7345. It later recovered and traded down 0.1 percent at $0.7381.

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Special Report 28-Jun-2018

Date

Commodity/ Currency Pairs

27/06/18

NCDEX CORIANDER

JULY

BUY

27/06/18

NCDEX CORIANDER

JULY

27/06/18

NCDEX GUARGUM5

27/06/18

Contract Strategy

Entry Level

Target

Stop Loss

Remark

4640

4670-4700

4610

NOT EXECUTED

SELL

4500

4470-4440

4530

NOT EXECUTED

JULY

BUY

7560

7590-7640

7530

TGT HIT

NCDEX GUARGUM5

JULY

SELL

7360

7330-7300

7690

NOT EXECUTED

27/06/18

MCX GOLD

AUG

BUY

30630

27/06/18

MCX GOLD

AUG

SELL

27/06/18

MCX SILVER

JUL

27/06/18

MCX SILVER

Date

30680-30730

30590

1st TGT HIT

30550

30500-30450

30600

SL TRIGGRED

BUY

39950

40000-40050

40900

NOT EXECUTED

JUL

SELL

39375

39320-39280

40425

NOT EXECUTED

Scrip

CASH/ FUTURE/ OPTION

Strategy

Entry Level

27/06/18

NIFTY

FUTURE

BUY

10700-10720

27/06/18

DABUR

FUTURE

BUY

387-387.50

-

-

CASH

BUY

-

27/06/18

-

JYOTHILAB

Target

Stop Loss

Remark

10650

OPEN

391-394

384.50

TGT HIT

-

-

-

-

440-441

450-460

436

OPEN

10770-10850

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Special Report 28-Jun-2018

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

REPORT

PERIOD

ACTUAL

FORECAST

PREVIOUS

MONDAY, JULY 2 9;45 am

Markit manufacturing PMI (final)

June

54.6

10 am 10 am

Construction spending

May

TUESDAY, JULY 3

TUESDAY, JULY 3

TUESDAY, JULY 3

1.8% TUESDAY, JULY 3

TUESDAY, JULY 3

TUESDAY, JULY 3

Varies 10 am

Factory orders

May

WEDNESDA Y, JULY 4

WEDNESDAY, JULY 4

THURSDAY, JULY 5

THURSDAY, JULY 5

THURSDA Y, JULY 5

8:15 am

ADP employment

June

8:30 am

Weekly jobless claims

6/23

9:45 am

Markit services PMI (final)

June

-0.8%

WEDNESD WEDNESDAY, JULY 4 AY, JULY 4

THURSDAY, JULY 5

WEDNESDAY, JULY 4

WEDNESDA Y, JULY 4

THURSDAY, JULY THURSDAY, 5 JULY 5 178,000

56.5

10 am 2 pm

FOMC minutes

FRIDAY, JULY 6

FRIDAY, JULY 6

FRIDAY, Disclaimer JULY 6

FRIDAY, JULY 6

FRIDAY, JULY 6

FRIDAY, JULY 6

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