Special Report 29-Aug-2018
Global markets at a glance The S&P 500 and the Nasdaq edged up to record highs for the third consecutive session on waning trade jitters that have vexed the markets for much of the year. On the heels of the United States-Mexico agreement to overhaul the North American Free Trade Agreement (NAFTA), focus shifted to United States' trading partner to the north as Canada's top trade negotiator joined her Mexican and U.S. counterparts in Washington in a bid to remain in the trilateral pact. All three major US indexes were marginally up in a session of back-and-forth trading as investors debated whether to take profits or ride the market's momentum. Technology companies led the advance, offset by declines utilities , materials and telecom sectors Asian share markets were left in limbo on Wednesday as optimism over the US-Mexico trade deal was quickly replaced by caution ahead of a looming deadline on tariffs with China.A flat finish on Wall Street and a dearth of major economic data across the region pointed to a quiet session ahead. MSCI's broadest index of Asia-Pacific shares outside Japan edged up just 0.02 percent in early trade.Japan's Nikkei rose 0.3 percent, while EMini futures for the S&P 500 added 0.11 percent.Wall Street offered little in the way of direction. The Dow ended Tuesday up a bare 0.06 percent, while the S&P 500 gained 0.03 percent and the Nasdaq 0.15 percent.According to Pivot charts, the key support level is placed at 11,712, followed by 11,686. If the index starts moving upwards, key resistance levels to watch out are 11,762 and 11,786.The Nifty Bank index closed at 28,269, up 5 points. The important Pivot level, which will act as crucial support for the index, is placed at 28,152, followed by 28034. On the upside, key resistance levels are placed at 28,388, followed by 28,506. Previous day Roundup Indian market hit fresh records on August 28 supported by positive global cues. The Nifty50 hit a new high of 11,760, but witnessed profit booking at higher levels and closed near its opening level forming a ‘Doji’ type of candle on the daily candlestick charts.Although the Nifty50 surpassed 11,750, it witnessed profit booking near 11,760 which pushed the index towards 11,700 levels. However, bulls managed to pull the index near its opening level of 11,731. The index finally closed 46 points higher at 11,738. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[27.05], Consumption[1.75pts],PSE[-33.15pts],CPSE[37.85pts],Energy[158.95pts],FMCG[ -109.75pts],Auto [5 0 .60 pts],P harm a[ -44 .10 pts],IT[6 8 .1 0 pts],M etal [64.35pts],Realty[-2.45 pts], Fin Serv sector[55.75pts].
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
239.00
8.75
3.80
Adani Ports
386.95
8.30
2.19
Reliance
1,319.00
27.50
2.13
Vedanta
230.30
4.80
2.13
9,427.95
182.70
1.98
Maruti Suzuki
Top Losers Company
CMP
Change
% Chg
GAIL Yes Bank HPCL Cipla HUL
364.25 370.60 256.90 648.30 1,771.20
-19.10 -12.40 -5.15 -11.30 -21.10
-4.98 -3.24 -1.97 -1.71 -1.18
Stocks at 52 Week’s HIGH Symbol
ADANIENT
Prev. Close
Change
%Chg
211.85
17
8.02
80.85
6.15
7.61
3142.25
-7.35
-0.23
650.2
9.15
1.41
2950.75
-13.75
-0.47
Prev. Close
Change
%Chg
7.6 659.6 83.75 9.1 57.15
-0.15 -11.6 8.35 0.45 -2.45
-1.97 -1.76 9.97 4.95 -4.29
AFL ATUL AXISBANK BAJFINANCE
Stocks at 52 Week’s LOW Symbol
CENTEXT CIPLA DELTAMAGNT ELECTROSL FILATEX
Indian Indices Company
CMP
Change
% Chg
NIFTY
11738.50
46.50
0.40
SENSEX
38896.63
202.52
0.52
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Special Report 29-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 259-260 for the targets of 264-268 with the stoploss below 256.
MACRO NEWS Trends on SGX Nifty indicate a flat to negative opening for the broader index in India, a fall of 10 points or 0.09 percent. Nifty futures were trading around 11,749-level on the Singaporean Exchange. North Korean officials have warned in a letter to the United States that denuclearization talks were "again at stake and may fall apart", CNN reported on Tuesday, citing people familiar with the matter. The letter was delivered directly to US Secretary of State Mike Pompeo, and stated that North Korean leader Kim Jong Un's government felt that the process could not move forward."The US is still not ready to meet (North Korean) expectations in terms of taking a step forward to sign a peace treaty," CNN reported, citing sources. Losses for public sector banks (PSBs) in the financial year ending March 2019 could be in the range of Rs 41,900 crore and Rs 1.02 lakh crore, according to ICRA Ltd. As per the rating agency's report, the losses before tax for PSBs for FY2019 are estimated at Rs 419 -1016 billion depending on the credit provisioning on stressed assets undergoing resolution.This is compared to a loss before tax of Rs 24,000 crore during Q1 FY19 (April to June 2018) and Rs 1.30 lakh crore that PSBs reported in FY2018.
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Special Report 29-Aug-2018
STOCKS IN NEWS
MOST ACTIVE CALL OPTION Symbol
Optio Strike n Price Type
LTP
Traded Volume (Contracts)
Open Interest
BANKNIFTY
CE
28,300 121.75
3,83,665
6,81,840
BANKNIFTY
CE
28,400
76
3,80,037
6,79,720
NIFTY
CE
11,800
17
3,66,403
26,53,575
RELIANCE
CE
1,320
11
25,833
20,33,000
RELIANCE
CE
1,300 23.95
19,343
13,01,000
MARUTI
CE
9,500
41
18,430
2,23,125
MARUTI
CE
9,400
75.8
17,581
1,17,375
RELIANCE
CE
1,340
4.75
14,198
22,42,000
MARUTIACTIVE PUT CE OPTION 9,000 111.5 5,823 MOST Symbol
Intec Capital: Company approves re-appointment of Sanjeev Goel as Managing Director
JMC Projects board allotted NCD worth Rs 150 crore on private placement basis
NIFTY FUTURE
2,83,500
Traded Volume (Contracts)
Indian market hit fresh records on August 28 supported
Optio Strike n Price Type
LTP
Open Interest by positive global cues. The Nifty50 hit a new high of
NIFTY
PE
11,700
18.6
3,85,896
34,61,400
BANKNIFTY
PE
28,000
33.8
3,63,928
13,15,720
BANKNIFTY
PE
28,200
65.5
3,60,440
7,61,360
RELIANCE
PE
1,300
3.65
12,329
16,13,000
RELIANCE
PE
1,280
1.4
11,032
15,81,000
YESBANK
PE
370
5.8
6,775
23,27,500
MARUTI
PE
9,200
13
6,539
94,125
YESBANK
PE
360
2.55
5,769
20,40,500
11,760, but witnessed profit booking at higher levels and closed near its opening level forming a ‘Doji’ type of candle on the daily candlestick charts.Although the Nifty50 surpassed 11,750, it witnessed profit booking near 11,760 which pushed the index towards 11,700 levels. However, bulls managed to pull the index near its opening level of 11,731. The index finally closed 46 points higher at 11,738.Here you can go for a long position in nifty future around the levels of 11660-670 for the targets of 11700-11750 with stoploss below 11620
FII DERIVATIVES STATISTICS BUY
SELL
No. of Contracts
Amount in Crores
INDEX FUTURES
67562
6068.96
58283
5411.96
INDEX OPTIONS
719029
71706.66
725473
STOCK FUTURES
319143
23549.84
STOCK OPTIONS
106937
8406.67
OPEN INTEREST AT THE END OF THE DAY
No. of Amount in No. of Contracts Crores Contracts
Amount in Crores
NET AMOUNT
381637
33805.23
657.0007
72234.77
782418
70981.30
-528.1025
307412
22692.80
1166743
89885.01
857.0407
106074
8326.03
156605
12167.26
80.6386 1066.5775
INDICES
R2
R1
PIVOT
S1
S2
NIFTY
11786.00
11762.00
11736.00
11712.00
11686.00
BANKNIFTY
28505.00
28387.00
28269.00
28151.00
28033.00
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Special Report 29-Aug-2018
RECOMMENDATIONS GOLD TRADING STRATEGY: BUY GOLD ABOVE 30200 TGT 30300 30500 SL BELOW 30100 SELL GOLD BELOW 30000 TGT 29900 29700 SL ABOVE 30100
SILVER TRADING STRATEGY: BUY SILVER ABOVE 37400 TGT 37600 37900 SL BELOW 37200 SELL SILVER BELOW 37100 TGT 36900 36600 SL ABOVE 37300
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 29-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
1590.5 4600 3955 4621 1656.5 4171
-0.66 0.2 -0.68 0.24 -1.22 0.49
Jeera
19145
0.9
4003 3180 6802
-0.07 -0.13 0.50
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 29-Aug-2018
RBI Reference Rate Currency
Rate Currency
Rate
Rupee- $
70.1687 Yen
63.0800
Euro
81.9266 GBP
90.3263
USD/INR TRADING STRATEGY: BUY USDINR ABOVE 70.30 TGT 70.60 70.90 SL BELOW 70.00 SELL USDINR BELOW 69.90 TGT 89.60 89.30 SL ABOVE 70.20
GBP/INR TRADING STRATEGY: BUY GBPINR ABOVE 90.50 TGT 90.80 91.10 SL BELOW 90.20 SELL GBPINR BELOW 90.10 TGT 89.80 89.50 SL ABOVE 90.40
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 29-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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