Special report-29-october-2018-epic-research

Page 1

Special Report 29-Oct-2018

Global markets at a glance The S&P 500 ended at its lowest level since early May on Friday and flirted with correction territory after technology and internet shares sold off further, capping another volatile week for US stocks. During the session, the benchmark S&P 500 fell more than 10 percent from its Sept. 20 record closing high, but pared losses to end above that level. A finish of 10 percent or more below its all-time closing high would confirm a correction.The Nasdaq registered its biggest weekly drop since March 23 after confirming a correction earlier in the week.Grim results late Thursday from Amazon.com Inc and Alphabet Inc, two stocks that have helped power the equity markets decade-long bull run, sparked the day’s selloff and overshadowed data showing the US economy continued to grow at a healthy clip. Asian shares wobbled in early Friday trade, struggling to shake off the previous day’s global markets rout, after weak results from tech giants Alphabet Inc and Amazon.com heightened concerns over world trade and economic growth. The shaky start for regional bourses came despite a bounce on Wall Street overnight, which was helped by bargainhunting and positive earnings from Microsoft Corp.Those gains were put into perspective, however, as shares of both Amazon.com Inc and Alphabet Inc fell sharply after the closing bell on disappointing earnings. PREVIOUS DAY ROUNDOFF The market fell for a second consecutive day on Friday (October 26), which was the first day of the November series. It ended a volatile session sharply lower, but managed to defend the psychological 10,000 level. The Nifty 50 opened flat at 10,122.35, but corrected sharply to hit an intraday low of 10,004.55. The index made many attempts to hold 10,100 levels amid volatility, but failed and finally closed 94.90 points lower at 10,030.The index formed a large bearish candle which resembles a 'Bearish Belt Hold' kind of pattern on the daily charts as well as weekly scale. India VIX moved up by 3.21 percent to 19.57 levels. Volatility is not cooling off, which is concerning the market. It has to go down below 17-16 zones to rescue the bulls after the sharp cut of last two months. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[-18.85pts], Consumption[-14.90pts],PSE[-23.90pts],CPSE [+1.95pts],Energy[32.35pts],FMCG[-400.05pts],Auto[2.90pts],Pharma[ -27.60pts],IT[272.20pts],Metal[ 22.90pts],Realty[-0.60 pts], Fin Serv sector[-81.60pts].

World Indices Index

Value

% Change

DJI

24,688.31

-1.19

S&P500

2,658.69

-1.73

NASDAQ FTSE100

6,852.40 6,939.56

-2.34

-0.93

21,184.60 24,717.63

-0.40 -1.12

NIKKEI HANG SENG

Top Gainers Company

CMP

Change

% Chg

UPL

622.70

23.25

3.88

Titan Company

806.90

15.65

1.98

Tata Motors

168.50

3.15

1.91

Bajaj Auto

2,513.75

36.20

1.46

Reliance

1,044.90

14.10

1.37

CMP

Change

% Chg

HCL Tech

180.70 337.45 537.70 966.60

-17.65 -15.95 -23.35 -38.25

-8.90 -4.51 -4.16 -3.81

Grasim

759.05

-25.65

-3.27

Top Losers Company Yes Bank JSW Steel Axis Bank

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

ATNINTER

0.15

0.05

33.33

BLUECHIP

0.45

0.05

11.11

999.99

0.02

0

-

-

-

-

-

-

-

-

ICICILIQ

Stocks at 52 Week’s LOW Symbol

21STCENMGM 3IINFOTECH 8KMILES ABAN ABCAPITAL

Prev. Close

Change

%Chg

24.5 3.15 88.4 72.5 96.9

-0.45 -0.05 -4.4 -1.7 -2.05

-1.84 -1.59 -4.98 -2.34 -2.12

Indian Indices Company

CMP

Change

% Chg

NIFTY

10030.00

-94.90

-0.94

SENSEX

33349.31

-340.78

-1.01

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Special Report 29-Oct-2018

RECOMMENDATIONS [FUTURE] 1.CADILAHC [FUTURE ] As per market weakness the particular counter is moving in a downtrend but it has tendency to show some pull back from its support level and as per the hourly chart it has shown a sign of reversal with three bullish candle, buy on dip opportunity would be great opportunity to get so we advice you to buy cadilahc around 339-341 for the targets of 345350 with stoploss below 336.

2.BHARATFIN [FUTURE] With the weakness in financial services sector the particular counter is also moving in downtrend and making a bearish continuation pattern, after reversing from its resistance level of 934 it closed below its support level of 889 which indicates a clear breakout ,sell on weakness would be good opportunity to trade so we advice you to sell bharatfin around 882-880 for the targets of 870-860 with stoploss above 890.

STOCK RECOMMENDATION [CASH] DEN - [CASH] Since few trading sessions the stock is reversing from its crucial support level of 66 here it has made a bearish doji candle and two bull candle in the previous trading session the market was negative but still it mamanged to maintain its positivity. From here we can get an clear sign of breakout also the 26 period base line (kijun sen) is acting as a crucial support level and shifting upward with its movement so it would be better to follow buy around 6970 for the targets of 71-72 with stoploss below 68.

MACRO NEW  Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 56 points or 0.56 percent. Nifty futures were trading around 10,103level on the Singaporean Exchange.  Small and medium enterprises (SMEs) raised Rs 1,281 crore through initial share-sales in April-September period of the current fiscal, registering a nearly two fold jump from the year-ago period. Funds raised through IPOs were meant for business expansion plans, working capital requirements and other general corporate purposes, according to offer documents. A total of 74 companies got listed with initial public offers (IPOs) worth Rs 1,281 crore in the first six months of the ongoing fiscal, compared to 58 firms which tapped the IPO route to garner Rs 656 crore in the same period last financial year, as per the data provided by merchant bankers.  Oil prices held steady on Monday, supported by an early bounce in Asian stocks, but analysts said sentiment remains cautious after a plunge across financial markets last week triggered worries that global growth may be slowing. Front-month Brent crude oil futures were at $77.77 a barrel at 0033 GMT, up 15 cents, or 0.2 percent, from their last close.

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Special Report 29-Oct-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION

AAVAS Financiers Q2: Profit rises to Rs 35.28 crore versus Rs 32.86 crore; revenue jumps to Rs 163.62 crore versus Rs 128.03 crore YoY.

6,37,273

21,12,300

Nucleus Software Q2: Profit increases to Rs 19.14 crore versus Rs 17.59 crore; revenue rises to Rs 121.49 crore from Rs 112.61 crore QoQ.

24

5,19,070

13,72,640 

1,060

4.7

20,271

16,52,000

DB Realty Q2: Loss at Rs 16.8 crore versus Rs 12.4 crore; revenue falls to Rs 0.20 crore versus Rs 2.44 crore YoY.

CE

1,080

1.15

17,738

BAJFINANCE

CE

2,300 40.15

14,557

20,91,000 NIFTY FUTURE 6,77,000

RELIANCE

CE

1,100

0.55

11,690

32,56,000

BAJFINANCE

CE

2,250

76

8,626

1,43,000

Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

Open Interest

NIFTY

CE

10,300

20

6,80,735

31,64,550

NIFTY

CE

10,200

68

BANKNIFTY

CE

25,500

RELIANCE

CE

RELIANCE

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

Optio Strike n Price Type

BANKNIFTY

2,83,500

LTP

Traded Volume (Contracts)

Open Interest

PE

24,400 289.7

1,38,106

90,980

NIFTY

PE

10,000

218

1,18,108

34,03,875

BANKNIFTY

PE

24,600 397.25

1,10,214

RELIANCE

PE

1,000

23.2

4,366

YESBANK

PE

180

17

4,107

RELIANCE

PE

1,020 30.25

3,356

RELIANCE

PE

1,040 38.95

3,203

YESBANK

PE

53,140 Nifty future finally broke its crucial support level of 7,43,000 10140,and closed with a bearish candle, now 9990 is the next support level however a slide upside move could be 14,61,250 seen around 10050-80 from the current level but due to 3,23,000 the market weakness the downtrend can be resumed so 3,70,500 we advice you to sell nifty future around 10050-80 for the targets of 10000-9950 with stoploss above 11030. 11,35,750

170

12.4

3,199

FII DERIVATIVES STATISTICS BUY

SELL

No. of Contracts

Amount in Crores

INDEX FUTURES

73946

4619.45

72111

4765.99

INDEX OPTIONS

1001953

57259.97

983452

STOCK FUTURES

330001

16696.10

STOCK OPTIONS

100161

5482.55

OPEN INTEREST AT THE END OF THE DAY

No. of Amount in No. of Contracts Crores Contracts

Amount in Crores

NET AMOUNT

320587

22900.51

-146.5317

56495.98

687254

48146.91

763.986

319543

16154.86

1413465

77292.40

541.24

98899

5393.56

54369

2965.15

88.9889 1247.6832

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

10178.00

10104.00

10054.00

9980.00

9930.00

BANKNIFTY

24933.00

24677.00

24515.00

24259.00

24097.00

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Special Report 29-Oct-2018

RECOMMENDATIONS GOLD TRADING STRATEGY: BUY GOLD DEC FUT ABOVE 32000 TGT 32050 32100 SL BELOW 31950 SELL GOLD DEC FUT BELOW 31900 TGT 31850 31800 SL ABOVE 31950

SILVER TRADING STRATEGY: BUY SILVER DEC FUT ABOVE 38750 TGT 38800 38850 SL BELOW 38700 SELL SILVER DEC FUT BELOW 38650 TGT 38600 38550 SL ABOVE 38700

COMMODITY ROUNDUP Gold prices rose by another Rs 125 to trade at over six-year high of Rs 32,625 per 10 gram Thursday, buoyed by pick-up in festive and wedding season demand by local jewellers amid firm global trends and weakening rupee. Silver, however, remained weak and fell by Rs 130 to Rs 39,600 per kg due to slackened demand from industrial units. Bullion traders said sentiments also got a boost on firming trend in overseas where gold traded at over threemonth high as the dollar eased and equities slumped. Besides, weakness in the local currency also added to investor sentiments. Globally, gold was trading at USD 1,234.20 an ounce in Singapore Thursday. Besides, a pick-up in buying by local jewellers to meet seasonal demand at domestic spot markets and diversion of funds from falling equity markets also supported the uptrend, they said. In the national capital gold of 99.99 and 99.5 per cent purity rallied by Rs 125 each to Rs 32,625 and Rs 32,475 per 10 gram, respectively. This is the highest level since November 29, 2012 when the precious metal had closed at Rs 32,940 per ten gram. This is the third straight session of gain for the yellow metal which has gained Rs 405 since October 23. Sovereign gold, however, traded steady at Rs 24,800 per piece of eight gram. On the other hand, silver ready extended its weakness by prices falling by another Rs 130 to Rs 39,600 per kg. Silver coins, however, remained unaltered at Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces. Weakness in global stock markets continued to weigh on crude oil futures. WTI Crude dropped around two month lows near $66 per barrel following the recent selloff. MCX Crude oil futures also fell under Rs 5000 per barrel following the global correction. US crude oil inventories, excluding the Strategic Petroleum Reserve, increased by 6.3 million barrel for the week ended October 19, according to data from the US Energy Information Administration or EIA. US crude oil imports averaged 7.7 million b/d, up by 63,000 barrels per day (b/d)from the previous week. Over the last 4 weeks, crude oil imports averaged 7.7 million b/d, 0.7% more than the same period last year. Total motor gasoline imports averaged 331,000 b/d. Distillate fuel imports averaged 163,000 b/d. Meanwhile, at 422.8 million bbl, US crude oil inventories are about 2% above the 5-year average for this time of year. Meanwhile, some bargain buying is possible in the commodity after a near 10 dollar correction in the prices from their four year highs. The low water levels on the Rhine River in Europe have resulted in transportation disruptions for shipments of petroleum products by barge.

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Special Report 29-Oct-2018

RECOMMENDATIONS GUARGUM5 TRADING STRATEGY: BUY GUARGUM OCT ABOVE 10350 TARGET 10400 10450 SL 10300 SELL GUARGUM OCT BELOW 10250 TARGET 10200 10150 SL 10300

NCDEX INDICES Index

Value

% Change

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

1875 5466 3946 5787 1873.5 4696.5

-0.48 0 -1.47 -0.57 -0.13 -1.53

Jeera

19590

-1.14

4176 3259 6670

-0.97 -1.12 0.03

Mustardseed Soy Bean Turmeric

DHANIYA TRADING STRATEGY: BUY CORIANDER OCT ABOVE 5820 TARGET 5870 5920 SL 5770 SELL CORIANDER OCT BELOW 5750 TARGET 5700 5650 SL 5800

Heavy selling was seen in chana and wheat market due to fragile demand by millers at higher levels along with stock liquidation by government agencies. In today's trading both Chana and wheat futures hammered by more than 2 percent. The market sources added that heavy stock selling by NAFED to cater domestic festival demand has maintained adequate supplies in local mandies. On the other side, selling was also emerged in guraseed counter as traders have reported some profit taking in guar market. The sources have estimated 60 thousand bags of daily arrivals of guar seed. The daily arrivals are likely to increase in the coming days. The NCDEX Guarseed November futures declined by 0.40 percent today. Sharp selling was seen in across all agri commodities on the back of strong kharif supplies in local mandies coupled with limited demand at current levels. All the major counters such as spices and oilseeds complex settled with losses.The NCDEX Chana futures settled in red as prices were guided by heavy stock liquidation by NAFED in local mandies. The daily arrivals were reported at 20 motors today in Delhi. On the other side, selling was seen in oilseeds market as prices declined today due to bearish nodes from international market along with sowing trend of Soyabean crop so far in the current year. Soyabean market has reported 11 lakh bags of arrivals today , around 6 lakh bags higher from last day. Weakness was seen in Jeera market due to fragile export at elevated levels. The NCDEX November futures declined by 0.40% today. The prices have declined by almost 6% from peak. While limited trading was seen in turmeric market as prices were hovering around last close to settle with marginal losses.

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Special Report 29-Oct-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

73.3740 Yen

65.4100

Euro

83.4077 GBP

94.0503

USD/INR TRADING STRATEGY: BUY USDINR ABOVE 74.00 TGT 74.50/75.00 SL BELOW 73.50 SELL USDINR BELOW 73.00 TGT 72.50/72.00 SL ABOVE 73.50

GBP/INR TRADING STRATEGY: BUY GBPINR ABOVE 94.80 TGT 95.30/95.80 SL BELOW 94.30 SELL GBPINR BELOW 93.00 TGT 92.50/92.00 SL ABOVE 93.50

The euro skidded to its weakest since Aug. 20 on Wednesday after signs that economic growth could be slowing in Germany and France, the euro zone's two biggest economies. German private-sector growth slowed to its lowest level in more than three years as manufacturing and services both lost momentum, below forecasts, while manufacturing in France hit a 25-month low, widely-watched surveys showed. The single currency, earlier trading flat, dropped 0.4 per cent to $1.1422 after the surveys were published. The euro was the only big mover, with broader currency markets treading water as investors stay nervous about which direction to take despite some calm coming back into the market after this week's sharp falls in equity prices. The euro was the only big mover, with broader currency markets treading water as investors stay nervous about which direction to take despite some calm coming back into the market after this week's sharp falls in equity prices. The Japanese yen - often bought when broader markets slide - gave up some of its earlier gains, suggesting renewed demand for risk-taking as Asian stock markets rebounded. Big falls in stock prices have shaken foreign exchange markets this week, with the yen the main gainer, although currencies have largely remained calm as investors weigh up whether equity weakness is a major correction or just another wobble in a nearly decade-long bull-market run. The rupee bounced back from the day's low level to settle almost flat at 73.57 against the US currency Tuesday helped by easing crude oil prices and increased dollar selling by banks and exporters. The rupee opened weak at 73.74 and later fell to the day's low of 73.82 due to steady capital outflows amid deep losses in stock markets due to growing geopolitical concerns. However, retreating crude oil prices which fell 1.93 per cent to USD 78.29 per barrel eased concerns and helped arrest a decline in the local currency, a dealer said. Increased dollar selling by banks on the behalf of the Reserve Bank helped the rupee recover from losses. "Rupee pared losses and closed flat as crude oil prices retreated and dollar selling by state run lenders on behalf of RBI," V K Sharma, Head PCG & Capital Markets Group, HDFC Securities said.

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Special Report 29-Oct-2018

Date

Commodity/ Currency Pairs

26/10/18

NCDEX DHANIYA

SEP

BUY

26/10/18

NCDEX DHANIYA

SEP

26/10/18

NCDEX GUARGUM5

26/10/18

Contract Strategy

Entry Level

Target

Stop Loss

Remark

5670

5700 5750

5620

OPEN

SELL

5600

5550 5500

5650

NOT EXECUTED

OCT

BUY

10150

10200 10250

10100

NOT EXECUTED

NCDEX GUARGUM5

OCT

SELL

10050

10000 9950

10100

NOT EXECUTED

26/10/18

MCX GOLD

OCT

BUY

32030

32080 32120

31990

OPEN

26/10/18

MCX GOLD

OCT

SELL

31750

31700 31650

31800

TARGET HIT

26/10/18

MCX SILVER

SEP

SELL

39150

39200 39250

39100

TARGET HIT

26/10/18

MCX SILVER

SEP

BUY

38650

38600 38550

38700

NOT EXECUTED

Date

Scrip

CASH/ FUTURE/ OPTION

Strategy

Entry Level

Target

Stop Loss

Remark

26/10/18

NIFTY

FUTURE

BUY

10190-200

10250-300

10130

NOT EXECUTED

26/10/18

JSWSTEEL

FUTURE

BUY

351-352

355-360

348

NOT EXECUTED

26/10/18

BANKBARODA

FUTURE

SELL

100-101

98-96

103

TARGET HIT

26/10/18

CENTURYPLY

CASH

BUY

172-173

175-178

170

SL TRIGGERED

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Special Report 29-Oct-2018

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

REPORT

PERIOD

ACTUAL

FORECAST

PREVIOUS

0.4%

0.3%

0.1%

0.0%

TUESDAY, OCT. 30

TUESDAY, OCT. 30

136.5

138.4

MONDAY, OCT. 29 8:30 am

Personal income

Sept. 8:30 am

8:30 am

Core inflation

Sept.

TUESDAY, OCT. 30

TUESDAY, OCT. 30

TUESDAY, OCT. 30

TUESDAY, OCT. 30

9 am 10 am

Consumer confidence index

Oct.

10 am

Home ownership

Q3 WEDNESDAY, OCT. 31

8:15 am

ADP employment

Oct.

8:30 am

Employment cost index

Q3

9:45 am

Chicago PMI

Oct.

THURSDAY, NOV. 1

THURSDAY, NOV. 1

THURSDA Y, NOV. 1

230,000 0.8%

0.6% 60.4

THURSDAY, NOV. 1

THURSDAY, NOV. 1

THURSDAY, NOV. 1

2.3%

2.9%

1.3%

-1.0%

8:30 am 8:30 am

Productivity

Q3

8:30 am

Unit labor costs

9:45 am

Markit manufacturing PMI

Oct. final

10 am

ISM manufacturing index

Oct.

58.8%

59.8%

10 am

Construction spending

Sept.

0.4%

0.1%

Varies

Motor vehicle sales

Oct.

17.2 mln

17.4 mln

Disclaimer Q3

55.9

The information and views in this report, our website & all the service we provide are believed to be reliable, but we do not accept any responsibility (or liability) for errors of fact or opinion. Users have the right to choose the product/s that suits them the most. Sincere efforts have been made to present the right

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