Special report-3-january-2019-epic-research

Page 1

Special Report 03 –JAN-2019

Global markets at a glance Asian shares crept cautiously higher on the first trading day of the new year as early gains in US stock futures spoke of some improvement in risk appetite.MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.14 percent, as E-Mini future for the S&P 500 ESc1 firmed 0.5 percent and Nasdaq futures NQc1 0.7 percent. Japan's Nikkei was closed for a holiday Wall Street has benefited from the merest hint of progress on the Sino-US trade standoff, though details were still notably lacking. Asian shares crept cautiously higher on the first trading day of the new year as early gains in US stock futures spoke of some improvement in risk appetite.MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.14 percent, as E-Mini future for the S&P 500 firmed 0.5 percent and Nasdaq futures 0.7 percent. Japan's Nikkei was closed for a holiday.

World Indices Index

Value

% Change

DJI

23346.24

+0.081

S&P500

2510.03

+0.13

NASDAQ

6665.94

+0.46

FTSE100

6734.23

+0.09

20014.77 25150.12

-0.31 +0.08

NIKKEI HANG SENG

Top Gainers Company

CMP

Change

% Chg

Sun Pharma

439.95

6.40

1.48

Bharti Infratel

265.20

2.95

1.12

TCS

1,919.00

16.20

0.85

Asian Paints

1,380.05

8.50

0.62

668.00

2.95

0.44

CMP

Change

% Chg

21,014.00 -2,181.10 287.40 -16.55 193.20 -8.90 492.50 -23.25 740.55 -32.80

-9.40 -5.44 -4.40 -4.51 -4.24

Infosys There was some hope of progress on the US government shutdown after President Donald Trump invited Republican and Democratic congressional leaders to a border security briefing.However, it was not clear who would attend the meeting, which was set for later on Wednesday, or whether a deal would even be discussed.Also looming are a closely-watched survey on US manufacturing due on Thursday, followed by the December payrolls report on Friday.

Top Losers Company

Eicher Motors JSW Steel Vedanta Tata Steel M&M

Stocks at 52 Week’s HIGH PREVIOUS DAY ROUNDOFF Benchmark indices closed the first session of the new year 2019 on a positive note on January 1 with gains of around half a percent driven by banking & financials stocks. The 30 -share BSE Sensex rose 186.24 points to 36,254.57 while the 50-share NSE Nifty gained 47.60 points to close at 10,910.10 in the absence of global cues.After opening higher the index immediately slipped into the red and continued to trade in a narrow range, but gained strength in the last hour to climb above 10,900 levels. It formed 'Hammer' kind of pattern on the daily charts. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[-59.35pts], Consumption[-66.35pts],PSE[-50.95pts],CPSE[22.2pts],Energy[+207.45ts],FMCG[-203.35pts],Auto[279.8pts],Pharma[-42pts],IT[-3.8pts],Metal[106.8pts],Realty[-3.4pts], Fin Serv sector[-118.85pts].

Symbol

Prev. Close

Change

%Chg

108.3

-0.2

-0.18

2291.95

338.05

14.75

LIQUIDETF

1000

0

0

NIFTYEES

13200

-150

-1.14

PROSEED

1.35

-0.05

-3.7

DVL JSWHL

Stocks at 52 Week’s LOW Symbol

Prev. Close

Change

%Chg

ABSLNN50ET

292

-12

-4.11

ARROWTEX

24

-1.75

-7.29

67.9 23.15 0.95

-1.9 -0.8 0.05

-2.8 -3.46 5.26

BYKE CALSOFT CHROMATIC

Indian Indices Company

CMP

Change

% Chg

NIFTY

10792

117.60

1.08

SENSEX

35891

363.05

1.00

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Special Report 03 –JAN-2019

RECOMMENDATIONS [FUTURE]

STOCK RECOMMENDATION [CASH]

1. SUNPHARMA(FUTURE ) Sun Pharma share given breakout of ascending triangle pattern on daily chart, since Nifty was negative due to that it closed only 1.31 per cent gains. Here on daily chart 436 is polarity for Sun Pharma and the last closing is above the same so here we can see 470 level in next week but according to pattern support points is 425 so buy it around 435-437.

KRBL Last session Nifty closed around one per cent loss but many of the Food stock given rally in which KOHINOOR was the top gainers due that KRBL also bounce back from support of 280 and after making high of 296.50 it closed at 291.25 while 297 is strong resistance on weekly chart, so above 297.50 we can see intraday rally in next session due to that it can be buy with stop loss of 289 for the target of 307 320.

2. TORNTPOWER [FUTURE]

MACRO NEWS

This stock respected to 50DMA level on daily chart and after  making low of 254.90 it closed at 257.95 with doji candle since the 252-254 is strong support zone and many time this share has been bounce back from this level so we advise to buy it around 256 for the target of 260 264 with stop loss of  252

The Railways is likely to begin the commercial run of the much awaited Train 18 between Delhi and Varanasi next week, just ahead of the Kumbh Mela in Allahabad which begins on January 14, sources said.

Demand for new motorcycles and scooters slowed down significantly in December as three of the top five companies posted flat to negative growth in sales.The four brands that announced their December sales numbers – Hero MotoCorp, TVS Motor Company, Bajaj Auto, Royal Enfield – clocked only two percent growth at 8.77 lakh as against 8.59 lakh sold in the same month a year earlier.

Royal Enfield's harmonious relationship with India's leisure biking segment is witnessing the seven-year itch. The Eicher Motors-controlled brand has clocked its worst monthly sales performance since June 2011. And the reason is clear — the comeback of Jawa motorcycles.

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Special Report 03 –JAN-2019

STOCKS IN NEWS

MOST ACTIVE CALL OPTION Symbol

Optio Strike n Price Type

LTP

Traded Volume (Contracts)

BANKNIFTY

CE

27,500

BANKNIFTY

CE

27,400 30.85 13,22,203

BANKNIFTY

CE

27,300 51.95 11,21,946

NIFTY

CE

11,000 103.9

1,82,672

RELIANCE

CE

1,140 21.75

6,817

RELIANCE

CE

1,160

15.5

4,780

TATASTEEL

CE

520

8.35

3,950

SBIN

CE

300

7.4

3,705

16 14,08,566

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

Optio Strike n Price Type

BANKNIFTY

Open Interest

RBL Bank appoints Pankaj Sharma as Chief Operations Officer

16,52,300 

Bharti Airtel: Lost 18.6 Lakh Subscribers Vs Loss Of 23.6 Lakh (MoM)

10,49,280

9,82,360 NIFTY FUTURE Last trading session NIFTY Future close on negative note and losing around 1.08%, Due to weak 31,42,950 global and domestic cues and nifty give up 11,75,500 10800,Weakness are visible to metal and Auto sectors if 8,89,000 we go technically on chart we can clearly see that NIFTY major resistance level around 10980-11000 But not 17,42,162 sustain at higher level,and we seen profit booking at 36,72,000 higher level and bearish sentiment is strong across sectors.So we can follow sell on rise strategy it will be 2,83,500 good for the target of 10750-10600 with the SL of 10900.

LTP

Traded Volume (Contracts)

Open Interest

PE

27,000 45.45

13,69,229

12,11,320

BANKNIFTY

PE

27,100

73.1

10,82,616

4,97,460

NIFTY

PE

10,500

80.4

1,20,150

40,84,650

NIFTY

PE

10,800 174.95

1,17,216

23,65,425

RELIANCE

PE

1,100

29.4

4,420

5,71,000

TATASTEEL

PE

500

20.5

3,620

10,36,597

RELIANCE

PE

1,060 14.95

3,321

4,18,500

MARUTI

PE

7,000 102.25

3,131

68,325

FII DERIVATIVES STATISTICS BUY No. of Contracts

SELL Amount in Crores

OPEN INTEREST AT THE END OF THE DAY

No. of Amount in No. of Contracts Crores Contracts

Amount in Crores

NET AMOUNT

INDEX FUTURES

12278

825.14

19399

1301.13

311072

24964.97

-475.9887

INDEX OPTIONS

632309

36084.38

625429

35681.08

532109

40745.08

403.2906

STOCK FUTURES

64864

3951.31

66343

4034.72

1285282

79274.68

-83.4048

STOCK OPTIONS

36088

2175.71

35120

2103.35

53422

3203.14

72.3644 -83.7385

INDICES

R2

R1

PIVOT

S1

S2

NIFTY

10967

10879

10807

10719

10647

BANKNIFTY

27536

27355

27216

27035

26896

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Special Report 03 –JAN-2019

RECOMMENDATIONS GOLD TRADING STRATEGY: BUY GOLD ABOVE 31700 TGT 31750 31850 SL 31620 SELL GOLD BELOW 31600 TGT 31520 31420 SL ABOVE 31680

SILVER TRADING STRATEGY: BUY SILVER ABOVE 39100 TGT 39250 39450 SL BELOW 38900 SELL SILVER BELOW 38900 TGT 38750 38550 SL 39100

COMMODITY ROUNDUP Gold hit its highest level since June 20 on Wednesday, helped by weaker equity prices which increased its appeal as a safe-haven asset. Crude oil rallied on Wednesday, boosted by signs of tighter supplies from Saudi Arabia. After a promising opening to the new year, natural gas prices fell after new forecasts called for mild temperatures for the first half of January. The heightened volatility in the stock market also had an impact on the commodity markets and vice-versa. Gold prices were supported by safe-haven buying early in the session before giving back some of those gains. Crude oil was pressure by weaker-than-expected manufacturing data from China, the Euro Zone and the United States. Support for natural gas continued to erode due to expectations of weaker demand. The truce between the US and Russian aluminium company Rusal was initially expected to have a limited impact on the aluminium market. But it’s now threatening to lead to a large round of earnings cuts for producers of the metal. Aluminium prices dropped to a 16-month low last month. This rules out a supply shock, which could have supported prices. With a supply shock now ruled out, prices are back to being determined by the risk of a slowdown in the global economy, especially China, where the outlook remains dull. Understandably, investors are wary. Shares of Hindalco Industries Ltd fell 4% on Wednesday. Oil prices fell on Thursday amid volatile currency and stock markets, and as analysts warned of an economic slowdown for 2019 just as crude supply is rising globally.U.S. West Texas Intermediate (WTI) crude oil futures CLc1 were at $45.93 per barrel at 0152 GMT, down 61 cents, or 1.3 percent, from their last settlement.International Brent crude futures LCOc1 were down 36 cents, or 0.7 percent, at $54.55 per barrel. Markets were roiled by a more than 3 percent crash of the U.S.-dollar against Japan's yen overnight JPY=D3 , and after U.S. tech giant Apple AAPL.O cut its sales forecast. did not foresee the magnitude of the economic deceleration, particularly in Greater China," Apple chief executive Tim Cook said. slowdown in China and turmoil in stock and currency markets is making investors nervous, including in oil markets. bank Jefferies said in a 2019 opening note to clients and employees that the start of the year "doesn't feel as firm, the future doesn't feel as certain and optimistic, and the path forward does not seem as clear."

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Special Report 03 –JAN-2019

RECOMMENDATIONS GUARGUM5 TRADING STRATEGY: BUY GUARGUM JAN ABOVE 8410 TARGET 8425/8445/8470 SL 8450 SELL GUARGUM JAN BELOW 8370 TARGET 8355/8335/8310 SL 8430

NCDEX INDICES Index

Value

% Change

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

1988 5172 4257 6335 1922 4279.5

0.45 -1.45 -1.21 -0.41 0.29 -0.88

Jeera

17475

-1.13

3941 3469 6666

-0.2 0.87 -1.36

Mustardseed Soy Bean Turmeric

DHANIYA TRADING STRATEGY: BUY DHANIYA JAN ABOVE 6400 TAGET 6415/6435/6460 SL 6340 SELL DHANIYA JAN BELOW 6390 TARGET 6375/6355/6330 SL 6450

Planters in Bengal tea belt are expecting bright post winter high value first flush output for the consecutive second year due to prevailing favorable weather conditions. Entire tea belt in Bengal has taken submergence deep under chill. While the mercury at in Terai and Dooars tea belts in foothills have dipped even lower than 5 Degree Celsius, many high altitude places have gone under thick snow cover. Darjeeling city itself and surrounding areas, known for premium quality tea, also had a day-long snow fall after a decade. According to Indian Meteorological Department, the low temperature is likely to continue for the first half of January. With the general election a few months away, the central government has begun crunching the numbers in preparation for a comprehensive programme to help farmers tide over challenges posed by a dip in prices and dwindling incomes. The government is keen on a more substantive intervention than a loan waiver at the central level to alleviate agrarian distress besides stepping up investments in the sector, having concluded that writing off debt doesn’t help address underlying problems. Milk prices are likely to go up in 2019, cooperative dairies said, as supplies are less than usual during this period. Lower returns to farmers have led to the drop in milk production in winter, when supplies tend to go up, they said.“Milk prices are bound to increase in 2019. Low stocks of skimmed milk powder (SMP) and a drop in milk supplies compared to previous year are the two major reasons,” said RS Sodhi, managing director of Gujarat Cooperative Milk Marketing Federation which owns the Amul brand.

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Special Report 03 –JAN-2019

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

69.7131 Yen

63.57

Euro

79.9330 GBP

88.9748

USD/INR TRADING STRATEGY: USD/INR

The Reserve Bank of India (RBI) issued norms for restructuring loans defaulted by micro, small and medium enterprises. The RBI permitted a one-time restructuring of existing loans to MSMEs that are in default but 'standard" as on January 1, 2019, the central bank said in a statement.

BUY USDINR JAN ABOVE 70.40 TARGET 70.52/70.65 SL 70.25 SELL USDINR JAN BELOW 70.20 TARGET 70.08/69.93 SL 70.35

To be eligible for the scheme, the aggregate exposure, including non-fund based facilities of banks and NBFCs, to a borrower should not exceed Rs 25 crore as on January 1, 2019. The restructuring has to be implemented by March 31, 2020. The Indian rupee kicked off 2019 on a resounding note, building up on gains of the previous two sessions and adding another 34 paise on January 1 to close at 69.43 against the US dollar on increased selling of the greenback by exporters and smart gains in domestic equities. The domestic unit has rallied by a hefty 92 paise in the last three trading sessions.At the Interbank Foreign Exchange (forex), the rupee opened on a firm note at 69.63. It gained further to hit a high of 69.43 following dollar selling by exporters, before finally closing at 69.43, up 34 paise.

GBP/INR TRADING STRATEGY: BUY GBPINR JAN ABOVE 89.35 TARGET 89.47/89.60 SL 89.20 SELL GBPINR JAN BELOW 89.10 TARGET 88.98/88.85 SL 89.25

The government has exempted rupee payments made to Iran's national oil company NIOC towards the purchase of crude oil from payment of any tax, according to a Gazette notification. The finance ministry in a December 28, 2018 Gazette notification said the National Iranian Oil Company (NIOC) will not have to pay any withholding tax on payments it gets from Indian refiners. India had on November 2, 2018, signed an agreement with Iran to pay for crude oil it imports from the Persian Gulf nation in rupees. Any income a foreign company receives in an Indian bank account is subject to a withholding tax of 40 per cent, which together with sundry cesses totals to 42.5 percent. Exempting payments received by NIOC for crude oil it sells to Indian refiners, the notification said the Iranian firm "shall not engage in any activity in India, other than the receipt of income under the aforesaid arrangement".

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Special Report 03 –JAN-2019

Date

Commodity/ Currency Pairs

02/1/19

NCDEX DHANIYA

JAN

BUY

6360

02/1/19

NCDEX DHANIYA

JAN

Sell

02/1/19

NCDEX GUARGUM5

JAN

02/1/19

NCDEX GUARGUM5

02/1/19

Contract Strategy

Entry Level

Stop Loss

Remark

6375/6390/64 20

6300

TARGET HIT

6340

6325/6310/62 80

6400

TARGET HIT

BUY

8600

8615/8640/86 60

8540

NOT EXECUTED

JAN

SELL

8520

8505/8480/84 60

8580

TARGET HIT

MCX GOLD

JAN

BUY

31650

31700/31750

31550

SL HIT

02/1/19

MCX GOLD

JAN

SELL

31450

31400/31320

31530

SL HIT

02/1/19

MCX SILVER

MAR

BUY

38900

38950/39000

38750

NOT EXECUTED

02/1/19

MCX SILVER

MAR

SELL

38500

38450/38400

38600

NOT EXECUTED

Entry Level

Target

Stop Loss

Remark

Target

Date

Scrip

CASH/ FUTURE/ Strategy OPTION

02/1/19

NIFTY

FUTURE

SELL

10940

10900/10850/ 10820

11000

OPEN

02/1/19

JUBILANT FOOD

FUTURE

BUY

1250

1260/1270

1230

TARGET HIT

02/1/19

BEML

FUTURE

BUY

910

915/920

900

TARGET HIT

02/1/19

JUBILANT FOOD

CASH

BUY

1250

1260/1270

1230

TARGET HIT

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O


Special Report 03 –JAN-2019

NEXT WEEK'S MAJOR U.S. ECONOMIC REPORTS

TIME (ET)

REPORT

PERIOD

ACTUAL

MEDIAN FORECAST

PREVIOUS

--

53.9

MONDAY, DEC. 31 None scheduled TUESDAY, JAN. 1 None scheduled New Year's Day WEDNESDAY, JAN. 2 9:45 am

Markit manufacturing PMI

Dec. THURSDAY, JAN. 3

8:30 am

Weekly jobless claims

12/29

222,000

216,000

10 am

ISM manufacturing index

Dec.

57.3%

59.3%

10 am

Construction spending DELAYED

Nov.

0.1%

-0.1%

Varies

Motor vehicle sales

Dec.

17.2mln

17.4 mln

185,000

155,000

FRIDAY, JAN. 4 9:45 am

8:30 am 9:45 am

Markit manufacturing index flash

Nonfarm payrolls Markit services index flash

Nov. Nov.

Dec.

--

55.7

--

54.8

8:30 am

Unemployment rate

Dec.

3.6%

3.7%

8:30 am

Average hourly earnings

Dec.

0.3%

0.2%

9:45 am

Markit services PMI

Dec.

--

53.4

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