Special report-30-october-2018-epic-research

Page 1

Special Report 30-Oct-2018

Global markets at a glance US stocks fell in a volatile session on Monday, with the benchmark S&P 500 index ending close to confirming its second correction of 2018, hurt by fresh worries about USChina trade policy tensions and a sharp drop in the big technology and internet shares. Following a morning rally, major US indexes pulled back steeply after a Bloomberg report that the US is preparing to announce tariffs on all remaining Chinese imports by early December if talks next month between presidents Donald Trump and Xi Jinping falter. "Obviously this trade skirmish is metastasizing potentially into something worse than it already is," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia. Asian shares came under pressure on Tuesday after Wall Street peers finished weaker, hurt by fresh worries about the US-China trade war and were on track for their biggest October decline since the 2008 financial crisis. MSCI's broadest index of Asia-Pacific shares outside Japan slid 0.1 percent, tracking falls in US stocks. The index has fallen more than 12 percent this month.Japan's Nikkei average rose 0.9 percent and the Australian benchmark shed 0.2 percent in early morning trade.Major U.S. indices fell steeply in volatile trade after a Bloomberg report that the United States is preparing to announce tariffs on all remaining Chinese imports by early December if talks next month between presidents Donald Trump and Xi Jinping falter. PREVIOUS DAY ROUNDOFF Bulls staged a smart comeback on Monday after sharp selloff last week. The Nifty50 after gap up opening extended rally as the day progressed and closed above 10,250 levels, driven by short covering in banking & financials after ICICI Bank's Q2 earnings. All sectoral indices closed in the green with Pharma rising the most (up 5.2 percent) followed by Bank, Financial Service, IT, Metal and Realty which gained 2 -3 percent.The Nifty50 after opening higher at 10,078.10 extended rally as the day progressed and touched an intraday high of 10,275.30 in late trade. The index almost recovered all its previous week's losses and closed 220.90 points higher at 10,250.90, forming large bullish candle on the daily charts. Index stats The Market was very volatile in last session. The sartorial in dices performed as follow; Commodities[-18.85pts], Consumption[70.15pts],PSE[65.75pts],CPSE [+43.00pts],Energy[441.50pts],FMCG[243.95pts],Auto [145.85pts],Pharma[475.30pts],IT[334.05pts],Metal [85.60pts],Realty[6.80 pts], Fin Serv sector[212.35pts].

World Indices Index

Value

% Change

DJI

24,442.92

-0.99

S&P500

2,658.69

-1.73

NASDAQ FTSE100

6,713.90 7,026.32

-2.02

21,424.53 24,769.77

1.28 -0.17

NIKKEI HANG SENG

1.32

Top Gainers Company

CMP

Change

% Chg

Indiabulls Hsg

771.55

87.65

12.82

ICICI Bank

349.40

33.75

10.69

SBI

267.90

19.80

7.98

Adani Ports

326.40

22.30

7.33

Axis Bank

566.70

29.00

5.30

CMP

Change

% Chg

1,412.80 1,926.30 1,138.10 21,461.90

-33.00 -34.90 -20.50 -344.50

-2.28 -1.78 -1.77 -1.58

294.10

-3.85

-1.2

Top Losers Company

IndusInd Bank HDFC Bank Kotak Mahindra Eicher Motors Bharti Airtel

Stocks at 52 Week’s HIGH Symbol

Prev. Close

Change

%Chg

ATNINTER

0.2

0.05

25

BLUECHIP

0.5

0.05

10

DIVISLAB

1255.8

188.4

15

ICICILIQ

1000.01

0

0

1000

-0.01

0

LIQUIDETF

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

10250.90

220.90

2.20

SENSEX

34067.40

718.09

2.15

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Special Report 30-Oct-2018

RECOMMENDATIONS [FUTURE] 1.IRB [FUTURE ] As per daily chart the particular counter is moving in a downtrend but it has tendency to show pull back ,which it has made from its support level of 118 recently, buy on dip strategy would be good to go for it so we advice you to buy irb future around 127.50-128 for the targets of 133-138 with stoploss below 125.

2.GRANULES [FUTURE] Stock has shown consolidation around the levels of 94-90. It took support of the trend line on daily chart and made multiple reversal candles. The stockhastic has also shown reversal from its level around 10. We recommend to buy around 101-102 for the target of 106-110 with the stop loss below 99.

STOCK RECOMMENDATION [CASH] DELTACORP - [CASH] Stock has shown consolidation around the levels of 228199. It made multiple times reversals from these levels and shown moment between it. It took support of the around 209 and made a breakout and finally closed above 229.90 . The stockhastic has also shown a parallel reversal from with respect to its price action. We recommend to buy around 231-232 for the target of 236-242 with the stop loss below 228.

MACRO NEW  Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 33.5 points or 0.33 percent. Nifty futures were trading around 11,242level on the Singaporean Exchange.  Oil prices fell on Tuesday, dragged down by ongoing weakness in global stock markets and by signs of rising global supply despite looming sanctions on Iran’s crude exports.Front-month Brent crude oil futures were at $76.78 a barrel at 0040 GMT, down 56 cents, or 0.8 percent, from their last close. US West Texas Intermediate (WTI) crude futures were at $66.78 a barrel, down 26 cents, or 0.4 percent, from their last settlement.  Domestic institutional investors (DIIs) invested Rs 23,545.94 crore in Indian stock markets in October, taking advantage of the correction in the market. Their total investments this year have crossed Rs 1 trillion so far. DIIs’ net investment in Indian equity market so far this year stands at Rs 1.06 trillion. Mutual funds have pumped in a net of Rs 1.04 trillion, implying that some DIIs may have been net sellers of the asset class.  As many as 135 companies will declare their results for the quarter ended September 30 which include names like Bank of Baroda, Bhushan Steel, Cummins India, Dena Bank, IDFC Ltd, JK Tyre, Bank of Maharashtra, Tech Mahindra and Torrent Power among others.

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Special Report 30-Oct-2018

STOCKS IN NEWS

MOST ACTIVE CALL OPTION Symbol

Optio Strike n Price Type

BANKNIFTY

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.

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.

LTP

Traded Volume (Contracts)

Open Interest

CE

25,000 210.2

6,66,673

5,45,480

BANKNIFTY

CE

25,200 122.45

4,80,138

4,55,280

BANKNIFTY

CE

25,100 162.55

3,86,545

2,59,720 NIFTY FUTURE

CESC

CE

900

0.05

12,221

14,98,750

CESC

CE

880

0.05

10,254

10,00,450

RELIANCE

CE

1,100

36.1

9,879

16,08,500

ICICIBANK

CE

340

22

8,238

31,87,250

ICICIBANK

CE

350 15.85

7,993

31,24,000

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

Optio Strike n Price Type

NIFTY

2,83,500

LTP

Traded Volume (Contracts)

Open Interest

PE

10,000 130.25

96,049

38,88,600

NIFTY

PE

10,100 160.7

70,690

15,77,175

BANKNIFTY

PE

24,000

18.9

4,37,056

7,35,340

BANKNIFTY

PE

24,500 66.95

3,72,810

7,12,560

CESC

CE

900

0.05

12,221

14,98,750

CESC

CE

880

0.05

10,254

10,00,450

RELIANCE

CE

1,100

36.1

9,879

16,08,500

ICICIBANK

CE

340

22

8,238

31,87,250

The Nifty50 after opening higher at 10,078.10 extended rally as the day progressed and touched an intraday high of 10,275.30 in late trade. The index almost recovered all its previous week's losses and closed 220.90 points higher at 10,250.90, forming large bullish candle on the daily charts. If the market is able to sustain above 10,000 levels then it may head towards 10,400 levels in coming sessions, but one should be cautiously optimistic and keep a strict stoploss below 10,020.

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

10436.00

10343.00

10181.00

10088.00

9926.60

BANKNIFTY

25414.00

25186.00

24795.00

24567.00

24176.00

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Special Report 30-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 30-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

1879 5636 3990 5842 1850 4711.5

0.05 2.73 0.96 0.97 -1.2 -0.04

Jeera

19780

1.07

4176 3310 6722

-0.48 1.22 0.72

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 30-Oct-2018

RBI Reference Rate Currency

Rate Currency

Rate

Rupee- $

73.4181 Yen

65.6200

Euro

83.6942 GBP

94.2644

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 30-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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