Special report by epic research 02 december 2013

Page 1

DAILY REPORT 02nd DECEMBER. 2013

Global markets at a glance The FTSEurofirst 300 closed flat at 1,305.07 pts, having posted its highest closing level in five years the previous day. The euro zone's blue-chip Euro STOXX 50 fell 0.2 %, to 3,086.64 pts. Banking stocks were among the bestperforming shares in Europe on Friday in otherwise subdued trade .

World Indices

Asian shares traded mixed on Friday as Japanese shares eased from a 6yr high this week in thin trade. The Nikkei 225 index was down 0.07%, after closing Thursday at its highest level since Dec 2007, with some volatility in the exchange rate. Wall Street Update The Dow and the S&P 500 dipped in thin holiday trading on Friday, but technology stocks helped lift the Nasdaq to a 13-year high. The Nasdaq got a boost from the technology sector. The DJI fell 10.92 points or 0.07 %, to end at 16,086.41. The S&P 500 slipped 1.42 points or 0.08 %, to finish at 1,805.81. But the Nasdaq Composite added 15.136 points or 0.37 %, to close at 4,059.886. Previous day Roundup The S&P BSE Sensex gained 1.25%, while the broader NSE index ended 1.38% up, also marking their biggest weekly gain of around 3% since the week ended October 11. The benchmark Sensex jumped 257 points on Friday to its highest level in almost two weeks buoyed by heavy buying in banking, PSU and capital goods shares on hopes that second quarter GDP growth will beat expectations. After gaining 114.65 points in the previous session, the Sensex shot up by 257.02 points, or 1.25%, to end at 20,791.93, after touching intra-day high of 20,819.77. Index stats The Bankex and Bank Nifty both advanced. Among the sartorial indices all the sectors were up; Capital Goods [up 172.36pts], Oil & Gas [up pts], AUTO [up 15.35pts], PSU [up 107.27pts], Consumer Durables [up 30.20pts], Metals [up 162.81pts] Realty [up 20.16pts], TECK [up 43.26pts], IT [up 72.94pts], Power [up 20.90pts], and Healthcare [up 81.79pts], the index slipped was FMCG [up 76.00pts].

Index

Value

% Change

16,086.41

-0.07

S&P 500

1,805.81

-0.08

NASDAQ EURO STO FTSE 100

4,059.89 3,086.64 6,650.57

+0.37 -0.19 -0.06

Nikkei 225 Hong Kong

15,661.87 23,881.29

-0.41 +0.39

DJl

Top Gainers Company

CMP

Change

% Chg

JPASSOCIAT

54.00

4.55

+9.20

NMDC

132.80

8.30

+6.67

BANKBARODA

647.00

31.80

+5.17

SSLT

183.10

8.00

+4.57

BHEL

156.65

5.70

+3.78

CMP

Change

% Chg

946.00 2,045.00 470.05 147.5 503.95

12.85 14.25 2.55 0.40 0.90

-1.34 -0.69 -0.54 -0.27 -0.18

Prev. Close

Change

%Chg

294.10

2.50

0.86

1,065

9.50

-0.88

BIOCON

386.15

3.15

-0.81

CENENKA

148.20

9.60

6.93

Prev. Close

Change

%Chg

56.30

0.35

-0.62

CMP

Change

% Chg

6,176.10 20,791.93

+84.25 +257.02

+1.38 +1.25

Top Losers Company

M&M HEROMOTOCO WIPRO NTPC ASIANPAINT

Stocks at 52 Week’s high Symbol

AUROPHARMA BATAINDIA

Stocks at 52 Week’s Low Symbol

JPOLYINVST -

Indian Indices Company NIFTY SENSEX

YOUR MINTVISORY

Call us at +91-731-6642300


DAILY REPORT 02nd DECEMBER. 2013

EQUITY CASH & FUTURE

STOCK RECOMMENDATIONS [FUTURE] 1. RECLTD

STOCK RECOMMENDATION [CASH] 1. SRF LTD

RECL FUTURE is looking strong on charts, long build up has been seen, we may see more upside, if it continues to sustain above 224, We advise buying around 225-228 levels with strict stop loss of 220 for the targets of 232-236 levels.

SRF LTD is looking strong on charts. We advise buying around 205-210 levels with strict stop loss of 190 for the targets of 225-235 levels.

2. PFC

MACRO NEWS  The economy grew a higher-than-expected 4.8% in the three months through Sept, helped by an uptick in agriculture and construction. The economy is struggling to rebound from a long slowdown. Economic growth virtually halved in two years to 5% in the fiscal year, the lowest level in a decade. Manufacturing rose an annual 1% during the quarter and mining fell by 0.4%, the data showed, while farm output rose 4.6%.  Power Grid FPO on Dec 3;priced at Rs 85-90/share.  The RBI gave commercial banks the option of paying interest on savings and term deposits at intervals less than three months.  The US State Department extended six-month Iran sanctions waivers on Friday to India, China, South Korea and other countries in exchange for their reducing purchases of Iranian crude oil earlier this year.  Cairn India to buy back shares worth Rs 5,725 crore at maximum Rs 335/share -To buyback up to 17.08 crore shares (8.9 percent equity) -Share buyback likely to begin in January 2014.

PFC FUTURE is looking strong on charts, long build up has been seen, we may see more upside, if it continues to sustain above 159, We advise buying around 158-159 levels with strict stop loss of 156 for the targets of 162-164 levels.

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DAILY REPORT FUTURE & OPTION

02nd DECEMBER. 2013

STOCKS IN NEWS  Coal India arm invites bid for setting up washery in Jharkhand.  JSPL may move to court if Ramchandi block is deal located.  Coal India says jobs protest losing it 200,000 tonnes of output a day.  Private oil & gas companies may get nod to explore shale resources soon.  Aviation turbine fuel price hiked by marginal 0.8% NIFTY FUTURE

MOST ACTIVE PUT OPTION Symbol

Option Type

Strike Price

LTP

Traded Volume (Contracts)

Open Interest

NIFTY

PE

6,000

59.55

1,46,981

52,94,450

NIFTY

PE

6,100

87.95

1,43,382

33,68,600

NIFTY

PE

5,900

39.60

91,338

33,05,150

BANK NIFTY

PE

10,500 125.00

7,283

1,68,125

SBIN

PE

1,750

33.00

2,740

1,47,875

RELIANCE

PE

840

14.95

1,283

2,31,000

JPASSOCIAT

PE

50

1.90

1,252

28,24,000

MCDOWELL-N

PE

2,600

80.95

1,011

1,22,875

Strike Price

LTP

Traded Volume (Contracts)

Open Interest

MOST ACTIVE CALL OPTION Symbol

Option Type

NIFTY

CE

6,300

103.10

1,63,704

40,84,500

NIFTY

CE

6,400

65.60

1,43,199

30,94,050

NIFTY

CE

6,500

39.35

1,27,330

41,45,750

BANKNIFTY

CE

12,000

121.10

11,247

1,40,500

SBIN

CE

1,800

92.90

2,964

94,750

JPASSOCIAT

CE

60.00

1.50

2,910

32,04,000

BHEL

CE

160

5.20

2,725

12,90,000

RELIANCE

CE

860

24.15

2,111

3,85,750

UNITECH

CE

17

0.95

1,846

84,64,000

Nifty Future closed in the green in the last trading session. We advise buying above 6240 which is major resistance in short term. Above 6240 we may see levels of 6280-6350 levels with strict stop loss of 6170.

FII DERIVATIVES STATISTICS BUY

SELL

OPEN INTEREST AT THE END OF THE DAY

No. of Amount in No. of Amount in No. of Contracts Crores Contracts Crores Contracts

Amount in Crores

NET AMOUNT

INDEX FUTURES

67070

2062.26

49245

1516.69

413475

12753.92

545.57

INDEX OPTIONS

350777

10630.10

302866

9289.54

1379563

42540.53

1340.56

STOCK FUTURES

56975

1517.83

57487

1535.66

1054916

29107.43

-17.83

STOCK OPTIONS

13004

351.58

12420

335.38

13139

360.41

16.20

TOTAL

1884.51

INDICES NIFTY

S2

S1

PIVOT

R1

R2

6075.43

6125.76

6154.13

6204.46

6232.83

NIFTYJUNIOR

12162.46

12262.93

12319.71

12420.18

12476.96

BANK NIFTY

10849.35

11001.65

11093.9

11246.2

11338.45

YOUR MINTVISORY

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DAILY REPORT 02nd DECEMBER. 2013

COMMODITY MCX

RECOMMENDATIONS SILVER

COMMODITY ROUNDUP The government on Friday slashed the import tariff value on gold and silver to $405 per ten gram and $642 per kg, respectively, in line with global trends. Besides precious metals, the tariff value on imported brass scrap has also been reduced to $3906 per tonne from $3995 per tonne. U.S. crude oil rebounded from recent declines. Oil prices rallied. U.S. light sweet crude gained 93 cents to $93.23 a barrel after recent declines, as an explosion at an army depot in southern Libya kept supply disruptions in traders' minds.

TRADING STRATEGY: BUY SILVER ABOVE 44650 TGTS 44900/46300 SL 44350 SELL SILVER BELOW 43950 TGTS 43700/43400 SL 44250 GOLD

Gold rose 1.1% to $1,251 an ounce, but the commodity has been under pressure throughout the year, driven by worries over the U.S. Fed eventually scaling back its stimulus. Gold rose on Friday as the dollar declined but made its biggest monthly drop in five months on signs that recovery in the U.S. economy could lead to the curbing of easy central bank money. Gold has shed more than 5 % in Nov and has lost around a quarter of its value so far this year, which puts it on track to post its first annual loss in 13 years. Gold has stayed below $1,300 an ounce for the past three weeks and has been largely range-bound in the last few sessions due to thin trading around the U.S. Thanksgiving holiday on Thursday. Spot gold rose 0.6 % to $1,250.96 an ounce by 1:06 p.m. EST (1806 GMT). This is down 5.57 % from the end of Oct. It had fallen to a 4-1/2 month low of $1,227.34 on Monday. U.S. gold futures rose 1.0 % to settle at $1,250.40 an ounce. The contract dropped 5.59 % in November, its weakest monthly performance since June. However in the domestic market, gold prices were ruling firm at Rs 31,320 per 10 gram in the national capital due to high premium charges on the yellow metal in the wake of tight supply following the government's gold import curbs . India imported 393.68 tonnes of the yellow metal during the April-September period of this year, as per official data.

TRADING STRATEGY: BUY GOLD ABOVE 30330 TGTS 30430/30580 SL 30180 SELL GOLD BELOW 30150 TGTS 30050/29950 SL 30300

YOUR MINTVISORY

Aluminium prices fell by 0.30% to Rs 107.95 per kg in futures trading on Friday as speculators offloaded their positions driven by weak global trend on supply outlook. At the MCX Aluminium for delivery in December declined by 40 paise, or 0.30%, to Rs 107.95 per kg in business turnover of 179 lots.

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DAILY REPORT 02nd DECEMBER. 2013

NCDEX

RECOMMENDATIONS CASTORSEED

NCDEX INDICES Index

Value

% Change

Barley

1348

-0.81

Castor Seed

4380

-1.40

Chana

3075

+1.12

Chilli

7062

-4.00

Coriander

7495

-2.60

Cotton Seed Oilcake

1384

-0.50

12562.5

-1.39

Mustard seed

3753

-0.74

Ref Soya Oil

717.5

-0.58

BUY CASTORSEED(JAN) ABOVE 4435 TG 4460,4490 SL 4390 SELL CASTORSEED(JAN) BELOW 4360 TG 4335,4295 SL 4400

Turmeric

5194

-3.99

DHANIYA

NCDEX ROUNDUP Import tariff value on Areca nut and some vegetables has been kept unchanged. The tariff value on imported poppy seeds has been raised to $2781 per tonne from $2,556 per tonne that prevailed till yesterday. The import tariff value on gold has been changed due to volatility in precious metals in the global market.

Jeera

Chana prices rose by Rs 31 to Rs 3,165 per quintal in futures trade on Friday as traders enlarged their holdings on account of the good demand in the market due to ongoing marriage season. At the NCDEX chana for delivery in January rose by Rs 31, or 0.99%, to Rs 3,165 per quintal, with an open interest of 58,260 lots.

BUY DHANIYA(DEC) ABOVE 7665 TG 7690,7730 SL 7625 SELL DHANIYA(DEC) BELOW 7535 TG 7510,7470 SL 7575

YOUR MINTVISORY

Cardamom prices rose by Rs 2.10 to Rs 744 per kg in futures trade on Friday as speculators created fresh positions amid a rise in demand in the spot market against restricted arrivals from producing belts. At the MCX cardamom for delivery in January rose by Rs 2.10, or 0.28%, to Rs 744 per kg in business turnover of 54 lots.

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DAILY REPORT 02nd DECEMBER. 2013

CURRENCY

RBI Reference Rate Currency

Rate Currency

Rupee- $

62.3948 Yen-100

Euro

84.9755 GBP

GBP/INR

BUY GBP/INR ABOVE 102.86 TGTS 102.99,103.18 SL 102.36. SELL GBP/INR BELOW 102.23 TGTS 102.07, 101.86 SL 102.73. USD/INR

BUY USD/INR ABOVE 63.01 TGTS 63.15, 63.25 SL 62.51. SELL USD/INR BELOW 62.60 TGTS 62.44, 62.29 SL 63.10. YOUR MINTVISORY

Rate

60.9700 102.0592

CURRENCY ROUNDUP The Indian rupee weakened for a second consecutive session on Friday as month-end dollar demand from oil firms offset an increased global investor demand for risk that sent other currencies such as the euro higher. Despite ending the week with mild losses, the rupee notched a second consecutive weekly gain, helped earlier in the week by the rally in the euro and the biggest weekly gain in domestic shares since the week ended Oct. 11. However, the rupee snapped two months of gains to fall 1.5 % in November. Oil companies have returned to sourcing dollars in markets in November, and away from a special window provided by the central bank, while signs foreign investors were paring their purchases also hit the currency. But overall, sentiment could remain weak as the central bank ends the special currency swap window to banks raising funds abroad, which had brought $25 billion in inflows since end-September on Saturday. The partially convertible rupee closed at 62.44/45 per dollar compared to 62.41/42 on Thursday. The euro edged lower against the dollar to $1.3588. The dollar rose to 102.44 against the yen in light volume. Investors have been using the yen as a funding currency for carry trades, with the Bank of Japan committed to keeping ultraloose monetary policy to shore up growth. That is in contrast to the U.S. Federal Reserve, which is moving toward unwinding its $85 billion-a-month bond-buying campaign. The yen is down almost 18 % versus the euro this year, while it is off 15 % against the greenback and is also set for its biggest one-month fall since January. Prices for U.S. Treasuries dipped slightly in subdued trading, with investors looking ahead to data next week. The benchmark 10-year Treasury note was down 5/32, the yield at 2.7535 %. The index of the dollar against six major currencies was trading down 0.2 percent. In the offshore nondeliverable forwards, the one-month contract was at 62.90 while the three-month was at 63.92.

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DAILY REPORT 02nd DECEMBER. 2013

CALL REPORT PERFORMANCE UPDATES

Date 29/11/13 29/11/13 29/11/13 29/11/13 29/11/13 29/11/13 29/11/13 29/11/13 29/11/13 29/11/13 29/11/13 29/11/13

Date 29/11/13 29/11/13 29/11/13 26/11/13

Commodity/ Currency MCX GOLD MCX GOLD MCX SILVER MCX SILVER NCDEX CASTOR SEED NCDEX CASTOR SEED NCDEX DHANIYA NCDEX DHANIYA JPY/INR JPY/INR EUR/INR EURINR

Scrip

Contract

Strategy

Entry Level

Target

SL

Remark

DEC DEC. DEC DEC JAN. JAN. DEC. DEC. DEC. DEC. DEC. DEC.

BUY SELL BUY SELL SELL BUY BUY SELL SELL BUY SELL BUY

30250 29835 45200 43950 4360 4430 7720 7580 61.30 62.03 84.90 85.70

30300-30380 29785-29720 45400-45800 43700-43500 4330-4290 4460-4500 7750-7790 7550-7510 61.15-61.00 61.17-62.33 84.75-84.55 85.84-86.02

30170 29915 45000 44100 4410 4380

BOOKED PROFIT NOT EXECUTED BOOKED PROFIT NOT EXECUTED NOT EXECUTED SL TRIGGERED SL TRIGGERED BOOKED FULL PROFIT BOOKE PROFIT NOT EXECUTED BOOKED PROFIT NOT EXECUTED

CASH/FUTURE Strategy

TATASTEEL TATA COM VOLTAS NIFTY

FUTURE FUTURE CASH FUTURE

Entry Level

BUY BUY BUY BUY

Target

405 285 108-110 6060-6080

415-425 290-295 115-120 6125-6150

7670 7630 61.90 61.45 85.55 85.10

SL

Remark 369 280 104 6020

CALL OPEN BOOKED FULL PROFIT CALLOPEN BOOKED FULL PROFIT

US ECONOMIC REPORT TIME (ET)

REPORT

8:58 AM 10 AM 10 AM

MARKIT PMI ISM CONSTRUCTION SPENDING

PERIOD ACTUAL MONDAY, DEC. 02 NOV NOV. OCT.

CONSENSUSFORECAST

PREVIOUS

55.0% 0.5%

56.4%

15.6 MLN

15.2 mln 130,000 -$41.8 BLN 55.4% 421,000

0.6%

TUESDAY, DEC. 03 TBA

MOTOR VEHICLE SALES

NOV.

WEDNESDAY, DEC. 04 8:15 AM

ADP EMPLOYMENT

NOV.

176,000

8:30 AM 10 AM 10 AM 2 PM

TRADE DEFICIT ISM NONMANUFACTURING NEW HOME SALES BEIGE BOOK

OCT. NOV. OCT..

-$40.5 BLN 55.5% 428,000

8:30 AM 8:30 AM 10 AM

WEEKLY JOBLESS CLAIMS GDP REVISION FACTORY ORDERS

THURSDAY, DEC. 05 11/30 3Q OCT.

N/A 3.1% -0.7%

N/A 2.8% 1.7%

FRIDAY, DEC. 06 8:30 AM 8:30 AM 8:30 AM 8:30 AM 8:30 AM

NONFARM PAYROLLS UNEMPLOYMENT RATE PERSONAL INCOME CONSUMER SPENDING CORE PCE PRICE INDEX

NOV. NOV. OCT. OCT. OCT.

180,000 7.2% 0.3% 0.2% 0.1%

204,000 7.3% 0.5% 0.2% 0.1%

9:55 AM

UMICH CONSUMER SENTIMENT INDEX

DEC.

74.0

72.0

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