Special report by epic research 20 november 2013

Page 1

DAILY REPORT 20th NOVEMBER. 2013

Global markets at a glance European shares eased on Tuesday, with caution on stocks from U.S. billionaire investor Carl Icahn and a retreat on Wall Street overnight encouraging profit-taking after a rally that took Germany's DAX to a record high. Some 48 percent of European companies have missed quarterly expectations. The relatively weak profits, coupled with stock market gains, have lifted market valuations, with the price/earnings ratio on STOXX Europe 600 around fouryear highs at 13.6 times.

World Indices

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dipped 0.2 percent but was still up 1.3 percent from the start of week, outperforming the 0.6 percent fall in the Standard & Poor's 500 Index .SPX. Hong Kong shares .HSI, which have gained 2.7 percent so far this week, extended gains while mainland shares were mostly flat. Japan's Nikkei share average .N225 rose as much as 0.5 percent before ceding some gains

Top Gainers

Wall Street Update U.S. stocks edged lower after the Dow briefly broke above a key level for a second day and shares of Best Buy dropped on worries about its margins. The major indexes continue to face resistance at key levels, with the Dow breaking above 16,000 briefly and the S&P 500 hovering near 1,800, which it briefly crossed on Monday. Both indexes were unable to hold those levels at Monday's close. Previous day Roundup Equity benchmarks closed flat with a positive bias amid weak global cues on Tuesday as investors looked cautious over timeline of Fed tapering. The Sensex rose 40.08 points to 20,890.82, in addition to a 656-point rally seen in previous two sessions. The Nifty closed above the 6,200 level for the first time since November 6, gaining points 14.35 points to 6,203.35. Index stats The Bankex and Bank Nifty both advanced 0.41% respectively. All the sectors advanced Capital Goods [up 117.12pts], Oil & Gas [up 10.14pts], Realty [up 20.14pts], TECK [up 22.13pts], IT [up 23.66pts], FMCG [down 29.86pts], AUTO [up 31.10pts], Metals [up 18.67pts], PSU [up 14.55pts] except Consumer Durables [down 39.85pts], Power [down 2.89pts], and Healthcare [down 23.16pts].

YOUR MINTVISORY

Index

Value

% Change

15,967.03

-0.06

S&P 500

1,787.87

-0.20

NASDAQ EURO STO FTSE 100

3,931.55 3,049.17 6,698.01

-0.44 -1.04 -0.38

Nikkei 225 Hong Kong

15,090.22 23,710.05

-0.24 +0.22

DJl

Company

CMP

Change

% Chg

HINDALCO

124.15

5.15

+4.33

JINDALSTEL

254.75

9.80

+4.00

PNB

550.70

20.80

+3.93

49.75

1.50

+3.11

1,821.35

53.75

+3.04

CMP

Change

% Chg

345.05 185.00 95.00 660.25 382.10

7.45 3.35 1.35 8.55 4.70

-2.11 -1.78 -1.40 -1.28 -1.22

Prev. Close

Change

%Chg

127.25

1.40

+1.11

1,035.05

40.60

+4.08

125.20

3.00

+2.45

INFY

3,439.20

35.10

+1.03

MINDTREE

1,430.15

22.10

+1.57

Prev. Close

Change

%Chg

98.40 80.50

5.15 2.20

-4.97 -2.66

CMP

Change

% Chg

6,203.35 20,890.82

+14.35 +40.08

+0.23 +0.19

JPASSOCIAT SBIN

Top Losers Company

BPCL SSLT POWERGRID HDFCBANK TATASTEEL

Stocks at 52 Week’s high Symbol

ARVIND BATAINDIA ESCORTS

Stocks at 52 Week’s Low Symbol

JPOLYINVST PFRL

Indian Indices Company NIFTY SENSEX

Call us at +91-731-6642300


DAILY REPORT 20th NOVEMBER. 2013

EQUITY CASH & FUTURE

STOCK RECOMMENDATIONS [FUTURE] 1. APPOLO TYRE

STOCK RECOMMENDATION [CASH] 1. ABAN OFFSHORE

APPOLO TYRE FUTURE is looking strong on charts, long build up has been seen, we may see more upside, if it continues to sustain above 80, We advise buying above 80 levels with strict stop loss of 78 for the targets of 82-84 levels.

ABAN OFFSHORE is looking strong on charts. We advise buying above 305 levels with strict stop loss of 298 for the targets of 312-318 levels.

2. JINDAL STEEL

JINDAL STEEL FUTURE is looking strong on charts, long build up has been seen, we may see more upside, if it continues to sustain above 255, We advise buying around 255 levels with strict stop loss of 250 for the targets of 260-265 levels.

YOUR MINTVISORY

MACRO NEWS  The government has decided to allot natural gas at a uniform price to retailers of the fuel in different cities.  Paris-based Organization for Economic Co-operation and Development (OECD) has said Indian economy will grow just 3.4% in the current financial year, almost same as the 3.3% growth recorded last year. This is even below the 3.7% projection of the International Monetary Fund ( IMF) and 5.7% estimated in its earlier May forecast. These estimates are based on market prices, and are not strictly comparable with India's official statistics that measure economic output at factor cost.  Finance ministry and a Reserve Bank of India panel is working on proposals to ensure equal treatment for foreign institutional investors (FIIs) and foreign direct investments (FDIs). The panel has discussed a 49 percent cap on FII investment.  IRFC has filed draft red herring prospectus with SEBI for issue of tax free secured redeemable non-convertible bonds in the nature of debentures of face value of Rs 1,000 each. The company aims to raise Rs 10,000 crore through the issue.

Call us at +91-731-6642300


DAILY REPORT FUTURE & OPTION

20th NOVEMBER. 2013

MOST ACTIVE PUT OPTION Symbol

Option Type

Strike Price

LTP

Traded Volume (Contracts)

Open Interest

NIFTY

PE

6,200

46.85

3,35,829

55,13,650

NIFTY

PE

6,100

20.30

2,88,100

47,83,650

NIFTY

PE

6,000

8.90

1,77,364

60,73,500

BANK NIFTY

PE

11,000 106.70

21,136

2,63,625

SBIN

PE

1,750

11.80

8,147

3,26,250

INFY

PE

3,400

18.95

2,544

2,23,625

RELIANCE

PE

860

4.75

1,945

3,27,500

TATASTEEL

PE

380

6.95

2,345

10,99,000

Strike Price

LTP

Traded Volume (Contracts)

Open Interest

STOCKS IN NEWS  Power Grid Corporation of India 's sale of shares, valued at about USD 1.2 billion, is likely to open on December 3. The offering includes fresh issue of 60.1 crore shares and disinvestment of 18.5 crore shares, or 4 percent stake, by the Indian govt.  IL&FS power unit in Tamil Nadu delayed  Licences of 11 coal blocks may be revoked  Calcutta High Court orders status quo on Haldia Petrochemicals share transfer deal NIFTY FUTURE

MOST ACTIVE CALL OPTION Symbol

Option Type

NIFTY

CE

6,300

31.30

3,44,959

54.18,000

NIFTY

CE

6,200

77.50

2,98,334

42,39,400

NIFTY

CE

6,400

9.05

1,91,038

50,08,700

BANKNIFTY

CE

11,500

90.50

25,068

3,17,875

SBIN

CE

1,800

53.10

15,183

6,29,625

SBIN

CE

1,900

13.80

9,486

5,75,250

RELIANCE

CE

900

5.60

4,063

10,72,250

RELIANCE

CE

880

12.60

3,293

5,89,500

MCDOWELL-N

CE

2,500

68.00

5,295

2,22,125

Nifty Future closed in the green in the last trading session. We advise buying around 6200-6180 with strict stop loss of 6150 for the targets of 6240-6280 levels.

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

43430

1336.28

41132

1264.05

487890

15054.75

72.23

INDEX OPTIONS

381719

11670.22

401185

12253.80

1731038

53556.77

-583.58

STOCK FUTURES

55984

1557.38

60714

1687.77

1094396

30139.87

-130.39

STOCK OPTIONS

48234

1288.43

49379

1315.36

73210

1966.40

-26.93

TOTAL

-668.68

INDICES NIFTY

S2

S1

PIVOT

R1

R2

6166.44

6184.89

6198.64

6217.09

6230.84

NIFTYJUNIOR

12191.98

12243.16

12291.48

12342.66

12390.98

BANK NIFTY

11067.28

11127.56

11167.63

11227.91

11267.98

YOUR MINTVISORY

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DAILY REPORT 20th NOVEMBER. 2013

COMMODITY MCX

RECOMMENDATIONS CRUDE OIL

TRADING STRATEGY: BUY CRUDE ABOVE 5900 TGTS 5940/6000 SL 5840 SELL CRUDE BELOW 5840 TGTS 5800/5740 SL 5920 GOLD

TRADING STRATEGY: BUY GOLD ABOVE 30500 TGTS 30600/30700 SL 30400 SELL GOLD BELOW 30150 TGTS 30050/29950 SL 30250

YOUR MINTVISORY

COMMODITY ROUNDUP Silver prices moved down by 0.48% to Rs 46,510 per kg in futures market yesterday as speculators reduced their holdings on the back of a weak global trend. At the Multi Commodity Exchange, silver for delivery in March moved down by Rs 222, or 0.48%, to Rs 46,510 per kg in business turnover of 361 lots. Likewise, the white metal for delivery in December traded lower by Rs 205, or 0.45%, to Rs 45,130 per kg in 3,106 lots. speculators reduced their holdings on the back of a weak global trend as investors weighed comments from Fed policy makers about the outlook for stimulus amid a rally in equities mainly put pressure on silver prices at futures trade. Meanwhile, silver lost 0.8% to $20.24 an ounce, the lowest since August 9 in Singapore. Gold futures reversed from their lowest level in a week on Tuesday, helped by foreign markets, though a stronger rupee kept the upside limited. At 3:20 pm, the most-active gold for December delivery on the Multi Commodity Exchange was 0.11 per cent higher at Rs 30,084 per 10g, after hitting a low of Rs 29,954, a level last seen on November 13. The physical market has witnessed lack of activity, as exporters were given priority in shipments under the new rule. India has imposed supply restrictions on gold, the biggest non-essential import item, by linking domestic consumption to exports to curb a record trade deficit. The Union government has also raised the import duty to a record 10 per cent. Aluminium prices edged up by 0.18% to Rs 108.90 per kg in futures trade yesterday as participants enlarged positions, supported by a firming overseas trend. Strong demand in the spot markets also influenced metal prices. At MCX, Aluminium for delivery in November inched up by 20 paisa, or 0.18%, to Rs 108.90 per kg in business turnover of 53 lots. The metal for delivery in December traded higher by a similar margin at Rs 110.70 per kg in a business volume of 16 lots. Apart from increased domestic demand, a firming trend in the base metals overseas, helped aluminium futures to trade higher. Call us at +91-731-6642300


DAILY REPORT 20th NOVEMBER. 2013

NCDEX

RECOMMENDATIONS CASTORSEED

NCDEX INDICES Index

Value

% Change

Barley

1282

-1.00

Castor Seed

3890

+0.70

Chana

2995

-2.25

Chilli

6862

-3.97

Coriander

7050

+0.34

Cotton Seed Oilcake

1443

-0.48

12500

+0.75

Mustard seed

3675

+0.08

Ref Soya Oil

706.2

-0.32

Turmeric

5180

+3.77

Jeera

SELL CASTORSEED JAN BELOW 4290 TG 4260,4220 SL 4340 BUY CASTORSEED JAN ABOVE 4330 TG 4360,4400 SL 4280 DHANIYA

NCDEX ROUNDUP Turmeric futures in India's National Commodity and Derivatives Exchange (NCDEX) gain sharply this week on estimates of lower producers while Chana fell 2.36% to Rs 3149 s market sentiments turnd bearish on inferior quality of the commodity in Rajasthan and Maharasthra markets. In overseas markets, US corn and wheat futures rose marginally to $414 and $646 6/8 respectively while soybeans fell t $12.83 per bushel on favourable planting conditions in Argentina. Among the gainers were ICE Coffee, ICE Sugar and COtton. China has rejected a cargo of corn from US citing the presence of genetically modified Viptera corn of Syngenta AG. It may receive approval soon in China as it has been already shipped to Japan, European Union and Mexico.

SELL DHANIYA DEC BELOW 7220 TG 7190,7150 SL 7270 BUY DHANIYA DEC BELOW 7370 TG 7400,7450 SL 7320

YOUR MINTVISORY

US Corn and soybean harvest was nearly complete in the US, the world's top food producer. US corn harvest was 91% complete while soyben crop is 95% complete

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DAILY REPORT 20th NOVEMBER. 2013

CURRENCY

RBI Reference Rate Currency

Rate Currency

Rupee- $

62.2311 Yen-100

Euro

84.0585 GBP

Rate

62.3200 100.1796

USD/INR CURRENCY ROUNDUP The Indian rupee gained past 62 to a dollar to a near 2-week high on Tuesday on heavy selling by foreign banks on behalf of their overseas clients. The rupee rose to as much as 61.87 to a dollar, a level last seen on Nov. 6. It was last trading at 61.92/93 versus its 62.41/42 close on Monday. Equity inflows in November stood at $897.91 million as on Friday. The Indian rupee rose for a fourth straight session to a near two-week high on Tuesday on strong foreign inflows into stocks and as global risk sentiment was boosted after China's central bank governor said the Yuan's trading band USD/INR has closed @62.4350. If it breaks the level of 62.25, it can touch the level of 62.12 & 61.96. If it sustains above 62.90 it can touch the level of 63.09 & 63.30.

will be widened. Foreign fund inflows into local stocks have already totaled nearly $900 million in November, adding to the rupee's gains after $2.6 billion inflows in October. Foreign banks have been consistent dollar sellers in recent ses-

GBP/INR

sions as they buy into Indian equities. The partially convertible rupee closed at 62.36/37 per dollar, compared with 62.41/42 on Monday. It has gained 2.2 percent in the past four sessions. It rose to 61.87 in session, its highest since Nov. 6. Global factors have also had a large hand in the rupee's recent rally. Prospect of extended stimulus in the United States and reforms in China had spurred a risk rally on Monday. The dollar was under pressure but global shares found support on Wednesday after Federal Reserve Chairman Ben Bernanke reiterated the Fed's commitment to easy policy, cementing expectations its stimulus will stay for the rest of

GBP/INR has closed @100.39. If it breaks 100.20, it can touch the level of 100.03 & 99.84. If it sustains above 100.90 it can touch the level of 101.11 & 101.35.

YOUR MINTVISORY

year. The U.S. dollar was also unsettled after China signaled it was willing to tolerate a stronger yuan - making it less likely to buy U.S. dollars to keep its currency pinned down. Call us at +91-731-6642300


DAILY REPORT 20th NOVEMBER. 2013

CALL REPORT PERFORMANCE UPDATES

Date 18/11/13 18/11/13 18/11/13 18/11/13 18/11/13 18/11/13 18/11/13 18/11/13

Date 18/11/13 18/11/13 18/11/13 18/11/13 08/11/13

Commodity/ Currency Pairs NCDEX CASTOR SEED NCDEX CASTOR SEED NCDEX DHANIYA NCDEX DHANIYA JPY/INR JPY/INR EUR/INR EUR/INR

Scrip NIFTY HDFC BANK AXIS BANK BPCL INFO EDGE INDIA

Contract JAN. JAN. DEC. DEC. NOV. NOV. NOV. NOV.

CASH/ FUTURE/ OPTION FUTURE FUTURE FUTURE CASH CASH

Strategy Entry Level SELL BUY SELL BUY SELL BUY SELL BUY

4215 4280 7290 7365 62.39 63.35 84.45 85.30

Strategy BUY BUY BUY BUY BUY

Target

Stop Loss

Remark

4190-4150 4305-4345 7260-7220 7395-7435 62.24-62.05 63.50-63.72 84.28-84.03 85.50-85.71

4255 4240

NOT EXECUTED BOOKED FULL PROFIT BOOKED PROFIT SL TRIGGERED BOOOKED PROFIT NOT EXECUTED NOT EXECUTED NOT EXECUTED

Entry Level Target 6170-6150 822 1145 354 420-430

6240-6310 840-860 1165-1185 359-364 455-475

7330 7325

Stop Loss 6080 800 1115 347 400

Remark BOOKED PROFIT CALL OPEN CALL OPEN SL TRIGGERED SL TRIGGERED

US ECONOMIC REPORT TIME (ET)

REPORT

PERIOD

ACTUAL

CONSENSUSFORECAST

PREVIOUS

WEDNESDAY, NOV. 20 8:30 AM 8:30 AM 8:30 AM 8:30 AM 10 AM 10 AM 2 PM

RETAIL SALES RETAIL SALES EX-AUTOS CONSUMER PRICE INDEX CORE CPI BUSINESS INVENTORIES EXISTING HOME SALES FOMC MINUTES

OCT. OCT. OCT. OCT. SEPT. OCT.

0.1% 0.2% 0.0% 0.2% 0.3% 5.23 MLN

-0.1% 0.4% 0.2% 0.1% 0.3% 5.29 MLN

N/A -0.2% 0.1 -15.0 --

-0.1% 0.1% 51.8 19.8

THURSDAY, NOV. 21 8:30 AM 8:30 AM 8:30 AM 8:58 AM 10 AM 10 AM

WEEKLY JOBLESS CLAIMS PRODUCER PRICE INDEX CORE PPI MARKIT FLASH PMI PHILLY FED LEADING INDICATORS

11/16 OCT. OCT. NOV. NOV. OCT.

N/A

FRIDAY, NOV. 22 10 AM

JOB OPENINGS

SEPT.

3.9 mln

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