Special report by epic research 4 december 2013

Page 1

DAILY REPORT 04th DECEMBER. 2013

Global markets at a glance Asian shares could come under pressure on Wednesday after the world's share markets were rattled by fears of an impending reduction in the U.S. Federal Reserve's stimulus following positive U.S. data. European shares suffered their biggest falls since August while Wall Street retreated for a third straight day on Tuesday, dropping from record levels as investors took profits. The Dow Jones industrial average fell 94.15 points, or 0.59 percent, to end at 15,914.62. The Standard & Poor's 500 Index declined 5.75 points, or 0.32 percent, to finish at 1,795.15. The Nasdaq Composite Index dropped 8.06 points, or 0.20 percent, to close at 4,037.20. Wall Street Update The Dow and the S&P 500 fell for a third straight day on Tuesday, dropping from record levels in a broad decline as investors took profits amid signs of a weak holiday shopping season.

World Indices Index

Value

% Change

15,914.62

-0.59

S&P 500

1,795.15

-0.32

NASDAQ EURO STO FTSE 100

4,037.20 3,013.88 6,532.43

-0.20 -2.06 -0.95

Nikkei 225 Hong Kong

15,390.47 23,742.35

-2.28 -0.70

DJl

Top Gainers Company

CMP

Change

% Chg

GAIL

343.80

10.20

+3.06

BHEL

164.05

4.40

+2.76

DLF

156.70

3.95

+2.59

JINDALSTEL

275.00

6.60

+2.46

NMDC

137.20

3.10

+2.31

CMP

Change

% Chg

425.50 758.00 2,463.00 1,117.80

7.90 12.55 35.60 14.95

-1.82 -1.63 -1.42 -1.32

Prev. Close

Change

%Chg

AUROPHARMA

306.30

2.10

+0.69

CROMPGREAV

124.85

1.25

+1.01

GRANULES

190.90

25.75

15.59

JINDALPHOT

145.40

24.20

19.97

JSWSTEEL

933.45

0.50

-0.05

Prev. Close

Change

%Chg

25.65 19.50

0.25 0.15

-0.97 -0.76

CMP

Change

% Chg

6,201.85 20,854.92

-16.00 -43.09

-0.26 -0.21

Top Losers Company

Previous day Roundup Indian shares fell on Tuesday to snap a three-day winning streak due to profit-taking in stocks of blue chips such as Larsen and Toubro Ltd after upbeat U.S. data raised fears the Federal Reserve would reduce its monetary stimulus. It was a consolidation day at the Dalal Street with the Nifty holding above 6200 amid volatility. The Nifty ended at 6201.85, down 16.00 points while the Sensex slipped 43.09 points to close at 20854.92. About 1237 shares advanced, 1231 shares declined, and 166 shares were unchanged. Most of the stocks were under pressure while realty, small cap and midcap stocks outperformed peers. Index stats The Bankex and Bank Nifty both declined 0.56% & 0.65% respectively. Among the sartorial indices all the sectors were up; Capital Goods [down 32.32pts], Oil & Gas [up 43.68 pts], AUTO [down 52.69pts], PSU [down 12.28pts], Consumer Durables [up pts], Metals [up 22.41pts], Realty [up pts], TECK [up 6.46pts], IT [up 11.70pts], Power [up pts], and Healthcare [down 22.69pts], the index slipped was FMCG [down 54.56pts].

INDUSINDBK KOTAKBANK DRREDDY HCLTECH

Stocks at 52 Week’s high Symbol

Stocks at 52 Week’s Low Symbol

PFOCUS SFCL

Indian Indices Company NIFTY SENSEX

YOUR MINTVISORY

Call us at +91-731-6642300


DAILY REPORT 04th DECEMBER. 2013

EQUITY CASH & FUTURE

STOCK RECOMMENDATIONS [FUTURE] 1. MCLOED RUSSEL

STOCK RECOMMENDATION [CASH] 1. PATEL ENGINEERING LTD.

MCLOED RUSSEL FUTURE is looking strong on charts, long build up has been seen, we may see more upside, if it continues to sustain above 300, We advise buying around 300302 levels with strict stop loss of 294 for the targets of 308314.

PATEL ENGINEERING LTD is looking strong on charts. We advice buying above 54 levels with strict stop loss of 50 for the targets of 58-62 levels.

2. PETRONET

PETRONET FUTURE is looking strong on charts, long build up has been seen, we may see more upside, if it continues to sustain above 135, We advise buying around 134-136 levels with strict stop loss of 132 for the targets of 138140.

YOUR MINTVISORY

MACRO NEWS  HSBC SERVICE PMI to be announced today.  India's CAD narrowed to 1.2% of GDP to $ 5.2bln, the lowest since June 2009. The deficit data was the latest in a run of positive signs for the sluggish domestic.  Reliance Industries-BP combine is leading the race for picking up 25 per cent stake in Gujarat government's planned LNG import terminal at Mundra.  Both HeroMoto Corp and Magneti Marelli will be investing a total of USD 8.5 million in the JV firm - HMCMM Auto Ltd - in the next three years and around USD 27 million over the next ten years. Hero MotoCorp will hold 605 in the JV while the Italian firm will have 40%  India to contribute $1mn to anti-chemical weapons body.  Prime Minister dedicated GAIL India Ltd's 1,000 km Dabhol-Bangalore natural gas pipeline to the nation.  Bharti Airtel prices 750 mln euro 2018 bond issue.  Larsen & Toubro has signed its five-year refinancing at reduced size of around US$362m from an earlier planned US$370m

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DAILY REPORT FUTURE & OPTION

04th DECEMBER. 2013

STOCKS IN NEWS  RCom raises 3G internet rate by 26%, cuts benefits by about 60%.  Idea to challenge Rs 600 cr. govt. penalty notice.  Essar Telecom in talks with investors to fund Kenya operations.  Coal India signs fuel supply pacts for 71,500 MW capacity.  Canara Bank cuts fixed deposit rates by up to 1%.  Shree Renuka Sugars is in advanced talks with Wilmar for stake sale that is likely to be announced by month-end. NIFTY FUTURE

MOST ACTIVE PUT OPTION Symbol

Option Type

Strike Price

LTP

Traded Volume (Contracts)

Open Interest

NIFTY

PE

6,100

98.20

1,35,374

41,54,750

NIFTY

PE

6,000

69.90

1,18,032

55,43,600

NIFTY

PE

6,200 135.05

1,10,860

31,83,900

BANK NIFTY

PE

10,500 142.80

8,285

1,59,600

SBIN

PE

1,800

64.00

4,306

2,33,125

HINDALCO

PE

2,600

3.80

1,253

16,08,000

RELIANCE

PE

860

20.75

1,651

2,85,750

TATAMOTORS

PE

400

15.10

1,167

4,89,000

Strike Price

LTP

Traded Volume (Contracts)

Open Interest

MOST ACTIVE CALL OPTION Symbol

Option Type

NIFTY

CE

6,400

87.25

1,32,148

38,43,050

NIFTY

CE

6,500

54.05

1,11,337

49,24,600

NIFTY

CE

6,300

130.00

1,09,418

47,01,300

BANKNIFTY

CE

12,000

177.00

12,654

1,69,900

SBIN

CE

1,850

65.45

3,314

2,52,750

UNITECH

CE

17

1.30

3,987 1,21,60,000

DLF

CE

160

7.90

2,884

10,90,000

JINDALSTEL

CE

280

11.30

2,666

6,92,000

RELIANCE

CE

880

19.50

2,345

4,72,250

Nifty Future closed in the green in the last trading session. We advise buying around 6240-6250 with strict stop loss of 6210 for the targets of 6280-6300 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

42305

1301.39

37854

1167.55

450963

13964.23

133.84

INDEX OPTIONS

346284

10579.05

301985

9222.89

1603414

49605.35

1356.16

STOCK FUTURES

48107

1333.88

58375

1649.37

1073004

29698.88

-315.49

STOCK OPTIONS

25693

700.76

22238

602.92

30788

837.10

97.84

TOTAL

1272.35

INDICES NIFTY

S2

S1

PIVOT

R1

R2

6172.21

6187.03

6206.21

6221.03

6240.21

NIFTYJUNIOR

12315.46

12362.53

12437.21

12484.28

12558.96

BANK NIFTY

11095.96

11153.63

11232.16

11289.83

11368.36

YOUR MINTVISORY

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DAILY REPORT 04th DECEMBER. 2013

COMMODITY MCX

RECOMMENDATIONS SILVER

COMMODITY ROUNDUP Gold prices held near their lowest since early July on Tuesday after U.S. data fuelled expectations that the Federal Reserve is set to taper its monetary stimulus, further dampening investment interest in the metal. Data released on Monday showed the ISM gauge of U.S. factory activity hit a 2-1/2-year high in November, potentially bringing the Fed closer to scaling back its huge quantitative easing program, a move that would support the dollar. Such a move would also weigh on gold by relieving pressure on long-term interest rates, while potentially dampening expectations that inflation will rise in years to come. Gold hit a five-month low at $1,217.69 an ounce after the report.

TRADING STRATEGY: BUY SILVER MAR ABOVE 44550 TGT 44750/45050 SL 44150 SELL SILVER MAR BELOW 43750 TGT 43550/43150 SL 44050 GOLD

India gold futures was seen trading neutral amid weak international cues while US gold futures was seen near five month low after firm US data releases sparked the concerns that US Federal Reserve may start reducing its monetary stimulus later this month. Gold futures for February delivery on India's Multi Commodity Exchange (MCX) was seen trading with a loss of 0.11% at Rs.30099 per 10 grams as of 15.30 IST while Comex gold futures for February delivery on electronic platform was seen trading with a loss of 4 cents at $1221.5 per troy ounce as of 15.42 IST on Tuesday. Aluminium market deficit excluding China is expected to go up further next year than in 2013. The critical shift in fundamentals has come on the supply-side ex-China. The LME warehouse rules proposed in July 2013 (and confirmed in November) catalysed a near 15% drop in US and European physical premiums. Combined with a similar fall in LME prices since the beginning of the year, an additional 1.7Mt smelting capacity ex-China fell into loss making territory on top of 1Mty capacity already in such a state at the beginning of the year.

TRADING STRATEGY: BUY GOLD FEB ABOVE 29290 TGT 29370/29470 SL 29190 SELL GOLD FEB BELOW 28870 TGT 28790/28690 SL 28970

YOUR MINTVISORY

Tracking a slight up-tick in US crude oil futures, India crude oil prices edged up on Tuesday. Firm manufacturing data from the United States and China may have supported the prices while concerns over likely drop in US crude oil stockpiles were seen supporting the oil futures in the global market. Crude oil futures for January delivery on NYMEX was seen trading with a gain of 27 cents at $94.09 per barrel as of 16.56 IST on Tuesday. Crude oil futures for December delivery on India's Multi Commodity Exchange (MCX) was seen trading with a gain of 0.62% at Rs.5888 per barrel as of 16.46 IST on Tuesday.

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DAILY REPORT 04th DECEMBER. 2013

NCDEX

RECOMMENDATIONS CASTORSEED

NCDEX INDICES Index

Value

% Change

Barley

1320.5

-2.11

Castor Seed

4947

-0.30

Chana

2934

-2.43

Chilli

6740

-0.24

Coriander

7478

-1.19

Cotton Seed Oilcake

1398

-0.64

12355

-0.10

Mustard seed

3684

-0.57

Ref Soya Oil

704.5

-1.10

Turmeric

4974

-0.16

Jeera

BUY CASTORSEED ABOVE 4365 TGTS 4395/4435 SL 4325 SELL CASTORSEED BELOW 4330 TGTS 4300/4260 SL 4380

NCDEX ROUNDUP With the commercialization of the new Pusa Basmati 1509 variety, exports of basmati rice from India are set to exceed four mn tonnes (mt) this year, 11% more than last year.

DHANIYA Marking a 43%jump in value terms and a 20 per cent rise in volumes, spices exports increased from 314,835 tonnes valued at Rs 4,286 crore during the April-Sept. 2012 period to 378,755 tonnes worth Rs 6,118 crore during the same period this year. Notably, out of the 18 items in the export basket, only four recorded a decline during the period. Potato seed prices in West Bengal are high like never before. While the state government has been able to reign in high potato prices, the seed prices have increased abysmally on account of demand supply mismatch in Punjab. In the last one month potato seed prices have more than doubled from nearly Rs 17 per kg to Rs 50 per kg.

SELL DHANIYA BELOW 7440 TGTS 7410/7370 SL 7490 BUY DHANIYA ABOVE 7550 TGTS 7580/7620 SL 7500

YOUR MINTVISORY

With an increasing demand for palm oil, price risk management for a consuming nation as India is very important. NCDEX crude palm oil futures are ideal to meet the price risk management needs of the processors, traders, physical participants and end users. The NCDEX crude palm oil futures prices are highly co-related with Bursa Malaysia, where crude palm oil futures are actively traded.

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DAILY REPORT 04th DECEMBER. 2013

CURRENCY

RBI Reference Rate Currency

Rate Currency

Rupee- $

62.3896 Yen-100

Euro

84.7547 GBP

GBP/INR

Rate

61.1000 101.8011

CURRENCY ROUNDUP The Indian rupee fell on Tuesday as the dollar gained after strong U.S. economic data sparked expectations of an early tapering of the Federal Reserve stimulus, but a sharp easing in the current account deficit capped wider losses. Talk of tapering also disrupted the yen's decline, which has been propelled by speculation of more carry-trades on the back of improving risk sentiment. The dollar fell about one percent to 102.40 yen from Tuesday's six-month high of 103.38 yen. The euro was steadier at $1.3595, not far from one-month high of $1.3622 hit last week. The yen was squeezed higher across the board early in Asia on Wednesday, enjoying a bit of a reprieve as investors locked in profits ahead of major risk events including U.S. jobs data due later in the week.

BUY GBP/INR ABOVE 103.02 TGTS 103.18,103.48 SL 102.50. SELL GBP/INR BELOW 102.21 TGTS 102.02,101.77 SL 102.76. JPY/INR

The Reserve Bank of India said on Tuesday it accepted all 29 bids for 108.59 billion rupees at its one-day reverse repo auction through which it absorbs excess liquidity from the banking system. Indian banks' refinancing with RBI falls to 242.33 billion rupees. Indian banks' cash balances with RBI rise to 3.28 trillion rupees. The Australian dollar weakened slightly in early trade Wednesday ahead of third quarter gross domestic product data expected to show a pickup from the previous quarter. Overnight, profit taking sent the dollar falling against most major currencies as investors waited on the sidelines for the release of the November jobs report on Friday. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.02% at 80.64.

BUY JPY/INR ABOVE 61.27 TGTS 61.42, 61.57 SL 60.81. SELL JPY/INR BELOW 60.74 TGTS 60.55, 60.26 SL 61.30.

YOUR MINTVISORY

Today on Wednesday, the U.S. is to release the ADP report on private-sector job creation, while the Institute of Supply Management is to release its service-sector purchasing managers' index. The U.S is also to publish data on new home sales and data on its trade balance.

Call us at +91-731-6642300


DAILY REPORT 04th DECEMBER. 2013

CALL REPORT PERFORMANCE UPDATES

Date

Commodity/ Currency

Contract

Strategy

Entry Level

Target

Stop Loss

Remark

FEB.

BUY

29130

29230-29250

29010

SL TRIGGERED

MCX GOLD

FEB.

SELL

28620

28250-28400

28740

NOT EXECUTED

MCX SILVER

MAR.

BUY

45400

45600-45900

45100

NOT EXECUED

03/12/13

MCX SILVER

MAR.

SELL

44300

44100-43800

44600

BOOOKED FULL PROFIT

03/12/13

NCDEX CASTOR SEED

JAN.

SELL

4345

4315-4265

4395

NOT EXECUTED

03/12/13

NCDEX CASTOR SEED

JAN.

BUY

4410

4450-4490

4390

BOOKED PROFIT

03/12/13

NCDEX DHANIYA

DEC.

SELL

7480

7450-7400

7530

BOOKED PROFIT

03/12/13

NCDEX DHANIYA

DEC.

BUY

7670

7700-7750

7620

NOT EXECUTED

03/12/13

GBP/INR

DEC.

SELL

102.38

102.13-101.95

103.05

NOT EXECUTED

03/12/13

GBP/INR

DEC.

BUY

103.15

103.40-103.65

102.60

NOT EXECUTED

03/12/13

EUR/INR

DEC.

SELL

84.67

84.45-84.28

85.05

NOT EXECUTED

03/12/13

EURINR

DEC.

BUY

85.65

85.79-86.00

85.05

NOT EXECUTED

03/12/13

MCX GOLD

03/12/13 03/12/13

Date

Scrip

CASH/FUTURE Strategy

Entry Level

Target

Stop Loss

Remark

03/12/13

NIFTY

FUTURE

BUY

6240-6250

6280-6300

6210

CALL OPEN

03/12/13

RANBAXY

FUTURE

BUY

445-450

455-465

440

BOOKED PROFIT

03/12/13

HCL TECH

FUTURE

BUY

1125-1130

1145-1160

1115

SL TRIGGERED

03/12/13

JINDAL PHOTO

CASH

BUY

122

117

127-134

BOOKED FULL PROFIT

02/12/13

NIFTY

FUTURE

BUY

6240

6280-6350

6170

CALL OPEN

02/12/13

RECL

FUTURE

BUY

225.228

232-236

220

BOOKED PROFIT

29/11/13

TATASTEEL

FUTURE

BUY

405

415-425

369

BOOKED PROFIT

29/11/13

VOLTAS

BUY

108-110

115-120

104

BOOKED PROFIT

CASH

US ECONOMIC REPORT TIME (ET)

REPORT

8:15 AM 8:30 AM 10 AM 10 AM 2 PM

ADP EMPLOYMENT TRADE DEFICIT ISM NONMANUFACTURING NEW HOME SALES BEIGE BOOK

8:30 AM 8:30 AM 10 AM

WEEKLY JOBLESS CLAIMS GDP REVISION FACTORY ORDERS

PERIOD ACTUAL WEDNESDAY, DEC. 04 NOV. OCT. NOV. OCT..

CONSENSUSFORECAST

PREVIOUS

176,000 -$40.5 BLN 55.5% 428,000

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

N/A 3.1% -0.7%

N/A 2.8%

180,000 7.2% 0.3% 0.2% 0.1% 74.0

204,000 7.3% 0.5% 0.2% 0.1%

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

1.7%

FRIDAY, DEC. 06 8:30 AM 8:30 AM 8:30 AM 8:30 AM 8:30 AM 9:55 AM

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

NOV. NOV. OCT. OCT. OCT. DEC.

72.0

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