Special report by epic research 5 december 2013

Page 1

DAILY REPORT 05th DECEMBER. 2013

Global markets at a glance Asian markets with the exception of Shanghai Composite were trading lower and the Nikkei retreated from its 6year closing highs. Investors booked profits on concerns that the tapering by US Fed would lead to reduction in foreign fund inflows. The Nikkei ended down 2.2% at 15,408. Shanghai Composite ended up 1.3% while Hang Seng and STI ended nearly 1% lower.

World Indices

European shares traded flat on Wednesday, steadying after the previous session's steep losses, with Asia-focused bank Standard Chartered the leading decliner after it warned its profits were likely to fall. The Dow Jones industrial average slipped 24.85 points, or 0.16 percent, to end at 15,889.77. The Standard & Poor's 500 Index declined 2.34 points, or 0.13 percent, to finish at 1,792.81. But the Nasdaq Composite Index inched up just 0.80 of a point, or 0.02 percent, to close at 4,038. Wall Street Update The Dow and the S&P 500 finished lower for the fourth consecutive session on Wednesday after investors found few reasons to make big moves, with uncertainty remaining over when the Federal Reserve will start to slow its stimulus. Previous day Roundup Indian shares fell on Wednesday to mark their second consecutive day of losses amid weak Asian cues, as investors locked in profits in blue chip shares ahead of major risk events including U.S. jobs data and state elections results due later in the week, as investors booked profits in late trades ahead of the assembly election results due on Sunday. The 30-share Sensex ended down 147 points at 20,709 and the 50-share Nifty ended down 41 points at 6,161. Index stats The Bankex and Bank Nifty both declined 0.57% & 0.49% respectively. Among the sartorial indices the sectors which were up are; AUTO [up 128.93pts], Consumer Durables [up 3.34pts], TECK [up pts], IT [up 7.59pts], Power [up 5.13pts], and the sectors declines are; Capital Goods [down 98.13pts], Oil & Gas [down 67.78pts], PSU [down 16.08pts], Metals [up 86.95pts], Realty [down 36.87pts], and Healthcare [down 49.03pts], FMCG [down 88.50pts].

Index

Value

% Change

15,889.77

-0.16

S&P 500

1,792.81

-0.13

NASDAQ EURO STO FTSE 100

4,038 2,991.76 6,509.97

+0.02 -0.73 -0.90

Nikkei 225 Hong Kong

15,336.66 23,651.33

-0.46 -0.33

DJl

Top Gainers Company

CMP

Change

% Chg

TATAPOWER

82.50

2.50

+3.13

571.90

15.35

+2.76

95.90

2.15

+2.29

NMDC

139.65

2.40

+1.75

WIPRO

490.55

8.10

+1.68

CMP

Change

% Chg

121.05 312.45 105.7 445 153.00

3.00 6.75 2.15 8.30 2.85

-2.42 -2.11 -1.99 -1.83 -1.83

Prev. Close

Change

%Chg

AUROPHARMA

308.25

1.55

+0.51

CEATLTD

330.85

30.05

+9.99

DBCORP

272.5

2.15

-0.78

182.65

4.95

-2.64

131

13.95

-9.62

Prev. Close

Change

%Chg

25.65

0.05

-0.19

CMP

Change

% Chg

6,160.95 20,708.71

-40.90 -146.21

-0.66 -0.70

PNB POWERGRID

Top Losers Company

HINDALCO ITC IDFC RANBAXY DLF

Stocks at 52 Week’s high Symbol

GRANULES JINDALPHOT

Stocks at 52 Week’s Low Symbol

PFOCUS --

Indian Indices Company NIFTY SENSEX

YOUR MINTVISORY

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DAILY REPORT 05th DECEMBER. 2013

EQUITY CASH & FUTURE

STOCK RECOMMENDATIONS [FUTURE] 1. BANK OF BARODA

STOCK RECOMMENDATION [CASH] 1. CANARA BANK

BUY BOB FUTURE ABOVE 660 TGT 668/678 SL 650

BUY CAN BANK CASH ABOVE 250 TGT 253/258 SL 245

2. GODREJ INDUSTRIES

MACRO NEWS  The HSBC SERVICE PMI inched up to 47.2 in November VS 47.1 in October.  Microfinance firms tap non-convertible debentures for funds.  The electricity regulator CERC's order for granting compensatory tariff for the company's (Tata Power) Mundra project is likely to come up by month-end.  India may allow captive coal miners to sell surplus coal to steel, cement and power producers in a move that could challenge the monopoly of public sector.  LIC is likely to declare real estate firm Unitech a defaulter for non-payment of interest on a Rs 200cr loan.  Decks have been cleared for sale of government's residual stake in Hindustan Zinc and Balco that could help the exchequer rake in about Rs 20,000 crore.  Foreign fund flows may get all-clear to take cyprus route.  RBI grant to boost liquidity in MSME sector.  The European Union has all but given up on a trade pact with India in the near future.

SELL GODREJ IND BELOW 272 TGT 269/264 SL 277

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DAILY REPORT FUTURE & OPTION

05th DECEMBER. 2013

STOCKS IN NEWS  UCO Bank looks to life after Iran sanctions windfall  Telecom department slams Rs 600-crore penalty on Idea over Spice merger.  Eicher Motors to invest Rs 700cr in next year.  United Spirits to soon appoint investment bankers for Whyte & Mackay sale.  JSW, Essar, SAIL keep Dec steel prices unchanged, JSPL hikes.  Coal India misses output target by 15 million tone.  Vodafone to invest $3bn in India networks over next 2 years.

MOST ACTIVE PUT OPTION Symbol

Option Type

Strike Price

LTP

Traded Volume (Contracts)

Open Interest

NIFTY

PE

6,000

68.9

1,76,909

59,34,950

NIFTY

PE

6,100 100.30

1,59,289

43,08,350

NIFTY

PE

6,200 141.10

1,38,715

41,40,150

BANK NIFTY

PE

11,100

355

15,747

2,39,625

SBIN

PE

1,800

55.00

3,435

2,42,750

UNITECH

PE

15

1.00

2,927

50,88,00

POWERGRID

PE

90

1.20

2,856

73,40,000

DLF

PE

150

.7.00

1,950

4,81,000

Strike Price

LTP

Traded Volume (Contracts)

Open Interest

NIFTY FUTURE

MOST ACTIVE CALL OPTION Symbol

Option Type

NIFTY

CE

6,400

70.60

2,17,903

44,43,650

NIFTY

CE

6,500

43.25

1,86,976

54,49,700

NIFTY

CE

6,300

108.00

1,58,392

49,29,850

BANKNIFTY

CE

12,000

154.00

17,723

2,26,250

SBIN

CE

1,900

50.00

4,462

2,18,250

UNITECH

CE

17

0.70

7,629 1,91,60,000

DLF

CE

160

6.05

3,334

12,75,000

RELIANCE

CE

880

17.70

2,598

5,80,250

POWERGRID

CE

95

1.55

2,383

41,68,000

SELL NIFTY BELOW 6170 TGT 6150/6120 SL 6195

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

44238

1360.36

58693

1796.16

439476

13502.85

-435.80

INDEX OPTIONS

382606

11651.45

388242

11877.46

1665674

51105.83

-226.01

STOCK FUTURES

52496

1417.15

61108

1676.17

1078822

29635.55

-259.02

STOCK OPTIONS

29416

782.93

27858

758.83

38742

1019.99

24.10

TOTAL

-896.72

INDICES NIFTY

S2

S1

PIVOT

R1

R2

6114.08

6137.51

6173.33

6196.76

6232.58

NIFTYJUNIOR

12228.41

12275.53

12359.41

12406.53

12490.41

BANK NIFTY

11051.88

11104.31

11160.18

11212.61

11268.48

YOUR MINTVISORY

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DAILY REPORT 05th DECEMBER. 2013

COMMODITY MCX

RECOMMENDATIONS SILVER

COMMODITY ROUNDUP In International commodity market spot gold edged back to $1,238, giving up some of Wednesday's 1.7 percent rally. U.S. crude eased 9 cents to $97.11, but that followed a 1.2 percent rally on Wednesday after data showed domestic crude stocks fell by 5.6 million barrels, snapping 10 straight weeks of builds. Going the other way, Brent crude finished down 97 cents on Wednesday at $111.65 a barrel after initially rising to the highest since September 12 at $113.02. Gold prices dropped to a five month low in London on fears that the signs of economic recovery in the United States would result in US stimulus tapering. Gold futures for February delivery on Globex platform of Comex was seen trading with a loss of $5.8 at $1215 per troy ounce as of 15.59 IST on Wednesday. In the global market, the yellow metal is all set for the first annual decline in 13 years. US Federal Reserve may start to reduce its monetary stimulus at its March meeting. MCX gold futures for February delivery was seen trading neutral at Rs.29050 per 10 grams as of 15.56 IST on Wednesday.

TRADING STRATEGY: BUY SILVER MAR ABOVE 45450 TGT 45650/45950 SL 45150 SELL SILVER MAR BELOW 44300 TGT 44100/43800 SL 44600 GOLD

Meanwhile, UBS Investment Research has trimmed its silver price forecasts for next year from $25 previously to $20.50 an ounce while it cut its gold price forecast from $1325 to $1,200 an ounce. Swiss bank also cut its average silver price forecast for 2015 from $24 previously to $21per ounce and they left the 2015 and more distant gold forecasts unchanged from previous calls. India crude oil futures continued its upside movement on Wednesday tracking an up-trend on NYMEX crude oil futures. US crude oil futures recorded an up-tick yesterday and continued its upside movement on Wednesday due to a surprise decline in US crude oil inventories. Crude oil futures on India's Multi Commodity Exchange (MCX) for December delivery was seen trading with a gain of 0.85% at Rs.6066 per barrel as of 16.42 IST on Wednesday. NYMEX crude oil futures for January delivery was seen trading with a gain of $1.25 at $97.29 per barrel as of 17.30 IST on Wednesday.

TRADING STRATEGY: BUY GOLD FEB ABOVE 29790 TGT 29870/29970 SL 29690 SELL GOLD FEB BELOW 29280 TGT 29200/29100 SL 29380 YOUR MINTVISORY

MCX copper was seen trading sideways on Wednesday. Support for MCX copper February delivery is seen at 443.5 and 441 levels while resistance is seen at 448. MCX copper for February delivery was seen trading with a loss of 0.30% at Rs.444.15 per kilogram as of 17.09 IST on Wednesday.

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DAILY REPORT 05th DECEMBER. 2013

NCDEX

RECOMMENDATIONS CASTORSEED

NCDEX INDICES Index

Value

% Change

Barley

1345

+1.66

Castor Seed

4358

+0.25

Chana

2942

+0.34

Chilli

6530

-3.03

Coriander

7515

+0.43

Cotton Seed Oilcake

1406

+0.64

12450

+0.91

Mustard seed

3743

+1.74

Ref Soya Oil

708.5

+0.60

Turmeric

5058

+1.40

Jeera

SELL CASTORSEED BELOW 4340 TGTS 4310/4260 SL 4390 BUY CASTORSEED ABOVE 4425 TGTS 4455/4495 SL 4485 NCDEX ROUNDUP DHANIYA Coffee exports have registered a 29 per cent rise in the first two months of the crop year (October 2013 to September 2014). The country exported 39,800 tonnes, compared to 30,859 tonnes a year ago. The rise is significant as the previous year (October 2012-September 2013) had seen a decline of 5.24 per cent to 299,582 tonnes. India exports coffee mostly to Italy, Germany, Russia, Belgium and Spain. Robusta variety is mainly used in the preparation of instant drinks and espressos worldwide.

BUY DHANIYA ABOVE 7550 TGTS 7580/7630 SL 7500 SELL DHANIYA BELOW 7460 TGTS 7430/7380 SL 7510

YOUR MINTVISORY

Chilli prices fell further by 2.35% to Rs 6,576 per quintal in futures trade yesday as speculators offloaded positions amid slump in demand in the spot market against adequate stocks position. At the National Commodity and Derivatives Exchange, chilli for delivery in December fell further by Rs 158, or 2.35% to Rs 6,676 per quintal with an open interest of 3745 lots. Offloading of positions by speculators driven by weak spot demand against adequate stocks position mainly kept pressure on chilli prices at futures trade.

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DAILY REPORT 05th DECEMBER. 2013

CURRENCY

RBI Reference Rate Currency

Rate Currency

Rupee- $

62.3330 Yen-100

Euro

84.6848 GBP

USD/INR

Rate

60.7700 102.1825

CURRENCY ROUNDUP The rupee was trading marginally higher to the US dollar at Rs 62.30 compared with yesterday's close of Rs 62.36 as the dollar flows from banks is seen helping offset dollar demand from oil marketing companies. The yen held off a five-year trough on the euro and a sixmonth low versus the dollar on Thursday following a whippy session overnight that lacked conviction as key event risks including U.S. jobs data loomed.

SELL USD/INR BELOW 62.42 TGTS 62.30, 62.16 SL 62.82. BUY USD/INR ABOVE 62.95 TGTS 63.12, 63.28 SL 62.55. EUR/INR

The lift in yields helped the U.S. dollar regain ground on the yen to stand at 102.37 early Thursday, up from a low of 101.82. It may get further support if U.S. gross domestic product data get revised up later Thursday. A major mover was the Canadian dollar which sagged to 3-1/2-year lows after the Bank of Canada issued a dovish policy statement, highlighting the risks of undesirably weak inflation. The euro was steady at $1.3585, having bounced from a trough of $1.3527 on Wednesday. Service sector data had showed activity in Italy and France shrinking in November but expanding in Spain and Germany, highlighting the divergence in the bloc. There was more good news for Spain as Moody's upgraded its credit outlook to stable from negative, citing a rebalancing of and a brighter medium-term view for the country's economy.

SELL EUR/INR BELOW 84.80 TGTS 84.67, 84.50 SL 85.25. BUY EUR/INR ABOVE 85.52 TGTS 85.65, 85.84 SL 85.10.

YOUR MINTVISORY

The Reserve Bank of India said on Wednesday it accepted all 8 bids for 10.26 billion rupees at its one-day reverse repo auction through which it absorbs excess liquidity from the banking system. It had accepted all 4 bids for 8.74 billion rupees at its one-day repo auction through which it injects liquidity into the banking system. Indian banks' refinancing with RBI falls to 169.75 billion rupees. Indian banks' cash balances with RBI rise to 3.28 trillion rupees.

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DAILY REPORT 05th DECEMBER. 2013

CALL REPORT PERFORMANCE UPDATES

Date

Commodity/ Currency

Contract

Strategy

Entry Level

Target

Stop Loss

Remark

04/12/13

MCX GOLD

FEB

BUY

29290

29370-29470

29190

BOOKED FULL PROFIT

04/12/13

MCX GOLD

FEB

SELL

28870

28790-28690

28970

NOT EXECUTED

04/12/13

MCX SILVER

MAR

BUY

44550

44750-45050

44150

BOOKED FULL PROFIT

04/12/13

MCX SILVER

MAR

SELL

43750

43550-43150

44050

SL TRIGGERED

04/12/13

NCDEX CASTOR SEED

JAN.

SELL

4330

4300-4260

4380

SL TRIGGERED

04/12/13

NCDEX CASTOR SEED

JAN.

BUY

4365

4395-4435

4325

BOOKED PROFIT

04/12/13

NCDEX DHANIYA

DEC.

BUY

7550

7580-7620

7500

NOT EXECUTED

04/12/13

NCDEX DHANIYA

DEC.

SELL

7440

7410-7370

7490

BOOKED FULL PROFIT

04/12/13

GBP/INR

DEC.

SELL

102.21

102.02-101.77

102.76

NO PROFIT NO LOSS

04/12/13

GBP/INR

DEC.

BUY

103.02

103.18-103.48

102.50

SL TRIGGERED

04/12/13

JPY/INR

DEC.

SELL

60.74

60.55-60.26

61.30

NOT EXECUTED

04/12/13

JPYINR

DEC.

BUY

61.27

61.42-61.57

60.81

BOOKED PROFIT

Date

Scrip

CASH/FUTURE Strategy

Entry Level

Target

Stop Loss

Remark

04/12/13

NIFTY

FUTURE

BUY

6240-6250

6280-6300

6210

SL TRIGGERED

04/12/13

MCLOED RUSSEL

FUTURE

BUY

300-302

308-314

294

CLOSED AT LOSS

04/12/13

PETRONET

FUTURE

BUY

134-136

138-140

132

NO PROFIT NO LOSS

04/12/13

PATEL ENG.

CASH

BUY

54

58-62

50

BOOKED PROFIT

03/12/13

NIFTY

FUTURE

BUY

6240-6250

6280-6300

6210

SL TRIGGERED

02/12/13

NIFTY

FUTURE

BUY

6240

6280-6350

6170

BOOKED PROFIT

US ECONOMIC REPORT TIME (ET)

REPORT

PERIOD

ACTUAL

CONSENSUSFORECAST

PREVIOUS

THURSDAY, DEC. 05 8:30 AM

WEEKLY JOBLESS CLAIMS

8:30 AM

GDP REVISION

10 AM

FACTORY ORDERS

11/30

N/A

N/A

3Q

3.1%

2.8%

OCT.

-0.7%

1.7%

FRIDAY, DEC. 06 8:30 AM

NONFARM PAYROLLS

NOV.

180,000

204,000

8:30 AM

UNEMPLOYMENT RATE

NOV.

7.2%

7.3%

8:30 AM

PERSONAL INCOME

OCT.

0.3%

0.5%

8:30 AM

CONSUMER SPENDING

OCT.

0.2%

0.2%

8:30 AM

CORE PCE PRICE INDEX

OCT.

0.1%

0.1%

9:55 AM

UMICH CONSUMER SENTIMENT INDEX

DEC.

74.0

72.0

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