Special report by epic research 16 december 2013

Page 1

DAILY REPORT 16th DECEMBER. 2013

Global markets at a glance European shares were holding at two-month lows on Friday and are set for their worst fortnight since June. The FTSEurofirst 300 index of top European shares lost 0.2 percent, to 1,242.68 points, after hitting a two-month low earlier in the session. The benchmark index, which was up 15 percent on the year at the end of November, has dropped about 4.8 percent since then, its biggest decline in six months. Hong Kong and China shares rebounded by midday on Friday, trimming the first weekly loss for mainland markets in a month as investors awaited news of China's 2014 growth target from an economic planning conference. On Friday, five Chinese banks sold a total of 15 billion yuan ($2.47 billion) of negotiable certificates of deposits (NCDs) in the next step towards relaxing China's control over rates Wall Street Update Wall Street ends flat on Friday. Stocks ended Friday's session little changed after a three-day drop. The Dow Jones industrial average rose 15.93 points or 0.1 percent, to end at 15,755.36. The S&P 500 dipped a mere 0.18 of a point or 0.01 percent, to finish at 1,775.32. The Nasdaq Composite added 2.572 points or 0.06 percent, to close at 4,000.975. Previous day Roundup Rate hike fears spooked the market. The Sensex declined 191.08 points or 0.91 percent to 20,734.53, and the Nifty slipped 64.10 points or 1.03 percent to 6,172.95. Stocks fell for a fourth consecutive day to come to pre-exit poll levels after a pickup in retail inflation to its fastest pace on record was seen forcing India's central bank to raise interest rates for a third time on Wednesday.

World Indices Index

Value

% Change

15,755.36

+0.10

S&P 500

1,775.32

-0.01

NASDAQ EURO STO FTSE 100

4,000.98 2,921.92 6,439096

+0.06 -0.21 -0.08

Nikkei 225 Hong Kong

15,403.11 23,245.96

+0.40 +0.12

DJl

Top Gainers Company

CMP

Change

% Chg

TATAMOTORS

370.30

9.85

+2.73

WIPRO

519.95

9.30

+1.82

M&M

954.00

12.20

+1.30

COALINDIA

283.75

2.75

+0.98

TATASTEEL

416.45

3.70

+0.90

CMP

Change

% Chg

51.35 154.70 1,089.05 1,800.00 417.65

2.85 6.55 43.55 71.40 15.95

-5.26 -4.06 -3.85 -3.82 -3.43

Prev. Close

Change

%Chg

412.05

19.60

+4.99

97.80

4.5

+4.82

1,184.5

3.75

+0.32

180

4.20

+2.39

677.4

5.35

+0.80

Prev. Close

Change

%Chg

212.1 272.55

2.65 20.60

-1.23 -7.03

CMP

Change

% Chg

6,168.40 20,715.58

-210.03 -68.65

-1.00 -1.10

Top Losers Company

JPASSOCIAT BHEL ICICIBANK ULTRACEMCO INDUSINDBK

Stocks at 52 Week’s high Symbol

BFUTILITIE DELTACORP HCLTECH SASKEN SKF INDIA

Index stats The Bankex and Bank Nifty both declined 2.25% & 2.31% respectively. Among the sartorial indices all the sectors were down; Capital Goods [down 186.43pts], Oil & Gas [up pts], AUTO [down 19.31pts], PSU [down 81.78pts], Consumer Durables [down 52.98pts], FMCG [down 43.43pts], Metals [down 61.08pts], Realty [down 28.69pts], TECK [down 9.09pts], Power [down 37.00pts], and Healthcare [down 44.94pts], the index up was IT [up 0.14pts].

YOUR MINTVISORY

Stocks at 52 Week’s Low Symbol

BAJAJCORP JETAIRWAYS

Indian Indices Company NIFTY SENSEX

Call us at +91-731-6642300


DAILY REPORT 16th DECEMBER. 2013

EQUITY CASH & FUTURE

STOCK RECOMMENDATIONS [FUTURE] 1. TATA MOTORS

STOCK RECOMMENDATION [CASH] 1. BF UTILITIES

TATA MOTOR FUTURE is looking strong on charts, long build up has been seen, we may see more upside, if it continues to sustain above 370, We advise buying around 368-372 levels with strict stop loss 360 for the targets of 378-384.

BF UTILITIES is looking strong on charts. We advise buying around 410-415 levels with strict stop loss of 400 for the targets of 425-440 levels.

2. AURO PHARMA

MACRO NEWS  Wholesale Price Index will be announced tOday at 11:30 AM.  Railways have registered a shortfall in revenue to the tune of Rs 4121.49 crores during the first half of the current financial year from April to September.  The Government of India is likely to realize an amount of approximately Rs 2,000 crore from NHPC buyback offer. The buyback which opened on November 29 closed on December 12. The entire process would be completed by January 7, 2014.  India industrial growth to remain weak for rest of 201314: CRISIL.  Tata Motors emerged as the cheapest export-oriented stock based on 12-month forward earnings among the BSE index constituents, mainly due to increasing contribution in revenue and profits from its unit JLR.  The markets would tread cautiously waiting for how the two key events this week unfold – FOMC meeting on December 17-18 and RBI meeting on December 18th.  RIL protests against move to snatch away 5 gas discoveries.

AUROPHARMA FUTURE is looking strong on charts, long build up has been seen, we may see more upside, if it continues to sustain above 314, We advise buying above 314 levels with strict stop loss 309 for the targets of 318-324 levels. YOUR MINTVISORY

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DAILY REPORT FUTURE & OPTION

16th DECEMBER. 2013

STOCKS IN NEWS  Essar Oil selling gas from coal seam at $ 9.16 to $ 11.63 while GEECL sells same at $ 8.46 to 22.01.  Torrent Pharma acquires Elder’s domestic business for Rs 2000 crore.  Sterlite to connect 150K homes with fiber by March 2014.  LIC Housing Finance will meet bank licence norms.  RIL to ramp up gas output from KG-D 6  RPower starts generation from Sasan UMPP second unit.

MOST ACTIVE PUT OPTION Symbol

Option Type

Strike Price

LTP

Traded Volume (Contracts)

Open Interest

NIFTY

PE

6,200

70.05

3,49,381

37,96,750

NIFTY

PE

6,100

34.45

3,06,609

48,49,350

NIFTY

PE

6,000

15.65

2,14,954

54,65,600

BANK NIFTY

PE

11,000 105.00

20,385

3,12,425

SBIN

PE

1,700

23.00

3,812

2,25,500

ICICIBANK

PE

1,100

32.90

2,694

1,77,750

DLF

PE

150

4.80

1,919

10,74,000

AXISBANK

PE

1,200

18.10

1,695

3,24,250

Strike Price

LTP

Traded Volume (Contracts)

Open Interest

NIFTY FUTURE

MOST ACTIVE CALL OPTION Symbol

Option Type

NIFTY

CE

6,300

36.5

4,11,076

69,98,800

NIFTY

CE

6,400

14.4

3,03,600

50,32,050

NIFTY

CE

6,200

78.05

2,65,191

33,32,100

BANKNIFTY

CE

12,000

64.00

31,154

4,26,325

SBIN

CE

1,900

6.75

6,507

6,34,250

JPASSOCIAT

CE

55

0.95

2,996

56,68,000

TCS

CE

2,100

11.00

4,200

5,10,750

DLF

CE

160

2.45

2,716

25,62,200

RELIANCE

CE

880

9.30

2,706

6,54,000

Nifty Future closed in the red in the last trading session. We advise selling below 6180 with strict stop loss of 6240 for the targets of 6150-6120 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

38762

1188.62

68387

2090.45

569875

17592.72

-901.83

INDEX OPTIONS

360041

11018.15

325036

10022.49

1708088

52513.73

995.66

STOCK FUTURES

41932

1218.79

67689

1894.57

1160411

31756.25

-675.78

STOCK OPTIONS

32702

897.63

33664

925.25

51161

1357.49

-27.61

TOTAL

-609.57

INDICES NIFTY

S2

S1

PIVOT

R1

R2

6195.18

6216.11

6251.48

6272.41

6307.78

NIFTYJUNIOR

12226.06

12267.63

12338.31

12379.88

12450.56

BANK NIFTY

11520.96

11578.23

11679.96

11737.23

11838.96

YOUR MINTVISORY

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DAILY REPORT 16th DECEMBER. 2013

COMMODITY MCX

RECOMMENDATIONS SILVER

COMMODITY ROUNDUP U.S. crude futures for January fell 90 cents to settle at $96.60 a barrel, after rising around $6 in the past two weeks. MCX Crude was taking resistance at 6110 and support at 5930. Intraday weakness could see only below 6005 region towards 5970/5940. However, inability to unscathed below 6005 region could keep prices higher to 6110/6155. U.S. Gold rose about 1 percent to $1,237 an ounce after a two-day fall, but sentiment remained fragile. A sideways trading seen in MCX GOLD Feb contract on Friday, although it closed at higher at 29432 or +0.72% from previous close. Previous week was a recovery period for gold, GOLD price is tacking immediate resistance at 29650 and support at 29150. for coming week market will be in sideways due to Christmas fest.

TRADING STRATEGY: BUY SILVER ABOVE 45050 TGTS 45300/45650 SL 44750 SELL SILVER BELOW 44500 TGTS 44250/43900 SL 44800 GOLD

Silver Prices had been pitching towards the major downside support if 43700-600 region, break below the same could prompt major selling bias towards 43250/42900 or even lower. On the other side silver has to close above 46000 for being in bullish trend. Prices look bearish after recent consecutive days of buying sentiments, however strike above 462.50 region could lift up prices further to 465/467.40 region. At the same time, failure to win above 462.5 region could call long liquidation pressure to 456 region. Gold held on to most of the previous session's sharp losses on Friday as strong U.S. retail data stoked fears of an early end to monetary stimulus and fund outflows accelerated. The metal is headed for its first annual decline in 13 years as investors, buoyed by a recovering global economy, direct more money towards riskier assets such as equities by pulling funds from safe-haven gold. Zinc futures prices on Friday fell 0.62% to Rs 121.10 per kg as participants reduced their positions. At MCX, zinc for delivery in December traded lower by 75 paisa, or 0.62%, to Rs 121.10 per kg, with a business turnover of 549 lots. The metal for delivery in January fell by 70 paisa, or 0.57%, to Rs 121.90 per kg in a turnover of 70 lots.

TRADING STRATEGY: BUY GOLD ABOVE 29500 TGTS 29580/29680 SL 29390 SELL GOLD BELOW 29250 TGTS 29170/29070 SL 29360 YOUR MINTVISORY

Nickel prices dropped 0.33% to Rs 869.70 per kg in futures trade On Friday after participants trimmed holdings tracking a weak trend overseas amid low demand from alloy-makers in the spot market.

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DAILY REPORT 16th DECEMBER. 2013

NCDEX

RECOMMENDATIONS CASTORSEED

NCDEX INDICES Index

Value

% Change

Barley

1438

+3.60

Castor Seed

4829

+1.68

Chana

2938

+1.59

Chilli

7308

+1.11

Coriander

7640

+3.92

Cotton Seed Oilcake

1427

+1.28

12800

+0.47

Mustard seed

3675

+0.19

Ref Soya Oil

695.6

-1.05

Turmeric

5090

+3.84

Jeera

BUY CASTORSEED JAN ABOVE 4880 TGT 4905,4940 SL 4840 SELL CASTORSEED JAN BELOW 4640 TGT 4615,4580 SL 4680

NCDEX ROUNDUP India Rabi acreage jumps 6.15% to 506.98 lakh hectares till Dec 12 Y/Y.

DHANIYA India's import of vegetable oil for November 2013 jumped by 35% to 944,309 tonnes from 700,371 tonnes in the same month last year. Coriander prices rose by 2.39% to Rs 7,528 per quintal in futures trade on Friday after speculators enlarged their holdings on firming spot markets trend. The trading sentiment improved further as a result of the limited stocks on account of restricted arrivals from the major growing belts. At NCDEX, coriander for December delivery rose by Rs 176, or 2.39% to Rs 7,528 per quintal with open interest of 1,380 lots.

BUY DHANIYA JAN ABOVE 8380 TGT 8405,8440 SL 8345 SELL DHANIYA JAN BELOW 7950 TGT 7925,7890 SL 7995

YOUR MINTVISORY

Soyabean prices dropped by Rs 89 to Rs 3,720 per quintal in trading on Friday as traders offloading holdings, tracking weak global cues. At the National Commodity and Derivatives Exchange, soyabean for far May contract slipped by Rs 89, or 2.34% to Rs 3,720 per quintal in open interest of 700 lots. Most active near January contract slide by Rs 27.50, or 0.72%, to Rs 3,769 per quintal, having an open interest of 1,28,680 lots.

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DAILY REPORT 16th DECEMBER. 2013

CURRENCY

RBI Reference Rate Currency

Rate Currency

Rupee- $

62.3896 Yen-100

Euro

84.7547 GBP

USD/INR

BUY USD/INR ABOVE 62.48 TGTS 62.62,62.75 SL 62.09. SELL USD/INR BELOW 62.21 TGTS 61.99,61.75 SL 62.60

Rate

61.1000 101.8011

CURRENCY ROUNDUP The Indian rupee fell and bond yields surged on Friday after retail inflation spiked to its highest on record, raising expectations for another rate hike by the central bank and adding to the woes of the embattled government. The rupee weakened as far as 62.28 to the dollar, a one-week low, and closed onshore trading at 62.125/135, a third day of losses. It had ended trade at 61.81/82 on Thursday. For the week, it fell 1.1 percent, after three successive weeks of gains. Bond yields surged, with the 10-year yield up 6 basis points at 8.91 percent. The dollar slipped against the yen after earlier hitting fiveyear highs. It last traded at 103.17 yen, down 0.2 percent on the day. The U.S. dollar hovered near a five-year high against the yen and rose against the euro on Friday, while global equity indexes slipped on growing concerns the U.S. Federal Reserve could surprise investors by scaling back its stimulus as early as next week.

EUR/INR Stronger-than-expected U.S. data and a budget deal in Washington have brightened the outlook for the U.S. economy but are causing jitters in equity markets, which have benefited from ample central bank liquidity. The current Thomson Reuters consensus among economists is still for the Fed to begin withdrawing stimulus in March. The dollar fell against the yen on Friday despite growing expectations for the Federal Reserve to begin scaling back its USD85 billion monthly asset-purchasing program as early as next week. Bottom fishing sent the yen posting gains against the dollar on Friday after hitting 5-year lows recently.

BUY EUR/INR ABOVE 85.64 TGTS 85.79, 85.92 SL 85.24. SELL EUR/INR BELOW 85.34 TGTS 85.18,84.97 SL 85.74.

YOUR MINTVISORY

In U.S. trading on Friday, USD/JPY was trading at 103.24, down 0.13%, up from a session low of 102.99 and off a high of 103.92. The yen was up against the pound and up against the euro, with GBP/JPY down 0.49% and trading at 168.20 and EUR/JPY trading down 0.38% at 141.67.

Call us at +91-731-6642300


DAILY REPORT 16th DECEMBER. 2013

CALL REPORT PERFORMANCE UPDATES

Date

Commodity/ Currency Pairs

Contract

Strategy Entry Level

Target

Stop Loss

Remark

13/12/13

MCX GOLD

DEC

BUY

29440

29520-29620

29340

NO PROFIT NO LOSS

13/12/13

MCX GOLD

DEC.

SELL

29130

29050-28950

29230

NOT EXECUTED

13/12/13

MCX SILVER

DEC

BUY

44900

45100-45400

44600

NO PROFIT NO LOSS

13/12/13

MCX SILVER

DEC

SELL

44220

44020-43720

44520

BOOKED PROFIT

13/12/13

NCDEX CASTOR SEED

JAN.

SELL

4700

4670-4620

4750

NOT EXECUTED

13/12/13

NCDEX CASTOR SEED

JAN.

BUY

4790

4820-4870

4740

BOOKED FULL PROFIT

13/12/13

NCDEX DHANIYA

JAN

BUY

7790

7820-7870

7740

BOOKED FULL PROFIT

13/12/13

NCDEX DHANIYA

JAN

SELL

7680

7650-7600

7730

NOT EXECUTED

13/12/13

GBP/INR

DEC.

SELL

101.07

101.52

NOT EXECUTED

13/12/13

GBP/INR

DEC.

BUY

101.77

101.32

BOOKED PROFIT

13/12/13

JPY/INR

DEC.

SELL

59.95

59.71-59.51

60.40

NOT EXECUTED

13/12/13

JPYINR

DEC.

BUY

60.46

60.61-60.85

60.00

NOT EXECUTED

Stop Loss

Remark

Date

Scrip

CASH/ FUTURE/ OPTION

Strategy

100.83100.61 101.92102.12

Entry Level Target

13/12/13

NIFTY

FUTURE

SELL

62756295

6225-6180

6335

NOT EXECUTED

13/12/13

TATA MOTORS

FUTURE

SELL

360

355-350

360

NOT EXECUTED

13/12/13

RECL

FUTURE

SELL

212

208.204

216

BOOKED PROFIT

13/12/13

JINDAL PHOTO

CASH

BUY

130-135

145-155

122

CALL OPEN

12/12/13

HCLTECH

FUTURE

BUY

1180

1200-1220

1160

CALL OPEN

11/12/13

SASKEN COMM

CASH

BUY

176

186-196

166

CALL OPEN

YOUR MINTVISORY

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DAILY REPORT 16th DECEMBER. 2013

ECONOMIC CALENDAR US ECONOMIC REPORT

TIME (ET)

REPORT

PERIOD

ACTUAL

CONSENSUSFORECAST

PREVIOUS

MONDAY, DEC. 16 8:30 AM

EMPIRE STATE INDEX

DEC.

4.0

-2.2

8:30 AM

PRODUCTIVITY REVISION

Q3

2.4%

1.9%

9:15 AM

INDUSTRIAL PRODUCTION

NOV.

0.5%

-0.1%

9:15 AM

CAPACITY UTILIZATION

NOV.

78.4%

78.1%

TUESDAY, DEC. 17 8:30 AM

CONSUMER PRICE INDEX

NOV.

0.1%

-0.1%

8:30 AM

CORE CPI

NOV.

0.1%

0.1%

8:30 AM

CURRENT ACCOUNT

Q3

--

-$99 BLN

10 AM

HOME BUILDERS' INDEX

DEC.

55

54

WEDNESDAY, DEC. 18 8:30 AM

HOUSING STARTS

NOV.

950,000

891,000 (AUG)

8:30 AM

BUILDING PERMITS

NOV.

1.00 MLN

1.04 MLN

2 PM

FOMC STATEMENT

2:30 AM

BERNANKE PRESS CONFERENCE THURSDAY, DEC. 19

8:30 AM

WEEKLY JOBLESS CLAIMS

12/14

N/A

N/A

10 AM

EXISTING HOME SALES

NOV.

5.05 MLN

5.12 MLN

10 AM

PHILLY FED

DEC.

10.0

6.5

10 AM

LEADING INDICATORS

NOV.

--

0.2%

3.6%

3.6%

FRIDAY, DEC. 20 8:30 AM

GDP REVISION

Q3 Disclaimer

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