Special report by epic research 23 december 2013

Page 1

DAILY REPORT 23rd DECEMBER. 2013

Global markets at a glance Asian stocks inched cautiously higher on Monday encouraged by record highs on Wall Street, though anxiety over a credit squeeze in China has weighed on shares there while adding to pressure on emerging market currencies. European shares rose on Friday, recording their best week in eight months. Europe's broad FTSEurofirst 300 index rose 0.45 percent. The charts outlook also brightened for the broader market, opening the door for more gains on the EuroSTOXX 50 index of euro zone blue-chips, up 0.6 percent at 3,049.35 points. Both the Dow and the S&P 500 finished Friday's session at record closing highs. This marked the Dow's third record closing high in a row. Earlier in Friday's session, the Dow set an all-time intraday high at 16,287.84. Wall Street Update Stocks rose on Friday, capping the best week for major indexes in months as unexpectedly strong data on economic growth increased confidence that the recovery was accelerating. On Wall Street, the Dow Jones ended Friday up 0.26 percent, while the S&P 500 Index added 0.48 percent. Previous day Roundup The market staged spectacular rally on Friday with the Sensex surging 400 points intraday on broad based buying. The rally was largely led by Reliance Industries after the cabinet decision on gas price and liquidity gush by FII despite Fed's decision to taper. The Sensex rallied 371.10 points or 1.79% to 21,079.72, and the Nifty rose 107.60 points or 1.74 percent to close at 6,274.25. Index stats The Bankex and Bank Nifty both advanced 1.81% & 1.85% respectively. Among the sartorial indices all the sectors were up; Capital Goods [up 56.28pts], Oil & Gas [up pts], AUTO [up 244.87pts], PSU [up 111.46pts], Metals [up 51.34pts], Realty [up 37.76pts], TECK [up 73.97pts], IT [up 147.38pts], FMCG [up 53.33pts], Power [up 25.30pts], and Healthcare [up 57.40pts], the index only slipped was Consumer Durables [down 83.78pts].

World Indices Index

Value

% Change

16,221.14

+0.26

S&P 500

1,818.32

+0.48

NASDAQ EURO STO FTSE 100

4,104.74 3,049.35 6,606.58

+1.15 +0.60 +0.69

Nikkei 225 Hong Kong

15,870.42 22,971.56

+0.07 +0.70

DJl

Top Gainers Company

CMP

Change

% Chg

RELIANCE

895.25

41.20

+4.82

ONGC

285.00

11.30

+4.13

WIPRO

548.35

19.20

+3.63

CAIRN

328.70

11.20

+3.53

HDFC

803.65

27.40

+3.53

CMP

Change

% Chg

202.20 2,625.10 579.55 250.00 1,060.65

2.70 15.25 3.35 0.95 0.30

-1.32 -0.58 -0.57 -0.38 -0.03

Prev. Close

Change

%Chg

1,665.00

18.60

+1.13

BFUTILITIE

492.20

23.40

+4.99

ESCORTS

137.30

6.45

+4.93

INFOTECENT

325.00

11.65

+3.72

3,550.00

37.75

+1.07

Prev. Close

Change

%Chg

45.00 55.05

1.30 -0.30

-2.81 -0.54

CMP

Change

% Chg

6,274.25 21,079.72

+107.60 +371.10

+1.74 +1.79

Top Losers Company

SSLT GRASIM SUNPHARMA JINDALSTEL LT

Stocks at 52 Week’s high Symbol

ABBOTINDIA

INFY

Stocks at 52 Week’s Low Symbol

DSKULKARNI ESSARPORTS

Indian Indices Company NIFTY SENSEX

YOUR MINTVISORY

Call us at +91-731-6642300


DAILY REPORT 23rd DECEMBER. 2013

EQUITY CASH & FUTURE

STOCK RECOMMENDATIONS [FUTURE] 1. KOTAK BANK

STOCK RECOMMENDATION 1. BANK NIFTY

KTK BANK FUTURE is looking strong on charts, long build up has been seen, we may see more upside, if it continues to sustain above 105. We advise buying around 104-105 levels with strict stop loss 102 for the targets of 107-109 levels.

Bank Nifty Future closed in the green in the last trading session. We advise buying on dips around 11250 with strict stop loss of 11100 for the targets of 11380-11520 levels

2. RELIANCE

RELIANCE FUTURE is looking strong on charts, long build up has been seen, we may see more upside, if it continues to sustain above 895. We advise buying around 895-900 levels with strict stop loss 878 for the targets of 915-935 levels. YOUR MINTVISORY

MACRO NEWS  In a major exit from the IT major Infosys, V Balakrishnan, Head of Infosys BPO, Finacle, and India Business Unit and Chairman of Infosys Lodestone has resigned. The resignation will be effective from December 31, 2013.  The Securities and Exchange Board of India (Sebi) has served Financial Technologies with a show-cause notice calling into question FTIL’s shareholding in MCX-SX .  TCS and Infosys together accounted for more than half of the gain. The market capitalisation (m-cap) of TCS climbed Rs 22,849 crore to Rs 4,15,162 crore, while that of Infosys jumped Rs 10,247 crore to Rs 2,03,985 crore.  Air India to sell 7 Dream liners to raise $840 million  Air Asia may get SOP for domestic services by January end.  Government plans cash-for-clunkers scheme to replace 15 -year-old commercial vehicles with new one.  Net direct tax collection up 13.7 per cent till December 20 in FY'14.  Around Rs 22,000 crore to enter social sector as India Inc steps up CSR plans.

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DAILY REPORT FUTURE & OPTION

23rd DECEMBER. 2013

MOST ACTIVE PUT OPTION Symbol

Option Type

Strike Price

LTP

Traded Volume (Contracts)

Open Interest

NIFTY

PE

6,200

11.70

7,66,426

70,62,100

NIFTY

PE

6,100

3.80

4,70,510

63,26,600

NIFTY

PE

6,000

1.80

2,64,230

51,10,700

BANK NIFTY

PE

11,000

26.00

53,348

3,75,675

SBIN

PE

1,700

6.30

7,870

3,63,250

MCDOWELL-N

PE

2,600

11.40

2,170

1,78,250

RELIANCE

PE

880

4.80

3,411

3,61,000

AXISBANK

PE

1,250

7.50

2,828

3,70,500

Strike Price

LTP

Traded Volume (Contracts)

Open Interest

STOCKS IN NEWS  NHPC completes Rs 2,368 crore share buyback  PepsiCo India to invest over Rs 1,200 cr on new plant in AP.  Deadline for banks to shift to new RTGS standards extended  ICICI Bank cuts home loan rates after SBI and HDFC. NIFTY FUTURE

MOST ACTIVE CALL OPTION Symbol

Option Type

NIFTY

CE

6,300

36.00

7,31,086

68,99,650

NIFTY

CE

6,200

103.95

6,58,047

40,94,400

NIFTY

CE

6,400

6.70

2,89,047

49,93,800

BANKNIFTY

CE

11,500

53.10

62.660

3,35,550

RELIANCE

CE

880

21.45

10,537

5,08,750

SBIN

CE

1,750

29.00

10,316

2,56,500

TCS

CE

2,100

38.80

4,653

2,29,000

DLF

CE

160

5.40

3,594

20,35,000

ICICIBANK

CE

1,100

10.90

3,496

4,30,250

Nifty Future closed in the green in the last trading session. We advise buying around 6280-6300 with strict stop loss of 6250 for the targets of 6340-6370 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

101170

3148.21

90256

2800.84

616510

19286.15

347.37

INDEX OPTIONS

707342

21675.77

685007

20917.95

1874063

58524.33

757.81

STOCK FUTURES

334547

9731.87

323292

9497.38

1137319

33176.13

234.49

STOCK OPTIONS

51021

1402.42

53398

1466.90

58631

1607.16

-64.48

TOTAL

1275.29

INDICES NIFTY

S2

S1

PIVOT

R1

R2

6128.88

6201.56

6243.03

6315.71

6357.18

NIFTYJUNIOR

12428.96

12553.58

12623.76

12748.38

12818.56

BANK NIFTY

10984.48

11138.41

11228.48

11382.41

11472.48

YOUR MINTVISORY

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DAILY REPORT 23rd DECEMBER. 2013

COMMODITY MCX

RECOMMENDATIONS SILVER

COMMODITY ROUNDUP Gold has been getting less precious by the day due to the winding back of U.S. stimulus and a general lack of global inflationary pressure. Barring a late price surge, gold's value will suffer its first annual drop since the start of the millennium, while the precious metal risks further losses in 2014. Gold stood at $1,205 an ounce Friday on the London Bullion Market, down almost 27 per cent in 2013 on weaker demand and easing inflation -- snapping twelve years of uninterrupted annual price growth. That leaves gold, whose twin drivers are jewellery demand and investment buying, set for its the first annual price loss since 2000 when its value had fallen by 5.6 per cent. The metal was pinned at $1,202.44 on Monday after carving out a six-month low of $1,187.80 last week. If prices stay here the metal would have shed 28 percent this year, the largest annual loss in 32 years.

TRADING STRATEGY: BUY SILVER ABOVE 44550 TGTS 44750/4505 SL 43950 SELL SILVER BELOW 43550TGTS 43350/43050 SL 43850

In contrast, oil prices have been supported by a positive outlook for fuel demand in the United States and reduced Libyan supply. Brent crude was up 7 cents on Monday at $111.84 a barrel, on top of gains of almost 3 percent last week. U.S. oil futures were a single cent lower at $99.31.

GOLD

The prices of MCX Copper is static and remained trading in a dull zone with lack of interest from the speculators. The metal has been swinging in between Rs 455-465 per kg in the week. The week was on the whole eventful just that the trading interest never chipped in. India’s steel production fell to 14-month low in November at 6.25 million tonne due to subdued demand from sectors such as white goods and automobiles. It is the lowest monthly production since September last year, when it was 6.299 MT. As per the World Steel Association, a premier global industry body, the previous low was in October at 6.461 MT.

TRADING STRATEGY: BUY GOLD ABOVE 28660 TGTS 28740/28840 SL 28540 SELL GOLD BELOW 28260 TGTS 28180/28080 SL 28360

YOUR MINTVISORY

The US Federal Reserve’s recent tapering of its massive bond buying program (termed QE) and the strength in dollar indices is likely to pull down dollar-denominated commodities such as base metals, albeit for the short term.

Call us at +91-731-6642300


DAILY REPORT 23rd DECEMBER. 2013

NCDEX

RECOMMENDATIONS CASTORSEED

NCDEX INDICES Index

Value

% Change

Barley

1451

+0.07

Castor Seed

4939

+0.14

Chana

2844

+2.27

Chilli

7250

-0.08

Coriander

7750

-0.03

Cotton Seed Oilcake

1440

+1.27

12950

-1.28

3565

+0.11

691.65

+0.01

5320

-1.81

Jeera Mustard seed Ref Soya Oil BUY CASTORSEED(JAN) ABOVE 4950 TGT 4980,5030 SL 4900 SELL CASTORSEED(JAN) BELOW 4850 TGT 4820,4770 SL 4900 DHANIYA

Turmeric

NCDEX ROUNDUP US agriculture land prices have dropped for first time in last four year. Recent pressure on grain prices and the start of slower assets purchases announced by the Federal Reserve earlier this week has seen US farmland in the main US cropping states decline for the first time in four year. India Government has raised the basic customs duty on natural rubber imports in view of the crisis facing the plantation industry but still hasn't heeded to the demand for a total import ban on rubber. It also falls short of the demand by Rubber Board to hike customs duty to 25%. Rubber prices fell sharply last month to Rs 15350 per 100 kg levels in the spot market before climbing back to Rs 156 levels in December.

BUY DHANIYA(JAN) ABOVE 8250 TGT 8280,8330 SL 8200 SELL DHANIYA(JAN) BELOW 8100 TGT 8070,8020 SL 8150

YOUR MINTVISORY

Stockiest selling was seen in jeera futures from the higher levels on the back of strong production estimates in the current year along with limited export demand. The NCDEX futures declined by Rs 85 per quintal. The current year jeera production is estimated to be around 40-42 lakh bags in the current year , up almost 5-7 lakh bags from the year. This has reduced the exporters demand in local mandies with the expectation of further decline in prices in coming days.

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DAILY REPORT 23rd DECEMBER. 2013

CURRENCY

RBI Reference Rate Currency

Rate Currency

Rupee- $

62.2420 Yen-100

Euro

84.8774 GBP

USD/INR

SELL USD/INR BELOW 62.15 TGTS 62.00, 61.86 SL 62.51. BUY USD/INR ABOVE 62.53 TGTS 62.69, 62.85 SL 62.17.

Rate

59.5900 101.8092

CURRENCY ROUNDUP The Indian rupee slipped in the early trade today. It has opened lower by 27 paise at 62.39 per dollar versus 62.12 Thursday. . The rupee dropped 14 paise to 62.28 against the American currency in the late morning trade on good demand for dollar from banks and importers on the back of its firmness in overseas markets. However, persistent foreign capital inflows into India's equity market restricted the rupee's fall. The domestic unit resumed lower at 62.40 per dollar as against the last closing level of 62.14 at the Interbank Foreign Exchange (Forex) market. It recovered afterwards to 62.24 per dollar before quoting at 62.28 at 1040hrs. The Indian unit hovered in a range of 62.24-62.40 per dollar during the late morning deals. The dollar index gains to 80.7 levels, while the euro is a tad subdued and the yen faces pressure in early trade ahead of the outcome of a Bank of Japan meeting at which policymakers were expected to maintain their commitment to ultra-easy monetary policy

EUR/INR The dollar was idling at 104.02 yen on Monday after scoring a fresh 5-year high at 104.64 last week. Dealers cited option barriers at 104.75 and 105.00 as the next target for bulls. The euro was a shade firmer at $1.3681, but well short of last week's $1.3811 peak. The single currency was only briefly troubled on Friday when Standard & Poor's cut its supranational long-term rating on the European Union to AA-plus from AAA, citing rising tensions on budget negotiations.

SELL EUR/INR BELOW 84.75 TGTS 84.61, 84.44 SL 85.11. BUY EUR/INR ABOVE 85.29 TGTS 85.41, 85.66 SL 84.93.

YOUR MINTVISORY

Yields on benchmark 10-year Treasuries were holding at 2.89 percent having risen just 2 basis points last week even as the Fed announced its tapering. Currencies from Indonesia to Malaysia and Thailand all came under pressure last week and even the Korean won lost a little of its strength.

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DAILY REPORT 23rd DECEMBER. 2013

CALL REPORT PERFORMANCE UPDATES

Date

Commodity/ Currency Pairs

Contract

Strategy Entry Level

Target

Stop Loss

Remark

20/12/13

MCX GOLD

FEB.

BUY

28580

28660-28760

28470

BOOKED PROFIT

20/12/13

MCX GOLD

FEB.

SELL

28310

28230-28130

28430

SL TRIGGERED

20/12/13

MCX SILVER

MAR.

BUY

44260

44460-44760

43950

SL TRIGGEERD

20/12/13

MCX SILVER

MAR.

SELL

43600

43350-42950

44000

SL TRIGGERED

20/12/13

NCDEX CASTOR SEED

JAN.

SELL

4870

4840-4790

4920

NOT EXECUTED

20/12/13

NCDEX CASTOR SEED

JAN.

BUY

4970

5000-5050

4920

BOOKED PROFIT

20/12/13

NCDEX DHANIYA

JAN.

BUY

8300

8330-8380

8250

BOOKED FULL PROFIT

20/12/13

NCDEX DHANIYA

JAN.

SELL

8135

8105-8055

8185

SL TRIGGERED

20/12/13

JPY/INR

DEC.

SELL

59.76

59.60-59.42

60.15

BOOKED PROFIT

20/12/13

JPY/INR

DEC.

BUY

60.16

60.29-60.49

59.75

SL TRIGGERED

20/12/13

EUR/INR

DEC.

SELL

85.05

84.91-84.78

85.46

BOOKED PROFIT

20/12/13

EURINR

DEC.

BUY

85.52

85.70-85.91

85.11

NOT EXECUTED

Date

Scrip

CASH/FUTURE Strategy

Entry Level Target

Stop Loss

Remark

20/12/13

NIFTY

FUTURE

SELL

6200

6150-6100

6250

SL TRIGGERED

20/12/13

CIPLA

FUTURE

BUY

400-402

407-412

395

CALL OPEN

20/12/13

JSWSTEEL

FUTURE

BUY

966

972-978

958

CALL OPEN

20/12/13

WELSPUN

CASH

BUY

45

48-52

42

BOOKED PROFIT

16/12/13

TATAMOTORS

FUTURE

BUY

368-372

378-384

360

CALL OPEN

US ECONOMIC REPORT

TIME (ET)

REPORT

8:30 AM 8:30 AM 8:30 AM 9:55 AM

PERSONAL INCOME CONSUMER SPENDING CORE PCE PRICE INDEX UMICH CONSUMER SENTIMENT INDEX

8:30 AM 10:00 AM

DURABLE GOODS ORDERS NEW HOME SALES

PERIOD

ACTUAL

MONDAY, DEC. 23 NOV. NOV. NOV. DEC. TUESDAY, DEC. 24 NOV. NOV. WEDNESDAY, DEC. 25

CONSENSUS FORECAST

PREVIOUS

0.4% 0.5% 0.1% 82.9

-0.1% 0.3% 0.1% 82.5

2.0 435,000

-1.6% 444,000

N/A

379,000

CHRISTMAS DAY NONE SCHEDULED 8:30 AM

WEEKLY JOBLESS CLAIMS

THURSDAY, DEC. 26 12/21 FRIDAY, DEC. 27

NONE SCHEDULED

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