Special report by epic research 3 january 2014

Page 1

DAILY REPORT 03rd JANUARY. 2014

Global markets at a glance Asian share markets were under water after a sudden reversal in some very popular, and thus crowded, trades sparked a bout of global risk aversion. The net result was a pullback in the euro, sterling, and stocks and a bounce for the yen, gold and bonds. MSCI's broadest index of AsiaPacific shares outside Japan shed a sharp 1.3%, with markets from Shanghai to Sydney all in the red. European stocks slipped on Thursday as soft Chinese and French manufacturing data prompted investors to start new year trading by cashing in a portion of the lofty gains made in 2013. The FTSEurofirst 300 index of top European shares, which gained 16 % in 2013, ended its first session of 2014 down 0.8% at 1,305.59 points. The drop was bigger in the euro zone, with the blue-chip Euro STOXX 50 index losing 1.6%, to 3,059.93 points. Wall Street Update U.S. stocks fell on their first day of trading in 2014 as investors booked profits. The Dow Jones DJI was down 135.31 points, or 0.82%, at 16,441.35. The SPX was down 16.38 points, or 0.89%, at 1,831.98. The Nasdaq Composite Index was down 33.52 points, or 0.80%, at 4,143.07. Previous day Roundup After consolidating for the past seven sessions, the market has seen sharp breakout on the lower side on Thursday with the equity benchmarks sliding more than a percent in last hour of trade. The Sensex closed below the 21000 level for the first time in last nine sessions, falling 252.15 pts or 1.19% to 20,888.33. The index lost nearly 450 pts from day’s high. The Nifty fell 80.50pts or 1.28% to 6,221.15. The broader markets too took a knock after gaining momentum since last week. The BSE Midcap declined 1.77 % and Smallcap slipped 2 %.

World Indices Index

Value

% Change

16,441.36

-0.82

S&P 500

1,831.98

-0.89

NASDAQ EURO STO FTSE 100

4,143.07 3,059.93 6,717.91

-0.80 -1.58 -0.46

Nikkei 225 Hong Kong

16,291.31 22,923.63

+0.69 -1.73

DJl

Top Gainers Company

CMP

Change

% Chg

101.70

2.20

+2.21

TCS

2,167.95

14.65

+0.68

INFY

3,484.20

16.20

+0.47

574.50

2.15

+0.38

1,770.00

6.00

+0.34

CMP

Change

% Chg

104.45 52.95 609.00 87.10 1,034.00

5.30 2.55 25.90 3.30 34.55

-4.83 -4.59 -4.08 -3.65 -3.23

Prev. Close

Change

%Chg

ARVIND

143.50

4.65

+3.35

DELTACORP

107.60

4.25

-3.80

GLOBOFFS

107.50

5.65

-4.99

JSWSTEEL

1004.95

10.45

-1.03

298.45

11.10

-3.59

Prev. Close

Change

%Chg

159.90 35.20

25.70 0.80

-13.85 -2.22

CMP

Change

% Chg

6,221.15 20,888.33

-80.50 -252.15

-1.28 -1.19

POWERGRID

SUNPHARMA MARUTI

Top Losers Company

IDFC JPASSOCIAT PNB TATAPOWER LT

Stocks at 52 Week’s high Symbol

TATACOMM Index stats The Bankex and Bank Nifty both declined 1.82% & 1.78% respectively. Among the sartorial indices all the sectors were down; Capital Goods [down 291.47pts], AUTO [down 104.19pts], PSU [down 127.55pts], Consumer Durables [down 101.72pts], Oil & Gas [down 151.25pts], Metals [down 148.50pts], Realty [down 45.21pts], TECK [down 20.97pts], Power [down 35.54pts], FMCG [down 114.16pts] and Healthcare [down 72.53pts], the only index advanced slightly was IT [up 9.63pts].

YOUR MINTVISORY

Stocks at 52 Week’s Low Symbol

BRFL MAHABANK

Indian Indices Company NIFTY SENSEX

Call us at +91-731-6642300


DAILY REPORT 03rd JANUARY. 2014

EQUITY CASH & FUTURE

STOCK RECOMMENDATIONS [FUTURE] 1. ADANI ENTERPRIZES

STOCK RECOMMENDATION [CASH] 1. CASTROL

SELL ADANIENT BELOW 254 TGT 250-245 SL 260

BUY CASTROL ABOVE 320 TGT 325-330 SL 314

2. ASIAN PAINTS

MACRO NEWS  India’s Service PMI will be announced today.  The HSBC India Manufacturing Purchasing Managers' Index (PMI) dropped slightly from 51.3 in Nov to 50.7 in Dec. India's manufacturing sector decelerated as a slowdown in domestic order flows led to slower output growth.  The government's move to restrict import of the yellow metal has resulted in a windfall for the designated importers such public sector companies and banks, which have now begun charging a premium, giving jewellers reason to seek higher prices.  The oil ministry has formed a panel to codify globally recognized industry practices for adoption in India.  Infosys is to Announce it’s third Quarter Results on January 10, 2014.  CCEA clears changes to Mega Power Policy. Power plants are also allowed to sell only 65% of their production to state discosm via a competitive bidding. Earlier, power plants used to sell 85% of their production to state discoms.

SELL ASIAN PAINTS BELOW 481 TGT 476-470 SL 488 YOUR MINTVISORY

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DAILY REPORT FUTURE & OPTION

03rd JANUARY. 2014

STOCKS IN NEWS  The Power Grid Corporation connected the southern power grid to the National Electricity Grid. The move will facilitate easier transmit of power from surplus states in other regions to several power-deficient southern states.  SBI to raise Rs 2000 crore via 10-year Tier II bond.  HCC wins order worth Rs 442.5 crore.  UCO Bank to offload bad loans worth Rs 1900 crore.  Lakshmi Vilas Bank to mull rights issue today.  Vodafone in talks to buy Tatas out of Teleservices.  Shree Uttam Steel merger with Uttam Galva gets CCI nod.

MOST ACTIVE PUT OPTION Symbol

Option Type

Strike Price

LTP

Traded Volume (Contracts)

Open Interest

NIFTY

PE

6,300 129.00

3,34,929

35,76,700

NIFTY

PE

6,200

83.80

2,73,085

39,43,600

NIFTY

PE

6,100

52.50

1,73,243

33,14,250

BANK NIFTY

PE

11,000 208.00

17,571

1,51,275

SBIN

PE

1,700

38.00

5,464

3,34,750

TATASTEEL

PE

420

11.95

1,469

4,80,000

RELIANCE

PE

900

35.00

1,691

2,11,750

MCDOWELLN

PE

2,600

77.00

1,402

91,875

MOST ACTIVE CALL OPTION Symbol

Option Type

Strike Price

LTP

Traded Volume (Contracts)

Open Interest

NIFTY

CE

6,400

48.90

3,41,382

41,53,050

NIFTY

CE

6,500

25.45

2,94,566

53,08,350

NIFTY

CE

6,600

11.70

2,00,537

33,24,800

BANKNIFTY

CE

12,000

70..25

31,860

3,13,975

SBIN

CE

1,900

32.00

13,405

6,06,250

RELIANCE

CE

900

14.40

4,959

9,26,250

DLF

CE

180

3,05

2,937

24,40,000

RCOM

CE

140

2.70

2,210

20,20,000

TATASTEEL

CE

430

8.30

1,989

5,25,000

NIFTY FUTURE

SELL NIFTY BELOW 6240 TGT 6220-6190 SL 6265

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

74992

2349.38

75809

2375.61

444626

13804.65

-26.23

INDEX OPTIONS

498095

15537.92

484734

15142.20

1015745

31513.10

395.71

STOCK FUTURES

56596

1891.27

58024

1980.28

963484

30572.67

-89.01

STOCK OPTIONS

39159

1162.12

41689

1235.44

34215

1061.87

-73.32

TOTAL

207.16

INDICES NIFTY

S2

S1

PIVOT

R1

R2

6116.58

6168.86

6263.58

6315.86

6410.58

NIFTYJUNIOR

12442.56

12580.18

12834.56

12972.18

13226.56

BANK NIFTY

10875.4

11029.3

11304.1

11458.0

11732.8

YOUR MINTVISORY

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DAILY REPORT 03rd JANUARY. 2014

COMMODITY MCX

RECOMMENDATIONS SILVER

COMMODITY ROUNDUP The GOLD rate touched an intraday high of Rs 28977 and an intraday low of Rs 28490. So far 15180 contracts had been traded. Gold Price is taking support at 28480 and traded in sideways big range all day. In evening session gold price broke the nearest resistance of 28860 and made high of 28977. Gold prices gained Rs 175 to Rs 30,200 per 10g here for the second straight day on increased buying by stockists and jewellers for the ensuing marriage season and a firming global trend. Silver also jumped Rs 950 to Rs 44,750 a kg on increased offtake by jewellers and industrial units. In a similar fashion, silver ready surged Rs 950 to Rs 44,750 a kg and weeklybased delivery Rs 1,220 to Rs 45,180 a kg. It had gained Rs 45 in last trading session. Silver coins also spurted Rs 1,000 to Rs 85,000 for buying and Rs 86,000 for selling of 100 pieces. The SILVER rate touched an intraday high of Rs 45500 and an intraday low of Rs 44000. So far 29034 contracts have been traded.

TRADING STRATEGY: BUY SILVER ABOVE 45500 TGTS 45700/46000 SL 45100 SELL SILVER BELOW 45100 TGTS 44900/44600 SL 45450 GOLD

Silver opened at morning with gap up and made day high. In mid session silver traded in narrow range and made night high 45500. After evening there had been seen more buying pressure in silver and it will helpful to break the nearest resistance 45500,. Gold in international market was also a beaten-down asset to get a reprieve. The metal swung up to $1,229.84 having been as low as $1,183.80 early in the week. Oil prices steadied after taking a fall on Thursday as Libya prepared to restart a major oilfield and on speculation of a sharp rise in crude stockpiles in the United States. The price of oil fell below $98 a barrel Thursday amid reduced trading volumes and the impact of a strengthening dollar. By early afternoon in Europe, benchmark oil for February delivery was down 72 cents to $97.70 on the New York Mercantile Exchange. On Tuesday, the Nymex contract fell 87 cents to close the year at $98.42. Markets were closed Wednesday for New Year's Day.

TRADING STRATEGY: BUY GOLD ABOVE 29000 TGTS 29080/29180 SL 28880 SELL GOLD BELOW 28840 TGTS 28760/28660 SL 28950

YOUR MINTVISORY

Brent crude edged up 32 cents to $108.10 a barrel but that followed a drop of $2.98 on Thursday. U.S. crude was up 20 cents at $95.64, having shed almost $5 the day before.

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DAILY REPORT 03rd JANUARY. 2014

NCDEX

RECOMMENDATIONS CASTORSEED

NCDEX INDICES Index

Value

% Change

Castor Seed

4420

-4.00

Chana

3074

-1.00

Coriander

7848

-3.99

Cotton Seed Oilcake

1486

-0.20

12850

+2.51

Maize– Feed/ Industrial Grade

1197

+0.17

Mustard seed

3571

+0.79

Soy Bean

3792

-0.33

Sugar M Grade

2815

-0.18

Turmeric

6570

-0.64

Jeera

BUY CASTORSEED FEB ABOVE 4605 TGTS 4635,4685 SL 4555 SELL CASTORSEED FEB BELOW 4470 TGTS 4440,4390 SL 4520 DHANIYA

BUY DHNAIYA JAN ABOVE 7950 TGTS 7980,8030 SL 7900 SELL DHANIYA JAN BELOW 7800 TGTS 7770,7720 SL 7850

YOUR MINTVISORY

NCDEX ROUNDUP Sugar output declined 29 per cent in the first three months of the current sugar year (October–September), thanks to a delay in crushing activities in sugar mills across the country. The Indian Sugar Mills Association (ISMA) said total sugar production stood at 5.74 million tonnes (mt) in the first quarter of the current season, as compared to 8.03 mt in the corresponding period last year. Sugar mills have stepped up crushing operations, narrowing down the deficit in the current season’s output. By December 15, the production deficit was reported at 50 per cent. Sugar mills across the country started operations towards the last week of November, more than two weeks late from the normal crushing season due to the rift between the government and the mill owners over cane prices for the current year. Continuing its losing streak for the third straight session, potato prices fell by 0.63% at Rs 969.80 per quintal in futures market yesterday as speculators offloaded their positions due to low demand. At the Multi Commodity Exchange, potato prices for delivery in March lost another Rs 6.10, or 0.63%, to Rs 969.80 per quintal in a business turnover of 54 lots. Likewise, potato for delivery in far-month April traded lower by Rs 5, or 0.52%, to Rs 959.80 per quintal in 11 lots. Call us at +91-731-6642300


DAILY REPORT 03rd JANUARY. 2014

CURRENCY

RBI Reference Rate Currency

Rate Currency

Rupee- $

61.9020 Yen-100

Euro

85.1556 GBP

EUR/INR

Rate

58.7900 102.7418

CURRENCY ROUNDUP The Indian Rupee depreciated around 0.2 percent in yesterday’s trading session. The currency depreciated on the back of month end dollar demand from oil firms and importers. Further, weak domestic market sentiments exerted downside pressure on the currency. Also, less volatility was observed as majority markets were closed on the eve of New Year holiday. However, sharp downside in the currency was cushioned due to selling of dollars from exporters and state run banks coupled with constant inflow of foreign funds. The currency touched an intra-day low of 61.985 and closed at 61.90 on Wednesday.

BUY EUR/INR ABOVE 85.83 TGTS 85.98, 86.11 SL 85.43. SELL EUR/INR BELOW 85.35 TGTS 85.18, 85.02 SL 75.

The euro took a spill as speculators booked profits on long positions after a strong 2013. The single currency was stuck at $1.3657 after shedding a full cent overnight. The same forces gripped sterling, another strong performer in recent months. The pound peeled away to $1.6441 from a 28month peak of $1.6605.

JPY/INR That in turn lifted the U.S. dollar index, a gauge of the greenback's value against six major currencies, by the most in five months. The index was at 80.595 compared to a trough of 80.083 the day before. The yen enjoyed a short-covering bounce. Borrowing in yen to buy higher yielding assets has been a vastly popular trade, leaving the market vulnerable to sudden, if usually brief, reversals. In this case the dollar came off to 104.65 yen after being as high as 105.44, its strongest level since October 2008. Likewise, the euro retreated to 143.00 yen from a peak of 145.12 on Thursday.

BUY JPY/INR ABOVE 59.60 TGTS 59.74, 59.93 SL 59.25. SELL JPY/INR BELOW 58.94 TGTS 58.81, 58.64 SL 59.29.

YOUR MINTVISORY

The short-covering theme extended to U.S. Treasury debt, which has been under pressure for pretty much all of the past two months. Yields on the 10-year note dipped to 2.99 % from a top of 3.04 %, which had been the highest sine mid-2011.

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DAILY REPORT 03rd JANUARY. 2014

CALL REPORT PERFORMANCE UPDATES

Date

Commodity/ Currency Pairs

Contract

Strategy

Entry Level

Target

Stop Loss

Remark

02/01/14

MCX GOLD

FEB.

BUY

28490

28570-28670

28380

BOOKED FULL PROFIT

02/01/14

MCX GOLD

FEB.

SELL

28380

28300-28200

28480

NOT EXECUTED

02/01/14

MCX SILVER

MAR.

BUY

44250

44450-44750

43880

BOOKED PROFIT

02/01/14

MCX SILVER

MAR.

SELL

43700

43500-43200

44100

NOT EXECUTED

02/01/14

NCDEX CASTOR SEED

FEB.

SELL

4625

4595-4545

4675

BOOKED FULL PROFIT

02/01/14

NCDEX CASTOR SEED

FEB.

BUY

4725

4755-4605

4675

NOT EXECUTED

02/01/14

NCDEX DHANIYA

JAN.

BUY

8240

8270-8320

8190

SL TRIGGERED

02/01/14

NCDEX DHANIYA

JAN.

SELL

8130

8100-8050

8180

BOOKED PROFIT

02/01/14

GBP/INR

JAN.

SELL

102.65

102.50-102.30

103.05

NOT EXECUTED

02/01/14

GBP/INR

JAN.

BUY

103.20

103.36-103.55

102.75

BOOKED FULL PROFIT

02/01/14

EUR/INR

JAN.

SELL

85.34

85.19-85.02

85.74

NOT EXECUTED

02/01/14

EURINR

JAN.

BUY

85.78

85.92-86.11

85.38

NO PROFIT NO LOSS

Date

Scrip

CASH/ FUTURE/ OPTION

Strategy

Entry Level

Target

Stop Loss

Remark

02/01/14

NIFTY

FUTURE

BUY

6340-6350

6375-6390

6310

BOOKED FULL PROFIT

02/01/14

IRB

FUTURE

BUY

96.50-97.50

99-102

94.50

BOOKED FULL PROFIT

02/01/14

RCOM

FUTURE

BUY ON DIPS

137-139

142-145

135

SL TRIGGERED

02/01/14

UBHOLDINGS

CASH

BUY

38

42-46

34

NOT EXECUTED

01/01/14

NIFTY

FUTURE

BUY

6340-6350

6375-6390

6310

BOOKED FULL PROFIT

31/12/13

NIFTY

FUTURE

SELL

6370-6390

6320-6280

6420

BOOKED FULL PROFIT

31/12/13

BHEL

FUTURE

BUY

168-170

175-180

165

SL TRIGGEERD

30/12/13

KOTLE PATIL

CASH

BUY

95

100-105

90

SL TRIGGERED

27/12/13

TATA STEEL

FUTURE

BUY

428

434-438

422

CALL OPEN

23/12/13

RELIANCE

FUTURE

BUY

895-900

915-935

878

SL TRIGGEERD

YOUR MINTVISORY

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DAILY REPORT 03rd JANUARY. 2014

ECONOMIC CALENDAR

NEXT WEEK'S U.S. ECONOMIC REPORTS TIME (ET)

REPORT

PERIOD

ACTUAL

CONSENSUS FORECAST

PREVIOUS

--

-0.6%

MONDAY, DEC. 30 10 am

Pending home sales

Nov. TUESDAY, DEC. 31

9 am 9:45 am 10 am

Case-Shiller home prices

Oct.

--

13.3% y-o-y

Chicago PMI

Dec.

61.8

63.0

Consumer confidence

Dec.

75.0

70.4

12/28

N/A

338,000

WEDNESDAY, JAN. 01 New Year's Day None scheduled THURSDAY, JAN. 02 8:30 am

Weekly jobless claims

9 am

Market PMI

Dec.

--

54.4

10 am

ISM

Dec.

56.9%

57.3%

10 am

Construction spending

Nov.

0.9%

0.8%

16.0 mln

16.3 mln

FRIDAY, JAN. 03 TBA

Motor vehicle sales

Dec. Disclaimer

The information and views in this report, our website & all the service we provide are believed to be reliable, but we do not accept any responsibility (or liability) for errors of fact or opinion. Users have the right to choose the product/s that suits them the most. Sincere efforts have been made to present the right investment perspective. The information contained herein is based on analysis and up on sources that we consider reliable. This material is for personal information and based upon it & takes no responsibility. The information given herein should be treated as only factor, while making investment decision. The report does not provide individually tailor-made investment advice. Epic research recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial adviser. Epic research shall not be responsible for any transaction conducted based on the information given in this report, which is in violation of rules and regulations of NSE and BSE. The share price projections shown are not necessarily indicative of future price performance. The information herein, together with all estimates and forecasts, can change without notice. Analyst or any person related to epic research might be holding positions in the stocks recommended. It is understood that anyone who is browsing through the site has done so at his free will and does not read any views expressed as a recommendation for which either the site or its owners or anyone can be held responsible for . Any surfing and reading of the information is the acceptance of this disclaimer. All Rights Reserved. Investment in equity & bullion market has its own risks. We, however, do not vouch for the accuracy or the completeness thereof. We are not responsible for any loss incurred whatsoever for any financial profits or loss which may arise from the recommendations above epic research does not purport to be an invitation or an offer to buy or sell any financial instrument. Our Clients (Paid or Unpaid), any third party or anyone else have no rights to forward or share our calls or SMS or Report or Any Information Provided by us to/with anyone which is received directly or indirectly by them. If found so then Serious Legal Actions can be taken.

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