Special report by epic research 7 january 2014

Page 1

DAILY REPORT 07th JANUARY. 2014

Global markets at a glance Japan's Nikkei share average dropped on Tuesday morning after economic data showing a slowdown in growth in the U.S. services sector made investors wary of taking on risk. The Nikkei fell 0.6 percent to 15,807.86 in choppy midmorning trade. After opening lower, it briefly flirted with positive territory. On Monday, the index ended 2.4 percent lower. The broader FTSEurofirst 300 index of pan-European shares fell 0.2% to 1,309.24 points, with the euro zone's Euro STOXX 50 also down 0.2 percent at 3,069.16 points. Trading volume on the FTSEurofirst 300 was 25 percent lower than the index's average for the past three months.

World Indices

Wall Street Update U.S. stocks slipped on Monday after a mixed batch of economic reports, resulting in the Standard & Poor's 500 .SPX losing in the first three trading sessions of 2014 after ramping up 30 percent last year. Data from the Institute for Supply Management showed the pace of growth in the U.S. services sector slowed for a second straight month in December with business activity expanding at a slower rate and new orders contracting. The U.S. Senate confirmed Janet Yellen, a key force behind the Fed's unprecedented and controversial efforts to boost the U.S. economy, as the next Fed chair to succeed Ben Bernanke, whose second four-year term expires on January 31. Previous day Roundup After a lot of struggle, the market ended the day on a negative down. The Sensex ended down 64.03 points at 20787.30 and the Nifty closed at 6191.45, down 19.70 points. About 1465 shares have advanced, 1019 shares declined, and 531 shares are unchanged. Index stats Bankex and Bank Nifty both declined 143.73pts and 132.60pts respectively. Among the sartorial indices the sectors which were down are; PSU [down 6.72pts], Realty [down 10.18pts], TECK [down 17.60pts], IT [down 45.44pts}, Power [down 6.67pts], and the index advanced were Consumer Durables [up 1.75pts], Healthcare [up 48.22pts], Capital Goods [up 13.62pts], AUTO [up 24.04pts], FMCG [up 28.73pts], Oil & Gas [up 17.64pts], Metals [up 1.53pts].

Index

Value

% Change

16,425.10

-0.27

S&P 500

1,826.77

-0.25

NASDAQ EURO STO FTSE 100

4,113.68 3,069.16 6,730.73

-0.44 -0.17 0.00

Nikkei 225 Hong Kong

15,852.67 22,694.42

-0.35 +0.05

DJl

Top Gainers Company

CMP

Change

% Chg

ONGC

281.05

5.25

+1.90

JINDALSTEL

260.00

4.35

+1.70

SUNPHARMA

588.30

8.60

+1.48

TATAMOTORS

367.25

4.55

+1.25

LUPIN

940.00

7.10

+0.76

CMP

Change

% Chg

81.75 1,043.00 636.00 1,685.00 2,068.00

2.30 23.80 13.85 34.65 33.05

-2.74 -2.23 -2.13 -2.01 -1.57

Prev. Close

Change

%Chg

ARVIND

153.55

8.95

+6.19

BIOCON

480.00

3.60

-0.74

DELTOCORP

123.90

5.95

+5.00

GMBREW

111.15

4.00

+3.73

HAVELLS

827.10

12.05

+1.48

Prev. Close

Change

%Chg

CMP

Change

% Chg

6,191.45 20,787.30

-19.70 -64.03

-0.32 -0.31

Top Losers Company

TATAPOWER ICICIBANK BANKBARODA SBIN HEROMOTOCO

Stocks at 52 Week’s high Symbol

Stocks at 52 Week’s Low Symbol

--

Indian Indices Company NIFTY SENSEX

YOUR MINTVISORY

Call us at +91-731-6642300


DAILY REPORT 07th JANUARY. 2014

EQUITY CASH & FUTURE

STOCK RECOMMENDATIONS [FUTURE] 1. CESC

STOCK RECOMMENDATION [CASH] 1. MASTEK

CESC FUTURE is looking strong on charts, long build up has been seen, we may see more upside, if it trades above 475. We advise buying above 475 levels with strict stop loss 468 for the targets of 482-489 levels.

MASTEK is looking strong on charts. We advise buying around 180-182 levels with strict stop loss of 175 for the targets of 187-192 levels.

2. VOLTAS

MACRO NEWS  IOC divestment is likely to be carried out on January 9. LIC, is going to be a large strategic investor in the OFS.  PSU bank employees to go on two-day strike from January 20: UFBU.  SC refuses to entertain Steel Ministry's plea on mining cap.  Govt. will offer at least 56 oil and gas blocks in its next round of auction of exploration blocks that will be launched next week. The oil ministry has recommended revenue sharing between the companies and the govt. in place of the current production sharing mechanism.  The delinquency rate of micro-finance institutions (MFIs) has declined by 20% between Apr- Oct. 2013.  LPG distributors across India have decided to supply cylinders only to domestic consumers from Jan 15 and will proceed on indefinite strike from Jan 19 if there demands are not met.  The net direct tax collections, after refunds, were up 12.53 per cent to Rs 4.15 lakh crore in April-December 2013-14.

VOLTAS FUTURE is looking strong on charts, long build up has been seen, we may see more upside, if it sustains above 122 levels. We advise buying around 122 levels with strict stop loss 120 for the targets of 124-126 levels.

YOUR MINTVISORY

Call us at +91-731-6642300


DAILY REPORT FUTURE & OPTION

07th JANUARY. 2014

STOCKS IN NEWS  UCO Bank is planning to sell bad loans worth Rs 1,900cr to clean its balance sheet. The bank has already sold NPAs worth Rs 300cr in the last quarter.  Maruti Suzuki will introduce a revolutionary technology allowing manual gears to be used like automatic transmission without engaging the clutch.  Blackstone ups stake in MCX, buys shares worth Rs 81 cr.  Group Ministers on MTNL,BSNL revival to meet on Jan 8. NIFTY FUTURE

MOST ACTIVE PUT OPTION Symbol

Option Strike Type Price

LTP

Traded Volume (Contracts)

Open Interest

NIFTY

PE

6,200

85.40

2,49,831

43,42,400

NIFTY

PE

6,100

51.05

1,62,124

39,73,150

NIFTY

PE

6,000

29.30

1,21,254

40,47,550

BANK NIFTY

PE

11,000 235.15

12,542

1,71,400

SBIN

PE

1,700

58.65

3,570

3,48,875

INFY

PE

3,300

58.50

3,216

2,49,750

TCS

PE

2,200

38.00

1,414

1,90,625

MCDOWELL-N

PE

2,600

43.00

1,292

1,90,625

LTP

Traded Volume (Contracts)

Open Interest

MOST ACTIVE CALL OPTION Symbol

Option Strike Type Price

NIFTY

CE

6,300

62.25

2,20,054

49,21,950

NIFTY

CE

6,400

31.70

1,54,153

39,36,000

NIFTY

CE

6,500

15.05

1,27,416

48,91,350

BANKNIFTY

CE

11,500 140.70

18,998

2,14,900

SBIN

CE

1,800

17.40

5,679

8,16,500

RELIANCE

CE

880

14.35

2,540

4,48,500

INFY

CE

3,600 112.50

3,171

3,63,500

SBIN

CE

1,750

29.40

5,095

3,48,625

MCDOWELL-N

CE

2,800

70.55

2,189

1,24,750

Nifty Future closed in the red in the last trading session. We advise selling below 6200 with strict stop loss of 6250 for the targets of 6150-6110 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

37826

1160.83

50670

1557.04

419995

12946.36

-396.21

INDEX OPTIONS

264931

8074.81

247841

7606.93

1113953

34369.68

467.89

STOCK FUTURES

51898

1669.56

48972

1613.18

993137

31554.31

56.38

STOCK OPTIONS

36291

1166.62

38201

1221.87

51426

1657.50

-55.25

TOTAL

72.81

INDICES NIFTY

S2

S1

PIVOT

R1

R2

6141.01

6166.23

6195.46

6220.68

6249.91

NIFTYJUNIOR

12692.71

12748.58

12788.71

12844.58

12884.71

BANK NIFTY

10896.05

10972.55

11073.45

11149.95

11250.85

YOUR MINTVISORY

Call us at +91-731-6642300


DAILY REPORT 07th JANUARY. 2014

COMMODITY MCX

RECOMMENDATIONS SILVER

COMMODITY ROUNDUP The SILVER rate touched an intraday high of Rs 45740 and an intraday low of Rs 45033. 25680 contracts had been traded. Silver opened at morning with gap down and made day high. In mid session silver traded in narrow range and made night low 45033. After evening there had been seen more buying in silver and it will helpful to break the nearest resistance 45450. The GOLD rate touched an intraday high of Rs 29276 and an intraday low of Rs 28890. 18661 contracts had been traded. Gold price was taking support at 29000 and traded in sideways big range all day. In evening session gold price broke the nearest resistance of 29150 and made high of 29276.

TRADING STRATEGY: BUY SILVER ABOVE 45550 TGTS 45750/46050 SL 45150 SELL SILVER BELOW 45250 TGTS 45050/44750 SL 45600 GOLD

U.S. crude futures added 0.3 percent to $93.70 a barrel after having fallen 0.6 percent overnight to a one-month low. Gold was steady at $1,238.05 an ounce, taking a breather after five straight days of gains and sitting not far from a three-week high of $1,248.30 set on Monday. According to Steel Index the FoB price of premium Australian hard coking coal, recently at $136.30 a tonne, is the lowest since August. Benchmark coking coal traded at $330 a tonne in mid-2011. Tracking a firming trend in base metals overseas and rising spot demand, lead futures were up by 0.51% at Rs 136.70 per kg as participants enlarged positions. At the MCX February lead traded 70 paise, or 0.51%, higher at Rs 136.70 per kg, with a turnover of eight lots. The January delivery also rose by 60 paise, or 0.44%, to trade at Rs 135.55 per kg, in a business turnover of 309 lots. Besides increased domestic demand from battery-makers, a firm trend at the LME influenced lead prices at futures trade here.

TRADING STRATEGY: BUY GOLD ABOVE 29260 TGTS 29340/29440 SL 29150 SELL GOLD BELOW 29000 TGTS 28920/28820 SL 29101 YOUR MINTVISORY

Buoyed by a firming trend in global markets as inventories continued to slide, copper futures prices rose by 0.26% to Rs 466.75 per kg yesterday as speculators enlarged positions. At the MCX copper for delivery in February was up by Rs 1.20, or 0.26%, to Rs 466.75 per kg, with a business turnover of 683 lots. Similarly, the April delivery traded higher by 90 paise, or 0.19%, to Rs 471.35 per kg, with a business turnover of 99 lots. Call us at +91-731-6642300


DAILY REPORT 07th JANUARY. 2014

NCDEX

RECOMMENDATIONS CASTORSEED

NCDEX INDICES Index

Value

% Change

Castor Seed

4484

+0.83

Chana

3046

-0.52

Coriander

8060

-0.02

Cotton Seed Oilcake

1537

+1.92

12550

-1.30

Maize– Feed/ Industrial Grade

1210

+1.26

Mustard seed

3632

+0.94

Soy Bean

2792

-0.47

Sugar M Grade

2792

-0.18

Turmeric

6852

-0.09

Jeera

BUY CASTORSEED FEB ABOVE 4610 TGTS 4640,4690 SL 4560 SELL CASTORSEED FEB BELOW 4485 TGTS 4455,4405 SL 4535 DHANIYA

NCDEX ROUNDUP Government's rice procurement is lagging behind by 8 per cent over last year at 16.36 million tonne so far in the 201314 marketing year due to lower production estimate and relatively strong open market prices. Food Corporation of India, government's nodal procurement agency, had procured 17.78 million tonne rice in the same period of 201213 marketing year (October-September). Soybean prices declined almost Rs 100-150 per 100 kg in spot markets in a fortnight due to weak demand from crushers, said mandi traders. On Monday, soybean prices in mandi auction were Rs 3,550-3,750 per 100 kg compared with Rs 3,600-3,900 per 100 kg a fortnight ago. Plant delivery prices were Rs 3,825-3,860 per 100 kg against Rs 3,8503,900 per 100 kg couple of weeks ago.

BUY DHANIYA JAN ABOVE 8080 TGTS 8110,8160 SL 8030 SELL DHANIYA JAN BELOW 7910 TGTS 7880,7830 SL 7960

YOUR MINTVISORY

Vegetable (veg) oil import in India is likely to surpass all previous records to settle at 11.13 million tonnes this year on rising demand from middle class consumers following sustained pressure on prices.

Call us at +91-731-6642300


DAILY REPORT 07th JANUARY. 2014

CURRENCY

RBI Reference Rate Currency

Rate Currency

Rupee- $

62.3265 Yen-100

Euro

84.6151 GBP

JPY/INR

SELL JPY/INR BELOW 59.74 TGTS 59.60, 59.45 SL 60.10. BUY JPY/INR ABOVE 60.36 TGTS 60.51, 60.73 SL 60.00. GBP/INR

Rate

59.7300 101.9911

CURRENCY ROUNDUP Indian rupee declined in opening trade on Monday against the US dollar. Rupee opened lower by 17 paise or 0.27% against US dollar at Rs 62.33 compared to previous close of 62.16. On Friday, rupee settled up 10 paise or 0.16% against US dollar at Rs 62.16, then went down against US dollar in noon trade. Rupee was down by 12 paise or 0.19% against US dollar to Rs 62.28 (12.26 p.m.) compared to previous close of 62.16. It touched high and low of 62.26 and 62.46 respectively after opening at Rs 62.33 against US dollar. The greenback traded lower against most major currencies on Monday after U.S. service-sector data missed consensus forecasts and rekindled expectations for the Federal Reserve to take its time winding down its dollar-weakening USD75 billion monthly asset-purchasing program. In U.S. trading on Monday, EUR/USD was up 0.32% at 1.3633. The dollar slumped after the Institute of Supply Management said its non-manufacturing purchasing managers' index fell to 53.0 in December from 53.9 in November. Analysts were expecting the index to increase to 54.5. The data rekindled concerns that the Federal Reserve may go slower than once expected when it comes to dismantling its USD75 billion in monthly bond purchases. The dollar was down against the yen, with USD/JPY down 0.52% at 104.30, and down against the Swiss franc, with USD/CHF down 0.12% at 0.9042. The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD up 0.14% at 1.0651, AUD/USD up 0.17% at 0.8964 and NZD/USD trading up 0.20% at 0.8288. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.26% at 80.81.

SELL GBP/INR BELOW 102.30 TGTS 102.12, 101.90 SL 102.70. BUY GBP/INR ABOVE 102.73 TGTS 102.94, 103.15 SL 102.33.

YOUR MINTVISORY

The euro was steady at $1.3622, taking a pause after coming off a four-week low of $1.35715 set on Monday. The greenback was up 0.2 percent at 104.47 yen, recouping some of Monday's 0.6 percent decline after the soft U.S. services data. Against a basket of major currencies, the dollar added 0.1 percent.

Call us at +91-731-6642300


DAILY REPORT 07th JANUARY. 2014

CALL REPORT PERFORMANCE UPDATES

Date

Commodity/ Currency Pairs

Contract

Strategy

Entry Level

Target

Stop Loss

Remark

06/01/14

MCX GOLD

FEB.

BUY

29250

29330-29450

29150

SL TRIGGERED

06/01/14

MCX GOLD

FEB.

SELL

29000

28920-28820

29101

BOOKED PROFIT

06/01/14

MCX SILVER

MAR.

BUY

45850

46050-46350

45500

NOT EXECUTED

06/01/14

MCX SILVER

MAR.

SELL

45250

45050-44750

45600

BOOKED PROFIT

06/01/14

NCDEX CASTOR SEED

FEB.

SELL

4480

4450-4400

4530

NOT EXECUTED

06/01/14

NCDEX CASTOR SEED

FEB.

BUY

4600

4630-4680

4550

NOT EXECUTED

06/01/14

NCDEX DHANIYA

JAN.

SELL

7800

7770-7720

7850

NOT EXECUTED

06/01/14

NCDEX DHANIYA

JAN.

BUY

8000

8030-8080

7950

BOOKED FULL PROFIT

06/01/14

GBP/INR

JAN.

SELL

102.85

102.70-102.54

103.25

NOT EXECUTED

06/01/14

GBP/INR

JAN.

BUY

103.54

103.69-103.87

103.14

NOT EXECUTED

06/01/14

EUR/INR

JAN.

SELL

85.24

85.09-84.91

85.64

BOOKED PROFIT

06/01/14

EURINR

JAN.

BUY

85.87

86.02-86.19

85.47

NOT EXECUTED

Date

Scrip

CASH/ FUTURE/ OPTION

Strategy

Entry Level

Target

Stop Loss

Remark

06/01/14

NIFTY

FUTURE

BUY

6230-6250

6280-6300

6200

CALL OPEN

06/01/14

BIOCON

FUTURE

BUY

490

495-499

485

SL TRIGGERED

06/01/14

TATA POWER

FUTURE

SELL

85

83-81

87

BOOKED PROFIT

06/01/14

FINANCIAL TECH

CASH

BUY

236

245-255

225

BOOKED FULL PROFIT

03/01/14

NIFTY

FUTURE

SELL

6240

6220-6190

6265

BOOKED PROFIT

YOUR MINTVISORY

Call us at +91-731-6642300


DAILY REPORT 07th JANUARY. 2014

ECONOMIC CALENDAR

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

REPORT

PERIOD

ACTUAL

CONSENSUS FORECAST

PREVIOUS

MONDAY, JAN . 06 10 am

ISM nonmanufacturing

Dec.

54.6%

53.9%

10 am

Factory orders

Nov.

1.6%

-0.9%

-$39.9 bln

-$40.6 bln

230,000

215,000

--

$18.2 bln

N/A

339,000

TUESDAY, JAN. 07 8:30 am

Trade deficit

Nov. WEDNESDAY, JAN. 08

8:15 am

ADP employment

Dec.

2 pm

FOMC minutes

12/18

3 pm

Consumer credit

Nov. THURSDAY, JAN. 08

8:30 am

Weekly jobless claims

1/4 FRIDAY, JAN. 09

8:30 am

Nonfarm payrolls

Dec.

190,000

203,000

8:30 am

Unemployment rate

Dec.

7.0%

7.0%

10 am

Wholesale inventories

Nov.

--

1.4%

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