Special report by epic research 8 january 2014

Page 1

DAILY REPORT 08th JANUARY. 2014

Global markets at a glance European stocks rallied on Tuesday to hit 5 1/2-year highs as investors betting on economic recovery in southern Europe scooped up shares from the region. The FTSEurofirst 300 index of top European shares ended 0.8% higher, at 1,319.74. The euro zone's blue-chip Euro STOXX 50 index gained 1.4% Japan's Nikkei share average rose to recoup some of the losses posted earlier in the week after strong trade data in the U.S. boosted risk appetite, and convenience store operators soared on strong earnings. The Nikkei rose 0.8 % to 15,945.36 in mid-morning trade after dropping 0.6 % on the previous day. On Monday, the index shed 2.4 %. Wall Street Update US stocks ended higher on Tuesday, snapping the S&P 500's three-day losing streak to give the index its first positive session of 2014. A sharp decline in US trade deficit and upbeat German data helped improve market sentiment as the data pointed to strengthening economic fundamentals in both US and Europe. The DJI average rose 105.84 pts or 0.64%, to end at 16,530.94. The S&P 500 gained 11.11 pts or 0.61%, to finish at 1,837.88. The Nasdaq Composite added 39.501 pts or 0.96%, to close at 4,153.182.

World Indices Index

Value

% Change

16,530.94

+0.64

S&P 500

1,837.88

+0.61

NASDAQ EURO STO FTSE 100

4,153.18 3,110.96 6,755.45

+0.96 +1.36 +0.37

Nikkei 225 Hong Kong

15,978.34 22,887.79

+1.04 +0.77

DJl

Top Gainers Company

CMP

Change

% Chg

MARUTI

1849

41.30

+2.28

INDUSINDBK

419.90

6.60

+1.60

M&M

906.95

11.55

+1.29

SUNPHARMA

594.20

5.95

+1.01

1050.60

9.80

+0.94

CMP

Change

% Chg

393

15.30

-3.75

616.10

21.15

-3.32

TATAPOWER 79.70 SSLT 193.95 BPCL at 52 Week’s high 322.40 Stocks

2.15 5.00 7.40

-2.63 -2.51 -2.24

Prev. Close

Change

%Chg

ARVIND

152.80

0.65

0.43

AUROPHARMA

411.20

-6.40

-1.55

BIOCON

480.80

-5.80

-1.21

CEATLTD

369.70

-3.30

-0.89

LT FOOD

87.90

1.10

1.25

Prev. Close

Change

%Chg

9.40

-1

-10.64

CMP

Change

% Chg

6162.25 20693.24

-29.20 94.06

-0.47 -0.45

ICICIBANK

Top Losers Company

TATASTEEL Previous day Roundup The 30-share Sensex, after opening on a better note, rose to touch a high of 20,890.48 pnts. However, emergence of profit-taking shaved off gains and the index closed at 20,693.24 pts, logging a fall of 94.06 pts, or 0.45%. This is its lowest closing since 20,612.14 on Dec 17, 2013.On similar lines, NSE index Nifty also moved down by 29.20 pts, or 0.47%, to 6,162.25, after touching the day's high of 6,221.50. The SX40 index, the flagship index of MCX-SX, closed 52.78 pts down at 12,338.18. Index stats The Market was very volatile in yesterday session where Bankex and Bank Nifty both closed almost flat (down 0.18% and down 0.11% respectively). Among the sartorial indices almost all the sectors were down; IT [down 118.08pts], PSU [down 70.01pts], FMCG [down 4.69pts] Realty [down 23.61pts], TECK [down 52.84pts], Oil & Gas [down 116.50pts], Metals [down 162.88pts], Power [down 21.25pts] and the index advanced were Consumer Durables [up 12.24pts], Healthcare [up 12.47pts], Capital Goods [up 48.37pts], AUTO [up 11.05pts].

BANKBAROODA

Symbol

Stocks at 52 Week’s Low Symbol

WINSOME

Indian Indices Company NIFTY SENSEX

YOUR MINTVISORY

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DAILY REPORT 08th JANUARY. 2014

EQUITY CASH & FUTURE

STOCK RECOMMENDATIONS [FUTURE] 1. TATASTEEL

STOCK RECOMMENDATION [CASH] 1. EVERONN EDUCATION

TATA STEEL FUTURE is looking weak on charts, short build up has been seen, we may see more downside, if it continues to trade below 400 levels. We advise selling around 395 -400 levels with strict stop loss 408 for the targets of 388382 levels.

EVERONN EDUCATION is looking strong on charts. We advice buying above 47 levels with strict stop loss of 42 for the targets of 52-59 levels.

2. MARUTI

MARUTI FUTURE is looking strong on charts, long build up has been seen, we may see more upside, if it sustains above 1850 levels. We advise buying around 1850-1860 levels with strict stop loss 1830 for the targets of 18801900 levels. YOUR MINTVISORY

MACRO NEWS  First National Wind Energy Mission to begin by mid2014.  Govt to push discoms to purchase hydropower.  EGoM to consider Indian Oil disinvestment on January 9  Stemcor extends time for Indian assets sale by about a month  Non-farm jobs to slump by 25 per cent in FY13-19 period: Crisil  Government may discuss Rs 12,800 crore refund to BSNL, MTNL on January 9.  SpiceJet orders around 40 Boeing 737 MAX jets worth over $4 billion.  Government likely to lift curb on gold imports  Road to recovery gets bumpier for infrastructure companies going through CDR process.  Crisil estimates non-farm employment will decrease more than 25% to 38 million in FY 2013-19 compared with 52 million seen in FY 2005-12.

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DAILY REPORT FUTURE & OPTION

08th JANUARY. 2014

STOCKS IN NEWS  Meeting on January 9 to discuss IOC divestment.  FM meets Power Grid , IOC , NTPC, SAIL, BHEL to discuss dividend payouts.  NMDC production rises 37% in Q3 FY14; despatches up 40%  Tata Steel fined over accident in UK plant.  NTPC signs initial pact for Chhattisgarh geothermal project.  L&T Electrical and Automation aims at Rs 5,000 crore revenue this year. NIFTY FUTURE

MOST ACTIVE PUT OPTION Symbol

Option Type

Strike Price

LTP

Traded Volume (Contracts)

Open Interest

NIFTY

PE

6,200

95.80

3,04,285

40,87,850

NIFTY

PE

6,100

57.25

2,64,632

41,40,700

NIFTY

PE

6,000

33.25

1,93,011

48,30,650

BANK NIFTY

PE

11,000 238.00

22,477

1,96,975

SBIN

PE

1,650

46.80

4,482

1,74,750

INFY

PE

3,300

71.50

2,935

3,53,250

RELIANCE

PE

840

17.95

1,930

3,05,500

TATASTEEL

PE

400

13.60

1,667

6,18,000

MOST ACTIVE CALL OPTION Symbol

Option Type

Strike Price

LTP

Traded Volume (Contracts)

Open Interest

NIFTY

CE

6,300

48.15

2,97,246

52,65,800

NIFTY

CE

6,200

91.00

2,26,182

28,94,250

NIFTY

CE

6,400

22.65

2,06,067

39,19,800

BANKNIFTY

CE

11,500

131.20

33,977

2,25,675

SBIN

CE

1,700

36.50

6,929

3,75,125

RELIANCE

CE

860

16.95

3,754

6,12,250

MCDOWELL -N

CE

2,800

61.60

2,564

1,51,000

SBIN

CE

1,800

12.70

6,306

8,73,125

TATASTEEL

CE

420

4.00

2,002

9,65,000

Nifty Future closed in the red in the last trading session. We advise selling below 6170 with strict stop loss of 6200 for the targets of 6140-6120 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

44453

1354.30

87789

2683.75

446811

13713.54

-1329.44

INDEX OPTIONS

348186

10606.24

345498

10572.38

1113649

34195.37

33.87

STOCK FUTURES

61129

1983.22

56474

1848.81

1002952

31629.34

134.41

STOCK OPTIONS

42609

1315.08

41818

1268.45

60063

1973.56

46.64

TOTAL

-1114.52

INDICES NIFTY

S2

S1

PIVOT

R1

R2

6099.41

6130.83

6176.16

6207.58

6252.91

NIFTYJUNIOR

12521.53

12598.21

12731.88

12808.56

12942.23

BANK NIFTY

10765.71

10901.23

11027.66

11163.18

11289.61

YOUR MINTVISORY

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DAILY REPORT 08th JANUARY. 2014

COMMODITY MCX

RECOMMENDATIONS SILVER

COMMODITY ROUNDUP India's iron ore production is set to see a moderate growth of 10-12 per cent to 150 million tonnes (mt) in FY15, following a small decline in FY14. The growth is likely to come from Karnataka and Goa but the production cap in Odisha will restrict it.

The GOLD rate touched an intraday high of Rs 29060 and an intraday low of Rs 28002. So far 16380 contracts have been traded. Gold Price was taking support at 28800 traded in sideways big range all day. In evening session gold price have broke the nearest support 28900 and made low of 28002 The SILVER rate touched an intraday high of Rs 45575 and an intraday low of Rs 44350. So far 25680 contracts have been traded. Silver opened at morning with gap up and made day high. In mid session silver traded in narrow range and made night low 44350 . After evening there had been seen more selling in silver and it will helpful to break the nearest support 44300. TRADING STRATEGY: BUY SILVER ABOVE 44700 TGTS 44900/45200 SL 44340 SELL SILVER BELOW 44280 TGTS 44080/43780 SL 44630 GOLD

TRADING STRATEGY: BUY GOLD ABOVE 29020 TGTS 29100/29200 SL 28900 SELL GOLD BELOW 28790 TGTS 28710/28610 SL 28900

YOUR MINTVISORY

Officials are in discussions to cut a record high import duty on gold and relax rules on exports . India imposed the curbs last year when overseas gold purchases - the country's second most expensive import after oil - pushed its current account deficit to a record and undermined the rupee currency. With three duty hikes last year to a record 10% and onerous restrictions tying purchases to exports, official arrivals shrank almost 90 percent in the six months to November, helping China displace India as the world's top gold buyer. The decision to cut the import duty is likely to be taken anytime this month. MCX Copper is trading in a weak mode even as LME Copper showed signs of recovery on Tuesday trades. In an important data that was keenly watched by the traders, LME inventories again showed a decline on Tuesday. The data of LME warehouse showed a decline of 3050 tonnes in Copper. The total inventories have come down to 353075 tonnes. A constant decline has been noted that has helped to shift Copper to backwardation. The futures prices of Copper were at $ 7323 per tonne, against $ 7343 per tonne. Indian Copper was trading at Rs 466.2 per kg, down 0.18%. The prices are expected to decline further to Rs 462 per kg. The prices are resisted at Rs 469 per kg on the higher side.

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DAILY REPORT 08th JANUARY. 2014

NCDEX

RECOMMENDATIONS CASTORSEED

NCDEX INDICES Index

Value

% Change

Castor Seed

4326

-3.35

Chana

2983

-1.94

Coriander

7989

-0.45

Cotton Seed Oilcake

1532

+0.16

12525

+0.66

1215

-0.55

3693.5

-1.18

Soy Bean

2806

+0.61

Turmeric

6860

+0.32

Jeera Maize– Feed/ Industrial Grade Mustard seed

BUY CASTORSEED FEB ABOVE 4405 TGTS 4435,4485 SL 4355 SELL CASTORSEED FEB BELOW 4350 TGTS 4320,4270 SL 4400 DHANIYA

NCDEX ROUNDUP The government's new series of tenders for wheat exports opening from Wednesday may evoke a tepid response from private traders amid weak global demand. Akin to major wheat suppliers, India is sitting on huge stockpiles of wheat and trading companies expect prices to soften to $270-280 a tonne free on board (FOB). But extreme cold conditions in the United States are said to be damaging the wheat crop. On Tuesday morning, Chicago Board of Trade ( CBOT) March wheat climbed 0.3% to $6.07 a bushel. This could reflect in an uptick in global prices in the coming weeks.

Edible oil imports could break a record to touch 11 million tonnes (mt) this year, on rising demand from middle class following sustained pressure on prices.

BUY DHANIYA JAN BELOW 8000 TGTS 8030,8080 SL 7950 SELL DHANIYA JAN BELOW 7820 TGTS 7790,7740 SL7870

YOUR MINTVISORY

Soyameal exports fell 8% to 4.71 lakh tonnes in December 2013 due to lower arrivals, according to the industry data. Shipments of soyameal stood at 5.11 lakh tonnes (LT) in the same month a year ago

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DAILY REPORT 08th JANUARY. 2014

CURRENCY

RBI Reference Rate Currency

Rate Currency

Rupee- $

62.3790 Yen-100

Euro

84.9720 GBP

JPY/INR

SELL JPY/INR BELOW 59.78 TGTS 59.63, 59.45 SL 60.13. BUY JPY/INR ABOVE 60.19 TGTS 60.34, 60.49 SL 59.84. USD/INR

SELL USD/INR BELOW 62.46 TGTS 62.31, 62.16 SL 62.81. BUY USD/INR ABOVE 62.80 TGTS 62.95, 63.10 SL 62.45.

YOUR MINTVISORY

Rate

59.7100 102.2454

CURRENCY ROUNDUP The dollar rose to session highs against the euro and the yen on Tuesday after data showed that the U.S. trade deficit shrank to the lowest level in four years in November. EUR/USD fell to session lows of 1.3572 and was last down 0.21% to 1.3598. The greenback was boosted after the Commerce Department said the U.S. trade deficit narrowed to USD34.25 billion in November from a revised deficit of USD39.33 billion in the previous month. Economists had expected the U.S. trade deficit to widen to USD40 billion. U.S. exports rose 0.9% to a record high of USD194.9 billion, while imports fell 1.4% to USD229.1 billion. The dollar hovered near a one-month high against a basket of major currencies early in Asia on Wednesday, having rebounded smartly overnight on the back of upbeat U.S. trade data.

The dollar index rose as far as 80.946, reaching highs seen in early December after the United States posted its smallest trade deficit in four years as exports hit a record high. It last stood at 80.875. In contrast, investors dumped the Canadian dollar on news that activity by purchasing managers nosedived unexpectedly in December, while the country's trade deficit was far larger than forecast. That saw the greenback jump more than 1 percent to C$1.0782. The Indian rupee came out of initial hesistancy, in an otherwise narrow range of trade on Tuesday, and ended almost flat at 62.30 against the US dollar on late selling by exporters, amid a stable Greenback overseas. The rupee commenced lower at 62.40 a dollar from previous close of 62.31 and declined further to a low of 62.47 on early dollar demand from importers and weakness in domestic stocks. It, later, bounced back to a high of 62.29 on late dollar selling by exporters before concluding at 62.30, showing a mere rise of one paisa. The Indian currency had fallen by 15 paise, or 0.24 per cent, on Monday.

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DAILY REPORT 08th JANUARY. 2014

CALL REPORT PERFORMANCE UPDATES

Date

Commodity/ Currency Pairs

Contract

Strategy

Entry Level

Target

Stop Loss

Remark

07/01/14

MCX GOLD

FEB.

BUY

29260

29340-29440

29150

NOT EXECUTED

07/01/14

MCX GOLD

FEB.

SELL

29000

28920-28820

29101

BOOKED FULL PROFIT

07/01/14

MCX SILVER

MAR.

BUY

45550

45750-46050

45150

SL TRIGGERED

07/01/14

MCX SILVER

MAR.

SELL

45250

45050-44750

45600

BOOKED FULL PROFIT

07/01/14

NCDEX CASTOR SEED

FEB.

SELL

4485

4455-4405

4535

BOOKED FULL PROFIT

07/01/14

NCDEX CASTOR SEED

FEB.

BUY

4610

4640-4690

4560

NOT EXECUTED

07/01/14

NCDEX DHANIYA

JAN.

SELL

7910

7880-7830

7960

BOOKED FULL PROFIT

07/01/14

NCDEX DHANIYA

JAN.

BUY

8080

8110-8160

8030

BOOKED FULL PROFIT

07/01/14

JPY/INR

JAN.

SELL

59.74

59.60-59.45

60.10

NOT EXECUTED

07/01/14

JPY/INR

JAN.

BUY

60.36

60.51-60.73

60.00

NOT EXECUTED

07/01/14

GBP/INR

JAN.

SELL

102.30

102.12-101.90

102.70

NOT EXECUTED

07/01/14

GBP/INR

JAN.

BUY

102.73

102.94-103.15

102.33

NO PROFIT NO LOSS

Date

Scrip

CASH/ FUTURE/ OPTION

Strategy

Entry Level

Target

Stop Loss

Remark

07/01/14

NIFTY

FUTURE

SELL

6200

6150-6110

6250

CALL OPEN

07/01/14

CESC

FUTURE

BUY

475

482-489

468

NOT EXECUTED

07/01/14

VOLTAS

FUTURE

BUY

122

124-126

120

BOOKED PROFIT

07/01/14

MASTEK

CASH

BUY

180-182

187-192

175

BOOKED PROFIT

06/01/14

NIFTY

FUTURE

BUY

6230-6250

6280-6300

6200

SLTRIGGERED

YOUR MINTVISORY

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DAILY REPORT 08th 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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