Epic research special report of 26 may 2016

Page 1

DAILY REPORT 26

th

MAY 2016

Global markets at a glance European equities jumped to a four-week high on Wednesday with banks buoyed by progress on talks towards securing a debt relief deal for Greece, and energy shares rose on the back of a rally in oil. The FTSEurofirst 300 and the STOXX Europe 600 index both touched their highest levels since late April, climbing 1.3 percent to add to the previous session's jump of more than 2 percent. Banks rose after euro zone finance ministers agreed with Greece and the International Monetary Fund on a deal that will address Athens' requests for debt relief. Asia markets opened higher on Thursday, led by advances in the energy sector, after overnight gains in oil prices pushed US stocks higher. In Japan, the Nikkei 225 traded up 0.75 percent, while across the Korean Strait, the Kospi was higher by 0.34 percent. Down Under, the S&P/ASX 200 gave up most of its nearly 0.4 percent gains to trade flat.

World Indices Index

Value

% Change

DJI S&P500 NASDAQ FTSE100 NIKKEI

17851.51 2090.54 4894.89 6262.85 16815.43

+0.82 +0.70 +0.70 +0.70 +0.35

HANG SENG

20292.53

-0.37

Top Gainers Company

TECHM INDUSINDBK ICICIBANK BAJAJ-AUTO BHEL

Wall Street rose robustly for a second straight session on Wednesday, helped by higher oil prices and investors becoming more comfortable with the prospect of an interest rate hike as early as next month. Combining Tuesday and Wednesday's performances, the S&P 500 gained 2 percent, its strongest two-day run since early March. The energy sector .SPNY led the way in the latest session, up 1.51 percent as oil prices rose toward $50 a barrel. That followed a report of a larger-than-expected drop in US crude inventories, adding to expectations that a steep selloff in the commodity may be over. Previous day Roundup Supported by firm global cues, bulls enjoyed a stellar day at Dalal Street. The benchmark indices ended at 1-month high with banks leading it with full might. The Sensex closed up 575.70 points or 2.3 percent at 25881.17, and the Nifty ended up 186.05 points or 2.4 percent at 7934.90. About 1563 shares have advanced, 970 shares declined, and 182 shares are unchanged. The day belonged to large caps and result specific stocks, mostly hogging limelight Index stats The Market was very volatile in last session. The sartorial indices performed as follow; Consumer Durables [up 55.17pts], Capital Goods [up 381.39pts], PSU [up 105.01pts], FMCG [up 148.64Pts], Realty [up 21.96 pts], Power [up 36.86pts], Auto [up 238.26pts], Healthcare [up pts], IT [up 248.90pts], Metals [up 81.65Pts], TECK [up 132.16pts], Oil& Gas [up 178.72pts]. YOUR MINTVISORY

CMP

Change

% Chg

530.30

50.05

10.42

1,095.75

52.10

4.99

234.80

10.25

4.56

2,484.00

104.6

4.40

122.80

5.10

4.33

CMP

Change

% Chg

Top Losers Company

CIPLA

472.20

-4.42

Stocks at 52 Week’s HIGH Symbol

ASIANPAINT BIOCON GRASIM HAVELLS HDFCBANK PIDILITIND RUSHIL SHILPI SRTRANSFIN SUPREMEIND TATAMETALI

Prev. Close

Change

%Chg

982.05 648.05 4,320.00 373.00 1,172.90 684.20 366.00 99.50 1,143.35 895.00 246.75

25.80 3.90 29.65 6.10 32.95 26.85 1.30 4.85 -13.20 -5.20 11.75

2.70 0.61 0.69 1.66 2.89 4.08 0.36 5.12 -1.14 -0.58 5.00

Prev. Close

Change

%Chg

82.80 817.50 472.20

2.35 -1.85 -21.85

2.92 -0.23 -4.42

CMP

Change

% Chg

7934.90 25881.17

+186.05 +575.70

+2.40 +2.28

Stocks at 52 Week’s LOW Symbol

BANKINDIA BEML CIPLA

Indian Indices Company

NIFTY SENSEX

Call us at +91-731-6642300


DAILY REPORT 26

th

MAY 2016

STOCK RECOMMENDATIONS [FUTURE] 1. ARVIND [FUTURE]

STOCK RECOMMENDATION [CASH] 3. UPL

On daily chart UPL bounced back from the major trend line support level of 564 and made a good positive move in yesterday session rose with heavy volume, for this it is expected to give positive move above the near resistance level of 593.35 .So we advise to buy it above 593.50 for the targets of 599 603.50 with stop loss of 588. Last trading session ARVIND future opened gape up and consolidate in first half but later it moved very fast and crossed major resistance level in second half and made a high of 314.50 and close near day’s high with bullish candlestick in daily chart. since last session it rose with rising OI % In June series.. We may see sharp rise for that it will be good to buy around 309-310 for the target of 314-318 with SL of 305. 2. AXISBANK [FUTURE]

Last trading session AXISBANK future show good strenth and close near day high with bullish candlestick in daily chart. since last session it rose with rising OI around 45.66%, in long side at June series and last day stock cross major resistance level. We may see sharp rise for that it will be good to buy above 507 for the target of 511-515 with SL of 500. YOUR MINTVISORY

MACRO NEWS  Results today: United Spirits, BPCL, ONGC, Power Grid Corporation, Jet Airways, Tata Chemicals, India Cements, Adani Transmission, Fortis Healthcare, Shree Cement, MphasiS Limited, Trent, Neyveli Lignite, Natco Pharma, VA TECH WABAG, CARE, Kaya Limited, Future Lifestyle Fashions, HT Media, Balmer Lawrie & Company, EIH Limited, Hathway Cable, Kohinoor Foods, KRBL, RCF, GIPCO, Hotel Leela Venture, Jaypee Infra, JHS Svendgaard Lab, Maharashtra Seamless, MUKTA ARTS, SCI, Sterlite Technologies, Titagarh Wagons, Deepak Fertilizers, Educomp, Everest Kanto, FDC Ltd, Finolex Cables, Geojit BNP Paribas Financial Services, GMDC, India Glycols, Ingersoll Rand, Jindal Drilling, KCP Sugar, Maharashtra Seamless, Orient Abrasives, Panoramic Universal, Rama Steel Tubes, Sagar Cements, Salzer Electronics, Shreyas Shipping & Logistics, STC, Stylam Ind, Tilaknagar Industries  Cipla slips 7% on Q4 shocker; analysts warn margins pressure may persist  Strong Q4 results drive Zee Media up 20%  Strengthening crude impacted Q4 margins: GSFC  Co looks to grow at a rate of 20-25% every year: Bajaj Finserv  Can sustain margins at 40%; a regulator is welcome: Thyrocare  Morgan Stanley upgrades India outlook to 'overweight'  Banks still resisting rate cuts as liquidity row with RBI drags on  India kicks off auction of 67 small oil and gas fields  India to use International Solar Alliance to push solar water pumps  Power Grid can diversify only if it loses central transmisCall us at +91-731-6642300


DAILY REPORT 26

th

FUTURES & OPTIONS

MAY 2016

NIFTY

CE

7,900 49.10

8,94,163

31,69,200

NIFTY

CE

7,800 137.80

3,88,647

20,69,100

BANKNIFTY

CE

17,000 91.75

1,94,558

5,93,370

MARUTI

CE

4,000 57.75

7,073

1,51,500

SBIN

CE

175

1.60

7,056

19,28,000

STOCKS IN NEWS  BHEL commissions 800 MW supercritical thermal unit  Tata Steel may shortlist 2-3 bidders for UK assets today  L&T Q4 profit & revenue jump over 18%, meets FY16 topline target  Dr Reddy's buys 6 OTC brands from US-based Ducere Pharma  IndusInd Bank out, BoI to now settle tea e-auctions. Lohia Auto Industries ties up with IndusInd Bank  Ashok Leyland Q4 profit down 66% on exceptional loss of Rs 379cr

ASHOKLEY

CE

105

0.05

6,005

60,34,000

NIFTY FUTURE

LT

CE

1,300 16.65

5,307

5,12,400

ICICIBANK

CE

1.60

5,270

10,45,500

LTP

Traded Volume (Contracts)

Open Interest

MOST ACTIVE CALL OPTION Symbol

Op- Strike tion Price Type

235

LTP

Traded Volume (Contracts)

Open Interest

MOST ACTIVE PUT OPTION Symbol

Op- Strike tion Price Type

NIFTY

PE

7,800

2.35

7,77,430

58,10,625

NIFTY

PE

7,900 13.85

5,53,748

58,28,700

BANKNIFTY

PE

16,500

3.80

1,25,890

5,69,100

SBIN

PE

170

0.25

4,342

25,18,000

MARUTI

PE

3,900

1.40

3,488

1,10,375

ICICIBANK

PE

230

0.35

3,470

23,29,000

CIPLA

PE

460

1.05

3,120

3,32,800

ASHOKLEY

PE

95

0.75

3,007

30,31,000

NIFTY FUTURE in yesterday trading session saw a big bull run. Led buy autos, banks and infra stock Nifty moved around 150 points up, even after a gap up opening. For tomorrow F&O has expiry so Nifty may see some downside, as traders may empty their positions. So we advise you to buy Nifty from some lower levels around 7920 for the targets of 7970 and 8050 with strict stop loss of 7840

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

190077

10952.14

131868

7608.73

384841

22504.78

3343.42

INDEX OPTIONS

847245

48552.77

808114

46160.32

1241305

72943.48

2392.45

STOCK FUTURES

450146

21558.96

445293

21391.33

1140354

54593.42

167.63

STOCK OPTIONS

81760

3965.70

86201

4162.00

111602

5403.65

-196.30

TOTAL

5707.20

INDICES NIFTY BANKNIFTY YOUR MINTVISORY

R2

R1

PIVOT

S1

S2

8027.00

7980.90

7895.10

7849.00

7763.20

17299.00

17148.00

16837.00

16722.00

16447.00

Call us at +91-731-6642300


DAILY REPORT 26

th

MAY 2016

MCX

RECOMMENDATIONS GOLD

TRADING STRATEGY: GOLD BUY ABOVE 29000 TARGET 29150 29400 SL 29860 GOLD SELL BELOW 28850 TARGET 28750 28600 SL 29000 SILVER

COMMODITY ROUNDUP Gold plummeted further after a massive tumble yesterday amid soaring equities and continued selling pressure. The commodity has come off its 15 month highs above $1300 per ounce a few weeks back. Sentiments have been weak as speculation mounted that the US Federal Reserve will raise interest rates as early as next month. Technical factors also weighed on Gold as COMEX futures have dropped under their 200 week moving average. The metal tumbled around 20 dollars and ended under $11230 per ounce levels yesterday. The counter is quoting at $1221 per ounce, down 0.64% on the day. MCX Gold futures extended their losses under Rs 30K and tumbled under Rs 29K today to trade at Rs 28979 per 10 grams, down 1.10% on the day. Supported by rising demand from alloy-makers in domestic spot markets, nickel prices moved up by 0.79% to Rs 575.10 per kg in futures trade today. In futures trading, nickel for delivery in June moved up by Rs 4.50 or 0.79% to Rs 575.10 per kg, in a business turnover of 233 lots at the Multi Commodity Exchange. On similar lines, the metal for delivery in May contracts traded higher by Rs 4.40 or 0.78% to Rs 568.70 per kg in 2,727 lots. Market analysts attributed the rise in nickel prices at futures trade to enlarging of positions by speculators, driven by rising demand from alloy-makers in the spot market. However, losses in base metals pack at the London Metal Exchange (LME) amid signs that the US Federal Reserve could raise interest rates as early as next month, capped the gains, they said. Oil prices gained in the US session after US government data showed a larger-than-expected drop in crude inventories. Reuters reported the U.S. Energy Information Administration said crude inventories fell 4.2 million barrels in the week to May 20. Analysts polled by Reuters expected a drop of 2.5 million barrels in inventory. Global benchmark Brent futures settled up 2.3 percent at USD 49.74 a barrel, while US crude futures added 1.93 percent to USD 49.56.

TRADING STRATEGY: BUY SILVER ABOVE 39420 TARGET 39600 39800 SL 39250 SELL SILVER BELOW 39100 TARGET 38900 38700 SL 39300 YOUR MINTVISORY

the refined copper market for February 2016 (excluding the adjustment for changes in China's bonded stocks) showed a small apparent production surplus of around 24,000 metric tonnes. When making seasonal adjustments for world refined production and usage, February showed a small production deficit of 23,000 t. The refined copper balance for the first two months of 2016, including revisions to data previously presented, indicates a production surplus of around 76,000 t. This compares with a production surplus of around 134,000 t (a seasonally adjusted surplus of about 70,000 t) for the same period of 2015. Call us at +91-731-6642300


DAILY REPORT 26

th

MAY 2016

NCDEX

RECOMMENDATIONS DHANIYA

BUY CORIANDER JUN ABOVE 6940 TARGET 6985 7085 SL BELOW 6875 SELL CORIANDER JUN BELOW 6757 TARGET 6712 6612 SL ABOVE 6822 GUARGUM

NCDEX INDICES Index

Value

% Change

BARLEY CHANA CORIANDER COTTON SEED GUAR SEED JEERA MUSTARDSEED REF SOYA OIL SUGAR M GRADE TURMERIC

1549 6011 6800 2231 3010 15950 4363 638.2 3522 7926

-0.23 -1.18 -0.70 +0.13 -0.89 -1.09 -0.02 -0.29 -0.25 +0.33

Cardamom futures fell by 1.23% to Rs 828.50 per kg today as traders trimmed their holdings amid subdued spot demand. Besides, adequate stock position following increased arrivals from producing regions also fuelled the downtrend. At the Multi Commodity Exchange, the commodity for June eased by Rs 10.30, or 1.23%, to Rs 828.50 per kg with a business turnover of 176 lots. The spice for delivery in July was down Rs 4.70, or 0.54%, to Rs 860.10 per kg with a trading volume of 41 lots. Offloading of positions by participants owing to a weak trend at spot market on subdued demand mainly put pressure on cardamom prices. The Centre has set a target to achieve a record foodgrain production of 270.10 million tonnes (mt) in 2016-17 crop year on hopes of bountiful rains after two consecutive drought years. The country had last achieved a record output of 265.04 mt in 2013-14. However, the production in 2014-15 an d 2015-16 fell to 252.02 mt and 253.23 mt, respectively, due to drought in more than ten States.

BUY GUARGUM JUN ABOVE 5200 TARGET 5250 5320 SL BELOW 5140 SELL GUARGUM JUN BELOW 4980 TARGET 4930 4860 SL ABOVE 5040

YOUR MINTVISORY

The ongoing cotton sowing season has forced the government to keep in abeyance for three months the notification capping licence fees for all new genetically modified (GM) seed technologies. On March 18, the government had issued a notification capping royalties of GM cotton seed technology companies at 10 per cent for the first five years. Had the notification been implemented, there were fears legal challenges could have affected BT cotton seed supplies at the time of sowing. Over 95 per cent of cotton sown in the country is BT cotton. The ministry of agriculture has withdrawn the notification on GM crops and is seeking wider consultation. The ministry likely to issue it after 90 days. This will provide seed licensees and licensors time to renegotiate contracts. Call us at +91-731-6642300


DAILY REPORT 26

th

MAY 2016

CURRENCY RBI Reference Rate

Currency

Rate Currency

Rate

Rupee- $

67.4467 Yen-100

61.3200

Euro

75.2098 GBP

98.5599

USD/INR

BUY USD/INR MAY ABOVE 67.61 TARGET 67.74 67.89 SL BELOW 67.41 SELL USD/INR MAY BELOW 67.31 TARGET 67.18 67.03 SL ABOVE 67.51 EUR/INR

BUY EUR/INR MAY ABOVE 75.25 TARGET 75.4 75.6 SL BELOW 75.05 SELL EUR/INR MAY BELOW 75.13 TARGET 74.98 74.78 SL ABOVE 75.33 YOUR MINTVISORY

CURRENCY MARKET UPDATES: Currencies across the globe seem to be largely guided by actions of the US Federal Reserve, with rupee witnessing only moderate volatility, says a report by Care Ratings. According to the credit rating agency, the single most important factor that is affecting the course of currencies is the Fed action or inaction related to interest rates. The Indian rupee has witnessed a moderate volatility so far this year and its movement towards Rs 68-69 during the year looks likely, it said. The volatility (on annualised monthly basis) has been really high for some of the currencies such as those of Argentina, Russia, South Africa, Brazil, Australia and Mexico. As per the report, the rupee has been following an uneven path in 2016 and has behaved quite well during this period, guided partly by the fundamentals as well as selective intervention from the RBI. The agency observed that besides the Fed monetary action, the rupee is also being influenced by lower growth in trade deficit as well as current account deficit, positive FPI flows in April and May and movement of interest rates in India based on RBI policy stance. Breaking its nine-day slide - the longest since 2007 - the rupee turned around in style against the dollar to close at 67.33 after selling in the US currency by exporters accelerated. The domestic unit rebounded from its two-and-a-half -month low with an impressive 42-paise gain - its sharpest single-day jump in over two months. Heavy selling in the greenback by exporters and banks amid its weakness against other currencies overseas and a spectacular rally in local equities supported the recovery momentum. Suspected Reserve Bank of India intervention through stateowned banks also kept it cheery. At the interbank forex market, the rupee resumed on a firm footing at 67.63 against its overnight close of 67.75 and maintained its rising trend to hit an intra-day high of 67.31 before settling at 67.33, a solid gain of 42 paise, or 0.62 per cent. In cross-currency trades, the rupee bounced back against the pound sterling to end at 98.85 from 98.98 on Tuesday. It also regained some ground against the euro and closed at 75.03 compared with 75.73 and recovered against the yen to settle at 61.13 per 100 yens as against 61.80 on Tuesday. Call us at +91-731-6642300


DAILY REPORT 26

th

MAY 2016

Date

Commodity/ Currency Pairs

Contract

Strategy

Entry Level

Target

Stop Loss

Remark

25/05/16

NCDEX GUARGUM

JUNE

BUY

5250

5300-5370

5190

NOT EXECUTED

25/05/16

NCDEX GUARGUM

JUNE

SELL

5160

5110-5040

5220

BOOKED FULL PROFIT

25/05/16

NCDEX DHANIYA

JUNE

BUY

7012

7057-7157

6947

NOT EXECUTED

25/05/16

NCDEX DHANIYA

JUNE

SELL

6757

6712-6612

6822

NOT EXECUTED

25/05/16

MCX GOLD

JUNE

BUY

29350

29450-29600

29250

NOT EXECUTED

25/05/16

MCX GOLD

JUNE

SELL

29250

29150-29000

29351

BOOKED FULL RPOFIT

25/05/16

MCX SILVER

JUNE

SELL

39290

39100-38300

39500

BOOKED RPOFIT

25/05/16

MCX SILVER

JUNE

BUY

39600

39850-40150

39350

NOT EXECUTED

Date

Scrip

CASH/ FUTURE/ OPTION

Strategy

Entry Level

Target

Stop Loss

Remark

25/05/16

NIFTY

FUTURE

BUY

7750

7820-7900

7680

NOT EXECUTED

25/05/16

BIOCON

FUTURE

BUY

648

651-655

643

BOOKED PROFIT

25/05/16

CIPLA

FUTURE

SELL

493

488-480

499.5

NOT EXECUTED

25/05/16

RUSHIL

CASH

BUY

367.5

370-372.5

363.5

BOOKED FULL PROFIT

YOUR MINTVISORY

Call us at +91-731-6642300


DAILY REPORT 26

th

ECONOMIC CALENDAR

MAY 2016

NEXT WEEK'S U.S. ECONOMIC REPORTS TIME

REPORT

PERIOD

ACTUAL

CONSENSUS FORECAST

PREVIOUS

MONDAY, MAY 23 9:45 AM

MARKIT PMI FLASH

MAY

--

50.8

523,000

511,000

-$61.2 BLN

-$56.9 BLN

TUESDAY, MAY 24 10 AM

NEW HOME SALES

APRIL WEDNESDAY, MAY 25

8;30 AM

ADVANCE TRADE IN GOODS

APRIL THURSDAY, MAY 26

8:30 AM

WEEKLY JOBLESS CLAIMS

MAY 21

--

--

8:30 AM

DURABLE GOODS ORDERS

APRIL

-0.1%

0.8%

10 AM

PENDING HOME SALES

APRIL

1.0%

1.4%

FRIDAY, MAY 27 8:30 AM

GDP REVISION

1Q

0.8%

0.5%

10 AM

CONSUMER SENTIMENT

MAY

--

95.8

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YOUR MINTVISORY

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