ISSUE:001

10TH SEPTEMBER, 2018

RULE THE MARKET

Nifty not a hostage to Rupee depreciation, Economic and corporate

earnings’ outlook is bullish

2018 has been marked by turbulence in markets, with the latest arising

out of the depreciation of the Indian Rupee. However, we believe that

tailwinds from a pickup in economic growth and improvement in corporate

earnings present a bullish outlook for the Indian asset markets, despite the

headwinds from the currency markets.

From The Desk Of CEOCONTENTSEquity 1-5

Derivatives 6-7

Commodity 8-11

Currency 12

Events 13

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Analyst Certification

The following Karvy Research Desk, who is (are) primarily responsible for this report and whose name(s) is/ are mentioned therein, certify (ies) that the views expressed herein accurately reflect his (their) personal view(s) about the subject security (ies) and issuer(s) and that no part of his (their) compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in this research report.

Disclaimer: Karvy Stock Broking Limited [KSBL] is registered as a research analyst with SEBI (Registration No INZ000172733). KSBL is also a SEBI registered Stock Broker, Depository Participant, Portfolio Manager and also distributes financial products. The subsidiaries and group companies including associates of KSBL provide services as Registrars and Share Transfer Agents, Commodity Broker, Currency and forex broker, merchant banker and underwriter, Investment Advisory services, insurance repository services, financial consultancy and advisory services, realty services, data management, data analytics, market research, solar power, film distribution and production, profiling and related services. Therefore associates of KSBL are likely to have business relations with most of the companies whose securities are traded on the exchange platform. The information and views presented in this report are prepared by Karvy Stock Broking Limited and are subject to change without any notice. This report is based on information obtained from public sources, the respective corporate under coverage and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of KSBL. While we would endeavor to update the information herein on a reasonable basis, KSBL is under no obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent KSBL from doing so. The value and return on investment may vary because of changes in interest rates, foreign exchange rates or any other reason. This report and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. KSBL will not treat recipients as customers by virtue of their receiving this report. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither KSBL nor any associate companies of KSBL accepts any liability arising from the use of information and views mentioned in this report. Investors are advised to see Risk Disclosure Document to understand the risks associated before investing in the securities markets. Past performance is not necessarily a guide to future performance. Forward-looking statements are not predictions and may be subject to change without notice. Actual results may differ materially from those set forth in projections. Associates of KSBL might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject company for any other assignment in the past twelve months. Associates of KSBL might have received compensation from the subject company mentioned in the report during the period preceding twelve months from the date of this report for investment banking or merchant banking or brokerage services from the subject company in the past twelve months or for services rendered as Registrar and Share Transfer Agent, Commodity Broker, Currency and forex broker, merchant banker and underwriter, Investment Advisory services, insurance repository services, consultancy and advisory services, realty services, data processing, profiling and related services or in any other capacity.KSBL encourages independence in research report preparation and strives to minimize conflict in preparation of research report. Compensation of KSBL’s Research Analyst(s) is not based on any specific merchant banking, investment banking or brokerage service transactions. KSBL generally prohibits its analysts, persons reporting to analysts and their relatives from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover.KSBL or its associates collectively or Research Analysts do not own 1% or more of the equity securities of the Company mentioned in the report as of the last day of the month preceding the publication of the research report. KSBL or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report and have no financial interest in the subject company mentioned in this report. Accordingly, neither KSBL nor Research Analysts have any material conflict of interest at the time of publication of this report. It is confirmed that KSBL and Research Analysts, primarily responsible for this report and whose name(s) is/ are mentioned therein of this report have not received any compensation from the subject company mentioned in the report in the preceding twelve months. It is confirmed that Research Analyst did not serve as an officer, director or employee of the companies mentioned in the report. KSBL may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Neither the Research Analysts nor KSBL have been engaged in market making activity for the companies mentioned in the report. We submit that no material disciplinary action has been taken on KSBL by any Regulatory Authority impacting Equity Research Analyst activities.

- RAJIV SINGHCEO-Broking Business

Since the last turmoil in the currency market during the “taper tantrum” in 2013, the Rupee has

depreciated from 68.85 to 71.84, a depreciation of 4.2%. However, the Rupee has appreciated against

most of our trading partners, after accounting for Inflation. This is measured by REER (Real Effective

Exchange Rate) according to which the Rupee has appreciated 19.4% from September 2013 to

July 2018. This has hurt the competitiveness of Indian exports and some correction in the Rupee is

warranted to restore the competitiveness of our exporters.

Additionally, the rise in the price of crude oil, as well as the increase in non-oil imports (which rose by

20% YoY during July 2018), has led to a significant deterioration in the trade balance. The merchandise

trade deficit was USD 63 bn for the first four months of FY2018-19 as compared to USD 51.5 bn during

the same period last year.

The genesis for the turmoil in the currency markets, however, has its origin elsewhere. Firstly as part

of trade wars, USA imposed import tariffs on China, Europe, Mexico, Canada and Turkey. Secondly,

there are economic imbalances in certain markets such as Argentina, which had to increase interest

rates and approach the IMF for a bailout. This has impacted the currencies of emerging markets. It is

important to remember that an increase in foreign currency debt, weakness in the financial sector and

substantial imbalances in the current account and a large fiscal deficit in some markets have added

to the crisis.

India has made substantial progress since the taper tantrum, with the fiscal deficit declining from

4.5% to 3.5%. Similarly, the current account deficit has declined, substantially from 5.08% of GDP in

October-December Quarter 2012 to 2.4% of GDP in April- June 2018. This indicates that the Indian

economy is in far better position to withstand the headwinds from the currency markets. However,

interest rates will rise due to capital outflows, and the Reserve Bank of India may need to increase the

interest rates further.

We also need to look at the impact on corporate earnings; the banking sector may be impacted due

to rise in bond yields which will force them to recognize mark to market losses on their bond portfolio.

Among other sectors, Energy, Information Technology and Pharma, export-driven sectors, benefit the

higher value of the dollar and are not impacted by a weak rupee. These sectors account for more than

60% to the index and thus play a vital role in deciding its direction. It is important to keep in mind that

companies with outstanding ECB’s will need to book some losses. We believe that conditions are in

place for a significant pickup in earnings growth in FY19 and FY20. We expect a pickup in gross fixed

capital formation and stabilization in the banking sector will be supportive of corporate earnings.

Nifty earnings are expected to grow over 20% CAGR in FY2018-19 and FY2019-20, despite headwinds

and we believe this will be supportive of equities.

EQUITY

Domestic Economy

Indian economy expanded 8.2% in the April-June quarter, its fastest pace in more than two years, driven by solid growth in manufacturing and consumer spending. But the Nikkei Manufacturing Purchasing Managers’ Index (PMI), compiled by IHS Markit, suggested a slight loss of momentum last month. The activity gauge fell to a three-month low of 51.7 from July’s 52.3.

Metal

The National Company Law Appellate Tribunal (NCLAT) held Russia’s VTB Capital-backed Numetal’s second bid valid and asked the world’s largest steel manufacturer Arcelor Mittal to clear dues of Uttam Galva and KSS Petron till date (amounting to excess of Rs 7,000 crore) within three days to turn its bid eligible for taking over debt-ridden Essar Steel.

Automobile

• India aims to have at least 15 percent of the vehicles on its roads to be electric in five years, an official said, signaling the government’s wish to join a long list of countries around the world that are already seeking to cut fossil fuels aggressively.

• Mahindra & Mahindra Ltd. unveiled the Marazzo multi-utility vehicle as India’s largest maker of SUVs and MUVs aims to recover lost market share in the category. The Marazzo will be priced starting Rs 9.99 lakh (ex-showroom), taking on Toyota’s Innova (Rs 14.06 lakh) and Maruti Suzuki Ltd.’s Ertiga (Rs 6.34 lakh).

FMCG

Fast moving consumer goods major Dabur India Ltd. may have to take a hit on its operating profit margins in the short term as it plans to gain market share, amid the industry facing inflationary pressure.

Mining and minerals

State-run Coal India Ltd.’s August output climbed 3.2 percent YoY to 38.8 million tons while shipments grew 3.4 percent to 45.22 million tons. Production for the April-August period advanced 12 percent to 216.23 million tons and shipments rose 9.5 percent to 246.90 million tons.

Oil & Gas

HPCL to raise ₹28,000 crore for Rajasthan unit and will finalize 10 of the 12 technology providers by the end of next week, with an aim to complete the project by 2022.

IT

Infosys, Temasek announces joint venture in Singapore. Infosys to acquire a 60 percent stake in the joint venture while Temasek will hold 40 percent.

Pharma

Aurobindo Pharma Ltd has agreed to buy the dermatology business and three manufacturing units of Sandoz, the generics unit of Swiss drug maker Novartis, for as much as $1 billion, the Indian company said, in a deal that makes it the second-largest maker of generic prescription drugs in the US.

NEWS

INTERNATIONAL NEWS

• COMCASA: India to get access to real-time encrypted information from US

• China’s Consumers Are On Point to Defend Economy From Trump

• Tencent and Alibaba bring Their Battle for Supremacy to Coffee

• Chinese President Xi Jinping promotes ‘Belt and Road’ as Africa growth tool

• Mario Draghi will raise the European Central Bank’s interest rates before his term as president ends in October 2019 amid continued risks from U.S. tariffs and Italian politics

• The Federal Statistics Office said contracts for ‘Made in Germany’ goods were down by 0.9 percent after a revised plunge of 3.9 percent in the previous month.

TREND SHEET

Symbol CMP S2 S1 R1 R2 TREND

SENSEX 38389.82 37206.27 37798.04 38957.97 39526.13 UP

NIFTY 11589.10 11220.30 11404.70 11762.65 11936.20 UP

NIFTYBANK 27481.45 26539.75 27010.60 28077.75 28674.05 DOWN

YESBANK 323.40 304.87 314.13 340.33 357.27 DOWN

SUNPHARMA 664.25 621.88 643.07 682.37 700.48 UP

SBIN 291.65 274.82 283.23 306.28 320.92 DOWN

INFY 732.80 698.60 715.70 749.20 765.60 UP

HDFC 1920.00 1883.40 1901.70 1951.65 1983.30 SIDEWAYS

MARUTI 8719.20 8339.43 8529.32 9014.02 9308.83 DOWN

AXISBANK 645.55 608.55 627.05 659.75 673.95 UP

BAJFINANCE 2744.20 2552.07 2648.13 2860.13 2976.07 DOWN

ICICIBANK 335.10 312.30 323.70 345.25 355.40 UP

TCS 2079.85 2019.65 2049.75 2108.60 2137.35 UP

FORTHCOMING EVENTS

Ex-Date Company Purpose

10-Sep-18 Arrow Greentech Ltd Dividend - Rs. - 2.00

10-Sep-18 ASIAN GRANITO INDIA LTD. Final Dividend - Rs. - 1.30

10-Sep-18 GATI LTD. Dividend - Rs. - 0.90

10-Sep-18 Indian Energy Exchange Ltd Final Dividend - Rs. - 22.0

10-Sep-18 PBM POLYTEX LTD Dividend - Rs. - 3.50

10-Sep-18 POWER GRID CORPORATION OF INDIA LTD. Final Dividend - Rs. - 2.80

11-Sep-18 BHARAT HEAVY ELECTRICALS LTD. Final Dividend - Rs. - 1.02

11-Sep-18 CONTAINER CORPORATION OF INDIA LTD. Final Dividend - Rs. - 3.75

11-Sep-18 ENGINEERS INDIA LTD. Final Dividend - Rs. - 1.50

11-Sep-18 GUJARAT STATE FERTILIZERS & CHEMICALS LTD.

Dividend - Rs. - 2.20

11-Sep-18 INDIA CEMENTS LTD. Dividend - Rs. - 0.80

11-Sep-18 KEI INDUSTRIES LTD. Dividend - Rs. - 1.00

11-Sep-18 Parag Milk Foods Ltd Final Dividend - Rs. - 0.75

11-Sep-18 TAMIL NADU NEWSPRINT & PAPERS LTD. Dividend - Rs. - 5.00

12-Sep-18 Apex Frozen Foods Ltd Dividend - Rs. - 2.00

12-Sep-18 APOLLO HOSPITALS ENTERPRISE LTD. Dividend - Rs. - 5.00

12-Sep-18 ARIES AGRO LTD. Dividend - Rs. - 2.30

12-Sep-18 BAJAJ STEEL INDUSTRIES LTD. Final Dividend - Rs. - 3.00

5-Sep-18 Housing & Urban Dev Corp Financial Results

5-Sep-18 SREI Infrastructure Fin. Financial Results

5-Sep-18 Varroc Engineering Financial Results

KSTREET - 10 SEPTEMBER 2018 1

INDIAN INDICES (% CHANGE)

GLOBAL INDICES (% CHANGE)

NIFTY MIDCAP100TOP GAINERS & LOSERS (1W)

SECTORAL INDICES (% CHANGE)

FII/FPI & DII TRADING (IN RS. CRORES)

NSE NIFTY TOP GAINERS & LOSERS (1W)

EQUITY

-3.5

-3

-2.5

-2

-1.5

-1

-0.5

0

0.5

1

1.5

Nifty

Sensex

BSE Midcap

BSE Smallcap

Nifty N

ext 50

Nifty M

idcap 100

-6

-5

-4

-3

-2

-1

0

1

2

3

Auto

Bank

Services

FMC

G

Pharma

IT Metal

Energy

Consum

ption

Realty

-1

-0.8

-0.6

-0.4

-0.2

0

0.2

0.4

0.6

Nasdaq

Dow

Jones

S&P 50

0

Nikkei

Hang Sang

Sanghai Com

p

FTSE 100

CA

C 40

-20

-15

-10

-5

0

5

10

15

20

Muthoot Finance

Jubilant LifeScience

ICIC

I Lombard G

eneral Ins

Biocon

Housing &

Urban

Developm

ent Corpora

Balkrishna Ind.

Crom

pton Cons Elec

Jubilant FoodWorks

GM

R Infrastructure

Adani Pow

er

-10

-8

-6

-4

-2

0

2

4

6

8

10

Wipro

Bajaj Auto

Dr. Reddys Labs

Tata Motors

Tata Steel

HU

L

Zee

Yes Bank

SBI

Ultratech C

em

-550

-350

-150

50

250

450

8/31/2018

9/1/2018

9/2/2018

9/3/2018

9/4/2018

9/5/2018

9/6/2018

FII/FPI DII

KSTREET - 10 SEPTEMBER 2018 2

BEAT THE STREET - FUNDAMENTAL ANALYSIS

SandharTechnologies CMP Rs.363 Target Price Rs.472Upside 30%

Investment Rationale

• 2W segment contributes 59% to Sandhar’s consolidated sales wherein it supplies automotive locks and mirrors to 2W OEM market in India. Its customers include Hero Motocorp, TVS Motors and Royal Enfield (~53% of Indian 2W industry).

• Being a premium vendor of JCB, over the next two years, the company expects its cabin revenues to double to ~Rs 4 bn as new facility starts contributing.

• In India, Honda plans to introduce 5 new models over the next 3-4 years so as to increase its market share from 5% to 10%. This augurs well for Sandhar.

• We expect Sandhar’s PAT margins to increase from 3.7% to 5.9% over FY18-20E due to a) 100bps EBITDA margin expansion (New plants being optimally utilized and operating leverage benefit) and b) Reduction in interest cost due debt repayment out of IPO proceeds. The company is set to more than double its profit from Rs 662mn to Rs 1.6bn over FY18-20E.

• The company plans to achieve ~14% sales CAGR over the next 4 years (FY18-22). Over the next 9-12 months, four of Sandhar‘s JVs are likely to be operational. These JV’s are likely to contribute cumulatively ~Rs4bn sales by FY22.

• During the current year, Sandhar has secured ~Rs 2.8bn new business. Full impact of these orders is likely to be reflected in FY20. Based on current business outlook, management is confident of clocking 18-20% sales growth in FY19.

• The company plans to offer new products with advanced technological capabilities like AVN panels, rear parking sensors, Micro ISO Relays, Switches, Fuel Modules, TPMS fuel pumps, fuel filler caps, etc. which will enable it to earn higher margins.

VALUE PARAMETERSFace Value (Rs.) 10.0

52 Week High/Low (Rs.) 451/306

M.Cap (Rs. Bn/US $mn) 22/320

EPS (Rs.) 11.0

P/E Ratio (times) (FY20E) 13.8

Dividend Yield (%) 1.1

Stock Exchange BSE

% OF SHARE HOLDING

in Rs.Mn ACTUAL ESTIMATE

YE Mar FY 18 FY 19 FY 20

REVENUE 19464 23530 27745

EBITDA 2083 2656 3250

EBITDA(%) 10.7 11.3 11.7

PAT 662 1119 1579

EPS (Rs.) 11.0 18.6 26.2

RoE (%) 14.1 16.5 20.3

PE (x) 33.0 19.4 13.8

P/E CHART

Valuation

At CMP 363, the stock is currently quoting at PER of 13.8xFY20E earnings. We reiterate our BUY rating on the stock with price target of Rs472 (PER of 18xFY20E).

EQUITY

70.14%

29.86%

Promoter Public

95100105110115

120125130135140145

2-A

pr-1

8

16-A

pr-1

8

30-A

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14-M

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28-M

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20-A

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3-Se

p-18

Sensex Sandhar Tech

KSTREET - 10 SEPTEMBER 2018 3

BEAT THE STREET - FUNDAMENTAL ANALYSIS

TakeSolutions LtdCMP Rs.198 Target Price Rs.251Upside 27%

Investment Rationale

• Management indicated that going forward, the focus is going to be on Clinical and Regulatory businesses in Life Sciences vertical. Over a period of time, it aims to tilt revenue mix in favor of Clinical business with clinical contributing 70% and Regulatory contributing 30%. Client spend is 3 times higher on Clinical than Regulatory. In Clinical business, TAKE gets multi-year contracts with 3-5 year time frame for getting regulatory approvals.

• While the management has guided for an organic growth rate of 22-24% in USD terms, we see upside risks to this due to the factors mentioned above. This coupled with TAKE’s increasing order book, its niche capabilities and increased use of technology would augur well for the company’s growth.

• The life sciences space has seen several deals in the mid size space over the past couple of years. Life sciences companies are chasing innovative platform-based tech companies with a focus on AI and automation. As a result of the gap created by this consolidation, full service providers with technical capabilities like TAKE stand to benefit by increased order inflow.

• During Q1FY19 Concall, management said that it is in advanced stages of closing a deal in the US clinical space. Company is more likely to close in on the acquisition before the end of current fiscal.

• It is targeting tuck-ins and is scouting for companies that could enhance its technical capabilities in the areas of E2E labeling, biostatistics and biometrics.

Risks• Slowdown in Life Sciences industry

• Regulatory issues

• Strong rupee

VALUE PARAMETERSFace Value (Rs.) 1.0

52 Week High/Low (Rs.) 307/131

M.Cap (Rs. Bn/US $mn) 29.27/0.41

EPS (Rs.) 12.2

P/E Ratio (times) (FY20E) 11.1

Dividend Yield (%) 0.81

Stock Exchange BSE

% OF SHARE HOLDING

in Rs.Mn ACTUAL ESTIMATE

YE Mar FY 18 FY 19 FY 20

REVENUE 15872 18650 21914

EBITDA 3065 3741 4470

EBITDA(%) 19.3 20.1 20.4

PAT 1599 2101 2594

EPS (Rs.) 12.2 14.4 17.8

RoE (%) 14.3 14.6 15.4

PE (x) 16.2 13.7 11.1

P/E CHART

Valuation

We remain optimistic about TAKE’s future growth prospects with positive outlook on margins. We continue with our BUY rating with a target price of Rs. 251, with upside potential of 27%. We roll forward our target price to FY20E EPS of 17.8, valuing it at 5 year historical average PE of 14.1x.

EQUITY

66.8%12.8%

9.6%10.8%

Promoters FIIs DIIs Others

95115135155175195215235

7-Se

p-17

7-O

ct-1

7

7-No

v-17

7-De

c-17

7-Ja

n-18

7-Fe

b-18

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7-Ap

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7-Ju

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Sensex Take Solutions

KSTREET - 10 SEPTEMBER 2018 4

EQUITY

BEAT THE STREET - TECHNICAL ANALYSIS

Torrent Power Ltd

The stock has given a positive return of around 2.50% whereas the broader index i.e. NIFTY 50 has given a negative return of around 1% during the month of September’18 till date. The stock is expected to continue to outperform when compared to the broader index in the coming months. Technically, the stock is looking strong and is trading above its 21/50/100/200-DEMA on the daily and weekly charts. The stock staged a smart recovery after making a panic low of 243 couple of days back, clocking a high of 276.05 levels in the last trading session, gaining more than 10% in such a short time frame. The stock has been trading in the range of 210-275 levels since more than 6 months and is likely to give price breakout and rally towards its life time highs. The recent price action in the counter has been accompanied with notable volumes, re-iterating our bullish stance in the counter. Hence, we recommend investors to go long in the stock around 265-270 levels and add more on dips towards 240 levels with a stop loss of 210 for the targets of 330-360 levels.

Cadila Healthcare Ltd

The stock has given trend line breakout at 402 levels down from the high of 560 levels. The stock has bounced well after taking support around 348-353 levels. The bounce from the said lower levels has seen supportive volume formation on weekly charts. The stock has outperformed Nifty Pharma significantly and closed the week with positive return of around 5.75%. Whereas, Nifty Pharma has closed the week with positive return of 2.60% on weekly basis. The price action in the stock has reflected double bottom formation on daily charts and given breakout around 390 levels and trading well above the same. The recent breakout in the stock enhances our bullish view in the stock. On technical setup, the 14 period RSI is pointing northwards after giving positive cross over with signal line. The bounce in the stock has placed the stock above all its major moving averages and daily charts. The parabolic SAR has freshly trigged buy signal on weekly charts which indicates uptrend in the stock will remain intact in near term. Hence, we are suggesting buy in the stock for the target of 530 - 550 levels with stop loss of 350 levels for the time frame of 3-4 months.

Stock TORNTPOWER

CMP 269.60

Action BUY

Entry 265-270

Average 240

Stop loss 210

Target 330

Target 2 16.2

Time Frame 6-9 months

Stock CADILAHC

CMP 426

Action BUY

Entry 418-420

Average 380

Stop loss 350

Target 530

Target 2 550

Time Frame 3-4 months

KSTREET - 10 SEPTEMBER 2018 5

WEEKLY VIEW OF THE MARKET

Nifty (11589.10): Nifty ended the week on a negative note despite the attempted smart recovery from lower levels. Markets plummeted despite the economic growth zooming to 8.2% for the June quarter. Though the index ended lower by merely 0.78% for the week, the intensity of the fall was strong enough to rattle short term traders. Going into the next week, the Nifty is likely to take support around 11450-11400 below which 11350-11320 will act as the next meaningful supports. Whereas on the upside, if the index manages to surpass the immediate supply zone around 11680-11700 zone, then a smart rally towards the lifetime highs cannot be ruled out. During the next week, we expect the index to trade in a range of 11400-11700 with a possibility of a strong move of 100-150 odd points in either direction. As we march into the next week after the latest hiccups received during the last week, macroeconomic data points like the Index of Industrial Production (IIP) and Inflation (CPI &WPI) numbers will give a clear trend to the markets thereafter.

DERIVATIVE STRATEGIES

Index Strategies

Type: Covered Call in NIFTY Type: Protective Put in BANKNIFTY

First leg Buy one lot of NIFTY SEP FUT @ 11630-11635 First leg Buy one lot of BANKNIFTY SEP Futures @ 27580-27600

Second leg Sell one lot of NIFTY SEP 11700 CE @ 90-91 Second leg Buy one lot of BANKNIFTY SEP SEP 27500 PE @ 130-135

BEP 11545 BEP 27735

Max Profit 11,625 Max Profit Unlimited beyond BEP

Max Loss Unlimited beyond BEP Max Loss 9,400

Stop loss 11450 (Spot levels) Stop loss 24200 (Spot levels)

NIFTY OPTION OI CONCENTRATION CHANGE IN NIFTY OPTION OI

DERIVATIVES

StockStrategies

Type: Bull Call Spread in LUPIN Type: Protective Call in ZEEL

First leg Buy one lot of LUPIN SEP 980 CE @ 23 First leg Sell one lot of ZEEL SEP Futures @ 471-471.50

Second leg Sell one lot of LUPIN SEP 1020 CE @ 12 Second leg Buy one lot of ZEEL SEP 480 CE @ 9.50-10

BEP 991 BEP 461.50

Max Profit 7,700 Max Profit Unlimited beyond BEP

Max Loss 20,300 Max Loss 24,050

Stop loss 930 (Spot levels) Stop loss 495 (Spot levels)

6KSTREET - 10 SEPTEMBER 2018

DERIVATIVES

FII’S ACTIVITY IN INDEX FUTURES FII’S ACTIVITY IN STOCK FUTURES

TOP 10 LONG BUILD UP

STOCK NAME LTP % Price Change Open interest %OI Change

MUTHOOTFIN 467.05 14.08% 3300000 72.14%

GODFRYPHLP 951.45 7.61% 655200 26.15%

OFSS 4165.3 0.12% 290100 25.10%

LUPIN 959.4 3.00% 12745600 16.15%

GRANULES 121.4 4.97% 15525000 15.77%

TORNTPOWER 269.6 2.28% 2193000 14.94%

CESC 1012.15 1.63% 6015900 14.70%

INFIBEAM 228.75 0.24% 46024000 14.39%

TVSMOTOR 589.95 3.60% 5968000 13.59%

AUROPHARMA 759.3 12.36% 23632000 9.82%

TOP 10 SHORT BUILD UP

STOCK NAME LTP % Price Change Open interest %OI Change

BALKRISIND 1170.7 -13.93% 3144000 118.45%

BEL 91.85 -19.07% 49094100 69.85%

ADANIENT 157.35 -30.14% 26612000 41.97%

GODREJCP 1341.2 -7.64% 2518400 35.68%

SRTRANSFIN 1212.55 -9.23% 6216000 35.00%

NESTLEIND 10446.6 -9.81% 358100 31.89%

ORIENTBANK 77.2 -8.37% 16224000 30.94%

SUNTV 694.95 -9.30% 8743000 28.32%

ESCORTS 797.3 -8.33% 6695700 26.18%

YESBANK 323.4 -5.85% 89192250 24.71%

BANKNIFTY OPTION OI CONCENTRATION (WEEKLY) CHANGE IN BANKNIFTY OPTION OI (WEEKLY)

7KSTREET - 10 SEPTEMBER 2018

COMMODITIES

BULLIONGold futures on COMEX consolidated in the range of $1195.10 - $1212.50 per troy ounce as the market was stuck between mixed fundamental factors. However, gold prices managed to stay near or above $1200 per troy ounce throughout the week. Escalating trade spat between China and US after U.S. President Donald Trump said last week that he wanted to move ahead on a plan to impose tariffs on Chinese imports worth $200 billion. Hedge funds and money managers cut their net short positions in COMEX gold contracts in the week to Aug. 28 for the first time in more than a month. Gold prices have fallen about 8 percent so far this year amid rising U.S. interest rates, international trade disputes and the Turkish currency crisis, with investors preferring the dollar as a safe-haven. According to GFMS, Indian gold imports in August jumped by 116.5% Y/Y to 100 tons, which is the highest in the last 15 months. For the first eight months of 2018, Indian gold imports fell 12.6% from a year earlier to 532.1 tons, as per data compiled by GFMS. Trade concerns continued to keep investors nervous, with a deadline looming in the U.S.-China trade dispute and a refusal by Canada to bow to key U.S. demands in its trade talks with Washington. Non-farm payroll and unemployment data released on 7th September would be precursor for the interest rate hike by US FOMC by end of September month. On domestic front, sharp fall in the Indian Rupee against US Dollar kept the MCX gold prices on positive note.

SPICESCardamom futures are likely to extend positive run during the upcoming week and may test 1550 Damage to plantations as well as crop due to heavy rainfall has resulted in lower crop output in the current season. Crop production is seen to reduce at least 50% than last year and is projected at around 15000 MTs. However, major gains are likely to be capped as arrivals may increase at the spot auctions once the second round of harvesting starts. In addition, ban on cardamom imports by Arabia w.e.f 1st Sept due to excess pesticide residue will keep the gains capped. After the record volume of 5680 MTs in the last year due to heavy buying from Saudi Arabia, India is set to lose major chunk of its market this year following the ban. Turmeric futures to trade downwards and may test 6400 levels during the week. Higher sowing area under the crop in major growing states has boosted expectations of higher crop output. Jeera futures are likely to trade in a broader range of 18800 to 20100 during the upcoming week. Focus to shift towards sowing prospects of jeera during the upcoming sowing season; area is expected to be higher due to higher prices of the commodity and good rainfall in growing regions. However, supply concerns and overall good demand for Indian Jeera in the international market will cap major loss in futures prices. Rupee at all time lower levels may also result in fresh export demand from the overseas market. Dhaniya futures are expected to trade in positive note testing 5600 levels during the upcoming week. As the farmers have not got good returns from the past two seasons cultivating dhaniya, they may shift to other remunerative crop thereby leading to fall in area. As the prices have fallen continuously and with weak rupee, we can expect good demand from overseas market for Indian dhaniya.

OILS & OILSEEDSSoybean futures are expected to continue its bearish streak in upcoming week due to muted demand at physical market and likely to move towards Rs.3150 per quintal level. Forecast of favourable weather condition for crop progress and expectation of early commencement of harvesting in central region could weigh on prices in upcoming week too. Moreover, prices may track cues from the USDA monthly supply and demand estimation report which is scheduled to release on 12th Sep. Considering the current crop condition in major soybean growing countries, USDA may revise its world production estimate of soybean for year 2018-19 upwardly which was pegged at 367.10 million MT in August. Apart from that, weakness in global prices resulting after heightening trade dispute between US and China could be other factor which may keep prices under pressure. RM Seed prices may find strong resistance near about Rs.4200 per quintal in Oct contract and could slip in line with tumbling soybean prices. Millers are avoiding bulk buying in anticipation of fall in prices as NAFED has reduced its selling prices in ongoing auction and sold about 2560 MT of mustard seed stocks in Madhya Pradesh and Haryana with average prices of Rs.3850 per quintal. However, Soy ref oil futures are expected to trade sideways in a range of Rs.740-758 as major gain could be capped by higher production outlook. However, emerging festive demand and costlier import resulting from excessive weakness in Indian currency could support the prices in medium term. Likewise, CPO futures are likely to trade on positive bias due to improved demand outlook and may touch Rs.625 per 10 kg level next week.

BASE METALSMost of the base metals segment after experiencing a series of downfall may set to recover by considering the dollar movements, however capped by the trade wars between the World’s two largest economies. Any recovery in prices would follow short coverings due to the availability of funds. China’s possible retaliation over the U.S imposition of tariffs on $200 billion tariffs would bring strong supply concerns for copper. Aluminium prices are set to pick its prices with rising costs of Alumina as Union workers at Alcoa have prolonged the four week old strike reducing the output. Also, as part of NAFTA deal China’s Commerce Ministry has called in the Aluminium foil makers to discuss on anti-dumping duty which is to be launched by Mexico. In the month of July, Japan’s factory output fell for a third time due to slowing exports of cars and steel. Steel output also fell because the United States has imposed tariffs on steel imports from Japan and other trading partners. With LME warehouse stocks reaching its five-year lows and depleting supply levels of Nickel, provides the necessity to find out more metal deposits in bringing the ground for reduction in the prices of Nickel. As of July 2018, China alone will account for 39 percent of the global EV market in 2030 which is set to grow by 2.27 percent. Despite the new round of environmental inspections in China that affected majority of the smelters in major lead producing provinces, the SHFE warehouses have seen a sharp rise in inventories by around 50% during the same period.

ENERGY COMPLEXCrude oil prices remained volatile as prices dipped amid rising supply from OPEC and the United States, although expectations of falling Iranian output once U.S. sanctions bite from November provided some support. OPEC oil output has risen this month to a 2018 high as Libyan production recovered and Iraq’s southern exports hit a record although a cut in Iranian shipments due to U.S. sanctions limited the increase. OPEC will discuss in December whether producers can compensate for a sudden drop in Iranian oil supply after U.S sanctions against Tehran start in November. As per Russian Ministry sources, Russian oil output stood at 11.21 million barrels per day (bpd) in August, virtually unchanged from July and steady near a post-Soviet high as production curbs were eased. China’s refiners increased their output in July to close to 12 million bpd, but at the same time exports of refined fuels fell to the lowest in four months. Looking over the production trend in US as per EIA monthly reports, Crude oil production rose 231,000 barrels per day, or 2 percent, to a record 10.674 million bpd in June. Natural gas prices are expected to gain resulted by the lower storage stocks build up concern ahead of the upcoming withdrawal season. Separately, gains could be pared by more than expected rise in inventory levels but overall the inventory remains below 5 year average levels. Separately, the current futures contracts could witness some of the selling pressure due to weakness in the spot months but overall buying from lower levels is recommended. However, the far month contracts i.e November to March are expected to continue to trade stronger as speculators price in a storage deficit at the start of the winter heating season in November.

OTHER COMMODITIESCotton futures are likely to trade in a boarder range of Rs.22400 -23300 due to changing short term fundamentals to the market. Improved export viability of Indian fiber due to record weakness in Indian currency against the US dollar is capping excessive losses in cotton prices. Considering the good crop progress and emerging export demand from China and Bangladesh, it seems that export figure for year 2018-19 may improve remarkably. Market sentiments are being largely affected by persistent weakness in Indian currency. Value of Indian currency has touched its lowest level against US dollar and hovered at 71.90 on Friday. Apart from that, gains in cotton prices may come from ongoing talks to provide bonus of Rs. 500 on MSP of cotton in BJP ruling states. However, midterm trend of cotton is still bearish as market may feel arrival pressure soon due to expectation of early commencement of harvesting in northern region. Crop condition in central and northern region has been good which may cap the excessive gains. Area under cotton has been lower by 1.85% y/y till end of Aug as Indian farmers planted about 117.66 lakh hectares of area under cotton till 31st Aug compared to 119.88 lakh hectares for corresponding period in previous year. Moreover, prices may track cues from USDA monthly supply and demand estimation report likely to release on 12th Sep next week. Estimation of fall in world production estimates and likely rise in consumption levels could cap the excessive losses.

8KSTREET - 10 SEPTEMBER 2018

COMMODITIES

TREND SHEET

Commodities 31-Aug 07-Sep % Change 52 Week High% Change from 52

Week High52 Week Low

% Change from52 Week Low

MCX Gold (Rs/10 gms) 30129 30494 1% 31620 -4% 28055 9%

MCX Silver (Rs/Kg) 36701 37167 1% 41927 -11% 36000 3%

MCX Crude Oil (Rs/bbl) 4959 4883 -2% 5173 -6% 3010 62%

MCX Natural Gas (Rs/mmBtu) 206.9 200.7 -3% 230.5 -13% 162.5 24%

MCX Copper (Rs/kg) 414 422.6 2% 493.25 -14% 402.55 5%

MCX Lead (Rs/kg) 146.15 148.25 1% 172.5 -14% 137.25 8%

MCX Zinc (Rs/kg) 177.25 173.85 -2% 232.7 -25% 163.8 6%

MCX Nickel (Rs/kg) 919.9 888.7 -3% 1095.2 -19% 665.5 34%

MCX Aluminium (Rs/kg) 150.55 147.2 -2% 178.85 -18% 128.3 15%

NCDEX Soybean (Rs/Quintal) 3222 3246 1% 3895 -17% 2754 18%

NCDEX Refined Soy Oil (Rs/10 kg) 735.75 739.45 1% 796.35 -7% 654.2 13%

NCDEX RM Seed (Rs/Quintal) 3990 4084 2% 4262 -4% 3662 12%

MCX CPO (Rs/10 kg) 594 600.8 1% 673 -11% 522.5 15%

NCDEX Castor Seed (Rs/Quintal) 4659 4629 -1% 4790 -3% 3831 21%

NCDEX Turmeric (Rs/Quintal) 6814 6488 -5% 8066 -20% 6316 3%

NCDEX Jeera (Rs/Quintal) 19220 18960 -1% 22360 -15% 14010 35%

NCDEX Dhaniya (Rs/Quintal) 4676 4743 1% 6021 -21% 4186 13%

MCX Cardamom (Rs/kg) 1350 1390 3% 1402.3 -1% 818.5 70%

NCDEX Wheat (Rs/Quintal) 2004 2030 1% 2047 -1% 1575 29%

NCDEX Guar Seed (Rs/Quintal) 4408.5 4314.5 -2% 4737 -9% 3465 25%

NCDEX Guar Gum (Rs/Quintal) 9535 9348 -2% 10468 -11% 7200 30%

MCX Cotton (Rs/Bale) 22860 22940 0.3% 24280 -6% 18180 26%

NCDEX Cocud (Rs/Quintal) 1667.5 1668.5 0.1% 1878.5 -11% 1166 43%

NCDEX Kapas (Rs/20 kg) 868 868 0% 1010 -14% 854 2%

MCX Mentha Oil (Rs/kg) 1756.9 1744.6 -1% 1991.9 -12% 1106 58%

TECHNICAL RECOMMENDATIONS

WTI CRUDE OIL OCT

As on 7th September 2018, NYMEX Crude oil October delivery futures are trading around $67.74/barrel. In the bigger scenario trend is positive however from the current levels corrections towards the $65.40/64.00 is expected. Since prices are witnessing a “tweezers tops” formation along with negative divergence. Prices are trading below the 8&13 EMA support levels in the daily and weekly charts & these are the additional supportive factors to hold bearish view.

GOLD COMEX OCT

As on 7th September 2018, Gold October contract delivery futures at COMEX are trading around $1195/ounce. In the bigger scenario trend is bullish however, from the current levels pullback towards the $1230 is expected since oscillators approached oversold zone and daily EMA 13/8 crossover has occurred. Prices have started rebounding after taking support around 1160 levels which is the Fibonacci 61.8% support levels.

COPPER 3M LME

As on 7th September 2018, Copper 3M forwards are trading around $5940/Mt. Since last several sessions prices are trading within a range of $6360-5775. Momentum indicator RSI-14 is witnessing a formation of positive divergence.

9KSTREET - 10 SEPTEMBER 2018

WEEKLY STOCK POSITIONS IN WAREHOUSE

Commodity UNIT 24-Jul-18 31-Aug-18 Difference

BRASS MT 1.9271 1.9271 0

COTTON BALES 15700 13900 -1800

GOLD KGS 18 18 0

GOLD MINI KGS 2.5 15.7 13.2

Gold GUINEA KGS 6.48 6.48 0

MENTHA OIL KGS 1095862.8 1095862.9 0.05

SILVER KGS 31381.5 35225.3 3843.9

NEWS DIGEST

• U.S. Secretary of State Mike Pompeo, who was in Delhi with U.S. Defence Secretary Jim Mattis for talks with their Indian counterparts said on Thursday that Washington will consider waivers for Iranian oil buyers such as India as some buyers of Iranian oil would take a “a little bit of time” to unwind their trade with Iran. But they must eventually halt imports as sanctions are imposed on Tehran.

• Mexico wants to end a tariff dispute over steel and aluminium with the United States prior to signing off on a reworked trade agreement with its northern neighbour, Mexican Economy Minister Ildefonso Guajardo said on Thursday.

• Around 1,500 staff at three alumina refineries and two bauxite mines walked out on Aug. 8 over a new workplace agreement they say does not offer sufficient job security. Workers at Alcoa’s alumina and bauxite operations in Western Australia have voted to reject a proposed workplace agreement and will continue to strike.

• According to U.S. Census Bureau data, U.S. corn exports totaled 6.77 million tonnes in July, some 43 percent more than a year ago, topping July 2016’s monthly record of 5.8 million tonnes.

• Germany’s Economy Ministry showed that German industrial orders fell by 0.9 percent in July after a revised plunge of 3.9 percent in the previous month.

WEEKLY COMMENTARY

• At the economic front, Trade talks between the United States and Canada again resumed after neighboring countries ended last week’s tensed negotiations with a no deal. President Trump also notified the congress that he wants to sign a trade agreement with Mexico and Canada in 90 days.

• Indian Rupee continued to move lower but trading just under 72, market participants have witnessed an increase in supply at 71.95-72.00 a dollar previously. Crude oil prices also moving lower has kept the rupee under 72. Although the pace of foreign capital outflow has declined but the chances of funds coming into India under the current economic routs across emerging markets looks minimal.

• Dollar index also moved marginally lower but was able to stay above 95. A lower than expected ADP Nonfarm Employment Change impact was offset by marginally better than expected Initial Jobless Claims. Traders reluctant to take fresh long positions ahead of the China – US fresh tariffs outcome also did not move the dollar index. The day traders can adopt a sell on rise strategy in USDINR pair.

• The contagion effect of financial crisis in Argentina, Turkey demanded a scrutiny over other emerging market currencies dragging the MSCI Emerging Market currency Index to its lowest level in 14 months.

• US ISM manufacturing PMI due to be released this week showed surge from 58.1 to 61.3 indicating the surge in pace in manufacturing activity. Thus, while manufacturing remains in expansion, current trade war concerns are likely to affect the activity in the near term while the strong service sector keeps the economic growth on track paving way for further rate hike expectations.

• Although positive news flow over BREXIT issues lifted the Euro and GBP but, lingering concerns over economic outlook followed by weaker Euro zone CPI numbers pulled the duo lower.

• Over the week, EU GDP growth for Q2 (AMJ 2018) witnessed slowdown in growth of 2.1% Y/Y, whereas stood at 2.5 % in Q2 growth. However, with the same being lower than the growth of 2.7-2.8% during H2 2017, this indicates the impact of ongoing concerns in Euro zone economies.

• On the other hand, growth in China’s manufacturing sector remained nominally lower in August after sliding for two months suggesting that economic activity is still fairly resilient despite weak investment and an escalating trade battle with the United States. The Caixin Purchasing Managers’ Index (PMI) fell to 52.7 in August from 52.8 in July, and remained above 50 for the 25th straight month.

COMMODITIES

CAIXIN SERVICES PMI US ISM MANUFACTURING PMI

EU GDP GROWTH Y/Y%

10KSTREET - 10 SEPTEMBER 2018

COMMODITIES

PRICES OF METALS IN LME/ COMEX/ NYMEX (IN US $)

Commodity Exchange Contract 31-Aug 07-Sep % change

Aluminium LME 3M 2118 2063 -2.6%

Copper LME 3M 5990 5880 -1.8%

Lead LME 3M 2088.5 2059 -1.4%

Nickel LME 3M 12810 12335 -3.7%

Zinc LME 3M 2473 2403.5 -2.8%

Gold CME DEC 1206.9 1201.8 -0.4%

Silver CME DEC 14.575 14.215 -2.5%

WTI Crude oil CME OCT 69.88 67.86 -2.9%

Natural Gas CME OCT 2.921 2.775 -5.0%

INTERNATIONAL COMMODITY PRICES

Commodity Exchange Contract 31-Aug 07-Sep % change

Soybean CBOT NOV 858.75 858.25 -0.1%

Soy oil CBOT DEC 28.78 28.3 -2%

CPO BMD DEC 2245 2264 1%

Cotton ICE DEC 82.15 82.08 -0.1%

SPOT PRICES (% CHANGE)

Nickel- Steel vows for higher prices

Nickel prices have seen one of the volatile sessions in past month caused by the growing trade spat between the two major economies of the world US & China. The lower prices of Nickel have resulted on the account of profit booking by the traders which created long positions. The metal’s demand outlook has been significantly expected to be robust by 2020 supported by the growing demand and usage of EV vehicles which are expected to increase the usage of batteries. In past month, inventory levels at LME tracked warehouses are depleting and had reached to 5 Yr low levels. Also the miners are looking for more of the battery required metal to meet the upcoming demand from automobile sector. Separately, global automobile manufacturers are expecting a surge in electric vehicle sales in the early 2020s and are increasingly worried about where they’ll get enough nickel and graphite to go into batteries. According to Bloomberg, China alone will account for 39 percent of the global EV market in 2030 which is set to grow by 2.27 percent.

During the last week of August, the inventory levels at LME declined by 1.58 percent from 242604 tons to 238782 tons while cancelled warrants decreased marginally from 25.31% to 23.77%. Separately, weekly Nickel inventories in warehouses monitored by the Shanghai Futures Exchange increased by 1.90 percent from 17349 tons to 17678 tons while cancelled warrants increased from 22.99% to 25.56%. In July, the prices also weakened over the launch of LME’s consultation to trial in the first quarter of next year and the use of its electronic trading system to determine closing prices of the 3M nickel contract instead of open outcry. The other setback prices got is from Shanghai Futures Exchange which decided to raise its transaction fees for November Nickel futures to 6 Yuan/lot from 1 Yuan effective from August.

In the current ongoing trade war scenario for India, there is moderate risk of US trade restrictions on steel imports but rebounding steel margins could help domestic steel companies. Same ways the demand is also expected to increase 11 fold in the five years between 2017 and 2025, with batteries predicted to become the second largest consumer of Nickel after the stainless steel market by the middle of next decade. Meanwhile, Chinese authorities’ stepped up efforts and vowed to adopt more ‘vigorous’ fiscal policy, like cutting taxes, so as to support growth amid rising economic headwinds. The following move would boost demand for Nickel and other metals in the world’s top consumer, China.

LME WAREHOUSE STOCKS (IN TONNES)

Commodity Previous week This week Change % Change

Copper 262475 246175 -16300 -6.21%

Zinc 239175 232800 -6375 -2.67%

Aluminium 1068675 1061575 -7100 -0.66%

Lead 122925 121400 -1525 -1.24%

Nickel 238494 236250 -2244 -0.94%

SHANGHAI WAREHOUSE STOCKS (IN TONNES)*

Commodity Previous week This week Change % Change

Copper 146590 138001 -8589 -5.86%

Zinc 30800 29936 -864 -2.81%

Aluminium 895880 881940 -13940 -1.56%

*Until Wednesday

11KSTREET - 10 SEPTEMBER 2018

USD/INR

This is the daily chart of USDINR FUT pair, the pair has been trading in a broader range of 72.28 on the higher side and 70.90 on the lower side for the week.

The pair continued its momentum and made a fresh all time high of 72.28 on fut, MACD remains on the Buy side above the zero line & pair trade above the 20DMA and 50DMA while Relative strength placed at 75(indicating overbought).

EUR/INR

This is the daily chart of EURINR FUT , the pair traded in a broader range of 84.14 on the higher side and 82.35 on the lower side for the week.

The pair traded higher during the week and made a 52 week high of 84.14, MACD has given a positive crossover ( signifying momentum to continue) while Relative strength at 68 levels, the pair had broken out of 78.40-82.10 range last week and trade above 20DMA & 50DMA expects momentum to continue.

GBP/INR

This is the daily chart of GBPINR pair, the pair traded in a range of 93.60 on the higher side and 91.61 on the lower side.

The pair traded positive during the week after making a low at 91.61, while MACD remains above the zero line, Relative strength index trade above the overbought levels at 71 while there is a crossover of 20DMA & 50DMA.

JPY/INR

This is the daily chart of JPYINR, the pair traded in a range of 65.33 on the higher side and 63.98 on the lower side during the week

The pair traded with positive bias and traded above the 20DMA and 50DMA while prices having a shooting star pattern with Relative strength index above overbought at 73 expects a reversal.

TECHNICAL RECOMMENDATIONMARKET STANCE

The big story for the Forex market over the week was US – China trade tariffs. Investors remained taut throughout the week as the deadline for public comments on fresh US tariffs on $200 billion worth of Chinese imports approached on Friday. Market participants were reluctant to add fresh long positions in the Dollar Index with no clear outcome on the trade tariffs. The much awaited US Nonfarm Payroll data came in beating the market expectations with 201K jobs created in August as against the market expectations of 191K. On the other end of the globe, economic optimism created by better than expected PMI numbers from UK & Europe was watered out by softer than expected Eurozone GDP growth. With no major economic changes in Europe and UK and lingering concerns over BREXIT issues would keep the Dollar index tall above 95. Back home, the current account deficit for April-June quarter this year widened to $15.8 Billion as against $15 Billion printed during same quarter in 2017-18. Effect of higher crude prices and a record FPI outflow of $8.1 Bln in Q1 FY19 was offset by higher private transfer receipts and net services receipts by Indian technology companies. The Indian rupee extended its losses and hit its all-time low. An increase in supply at 71.90 – 72.00 for USDINR pair has restricted the extent of losses in Rupee. Growing nervousness over India’s widening twin deficit combined with higher crude prices would continue to build pressure on local unit.

NEWS FLOWS OF LAST WEEK

• US President Donald Trump issued a new threat to terminate NAFTA agreement altogether, he also warned Congress not to intervene in tough negotiations that may or may not include Canada in a new accord.

• President Trump also notified the Congress that he wants to sign a trade agreement with Mexico and Canada in 90 days.

• After repeated threats to shut down the government, when funding runs out on September 30th, U.S. President Trump said that a possible shutdown of the U.S. government over border wall funding, “most likely” would not happen until after the November congressional elections.

• England Prime Minister Theresa May said she would not allow compromises to her BREXIT strategy that went against the national interest, seeking to allay fears among some in her Conservative Party that she will cave into Brussels’ demands in negotiations.

• The MSCI Emerging Market Currency Index hit its lowest level in 13 months as emerging market currencies extended their selloff. The index measuring a basket of 26 currencies from emerging economies against the US Dollar has slipped 2.4% in August.

CURRENCY

ECONOMIC GAUGE FOR THE NEXT WEEK

DateLocal Time

Country Indicator Name Period Poll Prior Unit

10-Sep 07:00 China PPI YY Aug-18 4 4.6 Percent

10-Sep 07:00 China CPI YY Aug-18 2.2 2.1 Percent

10-Sep : China M2 Money Supply YY Aug-18 8.5 8.5 Percent

10-Sep : China New Yuan Loans Aug-18 1300 Bln 1450 CNY

12-Sep 17:00 India Industrial Output YY Jul-18 6.6 7 Percent

13-Sep 18:00 US Initial Jobless Claims W 08 Sep 210K 203 Person

13-Sep 17:15 Euro Zone ECB Re-financing Rate Sep-18 0 0 Percent

13-Sep 18:00 US CPI MM, SA Aug-18 0.2 0.2 Percent

14-Sep 07:30 China Urban investment (ytd)yy Aug-18 5.5 5.5 Percent

14-Sep 07:30 China Industrial Output YY Aug-18 6 6 Percent

14-Sep 07:30 China Retail Sales YY Aug-18 8.7 8.8 Percent

14-Sep 12:00 India WPI Inflation YY Aug-18 4.65 5.09 Percent

14-Sep 18:00 US Retail Sales MM Aug-18 0.5 0.5 Percent

14-Sep 18:45 US Industrial Production MM Aug-18 0.3 0.1 Percent

14-Sep 19:30 US U Mich Sentiment Prelim Sep-18 96.3 96.2 Index

12KSTREET - 10 SEPTEMBER 2018

ZBH MEET@HEAD OFFICE

Mr. Rajiv Singh (CEO-Stock Broking) interacting with ZBH during ZBH meet at Karvy Head Office

[From left to right- Mr. Regi Thomas (ZBH-South), Mr. Rohit Mahipal (ZBH-East), Mr. Jayant Gandhi (ZBH-West), Mr. Anand Kumar N (Dy ZBH-South

West), Mr. S Venkata Srinivas Reddy (ZBH-South East), Mr. L Rajesh Kumar (Dy ZBH-South East) and Mr. Minish Handa (ZBH-North)]

Mr. Rajiv Singh (CEO & Business Head, KSBL) handing over the Award to Ms. Komal Bisht for Exemplary Performance in

Revenue generation of Rs. 1 crore in 2018.

Mr. Rajiv Singh ( CEO & Business Head, KSBL) handing over The GrandMaster Award to Mr. Srikant Venkatesh Cherlapelly.