Stock market special report by epic research 18th august 2014

DAILY REPORT

18th AUGUST 2014

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Global markets at a glance

Hong Kong's benchmark index closed at its highest level since November 2010 on Friday, pushed up by index heavy-weight China Mobile The Hang Seng Index ended up 0.6 percent at 24,954.94 points, the highest close since Nov. 8, 2010. The China Enterprises Index of the leading offshore Chinese listings in Hong Kong was up 0.3 percent for the day

European shares sharply reversed earlier gains to end in negative territory on Friday, led down by the Russia-exposed DAX index, on news of a Ukrainian attack on a Rus-sian convoy. But the news of the clash saw the FTSEurofirst 300, up almost 1 percent earlier on Friday, drop 0.5 percent to 1,323.10 points. Germany's DAX, dominated by firms heavily dependent on Russian energy, sank 1.4%

Wall Street

U.S. stocks ended mixed on Friday, paring an earlier selloff sparked by reports of Ukraine shelling a Russian armored column. The S&P 500 .SPX ended Friday down a mere frac-tion of a point. The three major U.S. stock indexes posted a second straight week of gains after a correction that evapo-rated following a brief drop of 4 %. DJI fell 50.67pts, or 0.30%, to close at 16,662.91. The S&P 500 dipped 0.12 of a point, or 0.01%, to end at 1,955.06. The Nasdaq added 11.93pts, or 0.27%, to end at 4,464.93.

Previous day Roundup

Indian shares rose on Thursday to their highest close in nearly two-and-a-half weeks as blue-chips such as ICICI Bank Ltd gained, tracking higher Asian stocks as soft eco-nomic data globally kept up hopes of continued stimulus from central banks. India's broader NSE index was just 0.6%. FIIlargely responsible for shares hitting record highs late last month, bought stocks worth 7.18bn rupees on Wednesday. The benchmark BSE index rose 0.71%, or 184.28pts, to end at 26,103.23, its highest close since July 25 when it hit a record high of 26,300.17. The broader NSE index rose 0.67%, or 52.15pts, to end at 7,791.70,

Index stats

The Market was very volatile in last session. The sartorial indices performed as follow; Consumer Durables [up 176.26pts], Capital Goods [up 251.31pts], PSU [up 94.75pts], FMCG [up 16.69pts], Auto [up 92.07pts], Health-care [up 144.72pts], IT [down 7.58Pts], Metals [down 243.02pts], TECK [down 2.67pts], Oil& Gas [up 152.32pts], Power [up 30.32pts], Realty [up 92.07 pts].

World Indices

Index Value % Change

D J l 16662.91 -0.30

S&P 500 1955.06 -0.01

NASDAQ 4464.93 -0.81

EURO STO 3033.52 +0.06

FTSE 100 6689.08 +0.06

Nikkei 225 15318.34 +0.02

Hong Kong 24954.94 +0.60

Top Gainers

Company CMP Change % Chg

JINDALSTEL 284.10 9.00 3.27

GAIL 424.70 12.90 3.13

MCDOWELL-N 2,360.00 62.80 2.73

AMBUJACEM 210.90 5.20 2.53

SSLT 288.30 6.75 2.40

Top Losers


HEROMOTOCO 2,514.00 64.70 -2.51

HINDALCO 176.40 3.65 -2.03

HDFC 1,123.95 20.15 -1.76

HCLTECH 1,537.05 23.10 -1.48

BHARTIARTL 364.00 4.60 -1.25

Stocks at 52 Week’s high

Symbol Prev. Close Change %Chg

BHARATFORG 765.00 2.10 -0.27

DABUR 218.00 6.85 +3.24

GLENMARK 703.00 0.35 +0.05

HDFC 1123.95 20.15 -1.76

MARUTY 2670.00 19.05 +0.72

Indian Indices


NIFTY 7791.7 +52.15 +0.67

SENSEX 26103.23 +184.23 +0.71

Stocks at 52 Week’s Low

Symbol Prev. Close Change %Chg

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DAILY REPORT

18th AUGUST 2014


STOCK RECOMMENDATIONS [FUTURE]

1. VOLTAS FUTURE

VOLTAS FUTURE is looking strong on charts, long build up has been seen, we may see more upside, if it sustains above 220 levels. We advise buying around 218-220 levels with strict stop loss of 215 for the targets of 222-225 levels.

2. RANBAXY FUTURE

RANBAXY FUTURE is looking strong on charts, long build up has been seen, we may see more upside, if it sustains above 600 levels. We advise buying around 590-600 levels with strict stopl oss of 580 for the targets of 610-620 levels.

EQUITY CASH & FUTURE

STOCK RECOMMENDATION [CASH]

1. ALEMBIC PHARMA

ALEMBIC PHARMACEUTICALS LTD symmetrical triangle on daily chart. We advise buying around 355 level with strict stop loss 349 for the targets of 126.50-123.50

MACRO NEWS

Telecom operator Reliance Communications has reported a 15.4 % decline in first quarter (April-June) consolidated net profit at Rs 132 crore due to lower other income de-spite sharp fall total expenses. Profit in previous quarter was Rs 156 crore (which was boosted by tax write-back of Rs 1,026 crore).

The July WPI came in at 5.19% (provisional), marginally higher than poll of 5.16%. The 2013 July wholesale price inflation stood higher at 5.85%. Alongside, the govt has revised May inflation numbers higher at 6.18 %, marking it the third revision of prices in recent months.

After registering double digit growth for two consecutive months, India's exports grew by 7.33% to USD 27.72bn in July, while imports rose by 4.25% to USD 39.95 bn. Trade deficit narrowed down to USD 12.22 bn during the month under review from USD 12.49bn. Exports in May and June registered a growth of 12.4% and 10.22%, respectively. In Apr-July exports grew by 8.62% to USD 107.8bn. Imports dipped by 3.8% to USD 153.15bn during the first four months of this financial year.

Infrastructure loan refinancing may top Rs 30,000 crore post reduction of minimum takeout requirement.


DAILY REPORT

18th AUGUST 2014


FUTURE & OPTION

MOST ACTIVE PUT OPTION

Symbol Op-

tion

Type

Strike

Price

LTP Traded

Volume

(Contracts

)

Open

Interest

NIFTY PE 7,700 33.05 4,96,353 63,16,650

NIFTY PE 7,600 16.25 3,67,963 78,87,800

NIFTY PE 7,800 66.75 3,03,840 39,00,750

BANKNIFTY PE 14,500 37.3 28,810 4,98,775

SBIN PE 2,300 18 2,642 2,39,125

RELIANCE PE 980 5.5 2,622 6,43,000

TATASTEEL PE 530 6.15 2,451 6,37,000

SBIN PE 2,350 34.35 2,303 1,00,125

MOST ACTIVE CALL OPTION

Symbol Op-

tion

Type

Strike

Price

LTP Traded

Volume

(Contracts)

Open

Interest

NIFTY CE 7,800 65.85 4,99,055 55,12,450

NIFTY CE 7,900 28.05 4,41,605 47,82,000

NIFTY CE 8,000 10 2,24,840 72,95,400

BANKNIFTY CE 15,500 64.5 38,759 4,29,825

RELIANCE CE 1,000 16 6,857 10,46,000

SBIN CE 2,400 32.2 5,989 3,57,625

RELIANCE CE 1,020 9 5,104 10,85,750

TATASTEEL CE 550 7.7 3,747 9,81,000

FII DERIVATIVES STATISTICS

BUY OPEN INTEREST AT THE END OF THE DAY SELL

No. of

Contracts Amount in

Crores No. of

Contracts Amount in

Crores No. of

Contracts Amount in

Crores NET AMOUNT

INDEX FUTURES 54348 2108.86 38870 1503.95 275695 10714.83 604.91

INDEX OPTIONS 338686 13039.25 358882 13790.01 1489541 57951.27 -750.76

STOCK FUTURES 73490 2746.38 66871 2420.50 1399249 49803.31 325.89

STOCK OPTIONS 62444 2374.47 65918 2508.83 74226 2704.12 -134.36

TOTAL 45.68

INDICES R2 R1 PIVOT S1 S2

NIFTY 7,833.43 7,812.57 7,775.83 7,754.97 7,718.23

BANK NIFTY 15,262.68 15,176.17 15,058.23 14,971.72 14,853.78

STOCKS IN NEWS

Cipla Q1 profit falls 39% on weak operational perform-ance.

Govt proposes to ensure coal supply to each existing and upcoming power plant commissioned before April 2017

Gujarat State Petroleum Corporation’s KG gas to sell at $4.2/unit till October.

CanBank aims cash recovery of Rs 6,500cr for FY15

Lanco may sell more power plans & aiming to raise Rs 20000 cr.

NIFTY FUTURE

Nifty Future closed upside in the last trading session. We advise buying around 7820evel with strict stop loss of 7770 for the targets of 7870-7920


DAILY REPORT

18th AUGUST 2014


COMMODITY MCX

RECOMMENDATIONS

SILVER

TRADING STRATEGY:

BUY SILVER SEP ABOVE 43450 TGTS 43650,43950 SL 43150

SELL SILVER SEP BELOW 43200 TGTS 43000,42700 SL 43500

GOLD

TRADING STRATEGY:

BUY GOLD OCT ABOVE 28750 TGTS 28830,28930 SL 28670

SELL GOLD OCT BELOW 28600 TGTS 28520,28420 SL 28680

COMMODITY ROUNDUP

In commodity markets, worries about Chinese demand sent

copper to a seven-week low below $6,874 per tonne. Spot

gold, in contrast, found support from the outlook for loose

monetary policy and edged up to $1,311.40 an ounce.

Prices for Brent crude oil touched a 13-month trough at

$102.37 a barrel before steadying at $103.99. U.S. crude

was down 21 cents at $97.38.

Gold held on to small overnight gains on Thursday, as slug-

gish U.S. retail sales data boosted the metal's safe-haven

appeal, although higher stock markets could keep any gains

in check. Spot gold was steady at $1,311.16 an ounce by

0025GMT, after gaining 0.3 percent in the previous session.

U.S. gold slipped about $2 to $1,312.70.

Tracking a weak global trend, silver prices moved down by

0.38% to Rs 43,682 per kg in futures trade yesterday as

speculators partially trimmed positions. At MCX, silver for

delivery in September moved down by Rs 165, or 0.38%, to

Rs 43,682 per kg in a business turnover of 434 lots. Simi-

larly, the white metal for delivery in far-month December

declined by Rs 141, or 0.32%, to Rs 44,500 per kg in three

lots. Speculators trimmed positions in tandem with a weak

global trend as ebbing tensions in the Middle East and

Ukraine boosted global equities, damping demand for the

metal as an alternative investment, weighed on silver fu-

tures here. Meanwhile, silver traded lower at $19.99 an

ounce from yesterday's $20.01 in Singapore yesterday.

Nickel prices fell by 0.30% to Rs 1,149 per kg in futures

trade yesterday as speculators indulged in booking profits

even as the metal strengthened overseas. At the MCX,

nickel for delivery in August declined by Rs 3.50, or 0.30%,

to Rs 1,149 per kg in a business turnover of 859 lots. The

metal for delivery in September shed Rs 2.40, or 0.21%, to

Rs 1,156.60 per kg in 25 lots. The fall in nickel prices in fu-

tures trade was largely due to profit-booking by speculators

at current levels and subdued demand from alloy-makers

but the metal's strength at the LME capped losses. Globally,

nickel rose for the third day, advancing 0.40% to USD

18,817 per tonne at the LME after Indonesia said its ban on

ore exports will remain in place under the next government


DAILY REPORT

18th AUGUST 2014


RECOMMENDATIONS

DHANIYA

BUY DHANIYA SEP ABOVE 11975 TGTS 12005,12055 SL

11925

SELL DHANIYA SEP BELOW 11780 TGTS 11750,11700 SL

11830

GUARGUM

BUY GUARGUM OCT ABOVE 16110 TGTS 16160,16260 SL

16020

SELL GUARGUM OCT BELOW 15950 TGTS 15900,15800 SL

16040

NCDEX

NCDEX INDICES

Index Value % Change

Castor Seed 4260 -1.11

Chana 2870 -0.93

Coriander 11400 -1.44

Cotton Seed Oilcake 1750 +0.57

Guarseed 5664 -0.02

Jeera 11145 +0.13

Mustard seed 3434 -2.58

Soy Bean 3510 -3.99

Sugar M Grade 3080 +0.10

Turmeric 6450 +0.31

NCDEX ROUNDUP

Turmeric futures slumped sharply on weak demand due to poor quality of the crops. The NCDEX turmeric September delivery ended the day at Rs 6600, down Rs 24 or 0.36%. Weak offtakes by the domestic and overseas buyers due to poor quality arrivals kept prices under pressure. Tur-meric futures failed to recover further on weak demand and the fell back to Rs 6514 level. The counter ended the day at Rs Rs 6600, down Rs 24 or 0.36%. The open interest dipped 650 tonnes to 15,255 tonnes, indicating profit taking.

Jeera futures pared the previous gains on short selling on improved arrivals, weak demand amid on technical cues. The NCDEX Jeera September delivery settled the day at Rs 11,225, down Rs 85 or 0.75%. Selling extended in spot Jeera amid lack of demand at elevated levels following rising arri-vals. The total stocks in local mandies were almost double of the previous year's level of 35 lakh bags due to record production in the current year. Jeera failed continue last two days of gains above Rs 11,350 level as weak spot de-mand and improved arrivals triggered selling in the counter. The NCDEX Jeera September delivery ended the day at Rs 11,225, down Rs 85 or 0.75% and the open interest added 129 tonnes to 8,088 tonnes, indicating short selling.

Potato prices in the country are high and expected to re-main so, due to an output decline in the major growing states. This was exacerbated by West Bengal earlier this month banning movement outside the state. The govern-ment here has temporarily re-allowed supply but if it stops, prices elsewhere will rise again.


DAILY REPORT

18th AUGUST 2014


EUR/INR

SELL EUR-INR BELOW 81.27 TG 81.07,80.80 SL 81.60

BUY EUR-INR ABOVE 81.70 TG 81.90 .82.20 SL 81.40

GBP/INR

SELL GBP-INR BELOW 101.44 TG 101.24 100,94 SL 101.74

BUY GBP-INR ABOVE 101.80 TG 102,102.30 SL 101.50

CURRENCY ROUNDUP

The Indian rupee rallied on Monday to close above 60 per

dollar after its best daily gain since the national election in

mid-May as anticipation of continued stimulus from central

banks globally lifted emerging market assets. Recent geopo-

litical concerns due to the turmoil in Iraq and Ukraine also

eased, while sentiment also benefited from Brent crude fal-

ling to 13-month lows. As a result, the rupee rose 0.62 per-

cent against the dollar to post its best weekly gain in three

months.

The partially convertible rupee closed at 60.76/77 per dol-

lar, compared with Wednesday's close of 61.215/225, to

post its biggest daily gain since the election of Modi on May

16. The gains tracked higher emerging market assets, with

the NSE index closing at its highest in nearly 2-1/2 weeks. In

the offshore non-deliverable forwards, the one-month con-

tract was at 61.09/14 , while the three-month contract was

at 61.65/75.

The dollar traded largely lower against most major curren-

cies on Friday, as a mixed bag of data coupled with a fresh

flare up in the Russia-Ukraine conflict stoked concerns the

U.S. economy still faces headwinds as it recovers. In U.S.

trading on Friday, EUR/USD was up 0.24% at 1.3398. A dou-

ble-shot of mixed data and geopolitical concerns took its toll

on the dollar on Friday.

The dollar was down against the yen, with USD/JPY down

0.12% at 102.33, and down against the Swiss franc, with

USD/CHF down 0.44% at 0.9026. The greenback was down

against the pound, with GBP/USD up 0.07% at 1.6698. The

dollar was mixed against its cousins in Canada, Australia and

New Zealand, with USD/CAD down 0.12% at 1.0890, AUD/

USD up 0.06% at 0.9325 and NZD/USD down 0.05% at

0.8488.

The US Dollar Index, which tracks the performance of the

greenback versus a basket of six other major currencies,

was down 0.20% at 81.47.

RBI Reference Rate

Currency Rate Currency Rate

Rupee- $ 61.0583 Yen-100 59.5500

Euro 81.552 GBP 101.8391


DAILY REPORT

18th AUGUST 2014


CALL REPORT

PERFORMANCE UPDATES

Date Commodity/ Currency

Pairs Contract Strategy Entry Level Target Stop Loss Remark

14/08/14 MCX GOLD OCT. BUY 28750 28830-28930 28670 SL TRIGGERED

14/08/14 MCX GOLD OCT. SELL 28600 28520-28420 28680 BOOKED PROFIT

14/08/14 MCX SILVER SEP. BUY 43450 43650-43950 43150 SL TRIGGERED

14/08/14 MCX SILVER SEP. SELL 43200 43000-42700 43500 SL TRIGGERED

14/08/14 NCDEX GUARGUM OCT. BUY 16110 16160-16260 16020 BOOKED FULL

PROFIT

14/08/14 NCDEX GUARGUM OCT. SELL 15950 15900-15800 16040 BOOKED FULL

PROFIT

14/08/14 NCDEX DHANIYA SEP. BUY 11975 12005-12055 11925 NOT EXECUTED

14/08/14 NCDEX DHANIYA SEP. SELL 11780 11750-11700 11830 BOOKED FULL

PROFIT

Date Scrip

CASH/

FUTURE/

OPTION

Strategy Entry Level Target Stop Loss Remark

14/08/14 NIFTY FUTURE SELL 7720 760-7620 7770 NOT EXECUTED

14/08/14 SUNPHARMA FUTURE BUY 790-800 820-835 770 NOT EXECUTED

14/08/14 AXISBANK FUTURE SELL 380-370 360-350 390 CALL OPEN

14/08/14 GATI CASH SELL 129.5 126.5-123 132.5 SL TRIGGERED


DAILY REPORT

18th AUGUST 2014


NEXT WEEK'S U.S. ECONOMIC REPORTS

ECONOMIC CALENDAR

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Disclaimer

TIME (ET) REPORT PERIOD ACTUAL CONSENSUS

FORECAST PREVIOUS

MONDAY, AUG. 18

10 AM HOME BUILDERS' INDEX AUG. -- 53

TUESDAY, AUG. 19

8:30 AM CONSUMER PRICE INDEX JULY 0.1% 0.3%

8:30 AM CORE CPI JULY 0.2% 0.1%

8:30 AM HOUSING STARTS JULY 979,000 893,000

WEDNESDAY, AUG. 20

2 PM FOMC MINUTES 7/29-30

THURSDAY, AUG. 21

8:30 AM WEEKLY JOBLESS CLAIMS AUG. 16 -- N/A

9:45 AM MARKIT FLASH PMI AUG. -- 55.8

10 AM PHILLY FED AUG. -- 23.9

10 AM EXISTING HOME SALES JULY 5.02 MLN 5.04 MLN

10 AM LEADING INDICATORS JULY -- 0.3%

FRIDAY, AUG. 22

NON SCHEDULED


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Stock market special report by epic research 18th august 2014