Stock market special report by epic research 22th august 2014

DAILY REPORT

22nd

AUGUST 2014

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Global markets at a glance

Asia markets had been soured after the HSBC/Markit Flash China Manufacturing PMI fell to 50.3 in August from July's 18-month high of 51.7, badly missing a Reuters forecast of 51.5. Investors reacted by selling the Australian dollar, of-ten a used as a liquid proxy for bets on China, while the CSI300 of the leading Shanghai and Shenzhen A-share list-ings shed 0.9%. Tokyo's Topix ended up 0.9%, as did the Nikkei.

European stocks ended higher on Thursday, extending their sharp two-week rebound after better-than-expected Ger-man private sector growth figures which reassured inves-tors about the outlook for Europe's biggest economy fol-lowing a soft patch. The FTSEurofirst 300 index of top Euro-pean shares ended 0.7 percent higher at 1,355.09 points, reaching a level not seen since late July.

Wall Street

U.S. stocks ended higher on Thursday, with the S&P 500 at a record after a flurry of positive economic data, as inves-tors hoped for signs from an annual meeting of central bankers that interest-rate hikes are not imminent. The Dow Jones industrial average rose 60.36 points, or 0.36 percent, to 17,039.49. The S&P 500 gained 5.86 points, or 0.29 per-cent, to end at 1,992.37. The Nasdaq Composite added 5.62 points, or 0.12 percent, to 4,532.10.

Previous day Roundup

Markets ended marginally higher on Thursday led by gains in bank shares after Finance Minister Arun Jaitley said that the government was working towards bringing in more professionalism in the functioning of banks and improving risk management, amid the backdrop of the recent scams in some public sector banks. Further, steel shares came under pressure after the government hiked royalty on iron and bauxite. The 30-share Sensex ended higher by 46 points at 26,360 and the 50-share Nifty gained 16 points at 7,891. The broader markets outperformed the benchmark indices- BSE Midcap and Smallcap indices gained between 0.3-0.5%.

Index stats

The Market was very volatile in last session. The sartorial indices performed as follow; Consumer Durables [333.41pts], Capital Goods [up 96.55pts], PSU [up 55.37pts], FMCG [up 14.25pts], Auto [down 133.56pts], Healthcare [up 33.78pts], IT [down 12.49Pts], Metals [down 175.65pts], TECK [down 10.05pts], Oil& Gas [up 56.71pts], Power [down 21.23pts], Realty [down 35.77 pts].

World Indices

Index Value % Change

D J l 17039.49 +0.36

S&P 500 1992.37 +0.29

NASDAQ 4532.11 +0.12

EURO STO 3124.56 +1.33

FTSE 100 6777.66 +0.33

Nikkei 225 15585.35 -0.01

Hong Kong 25054.16 +0.24

Top Gainers

Company CMP Change % Chg

PNB 970.80 40.95 4.40

BAJAJ-AUTO 2,271.00 72.20 3.28

BPCL 686.65 19.65 2.95

BANKBARODA 903.00 22.70 2.58

SBIN 2,471.00 56.25 2.33

Top Losers


MCDOWELL-N 2,387.00 68.55 -2.79

DLF 196.20 5.10 -2.53

NTPC 142.10 3.20 -2.20

JINDALSTEL 290.95 6.25 -2.10

SSLT 289.90 5.00 -1.73

Stocks at 52 Week’s high

Symbol Prev. Close Change %Chg

ARVIND 252.15 +0.35 +0.14

AUROPHARMA 810.00 14.20 +1.78

BPCL 686.65 19.65 +2.95

CIPLA 492.1 -0.25 -0.05

KOTAK BANK 1017.40 17.40 +1.74

Indian Indices


NIFTY 7891.10 +15.80 +0.20

SENSEX 26360.11 +45.82 +0.17

Stocks at 52 Week’s Low

Symbol Prev. Close Change %Chg

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DAILY REPORT

22nd

AUGUST 2014


STOCK RECOMMENDATIONS [FUTURE]

1. UNION BANK FUTURE

UNION BANK FUTURE is looking bullish on charts, long build

up has been seen. We advise you to buy it above 221 for

the targets of 229, 238 with the Stop loss of 208

2. IOC FUTURE

IOC Future has given breakout with volume, so seems to be

bullish tomorrow, so we recommend to buy it above 372

for the targets of 378– 384 with the SL of 362

EQUITY CASH & FUTURE

STOCK RECOMMENDATION [CASH]

1. GITANJALI

GITANJALI above 200 day SMA. We advise buying around 74.25 level with strict stop loss 72.75 for the targets of 75.75-77.25

MACRO NEWS

India foreign exchange reserves and banking credit data to be released by the central bank at 5 p.m. (1130 GMT).

RBI has pegged FY15 GDP growth at 5-6 percent with cen-tral estimate at 5.5 percent. The Central Bank also expects inflation to continue on the glide path of 8 percent for FY15. However, it sees upside risks to its 6 percent retail inflation target for 2016.

RBI prescribed tighter norms for non-banking financial companies to lend against shares. Move is aimed at tack-ling volatility in the capital market due to offloading of shares by NBFCs. For loans against shares, financial com-panies will have to maintain loan-to-value ratio of 50%

India's exports are expected to reach USD 750bn by 2018-19 with improvement in the global trade scenario, apex exporters body FIEO said today. Global commerce is showing improvement and it is expected to grow at 4.7 per cent this year and 5.3 percent in 2015.

The Union cabinet's decision to raise the royalty on miner-als is expected to enrich the Odisha government's coffers by Rs 2,000 crore annually. The increase, especially on iron ore, fulfils an old demand from here. Odisha is the top ore producing state.


DAILY REPORT

22nd

AUGUST 2014


FUTURE & OPTION

MOST ACTIVE PUT OPTION

Symbol Op-

tion

Type

Strike

Price

LTP Traded

Volume

(Contracts

)

Open

Interest

NIFTY PE 7,900 46.2 5,55,460 41,73,600

NIFTY PE 7,800 16.65 5,38,416 73,20,100

NIFTY PE 7,700 7.1 2,55,084 76,04,800

BANKNIFTY PE 15,000 13.9 34,030 5,00,825

SBIN PE 2,400 9.7 8,869 3,77,750

SBIN PE 2,450 22.6 4,413 1,16,000

MCDOWELL-N PE 2,400 42 3,277 1,23,500

RELIANCE PE 1,000 12.15 2,371 6,36,500

MOST ACTIVE CALL OPTION

Symbol Op-

tion

Type

Strike

Price

LTP Traded

Volume

(Contracts)

Open

Interest

NIFTY CE 8,000 16 6,51,884 92,28,900

NIFTY CE 7,900 50.6 5,97,143 55,88,650

NIFTY CE 8,100 3.7 1,93,690 38,56,700

BANKNIFTY CE 15,700 146.45 39,498 1,68,600

SBIN CE 2,450 50.15 10,668 4,79,250

RELIANCE CE 1,000 10.5 4,542 10,18,750

IDFC CE 150 2.1 2,716 27,50,000

TCS CE 2,500 10.4 2,471 3,80,500

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 40201 1586.02 44209 1743.60 291485 11507.54 -157.58

INDEX OPTIONS 369061 14482.02 355924 13967.15 1715829 67676.85 514.87

STOCK FUTURES 94428 3477.11 74937 2802.50 1387145 50746.99 674.61

STOCK OPTIONS 68823 2584.40 69683 2622.80 83732 3128.56 -38.40

TOTAL 993.5

INDICES R2 R1 PIVOT S1 S2

NIFTY 7,952.60 7,921.85 7,888.90 7,858.15 7,825.20

BANK NIFTY 15,812.77 15,644.13 15,553.32 15,384.68 15,293.87

STOCKS IN NEWS

Cairn gets environment clearance to hike output from

Rajasthan block.

Axis bank's board approved raising funds through pri-

vate placement.

MRF buys Leyland's Chennai property for Rs 210cr

SpiceJet -Board approves increase in authorised share

capital to Rs 1,500 crore from Rs 1,000 crore

SJVN, NEEPCO, THDCIL oppose plan to merge with

NHPC

NIFTY FUTURE

Nifty Future closed flate in the last trading session. Mar-

ket is range bound . We advise buying above 7940 tgt

7990-8040 SL 7890


DAILY REPORT

22nd

AUGUST 2014


COMMODITY MCX

RECOMMENDATIONS

SILVER

TRADING STRATEGY:

BUY SILVER SEP ABOVE 42190 TGTS 42390,42690 SL 41900

SELL SILVER SEP BELOW 41900 TGTS 41700,41400 SL 42200

GOLD

TRADING STRATEGY:

BUY GOLD OCT ABOVE 27870 TGTS 27950,28050 SL 27780

SELL GOLD OCT BELOW 27700 TGTS 27620,27520 SL 27800

COMMODITY ROUNDUP

Gold declined in early Thursday trade at Zaveri Bazaar here,

following a trend in markets abroad as the yellow metal

went down on an indication of a strengthening American

economy. The US Federal Reserve released the minutes of

its meeting on Wednesday, which showed a modest growth

in the United States’ economy. This restored investors’ con-

fidence towards other asset classes, including the dollar. As

gold has a 'safe haven’ status, it has an inverse relation with

such trends. Its price declined one per cent or Rs 280 per

10g in spot trade at Zaveri Bazaar to close at Rs 28,050 per

10g. lowest price in last 7 weeks. Price was down 2.6 per

cent in last 7 trading days. Spot premiums have become nil,

sometimes negative, over recent months.

Silver prices fell by Rs 211 to Rs 42,130 per kg as specula-

tors engaged in reducing positions largely in tune with a

weakening trend overseas. At MCX silver for delivery in Sep-

tember traded lower by Rs 211, or 0.50%, to Rs 42,130 per

kg in a business turnover of 331 lots. Similarly, the white

metal for delivery in far-month Dec. declined by Rs 181, or

0.42%, to Rs 42,897 per kg in a business volume of 35 lots.

In the international market, silver fell 0.41% to USD 19.37

an ounce in Singapore. A subdued trend in the global mar-

kets as minutes of the Federal Reserve's last meeting sig-

nalled that policy makers may increase borrowing costs ear-

lier than expected amid strengthening dollar, reducing ap-

peal of precious metals, put pressure on silver futures here.

Copper futures fell 0.35% to Rs 432.45 per kg yesterday as

speculators trimmed positions amid a weak trend in global

markets. At MCX, copper for delivery in November declined

by Rs 1.50, or 0.35%, to Rs 432.45 per kg in a business turn-

over of eight lots. The metal for delivery in August fell by Rs

1.25, or 0.29%, to Rs 423.80 per kg in a business volume of

161 lots A weakening trend in base metals at LME on worse

-than-expected manufacturing data from China, the biggest

consumer, mainly put pressure on copper prices at futures

trade here. Globally, copper for delivery in three-months

traded 0.2% lower at $6,995 per tonne at the LME.

Lead fell 0.33% to Rs 136.65 per kg in futures trade today

after participants reduced exposures amid a weak trend

overseas and sluggish domestic demand. At MCX lead for

delivery in September shed 45 paise, or 0.33%, to Rs 136.65

per kg in a business turnover of 45 lots.


DAILY REPORT

22nd

AUGUST 2014


RECOMMENDATIONS

DHANIYA

BUY DHANIYA SEP ABOVE 12030 TGTS 12060,12110 SL

11980

SELL DHANIYA SEP BELOW 10910 TGTS 10880,10830 SL

10960

GUARGUM

BUY GUARGUM OCT ABOVE 18300 TGTS 18350,18450 SL

18210

SELL GUARGUM OCT BELOW 17915 TGTS 17885,17835 SL

17965

NCDEX

NCDEX INDICES

Index Value % Change

Castor Seed 4255 +1.00

Chana 2931 -1.31

Coriander 11927 -0.38

Cotton Seed Oilcake 1825 -0.54

Guarseed 6440 +2.03

Jeera 11265 -0.40

Mustard seed 3444 +0.53

Soy Bean 3411 +0.71

Sugar M Grade 3037 -0.56

Turmeric 6684 +1.52

NCDEX ROUNDUP

The WTO has not accepted the view of the Indian govern-

ment on the raw sugar export subsidy whereby it had stated

that the export subsidy is aimed at cane millers and farmers

and not exporters. According to members of the WTO who

have raised the objection on the scheme, such subsidies

directly or indirectly benefit the exporters as it helps them

in paying their dues owed to the farmers.

Cardamom prices were down by 0.33% to Rs 952.50 per kg

in futures trading yesterday after speculators booked profits

at prevailing higher levels amid slackened demand in the

spot market. Besides, adequate stocks in the physical mar-

ket following increased arrivals from producing belts put

pressure on cardamom prices. At MCX cardamom for deliv-

ery in far-month October declined by Rs 3.20, or 0.33%, to

Rs 952.50 per kg in a business turnover of five lots. In a simi-

lar fashion, the spice for delivery in September shed Rs 2.80,

or 0.29%, to Rs 966.40 per kg in 134 lots. Attributed the fall

in cardamom futures to profit-booking by speculators at

existing levels and fall in demand in the spot market.

Cardamom prices were down by 0.33% to Rs 952.50 per kg

in futures trading yesterday after speculators booked profits

at prevailing higher levels amid slackened demand in the

spot market. Besides, adequate stocks in the physical mar-

ket following increased arrivals from producing belts put

pressure on cardamom prices. At MCX cardamom for deliv-

ery in far-month October declined by Rs 3.20, or 0.33%, to

Rs 952.50 per kg in a business turnover of five lots. .


DAILY REPORT

22nd

AUGUST 2014


USD/INR

BUY USD-INR ABOVE @60.82 TGT 61.02,61.32 SL 60.55

SELL USD-INR BELOW @60.40 TGT 60.20 ,59.90 SL 60.67

GBP/INR

BUY GBP-INR ABOVE @101 TGT 101.20,101.50 SL 100.73

SELL GBP-INR BELOW @100.40 TGT 100.20,100 SL 100.67

CURRENCY ROUNDUP

The Indian rupee weakened slightly on Thursday, snapping a

three-day rising streak, as the dollar rallied broadly after

minutes from the Federal Reserve July meeting suggested

potentially earlier-than-expected rate hikes.

The U.S. dollar traded at 11-month highs against a basket of

major currencies after the Fed's minutes suggested any

strong jobs market recovery could lead it to raise interest

rates earlier than it had been anticipating. However senti-

ment remains broadly supported on strong foreign buying

in Indian markets, especially in debt. Foreign banks bought

debt worth $2.44 billion on Wednesday, their highest since

at least August 2009, clearing house data showed. Foreign

funds have purchased $26.4 billion in debt and equities

combined so far in 2014. The partially convertible rupee

closed at 60.67/68 per dollar compared with 60.61/62 in

the previous session.

Some reassuring data from Germany eased pressure on the

struggling euro on Thursday after speculation of an earlier

rate rise from the Federal Reserve had pushed the dollar to

an 11-month high.

The dollar hovered just below its 2014 peak against a basket

of major currencies early on Friday, with bulls turning cau-

tious ahead of a speech by Federal Reserve Chair Janet

Yellen. Brent was trading below $103 a barrel on Friday,

heading for a second weekly loss as easing geopolitical risks

and higher global oil supply pressured prices. U.S. Treasur-

ies drifted higher on Thursday, showing little reaction to

stronger-than-expected economic data while investors held

out for any developments from the annual central banker

get-together in Jackson Hole, Wyoming.

RBI said on Thursday it accepted all 39 bids for 161.73 bil-

lion rupees at its one-day repo auction, through which it

injects liquidity into the banking system. Indian banks' refi-

nancing with RBI rises to 246.94 billion rupees. Indian banks'

cash balances with RBI rise to 3.26 trln rupees.

RBI Reference Rate

Currency Rate Currency Rate

Rupee- $ 60.7670 Yen-100 58.5300

Euro 80.5590 GBP 100.7213


DAILY REPORT

22nd

AUGUST 2014


CALL REPORT

PERFORMANCE UPDATES

Date Commodity/ Currency

Pairs Contract Strategy Entry Level Target Stop Loss Remark

21/08/14 MCX GOLD OCT. BUY 28280 28360-28460 28200 NOT EXECUTED

21/08/14 MCX GOLD OCT. SELL 28150 28070-27970 28240 BOOKED FULL

PROFIT

21/08/14 MCX SILVER SEP. BUY 42480 42680-42980 42180 NOT EXECUTED

21/08/14 MCX SILVER SEP. SELL 42200 42000-41700 42500 BOOKED PROFIT

21/08/14 NCDEX GUARGUM OCT. BUY 17710 17740-17840 17620 BOOKED FULL

PROFIT

21/08/14 NCDEX GUARGUM OCT. SELL 17500 17450-17350 17590 NOT EXECUTED

21/08/14 NCDEX DHANIYA AUG. BUY 12050 12080-12130 12000 SL TRIGGERED

21/08/14 NCDEX DHANIYA AUG. SELL 11910 11880-11830 11960 SL TRIGGERED

21/08/14 USD/INR AUG. BUY 60.90 61.1-61.5 60.65 NOT EXECUTED

21/08/14 USD/INR AUG. SELL 60.50 60.30-60.00 60.80 NOT EXECUTED

21/08/14 EUR/INR AUG. SELL 80.40 80.20-80.00 80.10 SL TRIGGERED

21/08/14 EUR/INR AUG. BUY 80.80 81.00-81.30 80.50 NOT EXECUTED

Date Scrip

CASH/

FUTURE/

OPTION

Strategy Entry Level Target Stop Loss Remark

21/08/14 NIFTY FUTURE BUY 7925 7975-8025 7875 CALL OPEN

21/08/14 SUNPHARMA FUTURE BUY 851-852 857-862 846 BOOKED FULL

PROFIT

21/08/14 BIOCON FUTURE BUY 485 490-495 480 NOT EXECUTED

21/08/14 SONATA SOFT CASH BUY 93.1 95.1-97.1 91.1 BOOKED FULL

PROFIT

19/08/14 NIFTY FUTURE BUY 7890 7940-7990 7840 BOOKED PROFIT


DAILY REPORT

22nd

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


Documents

Stock market special report by epic research 22th august 2014