epic research special report of 13 jan 2016

DAILY REPORT

13th

JAN. 2016

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Global markets at a glance Asian shares crept off four-year lows on Wednesday as China's efforts to stabilize its currency brought a moment of calm to equity markets, even as oil marked a sorry new milestone under USD 30 a barrel. Japan's Nikkei bounced 1.8 percent from a near-one-year trough. Australian stocks eked out a 0.4 percent rise while South Korea put on 0.7 percent. Gains were guarded with MSCI's broadest index of Asia-Pacific shares outside Japan inching up 0.25 percent and away from its lowest since late 2011. Investors were again watching where the People's Bank of China sets the yuan after two sessions of firm fixes. The central bank has also engineered a huge leap in yuan borrowing rates in Hong Kong, essentially making it prohibitively expensive to short the currency. Previous day Roundup Benchmarks continued southward journey on Tuesday with Nifty falling below psychological 7500-mark intraday, weighed down by banking & financials, technology and metals stocks. Correction in crude oil prices and weak earn-ings caused selling pressure. The Nifty ended at 18-month closing low of 7510.30, down 53.55pts after hitting an in-traday low of 7487.80. The Sensex lost 143.01pts to 24682.03, lowest closing level since May 30, 2014. The broader markets underperformed benchmarks, falling around a percent. The market breadth was also weak as about 2 shares declined for every share advancing on BSE On the global front, Brent crude fell more than 3 percent intraday to hit a low of USD 30.43 a barrel, the lowest level since April 2004, before edging back to 31.42 a barrel. NY-MEX crude was down 1 percent to USD 31.11 a barrel. With this correction, prices fell nearly 20 percent since the start of the year, dragged lower by soaring oversupply, China's weakening economy and stock market turmoil, as well as the strong dollar. European markets extended rally after recovery in crude oil prices. DAX, CAC and FTSE gained 1-2% (at 16 hours IST) while Asian markets barring China ended lower. Nikkei hit one year low, down 2.7% and Hang Seng lost 0.89 percent while Shanghai gained 0.2 percent. Index stats The Market was very volatile in last session. The sartorial indices performed as follow; Consumer Durables [up 17.08pts], Capital Goods [down 25.36Pts], PSU [down 50.82pts], FMCG [down 7.25Pts], Realty [down 20.02pts], Power [down 1.42pts], Auto [down 78.27Pts], Healthcare [up 10.98Pts], IT [down 63.71pts], Metals [down 65.32Pts], TECK [down 46.46pts], Oil& Gas [down 81.41pts].

World Indices

Index Value % Change

D J l 16516.22 +0.72

S&P 500 1938.68 +0.78

NASDAQ 4685.92 +1.03

FTSE 100 5929.24 +0.98

Nikkei 225 17682.33 +2.69

Hong Kong 20186.91 +2.41

Top Gainers

Company CMP Change % Chg

NTPC 145.70 4.10 2.90

WIPRO 547.45 10.00 1.86

M&M 1,182.45 19.85 1.71

ADANIPORTS 237.25 3.20 1.37

HINDUNILVR 818.00 6.25 0.77

Top Losers


IDEA 124.45 5.35 -4.12

PNB 99.50 3.40 -3.30

BANKBARODA 134.70 4.40 -3.16

INDUSINDBK 908.00 28.75 -3.07

HINDALCO 75.55 2.35 -3.02

Stocks at 52 Week’s HIGH

Symbol Prev. Close Change %Chg

BALPHARMA 159.75 14.50 9.98

HERITGFOOD 582.00 8.05 1.40

JETAIRWAYS 774.10 24.95 3.33

VETO 118.80 0.50 0.42

MAJESCO 752.00 -6.25 -0.82

Indian Indices


NIFTY 7510.30 -53.55 -0.71

SENSEX 24682.03 -143.01 -0.58

Stocks at 52 Week’s LOW

Symbol Prev. Close Change %Chg

ALBK 61.60 -2.10 -3.30

AXISBANK 406.75 -10.45 -2.50

BAJAJELEC 200.00 1.50 0.76

ICICIBANK 238.10 -1.35 -0.56

IDEA 124.45 -5.35 -4.12

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DAILY REPORT

13th

JAN. 2016


STOCK RECOMMENDATION [CASH] 3. NIITLTD

NIITLTD given reversal sign on daily chart in last two ses-sion it got support from 100DMA at 86.50 & at last session it finished at 94.35 where 95.50 is resistance so buy it above 96 for target of 98 100 with stop loss of 94 MACRO NEWS

IIP for the month of Nov has contracted 3.2% versus 9.8% growth in Oct, while the CPI for the month of De-cember has risen to come in at 5.6 percent compared with 5.41 percent reported for the month of November.

L&T jumps 2% on Credit Suisse's upgrade to outperform

Federal Bank Q3 profit tanks 38%, asset quality weakens

SBI to monetise non-core assets, list few units over 3 yrs

JLR to launch all-new Jaguar XE in India next month

Low fuel prices, discounts push up passenger vehicle sales in December

IDFC Bank buys 10 per cent stake in ASA International India for Rs 8.5 cr

Bajaj Corporation to go for acquisitions, tap rural market for growth

Textiles Ministry to soon seek Cabinet nod on new policy

Centre asks states to reduce VAT on jet fuel

Fertiliser output to hit 245 lakh mt this fiscal

Govt to review status of 32 coal blocks next week

Torrent Pharma launches Adalimumab biosimilar in India

Aurobindo Pharma receives USFDA nod for generic drug

Cadila Healthcare gets EIR report from USFDA

IndusInd Bank Q3 profit rises 30% to Rs 581 cr, provi-sions high

TCS Q3 profit rises 0.9%, revenue misses estimates for 6th straight quarter

DCB Bank Q3 Net Profit At `41.2 Cr Vs `42.5 Cr (YoY)

Jaypee Group (ToI) Group to give 5300 flats in 2 months

STOCK RECOMMENDATIONS [FUTURE] 1. BHARATFORGE [FUTURE]

On Daily chart BHARATFORGE Future broke important sup-port of 810 but in last it finished at 815.50 since below 810 it has been got support from 770 in last December since the last daily candle it made dark bearish so we advise to sell it below 805 with stop loss of 816 for target of 795 780. 2. WOCKHARDT [FUTURE]

WOCKPHARMA Future given trend line breakout on daily chart & in volatile market it finished around 4% & the vol-ume is more then to average since it has resistance around 1660 so buy it in decline around 1610-1615 for target of 1630 1650 with stop loss of 1594.


DAILY REPORT

13th

JAN. 2016


FUTURE & OPTION

MOST ACTIVE CALL OPTION

Symbol Op-

tion

Type

Strike

Price

LTP Traded

Volume

(Contracts)

Open

Interest

NIFTY CE 7,700 42.90 2,69,627 59,08,350

NIFTY CE 7,800 21.70 1,95,568 55,89,225

BANKNIFTY CE 16,500 62.60 75,730 6,77,790

TCS CE 2,400 22.45 6,309 4,65,200

TVS CE 2,500 6.50 4,431 4,06,000

RELIANCE CE 1,100 10.60 3,722 10,32,500

SBIN CE 210 2.55 3,460 39,36,000

LT CE 1,200 24.30 2,860 3,86,100

MOST ACTIVE PUT OPTION

Symbol Op-

tion

Type

Strike

Price

LTP Traded

Volume

(Contracts)

Open

Interest

NIFTY PE 7,500 96.25 2,56,523 62,12,175

NIFTY PE 7,400 64.90 1,85,707 48,29,550

BANKNIFTY PE 15,500 181.10 62,071 6,57,960

TVS PE 2,300 45.50 5,815 3,86,800

TVS PE 2,200 20.00 5,332 3,98,400

INDUSIND PE 900 15.15 2,772 2,25,000

SBIN PE 200 5.70 2,527 23,66,000

RELIANCE PE 1,040 23.00 1,921 3,24,500

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 27037 1425.83 31245 1674.29 285404 15579.84 -248.47

INDEX OPTIONS 397503 21850.91 395763 21866.27 1251593 69627.19 -15.36

STOCK FUTURES 69729 3500.69 78853 3908.58 1066725 50343.34 -407.89

STOCK OPTIONS 53880 2627.89 53575 2613.22 66108 3119.15 14.67

TOTAL -657.05

STOCKS IN NEWS Larsen & Toubro bags new orders worth Rs 1,247 cr Co offers to buy back bonds worth $500mn: UltraTech considers buying stake in Kenya’s ARM Ce-

ment Reliance Group To Set Up Defence & Aerospace Parks

In MP With `4,250 Cr Invst IVRCL allots 1.94 Lk Shares To CDR Lender SREI Equip-

ment Fin At `24.39/Sh Tata Power raises `500 Cr Through NCD Issue

Crompton Greaves to Power Offshore Wind Farm In The Baltic Sea

NIFTY FUTURE

After opening almost flat NIFTY in last trading session remained bearish all the day and in later hours consoli-dated near very crucial support of 7500. Though it has not closed with a bullish candlestick but buying is sug-gested for the indicators and support line suggest nifty may take reversal. So buy only above 7615 for the tar-gets of 7715 and 7850 with strict stop loss of 7450

INDICES R2 R1 PIVOT S1 S2

BANK NIFTY 7,628.00 7,569.00 7,528.00 7,469.00 7,428.00

NIFTY 16,220.00 15,977.00 15,838.00 15,595.00 15,456.00


DAILY REPORT

13th

JAN. 2016


RECOMMENDATIONS

GOLD

TRADING STRATEGY:

BUY GOLD ABOVE 25800 TARGET 25870 25960 SL 25700

SELL GOLD BELOW 25600 TARGET 25530 25220 SL 2700

SILVER

TRADING STRATEGY:

BUY SILVER ABOVE 33450 TARGET 33650 33950 SL 33150

SELL SILVER BELOW 33150 TARGET 32950 32650 SL 33450

COMMODITY ROUNDUP

WTI Crude oil futures are striving hard to edge up after the battering in last few days. Equities in Europe soared for the first time in last one week on the back of bargain buying and on hopes of a further monetary stimulus from ECB. The commodity rose by more than a dollar amid strong gains in equities and currently trades at $31.31 per barrel, down 0.32% on the day. MCX Crude oil futures also rose following this and broke into green. The counter is quoting at Rs 2102 per barrel, up0.62% on the day. Meanwhile, oil traders are also worried that the massive collapse in oil over last year and half could push some players in US oil industry into bankruptcy. There are also talks that US shale oil output would not be viable if the commodity continues to stay around $30per barrel mark. In fact, the global oil and gas industry will reduce capital spending and work toward leaner budgets in 2016

MCX Gold tumbled on profit selling as the global financial markets tried to come out of the massive bearish grip that has so far kept the sentiments extremely nervy in the New Year. Stocks eked out some gains after testing their lowest levels in months. Good buying emerged in Europe as traders eyed some stabilization in Chinese markets. Markets have come to a realization that slowing Chinese economic growth is here to stay and some bargain buying was witnessed in Asian equities today.

European stocks have also started on an upbeat note with strong gains emerging in DAX and CAC. Gold witnessed a further correction following this as a drop from two month highs above $1100 per ounce extended. A key psychological barrier has also been broken once the counter fell below $1100 level. COMEX Gold is quoting at $1087 per ounce right now, down 0.84% on the day. MCX Gold futures are trading at Rs 25702 per 10 grams, down 0.65% on the day. The counter attempted to edge up near Rs 26K unsuccess-fully earlier in the session.

Indian steel imports fell for a second month after the gov-ernment imposed taxes and anti-dumping duties on some products to protect local mills from cheaper overseas sup-plies. Inbound shipments dropped 1.4 per cent to 941,000 tonnes in December from a year ago, according to provi-sional data from the steel ministry. For the nine months through December, imports climbed 29 per cent to 8.39 million tonnes.


DAILY REPORT

13th

JAN. 2016


NCDEX

NCDEX INDICES

Index Value % Change

CASTOR SEED 3496 -1.91

CHANA 4873 -0.12

CORIANDER 7015 -1.86

COTTON SEED 1985 -1.29

GUAR SEED 3263 +3.95

JEERA 13550 +0.86

MUSTARDSEED 4374 -1.17

SOY BEAN 3626 +0.86

SUGAR M GRADE 3174 -0.16

TURMERIC 9832 -1.68

RECOMMENDATIONS

DHANIYA

BUY CORIANDER APR ABOVE 7515 TARGET 7560 7710 SL

BELOW 7450

SELL CORIANDER APR BELOW 7410 TARGET 7365 7215 SL

ABOVE 7475

GUARGUM

BUY GUARGUM FEB ABOVE 6260 TARGET 6310 6380 SL

BELOW 6200

SELL GUARGUM FEB BELOW 6090 TARGET 6040 5970 SL

ABOVE 6150

NCDEX Chana futures are witnessing continued recovery from one month low. The counter had gained after testing Rs 4316 per quintal in last session and witnessed steady trades after falling around Rs 4380 per quintal mark in in-traday moves. The supplies in ready markets are thin and not much of a pickup is expected in the arrivals in coming weeks. Sowing is continuing at a laggard pace at the overall acreage under Chana stood at 81.08 Lakh Hectares as on 1 January 2016, down 4.7% compared to the average area in the corresponding year. Chana futures on the NCDEX have dropped in last few days after coming off a high around Rs 4550 per quintal. The counter is currently trading at Rs 4405 per quintal, almost unchanged on the day. Commercial purchases of raw jute by government-controlled Jute Corporation of India (JCI) is set to escalate prices further. Raw jute prices have already touched an un-precedented high of Rs 54,000 a tonne, twice the level of Rs 27,000 per tonne in the year-ago period. Mill owners and traders feel commercial intervention by JCI would spike raw jute prices to the level of Rs 60000 a tonne. Cardamom prices rose by Rs 5.20 or 0.64% to Rs 811 per kg in futures market after speculators enlarged their positions supported by good buying in the spot markets. At the Multi Commodity Exchange, cardamom for delivery in February rose by Rs 5.20 or 0.64% to Rs 811 per kg in a business turn-over of 107 lots. In a similar fashion, spice for delivery in far-month March gained Rs 4.10 or 0.50% to Rs 811.90 per kg in 3 lots. Besides rise in demand in the spot markets, tight supplies from producing regions mainly helped cardamom prices to trade higher at futures trade.


DAILY REPORT

13th

JAN. 2016


RBI Reference Rate

Currency Rate Currency Rate

Rupee- $ 66.8905 Yen-100 56.9100

Euro 72.7434 GBP 97.1518

CURRENCY

USD/INR

BUY USD/INR JAN ABOVE 67.1 TARGET 67.23 67.38 SL BE-

LOW 66.9

SELL USD/INR JAN BELOW 66.98 TARGET 66.85 66.7 SL

ABOVE 67.18

EUR/INR

BUY EUR/INR JAN ABOVE 72.9 TARGET 73.05 73.25 SL BE-

LOW 72.7

SELL EUR/INR JAN BELOW 72.7 TARGET 72.55 72.35 SL

ABOVE 72.9

CURRENCY MARKET UPDATES: The American currency edged slightly higher against a bas-ket of currencies on Tuesday, as concerns over ongoing volatility in China and declining oil prices continued to dominate market sentiment. Investors remained con-cerned over the extent of the economic slowdown in China, following a steep selloff in Chinese stocks and a re-newed devaluation in the yuan since the start of the year. The European unit was little changed at 1.0850 versus the greenback. USD/JPY was steady at 117.82, not far from Monday's more than four-month trough of 116.68. As against the pound, the dollar was higher with GBP/USD down 0.54% at fresh five-year lows of 1.4466. The U.K. Of-fice for National Statistics said industrial production fell 0.7% in November from the previous month, compared with forecasts for a flat reading. It was the biggest drop since January 2013. Manufacturing production fell 0.4% compared with October, well below forecasts for a 0.1% increase. On a year-over-year basis, manufacturing produc-tion contracted by 1.2%, its fourth consecutive month of contraction. Sterling also remained under heavy selling pressure amid concerns that the Bank of England will signal that rates are likely to remain on hold for longer after its policy meeting on Thursday. The Indian rupee on Tuesday weakened against the US dol-lar, after local equity markets fell over 140 points ahead of data on industrial output and retail inflation, expected af-ter market hours. The rupee closed at 66.87 a dollar, down 0.09% from its previous close of 66.81. The local currency opened at 66.83 a dollar and touched a low of 66.97—a level last seen on 15 December. The rupee has fallen 6.54% during this fiscal year. Asian currencies closed lower. Malaysian ringgit was down 0.65%, Philippines peso 0.57%, Indonesian rupiah 0.35%, Taiwan dollar 0.25%, Thai baht 0.16%, Singapore dollar 0.15%, China renminbi 0.1%. However, Hong Kong dollar and China offshore spot were up 0.05% each.


DAILY REPORT

13th

JAN. 2016


Date Commodity/ Currency

Pairs Contract Strategy Entry Level Target Stop Loss Remark

13/01/16 NCDEX DHANIYA APR. BUY 7680 7725-7875 7615 NOT EXECUTED

13/01/16 NCDEX DHANIYA APR. SELL 7600 7555-7405 7665 BOOKED FULL PROFIT

13/01/16 NCDEX GUARGUM FEB. BUY 6100 6150-6220 6040 BOOKED PROFIT

13/01/16 NCDEX GUARGUM FEB. SELL 5940 5890-5820 6000 BOOKED PROFIT

13/01/16 MCX GOLD FEB. BUY 25950 26030-26130 25850 NOT EXECUTED

13/01/16 MCX GOLD FEB. SELL 25850 25770-25670 25950 BOOKED PROFIT

13/01/16 MCX SILVER MAR. BUY 33600 33800-34100 33300 NOT EXECUTED

13/01/16 MCX SILVER MAR. SELL 33300 33450-33150 33600 BOOKED PROFIT

Date Scrip

CASH/

FUTURE/

OPTION

Strategy Entry Level Target Stop Loss Remark

13/01/16 NIFTY FUTURE BUY 7570 7650-7800 7450 CLL OPEN

13/01/16 COLPAL FUTURE BUY 920 930-943 905 NOT EXECUTED

13/01/16 DLF FUTURE SELL 114 115.5-117 106 NOT EXECUTED

13/01/16 LAMBODHARA CASH SELL 199 196-190 202 NOT EXECUTED

11/01/16 NIFTY FUTURE SELL 7550 7650-7750 7400 CALL OPEN


DAILY REPORT

13th

JAN. 2016


NEXT WEEK'S U.S. ECONOMIC REPORTS

ECONOMIC CALENDAR

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Disclaimer

TIME REPORT PERIOD ACTUAL CONSENSUS

FORECAST PREVIOUS

MONDAY, JAN. 11

NONE SCHEDULED

TUESDAY, JAN. 12

6 AM NFIB SMALL BUSINESS INDEX DEC. -- 94.8

10 AM JOB OPENINGS NOV. 5.4 MLN

WEDNESDAY, JAN. 13

2 PM BEIGE BOOK

2 PM FEDERAL BUDGET DEC. -- $2 BLN

THURSDAY, JAN. 14

8:30 AM WEEKLY JOBLESS CLAIMS JAN. 9 N/A N/A

8:30 AM IMPORT PRICE INDEX DEC. -- -0.2%

FRIDAY, JAN. 15

8:30 AM RETAIL SALES DEC. -- 0.2%

8:30 AM RETAIL SALES EX-AUTOS DEC. -- 0.4%

8:30 AM PRODUCER PRICE INDEX DEC. -- 0.3%

8:30 AM EMPIRE STATE INDEX JAN. -- -4.6

9:15 AM INDUSTRIAL PRODUCTION DEC. -- -0.6%

9:15 AM CAPACITY UTILIZATION DEC. -- 77.0%

10 AM CONSUMER SENTIMENT JAN. -- 92.6

10 AM BUSINESS INVENTORIES NOV. -- 0.0%


epic research special report of 13 jan 2016

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