epic research special report of 15 jan 2016

DAILY REPORT

15th

JAN. 2016

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Global markets at a glance

Asian stocks won a temporary reprieve on Friday after oil prices snapped their eight-day rout, helping to lift battered energy shares even as investors remained on edge as they looked for signs of stability in China's economy and its vola-tile markets. MSCI's broadest index of Asia-Pacific shares outside Japan, which hit a four-year low on Thursday, rose 0.5 percent while Japan's Nikkei jumped 1.8%. Oil prices rebounded on Thursday, with international benchmark Brent futures rising 2.4% to USD 31.03 a barrel, recovering from its 12-year low of USD 29.73 hit earlier in the day.

The S&P 500 gained 1.7% on Thursday, led by a 4.5% rise in the energy sector. The markets was also helped by com-ments from St. Louis Federal Reserve President James Bul-lard that the continued rout on global oil markets has caused a "worrisome" drop in US inflation expectations that may make further rate hikes hard to justify.

European equities slumped to a 13-month trough on Thurs-day, with the automobile sector leading the market lower as Renault tumbled following inspections at three of its sites in an emissions probe. The pan-European FTSEurofirst 300 index ended 1.5% weaker at 1,334.36 points after fal-ling as far as 1,309.74, its lowest level since December 2014. However, the index closed off its intra-day lows after a recovery in crude oil and metals prices boosted commodi-ties-related stocks.

Previous day Roundup

It was a volatile session for the market amid global turmoil led by crash in crude oil prices & Jakarta blast and Infosys' strong earnings report on Thursday. The market lost 1.5 percent in early trade on weak global cues after Brent crude hit fresh 12-year low, but Infosys' rally and short cov-ering in late morning helped it sharply recover from day's losses. The BSE Sensex touched an intraday low of 24473.22, before closing down 81.14 points at 24772.97. The NSE declined 25.60 points to 7536.80, dragged by banking & financials, infra, auto and metals stocks.

Index stats

The Market was very volatile in last session. The sartorial indices performed as follow; Consumer Durables [down 129.04pts], Capital Goods [down 230.11Pts], PSU [down 42.41pts], FMCG [up 11.84Pts], Realty [up 18.79pts], Power [up 25.21pts], Auto [down 222.18Pts], Healthcare [up 3.36Pts], IT [up 206.24pts], Metals [down 83.07Pts], TECK [up 89.19pts], Oil& Gas [down 19.75pts].

World Indices

Index Value % Change

D J l 16379.05 +1.41

S&P 500 1921.84 +1.67

NASDAQ 4615.00 +1.97

FTSE 100 5918.23 -0.72

Nikkei 225 17367.22 +0.73

Hong Kong 19705.13 -0.57

Top Gainers

Company CMP Change % Chg

INFY 1,137.50 54.10 4.99

LUPIN 1,722.00 55.85 3.35

ASIANPAINT 889.65 21.10 2.43

TECHM 515.00 10.55 2.09

BPCL 910.00 14.10 1.57

Top Losers


AXISBANK 389.80 16.90 -4.16

BHEL 143.50 4.70 -3.17

TATAMOTORS 353.80 10.80 -2.96

TATASTEEL 239.45 7.15 -2.90

SBIN 195.85 5.05 -2.51

Stocks at 52 Week’s HIGH

Symbol Prev. Close Change %Chg

- -

Indian Indices


NIFTY 7536.80 -25.60 -0.34

SENSEX 24772.97 -81.14 -0.33

Stocks at 52 Week’s LOW

Symbol Prev. Close Change %Chg

ABAN 195.50 -6.40 -3.17

ACC 1,270.00 -11.95 -0.93

AXISBANK 389.80 -16.90 -4.16

BANKBARODA 129.95 -2.15 -1.63

BHARTIARTL 309.00 0.40 0.13

BHEL 143.50 -4.70 -3.17

CAIRN 127.15 1.55 1.23

IDEA 119.00 -2.10 -1.73

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DAILY REPORT

15th

JAN. 2016


STOCK RECOMMENDATION [CASH] 3. ABAN

ABAN again made new 52 week low of 194 on chart there is not support near this level and after bounce back it faced selling if we see Fibonacci retracment then here it may test 175 level so sell it below 194 for target of 191 185 180 with stop loss of 196.50 MACRO NEWS WPI remained in negative territory for the 14th straight

month but the intensity of the contraction eased, with Dec WPI coming in at -0.73% YoY, vs -1.99%.

Results today: HUL, Zee Entertainment, Gruh Finance, NIITTech, Pipavav Defence, Indian Hotels, Tide Water Oil

Infosys Q3 surprises, ups FY16 $ revenue guidance, net rises 2%.

Brent falls to another 12-year low on oversupply gloom EU warns Greece not to 'play games' with IMF FIPB okays 5 FDI proposals of Rs 6050cr, Cadila gets nod Confident of reaching $20bn revenue by 2020. Governor Rajan seeks changes in work culture at RBI Govt to present Union Budget on Feb 29: Jayant Sinha Government may allow power companies to index rupee

debt with global currencies PSU oil companies plan mega refinery on west coast Steel companies need minimum import price, debt re-

cast. JSPL puts on hold selling non-core assets, expansion plan

Piramal Enterprises in talks to sell 20% stake in over-the-counter drugs business

Pharma sector can touch Rs 4 lakh crore by 2020 RBI wants banks to provide for 150 bad accounts by

March 2016 Jindal Steel & Power cuts staff’s wages by 10 percent Petronet to add Rs 25,000cr to its topline in next 3yrs Federal Bank sells Essar Oil debt worth Rs 70 crore to

Edelweiss Asset Reconstruction

STOCK RECOMMENDATIONS [FUTURE] 1. LUPIN [FUTURE]

LUPIN Future create bullish engulfing pattern on daily chart & it is making lower lows but it getting resistance at 1725 so we advise to buy it above 1725 above resistance for target of 1750 1780 with stop loss of 1693. 2. APOLLO TYRE [FUTURE]

APOLLO TYRE getting strong support around 144 here it is getting too much volatility before last session it made high of 152.90 & low of 145 but in last session around 149 it faced selling pressure for that it create inverted hammer in bottom so we advise to sell it below 145 for target of 143 140 with stop loss of 146.50.


DAILY REPORT

15th

JAN. 2016


FUTURE & OPTION

MOST ACTIVE CALL OPTION

Symbol Op-

tion

Type

Strike

Price

LTP Traded

Volume

(Contracts)

Open

Interest

NIFTY CE 7,600 74.50 4,08,484 37,64,100

NIFTY CE 7,800 20.20 3,21,251 52,97,175

BANKNIFTY CE 16,000 129.00 91,220 5,54,640

INFY CE 1,120 33.00 7,883 2,89,000

RELIANCE CE 1,100 17.20 6,202 14,68,000

RELIANCE CE 1,080 23.90 5,299 9,44,500

LT CE 1,200 11.00 3,853 6,33,000

SBIN CE 200 4.30 3,739 31,24,000

MOST ACTIVE PUT OPTION

Symbol Op-

tion

Type

Strike

Price

LTP Traded

Volume

(Contracts)

Open

Interest

NIFTY PE 7,400 56.05 3,84,284 52,87,275

NIFTY PE 7,500 88.70 3,36,438 59,47,800

BANKNIFTY PE 15,000 117.00 76,350 4,45,260

INFY PE 1,100 8.95 13,777 10,89,500

INFY PE 1,060 3.40 8,601 14,55,000

INFY PE 1,000 1.55 6,835 11,94,500

RELIANCE PE 1,000 7.05 2,950 9,75,500

RELIANCE PE 1,040 18.90 2,936 4,94,500

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 35798 1922.46 37278 2027.43 290326 15775.13 -104.97

INDEX OPTIONS 852382 46860.84 842702 46483.18 1325551 73689.07 377.66

STOCK FUTURES 96503 4664.61 89607 4288.50 1093836 50774.31 376.11

STOCK OPTIONS 96724 4771.31 97881 4841.22 84103 3971.17 -69.91

TOTAL 578.89

STOCKS IN NEWS Maruti Suzuki launches Alto range with driver side air-

bag SBI enters wealth management space; opens branch

for start-ups ICICI Bank crosses Rs 1 lakh crore mortgage lending

milestone Government changes its mind, to retain over 52% in

IDBI Bank RCom tower sale deal with Tillman Global extended by

15 days NIFTY FUTURE

Nifty with a wide gap down opening recovered soon, taking support form the crucial level of 7450, it closed the candle showing that market may repeat the scenario again. So we advise you to buy Nifty from around 7500 for the targets of 7600 and 7700 with stop loss of 7400

INDICES R2 R1 PIVOT S1 S2

NIFTY 7,690.00 7,528.00 7,528.00 7,451.00 7,366.00

BANK NIFTY 15,973.00 15,791.00 15,622.00 15,440.00 15,271.00


DAILY REPORT

15th

JAN. 2016


RECOMMENDATIONS

GOLD

TRADING STRATEGY:

BUY GOLD ABOVE 25600 TARGET 25670 25770 SL 25500

SELL GOLD BELOW 25500 TARGET 25430 25330 SL 25600

SILVER

TRADING STRATEGY:

BUY SILVER ABOVE 34000 TARGET 34200 34500 SL 33700

SELL SILVER BELOW 33600 TARGET 33400 33100 SL 33900

COMMODITY ROUNDUP Consumption growth, primarily from the industrial sector, will cause natural gas spot prices to jump 21.5% in 2017, according to the latest Short-Term Energy Outlook (STEO) from the US Energy Information Administration (EIA). Fore-cast Henry Hub spot prices are expected to average $2.65 per million BTU (MMBTU) in 2016, and $3.22/MMBTU in 2017, compared with an average $2.63/MMBTU in 2015. Although annual average prices for 2015 and 2016 are simi-lar, prices are forecast to rise through much of 2016, from prices that began the year near $2/MMBTU. EIA expects production growth will be relatively flat in 2016, partly in response to lower prices and declining rig activity. With higher prices in 2017, and as new consumption and more export capacity comes online, EIA projects production will pick up slightly. The information administration’s fore-cast of US total natural gas consumption averages 76.6 bil-lion cubic feet/day (Bcf/d) in 2016, and 77.2 Bcf/d in 2017, compared with 75.5 Bcf/d in 2015. Crude is witnessing continued bargain buying though a fickle undertone in equities is capping the upside. Oil prices fell today after a rise in weekly US crude inventories fed into bearish sentiment about the deepening global supply glut that has brought oil prices close to 12-year lows. WTI Crude futures recovered after the overnight drop and edged up towards $31 mark in Asia. The commodity is currently trad-ing at $30.61 per barrel, up 0.43% on the day. MCX Crude oil futures are trading at Rs 2061 per barrel, up about half a percent on the day. US crude inventories rose by 234,000 barrels in the last week, compared with expectations for an increase of 2.5 million barrels, according to the govern-ment's Energy Information Administration. At 482.6 million barrels, US crude oil inventories remain near levels not seen for this time of year in at least the last 80 years. Nickel prices were up by over 1% at Rs 551.30 per kg in fu-tures trade today on pick up in demand from consuming industries in the spot market amid a firm trend in base met-als overseas. At the Multi Commodity Exchange, nickel for delivery this month moved up by Rs 5.60, or 1.03%, to Rs 551.30 per kg in a business turnover of 1,849 lots. Also, the metal for delivery in February gained Rs 5.30, or 0.96% to Rs 557.30 per kg in 84 lots. Besides pick-up in domestic de-mand from alloy-makers, a firm trend in copper and other base metals in the global market after positive Chinese trade data that showed exports unexpectedly rose in De-cember, led to the rise in nickel prices at futures trade here.


DAILY REPORT

15th

JAN. 2016


NCDEX

NCDEX INDICES

Index Value % Change

CASTOR SEED 3419 -1.81

CHANA 4861 -0.21

CORIANDER 6565 -3.85

COTTON SEED 2013 -1.32

GUAR SEED 3222 -1.83

JEERA 13600 -0.48

MUSTARDSEED 4468 +0.25

SOY BEAN 3686 -0.32

SUGAR M GRADE 3216 -0.06

TURMERIC 9808 -0.89

RECOMMENDATIONS

DHANIYA

BUY CORIANDER APR ABOVE 7355 TARGET 7400 7550 SL

BELOW 7290

SELL CORIANDER APR BELOW 7030 TARGET 6985 6835 SL

ABOVE 7095

GUARGUM

BUY GUARGUM FEB ABOVE 6250 TARGET 6300 6370 SL

BELOW 6190

SELL GUARGUM FEB BELOW 6060 TARGET 6010 5940 SL

ABOVE 6120

Amid profit-booking by speculators at current lev-els,cardamom prices eased by 1.81% to Rs 758.60 per kg in futures trade. Slackened demand in the spot marketsinfluenced cardamom prices. At the MCX car-damom for delivery in far-month Feb fell by Rs 14, or 1.81%, to Rs 758.60 per kg in a business turnover of 473 lots. Likewise, the spice for delivery in March traded lower by Rs 13.20, or 1.70%, to Rs 761.40 per kg in 102 lots. Be-sides profit-booking by speculators at existing levels, fall in demand in the spot markets against adequate stocks posi-tion mainly led to fall in cardamom prices at futures trade Recovery was seen in mustard seed futures despite of weakness in other oilseeds due to possibility of weak pro-duction estimates in the current year. The total mustard seed production in the current year is project to be around 48-50 lakh tonnes due to weak sowing acreage and warm weather condition in major growing states. Moreover, the overall stocks are currently reported 3 lakh tonnes against 5-5.50 lakh tonnes of the last year in the same period. The NCDEX April futures augmented by 0.27 percent to close at Rs 4151 per quintal today. The NCDEX futures reduced 7.99 percent in OI indicating short covering by traders. Crude palm oil prices rose by 0.46% to Rs 429.70 per 10 kg in futures market as speculators indulged in creating fresh positions coupled with rising demand in the spot markets. At the Multi Commodity Exchange, crude palm oil for deliv-ery in February rose Rs 2, or 0.46%, to Rs 429.20 per 10 kg in a business turnover of 252 lots. Similarly, oil for delivery in January edged up by Rs 1.90, or 0.45%, to Rs 421.90 per 10 kg in 159 lots. Fresh positions built-up by speculators supported by rising demand in the spot markets, mainly led to the rise in crude palm oil prices at the futures trade.


DAILY REPORT

15th

JAN. 2016


RBI Reference Rate

Currency Rate Currency Rate

Rupee- $ 67.0950 Yen-100 57.0100

Euro 72.9725 GBP 96.6369

CURRENCY

USD/INR

BUY USD/INR JAN ABOVE 67.4 TARGET 67.53 67.68 SL BE-

LOW 67.2

SELL USD/INR JAN BELOW 67.28 TARGET 67.15 67 SL ABOVE

67.48

EUR/INR

BUY EUR/INR JAN ABOVE 73.65 TARGET 73.8 74 SL BELOW

73.45

SELL EUR/INR JAN BELOW 73.45 TARGET 73.3 73.1 SL ABOVE

73.65

CURRENCY MARKET UPDATES:

The Indian rupee tumbled by 44 paise to more than 2-year low at 67.29 against the American currency on fresh dollar demand from banks and importers amidst volatile equities. The Indian unit resumed sharply lower at 66.98 per dollar against yesterday’s closing level of 66.85 at the Interbank Forex market and dropped fur-ther to 2-year low to 67.30 before concluding at 67.29, showing a loss of 44 paise or 0.66%. The rupee had last settled at 67.63 per dollar on September 3, 2013 and intra-day trade at 68.62 on September 4, 2013. It moved in a wide range of 67.30 and 66.98 during the day.

In Asian market, the yen was slightly higher against the dollar and other currencies, as investors bought the per-ceived safety of the Japanese currency following re-newed volatility in stocks.

The dollar index was down 0.17 per cent against a bas-ket of six currencies in the late afternoon trade. The US dollar edged lower against the euro and yen yesterday, as a rally in oil prices faded and the Federal Reserves Beige Book painted mixed picture of the US economy. Brent oil stayed below USD 30 a barrel as prices re-mained weak in Asia trade after the US crude and fuel inventories rose, adding further anxiety over a global supply glut.

In forward market, premium for dollar dropped further on persistent receiving's by exporters. The benchmark six-month premium payable in June moved down fur-ther to 189-191 paise from 193-195 paise previously and forward December 2016 contract also fell to 398-400 paise from 403-405 paise yesterday.

In cross-currency trades, the rupee fell against the pound sterling to finish at 96.81 from overnight close of 96.44 and also dropped against the euro to conclude at 73.57 from 72.37. The domestic currency fell against the Japanese yen to settle at 57.24 from 56.56 per 100 yen yesterday.


DAILY REPORT

15th

JAN. 2016


Date Commodity/ Currency

Pairs Contract Strategy Entry Level Target Stop Loss Remark

14/01/16 NCDEX DHANIYA APR. BUY 7380 7425-7575 7315 NOT EXECUTED

14/01/16 NCDEX DHANIYA APR. SELL 7250 7205-7055 7315 BOOKED FULL PROFIT

14/01/16 NCDEX GUARGUM FEB. BUY 630 6360-6430 6250 NOT EXECUTED

14/01/16 NCDEX GUARGUM FEB. SELL 6170 6120-6050 6230 NOT EXECUTED

14/01/16 MCX GOLD FEB. BUY 25800 25870-25960 25700 NOT EXECUTED

14/01/16 MCX GOLD FEB. SELL 25600 25530-25220 25700 BOOKED FULL PROFIT

14/01/16 MCX SILVER MAR. BUY 34200 34400-34700 33900 SL TRIGGERED

14/01/16 MCX SILVER MAR. SELL 33800 33600-33300 34100 BOOKED PROFIT

Date Scrip

CASH/

FUTURE/

OPTION

Strategy Entry Level Target Stop Loss Remark

14/01/16 NIFTY FUTURE BUY 7615 7715-7850 7450 NOT EXECUTED

14/01/16 BAJAJAUTO FUTURE BUY 2382 2410-2440 2349 NOT EXECUTED

14/01/16 COLPAL FUTURE BUY 925-927 940-955 910 BOOKED PROFIT

14/01/16 ESSDEE CASH BUY 182 186-195 178 NOT EXECUTED

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


DAILY REPORT

15th

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 15 jan 2016

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