stock market special report by epic research 5th august 2014

DAILY REPORT

05th AUGUST 2014

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Global markets at a glance

Asian stocks slipped on Tuesday after a survey showed China's services sector growth fell to a record low, pouring cold water on the positive market mood following upbeat U.S. earnings and relief over Portugal's rescue of its largest bank. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.5 percent, turning negative after the China services purchasing managers' index(PMI) compiled by HSBC/Markit fell to 50.0 in July from a 15-month high of 53.1 in June. Nikkei fell 0.2 percent and mainland Chinese shares slipped 0.5 percent from a seven-month high hit just before the data.

A drop in the German and Swiss stock exchanges weighed on European shares on Monday, as the economic impact of sanctions against Russia offset some relief over a Banco Espirito Santo rescue deal. The DAX underperformed the broader pan-European FTSEurofirst 300 index, which fell 0.2 percent to 1,330.12 points while the euro zone's blue-chip Euro STOXX 50 index fell 0.1 percent to 3,070.46 points.

Wall Street Update

U.S. Stocks closed higher on Monday, lifted in a late rally driven by earnings from Warren Buffett's Berkshire Hatha-way and broad gains across most sectors that helped the S&P 500 rebound from its largest weekly drop since 2012. The Dow Jones industrial average .DJI rose 75.91 points, or 0.46 percent, to end at 16,569.28. The S&P 500 .SPX gained 13.84 points, or 0.72 percent, to 1,938.99. The Nasdaq Composite .IXIC added 31.25 points, or 0.72 per-cent, to close at 4,383.89.

Previous day Roundup

As the market continued its consolidation, technology, banks and auto stocked drove the indices ahead of RBI monetray policy. The Sensex ended up 242.32 points or 1 percent at 25723.16 and the Nifty was up 81.05 points or 1 percent at 7683.65. About 1804 shares have advanced, 1113 shares declined, and 109 shares are unchanged.

Index stats

The Market was very volatile in last session. The sartorial indices performed as follow; Consumer Durables [up 264.63pts], Capital Goods [up 226.11pts], PSU [up 98.81pts], FMCG [up 80.28pts], Auto [up 228.63pts], Healthcare [down 12.44pts], IT [up 199.51Pts], Metals [up 185.27pts], TECK [up 93.94pts], Oil& Gas [up 128.79pts], Power [up 36.23pts], Realty [up 19.82pts].

World Indices

Index Value % Change

D J l 16569.28 +0.46

S&P 500 1938.90 +0.72

NASDAQ 483.89 +0.72

EURO STO 3070.46 -0.07

FTSE 100 6677.52 -0.02

Nikkei 225 15436.6 -0.24

Hong Kong 24584.51 -0.06

Top Gainers

Company CMP Change % Chg

BPCL 604.50 27.15 4.70

HINDALCO 192.40 8.10 4.40

INFY 3,460.10 118.80 3.56

NMDC 175.45 5.70 3.36

JINDALSTEL 275.95 8.80 3.29

Top Losers


HDFC 1,030.20 9.45 -0.91

SUNPHARMA 762.00 6.80 -0.88

BHARTIARTL 378.15 1.90 -0.50

CIPLA 440.75 1.75 -0.40

HDFCBANK 813.00 2.45 -0.30

Stocks at 52 Week’s high

Symbol Prev. Close Change %Chg

AJANTPHARM 1742.00 67.45 +4.03

BHARATFORG 749.80 25.9 +3.58

HINDUNILVR 699.00 5.45 +0.79

IGL 380.55 0.05 +0.01

TVTODAY 164.55 27.4 +19.98

Indian Indices


NIFTY 7683.65 +81.05 +1.07

SENSEX 25723.16 +242.32 +0.95

Stocks at 52 Week’s Low

Symbol Prev. Close Change %Chg

BHUSHAN STEEL 379.00 13.70 -3.49

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DAILY REPORT

05th AUGUST 2014


STOCK RECOMMENDATIONS [FUTURE]

1. TATA CHEM FUTURE

TATA CHEM FUTURE is looking strong on charts, long build up has been seen, we may see more upside, if it sustains above 350 levels. We advise buying around 350-354 levels with strict stop loss of 345 for the targets of 360-365 levels.

2. CESC FUTURE

CESC FUTURE is looking strong on charts, long build up has been seen, we may see more upside, if it sustains above 680 levels. We advise buying above 680 levels with strict stop loss of 665 for the targets of 700-715 levels.

EQUITY CASH & FUTURE

STOCK RECOMMENDATION [CASH]

1. AMTEK AUTO

AMTEK AUTO strong on daily chart. We advise buying around 270 level with strict stop loss 266 for the targets of 274-278

MACRO NEWS

Results Today: Hero Motocorp , Crompton Greaves , Bata India , NHPC , Sintex , Welspun Projects , Tata Chemicals , Jubilant Industries, EIH, Ajanta Pharma, Gateway Distri-parks, Hanung Toys, Tourism Finance Corporation, Pheonix International, Viceroy Hotel, Tree House, Tata Investment Corporation, NRB Inds, Mandhana, KRBL, JB Chemicals, Honda Siel Power, Hindustan Motors, Capital First, Brigade Enterprise.

RBI will announce it’s Monetary policy today at 11 AM. RBI likely to hold rates steady, may cut SLR.

India services PMI to be released at 10:30 a.m.

India to build pipeline to Nepal for oil products.

The premier public sector bank has revised interest rates on its foreign currency non-resident (Banking) deposits with immediate effects.

Bajaj Auto reported 9 per cent increase in motorcycle sales at 2,67,841 units in July 2014. The company had sold 2,46,828 units in the same month last year.

Indian drugmakers to pay higher facility fees on US hike. he new rates, applicable on companies from all nations, are effective from Oct 1 and will remain in force through Sept 30, 2015, as per FDA.


DAILY REPORT

05th AUGUST 2014


FUTURE & OPTION

MOST ACTIVE PUT OPTION

Symbol Op-

tion

Type

Strike

Price

LTP Traded

Volume

(Contracts

)

Open

Interest

NIFTY PE 7,600 63 2,50,404 50,71,550

NIFTY PE 7,500 39.25 1,99,223 51,84,100

NIFTY PE 7,400 23.2 1,32,276 33,23,900

BANKNIFTY PE 14,500 79.65 17,188 1,70,600

SBIN PE 2,400 51.4 1,823 1,23,375

MCDOWELL-N PE 2,300 21.25 1,624 1,08,250

RELIANCE PE 980 17.5 1,373 3,06,750

INFY PE 3,400 55.4 1,368 62,750

MOST ACTIVE CALL OPTION

Symbol Op-

tion

Type

Strike

Price

LTP Traded

Volume

(Contracts)

Open

Interest

NIFTY CE 7,800 71.3 2,39,524 33,58,750

NIFTY CE 7,700 120 2,14,410 30,85,700

NIFTY CE 7,900 38.65 1,57,872 32,19,550

BANKNIFTY CE 16,000 111.95 27,009 3,37,500

INFY CE 3,500 74.4 4,513 1,99,250

SBIN CE 2,500 78.45 3,116 7,62,625

RELIANCE CE 1,000 20.2 2,978 7,70,250

MCDOWELL-N CE 2,400 60.75 2,405 1,59,375

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 47810 1836.47 40318 1546.96 258593 9970.64 289.51

INDEX OPTIONS 238349 9115.40 246177 9389.61 1238625 47575.41 -274.21

STOCK FUTURES 71761 2641.84 50694 1912.78 1375022 49640.86 729.06

STOCK OPTIONS 42153 1560.86 39356 1452.69 44947 1604.10 108.17

TOTAL 852.54

INDICES R2 R1 PIVOT S1 S2

NIFTY 7,739.58 7,711.62 7,666.83 7,638.87 7,594.08

BANK NIFTY 15,430.25 15,336.30 15,232.20 15,138.25 15,034.15

STOCKS IN NEWS

IGL says to acquire 5 cr shares at Rs 38/share in Ma-harashtra Natural Gas

Jubilant Industries seeks shareholder nod to approve borrowing limit of Rs 500 crore

Prism Informatics board to consider rights issue on August 8

ING Vysya Bank seeks shareholders' nod to set borrow-ing limit at Rs 20,000 crore

NMDC -April-July iron ore production at 9.88 million tonnes (mt) versus 8.87 mt (YoY) -April-July iron ore sales at 11.11 mt versus 9.40 mt (YoY).

NIFTY FUTURE

Nifty Future closed upside in the last trading session. We advise selling around 7730 level with strict stop loss of 7680 for the targets of 7780-7830


DAILY REPORT

05th AUGUST 2014


COMMODITY MCX

RECOMMENDATIONS

SILVER

TRADING STRATEGY:

BUY SILVER SEP ABOVE 44550 TGTS 44750,45050 SL 44250

SELL SILVER SEP BELOW 44100 TGTS 43900,43600 SL 44400

GOLD

TRADING STRATEGY:

BUY GOLD OCT ABOVE 28250 TGTS 28330,28430 SL 28150

SELL GOLD OCT BELOW 28050 TGTS 27970,27870 SL 28150

COMMODITY ROUNDUP

Silver prices were marginally down by 0.08% to Rs 44,391

per kg yesterday as speculators trimmed positions amidst a

weak trend overseas. At the MCX, silver for delivery in Sep-

tember traded lower by Rs 36, or 0.08%, to Rs 44,391 per kg

in a business turnover of 256 lots. Similarly, the white metal

for delivery in December declined by Rs 30, or 0.07%, to Rs

45,160 per kg in a business volume of five lots. In the inter-

national market, silver fell by 0.40% to USD 20.25 an ounce

in Singapore, the lowest since June 19. Offloading of posi-

tions by speculators, triggered by a weak trend in global

markets, led to the fall in silver prices at futures trade here.

Gold traded in red as dollar surged on Monday, while eco-

nomic data event is empty for the day. Gold has been under

heavy selling pressure in recent weeks as an improving U.S.

economy fuelled speculation that the Fed will hike interest

rates sooner than expected, which would reduce the need

for gold for use as a hedge against loose monetary policy.

The COMEX Gold December quotes at $1,292.90, down

$1.90 a troy ounce and Silver September quotes at $20.388

a troy ounce, up $ 0.017 on Monday. Local Gold futures off

the high on weak global cues amid strong Indian rupee on

Monday. MCX Gold October delivery quotes at Rs 28,165,

down Rs 61 and Silver September quotes at Rs 44,415,

down Rs 9 on Monday. Local currency quotes at Rs 60.92,

down 0.41% on Monday.

The price of sponge iron has fallen by 11% in the past two

months, due to weaker than expected demand from steel

mills. The steel-making input is quoting at Rs 20,500 a

tonne, as against Rs 23,000 a tonne about eight weeks ear-

lier. This was after a marginal rise at the beginning of June,

amid expectations of improved sentiment in the infrastruc-

ture and housing sectors.

Nickel futures traded a shade lower at Rs 1,131.40 per kg

yesterday as participants kept their positions restricted

amidst sluggish demand from alloy-makers in the domestic

spot market. At the MCX, nickel for delivery in September

fell by 70 paise, or 0.06%, to Rs 1,131.40 per kg in a busi-

ness turnover of 18 lots. The metal for delivery in August

also shed 50 paise, or 0.04%, to Rs 1,126.20 per kg in a turn-

over of 858 lots.


DAILY REPORT

05th AUGUST 2014


RECOMMENDATIONS

DHANIYA

BUY DHANIYA AUG ABOVE 11880 TGTS 11910,11960 SL

11830

SELL DHANIYA AUG BELOW 11770 TGTS 11740,11690 SL

11810

GUARSEED

BUY GUARSEED AUG ABOVE 4930 TGTS 4960,4010 SL 4890

SELL GUARSEED AUG BELOW 4840 TGTS 4810,4760 SL 4890

NCDEX

NCDEX INDICES

Index Value % Change

Castor Seed 4144 -2.91

Chana 2775 -1.07

Coriander 11863 -0.42

Cotton Seed Oilcake 1685 +0.12

Guarseed 4920 -1.80

Jeera 11170 -0.62

Mustard seed 3581 -0.39

Soy Bean 3650 -0.76

Sugar M Grade 3000 -0.20

Turmeric 6676 +3.99

NCDEX ROUNDUP

Jeera prices fell 0.49% to Rs 11,185 per quintal in futures

trade yesterday as speculators offloaded positions amidst

adequate supplies from producing regions. At the NCDEX,

jeera for delivery in August fell by Rs 55, or 0.49%, to Rs

11,185 per quintal with an open interest of 4,824 lots. Simi-

larly, the spice for delivery in September shed Rs 55, or

0.48%, to Rs 11,380 per quintal in 4,809 lots. The fall in

jeera futures to offloading of positions by speculators on

the back of adequate stocks position.

Turmeric prices shot up by 2.29% to Rs 6,780 per quintal in

futures trading yesterday as speculators indulged in creating

fresh positions amid rising demand in the spot market. Be-

sides, tight stocks position in the physical market following

fall in supplies from producing regions also supported the

upside in turmeric prices. At NCDEX, turmeric for delivery in

September spurted by Rs 152, or 2.29%, to Rs 6,780 per

quintal with an open interest of 6,560 lots. Similarly, the

spice for delivery in August gained Rs 128, or 1.99%, to Rs

6,548 per quintal in 11,265 lots.

Chana prices fell 0.69% to Rs 2,871 per quintal in futures

trade yesterday as speculators trimmed positions amidst

increased supplies from producing regions in the spot mar-

ket against weak demand. At NCDEX, chana for delivery in

September moved down by Rs 20, or 0.69%, to Rs 2,871 per

quintal with an open interest of 1,15,010 lots. Similarly, the

commodity for delivery in August traded lower by Rs 18, or

0.64%, to Rs 2,787 per quintal in 92,020 lots.


DAILY REPORT

05th AUGUST 2014


JPY/INR

BUY JPY-INR ABOVE 59.80 TG 60,60.30 SL 59.50

SELL JPY-INR ABOVE 59.54 TG 59.24,58.95 SL 59.74

GBP/INR

BUY GBP-INR ABOVE 103.55 TG 103.75,104.05 SL 103.25

SELL GBP-INR ABOVE 102.70 TG 102.50,102.30 SL 103

CURRENCY ROUNDUP

Euro pared the recovery against the greenback on Monday,

the pair quotes at $1.342, down 0.07% and the US dollar

index quotes at 81.44, up 0.06%.

The U.S. dollar was stuck below a 10-1/2 month peak

against a basket of major currencies early on Tuesday, hav-

ing lapsed into uneventful trade in the usual post-payrolls

data lull.

Oil prices on both sides of the Atlantic climbed on Monday,

as investors shifted their attention from worries about

swelling supplies to concerns about ongoing violence in

Libya and other global hotspots.

U.S. Treasuries prices edged up on Monday amid receding

investor worries over an earlier-than-expected interest-rate

hike by Federal Reserve policymakers.

The Indian rupee snapped a two-session falling streak on

Monday aided by good dollar selling by corporates,including

exporters, while gains in the domestic share market also

underpinned sentiment. The Reserve Bank of India is likely

to leave its key interest rate unchanged on August 5 and

won't ease policy until early next year on fears food infla-

tion will spike if monsoon rains are below average.

The partially convertible rupee closed at 60.93/94 per dollar

compared to 61.18/19 on Friday. The rupee moved in a

wide range of 60.8750 to 61.1650 during the day. The unit

gained 0.4 percent on Monday, its biggest single-day gain

since July 11.

Total foreign fund inflows into India so far in 2014 have

reached $26.16 billion across debt and equities. In the off-

shore non-deliverable forwards, the one-month contract

was at 61.32 while the three-month contract was at 61.92.

CURRENCY

RBI Reference Rate

Currency Rate Currency Rate

Rupee- $ 61.0187 Yen-100 59.4100

Euro 81.9061 GBP 102.6945


DAILY REPORT

05th AUGUST 2014


CALL REPORT

PERFORMANCE UPDATES

Date Commodity/ Currency

Pairs Contract Strategy Entry Level Target Stop Loss Remark

04/08/14 MCX GOLD OCT. BUY 28310 28390-28490 28210 NOT EXECUTED

04/08/14 MCX GOLD OCT. SELL 28160 28020-27980 28260 BOOKED PROFIT

04/08/14 MCX SILVER SEP. BUY 44550 44750-45050 44250 SL TRIGGERED

04/08/14 MCX SILVER SEP. SELL 44300 44100-43800 44600 BOOKED PROFIT

04/08/14 NCDEX GUARSEED AUG. BUY 5040 5070-5120 4990 NOT EXECUTED

04/08/14 NCDEX GUARSEED AUG. SELL 4985 4955-4905 5035 BOOKED FULL

PROFIT

04/08/14 NCDEX DHANIYA AUG. BUY 11940 11970-12020 11890 NOT EXECUTED

04/08/14 NCDEX DHANIYA AUG. SELL 11865 11835-11785 11915 BOOKED FULL

PROFIT

04/08/14 USD/INR JULY BUY 61.67 61.97-62.27 61.37 NOT EXECUTED

04/08/14 USD/INR JULY SELL 61.16 59.96-59.66 61.46 NOT EXECUTED

04/08/14 JPY/INR JULY SELL 59.46 59.26-58.95 59.76 NOT EXECUTED

04/08/14 JPY/INR JULY BUY 59.84 60.04-60.34 59.74 SL TRIGGERED

Date Scrip

CASH/

FUTURE/

OPTION

Strategy Entry Level Target Stop Loss Remark

04/08/14 NIFTY FUTURE SELL 7600 7550-7500 7650 CALL OPEN

04/08/14 CENTURYTEX FUTURE SELL 590-595 585-580 600 BOOKED PROFIT

04/08/14 TITAN FUTURE SELL 330-335 325-320 340 SL TRIGGERED

04/08/14 LIBERTY SHOE CASH SELL 266 262-258 270 NOT EXECUTED

31/07/14 HAVELLS FUTURE SELL 1180-1190 1150-1120 1220 SL TRIGGERED


DAILY REPORT

05th 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. 4

NONE SCHEDULED

TUESDAY, AUG. 5

10 AM ISM NONMANUFACTURING JULY -- 56.0%

10 AM FACTORY ORDERS JUNE -- -0.5%

WEDNESDAY, AUG. 6

8:30 AM TRADE DEFICIT JUNE -- -$44.4 BLN

THURSDAY, AUG. 7

8:30 AM WEEKLY JOBLESS CLAIMS AUG. 2 -- N/A

3 PM CONSUMER CREDIT JUNE -- $19.6 BLN

FRIDAY, AUG. 8

8:30 AM PRODUCTIVITY Q2 -- -3.2%

8:30 AM UNIT LABOR COSTS Q2 -- 5.7%

10 AM WHOLESALE INVENTORIES JUNE -- 0.5%


stock market special report by epic research 5th august 2014

Economy & Finance