epic research special report of 18 jan 2016

DAILY REPORT

18th

JAN. 2016

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Global markets at a glance Wall Street bled on Friday, with the S&P 500 sinking to its lowest since October 2014 as oil prices sank below USD 30 per barrel and fears grew about economic trouble in China. Pain was dealt widely, with the day's trading volume un-usually high and more than a fifth of S&P 500 stocks touch-ing 52-week lows. The major S&P sectors all ended sharply lower. The Russell 2000 small-cap index dropped as much as 3.5 percent to its lowest since July 2013. The energy sec-tor dropped 2.87 percent as oil prices fell 6.5 percent, in part due to fears of slow economic growth in China, where major stock indexes also slumped overnight. The energy sector has lost nearly half its value after hitting record highs in late 2014. The Dow Jones industrial average dropped 2.39 percent to end at 15,988.08 and the S&P 500 fell 2.16 percent to 1,880.33. The Nasdaq Composite lost 2.74 % to 4,488.42. For the week, the Dow fell 2.2 %, the S&P 500 lost 2.2 % and the Nasdaq dropped 3.3 %. European shares ended on Friday at their lowest since mid-December 2014, hit by losses in commodity-related stocks as BHP Billiton announced a major write down and oil fell below $30 a barrel. European shares ended on Friday at their lowest since mid-December 2014, hit by losses in commodity-related stocks as BHP Billiton announced a ma-jor write down and oil fell below $30 a barrel. Previous day Roundup Equity benchmarks crumbled in late sell-off on Friday, hit-ting 19-month closing lows, dragged by sharp correction in oil prices. All sectoral indices barring IT ended in the red with banks seeing more pressure. The Sensex fell 317.93pts or 1.28% to 24455.04. The Nifty fell way below 7500, down 99pts or 1.31% to 7437.80, the lowest level since June 4, 2014. The broader markets got slaughtered more com-pared to benchmarks as the BSE Midcap was down 2.7% and Smallcap lost 3.13%. The market breadth worsened in late trade; nearly six shares declined for every share ad-vancing compared to 1:1 earlier on BSE. For the week, the Sensex lost 1.9% and the Nifty lost 2.1% while Nifty Midcap slumped 6% and BSE Smallcap was down 7.5%. Index stats The Market was very volatile in last session. The sartorial indices performed as follow; Consumer Durables [down 222.51pts], Capital Goods [down 359.86Pts], PSU [down 182.11pts], FMCG [down 136.47Pts], Realty [down 53.35pts], Power [down 72.85pts], Auto [down 308.55Pts], Healthcare [down 297.10Pts], IT [up 7.45pts], Metals [down 180.80Pts], TECK [down 18.48pts], Oil& Gas [down 91.90pts].

World Indices

Index Value % Change

D J l 15988.08 -2.39

S&P 500 1880.33 -2.16

NASDAQ 4488.42 -2.74

FTSE 100 5804.10 -1.93

Nikkei 225 17147.11 -0.54

Hong Kong 19520.77 -1.50

Top Gainers

Company CMP Change % Chg

BPCL 930.60 21.20 2.33

TECHM 523.00 9.00 1.75

HCLTECH 840.10 11.25 1.36

RELIANCE 1,072.60 10.95 1.03

DRREDDY 2,938.05 23.05 0.79

Top Losers


VEDL 72.75 6.60 -8.32

SBIN 183.30 12.75 -6.50

CAIRN 118.80 7.90 -6.24

PNB 91.75 6.05 -6.19

GAIL 337.00 20.55 -5.75

Stocks at 52 Week’s HIGH

Symbol Prev. Close Change %Chg

Indian Indices


NIFTY 7437.80 -99.00 -1.31

SENSEX 24455.04 -317.93 -1.28

Stocks at 52 Week’s LOW

Symbol Prev. Close Change %Chg

ABAN 193.65 -2.25 -1.15

ACC 1,228.95 -40.10 -3.16

ADANIPORTS 220.30 -7.50 -3.29

AXISBANK 372.85 -17.75 -4.54

BHEL 135.95 -7.70 -5.36

CAIRN 118.80 -7.90 -6.24

CANBK 179.00 -12.60 -6.58

ICICIBANK 225.40 -10.35 -4.39

IDEA 112.60 -6.70 -5.62

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DAILY REPORT

18th

JAN. 2016


STOCK RECOMMENDATION [CASH] 3. EROSMEDIA

EROSMEDIA got support from psychological level 200 & closed at 202.65 with bearish candle while before last ses-sion it create inverted hammer since it has strong support at 195 so it can be short below 200 for target of 197 195 & below 195 it will be appear in new bearish trend with stop loss of 203.10 MACRO NEWS Results today: Asian Paints, Bharat Bijlee, Delta Corp,

HOEC, Kotak Mahindra, Mindtree, Rallis India, Refex Ind, Sical Logistics, Steel Str Wheel, TTK Prestige, Tata Metaliks, Tinplate, Vardhman Acryli, Wipro

HUL Q3 disappoints, profit sinks 22% on provision; vol-ume growth 6%

Goa miners seek government help to fight slump in prices

Coal imports fall 7% in April-Dec over power plants' lower demand

Govt launches four mobile health services US oil plunges 5.7% on China, closes at $29.42 a barrel Petrol price cut by 32p/litre, diesel by 85p Excise duty on petrol, diesel hiked; govt to garner Rs

3700 cr SEBI bans fresh forward contracts in commodity mar-

kets Iran-India $2.5 billion steel deal totters as end of sanc-

tions looms FSSAI issues new norms for food product imports India scouts for O&G assets in Africa on crude price fall PFC Consulting floats tender for Rs 4,400cr ERSS-XVIII ONGC-RIL dispute: BP says will cooperate with Shah

Panel

STOCK RECOMMENDATIONS [FUTURE] 1. JETAIRWAYS [FUTURE]

After listing in future JETAIRWAYS loosed all gains & made low of 698.35 since last week it made handing man pattern which confirmation we seen in last two session so we can see vertical fall in signal session because of high volatility for that sell it below 698 for target of 692 685 with stop loss of 705. 2. GRASIM [FUTURE]

In these down fall GRASIM Future given close with gain, after gap down start it maintain opening level & bounce then it consolidate but in lat half an hour it made new day’s & on daily chart it create bullish candle so we advise to buy it above 3515 for target of 3540 3600 with stop loss of 3480.


DAILY REPORT

18th

JAN. 2016


FUTURE & OPTION

MOST ACTIVE CALL OPTION

Symbol Op-

tion

Type

Strike

Price

LTP Traded

Volume

(Contracts)

Open

Interest

NIFTY CE 7,600 37.50 3,85,384 44,06,475

NIFTY CE 7,800 7.10 2,48,266 52,91,700

BANKNIFTY CE 16,000 45.00 87,864 7,74,780

INFY CE 1,100 16.55 6,944 15,17,500

SBIN CE 1,160 12.80 5,743 11,49,000

RELIANCE CE 200 1.70 4,776 53,10,000

RELIANCE CE 1,080 24.60 4,131 8,49,000

INFY CE 1,200 3.80 3,399 10,24,500

MOST ACTIVE PUT OPTION

Symbol Op-

tion

Type

Strike

Price

LTP Traded

Volume

(Contracts)

Open

Interest

NIFTY PE 7,400 88.15 3,17,929 53,58,375

NIFTY PE 7,500 133.55 3,03,980 51,38,400

BANKNIFTY PE 15,000 216.00 68,049 4,65,630

INFY PE 1,100 5.00 3,126 12,34,500

INFY PE 1,140 16.55 3,023 3,40,000

RELIANCE PE 1,060 22.00 2,875 3,53,000

HINDUNILVR PE 800 18.00 2,598 3,38,400

SBIN PE 190 10.00 2,527 15,72,000

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 37518 1992.94 34141 1834.87 300995 16055.32 158.07

INDEX OPTIONS 691404 37978.27 709505 39065.27 1380004 75549.11 -1087.00

STOCK FUTURES 96650 4621.74 80142 3827.39 1097744 49461.89 794.35

STOCK OPTIONS 76496 3691.61 78926 3825.34 88349 4066.52 -133.73

TOTAL -268.31

STOCKS IN NEWS

Suzlon secures additional credit facility of Rs 2,300 crore

Tata Motors' JLR declared best UK employer RCom tower sale deal with Tillman Global extended by

15 days NTPC cuts electricity cost by 13.6% Maruti Suzuki to showcase Vitara Brezza, Ignis concept

at Auto Expo SBI to raise up to Rs 15,000 crore by March 2017 Max India: Change of guard; co splits into three NIFTY FUTURE

Nifty crumbled in late sell-off in last trading session, hit-ting 19-month closing lows, dragged by sharp correction in oil prices. Nifty for now is in bearish zone, so we advise you to sell it around 7450 for the targets of 7380 and 7300 with 7550

INDICES R2 R1 PIVOT S1 S2

BANK NIFTY 15,832.00 15,519.00 15,336.00 15,023.00 14,840.00

NIFTY 7,617.00 7,527.00 7,477.00 7,387.00 7,337.00


DAILY REPORT

18th

JAN. 2016


RECOMMENDATIONS

GOLD

TRADING STRATEGY:

BUY GOLD ABOVE 26200 TARGET 26280 26370 SL 26100

SELL GOLD BELOW 26000 TARGET 25920 25820 SL 26100

SILVER

TRADING STRATEGY:

BUY SILVER ABOVE 34200 TARGET 34400 34700 SL 33900

SELL SILVER BELOW 33900 TARGET 33700 33400 SL 34200

COMMODITY ROUNDUP Sustained bargain buying lifted Gold today after a drop in last session. Gold was under attack yesterday as a smart upswing in the US equities kept the pressure on and the recent break under $1100 per ounce acted as yet another dampener. COMEX Gold drooped near $1075 levels but has found good buying support in Asia today. The metal trades at $1083 per ounce, up 0.88% on the day. Local Gold futures were also boosted as the INR dropped to lowest in nearly two and half years. The local Gold future ended just under Rs 25600 levels yesterday and currently trade at Rs 25812 per 10 grams, up 68% on the day. World oil prices slumped to below USD 29 a barrel on Fri-day, as a further fall in the Chinese stock market and the prospect of an imminent rise in Iran's crude exports deep-ened fears of a longer supply glut. After closing higher for the first time in eight sessions on Thursday, US and Brent crude futures slumped to new 12-year lows, taking this year's losses to more than 20 percent, the worst two-week decline since the 2008 financial crisis. The slump was not over yet, some analysts warned, as the lifting of sanctions on Iran opens the door to a wave of new oil. The Interna-tional Atomic Energy Agency (IAEA) is expected later on Fri-day in Vienna to issue its report on Iran's compliance with an agreement to curb its nuclear program, potentially trig-gering the lifting of Western sanctions. Chile's copper commission Cochilco lowered its copper price forecast for 2016 to US$2.15 per pound from its previous US$2.50 per pound following the continuing weakness of global commodity markets. The agency, in a statement, said it expects a slight recovery next year, when it forecasts prices will average US$2.20 per pound. In its September report the agency estimated a 2015 average of US$2.53 per pound, while the realized price was US$2.49 per pound. Nickel futures eased 0.58% to Rs 582 per kg today as partici-pants reduced their exposure amid a weak trend overseas and muted domestic demand. At the Multi Commodity Ex-change, nickel for delivery in February fell Rs 3.40, or 0.58%, to Rs 582 per kg in a business turnover of 13 lots. The metal for delivery this month fell Rs 3.30, or 0.57%, to trade at Rs 576.10 per kg in a turnover of 751 lots. Besides subdued spot demand at the domestic market, a weak trend in base metals overseas as concerns over slowing demand in China dominated trading ahead of gross domestic product data and output figures from the world's biggest consumer next week, led to the fall in nickel futures here


DAILY REPORT

18th

JAN. 2016


NCDEX

NCDEX INDICES

Index Value % Change

CASTOR SEED 3450 +0.82

CHANA 4846 -0.47

CORIANDER 6720 +2.22

COTTON SEED 2017 +0.30

GUAR SEED 3170 -2.46

JEERA 13625 -0.04

MUSTARDSEED 4440 -0.74

SOY BEAN 3685 -0.05

SUGAR M GRADE 3272 +1.43

TURMERIC 9612 -2.24

RECOMMENDATIONS

DHANIYA

BUY CORIANDER APR ABOVE 7060 TARGET 7105 7255 SL

BELOW 6995

SELL CORIANDER APR BELOW 7000 TARGET 6955 6805 SL

ABOVE 7065

GUARGUM

BUY GUARGUM FEB ABOVE 6020 TARGET 6070 6140 SL

BELOW 5960

SELL GUARGUM FEB BELOW 5910 TARGET 5860 5790 SL

ABOVE 5970

As per latest release from Cargo Surveyor Intertek Agri Ser-vices, Malaysia's palm oil exports during 1-15 January ,2016 increased by 4.30% from the same period in December, 2015 to 4.86 lakh metric tonnes. Amid profit-booking by speculators at current levels, carda-mom prices eased by 1.81% to Rs 758.60 per kg in futures trade. Slackened demand in the spot markets influenced cardamom prices. At MCX cardamom 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 deliv-ery in March traded lower by Rs 13.20, or 1.70%, to Rs 761.40 per kg in 102 lots. Besides profit-booking by specula-tors at existing levels, fall in demand in the spot markets against adequate stocks position mainly led to the fall in cardamom prices at the futures trade. Sugar prices spurted by 1.52% to Rs 3,275 per quintal in futures trading today as traders widened positions driven by upsurge in demand at the spot market. At NCDEX sugar for delivery in March shot up by Rs 49, or 1.52%, to Rs 3,275 per quintal, with an open interest of 1,06,710 lots. Similarly, the sweetener for delivery in May traded higher by Rs 47, or 1.42%, to Rs 3,363 per quintal in 34,400 lots. Participants built up fresh positions, triggered by pick up in demand from retailers and bulk consumers in the spot market mainly attributed rise in sugar prices at futures trade. India needs an effective, inclusive and universal crop insur-ance scheme to act as a safety net for farmers as frequency of extreme weather events due to climate change is likely to increase in the future, noted the CSE. The new crop in-surance policy is a step in the right direction but needs im-provements. CSE said that insurance unit is still not at indi-vidual farmer level which is a major problem in compensat-ing losses of individual farmers.


DAILY REPORT

18th

JAN. 2016


RBI Reference Rate

Currency Rate Currency Rate

Rupee- $ 67.4325 Yen-100 57.2500

Euro 73.3868 GBP 97.1095

CURRENCY

USD/INR

BUY USD/INR JAN ABOVE 67.8 TARGET 67.93 68.08 SL BE-

LOW 67.6

SELL USD/INR JAN BELOW 67.6 TARGET 67.47 67.32 SL

ABOVE 67.8

EUR/INR

BUY EUR/INR JAN ABOVE 74.01 TARGET 74.16 74.36 SL BE-

LOW 73.81

SELL EUR/INR JAN BELOW 73.8 TARGET 73.65 73.45 SL

ABOVE 74

CURRENCY MARKET UPDATES: The US dollar edged lower against a basket of currencies on Friday, as investors eyed the release of U.S. data later in the day and as concerns over declining oil prices boosted demand for the safe-haven yen and Swiss franc. The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was down 0.20% at 98.92. Meanwhile, the European unit gained 0.43% to trade at 1.0911 versus the greenback. As against the pound, the dollar was higher with GBP/USD down 0.45% to fresh five-and-a-half year lows of 1.4348. USD/JPY dropped 0.58% to 117.37. The yen strengthened after Brent crude, the global benchmark, fell below the $30 per barrel threshold on Fri-day to $29.93, the lowest level since 2004, pressured lower by a global supply glut and fears of a slowdown in China. Speaking to parliament on Friday, Bank of Japan Governor Haruhiko Kuroda blamed declining global oil prices for Ja-pan's low inflation and reiterated that the country was un-dergoing a moderate economic recovery. The fall in the Indian rupee to its weakest since September 2013 has left traders unruffled as they believe the coun-try’s sturdier economy and central bank interventions will allow the currency to navigate a difficult global environ-ment. Earlier in the session, the rupee weakened to as much as 67.2550 to the dollar, a level last seen in Septem-ber 2013, when the country suffered its worst market tur-moil since the 1991 balance of payments crisis. Although traders expect the rupee to weaken further to around 67.50 in the near-term as slumping oil prices and volatility in China’s market roil emerging market currencies, they say the currency will remain far above the record low of 68.85 hit in August 2013. The RBI is also expected to intervene frequently, as it did on Thursday, with traders also antici-pating more actions in futures markets after the central bank said in December it was open to that prospect. Still, the rupee has performed relatively better this year than other Asian emerging market currencies, having lost about 1.6 percent against the dollar, compared to a fall of around 3.4 percent in the South Korean won and a drop of around 2.3 percent in the Malaysian ringgit.


DAILY REPORT

18th

JAN. 2016


Date Commodity/ Currency

Pairs Contract Strategy Entry Level Target Stop Loss Remark

15/01/16 NCDEX DHANIYA APR. BUY 7355 7400-7550 7290 NOT EXECUTED

15/01/16 NCDEX DHANIYA APR. SELL 7030 6985-6835 7095 BOOKED PROFIT

15/01/16 NCDEX GUARGUM FEB. BUY 6250 6300-6370 6190 NOT EXECUTED

15/01/16 NCDEX GUARGUM FEB. SELL 6060 6010-5940 6120 BOOKED FULL PROFIT

15/01/16 MCX GOLD FEB. BUY 25600 25670-25770 25500 BOOKED FULL PROFIT

15/01/16 MCX GOLD FEB. SELL 25500 25430-25330 25600 NOT EXECUTED

15/01/16 MCX SILVER MAR. BUY 34000 34200-34500 33700 BOOKED PROFIT

15/01/16 MCX SILVER MAR. SELL 33600 33400-33100 33900 NOT EXECUTED

Date Scrip

CASH/

FUTURE/

OPTION

Strategy Entry Level Target Stop Loss Remark

15/01/16 NIFTY FUTURE BUY 7500 7600-7700 7400 CALL OPEN

15/01/16 LUPIN FUTURE BUY 1725 1750-1780 1693 CALL OPEN

15/01/16 APOLLOTYRE FUTURE SELL 145 143-140 146.5 BOOKED FULL PROFIT

15/01/16 ABAN CASH SELL 194 191-185 196.5 CALL OPEN

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


DAILY REPORT

18th

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. 18

NONE SCHEDULED

MARTIN LUTHER KING JR. HOLIDAY

TUESDAY, JAN. 19

10 AM HOME BUILDERS' INDEX JAN. 61 61

WEDNESDAY, JAN. 20

8:30 AM CONSUMER PRICE INDEX DEC. -0.1% 0.0%

8:30 AM CORE CPI DEC. 0.1% 0.2%

8:30 AM HOUSING STARTS DEC. 1.190 MLN 1.173 MLN

THURSDAY, JAN. 21

8:30 AM WEEKLY JOBLESS CLAIMS JAN. 16 N/A 284,000

8:30 AM PHILLY FED JAN -4.0 -10.2

FRIDAY, JAN. 22

9;45 AM MARKIT PMI FLASH JAN. -- 51.2

10 AM EXISTING HOME SALES DEC. 5.15 MLN 4.76 MLN

10 AM LEADING ECONOMIC INDICATORS DEC. -- 0.4%


epic research special report of 18 jan 2016

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