Stock market special report by epic research 11th july 2014

DAILY REPORT

11th JULY 2014

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Global markets at a glance Asian shares recouped early losses on Friday as senti-ment in the region proved resilient to Portuguese bank concerns amid signs offshore funds were returning to emerging world assets. MSCI's broadest index of Asia-Pacific shares outside Japan recovered to be a fraction firmer. Indices in Australia, Singapore and China were all higher, while Japan's Nikkei pared its losses to be off just 0.26 percent. Investors across Europe trimmed their exposure to banks on Thursday in response to growing concerns about the health of Portugal's biggest listed lender, with a leading pan-European share index slipping to a two-month low. Other markets were also under pressure. FTSE MIB fell 1.4% after data showed Italian industrial output in May posted its steepest monthly fall since November 2012, while Germany's DAX index fell 1.5%.

Wall Street Update U.S. stocks dropped on Thursday as concerns about the financial health of Portugal's top listed bank gave inves-tors a reason to cash in recent gains. With the Dow and the S&P 500 near record highs, the slide in Europe trig-gered by financial shares quickly translated into broad selling on Wall Street. The S&P 500 briefly lost 1 percent earlier, a daily drop the benchmark has not seen since April 10. The Dow Jones industrial average fell 70.54 points or 0.42 percent, to 16,915.07. The S&P 500 slid 8.15 points or 0.41 percent, to 1,964.68. The Nasdaq Composite dropped 22.83 points or 0.52 percent, to 4,396.20.

Previous day Roundup It was a roller coaster ride on Dalal Street with wild swings as investors panicked when the Finance Minister read out his maiden Budget speech. In a extremely choppy trade, the market ended in red. The Sensex closed 72.06 points or 0.28 percent down at 25372.75 and the Nifty was down 17.25 points or 0.23% at 7567.75. However, the market clocked record turnover at Rs 4.4 lakh crore in the F&O segment. About 1634 shares advanced, 1243 shares declined, and 89 shares were un-changed. Index stats The Market was very volatile in last session. The sartorial indices performed as follow; Consumer Durables [down 271.30pts], Capital Goods [up 28.67pts], PSU [up 32.08pts], FMCG [up 22.33pts], Realty [up 95.03pts], Power [up 24.65pts], Auto [down 140.27pts], Healthcare [up 1.63pts], IT [down 82.91Pts], Metals [up 120.59pts], TECK [down 45.68pts], Oil& Gas [up 5.47pts].

World Indices

Index Value % Change

D J l 16915.07 -0.42

S&P 500 1964.68 -0.41

NASDAQ 4396.20 -0.52

EURO STO 3150.59 -1.64

FTSE 100 6672.37 -0.68

Nikkei 225 15176.27 -0.26

Hong Kong 23276.28 +0.18

Top Gainers

Company CMP Change % Chg

DLF 223.00 19.00 9.31

IDFC 150.75 11.30 8.10

TATAPOWER 106.00 3.15 3.06

HINDALCO 175.20 4.65 2.73

MCDOWELL-N 2,353.20 57.30 2.50

Top Losers


HEROMOTOCO 2,450.00 87.90 -3.46

M&M 1,152.00 26.55 -2.25

TCS 2,345.90 52.25 -2.18

TECHM 2,022.50 44.85 -2.17

SBIN 2,528.85 53.40 -2.07

Stocks at 52 Week’s high

Symbol Prev. Close Change %Chg

ADANIPORTS 271.05 6.15 +2.32

GAIL 458.60 0.55 -0.12

HINDALCO 175.2 4.65 +2.73

IDFC 150.75 11.30 +8.10

- -

Indian Indices


NIFTY 7567.75 -17.25 -0.23

SENSEX 25372.75 -72.06 -0.28

Stocks at 52 Week’s Low

Symbol Prev. Close Change %Chg

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DAILY REPORT

11th JULY 2014


STOCK RECOMMENDATIONS [FUTURE]

1. IDFC FUTURE

IDFC FUTURE is looking strong on charts, long build up has been seen, we may see more upside, if it sustains above 150 levels. We advise buying around 148-150 levels with strict stop loss 144 for the targets of 155-160 levels.

2. BHARAT FORGE FUTURE

BHARAT FORGE FUTURE looking strong on charts, long build up has been seen, we may see more upside, if it sustains above 620 levels. We advise buying around 620-630 levels with strict stop loss of 600 for the targets of 650-670 levels.

EQUITY CASH & FUTURE

STOCK RECOMMENDATION [CASH]

1. POLARIS

POLARIS week on daily chart. We advise selling around 225 level with strict stop loss 229 for the targets of 221-217

MACRO NEWS

IT major Infosys will release it’s Q1 result today.

Jaitley has proposed to raise the excise duty on cigarettes to 11-72% and the excise duty on paan masala to 16%

RBI withdraws curbs on FPIs to buy Kotak Mahindra Bank shares. FPIs can now buy shares of Kotak Mahindra Bank.

Clean energy cess hiked to Rs100 per tonne;Coal India to pay upto Rs 5200 crore.

Rs 700 crore allocated for power, water sector reforms in Delhi

Govt to cut duty on premium petrol

Branded petrol price cut by over Rs 5 per litre

Proposals in infra, manufacturing to boost auto sector

Pharma sector left ailing for remedial measures

Govt reduces duty on various chemicals up to 7.5 %.

Ban-hit Goa mining industry sees ray of hope in Budget

Government expects to raise Rs 45,471.02 crore from air-waves sale, 1-time spectrum fee.

Budget 2014 allocates Rs 3470.16 crore for ongoing pro-jects of DMRC.

Air India to get Rs 6500 crore allocation.


DAILY REPORT

11th JULY 2014


FUTURE & OPTION

MOST ACTIVE PUT OPTION

Symbol Op-

tion

Type

Strike

Price

LTP Traded

Volume

(Contracts

)

Open

Interest

NIFTY PE 7,500 92 7,17,054 49,95,900

NIFTY PE 7,400 56.95 7,00,632 46,05,700

BANKNIFTY PE 7,600 140 5,11,701 24,67,200

NIFTY PE 14,000 109.15 47,241 2,75,825

SBIN PE 2,500 63 5,418 1,39,750

INFY PE 330 5 4,685 41,30,000

SBIN PE 3,000 30 4,596 2,83,625

TATASTEEL PE 140 2.5 3,304 14,10,000

MOST ACTIVE CALL OPTION

Symbol Op-

tion

Type

Strike

Price

LTP Traded

Volume

(Contracts)

Open

Interest

NIFTY CE 7,800 26.5 10,27,718 54,22,400

NIFTY CE 7,700 47.15 7,49,462 39,57,550

NIFTY CE 8,000 7.4 7,06,461 99,13,200

BANKNIFTY CE 16,000 40 59,130 5,30,975

RELIANCE CE 150 6.6 8,434 28,96,000

SBIN CE 2,700 23.25 8,231 3,43,625

INFY CE 1,020 17 5,378 7,57,750

RELIANCE CE 3,500 42 4,758 3,93,625

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 95087 3611.50 101917 3868.52 312072 11779.21 -257.03

INDEX OPTIONS 976808 37151.18 991466 37683.67 1525816 57656.71 -532.49

STOCK FUTURES 171763 6493.75 146678 5481.24 1550218 55783.75 1012.51

STOCK OPTIONS 128852 5015.24 129112 5033.90 108374 4020.52 -18.66

TOTAL 204.34

INDICES R2 R1 PIVOT S1 S2

NIFTY 7,844.62 7,706.18 7,592.62 7,454.18 7,340.62

BANK NIFTY 15,687.33 15,254.52 14,938.23 14,505.42 14,189.13

STOCKS IN NEWS

JSW Steel will be importing six million tonnes (mt) of iron ore in the current financial year from Canada and South Africa .

Jaiprakash Associates allots 21.3 shares at issue price of Rs 70.27/share against receipt of full payment on application.

GMR Infrastructure says board approves allotment 46.8cr shares to QIBs issue price of Rs 31.50/share.

Tata Communications announces DataHack14, a simul-taneous 24-hour hackathon in London’s ‘Tech City’ & California’s Redwood City.

NIFTY FUTURE

Nifty Future closed downside in the last trading session. We advise selling around 7480 levels with strict stop loss of 7530 for the targets of 7430-7380


DAILY REPORT

11th JULY 2014


COMMODITY MCX

RECOMMENDATIONS

SILVER

TRADING STRATEGY:

BUY SILVER SEP ABOVE 46400 TGTS 46600,46900 SL 46100

SELL SILVER SEP BELOW 45500 TGTS 45300,45000 SL 45800

GOLD

TRADING STRATEGY:

BUY GOLD AUG ABOVE 28600 TGTS 28680,28780 SL 28500

SELL GOLD AUG BELOW 27900 TGTS 27820,27720 SL 28000

COMMODITY ROUNDUP

Arun Jaitley’s proposal to impose 2.5 per cent basic cus-

toms duty on metallurgical coke, in line with the duty on

coking coal, will result in a rise in cost of steel production by

Rs 450-500 a tonne. Most large steel companies will prefer

to pass on the increased burden, as coal forms a large

chunk of their manufacturing cost. The impact of reduction

in the duty on steel-grade limestone and dolomite from

five per cent to 2.5 per cent will be marginal. Customs duty

on metallurgical coke raised to 2.5% from zero per cent.

Steel grade limestone and dolomite reduced from 5% to

2.5%. Changes in the MMDR Act to be introduced. To re-

view royalty rates on major minerals. Battery waste and

scrap duty halved to 5%. Export duty on bauxite doubled to

20%. Ships imported for breaking up to attract 5% basic cus-

toms duty and melting scrap of iron or steel attracts 2.5%

basic customs duty.

The new government's commitment to domestic manufac-

turing and export sectors is evident from several industry-

specific measures in the Budget. While Finance Minister has

not given in to the gems and jewellery industry's clamour

for lower import prices on gold, he did his bit to protect the

diamond industry. The minister levied a 2.5 per cent import

duty on semi-processed, half cut and broken diamonds; and

increased customs duty on cut, polished diamonds and col-

oured gemstones from two per cent to 2.5%.

Gold edged higher for a second straight session on Thurs-

day, helped by a weaker dollar and as minutes of the Fed-

eral Reserve's recent policy meet gave no indication of an

early hike in US interest rates. Gold surged to 3-1/2 month

highs on safe-haven buying on Thursday after questions

raised about the health of Portugal's top-listed bank

sparked worry that a new euro zone banking crisis might be

in the offing. The scrutiny over Portugal's Banco Espirito

Santo turned financial markets risk averse, with stocks on

both Wall Street and in Europe ending lower. The yen, an-

other safe-haven like gold, hit multi-month highs.

Brent oil futures slumped to a five-week low on Thursday,

as worries over potential supply disruptions in the Middle

East continued to subside. On the ICE Futures Exchange in

London, Brent oil for August delivery fell to a session low of

$107.77 a barrel, the weakest level since June 6, before

trimming losses to last trade at $107.95 during European

morning hours, down 0.3%, or 33 cents.


DAILY REPORT

11th JULY 2014


RECOMMENDATIONS

DHANIYA

BUY DHANIYA AUG ABOVE 11680 TGTS 11710,11760 SL

11630

SELL DHANIYA AUG BELOW 11575 TGTS 11545,11495 SL

11625

GUARSEED

BUY GUARSEED AUG ABOVE 5655 TGTS 5685,5735 SL 5605

SELL GUARSEED AUG BELOW 5600 TGTS 5570,5520 SL 5650

NCDEX

NCDEX INDICES

Index Value % Change

Castor Seed 4192 +0.17

Chana 2670 -0.34

Coriander 11070 +0.66

Cotton Seed Oilcake 1690 -0.29

Guarseed 5430 -2.16

Jeera 11150 -0.71

Mustard seed 3522 +1.09

Soy Bean 3762 -0.29

Sugar M Grade 2986 +0.10

Turmeric 6158 -0.65

NCDEX ROUNDUP

Bargain buying was seen in mustard seed futures from the lower levels due to weak sowing progress of kharif oilseeds coupled with strong demand of mustard meal in local mandies. The NCDEX futures are likely to test Rs 3593-3600 per quintal in the near term. As per the latest release Minis-try of Agriculture, kharif oilseeds have been sown only on 1.44 million hectares compared with 11 million hectares last year. This was mainly due to poor sowing of castorseed and soyabean. Poor sowing of kharif oilseeds has limited the stockiest selling at current levels. The prices will also be well supported by strong export demand of mustard meal in local mandies. The Solvent Extractors' Association of India overall export of oilmeals during June 2014 is reported at 0.99 lakh tons compared to 0.84 lakh tons in April 2013 i.e. up 18%. The NCDEX August Mustard seed futures added 0.57% in the last trading to settle at Rs 3555 per quintal. Technically, prices are likely to witness buying from 3530-3535, while resistances at 3592-3600 levels in near term.

S&P Ratings Services said that the commitment of the new Indian government to maintaining the trend of fiscal consoli-dation would benefit the sovereign's credit fundamentals. However, the budget announced has opted for a cautious approach toward tackling some of the economy's structural weaknesses. The budget for fiscal 2015 aims to cut the cen-tral government deficit to 4.1% of GDP, and to 3.6% of GDP in the following two years, from 4.6% in fiscal 2014. India's high fiscal deficit and resultant debt stock of about 70% of GDP are two of the main constraints on the sovereign rating.


DAILY REPORT

11th JULY 2014


GBP/INR

BUY GBP/INR ABOVE 103.36 TGTS 103.51, 103.66 SL 103.16.

SELL GBP/INR BELOW 103.05 TGTS 102.90, 102.75 SL 103.25.

JPY/INR

BUY JPY/INR ABOVE 59.72 TGTS 59.87, 60.02 SL 59.52.

SELL JPY/INR BELOW 59.42 TGTS 59.27, 59.12 SL 59.62.

CURRENCY ROUNDUP

The yen was poised to end the week higher on Friday, hav-

ing jumped to a five-month peak against the euro overnight

as banking woes in Portugal drove global equities lower and

lifted demand for the safe-haven currency. Oil prices rose

on Thursday, ending their longest losing streak in years as

traders bet a weeks-long decline had run too far.

U.S. Treasuries prices rose on Thursday, with benchmark

yields falling to their lowest in five weeks as investors

scrambled for low-risk bonds on worries that problems in-

volving Portugal's biggest listed bank may rekindle the re-

gion's financial woes.

The Reserve Bank of India said on Thursday it accepted all

58 bids for 219.65 billion rupees ($3.67 billion) at its one-

day repo auction, through which it injects liquidity into the

banking system. Indian banks' refinancing with RBI rises to

316.50 billion rupees. Indian banks' cash balances with RBI

rise to 3.24 trln rupees.

The rupee saw its biggest single-day decline in nearly a

month on Thursday as the euphoria over the Budget was

washed away by the sharp fall in European shares while key

stop-losses were also triggered. Prime Minister Narendra

Modi's new government on Thursday unveiled a maiden

Budget that seeks to revive growth and curb borrowing, but

left open questions on how it would reduce the fiscal deficit

and restore investor confidence.

The partially convertible rupee closed at 60.19/20 per dollar

versus its close of 59.75/76 on Wednesday after earlier

gaining to a one-week high of 59.57. The 0.8 percent fall in

the unit is the biggest single-day fall since June 13.

The New Zealand dollar slipped against its U.S. counterpart

on Thursday, but still remained with close distance of a

three-year high, supported by the release of upbeat manu-

facturing activity data from New Zealand. NZD/USD hit

0.8815 during late Asian trade, the session low; the pair

subsequently consolidated at 0.8812, slipping 0.14%. The

pair was likely to find support at 0.8748, the low of July 8

CURRENCY

RBI Reference Rate

Currency Rate Currency Rate

Rupee- $ 59.8750 Yen-100 59.0000

Euro 81.6925 GBP 102.5898


DAILY REPORT

11th JULY 2014


CALL REPORT

PERFORMANCE UPDATES

Date Commodity/ Currency

Pairs Contract Strategy Entry Level Target Stop Loss Remark

10/07/14 MCX GOLD AUG. BUY 27650 27730-27830 27550 BOOKED FULL

PROFIT

10/07/14 MCX GOLD AUG. SELL 27500 26420-26320 27600 NOT EXECUTED

10/07/14 MCX SILVER SEP. BUY 45100 45300-45600 4480 BOOKED FULL

PROFIT

10/07/14 MCX SILVER SEP. SELL 44700 44500-44200 45000 NOT EXECUTED

10/07/14 NCDEX GUARSEED AUG. BUY 5790 5820-5870 5740 NOT EXECUTED

10/07/14 NCDEX GUARSEED AUG. SELL 5680 5650-5600 5730 BOOKED FULL

PROFIT

10/07/14 NCDEX DHANIYA AUG. BUY 11670 11700-11750 11620 NO PROFIT NO

LOSS

10/07/14 NCDEX DHANIYA AUG. SELL 11510 11480-11430 11560 BOOKED PROFIT

10/07/14 JPY/INR JULY BUY 59.17 59.32-59.47 58.97 BOOKED FULL

PROFIT

10/07/14 JPY/INR JULY SELL 58.87 58.72-58.57 59.07 NOT EXECUTED

10/07/14 GBP/INR JULY SELL 102.44 102.29-102.14 102.64 SL TRIGGERED

10/07/14 GBP/INR JULY BUY 102.84 102.99-103.14 102.64 NOT EXECUTED

Date Scrip

CASH/

FUTURE/

OPTION

Strategy Entry Level Target Stop Loss Remark

10/07/14 NIFTY FUTURE SELL 7570 7520-7470 7620 BOOKED PROFIT

10/07/14 SYNDICATE BANK FUTURE SELL 154-155 150-145 159 SL TRIGGERED

10/07/14 APOLLO TYRE FUTURE SELL 188-190 185-181 195 NOT EXECUTED

10/07/14 COX & KINGS CASH SELL 239 235-231 243 BOOKED FULL

PROFIT

09/07/14 NIFTY FUTURE SELL 7600 7550-7500 7650 BOOKED FULL

PROFIT

09/07/14 JUST DIAL FUTURE BUY 1560 1590-1620 1530 SL TRIGGERED


DAILY REPORT

11th JULY 2014


NEXT WEEK'S U.S. ECONOMIC REPORTS

ECONOMIC CALENDAR

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Disclaimer

TIME (ET) REPORT PERIOD ACTUAL CONSENSUS FORECAST PREVIOUS

MONDAY, JULY 07

NONE SCHEDULED

TUESDAY, JULY 08

7:30 AM NFIB SMALL BUSINESS INDEX JUNE -- 96.6

10 AM JOB OPENINGS MAY -- 4.5 MLN

3 PM CONSUMER CREDIT MAY -- $27 BLN

WEDNESDAY, JULY 09

2 PM FOMC MINUTES

THURSDAY, JULY 10

8:30 AM WEEKLY JOBLESS CLAIMS 7/5 N/A 315,000

10 AM WHOLESALE INVENTORIES MAY -- 1.1%

FRIDAY, JULY 11

2 PM FEDERAL BUDGET JUNE -- -$117 BLN


Stock market special report by epic research 11th july 2014

Economy & Finance

Transcript of Stock market special report by epic research 11th july 2014