epic research special report of 5 jan 2016

DAILY REPORT

05th

JAN. 2016

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Global markets at a glance

US stocks began 2016 sharply lower on Monday, with the Dow marking its worst start to a year since 2008, after weak Chinese economic data fanned fears of a global slow-down. Indexes partly recovered late in the session, follow-ing a turnaround in oil prices that caused energy shares to cut losses. At its low for the day, the Dow was down 467 points and was headed for its worst first-day %age drop since 1932. Nasdaq led the day's decline and Amazon, down 5.8 % at USD 636.99, weighed the most on the S&P 500 and Nasdaq, while the Nasdaq Biotech Index dropped 3.2 %. The DJI average closed down 276.09 points, or 1.58 %, to 17,148.94, the S&P 500 lost 31.28pts, or 1.53 %, to 2,012.66 and the Nasdaq Composite dropped 104.32 points, or 2.08 %, to 4,903.09. Both the S&P 500 and the Nasdaq had their worst starts to a year since 2001.

Chinese markets tumbled at the open Tuesday, but quickly erased early losses as Asian markets recovered from a sharp selloff in the previous session. The Shanghai Compos-ite tacked on 0.95 % after initially trading down as much as 3.1 %. In Hong Kong, the Hang Seng Index added 0.56 %. In Monday's trading session, Chinese equities plunged after feeble manufacturing surveys revived concerns over the country's economic slowdown.

Previous day Roundup

The domestic equity market came under the bear grip on Monday, as equity markets the world over succumbed to selling pressure on fears of further economic slowdown in China. China's Dec manufacturing PMI slipped to 48.2 from 48.6 in Nov, heightening investor fears and causing the Shanghai Composite and Shenzen Composite to tumble 6.85% and 8.22%, respectively. The Sensex slumped 537 pts, or 2.05%, to 25,623.35 tracking the widespread selling in other Asian and European markets. Nifty50, the 50-stock barometer, slipped 172pts, or 2.16%, to 7,791. India's own manufacturing sector output also contracted for the first time in over two years, dipping to a 28-month low in Dec.

Index stats

The Market was very volatile in last session. The sartorial indices performed as follow; Consumer Durables [down 21.09pts], Capital Goods [down 298.05Pts], PSU [down 112.26pts], FMCG [down 46.09Pts], Realty [down 27.88Pts], Power [down 10.12pts], Auto [down 395.92Pts], Healthcare [down 303.72Pts], IT [down 151.15pts], Metals [down 93.24Pts], TECK [down 105.43pts], Oil& Gas [down 139.99pts].

World Indices

Index Value % Change

D J l 17148.94 -1.58

S&P 500 2012.66 -1.53

NASDAQ 4903.09 -2.08

FTSE 100 6093.43 -2.39

Nikkei 225 18527.35 +0.41

Hong Kong 21342.33 +0.07

Top Gainers

Company CMP Change % Chg

TATASTEEL 259.00 1.10 0.62

ASIANPAINT 880.50 1.75 0.20

HCLTECH 846.95 1.60 0.13

Top Losers


TATAMOTORS 376.15 25.75 -6.41

IDEA 136.20 7.00 -4.89

BANKBARODA 151.55 7.50 -4.72

HINDALCO 81.00 3.90 -4.59

PNB 112.90 4.70 -4.00

Stocks at 52 Week’s HIGH

Symbol Prev. Close Change %Chg

BEL 1,370.15 -5.60 -0.41

BIOCON 539.60 18.40 3.53

NHPC 21.50 0.30 1.42

ZUARIGLOB 113.90 6.40 5.95

Indian Indices


NIFTY 7791.30 -171.90 -2.16

SENSEX 25623.35 -537.55 -2.05

Stocks at 52 Week’s LOW

Symbol Prev. Close Change %Chg

CANBK 233.60 -4.70 -1.97

GLOBOFFS 330.00 -5.40 -1.61

LT 1,253.55 -35.65 -2.77

PNB 112.90 -4.70 -4.00

SBIN 221.10 -6.70 -2.94

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DAILY REPORT

05th

JAN. 2016


STOCK RECOMMENDATION [CASH] 3. ORIENTPPR

ORIENTPPR made new 52 week high & frizzed at 10% up-per circuit on monthly chart it given breakout above 37 since around 40 it has 100DMA & at 36.25 it has 55DMA support so buy it above 38 for target of 39 40 if it given close above 40 then it may give target up to 47 with stop loss of 36 MACRO NEWS IRB bags Rs 10,050-cr Zozila pass tunnel project in J&K Saudi Arabia severs diplomatic ties with Iran over execu-

tion Welspun Ent targets 8x growth in order book over 3-5

yrs State-run banks likely sold dollars to stem rupee fall Bajaj Auto Dec sales flat YoY at 2.89L; exports under

pressure Hero Cycles sells record 6 lakh units in December RBI imposes Rs 1 crore fine on State Bank of Travancore SBI, State Bank of Travancore sell Kohinoor arm's loans

to Edelweiss ARC Harsimrat Kaur Badal pitches for 100% FDI in food prod-

ucts retailing Vedanta to hire Lafarge’s Samir Cairae to head metal

business Punj Lloyd wins Rs 1,555 crore worth highway contracts Cement prices decline 7.3 per cent due to lack of de-

mand in December: Reliance Securities report Novartis completes transcation to sell animal health

business to Elanco India Cadila gets US FDA warning for violating standards at

Moraiya and Ahmedabad plants

STOCK RECOMMENDATIONS [FUTURE] 1. IGL [FUTURE]

IGL FUTURE create double top pattern on EOD chart & at last session it given close below 61.8% of Fibonacci price exten-sion while STOCHASTIC already given negative cross over so technically it is weak for that it will be good to sell it below 520 for target of 516 510. 2. BANK INDIA [FUTURE]

Shanghai market made pressure on domestic market where shanghai market trading halt after bad PMI data for that Nifty finished with 2% loss & big impact seen on to banking where many of bank loosed around 3-6% in that BANK INDIA finished near 52 week lowest level at 113.45 since in DECEM-BER it given bounce from 113 so we advise to sell it below 113 for target of 111.50 109.50 106 with stop loss of 115.10.


DAILY REPORT

05th

JAN. 2016


FUTURE & OPTION

MOST ACTIVE CALL OPTION

Symbol Op-

tion

Type

Strike

Price

LTP Traded

Volume

(Contracts)

Open

Interest

NIFTY CE 8,000 48.90 2,94,076 42,46,575

NIFTY CE 8,100 27.40 2,00,127 43,09,875

BANKNIFTY CE 17,500 64.35 68,764 5,30,490

SBIN CE 230 3.70 3,874 45,82,000

RELINFRA CE 600 30.40 3,359 8,98,300

TATAMOTORS CE 400 6.30 2,674 17,53,500

LT CE 1,300 19.00 2,624 5,69,100

TATASTEEL CE 260 9.45 2,512 13,20,000

MOST ACTIVE PUT OPTION

Symbol Op-

tion

Type

Strike

Price

LTP Traded

Volume

(Contracts)

Open

Interest

NIFTY PE 7,800 124.25 2,43,643 39,53,400

NIFTY PE 7,700 87.25 2,12,072 36,91,125

BANKNIFTY PE 16,500 295.00 62,795 4,97,850

SBIN PE 220 6.00 1,778 13,74,000

TATASTEEL PE 250 6.30 1,675 9,12,000

RELINCE PE 1,000 25.70 1,673 3,92,500

TATAMOTOR PE 360 7.10 1,481 7,32,000

LT PE 1,250 31.75 1,460 2,44,500

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 41349 2361.12 42003 2400.66 264895 15124.68 -39.54

INDEX OPTIONS 509068 29118.63 432798 24993.21 788021 45646.28 4125.42

STOCK FUTURES 70527 3654.58 75856 3914.00 987983 48735.30 -259.42

STOCK OPTIONS 47950 2516.14 47572 2490.75 33705 1677.37 25.39

TOTAL 3851.86

STOCKS IN NEWS IFCI to divest partial stake in Stock Holding Corpora-

tion Of India Eros enters into platform & content deal with Idea Gravita India ventures into business of plastic recy-

cling Grasim completes merger with Aditya Birla Chemicals JSW Steel says Karnataka HC rules partial relief on

payment of forest development tax L&T Infotech receives Sebi's approval to float an IPO

worth Rs 2,000 crore MOIL cuts prices of all ferro grades ores by 10 percent

for January-March quarter NIFTY FUTURE

China economy slowdown fears dragged down the Indian markets, where Nifty also felt pressure and came down with volumes. The bearishness is seen again for tomor-row’s session. So we advise you to sell Nifty Future around 7850 for the targets of 7750 and 7600 with strict stop loss of 8030

INDICES R2 R1 PIVOT S1 S2

BANK NIFTY 17,104.00 16,851.00 16,713.00 16,460.00 16,322.00

NIFTY 7,993.00 7,892.00 7,836.00 7,735.00 7,679.00


DAILY REPORT

05th

JAN. 2016


RECOMMENDATIONS

GOLD

TRADING STRATEGY:

BUY GOLD FEB ABOVE 25500 TGTS 25580,25670 SL BELOW

25400

SELL GOLD FEB BELOW 25300 TGTS 25220,25130 SL

ABOVE 25400

SILVER

TRADING STRATEGY:

BUY SILVER MAR ABOVE 33600 TGTS 33800,34100 SL BE-

LOW 33300

SELL SILVER MAR BELOW 33300 TGTS 33450,33150 SL

ABOVE 33600

COMMODITY ROUNDUP

Gold soared above $1070 per ounce mark today amid a panic selloff in global equities. Chinese stocks plunged nearly 7 % Monday, triggering an emergency trading sus-pension and hitting global markets. Markets were in a state of panic on weak Chinese manufacturing data and tensions in the Middle East. Stocks in Europe are down about 2.5% - 3% and US equities are look likely extending this momen-tum. COMEX Gold is trading at $1072 per barrel, up 1.10% on the day. MCX Gold futures are trading at Rs 25304 per 10 grams, up1.37% on the day. Gold speculator and large fu-tures traders increased their net gold bullish positions last week. The non-commercial futures contracts of Comex gold futures, traded by large speculators and hedge funds, to-taled a net position of+26427 contracts. This was a weekly change of+12771 contracts from the previous week’s total of +13656 net contracts that was registered on Dec 15th.

Silver prices were up by Rs 98 to Rs 33,433 per kg in futures trade after participants raised their bets amid firming global trends. At MCX silver for delivery in March was up by Rs 98 or 0.29%, to Rs 33,433 per kg in a business turnover of 476 lots. The Silver for delivery in far-month May traded higher by Rs 90 or 0.27%, to Rs 33,857 per kg in 13 lots. The rise in silver prices at futures trade to a firming trend in the pre-cious metal overseas as growing tension between Saudi Ara-bia and Iran spurred demand for the precious metals as a safe haven investment. Meanwhile, silver traded 0.33% higher at $13.88 an ounce in Singapore.

Zinc, a metal that is used in Galvanization remained dull in the year ending 2015. On LME, prices averaged at $ 1522 per tonne in Dec 2015, down 30% from Dec 2014. World supply of refined Zinc metal exceeded demand by 213000 tonnes over the ten months from January to Sep 2015. Over the same period total reported stock levels declined by 121000 tonnes. Global zinc mine production rose by 1.4% mainly as a result of increases in Australia, India, Peru, the Russian Federation and Sweden.

An increase in world refined zinc metal production of 5.2% was primarily due to higher output in China, India and the Republic of Korea. Demand for refined zinc metal in China grew by 1.8% and in Europe, by 2.2%. These rises together with increases in Taiwan (China) and Thailand more than offset decreases in India, Japan, the Republic of Korea, Tur-key and the United States resulting in an overall global rise of 1.1%. Chinese imports of zinc contained in zinc concen-trates amounted to 1.14 million tonnes, an increase of 58%


DAILY REPORT

05th

JAN. 2016


NCDEX

NCDEX ROUNDUP

Due to unusually dry and warm winter wheat sowing is lag-ging behind and it will impact production by at least 5%. Wheat production in India, the world's second-largest pro-ducer, is likely to fall below 90 million tonnes (MT) for the second year in a row in 2015-16 due to an unusually dry and warm winter. Wheat output had declined to 88.95 MT in 2014-15 due to to poor monsoon and unseasonal rains in February-March, as against a record 95.85 MT achieved in the previous year. Sowing of wheat, a major rabi (winter) crop, begins from October and harvest starts from April.

Chana prices have maintained steady trend due to decline in sowing acreage coupled with limited stocks in local mandies. As per official data, the total sowing acreage of pulses has been declined by 2.35 % to 128.24 lakh hectares as area of pulses was shifted towards coarse cereals in ma-jor draught impacted states such Andhra Pradesh , Rajast-han and Orissa. The prices were also encouraged by limited stocks of Desi Chana in local mandies. The NCDEX Chana futures increased by 0.67 % to close at Rs 4498 per quintal.

Farmers not switching to pulses as MSPs fail to keep pace with rising costs

Vietnam overseas rice shipments for 2015 jumped 5.8% on-year in volume to 6.7 million metric tons. MARD said the overall value of those exports dipped 2.9% for the year to US$2.85 billion, with prices for the year averaging US$425.83 per metric ton, down 8.05% compared to 2014.China remained the top export market, accounting for right at one-third of market share.

NCDEX INDICES

Index Value % Change

CASTOR SEED 3708 -1.23

CHANA 4907 +1.83

CORIANDER 7001 -1.52

COTTON SEED 2112 -1.40

GUAR SEED 3356 -0.97

JEERA 14070 -1.54

MUSTARDSEED 4260 +0.33

SOY BEAN 3696 -0.30

SUGAR M GRADE 3212 -0.96

TURMERIC 9722 -0.51

RECOMMENDATIONS

DHANIYA

BUY CORIANDER JAN ABOVE 7230 TARGET 7275 7425 SL

BELOW 7165

SELL CORIANDER JAN BELOW 6970 TARGET 6925 6775 SL

ABOVE 7035

GUARGUM

BUY GUARGUM JAN ABOVE 6570 TARGET 6620 6690 SL

BELOW 6510

SELL GUARGUM JAN BELOW 6430 TARGET 6380 6310 SL

ABOVE 6490


DAILY REPORT

05th

JAN. 2016


RBI Reference Rate

Currency Rate Currency Rate

Rupee- $ 66.4623 Yen-100 55.6500

Euro 72.3907 GBP 97.9455

CURRENCY

USD/INR

BUY USD/INR JAN ABOVE 66.8 TARGET 66.93 67.08 SL BE-

LOW 66.6

SELL USD/INR JAN BELOW 66.6 TARGET 66.47 66.32 SL

ABOVE 66.8

EUR/INR

BUY EUR/INR JAN ABOVE 73.03 TARGET 73.18 73.38 SL BE-

LOW 72.83

SELL EUR/INR JAN BELOW 72.88 TARGET 72.73 72.53 SL

ABOVE 73.08

CURRENCY MARKET UPDATES: The rupee plunged to a two-week low of 66.61 by falling 47 paise against the US dollar on heavy demand for the American currency from importers and banks largely im-pacted by global economic and political headwinds. A sud-den spike in crude oil prices against the backdrop of heightened geopolitical tension in the Middle East after Saudi Arabia snapped diplomatic ties with Iran alongside worsening economic data from China predominantly re-flected on trading sentiment. The domestic currency resumed substantially lower at 66.25 compared to weekend’s close of 66.14 at the Inter-bank forex market on fresh bouts of dollar demand. It kept descending, weighed down by global uncertainties and sliding local equities to hit an intra-day low of 66.63, be-fore ending at 66.61, showing a steep loss of 47 paise, or 0.71 per cent, snapping its three-session upmove. The do-mestic currency resumed substantially lower at 66.25 com-pared to weekend’s close of 66.14 at Interbank forex mar-ket on fresh bouts of dollar demand. In cross-currency trades, the rupee dropped sharply against the pound sterling to finish at 98.41 from last Fri-day’s level of 97.54 and slipped against the euro to end at 72.63 as compared to 71.81 per euro. While, it tumbled against the Japanese Yen to settle at 56.07 from weekend level of 54.98 per 100 yen. The US dollar was relatively lower against a basket of cur-rencies on Monday, as concerns over growth in China and geopolitical tensions in the Middle East boosted investor demand for the safe-haven yen and Swiss franc. The dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was lower at 98.43. The European unit gained 0.40% to 1.0898 versus the greenback. USD/JPY tumbled 1.05% to 118.97. As against the pound, dollar was lower with GBP/USD rising 0.34% to 1.4788. Markets shrugged off data showing that the Markit manufacturing PMI fell to a three-month low of 51.9 from 52.5 in November, compared to forecasts for an uptick to 52.7.


DAILY REPORT

05th

JAN. 2016


Date Commodity/ Currency

Pairs Contract Strategy Entry Level Target Stop Loss Remark

04/01/16 NCDEX DHANIYA JAN. BUY 7300 7345-7495 7235 NOT EXECUTED

04/01/16 NCDEX DHANIYA JAN. SELL 7050 7005-6855 7115 BOOKED PART PROFIT

04/01/16 NCDEX GUARGUM JAN. BUY 6640 6690-6760 6580 SL TRIGGERED

04/01/16 NCDEX GUARGUM JAN. SELL 6530 6480-6410 6590 BOOKED PROFIT

04/01/16 MCX GOLD FEB. BUY 25000 25080-25180 24900 BOOKED PART PROFIT

04/01/16 MCX GOLD FEB. SELL 24800 24720-24620 24890 NOT EXECUTED

04/01/16 MCX SILVER MAR. BUY 33400 33700-34000 33100 BOOKED PART PROFIT

04/01/16 MCX SILVER MAR. SELL 33100 32900-32600 33400 NOT EXECUTED

Date Scrip

CASH/

FUTURE/

OPTION

Strategy Entry Level Target Stop Loss Remark

04/01/16 NIFTY FUTURE SELL 8030-8050 7960-7860 8130 NOT EXECUTED

04/01/16 JINDALSTEL FUTURE SELL 94.00 93.00-91.00 95.10 BOOKED PART PROFIT

04/01/16 BEML FUTURE BUY 1330 1350-1380 1309 SL TRIGGERED

04/01/16 VIMTALABS CASH SELL 102 100-97.00 104 BOOKED PART PROFIT

29/12/15 MCX FUTURE BUY 930-932 950 910


DAILY REPORT

05th

JAN. 2016


NEXT WEEK'S U.S. ECONOMIC REPORTS

ECONOMIC CALENDAR

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TIME REPORT PERIOD ACTUAL CONSENSUS

FORECAST PREVIOUS

MONDAY, JAN. 04

9:45 AM MARKIT PMI DEC. -- 51.3

10 AM ISM DEC. 49.1% 48.6%

10 AM CONSTRUCTION SPENDING NOV. 0.9% 1.0%

TUESDAY, JAN. 05

TBA MOTOR VEHICLE SALES DEC. 18.1 MLN 18.1 MLN

WEDNESDAY, JAN. 06

8:15 AM ADP EMPLOYMENT DEC. -- 217,000

8:30 AM TRADE DEFICIT NOV. -$44.1 BLN -$43.9 BLN

10 AM FACTORY ORDERS NOV. -0.1% 1.5%

10 AM ISM NONMANUFACTURING INDEX DEC. 56.5% 55.9%

THURSDAY, JAN. 07

8:30 AM WEEKLY JOBLESS CLAIMS DEC. 26 N/A N/A

FRIDAY, JAN. 08

8:30 AM NONFARM PAYROLLS DEC. 204,000 211,000

8:30 AM UNEMPLOYMENT RATE DEC. 5.0% 5.0%

8:30 AM AVERAGE HOURLY EARNINGS DEC. 0.1% 0.2%

3 PM CONSUMER CREDIT NOV. -- $16 BLN


epic research special report of 5 jan 2016

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