Epic research special report of 1 june 2016

DAILY REPORT 01

st JUNE 2016

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Global markets at a glance European shares were steady on Tuesday, with the re-gion's stock markets set for their best monthly perform-ance since October, as the euro's weakness on currency markets propped up export-driven companies. The pan-European STOXX 600 and FTSEurofirst 300 indexes were flat but on track for their third straight month of gains and their best month since last October. The S&P 500 wrapped up its third straight month of gains on a flat note on Tuesday as weaker energy shares coun-tered a rise in safe-haven utilities. The Nasdaq closed higher on Tuesday, and ended up 3.6 percent for the month, the best performance of the three major indexes. The Dow eked out gains for May to notch its fourth straight positive month. The DJI average fell 86.09 points, or 0.48 %, to 17,787.13, the S&P 500 lost 2.11 points, or 0.1%, to 2,096.95 and the Nasdaq Composite added 14.55 points, or 0.29 percent, to 4,948.06. Investors will be parsing through economic data, including Friday's employment report, to gauge whether the U.S. Federal Reserve will raise interest rates as soon as its June 14-15 meeting. The central bank caught investors off guard earlier this month when it signaled its next rate hike could be just weeks away Previous day Roundup The market lost shine on Tuesday after a five-day rally, wherein investors digested the prospect of recovery in cor-porate earnings in FY17, good monsoon (after 2-year drought) and passage of Goods and Services Tax Bill by win-ter session. Equity benchmarks started off day on a positive note with the Nifty reclaiming 8200-mark but could not hold for long and fell below 8150 level intraday. After a consolidation, Sensex fell 57.64 points to 26,667.96 and the Nifty declined 18.40 points to 8,160.10. The broader indi-ces also ended marginally lower as market breadth was weak. About 1564 shares declined against 995 advancing shares on BSE. With events such as a Fed rate hike and the Reserve Bank monetary policy lined up in June, shares could remain choppy in the near term. Index stats The Market was very volatile in last session. The sartorial indices performed as follow; Consumer Durables [up 32.89pts], Capital Goods [up 97.21pts], PSU [up 16.21pts], FMCG [up 98.15Pts], Realty [up 12.39pts], Power [down 12.82pts], Auto [up 442.32pts], Healthcare [up 215.48pts], IT [down 145.59pts], Metals [up 91.22Pts], TECK [down 77.63pts], Oil& Gas [down 63.85pts].

World Indices

Index Value % Change

DJI 17787.20 -0.48

S&P500 2096.96 -0.10

NASDAQ 4948.06 -0.29

FTSE100 6230.79 -0.64

NIKKEI 17120.49 -0.66

HANG SENG 20831.85 +0.08

Top Gainers

Company CMP Change % Chg

TATAMTRDVR 313.00 31.55 11.21

TATAMOTORS 455.60 34.35 8.15

AUROPHARMA 782.05 27.60 3.66

TATASTEEL 334.05 11.70 3.63

SBIN 205.30 6.45 3.24

Top Losers


SUNPHARMA 762.00 50.10 -6.17

INFRATEL 374.30 11.75 -3.04

TCS 2,567.50 68.90 -2.61

BPCL 978.55 20.90 -2.09

GAIL 372.25 7.60 -2.00

Stocks at 52 Week’s HIGH

Symbol Prev. Close Change %Chg

ACC 1,523.25 -13.90 -0.90

BIOCON 714.55 13.05 1.86

GICHSGFIN 278.00 12.40 4.67

JSWSTEEL 1,389.00 17.05 1.24

YESBANK 1,023.85 -3.10 -0.30

L&TFH 78.55 0.75 0.96

M&MFIN 320.40 -7.40 -2.26

Indian Indices


NIFTY 8160.10 -18.40 -0.22

SENSEX 26667.96 -57.64 -0.22

Stocks at 52 Week’s LOW

Symbol Prev. Close Change %Chg

ORBTEXP 218.00 -23.80 -9.84

PRECAM 131.00 -6.20 -4.52

TREEHOUSE 59.40 -11.45 -16.16

VAIBHAVGBL 235.00 -23.75 -9.18

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DAILY REPORT 01

st JUNE 2016


STOCK RECOMMENDATION [CASH] GHCL [CASH]

Yesterday we have seen a big bull run in GHCL which is around 7% .On the daily chart of GHCL, it is trading in the uptrend rally and with yesterdays big move it is expected to give further upside move after breaking its major resis-tance level of 171.40. So we advise to buy above 172 for the targets of 175 176 with the stop loss below 169.50. MACRO NEWS The economy clocked 7.6% growth rate for 2015- 16 fis-

cal and core sector output at 4-year high of 8.4%

India on target to see 3.5% fiscal deficit in FY17 Bank loans to industry remained almost static in April Oil marketing companies in focus) -Petrol price hiked by

Rs 2.6/litre. Diesle price hiked by Rs 2.3/litre Sun Pharma falls 6% on weak sales guidance. RIL exits Africa oil retail biz, sells entire 76% GAPCO stake BSE plans to sell up to 30% stake in IPO DHFL to raise up to Rs 500 cr from NCD Tree House slumps 17% as Zee Learn may re-valuate

merger post Q4 RBI says FII investment limit in Axis Bank raised to 62%

from 49% Maruti Suzuki to partially resume production at its

Manesar plant tomorrow Bharat Electronics to inaugurate 8.4 MW wind energy

power plant at Harappanahalli Enforcement Directorate attaches assets worth Rs 172

crore of Winsome Diamonds Bank of India sells loans worth Rs 8,000 crore under IBPC GMR's plan to sell airports stake fails to take off Simplex Projects Q4 (YoY) -Total income at Rs 139 crore

versus Rs 104 crore Reliance Industries plans to exit international fuel retail

business, to sell stake in GAPCO and temporarily shuts PET, PTA units at Dahej on water shortage

Mitsubishi Chemicals looking to sell majority stake in India Petchem venture

STOCK RECOMMENDATIONS [FUTURE] 1. SBIN [FUTURE]

In last trading session SBIN future opened flattish note and consolidate in first half but stock move up side in second half and stock made a high of 204.20 and cross major resis-tance level and close near day high with bullish candlestick in daily chart. We may see sharp rise for that it will be good to buy above 204.50 for the target of 206.50-210 with SL of 201. 2. TATASTEEL [FUTURE]

In last trading session TATASTEEL future show good strength and close near day high with bullish candlestick in daily chart. since last day stock outperformed in whole day and last day stock close near major resistance level. We may see sharp rise for that it will be good to buy above 340 for the target of 343-348 with SL of 336.


DAILY REPORT 01

st JUNE 2016


FUTURES & OPTIONS

MOST ACTIVE CALL OPTION

Symbol Op-

tion

Type

Strike

Price

LTP Traded

Volume

(Contracts)

Open

Interest

NIFTY CE 8,300 80.40 1,76,479 35,87,025

NIFTY CE 8,400 47.70 1,21,423 36,78,700

BANKNIFTY CE 18,000 10.55 27,145 2,21,550

TATAMOTOR CE 500 4.75 5,689 13,38,000

SBIN CE 200 11.20 5,652 37,06,000

TATAMOTOR CE 460 16.25 5,479 19,36,500

SBIN CE 230 1.80 3,378 20,58,000

SUNPHARMA CE 800 14.15 3,317 6,85,800

MOST ACTIVE PUT OPTION

Symbol Op-

tion

Type

Strike

Price

LTP Traded

Volume

(Contracts)

Open

Interest

NIFTY PE 8,000 67.15 1,56,294 59,74,075

NIFTY PE 8,100 96.00 1,52,414 29,81,175

BANKNIFTY PE 17,000 5.50 28,801 2,58,900

TATAMOTOR PE 450 16.15 3,008 9,09,000

SUNPHARMA PE 760 21.15 2,587 4,09,200

SBIN PE 190 4.15 2,580 24,54,000

SBIN PE 180 2.15 2,568 51,38,000

TATAMOTOR PE 440 12.40 2,519 9,07,500

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 48947 2939.49 39126 2340.69 288563 17398.05 598.80

INDEX OPTIONS 345269 20768.31 346539 20831.65 848308 51512.14 -63.34

STOCK FUTURES 177925 9428.14 185194 9681.99 1020824 50666.28 -253.86

STOCK OPTIONS 61501 3269.50 62385 3319.47 56678 2964.75 -49.97

TOTAL 231.63

STOCKS IN NEWS

Glenmark Pharma -Board approves raising up to USD 200 million via FCCB

Gujarat State Petronet/ONGC -Eyeing to sell majority stake in KG basin to ONGC

Vakrangee ties up with Aramex (logistics company)

ONGC Videsh acquires 15% in Vankor Field, Russia for USD 1268 million

Aurobindo to keep focus on drug launches in US, costs in Europe

NIFTY FUTURE

Although profit booking led the indexes to snap its 5-day rally Tuesday, better-than-expected GDP data for 4th quarter FY16 and five-year high for full year is expected to lift markets. But on technical chart Nifty has resistance (of 61.8% level of Fibonacci) around 8300. So we advise you to buy Nifty above 8230 for small targets of 8280 and 8350 with strict stop loss of 8150

INDICES R2 R1 PIVOT S1 S2

NIFTY 8248.60 8204.30 8169.30 8125.00 8090.00

BANKNIFTY 17762.00 17691.00 17576.00 17505.00 17390.00


DAILY REPORT 01

st JUNE 2016


COMMODITY ROUNDUP

Oil prices dipped in Asia on Monday after comments from the US central bank head implying that interest rates will rise. But traders are pinning their hopes on a tightening global market ahead of an OPEC meeting this week. Federal Chair on Friday said the US economy is improving enough to support an interest rate increase "probably in the coming months", raising the possibility of a rate hike in June or July.

Gold stayed in red though the recovery from three month lows around $1200 is holding on. COMEX Gold eased after hawkish comments from St. Louis Federal Reserve President James who noted that global markets appear to be well-prepared for a summer interest rate hike from the Fed. However, the selling seemed to be overdone and a modest recovery took the metal above $1210 levels. The metal edged up today after a slightly weak undertone in US dollar and currently trade at $1212.65 per ounce, down 0.33% on the day. MCX Gold futures are trading at Rs 28595 per 10 grams, almost unchanged on the day. Meanwhile, Gold speculator and large futures traders sharply cut their gold bullish positions last week to the lowest level in seven weeks, according to the latest COT data released by CFTC on Friday. The non-commercial futures contracts of Comex gold futures, traded by large speculators and hedge funds, totaled a net position of +206,632. This was a weekly change of -59,656 contracts from the previous week’s total of +266,288 net contracts that was registered on May 17th.

MCX Copper edged up, though one week highs above Rs 315 per kg capped the upside for the counter. COMEX Cop-per witnessed a recovery after continued losses and cur-rently trade at $2.10 per pound, still down half a percent on the day. MCX Copper is quoting at Rs 313.60 per kg, up 0.35% on the day. Copper inventory locked up in ware-houses of major exchanges is up 23% this Year, according to the ICSG. Copper production and usage data points to an apparent production surplus of nearly 24,000 metric ton-nes. However, the report predicts that the market will be very close to supply-demand balance in 2016 and 2017. The global production of refined copper is expected to register marginal growth of 0.5% to 23mn tons in 2016. Meantime, global usage of the metal is estimated to have increased by around 5% during January to February 2016 in comparison with the year before. The Chinese apparent demand in-creased sharply by 15%. The usage by world countries ex-cluding China has dropped by 2.5%. The African demand declined by 8%. The apparent demand by Americas too de-clined considerably by 4%. Also, copper usage remained essentially flat in Europe and Oceania regions.

RECOMMENDATIONS

GOLD

TRADING STRATEGY:

SELL GOLD 28680 TARGET 28500 28300 SL 28840

BUY GOLD 28300 TARGET 28500 28700 SL 28200

SILVER

TRADING STRATEGY:

SELL SILVER 38600-38650 TARGET 38400 38200 SL 38820

BUY SILVER 38050 TARGET 38300 38600 SL 37900

MCX


DAILY REPORT 01

st JUNE 2016


NCDEX

NCDEX INDICES

Index Value % Change

BARLEY 1577 +1.77

CHANA 6018 -1.07

CORIANDER 6844 +0.16

COTTON SEED 2334 +0.26

GUAR SEED 3112 -0.38

JEERA 16385 -0.03

MUSTARDSEED 4430 +0.11

REF SOYA OIL 649.4 +0.24

SUGAR M GRADE 3553 +0.88

TURMERIC 7976 +0.28

RECOMMENDATIONS

DHANIYA

BUY CORIANDER JUN ABOVE 6920 TARGET 6965 7065 SL

BELOW 6855

SELL CORIANDER JUN BELOW 6752 TARGET 6707 6607 SL

ABOVE 6817

GUARGUM

BUY GUARGUM JUN ABOVE 5400 TARGET 5450 5520 SL

BELOW 5340

SELL GUARGUM JUN BELOW 5250 TARGET 5200 5130 SL

ABOVE 5310

Profit taking was seen in turmeric market on the account of

steady supplies in local mandies along with comfortable

stocks in local mandies. The sources stated that strong sup-

plies of 5-6 lakh bags in Erode and Nizamabad mandis have

kept the overall undertone bearish. Sources suggested that

the total production of turmeric in the current year is ex-

pected to be around 58 lakh bags ( one bag =75 kgs )

against 40 lakh bags in the last year. The NCDEX Turmeric

June futures declined by 0.03% to close at Rs 7972 per quin-

tal.

pulse production was 171 lakh tonnes whereas the require-

ment was 226 lakh tonnes. This year, the requirement has

been pegged at 236 lakh tonnes. The Union Minister of

Food and Public Distribution said private importers had im-

ported lesser quantity of pulsesthan what was needed, due

to which prices rose.

Large tracts of parched lands and severe shortage of drink-

ing water in Maharashtra and Karnataka because of mon-

soon failure in the past two years have once again triggered

a debate about the desirability of growing water-intensive

crops such as sugarcane and cotton. The Indian sugarcane

productivity is stagnating at 70 tonnes a hectare. Of the 5.3-

million hectares under the cash crop, only a fraction is cov-

ered by drip irrigation. But, their average cane productivity

is 100 tonnes a hectare, giving a major boost to farm in-

come. The bottom line is cane growing by way of drip irriga-

tion leads to 65 per cent saving in water and 45 per cent in

electricity, while improving crop productivity by 40 per

cent, compared to flow irrigation.


DAILY REPORT 01

st JUNE 2016


RBI Reference Rate

Currency Rate Currency Rate

Rupee- $ 67.2030 Yen-100 60.4000

Euro 74.7902 GBP 98.6540

CURRENCY

USD/INR

BUY USD/INR JUN ABOVE 67.71 TARGET 67.84 67.99 SL BE-

LOW 67.51

SELL USD/INR JUN BELOW 67.42 TARGET 67.29 67.14 SL

ABOVE 67.62

EUR/INR

BUY EUR/INR JUN ABOVE 75.64 TARGET 75.79 75.99 SL BE-

LOW 75.44

SELL EUR/INR JUN BELOW 75.5 TARGET 75.35 75.15 SL

ABOVE 75.7

CURRENCY MARKET UPDATES:

Falling for second straight day, the rupee today lost 10

paise against the US dollar to settle at 67.26 a dollar due

to sustained demand for the American currency from

banks and importers. Some caution ahead of the GDP

growth data and buoyant dollar overseas predominantly

impacted trading sentiments. Sluggish local equity mar-

kets after five-day rally also weighed on trade, though

smooth supply of dollars due to persistent capital in-

flows into equities and debts largely cushioned the fall.

At the Interbank Foreign Exchange market, the domestic

currency opened marginally higher at 67.15 as against

its overnight closing value of 67.16 and strengthened

further to touch intra-day high of 67.1075 tracking firm

opening in the domestic market. It turned volatile in late

afternoon deals and drifted to hit a low of 67.33 follow-

ing robust dollar demand from importers. However, ru-

pee made some recovery towards the fag-end session

and closed at 67.26, revealing a loss of 10 paise, or 0.15

per cent. Yesterday, the rupee had lost 13 paise against

the dollar.

In cross-currency trades, the rupee fell back against the

pound sterling and ended at 98.46 from 98.12 and de-

clined against the euro to finish at 75.10 compared to

74.82 earlier. The domestic unit also weakened against

the yen to close at 60.58 per 100 yens from 60.46 yes-

terday. Meanwhile, FIIs continued to mop up Indian

stocks and bought shares worth a net Rs 355.54 crore

yesterday, as per the provisional data.

On the global front, the dollar continued to hover at two

-month highs against other major currencies on growing

expectations for an imminent rate hike next month even

as investors eyed the release of key macro data later in

the day. In forward market, premium for dollar fell fur-

ther sharply due to sustained receiving from exporters.


DAILY REPORT 01

st JUNE 2016


Date Commodity/ Currency

Pairs Contract Strategy Entry Level Target Stop Loss Remark

31/05/16 NCDEX DHANIYA JUNE BUY 6930 6975-7075 6865 NOT EXECUTED

31/05/16 NCDEX DHANIYA JUNE SELL 6752 6707-6607 6817 NOT EXECUTED

31/05/16 NCDEX GUARGUM JUNE BUY 5400 5450-5520 5340 NOT EXECUTED

31/05/16 NCDEX GUARGUM JUNE SELL 5190 5140-5070 5250 NOT EXECUTED

31/05/16 MCX GOLD JUNE BUY 28700 28800-28900 26590 SL TRIGGERED

31/05/16 MCX GOLD JUNE SELL 28550 28460-28300 28665 NOT EXECUTED

31/05/16 MCX SILVER JUNE BUY 38700 39000-39150 38400 SL TRIGGERED

31/05/16 MCX SILVER JUNE SELL 39100-39150 38700-38400 39300 NOT EXECUTED

Date Scrip

CASH/

FUTURE/

OPTION

Strategy Entry Level Target Stop Loss Remark

31/05/16 NIFTY FUTURE BUY 8150 8220-8300 8050 NOT EXECUTED

31/05/16 ARVIND FUTURE BUY 321 323.5-327 317 BOOKED PROFIT

31/05/16 HINDALCO FUTURE BUY 104.4 105.5-108 102 BOOKED FULL PROFIT

31/05/16 KPIT CASH BUY 180 183.5-184.5 177 CALL OPEN

30/05/16 NIFTY FUTURE BUY 8185 8250-8350 8100 CALL OPEN


DAILY REPORT 01

st JUNE 2016


NEXT WEEK'S U.S. ECONOMIC REPORTS

ECONOMIC CALENDAR

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Disclaimer

TIME REPORT PERIOD ACTUAL CONSENSUS

FORECAST PREVIOUS

MONDAY, MAY 23

9:45 AM MARKIT PMI FLASH MAY -- 50.8

TUESDAY, MAY 24

10 AM NEW HOME SALES APRIL 523,000 511,000

WEDNESDAY, MAY 25

8;30 AM ADVANCE TRADE IN GOODS APRIL -$61.2 BLN -$56.9 BLN

THURSDAY, MAY 26

8:30 AM WEEKLY JOBLESS CLAIMS MAY 21 -- --

8:30 AM DURABLE GOODS ORDERS APRIL -0.1% 0.8%

10 AM PENDING HOME SALES APRIL 1.0% 1.4%

FRIDAY, MAY 27

8:30 AM GDP REVISION 1Q 0.8% 0.5%

10 AM CONSUMER SENTIMENT MAY -- 95.8


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Epic research special report of 1 june 2016