Epic research special report of 10 may 2016

DAILY REPORT

10th MAY 2016

YOUR MINTVISORY Call us at +91-731-6642300

Global markets at a glance

Asia markets traded mixed on Tuesday, with the Japanese

benchmark index leading gains in early trade, ahead of Chi-

nese inflation data due later on Tuesday. Australia's ASX

200 was down 0.36 percent, weighed by steep declines in

the energy and materials sub-indexes, down 2.21 and 3.13

percent respectively. In Japan, the Nikkei 225 added 0.38

percent, while across the Korean Strait, the Kospi was flat.

US stocks closed mixed in high-volume trade, with the Dow

Jones industrial average was down 0.2 percent, the S&P

500 closed up 0.08 percent and the Nasdaq composite

added 0.3 percent. In company news, shares of troubled

Japanese airbag makers Takata fell 3.24 percent in early

trade, following reports on additional recalls. The Japanese

business daily Nikkei reported the government had urged

automakers to recall an additional seven million or so vehi-

cles with faulty Takata air bags sold in the country. If auto-

makers in Japan comply, the tally of vehicles recalled with

Takata air bags worldwide will be roughly 120 million, the

Nikkei reported. Major resources producers in Australia

were sharply lower on Tuesday on the back of Monday's

falling commodity prices.

Previous day Roundup

The market ended with hefty gains. The Sensex closed up

460.36 points or 1.8 percent at 25688.86, and the Nifty was

up 132.60 points or 1.7 percent at 7866.05. About 1665

shares have advanced, 972 shares declined, and 165 shares

are unchanged. Indian shares rose nearly 2 percent on

Monday, posting their biggest single-day percentage gain in

nearly four weeks, as a recent string of positive corporate

results raised tentative hopes about an improving domestic

economy. Sentiment was also boosted after a weaker-than-

expected U.S. jobs report on Friday left some economists

anticipating only one interest rate hike from the Federal

Reserve this year.

Index stats

The Market was very volatile in last session. The sartorial

indices performed as follow; Consumer Durables [up

96.81pts], Capital Goods [up 244.36Pts], PSU [up 79.26pts],

FMCG [up 87.70Pts], Realty [up 23.26pts], Power [up

25.56pts], Auto [up 292.60pts], Healthcare [up 87.41pts], IT

[up 142.43pts], Metals [up 41.12Pts], TECK [up 88.44pts],

Oil& Gas [up 63.86pts].

World Indices

Index Value % Change

D J l 17705.91 -0.20

S&P 500 2058.69 +0.08

NASDAQ 4750.21 +0.30

FTSE 100 6114.81 -0.18

Nikkei 225 16467.26 +1.55

Hong Kong 20105.70 -0.25

Top Gainers

Company CMP Change % Chg

BOSCHLTD 20,000.60 872.65 4.56

ZEEL 420.95 17.85 4.43

BAJAJ-AUTO 2,537.00 101.80 4.18

YESBANK 945.05 34.85 3.83

AXISBANK 477.50 16.05 3.48

Top Losers


DRREDDY 2,840.00 26.30 -0.92

HINDUNILVR 848.00 5.40 -0.63

HCLTECH 719.20 3.40 -0.47

IDEA 113.70 0.50 -0.44

CIPLA 536.45 0.90 -0.17

Stocks at 52 Week’s HIGH

Symbol Prev. Close Change %Chg

HDFCBANK 1,141.50 21.85 1.95

IBREALEST 80.50 4.20 5.50

INDUSINDBK 1,054.15 11.95 1.15

KRBL 264.40 8.55 3.34

- -

Indian Indices


NIFTY 7866.05 +13260 +1.71

SENSEX 25688.8 +460.36 +1.82

Stocks at 52 Week’s LOW

Symbol Prev. Close Change %Chg

ELDERPHARM 28.90 -1.50 -4.93

HCLTECH 719.20 -3.40 -0.47

THYROCARE 616.50 -48.50 -7.29

- -

http://www.epicresearch.co/

DAILY REPORT

10th MAY 2016


STOCK RECOMMENDATION [CASH] 3. KRBL

In last session KRBL made new 52 week high of 265.85 with good volume and finished with open Marubozu can-dle on daily chart which is indicating more upside but buy with strict stop loss of 263 for target of 270 275 MACRO NEWS HSBC arm slashes Zomato valuation to $500 million Domestic car sales up 1.87% in April Rs 43,000 crore lies in inoperative EPF accounts: Govt Sebi expands probe into financial dealings of Mallya

firms Home prices hit roof but affordability also at its best Govt considering low-cost housing scheme for EPFO sub-

scribers ONGC crude oil output up in FY16 Maruti plans to widen auto gear shift portfolio SBI-led banks in search of Rs 20,000 crore borrowed by

Alok Industries Combined profit of 5 state banks falls to one-tenth at Rs

108 crore in Q4 Petrol prices slashed 32 times, hiked 21 times since 2013 Malaysian firm invests $300 million in GMR's select en-

ergy assets CIL customers support withdrawal of incentive policy SCCL's coal output rises 3 per cent to 4.44 MT in April Steel consumption falls to 1-year low of 5.75 MT in April AuroPharma gets final USFDA nod for cholesterol drug Tata Steel Europe: 7 expression of interest for UK op-

erations taken through to the next stage MM Forgings Q4 Net Profit Down 0.9 percent At Rs 11 Cr

Vs Rs 11.1 Cr (YoY) Jaypee Group NCDRC comes down heavily on group for

delays in project ‘Kalypso Court’ at Jaypee Greens

STOCK RECOMMENDATIONS [FUTURE] 1. CASTORIND [FUTURE]

In last three session CASTROLIND FUTURE given sharp bounce back from 388 and finished at last three months high, now 429 is resistance so we can see strong up move above 429 so we advise to buy it above 429 for target of 440 460 with stop loss of 420 2. HCLTECH [FUTURE]

HCLTECH FUTURE continuously facing selling pressure and making new 52 week low in last session it broken last week bottom of 725 & after making low of 722 it finished at 725.45 since on daily chart candle formation is bearish in-verted hammer so sell on rise will be good around 735 with strict stop loss of 743 for target of 725 722 715


DAILY REPORT

10th MAY 2016


FUTURES & OPTIONS

MOST ACTIVE CALL OPTION

Symbol Op-

tion

Type

Strike

Price

LTP Traded

Volume

(Contracts)

Open

Interest

NIFTY CE 7,900 107.00 3,05,984 52,44,600

NIFTY CE 8,100 32.50 1,97,168 57,94,800

BANKNIFTY CE 17,000 185.05 59,177 5,74,140

RELIANCE CE 1,000 13.10 4,533 14,60,000

ICICIBANK CE 230 5.20 3,773 40,44,300

WOCKPHARM CE 1,000 23.65 3,464 2,64,375

SBIN CE 190 6.20 3,416 28,08,000

ICICIBANK CE 250 1.10 3,052 54,51,900

MOST ACTIVE PUT OPTION

Symbol Op-

tion

Type

Strike

Price

LTP Traded

Volume

(Contracts)

Open

Interest

NIFTY PE 7,800 58.80 2,44,328 45,78,450

NIFTY PE 7,700 35.60 2,25,632 56,00,775

BANKNIFTY PE 16,000 65.00 46,190 4,92,870

HINDUNILVR PE 820 6.55 2,069 3,39,000

WOCKPHARM PE 900 21.70 1,985 1,99,125

ICICIBANK PE 210 1.80 1,309 25,31,300

RELIANCE PE 980 15.05 1,291 6,20,500

SBIN PE 180 2.80 1,179 15,86,000

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 39637 2276.84 27843 1581.81 240042 13856.33 695.03

INDEX OPTIONS 455272 26087.42 419883 24030.88 1065831 62387.71 2056.54

STOCK FUTURES 77478 3881.38 94124 4738.25 999318 48295.81 -856.87

STOCK OPTIONS 48164 2371.23 47751 2356.54 62355 3046.18 14.69

TOTAL 1909.39

STOCKS IN NEWS ICICI Q4 profit tanks 76% on exceptional provision, NPA

worsens Ajanta Pharma Q4 profit up 43% but operating margin

disappoints Force Motors Q4 profit up 59% on strong perrfor-

mance State Bank of Bikaner & Jaipur Q4 net down 31% at Rs

193 cr HUL Q4 net profit gains 7%, volume growth disap-

points at 4% ITC up on progressive resumption of cigarette factories NIFTY FUTURE

Nifty in yesterday trading session remained up all day, affected by some corporate earnings and global factors. Nifty crossed 200 EMA and closed with a further positive candlestick. So we recommend you buy it again from around 7900 for the targets of 7960 and 8050 with strict stop loss of 7820

INDICES R2 R1 PIVOT S1 S2

NIFTY 7,951.18 7,908.62 7,831.08 7,788.52 7,710.98

BANKNIFTY 16,941.23 16,813.67 16,585.33 16,457.77 16,229.43


DAILY REPORT

10th MAY 2016


COMMODITY ROUNDUP Copper remained bearish even after a sharp debacle seen in the prices on the first quotes. The prices fell more than 1% on the first tick and have maintained a weak display in the session. MCX Copper ended the trades at Rs 314.80 per kg, down 1.67%. The prices tested a high of Rs 315.65 per kg and a low of Rs 313.50. Meanwhile. Copper net short posi-tion dropped this week but at much slower pace. Net short position decreased by 616 contracts to down 7.46K con-tracts. Plunging oil and copper prices have affected Free-port's ability to pay down its large debt burden. Net debt stood at more than $20bn at the end of March, compared to the company's market capitalization of $15.4bn. In the first four months, the imports totaled 1.88mt, 23% more than the same period a year earlier. The WTI Crude oil futures edged up towards their four month highs but stalled thereafter as global economic wor-ries capped the upside for the commodity. Equities mostlt stayed well supported as a tepid US nonfarm payrolls data reflected that the US Fed is unlikely to raise interest rates in a hurry. Major indices in Europe are up about 1% right now. WTI Crude oil futures almost hit $46 per barrel before eas-ing and currently trade at $44.60 per barrel, mildly falling into red. MCX Crude oil futures soared near Rs 3050 per barrel and currently trade at Rs 2977 per barrel, almost un-changed on the day. Meanwhile, Iron ore and Steel rebar futures fell limit down in China as speculators continued to exit positions. Iron ore inventories stockpiled at ports across China are soaring amid weak domestic demand a frail export scenario. China's exports dropped 1.8 percent year-over-year in April, while it was expected to remain flat. Imports plunged 10.9% in April from a year ago. The non-commercial contracts of crude oil futures, traded by large speculators, traders and hedge funds, totaled a net position of +318,544 contracts in the data reported for May 3rd. This was a change of -15,721 contracts from the previous week’s total of +334,265 net contracts for the data reported through April 26th. AngloGold Ashanti, the world’s top gold miner, said earn-ings dropped 6% on weak Gold prices. Adjusted earnings before interest, tax, depreciation and amortization de-creased to $378 million in the three months to March 31, compared with $402 million a year earlier, the Johannes-burg-based company said in a statement. Gold production dropped 11% to 861,000 ounces while all-in sustaining costs slipped 6.5% to $860 an ounce. However, the company again generated significant free cash flow despite the lower gold price.

RECOMMENDATIONS

GOLD

TRADING STRATEGY:

BUY GOLD ABOVE 30150 TARGET 30300 30500 SL 30000

SELL GOLD BELOWE 29700 TARGET 29550 29350 SL 29900

SILVER

TRADING STRATEGY:

SELL SILVER BELOW 40600 TARGET 40300 40000 SL 40900

BUY SILVER ABOVE 41100 TARGET 41350 41500 SL 40800

MCX


DAILY REPORT

10th MAY 2016


NCDEX

NCDEX INDICES

Index Value % Change

BARLEY 1525.5 +0.10

CHANA 5608 +1.30

CORIANDER 7090 -0.53

COTTON SEED 2214 -2.98

GUAR SEED 3220 -0.19

JEERA 16780 -0.74

MUSTARDSEED 4433 +0.91

REFINED SOYA OIL 651.2 +1.17

SUGAR M GRADE 3337 -0.24

TURMERIC 8110 +0.02

RECOMMENDATIONS

DHANIYA

BUY CORIANDER JUN ABOVE 7190 TARGET 7235 7335 SL

BELOW 7125

SELL CORIANDER JUN BELOW 7100 TARGET 7055 6955 SL

ABOVE 7165

GUARGUM

BUY GUARGUM JUN ABOVE 5760 TARGET 5810 5880 SL

BELOW 5700

SELL GUARGUM JUN BELOW 5620 TARGET 5570 5500 SL

ABOVE 5680

NCDEX will pay money as per an announced formula to those who were net sellers when castor seedcontracts were suspended in January last. The close out price for castor seeds for those who were having net short positions across contract and also having castor seeds stock deposited in exchange-accredited warehouses at the time of suspension. Such sell positions supported by stock are also known as hedging positions. Protecting investors by paying them money is first such move by any commodity derivative ex-change. The exchange had suspended castor seed contracts on 27 Jan this year, when some players were unable to pay margins following a fall in prices. Later, the exchange de-clared a final settlement price of Rs 3,051, at which all deals were settled. It also allowed those holding stock. in NCDEX warehouses to dispose it off on the exchange's e-market platform, which is a spot trading facility. However, contracts were suspended as prices fell, and since those holding sell positions had to incur losses, NCDEX took a first-of-its-kind initiative in exchange-traded derivatives to pay the losers money. It was for this purpose that the close out price was declared. Refined Soya Oil futures surged on NCDEX today as firm global cues and tight availability of oil as well as soybeans in local markets boosted sentiments. The commodity had tumbled in last session, testing lows near Rs 650 per 10 kg mark before witnessing a massive upswing today. Global Soyaoil futures soared today, adding more than half a per-cent on an estimated fall in South American Soybean sup-plies and hit their two week highs today. CPO futures in Ma-laysia also soared by more than a percent as traders eyed an expected drop in Malaysian stockpiles and production. The benchmark NCDEX Refined Soya Oil futures soared sharply in early moves after a break above Rs 660 per kg levels. The counter hit a high near Rs 668 per 10 kg and cur-rently trades at Rs 666.50 per 10 kg, up 1.70% on the day.


DAILY REPORT

10th MAY 2016


RBI Reference Rate

Currency Rate Currency Rate

Rupee- $ 66.5379 Yen-100 61.7300

Euro 75.8056 GBP 95.7702

CURRENCY

USD/INR

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

LOW 66.6

SELL USD/INR MAY BELOW 66.71 TARGET 66.58 66.43 SL

ABOVE 66.91

EUR/INR

BUY EUR/INR MAY ABOVE 76.15 TARGET 76.3 76.5 SL BE-

LOW 75.95

SELL EUR/INR MAY BELOW 75.93 TARGET 75.78 75.58 SL

ABOVE 76.13

CURRENCY MARKET UPDATES:

The US dollar came off its early day highs but continued to remain relatively steady against a basket of currencies on Monday. Demand for the dollar was underpinned after New York Federal Reserve President William Dudley said Friday that it was reasonable to expect two rate hikes this year, despite data showing that U.S. jobs growth increased at the slowest rate in seven months in April. The dollar in-dex ticked up to a high of 94.13, and is currently quoting at 93.96, off Friday's lows of 93.08. The greenback rose to the highest level in two weeks against the yen on Monday af-ter Japan's finance minister said officials were prepared to intervene in the currency market to stem the yen's gains if necessary.

The dollar extended early gains against the yen after Ja-pan's Finance Minister Taro Aso said that Tokyo is ready to intervene in the currency market if excessive moves in the yen are enough to affect Japan's trade, economic and fiscal policies. USD/JPY hit highs of 107.95, the most since April 29 and was last at 107.88 up 0.71% for the day. Last week, dollar fell to 18-month lows of 105.05 against the yen.

The European unit also moved sharply higher against the yen, with EUR/JPY advancing 0.65% to 122.93. The single currency edged lower against the dollar, with EUR/USD dipping 0.08% to 1.1394. Euro area sentiment among in-vestors improved slightly in May, but concerns over the outlook for the global economy continued to weigh. The Sentix investor sentiment index rose to 6.2 from 5.7 in April, compared to expectations for a reading of 6.1. Ger-man factory orders rose by a larger than forecast 1.9% in March, the biggest increase since June, boosted by strong foreign demand.

The rupee strengthened by 7 paise to 66.47 against the US dollar in early trade on Monday on increased selling of the American currency by banks and exporters. The rupee was trading strong by 11 paise at 66.43 at the time of equity markets closing on increased dollar selling by banks and exporters and due to capital inflows into the domestic eq-uity market.


DAILY REPORT

10th MAY 2016


Date Commodity/ Currency

Pairs Contract Strategy Entry Level Target Stop Loss Remark

09/05/16 NCDEX DHANIYA JUNE BUY 7240 7285-7385 7175 SL TRIGGERED

09/05/16 NCDEX DHANIYA JUNE SELL 6990 6945-6845 7055 NOT EXECUTED

09/05/16 NCDEX GUARGUM JUNE BUY 5750 5800-5870 5690 NOT EXECUTED

09/05/16 NCDEX GUARGUM JUNE SELL 5600 5550-5480 5660 NOT EXECUTED

09/05/16 MCX GOLD JUNE BUY 30420 30520-30670 30245 NOT EXECUTED

09/05/16 MCX GOLD JUNE SELL 30340 30240-30090 30515 BOOKED PROFIT

09/05/16 MCX SILVER JUNE BUY 41840 42040-42315 41585 NOT EXECUTED

09/05/16 MCX SILVER JUNE SELL 41620 41440-41165 41895 BOOKED PROFIT

Date Scrip

CASH/

FUTURE/

OPTION

Strategy Entry Level Target Stop Loss Remark

09/05/16 NIFTY FUTURE BUY 7725 7800-7900 7650 NOT EXECUTED

09/05/16 HCLTECH FUTURE SELL 723 717-710 736.20 CALL OPEN

09/05/16 SBIN FUTURE BUY 183-183.2 185-189 179 NOT EXECUTED

09/05/16 BAJAJELEC CASH BUY 235 240-245 229 BOOKED FULL PROFIT


DAILY REPORT

10th MAY 2016


NEXT WEEK'S U.S. ECONOMIC REPORTS

ECONOMIC CALENDAR

The information and views in this report, our website & all the service we provide are believed to be reliable, but we do not accept any

responsibility (or liability) for errors of fact or opinion. Users have the right to choose the product/s that suits them the most. Sincere ef-

forts have been made to present the right investment perspective. The information contained herein is based on analysis and up on sources

that we consider reliable. This material is for personal information and based upon it & takes no responsibility. The information given

herein should be treated as only factor, while making investment decision. The report does not provide individually tailor-made invest-

ment advice. Epic research recommends that investors independently evaluate particular investments and strategies, and encourages in-

vestors to seek the advice of a financial adviser. Epic research shall not be responsible for any transaction conducted based on the infor-

mation given in this report, which is in violation of rules and regulations of NSE and BSE. The share price projections shown are not nec-

essarily indicative of future price performance. The information herein, together with all estimates and forecasts, can change without no-

tice. Analyst or any person related to epic research might be holding positions in the stocks recommended. It is understood that anyone

who is browsing through the site has done so at his free will and does not read any views expressed as a recommendation for which either

the site or its owners or anyone can be held responsible for . Any surfing and reading of the information is the acceptance of this dis-

claimer. All Rights Reserved. Investment in equity & bullion market has its own risks. We, however, do not vouch for the accuracy or the

completeness thereof. We are not responsible for any loss incurred whatsoever for any financial profits or loss which may arise from the

recommendations above epic research does not purport to be an invitation or an offer to buy or sell any financial instrument. Our Clients

(Paid or Unpaid), any third party or anyone else have no rights to forward or share our calls or SMS or Report or Any Information Pro-

vided by us to/with anyone which is received directly or indirectly by them. If found so then Serious Legal Actions can be taken.

Disclaimer

TIME REPORT PERIOD ACTUAL CONSENSUS

FORECAST PREVIOUS

MONDAY, MAY 09

NONE SCHEDULED

TUESDAY, MAY 10

6 AM NFIB SMALLL BUSINESS INDEX APRIL -- 92.6

10 AM JOB OPENINGS MARCH -- 5.4 MLN

10 AM WHOLESALE INVENTORIES MARCH -- -0.5%

WEDNESDAY, MAY 11

2 PM FEDERAL BUDGET APRIL -- $158 BLN

THURSDAY, MAY 12

8:30 AM WEEKLY JOBLESS CLAIMS MAY 7 N/A N/A

8:30 AM IMPORT PRICE INDEX APRIL -- 0.2%

FRIDAY, MAY 13

8:30 AM RETAIL SALES APRIL 0.8% -0.3%

8:30 AM RETAIL SALES EX-AUTOS APRIL 0.7% 0.2%

8:30 AM PRODUCER PRICE INDEX APRIL 0.3% -0.1%

10 AM CONSUMER SENTIMENT MAY -- 89.0

10 AM BUSINESS INVENTORIES MARCH -- -0.1%


Business

Epic research special report of 10 may 2016