Epic research special report of 25 may 2016

DAILY REPORT 25

th MAY 2016

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Global markets at a glance European shares rose to their highest point in almost 4 weeks on Tuesday as firmer financial stocks lifted the re-gion's equity markets. The pan-European FTSEurofirst 300 and STOXX 600 indexes rose 2.2 and 2.3 percent respec-tively, extending earlier gains helped by a weakening euro and a reversal of crude oil prices into positive territory. Sentiment was also underpinned by comments from Euro-pean Central Bank supervisory chief Daniele Nouy, who said the bank was working on new proposals for non-performing loans that remain one of the biggest problems for the region's economy. Asia markets opened sharply higher on Wednesday, with most major indexes advancing around than 1 percent each, after encouraging reports on the housing market stateside saw gains in US stocks. Japan's Nikkei 225 was up 1.6 per-cent, with shares receiving additional boost from a rela-tively weaker yen against the dollar. Across the Korean Strait, the Kospi advanced 0.82%. . Wall Street surged more than 1 percent on Tuesday and the Nasdaq had its strongest day in three months as inves-tors made peace with the possibility that the US Federal Reserve might soon raise interest rates. Comments from policymakers in recent days have investors expecting a rate hike potentially in June, much sooner than previously thought, given sluggish economic growth. Down Under, the benchmark S&P/ASX 200 was up 1.39 percent, led by gains in the heavily-weighted financials subindex, as well as the energy and materials sub-indexes. US stocks ended higher overnight, with the Dow Jones industrial average closing up 1.22 percent, the S&P 500 higher by 1.37 percent and the Nasdaq composite added 2 percent Previous day Roundup The market has ended in green. The Sensex closed 75.11 pts or 0.3% at 25305.47 and the Nifty was up 17.80 pts or 0.2% at 7748.85. About 906 shares have advanced, 1598 shares declined, and 182 shares are unchanged. Index stats The Market was very volatile in last session. The sartorial indices performed as follow; Consumer Durables [down 9.07pts], Capital Goods [down 38.20pts], PSU [down 18.71pts], FMCG [up 14.53Pts], Realty [down 2.19pts], Power [down 1.35pts], Auto [up 57.02pts], Healthcare [down 133.04pts], IT [down 35.33pts], Metals [up 13.25Pts], TECK [down 24.00pts], Oil& Gas [down 91.18pts].

World Indices

Index Value % Change

DJI 17706.05 +1.22

NASDAQ 4861.06 +2.00

S&P500 2076.06 +1.37

FTSE100 6219.26 +1.35

NIKKEI 16783.95 +1.73

HANG SENG 20299.79 +2.37

Top Gainers

Company CMP Change % Chg

GRASIM 4,313.90 102.75 2.44

NTPC 138.60 2.90 2.14

ACC 1,446.00 28.00 1.97

TATAMOTORS 388.85 7.10 1.86

TATAPOWER 71.95 1.30 1.84

Top Losers


AUROPHARMA 729.50 30.20 -3.98

IDEA 106.75 3.45 -3.13

BPCL 898.25 23.65 -2.57

BAJAJ-AUTO 2,379.50 42.30 -1.75

SUNPHARMA 772.90 11.65 -1.48

Stocks at 52 Week’s HIGH

Symbol Prev. Close Change %Chg

BIOCON 644.25 3.40 0.53

GRASIM 4,313.90 102.75 2.44

PIDILITIND 655.90 4.75 0.73

RUSHIL 364.00 30.05 9.00

SRTRANSFIN 1,157.50 42.35 3.80

TATAMETALI 235.00 11.15 4.98

Indian Indices


NIFTY 7748.85 +17.80 +0.23

SENSEX 25305.4 +75.11 +0.30

Stocks at 52 Week’s LOW

Symbol Prev. Close Change %Chg

BANKINDIA 80.60 -0.25 -0.31

BEML 823.80 -25.70 -3.03

BHARATFORG 728.00 15.50 2.18

CIPLA 494.95 -2.45 -0.49

COLPAL 838.00 26.80 3.30

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DAILY REPORT 25

th MAY 2016


STOCK RECOMMENDATION [CASH] 3. RUSHIL

On daily chart RUSHIL has given breakout of strong resis-tance level of 348 and made a new 52 week high, it rose with high volume yesterday with the bullish rally on daily chart. So we advise to buy above high of 367.50 for the targets of 370 372.5 with stop loss of 363.5 . MACRO NEWS Results today: Tata Steel, L&T, Bajaj Auto, Ashok Ley-

land, Bosch, Escorts, Cummins India, GAIL, Apollo Hospi-tals, Container Corporation Of India, Thermax, Astra-Zeneca, AIA Engineering, Glaxosmithkline Pharma, Ab-bott India, VIP Industries, TV Today, Aditya Birla Fashion and Retail, Godrej Industries, HCL Infosystems, Info Edge, Kesoram Industries, Kwality limited, Lux Industries, Saregama India, Simbhaoli Sugars, Wheels India, Apar Industries, Cimmco, Control Print, De Nora India, Engi-neers India, Fineotex Chemical, Genus Power, Global Vectra Helicorp, Hindustan Media, Indo Tech, Ind-Swift Laboratories, Kakatiya Cement Sugar, Lakshmi Machine, Panasonic Carbon India, Prism Cement, Sanghvi Forging, Sanghvi Movers, Schneider Electric, Sharda Cropchem

US, Europe filings to drive Biocon growth Breaking 'bread': Jubilant Food, Britannia, WestLife tank

3-12% 9 Just Dial falls another 6% on cautious guidance; analysts

worry Cinepolis India to invest Rs 400 crores to open 160 more

screens by 2017 Mahindra incorporates Trringo as wholly-owned subsid PC Jeweller raised Rs 427 crore from DVI Fund Mauritius

for business expansion Sterlite Technologies demerges power business, eyes

pure-play telecom tag Govt seeks bids for oil, gas fields first auction since 2010 Rajesh Exports wins export order worth Rs 1,053 crore KFC, Pizza Hut, McDonald’s in toxic bread radar Coal ministry releases Rs 677cr as compensation to pre-

vious allotters

STOCK RECOMMENDATIONS [FUTURE] 1. BOICON [FUTURE]

Last trading session BIOCON future opened gape up and made a high of 647 and close near day’s high with DOJI can-dlestick in daily chart. since last session it rose with rising OI around 43% In June series. last session stock made a 52 week high. We may see sharp rise for that it will be good to buy above 648 for the target of 651-655 with SL of 643 2. CIPLA [FUTURE]

In Last session CIPLA Future show under pressure during the day. And closed with bearish candlestick in daily chart, while before last session stock made a low of 493.25 it is major support level and close near this level so if stock break this level we may seen sharp fall this stock ,we will advise to sell below 493 for the target of 488-480 with stop loss of 499.50.


DAILY REPORT 25

th MAY 2016


FUTURES & OPTIONS

MOST ACTIVE CALL OPTION

Symbol Op-

tion

Type

Strike

Price

LTP Traded

Volume

(Contracts)

Open

Interest

NIFTY CE 7,800 21.35 5,91,740 61,99,200

NIFTY CE 7,700 77.00 2,75,024 24,58,575

BANKNIFTY CE 16,500 94.00 1,23,771 4,78,770

SBIN CE 170 2.35 6,696 22,38,000

SBIN CE 175 0.65 6,645 29,42,000

RELIANCE CE 940 7.50 3,771 5,31,500

JUSTDIAL CE 700 2.65 3,296 4,20,000

LUPIN CE 1,500 9.40 2,992 2,15,700

MOST ACTIVE PUT OPTION

Symbol Op-

tion

Type

Strike

Price

LTP Traded

Volume

(Contracts)

Open

Interest

NIFTY PE 7,700 14.90 5,72,757 68,70,150

NIFTY PE 7,600 2.75 2,88,405 44,51,325

BANKNIFTY PE 16,400 44.30 63,520 2,38,320

SBIN PE 165 0.55 3,052 19,16,000

LUPIN PE 1,400 2.90 2,673 1,75,800

JUSTDIAL PE 650 27.00 2,434 1,84,500

RELIANCE PE 920 1.65 2,413 6,06,500

ICICIBANK PE 220 0.80 2,348 29,83,500

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 92030 5168.73 98650 5541.96 303114 17265.84 -373.22

INDEX OPTIONS 535948 30082.58 549383 30833.18 1248806 71665.92 -750.60

STOCK FUTURES 368463 17073.16 361079 16721.69 1103557 51607.38 351.47

STOCK OPTIONS 61916 2936.63 63068 2991.92 108571 5139.06 -55.29

TOTAL -827.64

STOCKS IN NEWS Tata Power's generation capacity grows 5% in 2015-16 Torrent Pharma a good play on India & US story: CLSA VRL boss unfazed by shareholder fury, says will pursue

aviation passion Ajanta Pharma gets USFDA nod for migraine pain relief

drug Govt puts off GM cotton seed order, eases pressure on

Monsanto Suven Life gets patents for neuro-degenerative drug NIFTY FUTURE

NIFTY FUTURE in yesterday trading session traded in a very small range of around 50 points. Nifty has a good trend-line support around 7700 and today it has made a green candle on the support level, which is showing that Nifty may reverse from here. So we advise you to buy Nifty Future from around 7750 for the targets of 7820 and 7900 with strict stop loss of 7680

INDICES R2 R1 PIVOT S1 S2

NIFTY 7787.7 7768.2 7742.0 7722.5 7696.3

BANKNIFTY 16574.00 16515.00 16441.00 16382.00 16308.00


DAILY REPORT 25

th MAY 2016


COMMODITY ROUNDUP Strength in US dollar hit Gold. The commodity has come off its 15 month highs above $1300 per ounce a few weeks back. Sentiments have been weak as speculation mounted that the US Federal Reserve will raise interest rates as early as next month. Technical factors also weighed on Gold as COMEX futures have dropped under their 200 week moving average. The metal is currently trading at $1241.25 per ounce, down 0.82% on the day. MCX Gold futures extended their losses following this, tanking to a low near Rs 29500 per 10 grams. The counter currently trades at Rs 29520 per 10 grams, down 0.55% on the day. Domestic Copper was trading at Rs 312.3 per kg, down 0.95%. The prices of Copper were traded at Rs 313 per kg and a low of Rs 309.15 per kg. Meanwhile, in a important update Fed is on track to raise rates in June or July, and will continue with even more hikes next year given U.S. eco-nomic strength, a top Fed official said on Monday. Underlin-ing ample supply, Indonesia's mining ministry has issued the local unit of U.S. copper and gold miner Newmont Mining Corp with a recommendation to continue copper concen-trate exports for the next six months. The global world re-fined copper market showed a 24,000-tonne surplus in Feb-ruary, compared with a 51,000-tonne surplus in January. Zinc is up more than 13 percent so far this year on expecta-tions of shortages due to mine closures. The rise has trig-gered a supply response in China, where output of refined metal rose an annual 2 percent to 495,000 tonnes in March, the first increase since October. The international crude oil price of Indian Basket as com-puted by PPAC under the Ministry of Petroleum and Natural Gas was US$ 45.89bbl on 23.05.2016. This was lower than the price of US$ 46.67 per bbl on previous publishing day of 20.05.2016. In rupee terms, the price of Indian Basket de-creased to Rs. 3090.40 per bbl on 23.05.2016 as compared to Rs. 3145.62 per bbl on 20.05.2016. Some slag went into buildings in Taiwan. Taiwan's Industrial Development Bureau asked 17 electric furnace mills stop delivering slag. This will impact on slag storage and process from stainless steel mills. And it will even affect mills normal production. As there is no many places to place the slag, one Taiwanese stainless steel mill already decided to cut production by 30% for June. And the mill plan to increase the selling price by US$92/MT due to extra processing cost for slag. Other mills are still evaluating if it is necessary to drop the production.

RECOMMENDATIONS

GOLD

TRADING STRATEGY:

BUY GOLD ABOVE 29350 TARGET 29450 29600 SL 29250

SELL GOLD BELOW 29250 TARGET 29150 29000 SL 29351

SILVER

TRADING STRATEGY:

SELL SILVER BELOW 39290 TARGET 39100 38300 SL 39500

BUY SILVER ABOVE 39600 TARGET 39850 40150 SL 39350

MCX


DAILY REPORT 25

th MAY 2016


NCDEX

NCDEX INDICES

Index Value % Change

BARLEY 1552 +0.19

CHANA 6083 +2.24

CORIANDER 6850 -0.91

COTTON SEED 2225 -1.37

GUAR SEED 3037 -1.97

JEERA 16105 -1.56

MUSTARDSEED 4359 -1.20

REF SOYA OIL 638 -0.15

SUGAR M GRADE 3537 +0.77

TURMERIC 7900 -1.45

RECOMMENDATIONS

DHANIYA

BUY GUARGUM JUN ABOVE 5250 TARGET 5300 5370 SL

BELOW 5190

SELL GUARGUM JUN BELOW 5160 TARGET 5110 5040 SL

ABOVE 5220

GUARGUM

BUY CORIANDER JUN ABOVE 7012 TARGET 7057 7157 SL

BELOW 6947

SELL CORIANDER JUN BELOW 6757 TARGET 6712 6612 SL

ABOVE 6822

India has acquired largest cold storages capacity in the world which is 32 million tones during last two years, ac-cording to Union Agriculture and Farmers Welfare Minister, Radha Mohan Singh. He noted further that the government is working expeditiously for the storage of perishable agri-cultural products so that the farmers may get better return of their produce by adopting better market practices. Singh said that India has acquired largest cold storages capacity in the world which is 32 million tones during last two years. Nearly 250 projects comprising of more than one million capacities have been developed. Now, horticulture sector has become the largest source of income within the precincts of agriculture sector. He fur-ther said that we have to ensure that the farmers expand their marketing approach for their perishable crops. For this purpose focus will be concentrated on cold storages and other related infrastructures. Singh informed that Depart-ment is implementing sub scheme of Agriculture Marketing Infrastructure Integrated Scheme for agricultural marketing across the country so as to construct a number of storages of adequate capacity in rural areas and to provide scientific facilities in these storages. 37795 storage projects with 619.49 lakh metric tonnes capacity have been approved. As on 31.03.2016 a provision of 2199.07 crore rupees subsidy has been made. A dearth of quality produce and a fall in overall arrivals pushed up cotton prices to Rs 36,000-36,500 a candy (356 kg= 1 candy). Improvement in demand from textile millsalso supported the price uptrend. According to industry sources, prices have gone up by almost Rs 500-600 a candy in the last one week, as arrivals declined to 40,000 bales (a bale of 170 kg), from 50,000 bales across India.


DAILY REPORT 25

th MAY 2016


RBI Reference Rate

Currency Rate Currency Rate

Rupee- $ 67.7060 Yen-100 61.9700

Euro 75.9323 GBP 98.0654

CURRENCY

USD/INR

BUY USD/INR MAY ABOVE 67.77 TARGET 67.9 68.05 SL BE-

LOW 67.57

SELL USD/INR MAY BELOW 67.66 TARGET 67.53 67.38 SL

ABOVE 67.86

EUR/INR

BUY EUR/INR MAY ABOVE 76.1 TARGET 76.25 76.45 SL BE-

LOW 75.9

SELL EUR/INR MAY BELOW 75.83 TARGET 75.68 75.48 SL

ABOVE 76.03

CURRENCY MARKET UPDATES:

The rupee continued its incessant free fall for the ninth

straight day today by dropping 26 paise to end at a fresh 2-

1/2 month low of 67.75 on sustained demand for the

American currency. Consistent unwinding by foreign inves-

tors on worries regarding the controversial tax issues as

well as renewed possibility of the Federal Reserve raising

US interest rates predominantly kept home currency under

intense pressure. Month-end dollar demand from oil com-

panies along with aggressive hedging strategy adopted by

importers in the wake of currency volatility also weighed

on the rupee trade.

At the Interbank Foreign Exchange (Forex) market, the do-

mestic unit commenced sharply lower at 67.63 a dollar

from Monday's closing value of 67.49 following robust dol-

lar demand from banks, hit by sustained fund outflows also

impacted by weak opening of local equities. But, it recov-

ered immediately to trade briefly at a fresh intra-day high

of 67.5975. However, the rupee suffered a late-morning

blow and witnessed a sharp downturn to hit a low of 67.77

before concluding at 67.75, revealing a fall of 26 paise, or

0.39 per cent - extending its longest losing streak since

2007. In cross-currency trades, the rupee retreated sharply

against the pound sterling to finish at 98.98 from 97.71

yesterday. The local unit continued to slide against the

euro and settle at 75.73 compared to 75.66 and dropped

further against the yen to close at 61.80 per 100 yens

against 61.69 earlier.

Meanwhile, the US dollar index has been in an excellent

touch in last few weeks. The index, which is a basket of six

major currencies, is a widely used gauge to determine the

relative strength of the greenback against its major trading

partners. The index has tumbled to its lows under 92 – its

lowest in more than a year in March 2016. It is currently

hovering around 95.50 levels. The stronger dollar has

added to the pressure from saturated markets after near-

record copper imports in the first quarter, and with scant

demand from the physical market, traders said. A firmer

dollar cuts the purchasing power of consumers paying for

commodities with other currencies.


DAILY REPORT 25

th MAY 2016


Date Commodity/ Currency

Pairs Contract Strategy Entry Level Target Stop Loss Remark

24/05/16 NCDEX DHANIYA JUNE BUY 6950 6995-7095 6885 NOT EXECUTED

24/05/16 NCDEX DHANIYA JUNE SELL 6875 6830-6730 6940 BOOKED PROFIT

24/05/16 NCDEX GUARGUM JUNE BUY 5250 5300-5370 5190 NOT EXECUTED

24/05/16 NCDEX GUARGUM JUNE SELL 5160 5110-5040 5220 NO PROFIT NO LOSS

24/05/16 MCX GOLD JUNE BUY 2930 29800-29900 29620 NOT EXECUTED

24/05/16 MCX GOLD JUNE SELL 29570 29500-29400 29650 BOOKED PROFIT

24/05/16 MCX SILVER JUNE BUY 39830 40000-40200 39650 NOT EXECUTED

24/05/16 MCX SILVER JUNE SELL 39350 39150-38900 39550 CALL OPEN

Date Scrip

CASH/

FUTURE/

OPTION

Strategy Entry Level Target Stop Loss Remark

24/05/16 NIFTY FUTURE SELL 7780 7730-7650 7880 NOT EXECUTED

24/05/16 AXISBANK FUTURE SELL 486 482-477 492 BOOKED PROFIT

24/05/16 TATASTEEL FUTURE SELL 313 310-307 319 SL TRIGGERED

24/05/16 EROS MEDIA CASH SELL 175.5 172.5-171.5 178 PROFIT BOOKED

19/05/16 NIFTY FUTURE SELL 7770 7700-7600 7870 NO PROFIT NO LOSS

23/05/16 NIFTY FUTURE SELL 7770 7700-7600 7850 NO PROFIT NO LOSS


DAILY REPORT 25

th MAY 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 25 may 2016