DAILY REPORT 1 st SEPT. 2015 YOUR MINTVISORY Call us at +91-731-6642300 Global markets at a glance On the global front, Asian markets ended mixed with the Shanghai falling 0.8% on reports that the Chinese govt lim- iting its intervention in the stock market. Nikkei lost 1.3% while Hang Seng gained 0.3%. European shares suffered their worst monthly performance in four years on Monday, as concerns over a Chinese economic slowdown and a pos- sible U.S. interest rate rise hit the region's stock markets. The FTSEurofirst 300 index closed down 0.2% to record a monthly loss of 9% - its worst monthly performance since August 2011. Volumes were relatively thin as the British market was closed for a public holiday. Germany's DAX fell 0.4% and also posted its worst monthly performance since August 2011. The DAX is currently some 17% below a re- cord high reached in April. The euro zone's blue-chip Euro STOXX 50 index and France's CAC both declined by 0.5%. Wall Street ended lower on Monday and wrapped up its worst month since 2012 after comments from a senior Fed- eral Reserve official heightened fears among investors of a potential US interest hike in Sept. The DJI average lost 0.69 % to end at 16,528.03 points and the S&P 500 fell 0.84 % to 1,972.18. The Nasdaq Composite dropped 1.07 % to 4,776.51. Nine of the 10 major S&P sectors were lower with the health index's 1.85 % fall leading the decliners. Previous day Roundup It was a consolidation day on Dalal Street ahead of Q1 GDP data and after a rally in previous two consecutive sessions. Equity benchmarks shed 0.4 %, dragged by profit booking in capital goods, select banking & financials, oil and tech- nology stocks while pharma stocks bucked the trend. The 30-share BSE Sensex fell 109.29 points to 26283.09 and the 50-share NSE Nifty slipped 30.65 points to 7971.30. The broader markets, too, lost ground; the BSE Midcap and Smallcap indices declined 0.2 % each. The market breadth was weak as about 1479 shares declined against 1162 shares advanced on the Bombay Stock Exchange. Recent market turmoil and delay in earnings & economy recovery led brokerages to slash target price. Index stats The Market was very volatile in last session. The sartorial indices performed as follow; Consumer Durables [down 53.94pts], Capital Goods [down 176.07pts], PSU [up 4.25pts], FMCG [down 31.29pts], Realty [down pts], Power [down pts], Auto [down 138.23Pts], Healthcare [up 316.06Pts], IT [down 27.30pts], Metals [up 44.35pts], TECK [down 14.12pts], Oil& Gas [up 24.31pts]. World Indices Index Value % Change D J l 114.98 -0.69 S&P 500 1972.18 -0.84 NASDAQ 4776.51 -1.07 FTSE 100 6247.94 +0.90 Nikkei 225 18440.28 -2.38 Hong Kong 21592.72 -0.36 Top Gainers Company CMP Change % Chg CIPLA 684.00 24.15 3.66 LUPIN 1,925.00 64.15 3.45 DRREDDY 4,298.25 117.50 2.81 GAIL 297.00 7.95 2.75 BPCL 883.95 23.00 2.67 Top Losers Company CMP Change % Chg BHEL 226.05 8.55 -3.64 POWERGRID 130.40 4.75 -3.51 BHARTIARTL 354.05 8.45 -2.33 ULTRACEMCO 2,882.55 64.20 -2.18 ACC 1,333.30 29.50 -2.16 Stocks at 52 Week’s HIGH Symbol Prev. Close Change %Chg DSKULKARNI 124.65 20.75 19.97 ESCORTS 174.95 7.75 4.64 Indian Indices Company CMP Change % Chg NIFTY 7971.30 -30.65 -0.38 SENSEX 26283.09 -109.29 -0.41 Stocks at 52 Week’s LOW Symbol Prev. Close Change %Chg WELSYNTEX 106.50 -3.85 -3.49 - -
Transcript
DAILY REPORT
1st
SEPT. 2015
YOUR MINTVISORY Call us at +91-731-6642300
Global markets at a glance On the global front, Asian markets ended mixed with the Shanghai falling 0.8% on reports that the Chinese govt lim-iting its intervention in the stock market. Nikkei lost 1.3% while Hang Seng gained 0.3%. European shares suffered their worst monthly performance in four years on Monday, as concerns over a Chinese economic slowdown and a pos-sible U.S. interest rate rise hit the region's stock markets. The FTSEurofirst 300 index closed down 0.2% to record a monthly loss of 9% - its worst monthly performance since August 2011. Volumes were relatively thin as the British market was closed for a public holiday. Germany's DAX fell 0.4% and also posted its worst monthly performance since August 2011. The DAX is currently some 17% below a re-cord high reached in April. The euro zone's blue-chip Euro STOXX 50 index and France's CAC both declined by 0.5%. Wall Street ended lower on Monday and wrapped up its worst month since 2012 after comments from a senior Fed-eral Reserve official heightened fears among investors of a potential US interest hike in Sept. The DJI average lost 0.69 % to end at 16,528.03 points and the S&P 500 fell 0.84 % to 1,972.18. The Nasdaq Composite dropped 1.07 % to 4,776.51. Nine of the 10 major S&P sectors were lower with the health index's 1.85 % fall leading the decliners. Previous day Roundup It was a consolidation day on Dalal Street ahead of Q1 GDP data and after a rally in previous two consecutive sessions. Equity benchmarks shed 0.4 %, dragged by profit booking in capital goods, select banking & financials, oil and tech-nology stocks while pharma stocks bucked the trend. The 30-share BSE Sensex fell 109.29 points to 26283.09 and the 50-share NSE Nifty slipped 30.65 points to 7971.30. The broader markets, too, lost ground; the BSE Midcap and Smallcap indices declined 0.2 % each. The market breadth was weak as about 1479 shares declined against 1162 shares advanced on the Bombay Stock Exchange. Recent market turmoil and delay in earnings & economy recovery led brokerages to slash target price. Index stats The Market was very volatile in last session. The sartorial indices performed as follow; Consumer Durables [down 53.94pts], Capital Goods [down 176.07pts], PSU [up 4.25pts], FMCG [down 31.29pts], Realty [down pts], Power [down pts], Auto [down 138.23Pts], Healthcare [up 316.06Pts], IT [down 27.30pts], Metals [up 44.35pts], TECK [down 14.12pts], Oil& Gas [up 24.31pts].
Today DISHMAN Pharma announce strong Q1 number for that it finished with 5.74% gain on EOD chart and with cor-rection of market it breached from 233 level since market consolidating around bottom level so it is good to buy above 215-218 use stop loss of 210.50 for target of 223-228-233 MACRO NEWS April-July fiscal data -April-July fiscal deficit at Rs 3.85
lakh crore vs Rs 3.25 lakh crore (YoY) July core sector data: -Eight core industries' growth at
1.1% vs 3% (MoM) -Coal production up 0.3% vs 6.3% growth (MoM) -Croreude oil production down 0.4% vs 0.7% decline (MoM) -Natural gas production down 4.4% vs 5.9% decline (MoM) -Petroleum refinery products' output up 2.9% vs 7.5% increase (MoM) -Fertiliser pro-duction up 8.6 % vs 5.8 % increase (MoM) -Steel produc-tion down 2.6% vs 4.9% increase (MoM) -Cement pro-duction up 1.3% vs 2.6% increase (MoM) -Electricity pro-duction up 3.5% vs 0.2% increase (MoM) -April-July eight core industries' growth up 2.1% (YoY)
Govt pitches rating upgrade S&P on strong GDP forecast Indian healthcare to grow to 0 bn by 2020: Report Govt to soon allot 62 offshore mineral blocks for mining FSSAI to frame norms for product approval in 6 months Coffee exports decline 7.5% in July Oil companies get down to the fight, slug it out to wrest
market dominance from IOC Govt may cut power price to boost rural supply. Govt to soon allot 62 offshore mineral blocks for mining CITU, INTUC shun Coal Ministry meet on strike
STOCK RECOMMENDATIONS [FUTURE] 1. UPL[FUTURE]
UPL Future break important support of 503 but from psycho-logical support of 500 it bounce and finished at 506.20 wtih 3.23% loss since last week market was too volatile for that it also sharply breached but if it break 500 level on closing ba-sis then it will be breakdown of triple top pattern so sell it below 500 for target of 493-485-475 use stop loss of 510.10 2. DRREDDY [FUTURE]
Pharma sector performing well where DRREDDY Future fin-ished near all time high of 4344.40 with 3.16% gain at 4324. On EOD chart many time it consolidate around this level but momentum indicator RSI and Stochastic both given positive cross over & moving below over sold zone so we can see new high for that it will be good to buy around 4265-4280 use stop loss of 4240 for target of 4310-4340 above 4340 it may hit 4400.
STOCKS IN NEWS Punj Lloyd wins Rs 1,094 crore contract from Indian Oil GMR plans to export power from its Nepal plant to
Bangladesh ONGC, partners to invest $24 billion in Mozambique
gas field ITC readies Savlon to take on Reckitt Benckiser in
health and home care segments RCF to invest around Rs 14,000cr over next five years L&T wins order for Rs 1,489 cr water supply project Sun Pharma, Wockhardt recall drugs from US market Government to infuse Rs 947 crore in Canara Bank NIFTY FUTURE
Nifty Future remained under pressure as it moved only around 100 points in yesterday trading session. Further Nifty seems to be bearish in charts. So we advise you to sell it below 7925 for the targets of 7845 and 7750 with the stop loss of 8070
COMMODITY ROUNDUP Oil fell below $49 a barrel on Monday after its biggest two-day rally in six years last week, pressured by a supply glut and renewed concern about a hard landing for China's econ-omy. International benchmark Brent crude climbed 10 % last week but was still heading for its fourth straight monthly decline and has risen in only two of the past 14 months. At 1340 GMT, Brent was down $1.28 at $48.77 a barrel and U.S. crude, which had rallied 12% last week, dropped $1.00 to $44.22. Volume is expected to be lower than normal on Monday because of a British public holiday. Gold finally cracked under pressure in Europe, not holding onto its latest highs. The yellow metal had rose in the last session as traders eyed the lax US core inflation data and slightly weak undertone in the US dollar. Gains in crude oil also helped Gold retrace some of its recent losses. However, the metal drifted lower in afternoon today and currently trades at $1131 per ounce, down 0.26% on the day. MCX Gold futures are trading at Rs 26664, up 0.15% on the day as a weak INR supported sentiments. INR is down 0.38% to66.40 per US dollar following a steep early selloff in local stocks. Gold speculator and large futures traders sharply increased their gold bullish positions last week for a fourth consecutive week. The non-commercial futures contracts of Comex gold futures, traded by large speculators and hedge funds, totaled a net position of +70,733 contracts in the data reported through August 25th. This was a weekly change of +29,074 contracts from previous week’s total of +41,659 net contracts that was registered on August 18th. Most base metals gained upto 5.7% on bargain hunting due to fresh support from weak sentiment in global equity mar-kets. Renewed support from China prompted traders to book afresh amid expectations of a rebound in equity trade, which got global markets into panic due to consistent fall earlier last week. Nickel let the entire basket base metals complex with its highest gain of 5.70% at $9,835 a tonne on the benchmark LME. Zinc followed suit and gained 4.95% after steep fall on Monday. On Friday, zinc settled at $1,793 a tonne. Copper yet again turned red as the prices failed to hang on to last week levels. When last checked, COMEX Copper depleted by $ 2.32 per pound, down 2 cents. Copper had steadied after the stock market in China recovered for a second day, but continued worries about oversupply weighed on the market. A surge in Chinese equities on Fri-day boosted metals as signs of fresh support from Beijing prompted more bargain hunting following an earlier plunge that panicked global markets.
NCDEX ROUNDUP Amid profit-booking at higher levels and subdued spot de-mand, mentha oil fell 0.45% to Rs 971.50 per kg. At MCX mentha oil for delivery in Sept was trading at Rs 4.40, or 0.45%, lower Rs 971.50 per kg with a business volume of 224 lots. Similarly, mentha oil for August delivery drifted by Rs 3.70, or 0.38%, to Rs 958.80 per kg with a business turn-over of 47 lots. The fall in mentha oil prices in futures trade was largely due to profit-booking by speculators and weak trend at spot market on subdued demand. Short Covering was seen in jeera futures due to limited stocks in local mandies coupled with strong exporters de-mand. The NCDEX futures added almost 2%. Receding stocks in local mandies have supported prices at lower lev-els. The spot and futures prices of jeera have also been sup-ported by weak arrivals in local mandies due to limited stocks. Average daily arrivals of jeera have been lowest of last 3 years of around 1000-1200 bags against 4000-7000 bags of the last month. The NCDEX Sept Futures added 1.83% to close at Rs 16100 per quintal. The futures contract has pared 4%in OI indicating short covering by traders. Cardamom rose 1.46% to Rs 837.80 per kg in futures market today after speculators widened positions supported by rising spot market demand. At MCX cardamom for delivery in September rose Rs 12.10, or 1.46%, to Rs 837.80 per kg in a business turnover of 148 lots. Spice for delivery in October gained Rs 10.20, or 1.21%, to Rs 848 per kg in 104 lots. Be-sides pickup in demand at the spot market, tight supplies from producing regions mainly helped cardamom prices to trade higher in futures trade.
The rupee on Monday weakened against the US dollar as traders turned cautious ahead of key data later this week. The currency closed at 66.48, down 0.48% from its previ-ous close of 66.16. The unit opened at 66.27 per US dollar and touched a high and a low of 66.21 and 66.50, respec-tively. India’s fiscal deficit during April-July touched Rs.3.85 trillion, or 69.3% of the target for the FY16 fiscal year, government data showed on Friday. The deficit was 61.2% during the same period a year ago.
The US dollar remained relatively lower against a basket of currencies on Monday although expectations for a Septem-ber rate hike by the Federal Reserve limited losses. Inves-tors are now looking ahead to Friday's U.S. jobs report for August, which could help to provide clarity on the likeli-hood of a near-term interest rate hike.
The dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was down 0.17% at 95.98, but remained well above the eight-month trough of 92.52 hit last Monday. Dollar found support after Fed Vice Chairman Stanley Fischer said Friday it was still too early to decide whether to raise interest rates from near zero at the bank's September meeting.
Meanwhile, the single currency found support after data showed that euro zone consumer price inflation rose by 0.2% last month following a 0.2% increase in July. The rate has now been below 1% for 21 straight months, well under the European Central Bank's target of near but just under 2%. Core CPI, which excludes food, energy, alcohol, and tobacco costs increased by 1.0% in August, matching fore-casts and unchanged from July. EUR/USD edged up 0.27% to trade at 1.1217.
The dollar was lower against the yen, with USD/JPY down 0.30% to 121.34. Demand for the yen was boosted as heightened risk aversion underpinned demand for the low-yielding currencies to fund investment in risk assets. As against the pound, dollar slipped lower with GBP/USD up 0.10% at 1.5415.
