Morning Notes
24th May, 2019
 

Trading Range:

Nifty opened gap up at 11901 on Thursday and made a high and low of 12041 and 11614 respectively before closing negative at 11657.

Review/Outlook:

For the day, support for Nifty exists at 11570 and 11490 levels whereas resistance for Nifty stands at 11750 and 11900 levels.

Review/Outlook:

Bank Nifty opened gap up at 30963, made a high of 31705, low of 30292, and closed negative at 30409. For the day, support for Bank Nifty exists at 30200 and 29700 levels whereas resistance for Bank Nifty stands at 30700 and 31000 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 38,811 -0.76
Nifty 11,657 -0.69
BSE 200 4,865 -0.49
BSE Midcap 14,650 -0.15
BSE Smallcap 14,353 -0.11
Dow Jones 25,490 -1.11
NASDAQ 7,628 -1.58
 

DERIVATIVES INDICATORS FOR MAY 24, 2019:

NIFTY 11657.05 (-80.85) (-0.69%)
NIFTY MAY FUTURE 11692.40 (35.35 Points Premium)
NIFTY PCR - OI 1.05(-0.08)
NIFTY OPEN INTEREST 2.19Cr. (+1.40%)
INDIA VIX 19.40 (-29.77%)
NIFTY ROLLOVER 21%

NIFTY OPTIONS ACTIVITY (30-MAY SERIES)

CALL 11800 CE +5.48 lac Shares
CALL 12000 CE +9.90 lac Shares
PUT 11400 PE +2.49 lac Shares
PUT 11600 PE +3.31 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 18,515 -0.41
Bankex 34,261 +0.15
PSU 7,523 +0.16
Healthcare 13,236 -0.41
IT 15,070 -0.89
 
Market Turn Over (`cr)
Index 23/05 22/05
BSE Cash 3,869 2,627
NSE Cash 52,322 34,788
NSE F&O 2,581,258 527,886
BSE Delivery % 35.15 44.78
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 49.50 50.50
BSE 200 49.25 50.75
BSE 500 44.11 54.89
Total BSE 43.43 50.13
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 58.37 +0.79
Gold Rs./ 10 Gms 31667.00 +0.78
Silver Rs./ Kg 36657.00 +0.96
Rs.- US $ 69.68 -0.06
Rs.- Euro 77.92 +0.18
FII (Rs’cr’)
23/05* 22/05*
FIIs -741.37 +1560.43
MFs - -

*Date refers to the day of activity and not the day on which it is reported.

 
Details Buy Sell Open interest at the
end of the day
Net Position
No. of
Contracts
Value
(Rs. Cr)
No. of
Contracts
Value
(Rs. Cr)
No. of
Contracts
Value
(Rs. Cr)
Value
(Rs. Cr)
Index Futures    1,33,114.00     10,183.71    1,51,469.00     11,597.34    2,82,291.00     22,991.56  (1,413.63)
Index Options  61,97,978.00  4,34,126.09  61,27,195.00  4,27,703.86    8,84,744.00     72,287.17   6,422.23
Stock Futures    3,56,367.00     20,924.55    3,64,405.00     21,296.91  15,18,788.00     90,958.82     (372.36)
Stock Options    2,25,710.00     14,203.46    2,23,745.00     14,069.70    1,48,455.00       8,633.51      133.76
Total  69,13,169.00  4,79,437.81  68,66,814.00  4,74,667.81  28,34,278.00  1,94,871.07   4,770.00
Corporate News
The Hinduja Group may invest Rs.1,000-1,500 crore in Jet Airways as part of a plan to revive the airline, along with Etihad Airways, State Bank of India and London-based AdiGro. At a meeting attended by representatives from the four companies, it was agreed to explore the creation of a consortium to own Jet Airways. (BL).
Adani Green Energy, on Thursday, said its promoters’ stake has come down to 80.9 per cent from 86.50 per cent following an offer-for-sale. Two promoter entities, Adani Tradeline and Universal Trade and Investment, sold 8.75 crore shares having face value of Rs.10 each of Adani Green under an offer-for-sale on May 21-22, to meet the minimum shareholding norms, the company said in a BSE filing. (BL).
Hulst BV has acquired additional 98,100 shares of NIIT Technologies from the open market, taking its shareholding in the mid-sized Indian IT firm to 32.04 per cent, a regulatory filing said Thursday. (ET).
Reliance Nippon Life Asset Management’s promoter Reliance Capital plans to cumulatively sell 8.66 percent stake in the company aggregating to Rs 1,155 crore. The promoter will sell up to 5.3 crore shares at a floor price of Rs 218 apiece—a discount of about 7.6 percent to current market price—through an offer-for-sale, according to an exchange filing. (BQ).
Adani Enterprises, decisions on whether to approve two outstanding management plans for Adani’s proposed Carmichael coal mine are due by June 13, ABC News reports citing comments from Queensland Premier Annastacia Palaszczuk. (BQ).
Greaves Cotton modified its share buyback plan. The board approved to buyback 5.32 percent of share capital at Rs 175 per share aggregating to Rs 227.5 crore. (BQ).
Quarterly Earnings
Heritage Foods has posted a profit of Rs.20.16 crore for the fourth quarter ended March 31, 2019, as against a profit of Rs.19.85 crore for the corresponding quarter of last year on a consolidated basis. The dairy company logged in revenues of Rs.635.03 crore for the fourth quarter as against Rs.561.63 crore in Q4 FY18, registering a growth of 13.07 per cent. (ET).
Paytm Payments Bank Limited (PPB) on Thursday said it has turned profitable within its second year of operation, reporting a profit of Rs 19 crore for the financial year 2018-2019. PPBL claimed to lead mobile banking transactions with over 19 per cent market share as of March 2019. PPB had registered net loss of Rs 20.7 crore for the fiscal ended March 31, 2018, according to regulatory documents. PPB, which was incorporated in August 2016, formally began its operations in 2017. (ET).
General Insurance Corporation (GIC Re) of India Thursday reported a 19.7 per cent fall in standalone net profit at Rs 603.37 crore in the last quarter of the fiscal ended March 2019. The insurer had registered a net profit of Rs 751.60 crore in January-March quarter of 2017-18. Gross premium collection during March quarter stood at Rs 8,089.35 crore as against Rs 8,525.02 crore in the year-ago period. The board has recommended a dividend of Rs 6.75 per equity share for the financial year 2018-19, subject to approval of the members at the ensuing 47th annual general meeting. (BL).
Drug firm Novartis India Thursday reported 26.21 per cent decline in net profit at Rs 19.53 crore for the quarter ended March 31, 2019. The company posted a profit of Rs 26.47 crore in the year-ago period, Novartis India said in a BSE filing. Revenue from operations for the latest quarter stood at Rs 110.38 crore as against Rs 125.32 crore in the same period of 2017-18. The company's board has recommended a dividend of 200 per cent (Rs 10 per equity share of Rs 5 each) for the year ended March 31, 2019. (BL).
IndusInd Bank’s (IIB) Q4FY19 NII has improved by 11.2% yoy to Rs2,232.4cr against Rs2,007cr. Net profit has declined by 62.2% yoy to Rs360cr against Rs953cr yoy. Higher provisioning of Rs1,561cr made on certain assets related to IL&FS. GNPA for Q4FY19 came at 2.1% against 1.13% qoq, which has increased by 97 bps. NNPA for the quarter came at 1.21% as against 0.59% qoq, which has increased by 62 bps. Core fee income grew by 27% yoy and total fee income grew by 29% yoy. Asset quality deteriorated sharply in the quarter, owing to the entire IL&FS exposure turning non-performing. GNPL ratio, ex-IL&FS, stood at 1.03%. Corporate slippage ratio deteriorated to 14.7% (1.4% in 3QFY19). Slippage ratio in the retail portfolio also increased, to 3.2% (2.6% in 3QFY19). Further, IIB disclosed its SMA-2 book, which stood at 0.3% of loans. Exposure to potentially stressed groups accounted for a further 1.9% of the loan book. (BL).
Economy and Sector News
California-based Varian Medical Systems has reached an  agreement to acquire Cancer Treatment Services International (CTSI) for $283 million. (BL).
Domestic air traffic in India--which prides itself for being one of the world’s fastest growing aviation markets—fell for the first time in 6 years in April, the month that India’s oldest airline Jet Airways grounded operations. Jet’s grounding however helped bigger rival IndiGo to control 50% of the Indian domestic market, followed at a considerable distance by Air India and SpiceJet. Indian carriers flew 11.3 million passengers locally in April, down about 2% from 11.5 million in the same month last year, according to data released by the country's aviation regulator Directorate General of Civil Aviation (DGCA). (BL).
The foreign exchange reserves cover of imports declined a tad to 9.1 months as of December-end 2018, compared to 9.5 months at September-end 2018, according to the RBI’s Report on Management of Foreign Exchange Reserves. The reserves cover of imports stood at 10.9 months and 11.3 months as of March-end 2018 and March-end 2017, respectively. (BL).
Indian Railways has been adversely affected by the delay in supply of freight wagons by private manufacturers to replace old rolling stock and also create a buffer. There is a backlog of nearly 25,000 wagons to be supplied by private manufacturers, according to a member of the Railway Board, who did not want to be named. (ET).
* ET - Economic Times, BS - Business Standard, BL - Business Line, TOI - Times of India, Mint, IE - Indian Express, BT - Business Today, IE - Indian Express
Global Markets
 

DJIA and NASDAQ Composite

US markets finished well into the red on Thursday, with fears that trade tensions between Washington and Beijing were set to get worse, rather than better. The Dow Jones Index closed at 25,490, down 286.14 points by 1.11%. The Standard & Poor’s 500 index closed at 2,822, down 34.03 points by 1.19%. The Nasdaq Composite Index closed at 7,628, down 122.56 points by 1.58%.

FTSE 100

UK markets remained in the red at the end of afternoon trading on Thursday, amid growing concerns about Brexit and Sino-US trade relations. The FTSE 100 index closed at 7,231, down 103.15 points by 1.41%.

 
 
Global Indices
22/05/2019 Clsg Chg%
Dow Jones 25,490 -1.11
NASDAQ 7,628 -1.58
FTSE 100 7,231 -1.41
Bovespa 93,910 -0.48
23/05/2019 Latest
(7:52 AM IST)
Chg%
Nikkei 21,023 -0.61
Hang Seng 27,385 +0.43

Nikkei

Asian shares hobbled near four-month lows on Friday and crude oil plunged on worries the U.S.-China trade spat was developing into a more entrenched strategic dispute between the world’s two largest economies, pushing investors to safe-haven assets. Nikkei is currently trading at 21,023, down 128.17 points by 0.61%.

Precious Metals

Gold futures logged their highest finish in a week Thursday, buoyed by declines in global stock markets brought on by expectations for a prolonged U.S.-China trade standoff.

Base Metals

Base metals prices on the London Metal Exchange were lower during morning trading on Thursday May 23, with continued trade friction between the United States and China fueling risk-off sentiment while tight nearby spreads failed to attract fresh inflows.

Crude Oil

U.S. crude rebounded 0.6% to $58.25 a barrel on Friday, after Thursday’s 5.7% fall that too it to the lowest in two months. Brent crude futures also bounced back 0.4% to $68.05 per barrel, after falling 4.6% in the previous session.

 
 

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Information pertaining to Asit C. Mehta Investment Interrmediates Limited (ACMIIL): ACMIIL is a SEBI registered Stock Broker, Merchant Banker and Depository Participant. It is also a AMFI registered Mutual Fund Distributor. It does not have any disciplinary history. Its associate/group companies are Asit C. Mehta Commodity Services Limited, Asit C. Mehta Realty Services Pvt. Ltd, Asit C. Mehta Forex Pvt. Ltd, Nucleus IT Enabled Services , Asit C. Mehta Financial Services Limited (all providing services other than stock broking and merchant banking).

Disclosures
ACMIIL/its associates and its Research analysts have no financial interest in the companies covered on the report. ACMIIL/ its associates and Research analysts did not have actual/beneficial ownership of one per cent or more in the companies being covered at the end of month immediately preceding the date of publication of the research report. ACMIIL/its associates or Research analysts have no material conflict of interest, have not received any compensation/benefits for any reason (including investment banking/merchant banking or brokera3ge services) from either the companies concerned/third parties with respect to the companies covered in the past 12 months. ACMIIL/its associates and research analysts have neither managed or co-managed any public offering of securities of the companies covered nor engaged in market making activity for the companies being covered. Further, the companies covered neither are/nor were a client during the 12 months preceding the date of the research report. Further, the Research analyst/s covering the companies covered herein have not served as an officer/director or employee of the companies being covered.

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This report is based on information that we consider reliable, but we do not represent that it is accurate or complete and it should not be relied upon such. ACMIIL or any of its affiliates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in the report. To enhance transparency we have incorporated a Disclosure of Interest Statement in this document. This should however not be treated as endorsement of the views expressed in the report.