Morning Notes
04th Feb, 2020
 

Trading Range:

Nifty opened gap down at 11627 on Monday and made a high and low of 11750 and 11614 respectively before closing positive at 11708.

Review/Outlook:

For the day, support for Nifty exists at 11640 and 11580 levels whereas resistance for Nifty stands at 11770 and 11830 levels.

Review/Outlook:

Bank Nifty opened flat at 29812, made a high of 30106, low of 29613, and closed positive at 30023. For the day, support for Bank Nifty exists at 29800 and 29600 levels whereas resistance for Bank Nifty stands at 30300 and 30500 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 39,872 +0.34
Nifty 11,708 +0.39
BSE 200 4,937 +0.52
BSE Midcap 15,288 +1.12
BSE Smallcap 14,360 +0.11
Dow Jones 28,400 +0.51
NASDAQ 9,273 +1.34
 

DERIVATIVES INDICATORS FOR FEB 04, 2020:

NIFTY 11707.9 (+46.05) (+0.39%)
NIFTY FEB FUTURE 11703.15 (-4.75 Points Discount)
NIFTY PCR - OI 0.96 (+0.10)
NIFTY OPEN INTEREST 1.46 Cr. (-0.40%)
INDIA VIX 15.78 (-6.25%)
NIFTY ROLLOVER 5%

NIFTY OPTIONS ACTIVITY (27-FEB SERIES)

CALL 11700 CE +4.89 lac Shares
CALL 11800 CE +1.53 lac Shares
PUT 11700 PE +2.17 lac Shares
PUT 11500 PE +2.73 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 17,955 +1.37
Bankex 34,449 +0.84
PSU 6,302 -0.08
Healthcare 13,739 +0.04
IT 15,809 -1.78
 
Market Turn Over (`cr)
Index 03/02 31/01
BSE Cash 1,856 2,205
NSE Cash 43,507 37,811
NSE F&O 1,332,560 1,427,192
BSE Delivery % 45.21 48.23
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 62.38 37.62
BSE 200 58.21 41.29
BSE 500 44.91 54.69
Total BSE 35.73 57.54
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 50.07 +0.12
Gold Rs./ 10 Gms 40661.00 -1.42
Silver Rs./ Kg 45890.00 -2.61
Rs.- US $ 71.39 -0.22
Rs.- Euro 78.96 -0.40
FII (Rs cr )
03/02* 31/01*
FIIs -4375.56 +625.92
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       86,411.00       6,410.66       80,013.00       6,004.48    1,84,964.00     15,016.13     406.18
Index Options  42,51,689.00  2,99,671.76  42,14,349.00  2,96,764.09    6,92,671.00     55,630.51  2,907.67
Stock Futures    2,72,434.00     17,783.56    2,65,356.00     16,999.78  15,35,732.00     96,402.09     783.78
Stock Options       88,999.00       6,178.43       89,495.00       6,207.73       48,810.00       3,102.84      (29.30)
Total  46,99,533.00  3,30,044.41  46,49,213.00  3,25,976.08  24,62,177.00  1,70,151.57  4,068.33
Corporate News
More auto companies announced sales numbers for Jan 2020. On a YoY basis, Ashok Leyland's sales dropped by 40% and TVS Motor's sales dipped by 17%. (BL).
Public sector oil company Bharat Petroleum Corporation Ltd (BPCL), in collaboration with Pune-based Kinetic Green Energy & Power Solutions and IIT-Madras, has entered the electric vehicle space with the launch of e-Drive, an EV mobility system based on the battery-swapping model for electric three-wheelers. (ET).
Ramky Enviro Engineers Limited (REEL), a leading provider of comprehensive environment management services, has launched FARZ (Fully Automated Material Recovery facility) that leverages artificial intelligence. (BS).
The Supreme Court has agreed to hear a plea by Fortis Healthcare to implement Malaysian healthcare giant IHH’s open offer for infusing funds in the hospital chain. Meanwhile, a stay issued by the apex court in 2018, over the open offer of Rs.3,400 crore which is stuck in an escrow account of a local Indian bank, remains. (ET).
D1/D3 gas field, the country’s first deepwater gas field, ceased to produce on Monday after a $1-billion investment and mammoth technological intervention by Reliance Industries and its partner BP Plc of UK extended the life of dwindling fields by four years, sources said. (BL).
Drug firm Zydus Cadila on Monday said that it has received approval from Drug Controller General of India (DGCI) for Saroglitazar Magnesium used in treatment of diabetes. (BL).
Quarterly Earnings
Tata Chemicals has reported an 8 per cent growth in December-quarter net profit at Rs.288 crore, against Rs.266 crore in Q3 FY19. Revenue from operations was up at Rs.2620 crore (Rs.2,570 crore). The company's freight and finance costs were lower at Rs.379 crore (Rs.445 crore) and Rs.75 crore (Rs.95 crore), respectively. The overall expenses were marginally lowered at Rs.2,386 crore (Rs.2,396 crore). (BL).
Mangalore Refinery and Petrochemicals Ltd (MRPL) registered a loss of Rs.36.64 crore during the third quarter of 2019-20 as against a loss of Rs.267.72 crore in the corresponding period of 2018-19. According to the information provided by MRPL to the stock exchanges, the company’s revenue from operations stood at Rs.16,744.59 crore (Rs.20,249.62 crore). The company recorded a loss of Rs.1111.21 crore in the first nine months of 2019-20 as against a profit of Rs.13.08 crore in the corresponding period of the previous fiscal. (ET).
Chemicals maker Deepak Nitrite on Monday posted nearly four-fold jump in its consolidated net profit to Rs.156.71 crore for the third quarter of the current financial year, on robust sales. It had clocked a net profit of Rs.39.70 crore during the October-December quarter of the previous financial year, according to a BSE filing. The company’s net income on a consolidated basis jumped significantly to Rs.1,134.52 crore during the third quarter of 2019-20 as compared with Rs.767.72 crore in the year-ago. (BL).
Amara Raja Batteries Limited has posted a profit of Rs.164.41 crore for the third quarter ended December 31, 2019, against Rs.130.89 crore logged in the corresponding quarter of last year. The battery major reported a revenue of Rs.1,747.81 crore in Q3 FY20, against Rs.1,694.66 crore for the corresponding quarter, registering a growth of 3 per cent. (ET).
Diagnostic services provider Dr Lal PathLabs on Monday reported a 19.08 per cent increase in consolidated net profit at Rs 54.9 crore for the quarter ended December 31. The company had posted a net profit of Rs 46.1 crore in the corresponding period of the previous fiscal, Dr Lal PathLabs said in a filing to the BSE. Its revenue from operations rose to Rs 327.9 crore during the quarter under review as against Rs 292.5 crore in the year-ago period. (BL).
Godrej Properties, real estate development arm of Godrej Group, has reported a 9 per cent year-on-year rise in consolidated net profit at Rs 45 crore for the quarter ended December. Total income for the quarter increased 4 per cent to Rs 491 crore. The quarter witnessed a 22 per cent drop in total booking value at Rs 1,189 crore and 43.6 per cent decline in total booking volume of 1.58 million sq ft, the company said in a release. The company added 4 new projects with saleable area of around 12.7 million sq ft to its portfolio during the quarter. The developer has entered into a joint venture to develop a township project in Navi Mumbai with around 7.5 million sq ft saleable area. The company’s economic interest in this project is 55 per cent of profit. (ET).
Economy and Sector News
Indian Railway Finance Corporation (IRFC), the borrowing arm of Indian Railways, is likely to be listed in mid-March this year, said multiple sources in the know. For the present fiscal (2019-20), Railways’ borrowing target has been increased by almost Rs.10,000 crore, an 18 per cent jump from the budgeted Rs.55,471 crore. (BL).
Factories’ output recorded a grand opening in January, as Purchasing Managers’ Index (PMI) for manufacturing surged to 55.3 in the month, the highest in nearly eight years. Manufacturing PMI is compiled by IHS Markit from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers. (ET).
Fitch Ratings on Monday said India is expected to clock a GDP growth of 5.6 per cent in the next financial year, lower than the projection made by the government’s Economic Survey, as Budget 2020 has not “materially altered” its view on the country’s growth outlook. The Economic Survey, released a day before Finance Minister Nirmala Sitharaman presented Union Budget for 2020-21 on February 1, had projected a GDP growth of 6-6.5 per cent, up from 5 per cent estimate for 2019-20. (BL).
Sugar production in the country as on January 31 was around 141 lakh tonnes (lt), nearly 24 per cent lower than 185.59 lt in the corresponding period last year, Indian Sugar Mills Association (ISMA), on Monday. This year’s sugar production is slated to be 260 lt, nealry 70 lt lower than that in the previous sugar season (October to November). (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 recorded some gains on Monday despite ongoing fears regarding the global spread of the Wuhan coronavirus. The Dow Jones Index closed at 28,400, up 143.78 points by 0.51%. The Standard & Poors 500 index closed at 3,249, up 23.40 points by 0.73%. The Nasdaq Composite Index closed at 9,273, up 122.47 points by 1.34%.

FTSE 100

UK markets started the month of February on Monday on the front foot, but only modestly, as sterling tumbled amid worries about a hard Brexit. The FTSE 100 index closed at 7,326, up 40.30 points by 0.55%.

 
 
Global Indices
03/02/2019 Clsg Chg%
Dow Jones 28,400 +0.51
NASDAQ 9,273 +1.34
FTSE 100 7,326 +0.55
Bovespa 114,629 +0.76
04/02/2020 Latest
(6:25AM IST)
Chg%
Nikkei 22,904 -0.30
Hang Seng 26,357 +0.17

Nikkei

A fragile calm gripped Asian shares on Tuesday as investors waited anxiously to see if Beijing could stem the rout in Chinese assets, while oil hit 13-month lows as the coronavirus throttled demand in the world’s biggest importer of fuel. Nikkei is currently trading at 22,904, down 67.91 points by 0.30%.

Precious Metals

Spot gold was off at $1,577.48 per ounce XAU=, from a top of $1.591.46, as the dollar firmed and safe haven demand waned a little on Tuesday.

Base Metals

The three-month aluminium price on the London Metal Exchange settled at a three-year low at the close of trading on Monday February 3, below the $1,700 per tonne support level against a 16-month high in turnover, while lead’s price decline over the day was the starkest in the base-metals complex.

Crude Oil

Brent crude LCOc1 futures crashed to $54.11 a barrel, bringing losses for the year so far to 18%, while U.S. crude CLc1 sank to $49.99 on Tuesday.

 
 
 

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