Morning Notes
04th Nov, 2019
 

Trading Range:

Nifty opened gap up at 11887 on Friday and made a high and low of 11918 and 11843 respectively before closing positive at 11891.

Review/Outlook:

For the day, support for Nifty exists at 11840 and 11780 levels whereas resistance for Nifty stands at 11950 and 12000 levels.

Review/Outlook:

Bank Nifty opened gap up at 30196, made a high of 30409, low of 30029, and closed positive at 30331 levels. For the day, support for Bank Nifty exists at 30100 and 29900 levels whereas resistance for Bank Nifty stands at 30500 and 30700 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 40,165 +0.09
Nifty 11,891 +0.11
BSE 200 4,989 +0.11
BSE Midcap 14,891 +0.18
BSE Smallcap 13,601 +0.32
Dow Jones 27,347 +1.11
NASDAQ 8,386 +1.13
 

DERIVATIVES INDICATORS FOR NOV 04, 2019:

NIFTY 11890.60 (+13.15) (+0.11%)
NIFTY NOV FUTURE 11928.25 (37.65 Points Premium)
NIFTY PCR - OI 1.41(-0.01)
NIFTY OPEN INTEREST 1.51Cr. (+1.68%)
INDIA VIX 15.73 (-3.36%)
NIFTY ROLLOVER 4%

NIFTY OPTIONS ACTIVITY (28-NOV SERIES)

CALL 12000 CE +1.26 lac Shares
CALL 11900 CE +2.06 lac Shares
PUT 11800 PE +2.34 lac Shares
PUT 11900 PE +2.39 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 18,803 -0.75
Bankex 34,209 +0.84
PSU 7,182 -0.12
Healthcare 13,300 +0.54
IT 15,273 -0.77
 
Market Turn Over (`cr)
Index 01/11 31/10
BSE Cash 2,956 3,040
NSE Cash 42,782 50,816
NSE F&O 619,198 2,620,755
BSE Delivery % 35.65 41.77
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 53.47 46.53
BSE 200 54.73 44.28
BSE 500 55.29 43.91
Total BSE 51.17 42.43
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 56.20 +3.73
Gold Rs./ 10 Gms 38310.00 -0.69
Silver Rs./ Kg 46392.00 -0.80
Rs.- US $ 70.54 -0.77
Rs.- Euro 78.78 -0.63
FII (Rs cr )
01/11* 31/10*
FIIs +1989.84 +1519.60
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       34,551.00       2,572.15       28,860.00       2,144.09    1,59,274.00     13,752.72     428.06
Index Options  16,49,049.00  1,15,872.12  16,32,918.00  1,14,440.36    5,92,184.00     49,601.53  1,431.76
Stock Futures    2,75,732.00     14,731.26    2,60,529.00     13,636.13  14,98,562.00     89,185.71  1,095.13
Stock Options       75,366.00       4,144.21       76,213.00       4,185.23       50,196.00       2,959.59      (41.02)
Total  20,34,698.00  1,37,319.74  19,98,520.00  1,34,405.81  23,00,216.00  1,55,499.55  2,913.93
Corporate News
Auto companies announced sales numbers for October. On a YOY basis, Maruti recorded sales growth of 2.3%, Hyundai Motors sales dropped by 3.8%, M&M sales declined by 23%, Tata Motors sales were down by 32%, Ashok Leyland sales dipped 37%, TVS Motor Company sales declined by 25.2%, Hero MotoCorp reported sales drop of 18.43%, and Bajaj Auto's sales dipped 14%. (BL).
Tamil Nadu Cements Corporation Ltd (TANCEM) has expanded the capacity at its Ariyalur complex at an investment of Rs.809 crore. With this, its total cement production increases to 17 lakh tonnes a year from 7 lakh tonnes. (ET).
Siemens Limited has signed a Memorandum of Understanding (MoU) with NTPC Limited to identify, evaluate and set up reference use cases of hydrogen sector-coupling for various upstream and downstream applications. (BL).
Tamil Nadu Newsprint & Papers Ltd is embarking on the first phase of its Mill Expansion Plan (MEP) with an outlay of Rs.1,100 crore at its Mondipatti unit in Tiruchirapalli District. (ET).
Tata Trusts on Friday said that it was looking at legal options against a decision by the Principal Commissioner of Income Tax (I-T), Mumbai, to cancel I-T registrations of six Tata Trusts with immediate effect. (BL).
Alkem Laboratories said that U.S. FDA has closed its inspection at its manufacturing facility in Daman and Baddi. The regulator has issued an EIR for both plants in the month of August when the inspection took place. (BQ).
Coal India coal production in October down 20.9 percent at 39.35 million tons versus 49.78 million tons. Coal offtake down 18.9 percent at 40.5 million tons versus 49.96 million tons. (BQ).
Ashok Leyland to observe non-working days ranging from 0-12 days during the month of November. (BQ).
Quarterly Earnings
Drug firm Unichem Laboratories on Saturday reported a narrowing of its consolidated net loss to Rs 22.20 crore for the quarter ended September 30, 2019. The company had posted a net loss of Rs 41.03 crore for the corresponding period of the previous fiscal, Unichem Laboratories said in a filing to the BSE. Its consolidated revenue from operations stood at Rs 295.60 crore for the quarter under consideration. It was Rs 261.15 crore for the same period a year ago, it added. (BL).
Cement manufacturing firm JK Lakshmi Cement on Friday reported a consolidated net profit of Rs. 49.72 crore for the quarter ended on September 30, 2019. The company had registered a loss of Rs. 5.70 crore during the same quarter last fiscal. The total income of the company stood at Rs. 1,018.11 crore for the quarter under consideration against Rs. 973.95 crore in the previous year period. (BS).
Private lender YES Bank on Friday reported a loss of Rs 600.08 crore for the September quarter due to a one-off DTA adjustment of of Rs 709 crore on account of change in corporate tax rate regime. The lender had posted Rs 964.70 crore profit in the corresponding quarter last year. (BL).
JSW Energy on Friday posted about 12 per cent rise in consolidated net profit at Rs 353 crore for the September quarter of this fiscal mainly due to lower fuel and finance cost. The company had reported a profit of Rs 316 crore in the year-ago period, a BSE filing said. The profit in April-September also rose to Rs 597.36 crore from Rs 545.13 crore a year ago. Total revenue during the quarter under review fell 13 per cent to Rs 2,232 crore from Rs 2,568 crore in the year-ago period mainly due to decline in fuel cost. (ET).
Karur Vysya Bank on Friday reported 24.4 per cent decline in September quarter net profit at Rs 63.33 crore due to higher provision for bad loans. The private sector lender had posted a profit of Rs 83.74 crore in July-September 2018-19. Total income, however, was up at Rs 1,815.24 crore during the quarter under review as against Rs 1,632.50 crore in the same period of the previous fiscal. Net NPAs or bad loans stood at 4.50 per cent (Rs 2,118.35 crore) as against 4.41 per cent (Rs 2,051.51 crore). Provision coverage ratio stood at 61.82 per cent by September 30, 2019. (BL).
State-owned Bank of India (BoI) on Friday reported a net profit of Rs 266.37 crore for the second quarter ending September 30, due to a decline in provisions for bad loans. The bank had posted a loss of Rs 1,156.25 crore in the July-September quarter last fiscal. Total income of the bank rose to Rs 11,985.50 crore during the second quarter, from Rs 10,800.24 crore in the same period of 2018-19, according to a regulatory filing by Bank of India. Provisions towards bad loans halved to Rs 1,452.09 crore in the July-September quarter from Rs 3,343.27 crore in the year-ago quarter. Net NPAs too declined to 5.77 per cent at September-end from 7.64 per cent in the year-ago period. Net NPAs too declined to 5.77 per cent at September-end from 7.64 per cent in the year-ago period. During the quarter ended September 30, 2019, Bank has redeemed Tier II Bonds aggregating to Rs 1,000 crore by exercising call option. (BL).
Dr Reddy's Laboratories on Friday reported over two-fold jump in consolidated net profit to Rs 1,092.5 crore for the second quarter ended September 30, 2019. The company had posted a profit of Rs 503.80 crore for the year-ago period, Dr Reddy's said in a regulatory filing. The net tax for the quarter has a benefit of Rs 330 crore due to recognition of deferred tax assets of Rs 520 crore, primarily related to the MAT credit, it said. Revenue in the second quarter stood at Rs 4,800.9 crore as against Rs 3,797.8 crore in the year-ago period, an increase of 26.41 per cent, it added. (BL).
Economy and Sector News
Kolkata-based manganese alloy producer Maithan Alloys Ltd is looking to incorporate a wholly-owned subsidiary for its proposed greenfield project at Bankura. In more news, the NHAI has terminated the concession agreements of two Special Purpose Vehicles (SPVs) of highways infrastructure developer IRB Infrastructure. In a filing to the exchanges on November 2, IRB Infra, which recently got Rs.4,400-crore investment from Singapore sovereign wealth fund GIC, said the authority has terminated concession agreements to its two SPVs — IRB PP Project Pvt Ltd and IRB PS Highway Pvt Ltd. (BL).
In a major development, the Devendra Fadnavis government approved Rs 10,000 crore immediate relief to the farmers and fishermen in Maharashtra, who have suffered crop losses and property damage due to untimely rains. In more news, IndiGo has been asked to replace both engines on 97 of its A-320 family New Engine Options (NEO) aircraft with modified LPT by the end of January next year. (ET).
Cooking gas bills are going to be higher for the month of November as IndianOil has hiked the price of domestic LPG cylinders (14.2 kg) by Rs 76 per cylinder across metro cities. The LPG price hike ranges from Rs 76 to Rs 76.50 per cylinder. LPG price (Price of 14.2 kg domestic cylinder in Rupees per cylinder). Airlines, on the other had, may get a breather as the price of Aviation Turbine Fuel (ATF) has been lowered by around 3 per cent across the four metros (Delhi, Chennai, Mumbai and Kolkata). The auto fuel prices were also cut marginally on Friday, with petrol being sold at Rs 72.86 a litre, while diesel will be sold at Rs 65.80 a litre in New Delhi. The revised price for LPG and ATF is expected to be applicable for November. Petrol and diesel prices are revised on a daily basis by domestic oil marketing companies. (BL).
Tata Trusts on Friday said that it was looking at legal options against a decision by the Principal Commissioner of Income Tax (I-T), Mumbai, to cancel I-T registrations of six Tata Trusts with immediate effect. In more news, the gross GST revenue collected in the month of October, 2019 is Rs95,380cr of which CGST is Rs17,582cr, SGST is Rs23,674cr, IGST is Rs46,517cr (including Rs21,446cr collected on imports) and Cess is Rs7,607cr (including Rs774cr collected on imports). The total number of GSTR 3B Returns filed for September up to October 31, 2019, is Rs73.83 lakhs the Ministry of Finance said. The government has settled Rs20,642cr to CGST and Rs13,971cr to SGST from IGST as regular settlement. The total revenue earned by the Central Government and the State Governments after regular settlement in October 2019 is Rs38,224cr for CGST and Rs37,645cr for the SGST. The revenue during October 2019 is declined by 5.29% in comparison to the revenue during October 2018. However, during April-October, 2019 vis-à-vis 2018, the domestic component has shown 6.74% growth while the GST on imports has shown negative growth and the total collection has grown by 3.38%, the Ministry of Finance data added. (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 the week on Friday on a very strong note, with surpisingly strong readings on the US jobs market and Chinese manufacturing sending the S&P 500 and Nasdaq Composite to fresh record highs. The Dow Jones Index closed at 27,347, up 301.13 points by 1.11%. The Standard & Poors 500 index closed at 3,067, up 29.35 points by 0.97%. The Nasdaq Composite Index closed at 8,386, up 94.04 points by 1.13%.

FTSE 100

UK markets jumped at the end of the week on Friday as investors mulled better-than-expected US non-farm payrolls data and Chinese manufacturing figures. The FTSE 100 index closed at 7,302, up 54.04 points by 0.75%.

 
 
Global Indices
01/11/2019 Clsg Chg%
Dow Jones 27,347 +1.11
NASDAQ 8,386 +1.13
FTSE 100 7,302 +0.75
Bovespa 108,196 +0.91
04/11/2019 Latest
(5:56AM IST)
Chg%
Nikkei 22,851 -0.33
Hang Seng 27,101 +0.72

Nikkei

Asian shares rose to 14-week highs on Monday as growing optimism over U.S.-China trade talks and upbeat U.S. job data boosted global investors’ appetite for riskier assets. Nikkei is currently trading at 22,851, down 76.27 points by 0.33%.

Precious Metals

Gold was slightly lower on Monday as investors moved into riskier assets. Spot gold XAU= was trading at $1,512.42 per ounce, down 0.07%.

Base Metals

Aluminium closed at its highest in six weeks on the London Metal Exchange on Friday November 1 while copper also continued its recovery.

Crude Oil

Oil prices, which had surged on hopes for a U.S.-China trade deal, were a shade lower on Monday. Global benchmark Brent crude LCOc1 was off 0.10% at $61.63 per barrel and U.S. West Texas Intermediate crude CLc1 was 0.11% lower at $56.14.

 
 
 

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