Morning Notes
03rd Jan, 2020
 

Trading Range:

Nifty opened gap up at 12199 on Thursday and made a high and low of 12290 and 12195 respectively before closing positive at 12282.

Review/Outlook:

For the day, support for Nifty exists at 12240 and 12180 levels whereas resistance for Nifty stands at 12320 and 12360 levels.

Review/Outlook:

Bank Nifty opened gap up at 32133, made a high of 32465, low of 32121, and closed positive at 32444. For the day, support for Bank Nifty exists at 32200 and 32000 levels whereas resistance for Bank Nifty stands at 32600 and 32800 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 41,627 +0.78
Nifty 12,282 +0.82
BSE 200 5,130 +0.88
BSE Midcap 15,182 +1.23
BSE Smallcap 13,986 +1.44
Dow Jones 28,869 +1.16
NASDAQ 9,092 +1.33
 

DERIVATIVES INDICATORS FOR JAN 03, 2020:

NIFTY 12282.20 (+99.70) (+0.82%)
NIFTY JAN FUTURE 12339.30 (57.10 Points Premium)
NIFTY PCR - OI 1.47 (+0.32)
NIFTY OPEN INTEREST 1.35 Cr. (+3.51%)
INDIA VIX 11.49 (-0.93%)
NIFTY ROLLOVER 8%

NIFTY OPTIONS ACTIVITY (30-JAN SERIES)

CALL 12300 CE -2.19 lac Shares
CALL 12200 CE -1.59 lac Shares
PUT 12200 PE +1.36 lac Shares
PUT 12300 PE +4.36 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 18,526 +0.73
Bankex 36,922 +0.95
PSU 7,068 +1.12
Healthcare 13,520 +0.41
IT 15,541 -0.18
 
Market Turn Over (`cr)
Index 02/01 01/01
BSE Cash 1,885 1,191
NSE Cash 31,282 20,810
NSE F&O 2,898,850 1,124,095
BSE Delivery % 54.94 45.02
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 70.30 29.70
BSE 200 70.15 29.35
BSE 500 75.05 24.15
Total BSE 64.65 29.49
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 61.18 +0.20
Gold Rs./ 10 Gms 39277.00 +0.54
Silver Rs./ Kg 47022.00 +0.77
Rs.- US $ 71.29 -0.04
Rs.- Euro 79.65 -0.45
FII (Rs cr )
02/01* 01/01*
FIIs +359.03 -1972.18
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       26,545.00       2,101.39       30,145.00       2,336.56    1,17,764.00     10,230.55    (235.17)
Index Options  48,50,784.00  3,42,271.48  47,91,682.00  3,37,918.88    5,26,787.00     45,560.78  4,352.60
Stock Futures    1,45,465.00       9,782.95    1,34,288.00       9,080.23  14,37,009.00     97,447.56     702.72
Stock Options       41,866.00       2,999.65       40,279.00       2,892.79       41,272.00       2,765.77     106.86
Total  50,64,660.00  3,57,155.47  49,96,394.00  3,52,228.46  21,22,832.00  1,56,004.66  4,927.01
Corporate News
Auto companies announced sales numbers for Dec 2019. On a YoY basis, Hero MotoCorp recorded sales decline of 6%, Bajaj Auto sales declined by 21%, TVS Motors sales declines by 25%, Royal Enfield sales declined by 13%, Suzuki Motorcycle India recorded sales growth of 1%, and Ashok Leyland sales dropped by 25%. (BL).
Oil and Natural Gas Corporation Ltd (ONGC) has bagged all the blocks on offer in the Open Acreage Bid Round IV. ONGC had bid for all the seven blocks on offer while Oil India (OIL) had bid for just one block. (ET).
Coffee Day Hotels & Resorts Pvt Ltd, a wholly-owned unit of Coffee Day Enterprises Ltd that runs three luxury resorts in Karnataka and one in Andaman and Nicobar, has attracted interest from a few mid-sized hotel operators as the group eyes asset sales to pare debt. (BL).
Tata Sons has moved the Supreme Court seeking a stay on the National Company Law Appellate Tribunal’s (NCLAT) judgment that reinstated Cyrus Mistry as chairman. The petition is likely to be mentioned before the Chief Justice on January 6, when the court reopens after winter vacation. (BL).
Jindal Steel & Power Ltd (JSPL) has recorded its highest-ever quarterly domestic production of crude steel and related products, with a 22 per cent year-on-year growth in the third quarter-ended December 2019. (BL).
JSW Energy has entered into an agreement with Jaiprakash Power Ventures Limited (JPVL) to restructure debt of Rs 752 crore. As a part of this agreement, Rs 351.77 crore will be converted into equity shares of the financially troubled JPVL at par value of Rs.10 each, the Sajjan Jindal-led company said in a filing to the exchanges. (BS).
Taiho Pharmaceutical, a Japanese pharmaceuticals company and its group company have moved a US court against Natco Pharma, alleging that the Indian drug maker was attempting to come out with a generic version of its cancer medicine ‘Lonsurf,’ before expiration of its patent. (ET).
HDFC Ltd on Thursday said the company and its subsidiary HDFC ERGO have got approvals for acquiring a majority shareholding in Apollo Munich Health Insurance Co Ltd. According to the acquisition deal, HDFC will acquire majority stake in Apollo Munich from the Apollo Hospitals Group for Rs 1,347 crore and will merge the company with its arm HDFC ERGO. HDFC will acquire 50.8 per cent from the Apollo Hospitals group for Rs 1,336 crore and will buy out the 0.4 per cent stake being held by the employees for Rs 10.84 crore. (BL).
Tata Group hospitality arm Indian Hotels Company Ltd (IHCL) on Thursday said it has added Fateh Prakash Palace in Udaipur to its collection of authentic palaces, which has now been renamed as Taj Fateh Prakash Palace. (ET).
Shriram Transport Finance Company Ltd (STFC) is planning to raise up to Rs 1,000 crore by issuing Secured Redeemable Non-Convertible Debentures (NCDs) of the face value of Rs 1,000 each. The company’s Tranche 2 Issue of NCDs, which will open on January 6 and close on January 22, has a base size of Rs 200 crore with an option to retain over-subscription aggregating up to Rs 1,000 crore. (ET).
Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC) has received a demand notice from the Department of Telecommunications (DoT) seeking telecom service dues of about Rs 15,019.97 crore. (BL).
HAL, a Bengaluru-based aerospace, and defence company, and Wipro 3D, the metal additive manufacturing (AM) business of Wipro Infrastructure Engineering (WIN), have signed a memoradum of understanding (MoU) to design, develop, prove out, manufacture and repair of aerospace components using metal additive technology. The MoU also accentuates development, prove out and application of new material for use in metal additive technology. (ET).
Bosch, the Indian unit of the world’s largest auto-parts supplier, plans to join its parent, Robert Bosch GmbH in cutting jobs as the South Asian nation witnesses one of its worst auto sales slowdowns in decades. The German company will cut “a couple of thousand” jobs in India in the next four years, India Managing Director Soumitra Bhattacharya said. About 10% of 3,700 white-collar jobs and a slightly higher percentage of 6,300 blue-collar jobs will be cut, he added in an interview in Bangalore on Dec. 30. (ET).
Economy and Sector News
Signalling an uptick in manufacturing performance, the manufacturing purchasing managers’ index (PMI) for December came in at 52.7, rising from 51.2 in November 2019, a private survey showed. This marked pace of the Indian manufacturing output in December was the joint fastest in ten months, IHS Markit said. However, owing to a weak performance in October and November, the average quarterly reading for Q3 in 2019-20 was the lowest since the three months to September 2017. (BL).
India’s coffee shipments for the calendar year 2019 fell 5 per cent in value due to lower prices, despite a marginal increase in overall volumes. In dollar value, shipments declined to $794.21 million during 2019, lower than previous year’s $836.14 million. Also, the exports were marginally lower in domestic currency at Rs 5583.64 crore, as against Rs 5661.37 crore, according to the state-run Coffee Board’s latest provisional data. Total volumes saw a marginal growth at 3.505 lakh tonnes during 2019 as against 3.488 lakh tonnes in the previous year. (ET).
Banks' credit and deposits grew by 7.10 per cent and 10.09 per cent to Rs 99.47 lakh crore and Rs 130.08 lakh crore in the fortnight ended December 20, according to the latest Reserve Bank data. In the year-ago fortnight, banks' advances stood at Rs 92.87 lakh crore, while deposits were at Rs 118.16 lakh crore. In the previous fortnight ended December 6, credit had grown by 7.91 per cent to Rs 99.34 lakh crore and deposits had increased by 10.27 per cent to Rs 131.05 lakh crore. On a year-on-year basis, banks' credit growth slowed to 7.2 per cent to Rs 86.73 lakh crore in November 2019 from 13.8 per cent increase to Rs 80.93 lakh crore in the year-ago period. (BL).
ICRA has maintained a cautiously stable year-end outlook for the road sector. The following key considerations matter in the sectoral assessment. Land acquisition cost has exponentially increased over last few years to around Rs3.40cr per hectare currently as against Rs0.90cr per hectare in FY2014. Land cost alone accounts for more than 30% of the total expenses of NHAI. Further, with around 90-92% of the awards over last few years through engineering procurement and construction (EPC, wherein NHAI has to fund 100% upfront) and BOT (HAM, wherein NHAI has to fund 40% upfront and remaining 60% over a period of 15 years) modes, the financial burden on NHAI has continued to remain high. The total debt for NHAI has increased by more than 2.4 times to Rs1.79 lakh crore as on March 31, 2019 from Rs75,385cr as on March 31, 2017. NHAI’s borrowings are expected to get doubled by FY2022 to fund the on-going Bharatmala Pariyojana programme. (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 notched record highs to open the new year on Thursday, as fresh economic stimulus from China added to optimism fueled by easing trade tensions and an improving global outlook. The Dow Jones Index closed at 28,869, up 330.36 points by 1.16%. The Standard & Poors 500 index closed at 3,258, up 27.07 points by 0.84%. The Nasdaq Composite Index closed at 9,092, up 119.58 points by 1.33%.

FTSE 100

UK markets kicked off the new yearon Thursday in style as investors welcomed monetary stimulus from the Chinese central bank. The FTSE 100 index closed at 7,604, up 61.86 points by 0.82%.

 
 
Global Indices
02/01/2019 Clsg Chg%
Dow Jones 28,869 +1.16
NASDAQ 9,092 +1.33
FTSE 100 7,604 +0.82
Bovespa 118,573 +2.53
03/01/2020 Latest
(4:42AM IST)
Chg%
Nikkei - -
Hang Seng - -

Nikkei

Asian markets are closed on Friday for Bank Holiday 3. The following numbers are for the previous trading session at the given time stamp. Nikkei is currently trading at 23,657, down 181.10 points by 0.76%.

Precious Metals

Gold prices marked their highest settlement since late September on Thursday, up a seventh session in a row, after ending 2019 with its biggest annual percentage gain in nine years.

Base Metals

The three-month price of zinc on the London Metal Exchange had made the greatest gains at the close of trading on Thursday January 2, with the price breaching nearby resistance levels, but copper futures failed to close above the $6,200 per tonne threshold despite an afternoon spike.

Crude Oil

Oil futures started 2020 with a modest gain on Thursday, as traders eyed developments in the Middle East and weighed prospects for crude supply disruptions in the region.

 
 
 

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