Morning Notes
05th Feb, 2020
 

Trading Range:

Nifty opened gap up at 11786 on Tuesday and made a high and low of 11986 and 11783 respectively before closing positive at 11980.

Review/Outlook:

For the day, support for Nifty exists at 11920 and 11860 levels whereas resistance for Nifty stands at 12040 and 12110 levels.

Review/Outlook:

Bank Nifty opened gap up at 30235, made a high of 30777, low of 30182, and closed positive at 30687. For the day, support for Bank Nifty exists at 30500 and 30300 levels whereas resistance for Bank Nifty stands at 30900 and 31100 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 40,789 +2.30
Nifty 11,980 +2.32
BSE 200 5,041 +2.12
BSE Midcap 15,499 +1.37
BSE Smallcap 14,546 +1.29
Dow Jones 28,808 +1.44
NASDAQ 9,468 +2.10
 

DERIVATIVES INDICATORS FOR FEB 05, 2020:

NIFTY 11979.65 (+271.75) (+2.32%)
NIFTY FEB FUTURE 11964.25 (-15.40 Points Discount)
NIFTY PCR - OI 1.24 (+0.28)
NIFTY OPEN INTEREST 1.46 Cr. (-0.09%)
INDIA VIX 14.38 (-8.89%)
NIFTY ROLLOVER 6%

NIFTY OPTIONS ACTIVITY (27-FEB SERIES)

CALL 12000 CE -2.78 lac Shares
CALL 11900 CE +1.77 lac Shares
PUT 11900 PE +6.54 lac Shares
PUT 11800 PE +2.77 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 18,195 +1.34
Bankex 35,143 +2.01
PSU 6,477 +2.78
Healthcare 13,888 +1.08
IT 16,060 +1.59
 
Market Turn Over (`cr)
Index 04/02 03/02
BSE Cash 3,138 1,856
NSE Cash 43,257 43,507
NSE F&O 1,647,159 1,332,560
BSE Delivery % 59.48 45.21
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 84.16 15.84
BSE 200 79.10 20.90
BSE 500 77.45 21.96
Total BSE 59.72 33.23
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 49.45 -1.32
Gold Rs./ 10 Gms 39975.00 -1.89
Silver Rs./ Kg 45534.00 -0.78
Rs.- US $ 71.14 -0.35
Rs.- Euro 78.56 -0.51
FII (Rs cr )
04/02* 03/02*
FIIs +1850.57 -4375.56
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       79,641.00       6,312.91       76,207.00       5,632.55    1,76,220.00     14,891.50     680.36
Index Options  46,72,016.00  3,33,045.32  46,51,139.00  3,31,391.79    7,17,538.00     59,488.84  1,653.53
Stock Futures    2,54,789.00     17,233.45    2,31,165.00     15,556.14  15,53,698.00     99,958.79  1,677.31
Stock Options       90,261.00       6,440.32       88,205.00       6,322.59       53,908.00       3,508.05     117.73
Total  50,96,707.00  3,63,032.00  50,46,716.00  3,58,903.07  25,01,364.00  1,77,847.18  4,128.93
Corporate News
Bajaj Auto on Tuesday reported 3.1 cent decline in total sales at 3,94,473 units in January. The firm had sold a total of 4,07,150 units in January 2019, Bajaj Auto said in a statement. Total domestic sales were down 16.6 per cent at 1,92,872 units as compared to 2,31,461 units in the year-ago month, it added. The two-wheeler sales in domestic market were at 1,57,796 units last month against 203,358 units in January 2019, down 22.4 per cent. In more news, Bajaj Auto is planning to launch 6-9 motorcycles in the next 12 months, across its domestic and global markets, said Rakesh Sharma, Executive Director, Bajaj Auto. By the first half of this month, the company also plans to fully transition its motorcycles to BS-6 models. (BL).
The Corporate Affairs Ministry has finalised a takeover code for unlisted companies under which a majority shareholder with three-fourth of the equity in a company can move the National Company Law Tribunal to take over rest of the stake. The policy could have an impact on the ongoing battle between Tata Sons and former Chairman Cyrus Mistry. Mistry’s family — the Shapoorji Pallonji Group — is a minority shareholder and Tata Trusts, the majority shareholder of Tata Sons, could move the tribunal to acquire the shares held by the Mistry camp. (ET).
Adani Green Energy Ltd, which reported a loss of Rs.129 crore for the quarter ended December 2019, blamed Tamil Nadu’s state-owned power purchaser, Tangedco, for its owes. (BS).
Bengaluru-based defence public sector undertaking, BEML, plans to unveil an artificial intelligence-based mobile healthcare diagnosis system at the DefExpo 2020, a biennial mega defence exhibition being held this year in Lucknow from February 5 to 9. (ET).
Century Plyboards (India) Ltd has revised its outlook for FY20 and is now expecting to grow at 6 per cent this fiscal. The plyboards and laminate-maker had earlier expected a “double-digit growth”. The downward revision came on account of the current economic slowdown and the new initiatives taken by the company.. (BL).
Sun Pharmaceutical Industries announced that one of its wholly-owned subsidiaries has launched ABSORICA LD (isotretinoin) capsules in the US for the management of severe recalcitrant nodular acne in patients 12 years of age and older. ABSORICA LD is the only isotretinoin formulation to feature Sun Pharma’s micronization technology, which utilizes micronized particles to optimize absorption at a 20% lower dose. ABSORICA LD can be taken with or without food. (BL).
Quarterly Earnings
Bajaj Electricals on Tuesday posted a 84.51 per cent drop in consolidated net profit to Rs.9.37 crore in the third-quarter ended December. It had posted a consolidated net profit of Rs.60.52 crore in the year-ago period. Total income from operations during the quarter stood at Rs.1,283.86 crore (Rs.2,164.49 crore), a 40.68 per cent dip. (BL).
JSW Energy on Tuesday said its consolidated net profit jumped over two-fold to Rs.394 crore during the December 2019 quarter, mainly helped by reduced expenses. The company had clocked a Rs.146-crore net profit during the corresponding quarter a year ago. Its total income in the October-December 2019 period fell to Rs.2,106 crore, from Rs.2,491 crore in the corresponding period a year ago. (ET).
The country’s largest automotive battery maker, Exide Industries Ltd, reported an over 26 jump in standalone net profit to Rs.196 crore for the quarter ending December 2019 (Q3FY20). Net profit in the year-ago-period stood at Rs.155 crore. The standalone revenue from operations, during the quarter under review, stood at Rs.2,437 crore, or a near three per cent year-on-year drop. (BL).
Mahindra Logistics on Tuesday reported a 19.13 per cent fall in consolidated net profit to Rs 15.67 crore for the December 2019 quarter. The company had clocked a profit of Rs 19.34 crore in the year-ago period, according to a BSE filing. Its total income declined to Rs 909.94 crore during the quarter, against Rs 982.67 crore in the corresponding period a year ago. (ET).
Supply chain solutions provider Gati Ltd has reported a consolidated loss of Rs 5.15 lakh during the quarter ended December 31, 2019. The company had clocked Rs 4.21 crore profit in the year ago quarter, Gati Ltd said in a BSE filing. Its total income during the said quarter stood at Rs 447.70 crore as against Rs 483.05 crore in the same period preceding fiscal. (BL).
Bharti Airtel continues to bleed with the Sunil Mittal company posting a consolidated net loss of Rs 1,035 crore in Q3 (Oct-Dec) against a net profit of Rs 86 crore in the same period of the last fiscal. The company hinted at further hike in tariffs with CEO Gopal Vittal stating tariffs must go up further for enabling the industry to invest in emerging technologies. The consolidated revenues for Q3, however, at Rs 21,947 crore, grew 10.5 per cent Y-o-Y (reported increase of 8.5 per cent Y-o-Y) on an underlying basis. Consolidated mobile data traffic, at 5,357 PBs in the quarter, registered a healthy Y-o-Y growth of 73 per cent. (BL).
Adani Green's loss widened in the third quarter of 2019-20 to Rs 129 crore as compared to a Rs 118 crore a year ago, dented by an exceptional cost. Total revenue from operations in the quarter ended December stood at Rs 504 crore, up 11% year-on-year. (ET).
Adani Ports & SEZ on Tuesday said its consolidated profit fell 2 per cent year-on-year (YoY) to Rs 1,384 crore for December quarter compared with Rs 1,410 crore in the same quarter last year. Consolidated operating revenue rose 18 per cent to Rs 3,336 crore from Rs 2,824 crore. (ET).
Mangalore Chemicals and Fertilisers Ltd (MCFL) on Tuesday reported a 33 per cent increase in its net profit at Rs 18.09 crore for the quarter ended December. Its net profit stood at Rs 13.65 crore in the year-ago period, the company said in a regulatory filing. Total income fell to Rs 682.8 crore in the third quarter of this fiscal from Rs 764.92 crore in the corresponding period of the previous year, while total expenses declined to Rs 654.81 crore from Rs 742.19 crore during the period under the review. (BS).
Titan Company reported a 12.9 per cent year-on-year (YoY) rise in standalone profit at Rs 469.95 crore for the December quarter, meeting analyst estimates of Rs 453 crore. The company had reported Rs 416.23 crore profit in the same period last year. Sales for the quarter rose 8.40 per cent to Rs 6,105.96 crore from Rs 5,632.45 crore in the same quarter last. Revenue from other operations, which excludes sales and services revenue, more than doubled to Rs 100.27 crore in Q3 from Rs 39.77 crore in the same quarter, year ago. That translates into a jump of 152 per cent. (BL).
Ajay Piramal-led Piramal Enterprises on Tuesday reported 20.25 per cent rise in consolidated net profit to Rs 724.19 crore for the quarter ended December 31, 2019 mainly on account of robust growth in the pharma business. The company had posted a profit of Rs 602.04 crore for the same period a year ago, Piramal Enterprises said in a filing to the BSE. Revenue from operations also rose to Rs 3,805.67 crore for the quarter under review as against Rs 3,489.30 crore in the year-ago period. (BL).
Economy and Sector News
The Foreign Direct Investment (FDI) in India has been increasing on an annual basis and was at USD 34.90 billion till November of this fiscal, Parliament was informed on Tuesday. The FDI stood at USD 62 billion in the full 2018-19 fiscal, while at USD 60.90 billion in 2017-18 and USD 60.22 billion during 2016-17, Minister of State for Finance Anurag Thakur said while placing the data in Rajya Sabha. (BL).
India has commissioned renewable energy (RE) projects totalling 7,591.99 MW during April-December, 2019-20, Parliament was informed on Tuesday. Another 34,160 MW capacity is under implementation, Renewable Energy Minister RK Singh said while replying to a question during Question Hour in the Rajya Sabha. It is expected that RE capacity addition in 2019-20 will exceed the capacity addition achieved in the previous financial year which stood at 8,532.22 MW, he said. Singh further said most of the grid-connected RE projects are being implemented by private sector developers selected through a transparent competitive bidding process. (ET).
With the lingering crisis in the auto sector, which has been going through the worst demand fall in two decades, the ancillary players are in for a bad times in FY21, says a report. Rating agency India Ratings has accordingly placed a negative outlook on the sector as it expects flat-to-low single-digit growth in auto volumes next year, after falling in double digits so far this fiscal year. Auto sales have plunged 16 per cent till January. (BL).
Tim Draper, venture capitalist and founder of Draper Venture Network, has invested $3.5 million (around ₹24.93 crore) in Tribe Theory, an entrepreneur-focused hostel chain present in multiple locations across the world. Draper has been an early investor in more than 30 unicorns including Hotmail, Skype, Tesla, SpaceX, Baidu and Bitcoin. (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 closed sharply higher on Tuesday as US stocks attempted to regain some of the heavy losses recorded on Friday after China's fast-spreading coronavirus sparked a sell-off on the Street. The Dow Jones Index closed at 28,808, up 407.82 points by 1.44%. The Standard & Poors 500 index closed at 3,298, up 48.67 points by 1.50%. The Nasdaq Composite Index closed at 9,468, up 194.57 points by 2.10%.

FTSE 100

UK markets rallied on Tuesday as BP gained on the back of well-received results, while miners also put in a strong performance. The FTSE 100 index closed at 7,440, up 113.51 points by 1.55%.

 
 
Global Indices
04/02/2019 Clsg Chg%
Dow Jones 28,808 +1.44
NASDAQ 9,468 +2.10
FTSE 100 7,440 +1.55
Bovespa 115,557 +0.81
05/02/2020 Latest
(4:35AM IST)
Chg%
Nikkei 23,085 +0.49
Hang Seng 26,676 +1.21

Nikkei

Asian share markets started trading early in the morning on Wednesday on a positive note as the investors will be closely watching the US markets. Nikkei is currently trading at 23,085, up 112.65 points by 0.49%.

Precious Metals

Gold futures settled lower Tuesday, pushing prices to their lowest finish in more than two weeks.

Base Metals

London Metal Exhchange three-month base metals prices absorbed any residual optimism from the People’s Bank of China's 1.2 trillion yuan ($174 billion) boost to liquidity to close the day little-changed on Tuesday February 4.

Crude Oil

Oil futures gave up earlier gains to finish with a loss on Tuesday, with U.S. prices below $50 a barrel for the first time in more than a year, as demand worries continue to plague the market.

 
 
 

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