Morning Notes
05th Nov, 2019
 

Trading Range:

Nifty opened gap up at 11929 on Monday and made a high and low of 11989 and 11905 respectively before closing positive at 11941.

Review/Outlook:

For the day, support for Nifty exists at 11890 and 11800 levels whereas resistance for Nifty stands at 12000 and 12050 levels.

Review/Outlook:

Bank Nifty opened gap up at 30416, made a high of 30607, low of 30227, and closed flat at 30333. 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 40,301 +0.34
Nifty 11,941 +0.43
BSE 200 5,003 +0.28
BSE Midcap 14,892 +0.01
BSE Smallcap 13,631 +0.22
Dow Jones 27,462 +0.42
NASDAQ 8,433 +0.56
 

DERIVATIVES INDICATORS FOR NOV 05, 2019:

NIFTY 11941.30 (+50.70) (+0.43%)
NIFTY NOV FUTURE 11979.70 (38.40 Points Premium)
NIFTY PCR - OI 1.44(+0.03)
NIFTY OPEN INTEREST 1.53Cr. (+0.94%)
INDIA VIX 15.92 (+1.22%)
NIFTY ROLLOVER 4%

NIFTY OPTIONS ACTIVITY (28-NOV SERIES)

CALL 12000 CE +1.02 lac Shares
CALL 12100 CE +0.75 lac Shares
PUT 12100 CE +0.75 lac Shares
PUT 11900 PE +2.38 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 18,560 -1.29
Bankex 34,219 +0.03
PSU 7,201 +0.28
Healthcare 13,321 +0.16
IT 15,429 +1.02
 
Market Turn Over (`cr)
Index 04/11 01/11
BSE Cash 2,946 2,956
NSE Cash 40,294 42,782
NSE F&O 817,068 619,198
BSE Delivery % 56.46 35.65
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 49.50 50.50
BSE 200 48.26 51.74
BSE 500 51.90 46.91
Total BSE 52.01 41.96
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 56.50 -0.07
Gold Rs./ 10 Gms 38472.00 +0.42
Silver Rs./ Kg 46612.00 +0.47
Rs.- US $ 70.86 +0.45
Rs.- Euro 78.83 +0.06
FII (Rs cr )
04/11* 01/11*
FIIs +1807.16 +1989.84
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       41,424.00       3,280.17       42,838.00       3,081.05    1,63,776.00     14,052.07     199.12
Index Options  23,96,903.00  1,65,894.50  23,85,236.00  1,64,807.49    6,36,057.00     53,001.52  1,087.01
Stock Futures    2,49,860.00     13,611.85    2,60,561.00     13,882.87  15,06,513.00     89,762.15    (271.02)
Stock Options       88,236.00       4,923.25       87,465.00       4,896.92       56,519.00       3,331.66       26.33
Total  27,76,423.00  1,87,709.77  27,76,100.00  1,86,668.33  23,62,865.00  1,60,147.40  1,041.44
Corporate News
Leading truck and bus maker Ashok Leyland Ltd on Monday unveiled its mega three-pronged strategy to grow its business and stay competitive in the BS-VI era. The Hinduja flagship will use its own new technology for the BS-VI vehicles. It will also introduce a modular platform for all truck range and a common bus programme. (BL).
Infosys has said there is no prima facie evidence to corroborate any of the allegations made in the whistleblower group's complaint. (ET).
Mahindra & Mahindra Ltd (M&M) on Monday announced the inspection and replacement of a suspension component, on a limited batch of XUV300 vehicles manufactured till May 19, 2019. This is in keeping with the company’s customer-centric approach, M&M said in a release. (BL).
Contrary to claims made by the Tata Trusts that it had surrendered its registration voluntarily, the tax department has clarified that the move was a forced one after six trusts run by the Tatas were found flouting the provisions of the Income Tax rules. (ET).
Nearly a million people in India still need access to reliable and affordable power supplies, according to an estimate by Tata Power and the Rockefeller Foundation. (BS).
After a few initial glitches, Petronet LNG’s Kochi terminal seems to be on its course with meeting Kerala’s natural gas requirements. (ET).
Ajay Piramal said he plans to resign as Chairman of Shriram Capital Ltd., the non-bank finance company backed by South Africa’s Sanlam Group, as he works to sell his stake in Shriram’s parent group. (BL).
IRB Infrastructure Developers has said that it is confident of bagging projects in this fiscal even as it saw two such projects terminated a couple of days back. (BL).
Prakash Industries aid that after the execution of the Mining Lease and obtaining all statutory clearances, it has commenced the mining operations in the Sirkagutu Iron and Manganese ore mine of the company at Keonjhar (Orissa). (ET).
Cadila Healthcare said it has received a warning letter from the USFDA relating to its Moraiya formulation facility. The company has taken multiple steps after the inspection to address the observations received from USFDA during the inspection. The company will continue to take all necessary steps to ensure that the USFDA is fully satisfied with its remediation of the above facility. (BL).
Quarterly Earnings
Leading auto component company Sundram Fasteners has reported a 36 per cent fall in its net profit at Rs.71 crore for the quarter ended September 30, 2019 compared with Rs.111 crore in the year-ago period. The EBIDTA stood at Rs.145 crore as against Rs.199 crore. Sundram Fasteners’ revenue declined by 23 per cent at Rs.767 crore for the second quarter of this fiscal as against Rs.999 crore in the same period in the previous year. The domestic sales was lower at Rs.450 crore as against Rs.632 crore during the same period in the previous year, on the back of drop in industry volumes. (BL).
Steel wheels manufacturer, Wheels India is setting up a new cast aluminum wheel plant near Chennai with an investment of Rs 140 Crore that is expected to start operations next year. The company announced this while reporting their results on Monday. Net profit rose 26% to Rs 28.67 crore for quarter ended 30th September 2019 as compared to Rs. 22.67 crore registered in the corresponding period last year. Revenues for the quarter ended September stood at Rs 595.63 crore as against Rs 805.28 crore in the corresponding period last year. (BS).
HT Media on Monday reported a consolidated net loss of Rs 21.48 crore for the quarter ended September 30, 2019-20. The company had reported a loss of Rs 44.33 crore in the year-ago period. Total income however rose to Rs 580.02 crore as compared with Rs 570.97 crore in the same period of the previous fiscal. (BL).
Mahindra Holidays & Resorts India on Monday posted a consolidated net profit of Rs 24.42 crore for the September quarter. The company had reported a net loss of Rs 3.34 crore in the July-September period of 2018-19. Total income during the second quarter rose to Rs 573.83 crore as compared with Rs 532.88 crore in the year-ago period, Mahindra Holidays & Resorts India said in a regulatory filing. (ET).
Can Fin Homes on Monday reported 20 per cent rise in net profit to Rs 97.62 crore for the second quarter ended September 30. The company's had posted Rs 81.55 crore net profit in July-September quarter previous fiscal. Total income from operations rose to Rs 500.67 crore during the second quarter, from Rs 421.83 crore in the same period of 2018-19. (BL).
Mortgage lender HDFC on Monday reported a 60.57 per cent year-on-year jump in standalone profit at Rs 3,961.53 crore for the September quarter. The lender had reported Rs 2,467.08 crore profit in the same quarter last year. (BL).
PepsiCo India's bottling partner Varun Beverages on Monday posted 83.73 per cent increase in consolidated net profit at Rs 81.12 crore for the quarter ended September 30, 2019. The company had clocked a profit of Rs 44.15 crore in the year-ago period. Revenue from operations during the quarter stood at Rs 1,776.85 crore as against Rs 1,204.47 crore in July-September 2018, Varun Beverages said in a regulatory filing. The company follows January-December financial year. (BL).
Economy and Sector News
The Madras High Court has allowed credit transition of Education Cess, Secondary/Higher Education Cess and Krishi Kalyan Cess into the Goods & Services Tax (GST) regime. Since the High Court’s orders have precedent value, this particular order can bring relief to many companies, whose cases are pending in various judicial forums. Education Cess (EC), Secondary and Higher Education Cess (SHEC) and Krishi Kalyan Cess (KKC) were levied during the pre-GST regime. (BL).
India has decided not to join the Regional Comprehensive Economic Partnership (RCEP) pact saying it will not “compromise” on its core issues. But other RCEP members, including the ASEAN bloc, China, Japan, South Korea, Australia and New Zealand, are keeping the door open for New Delhi if it decides to join at a later date once its concerns are addressed. (ET).
Cardamom market was very strong on Monday with the average prices realising an upward trend of Rs 100 per kg in the auctions conducted at Spices Park at Puttady. The market, according to traders, has been witnessing the rising price trend in the last few days on account of low arrivals, better buyer participation and quality arrivals. This positive trend is likely to continue and traders are expecting more buyer participation especially from upcountry markets, as the lean period on account of Diwali in North India was over. (BL).
Prime Minister Narendra Modi and his Japanese counterpart Shinzo Abe on Monday reviewed the evolving security scenario in the Indo-Pacific and agreed to further bolster bilateral cooperation in third countries for peace, prosperity and development in the region. The two leaders held a meeting on the sidelines of the East Asia Summit here during which China’s fast expanding military and economic expansionism in the Indo-Pacific region figured prominently among several other key issues, officials said. Without giving specific details of the talks, the External Affairs Ministry said the two prime ministers reaffirmed their commitment towards a free, open and inclusive Indo-Pacific region based on a rules-based order. (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 ended the day on Monday in record territory, with stocks propelled higher as optimism about a near-term U.S.-China trade resolution and a third-quarter earnings season that has been better than feared buoyed sentiment on Wall Street. The Dow Jones Index closed at 27,462, up 114.75 points by 0.42%. The Standard & Poors 500 index closed at 3,078, up 11.36 points by 0.37%. The Nasdaq Composite Index closed at 8,433, up 46.80 points by 0.56%.

FTSE 100

UK markets extended their recent gains on Monday, with miners leading the charge amid growing optimism over a Sino-US trade deal. The FTSE 100 index closed at 7,370, up 67.27 points by 0.92%.

 
 
Global Indices
04/11/2019 Clsg Chg%
Dow Jones 27,462 +0.42
NASDAQ 8,433 +0.56
FTSE 100 7,370 +0.92
Bovespa 108,196 +0.91
05/11/2019 Latest
(5:02AM IST)
Chg%
Nikkei 22,850 -0.33
Hang Seng 27,547 +1.65

Nikkei

Asian markets started trading early on Tuesday on a negative note as investors will be watching the US markets very closely. Nikkei is currently trading at 22,850, down 76.27 points by 0.33%.

Precious Metals

Gold futures ended slightly lower on Monday, with U.S. benchmark stock indexes on track to notch record levels and dulling demand for haven gold.

Base Metals

The London Metal Exchange three-month aluminium price closed at $1,815 per tonne on Monday November 4, its highest price since September following 13-month-high daily trading volumes.

Crude Oil

Oil futures settled higher on Monday, with global benchmark Brent crude the highest in more than five weeks, as hope for a Sino-American trade resolution and Saudi Arabia’s plans to launch a public offering of Aramco helped to bolster sentiment in the energy complex.

 
 
 

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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 brokerage 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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