Morning Notes
06th Feb, 2020
 

Trading Range:

Nifty opened gap up at 12006 on Wednesday and made a high and low of 12098 and 11953 respectively before closing positive at 12089.

Review/Outlook:

For the day, support for Nifty exists at 11950 and 11880 levels whereas resistance for Nifty stands at 12120 and 12200 levels.

Review/Outlook:

Bank Nifty opened gap up at 30762, made a high of 31066, low of 30631, and closed positive at 31002. For the day, support for Bank Nifty exists at 30700 and 30500 levels whereas resistance for Bank Nifty stands at 31400 and 31600 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 41,143 +0.87
Nifty 12,089 +0.91
BSE 200 5,093 +1.02
BSE Midcap 15,708 +1.35
BSE Smallcap 14,654 +0.74
Dow Jones 29,291 +1.68
NASDAQ 9,509 +0.43
 

DERIVATIVES INDICATORS FOR FEB 06, 2020:

NIFTY 12089.15 (+109.50) (+0.91%)
NIFTY FEB FUTURE 12086.30 (-2.85 Points Discount)
NIFTY PCR - OI 1.39 (+0.15)
NIFTY OPEN INTEREST 1.47 Cr. (+0.56%)
INDIA VIX 14.17 (-1.44%)
NIFTY ROLLOVER 6%

NIFTY OPTIONS ACTIVITY (27-FEB SERIES)

CALL 12200 CE -1.64 lac Shares
CALL 12300 CE -1.06 lac Shares
PUT 11900 PE +3.90 lac Shares
PUT 12000 PE +4.14 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 18,250 +0.30
Bankex 35,481 +0.96
PSU 6,560 +1.28
Healthcare 13,947 +0.42
IT 16,149 +0.56
 
Market Turn Over (`cr)
Index 05/02 04/02
BSE Cash 3,443 3,138
NSE Cash 44,669 43,257
NSE F&O 1,960,374 1,647,159
BSE Delivery % 48.16 59.48
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 72.28 27.72
BSE 200 69.15 30.35
BSE 500 64.67 34.33
Total BSE 49.62 42.97
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 51.17 +3.14
Gold Rs./ 10 Gms 40200.00 +0.56
Silver Rs./ Kg 45735.00 +0.44
Rs.- US $ 71.21 +0.10
Rs.- Euro 78.33 -0.29
FII (Rs cr )
05/02* 04/02*
FIIs +922.96 +1850.57
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         46,103.00       3,516.64         51,587.00        3,836.95       1,74,782.00      14,921.20    (320.31)
Index Options     59,04,282.00   4,16,367.39     58,96,342.00   4,15,511.13       7,36,330.00      61,668.34     856.26
Stock Futures       2,50,818.00      17,032.45       2,45,542.00      16,550.66     15,74,630.00   1,02,501.94     481.79
Stock Options         84,875.00       6,121.82         83,213.00        6,001.73         55,532.00        3,690.42     120.09
Total     62,86,078.00   4,43,038.30     62,76,684.00   4,41,900.47     25,41,274.00   1,82,781.90  1,137.83
Corporate News
L&T’s Metallurgical & Material Handling (MMH) business and Mitsubishi Corporation have announced the commissioning of a hot strip mill for Steel Authority of India (SAIL) in Rourkela. (BL).
Tata Steel has piloted a new process for production of steel, one it says “results in enormous efficiency gains” and reduces energy use and carbon dioxide emissions by a fifth of that in the conventional blast furnace route. (ET).
Adani Group’s city-gas distribution (CGD) arm, Adani Gas Limited (AGL), is aggressively expanding its network coverage, as the company looks to operationalise all the 38 Geographical Areas (GAs) by the end of next fiscal. (BS).
BTL EPC Ltd, a division of the Kolkata-based Shrachi Group, has secured a₹365-crore order from BHEL for setting up a coal, limestone and gypsum handling plant at Yadradri TPS of Telangana State Power Generation Corporation Limited in the Nalgonda district. (ET).
Indian Oil Corporation (IOC) and Rosneft on Wednesday entered into a term contract for the supply of two million tonnes per annum of Urals grade crude oil to India. (BL).
Quarterly Earnings
Adani Enterprises reported a net profit of Rs 426 crores in the third quarter of 2019-20, as against Rs 92 crores in the same quarter a year ago. Reacting to the result, shares of the company made a new 52-week high at Rs 239.05 on the Bombay Stock Exchange on Wednesday. The company’s consolidated total income increased by 5 per cent to Rs 11,075 crore in the December quarter. (BL).
Apollo Tyres on Wednesday reported a 12.09 per cent decline in consolidated net profit to Rs 173.85 crore for the quarter ended on December 31, 2019, mainly due to sluggish demand from original equipment manufacturers. The company had posted a net profit of Rs 197.95 crore for the corresponding period of 2018-19, Apollo Tyres said in a BSE filing. Consolidated net sales declined to Rs 4,347.16 crore for the quarter under consideration as against Rs 4,655.36 crore for the same period year ago. (ET).
Consumer healthcare firm Zydus Wellness on Wednesday reported a consolidated net profit of Rs 4.24 crore for the quarter ended December 31, 2019. The company had reported a net profit of Rs 39.69 crore for the corresponding period of the previous fiscal, Zydus Wellness said in a regulatory filing. Consolidated revenue from operations of the company stood at Rs 332.67 crore for the quarter under consideration. It was Rs 145.41 crore for the same period a year ago. (BL).
Auto components major Bosch Ltd on Wednesday reported a 43.2 per cent decline in consolidated net profit at Rs 190.33 crore for the quarter ended December. The company had posted a net profit of Rs 335.37 crore in the year-ago period, Bosch said in a filing to the BSE. Total net profit after tax including discontinuing operations stood at Rs 190 crore, the company said in a statement. Total income during October-December quarter declined to Rs 2,676.58 crore from Rs 3,186.43 crore in the year-ago period . (ET).
NIIT, a global leader in skills and talent development, on Wednesday reported 40 per cent jump in consolidated net profit to Rs 27.1 crore for December quarter 2019-20 on account of increase in demand from corporate sector. The company had garnered a profit of Rs 19.4 crore in the same period a year ago. Overseas market led by the US and Europe contributed 77 per cent of the total corporate learning group business, Thadani said. NIIT recorded 10 per cent growth in its consolidated revenue to Rs 247.6 crore during the quarter under review from Rs 225.5 crore in the year-ago period. CLG recorded net revenue of Rs 189.5 crore. (BL).
Drug major Cipla on Wednesday reported a consolidated profit of Rs 351.03 crore for the December quarter, up 5.7 per cent year-on-year (YoY) compared with a profit of Rs 332.20 crore in the same period last year. Net revenue came in at Rs 4,371 crore, up 9 per cent from Rs 4,007.54 crore in the year-ago period. (BL).
GE Power India on Wednesday said its consolidated net profit more than doubled to Rs 100.8 crore during the quarter ended December 31, 2019, helped by increased income. The company had clocked Rs 40.4 crore profit in the same quarter a year ago, GE Power India said in a BSE filing. Total income during October-December 2019 was at Rs 784.6 crore as against Rs 577.3 crore in the same period of the previous fiscal. (ET).
Economy and Sector News
The penetration of electric vehicles in the country is likely to remain low at 3-5 per cent till 2025 due to higher prices of EVs compared to its internal combustion engine (ICE) counterparts, as well as the inadequate public charging infrastructure, said credit rating agency ICRA. In more news, hike in import duty announced in the Budget affected 111 items that accounted for inflow of goods worth $8.87 billion last year, as per a government calculation. (BL).
The services sector started 2020 on a strong footing with the IHS Markit India Services Business Activity Index coming in at 55.5 in January 2020, up from 53.3 in December 2019. This signalled the strongest upturn in output for seven years. The Composite PMI Output Index increased from 53.7 in December to a seven-year high of 56.3 in January. (ET).
The Union Cabinet on Wednesday approved a proposal to set up a major port at Vadhavan near Dahanu in Maharashtra with a total cost of Rs.65,545 crore, including about Rs.14,500 crore of GST. This is part of the government’s plan to develop infrastructure projects with a cost of Rs.100-lakh crore over the next five years. The Cabinet also approved bringing amendments in the Banking Regulation Act to put certain co-operative banks under the regulatory ambit of the Reserve Bank of India. (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).
* 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 posted a record closing high on Wednesday as U.S. stocks rallied for a third straight day on encouraging U.S. economic data and waning fears of the financial fallout from a virus out of China. The Dow Jones Index closed at 29,291, up 483.22 points by 1.68%. The Standard & Poors 500 index closed at 3,335, up 37.10 points by 1.13%. The Nasdaq Composite Index closed at 9,509, up 40.71 points by 0.43%.

FTSE 100

UK markets finished higher on Wednesday as traders weighed up reports of a breakthrough in developing a vaccine for the new coronavirus against the cold truth that, at least for the moment, there was no known treatment for the potentially fatal illness. The FTSE 100 index closed at 7,482, up 42.66 points by 0.57%.

 
 
Global Indices
05/02/2019 Clsg Chg%
Dow Jones 29,291 +1.68
NASDAQ 9,509 +0.43
FTSE 100 7,482 +0.57
Bovespa 116,028 +0.41
06/02/2020 Latest
(4:43AM IST)
Chg%
Nikkei 23,320 +1.02
Hang Seng 26,787 +0.42

Nikkei

Asian share markets started trading early in the morning on Thursday on a positive note as the investors will be closely watching the US markets. Nikkei is currently trading at 23,320, up 234.97 points by 1.02%.

Precious Metals

Gold futures settled higher on Wednesday, recovering some of the 1.7% loss a day earlier that sent prices to their lowest finish since mid-January.

Base Metals

The three-month copper price on the London Metal Exchange was higher at the close of trading on Wednesday January 5, breaching nearby resistance at $5,700 per tonne against strong turnover.

Crude Oil

Oil futures finished higher on Wednesday after U.S. government data revealed a drop in both U.S. gasoline and distillate stockpiles, rallying prices for the petroleum products, even though domestic supplies of crude posted a second straight weekly climb.

 
 
 

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