Morning Notes
6th Aug, 2019
 

Trading Range:

Nifty opened gap down at 10896 on Monday and made a high and low of 10896 and 10783 respectively before closing negative at 10863.

Review/Outlook:

For the day, support for Nifty exists at 10820 and 10780 levels whereas resistance for Nifty stands at 10950 and 11020 levels.

Review/Outlook:

Bank Nifty opened down at 27841, made a high of 27866, low of 27390, and closed negative at 27648. For the day, support for Bank Nifty exists at 27400 and 27200 levels whereas resistance for Bank Nifty stands at 27900 and 28100 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 36,699 -1.13
Nifty 10,863 -1.23
BSE 200 4,531 -1.17
BSE Midcap 13,376 -1.26
BSE Smallcap 12,285 -1.69
Dow Jones 25,718 -2.90
NASDAQ 7,726 -3.47
 

DERIVATIVES INDICATORS FOR AUG 06, 2019:

NIFTY 10862.60 (-134.75) (-1.23%)
NIFTY AUG FUTURE 10896.80 (34.20 Points Premium)
NIFTY PCR - OI 1.01(-0.17)
NIFTY OPEN INTEREST 2.10Cr. (+3.87%)
INDIA VIX 16.58 (+9.20%)
NIFTY ROLLOVER 5%

NIFTY OPTIONS ACTIVITY (29-AUG SERIES)

CALL 11000 CE +5.20 lac Shares
CALL 10900 CE +8.36 lac Shares
PUT 10900 PE -1.29 lac Shares
PUT 10800 PE +1.93 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 15,438 -1.26
Bankex 31,246 -2.06
PSU 6,594 -2.07
Healthcare 12,442 -0.91
IT 15,639 +0.69
 
Market Turn Over (`cr)
Index 05/08 02/08
BSE Cash 2,643 2,745
NSE Cash 33,029 37,984
NSE F&O 957,212 1,142,377
BSE Delivery % 44.39 35.42
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 21.78 78.22
BSE 200 22.89 76.62
BSE 500 20.96 78.84
Total BSE 27.23 67.77
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 54.65 -0.07
Gold Rs./ 10 Gms 37345.00 +2.96
Silver Rs./ Kg 42483.00 +2.71
Rs.- US $ 71.04 +1.97
Rs.- Euro 79.69 +2.97
FII (Rs cr )
05/08* 02/08*
FIIs -2889.51 -1166.87
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       70,661.00       4,832.33       82,635.00       5,987.88    2,54,214.00     19,390.27  (1,155.55)
Index Options  21,10,841.00  1,41,895.82  21,03,382.00  1,41,288.30    6,92,915.00     51,887.09      607.52
Stock Futures    2,53,576.00     14,167.66    2,35,708.00     12,945.70  15,22,136.00     88,796.63   1,221.96
Stock Options       99,367.00       5,746.03    1,00,486.00       5,837.85       72,494.00       3,985.01       (91.82)
Total  25,34,445.00  1,66,641.84  25,22,211.00  1,66,059.73  25,41,759.00  1,64,059.00      582.11
Corporate News
Berger Paints India is looking at acquisitions in Russia as it eyes profitability in operations there. Berger operates in Russia through a step-down subsidiary which has an impairment loss to the tune of over Rs.28 crore, recognised in Q4 of FY19. (BL).
Visaka Industries has said that ATUM, its integrated hybrid solar-roofing system for sustainable off grid, air-conditioned walkway, has been favoured by Air India SATS Airports Services Private Ltd, a gateway services and food solutions provider. (ET).
Natco Pharma Ltd has announced successful completion of inspection by USFDA of its formulations plant at Kothur in Telangana. The US Food and Drug Administration has sent the Establishment Inspection Report (EIR) for the inspection conducted at the facility during May 30–June 5, it said in a release. (BL).
At a time when the auto industry is going through a tough phase, the country’s largest two-wheeler manufacturer, Hero MotoCorp, in an attempt to boost sales, has started delivery of its scooters and motorcycle at the customers’ doorstep. This is being done at a nominal charge. The company has started an e-commerce portal — www.HGPmart.com — to offer this facility, and the service is currently available in three cities —Mumbai, Bengaluru and Noida. The company plans to expand this facility to 25 cities over the next few months in a phased manner, it said in a statement on Monday. (ET).
Britain’s Cairn Energy PLC, which gave India its biggest onshore oil discovery and gas find that opened the KG basin, is keen to reinvest in the country if the retrospective tax issue it is facing is resolved, its chief executive said. . (ET).
ITC Chairman Sanjiv Puri has disclosed that the construction of its Rs.800-crore food processing plant at Manoharabad in Medak district is almost complete and it will go on stream in two to three months. (BS).
Corporate Quarterly Earnings
Express distribution and supply chain solutions provider Gati Ltd’s consolidated net profit decreased to Rs.2.03 crore in the first quarter ended June 30, 2019, compared to Rs.5.61 crore in the corresponding quarter of previous year. Express distribution and supply chain solutions provider Gati Ltd’s consolidated net profit decreased to Rs.2.03 crore in the first quarter ended June 30, 2019, compared to Rs.5.61 crore in the corresponding quarter of previous year. (BL).
SRF Ltd has reported a 41.38 per cent higher consolidated net profit at Rs.189.22 crore for the first quarter of 2019-20. The group had reported a net profit of Rs.133.84 crore in the corresponding quarter of the previous fiscal. The company’s Board of Directors approved an interim dividend at the rate of 70 per cent, amounting to Rs.7 per share (of Rs.10 face value). The Board also approved the setting up of an integrated facility for development of Polytetrafluoroethylene (PTFE) at a cost of Rs.424 crore. (ET).
Torrent Power on Monday posted about 22 per cent rise in consolidated net profit at Rs.276.59 crore for June quarter ended this year compared to Rs.227.32 crore shown during the corresponding quarter last year, mainly on the back of higher revenues. The company’s total income in the quarter rose to Rs.3,790.61 crore from Rs.3,580.42 crore a year ago. The shareholders in the annual general meeting held on Monday approved a proposal to raise up to Rs.1,500 crore through issuance of non-convertible debentures on private placement basis. (ET).
Suzuki Motor Corp on Monday reported a 46.2 per cent fall in first-quarter operating profit, hurt by lower output at home as it improves its inspection systems, and falling demand in India, its biggest market. Japan's fourth-largest automaker posted an operating profit of 62.7 billion yen ($592 million) for the April-June quarter, down from 116.5 billion yen a year earlier. (BL).
Stainless steel maker Jindal Stainless posted a 57% drop in its consolidated net profit at Rs 48 crore for the April-June quarter on the back of lower sales and and the incurrence of an exceptional loss. Consolidated net sales fell by 3% at Rs 3,263 crore. The company also incurred an exceptional loss of Rs 24 crore on account of forex movement. (ET).
Indian Hotels Company (IHCL) reported a profit after tax of Rs 4.98 crore in its consolidated financial results for the quarter ended June 30 this year, compared to a profit of Rs 9.10 crore in the corresponding period of the previous fiscal. The company said the financial results reported were in line with the new accounting lease standards (Ind AS 116) effective April 1 2019. The company said the financial results reported were in line with the new accounting lease standards (Ind AS 116) effective April 1 2019. (ET).
Public sector Indian Bank on Monday clocked a 74.55 per cent jump in its net profits for the April-June quarter, at Rs 365.37 crore. The city-based bank had recorded net profits at Rs 209.31 crore during the corresponding quarter of the previous year. For the year ending March 31, 2019 net profits of the company were at Rs 321.95 crore. Total income for the April-June quarter grew to Rs 5,832.11 crore from Rs 5,131.96 crore registered during the same period of last year. (ET).
Lakshmi Automatic Loom Works Monday clocked a standalone net profit at Rs 80.32 lakh for the April-June 2019 quarter. The Coimbatore-based company had recorded profits at Rs 7.02 lakh during the same period last year. For the year ending March 31, 2019 net profits were at Rs 1.25 crore. Total income on standalone basis for the April-June 2019 quarter grew to Rs 3.14 crore from Rs 1.72 crore registered the same period last year. (BL).
Economy and Sector News
The Ministry of Petroleum and Natural Gas has written to State governments seeking their support to achieve the eight crore free cooking gas connection distribution target under the Pradhan Mantri Ujjwala Yojana (PMUY). In more news, The country’s services sector activity in July returned to growth territory driven by new business orders that rose at fastest pace since October 2016, following which job creation picked up, a monthly survey showed on Monday. The IHS Markit India Services Business Activity Index rose to 53.8 in July from 49.6 in June, pointed to the quickest increase in output in one year. (BL).
The Ministry of Coal has started the process of auctioning 27 coal mines and allocating 15 mines to developers. This process is being re-initiated after previous attempts elicited poor response from bidders in view of market conditions. The allocation of blocks will be restricted to Central and State public sector undertakings. In more news, The Delhi airport will spend Rs.9,800 crore for capex till June 2022 including building the fourth runway, expanding parking stands for aircraft to 82 from the current 55 and increasing the airport’s handling capacity to 140 million passengers annually. (ET).
Alstom India, a subsidiary of French engineering major Alstom, on Monday rolled out the 100th metro train set manufactured locally from Sri City special economic zone near here. In more news, The coal and uranium mining operations of the controversial Indian-origin Gupta family in South Africa are to be sold off after its owners left the country amid increasing allegations of their irregular dealings with state departments. (BL).
Shell will be installing solar panels to annually generate 683 Mwh electricity at the company’s Taloja lubricant plant in Maharashtra. Shell will be working with Cleantech Solar for the installation of approximately 1,700 panels, which is expected to generate 683 MWh of electricity annually, and can result in the avoidance of 500 tonnes of annual GHG emissions. In more news, Wholesale retailer Metro Cash & Carry on Monday announced a partnership with fintech start-up ePayLater to help kirana shops digitise their business using smartphones. As part of its next phase of kirana digitisation programme, Metro in association with ePayLater has co-created a mobile application ‘Digital Shop’ to digitise kirana shops’ business operation instantly without any additional investment, a joint statement said. (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 suffered their biggest one-day decline of 2019 on Monday as China allowed its currency to fall to a more-than-10-year low versus the dollar after President Donald Trump rattled markets by announcing additional tariffs on Chinese goods late last week. The Dow Jones Index closed at 25,718, down 767.27 points by 2.90%. The Standard & Poors 500 index closed at 2,845, down 87.31 points by 2.98%. The Nasdaq Composite Index closed at 7,726, down 278.03 points by 3.47%.

FTSE 100

UK markets finished sharply lower on Monday amid escalating Sino-US trade tensions and speculation that the Prime Minister might be plotting calling snap elections after his majority in the House of Commons was cut to just one seat following a by-election in Brecon and Radnorshire. The FTSE 100 index closed at 7,224, down 183.21 points by 2.47%.

 
 
Global Indices
05/08/2019 Clsg Chg%
Dow Jones 25,718 -2.90
NASDAQ 7,726 -3.47
FTSE 100 7,224 -2.47
Bovespa 100,098 -2.51
06/08/2019 Latest
(6:01AM IST)
Chg%
Nikkei 20,142 -2.79
Hang Seng 26,151 -2.85

Nikkei

Asian shares started trading negative on Tuesday as investors will be watching the US and other global markets closely. Nikkei is currently trading at 20,142, down 578.16 points by 2.79%.

Precious Metals

Gold’s haven appeal boosted the metal to a more than six-year high on Monday, as an escalating U.S.-China trade fight sparked a selloff in assets perceived as risky.

Base Metals

The three-month copper price on the London Metal Exchange continued its downtrend over Monday August 5, closing below the nearby $5,700-per-tonne support level to reach its lowest settlement since June 2017, while nickel futures near $15,000 per tonne.

Crude Oil

Oil futures resumed their drop Monday, tracking losses ripping through broader financial markets as concern for a prolonged trade war and its risk to global crude demand was rekindled.

 
 
 

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Disclosures
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 brokera3ge 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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