Morning Notes
06th Nov, 2019
 

Trading Range:

Nifty opened gap up at 11975 on Tuesday and made a high and low of 11979 and 11862 respectively before closing negative at 11917.

Review/Outlook:

For the day, support for Nifty exists at 11860 and 11800 levels whereas resistance for Nifty stands at 11980 and 12020 levels.

Review/Outlook:

Bank Nifty opened gap up at 30403, made a high of 30453, low of 30091, and closed negative at 30220. For the day, support for Bank Nifty exists at 30000 and 29700 levels whereas resistance for Bank Nifty stands at 30500 and 30700 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 40,248 -0.13
Nifty 11,917 -0.20
BSE 200 4,987 -0.32
BSE Midcap 14,724 -1.13
BSE Smallcap 13,522 -0.80
Dow Jones 27,493 +0.11
NASDAQ 8,435 +0.02
 

DERIVATIVES INDICATORS FOR NOV 06, 2019:

NIFTY 11917.20 (-24.10) (-0.20%)
NIFTY NOV FUTURE 11956.00 (38.80 Points Premium)
NIFTY PCR - OI 1.34(-0.10)
NIFTY OPEN INTEREST 1.57Cr. (+2.83%)
INDIA VIX 15.91 (-0.05%)
NIFTY ROLLOVER 4%

NIFTY OPTIONS ACTIVITY (07-NOV SERIES)

CALL 12000 CE +5.89 lac Shares
CALL 12100 CE +5.71 lac Shares
PUT 11900 PE +2.62 lac Shares
PUT 11700 PE +6.99 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 18,495 -0.35
Bankex 34,079 -0.41
PSU 7,166 -0.50
Healthcare 13,187 -1.00
IT 15,337 -0.60
 
Market Turn Over (`cr)
Index 05/11 04/11
BSE Cash 2,819 2,946
NSE Cash 38,537 40,294
NSE F&O 926,573 817,068
BSE Delivery % 43.84 56.46
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 38.61 61.39
BSE 200 29.85 70.15
BSE 500 27.15 72.46
Total BSE 37.24 56.66
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 57.02 -0.37
Gold Rs./ 10 Gms 37881.00 -1.54
Silver Rs./ Kg 45500.00 -2.39
Rs.- US $ 70.75 -0.16
Rs.- Euro 78.35 -0.61
FII (Rs cr )
05/11* 04/11*
FIIs +81.10 +1807.16
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       29,668.00       2,212.04       31,964.00       2,325.67    1,69,464.00     14,475.32  (113.63)
Index Options  27,01,732.00  1,86,463.55  27,06,529.00  1,86,855.17    6,65,676.00     55,115.61  (391.62)
Stock Futures    2,24,437.00     12,666.81    2,26,842.00     12,689.54  15,05,056.00     89,199.70    (22.73)
Stock Options       75,461.00       4,510.76       75,387.00       4,492.48       61,353.00       3,597.36     18.28
Total  30,31,298.00  2,05,853.16  30,40,722.00  2,06,362.86  24,01,549.00  1,62,387.99  (509.70)
Corporate News
Infosys has shed 1.5-2 per cent of its total workforce in each of the last two quarters, which it terms as involuntary attrition. This works out to anywhere between 2,000 and 3,000 employees every quarter; basically, this is involuntary attrition and is based on the performance of each employee. (BL).
Consumer health and hygiene products maker Reckitt Benckiser (RB) on Tuesday said it is foraying in the male grooming segment in India through its brand Veet. The FMCG major is among a host of companies that are eyeing a significant share of the fast growing male-grooming segment in India. (ET).
Making apparel production more sustainable, global apparel retailer Gap Inc and textile major Arvind Limited on Tuesday launched new water treatment facility that will eliminate the use of freshwater at Arvind’s denim manufacturing facility in Ahmedabad. (BL).
Late last week, Johnson and Johnson (J&J) said it had conducted over 60 new tests on the same bottle of baby powder previously tested by the United States Food and Drug Administration (USFDA), but found no asbestos. (ET).
MSTC Ltd has signed an agreement with Allahabad Bank for the development of a dedicated e-Auction platform directly linked with the Indian Banking Association's portal (https://ibapi.net) for sale of non-performing assets (NPAs) through the SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest) Act. (BS).
Vedanta Resources’ much-delayed project to set up a fertiliser plant in Rajasthan with an investment of Rs 1,350 crore seems to have a hit a bump, and the company is looking for alternate locations in the state. (ET).
Dewan Housing Finance Corporation (DHFL) has urged its two top lenders to help lift a moratorium on repayments so that the stressed mortgage lender could begin repaying its depositors. In letters to the State Bank of India (SBI) and Union Bank of India (UBI), DHFL has sought the lenders’ help to resume repayments to depositors, a process now on hold after a Bombay High Court order. The home financier has cited its adequate cash balance to repay its depositors. (BL).
Adani Properties wants the deadline for closing its proposed acquisition of Bidvest’s stake in GVK-controlled Mumbai International Airport Ltd. to be extended by three months to February 2020. (BL).
Sun Pharma will be in foucs as the co and AstraZeneca enter into License Agreement for Novel Oncology products in China. The agreement will help to bring costeffective and quality drugs to patients in China. The initial tenure of the agreement is 10 years from the first commercial sale of the said products in China. (BQ).
Quarterly Earnings
JSPL posted a sharp fall in standalone profit to Rs 15 crore in the second quarter ended September 30, down 96% from Rs 383 crore it had reported in the same period last year. JSPL posted a sharp fall in standalone profit to Rs 15 crore in the second quarter ended September 30, down 96% from Rs 383 crore it had reported in the same period last year. (BL).
State-run REC's consolidated net profit dropped about 24 per cent to Rs 1,322.47 crore in the quarter ended on September 30, 2019, compared to that of Rs 1,732.75 crore in the year-ago quarter, according to a BSE filing. Total income of the company rose to Rs 7,483.75 crore in the second quarter from Rs 6,246.05 crore in the same quarter of last year. (BS).
Drug firm Divi's Laboratories on Tuesday reported an 11.62 per cent dip in its consolidated net profit at Rs 356.78 crore for the second quarter ended September 30. The company had posted a net profit of Rs 403.72 crore in the July-September period of 2018-19. Revenue from operations in the September 2019 quarter, however, rose to Rs 1,445.57 crore as compared with Rs 1,323.93 in the year-ago period, Divi's Laboratories said in a regulatory filing. (BL).
Torrent Power on Tuesday posted about 83 per cent jump in its consolidated net profit at Rs 755.61 crore in the quarter ended September 2019. Its consolidated net profit was Rs 413.52 crore in the same quarter a year ago, a BSE filing said. Total income rose to Rs 3,891.29 crore in the quarter under review from Rs 3,488.66 crore in the corresponding three months a year ago. (ET).
IT company HCL Infosystems on Tuesday posted a wider consolidated loss of Rs 39.92 crore for the September 2019 quarter. The company had posted a consolidated loss of Rs 33 crore in the July-September 2018 quarter, a regulatory filing said. Its revenue from operations of HCL Infosystems also declined by over 40 per cent to Rs 581.77 crore during the quarter of 2018/19. (BL).
Titan Company on Tuesday posted a 1.83 per cent year-on-year rise in standalone net profit at Rs 320.16 crore for the September quarter. The watches business recorded an income of Rs 719 crore against Rs 676 crore in the previous year, registering a growth of 6.4 per cent. The Eyewear business grew 28.5 per cent YoY in the quarter, recording an income of Rs 154 crore as against Rs 120 crore last year. (BL).
Berger Paints on Tuesday reported a 67.15 per cent jump in consolidated net profit to Rs 194.66 crore for the second quarter ended September 30, 2019. The company had posted a consolidated net profit of Rs 116.46 crore in the same period last fiscal. Consolidated revenue from operations stood at Rs 1,598.58 crore as against Rs 1,490.06 crore in the same quarter of last fiscal, it said. In the April-September period, the company said its net profit was at Rs 371.07 crore as compared to Rs 250.34 crore in the corresponding period a year ago. (BL).
Procter & Gamble Hygiene and Health Care on Tuesday reported 5 per cent decline in profit at Rs 136.84 crore for the first quarter ended September 30. The company, which follows July-June financial year, had posted a profit of Rs 144.11 crore in the year-ago period, it said in a regulatory filing. Revenue from operations during the quarter under review stood at Rs 852.14 crore as compared to Rs 791.8 crore in the year-ago period, a growth of 7.62 per cent, it added. (BS).
Apollo Tyres on Tuesday reported 43.15 per cent decline in its consolidated net profit at Rs 83 crore for the second quarter ended September 30, hit by weak performance in the domestic market. The company had posted a net profit of Rs 146 crore for the July-September period of 2018-19. Net sales declined to Rs 3,926 crore during the second quarter as against Rs 4,192 crore in the year-ago period, Apollo Tyres said in a statement. (ET).
IT firm Tech Mahindra on Tuesday posted a 5.60 per cent year-on-year rise in consolidated profit at Rs 1,123.90 crore for the quarter ended September 30. The company had posted a profit of Rs 1,064.30 crore in the corresponding quarter last year. Consolidated revenue from operations increased 4.81 per cent on a yearly basis and 5.09 per cent sequentially to Rs 9,069.90 crore. (BL).
Homegrown FMCG major Dabur India on Tuesday reported 6.91 per cent increase in consolidated net profit at Rs 403.64 crore for the second quarter ended September 30. The company had posted a consolidated net profit of Rs 377.55 crore in the same quarter last fiscal, Dabur India said in a regulatory filing. The net profit was impacted by one-time impairment in value of investments to the tune of Rs 40 crore, the firm said. Revenue from operations stood at Rs 2,211.97 crore as against Rs 2,124.97 crore in the year-ago period, a growth of 4.09 per cent, it added. (BL).
Punjab National Bank (PNB) on Tuesday reported a net profit of Rs 507.05 crore for the September quarter.The state-run lender had reported Rs 4,532.35 crore loss in the corresponding quarter last year.Net interest income (NII) for the quarter rose 7.2 per cent to Rs 4,262 crore from Rs 3,974 crore in the corresponding quarter last year. (BS).
Realty developer Godrej Properties has reported a 50 per cent year-on-year (YoY) rise in consolidated net profit at Rs 31 crore for the quarter ended September 2019. Total income for the quarter declined 22 per cent from a year ago to Rs 370 crore. During the second quarter, the company witnessed a total booking value of Rs 1,446 crore and total booking volume of 2.26 million sq ft compared with total booking value of Rs 807 crore and total booking volume of 1.07 million sq ft a year ago. (ET).
Indian Overseas Bank reported widening of its net loss to Rs 2,253.64 crore for the second quarter ended September 30. The bank had registered a net loss of Rs 487.26 crore in the corresponding quarter of the previous financial year. In the first quarter of the current financial year, it had posted a net loss of Rs 342 crore. Total income during the second quarter of 2019-20 also fell to Rs 5,024 crore from Rs 5,348.35 crore in the corresponding period of 2018-19. (BL).
Riding on the back of higher realisation from sale of premium and blended cement and cost rationalisation, Birla Corporation Ltd posted a 450 per cent rise in net profit to ₹88 crore for the quarter ended September 30, 2019, as compared with ₹16 crore same period last year. Revenues grew by around 11 per cent to ₹1,647 crore from ₹1,485 crore. The average realisation per tonne increased by over 6 per cent to ₹4,815 crore (₹4,537 crore). (BL).
NCC Limited has posted a lower profit of Rs 80.04 crore for the second quarter ended September 30, 2019 as against a profit of Rs 125.65 crore for the corresponding quarter on a standalone basis. The Hyderabad based construction major registered a steep fall in total income at Rs 1,802.32 crore (including other income) for the second quarter as against Rs 3,137.88 crore in the corresponding quarter of the previous year. The EPS for second quarter was Rs 1.34 as against Rs 2.09 in the corresponding quarter of the previous year. (BL).
Economy and Sector News
Services activities continue to decline for the second successive month as Purchasing Managers' Index (PMI) records 49.2 in October. This is slightly better than the 48.7 in September, but still there is contraction. (BL).
Giving further benefits to farmers and sugar industry, the Centre has declared that no separate environmental clearance is required to produce additional ethanol from B-heavy molasses as it does not contribute to the pollution load. (ET).
Total sugar production in the country in the current sugar season would be around 260 lakh tonnes, nearly 20 per cent lower than the 2019-20 season’s 331.61 lakh tonnes, Indian Sugar Mills Association (ISMA) said a statement on Tuesday. The total sugarcane production would be sufficient to produce 268.5 lakh tonnes of sugar, but 8.5 lakh tonnes less sugar would be produced as that much B heavy molasses and sugarcane juice would be diverted to produce ethanol for blending in gasoline. (BL).
Aimed at avoiding middlemen and connecting primary producers to a wide range of buyers, the Central Marine Fisheries Research Institute (CMFRI) and Krishi Vigyan Kendra (KVK) will conduct a buyer-seller meet for food and agriculture products from November 14 to 16. Farmers, farmproducer companies, self-help groups and agri start-ups from Kerala, Tamil Nadu and Karnataka will bring their products at the meet, which is supported by the Nabard. (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 hit new records for a second straight day on Tuesday, as hopes over a pause for the trade war boosted investor sentiment. The Dow Jones Index closed at 27,493, up 30.52 points by 0.11%. The Standard & Poors 500 index closed at 3,075, down 3.65 points by 0.12%. The Nasdaq Composite Index closed at 8,435, up 1.48 points by 0.02%.

FTSE 100

UK markets edged higher on Tuesday as continued hopes of a Sino-US trade deal boosted the mining sector, but gains were unspectacular as investors mulled the latest reading on the services sector. The FTSE 100 index closed at 7,388, up 18.39 points by 0.25%.

 
 
Global Indices
05/11/2019 Clsg Chg%
Dow Jones 27,493 +0.11
NASDAQ 8,435 +0.02
FTSE 100 7,388 +0.25
Bovespa 108,719 -0.06
06/11/2019 Latest
(7:22AM IST)
Chg%
Nikkei 23,264 +0.06
Hang Seng 27,582 -0.36

Nikkei

Stocks in Asia traded mixed on Wednesday as investors weighed signs of improvement in U.S. economic data against conflicting news flow on Sino-American trade discussions. Nikkei is currently trading at 23,264, up 12.87 points by 0.06%.

Precious Metals

Gold rose 0.2% to $1,486 an ounce on Wednesday.

Base Metals

The three-month copper price traded on the London Metal Exchange almost closed the gap on its psychological $6,000 per tonne level, with growing supply concerns bolstering consumption and precipitating a significantly higher turnover on Tuesday November 5.

Crude Oil

Oil prices dropped on Wednesday after industry data showed a larger-than-expected build-up in U.S. crude stockpiles, but expectations for an easing of trade tensions between the United State and China capped losses.

 
 
 

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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 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.

Disclaimer:
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