Morning Notes
5th Jul, 2019
 

Trading Range:

Nifty opened gap up at 11929 on Thursday and made a high and low of 11969 and 11924 respectively before closing positive at 11947.

Review/Outlook:

For the day, support for Nifty exists at 11890 and 11820 levels whereas resistance for Nifty stands at 12010 and 12070 levels.

Review/Outlook:

Bank Nifty opened gap up at 31471, made a high of 31608, low of 31428, and closed flat at 31472. For the day, support for Bank Nifty exists at 31300 and 31100 levels whereas resistance for Bank Nifty stands at 31700 and 31900 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 39,908 +0.17
Nifty 11,947 +0.25
BSE 200 4,989 +0.19
BSE Midcap 14,933 -0.19
BSE Smallcap 14,337 +0.12
Dow Jones - -
NASDAQ - -
 

DERIVATIVES INDICATORS FOR JUL 05, 2019:

NIFTY 11946.75 (+30.00) (+0.25%)
NIFTY JUL FUTURE 11979.65  (32.90 Points Premium)
NIFTY PCR - OI 1.49(+0.01)
NIFTY OPEN INTEREST 1.93Cr. (+0.37%)
INDIA VIX 13.53 (-1.20%)
NIFTY ROLLOVER 8%

NIFTY OPTIONS ACTIVITY (25-JUL SERIES)

CALL 12100 CE +0.84 lac Shares
CALL 12000 CE +1.27 lac Shares
PUT 11900 PE +3.70 lac Shares
PUT 11800 PE +1.95 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 18,207 +0.37
Bankex 35,291 +0.29
PSU 7,894 +0.35
Healthcare 12,888 -0.37
IT 15,664 +0.08
 
Market Turn Over (`cr)
Index 04/07 03/07
BSE Cash 2,085 1,771
NSE Cash 29,996 27,872
NSE F&O 1,971,511 980,052
BSE Delivery % 69.27 40.68
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 59.41 39.60
BSE 200 57.71 41.29
BSE 500 56.40 42.20
Total BSE 47.58 45.82
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 56.74 -1.05
Gold Rs./ 10 Gms 34217.00 -0.08
Silver Rs./ Kg 37777.00 -0.47
Rs.- US $ 68.62 -0.28
Rs.- Euro 77.41 -0.27
FII (Rs cr )
04/07* 03/07*
FIIs -1281.19 -1553.11
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       27,534.00       2,202.98       29,260.00       2,207.15    2,03,517.00     17,051.26       (4.17)
Index Options  36,04,929.00  2,46,852.09  35,95,041.00  2,46,087.65    4,12,327.00     35,390.07     764.44
Stock Futures    1,44,699.00       9,202.03    1,39,955.00       8,889.12  12,97,713.00     84,723.01     312.92
Stock Options       57,519.00       3,651.89       57,649.00       3,667.23       44,343.00       2,773.30      (15.34)
Total  38,34,681.00  2,61,909.00  38,21,905.00  2,60,851.14  19,57,900.00  1,39,937.64  1,057.85
Corporate News
The National Company Law Appellate Tribunal (NCLAT) has approved the Rs.42,000-crore bid placed by ArcelorMittal to take over the insolvent Essar Steel. But the lenders will have to take a larger haircut as the tribunal has allowed a bigger share of the proceeds to operational creditors than what was envisaged by the Committee of Creditors (CoC). (BL).
Sanitaryware and lighting solutions company, Jaquar Group has expanded its Bhiwadi plant for lighting in Rajasthan with an investment of Rs.150-crore. The company has over 60 per cent share of the market in sanitaryware products and expects to reach the $1 billion turnover by 2022. During 2018-19, its turnover was Rs.3,588 crore. (ET).
Pune-based RSB Transmissions has begun construction of a propeller shaft manufacturing facility at Sri City in Andhra Pradesh. The plant will be built in the Domestic Tariff Zone (DTZ) at an investment of around Rs.180 crore and is likely to be commissioned by January 2020. The project will generate employment for about 200 people. It will manufacture propeller shafts for use in automobile industry. (BL).
Tata Motors has decided to implement periodic production cuts at its passenger-car plants and focus on retail sales to prop up dealerships amid an industrywide slowdown in passenger vehicle sales. (ET).
The Air France-KLM combine is open to other commercial partnerships in India after Jet Airways’ grounding, senior executives of the megacarrier said on Wednesday. (ET).
The Madras High Court Thursday ordered that the the status quo granted by a single-judge bench in connection with IT major Cognizant Technology Solutions India's Rs 2,912-crore dividend distribution tax dispute with the Income Tax department will continue. (BL).
Economy and Sector News
The gross tax to GDP ratio declined to 10.9 per cent in 2018-19 as indirect tax revenues fell short of budget estimates by about 16 per cent, due to shortfall in Goods and Services Tax (GST) mop up, the Economic Survey said. In more news, The Ministry of Power has issued directions to the National Load Dispatch Centre (NLDC) and Regional Load Dispatch Centres (RLDC) to schedule and dispatch power from generation companies to distribution utilities (discoms) only after implementation of payment security mechanism. This should be in the form of letter of credit (LC) by the discoms to the generation companies for the scheduled quantum of power, with effect from August 1, 2019. This is following the continued delays in making payments by the discoms to generation companies, leading to liquidity constraints for the power generation companies. While the power purchase agreements (PPAs) and power sale agreements (PSAs) tied-up between the generation companies and discoms have the provision for payment security mechanism in the form of LCs, the provision was not implemented by the discoms in most of the states. (BL).
A day before the General Budget, the Economic Survey for the fiscal year 2018-19 laid out blue print for $5 trillion economy. Finance Minister Nirmala Sitharaman tabled the survey in both the houses of Parliament on Thursday. The survey has projected that the Indian economy will grow at 7 per cent during current fiscal, i.e., 2019-20. This is slightly higher than 6.8 per cent recorded in the last fiscal, and considered to be lowest during last five years. In more news, The Centre has approved the Coconut Development Board’s (CDB) annual action plan, which envisages an outlay of ₹212 crore for 2019-2020. The Board has approved allocation to various States. For the current year, the Board has allocated ₹29.6 crore to Odisha to make up for the losses caused by Cyclone Fani. It is taking up a massive area expansion programme and also encouraging value addition to coconuts. (ET).
The Indian currency extended its rally in the afternoon session appreciating 34p to trade at the day’s high level of 68.55 against the dollar. Also, India’s benchmark bond yield witnessed a sharp fall after the government tabled the Economic Survey in the Lok Sabha and ahead of the Union Budget presentation. The local unit opened marginally higher against the dollar in morning trade tracking positive opening in domestic equities and easing crude oil prices. However, the sell-off in foreign funds and caution ahead of the Union Budget kept the rupee's gains limited. (BL).
Boeing Co. said it would offer $100 million to support the families of victims and others affected by the recent crashes of its 737 Max jetliner, which killed 346 people and have led to scores of lawsuits. In more news, The ongoing strong monsoon has brought down the rain deficit to 27 per cent as on Thursday (from a high of 33 per cent at June-end) and 6 per cent for the week to date, for the country as a whole. A causative well-marked low-pressure area showed no signs of weakening after three hyperactive days generating copious rainfall over many parts of East, Central, West and even parts of Peninsular India. (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 were closed on Thursday for Independence Day Holiday. The following numbers are for the previous session. The Dow Jones Index closed at 26,966, up 179.32 points by 0.67%. The Standard & Poors 500 index closed at 2,996, up 22.81 points by 0.77%. The Nasdaq Composite Index closed at 8,170, up 61.14 points by 0.75%.

FTSE 100

UK markets were little changed on Thursday with what traders were left in the market opting to sit on their hands on account of the 4 July holiday in the States and ahead of the monthly US jobs report due out the next day which might heavily influence near-term expectations for the Federal Reserve. The FTSE 100 index closed at 7,604, down 5.74 points by 0.08%.

 
 
Global Indices
04/07/2019 Clsg Chg%
Dow Jones - -
NASDAQ - -
FTSE 100 7,604 -0.08
Bovespa 103,636 +1.56
05/07/2019 Latest
(7:40AM IST)
Chg%
Nikkei 21,671 -0.14
Hang Seng 28,763 -0.11

Nikkei

Asian shares hovered near two-month highs on Friday, holding recent gains as investors awaited U.S. employment data, a key release that could make or break market expectations about aggressive policy easing by the Federal Reserve. Nikkei is currently trading at 21,671, down 31.11 points by 0.14%.

Precious Metals

Spot gold XAU= was higher at $1,417.2 an ounce on Friday.

Base Metals

Base metals prices on the London Metal Exchange were mixed at the close of trading on Thursday July 4, with price movements largely subdued by a national holiday in the United States while volumes traded were markedly lower.

Crude Oil

Crude oil prices fell on Friday, pressured by concerns over the outlook for global economic growth.

 
 
 

Retail Research Desk:

Akhil Rathi D: 91 22 2858 3210
Hrishikesh Yedve D: 91 22 2858 3207
Vrinda Aditya D: 91 22 2858 3209
Neeraj Sharma D: 91 22 2858 3208
Rohan Gawale D: 91 22 2858 3213
Dhiral Shah D: 91 22 2858 3211

Email: retailresearch@acm.co.in

Research Analyst Registration Number:
INH000002483
CIN: U65990MH1993PLC075388

 
 

Follow us on:

 
 
           
 

Information pertaining to Asit C. Mehta Investment Interrmediates Limited (ACMIIL): ACMIIL is a SEBI registered Stock Broker, Merchant Banker and Depository Participant. It is also a AMFI registered Mutual Fund Distributor. It does not have any disciplinary history. Its associate/group companies are Asit C. Mehta Commodity Services Limited, Asit C. Mehta Realty Services Pvt. Ltd, Asit C. Mehta Forex Pvt. Ltd, Nucleus IT Enabled Services , Asit C. Mehta Financial Services Limited (all providing services other than stock broking and merchant banking).

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.

Disclaimer:
This report is based on information that we consider reliable, but we do not represent that it is accurate or complete and it should not be relied upon such. ACMIIL or any of its affiliates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in the report. To enhance transparency we have incorporated a Disclosure of Interest Statement in this document. This should however not be treated as endorsement of the views expressed in the report.