Morning Notes
07th Oct, 2019
 

Trading Range:

Nifty opened gap up at 11388 on Friday and made a high and low of 11400 and 11158 respectively before closing negative at 11175.

Review/Outlook:

For the day, support for Nifty exists at 11120 and 11070 levels whereas resistance for Nifty stands at 11260 and 11320 levels.

Review/Outlook:

Bank Nifty opened gap up at 28682, made a high of 28730, low of 27656, and closed negative at 27732. For the day, support for Bank Nifty exists at 27400 and 27200 levels whereas resistance for Bank Nifty stands at 28000 and 28200 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 37,673 -1.14
Nifty 11,175 -1.23
BSE 200 4,667 -1.20
BSE Midcap 13,714 -0.94
BSE Smallcap 12,809 -0.79
Dow Jones 26,574 +1.42
NASDAQ 7,982 +1.40
 

DERIVATIVES INDICATORS FOR OCT 07, 2019:

NIFTY 11174.75 (-139.25) (-1.23%)
NIFTY OCT FUTURE 11215.15 (40.40 Points Premium)
NIFTY PCR - OI 0.97(-0.21)
NIFTY OPEN INTEREST 1.64Cr. (-1.83%)
INDIA VIX 17.58 (-0.69%)
NIFTY ROLLOVER 6%

NIFTY OPTIONS ACTIVITY (31-OCT SERIES)

CALL 11200 CE +1.60 lac Shares
CALL 11300 CE +4.28 lac Shares
PUT 11200 PE +2.62 lac Shares
PUT 11000 PE +2.13 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 16,572 -1.10
Bankex 31,303 -2.45
PSU 6,544 -0.97
Healthcare 12,274 -0.55
IT 15,482 +0.74
 
Market Turn Over (`cr)
Index 04/10 03/10
BSE Cash 2,064 2,524
NSE Cash 34,917 34,651
NSE F&O 976,983 2,791,988
BSE Delivery % 38.55 35.16
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 20.79 79.21
BSE 200 22.39 77.61
BSE 500 29.94 69.66
Total BSE 33.26 58.08
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 52.81 +0.69
Gold Rs./ 10 Gms 38333.00 -0.18
Silver Rs./ Kg 45379.00 -0.57
Rs.- US $ 70.82 -0.27
Rs.- Euro 77.78 -0.18
FII (Rs cr )
04/10* 03/10*
FIIs -1111.87 -1536.48
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       71,649.00       4,914.14       78,844.00       5,638.95    1,68,832.00      13,160.12    -724.81
Index Options  32,38,010.00  2,20,248.87  32,25,545.00  2,19,321.54    6,95,606.00      53,132.86     927.33
Stock Futures    2,65,872.00     14,194.56    2,71,432.00     14,065.36  15,58,528.00      89,043.98     129.20
Stock Options       85,386.00       4,710.30       86,924.00       4,802.19       57,190.00        3,059.64     -91.89
Total  36,60,917.00  2,44,067.87  36,62,745.00  2,43,828.04  24,80,156.00   1,58,396.60     239.83
Corporate News
For the third time in the past decade,  commercial vehicle player Ashok Leyland is facing  a  difficult year, one in which it has effected  production cuts and taken other tough measures. Ashok Leyland has said its factories will have two to 15 non-working days this month. The non-working days will be observed in order to align its production with sales, according to a company statement. (BL).
Hospitals chain Paras Healthcare said it has partnered with Udaipur-based J K Hospital to offer secondary and tertiary care services to the large underserved population of the area as it enters Rajasthan. (ET).
The deadline for submission of Expression of Interest under liquidation process, as a going concern, for IVRCL Limited has been extended to October 14. (BL).
Drug firm Glenmark Pharmaceuticals on Saturday said it has received a warning letter from the US health regulator for its Baddi facility in Himachal Pradesh. The United States Food and Drug Administration (USFDA) had inspected the facility between April 15 and April 20 and earlier classified the inspection as an official action indicated, Glenmark said in a filing to the BSE. (ET).
Rural Electrification Corporation (REC), a public power infrastructure finance company, and T-Hub, an incubator, have the finalists of the ‘Raising Young Entrepreneurs through Conceptual Research Experience’ programme. After a rigorous screening of 1,800 students, three teams of six students were selected to showcase projects and prototypes to T-Hub today. (ET).
Toyota Kirloskar has rolled out a voluntary separation scheme, the first since it started its operations 22 years ago. (BL).
Anheuser Busch InBev (AB InBev), the world’s leading brewer,on Friday, signed an agreement with The Indian Hotels Company Limited (IHCL), South Asia’s largest hospitality company, to launch a premium chain of micro-breweries within its marquee hotels across key locations in India. (ET).
BEML Limited, a Bengaluru-based public sector undertaking, has bagged Rs.729 crore further orders from Delhi Metro Rail Corporation Limited (DMRC). The order is for RS15 – design, manufacture, supply, testing and Commissioning of 80 numbers broad gauge intermediate cars compatible with existing RS1 type trains for conversion of 6-car train set to 8-car train set. (ET).
The BS-VI grade diesel and petrol produced by Mangalore Refinery and Petrochemicals Ltd (MRPL) will be available in the retail outlets of oil marketing companies (OMCs) in Karnataka by March 1, according to M Venkatesh, Managing Director of the company. (BL).
Tata Motors on Friday said it has launched a limited edition of its entry level model Tiago priced at Rs 5.4 lakh (ex-showroom Delhi). The Tiago Wizz comes with a 1.2 litre multi-drive petrol engine. (ET).
NHPC Limited has signed a definitive agreement for implementation of the approved resolution plan for takeover of Lanco Teesta Hydro Power Limited. Under the agreement signed on Friday, NHPC will be taking over 30 per cent equity in Lanco Teesta Hydro Power Limited, and complete the 500 MW Teesta VI Hydropower project on Teesta river in Sikkim. The remaining equity will be held by the banks and the company will become a subsidiary of NHPC Limited. (BS).
Maruti Suzuki India (MSI) on Friday said it has sold over 2 lakh units of BS VI emission compliant vehicles in just six months of launching first such car in the country. The auto major had launched its BS VI compliant range, starting with Alto 800 and Baleno in April 2019. The company has eight models, out of 16, which are now BS VI compliant. (BL).
TVS Motor Company has introduced a new Apache RTR 200 4V with Bluetooth-enabled SmartXonnect mobile application technology. (BL).
Alembic Pharmaceuticals on Friday said its joint venture (JV) firm Aleor Dermaceuticals has received approval from the US health regulator for Clobetasol Propionate spray, used to treat plaque psoriasis. The approved product is therapeutically equivalent to the reference listed drug (RLD) product, Clobex spray, 0.05 per cent of Galderma Laboratories LP. (ET).
ITC has joined hands with the Andhra Pradesh Government to develop a chilli value chain. The Agri Business Division of ITC and the Department of Horticulture have conceptualised an integrated Agri Extension Platform for chilli farmers under the public-private partnership model. (BL).
Fitch Ratings has affirmed Canara Bank's Viability Rating (VR) at 'bb-' following the announcement that India's government plans to merge the state bank with another southern mid-sized state bank, Syndicate Bank. Fitch has concurrently affirmed Canara's Issuer Default Rating (IDR) at 'BBB-' with a Stable Outlook, Support Rating at '2' and Support Rating Floor at 'BBB-'. A full list of rating actions is at the end of this rating action commentary. (BL).
Container Corporation of India to contest DGFT claim on benefit under export scheme program. The company says it had claimed a benefit of Rs 1,044 crore for FY16-19, but DGFT said that claims up to Rs 861 crore are not eligible for the export benefit. This is subject to further verification by the authorities central licensing area office. (BQ).
Bosch said that at its various plants belonging to Powertrain Solutions division, would continue to observe ‘no production days’ for up to 10 days per month per plant during the third quarter of the FY20. (BQ).
Zee Entertainment Enterprises: Promoter Essel Media Ventures created an encumbrance over the 10.28 crore shares, representing 10.71 percent stake in the company in favor of VTB Capital. The encumbrance was created pursuant to the loan agreement executed on September 2017. (BQ).
Economy and Sector News
International express service provider DHL Express India is eyeing an investment of Rs.100 crore this fiscal, as it looks to expand its presence by setting up facility centres and investing in technology. In more news, Private Equity firm Advent International has acquired a 100 per cent stake in Enamor, a women’s premium innerwear brand in India, from India Alternatives, Faering Capital and the Promoters for Rs 320 crore. The transaction is Advent’s eighth investment in India in the past four years and its fourth in the consumer goods sector during the same period. (BL).
The Reserve Bank of India on Friday sharply cut its economic growth projection for this fiscal to 6.1 per cent from 6.9 per cent earlier, but expressed hope that the growth will recover in the second half of 2019-20. The central bank’s estimates come in the wake of GDP growth sliding to a six-year low of 5 per cent in the June quarter, on a massive slowdown in consumption and private sector investments. In the monetary policy report released on Friday, the central bank said the growth momentum will pick up with every quarter on factors like government measures, its policy rate cuts and also favourable base effects. The GDP growth will recover to 7 per cent in 2020-21, it said, adding, the near-term outlook of the economy is “fraught with several risks.”. (ET).
The country’s top-12 major ports have recorded a marginal 1.48 per cent upswing in cargo handling at 348.44 million tonnes (MT) in the April-September period of the current financial year, according to ports’ apex body IPA. The growth at these ports, which had handled 343.37 MT cargo in the corresponding period of the previous financial year, was driven mainly by higher handling of coking coal, fertilisers and iron ore. In more news, India recorded a 13.76 per cent increase in income from tea exports till August this calendar compared with the same months in 2018. This happened because of a 13.74 per cent increase in the price realised even as volumes shipped grew only marginally, our analysis of the latest data available with the Tea Board of India shows. (BL).
The High Court (HC) of Andhra Pradesh (AP) has vide its order dated September 24, 2019 set aside the notification issued by the Government of Andhra Pradesh (GoAP) on formation of a high high-level negotiation committee (HLNC) to renegotiate the cost of wind and solar PPAs tied-up by the state distribution utilities (discoms). Instead, the HC has directed the state discoms and developers to approach Andhra Pradesh Electricity Regulatory Commission (APERC) to decide on the tariff issue. The court has suggested a time frame of six months for APERC to decide on the issue. In the interim, the court directed the discoms to make payments for the pending bills and future bills at the rate of Rs2.43 per unit for wind power plants and Rs2.44 per unit for solar power plants. (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 sharply higher on Friday despite a mixed jobs report, with the Dow Jones Industrials cutting into the heavy losses recorded earlier in the week. The Dow Jones Index closed at 26,574, up 372.68 points by 1.42%. The Standard & Poors 500 index closed at 2,952, up 41.38 points by 1.42%. The Nasdaq Composite Index closed at 7,982, up 110.21 points by 1.40%.

FTSE 100

UK markets closed in the green on Friday, with gains picking up the pace in afternoon trading after the release of the latest US non-farm payrolls report. The FTSE 100 index closed at 7,155, up 77.74 points by 1.10%.

 
 
Global Indices
04/10/2019 Clsg Chg%
Dow Jones 26,574 +1.42
NASDAQ 7,982 +1.40
FTSE 100 7,155 +1.10
Bovespa 102,551 +1.02
07/10/2019 Latest
(5:06AM IST)
Chg%
Nikkei 21,410 +0.32
Hang Seng 25,821 -1.11

Nikkei

Asian stocks started trading early in the morning on Monday on a positive note as investors will be closely watching the US markets. Nikkei is currently trading at 21,410, up 68.46 points by 0.32%.

Precious Metals

Gold futures fell on Friday, easing back from a three-session climb, but tallied a gain of 0.4% for the week on the back of growing expectations for a global economic slowdown.

Base Metals

The three-month price of lead on the London Metal Exchange was the standout performer at the close of trading on Friday October 4, settling at its highest level in 13 months despite low turnover, while nickel continued to trend higher over the afternoon.

Crude Oil

Oil futures settled higher Friday, with U.S. benchmark crude breaking an eight-day string of losses, but still posted its biggest weekly loss since mid-July, after a run of weak economic data underlined concerns over global demand.

 
 
 

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