Morning Notes
06th Dec, 2019
 

Trading Range:

Nifty opened gap up at 11971 on Thursday and made a high and low of 12081 and 11999 respectively before closing negative at 12018.

Review/Outlook:

For the day, support for Nifty exists at 11980 and 11930 levels whereas resistance for Nifty stands at 12080 and 12120 levels.

Review/Outlook:

Bank Nifty opened gap up at 32084, made a high of 32127, low of 31628, and closed negative at 31713 levels. For the day, support for Bank Nifty exists at 31500 and 31300 levels whereas resistance for Bank Nifty stands at 32000 and 32200 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 40,780 -0.17
Nifty 12,018 -0.21
BSE 200 5,019 -0.30
BSE Midcap 14,855 -0.32
BSE Smallcap 13,455 +0.02
Dow Jones 27,678 +0.10
NASDAQ 8,571 +0.05
 

DERIVATIVES INDICATORS FOR DEC 06, 2019:

NIFTY 12018.40 (-24.80) (-0.21%)
NIFTY DEC FUTURE 12047.70 (29.30 Points Premium)
NIFTY PCR - OI 1.54(+0.10)
NIFTY OPEN INTEREST 1.36Cr. (-3.46%)
INDIA VIX 14.30 (+7.37%)
NIFTY ROLLOVER 4%

NIFTY OPTIONS ACTIVITY (26-DEC SERIES)

CALL 12100 CE +0.55 lac Shares
CALL 12200 CE +1.67 lac Shares
PUT 11800 PE +2.58 lac Shares
PUT 11900 PE +1.10 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 17,810 -0.64
Bankex 36,147 -0.76
PSU 6,894 -1.22
Healthcare 13,472 -0.65
IT 15,195 +1.03
 
Market Turn Over (`cr)
Index 05/12 04/12
BSE Cash 2,075 2,567
NSE Cash 34,089 38,184
NSE F&O 3,097,947 1,809,045
BSE Delivery % 38.84 39.78
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 24.75 75.25
BSE 200 31.84 68.16
BSE 500 37.13 62.48
Total BSE 41.83 51.14
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 58.43 +0.00
Gold Rs./ 10 Gms 38085.00 -0.02
Silver Rs./ Kg 38085.00 +0.41
Rs.- US $ 71.24 -0.38
Rs.- Euro 79.12 -0.18
FII (Rs cr )
05/12* 04/12*
FIIs +195.45 -102.82
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       41,648.00       3,108.65       49,214.00       3,773.58    1,50,719.00     12,803.05    (664.93)
Index Options  75,65,362.00  5,24,452.99  75,52,787.00  5,23,450.68    4,95,290.00     42,029.66  1,002.31
Stock Futures    1,82,493.00     11,112.56    1,87,229.00     11,385.18  15,88,317.00     95,156.41    (272.62)
Stock Options       56,938.00       3,834.87       57,383.00       3,854.93       52,881.00       2,988.97      (20.06)
Total  78,46,441.00  5,42,509.07  78,46,613.00  5,42,464.37  22,87,207.00  1,52,978.09       44.70
Corporate News
Kitchen appliances brand TTK Prestige has unveiled plans for 2020, aimed at increasing its market share across geographies and getting back to double-digit growth in mature categories such as pressure cookers. (BL).
Abhishek Law Kolkata-based plywood and veneer maker Greenply Indutries is looking to pay off its long-term debts over the next three or four years. Till September 2019, the company had debt of Rs.171 crore on its books. Of this, Rs.43 crore was long-term while Rs.128 crore was its working capital requirement. Its debt-to-equity ratio stands at 0.47. (ET).
In a major breakthrough in the treatment of non-alcoholic steatohepatitis (NASH), healthcare major Zydus Cadila has announced the filing of a new drug application (NDA) for Saroglitazar Magnesium with the Drug Controller General of India (DCGI). Subject to approvals, the drug could become the first globally to be indicated for the treatment NASH. Currently, there is no treatment available for this progressive liver disease, said Zydus in a statement on Thursday. (BL).
Betting big on growth opportunities emanating from the US-China trade tensions, chemicals major Deepak Nitrite Ltd has lined up fresh investments for additional products. The company plans to invest approx Rs.200 crore in the next three-nine months for setting up a facility to a solvent - isopropyl alcohol (IPA) at its existing complex at Dahej in south Gujarat. (ET).
The Council of Scientific and Industrial Research (CSIR) and state-run BHEL on Thursday signed a memorandum of understanding to cooperate, collaborate and pursue industrial application oriented research programmes and its large-scale commercialization, a press statement said. (BL).
Gas Authority of India Limited (GAIL) has offered up to 10 liquefied natural gas (LNG) cargoes for loading in the United States (US) over early 2020 to early 2021, two industry sources said on Thursday. The cargoes are being offered through its Singapore subsidiary on a free-on-board (FOB) basis from the Sabine Pass and Cove Point LNG plants and will be priced on a Henry Hub basis, one of the sources said. (ET).
Allcargo Logistics will finalise the acquisition of a controlling stake in express distribution company Gati on Thursday as it seeks to plug its last- mile gap on the road to becoming an end-to-end logistics firm catering to e-commerce giants such as Flipkart and Amazon. (BL).
Ramco Systems on Wednesday said its subsidiary in the Middle East has bagged a five year order, for an “undisclosed sum”, from a large independent family- owned multinational company to implement its logistics solution. (ET).
In a major development, the RBI-appointed Administrator for the beleaguered Dewan Housing Finance Ltd (DFHL) on Thursday asked all its fixed deposit and non-convertible debenture holders to file their claims before December 17. The move comes ahead of the Supreme Court hears a group of investors who have moved it on the matter, and barely three days after the National Company Law Tribunal's Mumbai bench admitted the RBI's application for initiating insolvency proceedings against the cash-strapped firm. (ET).
Moody's Investors Service has downgraded Yes Bank Limited's long-term foreign-currency issuer rating to B2 from Ba3. Moody's has also downgraded the bank's long-term foreign and local currency bank deposit ratings to B2 from Ba3, foreign currency senior unsecured MTN program rating to (P)B2 from (P)Ba3, and Baseline Credit Assessment (BCA) and Adjusted BCA to b3 from b1. The outlook on the bank's ratings, where applicable, is negative. In more news, Vodafone Idea informed that Brickwork Ratings has downgraded its rating on Non-Convertible Debentures as per the rating rationale uploaded on its website on Dec 4, 2019. The company's NCDs have been downgraded from A- to BBB- maintaining rating watch with negative implications. As per the rating rationale published on the website, the downgrade is on account of considerable impact of the AGR related liability on the financial performance of the company resulting in huge losses, erosion of net worth and deterioration in the overall risk profile of the company. (ET).
Economy and Sector News
E-commerce platform Flipkart has announced a strategic minority investment in Shadowfax, a cross-category, full-stack logistics platform. This investment is part of a $-60 million Series D funding that Shadowfax has received from Eight Roads Ventures, Nokia Growth Partners, Qualcomm Ventures, Mirae Asset Naver Fund and World Bank backed IFC. In more news, Renascent Power Ventures has acquired a 75 per cent equity stake in Prayagraj Power Generation Company. This transaction is the result of stressed asset resolution process initiated by the lenders through a competitive process, the company said in a statement. (BL).
Jaipur-headquartered Cardekho, an auto-tech company, has raised $70 million in Series D funding led by Ping An Global Voyager Fund, an investment arm of Chinese financial services behemoth Ping An. In more news, the country’s largest passenger car maker, Maruti Suzuki India (MSIL), will recall around one-lakh vehicles of its second-generation smart-hybrid vehicles, including the Ciaz, the Ertiga and the recently launched XL6 due to the lithium-ion battery fire hazard. (ET).
Mumbai-based Incredible Technologies Private Limited (“Credr”), has raised Rs 38 crores ($6 million) from Omidyar Network India along with existing investors. In more news, India's domestic air passenger traffic grew 3.6 per cent in October but the expansion was slower than last year, reflecting "general economic slowdown" and disruptive impact of Jet Airways' collapse, according to IATA. The International Air Transport Association (IATA), a grouping of more than 280 airlines worldwide, on Thursday said growth in India lags the robust 2018 outcomes. Globally, Revenue Passenger Kilometre (RPK) rose to 3.4 per cent in October compared to the year-ago period. RPK is a measure of demand. This was a modest slowdown from 3.9 per cent growth recorded in September, owing to softer traffic performance in domestic markets. October capacity (Available Seat Kilometers or ASKs) increased by 2.2 per cent and load factor climbed 0.9 percentage point to 82 per cent, which was a record for October. (BL).
The Coal Ministry has projected an estimated income of Rs.17,136 crore to the State governments from the recently concluded auction of five mines. A Coal Ministry statement also said that the allocation of bid out mines has been approved. In this round, Birla Corporation Ltd has won two mines in Madhya Pradesh, Prakash Industries Ltd has won one mine in Chhattisgarh, Powerplus Traders Private Ltd has bagged one block in West Bengal and Vedanta Ltd has won a block in Odisha. In more news, the Canada Pension Plan Investment Board (CPPIB) will invest up to $600 million in the National Investment and Infrastructure Fund (NIIF) of India. This development comes at a time when infrastructure investments in India need a considerable push. (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 eked out slight gains on Thursday as investors waited for concrete news on a hoped-for interim trade deal between the United States and China before a new round of tariffs scheduled to kick in on Dec. 15. The Dow Jones Index closed at 27,678, up 28.01 points by 0.10%. The Standard & Poors 500 index closed at 3,117, up 4.67 points by 0.15%. The Nasdaq Composite Index closed at 8,571, up 4.03 points by 0.05%.

FTSE 100

UK markets remained weak at the close on Thursday, missing out on a broader market rally as sterling strength weighed. The FTSE 100 index closed at 7,138, down 50.65 points by 0.70%.

 
 
Global Indices
05/12/2019 Clsg Chg%
Dow Jones 27,678 +0.10
NASDAQ 8,571 +0.05
FTSE 100 7,138 -0.70
Bovespa 110,622 +0.29
06/12/2019 Latest
(4:48AM IST)
Chg%
Nikkei 23,300 +0.71
Hang Seng 26,217 +0.59

Nikkei

Asian stocks edged up on Friday started trading on a positive note as investors keep a close watch on the US markets. Nikkei is currently trading at 23,300, up 164.86 points by 0.71%.

Precious Metals

Gold futures finished higher Thursday, recouping much of the losses suffered a day earlier, as traders awaited monthly domestic employment data due at the end of the week, which may influence haven demand for the precious metal.

Base Metals

The three-month nickel price on the London Metal Exchange was the biggest gainer at the close of trading on Thursday December 5, staging a modest recovery after reaching a five-month low earlier in the day, while turnover topped the complex over the day.

Crude Oil

Oil futures ended on a mixed note Thursday, with U.S. prices settling unchanged for the session and global prices higher, as traders awaited a decision on output from major oil producers, following reports that OPEC and its allies have recommended cutting production by another 500,000 barrels a day.

 
 
 

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

Karan Desai D: 91 22 2858 3221
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 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:
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.