Morning Notes
13th Feb, 2020
 

Trading Range:

Nifty opened gap up at 12151 on Wednesday and made a high and low of 12232 and 12144 respectively before closing positive at 12201.

Review/Outlook:

For the day, support for Nifty exists at 12140 and 12090 levels whereas resistance for Nifty stands at 12260 and 12310 levels.

Review/Outlook:

Bank Nifty opened gap up at 31441, made a high of 31589, low of 31398, and closed positive at 31493. For the day, support for Bank Nifty exists at 31300 and 31000 levels whereas resistance for Bank Nifty stands at 31700 and 32200 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 41,566 +0.85
Nifty 12,201  +0.77
BSE 200 5,138 +0.58
BSE Midcap 15,789 -0.29
BSE Smallcap 14,731 -0.13
Dow Jones 29,551 +0.94
NASDAQ 9,726 +0.90
 

DERIVATIVES INDICATORS FOR FEB 13, 2020:

NIFTY 12201.20 (+93.30) (+0.77%)
NIFTY FEB FUTURE 12228.45 (27.25 Points Premium)
NIFTY PCR - OI 1.61 (+0.22)
NIFTY OPEN INTEREST 1.44 Cr. (-1.58%)
INDIA VIX 13.62 (-1.86%)
NIFTY ROLLOVER 9%

NIFTY OPTIONS ACTIVITY (27-FEB SERIES)

CALL 12400 CE +1.22 lac Shares
CALL 12300 CE +0.61 lac Shares
PUT 12200 PE +5.17 lac Shares
PUT 12000 PE +6.09 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 17,844 +0.60
Bankex 36,094 +0.76
PSU 6,580 -0.59
Healthcare 14,296 -0.27
IT 16,229 +0.70
 
Market Turn Over (`cr)
Index 12/02 11/02
BSE Cash 2,678 2,468
NSE Cash 35,928 35,117
NSE F&O 1,302,741 1,140,799
BSE Delivery % 52.26 55.21
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 53.47 45.54
BSE 200 45.77 53.73
BSE 500 39.12 60.28
Total BSE 36.27 56.98
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 51.32 +0.29
Gold Rs./ 10 Gms 40484.00 +0.18
Silver Rs./ Kg 45500.00 -0.36
Rs.- US $ 71.32 +0.01
Rs.- Euro 77.53 -0.40
FII (Rs cr )
12/02* 11/02*
FIIs +2157.43 -502.85
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       35,422.00       2,910.41       22,503.00       1,765.64    1,64,484.00     13,917.25  1,144.77
Index Options  30,67,598.00  2,19,734.35  30,61,172.00  2,19,218.92    7,19,534.00     61,836.90     515.43
Stock Futures    1,89,542.00     12,745.82    1,83,029.00     12,302.19  15,72,842.00  1,03,960.12     443.63
Stock Options       65,596.00       4,592.47       65,021.00       4,556.88       69,167.00       4,750.97       35.59
Total  33,58,158.00  2,39,983.05  33,31,725.00  2,37,843.63  25,26,027.00  1,84,465.24  2,139.42
Corporate News
Pharma major Dr Reddy’s Laboratories has entered into a definitive agreement with Wockhardt Ltd to acquire select divisions of its branded generics business in India, Nepal, Sri Lanka, Bhutan and the Maldives, for Rs.1,850 crore. The business undertaking is being transferred on a slump sale basis. (BL).
Leading tyre maker Ceat, which is part of the RPG Group, has set up a new radial tyre factory near Chennai at an initial investment of Rs.1,400 crore to supply passenger car radial and two-wheeler radial tyres. (ET).
The country’s largest two-wheeler maker Hero MotoCorp on Wednesday said it has forayed into connected mobility solutions with the launch of a cloud-based solution which would be offered initially with four models – XPulse 200, Pleasure+, Passion XPRO and HF Deluxe. (BS).
IRB Infrastructure Developers on Wednesday said it has commissioned its Goa/Karnataka Border — Kundapur four laning highway project, built at a cost of Rs.3,447 crore. The project has a concession life of 28 years. (ET).
India’s biggest iron ore miner plans to raise production by as much as 50 per cent, potentially boosting supplies and alleviating concerns of shortages of the key raw material. State-run NMDC Ltd. is targeting production of 48 million tonnes in the year starting April, and will surpass 32 million tonnes this year, Amitava Mukherjee, director of finance, said. (BL).
Quarterly Earnings
State-run NMDC Ltd. is targeting production of 48 million tonnes in the year starting April, and will surpass 32 million tonnes this year, Amitava Mukherjee, director of finance, said. The company had reported a net loss of Rs 40.07 crore in the year-ago period. Total income from operations declined to Rs 672.99 crore in the quarter ended on December 31, 2019, from Rs 1,112.34 crore a year ago. (BL).
Indian Railway Catering & Tourism Corporation (IRCTC) on Wednesday posted a 179.65 per cent year-on-year rise in profit at Rs 205.80 crore for the quarter ended December 31. The figure stood at Rs 73.59 crore in the corresponding quarter last year. Revenue from operation increased 64.59 per cent to Rs 715.98 crore in Q3FY20. IRCTC also declared an interim dividend of Rs 10 on face value of Rs 10. (ET).
Torrent Power on Wednesday said its consolidated net profit rose over 76 per cent to Rs 420.62 crore in December quarter 2019.The company said its net profit in the year-ago period stood at Rs 238.19 crore. Total income was Rs 3,115.48 crore in the quarter as compared to Rs 3,306.83 crore in the year-ago period. The company's board at its meeting held on Wednesday has approved interim dividend of Rs 11.60 per equity share on 48,06,16,784 equity shares of Rs 10 each for 2019-20, it said. (BL).
Hinduja Group flagship Ashok Leyland on Wednesday said its consolidated net profit declined 86.68 per cent to Rs 57.11 crore for the third quarter ended on December 31, 2019. The company had posted a net profit of Rs 428.76 crore for the December quarter of 2018-19. Revenue from operations declined to Rs 5,188.84 crore for the third quarter as compared with Rs 7,489.64 crore in the same period of previous fiscal. (ET).
Dish TV India Ltd on Wednesday reported a consolidated net loss of Rs 66.77 crore for the third quarter ended December, 2019. The direct-to-home (DTH) company had posted a net profit of Rs 152.69 crore in October-December quarter a year-ago, Dish TV India said in a BSE filing. Total income during the quarter under review stood at Rs 870.90 crore. It was at Rs 1,529.57 crore in the corresponding quarter of previous fiscal. (BL).
Drug firm Natco Pharma on Wednesday reported a 34.46 per cent drop in consolidated net profit to Rs 104.4 crore for the quarter ended December 2019. The company had posted a net profit of Rs 159.3 crore for the corresponding period of the previous fiscal, Natco Pharma said in a filing to BSE. Consolidated total income stood at Rs 513 crore for the quarter under consideration. It was Rs 580 crore for the same period a year ago. (BL).
State-run Power Finance Corporation reported a 12 per cent dip in consolidated net profit at Rs 3,386.72 crore in the December quarter. The company's net profit stood at Rs 3,876.17 crore in the year-ago quarter, a BSE filing said. Total income rose to Rs 15,878.04 crore during October-December from Rs 14,050.95 crore a year ago. (BS).
State-owned Rail Vikas Nigam Ltd (RVNL) on Wednesday posted 62.9 per cent decline in consolidated net profit at Rs 103.48 crore for the quarter ended December 31, 2019. It had clocked a profit of Rs 279.51 crore in the year-ago period, RVNL said in a filing to the BSE. However, the income rose to Rs 3,773.13 crore from Rs 3,081.74 crore in the same period a year ago, the filing said. (ET).
Home textiles major Welspun India on Wednesday reported a 50 per cent increase in consolidated net profit at Rs 75.09 crore in the third quarter ended on December 31, 2019. The company had posted a consolidated net profit of Rs 50.08 crore in the same period last fiscal, Welspun India said in a regulatory filing. Revenue from operations for the said period stood at Rs 1,665.4 crore as against Rs 1,640.33 crore in the year-ago quarter, it added. (ET).
Drug firm Ipca Laboratories on Wednesday reported a 24.15 per cent rise in consolidated net profit at Rs 197.54 crore for the quarter ended on December 31, 2019, on account of robust sales. The company had posted a net profit of Rs 159.11 crore for the corresponding period of previous fiscal. Total income also rose to Rs 1,230.99 crore for the quarter under consideration as against Rs 1,019.48 crore in the year-ago period. The company's board has declared an interim dividend of Rs 5 per share, Ipca Laboratories said. (BL).
Hindalco Industries on Wednesday said consolidated profit fell 24 per cent year-on-year to Rs 1,062 crore for the December quarter compared with Rs 1,394 crore in the year-ago quarter. Revenue from operations fell 12.09 per cent to Rs 29,197 crore from Rs 33,213 crore in the year-ago period. (BL).
Info Edge (India) on Wednesday posted a consolidated loss of Rs 62.1 crore for the quarter ended December 2019. The company had posted consolidated profit of Rs 330 crore in the year-ago period, Info Edge (India) Ltd said in a filing to BSE. The consolidated income of the company, however, increased to Rs 359.7 crore in the October-December period, over Rs 323 crore in the year-ago period. (BS).
Economy and Sector News
Finance Minister Nirmala Sitharaman may have to eat her words, as just a day after she claimed the economy is not in trouble, the monthly data of food inflation and industrial production, which was released on Wednesday, indicated that all is not well. While the rate of retail inflation surged to new high of 7.59 per cent in January, the rate of industrial growth contracted 0.3 per cent in December as against a rise in November. In more news, India’s industrial output contracted by 0.3 per cent in December, weighed by a decline in the manufacturing sector, government data showed on Wednesday. The Index of Industrial Production (IIP) had grown by 2.5 per cent in December 2018. (BL).
A steep hike in cooking gas price was announced on Wednesday, with the cost of a 14.2 kg unsubsidised domestic LPG cylinder being raised to Rs.858.50 in the national capital. In more news, Industry body Nasscom has projected a revenue growth of 7.7 per cent at USD 191 billion for the IT sector in the ongoing fiscal. (ET).
Cooking gas LPG price on Wednesday was hiked by a steep Rs 144.5 per cylinder due to spurt in benchmark global rates of the fuel. LPG price was increased to Rs 858.50 per 14.2 kg cylinder from Rs 714 previously, according to a price notification of state-owned oil firms. (BL).
The Union Cabinet, chaired by the Prime Minister Narendra Modi, has given its in-principle approval for capital infusion for three Public Sector General Insurance Companies, namely, Oriental Insurance Company Limited (OICL), National Insurance Company Limited (NICL) and United India Insurance Company Limited (UIICL). In view of the above, Cabinet has allowed the immediate release of Rs2,500cr in the light of the critical financial position and breach of regulatory solvency requirements of 3 PSGICs viz. Oriental Insurance Company, National Insurance Company and United India Insurance Company. (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 finished in the green on Wednesday, as concerns around the ongoing coronavirus outbreak took a back seat. The Dow Jones Index closed at 29,551, up 275.08 points by 0.94%. The Standard & Poors 500 index closed at 3,379, up 21.70 points by 0.65%. The Nasdaq Composite Index closed at 9,725, up 87.02 points by 0.90%.

FTSE 100

UK markets finished Wednesday’s session above the waterline, with miners pacing the advance as investors took comfort from signs that the coronavirus spread may be slowing. The FTSE 100 index closed at 7,534, up 34.93 points by 0.47%.

 
 
Global Indices
12/02/2019 Clsg Chg%
Dow Jones 29,551 +0.94
NASDAQ 9,725 +0.90
FTSE 100 7,534 +0.47
Bovespa 116,674 +1.13
13/02/2020 Latest
(7:24AM IST)
Chg%
Nikkei 23,867 +0.03
Hang Seng 27,864 +0.14

Nikkei

Asian stock markets wobbled and the safe-havens of the Japanese yen, gold and bonds rose on Thursday as the number of new coronavirus cases at the outbreak’s epicentre jumped sharply. Nikkei is currently trading at 23,867, up 6.15 points by 0.03%.

Precious Metals

Gold rose 0.3% to $1570.30 per ounce XAU= on Thursday.

Base Metals

The three-month price of copper on the London Metal Exchange edged higher at the close of trading on Wednesday February 12, staying firmly above the $5,700 per tonne support level despite low turnover, while nickel similarly held above nearby support.

Crude Oil

Oil futures finished higher on Wednesday, finding support as a slowdown in the number of new, confirmed cases of COVID-19 in China may translate into a smaller-than-feared hit to crude demand.

 
 
 

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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.

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