Morning Notes
11th Oct, 2019
 

Trading Range:

Nifty opened gap down at 11281 on Thursday and made a high and low of 11293 and 11209 respectively before closing negative at 11235.

Review/Outlook:

For the day, support for Nifty exists at 11170 and 11100 levels whereas resistance for Nifty stands at 11290 and 11360 levels.

Review/Outlook:

Bank Nifty opened down at 28543, made a high of 28553, low of 27914, and closed negative at 28013. For the day, support for Bank Nifty exists at 27700 and 27400 levels whereas resistance for Bank Nifty stands at 28300 and 28600 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 37,880 -0.78
Nifty 11,235  -0.70
BSE 200 4,682 -0.75
BSE Midcap 13,748 -0.87
BSE Smallcap 12,723 -0.57
Dow Jones 26,496 +0.57
NASDAQ 7,950 +0.60
 

DERIVATIVES INDICATORS FOR OCT 11, 2019:

NIFTY 11234.55 (-78.75) (-0.70%)
NIFTY OCT FUTURE 11254.25 (19.70 Points Premium)
NIFTY PCR - OI 1.00(-0.20)
NIFTY OPEN INTEREST 1.56Cr. (+0.28%)
INDIA VIX 17.22 (+0.42%)
NIFTY ROLLOVER 7%

NIFTY OPTIONS ACTIVITY (31-OCT SERIES)

CALL 11400 CE +1.19 lac Shares
CALL 11300 CE +3.42 lac Shares
PUT 11200 PE -0.71 lac Shares
PUT 11000 PE -1.25 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 16,495 -1.21
Bankex 31,688 -2.61
PSU 6,456 -1.16
Healthcare 12,089 +0.00
IT 15,202 -0.25
 
Market Turn Over (`cr)
Index 10/10 09/10
BSE Cash 2,188 2,177
NSE Cash 32,809 35,672
NSE F&O 2,559,668 1,558,081
BSE Delivery % 43.78 33.91
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 25.74 74.26
BSE 200 28.86 71.14
BSE 500 32.60 66.60
Total BSE 32.64 60.52
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 53.55 +1.83
Gold Rs./ 10 Gms 38159.00 -0.88
Silver Rs./ Kg 45421.00 -1.35
Rs.- US $ 71.02 -0.29
Rs.- Euro 78.18 -0.11
FII (Rs cr )
10/10* 09/10*
FIIs -683.02 -367.74
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       55,364.00       3,629.11       62,395.00       4,313.77    1,68,240.00     13,244.95    (684.66)
Index Options  63,79,770.00  4,02,790.87  63,15,534.00  3,98,382.97    6,39,372.00     50,541.69  4,407.90
Stock Futures    2,27,462.00     11,723.98    2,37,401.00     11,950.73  15,49,406.00     88,493.24    (226.75)
Stock Options       86,571.00       4,811.85       88,502.00       4,904.28       71,752.00       3,880.16      (92.43)
Total  67,49,167.00  4,22,955.81  67,03,832.00  4,19,551.75  24,28,770.00  1,56,160.04  3,404.06
Corporate News
Welspun India, one of the largest suppliers of home textiles globally to retailers like Walmart, Costco and others, is looking to be debt-free over the next five years. (BL).
BPCL Kochi Refinery is set to enter its next development phase of being an integrated refinery-cum-petrochemical unit with its Rs.5,246-crore Propylene Derivatives Petrochemical Project (PDPP) getting ready for commissioning shortly. (ET).
Tata Steel has reported a four per cent fall in domestic sales to 4.14 million tonnes (mt) in the September quarter against 4.32 mt logged in the same period last year. The company’s production was up 4.50 mt (4.30 mt), said the company in a statement on Thursday. (BL).
The Delhi Police on Thursday arrested former Fortis Healthcare promoter Shivinder Singh and three others in an alleged fraud case, officials said. Kavi Arora, Sunil Godhwani and Anil Saxena were also arrested by the Economic Offence Wing of Delhi Police for allegedly diverting public money and investing in other companies, they said. (ET).
The National Investment and Infrastructure Fund (NIIF) and Energy Efficiency Services Ltd (EESL) have announced a new joint venture to implement, finance and operate the smart meter roll-out by power distribution companies. (ET).
KIOCL Ltd is likely to generate direct employment for around 500 people in Mangaluru through its new projects. This was revealed at a public hearing on the establishment of three projects by KIOCL Ltd. The public hearing was convened by the Karnataka Pollution Control Board. (BL).
Mattress-maker Duroflex has sewn up plans for expansion, which will see it adding fresh capacity at its Hyderabad plant and taking up expansion-cum-new facility in either Maharashtra or Gujarat. (ET).
Crisis-hit IL&FS Group has put 13 of its properties in prime locations across Mumbai, Hyderabad and Kolkata up for sale and has invited expressions of interest (EoI) for the same. Out of the total 13 properties, 11 are in Mumbai. The properties put on the block include seven commercial properties and six residential properties. (ET).
Bank of Maharashtra on Thursday has announced a cut in its marginal cost of funds based lending rates by 10bps across tenors. It has revised its Marginal Cost of Funds based Lending Rates (MCLR) with effect from October 08, 2019, in terms of RBI Guidelines. Repo Linked Lending Rate (RLLR) has been reduced by 25bps from 8.45% p.a. to 8.20% p.a. with effect from October 08, 2019. The base rate has been kept unchanged at 9.50% p.a., the bank said in a regulatory filing. The benchmark one-year MCLR will now be priced at 8.40% with effect from October 8, 2019, the bank said. The MCLR for one month has been fixed at 8.15%, while an MCLR of 8.20% has been fixed for three months, 8.30% for six months and 8.40% for one year. (BL).
Quarterly Earnings
TCS INR revenue grew by 2.1% qoq and 5.8% yoy to Rs38,977cr. Constant currency (cc) revenue grew by 8.4% yoy and dollar revenue came in at $5,571mn (+0.6% qoq and +5.8% yoy). EBIT stood at Rs9,361cr, up 1.5% qoq but down 4.2% yoy. EBIT margin contracted by 14bps qoq and 250bps yoy to 24%. PAT declined by 1.1% qoq but grew by 1.8% yoy to Rs8,042cr. (BL).
IndusInd Bank’s (IIB) Q2FY20 NII has improved by 32% yoy to Rs2,910cr against Rs2,203cr in the corresponding quarter previous year. The net profit has improved by 50% yoy to Rs1,383cr against Rs920cr yoy. GNPA for Q2FY20 came at 2.19% against 2.15% qoq, which has increased by 4bps. NNPA for the quarter came at 1.12% as against 1.23% qoq, which has decreased by 11bps. NIMs for the quarter came at 4.1% as against 4.05% qoq. Provisions made during the quarter is at Rs738cr as against Rs431cr qoq. Total provisions of Rs737cr included Rs355cr of accelerated provisions. The bank's total customers stood at 2.3 crore including Bharat Financial customers, whereas 2 million customers have been added during the quarter. Slippages for the quarter came at Rs1,102cr as against Rs725cr. (ET).
Economy and Sector News
Moody's Investor Services has announced the lowering of India's Gross Domestic Products (GDP) growth to 5.8% and this is the lowest projection after the Reserve Bank of India (RBI) cut the GDP growth to 6.1% earlier this month. The drivers of the deceleration are multiple, mainly domestic factors and in part, long-lasting. What was an investment-led slowdown has broadened into consumption, driven by financial stress among rural households and weak job creation. (BL).
Mattress-maker Duroflex has sewn up plans for expansion, which will see it adding fresh capacity at its Hyderabad plant and taking up expansion-cum-new facility in either Maharashtra or Gujarat. The Rs.500-crore company, which has six manufacturing bases — three of them in Karnataka, one each near Hyderabad in Telangana, Alleppey in Kerala and Bhiwandi in Maharashtra — plans to invest about ₹100 crore in the proposed expansion. in more news, Raysut Cement Company (RCC), Oman’s largest cement manufacturer, will invest $200 million to set up a 1.2-million tonne per annum (mtpa) integrated cement plant in Georgia, Eastern Europe. Following the commissioning of this plant by the end of this financial year, the company’s total capacity is expected to rise to 8.6 mtpa. (ET).
India’s engineering exports to China have gone up by an annualised 58 per cent in August 2019, bucking the trend of drop in overall exports to the world market, says data by EEPC India, an apex body of engineering exporters under Ministry of Commerce. Led by items like iron and steel and their products, India’s exports of engineering goods to China went up to $176.94 million in August 2019 from $112.20 million in the corresponding month last year with an increase of 57.70 per cent. The rise in shipments to China was contrary to overall decline of 8.92 per cent in India’s total engineering exports to global market at $6.35 billion during August 2019 ($6.97 billion), says a release from EEPC. In more news, Gem and jewellery exports continued their downtrend and dipped six per cent last month to $3.34 billion against $3.56 billion logged in September 2018. In value terms, it was down seven per cent at Rs.23,788 crore against Rs.25,699 crore logged in September, 2018. (BL).
India slipped to the fourth position in domestic air passenger traffic in August with passenger volume growing 3.7 per cent in the month over the period year-ago, reflecting the deepening crisis in the economy spawned by slumping consumer demand, IATA data show. The average global demand for domestic travel, however, climbed 4.7 per cent in the month under review compared to August last year, unchanged from the previous month, as per International Air Transport Association (IATA) data. Investors Service slashed its 2019-20 GDP growth forecast for India to 5.8 per cent from 6.2 per cent earlier, saying the economy was experiencing a pronounced slowdown which is partly related to long-lasting factors. The average capacity globally rose 4.6 per cent and load factor increased 0.1 percentage point to 85.9 per cent on the average across seven major international aviation markets, IATA data show. The domestic passenger volume for the US increased 3.9 per cent in August over August 2018, as per IATA. (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 higher on Thursday as market participants kept a close eye on the status of high-level trade talks between Washington and Beijing. The Dow Jones Index closed at 26,497, up 150.66 points by 0.57%. The Standard & Poors 500 index closed at 2,938, up 18.73 points by 0.64%. The Nasdaq Composite Index closed at 7,951, up 47.04 points by 0.60%.

FTSE 100

UK markets finished a solid afternoon in the green on Thursday, as investors had their recession fears allayed by the latest economic growth figures, and a strong showing from the mining sector also lending support. The FTSE 100 index closed at 7,186, up 19.86 points by 0.28%.

 
 
Global Indices
10/10/2019 Clsg Chg%
Dow Jones 26,497 +0.57
NASDAQ 7,951 +0.60
FTSE 100 7,186 +0.28
Bovespa 101,817 +0.56
11/10/2019 Latest
(3:45AM IST)
Chg%
Nikkei 21,552 +0.45
Hang Seng 25,708 +0.10

Nikkei

Asian stocks started trading early in the morning on Friday on a positive note as investors will be watching the US markets very closely. Nikkei is currently trading at 21,552, up 95.60 points by 0.45%.

Precious Metals

Gold futures held their ground above the key $1,500 mark by Thursday’s settlement, but posted their lowest finish in more than a week after President Donald Trump said he plans to meet with Chinese Vice Premier Lui He on Friday as the world economic powers hold their first day of talks in Washington, D.C.

Base Metals

The three-month zinc price on the London Metal Exchange was higher at the close of trading on Thursday October 10, nearing the $2,400 per tonne resistance level against a continued drawdown of LME stocks, while copper breached nearby resistance amid moderate turnover.

Crude Oil

Oil prices climbed on Thursday, settling at their highest in more than a week, as traders attempted to make sense of conflicting news reports around U.S.-China trade talks and parsed OPEC’s monthly assessment of global supply and 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 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.

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