Morning Notes
14th Jan, 2020
 

Trading Range:

Nifty opened gap up at 12297 on Monday and made a high and low of 12338 and 12286 respectively before closing positive at 12330.

Review/Outlook:

For the day, support for Nifty exists at 12250 and 12190 levels whereas resistance for Nifty stands at 12370 and 12420 levels.

Review/Outlook:

Bank Nifty opened gap up at 32139, made a high of 32323, low of 32074, and closed positive at 32178. For the day, support for Bank Nifty exists at 32000 and 31700 levels whereas resistance for Bank Nifty stands at 32350 and 32500 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 41,860 +0.62
Nifty 12,330 +0.59
BSE 200 5,155 +0.64
BSE Midcap 15,290 +0.87
BSE Smallcap 14,282 +0.95
Dow Jones 28,907 +0.29
NASDAQ 9,274 +1.04
 

DERIVATIVES INDICATORS FOR JAN 14, 2020:

NIFTY 12329.55 (+72.75) (+0.59%)
NIFTY JAN FUTURE 12362.15 (32.60 Points Premium)
NIFTY PCR - OI 1.64 (+0.09)
NIFTY OPEN INTEREST 1.47 Cr. (+0.39%)
INDIA VIX 14.27 (+1.40%)
NIFTY ROLLOVER 10%

NIFTY OPTIONS ACTIVITY (30-JAN SERIES)

CALL 12300 CE -0.81 lac Shares
CALL 12600 CE +1.73 lac Shares
PUT 12100 PE +2.05 lac Shares
PUT 12300 PE +3.86 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 18,461 +0.10
Bankex 36,681 +0.23
PSU 6,986 +0.96
Healthcare 13,635 +0.42
IT 16,052 +1.85
 
Market Turn Over (`cr)
Index 13/01 10/01
BSE Cash 3,099 3,088
NSE Cash 32,247 35,757
NSE F&O 874,839 1,043,298
BSE Delivery % 50.69 43.42
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 71.29 28.71
BSE 200 71.14 27.86
BSE 500 66.67 32.14
Total BSE 57.29 35.93
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 58.08 -1.63
Gold Rs./ 10 Gms 39546.00 -0.82
Silver Rs./ Kg 46443.00 -1.00
Rs.- US $ 70.96 -0.34
Rs.- Euro 78.88 -0.15
FII (Rs cr )
13/01* 10/01*
FIIs +658.56 +156.51
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       25,825.00       1,995.23       22,819.00       1,787.17    1,55,704.00     13,534.03  208.06
Index Options  21,37,129.00  1,56,286.79  21,32,287.00  1,55,988.58    7,27,451.00     61,491.88  298.21
Stock Futures    1,46,024.00     10,263.62    1,46,721.00     10,357.51  14,91,244.00  1,01,184.25   (93.89)
Stock Options       52,578.00       3,945.38       53,687.00       4,033.55       69,701.00       4,853.18   (88.17)
Total  23,61,556.00  1,72,491.02  23,55,514.00  1,72,166.81  24,44,100.00  1,81,063.34  324.21
Corporate News
Siemens AG said it intends to honour a controversial contract to supply signalling systems to an Australian coal mine, defying the demands of activists who said they will continue protests in Germany on Monday. The company will establish a sustainability committee that will have the power to stop or escalate projects, but the company will ultimately continue with the Adani contract, Chief Executive Officer Joe Kaeser said in a statement on Sunday. (BL).
Drug firm Alembic Pharmaceuticals on Monday said it has received a final nod from US health regulator for Vilazodone Hydrochloride tablets used for treatment of depression. (ET).
Drug firm Granules India on Monday said it is ‘voluntarily’ recalling Ranitidine tablets used to treat ulcers of the stomach and intestines. (BL).
Tata Power Solar Systems Ltd is to develop a 250MW solar project for NTPC. The project will be developed under the Centre’s Central Public Sector Undertaking (CPSU) scheme that mandates using domestically manufactured cells and modules for the project. The total value of the order is Rs.1,505 crore and the completion period is 20 months. With this order, the order book of Tata Power Solar stands at approximately Rs.7,600 crore, including external and internal orders,” a company statement said. (BL).
Fitch Ratings on Monday said it has assigned clean energy firm ReNew Power’s proposed US dollar senior secured notes a rating of ‘BB-’ with a stable outlook. According to Fitch Ratings, ‘BB’ ratings indicate an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time. (ET).
Ampere, a wholly-owned subsidiary of Greaves Cotton Limited (GCL), has entered into an incubation partnership with Bengaluru-based RV College of Engineering (RVCE), for creating an Electric Vehicle (EV) Mentorship Model for future of mobility. (BL).
JSW Steel on Monday said that its crude steel output registered a decline of 4.9 per cent to 4.02 million tonnes (MT) in the third quarter of the ongoing fiscal. The company’s crude steel production in the year-ago period was 4.23 MT, the steel major said in a filing to BSE. The production of flat-rolled products declined by 1.3 per cent to 2.86 MT, while production of long-rolled products declined by 14.4 per cent at 0.89 MT in Q3 FY20, it said. JSW Steel is flagship company of the diversified $ 14 billion JSW Group. (ET).
Industrialist and Wadia Group Chairman Nusli Wadia has withdrawn criminal defamation suits filed against Tata Sons’ Chairman Emeritus Ratan Tata and other directors in 2016, including a petition that sought Rs.3,000-crore in damages. (BS).
The ICICI Bank has approached the Bombay High Court seeking effect to "termination of appointment" of Chanda Kochhar as its Managing Director and CEO, and also sought recovery of various amounts from her. In a monetary suit filed on 10 January, the bank sought dismissal of Kochhar's petition and stated that the issue can be decided in a commercial suit. (BL).
Vodafone Idea’s Board has approved modification of the use of the Rs 25,000-crore right issue funds to pay Rs 2,826.1 crore towards the adjusted gross revenue (AGR) dues besides for repayment of loans and redemption of non-convertible debentures, including interest. (BL).
BSE and NSE will suspend trading in shares of Coffee Day Enterprises and CG Power and Industrial Solutions from February 3, 2020, for not complying with listing norms pertaining to submission of quarterly financial results. Pursuant to the provisions of SEBI circular no. SEBI/HO/CFD/CMD/CIR/P/2018/77 dated May 3, 2018, with respect to Standard Operating Procedure (SOP) for suspension and revocation of trading of shares of listed entities for non-compliance of certain regulations of SEBI (LODR) Regulation, 2015, it is hereby informed that following companies have not complied with requirements of Regulation 33 (i.e. submission of financial result) as per SEBI (LODR) Regulation, 2015, for consecutive quarters i.e. June 30, 2019, and September 30, 2019, and/or not paid the fine amount levied for said non-compliance. Hence, the trading in securities of below named companies will be suspended w.e.f. February 3, 2020. In case the companies fail to comply and/or pay fine as per the provisions of above mentioned SEBI circular on or before January 29, 2020, then trading in securities of the companies would be suspended w.e.f. February 03, 2020, and the suspension will continue till such time the companies complies including the payment of a fine. (ET).
Allcargo Logistics said that Blackstone will make an investment in the company's subsidiaries through a combination of equity and debentures up to Rs380cr. (ET).
Quarterly Earnings
Tata Elxsi on Monday said its net profit has increased 14.2 per cent to Rs 75.42 crore for the December 2019 quarter. Tata Elxsi on Monday said its net profit has increased 14.2 per cent to Rs 75.42 crore for the December 2019 quarter. Its revenue from operations rose over 4 per cent to Rs 423.43 crore for the said quarter from Rs 407 crore for the corresponding period a year ago, it added. (BL).
IT major Infosys reported a 23 per cent year-on-year rise in net profit for the quarter ended December 31, 2019. The company's net profit rose to Rs 4,466 crore in the third quarter of current fiscal compared to Rs 3,610 crore in the corresponding quarter of last fiscal. Infosys' revenue rose 7.95 per cent to Rs 23,092 crore in Q3 FY20, from Rs 21,400 crore in Q3 FY19. The IT firm revised FY20 revenue outlook upwards to 10 to 10.5 per cent in constant currency. The operating margin guidance was maintained in the range of 21 to 23 per cent. (ET).
Avenue Supermarts (D-Mart) on Saturday reported a 53.3 per cent year-on-year rise in standalone profit at Rs 394 crore compared with Rs 257 crore posted for the same quarter last year. Revenue for the quarter rose 23.90 per cent to Rs 6,752 crore compared with Rs 5,451 crore reported for the year-ago period. Ebitda rose to Rs 593 crore from Rs 453 crore year on year. Ebitda margin for the quarter came in at 8.8 per cent, a rise of 50 basis points over 8.3 per cent in December quarter of 2018. (ET).
Economy and Sector News
The renewable energy sector has made rapid strides under the Modi government with 50 GW plus of new capacity coming into the grid in the last five years. This is despite the doubts being raised over the government’s target of achieving of 175 GW by 2022. (BL).
Steel prices are set to increase by about ₹2,000 a tonne next month on the back of strong demand and a rise in raw material prices. This would be the fourth consecutive month that steel prices have increased. Early this month, steel companies had raised prices by ₹1,750, on the back of good demand from dealers and the steel consuming industries. (ET).
Soaring food prices, especially vegetable, pulses, fish and meat, pushed the consumer price inflation index (CPI) inflation in December 2019 to a disturbing level of 7.35 per cent, the highest print since July 2014 when CPI hit 7.39 per cent. Driven by the double-digit surge in food inflation at 14.12 per cent, the CPI inflation in December 2019 overshot the upper threshold of the Monetary Policy Committee’s band of 2-6 per cent by a significant margin. This is the third straight month this fiscal when the CPI came in much above the RBI’s medium-term target of 4 per cent, official data released on Monday showed. While retail inflation in November 2019 stood at 5.54 per cent (40 month high), the CPI for October was 4.62 per cent. Food inflation — which has close to 50 per cent weightage in CPI index — rose to 14.12 per cent in December as against (-) 2.65 per cent in same month 2018. It was 10.01 per cent in November 2019. Vegetable prices rose 60.5 per cent in December 2019 on a year-on-year basis. (BL).
Ankur Capital, an early-stage venture capital fund that invests in tech-focussed start-ups in agritech and healthcare, has achieved first close of its second fund at Rs.240 crore. It hopes to reach the targeted close of Rs.350 crore for the fund later this year. According to a press release, the CDC Group plc, UK’s impact investor and development finance institution, has invested in the second fund. Others investors include existing Limited Partners (LPs) such as the Dutch Good Growth Fund and SIDBI, which has put in money from its Fund of Funds Start-up programme. The fund also raised money from a number of domestic and international LPs. In more news, Bangalore International Airport Limited (BIAL) has entered into an agreement with KUNZ GmbH to manufacture, supply, commission and maintain specialised Disabled Aircraft Recovery Equipment (DARE) for the Kempegowda International Airport, Bengaluru (KIAB). (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 closed higher on Monday as market participants cheered news that the US would be removing China from a list of currency manipulators ahead of the pair's "phase one" trade deal later in the week. The Dow Jones Index closed at 28,907, up 83.28 points by 0.29%. The Standard & Poors 500 index closed at 3,288, up 22.78 points by 0.70%. The Nasdaq Composite Index closed at 9,274, up 95.07 points by 1.04%.

FTSE 100

UK markets moved higher on Monday as sterling fell below $1.30 amid growing rate cut expectations following the release of data showing that the UK economy grew at its weakest pace in seven years in November. The FTSE 100 index closed at 7,618, up 29.75 points by 0.39%.

 
 
Global Indices
13/01/2019 Clsg Chg%
Dow Jones 28,907 +0.29
NASDAQ 9,274 +1.04
FTSE 100 7,618 +0.39
Bovespa 117,325 +1.58
14/01/2020 Latest
(6:20AM IST)
Chg%
Nikkei 24,041 +0.80
Hang Seng 28,954 +1.11

Nikkei

Asian markets started trading early in the morning on Tuesday on a positive note as the investors watch the US markets closely. Nikkei is currently trading at 24,041, up 191.37 points by 0.80%.

Precious Metals

Gold prices on Monday marked their lowest finish since the first full trading day of the year, finding little haven-related interest as appetite for riskier assets lifts global equities, the U.S. dollar strengthened against the Japanese yen, and bond yields climbed.

Base Metals

The three-month copper price on the London Metal Exchange was higher at the close of trading on Monday January 13, settling at a nine-month high against moderate volumes traded, while aluminium futures stagnated despite tumbling exchange stocks.

Crude Oil

Oil futures fell for a fifth session in a row on Monday, with the U.S. benchmark at logging its lowest finish in almost six weeks as the immediate risk of a bigger U.S.-Iran conflict continued to fade, easing worries about potential global supply disruptions.

 
 
 

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Email: retailresearch@acm.co.in

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