Morning Notes
14th Nov, 2019
 

Trading Range:

Nifty opened flat to negative at 11908 on Wednesday and made a high and low of 11947 and 11823 respectively before closing negative at 11840.

Review/Outlook:

For the day, support for Nifty exists at 11790 and 11740 levels whereas resistance for Nifty stands at 11900 and 11950 levels.

Review/Outlook:

Bank Nifty opened gap down at 31085, made a high of 31198, low of 30488, and closed negative at 30542. For the day, support for Bank Nifty exists at 30200 and 30000 levels whereas resistance for Bank Nifty stands at 30800 and 31000 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 40,116 -0.57
Nifty 11,840 -0.61
BSE 200 4,955 -0.67
BSE Midcap 14,660 -0.77
BSE Smallcap 13,345 -1.13
Dow Jones 27,784 +0.33
NASDAQ 8,482 -0.05
 

DERIVATIVES INDICATORS FOR NOV 14, 2019:

NIFTY 11840.45 (-73.00) (-0.61%)
NIFTY NOV FUTURE 11863.25 (22.80 Points Premium)
NIFTY PCR - OI 1.09(-0.19)
NIFTY OPEN INTEREST 1.63Cr. (+1.73%)
INDIA VIX 16.46 (+1.31%)
NIFTY ROLLOVER 5%

NIFTY OPTIONS ACTIVITY (28-NOV SERIES)

CALL 12000 CE +1.49 lac Shares
CALL 11900 CE +2.04 lac Shares
PUT 11800 PE -0.16 lac Shares
PUT 11700 PE -0.28 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 18,271 -0.10
Bankex 34,586 -1.91
PSU 6,896 -2.07
Healthcare 12,957 -1.29
IT 15,158 +0.17
 
Market Turn Over (`cr)
Index 13/11 11/11
BSE Cash 2,676 2,082
NSE Cash 41,639 33,580
NSE F&O 1,370,347 912,703
BSE Delivery % 61.27 50.65
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 18.81 81.19
BSE 200 25.37 74.63
BSE 500 27.15 72.46
Total BSE 34.37 59.90
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 57.12 +0.32
Gold Rs./ 10 Gms 38097.00 +1.00
Silver Rs./ Kg 44534.00 +1.47
Rs.- US $ 72.19 +0.56
Rs.- Euro 79.47 +0.52
FII (Rs cr )
13/11* 11/11*
FIIs +1579.98 +5334.01
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       48,432.00       3,617.89       51,238.00       3,789.71    1,99,753.00     16,636.88  (171.82)
Index Options  42,69,883.00  2,94,384.48  42,65,643.00  2,94,233.03    6,35,038.00     52,038.55   151.45
Stock Futures    2,24,900.00     12,593.78    2,37,795.00     12,981.37  15,60,150.00     90,846.25  (387.59)
Stock Options       94,819.00       5,457.42       95,792.00       5,532.84       85,924.00       4,836.13    (75.42)
Total  46,38,034.00  3,16,053.57  46,50,468.00  3,16,536.95  24,80,865.00  1,64,357.81  (483.38)
Corporate News
For Bajaj Auto, it is going to be more than just a homecoming for the Chetak, which debuts in its new avatar as an electric scooter in January. (BL).
KEC International, an RPG Group Company, has bagged new orders of Rs. 2,255 crore across urban transport, railways and Transmission and Distribution (T&D) businesses. The infrastructure EPC provider in a statement said that it has won T&D projects worth Rs 885 crore. This includes 400 kV transmission line and substation orders from a Power Grid Corporation of India (PGCIL) entity under Tariff Based Competitive Bidding (TBCB), a 765 kV transmission line project from Tamil Nadu Transmission Corporation Limited (TANTRANSCO) and 220 kV GIS Substation project along with associated overhead lines and cable works from Karnataka Power Transmission Corporation Limited (KPTCL). (ET).
State-owned NBCC and Suraksha Realty have been asked to submit fresh bids to acquire debt-laden Jaypee Infratech in an ongoing insolvency process, sources said. (BL).
FMCG maker ITC Ltd will pick up a 33.42 per cent stake in Bengaluru-based start-up Delectable Technologies Pvt Ltd, a vending machine maker. The all-cash deal will see ITC pay “a maximum of ₹7.50 crore in four tranches over a period of 12 months”. (ET).
The Securities and Appellate Tribunal (SAT) will on Wednesday hear an appeal filed by Reliance Industries Ltd (RIL) against market regulator SEBI, in a matter involving a ban on the company from trading in the derivatives segment, imposed in relation to violations during a deal involving Reliance Petroleum. SEBI had also ordered disgorgement of Rs.2,000 crore on RIL, meaning the company was suppose to deposit that amount with the regulator for distribution to investors who suffered losses in market due to RIL. (BS).
The Board of troubled power equipment maker CG Power has approved the sale of its freehold land to Evie Real Estate Private Limited for Rs 280 crore. In a filing to the exchanges, CG power said that as part of its asset optimisation initiative, it has entered into a definitive agreement with Evie. The land is in Kanjurmarg, a suburb in north-east Mumbai had been classified as “Asset held for Sale”, in accordance with the accounting standards. (ET).
Pitti Engineering has bagged Rs.750 crore orders from GE India to supply traction motor-related products and other ancillaries to be used in locomotives being made for Indian Railways. (ET).
The resolution professional (RP) of Reliance Communications (RCom) has extended the deadline for submission of bids for the bankrupt company to next Friday after only two bidders, Bharti Group and Varde Partners, submitted bids at the close of the previous deadline of November 11, according to two bankers. (ET).
Quarterly Earnings
RITES Ltd on Wednesday posted two-fold increase in consolidated profit at Rs 237.21 crore for the quarter ended September 30, 2019. The company had posted a consolidated profit of Rs 111.87 crore in the year-ago period, RITES Ltd said in a filing to the BSE. The consolidated total revenue increased to Rs 887.86 crore in the July-September period as against Rs 477.73 crore in the year-ago period. (BL).
State-owned MMTC on Wednesday reported a loss of Rs 47.78 crore in the second quarter ended September 30, mainly due to lower income. The company had posted a consolidated net profit of Rs 36.92 crore in the corresponding quarter previous fiscal, a regulatory filing showed. It had a total income of Rs 6,787.19 crore in the July-September quarter, compared to Rs 7,434.65 crore in the year-ago period. (BS).
Adani Power (APL) on Wednesday said its consolidated net profit nosedived to Rs 3.88 crore in the quarter ended September 30, mainly due to a fall in revenue from operations. It had clocked a net profit of Rs 386.89 crore during the corresponding period a year ago, the company said in a regulatory filing. Sequentially, the firm had reported a consolidated loss of Rs 263.39 crore during the June 2019 quarter. The country's largest private sector thermal power producer's total revenue from operations in the September 2019 quarter fell to Rs 5,915.69 crore, compared with Rs 7,104.22 crore a year ago. (BL).
ABB India's standalone net profit more than doubled to Rs 79 crore in the quarter ended September 30, 2019, mainly due to higher revenues. The company follows January to December financial year. ABB India had posted a net profit of Rs 36 crore in the quarter ended September 30, 2018, a BSE filing said. Total revenue of the company rose to Rs 1,746 crore in July-September from Rs 1,492 crore in the year-ago quarter. (ET).
Adani Green Energy on Wednesday posted a consolidated net profit of Rs 102 crore profit for the September quarter of 2019-20. The company reported a loss of Rs 188 crore in the year-ago period, a BSE filing said. Total income rose to Rs 711.96 crore in the second quarter from Rs 458.89 crore a year ago. (BL).
SpiceJet said that their losses during the second quarter of the current fiscal has widened over last year to Rs 462.6 Crore as against losses of Rs 389.4 during the same period last year. Losses widened despite airline registering a 52% rise in second quarter operational revenue to Rs 2,845.3 crore as it added more destinations and expanded its fleet of passenger and freighter aircraft. SpiceJet also said that the airline’s losses were higher due to new accounting standard norms and grounding of Boeing 737 MAX. (ET).
State-owned Hindustan Aeronautics on Wednesday reported a growth of 32 per cent on revenue from operations to Rs 3,451 crore for the quarter ended September this year. The company had reported revenue of Rs 2,610 crore in July - September quarter of the previous fiscal. (BL).
Dollar Industries reported a lower consolidated net profit of Rs 13.65 crore for the second-quarter (Q2) ended September 30, 2019, compared to Rs 19.52 crore profit clocked in the corresponding period previous fiscal. While revenue from operations was marginally up at Rs 243.24 crore in the quarter under review from Rs 242.78 crore in the corresponding previous period, profit before tax in Q2 of the current fiscal dipped to Rs 16.36 crore compared to Rs 30.19 crore registered in the corresponding previous period, the company's media statement stated. (BS).
KIOCL Ltd (formerly Kudremukh Iron Ore Company Ltd), a Central public sector undertaking under the Union Steel Ministry, recorded a profit after tax of Rs.4.07 crore in the second quarter of 2019-20 as against a profit of Rs.49.52 crore in the corresponding period of previous fiscal. The total revenue of the company stood at Rs.386.04 crore (Rs.450.02 crore) during Q2. Of this, the revenue from operations was at Rs.361.22 crore (Rs.425.42 crore) during the period.. (ET).
Aster DM Healthcare, one of the largest private healthcare service providers, has registered a profit after tax of Rs 27 crore in Q2 of FY20. This represents a year-on-year increase of 118 per cent from a PAT of Rs 13 crore registered in the same quarter last year. The revenue from operations recorded an increase of 14 per cent reaching Rs 2,087 crore on sustained organic growth from its existing operations that includes 25 hospitals, 116 clinics and over 238 pharmacies in nine countries, including India. (BL).
Coffee Day Enterprises Ltd (CDEL) has reported a net profit of Rs.1,509 crore for the first quarter mainly due to an exceptional gain of Rs.1,659 crore on account of sale of equity stake in IT services company Mindtree to L&T. The board of directors had earlier postponed the declaration of results due to the sudden demise of the company’s founder V.G. Siddhartha. Revenues for the quarter were down 2 per cent to Rs.942 crore. The company’s EBITDA was up 817 per cent at Rs.1,879 crore. The board on Wednesday approved and authorised Malavika Hegde or Jayaraj Hobli, Chief Financial Officer of Coffee Day Global Ltd (CDGL), to finalise the appointment of required agencies for conducting financial, legal and commercial due diligence for the divestment of stake in CDGL. (BL).
Daimler India Commercial Vehicles (DICV) has announced what it calls an industry-first longest duration extended warranty for all of its BS-IV compliant heavy-duty and medium-duty trucks. At up to 8 years / 8 lakh km, the warranty is of the longest duration offered in the entire CV industry, according to a statement. (BS).
Pennar Industries Limited (PIL) has posted a net profit of Rs 23.5 crore for the second quarter ended September 30, 2019, up 85.62 per cent over Rs 12.7 crore it logged for the corresponding quarter of previous fiscal. PIL posted a consolidated net revenue of Rs 579.95 crore for Q2 FY2020, up 11.92 per cent over Rs 518.17 of second quarter of last fiscal. It posted a profit of Rs 40.02 crore for the first half, up 47.95 per cent over Rs 27.05 crore it logged previous year sin H1. (ET).
Eveready Industries, the country’s largest dry-cell battery maker, saw an over 25 per cent decline in standalone net profit to Rs.18.38 crore for the quarter ending September 30, 2019. Net profit in the year-ago-period stood at Rs.24.66 crore. According to the company, the year-ago-period saw a windfall credit of approximately Rs.5 crore that was on account of reversals for wage provisions of its closed Chennai manufacturing unit. Total income during the quarter under review was Rs.365 crore, down by 7 per cent, year-on-year. The turnover in lighting segment dipped 20 per cent dip to Rs.63 crore, while in the appliance segment, it stood at Rs.15.5 crore, down 41 per cent. (BL).
Economy and Sector News
Sharper focus on profitability, wider distribution of products and bets on premium products by beverage major Coca-Cola have helped the Indian bottling arm, Hindustan Coca-Cola Beverages Pvt Ltd (HCCB) to get back into the black in FY19 after two years. In more news, Sharper focus on profitability, wider distribution of products and bets on premium products by beverage major Coca-Cola have helped the Indian bottling arm, Hindustan Coca-Cola Beverages Pvt Ltd (HCCB) to get back into the black in FY19 after two years. (BL).
The economic slowdown seems to have gripped households, too, as the number of consumers who think they will spend less on goods and services has gone up. A Reserve Bank of India (RBI) survey has sharply cut the forecast of real private final consumption expenditure (PFCE) growth, reflecting lower household demand as indicated by moderation in the production of consumer durables. The forecast of real PFCE growth has been revised sharply down by 250 basis points from 8 per cent in the May 2019 round of the RBI’s survey of professional forecasters to 5.5 per cent in the September 2019 round. (ET).
After remaining within Reserve Bank of India's (RBI) target of 4 per cent for 14 consecutive months, the Consumer Price Index (CPI)-based inflation in October 2019 came in at sixteen months high of 4.62 per cent on higher food prices. The latest CPI print was higher than the retail inflation level of 3.38 per cent recorded in October 2018. It was also higher than the 3.99 per cent recorded in September 2019. (BL).
Crude oil price is facing downward pressure with the OPEC World Outlook assessing more US shale production as well as the recent discovery announced by Iran. According to Regina Mayor, Global Sector Head and US National Sector Leader of Energy & Natural Resources, KPMG in the US, the outlook for crude price remains bearish. in more news, the underlying loan pools in ICRA rated mortgage-backed securitisation (MBS) transactions continue to exhibit stellar performance with average collection ratios at around 99% as of August 2019. The strong collection performance has led to delinquencies to also remain low for such pools. In October 2019, ICRA downgraded the ratings of three MBS pools to [ICRA]D signifying a default in meeting timely payout obligations to the investors. Even for these transactions, the collection ratios for the underlying pool contracts pertaining to September 2019 were healthy - averaging around 99%. (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 at new records Wednesday, helped by a jump in Disney’s stock price, as a five week rally rolled on. The Dow Jones Index closed at 27,783, up 92.10 points by 0.33%. The Standard & Poors 500 index closed at 3,094, up 2.20 points by 0.07%. The Nasdaq Composite Index closed at 8,482, down 3.99 points by 0.05%.

FTSE 100

UK markets ended the day slightly in the red on Wednesday after an eagerly-awaited speech by US President Trump left investors disappointed, while escalating unrest in Hong Kong also weighed on the mood. The FTSE 100 index closed at 7,351, down 14.23 points by 0.19%.

 
 
Global Indices
13/11/2019 Clsg Chg%
Dow Jones 27,783 +0.33
NASDAQ 8,482 -0.05
FTSE 100 7,351 -0.19
Bovespa 106,059 -0.65
14/11/2019 Latest
(4:53AM IST)
Chg%
Nikkei 23,319 -0.85
Hang Seng 26,571 -1.82

Nikkei

Asian stocks started trading early in the morning on Thursday on a positive note as the investors will be watching the markets closely. Nikkei is currently trading at 23,319, down 200.14 points by 0.85%.

Precious Metals

Dec. gold settles at $1,463.30/oz, up $9.60, or 0.7% on Wednesday.

Base Metals

The three-month zinc price on the London Metal Exchange continued its sell-off at the close of trading on Wednesday November 13, recording moderate turnover, while tin’s outright price teased a break below nearby support.

Crude Oil

Oil futures ended higher on Wednesday, with prices recouping most of the losses they suffered over the past two trading sessions.

 
 
 

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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.

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