Morning Notes
13th Mar, 2020
 

Trading Range:

Nifty opened gap down at 10040 on Thursday and made a high and low of 10041 and 9508 respectively before closing negative at 9590.

Review/Outlook:

For the day, support for Nifty exists at 9200 and 8900 levels whereas resistance for Nifty stands at 9800 and 10050 levels.

Review/Outlook:

Bank Nifty opened a gap down at 25176, made a high of 25223, low of 23536, and closed negative at 23971. For the day, support for Bank Nifty exists at 21700 and 20800 levels whereas resistance for Bank Nifty stands at 25000 and 25500 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 32,778 -8.18
Nifty 9,590 -8.30
BSE 200 4,042 -8.29
BSE Midcap 12,380 -7.84
BSE Smallcap 11,615 -8.72
Dow Jones 21,201 -9.99
NASDAQ 7,201 -9.43
 

DERIVATIVES INDICATORS FOR MAR 13, 2020:

NIFTY 9590.15 (-868.25) (-8.30%)
NIFTY MAR FUTURE 9546.60 (43.55 Points Discount)
NIFTY PCR - OI 0.90 (-0.17)
NIFTY OPEN INTEREST 1.89 Cr. (-3.05%)
INDIA VIX 41.16 (+30.45%)
NIFTY ROLLOVER 15%

NIFTY OPTIONS ACTIVITY (26-MAR SERIES)

CALL 9500 CE +3.43 lac Shares
CALL 10000 CE +5.92 lac Shares
PUT 9500 PE +10.32 lac Shares
PUT 9300 PE +4.95 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 13,633 -8.02
Bankex 27,598 -9.38
PSU 4,700 -10.87
Healthcare 12,249 -8.29
IT 13,119 -8.46
 
Market Turn Over (`cr)
Index 12/03 11/03
BSE Cash 3,288 3,669
NSE Cash 61,394 50,317
NSE F&O 2,632,978 1,425,247
BSE Delivery % 44.46 43.62
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 1.98 98.02
BSE 200 1.00 99.00
BSE 500 1.20 98.80
Total BSE 7.81 88.03
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 31.05 -1.43
Gold Rs./ 10 Gms 42206.00 -2.65
Silver Rs./ Kg 44139.00 -3.68
Rs.- US $ 74.57 +0.58
Rs.- Euro 83.35 -0.26
FII (Rs cr )
12/03* 11/03*
FIIs -3483.72 -7012.27
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    1,97,869.00     12,632.89    1,99,788.00     12,646.99    2,49,206.00     16,677.72    (14.10)
Index Options  81,82,138.00  4,89,939.26  81,72,119.00  4,89,798.59    8,78,069.00     60,985.97   140.67
Stock Futures    4,74,451.00     23,597.39    4,42,182.00     22,729.43  15,30,532.00     78,759.43   867.96
Stock Options    1,14,031.00       6,630.51    1,15,812.00       6,746.85       78,176.00       4,004.41  (116.34)
Total  89,68,489.00  5,32,800.05  89,29,901.00  5,31,921.86  27,35,983.00  1,60,427.53   878.19
Corporate News
The Coal India Ltd (CIL) board on Thursday approved payment of interim dividend for FY 2019-20 at Rs.12 a share of the face value of Rs.10 each. This will make the government richer by Rs.7,172 crore, which it will receive as dividend and dividend distribution tax. The company has fixed March 20 as the ‘record date’ for the dividend payment. (BL).
Power Finance Corporation (PFC) issued a Rs.1,404.37-crore interim dividend to the Centre for FY19-20. PFC is a Schedule-A Navratna Central Public Sector Enterprise. The interim dividend RTGS intimation bank advice was presented to RK Singh, Minister of State (Independent Charge) Power and New and Renewable Energy by Rajeev Sharma, Chairman and Managing Director of PFC, a company statement said. (ET).
Sterlite Power announced that the sale process of Sterlite Novo Estado Energia S A (Novo Estado) to ENGIE Transmissão de Energia S A was concluded, with all precedent conditions met. (BL).
Man Industries (India) Limited, one of the largest manufacturer and exporter of large diameter carbon steel line pipes have announced 20% interim dividend to its shareholders. The Board of Directors of the company at its Meeting held on March 12, 2020, have declared an interim dividend of 20% i.e. Rs1 per equity share of the face value of Rs5 each for the FY19-20. (ET).
State Bank of India (SBI) said in the filing that the Executive Committee of Central Board (ECCB) has approved the purchase of 725cr shares in Yes Bank at Rs10/share. (BL).
Economy and Sector News
With fall in vegetable prices, especially onion, the rate of retail inflation has fallen by over one percentage point in February. Though it is higher than the targeted level of inflation, there is a strong possibility of reduction in policy rates. However, there has been some improvement on the industrial sector front; it grew 2 per cent in January against near flat in December. Rate of retail inflation, as measured by the Consumer Price Index (CPI), slipped to 6.58 per cent in February from 7.59 per cent in January. For food, the rate saw a deeper decline, with the all India inflation rate down to 10.81 per cent in February from 13.63 per cent in January. As a result of the decline in the prices of vegetables, the rate of inflation came down to 31.6 per cent from over 50 per cent. (BL).
Swiss brokerage UBS on Thursday sharply cut its 2020-21 GDP growth forecast for India to 5.1 per cent on fears around the coronavirus outbreak and also weak credit growth domestically. The brokerage also cut its FY20 growth estimate marginally to 4.8 per cent. The GDP growth is set to slip to a decadal low of 5 per cent for FY20 as per official estimates and hopes of a revival are being pinned on the next fiscal. (ET).
India' s current account deficit (CAD) narrowed further in the October-December quarter on the back of a contraction in the trade deficit and rise in net services receipts, the central bank said on Thursday. The CAD declined to 0.2% of gross domestic product in the three months, the third quarter of the 2019/20 fiscal year, from 2.7% in the same period a year before. On a quarterly basis, it shrank from 0.9% of GDP in the second quarter. The RBI said net foreign direct investment at $10 billion in the third quarter was higher than the $7.3 billion in the same quarter last year while external commercial borrowing-related inflows stood at $3.2 billion compared with $2 billion a year earlier. (BL).
Financial markets worldwide are facing intense selling pressures on extreme risk aversion due to the spread of COVID-19 infections, compounded by the slump in international crude prices and a decline in bond yields in advanced economies. Flight to safety has led to spike in volatility across all asset classes, with several emerging market currencies experiencing downside pressures. Mismatches in US dollar liquidity have become accentuated across the world. On a review of current financial market conditions and taking into consideration the requirement of US Dollars in the market, it has been decided to undertake 6-month US Dollar sell/buy swaps to provide liquidity to the foreign exchange market. The swaps will be conducted through the auction route in multiple tranches. The auctions will be multiple price based, i.e., successful bids will be accepted at their respective quoted premiums. To begin with, an amount of USD 2 billion would be offered on March 16, 2020, RBI said. (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 tanked on Thursday, slamming the book on the longest-ever U.S. bull market after new travel restrictions to curb the coronavirus spread spooked investors and rattled world markets. The Dow Jones Index closed at 21,201, down 2,352.60 points by 9.99%. The Standard & Poors 500 index closed at 2,481 down 260.74 points by 9.51%. The Nasdaq Composite Index closed at 7,202, down 750.25 points by 9.43%.

FTSE 100

UK markets suffered its biggest one-day loss since 1987 on Thursday, after an exceedingly red day in equities, as concerns around the Covid-19 coronavirus pandemic reached boiling point. The FTSE 100 index closed at 5,237, down 639.04 points by 10.87%.

 
 
Global Indices
12/03/2020 Clsg Chg%
Dow Jones 21,201 -9.99
NASDAQ 7,202 -9.43
FTSE 100 5,237 -10.87
Bovespa 72,583 -14.78
13/03/2020 Latest
(4:45AM IST)
Chg%
Nikkei 18,560 -4.41
Hang Seng 24,309 -3.66

Nikkei

Asian share markets started trading early in the morning on Friday on a negative note as the investors will be closely watching the US markets. Nikkei is currently trading at 18,560, down 856.43 points by 4.41%.

Precious Metals

Gold futures fell sharply Thursday, settling at a nearly two-week low under $1,600 an ounce, as a selloff in the stock market sent traders scrambling to sell positions in the precious metal in a bid for cash.

Base Metals

The London Metal Exchange three-month price for nickel fell by more than 5% on Thursday March 12, a trading day that saw a 16,000-tonne rewarranting, with the price reaching a high of $12,495 per tonne then crashing to a low of $11,735 per tonne, before closing at $11,830 per tonne.

Crude Oil

Oil futures ended lower on Wednesday, pressured by U.S. government data reporting domestic crude supplies rose for a seventh week in a row, and by Saudi Arabia’s move to increase output capacity, as it intensifies a price war with Russia that sent crude prices tumbling to four-year lows this week.

 
 
 

Retail Research Desk:

Akhil Rathi D: 91 22 2858 3210
Hrishikesh Yedve D: 91 22 2858 3207
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.