Morning Notes
15th Jul, 2019
 

Trading Range:

Nifty opened gap up at 11601 on Friday and made a high and low of 11640 and 11539 respectively before closing negative at 11553.

Review/Outlook:

For the day, support for Nifty exists at 11480 and 11410 levels whereas resistance for Nifty stands at 11620 and 11680 levels.

Review/Outlook:

Bank Nifty opened gap up at 30790, made a high of 30871, low of 30548, and closed negative at 30601. For the day, support for Bank Nifty exists at 30400 and 30200 levels whereas resistance for Bank Nifty stands at 30800 and 31000 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 38,736 -0.22
Nifty 11,553 -0.26
BSE 200 4,827 -0.13
BSE Midcap 14,554 +0.41
BSE Smallcap 13,776 +0.16
Dow Jones 27,332 +0.90
NASDAQ 8,244 +0.59
 

DERIVATIVES INDICATORS FOR JUL 15, 2019:

NIFTY 11552.50 (-30.40) (-0.26%)
NIFTY JUL FUTURE 11544.35  (8.15 Points Discount)
NIFTY PCR - OI 1.15(-0.10)
NIFTY OPEN INTEREST 2.00Cr. (-1.76%)
INDIA VIX 11.99 (-3.79%)
NIFTY ROLLOVER 16%

NIFTY OPTIONS ACTIVITY (25-JUL SERIES)

CALL 11600 CE +2.35 lac Shares
CALL 11700 CE +2.82 lac Shares
PUT 11400 PE +1.94 lac Shares
PUT 11300 PE -1.56  lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 17,261 +1.84
Bankex 34,537 +0.64
PSU 7,537 +1.06
Healthcare 12,859 +0.82
IT 15,051 +0.11
 
Market Turn Over (`cr)
Index 12/07 11/07
BSE Cash 1,780 1,973
NSE Cash 33,225 29,915
NSE F&O 756,685 1,943,857
BSE Delivery % 43.39 41.64
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 49.50 49.50
BSE 200 55.22 44.28
BSE 500 52.50 46.51
Total BSE 44.18 50.08
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 60.21 +0.02
Gold Rs./ 10 Gms 34905.00 +0.59
Silver Rs./ Kg 38390.00 +0.73
Rs.- US $ 68.57 +0.03
Rs.- Euro 77.28 +0.08
FII (Rs cr )
12/07* 11/07*
FIIs -176.81 -459.66
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       37,609.00       2,810.31       35,145.00       2,639.37    2,46,755.00     20,067.81     170.94
Index Options  20,04,310.00  1,40,532.49  19,91,875.00  1,39,830.14    5,45,037.00     43,779.97     702.36
Stock Futures    1,70,755.00     10,823.52    1,64,319.00     10,527.50  13,80,095.00     86,875.68     296.02
Stock Options       90,202.00       5,690.08       89,787.00       5,699.82       67,375.00       4,041.85       (9.74)
Total  23,02,876.00  1,59,856.41  22,81,126.00  1,58,696.83  22,39,262.00  1,54,765.31  1,159.58
Corporate News
PVR Ltd is expanding in the distribution business of Indian films and expects a substantial jump in the operations of its arm PVR Pictures, said a top company official. (BL).
Hospitality firm Sarovar Hotels will open 16 properties across India by the end of this year, adding around 970 rooms to its portfolio as part of its expansion plans in the country, Sarovar Hotels Managing Director Ajay Bakaya said. (ET).
Tyre major CEAT lined up investment of Rs 3,500 crore to ramp up manufacturing capacity across its plants over the next three to four years, as per the company’s Annual Report for 2018-19. (BL).
Bharat Dynamics Ltd (BDL) is embarking on expansion by setting up new facilities besides increasing capacity of the existing unit in Visakhapatnam, according to Commodore Siddharth Mishra (Retd.), the Chairman and Managing Director. (ET).
Diversified conglomerate ITC Ltd is looking at an eight-fold jump in turnover from the new FMCG businesses, even as it plans investments in start-ups that could be strategic fits. (ET).
The pet foods market in the country could well be dominated by the dog foods segment, but the growing popularity of cats as pets among millennial “pet-parents” is making companies sit up and take notice. Reflecting the trend, Purina Petcare India, the pet food arm of Nestle SA, is looking to bring its global cat food brand Friskies to India. The Swiss major had set up its pet food subsidiary in India last year with the launch of its dog food brands — Supercoat and Pro Plan. (BS).
Lenders led by the State Bank of India (SBI) have filed a petition in the Supreme Court against the National Company Law Appellate Tribunal (NCLAT) judgment allowing at-par treatment of both financial and operational creditors in the Essar Steel case. (BL).
Renewable energy company Greenko Energy Holdings has signed agreements for a primary equity of $824 million, which includes a previously announced $495 million from an affiliate of GIC and by the Abu Dhabi Investment Authority (ADIA). (ET).
Default by a large financial services player on its debt instruments has forced Piramal Enterprises to shift its borrowing mix to longer-term funding sources, and significantly reduce dependence on commercial papers, a top company official has said. (BL).
State-owned engineering firm BHEL on Sunday said it has bagged a Rs.100 crore order from NTPC for setting up a 25 MW floating solar photovoltaic power plant at Simhadri in Andhra Pradesh. (BL).
Drug maker Lupin aims to launch its first biosimilar product and commercialise its first inhalation product in the United States (US) in the current fiscal. In more news, the United States Food and Drug Administration (USFDA) has issued five observations on a manufacturing unit of pharma major Dr Reddy’s Laboratories Ltd here. (BL).
Led by LIC, life insurers' collective new premium income jumped 94 per cent to Rs 32,241.33 crore in June this year, according to data from Insurance Regulatory and Development Authority. All the 24 life insurers had written new gross premium of Rs 16,611.57 in the same month a year ago. (ET).
Laurus Labs has `successfully’ completed the maiden US Food and Drug Administration (USFDA) audit for its Unit-4 without any observations and no form 483 was issued. (BL).
TVS Motor Company on Friday launched the country’s first ethanol-based motorcycle — the Apache RTR 200 Fi E100 — priced at Rs.1.20 lakh (ex-showroom). (BL).
Corporate Quarterly Earnings
Domestic steel giant Tata Steel Sunday said its consolidated steel production rose by 9.18 per cent to 7.61 million tonnes (MT) in the first quarter of the current fiscal. The company's output in the year-ago period was at 6.97 MT, Tata Steel Ltd said in a BSE filing. During April-June 2019, Tata Steel India produced 4.37 MT as against 3.64 MT in the same quarter a year ago. (BL).
Mumbai-based Avenue Supermarts, which owns and operates D-Mart stores, on Saturday reported a 31.83 per cent year-on-year (YoY) jump in consolidated net profit at Rs 323 crore for June quarter compared with Rs 245 crore in the same quarter last year. Total consolidated revenue for the quarter rose 27.07 per cent to Rs 5,815 crore from Rs 4,576 crore in the same period last year. Earnings before interest, tax, depreciation and amortisation (Ebitda) for the food & grocery retailer came in at Rs 597 crore in the first quarter compared with Rs 423 crore in the year-ago. Ebitda margin improved to 10.3 per cent from 9.2 per cent YoY. (ET).
Mangaluru headquartered private sector Karnataka Bank posted an all-time high quarterly net profit of Rs 175 crore in the April-June quarter, registering 7.5 per cent growth year-on-year. The business turnover of the bank touched Rs 1,21,340 crore as on June 30, recording 10 per cent growth on a year-on-year basis. Gross NPAs declined to 4.55 per cent compared to 4.72 per cent reported in the corresponding quarter of the previous year as of June 30, according to a press release from the bank. (BL).
Infosys Constant currency (cc) revenue grew by 2.8% qoq and US Dollar revenue grew by 2.3% qoq and 10.6% yoy to $3,131mn. INR revenue grew by 1.2% qoq and 1.4% yoy to Rs21,803cr. EBIT stood at Rs4,471cr, down 3.2% qoq and 1.5% yoy. EBIT margin contracted by 93bps qoq and 321bps yoy to 20.5%. PAT declined by 6.8% qoq but up 5.1% yoy to Rs3,798cr. (BS).
IndusInd Bank’s Q1FY20 NII has improved by 34% yoy to Rs2,844cr against Rs2,122cr in the same quarter last year. The net profit rose 38.3% yoy to Rs1,432cr against Rs1,036cr yoy. GNPA for Q1FY20 came in at 2.15% against 2.1% qoq, an increase of 5 bps. NNPA for the quarter came at 1.23% as against 1.2% qoq, an increase of 3bps. Provisions made during the quarter are at Rs430.6cr as against Rs 1,561cr yoy. Capital adequacy ratio came in at 11.9% as against 14.16% qoq. The banks total customer stood at 2.1cr including Bharat Financial customers. (BL).
Economy and Sector News
Okotech, a uPVC brand from Aparna Enterprises Ltd, has launched three new window profiles — Villa, Tilt-and-Turn and Arch Windows. Aimed at enhancing the aesthetics of living spaces, the collection is made of lead-free uPVC compound and manufactured using world class extrusion machinery from Germany. (BL).
Retail inflation for June 2019 rose by 3.18% yoy vs. 3.05% yoy in May. Food prices, which is a gauge to measure changes in kitchen budgets, grew 2.1% in June compared to 1.83% in May. Inflation rate in cereals and products stood at 1.3% in June as against 1.24% in May, while vegetable inflation stood at 4.66% in June as against 5.46% in May, the government added. India’s Industrial Production (IIP) with base 2011-12 for the month of May 2019 stands at 133.6, which is 3.1% higher as compared to the level in the month of May 2018. The cumulative growth for the period April-May 2019 over the corresponding period of the previous year stands at 3.7%. (ET).
Suzuki Motorcycle India Pvt Ltd (SMIPL) on Friday launched the all-new version of its Gixxer model priced at ₹1,00,212 (ex-showroom Delhi). The all new Suzuki Gixxer is powered by a 155cc, four-stroke, single-cylinder engine delivering power of 14.1 PS and is also equipped with ABS (anti-lock braking system), SMIPL said in a statement. In more news, Indian Oil Corporation Ltd (IOC) has hired a foreign flagged very large crude carrier (VLCC) at a day rate of $31,950 for seven years. This has upsetting the calculations of the Government to use such long-term contracts to help India expand its shipping capacity to haul more oil cargoes for strategic reasons. (BL).
IndiGo Airlines confirmed on Friday it had received four show-cause notices from the Directorate General of Civil Aviation (DGCA) issued to senior officials in the airline’s Flight Operations and Safety Department. “This is under review by the company,” the airline 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 closed at a record high for a second straight day on Friday, and recorded a second consecutive weekly advance, as investors remained cautiously optimistic about prospects for easier monetary policy, despite a bigger-than-projected rise in a key inflation measure. The dollar retreated for a third day. The Dow Jones Index closed at 27,332, up 243.95 points by 0.90%. The Standard & Poors 500 index closed at 3,014, up 13.86 points by 0.46%. The Nasdaq Composite Index closed at 8,244, down 48.10 points by 0.59%.

FTSE 100

UK markets was dragged lower on Friday by continued strength in Sterling at the end of the week, albeit only marginally, amid building expectations for rate cut across the Pond, even as Wall Street's main market gauges nudged higher into record territory. The FTSE 100 index closed at 7,506, down 3.85 points by 0.05%.

 
 
Global Indices
12/07/2019 Clsg Chg%
Dow Jones 27,332 +0.90
NASDAQ 8,244 +0.59
FTSE 100 7,506 -0.05
Bovespa 103,906 -1.18
15/07/2019 Latest
(7:47AM IST)
Chg%
Nikkei 21,647 +0.02
Hang Seng 28,517 +0.30

Nikkei

Asian shares started the week on a softer note on Monday after posting their first weekly decline since early June, while the dollar was on the defensive ahead of key economic data from China. Nikkei is currently trading at 21,647, up 4.34 points by 0.02%.

Precious Metals

Gold was a touch higher at 1,416.14 an ounce, not far from a recent six-year top of $1,438.60 on Monday.

Base Metals

The three-month prices of base metals traded on the London Metal Exchange universally rose during the morning session on Friday July 12, buoyed by a slew of positive economic data released from China.

Crude Oil

U.S. crude fell 6 cents to $60.15 a barrel. Brent crude was off 7 cents at $66.65 on Monday.

 
 
 

Retail Research Desk:

Akhil Rathi D: 91 22 2858 3210
Hrishikesh Yedve D: 91 22 2858 3207
Vrinda Aditya D: 91 22 2858 3209
Neeraj Sharma D: 91 22 2858 3208
Rohan Gawale D: 91 22 2858 3213
Dhiral Shah D: 91 22 2858 3211

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 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.

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.