Morning Notes
14th Aug, 2019
 

Trading Range:

Nifty opened gap up at 11139 on Tuesday and made a high and low of 11146 and 10902 respectively before closing negative at 10926.

Review/Outlook:

For the day, support for Nifty exists at 10870 and 10800 levels whereas resistance for Nifty stands at 10980 and 11030 levels.

Review/Outlook:

Bank Nifty opened gap down at 28357, made a high of 28359, low of 27684, and closed negative at 27729. For the day, support for Bank Nifty exists at 27500 and 27300 levels whereas resistance for Bank Nifty stands at 27900 and 28000 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 36,958 -1.66
Nifty 10,926 -1.65
BSE 200 4,556 -1.78
BSE Midcap 13,363 -2.25
BSE Smallcap 12,519 -1.42
Dow Jones 26,279 +1.44
NASDAQ 8,016 +1.95
 

DERIVATIVES INDICATORS FOR AUG 14, 2019:

NIFTY 10925.85 (-183.80) (-1.65%)
NIFTY AUG FUTURE 10925.15  (0.70 Points Discount)
NIFTY PCR - OI 0.96(-0.28)
NIFTY OPEN INTEREST 2.00Cr. (-0.58%)
INDIA VIX 17.77 (+12.20%)
NIFTY ROLLOVER 12%

NIFTY OPTIONS ACTIVITY (29-AUG SERIES)

CALL 11200 CE +3.36 lac Shares
CALL 11000 CE +4.87 lac Shares
PUT 10900 PE -2.08 lac Shares
PUT 10800 PE -3.75 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 15,438 -3.88
Bankex 31,339 -2.42
PSU 6,430 -2.36
Healthcare 12,578 -0.91
IT 15,503 -2.54
 
Market Turn Over (`cr)
Index 13/08 09/08
BSE Cash 2,365 3,471
NSE Cash 37,388 35,169
NSE F&O 1,364,010 868,188
BSE Delivery % 39.40 37.42
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 9.90 90.10
BSE 200 14.43 85.57
BSE 500 19.80 79.80
Total BSE 31.30 63.32
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 56.79 -0.54
Gold Rs./ 10 Gms 37775.00 -1.22
Silver Rs./ Kg 43117.00 -1.26
Rs.- US $ 71.12 -0.28
Rs.- Euro 79.48 -0.66
FII (Rs cr )
13/08* 09/08*
FIIs -746.34 -1065.59
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       51,600.00       3,613.89       52,037.00       3,766.50    2,73,446.00      21,224.82  (152.61)
Index Options  38,78,203.00  2,51,360.55  38,63,649.00  2,50,366.39    7,18,984.00      54,748.07   994.16
Stock Futures    2,61,784.00     14,287.21    2,89,829.00     15,257.19  15,75,214.00      90,031.23  (969.98)
Stock Options    1,58,101.00       9,060.20    1,56,502.00       8,964.78       96,161.00        5,292.22     95.42
Total  43,49,688.00  2,78,321.85  43,62,017.00  2,78,354.86  26,63,805.00   1,71,296.34    (33.01)
Corporate News
Defence PSU Bharat Electronics Ltd’s new facility is expected to turn around the fortunes of the company’s Navi Mumbai unit. (BL).
Brazil sugar-ethanol mill maker Dedini IndŴstrias de Base said on Monday it has signed a cooperation agreement with India's Praj Industries to sell equipment for ethanol production, including technologies for corn-based biofuel. (ET).
Bharti Enterprises has appointment Rajesh Sud as Managing Director – Financial Services. He will report to Sunil Bharti Mittal, Founder and Chairman, Bharti Enterprises. (BL).
Anil Ambani-led Reliance Capital is in talks with multiple investors to sell its remaining 11 per cent stake in Reliance Nippon Life AMC (RNAM). According to sources, RCap has initiated talks with Blackstone, KKR, Brookfield, Mubadala, TAA Capital, and General Atlantic for the stake-sale. When contacted, RCap declined to comment. (ET).
Energy Efficiency Services Limited (EESL), a joint venture of four public sector enterprises under the Union Ministry of Power, has announced the expansion of its Super- Efficient Air Conditioner (AC)Programme to Bengaluru and five more cities. (ET).
FMCG major Procter & Gamble in partnership with WE Hub, a state government initiative for women entrepreneurs, on Tuesday selected three start-ups to pilot their ideas. (BL).
IL&FS Engineering & Construction Co has received an arbitration award in favour of joint venture with Gayatri Projects for Rs.914.3 crore. (BS).
Indian Oil Corporation Limited (IOCL) will be making investments of Rs. 2 lakh crore in the next five to seven years to ‘provide comprehensive energy solutions to diverse user groups. (ET).
Siemens Gamesa has secured orders from two contracts to supply 453 megawatt (MW) and plans to install 206 SG 2.2-122 wind turbines for its first projects with Alfanar in the country. (BS).
Pidilite Industries, a leading manufacturer of adhesives, sealants and construction chemicals in India, has entered into a joint venture with Corporacion Empresarial Grupo Puma SL (Grupo Puma), a leading technical mortars manufacturer based in Spain to establish a joint venture company in India. (BL).
Hindustan Petroleum Corporation (HPCL) on Tuesday finally recognised its majority owner ONGC as its promoter in public filings, following a harsh directive from the market regulator last week. The state-owned company had ignored directives from the government as well as the Securities and Exchange Board of India (Sebi), forcing the latter to set a deadline of August 13 and warn of “appropriate action” if it failed. This forced the HPCL management to act quickly. (BS).
Corporate Quarterly Earnings
Apollo Hospitals reported a 69 per cent increase in net profit to Rs.57 crore for the first quarter ended June 30, against Rs.34 crore for the corresponding quarter last year. Revenue grew 16 per cent to Rs.2,572 crore (Rs.2,210 crore). (BL).
The downturn in the auto industry has impacted the country’s largest auto parts’ maker, Bosch Ltd whose net profit has nosedived 35 per cent to Rs.279.95 crore for the quarter ended June 2019. The company also said it has set up a provision of Rs.82 crore towards restructuring, reskilling and redeployment, which has been disclosed as an exceptional item for the quarter. The total revenues decreased 13.5 per cent to Rs.2,779 crores during the quarter. (ET).
Pennar Industries posted a profit of Rs.16.5 crore for the first quarter ended June 30, up 25.8 per cent over Rs.13.1 crore logged in the same period of the previous fiscal. The company’s net revenue of Rs.541.4 crore was up 16 per cent against Rs.466.5 crore posted in the same period last year. During the first quarter, Pennar Industries received steady orders across business verticals and the pre-engineered building systems segment saw orders worth Rs.554 crore as of June 2019. (ET).
RITES Ltd, a transport engineering consultancy and engineering firm, has recorded profit after tax of Rs.102 crore for the quarter ended June 30, up 11.3 per cent from the year ago period. The company’s total revenue, on a consolidated basis, was up 46.8 per cent at Rs.573 crore. Operating revenue was up 61.8 per cent at Rs.538 crore, according to a release. (BL).
Sun Pharma Consolidated revenue grew by 15.7% yoy and 17.2% qoq to Rs 8,259cr. EBITDA came in at Rs1,996cr, up 24.2% yoy and 96.3% qoq. EBITDA margin expanded by 166bps yoy and 973bps qoq to 24.2%. Reported PAT grew by 31.2% yoy to Rs1,387cr. (ET).
State owned miner, NMDC Limited posted a 21% rise in standalone net profit to Rs 1179.28 crore in Q1FY20 up compared to a net of Rs 975.27 crore reported in Q1FY19. Total income went up to Rs 3386.56 crore in the quarter under review an increase of 33% over Rs 2547.13 crore in the same period last year on higher international prices of iron ore. Profit before tax (PBT) went up 30% to Rs 1913.16 in Q1FY20 against Rs 1476.65 crore in Q1FY19. (ET).
Mining major Coal India on Tuesday reported 22.3 per cent rise in consolidated profit for the June quarter at Rs 4,629.87 crore. The state-run firm had posted a net of Rs 3,786.40 crore in the year ago period. The company’s revenue inched up 3.6 per cent to Rs 24,939 crore from Rs 24,070 crore on a yearly basis. Ebitda for the June quarter came in at Rs 6,611 crore, up 16.9 per cent from Rs 5,654 crore last year. Ebitda margins also improved to 26.5 per cent from 23.5 per cent in the same quarter last year. (BL).
Oil and Natural Gas Corporation (ONGC) on Tuesday posted 24.40 per cent year-on-year (YoY) fall in consolidated net profit at Rs 7,042.69 crore for the quarter ended June 30. The oil major had reported a profit of Rs 9,317.66 crore in the corresponding quarter last year. Consolidated revenue from operations inched lower by 0.91 per cent to Rs 1.09 lakh crore in Q1FY20 over Rs 1.10 lakh crore in Q1FY19. (ET).
Auto components major Bharat Forge on Tuesday posted a 28 per cent decline in its consolidated net profit at Rs 171.92 crore for the first quarter ended June 30, 2019, on account of lower income. The company had reported a net profit of Rs 238.74 crore in the same period of the previous fiscal. Total income during the quarter under review stood at Rs 2,372.79 crore, down 3.31 per cent as against Rs 2,454.07 crore in the corresponding period a year ago period, Bharat Forge said in a BSE filing. (BS).
Economy and Sector News
Retail inflation eased marginally in July to 3.15 per cent over the previous month despite costlier food items, said a government data released on Tuesday evening. The retail inflation based on Consumer Price Index (CPI) was 3.18 per cent in June and 4.17 per cent in July 2018. As per the data released by the Central Statistics Office (CSO), the inflation in the food basket was 2.36 per cent in July, marginally up from 2.25 per cent in the previous month. (BL).
About 82 per cent of the teas offered for sale at Sale 32 auctions of Coonoor Tea Trade Association was sold with the average price remaining flat at around Rs.80.78 a kg. (ET).
The Cement Manufacturers Association (CMA) and the State-owned Singareni Collieries Company Ltd held discussions seeking to improve offtake of coal by the cement industry. (BL).
Auto component manufacturer Varroc Engineering Ltd has entered into an agreement to acquire 74 per cent stake in the Pune-based connected vehicle solution provider CarIQ Technologies. The financial terms of the deal were not immediately disclosed. (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 soared on Tuesday, with major indices almost completely erasing the serious losses seen during the previous session after Washington removed several items from its list of new Chinese tariffs. The Dow Jones Index closed at 26,280, up 372.54 points by 1.44%. The Standard & Poors 500 index closed at 2,826, up 43.23 points by 1.50%. The Nasdaq Composite Index closed at 8,016, up 152.95 points by 1.95%.

FTSE 100

UK markets reversed early loses on Tuesday as investors after the US administration dialed back on some of its trade tariff threats against Chinese goods and digested the latest batch of UK jobs data showing wage growth rising at its fastest clip since 2008. The FTSE 100 index closed at 7,251, up 24.18 points by 0.33%.

 
 
Global Indices
13/08/2019 Clsg Chg%
Dow Jones 26,280 +1.44
NASDAQ 8,016 +1.95
FTSE 100 7,251 +0.33
Bovespa 103,299 +1.36
14/08/2019 Latest
(5:56AM IST)
Chg%
Nikkei 20,684 +1.12
Hang Seng 25,281 -2.10

Nikkei

Asian shares started trading in the positive on Wednesday in early morning trading as investors will be watching the US markets closely. Nikkei is currently trading at 20,684, up 228.17 points by 1.12%.

Precious Metals

Gold futures ended lower on Tuesday, falling sharply from their highest intraday levels in more than six years, after the U.S. announced that it would delay tariffs on some Chinese goods and scheduled further talks in an effort to resolve the trade dispute between the two nations.

Base Metals

Zinc’s three-month price on the London Metal Exchange was higher at the close of trading on Tuesday August 13, appreciating by around 2.6% and settling above the $2,300 per tonne level in a continuing recovery, while strong buying in nickel saw its outright price closed in on the $16,000 per tonne resistance level.

Crude Oil

The American Petroleum Institute reported late Tuesday that U.S. crude supplies rose by 3.7 million barrels for the week ended Aug. 9, according to sources.

 
 
 

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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
Email: retailresearch@acm.co.in

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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 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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