Morning Notes
13th Dec, 2019
 

Trading Range:

Nifty opened gap up at 11944 on Thursday and made a high and low of 12005 and 11934 respectively before closing positive at 11972.

Review/Outlook:

For the day, support for Nifty exists at 11930 and 11880 levels whereas resistance for Nifty stands at 12020 and 12100 levels.

Review/Outlook:

Bank Nifty opened gap up at 31357, made a high of 31711, low of 31352, and closed positive at 31665. For the day, support for Bank Nifty exists at 31500 and 31300 levels whereas resistance for Bank Nifty stands at 31900 and 32100 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 40,582 +0.42
Nifty 11,972 +0.52
BSE 200 4,989 +0.55
BSE Midcap 14,696 +0.69
BSE Smallcap 13,224 +0.59
Dow Jones 28,132 +0.79
NASDAQ 8,717 +0.73
 

DERIVATIVES INDICATORS FOR DEC 13, 2019:

NIFTY 11971.80 (+61.65) (+0.52%)
NIFTY DEC FUTURE 11028.65 (56.85 Points Premium)
NIFTY PCR - OI 1.37(+0.16)
NIFTY OPEN INTEREST 1.49 Cr. (+4.54%)
INDIA VIX 13.34 (-0.22%)
NIFTY ROLLOVER 6%

NIFTY OPTIONS ACTIVITY (26-DEC SERIES)

CALL 12000 CE +1.74 lac Shares
CALL 12200 CE -2.61 lac Shares
PUT 12000 PE +4.39 lac Shares
PUT 11900 PE +5.28 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 17,799 +1.32
Bankex 36,134 +1.25
PSU 6,755 +1.53
Healthcare 13,368 +0.67
IT 14,758 -1.53
 
Market Turn Over (`cr)
Index 12/12 11/12
BSE Cash 2,111 2,098
NSE Cash 32,893 31,906
NSE F&O 2,602,611 1,331,138
BSE Delivery % 40.27 34.85
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 78.22 21.78
BSE 200 69.65 30.35
BSE 500 65.87 32.73
Total BSE 52.82 40.47
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 59.18 +0.71
Gold Rs./ 10 Gms 37544.00 -0.41
Silver Rs./ Kg 43926.00 +0.23
Rs.- US $ 70.58 -0.24
Rs.- Euro 78.95 +0.23
FII (Rs cr )
12/12* 11/12*
FIIs +384.09 -181.93
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       37,882.00       3,087.17       30,900.00       2,367.59    1,65,841.00     14,098.40     719.58
Index Options  52,53,596.00  3,57,627.28  52,47,583.00  3,57,125.53    5,68,731.00     49,015.73     501.75
Stock Futures    2,12,814.00     12,697.23    2,11,276.00     12,761.57  15,94,423.00     94,193.65      (64.34)
Stock Options       54,489.00       3,445.75       54,262.00       3,402.55       66,930.00       3,696.88       43.20
Total  55,58,781.00  3,76,857.43  55,44,021.00  3,75,657.24  23,95,925.00  1,61,004.66  1,200.19
Corporate News
The two-wheeler maker Hero MotoCorp plans to drive in BS-VI upgrades of around ten products, including five top-selling bikes and scooters by February next year, as it aims to upgrade its product portfolio well before the deadline of April, 1 2020, according to sources. The two-wheeler maker Hero MotoCorp plans to drive in BS-VI upgrades of around ten products, including five top-selling bikes and scooters by February next year, as it aims to upgrade its product portfolio well before the deadline of April, 1 2020, according to sources. (BL).
Maruti Suzuki has sold 50,000 units of the Super Carry, its mini truck, within three years of launch. The company said the mini-truck offers power and mileage, and is backed by extensive service support. (ET).
In a bid to focus on delivering high cash flows and productivity, Future Retail Ltd is seeking more revenue per square feet through sustained, healthy same store sales growth (SSSG), shutting unprofitable stores across large and small formats, and gross margin expansion through better markdown management and product mix, among others. In more news, if a country like Thailand has 11,000 7-Eleven stores, Mumbai can easily have 1,000 stores, Kishore Biyani, Founder of Future Group, said while giving a peek into what he is planning for the world’s largest convenience store chain. Future Group is planning to launch the first 7-Eleven store in Mumbai around February-March in 2020. (BL).
Reliance Strategic Business Ventures Ltd (RSBVL), a wholly-owned subsidiary of the Mukesh Ambani-controlled Reliance Industries Ltd (RIL), has acquired an 85 per cent stake in NowFloats Technologies for Rs 141.63 lakh in cash. RSBVL proposes to make an additional investment of up to Rs 75 crore in NowFloats, subject to achieving certain milestones. The additional investment is expected to be completed by December 2020, RIL said in a regulatory filing. (ET).
Tech Mahindra announced that it has bagged its largest smart city project worth Rs.500 crore from Pimpri Chinchwad Municipal Corporation (PCMC). Through this project, Tech Mahindra will engage with more than 15 lakh citizens of PCMC by enabling technology-led transformation to convert it into a smart and sustainable city, the company said. (BL).
Los Angeles-based shareholder rights litigation firm, the Schall Law Firm, has filed a class action lawsuit against Infosys, accusing the IT major of making false and misleading statements to investors. The law firm, in a filing to the US Securities and Exchange Commission, said that investors who purchased Infosys securities between July 7, 2018 and October 20, 2019, can participate in the lawsuit by December 23. (BL).
FMCG major ITC, is aggressively ramping up its frozen snacks range targeting retail stores as well as the food services segment. The company, which has been test-marketing these products since mid-last year, aims to grab a 15-20 per cent share of the frozen snacks market in the country over the next three years. Overall the frozen snacks range launched under the brand, ITC Master Chef, consists of nearly 50 products such as achari beetroot kebab, rajmah ki galauti, chicken galauti and mumbai vada pops among others. (BS).
L&T Construction has bagged an order from Rail Vikas Nigam Limited (RVNL) for the construction of Rishikesh-Karanprayag Tunnel 2 package works. The Heavy Civil Infrastructure business of L&T will undertake the project which involves building tunnels, bridges and the formation works in the state of Uttarakhand, the company said in a statement. This size of this project is in the range of Rs 1,000 - 2,500 crore. (ET).
The Department of Telecommunications is set to hold Bharti Airtel liable for some of the adjusted gross revenue (AGR) dues that Videocon Telecommunications and Aircel owe the government, as the Sunil Mittal-led telco had bought some spectrum from the two bankrupt carriers back in 2017. (ET).
Bank of Baroda has signed a binding share purchase agreement (SPA) for sale of business of Bank of Baroda (Trinidad & Tobago) Limited (BOBTTL) with Ansa Merchant Bank Ltd., subject to approval from host country regulator - Central Bank of Trinidad & Tobago (CBTT). The Bank's wholly-owned overseas subsidiary at Trinidad & Tobago viz. BOBTTL started its operations on 17.10.2007. As a part of rationalization of Bank's international operations, Bank has approved the sale of business of BOBTTL. (BL).
Dr Reddy's will be in focus as Amneal Pharmaceuticals Inc to launch the first generic of a vaginal ring to prevent pregnancy in the U.S ahead of D. Reddy. This drug estimated to generate sales worth $50 million in FY21 and FY22 each for Dr. Reddy’s. (BQ).
Aviation companies will be in focus as Aviation industry passenger growth (domestic) stood at 11.18 percent (month-on-month). IndiGo’s market share increased to 47.5 percent. SpiceJet’s market share dropped to 16.1 percent. (BQ).
Economy and Sector News
Saudi Aramco’s market value after one day of trading is closing in on the $2 trillion market value sought by the kingdom’s de facto leader, despite scepticism from international investors. The oil producer’s capitalisation jumped from $1.71 trillion in its initial public offering to $1.88 trillion at the end of the first trading session Wednesday in Riyadh. In more news, India's first corporate bond exchange-traded fund (ETF), Bharat Bond ETF's, anchor investor quota was subscribed 1.7 times on Thursday. Anchor investors included private and public banks, private and public insurers as well as foreign portfolio investors among others. Bharat Bond ETF, which is also the country’s largest new fund offer (NFO) ever, opened for subscription on Thursday. The ETF is a government initiative and Edelweiss AMC was given the mandate to design and manage the product. (BL).
The government has decided to sell its entire 100 per cent stake in Air India under the proposed disinvestment process, Union Minister Hardeep Singh Puri said on Thursday. The government has decided to sell its entire 100 per cent stake in Air India under the proposed disinvestment process, Union Minister Hardeep Singh Puri said on Thursday. In more news, according to data released by Central Statistics Office, rate of retail inflation for vegetable was nearly 36 per cent. This alone with pulses (around 14 per cent) took the rate of food inflation to little over 10 per cent which is highest after January 2014. Food inflation was 7.89 per cent in October and in the negative zone last fiscal. Higher food inflation had a bigger impact on the overall rate of retail inflation, as represented by Consumer Price Index (CPI) and it jumped over 5 per cent. This is first time after January 2018, when rate of retail inflation has gone beyond 5 per cent. (ET).
India's economy is expected to grow at 4.3 per cent in the fourth quarter of this fiscal amid concerns over crisis in the NBFC sector, according to Nomura. The Japanese financial services major also believes that the first quarter of 2020 will see a "weak" uptick in GDP growth at 4.7 per cent. In more news, Carbon emissions per passenger have more than halved since 1990 because of an annual fuel efficiency improvement of 2.3 per cent over the period since 2009, some 0.8 percentage points ahead of target, IATA has said. This progress is due to a combination of investment in better aircraft and operational efficiencies, Alexandre de Juniac, IATA’s Director-General and CEO, said. (BL).
Fitch Ratings has given a negative rating to Indian Renewable Energy Development Agency (IREDA) and downgraded it to BB+. We have affirmed IREDA’s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) and its long-term senior unsecured rating at ‘BB+’. At the same time, Fitch has affirmed the Short-Term IDR and the short-term senior unsecured rating at ‘B’. Fitch classifies This basically classifies IREDA’s financial instruments as non investment-grade. (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 broke fresh records on Thursday, after amid reports that Washington and Beijing had reached a deal to avoid fresh punitive tariffs planned by the Trump administration for 15 December. The Dow Jones Index closed at 28,132, up 220.75 points by 0.79%. The Standard & Poors 500 index closed at 3,169, up 26.94 points by 0.86%. The Nasdaq Composite Index closed at 8,717, up 63.27 points by 0.73%.

FTSE 100

UK markets finished in the green on Thursday, with sterling weaker as polls remained open for the winter general election. The FTSE 100 index closed at 7,273, up 57.22 points by 0.79%.

 
 
Global Indices
12/12/2019 Clsg Chg%
Dow Jones 28,132 +0.79
NASDAQ 8,717 +0.73
FTSE 100 7,273 +0.79
Bovespa 112,199 +1.11
13/12/2019 Latest
(4:44AM IST)
Chg%
Nikkei 23,425 +0.14
Hang Seng 26,994 +1.31

Nikkei

Asian stocks started trading early in the morning on Friday on a positive note as the investors will be closely watching the US markets. Nikkei is currently trading at 23,425, up 32.95 points by 0.14%.

Precious Metals

Gold prices ended lower on Thursday as President Donald Trump’s tweet that a trade deal with China is near rallied the stock market, dulling demand for the haven metal.

Base Metals

The three-month nickel price on the London Metal Exchange was higher at the close of trading on Thursday December 12, breaching nearby resistance despite its largest single inflow since 2016.

Crude Oil

Oil futures settled higher on Thursday, nearly recouping all losses from a day earlier, following a tweet from President Donald Trump that hinted the U.S. was close to a trade deal with China.

 
 
 

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.