Morning Notes
16th Oct, 2019
 

Trading Range:

Nifty opened gap up at 11361 on Tuesday and made a high and low of 11462 and 11342 respectively before closing positive at 11428.

Review/Outlook:

For the day, support for Nifty exists at 11340 and 11280 levels whereas resistance for Nifty stands at 11500 and 11550 levels.

Review/Outlook:

Bank Nifty opened gap up at 28258, made a high of 28695, low of 28186, and closed positive at 28555 levels. For the day, support for Bank Nifty exists at 28300 and 28000 levels whereas resistance for Bank Nifty stands at 28800 and 29000 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 38,506 +0.76
Nifty 11,428 +0.77
BSE 200 4,762 +0.76
BSE Midcap 13,940 +0.72
BSE Smallcap 12,774 -0.11
Dow Jones 27,024 +0.89
NASDAQ 8,149 +1.24
 

DERIVATIVES INDICATORS FOR OCT 16, 2019:

NIFTY 11428.30 (+87.15) (+0.77%)
NIFTY OCT FUTURE 11336.60 (4.85 Points Discount)
NIFTY PCR - OI 1.32(+0.14)
NIFTY OPEN INTEREST 1.61Cr. (+3.21%)
INDIA VIX 16.85 (-3.33%)
NIFTY ROLLOVER 9%

NIFTY OPTIONS ACTIVITY (31-OCT SERIES)

CALL 11400 CE +0.25 lac Shares
CALL 11500 CE -1.78 lac Shares
PUT 11400 PE +3.46 lac Shares
PUT 11300 PE +2.95 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 17,244 +2.36
Bankex 32,270 +1.31
PSU 6,593 +1.24
Healthcare 12,344 +0.71
IT 15,224 -0.66
 
Market Turn Over (`cr)
Index 15/10 14/10
BSE Cash 3,847 2,869
NSE Cash 35,776 33,826
NSE F&O 930,743 852,895
BSE Delivery % 61.03 48.51
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 73.27 26.73
BSE 200 67.16 32.84
BSE 500 51.20 48.20
Total BSE 40.65 52.62
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 52.96 +0.28
Gold Rs./ 10 Gms 38036.00 -0.50
Silver Rs./ Kg 45226.00 -1.26
Rs.- US $ 71.61 +0.42
Rs.- Euro 79.01 +0.50
FII (Rs cr )
15/10* 14/10*
FIIs +6153.26 -568.12
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       50,402.00       3,662.26       41,111.00       2,918.59    1,59,094.00     12,703.60     743.67
Index Options  27,85,459.00  1,85,849.08  27,84,244.00  1,85,712.05    7,60,235.00     59,850.82     137.03
Stock Futures    2,21,203.00     11,625.54    2,12,817.00     11,267.59  15,54,487.00     89,883.65     357.95
Stock Options       82,181.00       4,518.79       81,520.00       4,513.40       88,647.00       4,847.96        5.39
Total  31,39,245.00  2,05,655.67  31,19,692.00  2,04,411.63  25,62,463.00  1,67,286.03  1,244.04
Corporate News
Imaging solutions company Fujifilm India has inked a partnership with Max Healthcare to train doctors in early detection of breast cancer and advance diagnostics at its super-specialty hospital in Saket, New Delhi. (BL).
Sajjan Jindal, promoter of the JSW Group, has repaid Rs.1,200 crore of loan raised against pledging JSW Steel and JSW Energy shares. Sajjan Jindal, promoter of the JSW Group, has repaid Rs.1,200 crore of loan raised against pledging JSW Steel and JSW Energy shares. The release of 7.01 crore shares of JSW Steel accounts for 2.90 per cent of paid-up capital of the company while 11.88 crore of JSW Energy shares released was 7.24 per cent of paid-up capital. (ET).
Zee Entertainment Enterprises Ltd (ZEEL) will invest heavily in regional markets, where it sees a 70-90 per cent growth potential. According to Prathyusha Agarwal, CMO, ZEEL, nearly 50 per cent of the company’s viewership comes from its regional portfolio, which includes entertainment and movie channels. With growth coming in such high double digits, “more original content” is being worked-on. (BL).
Kolkata-based Berger Paints India Ltd will acquire 95.53 per cent of STP Ltd (STPL), which is primarily into waterproofing and protective coatings, at a cash consideration of Rs 167.5 crore. The acquisition is likely to be completed by November 30. (ET).
Maruti Suzuki India (MSI) on Tuesday said it invested over Rs 154 crore towards its CSR initiatives in 2018-19. Maruti Suzuki India (MSI) on Tuesday said it invested over Rs 154 crore towards its CSR initiatives in 2018-19.. (ET).
Even as the economy battles a consumption slowdown, Wipro Consumer Care and Lighting said its international business has been witnessing higher growth rates. The company has been focussing on strengthening its presence in the South-East Asian region through a slew of acquisitions over the past few years. (BL).
The country's third-largest software services firm HCL Technologies has renewed its IT operations and transformation agreement with Equinor, the largest supplier of oil and gas in the Nordic energy market and the largest offshore operator in the world in a multi-million-dollar deal. (ET).
Jain Irrigation Systems Ltd. missed certain principal payments under its working capital facilities and S&P sees a “high likelihood” that the company would be classified a nonperforming asset by its bankers. A selective default means S&P believes a firm has defaulted on a specific issue but will meet its other obligations. (ET).
Quarterly Earnings
SBI Life Insurance on Tuesday reported over 48 per cent decline in its net profit at Rs 129.84 crore in the second quarter ended September of the current fiscal year (2019-20). The life insurer had registered a net profit of Rs 250.53 crore in the corresponding July-September period of previous fiscal 2018-19. The company's total premium income during July-September rose to Rs 12,745.38 crore as against Rs 9,638.27 crore in the year-ago period, SBI Life said in a regulatory filing. The company said its new business premium (NBP) rose 40 per cent to Rs 7,820 crore in the second half of the current fiscal as against Rs 5,570 crore in the year-ago period. Assets under management grew 23 per cent to Rs 1,54,760 crore as on September 30, 2019 from Rs 1,26,170 crore as on September 30, 2018 with debt-equity mix of 77:23. (BL).
Cement maker ACC Ltd on Tuesday reported a 44.66 per cent rise in consolidated net profit at Rs 302.56 crore for the third quarter ended September 30, 2019. The company had posted a net profit of Rs 209.14 crore in the corresponding period of the previous fiscal, ACC said in a BSE filing. Consolidated net sales stood at Rs 3,464.43 crore for the period under review as against Rs 3,363.96 crore for the same period year ago. (BS).
Multi Commodity Exchange (MCX) on Tuesday reported over two-fold jump in net profit at Rs 71.75 crore for the quarter ended September. Its net profit stood at Rs 35.93 crore in the year-ago period, the company said in a regulatory filing. Total income increased 55 per cent to Rs 144.53 crore in the second quarter of this fiscal from Rs 93.27 crore in the same period last year. The average daily turnover trade in commodity futures on the exchange increased 40 per cent to Rs 34,526 crore in Q2 FY2020 from Rs 24,655 crore in the corresponding quarter of 2018-19. (BL).
Karnataka Bank on Tuesday reported a 5.3 per cent fall in net profit at Rs 105.91 crore for the second quarter ended September of the current fiscal as bad loans increased marginally. The private sector bank had posted a net profit of Rs 111.86 crore in the corresponding July-September quarter of the previous fiscal ended March 2019. The bank's total income rose to Rs 1,938.40 crore during September quarter of 2019-20 as against Rs 1,653.81 crore in the year-ago period, the bank said in a regulatory filing. The asset quality of the bank showed a slight blip as gross non-performing assets (NPAs) rose to 4.78 per cent of the gross advances as on September 30, up from 4.66 per cent a year ago. (ET).
IT major Wipro on Tuesday reported a 35.82 per cent YoY rise in consolidated net profit at Rs 2,561.30 crore for the September quarter compared with Rs 1,885.70 crore in the corresponding quarter last year. On a sequential basis, the profit was up 6.2 per cent. The company has guided for IT services revenue of $2,065 million to $2,106 million for the December quarter. This translates to a sequential growth of 0.8 per cent to 2.8 per cent. (BL).
Bajaj Consumer Care’s consolidated net profit rose 11.2% yoy to Rs56.03cr, and revenue rose 3.2% yoy to Rs214.22cr in Q2FY20. With the change in corporate income tax rates, effective tax rate of the company has reduced to 17.5% from 21.5%, the company said resulting in a PAT increase by Rs5.73cr for the first half of FY20. As per media reports, the company said ~3.2cr or 22% equity shares traded in a block deal at Rs194.05/ share in today’s trade. (BL).
Economy and Sector News
Kolkata-based edutech start-up, Kredent InfoEdge, which has trained close to 1.5 lakh learners on its online portal, Elearnmarkets, is looking to ramp up its customer acquisition model. In more news, Asset monetisation through infrastructure investment trusts (InvITs) will gain traction after the Reserve Bank of India (RBI) removed restrictions placed on banks to lend to such entities. (BL).
The International Monetary Fund (IMF) on Tuesday trimmed India’s growth forecast by 90 basic points to 6.1 per cent (100 basis points mean one percentage point). This is second downward revision in seven months and in total 120 basis points reduction. The IMF has also cuts global forecast by 20 basis points for 2019. (ET).
Exports of goods declined for the second straight month in September, by 6.57 per cent (year-on-year), to $26.03 billion, as outbound shipments of petroleum products and labour-intensive goods such as engineering items, gems and jewellery, readymade garments and leather products continued to fall. The trade deficit narrowed to $10.86 billion in September 2019 from $14.95 billion in September 2018 as imports fell 13.85 per cent during the month to $36.89 billion. (BL).
Decline in outward shipments of petroleum, engineering, leather, chemicals, and gems & jewellery made India's exports contract 6.57% to $26 billion in September while a steeper contraction in imports of 13.85% to $36.89 billion helped narrow the trade deficit to a seven-month low $10.86 billion. Trade deficit in September 2018 was $14.95 billion. (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 recorded some gains on Tuesday as earnings from some of America's major banks began to roll in. The Dow Jones Index closed at 27,025, up 237.44 points by 0.89%. The Standard & Poors 500 index closed at 2,996, up 29.53 points by 1.00%. The Nasdaq Composite Index closed at 8,149, up 100.06 points by 1.24%.

FTSE 100

UK markets finished on a mixed note on Tuesday as data showed the UK jobs market cooled in August and sterling leaped higher on Brexit deal hopes. The FTSE 100 index closed at 7,212, down 1.81 points by 0.03%.

 
 
Global Indices
15/10/2019 Clsg Chg%
Dow Jones 27,025 +0.89
NASDAQ 8,149 +1.24
FTSE 100 7,212 -0.03
Bovespa 104,490 +0.18
16/10/2019 Latest
(5:49AM IST)
Chg%
Nikkei 22,207 +1.87
Hang Seng 26,504 -0.07

Nikkei

Asian shares took off on Wednesday and sterling held near six-month highs as Britain and the EU made headway on a Brexit deal ahead of a leaders’ summit though it remained unclear if London could avoid postponing its scheduled departure on Oct. 31. Nikkei is currently trading at 22,307, up 408.34 points by 1.87%.

Precious Metals

Spot gold was barely changed at $1,481.48 an ounce on Wednesday.

Base Metals

Nickel rallied on the London Metal Exchange on Tuesday, with the market seeing the continued decline in exchange stocks as price-supportive, although it failed to close above resistance at $17,000.

Crude Oil

Brent crude LCOc1 added 21 cents to $58.94 a barrel on Wednesday, while U.S. crude CLc1 rose 20 cents to $53.01 after falling the previous session over fears the unrelenting U.S.-China trade war would keep squeezing the global economy.

 
 
 

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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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