Morning Notes
17th Feb, 2020
 

Trading Range:

Nifty opened gap up at 12190 on Friday and made a high and low of 12247 and 12091 respectively before closing negative at 12113.

Review/Outlook:

For the day, support for Nifty exists at 12050 and 11980 levels whereas resistance for Nifty stands at 12170 and 12250 levels.

Review/Outlook:

Bank Nifty opened gap up at 31282, made a high of 31437, low of 30776, and closed negative at 30885. For the day, support for Bank Nifty exists at 30700 and 30500 levels whereas resistance for Bank Nifty stands at 31100 and 31400 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 41,258 -0.49
Nifty 12,113  -0.50
BSE 200 5,098 -0.59
BSE Midcap 15,662 -0.79
BSE Smallcap 14,683 -0.40
Dow Jones 29,398 -0.09
NASDAQ 9,731 +0.20
 

DERIVATIVES INDICATORS FOR FEB 17, 2020:

NIFTY 12113.45 (-61.20) (-0.50%)
NIFTY FEB FUTURE 12129.65 (16.20 Points Premium)
NIFTY PCR - OI 1.28 (-0.20)
NIFTY OPEN INTEREST 1.41 Cr. (-1.45%)
INDIA VIX 13.61 (+1.83%)
NIFTY ROLLOVER 11%

NIFTY OPTIONS ACTIVITY (27-FEB SERIES)

CALL 12200 CE +2.79 lac Shares
CALL 12300 CE +3.32 lac Shares
PUT 12100 PE -0.78 lac Shares
PUT 12000 PE -1.39 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 17,589 -1.19
Bankex 35,359 -1.11
PSU 6,458 -1.85
Healthcare 14,415 -0.22
IT 16,332 -0.24
 
Market Turn Over (`cr)
Index 14/02 13/02
BSE Cash 2,401 2,194
NSE Cash 38,127 34,361
NSE F&O 1,246,566 2,846,772
BSE Delivery % 46.89 48.31
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 24.75 75.25
BSE 200 28.36 71.64
BSE 500 31.34 67.66
Total BSE 33.67 60.10
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 52.05 +1.23
Gold Rs./ 10 Gms 40979.00 +0.79
Silver Rs./ Kg 46227.00 +0.93
Rs.- US $ 71.54 +0.29
Rs.- Euro 77.56 +0.32
FII (Rs cr )
14/02* 13/02*
FIIs +662.90 -663.01
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       50,504.00       3,806.90       48,498.00       3,698.32    1,53,872.00     12,841.65   108.58
Index Options  34,55,337.00  2,50,775.74  34,46,424.00  2,49,935.37    6,83,566.00     57,972.72   840.37
Stock Futures    2,22,060.00     15,393.66    2,30,356.00     15,906.96  15,50,945.00  1,01,863.36  (513.30)
Stock Options       94,734.00       7,148.39       96,105.00       7,287.41       72,630.00       4,978.71  (139.02)
Total  38,22,635.00  2,77,124.69  38,21,383.00  2,76,828.06  24,61,013.00  1,77,656.44   296.63
Corporate News
Tata Power expects to rake in Rs.6,000 crore from the sale of some its assets in an effort to bring down its debt. (BL).
Indian Oil Corporation (IOC), a public sector oil marketing major, plans to invest Rs.500 crore at Chitradurga in Karnataka. The company said the investment is for setting up a terminal for receiving, storage and distribution of petroleum, oil and lubricants (POL) under a common user facility (CUF) spread across an area of about 120 acres. (ET).
State-owned Oil India is likely to move the TDSAT this week against the telecom department seeking about Rs 48,500 crore in past dues on the surplus bandwidth capacity it had leased to third parties, its Chairman and Managing Director Sushil Chandra Mishra has said. (BS).
The US health regulator has asked drug major Dr Reddy’s Laboratories to initiate voluntary action at its Duvvada facility in Andhra Pradesh. (ET).
The board of Bharat Petroleum Corporation Ltd (BPCL) has decided to initiate the process of selling its 61.65 per cent stake in subsidiary Numaligarh Refinery Ltd (NRL) amidst indications that the Assam government may not be interested in buying the entire stake by exercising a right of first refusal. (BS).
Realty major DLF is looking to raise Rs 2,000 crore through monetisation of certain commercial land parcels to its existing joint venture partners or new partners. The monetisation of land parcels would help the company in reducing its net debt, which stood at Rs 4,866 crore at the end of December quarter. (ET).
Adani Enterprises announced that Adani Ahmedabad International Airport, Adani Lucknow International Airport and Adani Mangaluru International Airport, wholly-owned subsidiaries of the Company have signed the Concession Agreement on February 14, 2020, with Airports Authority of India for the operations, management and development of Ahmedabad, Lucknow and Mangaluru Airports respectively. (BL).
Quarterly Earnings
Private sector Lakshmi Vilas Bank on Saturday said it has recorded net loss at Rs 334.47 crore for the October-December quarter. The Tamil Nadu-based bank recorded net loss at Rs 373.48 crore during the corresponding quarter previous year. The total income for the October-December quarter slipped to Rs 585.76 crore from Rs 762.47 crore in the corresponding quarter previous year. (BL).
Cement manufacturer Shree Cement posted a 2.87 per cent rise in its standalone net profit at Rs 309.95 crore in the quarter ended December 31, 2019. The net profit in the corresponding quarter last fiscal stood at Rs 301.29 crore. The Kolkata-headquartered firm’s net revenue stood at Rs 2,848.34 crore, up 2.43 per cent from Rs 2,780.63 crore clocked in the year-ago-period. (ET).
South-based TV broadcaster Sun TV Network Ltd on Friday reported a 7.15 per cent increase in consolidated profit after tax for the December quarter at Rs 384.69 crore. It had reported profit after tax of Rs 359.01 crore in the October-December period a year ago, Sun TV said in a BSE filing. However, total income dipped 7.89 per cent to Rs 914.17 crore during the quarter under review, as against Rs 992.58 crore in the corresponding period of the previous fiscal. (BL).
Jindal Stainless (Hisar) Limited (JSHL) reported a consolidated net profit of Rs 80 crore for the quarter, a 11% decline from Rs 94 crore yoy due to a steep surge in import of stainless steel in the market in the year 2019, said the company. Company’s standalone net profit stood at Rs 60 crore in Q3FY20 as compared to Rs 55 crore in the corresponding period last year (CPLY), registering an increase of 10%. JSHL’s net revenue for the quarter under review came down by 2% at Rs 2,191 crore. The Company reported an EBITDA of Rs 210 crore. (ET).
Steel Authority of India, the largest state-owned domestic steel company plunged into a net loss of Rs 429.62 crore in the quarter ended December 31, 2019 on the back of lower realisations against a net profit of Rs 616.30 crore in the same period a year earlier. The company's revenue from operations went up by around 5% to Rs 16,728 crore up from Rs 15,910.45 crore in the previous corresponding period. (BL).
Reliance Power (RPower) on Friday said its consolidated net profit has dipped over 57 per cent to Rs 49.39 crore in the December 2019 quarter, mainly due to lower income. The company's consolidated net profit had stood at Rs 116.44 crore in the corresponding quarter of the previous financial year, according to a BSE filing. Its income came down to Rs 1,897.93 crore in third quarter of 2019-20, from Rs 2,098.82 crore a year ago. (BL).
Drug firm Glenmark Pharmaceuticals on Friday reported a 64.02 per cent jump in its consolidated net profit to Rs 190.83 crore for the quarter ended December 31, 2019, mainly on account of robust sales in the Indian market. Its board also approved raising of funds up to USD 400 million (over Rs 2,855 crore) through issuance of securities. The company had posted a net profit of Rs 116.34 crore in the corresponding period of the previous financial year, Glenmark Pharmaceuticals said in a filing to the BSE. Consolidated revenue of the company stood at Rs 2,735.56 crore for the quarter under consideration as against Rs 2,555.04 crore for the corresponding period a year ago. (BL).
Reliance Infrastructure (RInfra) on Friday reported a 18 per cent rise in its consolidated net profit at Rs 345.51 crore for the quarter ended December 31, 2019. The Anil Ambani-led company had clocked a net profit of Rs 293.77 crore for the corresponding quarter of the previous fiscal, it said in a regulatory filing to the BSE. Its consolidated total income during the quarter was almost stagnant at Rs 4,527.37 crore as against Rs 4,534.42 crore in the year-ago quarter. (ET).
CG Power and Industrial Solutions on Friday said its consolidated net loss almost doubled to Rs 210.07 crore in the December 2019 quarter, mainly due to lower revenues. Its consolidated net loss was Rs 105.78 crore in the corresponding quarter a year ago, according to a BSE filing. The company's total income came down to Rs 1,190.47 crore in the third quarter, from Rs 2,084.12 crore in the year-ago period. (BL).
State-run oil major Oil & Natural Gas Corp (ONGC) on Friday reported a 47.07 per cent decline in December quarter profit at Rs 4,151.63 crore. The revenue from operations dropped to Rs 23,710.05 crore, from 27,694.09 crore a year ago. (BL).
IRB Infrastructure Developers on Friday reported a 27 per cent decline in consolidated profit after tax (PAT) at Rs 159.73 crore for the quarter ended December 2019. The infrastructure company had clocked a consolidated PAT of Rs 218.90 crore for the corresponding period a year-ago, it said in a regulatory filing to the BSE. Total income for the quarter declined to Rs 1,790.17 crore as against Rs 1,835.02 crore in the year-ago period. (BL).
Low fare carrier SpiceJet posted a 23% increase in consolidated net profit for the October-December quarter on income it recognised on expected compensation from plane maker Boeing for grounding its 737 Max planes. The airline posted a net profit of Rs 78.2 crore up from Rs 63.5 crore a year earlier. SpiceJet’s revenue increased 47% to Rs 3,656 crore on the basis of a 59% increase in capacity. But its passenger revenue per available seat kilometre (RASK) decreased by 8% to Rs 3.44. (ET).
Drug firm Pfizer Ltd on Friday reported a 5.39 per cent rise in net profit to Rs 139.06 crore for the quarter ended December 31, 2019. The company had posted a net profit of Rs 131.94 crore for the corresponding period of the previous fiscal, Pfizer Ltd said in a filing to BSE. Revenue from operations stood at Rs 538.18 crore for the quarter under consideration, as against Rs 513.79 crore in the same period a year ago. (BS).
GVK Power and Infrastructure on Friday reported marginal narrowing of consolidated loss at Rs 120.06 crore for the quarter ended December 2019. The company had posted consolidated loss of Rs 122.61 crore in the year-ago period, GVK Power and Infrastructure said in a filing to BSE. The consolidated revenue of the company during the October-December quarter increased to Rs 1,156.15 crore over Rs 1,109.28 crore in the year-ago period, the filing said. (BL).
Nestle reported a 38 per cent rise in net profit at Rs 473 crore for the December quarter. The maker of Maggi noodles, Kitkat and Nestle Munch said its margins for the quarter expanded to 21.5 per cent compared with 19 per cent in the year ago. (ET).
PC Jeweller reported a 73 per cent decline in consolidated net profit at Rs 35.61 crore for the December quarter. The company's net profit stood at Rs 133.03 crore in the year-ago period, the company said in a regulatory filing. Total income for the December quarter fell to Rs 1,703.86 crore compared with Rs 2,234.56 crore in the corresponding period of the last year. (BL).
Uflex reported a 56.07 per cent jump in consolidated net profit at Rs 84.81 crore for the December quarter. The company had posted a net profit of Rs 54.34 crore during the October-December quarter a year ago. Total income for the quarter fell 9.07 per cent to Rs 1,801.33 crore compared with Rs 1,981.09 crore in the same quarter last year. (BS).
Economy and Sector News
Indian companies now have the option to list their global depository receipts at the international financial services centre in Gujarat, with the government amending the rules. The move would help companies in having another avenue for raising funds. (BL).
Finance Minister Nirmala Sitharaman on Saturday said the government is monitoring farm credit given by banks in rural areas, adding that she expects to meet the increased target of Rs 15 lakh crore for the next fiscal. The Government in Budget 2020-21 has raised the farm loan disbursal target by 11 per cent to Rs 15 lakh crore for the next fiscal and allocated Rs 1.6 lakh crore to implement various plans in agriculture and allied sectors as it chases the goal of doubling farmers income by 2022. (ET).
Despite major producers such as China and Sri Lanka turning out a lower output, the world black tea production in calendar 2019 was higher than in 2018, thanks to because of India’s contribution g to a significant increase. Our compilation of the latest production data got from different countries shows that the world black tea output rose to 2,290.51 mkg in 2019 from 2,266.82 mkg in 2018,” Rajesh Gupta, compiler of Global Tea Digest said. (BL).
The country’s goods exports posted a decline for the sixth consecutive month falling 1.66 per cent to $25.97 billion in January with high-value items such as ready-made garments and gems & jewellery continuing to slide. Imports for the month was a tad lower at $ 41.14 billion due to fall in gold and silver, coal and iron & steel imports. The trade deficit in January was at $15.17 billion, almost at the same level as in January 2019, according to an official release circulated by the Commerce & Industry Ministry on Friday. (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 end the week on Friday at record highs after strong earnings and fed signal. The Dow Jones Index closed at 29,398, down 25.23 points by 0.09%. The Standard & Poors 500 index closed at 3,380, up 6.22 points by 0.18%. The Nasdaq Composite Index closed at 9,731, up 19.21 points by 0.20%.

FTSE 100

UK markets finished in negative territory on Friday. Not even a dip in sterling was able to offset the drag from RBS's share price drop on the top flight index, but the FTSE 250 fared considerably better, likely in anticipation of fiscal largesse at the next budget on 11 March. The FTSE 100 index closed at 7,409, down 42.90 points by 0.58%.

 
 
Global Indices
14/02/2019 Clsg Chg%
Dow Jones 29,398 -0.09
NASDAQ 9,731 +0.20
FTSE 100 7,409 -0.58
Bovespa 114,381 -1.11
17/02/2020 Latest
(4:16AM IST)
Chg%
Nikkei 23,687 -0.59
Hang Seng 27,816 +0.31

Nikkei

Asian share markets started trading early in the morning on Monday on a negative note as the investors will be closely watching the US markets. Nikkei is currently trading at 23,687, down 140.14 points by 0.59%.

Precious Metals

Gold settled higher Friday to post a modest weekly rise as investors attempted to gauge the economic impact of the spread of COVID-19 in China.

Base Metals

Copper and nickel prices ended the trading week higher on London Metal Exchange on Friday February 14 than a week ago although aluminium and zinc were depressed.

Crude Oil

Oil futures settled higher on Friday to score a weekly gain—their first in six—as traders assessed reported signs of Chinese demand for crude against a backdrop of concern about the impact of COVID-19 on 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 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.

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