Morning Notes
17th Mar, 2020
 

Trading Range:

Nifty opened gap down at 9588 on Monday and made a high and low of 9602 and 9165 respectively before closing negative at 9197.

Review/Outlook:

For the day, support for Nifty exists at 9000 and 8450 levels whereas resistance for Nifty stands at 9600 and 10200 levels.

Review/Outlook:

Bank Nifty opened a gap down at 24062, made a high of 24074, low of 23008, and closed negative at 23101. For the day, support for Bank Nifty exists at 22000 and 20800 levels whereas resistance for Bank Nifty stands at 24100 and 25200 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 31,390 -7.96
Nifty 9,197 -7.61
BSE 200 3,885 -7.22
BSE Midcap 11,889 -5.94
BSE Smallcap 11,095 -5.66
Dow Jones 20,189 -12.93
NASDAQ 6,905 -12.32
 

DERIVATIVES INDICATORS FOR MAR 17, 2020:

NIFTY 9197.40 (-757.80) (-7.61%)
NIFTY MAR FUTURE 9118.45 (78.95 Points Discount)
NIFTY PCR - OI 0.99 (-0.12)
NIFTY OPEN INTEREST 2.03 Cr. (+12.11%)
INDIA VIX 58.87 (+14.38%)
NIFTY ROLLOVER 17%

NIFTY OPTIONS ACTIVITY (26-MAR SERIES)

CALL 9400 CE +1.30 lac Shares
CALL 9300 CE +0.89 lac Shares
PUT 9100 PE +1.26 lac Shares
PUT 9000 PE -1.49 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 13,167 -5.69
Bankex 26,474 -8.36
PSU 4,721 -6.03
Healthcare 12,178 -3.92
IT 12,255 -7.82
 
Market Turn Over (`cr)
Index 16/03 13/03
BSE Cash 2,667 4,101
NSE Cash 50,240 65,782
NSE F&O 645,830 807,416
BSE Delivery % 39.74 38.32
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 2.97 97.03
BSE 200 3.98 96.02
BSE 500 6.39 93.21
Total BSE 15.70 78.19
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 29.07 +1.29
Gold Rs./ 10 Gms 39518.00 -2.06
Silver Rs./ Kg 36207.00 -10.57
Rs.- US $ 74.11 +0.31
Rs.- Euro 82.76 +0.33
FII (Rs cr )
16/03* 13/03*
FIIs -6741.02 -1802.06
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    1,55,371.00    9,795.93    1,43,358.00    9,141.44    2,59,722.00     16,825.49      654.49
Index Options  10,59,012.00  64,703.20  10,75,568.00  66,004.91    9,49,621.00     62,339.18  (1,301.71)
Stock Futures    4,03,593.00  20,150.31    4,20,361.00  21,259.55  14,95,877.00     74,180.95  (1,109.24)
Stock Options       35,998.00    2,114.04       34,344.00    2,014.79       70,021.00       3,554.78        99.25
Total  16,53,974.00  96,763.48  16,73,631.00  98,420.69  27,75,241.00  1,56,900.40  (1,657.21)
Corporate News
JSW Steel has decided not to make the payment of Rs.19,700 crore to close the Bhushan Power and Steel without getting final nod from the Supreme Court. (BL).
Maruti Suzuki India Ltd has taken a big leap in its used car business that will see the country’s top car maker growing sales of pre-owned cars significantly, with the possibility of creating a good number of jobs, while growing the brand bigger with expanded customer reach. (ET).
Singapore-based PE firm Gateway Partners will acquire a minority stake in TVS Supply Chain Solutions (TVS SCS) for $100 million, which involves both the primary and secondary portions. (BL).
SEBI on Monday revoked the market ban imposed on an individual in the Ricoh India matter, wherein the watchdog had taken action against various entities for alleged accounting fraud. The restrictions on Bibek Chowdhury have been revoked after a forensic audit report did not find any involvement of Chowdhury in the fraud. (ET).
Bajaj Auto on Monday launched 14 BS-6 compliant three-wheeler commercial vehicles across its brands RE, Maxima and Maxima Cargo. (BL).
Vodafone Idea has paid another Rs  3,354 crores to the Department of Telecom towards settling its Adjusted Gross Revenue (AGR) dues. (BL).
Artificial intelligence (AI) is coming to the aid of advertising and machine learning (ML) programmes are analysing far greater pools of data to make a nuanced connection. Home textiles company Welspun India decided to tackle an environmental issue that has grave consequences — severe fall in groundwater levels — with the help of an algorithm that pooled real-time data. (ET).
In the wake of the coronavirus (CoVID-19) outbreak, Reliance Industries Ltd (RIL) has started thermal screening of all visitors and employees to its premises from Friday. The thermal screening is being conducted across all its offices, including Reliance Corporate Park (RCP) in Navi Mumbai and the world’s largest crude oil refining facility in Jamnagar, among others. (BS).
The Competition Commission (CCI) has slapped a penalty of Rs.302 crore on Grasim Industries for abusing its dominant position with respect to supply of a certain staple fibre to spinners. Besides, the company has been directed to “cease and desist” from indulging in anti-competitive practices as well as put in place a transparent “discount policy” for all the market participants. . (BL).
The months-long probe into Coffee Day Enterprises Ltd., initiated by its board after the death of founder V G Siddhartha has found at least $270 million missing from the company’s accounts, Bloomberg reported on Monday. (BL).
Economy and Sector News
Corporate India is expecting a 0.5 per cent hit on economic growth in FY2020-21 if the coronavirus pandemic lasts longer, pushing up fiscal deficit and creating more bad loans for the bank, says an industry survey. Care Ratings has conducted a survey on the impact of the coronavirus pandemic on the economy among over 150 CEOs, CFOs, investors, analysts and other stakeholders from manufacturing, financial services, infra, realty and services between March 5 and 12. According to the survey, the economic impact will be significant and long term if the virus continues for longer. (BL).
Producers’ inflation, better known as Wholesale Price Index (WPI), has slipped to 2.26 per cent in February. This means, producers are getting less price for their produce which could also be lower consumption demand and higher supply. According to data released on Monday by the Ministry of Commerce & Industry, the annual rate of inflation, based on monthly WPI, stood at 2.26 per cent for February, compared to 3.1 per cent for January and 2.93 per cent during the corresponding month of the previous year. Build-up inflation rate in the financial year so far was 1.92 per cent compared to 2.75 per cent in the corresponding period of the previous year. (ET).
Hyundai Motor India (HMIL), India’s second largest passenger car maker, launched the all-new Creta on Monday. The car is priced between ₹9.99 lakh and ₹17.20 lakh (all introductory prices across India, ex-showroom). Based on Hyundai’s new global design language of ‘sensuous sportiness’, the Creta has new features such as voice-enabled smart panoramic sunroof, 26 cm HD infotainment, premium interiors, paddle shifters, electric parking brake with auto-hold and a Bose premium sound system. (BL).
Ind Swift Laboratories Limited on Friday announced the completion of inspection by the United States Food and Drug Administration (USFDA) of its API manufacturing facility at Derabassi (Punjab), near Chandigarh, India, which was conducted from March 9-13, 2020. The USFDA has cleared this inspection without any 483 observations. (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 heavy losses on Monday after Wall Street trading was halted on when stocks hit "limit down" despite the Federal Reserve launching an extensive monetary stimulus campaign at the weekend aimed at curbing slower economic growth amid the fallout from the COVID-19 outbreak. The Dow Jones Index closed at 20,189, down 2,997.10 points by 12.93%. The Standard & Poors 500 index closed at 2,386 down 324.89 points by 11.98%. The Nasdaq Composite Index closed at 6,905, down 970.28 points by 12.32%.

FTSE 100

UK markets finished another dismal day well into the red on Monday as investors sifted through a raft of Covid-19 corporate updates, with the Federal Reserve’s latest policy move failing to assuage concerns about the impact of the pandemic. The FTSE 100 index closed at 5,151, down 215.03 points by 4.01%.

 
 
Global Indices
16/03/2020 Clsg Chg%
Dow Jones 20,189 -12.93
NASDAQ 6,905 -12.32
FTSE 100 5,151 -4.01
Bovespa 71,168 -13.92
17/03/2020 Latest
(4:55AM IST)
Chg%
Nikkei 17,002 -2.46
Hang Seng 23,064 -4.03

Nikkei

Asian share markets started trading early in the morning on Tuesday on a negative note as the investors will be closely watching the US markets. Nikkei is currently trading at 17,002, down 429.01 points by 2.46%.

Precious Metals

Gold futures fell Monday to settle at their lowest since December, and silver futures finished at their worst level in over a decade, as the Federal Reserve’s emergency decision to slash interest rates failed to stem losses in the stock market, sending traders scrambling for cash.

Base Metals

The three-month copper price on the London Metal Exchange continued its descent at the close of trading on Monday March 16, settling at its lowest level since November 2016 after breaching key support levels throughout the day.

Crude Oil

Crude prices settled at a four-year low on Monday, with U.S. prices below $30 a barrel, moving in step with plunging global equities after an emergency Federal Reserve interest rate cut did nothing to stem the panic among investors triggered by the rapidly spreading coronavirus.

 
 
 

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.