Morning Notes
15th Nov, 2019
 

Trading Range:

Nifty opened gap up at 11859 on Thursday and made a high and low of 11896 and 11803 respectively before closing positive at 11872.

Review/Outlook:

For the day, support for Nifty exists at 11790 and 11740 levels whereas resistance for Nifty stands at 11920 and 12000 levels.

Review/Outlook:

Bank Nifty opened gap up at 30616, made a high of 30789, low of 30338, and closed positive at 30750. For the day, support for Bank Nifty exists at 30500 and 30300 levels whereas resistance for Bank Nifty stands at 31000 and 31200 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 40,286 +0.42
Nifty 11,872 +0.27
BSE 200 4,965 +0.20
BSE Midcap 14,679 +0.14
BSE Smallcap 13,343 -0.01
Dow Jones 27,782 -0.01
NASDAQ 8,479 -0.04
 

DERIVATIVES INDICATORS FOR NOV 15, 2019:

NIFTY 11872.10 (+31.65) (+0.27%)
NIFTY NOV FUTURE 11899.65 (27.55 Points Premium)
NIFTY PCR - OI 1.17(+0.08)
NIFTY OPEN INTEREST 1.61Cr. (-1.04%)
INDIA VIX 15.65 (-4.94%)
NIFTY ROLLOVER 5%

NIFTY OPTIONS ACTIVITY (28-NOV SERIES)

CALL 12100 CE +1.90 lac Shares
CALL 11900 CE +2.34 lac Shares
PUT 11800 PE +2.18 lac Shares
PUT 11700 PE +1.18 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 18,349 +0.43
Bankex 34,830 +0.71
PSU 6,873 -0.34
Healthcare 12,923 -0.26
IT 15,321 +1.07
 
Market Turn Over (`cr)
Index 14/11 13/11
BSE Cash 2,673 2,676
NSE Cash 37,035 41,639
NSE F&O 3,159,830 1,370,347
BSE Delivery % 44.70 61.27
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 41.58 55.45
BSE 200 42.29 55.72
BSE 500 41.12 56.89
Total BSE 36.06 57.53
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 56.77 -0.61
Gold Rs./ 10 Gms 38266.00 +0.44
Silver Rs./ Kg 44723.00 +0.42
Rs.- US $ 71.97 -0.30
Rs.- Euro 79.32 -0.19
FII (Rs cr )
14/11* 13/11*
FIIs +1518.87 +1579.98
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       48,655.00       3,493.19       53,273.00       3,934.83    2,04,237.00     17,006.25    (441.64)
Index Options  78,76,904.00  5,25,667.85  78,40,987.00  5,22,710.62    5,80,364.00     48,587.45  2,957.23
Stock Futures    2,04,060.00     11,658.93    2,02,242.00     11,193.47   15,68,718.00     91,489.96     465.46
Stock Options       84,802.00       5,031.31       85,941.00       5,060.19       89,151.00       4,998.55      (28.88)
Total  82,14,421.00  5,45,851.28  81,82,443.00  5,42,899.11   24,42,470.00  1,62,082.21  2,952.17
Corporate News
GE T&D India Limited has energised the third of four poles planned of the Champa-Kurukshetra ultra-high-voltage direct current (UHVDC) project. This project is being developed for Power Grid Corporation of India Limited (PGCIL). This adds an additional 1,500 MW of capacity to the 1,305-km link, which is now transmitting 4,500 MW, a GE statement said. (BL).
Schneider Electric has opened its first Smart Distribution Center in the country. (ET).
Natco Pharma Ltd’s finished dosage formulations (FDF) facility in Visakhapatnam has commenced commercial operations. The facility is a part of the Special Economic Zone (SEZ) and is intended to cater primarily to the US and other international markets. (BL).
Dr Reddy’s Laboratories Ltd has entered into the nutrition segment of the domestic market with the launch of its diabetes nutrition drink, Celevida. It’s the first-of-its-kind under Dr Reddy’s nutrition portfolio and has been clinically proven to help manage blood glucose levels among Indian patients. (ET).
German company Hafele, a leader in interior design products, solutions and functionality, has set up a 10,000 sqft design centre in Hyderabad, stated to be its largest in India. (BS).
French rolling stock manufacturer Alstom will deliver 10 high-powered electric locomotives in this financial year through its Madhepura Electric Locomotive Pvt Ltd. (MELPL), its joint venture with the Indian Railways. (ET).
Moody's Investors Service ("Moody's") has affirmed Reliance Industries Limited's (RIL) domestic long-term issuer rating and foreign currency senior unsecured rating at Baa2. At the same time, Moody's has affirmed the Baa2 backed domestic currency senior unsecured debt ratings on the USD denominated bonds issued by Reliance Holding USA, Inc., with a guarantee from RIL. (ET).
IRCTC will be in focus as the co hiked catering charges for meals served in Rajdhani, Shatabdi and Duronto trains. (BQ).
Cipla received four observations from routine Current Good Manufacturing Practice inspection for both Formulation and API manufacturing facility at Patalganga by U.S. Food and Drug Administration. Company stated that the observations were neither of repeat nature nor related to data integrity. (BQ).
Quarterly Earnings
The India Tourism Development Corporation (ITDC) on Thursday recorded a consolidated net loss of Rs. 0.45 crore for the second quarter ended September 30, 2019. ITDC reported a net profit Rs.7.06 crore in the same quarter last fiscal. Total income for the quarter under review stood at Rs.87.41 crore, as compared to a total income of Rs.89.14 crore recorded in the same quarter last year. (BL).
GVK Power & Infrastructure has posted a loss of Rs 159.39 crore for the second quarter ended September 30, 2019 as against a loss of Rs 109.76 crore for the corresponding quarter of the previous fiscal on a consolidated basis. (BS).
Telecom major Vodafone Idea on Thursday posted largest ever loss by an Indian company at Rs 50, 922 crore for the quarter ended September 30, as it made a provision for Supreme Court’s ruling on payment of average gross revenue (AGR) dues. The company had posted a loss of Rs 5,579.6 crore in the same quarter a year ago. Vodafone Idea’s revenue from operations more than halved to Rs 10,844 crore from Rs 22,114 crore. (BL).
State-owned Union Bank of India on Thursday reported a net loss of Rs 1,194 crore for July-September due to higher provisioning. The bank had a net profit of Rs 139 crore in the same quarter of 2018-19. Total income for the September quarter rose to Rs 10,556.57 crore from Rs 9,438.26 crore in the same period a year ago, the bank said in a regulatory filing. Its provisioning for bad loans jumped to Rs 3,328.30 crore for the quarter from Rs 1,710 crore parked aside for the same a year ago. Overall provisioning was of Rs 3,858.75 crore as against Rs 1,715.55 crore. The asset quality of the bank continued to remain in the bad territory as the gross non-performing assets (NPAs) stood at 15.24 per cent of the gross loans at the end of September 2019, as compared to 15.74 per cent a year ago. (ET).
Aditya Birla Group's flagship firm Grasim Industries on Thursday posted a consolidated net profit of Rs 1,472.77 crore for the July-September period helped by good performance of its subsidiaries UltraTech Cement and Aditya Birla Capital. Grasim Industries had reported a net loss of Rs 1,319.79 crore in the September quarter a year ago, Grasim Industries said in a BSE filing. Its revenue from operation was at Rs 18,430.27 crore, up 3 per cent, during the quarter under review as against Rs 17,892.42 crore in the corresponding quarter of the previous fiscal. (BL).
Drug firm Glenmark Pharmaceuticals Ltd on Thursday reported a consolidated net profit to Rs 255.54 crore for the second quarter ended on September, 2019. The company had posted a net profit of Rs 414 crore in the July-September quarter a year ago, Glenmark Pharmaceuticals said in a BSE filing. Net sales of the company stood at Rs 2,763.73 crore, up 8.81 per cent, during the period under review as against Rs 2,539.85 crore of the corresponding quarter previous fiscal. (ET).
Spencer’s Retail on Thursday reported 8% growth in its revenue from operation at Rs 611.83 crore for the second quarter ending September 30, 2019. The Kolkata-based retail chain, however, reported a net loss of Rs 15.62 crore during the period under review as compared to a net profit of Rs 1.47 crore in the same period last year. The company said in the results for the period under review, operating lease expenses which were recognised as other expenses in previous periods was now recognised as depreciation expense for right-of-use asset and finance cost for interest accrued on lease liability. Hence, loss before tax for the quarter under review increased by Rs 2.92 crore and hence the results were not comparable, it said. (BL).
Bharti Airtel on Thursday reported its biggest quarterly losses at Rs 23,044 crore for the quarter ended September 30, affected by Rs 28,450 crore provisions towards adjusted gross revenue (AGR) dues. The AGR provision amount includes principal amount of Rs 6,164 crore, interest Rs 12,219 crore, penalty Rs 3,760 crore and interest on penalty Rs 6,307 crore. (BS).
Oil and Natural Gas Corporation on Thursday posted a 24.21 per cent year-on-year fall in standalone profit at Rs 6,263.13 crore for the quarter ended September 30. The state-run oil explorer had posted a profit of Rs 8,264.61 crore in the same period last year. Total income of the company fell 10.55 per cent to Rs 27,177.95 crore during the quarter under review. (ET).
Apollo Hospitals on Thursday reported a 36 per cent increase in consolidated net profit to Rs 86.2 crore for the second quarter ended on September 30, 2019. The healthcare major had reported a net profit of Rs 63.5 crore in the July-September period of 2018-19. Revenues grew 18 per cent to Rs 2,840.7 crore during the period, as against Rs 2,412.4 crore in the year-ago period, Apollo Hospitals Enterprise said in a statement. (BL).
Realty firm Omaxe has reported a 61 per cent decline in its consolidated net profit at Rs 4.25 crore for the second quarter of this fiscal year on lower income. Its net profit stood at Rs 10.85 crore in the year-ago period, the company said in a regulatory filing. Total income also declined to Rs 256.01 crore in the July-September quarter of the 2019-20 financial year from Rs 460.42 crore in the corresponding period of the previous year. (BL).
Realty firm Prestige Estates reported 21 per cent increase in its consolidated net profit at Rs 107.1 crore for the fourth quarter of last fiscal on higher sales. Its net profit stood at Rs 88.1 crore in the year-ago period, Bengaluru-based developer said in a regulatory filing. Total income rose by 27 per cent to Rs 1,861.6 crore in the January-March quarter of 2017-18 fiscal from Rs 1,463.3 crore in the corresponding period of the previous year. (BS).
Mining major Vedanta on Thursday reported a 44 per cent year-on-year rise in consolidated profit at Rs 2,730 crore for the September quarter compared with Rs 1,900 crore in the same period last year. The company saw a one-time deferred tax benefit of Rs 1,891 crore in the quarter. Net sales fell 3 per cent to Rs 21,739 crore from Rs 22,432 crore in the same quarter last year. The numbers were lower even as fall in commodity prices were partially offset by additional volumes from commencement of Gamsberg operations and higher sales at Iron Ore Karnataka. (ET).
Economy and Sector News
The government has so far mopped up Rs 6 lakh crore or less than 50 per cent of the total tax collection target of Rs 13.35 lakh crore for the current fiscal, a senior official said. During the beginning of the year, we were given the tax collection (target) of Rs 13.35 lakh crore. Of this, we have already collected Rs 6 lakh crore so far. Refunds due to the tax payers are done swiftly, he said, adding that the refunds have gone up 20 per cent compared to the last fiscal. In more news, Wholesale Price Index (WPI)-based inflation for October 2019 came in at 0.16 per cent, much lower than 5.54 per cent recorded in the same month last year. It was also lower than 0.33 per cent recorded in September 2019, official data released on Thursday showed. Meanwhile, the WPI for August 2019 has now been revised upward to 1.17 per cent from 1.08 per cent earlier. Manufactured products (weightage of 65 per cent) inflation for the month of October 2019 contracted 0.84 per cent (4.57 per cent growth).Primary articles inflation during October 2019 stood at 6.41 per cent (2.46 per cent). (BL).
Following a petition filed by the State Bank of India, the National Company Law Tribunal, Hyderabad, has directed insolvency proceedings against Meenakshi Energy Ltd. The Bench of Judicial Member Anantha Padmanabha Swamy and Technical Member Binod Kumar Sinha admitted the Insolvency Petition under the Banking and Insolvency Code, 2016, and appointed Ravi Shankar Devarakonda as the Interim Resolution Professional. (ET).
Steel manufacturers hiked prices for the first time in the last seven months in November, as the inventory at both the consumer and steel manufacturers’ end shrank after the recent pick-up in demand. Most steel companies, including JSW Steel, have hiked prices of hot-rolled coil by Rs 500-Rs 750 a tonne to Rs 35,500, and TMT bars by Rs 750-Rs 1,000, depending on quality specifications. (BL).
Moody’s Investors Service on Thursday cut India’s economic growth forecast for current year to 5.6 per cent from 5.8 per cent estimated earlier. It said that the GDP slowdown is lasting longer than previously expected. It expected economic activity to pick up in 2020 and 2021 to 6.6 per cent and 6.7 per cent, respectively, but the pace to remain lower than in the recent past. (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 slide on Thursday as evidence of slowdown fueled by Trump trade war mounts. The Dow Jones Index closed at 27,782, down 1.63 points by 0.01%. The Standard & Poors 500 index closed at 3,097, up 2.59 points by 0.08%. The Nasdaq Composite Index closed at 8,479, down 3.08 points by 0.04%.

FTSE 100

UK markets remained in the red through the afternoon to close weaker on Thursday, following the release of disappointing retail sales data, while luxury fashion brand Burberry remained in positive territory on the back of well-received interim results. The FTSE 100 index closed at 7,293, down 58.45 points by 0.80%.

 
 
Global Indices
14/11/2019 Clsg Chg%
Dow Jones 27,782 -0.01
NASDAQ 8,479 -0.04
FTSE 100 7,293 -0.80
Bovespa 106,557 +0.47
15/11/2019 Latest
(4:46AM IST)
Chg%
Nikkei 23,142 -0.76
Hang Seng 26,324 -0.93

Nikkei

Asian stocks started trading early in the morning on Friday on a negative note as the investors will be watching the markets closely. Nikkei is currently trading at 23,142, down 178.32 points by 0.76%.

Precious Metals

Dec. gold gains $10.10, or 0.7%, to settle at $1,473.40/oz on Thursday.

Base Metals

The three-month aluminium price on the London Metal Exchange was lower at the close of trading on Thursday November 14, closing at its lowest level since late-October, while zinc’s outright price similarly fell to its lowest level in just over a month.

Crude Oil

Oil futures finished lower on Thursday after a U.S. government report revealed that domestic crude inventories rose a third straight week, gasoline supplies logged their first climb in seven weeks and production reached a new record level.

 
 
 

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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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