Morning Notes
17th Jan, 2020
 

Trading Range:

Nifty opened gap down at 12347 on Thursday and made a high and low of 12389 and 12316 respectively before closing positive at 12356.

Review/Outlook:

For the day, support for Nifty exists at 12280 and 12230 levels whereas resistance for Nifty stands at 12410 and 12500 levels.

Review/Outlook:

Bank Nifty opened gap down at 31811, made a high of 31989, low of 31692, and closed flat to positive at 31854. For the day, support for Bank Nifty exists at 31650 and 31500 levels whereas resistance for Bank Nifty stands at 32000 and 32300 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 41,933 +0.14
Nifty 12,356 +0.10
BSE 200 5,182 +0.15
BSE Midcap 15,625 +0.77
BSE Smallcap 14,648 +0.78
Dow Jones 29,298 +0.92
NASDAQ 9,357 +1.06
 

DERIVATIVES INDICATORS FOR JAN 17, 2020:

NIFTY 12355.50 (+12.20) (+0.10%)
NIFTY JAN FUTURE 12374.35 (18.85 Points Premium)
NIFTY PCR - OI 1.59 (+0.02)
NIFTY OPEN INTEREST 1.48 Cr. (+2.30%)
INDIA VIX 14.18 (+0.44%)
NIFTY ROLLOVER 10%

NIFTY OPTIONS ACTIVITY (30-JAN SERIES)

CALL 12400 CE +0.66 lac Shares
CALL 12500 CE +2.64 lac Shares
PUT 12400 PE +2.08 lac Shares
PUT 12300 PE +0.78 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 18,832 +0.24
Bankex 36,320 +0.10
PSU 6,962 -0.58
Healthcare 13,876 +0.64
IT 16,145 +0.01
 
Market Turn Over (`cr)
Index 16/01 15/01
BSE Cash 7,832 3,741
NSE Cash 34,228 36,094
NSE F&O 3,227,321 1,381,029
BSE Delivery % 48.95 52.85
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 45.54 53.47
BSE 200 51.74 47.26
BSE 500 58.68 39.92
Total BSE 53.65 39.47
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 58.52 +1.23
Gold Rs./ 10 Gms 39686.00 +0.19
Silver Rs./ Kg 46422.00 +0.07
Rs.- US $ 70.96 +0.18
Rs.- Euro 79.03 +0.01
FII (Rs cr )
16/01* 15/01*
FIIs +63.28 -331.14
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       29,456.00       2,270.02       36,084.00       2,856.09    1,62,173.00     14,129.11  (586.07)
Index Options  60,93,182.00  4,21,502.73  60,83,962.00  4,20,866.28    6,61,016.00     56,047.84   636.45
Stock Futures    1,58,300.00     11,135.96    1,62,806.00     11,351.87  15,34,183.00  1,04,471.38  (215.91)
Stock Options       59,559.00       4,440.37       60,991.00       4,542.10       85,342.00       5,912.41  (101.73)
Total  63,40,497.00  4,39,349.08  63,43,843.00  4,39,616.34  24,42,714.00  1,80,560.74  (267.26)
Corporate News
L&T has delivered the 51st K9 VAJRA-T Gun ahead of schedule. Flagged off by Defence Minister Rajnath Singh, L&T Defence is currently executing the ‘K9 VAJRA-T’ 155mm/52 calibre Tracked, Self-Propelled Howitzer Guns program - the largest contract awarded to an Indian private company by the Ministry of Defence, through global competitive bidding. The ‘K9 VAJRA-T’ Howitzer Programme involves the delivery of 100 systems in 42 months with an associated Engineering Support Package (ESP). This package covers spares, documentation and training and Maintenance Transfer of Technology (MToT) to the Army Base Workshop to support the Howitzer regiments throughout their life cycle, the company said. (BL).
The Central Board of Direct Taxes (CBDT) has asked three senior officers of the Income-Tax Department to explain the delay in taking action with regard to the cancellation of Tata Trusts’ registration. Sources close to the development said the CBDT has issued notices to three senior officers — Sanjeev Dutt, Rajeev Nabar and S Jindal — asking why no action was taken against the Trusts when the Comptroller and Auditor General of India (CGI) had flagged violations way back in 2013. (ET).
GMR Infrastructure on Thursday said it will sell 49 per cent stake in airport business to Tata Group entity TRIL Urban Transport, a higher quantum than announced earlier. The diversified group had earlier announced offloading 44.44 per cent shareholding in the airport business. (BL).
Orient Electric Ltd, an arm of the CK Birla Group, has launched the new Eleganza series of air-circulating luxury chandeliers. (BL).
The Competition Commission of India (CCI) has ordered investigation against Asian Paints for using its dominant position to allegedly prevent JSW Paints from entering the market. In the interim order, it has directed the Director General to investigate and submit a report within 60 days. In more news. (ET).
JSW Group has shut down JSW Forma, its furniture business, in less than a year after its grand launch in April 2019. JSW Living, the holding company of the furniture business, had announced plans to invest up to Rs.250 crore over five years to become a leading steel furniture company. (BL).
Food giant Nestle will invest up to 2 billion Swiss francs ($2.07 billion) to source more recycled plastics for packaging its products and reduce its use of new plastics by a third by 2025, it said on Thursday. (BS).
Mukesh Ambani-led telecom operator Reliance Jio continues to widen its subscriber base as rival Vodafone Idea’s subscriber number witnesses a free fall in the month of November 2019 . (ET).
Granules India said it is considering buyback of equity shares of the company on January 21, 2020. (BL).
The Supreme Court dismissed petitions of telecom operators seeking review of the definition of ‘adjusted gross revenue’ that makes them liable to pay thousands of crores in pending dues . (BQ).
Rallis said that production is expected to commence for Dahej chemical plant in 2020-21. Metribuzin Phase II expansion of 500 MTPA is expected to be commercialised by February. The board also approved setting rose of R&D Facility in Bengaluru. (BQ).
Quarterly Earnings
Private sector lender Karnataka Bank on Thursday reported a 12 per cent decline in its net profit at Rs 123.14 crore for the third quarter ending December 31, 2019 on account of rise in bad loans. The Mangalore-headquartered bank had reported a net profit of Rs 140.41 crore in the year-ago period, the bank said in regulatory filing. However, the total income of the bank rose to Rs 2,023.68 crore from Rs 1,815.79 crore in the same quarter a year ago . (BL).
Private sector lender South Indian Bank on Thursday posted a 7.9 per cent rise in net profit to Rs 90.54 crore for the third quarter ended December 31. The bank had recorded a net profit of Rs 83.85 crore in the corresponding period of the previous financial year. Total income of the lender improved to Rs 2,187.73 crore during the quarter under review, as against Rs 1,921.93 crore in the year-ago period, South Indian Bank said in a regulatory filing. (ET).
Business process management (BPM) major WNS Holdings on Thursday reported over 8 per cent rise in net profit to USD 30.9 million for December 2019 quarter. As per the general accounting standards, the company had registered a net profit of USD 28.6 million in the same quarter last year, WNS said in a statement. The company's revenues increased by 19.7 per cent to USD 239.2 million in the quarter under review, from USD 199.7 million in the year-ago period, it added. (ET).
Cyient’s third-quarter revenue dropped over 5% year-over-year as the engineering services company signed a ‘long-term risk-sharing agreement’ with a large client which required it to provide a one-time discount in the period and it continued to shed jobs. In the third-quarter, the company’s revenue dropped to $155.2 million, from $165 1 million a year ago. The company’s margin dropped 277 basis points to 9.6% in the same period. The company’s headcount also dropped to 14,472 from 15,193 a year ago. Involuntary attrition stood at 5.2% in the quarter, voluntary attrition was 19.7%, the company said. (ET).
Economy and Sector News
Indicating the government’s growing impatience with the tussle between e-commerce giants and domestic traders and shop-owners over malpractices such as deep discounting and predatory pricing, Commerce and Industry Minister Piyush Goyal said that Amazon was not doing a great favour to the country by investing $1 billion. (BL).
The Maharashtra government has appointed a sub-committee to study and recommend an appropriate scheme for farmers having overdue of short-term crop loan/restructured crop a loan above Rs.2 lakh and for those who have repaid their crop loan on time. (ET).
The Central Bureau of Investigation (CBI) has booked Adani Enterprises and three senior officials of the National Cooperative Consumers' Federation of India (NCCF) for rigging an imported coal supply tender to favour the company. The CBI has levied allegations of criminal conspiracy, cheating and criminal misconduct by public servants. (BL).
The bilateral trade between India and China declined by about $3 billion in 2019 while India’s trade deficit continues to be high amounting to $56.77 billion as both countries experienced economic slowdown. The trade figures released by the General Administration of Customs of China (GACC) on Tuesday projected the total trade in Chinese currency RMB-Yuan terms registered a marginal increase of 1.6 per cent year on year but in dollar terms it was down by about USD three 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 surged to record highs on Thursday, fueled by tech stocks, solid retail sales data and upbeat quarterly earnings from Morgan Stanley. The Dow Jones Index closed at 29,298, up 267.42 points by 0.92%. The Standard & Poors 500 index closed at 3,317, up 27.52 points by 0.84%. The Nasdaq Composite Index closed at 9,357, up 98.44 points by 1.06%.

FTSE 100

UK markets remained in the red at the close on Thursday, following disappointing updates from the likes of Pearson and Whitbread, as investors continued to mull over the ‘phase one’ trade deal between the US and China. The FTSE 100 index closed at 7,610, down 32.99 points by 0.43%.

 
 
Global Indices
16/01/2019 Clsg Chg%
Dow Jones 29,298 +0.92
NASDAQ 9,357 +1.06
FTSE 100 7,610 -0.43
Bovespa 116,704 +0.25
17/01/2020 Latest
(4:51AM IST)
Chg%
Nikkei 23,933 +0.07
Hang Seng 28,883 +0.38

Nikkei

Asian markets started trading early in the morning on Friday on a positive note as the investors watch the US markets closely. Nikkei is currently trading at 23,933, up 16.55 points by 0.07%.

Precious Metals

Gold futures gave up earlier gains to finish lower on Thursday, as some upbeat U.S. economic data dulled haven demand for the precious metal.

Base Metals

The three-month nickel price on the London Metal Exchange was lower at the close of trading on Thursday January 16, falling by more than 3.5% to settle below nearby resistance, while a steady upswing in tin’s outright price saw it close at a six-month high.

Crude Oil

Oil futures finished higher on Thursday as news of the Senate approval of the U.S.-Mexico-Canada trade agreement, along with the signing of the China-U.S. trade deal on Wednesday, boosted prospects for energy demand.

 
 
 

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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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