Morning Notes
19th Aug, 2019
 

Trading Range:

Nifty opened gap up at 11044 on Friday and made a high and low of 11069 and 10924 respectively before closing positive at 11048.

Review/Outlook:

For the day, support for Nifty exists at 10980 and 10920 levels whereas resistance for Nifty stands at 11120 and 11200 levels.

Review/Outlook:

Bank Nifty opened gap down at 27920, made a high of 28251, low of 27721, and closed positive at 28217. For the day, support for Bank Nifty exists at 28000 and 27800 levels whereas resistance for Bank Nifty stands at 28400 and 28600 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 37,350 +0.10
Nifty 11,048 +0.17
BSE 200 4,608 +0.17
BSE Midcap 13,491 +0.10
BSE Smallcap 12,585 +0.11
Dow Jones 25,886 +1.20
NASDAQ 7,895 +1.67
 

DERIVATIVES INDICATORS FOR AUG 19, 2019:

NIFTY 11047.80 (+18.40) (+0.17%)
NIFTY AUG FUTURE 11065.65 (16.85 Points Premium)
NIFTY PCR - OI 1.21(+0.01)
NIFTY OPEN INTEREST 2.13Cr. (+5.54%)
INDIA VIX 16.64 (+1.77%)
NIFTY ROLLOVER 15%

NIFTY OPTIONS ACTIVITY (29-AUG SERIES)

CALL 11200 CE +1.68 lac Shares
CALL 11000 CE +0.36 lac Shares
PUT 10800 PE +1.48 lac Shares
PUT 11000 PE +1.86 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 15,745 +1.14
Bankex 31,890 +0.75
PSU 6,544 +0.63
Healthcare 15,745 +1.14
IT 31,890 +0.75
 
Market Turn Over (`cr)
Index 16/08 14/08
BSE Cash 2,024 5,787
NSE Cash 31,199 33,437
NSE F&O 829,535 2,454,436
BSE Delivery % 41.68 53.69
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 47.52 52.48
BSE 200 54.23 45.77
BSE 500 50.40 49.60
Total BSE 45.10 49.49
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 55.35 +0.87
Gold Rs./ 10 Gms 37938.00 -0.59
Silver Rs./ Kg 43824.00 -0.58
Rs.- US $ 71.14 -0.73
Rs.- Euro 78.91 -0.88
FII (Rs cr )
16/08* 14/08*
FIIs +2024.82 -560.13
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       53,877.00       3,914.68       58,666.00       4,208.94    2,93,886.00     23,169.55  (294.26)
Index Options  26,59,590.00  1,72,890.45  26,52,117.00  1,72,397.21    7,44,124.00     57,392.72   493.24
Stock Futures    2,04,025.00     11,052.66    2,12,054.00     11,543.58  15,75,818.00     91,458.65  (490.92)
Stock Options       96,899.00       5,374.83       98,173.00       5,450.86    1,01,540.00       5,621.53    (76.03)
Total  30,14,391.00  1,93,232.62  30,21,010.00  1,93,600.59  27,15,368.00  1,77,642.45  (367.97)
Corporate News
Two promoter entities of Reliance Communications (RCom) have pledged 11.5 per cent more stake in favour of Axis Trustee Services, according to regulatory filings. (BL).
Coffee Day Enterprises, which runs the popular Cafe Coffee Day chain, has said that its total debt is at Rs 4,970 crore. (ET).
Drug major Cipla on Saturday said its shareholders have approved a proposal to raise up to Rs 3,000 crore through issuance of equity shares or other securities convertible into equity shares. The move was approved by Cipla’s Board in May 2019. (BL).
KNR Constructions Limited has entered into a Share Purchase Agreement with Cube Highways and Infrastucture II Pte Limited for KNR Shankarampet Projects Private Limited, a special purpose vehicle (SPV). (ET).
Mahindra & Mahindra expanded its global footprint with the inauguration of its Sri Lankan automotive assembly plant at Welipenna, near Colombo. (ET).
As an unprecedented slowdown continues to rattle the automobile sector, vehicle and components manufacturers have resorted to temporary factory closures to align production with demand. And temporary workers have begun to get pink slips. What started as a one-off event is now becoming routine. Yet again this week, some companies, including Tata Motors, Hero MotoCorp and two TVS Group firms have announced temporary factory closures. (BL).
A section of employees of heavy commercial vehicle maker Ashok Leyland went on a “sit-in strike” at the Ennore assembly unit here on Friday, demanding an increase in annual bonus from five per cent to 10 per cent. (BS).
Fitch Ratings on Friday raised the outlook on Reliance Industries (RIL) to positive from stable due to the company’s potential to further deleverage following its announcement to eliminate its net debt by March 2021. (ET).
The National Company Law Appellate Tribunal (NCLAT) on Friday ordered liquidation of debt-ridden Amtek Auto as it declined lenders’ request for extension of insolvency resolution process deadline. (BS).
Sundaram-Clayton Ltd (SCL), a TVS Group Company and a manufacturer of aluminium die-cast products, has announced a closure of its factory in Chennai for two days as an unprecedented slowdown in the automobile sector prompt ancillary units to cut production in their factories. (BL).
Home-grown FMCG company, Emami Ltd, is looking to grow the ‘7-Oils-in-One’ hair oil portfolio into a Rs 200 crore brand over the next two years. (BL).
State-run miner NMDC on Friday announced no change in its iron ore prices for August month and reported a 37 per cent jump in production to 1.95 million tonne in July 2019 compared to 1.42 million tonnes in the year-ago month. (ET).
Bracing for a future with less-polluting fuels, oil refiner Hindustan Petroleum Corp is planning a pilot program for swapping batteries of electric two- and three-wheelers at its outlets by December. (BL).
The country’s largest two-wheeler maker, Hero MotoCorp, on Friday said its manufacturing plants have been shut for four days till August 18 as part of an annual routine and also to adjust production in line with the current market demand. In a regulatory filing, Hero MotoCorp said its manufacturing facilities will be closed from August 15 to 18, 2019. (BL).
GVK Power & Infrastructure Ltd has signed a term sheet with a strategic investor for GVK Airport Holdings Ltd, its subsidiary, but is awaiting various mandatory clearances and lenders’ approvals to conclude the deal. (ET).
Britannia Industries eyes fresh capex of Rs.200 crore over a three-year-period to expand its ‘adjacencies’ portfolio. The capex will go mostly towards manufacturing. (BL).
Over 3,000 temporary employees have lost jobs with Maruti Suzuki India (MSI) due to the ongoing slump in the automobile industry, a top company executive has said. (BS).
Corporate Quarterly Earnings
Assam-based Numaligarh Refinery (NRL) has said the company recorded highest-ever revenue at Rs 18,511 crore in 2018-19, registering a growth of 16.25 per cent. The 26th annual general meeting was held in Guwahati on Friday. The company also declared a dividend of Rs 17 per share for the fiscal year. The company in a statement said that profit after tax (PAT) for the financial year was marginally lower at Rs 1,968 crore. Earnings per share (EPS) stood at Rs 27.79 while net worth reached Rs 5,551 crore. (BL).
Kamdhenu, a leading manufacturer and seller of branded TMT bars, posted a 44% growth in profit after tax (PAT) in its steel business at Rs 9.5 crore in Q1FY20 up from Rs 6.6 crore in Q1 FY19. The company’s profit before tax in steel went up 25.4% to Rs 12.8 crore in Q1FY20 against Rs 10.2 crore in Q1FY19. The steel business contributed 82% of the company’s revenues while paints accounted for the remaining 18%. (ET).
Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) has reported a 71 per cent decline in consolidated net profit at Rs 10.7 crore for the June quarter on lower sales. The company had posted a net profit of Rs 37.23 crore in the year-ago period, DFPCL said in a regulatory filing. Total income during the period under review fell to Rs 1,131.45 crore as compared to Rs 2,233.78 crore in the year-ago quarter. (ET).
Jain Irrigations Systems Ltd (JISL) has reported 74 per cent decline in consolidated net profit at Rs 22.14 crore for the June 2019 quarter. The firm had posted a net profit of Rs 85.18 crore in the year-ago period. Total income during the June quarter fell to Rs 1,950.17 crore from Rs 2,152.82 crore in the same period last year, a regulatory filing said. (BL).
Economy and Sector News
Blu Smart Mobility, a mobility startup focused on electric vehicles, has raised $2.2 million in angel funding from multiple investors, with JITO Angel Network leading the round. Hero Motocorp, MayField Fund, Centrum, Micromax and a number of individual investors also participated in the round. (BL).
The Centre has sweetened the deal for start-ups and other firms with regard to the issuance of shares with differential voting rights (DVR). Promoters of Indian companies can now issue a much larger proportion of shares with such rights, helping them retain control over their companies even as they raise equity capital from investors. (ET).
Foreign investors pulled out Rs.8,319 crore on a net basis from capital markets in the first half of August, continuing their selling spree in the Indian market amid uncertainty over FPI tax and global trade worries. According to the depository data, foreign portfolio investors (FPIs) sold equities worth Rs.10,416.25 crore on a net basis during August 1-16 period. FPIs, however, invested a net Rs.2,096.38 crore in the debt securities during the period. (BL).
Delays in bidding rounds notwithstanding, the government has increased the expression of interest (EoI) submission cycle for oil and gas acreage to three times a year from two times earlier, the Directorate General of Hydrocarbons (DGH) said. In more news, widespread rains across the country this week substantially improved planting of most crops, particularly oilseeds and coarse cereals. The total sown area of kharif crops touched 926 lakh hectares (lh) till Friday compared to 966 lh covered in the corresponding week last year, according to data released by the Agriculture Ministry. (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 closed higher on Friday as investors remained focused on the bond market and US-China trade relations. The Dow Jones Index closed at 25,886, up 306.62 points by 1.20%. The Standard & Poors 500 index closed at 2,889, up 41.08 points by 1.44%. The Nasdaq Composite Index closed at 7,896, up 129.38 points by 1.67%.

FTSE 100

UK markets managed to keep their heads above water for the close on Friday, bouncing back from heavy losses in the previous session, but underperforming their European peers somewhat as sterling ticked higher. The FTSE 100 index closed at 7,896, up 50.14 points by 0.71%.

 
 
Global Indices
16/08/2019 Clsg Chg%
Dow Jones 25,886 +1.20
NASDAQ 7,896 +1.67
FTSE 100 7,117 +0.71
Bovespa 99,806 +0.76
19/08/2019 Latest
(7:23AM IST)
Chg%
Nikkei 20,561 +0.70
Hang Seng 26,116 +1.48

Nikkei

Asian stocks rose on Monday as hopes of more stimulus from central banks around the world and steps being taken by major economies such as Germany and China soothed investors’ fears of a sharp global economic slump. Nikkei is currently trading at 20,561, up 142.31 points by 0.70%.

Precious Metals

Gold ended lower on Friday, distancing itself from the more-than six-year high it settled at a day earlier, but the metal’s investment haven appeal contributed to a third weekly climb in a row.

Base Metals

The three-month price of nickel on the London Metal Exchange remained elevated at the close of trading on Friday August 16, retaining gains made at Thursday’s close above the $16,000 per tonne support level, while a weak LME tin price could see the two prices converge.

Crude Oil

Crude oil prices rose on Monday following a weekend attack on a Saudi oil facility by Yemeni separatists, although price gains were capped by an unusually downbeat OPEC report that stoked concerns about demand growth.

 
 
 

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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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