Morning Notes
23rd Jan, 2020
 

Trading Range:

Nifty opened gap up at 12218 on Wednesday and made a high and low of 12225 and 12088 respectively before closing negative at 12107.

Review/Outlook:

For the day, support for Nifty exists at 12070 and 12000 levels whereas resistance for Nifty stands at 12180 and 12230 levels.

Review/Outlook:

Bank Nifty opened gap up at 31062, made a high of 31149, low of 30614, and closed negative at 30701. 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 41,115 -0.50
Nifty 12,107 -0.52
BSE 200 5,094 -0.43
BSE Midcap 15,537 -0.32
BSE Smallcap 14,633 -0.13
Dow Jones 29,186 -0.03
NASDAQ 9,384 +0.14
 

DERIVATIVES INDICATORS FOR JAN 23, 2020:

NIFTY 12106.90 (-62.95) (-0.52%)
NIFTY JAN FUTURE 12145.25 (38.35 Points Premium)
NIFTY PCR - OI 1.00 (-0.08)
NIFTY OPEN INTEREST 1.48 Cr. (+0.67%)
INDIA VIX 16.36 (+3.14%)
NIFTY ROLLOVER 13%

NIFTY OPTIONS ACTIVITY (30-JAN SERIES)

CALL 12100 CE +4.87 lac Shares
CALL 12200 CE +11.56 lac Shares
PUT 12000 PE +1.16 lac Shares
PUT 12100 PE +2.25 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 18,348 -0.86
Bankex 34,971 -0.94
PSU 6,708 -1.37
Healthcare 14,003 -0.02
IT 16,097 +1.09
 
Market Turn Over (`cr)
Index 22/01 21/01
BSE Cash 1,801 1,937
NSE Cash 36,490 34,585
NSE F&O 1,674,538 1,282,524
BSE Delivery % 46.71 41.56
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 33.66 65.35
BSE 200 40.30 58.71
BSE 500 37.72 60.88
Total BSE 39.69 53.92
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 56.16 -1.02
Gold Rs./ 10 Gms 39892.00 -0.05
Silver Rs./ Kg 46200.00 +0.12
Rs.- US $ 71.11 -0.11
Rs.- Euro 78.91 +0.03
FII (Rs cr )
22/01* 21/01*
FIIs +1696.53 +1301.46
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       49,620.00       3,665.53       58,587.00       4,592.71    2,12,989.00     17,783.21     (927.18)
Index Options  47,45,922.00  3,30,867.73  47,45,783.00  3,30,845.02    8,36,860.00     67,579.63        22.71
Stock Futures    2,15,860.00     14,587.93    2,45,722.00     16,326.51  15,78,877.00  1,04,974.56  (1,738.58)
Stock Options       91,534.00       6,602.18       90,088.00       6,491.25       93,982.00       6,458.37      110.93
Total  51,02,936.00  3,55,723.37  51,40,180.00  3,58,255.49  27,22,708.00  1,96,795.77  (2,532.12)
Corporate News
Notwithstanding the slowdown in the automobile sector, the used car market is set to grow to almost twice the size of the new car market in five years, say used car dealers. The used car market in India is expected to reach to 6.7 million-7.2 million cars per year by 2022. Sunil Nayak, AVP, Franchisee Operations, Mahindra First Choice Wheels Ltd (MFCWL) said there has been a steady growth in the past year in used car demand. The price advantage over a new car makes it a great option for many first time car buyers. (BL).
Enduring reliability is simply the trademarked verbiage Apollo Tyres uses to summarise its goals and business practices. Just like a chair needs at least three strong legs to stay upright, Apollo Tyres relies on three sturdy business pillars, with reliability primed as the spare tyre that envelops the branding model. (ET).
Tata Motors will be launching its all-new compact car, the Tata Altroz, in India today. In more news, In a bid to shift the focus away from price increase brought about by the BS-6 transition, Tata Motors is betting on highlighting the value on offering safety and technology features in its new BS-6 compliant models. (BS).
The Adani Group aims to become the world’s largest solar power company by 2025 and the biggest renewable energy firm by 2030. (ET).
The country’s largest carmaker Maruti Suzuki India on Wednesday said its BS-VI compliant vehicles have reached cumulative sales of 5 lakh units ahead of the implementation of emission norms from April 1. The company is now offering 10 models with BS-VI compliant petrol engines, Maruti Suzuki said in a statement. (BL).
Samsung India is eyeing a 20 per cent growth in the refrigerator business in 2020 on the back of the launch of its new range of direct-cool and frost-free refrigerators ahead of the summer. (BL).
IndianOil has signed an MoU with Ghana’s National Petroleum Authority (NPA) to offer assistance and technical expertise to the country in implementing its National LPG Promotion Policy. (ET).
Sterlite Power on Wednesday said it has inked an exclusive agreement with the US-based Smart Wires to bring SmartValve to Indian market which will enable resourceful grid management. (BL).
GAIL India Ltd, the country’s largest gas utility, plans to invest over Rs 45,000 crore over the next five years to expand the National Gas Pipeline Grid and city gas distribution network to help push for greater use of environment-friendly fuel, its Chairman Ashutosh Karnatak said. (BS).
Piramal Enterprises Limited announced the successful completion of its Rights Issue that closed on January 21, 2020. The issue saw participation from most of its existing large institutional investors, as well as retail investors. The issue has been over subscribed ~1.14 times. The ~Rs3,650cr Rights Issue offered an opportunity to all its existing shareholders to participate in the capital raise. (BL).
Quarterly Earnings
Tata Communications’ net profit for October -December quarter declined by 66.2% to Rs 58.5 crore when compared to same period last year. Tata Communications’ net profit for October -December quarter declined by 66.2% to Rs 58.5 crore when compared to same period last year. Gross revenue for the quarter dipped by Rs 4,228.7 crore , a marginal 1% dip when compared on a like to like basis. (BL).
Ujjivan Small Finance Bank's net profit for the December quarter has doubled at Rs 90 crore due to a surge in micro lending despite slowing customer acquisition in Assam and in coastal Karnataka where it faced repayment issues. Net interest income, the difference between what it earned from lending and what it paid for funds, rose 52% that helped it post earnings growth. Net interest margin, a measure of profitability, shrunk a little to 10.9% for the quarter under review as compared with 11% in the year ago period. Net interest margin, a measure of profitability, shrunk a little to 10.9% for the quarter under review as compared with 11% in the year ago period. (ET).
Larsen & Toubro (L&T) Consolidated profit increased 15.20 per cent year-on-year to Rs 2,352 crore. Revenue grew 6 per cent to Rs 36,243 crore. International revenue stood at Rs 12,871 crore and accounted for 36 per cent of overall revenue. (ET).
RBL Bank on Wednesday reported a 69 per cent dip in its net profit at Rs 69.9 crore for the quarter ended December 31, 2019 on account of rise in bad loans. The private sector lender had registered a net profit of Rs 225.20 crore in October-December period of the previous fiscal. However, total income increased to Rs 2,64,430 crore as against Rs 1,029.20 crore for the same period year ago, the bank said in a regulatory filing. Net interest income was up 41 per cent to Rs 922.6 crore during the quarter as against Rs 655.10 crore in the year-ago period. (ET).
Drug firm Alembic Pharmaceuticals on Wednesday reported a 37.89 per cent rise in consolidated net profit to Rs 234.19 crore for the quarter ended December 31, 2019. The company had posted a net of Rs 169.83 crore for the corresponding period of the previous fiscal. Consolidated revenue from operations of the company rose to Rs 1,209.13 crore for the quarter under consideration as against Rs 1,018.15 crore for the same period year ago. International formulations grew by 48 per cent to Rs 664 crore in the December ended quarter, the company said. (ET).
Axis Bank on Wednesday posted 4.53 per cent year-on-year rise in profit at Rs 1,757 crore for the quarter ended December 31. The private lender had posted a profit of Rs 1,680.85 crore in the same period last year. Net interest income (NII) of the bank increased 15 per cent to Rs 6,453 crore on a yearly basis. Asset quality of the lender improved with percentage of gross non-performing assets (GNPA) coming in at 5 per cent against 5.75 per cent in the previous financial year. The figure stood at 5.03 per cent in the preceding quarter ended September 30, 2019. Percentage of net NPAs improved to 2.09 per cent over 2.36 per cent in Q3FY19. The figures stood at 1.99 per cent in the September quarter on FY20. (ET).
Economy and Sector News
The Union Cabinet on Wednesday approved amendments/extension/repeal in the Acts and regulations dealing with Goods and Services Tax (GST) and Value Added Tax (VAT). The Central Goods and Service Tax Act, 2017 is to be amended as Central Goods and Service Tax (Amendments) Regulation, 2020, while the Union Territory Goods and Service Tax Act, 2017 will be amended as Union Territory Goods and Service Tax (Amendments) Regulation, 2020. (BL).
India slipped 10 places to 51st position in the 2019 Democracy Index’s global ranking, according to The Economist Intelligence Unit, which cited “erosion of civil liberties” in the country as the primary cause for the downtrend. India’s overall score fell from 7.23 in 2018 to 6.90 in the Index that provides a snapshot of the current state of democracy worldwide for 165 independent states and two territories. (ET).
The Mundra port on Wednesday berthed its first Liquified Natural Gas (LNG) cargo at its terminal, multiple sources informed. This marks the commissioning of the India’s fifth and Gujarat’s third LNG terminal, which is jointly developed by Gujarat Government-run companies and Adani Group, through GSPC LNG Limited, an SPV. The Mundra port on Wednesday berthed its first Liquified Natural Gas (LNG) cargo at its terminal, multiple sources informed. This marks the commissioning of the India’s fifth and Gujarat’s third LNG terminal, which is jointly developed by Gujarat Government-run companies and Adani Group, through GSPC LNG Limited, an SPV.. (BL).
India Ratings and Research (Fitch Group) expects gross domestic product (GDP) to grow at 5.5% yoy in FY21, however, the downside risks persist. This is only a marginal improvement over the GDP growth of 5.0% estimated by National Statistical Office for FY20. (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 turned in a mixed performance on Wednesday as corporate releases continued to stream in and focus remained on the spread of a deadly virus in China. The Dow Jones Index closed at 29,186, down 9.77 points by 0.03%. The Standard & Poors 500 index closed at 3,322, up 0.96 points by 0.03%. The Nasdaq Composite Index closed at 9,383, up 12.96 points by 0.14%.

FTSE 100

UK markets remained in the red by the close on Wednesday, as sterling was positive against its major pairs after the latest manufacturing survey from the Confederation of British Industry. The FTSE 100 index closed at 7,572, down 38.78 points by 0.51%.

 
 
Global Indices
22/01/2019 Clsg Chg%
Dow Jones 29,186 -0.03
NASDAQ 9,383 +0.14
FTSE 100 7,572 -0.51
Bovespa 118,391 +1.17
23/01/2020 Latest
(4:55AM IST)
Chg%
Nikkei 24,031 +0.70
Hang Seng 28,341 +1.27

Nikkei

Asian share markets started trading early in the morning on Thursday on a positive note as the investors will be closely watching the US markets. Nikkei is currently trading at 24,031, up 166.79 points by 0.70%.

Precious Metals

Gold futures ended with a modest loss on Wednesday, lacking support as some equities markets in Asia and the U.S. climbed and while commodities traders weighed the potential economic impact of an outbreak of a serious virus in China.

Base Metals

The three-month copper price on the London Metal Exchange was lower at the close of trading on Wednesday January 22, settling at a six-week low against strong trading volumes, while a 2.3% decline in zinc saw it close below nearby support levels.

Crude Oil

Oil futures fell on Wednesday to mark their lowest settlement in about seven weeks as fears of an oversupply of crude, and potential hit to demand on the back of the coronavirus outbreak in China, outweighed a disruption to Libyan production.

 
 
 

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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.ss

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