Morning Notes
24th Jul, 2019

Trading Range:

Nifty opened gap up at 11372 on Tuesday and made a high and low of 11398 and 11303 respectively before closing negative at 11331.


For the day, support for Nifty exists at 11280 and 11210 levels whereas resistance for Nifty stands at 11390 and 11460 levels.


Bank Nifty opened gap up at 29342, made a high of 29366, low of 29078, and closed negative at 29128. For the day, support for Bank Nifty exists at 28900 and 28700 levels whereas resistance for Bank Nifty stands at 29300 and 29500 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 37,983 -0.13
Nifty 11,331 -0.13
BSE 200 4,720 -0.21
BSE Midcap 13,915 -0.56
BSE Smallcap 13,206 +0.38
Dow Jones 27,349 +0.65
NASDAQ 8,251 +0.58


NIFTY 11331.05 (-15.15) (-0.13%)
NIFTY JUL FUTURE 11333.80  (2.75 Points Premium)
NIFTY PCR - OI 1.06(+0.05)
NIFTY OPEN INTEREST 2.13Cr. (+9.21%)
INDIA VIX 13.42 (+3.21%)


CALL 11350 CE +6.91 lac Shares
CALL 11400 CE +5.29 lac Shares
PUT 11200 PE +2.92 lac Shares
PUT 11250 PE +2.18 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 16,234 -0.52
Bankex 32,915 -0.22
PSU 7,272 -0.73
Healthcare 12,780 -0.34
IT 15,541 +0.24
Market Turn Over (`cr)
Index 23/07 22/07
BSE Cash 1,851 2,028
NSE Cash 32,335 32,174
NSE F&O 1,225,916 1,063,981
BSE Delivery % 50.10 38.91
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 38.61 61.39
BSE 200 42.79 56.72
BSE 500 49.00 50.00
Total BSE 45.19 48.16
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 57.17 +1.69
Gold Rs./ 10 Gms 35021.00 -0.32
Silver Rs./ Kg 41434.00 +0.37
Rs.- US $ 69.03 +0.15
Rs.- Euro 76.98 -0.35
FII (Rs cr )
23/07* 22/07*
FIIs -1929.23 -1083.82
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
(Rs. Cr)
No. of
(Rs. Cr)
No. of
(Rs. Cr)
(Rs. Cr)
Index Futures    1,19,781.00       9,265.19    1,25,875.00       9,864.30    2,73,206.00     21,718.93     (599.10)
Index Options  34,05,589.00  2,27,320.97  34,16,379.00  2,28,267.45    6,06,600.00     47,433.77     (946.48)
Stock Futures    6,07,667.00     36,810.03    6,10,897.00     37,103.87  14,43,296.00     88,903.01     (293.84)
Stock Options       86,654.00       5,258.63       87,341.00       5,276.06       70,627.00       4,191.64       (17.42)
Total  42,19,691.00  2,78,654.82  42,40,492.00  2,80,511.67  23,93,729.00  1,62,247.35  (1,856.85)
Corporate News
India's Reliance Industries talks to grant a minority stake in its refining assets to Saudi Aramco have hit a roadblock over the valuation and structure of the deal. In more news, Reliance Retail, a subsidiary of Reliance Industries (RIL), has been an outlier. The company said its revenue by 80 per cent and operating profit by 98 per cent on an annualised basis during the past 13 quarters. In the June 2019 quarter, the revenue and operating profit growth was 47 per cent and 66 per cent, respectively. (BL).
Pharma major Dr Reddy’s Laboratories Ltd has launched Ramelteon tablets, a therapeutically equivalent generic version of Rozerem (ramelteon) tablets, approved by the US Food and Drug Administration (USFDA). The Rozerem brand had US sales of approximately $91.3 million for the most recent twelve months ending in May 2019 according to IQVIA Health. Rozerem is a trademark of Takeda Pharmaceutical Company Limited, the Hyderabad-based company said in a release. (ET).
Anand Piramal, Executive Director of the Piramal Group, has invested an undisclosed amount in his personal capacity in e-commerce marketplace, Snapdeal. The last round of funding Snapdeal received was in May 2017. (BL).
Ice-cream-maker Vadilal Industries Limited is undergoing top level changes with its Chairman Rajesh Gandhi resigning amid regulatory compliance requirements. (ET).
Air-conditioning and refrigeration major Blue Star on Tuesday said it has won Rs.253 crore order from the Mumbai Metro Rail Corporation Ltd (MMRCL). (ET).
Water treatment firm VA Tech Wabag on Tuesday said it has bagged Rs.1,187 crore order from Bihar Urban Infrastructure Development Corporation (BUIDCO) to develop sewage treatment plants in the state capital. (BS).
Greenko Group has raised $ 950 million through an international Green Bond offer which was subscribed by over three times from various global investors. (BL).
Insurance regulator IRDAI chairman S C Khuntia said the life and general insurance subsidiaries of cash strapped mortgage lender DHFL are safe and have adequate solvency. Troubled DHFL has two insurance subsidiaries - DHFL Pramerica Life insurance and DHFL General Insurance. (BS).
Fitch Ratings has affirmed India-based Indian Oil Corporation Ltd's (IOC) Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BBB-'. The Outlook is Stable. The agency has also affirmed IOC's senior unsecured rating and the ratings on its outstanding senior unsecured debt at 'BBB-'. Fitch equates IOC's rating with that of its largest shareholder, the state of India (BBB-/Stable), based on Fitch's Government-Related Entities (GRE) Rating Criteria. (ET).
Corporate Quarterly Earnings
L&T consolidated revenue from continued operations grew by 9.7% yoy to ~Rs29,636cr. EBITDA was up by 20.4% yoy to ~Rs3,319cr. EBITDA margin expanded by ~99bps yoy to 11.2%. Consolidated PAT including PAT from discontinued operations grew by 21.2% yoy to Rs1,473cr. PAT from continuing operations for the quarter ended June 30, 2019 came in at ~Rs1,361cr, up 20.5% yoy. (BL).
Hindustan Unilever (HUL) reported revenue growth of 6.6% yoy to Rs10,114cr driven by a 5% underlying volume growth. Gross margin for the quarter remained flat led by lower advertisement cost and other expenses. EBITDA grew by 17.6% yoy to Rs2,647cr. The EBITDA margin expanded 244bps yoy to 26.2%. Thus, the company reported PAT growth of 14.8% yoy to Rs1,755cr. (ET).
Zee Entertainment Enterprises consolidated revenue grew by 13.3% yoy (flat sequentially) to Rs2,008.1cr. The rise in revenue was driven by 46.7% yoy growth in the domestic subscription revenue. Driven by strong revenue growth, EBITDA reported 16.6% yoy growth to Rs659.8cr. The EBITDA margin expanded by 93bps yoy to 32.9%. Led by strong EBITDA growth and higher other income, the company’s reported profit stood at Rs529.8cr, up 62.6% yoy. (ET).
Muted volume growth in fertiliser, sugar and bioseeds sectors may have affected the first quarter performance of diversified conglomerate DCM Shriram, but the firm has registered a marginal 1.3 per cent growth in its net profit to Rs.221 crore from Rs.218 crore in the corresponding quarter in 2018-19, a company release said. However, its revenues from operations posted a year-on-year drop of 8 per cent to Rs.1,902 crore in the quarter ended June 30 from Rs.2,068 crore in the corresponding quarter in last fiscal. (BL).
Paper manufacturer JK Paper reported a 23 per cent increase in net profit for the first quarter ended June 30, 2019 at Rs.124 crore (Rs.95 crore). However, total income declined to Rs.732 crore from Rs.801 crore in the same quarter last year. For the quarter under review, profit before interest and depreciation (EBIDTA) stood at Rs.256 crore (Rs.207 crore). (ET).
Rural and semi urban financiers Mahindra Finance saw its profits decline by 75 per cent to Rs 68 crores in the June quarter results as against Rs 269 crores during the corresponding period last year due an increase in provisions for stressed loans and elevated cost of financing owing to tight liquidity conditions for nonbanks. The profit for the consolidated business, which includes the insurance brokerage business, declined by 66 percent in this period to Rs 108 crore as against Rs 322 crore. The NBFC’s asset under management grew 22 per cent and is now about Rs.71000 crore as against Rs 58700 crore last year driven mostly by growth in the loans to finance commercial vehicles which now makes for 19 per cent of all loans given by the NBFC as against 15 per cent last year. Loans for utility vehicle at 26 per cent of the total advances made for the biggest asset chunk. The nonbank’s total income in the reporting quarter grew by 24 per cent to Rs.2413 crores as against Rs.1940 crore last year. Asset quality improved on an annual basis but deteriorated sequentially. Provisions worth Rs. 6,196 were made in the quarter to stressed loan pools, a 110 per cent rise from Rs.2,938 crore provisions taken by the NBFC in the corresponding quarter last year. (ET).
SBI Life Insurance on Tuesday reported a 5% rise in net profit for the quarter ended June 30, 2019. The private sector insurer’s net profit rose to Rs 372 crore during the quarter, compared with Rs 354 crore in the corresponding quarter of the previous year. The insurer’s shares closed at Rs.776, up 1.7 per cent on Tuesday. Its New Business Premium (NBP), a marker for the insurance premium due in the first policy year, increased by 52% to Rs 3150 crore in the period under review. The share of total protection in the new business premium grew to 13.8 per cent from 10.2% last year. Its 13 month persistency ratio rose by 200bps to 84.4 percent. Its New Business Premium (NBP), a marker for the insurance premium due in the first policy year, increased by 52% to Rs 3150 crore in the period under review. The share of total protection in the new business premium grew to 13.8 per cent from 10.2% last year. Its 13 month persistency ratio rose by 200bps to 84.4 percent. (BL).
Economy and Sector News
Hyundai Motor India Ltd (HMIL) on Tuesday said it will hike its vehicle prices by up to Rs. 9,200 from August 1 to offset increased input costs. The new prices will be effective from August 1, across all models, HMIL said in a statement. The input (raw material) costs have gone up due to new enhanced safety regulations in cars by the government, it said. In more news, L&T Metro Rail (Hyderabad) Limited (L&TMRHL) has planned captive solar plants with a capacity of approximately 8 mega watt peak (MWp) in Metro depots and on station rooftops. The company expects solar units to meet 15 per cent of the total electrical consumption. (BL).
The International Monetary Fund (IMF) on Tuesday lowered the growth estimate for India by 30 basis points (100 basis points means 1 percentage point) for the current as well as the next financial year. However, the good news is despite the revision, India’s growth rate will still be the fastest in the world followed by China. The WEO update says that in China, the negative effects of escalating tariffs and weakening external demand have added pressure to an economy already in the midst of a structural slowdown. (ET).
Rejecting demands for rollback of import duty on the paper used for printing newspapers, Finance Minister Nirmala Sitharaman on Tuesday said 10 per cent customs duty on imported newsprint was a move to provide a level playing field for domestic manufacturers. Replying to the debate on Finance Bill 2019, which contained the tax proposal, in the Rajya Sabha, she said domestic newsprint manufacturers were finding it difficult to find buyers because the same was being imported. (BL).
Boeing’s credit rating is at risk as the grounding of the company’s 737 Max jetliner drags into fifth month, with Moody’s Investors Service joining Fitch Ratings in sounding a warning. The planemaker faces a $5 billion cash-flow drain this year as it continues to churn out aircraft it can’t deliver until regulators around the globe clear the MAX to resume commercial flights, Moody’s said in a statement on Monday. Like Fitch, Moody’s affirmed Boeing’s rating at the sixth-highest level of investment quality while cutting the outlook to negative. (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 stocks closed higher on Tuesday following earnings from the likes of Coca-Cola, Biogen, Lockheed Martin, United Technologies and Harley-Davidson. The Dow Jones Index closed at 27,349, up 177.29 points by 0.65%. The Standard & Poors 500 index closed at 3,005, up 20.44 points by 0.68%. The Nasdaq Composite Index closed at 8,251, up 47.26 points by 0.58%.

FTSE 100

UK markets held on to most of their gains by the close on Tuesday, as markets digested the fact that Boris Johnson would be crowned Prime Minister after winning the Tory leadership contest. The FTSE 100 index closed at 7,557, up 41.93 points by 0.56%.

Global Indices
23/07/2019 Clsg Chg%
Dow Jones 27,349 +0.65
NASDAQ 8,251 +0.58
FTSE 100 7,557 +0.56
Bovespa 103,704 -0.24
24/07/2019 Latest
(4:05AM IST)
Nikkei 21,621 +0.95
Hang Seng 28,466 +0.34


Asia stocks started trading on a positive note early on Wednesday as the investors will keep a close watch on the global markets. Nikkei is currently trading at 21,621, up 204.09 points by 0.95%.

Precious Metals

Gold ended lower on Tuesday, overshadowed by a stronger U.S. dollar, while silver gained to tally another finish at its highest in more than a year.

Base Metals

Tin’s three-month price on the London Metal Exchange fell by some 2% at the close of trading on Tuesday July 23, slipping to a fresh low of $17,555 per tonne over the day’s trading - the lowest level since 2016 - while copper futures failed to close above the nearby $6,000-per-tonne resistance level.

Crude Oil

The American Petroleum Institute reported late Tuesday that U.S. crude supplies dropped by 11 million barrels for the week ended July 19, according to sources.


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