Morning Notes
24th Sep, 2019
 

Trading Range:

Nifty opened gap up at 11543 on Monday and made a high and low of 11695 and 11471 respectively before closing positive at 11600.

Review/Outlook:

For the day, support for Nifty exists at 11540 and 11470 levels whereas resistance for Nifty stands at 11670 and 11740 levels.

Review/Outlook:

Bank Nifty opened gap up at 30039, made a high of 30801, low of 29776, and closed positive at 30566. For the day, support for Bank Nifty exists at 30200 and 29800 levels whereas resistance for Bank Nifty stands at 30800 and 31000 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 39,090 +2.83
Nifty 11,600 +2.89
BSE 200 4,865 +2.72
BSE Midcap 14,554 +3.08
BSE Smallcap 13,565 +2.73
Dow Jones 26,949 +0.06
NASDAQ 8,112 -0.06
 

DERIVATIVES INDICATORS FOR SEP 24, 2019:

NIFTY 11600.20 (+326.00) (+2.89%)
NIFTY SEP FUTURE 11607.30 (7.10 Points Premium)
NIFTY PCR - OI 1.51(+0.12)
NIFTY OPEN INTEREST 2.26Cr. (-1.41%)
INDIA VIX 16.79 (+9.04%)
NIFTY ROLLOVER 27%

NIFTY OPTIONS ACTIVITY (26-SEP SERIES)

CALL 11700 CE +8.46 lac Shares
CALL 11800 CE +8.06 lac Shares
PUT 11500 PE +20.26 lac Shares
PUT 11400 PE +19.72 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 17,498 +2.45
Bankex 34,478 +5.68
PSU 6,881 +2.73
Healthcare 12,968 -0.37
IT 15,067 -3.29
 
Market Turn Over (`cr)
Index 23/09 20/09
BSE Cash 5,073 6,040
NSE Cash 64,030 82,329
NSE F&O 1,431,999 1,996,255
BSE Delivery % 35.17 33.95
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 68.32 31.68
BSE 200 70.15 29.35
BSE 500 75.45 24.35
Total BSE 58.23 35.11
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 58.64 +0.95
Gold Rs./ 10 Gms 37924.00 +0.60
Silver Rs./ Kg 48113.00 +3.55
Rs.- US $ 70.81 -0.48
Rs.- Euro 77.85 -0.60
FII (Rs cr )
23/09* 20/09*
FIIs +592.64 -744.78
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    1,09,660.00       8,400.45       87,380.00       6,707.39    2,93,566.00     24,448.75  1,693.06
Index Options  32,30,993.00  2,36,613.20  31,93,601.00  2,34,353.38    9,66,542.00     77,563.96  2,259.82
Stock Futures    6,59,603.00     39,258.44    6,43,431.00     38,453.69  16,33,420.00  1,00,745.76     804.75
Stock Options    1,43,276.00       8,861.16    1,42,676.00       8,837.23       91,154.00       5,337.10       23.93
Total  41,43,532.00  2,93,133.25  40,67,088.00  2,88,351.69  29,84,682.00  2,08,095.57  4,781.56
Corporate News
The Competition Commission of India (CCI) has approved the restructuring of pharmacy business of Apollo Hospitals Enterprise Ltd (AHEL) and its subsequent acquisition by Enam Securities Private Ltd, Jhelum Investment Funds I and Hemendra Kothari.. (BL).
Reliance Nippon Life Asset Management Company (RNAM) has decided to side-pocket its investment exposure in Reliance Capital following a rating downgrade by CARE Rating on September 20. (ET).
Parle Agro, the manufacturer of beverage brands like Frooti and Appy, and packaged drinking water Bailey, on Monday announced an investment of Rs.50 crore for plastic waste management. The Rs.5,000-crore revenue company aims to achieve 100 per cent recycling of PET bottles by October. (BL).
SEBI on Monday imposed a penalty of over Rs.22 crore on Aurobindo Pharma, its promoter PV Ramprasad Reddy and other connected entities for violating insider trading norms. The regulator had conducted an investigation into the trading in the scrip of Aurobindo Pharma Ltd from July 2008 to March 2009 to ascertain the regulatory violation. The probe found that the promoter entities traded in the scrip based on unpublished price-sensitive information (UPSI) pertaining to the company’s licensing and supply agreements with Pfizer Inc and made “unlawful gains”. (ET).
The Smart World and Communication (SW&C) and Power Transmission & Distribution (PT&D) businesses of L&T Construction have jointly commenced executing one of the largest communication network in India for Telangana Fibre Grid Corporation Ltd. (ET).
Hero Electric, one of the largest electric scooter makers in India by sales, plans to double capacity over the next 12 months. The company is eyeing expansion either at its Ludhiana unit or may explore setting up a greenfield one in South India. Hero Electric, a subsidiary of Hero Eco Ltd, has an annual capacity of 75,000 units at its Ludhiana facility, which will be increased to 150,000 annually. (BL).
Steel Authority of India Ltd (SAIL) is looking at means to lower its overall tax incidence by hiving in-house manufacturing and project expansions into separate companies. (ET).
Thomas Cook India is evaluating the possibility of acquiring the brand for three markets including India and Sri Lanka. This comes after the announcement by Thomas Cook UK to go for liquidation. (ET).
ICICI Bank on Monday said it will expand its retail network by adding 450 new branches this financial year. Of these, the bank has made 320 branches operational for customers and in the process, it has crossed the milestone of having 5,000 branches, ICICI Bank Bank said in a statement. Another set of 130 branches will also be customer-ready by the end of the current financial year, it said. (BS).
JSW Steel on Monday demanded a 25 per cent safeguard duty on imports of steel to protect domestic players. JSW Steel Joint Managing Director and Group Chief Financial Officer Seshagiri Rao said this while speaking to reporters on the sidelines of an industry event here. On domestic steel sector being impacted due to the ongoing trade war between the US and China, he said it is a matter of concern. Lot of diversion of steel products is happening into India, affecting domestic industry. (BL).
Canara Bank informed the exchanges on Wednesday that the investment committee of the bank has permitted to initiate the process of stake sale in full in M/S Commonwealth Trust (India) Ltd. The bank has invited an expression of interest (EOI) for the sale of 37,500 equity shares, representing 30% of the paid-up share capital held by Canara Bank in M/s Commonwealth Trust (India) Ltd. (ET).
Spicejet’s cargo arm SpiceXpress has taken the lease-delivery of its first plane — a 737-800 Boeing Converted Freighter. SpiceXpress, the first cargo airline across South Asia, has leased the standard-body freighter from NGF Alpha of Spectre Cargo Solutions, Boeing said in a statement Monday. (ET).
Maruti Suzuki will be in foucs as their chairman RC Bhargva has indicated that retail sales in September would witness an improvement over August. The Booking level have gone up substantially over the last month. (LM).
Economy and Sector News
Megha Engineering and Infrastructures Ltd’s proposal is 12.6 per cent lower than the earlier contract awarded for execution of the hydel power plant and main concrete works of the mega Polavaram irrigation project in Andhra Pradesh. In the reverse tendering initiative of the AP government, MEIL’s bid of Rs 4,358 crore is Rs 628 crore lower lower than the Rs 4,987-crore contract awarded earlier. This was cancelled by the AP govenment after Y.S. Jagan Mohan Reddy took office as Chief Minister of AP, after a resounding victory earlier this year. (BL).
The onion prices across the country have started rising in spite of stable supply to the Lasalgaon onion market in Maharashtra. The wholesale market is the bell-weather for the precious commodity across the country. Supply disruptions in Kurnool, Andhara Pradesh and decline in supply from Madhya Pradesh has also lead to the price rally in the wholesale and retail market. The prices are expected to stabilize in a month when the new crop arrives in markets in Nashik and other onion producing districts in Maharashtra. In the last one month, the modal price of onions has increased by 82 per cent in Lasalgaon. On August 23 the modal price per quintal was Rs.2,251, which increased to Rs.4,100. Today, in the course of trading the price touched a high of Rs.4,200 per quintal. (ET).
The widespread crop damage caused by floods during the current monsoon season has forced the government to downgrade its projections of foodgrain production during the ongoing kharif season to 140.57 million tonne (mt), marginally lower than 141.71 mt harvested in the corresponding season in 2018-19. According to the First Advance Estimates of Production of Foodgrains released by the Agriculture Ministry on Monday, rice output during the 2019-20 kharif is slated to be 100.35 mt, about 1.6 per cent less than 102 mt estimated in the 4th advance estimate for 2018-19. Till mid-September, the country as a whole received a cumulative rainfall 4 per cent above the long period average. (BL).
Manufacturers of rail equipmenthave welcomed the GST Council’s decision to raise GST on rail equipment such as wagons, coaches and rolling stock to 12 per cent from 5 per cent. Metro rail coach-makers are also set to get a similar push. The move will increase the competitiveness of the products made in India, said Alstom, Bombardier, Wabtec, and other rail-equipment makers. This was a pending demand of railway wagon, coach and engine manufacturers and had been raised by the Confederation of Indian Industry (CII). Recently, Wabtec, the company that acquired GE Transportation, had explained that input components attract a tax of 12-18-28 per cent. This creates a situation when there is higher tax on inputs and lower tax on output products. (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 Monday as truncated trade talks and weak data out of Europe left market participants worried about the state of the global economy. The Dow Jones Index closed at 26,950, up 14.92 points by 0.06%. The Standard & Poors 500 index closed at 2,992, down 0.29 points by 0.01%. The Nasdaq Composite Index closed at 8,112, down 5.21 points by 0.06%.

FTSE 100

UK markets remained in the red at the close on Monday, amid ongoing concerns over Sino-US trade relations and signs that the eurozone economy was stalling, although holiday firm TUI bucked the trend after rival Thomas Cook collapsed. The FTSE 100 index closed at 7,326, down 18.84 points by 0.26%.

 
 
Global Indices
23/09/2019 Clsg Chg%
Dow Jones 26,950 +0.06
NASDAQ 8,112 -0.06
FTSE 100 7,326 -0.26
Bovespa 104,638 -0.17
24/09/2019 Latest
(4:35AM IST)
Chg%
Nikkei 22,079 +0.16
Hang Seng 26,222 -0.81

Nikkei

Asian shares were closed on Sep 23 for Autumn Equinox holiday. The following numbers are for the previous trading session at the time stamp. Nikkei is currently trading at 22,079, up 34.64 points by 0.16%.

Precious Metals

Gold prices rose Monday to settle at their highest in more than two weeks, getting a boost from a round of downbeat data out of the eurozone that underlined worries about global growth prospects, as traders continued to keep an eye on U.S.-China trade talks and tensions surrounding Iran.

Base Metals

The three-month zinc price on the London Metal Exchange was higher at the close of trading on Monday September 23, closing above the $2.300 per tonne threshold and topping the gains in the base metals complex, while sister-metal lead fell furthest over the afternoon.

Crude Oil

Crude-oil futures ended higher on Monday, finding support from growing tensions in the Middle East even as Saudi Arabia has reportedly restored much of the output lost to attacks over a week ago that damaged its oil facilities.

 
 
 

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