Morning Notes
28th Jan, 2020
 

Trading Range:

Nifty opened gap down at 12197 on Monday and made a high and low of 12217 and 12107 respectively before closing negative at 12119.

Review/Outlook:

For the day, support for Nifty exists at 12190 and 12150 levels whereas resistance for Nifty stands at 12310 and 12400 levels.

Review/Outlook:

Bank Nifty opened gap down at 31111, made a high of 31227, low of 30809, and closed negative at 30837. For the day, support for Bank Nifty exists at 30600 and 30400 levels whereas resistance for Bank Nifty stands at 31000 and 31200 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 41,155 -1.10
Nifty 12,119 -1.06
BSE 200 5,116 -0.92
BSE Midcap 15,759 -0.40
BSE Smallcap 14,850 +0.03
Dow Jones 28,536 -1.57
NASDAQ 9,139 -1.89
 

DERIVATIVES INDICATORS FOR JAN 28, 2020:

NIFTY 12119.00 (-129.25) (-1.06%)
NIFTY JAN FUTURE 12125.70 (6.70 Points Premium)
NIFTY PCR - OI 1.11 (-0.31)
NIFTY OPEN INTEREST 1.48 Cr. (+0.50%)
INDIA VIX 17.17 (+10.38%)
NIFTY ROLLOVER 19%

NIFTY OPTIONS ACTIVITY (30-JAN SERIES)

CALL 12200 CE +30.05 lac Shares
CALL 12300 CE +11.23 lac Shares
PUT 12200 PE -10.13 lac Shares
PUT 12300 PE -9.86 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 18,539 -0.15
Bankex 35,248 -1.18
PSU 6,747 -1.37
Healthcare 14,310 +1.43
IT 16,141 -0.57
 
Market Turn Over (`cr)
Index 27/01 24/01
BSE Cash 1,762 2,070
NSE Cash 34,059 35,787
NSE F&O 1,168,352 966,740
BSE Delivery % 55.56 52.43
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 26.73 73.27
BSE 200 32.84 66.67
BSE 500 38.52 61.08
Total BSE 38.16 56.13
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 53.14 -1.94
Gold Rs./ 10 Gms 40585.00 +0.58
Silver Rs./ Kg 47005.00 -0.15
Rs.- US $ 71.47 +0.21
Rs.- Euro 78.75 +0.11
FII (Rs cr )
27/01* 24/01*
FIIs +595.42 +1497.17
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       56,603.00       4,318.77       80,773.00       6,587.93    2,27,567.00     18,870.57  (2,269.16)
Index Options  29,13,802.00  2,06,607.29  29,09,075.00  2,06,169.47    8,10,132.00     66,375.46      437.82
Stock Futures    3,93,619.00     26,609.86    4,02,845.00     27,091.39  16,07,275.00  1,07,388.58     (481.53)
Stock Options       84,560.00       6,177.96       87,764.00       6,387.58       87,418.00       5,956.16     (209.62)
Total  34,48,584.00  2,43,713.88  34,80,457.00  2,46,236.37  27,32,392.00  1,98,590.77  (2,522.49)
Corporate News
Tata Projects Ltd has received multiple orders in the oil and gas refinery sector with a combined value of over Rs.6,000 crore from HPCL Rajasthan Refinery Ltd (HRRL) and Bharat Petroleum Corporation Ltd (BPCL). (BL).
Godfrey Phillips India (GPI), which sells the Marlboro brand of cigarettes and is among the country’s largest tobacco product manufacturers, has been put on the block by its key promoter entities, led by the KK Modi Family Trust. (ET).
Drug firm Divi’s Laboratories on Monday said it has sought shareholders’ approval for the re-appointment of Kiran S Divi as the Chief Executive Officer (CEO) of the company. (BS).
IndiGrid Infrastructure Investment Trust (InvIT) is looking to buy four transmission assets worth Rs.7,000 crore by 2021. (ET).
TVS Motor Company sees a bright future for electric two-wheelers in India. So the country’s third largest two-wheeler company, by volume, has jumped onto the battery-operated scooter bandwagon with the introduction of iQube, a connected automatic scooter. The launch marks the entry of yet another established two-wheeler maker in a domain that has only seen the entry of numerous small players and start-ups. Sudarshan Venu, Joint Managing Director, TVS Motor, discussed the company’s product plan, technology and its expansion in the EV market in Bengaluru on Saturday. (BL).
Maruti Suzuki India (MSIL) on Monday said that it will increase prices on select models by up to 4.7 per cent owing to increase in input costs. The price change varies across models up to 4.7 per cent (ex-showroom - Delhi). The new prices are effective from January 27, 2020, the company said in a statement. The models include Alto, S-Presso and WagonR in the entry-level, Baleno, Ertiga and ZL6. The price of Alto range has gone up in the range of Rs.6,000-Rs.9,000, S-Presso between Rs.1,500 and Rs.8,000 and WagonR between Rs.1,500 and Rs.4,000. (BL).
Biocon Ltd on Monday said the US health regulator conducted a pre-approval inspection and good manufacturing practice (GMP) examination of the API manufacturing facility and has issued a Form 483, with five observations. As per the USFDA, a Form 483 is issued to a firm’s management at the conclusion of an inspection when investigator has observed any conditions that in its judgement may constitute violations of the Food Drug and Cosmetic (FD&C) Act and related Acts. (ET).
Quarterly Earnings
United Spirits Ltd (USL) on Monday reported a 35% increase in net profit for quarter ended December, helped by premium portfolio, savings in operating costs and lower marketing reinvestment rate. The maker of McDowell whisky and Romanov vodka posted net profit of Rs 258.8 crore during the third quarter compared to Rs 192.4 crore a year ago. Total income at the country’s largest liquor firm controlled by Diageo Plc was flat at Rs 7,824.8 crore, up 0.15%. (BL).
InterGlobe Aviation -- parent company of IndiGo airline -- on Monday reported a whopping 168 per cent rise in its third quarter (Q3 FY20) consolidated net profit at Rs 496 crore on the back of increasing load factor and higher operating income. In Q3 FY19, it had posted net profit of Rs 185 crore. During the September quarter of current fiscal (Q2 FY20), the budget airline had reported its highest ever quarterly loss of Rs 1,066 crore. (ET).
Mortgage lender HDFC Ltd on Monday reported a 24.3 per cent rise in consolidated net profit to Rs 4,196.48 crore for the third quarter ended December. It had posted a net profit (before adjustment for minority interest) of Rs 3,377.05 crore during the corresponding October-December period of 2018-19. Total income on consolidated basis rose to Rs 29,073.19 crore during the quarter as against Rs 24,653.15 crore in the year-ago period. (ET).
Drug firm Wockhardt on Monday for the first time in three years reported a consolidated net profit of Rs 19.21 crore for the December 2019 quarter mainly on account of improvement in operational performance and cost rationalisation. The company had posted a net loss of Rs 76.86 crore for the corresponding period of 2018-19, Wockhardt said in a filing to the BSE. Consolidated revenue from operations stood at Rs 869.15 crore for the quarter under consideration. It was Rs 1,045.86 crore for the same period year. (ET).
DCM Shriram Ltd, which is mainly into chemical, sugar and fertiliser businesses, on Monday reported a 22 per cent fall in its consolidated net profit to Rs 175.43 crore for the December 2019 quarter, on higher expenses and provision for losses in sale of foreign subsidiaries. The company's net profit stood at Rs 225.65 crore in the year-ago quarter, the company said in a regulatory filing. The company's net profit stood at Rs 225.65 crore in the year-ago quarter, the company said in a regulatory filing. (ET).
Realty firm Prestige Estates Projects Ltd has reported over two-fold jump in consolidated net profit at Rs 161.8 crore for December quarter and raised Rs 437 crore through preferential allotment of shares to Singapore sovereign wealth fund GIC. Its net profit stood at Rs 58.1 crore in the year-ago period. Total income from operations also rose sharply to Rs 2,696.3 crore during October-December of 2019-20 from Rs 1,079 crore in the corresponding period of the previous year, Bengaluru-based developer said in a regulatory filing. (ET).
Realty firm Mahindra Lifespace Developers Ltd reported a 91 per cent decline in net profit to Rs 1.81 crore for the quarter ended December. Its net profit stood at Rs 20.58 crore in the year ago period, the company said in a regulatory filing. Total income also fell to Rs 85 crore during the third quarter of 2019-20 from Rs 137.37 crore in the corresponding period of the previous year. (BL).
Dr Reddy’s Laboratories on Monday reported a consolidated net loss of Rs 569.70 crore for December quarter compared with a profit of Rs 485.20 crore in the year-ago quarter. Revenue for the quarter rose 14 per cent year-on-year to Rs 4,383.80 crore, the company said in a BSE filing. The company had reported sales of Rs 3850 crore in the same quarter last year. (BL).
Economy and Sector News
The divestment of Air India restarted on Monday with the government seeking to sell 100 per cent of its equity share capital in the state-owned airline, including Air India’s shareholding interest of 100 per cent in AI Express Limited and 50 per cent in Air India SATS Airport Services Private Limited. The sale will be implemented through the open bidding route, with March 17 being set as the deadline for interested parties to submit their bids. Those interested in bidding for Air India must have a net worth of Rs.3,500 crore. (BL).
The net direct tax collection has registered a shortfall of 5.4 per cent during April-January period of the current fiscal. Net collection is the the gross collection minus income tax refunds. Direct taxes are levied on the income, which includes personal income tax and corporate tax besides small component such as Securities Transaction Tax (STT), which is levied on stock market transactions. In more news, the government is considering extension of zero duty import of ready-to-use open cell television panels beyond September after leading manufacturers like Samsung and LG reached out to the ministry saying the current norm is an anomaly which would hurt Indian manufacturing. (ET).
The container freight stations (CFSs) at JNPT port have begun to stink, with over 250 refrigerated containers with about 7,000 tonnes of imported onions rotting and lying idle for about a month now. Importers are in no hurry to clear their consignments as the landed cost of onions is way above the local market costs. (BL).
London-based start-up Currencycloud on Monday announced that it had   raised over $80 million in Series E funding. The investment round was co-led by Visa and Sapphire, SAP’s venture capital arm, according to a CBNC report. The other big investors in the round included International Finance Corporation (IFC),   the World Bank’s investment arm;   French bank BNP Paribas; Japan’s SBI Group, which is now independent of SoftBank; and Thailand’s Siam Commercial Bank, TechCrunch reported. (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 sharply lower on Monday as confirmed worldwide cases of the Wuhan coronavirus hit 2,862 and were continuing to rise. The Dow Jones Index closed at 28,536, down 453.93 points by 1.57%. The Standard & Poors 500 index closed at 3,244, down 51.84 points by 1.57%. The Nasdaq Composite Index closed at 9,139, down 175.60 points by 1.89%.

FTSE 100

UK markets fell sharply on Monday, with miners and travel shares pacing the decline as worries over the spread of the nCoV coronavirus in China gripped markets. The FTSE 100 index closed at 7,412, down 173.93 points by 2.29%.

 
 
Global Indices
27/01/2019 Clsg Chg%
Dow Jones 28,536 -1.57
NASDAQ 9,139 -1.89
FTSE 100 7,412 -2.29
Bovespa 114,482 -3.29
28/01/2020 Latest
(5:11AM IST)
Chg%
Nikkei 23,344 -2.03
Hang Seng 27,950 +0.15

Nikkei

Asian shares slipped again on Tuesday as China took more drastic steps to combat the coronavirus, while bond yields fell globally on expectations central banks would need to keep stimulus flowing to offset the likely economic drag. Nikkei is currently trading at 23,344, down 483.67 points by 2.03%.

Precious Metals

Gold futures on Monday marked their highest settlement in more than six years. Concerns surrounding the spread of the coronavirus fed risk-off sentiment, putting pressure on global stock markets and lifting haven demand for the precious metal.

Base Metals

Base metals prices on the London Metal Exchange were significantly lower at the close of trading on Monday January 27, with the majority of three-month prices across the complex down by some 2% because of continued risk-aversion in commodity markets, with zinc futures leading the retreat to close at a six-week low.

Crude Oil

Crude prices dropped below $60 a barrel for the first time on Monday in nearly three months on risk aversion, while gold prices surged 1% to nearly a three-week high.

 
 
 

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