Morning Notes
27th Dec, 2019
 

Trading Range:

Nifty opened flat at 12212 on Thursday and made a high and low of 12222 and 12119 respectively before closing negative at 12127.

Review/Outlook:

For the day, support for Nifty exists at 12070 and 12000 levels whereas resistance for Nifty stands at 12190 and 12240 levels.

Review/Outlook:

Bank Nifty opened flat at 32226, made a high of 32315, low of 31963, and closed negative at 31998. For the day, support for Bank Nifty exists at 31800 and 31600 levels whereas resistance for Bank Nifty stands at 32200 and 32400 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 41,163 -0.72
Nifty 12,127 -0.72
BSE 200 5,057 -0.55
BSE Midcap 14,800 -0.13
BSE Smallcap 13,435 +0.38
Dow Jones 28,621 +0.37
NASDAQ 9,022 +0.78
 

DERIVATIVES INDICATORS FOR DEC 27, 2019:

NIFTY 12126.55 (-88) (-0.72%)
NIFTY JAN FUTURE 12195.75 (69.20 Points Premium)
NIFTY PCR - OI 1.31 (-0.17)
NIFTY OPEN INTEREST 1.22 Cr. (-23.48%)
INDIA VIX 11.12 (-4.32%)
NIFTY ROLLOVER 70%

NIFTY OPTIONS ACTIVITY (30-JAN SERIES)

CALL 12200 CE +4.71 lac Shares
CALL 12400 CE +3.03 lac Shares
PUT 12200 PE +3.48 lac Shares
PUT 12000 PE +2.99 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 18,207 -0.28
Bankex 36,509 -0.78
PSU 6,813 -0.32
Healthcare 13,319 -0.58
IT 15,548 -0.43
 
Market Turn Over (`cr)
Index 26/12 24/12
BSE Cash 1,660 1,582
NSE Cash 28,756 24,972
NSE F&O 2,546,871 1,080,888
BSE Delivery % 54.28 54.43
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 32.67 65.35
BSE 200 37.81 59.70
BSE 500 44.00 54.20
Total BSE 48.72 45.01
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 61.71 +0.02
Gold Rs./ 10 Gms 38882.00 +0.63
Silver Rs./ Kg 46823.00 +0.68
Rs.- US $ 71.39 +0.14
Rs.- Euro 79.24 +0.21
FII (Rs cr )
26/12* 24/12*
FIIs -11.07 +2242.34
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       66,230.00       5,369.57       76,195.00       6,452.27    1,21,838.00     10,576.24  (1,082.70)
Index Options  38,52,204.00  2,68,767.27  38,05,056.00  2,64,898.22    4,16,635.00     36,150.33   3,869.05
Stock Futures    3,27,053.00     21,138.61    3,30,696.00     21,413.27  14,18,926.00     94,948.08     (274.66)
Stock Options       20,621.00       1,449.69       19,671.00       1,416.23       13,474.00         837.31        33.46
Total  42,66,108.00  2,96,725.14  42,31,618.00  2,94,179.99  19,70,873.00  1,42,511.96   2,545.15
Corporate News
Hinduja Group’s flagship firm Ashok Leyland on Thursday said it has partnered with Citicorp Finance India Ltd for financing commercial vehicles. The company has signed a memorandum of understanding (MoU) with Citicorp Finance to enter into a strategic financing partnership for two years, to offer customised financial solutions to customers across India, Ashok Leyland said in a statement. Under the MoU, Citicorp Finance will be a preferred financier for providing finance to the customers buying Ashok Leyland vehicles, it added. (BL).
Greaves Cotton Ltd and TVS Motor Company have announced a partnership under which Greaves Care, multi-brand spares and service arm of Greaves Cotton, will act as authorised service centre for TVS Motor’s three-wheelers across India. Under the deal, about 165 Greaves Care Centres will provide service support in the form of free services, warranty, post warranty and other campaign-related repairs. (ET).
Ramco Cements’ Ariyalur factory in Tamil Nadu has secured 5-Star rating for excellence in environment, health and safety (EHS) practices from CII Southern Region. The leading cement maker was presented a Certificate of Excellence during the 12th edition of CII Southern Region EHS Excellence Award 2019 ceremony recently. CII has been recognising companies with innovative and best practices in EHS through CII SR EHS Excellence Awards, according to a statement. (BL).
A stock swap offer to help shareholders of billionaire Mukesh Ambani’s unlisted retail business monetize their investment has valued the unit at $34 billion. Share owners in Reliance Retail Ltd can exchange four shares for one of its listed parent Reliance Industries Ltd, according to a so-called scheme of arrangement posted on the groups website. With the parents latest market capitalization at Rs 9.8 lakh crore, the share swap values the subsidiary at Rs 2.4 lakh crore, according to Bloomberg’s calculation. (BL).
Dishman Carbogen Amcis Ltd on Thursday said Income Tax Department has conducted search at its offices and manufacturing sites and the search operation was concluded on December 25. (BL).
Tata Sons’ ousted chairman Cyrus Mistry is likely to appoint nominee directors on Tata Group companies’ board to ensure best practices of corporate governance. (BS).
Airtel Payments Bank on Thursday said it has enabled 24x7 NEFT transfers in line with the Reserve Bank of India's (RBI) guidelines. Airtel Payments Bank customers will now be able to use the National Electronic Funds Transfer (NEFT) facility at any time of the day. The facility will be available to customers on a 24x7 basis even on holidays enabling then to receive or send funds to any bank from anywhere, anytime, the Bank said. (BL).
Nokia, Ericsson, ZTE and UTStarcom have finally received parts of their outstanding dues from Bharat Sanchar Nigam Ltd (BSNL). Both Nokia and ZTE have received an interim payment of Rs 150 crore each while UTStarcom, on the other hand, has been sanctioned Rs 50 crore, against their overall outstanding. (ET).
Markets regulator Sebi on Thursday imposed a penalty of Rs 25 lakh each on rating agencies ICRA and CARE for failing to exercise "due diligence" while assigning credit rating to the non-convertible debentures of IL&FS. Sebi also said the default by IL&FS occurred due to "lethargic indifference and needless procrastination and laxity" of these rating agencies. (BL).
Economy and Sector News
Merger and acquisitions seem to have become a big casualty of corporates’ debt distress as India Inc learnt it the hard way in 2019 that their first priority was to meet their loan repayment obligations and suitors from abroad also seemed reluctant in wooing distressed targets for any matchmaking. This has led to a mostly muted scene on India’s corporate deal street this year, after a blockbuster 2018, while economic slowdown fears further came in the way for any significant merger and acquisition deals. (BL).
The year-on-year (yoy) growth in bank credit is expected to decelerate sharply to 6.5-7% during FY20 from 13.3% during FY2019, following limited incremental credit growth during FY20 till date. The incremental bank credit has increased by only Rs0.80 trillion during FY20 till December 6, 2019 to Rs98.1 trillion, in contrast to the rise of Rs5.4 trillion and Rs1.7 trillion during previous corresponding periods of FY2019 and FY2018 respectively. Even in a high growth scenario, whereby incremental credit rises to Rs6.5-7 trillion during H2 FY2020 from Rs5.7 trillion during H2 FY2018 and Rs7.2 trillion during H2 FY2019, ICRA Ratings projects a 40-45% yoy decline in incremental net bank credit to Rs6.3-6.8 trillion during FY20 from Rs11.9 trillion during FY2019, while somewhat comparable to Rs6.5 trillion in FY2018. This will translate to a considerable deceleration in yoy bank credit growth to 6.5-7.0% during FY20 from 13.3% during FY2019 and 10.5% during FY2018. (ET).
India is all set to cross the 100GW renewable energy capacity mark in 2020. It can also make rapid strides towards the ambitious 175GW clean energy target by 2022 provided the government keeps a close eye on key issues and deals with those well in time. The Government, however, needs to promote storage to ensure 24X7 clean energy supply as coal fired thermal power still remains the base load in the country. (BL).
Air Works, an independent MRO and aviation services provider, on Thursday, announced that the rating agency - CRISIL - has upgraded both its long-term as well as short-term ratings to BBB/Stable and Crisil A3+. The upgrade reflects CRISIL’s "expectation of a significant improvement in the credit risk profile of the Company over the medium term". These improvements are the result of a change in the company’s strategy that is now increasing among centers around India and South Asia. It is in line with the Government of India’s focus to foster the development of MRO in the country. (ET).
Private Bank & Insurance companies will be in focus as The Reserve Bank of India has asked lenders to cut their stakes in insurers to 30% . In the life insurance space, ICICI Bank owns 52.87% in ICICI Prudential Life Insurance Co. Ltd; Kotak Mahindra Bank holds a 77% stake in Kotak Mahindra Life Insurance Co. Ltd; and State Bank of India owns 57.6% in SBI Life Insurance Co. Ltd. Home financier HDFC holds 51.47% in HDFC Standard Life Insurance Co. Ltd.(Live Mint)
* 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 Thursday as traders came back from the Christmas break. The Dow Jones Index closed at 28,515, down 36.08 points by 0.13%. The Standard & Poors 500 index closed at 3,223, down 0.63 points by 0.02%. The Nasdaq Composite Index closed at 8,953, up 7.24 points by 0.23%.

FTSE 100

UK markets were closed on Dec 25, 2019 for Christmas Holiday. The following numbers are for the previous trading session on Dec 24, 2019. The FTSE 100 index closed at 7,632, up 8.65 points by 0.11%.

 
 
Global Indices
26/12/2019 Clsg Chg%
Dow Jones 28,621 +0.37
NASDAQ 9,022 +0.78
FTSE 100 - -
Bovespa 117,203 +1.16
27/12/2019 Latest
(5:36AM IST)
Chg%
Nikkei 23,925 +0.60
Hang Seng 27,864 -0.15

Nikkei

Asian markets started trading early in the morning on Friday on a positive note as the investors watch the US markets closely. Nikkei is currently trading at 23,925, up 142.05 points by 0.60%.

Precious Metals

Gold closes higher for third straight session, adds $9.60, or 0.6% to settle at $1,514.4 an ounce on Thursday.

Base Metals

Base metals prices on the Shanghai Futures Exchange were mixed at the close of the morning trading session on Thursday December 26, with activity remaining limited ahead of year-end holidays.

Crude Oil

Crude-oil prices settled solidly higher Thursday, in thin postholiday action, as a weekly inventory report indicated a bigger-than-expected decline in stockpiles for oil.

 
 
 

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Hrishikesh Yedve D: 91 22 2858 3207
Neeraj Sharma D: 91 22 2858 3208
Rohan Gawale D: 91 22 2858 3213

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Email: retailresearch@acm.co.in

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