Morning Notes
18th Apr, 2019
 

Trading Range:

Nifty opened gap up at 11736 on Tuesday and made a high and low of 11811 and 11732 respectively before closing positive at 11787.

Review/Outlook:

For the day, support for Nifty exists at 11730 and 11650 levels whereas resistance for Nifty stands at 11820 and 11880 levels.

Review/Outlook:

Bank Nifty opened gap up at 30236, made a high of 30591, low of 30228, and closed positive at 30531. For the day, support for Bank Nifty exists at 30300 and 30100 levels whereas resistance for Bank Nifty stands at 30700 and 31000 levels.

Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 39,276 +0.95
Nifty 11,787 +0.83
BSE 200 4,972 +0.77
BSE Midcap 15,521 +0.12
BSE Smallcap 15,172 +0.37
Dow Jones 26,450 -0.01
NASDAQ 7,996 -0.05
 

DERIVATIVES INDICATORS FOR APR 18, 2019:

NIFTY 11787.15 (+96.80) (+0.83%)
NIFTY APR FUTURE 11824.45 (37.30 Points Premium)
NIFTY PCR - OI 1.82(+0.21)
NIFTY OPEN INTEREST 1.79Cr. (+3.42%)
INDIA VIX 21.69(+1.43%)
NIFTY ROLLOVER 13%

NIFTY OPTIONS ACTIVITY (25-APR SERIES)

CALL 11700 CE -5.04 lac Shares
CALL 11800 CE -2.68 lac Shares
PUT 11700 PE +5.79 lac Shares
PUT 11800 PE +12.49 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 20,237 +0.84
Bankex 34,357 +1.62
PSU 7,564 +0.18
Healthcare 14,521 +0.11
IT 15,591 +0.05
 
Market Turn Over (`cr)
Index 16/04 15/04
BSE Cash 3,645 2,707
NSE Cash 35,902 30,350
NSE F&O 1,054,5234 640,560
BSE Delivery % 69.01 47.53
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 68.32 30.69
BSE 200 59.20 40.30
BSE 500 55.69 43.71
Total BSE 46.88 47.65
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 63.66 -0.16
Gold Rs./ 10 Gms 31480.00 -0.22
Silver Rs./ Kg 37210.00 -0.14
Rs.- US $ 69.43 +0.03
Rs.- Euro 78.45 +0.01
FII (Rs’cr’)
16/04* 15/04*
FIIs +385.84 +605.60
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       48,370.00       3,859.95       41,877.00       3,119.00    2,55,368.00     20,463.09     740.95
Index Options  25,35,654.00  1,70,904.27  25,16,615.00  1,69,367.48    9,32,686.00     74,524.15  1,536.79
Stock Futures    1,71,911.00     11,104.54    1,79,588.00     11,474.01  13,97,356.00     91,353.14    (369.48)
Stock Options    1,21,375.00       7,915.99    1,17,731.00       7,691.65    1,37,595.00       8,852.36     224.34
Total  28,77,310.00  1,93,784.75  28,55,811.00  1,91,652.14  27,23,005.00  1,95,192.74  2,132.61
Corporate News
Twenty-five years after its first flight took off, Jet Airways on Wednesday said it has temporarily cancelled all domestic and international flights with immediate effect due to lack of funds to keep it afloat. The airline had issued a plea to the banks to release ₹400 crore in interim funds but the lenders declined. (BL).
Reliance Industries Ltd (RIL) is in talks to acquire British toy retailer Hamleys in a bid to expand its global footprint in the retail category. According to sources, the company is in advanced talks with the iconic British brand, founded in 1760, and might make an announcement soon. The acquisition could be in the range of Rs.250-350 crore, said another source. In more news, Mitsui OSK Lines (MOL) of Japan and a strategic minority investor have signed definitive agreements to acquire strategic stake in six group companies of Reliance Industries (RIL), each of which own Very Large Ethane Carriers (VLEC). The financial terms of the deal were not disclosed. Further, Saudi Aramco will stay committed to the mega Ratnagiri refinery project despite its interest in Reliance Industries’ refining and petrochemicals business where it is reportedly eyeing a 25 per cent stake. Aramco, along with its West Asia counterpart, Adnoc (Abu Dhabi National Oil Company), will jointly hold 50 per cent in the Ratnagiri refinery where the other stakeholders are IndianOil, Bharat Petroleum Corporation and Hindustan Petroleum Corporation. (BL).
JSW Steel has offered to supply steel to export-oriented engineering companies at the landed cost of imports without adding customs duty under the advance licence mechanism. In a bid to incentivise export, the government allows exporting units to import raw material duty-free under the advance licence. (ET).
Container Corporation of India Ltd (Concor) has posted an 8.5 per cent increase in throughput at 3.83 million twenty-foot equivalent units (TEUs) in the financial year ended March 31, 2019 against 3.53 million TEUs in the previous financial year. The total tonnage of cargo handled had gone up 7.25 per cent at 46.25 million tonnes (43.12 million tonnes). (BL).
Adani Enterprises said on Wednesday Rakesh Suryakant Shah has resigned as the company’s chief financial officer (CFO). (BL).
Drug firm Zydus Cadila on Wednesday announced phase III clinical trials of Desidustat, an investigational new drug targeted at treating anaemia in non-dialysis dependent chronic kidney disease patients. (BL).
Japan's Nippon Paint Holdings Co Ltd has proposed buying Australia's biggest paint maker Dulux Group Ltd for A$3.8 billion ($2.7 billion), expanding its global footprint though entering Australia just as a housing boom there falters. (BL).
The committee of creditors to Gitanjali Gems, promoted by fugutive Mehul Choksi, has decided to liquidate the company to recover Rs. 12,558 crore it owes to 31 banks and financial institutions. (ET).
Drug major Cipla on Tuesday said its South Africa-based subsidiary will acquire 30 per cent stake in the connected healthcare firm Brandmed (Pty) Ltd for an upfront cash consideration of ZAR 65 million (nearly Rs. 32 crore). (BL).
Nestle India has decided to seek shareholders approval every five years on the issue of payment of royalty to its parent company after receiving feedback from investors and proxy advisory firms. The FMCG major, currently pays royalty at the rate of 4.5 per cent of the net sales to Societe des Produits Nestle SA. (BS).
Cairn Oil & Gas, a vertical of Vedanta Limited has announced the appointment of Ajay Dixit as its Chief Executive Officer. Dixit succeeds Sudhir Mathur, who worked for seven years with the company. (ET).
Global steel giant ArcelorMittal Wednesday said it has received approval from the European Commission to sell steel-making assets in Europe to Liberty House. ArcelorMittal announces that it has received European Commission (EC) approval for the sale of several steel-making assets to Liberty House Group, NRI billionaire L N Mittal-led ArcelorMittal said in statement Wednesday. (BL).
Quarterly Earnings
Crisil has reported a fall of 6.8 per cent in its consolidated net profit to Rs 76.6 crore in its first quarter ended March. The company follows January-December fiscal year. Its consolidated net profit was Rs 82.2 crore in the January-March quarter of 2018. The consolidated total income in the first quarter was nearly flat at Rs 422.9 crore, compared with Rs 427.6 crore in the corresponding quarter of 2018. The board of directors has declared an interim dividend of Rs 6 per share (of Re 1 face value) for the financial year ending December 31, 2019, it said. (BL).
IT firm Mindtree on Wednesday posted 8.89 per cent year-on-year rise in consolidated profit at Rs 198.40 crore for quarter ended March 31. The firm had posted a profit of Rs 182.20 crore in the corresponding quarter last year. The figure rose 3.77 per cent on a quarter-on-quarter basis. Revenue jumped 25.64 per cent YoY to Rs 1,839.40 crore during the quarter under review. Revenue in dollar terms grew 4.2 per cent QoQ and 15.80 per cent YoY to $262 million. (BL).
Wipro, country’s third-largest IT firm, on Tuesday posted a 37.74 per cent year-on-year (YoY) rise in consolidated net profit at Rs 2,483 crore for the quarter ended March 31. The profit attributable to shareholders was Rs 1,803 crore i n the same period last year. Consolidated revenue climbed 8.98 per cent to Rs 15,006.30 crore during the quarter under review from Rs 13,768.60 crore last year. Wipro has not recommended any final dividend. The interim dividend of Rs 1 declared by the company on January 18, 2019 shall be considered as the final dividend for the financial year 2018-19. Thus, the total dividend for the financial year 2018-19 remains Rs 1 per equity share, Wipro said in a release. (BL).
Citigroup Inc reported higherthan-expected earnings on Monday despite declining revenue as the New York-based lender cut costs, grew its investment-banking business and expanded netinterest margin. The bank’s income from continuing operations declined slightly. On a call with reporters, Chief Financial Officer Mark Mason said the decline was due in part to a divestiture last year. But net income rose because the bank's effective tax rate declined to 21 per cent from 24 per cent a year earlier. (BL).
International Business Machines Corp reported a bigger-than-expected drop in first-quarter revenue on Tuesday, hurt by tapering demand for its mainframe computers and a stronger dollar, sending its shares down about 3 percent. IBM's cloud and cognitive segment, which includes analytics, cybersecurity and artificial intelligence, fell 1.5 percent to $5.04 billion in the quarter, but beat FactSet estimates of $4.18 billion. (BL).
Economy and Sector News
The M&A activities recorded a fall in the first quarter of 2019, with the January-March period posting a 33 per cent decline in value terms at $12.5 billion compared with the same period last year. The deals during the period also registered a 7 per cent fall in volumeterms with a total of 110 M&A deals. In more news, Telangana is set to add about 1000 mw of solar photo-voltaic capacity within the next 6-8 months which will take its total solar PV installed capacity to over 4,500 mw. (BL).
In a landmark development, Etihad Airways, the national airline of the United Arab Emirates (UAE), and IBS Software (IBS) have signed a contract to enhance the airline’s operations. In more news, Innovapptive, a connected work force platform for asset intensive industries, received a Series A funding of $16.3 million from investors led by US-based Tiger Global Management. (ET).
Solar Energy Corporation of India Ltd has invited tenders for setting up of 150 MW of solar photo-voltaic power projects on behalf of coal mining company Singareni Collieries Company Ltd. In more news, Video streaming app, Hotstar, has registered a viewership of 267 million viewers in the first three weeks of the VIVO IPL 2019, surpassing last year’s record of 202 million viewers registered for the entire season. (BL).
The venture capital (VC) funding, including private equity and corporate venture capital, into digital health (Healthcare IT) companies stood at $2 billion from 149 deals in the first quarter of this calendar year. This compares with $1.4 billion across 142 deals recorded during the sequential fourth quarter (Q4) of 2018, according to a report by Mercom Capital Group. Digital health companies have brought in over $37 billion in disclosed VC funding since 2010. The total corporate funding for digital health companies — including VC, debt and public market financing — totalled $2.2 billion in Q1, 2019, it said. (BL).
* 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 lower on Wednesday as investors thumbed over earnings releases from the likes of Morgan Stanley, BNY Mellon, and PepsiCo and looked to data that indicated stabilisation of China's economic growth. The Dow Jones Index closed at 26,450, down 3.12 points by 0.01%. The Standard & Poor’s 500 index closed at 2,900, down 6.61 points by 0.23%. The Nasdaq Composite Index closed at 7,996, down 4.15 points by 0.05%.

FTSE 100

UK markets finished on a mixed note on Wednesday despite the release of better-than-expected Chinese growth figures, as the latest UK inflation data undershot expectations. The FTSE 100 index closed at 7,472, up 1.40 points by 0.02%.

 
 
Global Indices
17/04/2019 Clsg Chg%
Dow Jones 26,450 -0.01
NASDAQ 7,996 -0.05
FTSE 100 7,472 +0.02
Bovespa 93,285 -1.11
18/04/2019 Latest
(6:03 AM IST)
Chg%
Nikkei 22,262 -0.07
Hang Seng 30,125 -0.02

Nikkei

Asian shares started early morning trading on Thursday on a negative note as investors will look cautiously at the US markets and other global events. Nikkei is currently trading at 22,262, down 15.83 points by 0.07%.

Precious Metals

Gold fell on Wednesday for a third straight session to settle at another low for the year, with prices finding little reason to make any significant moves on the back of a steady dollar and mixed trading this week among U.S. benchmark stock indexes.

Base Metals

Copper’s three-month price on the London Metal Exchange climbed above $6,600 per tonne at the close of trading on Wednesday April 17, buoyed by strong GDP figures out of China while a softer dollar index below the psychological level of 97 supported afternoon buying.

Crude Oil

Oil futures ended lower on Wednesday, pressured by uncertainty surrounding global crude production, despite data from a U.S. government report that revealed the first weekly decline in U.S. crude stocks in a month.

 
 

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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.

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