Morning Notes
14th Oct, 2019
 

Trading Range:

Nifty opened gap up at 11258 on Friday and made a high and low of 11363 and 11189 respectively before closing positive at 11305.

Review/Outlook:

For the day, support for Nifty exists at 11270 and 11190 levels whereas resistance for Nifty stands at 11370 and 11410 levels.

Review/Outlook:

Bank Nifty opened gap up at 28246, made a high of 28604, low of 27737, and closed flat to positive at 28042. For the day, support for Bank Nifty exists at 27800 and 27500 levels whereas resistance for Bank Nifty stands at 28300 and 28600 levels.
Market Scan
Benchmark Indices
Index Clsg Chg%
Sensex 38,127 +0.65
Nifty 11,305 +0.63
BSE 200 4,710 +0.61
BSE Midcap 13,781 +0.24
BSE Smallcap 12,772 +0.38
Dow Jones 26,817 +1.21
NASDAQ 8,057 +1.34
 

DERIVATIVES INDICATORS FOR OCT 14, 2019:

NIFTY 11305.05 (+70.50) (+0.63%)
NIFTY OCT FUTURE 11311.70 (6.65 Points Premium)
NIFTY PCR - OI 1.14(-0.01)
NIFTY OPEN INTEREST 1.59Cr. (+1.84%)
INDIA VIX 17.14 (-0.51%)
NIFTY ROLLOVER 7%

NIFTY OPTIONS ACTIVITY (31-OCT SERIES)

CALL 11500 CE -1.31 lac Shares
CALL 11300 CE -1.24 lac Shares
PUT 11200 PE +0.81 lac Shares
PUT 11300 PE +1.06 lac Shares
Sectoral Indices (BSE)
Index Clsg Chg%
Auto 16,576 +0.49
Bankex 31,732 +0.14
PSU 6,465 +0.15
Healthcare 12,152 +0.52
IT 15,466 +1.74
 
Market Turn Over (`cr)
Index 11/10 10/10
BSE Cash 2,370 2,188
NSE Cash 37,369 32,809
NSE F&O 949,607 2,559,668
BSE Delivery % 52.65 43.78
Advances / Decines BSE Cash
Adv(%) Dec(%)
BSE 100 59.41 40.59
BSE 200 59.70 39.80
BSE 500 53.49 44.91
Total BSE 41.59 51.41
 
Commodities, Forex & Debt
Clsg Chg%
Crude Oil NYMEX $ bl 54.70 +2.15
Gold Rs./ 10 Gms 37845.00 -0.82
Silver Rs./ Kg 45171.00 -0.55
Rs.- US $ 70.92 -0.13
Rs.- Euro 78.24 +0.08
FII (Rs cr )
11/10* 10/10*
FIIs -79.82 -683.02
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       79,502.00       5,374.32       71,267.00       4,712.84    1,65,783.00     13,050.28     661.48
Index Options  30,52,900.00  2,08,576.60  30,68,249.00  2,09,437.67    6,96,041.00     54,312.07    (861.07)
Stock Futures    2,66,434.00     13,486.04    2,74,216.00     14,167.11  15,50,262.00     88,506.32    (681.07)
Stock Options    1,15,158.00       6,436.26    1,12,430.00       6,281.03       80,327.00       4,431.36     155.23
Total  35,13,994.00  2,33,873.22  35,26,162.00  2,34,598.65  24,92,413.00  1,60,300.03    (725.43)
Corporate News
Dalmia Cement (Bharat) Ltd is expecting a moderate growth in cement sales this year backed by government’s thrust on the infrastructure sector. According to Ujjwal Batria, Chief Operating Officer, Dalmia Cement, demand is expected to pick up starting mid-October this year. (BL).
The financial fraud agency said on Saturday assets worth Rs 40.25 billion ($567.60 million) of Bhushan Power & Steel Limited were connected with a money-laundering probe, a move that could scupper the debt-ridden firm's sale to JSW Steel Ltd. (ET).
The Board of Future Retail Ltd (FRL) on Saturday 'in-principle' agreed and approved acquisition of the retail infrastructure assets up to maximum limit of Rs. 4,000 crore of Future Enterprises Ltd (FEL) in one or more tranches. (BL).
The Japanese behemoth will begin sales late next year of the second-generation Mirai, its fuel cell-powered four-door, and ramp up annual production by 10-fold from the current model. Toyota’s bet that it can position a hydrogen sedan for more of a mass market flies in the face of rivals wagering on putting batteries into the bigger-bodied vehicles consumers are buying. (ET).
L&T Construction has bagged a slew of orders for its power Transmission & Distribution and Metallurgy & Material Handling businesses. These orders have been classified as significant, which means that they are valued in the range of Rs 1,000 crore–Rs 2,500 crore. (ET).
Quarterly Earnings
Infosys constant currency (cc) revenue grew by 3.3% qoq and 11.4% yoy. US Dollar revenue grew by 2.5% qoq and 9.9% yoy to $3,210mn. INR revenue grew by 3.8% qoq and 9.8% yoy to Rs22,629cr. PAT grew by 5.8% qoq but down 2.2% yoy to Rs4,019cr. (BL).
Avenue Supermarts, owner of DMart supermarket chain, on Saturday posted a 47.54 per cent year-on-year rise in net profit at Rs 322.66 crore for the quarter ended September 2019. The firm had posted a net profit of Rs 218.69 crore in the corresponding quarter last year. Consolidated total income of the company increased 22.26 per cent YoY to Rs 5,998.90 crore during the quarter under review against Rs 4,906.54 crore in the same period last year. Earnings per share (EPS) jumped to Rs 5.34 in Q2FY20 from Rs 3.62 in Q2FY19. (BL).
Economy and Sector News
E-commerce start-up Vahdam Teas has raised Rs.75 crore in series C funding. The funds will be used to expand the company’s presence in the US, Europe and enter new markets such as South Asia, India and the UAE, said Bala Sarda, Founder, Vahdam Teas. In more news, Leading fertiliser cooperative IFFCO on Friday reduced the retail prices of its complex fertilisers including di-ammonium phosphate (DAP) by Rs 50 per bag, amid easing raw materials and manufactured fertilisers prices globally. (BL).
The Indian Highways Management Company Ltd (IHMCL) and Goods and Services Tax Network (GSTN) will sign a memorandum of understanding (MoU) on Monday for integration of FASTag with GST e-way bill system. In more news, Excess rains in the key producing States of Madhya Pradesh and Rajasthan have shrunk the soyabean crop for the 2019 kharif season by close to a fifth, according to the processing industry. (ET).
Indian oil refiners, including Reliance Industries Ltd (RIL), Indian Oil and HPCL, could see a surge in crude tanker rates, which will hurt their margins, after the US sanctioned some units of Chinese tanker giant COSCO in late September, restricting tonnage supply across the globe. In more news, government is working on enabling provisions to reduce its stake to less than 51 per cent and yet retain control of the Central Public Sector Enterprises (CPSEs) in non-priority and non-strategic sectors. (BL).
The Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 for August 2019 stands at 126.6, which is 1.1% lower as compared to the level in August 2018. The cumulative growth for the period April-August 2019 over the corresponding period of the previous year stands at 2.4%. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for August 2019 stand at 92.1, 129 and 165.7 respectively, with the corresponding growth rates of 0.1%, (-) 1.2% and (-) 0.9% as compared to August 2018. The cumulative growth in these three sectors during April-August 2019 over the corresponding period of 2018 has been 2.8%, 2.1% and 5% respectively, according to the Ministry of Statistics & Programme Implementation. In more news, the World Bank on Sunday slashed its growth forecast for India’s current fiscal year to 6%, down from 7.5%, warning that the “severe” slowdown could further weaken the country’s stuttering financial sector. In its last forecast in April, the bank had said that India’s economic outlook was strong and expected growth of 7.5% during the current fiscal year that began in April. (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 higher on Friday after Donald Trump said the US and China had reached the first phase of a trade deal that would delay tariff hikes set to kick in next week. The Dow Jones Index closed at 26,816, up 319.92 points by 1.21%. The Standard & Poors 500 index closed at 2,970, up 32.14 points by 1.09%. The Nasdaq Composite Index closed at 8,057, up 106.26 points by 1.34%.

FTSE 100

UK markets surged on Friday, with banks and housebuilders up on Brexit hopes, although gains for the top flight index were capped by a jump in sterling to its best levels since mid-2019 - but analysts remained wary. The FTSE 100 index closed at 7,247, up 60.72 points by 0.84%.

 
 
Global Indices
11/10/2019 Clsg Chg%
Dow Jones 26,816 +1.21
NASDAQ 8,057 +1.34
FTSE 100 7,247 +0.84
Bovespa 103,832 +1.98
14/10/2019 Latest
(5:21AM IST) 		Chg%
Nikkei 21,798 +1.15
Hang Seng 26,308 +2.34

Nikkei

Asian stocks started trading early in the morning on Monday on a positive note as investors will be watching the US markets very closely. Nikkei is currently trading at 21,798, up 246.89 points by 1.15%.

Precious Metals

Gold futures finished lower Friday, with bullion registering its lowest settlement month to date, amid growing optimism on Sino-American trade talks and progress on Brexit.

Base Metals

Copper closed only slightly higher on Friday on the London Metal Exchange despite price-supportive news of force majeure being declared at the Las Bambas copper mine in Peru.

Crude Oil

Crude-oil futures headed sharply higher Friday, even as a monthly international report indicated that weakness in the global economy will hurt demand for oil and its byproducts.

 
 
 

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Hrishikesh Yedve D: 91 22 2858 3207
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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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