Morning Notes

 

Trading Range:

The Nifty opened gap up at 10534 on Friday and made a high and low of 10566 and 10520 respectively before closing positive at 10559.

Review/Outlook:

For the day, support for Nifty exists at 10520 and 10480 levels whereas resistance for Nifty stands at 10590 and 10620 levels.

Review/Outlook:

Bank Nifty opened gap up at 25524, made a high of 25643, low of 25500, and closed positive at 25602. For the day, support for Bank Nifty exists at 25450 and 24300 levels whereas resistance for Bank Nifty stands at 25750 and 25900 levels.

 
Jan 08, 2018
Market Scan
 
Benchmark Indices
Index
Clsg
Chg%
Sensex
34154
0.54
Nifty
10559
0.51
BSE 200
4712
0.68
BSE Midcap
18070
0.69
BSE Smallcap
19704
0.97
Dow Jones 25296
0.88
NASDAQ
7137

0.83

DERIVATIVES INDICATORS FOR JAN 08, 2018:

NIFTY
10558.85 (+54.05) (+0.51%)
NIFTY JAN FUTURE
10573.20 (14.35 Points Premium)
NIFTY PCR - OI
1.58 (+0.04)
NIFTY OPEN INTEREST
2.62 Cr (+5.80%)
INDIA VIX
13.11 (-2.25%)
NIFTY ROLLOVER
4%

NIFTY OPTIONS ACTIVITY (JAN SERIES)

CALL 10600 CE +5.76 lac Shares
CALL 10800 CE +1.70 lac Shares 
PUT 10500 PE +13.88 lac Shares
PUT 10400 PE +6.83 lac Shares

Sectoral Indices (BSE)
Index
Clsg
Chg%
Auto
26550

0.60

Bankex
28937

0.55

PSU
9247

-0.24

Healthcare
14911

0.62

IT
11196

0.01


Advances / Decines BSE Cash
 
Adv(%)
Dec(%)
BSE 100

72.28

27.72
BSE 200

68.16

31.84

BSE 500

65.07

34.33
Total BSE

55.57

40.32

 
FII (Rs'cr')
 
05/01*
04/01*
FIIs
364.18
113.16
MFs
-
-
*Date refers to the day of activity and not the day on which it is reported.

 
Market Turn Over (`cr)
 
05/01
04/01
BSE Cash
6,120
5,582
NSE Cash
38,343
36,893
NSE F&O
366,338
1,036,180
BSE Delivery %

49.83

47.69


Commodities, Forex & Debt
 
Clsg
Chg%
Crude Oil NYMEX $ bl
61.65

0.34

Gold `/ 10 Gms

29216.00

-0.05
Silver `/ Kg
29216..00
-0.07
`- US $
63.26
-0.52
`- Euro

76.21

-0.17

Details
Buy
Sell
Open interest at the
end of the day
Net Position
No. of
Contracts
Value
(` Cr)
No. of
Contracts
Value
(` Cr)
No. of
Contracts
Value
(` Cr)
Value
(` Cr)
Index Futures
    13,052.00
   1,111.15
    27,053.00
   2,312.64
   2,08,655.00
    16,997.60
 (1,201.49)
Index Options
 3,26,507.00
 28,543.80
 3,19,884.00
 27,827.99
   7,48,706.00
    61,050.33
     715.81
Stock Futures
 1,32,447.00
 10,099.81
 1,30,908.00
 10,009.11
   9,42,121.00
    70,346.31
       90.70
Stock Options
    85,082.00
   6,641.07
    85,446.00
   6,660.98
      74,191.00
      5,848.24
      (19.91)
Total
 5,57,088.00
 46,395.82
 5,63,291.00
 46,810.72
 19,73,673.00
 1,54,242.48
    (414.90)
Corporate News
At a time when IT companies are shrinking their geographical presence, Essar Group company AGC Networks is foraying into new shores, starting with the UK this year. (BL).
ONGC’s eastern offshore asset based at Kakinada is enhancing its gas production substantially from February and is in a position to offer gas to more user industries, according to Executive Director and Asset Manager Alok Nandan. (ET).
Homegrown auto major Tata Motors rolled out the first batch of the electric variant of its compact sedan Tata Tigor from its Sanand facility in Gujarat. (BS).
Low cost carrier IndiGo Airlines commenced three daily flights to Hyderabad and two to Bangalore from Tirupati and back. (BL).
The Centre will decide on the proposed disinvestment of RINL’s Visakhapatnam Steel Plant “after taking into account all aspects”, RINL Chairman and Managing Director P Madhusudan said on Friday. (ET).
Jindal Steel and Power Ltd (JSPL) will raise Rs. 1,000 crore through qualified institutional placement (QIP) route in February. (BL).
KIOCL Ltd (formerly Kudremukh Iron Ore Company Ltd) has signed an agreement with Rashtriya Ispat Nigam Ltd (RINL) for putting up a pellet manufacturing plant at Visakhapatnam where RINL has an integrated steel plant. (ET).
NACL Industries, a leading player in crop protection business, said its board has approved to raise Rs. 3,000 crore to fund its growth plans. The company’s board has approved to raise funds to the tune of Rs. 3,000 crore for meeting growth plans, NACL Industries said in a regulatory filing. (BL).
The Competition Commission of India (CCI) has assessed that the proposed buyout of Monsanto by Bayer Aktiengesellschaft will hit operations of competing entities. (ET).
Exide Industries has launched premium car batteries under the sub-brand ‘Epiq’. The battery comes with a six-year warranty and targets the high-end automotive segment. It will be available in full range for cars and SUVs. Exide has also launched ‘Exide Gold’ with 18-month warranty for four-wheelers. (BL).
The Enforcement Directorate (ED) has attached the properties, fixed deposits and other assets of the companies of I Syam Prasad Reddy, Indu Projects Ltd and two other related real estate firms valued at Rs. 117.74 crore. (ET).
A consortium of lenders has implemented the Strategic Debt Restructure process on Lanco Kondapalli Power Ltd, a subsidiary of Lanco Infratech. (ET).
Lupin has launched Flucytosine capsules, used to treat serious infections, in the American market. The company has launched its generic product in the strengths of 250 mg and 500 mg after having received approval from the US Food and Drug Administration (USFDA), Lupin said in a regulatory filing. (BS).
Moving ahead with sale of MPS Group of companies’ assets to recover money, regulator SEBI on Friday said it has lined up 18 properties of the West Bengal-based group for an online auction next month at a total reserve price of over Rs. 67 crore. (BL).
L&T Hydrocarbon Engineering Ltd (LTHE) has signed an offshore contract for ‘Bassein Development 3 Well Platform & Pipeline Project’ with Oil & Natural Gas Corporation (ONGC). A company statement said the deal is valued at approximately Rs. 1,483 crore (approximately $ 229 million). (ET).
Airtel Payments Bank has terminated relationships with nearly 1,000 retailers for not following the due process while signing up customers, after the banking arm of the country's largest telecom carrier conducted internal investigations to zero in on errors and lapses that led to its Aadhaar-based e-KYC licence getting suspended. (BS).
With UCO Bank facing severe stress in terms of crucial banking parameters, its employees associations have vowed to play catalyst in the bank's turnaround plan and urged their members to work harder. (BL).
Force Motors Limited (FML) reported total sales of 1,921 vehicles in December 2017 against 2,310 vehicles in December 2016, a decline of 17% yoy. (ET).
Dilip Buildcon incorporates arm to explore mining opportunities. The said company is jointly promoted by Dilip Buildcon Limited and VPR Mining Infrastructure Private Ltd, with equity participation of 74% and 26% respectively, in the Equity Share capital of the said company. (ET).
NBCC has received the contract from Ecotourism Development Corporation of Uttarakhand, Dehradun for construction of Kotdwar-Ramnagar Kandi Road under Green Infrastructure / Green Road Project amounting to Rs 2000 crore as project management consultant. (ET).
Sagar Cements December sales up 65 percent (YoY) at 2,54,348 million tonnes versus 1,54,195 million tonnes. (BQ).
Tata Steelís Q3FY18 India sales at 3.3 million tonnes versus 2.99 million tonnes, up 10% on YoY basis. (BQ).
China Development Bank withdraws insolvency petition against RCom after Reliance Jio deal, After RComís debt-reduction plan, including an asset sale to Reliance Jio Infocomm Ltd, was announced last week, China Development Bank says it was in talks with RCom- Mint.
Economy and Sector News
The 3.2-per-cent fiscal deficit target for FY18 has inched up, thanks to the CSO lowering the growth numbers for FY18 in its first advance estimate. The blip was however, long expected, given the earlier aggressive forecast of 11.75 per cent growth in nominal GDP for FY18 which has now been revised down sharply to 9.5 per cent. (BL).
Cochin Port Trust and Indian Navy have signed an agreement reserving the Q2-Q3 berths at Mattacherry wharf of Cochin Port for naval ships. In more news, credit growth after a long gap grew in double digits to 10.65 per cent at Rs.80,96,727 crore in the fortnight ended December 22, 2017 due to the base effect, according to the RBI data. Advances stood at Rs. 73,17,391 crore in the fortnight ended December 23, 2016. (ET).
The Income Tax Department today relaxed norms for levy of Minimum Alternate Tax (MAT) on companies facing corporate insolvency proceedings. As per Section 115JB of the Income Tax Act, MAT is levied on book profit after deducting the amount of loss brought forward or unabsorbed depreciation, whichever is less. In more news, the country’s 12 major ports recorded a 3.64 per cent growth in cargo traffic during April-December 2017 at 499.41 million tonnes (MT), as per official data. Eight major ports - Kolkata (including Haldia), Paradip, Visakhapatnam, Chennai, Cochin, New Mangalore, JNPT and Kandla - registered positive growth in traffic during the period. (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 rose on Friday, with major indexes finishing at all-time highs again after the December jobs report showed that the labor market remained strong. The Dow Jones Index closed at 25,296, up 220.74 points by 0.88%. The Standard & Poor's 500 index closed at 2,743, up 19.16 points by 0.70%. The Nasdaq Composite Index closed at 7,137, up 58.64 points by 0.83%.

FTSE 100
UK markets extended their recent record run on Friday, with the top-flight index hitting fresh highs as investors brushed off a slightly weaker than expected reading on US non-farm payrolls for December. The FTSE 100 index closed at 7,724, up 28.34 points by 0.37%
.

Nikkei
Asian shares neared all-time peaks on Monday after Wall Street boasted its best start to a year in over a decade, with brisk economic growth and benign inflation proving a potent cocktail for risk appetite. Nikkei 225 index is currently trading at 23,715, up 208.20 points by 0.89.

 

Global Indices

05/01/2018

Clsg

Chg%

Dow Jones

25,296
0.88

NASDAQ

7,137
0.83

FTSE 100

7,724

0.37

Bovespa

79,071

0.54

08/01/2018

Latest (7:15 AM IST)

Chg%

Nikkei

23,715

0.89

Hang Seng

30,895

0.26

Precious Metals
Gold prices held steady on early Monday, below 3-1/2-month highs hit last week, amid expectations of more U.S. interest rate hikes this year. Spot gold was trading at $1,320.51 an ounce.

Base Metals
Base metals prices on the London Metal Exchange closed mostly lower on Friday January 5 although tin bucked the trend.

Crude Oil
Oil prices reached their highest since 2015 on Monday helped in part by political tensions in Iran, the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC).


Disclaimer: This document has been prepared by the Research Desk of Asit C Mehta Investment Interrmediates Ltd. and is meant for use of the recipient only and is not for circulation. This document is not to be reported or copied or made available to others. It should not be considered as an offer to sell or a solicitation to buy any security. The information contained herein is from sources believed reliable. We do not represent that it is accurate or complete and it should not be relied upon as such. We may from time to time have positions in and buy and sell securities referred to herein.