Morning Notes

 

Trading Range:

Nifty opened gap up at 10645 on Tuesday and made a high and low of 10659 and 10604 respectively before closing positive at 10637.

Review/Outlook:

For the day, support for Nifty exists at 10600 and 10560 levels whereas resistance for Nifty stands at 10680 and 10710.

Review/Outlook:

Bank Nifty opened gap up at 25728, made a high of 25804, made a low of 25617 and closed positive at 25704 levels. For the day, support for Bank Nifty exists at 25500 and 25300 levels whereas resistance for Bank Nifty stands at 25850 and 26000 levels.

 
Jan 10, 2018
Market Scan
 
Benchmark Indices
Index
Clsg
Chg%
Sensex
34443
0.26
Nifty
10637
0.13
BSE 200
4746
0.04
BSE Midcap
18174
-0.40
BSE Smallcap
19911
0.08
Dow Jones 25385
0.41
NASDAQ
7164

0.09

DERIVATIVES INDICATORS FOR JAN 10, 2018:

NIFTY
10637.00 (+13.40) (+0.13%)
NIFTY JAN FUTURE
10646.90 (9.90 Points Premium)
NIFTY PCR - OI
1.67 (+0.03)
NIFTY OPEN INTEREST
2.87 Cr (+4.79%)
INDIA VIX
13.84 (+0.81%)
NIFTY ROLLOVER
4%

NIFTY OPTIONS ACTIVITY (JAN SERIES)

CALL 10600 CE +2.57 lac Shares
CALL 10800 CE +3.26 lac Shares 
PUT 10600 PE +10.67 lac Shares
PUT 10500 PE +6.63 lac Shares

Sectoral Indices (BSE)
Index
Clsg
Chg%
Auto
26553

-0.39

Bankex
29049

0.04

PSU
9294

-0.02

Healthcare
14996

-0.63

IT
11389

0.32


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

35.64

64.36
BSE 200

37.31

62.69

BSE 500

38.92

61.08
Total BSE

43.73

52.81

 
FII (Rs'cr')
 
09/01*
08/01*
FIIs
598.51
892.34
MFs
-
-
*Date refers to the day of activity and not the day on which it is reported.

 
Market Turn Over (`cr)
 
09/01
08/01
BSE Cash
5,458
6,008
NSE Cash
37,081
37,694
NSE F&O
467,898
394,141
BSE Delivery %

55.23

54.19


Commodities, Forex & Debt
 
Clsg
Chg%
Crude Oil NYMEX $ bl
63.49

0.84

Gold `/ 10 Gms

29156.00

-0.36
Silver `/ Kg
38877.00
-0.43
`- US $
63.65
0.28
`- Euro

76.01

0.08

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
    16,549.00
   1,355.70
    12,749.00
   1,064.04
   2,22,998.00
    18,307.70
  291.66
Index Options
 4,39,998.00
 40,308.39
 4,42,153.00
 40,410.16
   8,15,460.00
    67,010.07
 (101.77)
Stock Futures
 1,26,716.00
   9,819.54
 1,20,532.00
   9,459.24
   9,51,361.00
    71,518.34
  360.30
Stock Options
    87,915.00
   6,965.25
    89,994.00
   7,142.71
      87,675.00
      6,943.67
 (177.46)
Total
 6,71,178.00
 58,448.88
 6,65,428.00
 58,076.16
 20,77,494.00
 1,63,779.78
  372.73
Corporate News
Coal India board has approved a hike in non-coking coal prices for both power and non-power consumers with immediate effect. According to CIL sources, the average price hike will be around 10 per cent. Due to this revision, the world’s largest coal miner will earn an incremental revenue of Rs. 1,956 crore for the remaining period of the 2017-18 fiscal year, while the total revenue will be Rs. 6,421 crore, the company said in a regulatory filing. (BL).
A month before the Delhi Auto Expo, India’s largest carmaker Maruti Suzuki on Monday unveiled the teaser of its all-new compact car design language. (ET).
Tata Power Renewable Energy Ltd, Tata Power's wholly-owned subsidiary, has commissioned a 50-MW DCR solar plant at Pavagada Solar Park in Karnataka. (BS).
Whirlpool India has forayed in the commercial appliance segment and is eyeing a 5-per-cent market share in the next 18 months. (BL).
Parle Agro, has with the appointment of Tollywood superstar Allu Arjun as the brand ambassador for the company's flagship product Frooti, is looking to consolidate its foothold in the South. The ₹2,000-crore brand has been one of the leading mango beverages in the country. Allu Arjun's introduction is expected to further strengthen the company's connect with the youth in the South, the company said in a release. It is also understood to be a part of the organisation’s expansion strategy to become a ₹10,000-crore entity by 2022. (ET).
Apollo Tyres laid the foundation stone for a ₹1,800-crore tyre factory in Andhra Pradesh. (BL).
Welspun India has incorporated a wholly-owned subsidiary in the US to invest in e-commerce companies.. (ET).
Engineering major Larsen & Toubro said it has commissioned and handed over the 360 MW Bheramara power plant in Bangladesh. The Bheramara Combined Cycle Power Plant Development project was handed over to North West Power Generation Company Ltd (NWPGCL), a fully-owned subsidiary of Bangladesh Power Development Board (BPDB), on January 5, 2018, it said in a BSE filing. (BL).
Axis Bank is looking to acquire a life insurance business, said people with knowledge of the development. The bank's executive committee had approved the move in the December quarter. (ET).
IDFC Bank, which scrapped a deal to merge with Shriram City Union, is said to be exploring a similar deal with the Mumbai-based Capital First, which has more than 5 million customers in retail and small and medium enterprises, said two people familiar with the discussions. (BL).
The recent tariff reduction by Reliance Jio, which has already left the once-sunshine industry bleeding, will further delay a recovery in rivals' average revenue per user (Arpu) level, which is a key profitability gauge for the industry, warns a report. (ET).
Infosys announced that it has concluded an Advance Pricing Agreement (APA) with the US Internal Revenue Service (IRS). Infosys was engaged with the IRS on the APA since 2015 and under the APA, the company and the IRS have agreed on the methodology to allocate revenues to compute taxable income of formers US operations. (ET).
The Board of Directors of the South Indian Bank Ltd. at their meeting held today inter alia decided to augment the paid-up capital by issue of up to 20 cr equity shares of face value Re1 each, through Qualified Institutional Placement (QIP). The price, time of the issue is yet to be decided. The dilution comes to 11% after this QIP. (BS).
IFCI sold 0.2% equity in NSE at Rs.925.1 per share. Monetizing these investments would act positive for the stock. Divesting the above investments would improve its capital and would propel growth. It recently sold stake in few holdings (including continuous stake sale in NSE), which is positive for the company as raising funds through divestments would improve its capital ratios and hence would set the platform for further growth. IFCI will require significant capital to turn around its operations. (BL).
Telecom Commission has concurred with sectoral regulator Trai's suggestion to raise spectrum holding limit of mobile operators from 25% to 35% which will ease the exit route for operators under stress, an official source said on Tuesday. It suggested a 50 per cent cap on combined radiowave holding in efficient bands like 700 MHz, 800 MHz and 900 MHz. t had also approved the IMG recommendation to lower the interest rate on penalties paid by telecom operators by about 2 per cent. (BS).
Cabinet may review FDI policy in construction, single brand retail & aviation today. The Union Cabinet is likely to review foreign direct investment (FDI) policy in certain sectors today with a view to attract more overseas funds, sources told PTI.
Economy and Sector News
Insurance companies will soon have to adhere to more stringent, global standards in capital requirements, with insurance regulator IRDAI set to introduce the Risk Based Capital (RBC) regime. (BL).
The provisional figures of Direct Tax collections up to December 2017 show that net collections are at Rs6.56 lakh cr, which is 18.2% higher than the net collections for the corresponding period of last year. The net Direct Tax collections represent 67% of the total Budget Estimates of Direct Taxes for FY2017-18 (Rs9.8 lakh cr). Gross collections (before adjusting for refunds) have increased by 12.6% to Rs7.68 lakh cr during April to December, 2017. Refunds amounting to Rs1.12 lakh cr have been issued during April to December, 2017. (ET).
A female flight attendant of Jet Airways has been arrested by the Directorate of Revenue Intelligence (DRI) for allegedly trying to smuggle out USD 4,80,200 out of the country, according to an official statement. The accused was intercepted by DRI officials when she was on a flight to Hong Kong yesterday, 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 notched record closes on Tuesday as investors looked ahead to the start of earnings season. The Dow Jones Index closed at 25,386, up 102.80 points by 0.41%. The Standard & Poor's 500 index closed at 2,751, up 3.58 points by 0.13%. The Nasdaq Composite Index closed at 7,164, up 6.19 points by 0.09%.

FTSE 100
UK marketsnotched up a record closing high on Tuesday as retailers were boosted by a strong Christmas trading update from Morrisons and strong supermarket industry data. The FTSE 100 index closed at 7,731, up 34.51 points by 0.45%
.

Nikkei
Asian shares hovered just below their 2007 record peak on Wednesday, supported by expectations of solid corporate earnings on the back of synchronised growth in the global economy. Nikkei 225 index is currently trading at 23,778, down 72.17 points by 0.30.

 

Global Indices

09/01/2018

Clsg

Chg%

Dow Jones

25,386
0.41

NASDAQ

7,164
0.09

FTSE 100

7,731

0.45

Bovespa

78,864

-0.65

10/01/2018

Latest (7:35 AM IST)

Chg%

Nikkei

23,778

-0.30

Hang Seng

30,948

-0.20

Precious Metals
Gold prices ended lower for second day in a row Tuesday, as the U.S. dollar remained buoyant along with global equities, undercutting the appeal of the haven asset.

Base Metals
Comex copper prices weakened Tuesday January 9 morning in the US, although the complex remains well-supported due to positive Chinese and US data released in the past few weeks.

Crude Oil
Oil prices hit their highest levels since 2014 on Wednesday due to ongoing production cuts led by OPEC as well as healthy demand, although analysts cautioned that markets may be overheating.


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.