Morning Notes

 

Trading Range:

Nifty opened gap up at 10637 on Thurday and made a high and low of 10665 and 10612 respectively before closing positive at 10651.

Review/Outlook:

For the day, support for Nifty exists at 10620 and 10590 levels whereas resistance for Nifty stands at 10680 and 10710 levels.

Review/Outlook:

Bank Nifty opened gap up at 25628, made a high of 25695, low of 25532, and closed positive at 25661. For the day, support for Bank Nifty exists at 25500 and 25300 levels whereas resistance for Bank Nifty stands at 25800 and 26000 levels.

 
Jan 12, 2018
Market Scan
 
Benchmark Indices
Index
Clsg
Chg%
Sensex
34503
0.20
Nifty
10651
0.18
BSE 200
4749
0.19
BSE Midcap
18168
0.27
BSE Smallcap
19984
0.41
Dow Jones 25574
0.81
NASDAQ
7212

0.81

DERIVATIVES INDICATORS FOR JAN 12, 2018:

NIFTY
10651.20 (+19.00) (+0.18%)
NIFTY JAN FUTURE
10654.05 (2.85 Points Premium)
NIFTY PCR - OI
1.75 (+0.09)
NIFTY OPEN INTEREST
2.98 Cr (+0.65%)
INDIA VIX
14.01 (-0.16%)
NIFTY ROLLOVER
4%

NIFTY OPTIONS ACTIVITY (JAN SERIES)

CALL 10700 CE -4.78 lac Shares
CALL 10900 CE +2.18 lac Shares 
PUT 10600 PE +12.93 lac Shares
PUT 10500 PE +6.61 lac Shares

Sectoral Indices (BSE)
Index
Clsg
Chg%
Auto
26413

0.15

Bankex
28952

-0.02

PSU
9250

-0.14

Healthcare
15019

0.25

IT
11696

0.84


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

54.46

45.54
BSE 200

54.23

45.27

BSE 500

53.29

45.91
Total BSE

51.96

43.68

 
FII (Rs'cr')
 
11/01*
10/01*
FIIs
-391.66
-21.69
MFs
-
-
*Date refers to the day of activity and not the day on which it is reported.

 
Market Turn Over (`cr)
 
11/01
10/01
BSE Cash
5,254
5,026
NSE Cash
35,306
36,413
NSE F&O
1,020,260
596,072
BSE Delivery %

59.67

53.33


Commodities, Forex & Debt
 
Clsg
Chg%
Crude Oil NYMEX $ bl
63.57

-0.34

Gold `/ 10 Gms

29374.00

0.17
Silver `/ Kg
38830.00
-0.42
`- US $
63.67
-0.14
`- Euro

76.75

0.68

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
      15,499.00
   1,364.01
      30,715.00
   2,550.35
   2,10,724.00
    17,231.70
 (1,186.35)
Index Options
   8,23,346.00
 77,515.62
   8,08,157.00
 76,152.80
   8,68,285.00
    71,026.77
  1,362.82
Stock Futures
   1,10,801.00
   8,477.41
   1,08,537.00
   8,324.67
   9,64,664.00
    72,580.18
     152.74
Stock Options
      85,365.00
   6,434.83
      86,279.00
   6,473.92
   1,00,768.00
      7,887.32
      (39.09)
Total
 10,35,011.00
 93,791.87
 10,33,688.00
 93,501.74
 21,44,441.00
 1,68,725.96
     290.13
Corporate News
Mangalore Chemicals and Fertilizers (MCF) Ltd, a subsidiary of Zuari Agro and Chemicals Ltd, conducted a public hearing for its expansion projects in Mangaluru on Thursday. (BL).
Danone India has decided to discontinue selling its UHT milk and fresh dairy products as part of its strategy to rationalise its product portfolio in the country. (ET).
Venture funding player, GVFL Ltd, informed that it has recently exited from eInfochips, an Ahmedabad-based product engineering services firm, with a blockbuster return of 7.4 times of its investment from SME Technology Fund. (BS).
Natural gas transmission and distribution company, GAIL India, will now be setting up coal to gas conversion plants. (BL).
Texmaco Rail and Engineering has floated a new subsidiary Texmaco Defence Systems Private Ltd (TDSPL). (ET).
Dish TV India has decided to revaluate the proposed amalgamation of service with Videocon D2H. (BL).
Six years since replacing the erstwhile useful heat value (UHV) based pricing system with gross-calorific value-based pricing, Coal India adopted a new pricing policy on January 9 for non-coking coal, used primarily for electricity generation. (ET).
Reliance Infrastructure Ltd (RInfra) has emerged as the lowest bidder in a Rs. 567-crore EPC tender, floated by NTPC for setting up a system, which will remove sulphur dioxide from the exhaust gases of the Jhajjar power plant, sources said. (BL).
Tata Group earlier this week paid around Rs 17,000 crore to banks to settle a lion's share of the outstanding debt of Tata Teleservices, said two people close to details. After the payment around Rs 6,000 crore of debt remains with the company. (ET).
Following a direction from the global airline grouping IATA, Jet Airways said it will prohibit passengers from carrying smart luggage, which include devices with non-removable batteries, on its aircraft from January 15. (BL).
Capital First said late Thursday that it explores various opportunities on a continuous basis amid market talk that the Mumbai-based non-banking finance company could be considering a merger with IDFC Bank, which is up for sale. (ET).
Cochin Shipyard (CSL) signed a MoU with Mumbai Port Trust (MbPT) for management and operation of the Shiprepair Facilities at Mumbai Port trust. (ET).
Shree Cement to buy 93% stake in UAE-based Union Cement for $305 million Shree Cement is expected to complete the acquisition of Union Cement in nine months, subject to approval from UAE regulatory bodies. This will be Shree Cementís first venture outside India and its biggest acquisition ever. Locally, the company produces 29.3 million tonnes of cement a year.(BSE)
Country's largest lender State Bank of India (SBI) plans to raise Rs 20,000 crore through long term bonds to fund affordable housing. (MC).
Quarterly Results
TCS reported in-line numbers for Q3FY18 on all fronts. Constant currency (cc) revenue grew by 1.3% qoq and US revenue came in at USD4,787mn. INR revenue grew by 1.2% qoq to Rs30,904cr. EBITDA margin inched up by 9bp qoq to 26.8%. PAT increased by 1.3% qoq to Rs6,545cr. (BL).
Sintex Plastics reported muted set of numbers for Q3FY18 on revenue and operating fronts. Revenue de-grew by 7.0% qoq to Rs1,332.7cr. Adjusted EBITDA stood at Rs184.9cr, down 23.9% qoq, Adj. EBIDTA margin declined by 307bps to 13.9PAT declined by 43.4% qoq to Rs51.8cr on higher tax outgo. (ET).
Shree Cement reported its Q3FY18 numbers Revenue (net of excise for the base quarter and net of GST for the current quarter) grew by 23.1% yoy to Rs2296.2cr. EBITDA stood at Rs569.6cr, up 16.2% yoy. Thus, EBIDTA margin contracted by 148bps yoy to 24.8%. PAT declined by 41.6% yoy to Rs333.3cr. (ET).
Bajaj Corp's revenue grew by 11.3% yoy to Rs208.1cr. EBITDA stood at Rs67.8cr, up 10.8% yoy. EBIDTA margin remained flat at 32.6%. However, due to lower other income, PAT declined by 4.9% yoy to Rs55.2cr. (BL).
IndusInd Bank’s NII has improved by 20% yoy to Rs1,895cr against Rs1,578cr. It's net profit has improved by 24.7% to Rs936cr against Rs751cr yoy. GNPA for Q3FY18 stands at 1.16% against 1.08% qoq. NNPA for the quarter stands at 0.46% against 0.44% qoq. (ET).
Economy and Sector News
World food prices fell in December from the month before, as dairy, vegetable oils and sugar values declined sharply, the United Nations food agency said on Thursday. The Food and Agriculture Organization's (FAO) food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 169.8 points in December, down 3.3 per cent from November. In 2017 the index averaged 174.6 points, up 8.2 per cent from 2016, reaching its highest annual value since 2014 although food on international markets was still 24 per cent cheaper than in 2011. (BL).
Stepping up action against black money evaders, tax authorities have attached over 900 properties valued at more than Rs. 3,500 crore. The action comes under the Benami Property Transactions Act, which came into force on November 1, 2016. (ET).
The extradition hearing of Vijay Mallya continued on Thursday as the defence sought to challenge the admissibility of certain evidence, used by the prosecution in its efforts to return Mallya to India based on allegations of fraud, and money laundering. The case has now been pushed back till late January at the earliest. Mallya is bailed till April 2, and the next hearing, in which the defence will continue to contest the admissibility of evidence, will continue within the next three weeks, at a date to be determined. (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 bounced back from the prior session's losses to record another new high on Thursday ahead of bank earning season the next day and as the dollar took a bruising. The Dow Jones Index closed at 25,575, up 205.60 points by 0.81%. The Standard & Poor's 500 index closed at 2,768, up 19.33 points by 0.70%. The Nasdaq Composite Index closed at 7,212, up 58.21 points by 0.81%.

FTSE 100
UK markets nudged higher on Thursday as strength from miners and defence companies offset weak retailers and housebuilders following uninspiring updates from Tesco, Marks & Spencer and Barratt Developments. The FTSE 100 index closed at 7,763, up 14.43 points by 0.19%
.

Nikkei
Asian stocks resumed their ascent on Friday, supported by U.S. earnings optimism and a rise in oil prices while the euro edged higher as the European Central Bank signalled an end to its massive stimulus. Nikkei 225 index is currently trading at 23,659, down 51.11 points by 0.22.

 

Global Indices

11/01/2018

Clsg

Chg%

Dow Jones

25,575
0.81

NASDAQ

7,212
0.81

FTSE 100

7,763

0.19

Bovespa

79,365

1.49

12/01/2018

Latest (7:07 AM IST)

Chg%

Nikkei

23,659

-0.22

Hang Seng

31,120

0.15

Precious Metals
Gold prices edged higher Thursday to settle at a four-month high as the U.S. dollar took a turn lower for the week.

Base Metals
Base metals prices on the London Metal Exchange were mostly lower at the close on Thursday January 11, with nickel prices falling 2%.

Crude Oil
Oil prices rose to three-year highs on Friday while interest rate sensitive-sectors, such as utilities and real estate companies, underperformed.


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.