daily news letter date: 07.11
TRANSCRIPT
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DAILY NEWS LETTER
Date: 07.11.2019
Nifty Short Term Trend
The Nifty50 gained strength in late morning deals to touch the
psychological 12,000 level intraday for the first time since June
11 and closed higher on November 6, driven by private banks
and some technology stocks. The index formed bullish candle
on daily charts as dips are being bought into and the supports
are gradually shifting higher. Though, at the end of the session,
it failed to hold 12,000 levels. Notably, it has been respecting
the rising support trendline. The consolidation to continue in
the near term unless the index sees a strong breakout on either
side for a directional move and breaking out 12,000 on closing
may take the Nifty to its earlier record high. Nifty50 smartly
recoiled from the intraday lows of 11,850 after almost testing
its near term support levels on lower time frame charts which
resulted in a bullish candle with a slightly longer lower shadow.
If Nifty sustains above 12,000 levels then initial targets shall be
12,103-12,150 levels whereas immediate supports can be
expected near 11,925-11,840 for the day.
Bank Nifty managed to hold above 30,000 levels and witnessed
a sharp recovery toward 30,700. The index closed 1.23 percent
higher at 30,591 and formed a Bullish Engulfing kind of pattern
of daily scale with multiple support at 30,000. It has been
respecting to its rising support trendline on daily scale and
supports are intact to drive the next leg of rally. It has to
continue to hold above 30,250 levels to witness an up move
towards 30,800 then 31,250 levels while on the downside
major support is seen at 30,000.
Levels to watch
R1 R2 S1 S2 Outlook for the Day Short term Outlook
NIFTY 12103 12150 11925 11840 Sideways Positive
BANK NIFTY 30800 31250 30250 30000 Sideways Positive
USD/INR 71.20 71.48 70.82 70.55 Positive Positive
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Financial & Economic Wrap Up
Housing Finance Companies (HFCs) should focus
more on providing retail loans instead of financing
developers, State Bank of India (SBI) Chairman
Rajnish Kumar said, calling out for a reversal in an
earlier relaxation. "If you are a housing finance
company, be a housing finance company. Else be a
developer finance company. Everybody drew
comfort when the money was lent to HFCs. But that
turned otherwise and that’s where the whole
problem arose. Earlier, HFC was giving 75 percent of
their total loans to retail loans.
Lupin, India's third-largest drugmaker said it plans
to seek USFDA re-inspection of its Goa and
Somerset plants by the first quarter of the calender
year 2020. "I think there's another two months of
work that we want to put in before we put them up
for the re-inspection," Nilesh Gupta, Managing
Director of Lupin told reporters in a post-earnings
conference call.
Adani Enterprises and the Delhi Airport
International Limited are among the four bidders
for the proposed Jewar International Airport,
officials said on November 5. Technical bids for
selection of the concessionaire for the airport were
opened at the office of the Noida International
Airport Limited (NIAL) in Greater Noida.
Prakash Industries on November 6 emerged as the
highest bidder for Bhaskarpara coal block in
Chhattisgarh, an official said. Birla Corporation had
on Nov 5 bagged the Brahmapuri mine in Madhya
Pradesh, the official said quoting the results of e-
auction for coal mines under the eight tranche.
Jindal Steel and Power Ltd (JSPL) was the highest
bidder for Gare Palma IV/1 coal block in
Chhattisgarh with a bid price of Rs 230 per tonne on
Monday.
India will see a massive $100 billion investment in
creating oil and gas infrastructure over the next five
years as the world's third-largest energy consumer
steps up spending to meet rising demand. Speaking
at KPMG's Enrich 2019 conference, he said India will
chart its own course of energy transition in a
responsible manner even as it is said to be a key
driver of global energy demand in the coming
decades.
Indices Performance
Index LTP Previous Close % Change
S&P BSE Sensex 40469.78 40248.23 0.55%
Nifty 50 11966.05 11917.20 0.41%
Nifty Midcap 50 4599.45 4597.15 0.05%
Nifty 500 9721.35 9694.05 0.28%
Bank Nifty 30609.60 30219.85 1.29%
Institutional Flows (Cash Segment)
Description (Rs in Cr) BUY SELL NET
FII Activity 5903.74 4892.25 1011.49
DII Activity 3561.07 4678.32 -1117.25
FIIs Derivative Statistics
BUY SELL
No. of Contracts
Amount (INR. Cr.)
No. of Contracts
Amount (INR. Cr.)
Index Futures 45746 3441.24 43563 3145.49
Index Options 4288876 293266.27 4279156 292642.99
Stock Futures 236645 13614.42 249963 14561.63
Stock Options 93139 5748.60 93802 5768.42 Top OI Gainers
Scrip OI: No of Contracts LTP OI: Value
% Change in OI
VOLTAS 2645 676.2 2645000 50.71
TITAN 17294 1161.15 12970500 30.85
LUPIN 10789 774 7552300 20.44
COLPAL 3135 1554.8 2194500 20.02
CHOLAFIN 1552 302.9 3880000 16.69 Top OI Losers
Scrip OI: No of Contracts LTP OI: Value
% Change in OI
TECHM 14000 773 16800000 -16.23
PFC 4785 110.8 29667000 -7.2
CIPLA 14476 481.5 14476000 -6.37
BANKINDIA 3901 69.6 23406000 -6.07
BHARTIARTL 16852 373.15 31193052 -5.85 Volume Spurt: Cash Segment
Scrip LTP Quantity
Change (%) Price Change
(%)
Reliance Power Limited 4.4 58 10
PC JEWELLER LIMITED 34.95 18.53 8.04
VARUN BEVERAGES 755.1 26.58 7.58
TITAN COMPANY 1156.1 31.83 -9.95
GE T&D INDIA LIMITED 170.7 49.35 -11.78 **Change from average Quantity, rest other % are over previous day’s close unless otherwise mentioned
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Put Call Ratios
OI Wise Volume wise
BOSCHLTD 2.25 BEARISH BOSCHLTD 1.65 BEARISH
PVR 1.29 BEARISH MINDTREE 1.31 BEARISH
HINDUNILVR 1.24 BEARISH TATAELXSI 1.26 BEARISH
PFC 1.20 BEARISH HINDUNILVR 1.14 BEARISH
BAJFINANCE 1.19 BEARISH PFC 1.01 BEARISH
w
0
1,000,000
2,000,000
3,000,000
11300 11500 11700 11900 12100Op
en
Inte
rest
Strike Price
Open Interest-Call/Put
CE-OI PE-OI
-1000000
0
1000000
11
30
0
11
40
0
11
50
0
11
60
0
11
70
0
11
80
0
11
90
0
12
00
0
12
10
0
Ch
ange
in IO
Strike Price
Change in Open Interest - Call/Put
Change in OI-CE Change in OI-PE
Nifty OI – Call Put Analysis
F&O Wrap-up
• Nifty November series future closed at 12005.08 Premium of 42 Point compared to Nifty spot which closed at 11966.05
• Nifty OI wise Put-Call ratio stood at 1.21 and volume wise put-call ratio stood at 0.96
• India VIX has decreased by 1.30 percent and closed at 15.7100
• The open interest in Nifty Futures increased from 15,11,137 to 15,74,084
Quarterly Results Today (Q2)
Aditya Birla Capital Ltd GABRIEL INDIA LTD. POWER GRID CORPORATION
Adani Transmission Ltd GAMMON INDIA LTD. Puravankara Ltd
AJMERA REALTY & INFRA INDIA GLAXOSMITHKLINE CONSUMER HEALTH SOM DISTILLERIES & BREWERIES LTD.
Amber Enterprises India Ltd GUJARAT ALKALIES & CHEMICALS LTD. SOLAR INDUSTRIES INDIA LTD.
ANDHRA BANK HINDUSTAN PETROLEUM CORPORATION SPECIALITY RESTAURANTS LTD.
ASHIANA AGRO INDUSTRIES LTD. INDRAPRASTHA GAS LTD. SUN PHARMACEUTICAL INDUSTRIES
BASANT AGRO TECH (INDIA) LTD. IPCA LABORATORIES LTD. TASTY BITE EATABLES LTD.
BPCL KESORAM INDUSTRIES LTD. THOMAS COOK (INDIA) LTD.
CANTABIL RETAIL INDIA LTD. K.M.SUGAR MILLS LTD. TIMEX GROUP INDIA LTD.
CITY UNION BANK LTD. Magadh Sugar & Energy Ltd TRENT LTD.
CYBER MEDIA (INDIA) LTD. Max India Ltd TTK HEALTHCARE LTD.
LT FOODS LTD. M.M.FORGINGS LTD. UNITED BREWERIES LTD.
DLF LTD. NRB INDUSTRIAL BEARINGS LTD. UCO BANK
DWARIKESH SUGAR INDUSTRIES PANAMA PETROCHEM LTD. UPL Limited
EMAMI PAPER MILLS LTD. PANASONIC CARBON INDIA CO.LTD. V.I.P.INDUSTRIES LTD.
ENGINEERS INDIA LTD. Procter & Gamble Health Ltd WHIRLPOOL OF INDIA LTD.
Eris Lifesciences Ltd POLYCHEM LTD. WOCKHARDT LTD.
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