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DAILY NEWS LETTER

Date: 01.02.2019

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Outlook for the Day

Sideways

Short Term Trend

Negative

Nifty Short Term Trend

Nifty50 managed to close above the crucial 10,800 mark ahead of the interim budget. It was strong recovery from lower zones hit in last two sessions. In the process, the index formed a Bullish Hammer candle on the weekly chart. Nifty is now trading above 20-, 50- and 100-day SMAs, which support bullish sentiments. The US Fed held interest rates and signalled that its three-year drive to tighten monetary policy may come to an end amid cloudy outlook for the US economy due to global headwinds and impasse over trade and government budget negotiations. Taking cue from these comments, Indian indices rallied post being in the red for 4 sessions, with private banks and technology leading the way. Key things to watch out for would be the interim Budget to be presented tomorrow and progress in US-China trade talks. For the coming session, we would advise staying light as we may see higher volatility on account of union budget. This hope rally must have come out of some positive expectation. If any announcement comes in-line with expectations, we may see this rally getting extended towards 10900 – 10940 or beyond also. On the flipside, 10740 followed by 10700 are likely to be seen as immediate supports.

Bank Nifty managed to surpass its 50-day EMA and started forming higher highs and higher lows on the daily scale. Now it has to hold above 27,150 to extend the gains towards 27,500 and then 27,750 levels, while on the downside, support exists at 27,000 and then 26,850 levels.

Levels to watch

R1 R2 S1 S2

NIFTY 10900 10940 10740 10700

BANK NIFTY 27500 27750 27000 26850

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Financial & Economic Wrap Up

Telecom operator Bharti Airtel lost 5.7 crore mobile customers in December 2018, according to a company statement released on Thursday. Its mobile customer base in India at the end of December 2018 stood at 28.42 crore. According to subscriber base report of telecom regulator Trai, Airtel had 34.1 crore mobile customers at the end of November, implying the company lost around 5.7 crore customers in December.

The Reserve Bank of India (RBI) on Thursday removed three state-owned banks from its weak-bank watch list, a move that will lift lending restrictions on them. "It has been decided that Bank of India (BoI) and Bank of Maharastra (BoM) which meet the regulatory norms including Capital Conservation Buffer (CCB) and have Net NPAs (non-performing assets) of less than 6 percent as per third quarter results, are taken out of the PCA (prompt corrective action) framework subject to certain conditions and continuous monitoring".

The Gujarat government on Thursday signed an agreement with the US-based company Biochem to establish a mega bio-refinery in the petroleum, chemicals and petrochemicals investment region in Dahej in Bharuch at an investment of around Rs 3,000 crore.

State-run Punjab National Bank will be diluting a minor stake in its life insurance joint venture PNB Metlife and own over 26 percent of the venture, a top official said on Thursday. There was no word from the management on a media report of its partner Metlife increasing its stake in the venture, which has filed to come out with an IPO this year.

Pharma major Dr Reddy’s Laboratories on Thursday said it has appointed Axis Bank's former MD and CEO Shikha Sharma as company's independent additional director for five years. "Shikha Sanjaya Sharma has been appointed as an additional director, categorised as independent, on the Board of Dr Reddy's Laboratories Ltd for a period of five years, effective January 31, 2019".

Tata Motors on Thursday said it has signed an agreement to supply Tigor electric vehicles (EVs) to technology major Capgemini. According to the partnership, Capgemini will deploy these EVs on its campuses in Bengaluru, Chennai and Hyderabad.

Indices Performance

Index LTP Previous Close % Change S&P BSE Sensex 36257 35591 1.87 Nifty 50 10831 10652 1.68 Nifty Midcap 50 4689 4661 0.59 Nifty 500 9004 8885 1.34 Bank Nifty 27295 26826 1.75

Institutional Flows (Cash Segment)

Description (Rs in Cr) BUY SELL NET FII Activity 10962.01 7955.60 3006.41 DII Activity 5751.35 7385.67 -1634.32

FII Derivative Statistics

BUY SELL No. of

Contracts Amount (INR. Cr.)

No. of Contracts

Amount (INR. Cr.)

Index Futures 126937 9544.41 93099 6779.15 Index Options 3119190 185160.17 3067882 181722.70 Stock Futures 381931 22721.16 366125 21560.25 Stock Options 117687 7899.27 105437 7116.57 Top OI Gainers

Scrip Fut.

Price % Change in

Price OI % Change

in OI MFSL 396.3 -5.40 2502 17.85 NATIONALUM 59.85 -0.25 4784 14.59 AXISBANK 722.65 4.82 59079 14.55 DABUR 442.75 2.58 14483 14.17 NMDC 96.8 0.47 7889 11.68 Top 5 OI Losers

Scrip Fut. Price

% Change in Price OI

% Change in OI

PTC 78.15 3.92 309 -34.95 JPASSOCIAT 6.5 0.78 2715 -21.51 JUBLFOOD 1258.5 4.86 12328 -20.34 CHOLAFIN 1171.75 3.63 2140 -16.08 IFCI 13.65 0.37 2155 -15.82 Volume Spurt: Cash Segment

Scrip LTP Quantity

Change (%)** Price

Change (%) INTL. PAPER 477 610.62 11.63 Hexaware 342.6 322.72 6.2 JK Paper Limited 135.25 136.91 4.84 AJANTA PHARMA 1020.65 252.72 -6.26 DHFL 135.9 245.5 -15.83 ** 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

NHPC 4.23 BEARISH GMRINFRA 3.38 BEARISH

AXISBANK 2.07 BEARISH RCOM 2.84 BEARISH

WIPRO 2.06 BEARISH RELINFRA 2.30 BEARISH

TCS 1.82 BEARISH MRPL 2.29 BEARISH

BHARATFORG 1.53 BEARISH SUZLON 2.27 BEARISH

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Nifty OI – Call Put Analysis

F&O Wrap-up • Nifty January series future closed at 10832.55 PREMIUM of 1.6 Point to nifty spot which closed at 10830.95

• The Nifty OI wise Put-Call ratio stood at 1.41 and volume wise put-call ratio stood at 1.01

• India VIX has decreased by 3.05 percent and closed at 17.3050

• The open interest in Nifty Futures increased from 19,32,521 to 20,43,580

Quarterly Results Today (Q3) Akzo Nobel India Limited GIC HOUSING FINANCE LTD. PARAMOUNT COMMUNICATIONS ARTSON ENGINEERING LTD. GTL LTD. Parmeshwari Silk Mills Ltd Astron Paper & Board Mill Ltd H.G. Infra Engineering Ltd QUINTEGRA SOLUTIONS LTD. BERGER PAINTS INDIA LTD. HIKAL LTD. RAJESH EXPORTS LTD. BPL LTD. INSILCO LTD. RUBFILA INTERNATIONAL LTD. DEEPAK NITRITE LTD. INTERNATIONAL CONVEYORS LTD. STATE BANK OF INDIA DHANLAXMI FABRICS LTD. JAGRAN PRAKASHAN LTD. Sheela Foam Ltd DREDGING CORPORATION OF INDIA JUBILANT LIFE SCIENCES LIMITED SHANTHI GEARS LTD. DR.REDDY'S LABORATORIES LTD. KALPATARU POWER TRANSMISSION SUNDRAM FASTENERS LTD. E.I.D.-PARRY (INDIA) LTD. KANPUR PLASTIPACK LTD. SW Investments Ltd Equitas Holdings Ltd KAPPAC PHARMA LTD. Swaraj Automotives Ltd

EXCEL INDUSTRIES LTD. LAKSHMI ELECTRICAL CONTROL SYSTEMS The Investment Trust Of India Ltd

FCS SOFTWARE SOLUTIONS LTD. NATIONAL FERTILIZERS LTD. THOMAS COOK (INDIA) LTD. GALADA POWER & TELECOMMUNICATION LTD. NOCIL LTD. Titan Company Limited

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