DAILY NEWS LETTER Date: 06 .08.2019 Nifty Short Term Trend The Nifty50 succumbed to heavy selling pressure and closed below 10,900 level on August 5, dragged down by Chinese yuan’s steep depreciation against US dollar and home minister Amit Shah’s announcement of doing away with Article 370 that accords special status to Jammu and Kashmir. A steep fall of 110 paise in the rupee to 70.70 against the US dollar also dented sentiment. The index closed 135 points down and formed a hammer pattern on daily charts, where buying interest was seen at lower levels but supply pressure is intact at higher zones. After opening sharply lower at 10,895.80, which was also an intraday high, the Nifty50 extended losses and hit a day's low of 10,782.60. The index showed some recovery of 80 points in afternoon from the day's low and closed 134.80 points lower at 10,862.60. The market appears to have succumbed to external pressures emanating from both local as well as global factors. For today, Nifty has to hold above 10850 to gain further momentum till 10,910-10,965 while on the downside immediate supports can be seen near 10,800 and 10,750. The Bank Nifty failed to hold 28,000-level and drifted sharply towards 27,400 zone in the opening hours. It remained under pressure but marginal buying interest was seen at lower levels. The Bank Nifty continued its formation of lower highs-lower lows on the daily scale from past five trading sessions. Now till Bank Nifty holds below 28,000 level, it could extend its weakness towards 27,250 then 27,000 zones, while on the upside hurdle is seen at 27,900 then 28,250 levels. Levels to watch R1 R2 S1 S2 Outlook for the Day Short term Outlook NIFTY 10910 10965 10800 10750 Negative Negative BANK NIFTY 27900 28250 27250 27000 Negative Negative USD/INR 71.15 71.38 70.72 70.50 Negative Negative www.ganeshstock.com 1 | Page Capital Market – Daily Newsletter Financial & Economic Wrap Up Indices Performance Index Former Myntra Chief Executive Officer Ananth LTP Previous Close % Change Narayanan is joining health startup Medlife as its S&P BSE Sensex 36699.84 37118.22 -1.13 co-founder and CEO, the company said on August 5. Nifty 50 10862.60 10997.35 -1.23 Narayanan will continue to strengthen the team, Nifty Midcap 50 4227.05 4294.30 -1.57 lead mergers and acquisitions, and help formulate a Nifty 500 8831.95 8943.95 -1.25 strategy around new areas of growth, it stated. He Bank Nifty 27648.05 28204.95 -1.97 will also be joining the Medlife's board of directors. Institutional Flows (Cash Segment) The government may impose countervailing duty on Description (Rs in Cr) BUY SELL NET certain kind of steel pipes and tubes from China and FII Activity 4778.51 6795.24 -2016.73 Vietnam for five years, a move to guard domestic DII Activity players from cheap imports. This recommendation 4950.94 3079.67 1871.27 to impose the duty on 'Welded Stainless Steel Pipes FII Derivative Statistics and Tubes' was made by the commerce ministry's BUY SELL investigation arm DGTR after concluding a probe in No. of Amount No. of Amount this regard. The Directorate General of Trade Contracts (INR. Cr.) Contracts (INR. Cr.) Remedies (DGTR) conducted the probe following a Index Futures 70661 4832.33 82635 5987.88 complaint from Stainless Steel Pipe And Tubes Index Options 2110841 141895.82 2103382 141288.30 Manufacturer Association; South India Stainless Stock Futures 253576 14167.66 235708 12945.70 Steel Pipe And Tubes Manufacturer Association; Stock Options 99367 5746.03 100486 5837.85 and Haryana Stainless Steel Pipe And Tube Manufacturer Association. Top OI Gainers Drug firm Natco Pharma on Monday said it has OI: No of % Change Scrip Contracts LTP OI: Value in OI received establishment inspection report (EIR) from MGL 2199 800.45 1319400 15.19 the US health regulator for its Kothur facility in NBCC 4568 38.45 38828000 13.13 Telangana. The receipt of EIR from the United ENGINERSIN 1725 94.1 7935000 9.59 States Food and Drug Administration (USFDA) MOTHERSUMI 10691 98.85 35280300 9.33 indicates the successful closure of inspection of the UJJIVAN 4255 272 6808000 9.16 company's drug formulations facility in Kothur, Natco Pharma said in a BSE filing. Top 5 OI Losers Delhi High Court gave Tata Group company Titan OI: No of % Change Scrip Contracts LTP OI: Value in OI ad-interim relief against e-tailers and restrained BHARATFIN 1200 899.35 600000 -25.33 them from selling, marketing or otherwise dealing CESC 1030 743.9 824000 -9.73 in goods bearing the marks Titan and Fastrack EQUITAS 3320 104.1 13280000 -6.72 of Titan. A Tata press release said the court order INFRATEL 3413 245.65 6826000 -6.57 dated 29th July, 2019 also directs e-commerce NIITTECH 1267 1201.65 950250 -5.73 player Snapdeal to take down within 24 hours of the order, the URLs against which Titan had lodged Volume Spurt: Cash Segment Quantity Price complaints. The court also directed Snapdeal that in Scrip LTP Change (%)** Change (%) case Titan raises complaints of other or further URLs Venky s (India) Limited 1353.4 445.48 13.61 that sell counterfeit goods of Titan, these too shall Monsanto India Limited 2032.8 33.44 5.26 be immediately removed. Titan had filed a civil ZYDUSWELL 1521.2 44.69 5.23 lawsuit in Delhi High Court against certain sellers eClerx Services Limited 514.65 179.89 -11.34 and Snapdeal, alleging that they were selling Jagran Prakashan Limited 66.65 208.51 -14.33 counterfeit/infringing Fastrack watches on **Change from average Quantity, rest other % are over previous day’s Snapdeal. close unless otherwise mentioned www.ganeshstock.com 2 | Page Capital Market – Daily Newsletter Nifty OI – Call Put Analysis w Open Interest-Call/Put Change in Open Interest - Call/Put 3,000,000 2,000,000 2,000,000 1,000,000 1,000,000 0 0 Change in IO Open Interest 10600 10800 11000 11200 11400 -1,000,000 Strike Price 10600 10700 10800 Strike10900 Price11000 11100 11200 11300 11400 CE-OI PE-OI Change in OI-CE Change in OI-PE Put Call Ratios OI Wise Volume wise HINDZINC 3.24 BEARISH IDBI 2.96 BEARISH SIEMENS 1.77 BEARISH HEXAWARE 2.64 BEARISH CENTURYTEX 1.42 BEARISH CUMMINSIND 1.85 BEARISH ARVIND 1.35 BEARISH SRTRANSFIN 1.70 BEARISH TORNTPHARM 1.29 BEARISH DHFL 1.50 BEARISH F&O Wrap-up • Nifty August series future closed at 10,895.30 Premium of 32.70 Point with respect to nifty spot which closed at 10,862.60 • The Nifty OI wise Put-Call ratio stood at 1.04 and volume wise put-call ratio stood at 0.89 • India VIX has increased by 8.92 percent and closed at 16.5425 • The open interest in Nifty Futures increased from 15,31,531 to 16,35,930 Quarterly Results Today (Q1) Aditya Birla Fashion and Retail Ltd Khadim India Ltd SHARP INDIA LTD. ARVIND LTD. KIOCL Ltd NARMADA GELATINES LTD. ASAHI INDIA GLASS LTD. K.M.SUGAR MILLS LTD. Shemaroo Entertainment Ltd ASIAN GRANITO INDIA LTD. KOLTE-PATIL DEVELOPERS LTD. SHRIRAM EPC LTD. BHARAT GEARS LTD. LAKSHMI VILAS BANK LTD. SINGER INDIA LTD. CENTRAL BANK OF INDIA MANALI PETROCHEMICAL LTD. SIMPLEX TRADING & AGENCIES LTD. DECCAN CEMENTS LTD. Max Financial Services Ltd STANPACKS (INDIA) LTD. DHANLAXMI FABRICS LTD. MINDA INDUSTRIES LTD SUNDARAM FINANCE LTD. FORTIS HEALTHCARE LTD. NILKAMAL LTD. The Investment Trust Of India Ltd GUJARAT STATE FERTILIZERS & CH. NLC India Ltd THOMAS COOK (INDIA) LTD. Indiabulls Housing Finance Ltd PIDILITE INDUSTRIES LTD. Titan Company Limited IRB INFRASTRUCTURE DEVELOPERS RAMA PULP & PAPERS LTD. WALCHANDNAGAR INDUSTRIES LTD. JAYSHREE CHEMICALS LTD. REC Ltd JK LAKSHMI CEMENT LTD. SHREE RENUKA SUGARS LTD. JSW Energy Ltd Sheela Foam Ltd www.ganeshstock.com 3 | Page Capital Market – Daily Newsletter Disclosure: We, research team at Ganesh Stockinvest Pvt. Ltd., authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. Ganesh Stockinvest Pvt. Ltd. has no material adverse disciplinary history as on the date of publication of this report. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation (s) or view (s) in this report. Research Analyst or his/her relative or Ganesh Stockinvest Pvt. Ltd. may have any financial interest in the subject company. Also Research Analyst or his relative or Ganesh Stockinvest Pvt. Ltd. or its Associate may have beneficial ownership of 1% or more in the subject company at the end of the month immediately preceding the date of publication of the Research Report. Further Research Analyst or his relative or Ganesh Stockinvest Pvt. Ltd. or its associate does not have any material conflict of interest. Disclaimer: This report has been prepared by Ganesh Stockinvest Pvt. Ltd. and is meant for sole use by the recipient and not for circulation. The information and opinions contained herein have been compiled or arrived at, based upon information obtained in good faith from sources believed to be reliable. Such information has not been independently verified and no guaranty, representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice.