DAILY NEWS LETTER Date: 06 .02.2020 Nifty Short Term Trend The Nifty traded higher for a third consecutive session on February 5 to close near week’s high and formed a bullish candle that resembled Three White Soldiers formation on daily charts, a day ahead of RBI monetary policy. The index recouped 3/4th of the losses seen last week on the back of no negative news in the Budget, favourable oil prices and a rally in global markets. Three White Soldiers pattern is formed when a stock or an index witnesses three bullish candles which solidify reversal of a downtrend. The closing of the three candles should be higher than the previous candles. It is a sign of change in investor sentiment and is used by traders to confirm a shift in momentum. This pattern is formed after a period of consolidation or correction. If the Nifty sustains above 12,120, then next target should be placed around 12,180, he said. An initial sign of weakness could emerge on a close below 12,000 until 11,940 for the day. The Bank Nifty index opened with an upside gap and continued its positive momentum throughout the session. The index surpassed its major hurdle of 30,900 levels and approaching its 50-DEMA. Momentum oscillator RSI has given a falling trend line breakout and thus, showing strength in the near term. At the current juncture, if it manages to hold above 30,800 levels, it could extend its gains towards 31,300 then 31,500 levels. On the flip side, the gap area of 30,600-30,500 would now act as strong support and below that next support is placed at 30,300- mark. Levels to watch R1 R2 S1 S2 Outlook for the Day Short term Outlook NIFTY 12120 12180 12000 11940 Sideways Positive BANK NIFTY 31300 31500 30600 30300 Sideways Positive USD/INR 71.05 70.82 71.48 71.70 Sideways Positive www.ganeshstock.com 1 | Page Capital Market – Daily Newsletter Financial & Economic Wrap Up Indices Performance Markets regulator Sebi on Wednesday Index LTP Previous Close % Change restrained Indiabulls Ventures' former non-executive S&P BSE Sensex 41153.79 40789.38 0.89% director and her husband from accessing the securities Nifty 50 12089.15 11979.65 0.91% market for one year for conducting insider trading in Nifty Midcap 50 4967.45 4906.85 1.24% the firm's shares. In addition, they have also been Nifty 500 9951.35 9853.05 1.00% barred from buying, selling or dealing in the securities Bank Nifty 31001.95 30686.70 1.03% of the Indiabulls Ventures Ltd (IVL) for three years. The Institutional Flows (Cash Segment) order follows an investigation conducted in the scrip Description (Rs in Cr) BUY SELL NET of IVL between January 2017 and November 2017. The FII Activity 7151.42 6902.48 248.94 individuals have violated provisions of the Prohibition DII Activity 5142.23 4879.48 262.75 of Insider Trading norms, Sebi noted. India's slipped to 40th position on the International FIIs Derivative Statistics Intellectual Property (IP) Index, which analyses the IP BUY SELL climate in 53 global economies, this year, according to No. of Amount No. of Amount a report of US Chamber of Commerce's Global Contracts (INR. Cr.) Contracts (INR. Cr.) Innovation Policy Center. Last year India was ranked at Index Futures 46103 3516.64 51587 3836.95 36th position out of 50 countries. The US, the UK, Index Options 5904282 416367.39 5896342 415511.13 Stock Futures 250818 17032.45 245542 16550.66 Sweden, France and Germany remained the top five Stock Options 84875 6121.82 83213 6001.73 economies on the intellectual property index in 2019 retaining their spots from the last year. Top OI Gainers Telecom operator Bharti Airtel on Feb. 5 said it will not OI: No of % Change buy 5G spectrum in the upcoming auction if its base Scrip Contracts LTP OI:Value in OI price is fixed at Rs 492 cr. per megahertz as AMBUJACEM 11583 207.7 28957500 56.65 recommended by the regulator TRAI. The company EXIDEIND 5324 186.6 15439600 38.9 has stressed balance sheet reeling under debt of Rs APOLLOTYRE 5085 168.95 15255000 37.95 1.14 lakh crore with liability to clear statutory dues of HEROMOTOCO 15403 2324.05 3080600 34.31 CHOLAFIN 2586 344.05 6465000 28.98 around 35,500 cr., following a Supreme Court order in October 2019 that upheld the government's stand on Top OI Losers calculating levies over telecom licences. OI: No of % Change IT major Wipro on Wednesday moved out of the list of Scrip Contracts LTP OI:Value in OI top-20 most valued companies by market IGL 3100 515.3 8525000 -2.94 capitalisation giving way to Avenue Supermarts, which CESC 1827 719.75 1461600 -2.56 runs the D-Mart supermarkets chain. At close of trade, TORNTPHARM 753 1996 376500 -1.95 the market capitalisation (m-cap) of Avenue BIOCON 5767 295.2 13264100 -1.82 TVSMOTOR 3613 457.1 4877550 -1.47 Supermarts was at Rs 1,41,205.36 crore, which is Rs 2,777.03 crore more than that of Wipro's Rs Volume Spurt: Cash Segment 1,38,428.33 crore valuation on the BSE. Quantity Price Scrip LTP The South Central Railway (SCR) has been sanctioned Change (%) Change (%) Rs 6,846 crore for the year 2020-21 towards CAPLIN POINT LABORAT 324.65 34.26 20 infrastructure works in the union budget. For new SWAN ENERGY LIMITED 136.25 24.56 19.99 lines, the total budgetary grant including capital, Tata Motors Limited 183.75 10.32 10.89 deposit, extra budgetary resources, among others is Rs COCHIN SHIPYARD 345.4 59.5 -7.46 2,856 crore while for doubling, third line and bypass AVANTIFEED 599.55 25.26 -10.42 **Change from average Quantity, rest other % are over previous day’s line works, it is Rs 3,836 crore, SCR said in a press close unless otherwise mentioned release on February 5. 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 4,000,000 4,000,000 2,000,000 2,000,000 0 0 Change in IO Open Interest 11700 11900 12100 12300 12500 -2,000,000 Strike Price 11700 11800 11900 Strike12000 Price12100 12200 12300 12400 12500 CE-OI PE-OI Change in OI-CE Change in OI-PE Put Call Ratios OI Wise Volume wise TATACHEM 1.63 BEARISH TATACHEM 0.91 BEARISH ESCORTS 1.10 BEARISH JUBLFOOD 0.89 BEARISH TCS 1.08 BEARISH ASIANPAINT 0.89 BEARISH BEARISH BEARISH BAJFINANCE 1.05 ZEEL 0.88 SRF 1.01 BEARISH MFSL 0.87 BEARISH F&O Wrap-up • Nifty February series future closed at 12089.5 Premium of 0.35 Point compared to Nifty spot which closed at 12089.15 • The Nifty OI wise Put-Call ratio stood at 1.25 and volume wise put-call ratio stood at 0.96 • India VIX has decreased by 2.76 percent and closed at 13.9825 • The open interest in Nifty Futures increased from 17,04,155 to 17,99,819 Quarterly Results Today AARTI DRUGS LTD. GUJARAT ALKALIES & CHEMICALS LTD. SUN PHARMACEUTICAL INDUSTRIES Aditya Birla Fashion and Retail Ltd HINDUSTAN CONSTRUCTION CO.LTD. SWASTIKA INVESTMART LTD. ADANI POWER LTD. HERO MOTOCORP LTD. TRENT LTD. Advanced Enzyme Technologies Ltd ICRA LTD. TIVOLI CONSTRUCTION LTD. AJMERA REALTY & INFRA INDIA LTD. IDFC LIMITED UNITED BREWERIES LTD. Akzo Nobel India Limited INDRAPRASTHA GAS LTD. UCO BANK AUROBINDO PHARMA LTD. Intellect Design Arena Ltd ULTRAMARINE & PIGMENTS LTD. BATA INDIA LTD. Khadim India Ltd UNITED BANK OF INDIA Birla Cable Ltd LUPIN LTD. UNIVERSAL STARCH-CHEM ALLIED LT FOODS LTD. Metropolis Healthcare Ltd USHA MARTIN LTD. Dalmia Bharat Ltd Minda Corporation Ltd Vikas Proppant & Granite Ltd DYNAMIC MICROSTEPPERS LTD. MINDA INDUSTRIES LTD. VIRGO POLYMERS (INDIA) LTD. EICHER MOTORS LTD. NMDC LTD. WHITE HALL COMMERCIAL CO.LTD. E.I.D.-PARRY (INDIA) LTD. RANE HOLDINGS LTD. EXDON TRADING CO.LTD. Geojit Financial Services Ltd RITES Ltd PRABHU STEEL INDUSTRIES LTD. GUJARAT PIPAVAV PORT LTD. SINTEX INDUSTRIES LTD. GLAXOSMITHKLINE CONSUMER www.ganeshstock.comHEALTHC Star Cement Ltd 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. 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