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DAILY NEWS LETTER

Date: 20.02.2020

Nifty Short Term Trend

The Nifty snapped a four-day losing streak to bounce back on

February 19 amid receding coronavirus cases and ahead of a

Cabinet meeting. Positive global cues helped the index close

above 12,100, forming a bullish candle on the daily chart. The

index ended 138 points, or 1.2%, higher at 12,130.30. This

upswing is not backed by a buy signal on any of the momentum

oscillators on daily charts, which can be a cause for concern as

it is still trading below its 50-day exponential moving average

(12140). Hence, initially, it needs to get past and sustain above

12,178 levels and in such a scenario we can eventually expect

the recent highs of 12,246 levels to be taken off. The traders

can make use of dips to create fresh longs with a stop below

12,030 levels on the closing basis and look for an initial target

of 12,178. In case the Nifty closes below 12,030 levels, then it

shall be considered as a weak sign, which should ideally resume

the downswing.

The Bank Nifty opened with a decent upside gap on the back of

the gap-up opening in Kotak Bank but failed to sustain at higher

levels and corrected in the initial hour of trade. It formed a

small-bodied candle with long lower shadow, which indicates

that dips got bought into. Now, if the Bank Nifty manages to

hold 30,600, then we may expect an up move towards 31,100-

31,350 levels. While strong support is now shifting to 30,600-

30,250 levels.

Levels to watch

R1 R2 S1 S2 Outlook for the Day Short term Outlook

NIFTY 12175 12210 12075 12030 Sideways Positive

BANK NIFTY 31100 31350 30600 30250 Sideways Positive

USD/INR 71.82 72.05 71.41 71.15 Sideways Positive

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Financial & Economic Wrap Up

Food ordering and delivery platform Swiggy on

Wednesday said it has raised $113 million (over Rs 805

crore) in the latest funding round led by existing

investor Prosus NV. Meituan Dianping and Wellington

Management Company also participated in the

funding round. Having grown beyond food delivery,

the company aims to use the funds to further develop

its new lines of business, addressing visible gaps in the

market.

Nasdaq hit an all-time high at the open on Wednesday

on signs of slowing coronavirus infections and

expectations that China would take more measures to

bolster its virus-hit economy. The Dow Jones Industrial

Average rose 80.51 points, or 0.28%, at the open to

29,312.70. The S&P 500 opened higher by 10.10

points, or 0.30%, at 3,380.39.

Reliance Industries Ltd, a key buyer of Venezuelan oil,

said it was assessing the impact of the latest US

sanctions on Rosneft Trading SA (RTSA), the Geneva-

based trading unit of Rosneft that supplies oil to the

private refiner. US President Donald Trump on

Tuesday imposed sanctions on the trading arm of

Russian oil major Rosneft, which has been the largest

intermediary of Venezuelan oil, as Washington

targeted Moscow over its backing of Venezuelan

President Nicolas Maduro's government.

The average asset under management (AUM) of

overnight funds has grown five times over the last

nine months, according to the data available on the

Association of Mutual Funds in India. In the last 10

months, the AUM of overnight funds has increased to

Rs 52,524.98 crore as on January 31, 2020, from Rs

11,566.84 crores as on April 30, 2019. Not only AUM,

but even the number of investor folios under

Overnight Funds has more than doubled to 46,763 as

on January 31, 2020, from 21,363 as on April 30, 2019.

Mutual funds focused on investing in fixed-income

securities saw an inflow of over Rs 94,000 crore in

three months ended December 2019, driven by

infusion in liquid and overnight funds. This comes

following an outflow of Rs 5,061 crore in September

quarter and fund infusion to the tune of Rs 19,691

crore in June quarter, according to a report by

Morningstar.

Indices Performance

Index LTP Previous Close % Change

S&P BSE Sensex 41323.00 40894.38 1.05%

Nifty 50 12125.90 11992.50 1.11%

Nifty Midcap 50 4901.20 4823.25 1.62%

Nifty 500 9970.50 9845.55 1.27%

Bank Nifty 30838.20 30562.50 0.90%

Institutional Flows (Cash Segment)

Description (Rs in Cr) BUY SELL NET

FII Activity 4806.74 4997.40 -190.66

DII Activity 3123.58 2533.46 590.12

FIIs Derivative Statistics

BUY SELL

No. of Contracts

Amount (INR. Cr.)

No. of Contracts

Amount (INR. Cr.)

Index Futures 55516 4519.74 45330 3525.37

Index Options 4471789 313537.63 4453415 311999.13

Stock Futures 229140 15345.37 216301 14577.42

Stock Options 92580 6703.20 91786 6659.94 Top OI Gainers

Scrip OI: No of Contracts LTP OI: Value

% Change in OI

VOLTAS 4160 735.25 4160000 24.33

TORNTPHARM 908 2248.05 454000 17.16

MINDTREE 1218 1011.8 974400 9.83

IDEA 5547 4.25 543606000 7.75

SHREECEM 3426 24501.05 171300 6.4 Top OI Losers

Scrip OI: No of Contracts LTP OI: Value

% Change in OI

COALINDIA 15418 177.9 41628600 -11.28

NMDC 5735 105.1 34410000 -10.5

RAMCOCEM 1513 802.25 1210400 -9.07

WIPRO 5982 248.55 19142400 -8.95

NTPC 23262 112.2 111657600 -7.08 Volume Spurt: Cash Segment

Scrip LTP Quantity

Change (%) Price

Change (%)

VODAFONE IDEA LIMITED 4.2 24.19 40

Aurobindo Pharma Ltd. 601.85 10.63 20.27

HERITAGE FOODS LIMITED 386 21.86 16.06

AVANTIFEED 520.95 36.77 -7.75

Sadbhav Engineering Limi 81.5 50.41 -9.09 **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

TCS 1.43 BEARISH CHOLAFIN 1.27 BEARISH

BAJFINANCE 1.28 BEARISH OIL 0.86 BEARISH

SRTRANSFIN 1.26 BEARISH SRF 0.83 BEARISH

AUROPHARMA 1.23 BEARISH BAJFINANCE 0.80 BEARISH

OIL 1.19 BEARISH JSWSTEEL 0.78 BEARISH

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Nifty OI – Call Put Analysis

F&O Wrap-up

• Nifty February series future closed at 12148 Premium of 22.1 Point compared to Nifty spot which closed at 12125.90

• The Nifty OI wise Put-Call ratio stood at 1.19 and volume wise put-call ratio stood at 0.91

• India VIX has decreased by 2.96 percent and closed at 14.0800

• The open interest in Nifty Futures increased from 16,73,298 to 16,62,32

Quarterly Results Today

A2Z Infra Engineering Limited

AMBUJA CEMENTS LTD.

AMTEK AUTO LTD.

BF INVESTMENT LTD.

Citizen Infoline Ltd

J.B.CHEMICALS & PHARMACEUTICALS LTD.

REDINGTON (INDIA) LTD.

Security and Intelligence Services (India) Ltd

TRIDENT LTD.

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