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DAILY NEWS LETTER

Date: 26.08.2019

Nifty Short Term Trend

The Nifty50 recouped after initial hour sell-off and gained

strength in the afternoon session to reclaim 10,800 levels on

August 23, backed by the hope of stimulus measures and

rollback of FPI surcharge from government later in the day. The

index snapped three-day loss and formed bullish candle which

resembles a Piercing kind of pattern on daily charts, but for the

week the index lost 2 percent and formed bearish candle on the

weekly scale. In case if this rally sustains then initial targets are

placed around 11,059 kinds of levels whereas on the downsides

Friday's low of 10,637 shall assume importance as critical

support. Breach of which can drag down the index further

towards 10,524 levels over short term. Though Finance Minister

removed surcharge to FPI on Friday but on the other hand US

and China trade ware deepened so the sentiment for Monday’s

trade should be neutral. Until Nifty holds above 10,800 we

might see a bounce back to 10,860-10,950 while on the lower

side immediate supports can be seen near 10,770-10,700.

Bank Nifty opened gap down but recovered sharply from lower

zones to close near 27,000 levels. The index closed 75.55 points

lower at 26,958.65 and formed a small-bodied candle on the

daily scale while bearish candle on the weekly scale which

suggests that supply is visible at higher levels. Until Bank Nifty

holds below 27,000 levels it could extend its weakness towards

26,750 then 26,500 zones while a hold above the same could

witness a bounce back move towards 27,250 then 27,500

levels.

Levels to watch

R1 R2 S1 S2 Outlook for the Day Short term Outlook

NIFTY 10860 10950 10770 10700 Neutral Negative

BANK NIFTY 27250 27500 26750 26500 Neutral Negative

USD/INR 72.12 72.35 71.72 71.50 Neutral Negative

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Financial & Economic Wrap Up

The stock markets may see a relief rally this week

after the government removed enhanced surcharge

on FPIs and also unveiled various measures to

jumpstart growth, analysts said. Giving in to the

demands of overseas investors, Finance Minister

Nirmala Sitharaman on August 23 announced

rollback of enhanced surcharge on foreign portfolio

investors levied in the Budget. The Budget proposal

to hike surcharge on FPIs had spooked foreign

investors, who withdrew more than $3.4 billion (Rs

24,500 crore) from domestic equities in July and

August. The massive capital outflows also put

pressure on the rupee, which slumped to 72-level

against the US dollar last week.

Overseas investors have pulled out a net amount of

Rs 3,014 crore from the Indian capital markets this

month so far, but the trend may reverse following

the removal of enhanced surcharge on FPIs.

According to depositories data, foreign portfolio

investors (FPI) withdrew a net amount of Rs

12,105.33 crore from equities, but pumped in Rs

9,090.61 crore into the debt segment during August

1-23. This has translated into a total net outflow of

Rs 3,014.72 crore from the capital markets (both

equity and debt).

Air India owes three state-owned oil firms Rs 5,000

crore in unpaid fuel bills with payments being

delayed by almost eight months, forcing retailers to

snap supplies, Indian Oil Corp (IOC) said on Friday.

IOC, Bharat Petroleum Corp Ltd (BPCL) and

Hindustan Petroleum Corp Ltd (HPCL) on August 22

afternoon stopped jet fuel or ATF supplies to Air

India at six airports - Kochi, Pune, Patna, Ranchi,

Vizag and Mohali - over payment defaults.

In order to boost credit support for the purchase of

houses, National Housing Bank (NHB) will offer

additional liquidity support of Rs 20,000 crore to

housing finance companies (HFCs). This will increase

the total liquidity support to Rs 30,000 crore, said

Finance Minister Nirmala Sitharaman on August 23

while announcing a slew of measures to revive the

economy. There will be more credit support for the

purchase of houses, vehicles and consumption

goods.

Indices Performance

Index LTP Previous Close % Change

S&P BSE Sensex 36701.16 36472.93 0.63

Nifty 50 10829.35 10741.35 0.82

Nifty Midcap 50 4205.65 4120.35 2.07

Nifty 500 8790.55 8719.25 0.82

Bank Nifty 26958.65 27034.20 -0.28

Institutional Flows (Cash Segment)

Description (Rs in Cr) BUY SELL NET

FII Activity 4365.18 6102.38 -1737.20

DII Activity 4150.62 2602.13 1548.49

FIIs Derivative Statistics

BUY SELL

No. of Contracts

Amount (INR. Cr.)

No. of Contracts

Amount (INR. Cr.)

Index Futures 87665 6054.54 82718 5626.44

Index Options 3334165 216665.02 3366991 218671.10

Stock Futures 321661 16963.50 311296 16536.67

Stock Options 156641 8684.79 158362 8785.13 Top OI Gainers

Scrip OI: No of Contracts LTP OI: Value

% Change in OI

L&TFH 5825 90.2 26212500 3.1

DLF 13248 152.35 37094400 2.63

FEDERALBNK 5882 81.05 41174000 2.56

HAVELLS 6669 646.85 6669000 2.14

SRF 3503 2818.45 875750 1.8 Top 5 OI Losers

Scrip OI: No of Contracts LTP OI: Value

% Change in OI

JSWSTEEL 16837 221.2 33674000 -27.81

BHARATFIN 1200 899.35 600000 -25.33

GRASIM 11662 720.25 8746500 -24.49

MCX 1611 849.85 1127700 -21.41

NBCC 3420 31.9 29070000 -14.69 Volume Spurt: Cash Segment

Scrip LTP Quantity

Change (%)** Price

Change (%)

STERLITE TECHNOLOGIES 117.65 23.79 12.91

Network18 Media & Invest 20.45 50.5 11.75

Chambal Fertilizers Ltd. 149.1 32.29 9.79

KNR Constructions Limite 225.9 69.8 -6.34

Edelweiss Financial Serv 99.65 33.72 -6.52 **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

OFSS 2.00 BEARISH OIL 5.50 BEARISH

ASIANPAINT 1.49 BEARISH RAMCOCEM 2.89 BEARISH

BERGEPAINT 1.30 BEARISH BSOFT 2.60 BEARISH

HINDUNILVR 1.23 BEARISH JUSTDIAL 1.56 BEARISH

HINDZINC 1.13 BEARISH MARICO 1.55 BEARISH

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2,000,000

4,000,000

6,000,000

10600 10800 11000 11200 11400Op

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Strike Price

Open Interest-Call/Put

CE-OI PE-OI

-500,000

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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 August series future closed at 10,855 Premium of 25.65 Point with respect to nifty spot which closed at 10,829.35

• The Nifty OI wise Put-Call ratio stood at 0.87 and volume wise put-call ratio stood at 0.78

• India VIX has decreased by 3.13 percent and closed at 17.2925

• The open interest in Nifty Futures increased from 15,99,117 to 16,54,249

Quarterly Results Today (Q1)

LADDERUP FINANCE LTD.

Corporate Action

Company Ex-Date Purpose Record Date

EXCEL CROP CARE LTD. 29-Aug-19 Amalgamation 31-Aug-19

GREENPLY INDUSTRIES LTD. 29-Aug-19 Final Dividend - Rs. - 0.4000 -

JINDAL SAW LTD. 29-Aug-19 Dividend - Rs. - 2.0000 -

Kanchi Karpooram Ltd 29-Aug-19 Final Dividend - Rs. - 2.0000 -

Kiran Vyapar Ltd 29-Aug-19 Dividend - Rs. - 2.5000 -

Mahanagar Gas Ltd 29-Aug-19 Final Dividend - Rs. - 10.5000 -

PI Industries Ltd 29-Aug-19 Final Dividend - Rs. - 1.5000 -

RAMKRISHNA FORGINGS LTD. 29-Aug-19 Dividend - Rs. - 1.5000 -

RUPA & COMPANY LTD. 29-Aug-19 Dividend - Rs. - 3.0000 -

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