By Lokesh Sethia, SEBI Registered Research Analyst
Second Consecutive week Indian market closed in Red. Nifty down by 2.93% whereas Bank Nifty down by 7.18%. Sellers controlled Last week as market failed to post gains in single trading session during the week. Weak economic data joined with lower GST collection contributed to the weekly loss in the headline index.
Reserve Bank of India on Friday reduced the short-term lending rate, repo rate by 25 basis points. This was the fifth consecutive rate cut effected by the Shaktikanta Das-led panel, and it was in addition to a cumulative 110 basis points rate cut that RBI has announced so far this year. However, as per expectations MPC lowered GDP growth forecast sharply to 6.1% from 6.9 expected earlier.
India's June-September monsoon rains are likely to start withdrawing from the northwest region from October 10, marking the most delayed retreat of the seasonal rainfall, the Indian Meteorological Department said on Tuesday. Monsoon rains in India were 10% above average in 2019 and the highest in 25 years as seasonal rainfall continued longer than expected, the office said on Monday.
GST collection fell to a 19-month low in September, increasing the risk of fiscal slippage at a time when demand continued to remain weak in Asia's third largest economy. The tax collections for September seen at Rs.919.16 billion, 2.7% down from last year registering first drop since the beginning of the fiscal year 2019-20.
THE WEEK AHEAD
As per option chain and technical Analysis Nifty Index may find supports around 10900-11000 on the downside and may find resistance around 11400---11500 on the upside in the coming week. Now Nifty Index closed below its all-moving average, which suggest further downside also possible. As PCR is 0.97 which suggest nifty is in oversold zone. So any time nifty can reverce its trend. So trader should use strict stop loss for his trade. Nifty Index has closed near 11175. If it remains above 11200 then immediately on the upside it will find resistance at 11350-11400 and if traded below 11150 it can touch 11900-11000.
Broader trading range for the week: 11000 – 11400
Immediate probable trading range for the week: 10900 – 11500.
Maximum Call open interest (OI) of 7.1 lakh contracts was seen at the 30000-strike price followed by 29000-strike price which 6.67 Lakhs. Highest call writing was seen at strike price of 29000, which was 4.48 lakh contracts.
Call option suggest 29000 will be next hurdle.
Maximum Put open interest of 3.39-lakh contract was seen at the 27000- Strike price followed by 28000 level with 2.58 lakh open contracts. Highest put writing was seen at a strike price of 26500, which was 1.5 lakh contracts.
Put option suggest 26000-26500 will act as a support.
- NSE will delist nine companies including Lanco Infratech and Moser-Baer from its platform from October 17.
- Dhampur Sugar Mills successfully launched Country Liquor at its Distillery unit at Dhampur.
- CARE Ratings assigns CARE AA- to the Long-Term Bank facilities and CARE Al+ to the Commercial Paper issue of Orient Cement.
- UCO Bank board approves the proposal for the issue of equity shares on preferential basis to Government of India against capital infusion of `2,130cr.
- Hindalco Industries-Novelis receives approval from European Commission for proposed acquisition of Aleris.
- Sintex Plastics Technology's independent director Sandeep M Singhi resigns w.e.f. October 02, 2019.
- USFDA designated Sun Pharma Advanced Co’s drug as orphan treatment for neonatal seizures.
- Statutory Auditors of Manpasand Beverages, Batliboi & Purohit resign w.e.f. from October 03, 2019.
- Riding high on across mining and cement segments, Thyssenkrupp Industries India is eyeing `4,000cr revenue over the next five years, a senior company official said.
- Tata Motors said it will launch Nexon EV in the fourth quarter of the current fiscal, with price expected to be in the range of `15-17 lakh.
- Biocon and pharmaceutical company Mylan N V announced the launch of their insulin biosimilar Semglee, indicated for the treatment of diabetes, in Australia.
- Mahindra Lifespaces is evaluating half a dozen stressed and redevelopment projects in Mumbai, Pune and Bengaluru, said a senior executive of the company.
- Maruti Suzuki sold 1.22 lakh units in September, falling 24.4% compared to 1.62 lakh units sold in same month in 2018, but the same increased by 15.2% compared to previous month due to low base.
- Hero MotoCorp reported a month-on- month growth of 12.6% in two-wheeler sales in September.
- Eicher Motors' Motorcycles sales in September fell 17% to 59,500 units vs. 71,662 units, but exports jumped 191% at 4,642 units vs. 1,597 units yoy.
- Prestige Estates and DB Group will invest `2,000cr for a project in Delhi
- TVS Motor' sales in September dropped 25.5% to 3,15,912 units vs. 4,23,939 units yoy.
- Tata Motors' domestic sales in September fell 50% to 32,376 units vs. 64,598 units yoy.
- M&M and Ford Motor formed a JV in which it will own 51% stake in Ford India arm for up to `657cr.
- NMDC's Iron ore production in September fell 30.2% to 1.64 mn tonnes vs. 2.35 mn tonnes.
- CRISIL has reaffirmed the credit rating for the debt instruments of Dr Lal Path Labs.
- Mahindra & Mahindra reported a 2% decline in total tractor sales at 37,011 units in September.
- Tata Motors announced its sales in the domestic & international market, for September 2019, which stood at 36,376 vehicles, compared to 69,991 units during September 2018.
- Ashok Leyland said in its release that its domestic business in terms of volumes dropped 57% to 7851 units.
- Lupin said it has received nod from US health regulator to market its anti-epileptic extended Phenytoin Sodium capsules in the American market.
- Reliance Nippon Asset Management Company (RNAM) has directed its trustees to sell the remaining shares pledged by Rana Kapoor, cofounder of Yes Bank, as a collateral with the mutual fund house, sources said.
- Lupin announced the completion of the Good Manufacturing Practices (GMP) inspection of its Goa facility (Unit - I & II), by the Pharmaceutical and Medical Devices Agency (PMDA), Japan.
- CRISIL has reaffirmed its "CRISIL AAA/Stable/CRISIL A1+" ratings on the debt programs and bank facilities of Mahindra & Mahindra.
- Punjab National Bank received `3,000cr from the Government of India.
- Bank of Baroda received a capital infusion of `7,000cr from Government of India.
- PNB Housing Finance's Sunil Mehta resigned as Chairman.
- NBCC signed MoU with the government for `400cr Manipur project.
- Bharat Rasayan has issued commercial paper of `20cr, which have been rated
- CARE A1+
- MBL Infrastructures' Shareholders have approved raising of funds up to `300cr.
- National Peroxide's Kalyan plant temporarily shut down from September 30 for 90 days for carrying out the expansion of production capacity.
- IOCL cuts ATF prices for the fifth consecutive month. Pan-India prices cut by 12.4% vs. last year.
- Tata Power said apex power tribunal APTEL has approved acquisition of 75% stake in stressed 1,980 MW Prayagraj power project by its joint venture's arm Renascent Power Ventures.
- Drug firm Glenmark Pharmaceuticals on Monday said it has received approval from the Ministry of Healthcare, Russia, to market Montlezir film-coated tablets used for the treatment of allergic rhinitis.
- Kalpataru Power Transmission Ltd (KPTL) said it has bagged orders worth `775cr in transmission and distribution segment.
- Maruti Suzuki said it has reduced the price of its performance hatchback Baleno RS by `1 lakh.
- Punjab & Sind Bank has received `787cr from the government in connection with the capital infusion.
- Syndicate Bank to adapt repo rate as external benchmark rate to link new floating rate loans.
- Future Consumer's unit acquired 50% stake in Genoa Rice Mills from the JV partner.
- Voltas' Board approved the proposal for the merger by absorption of Universal Comfort Products Limited, wholly-owned subsidiary of the company, with Voltas.
- Lakshmi Vilas Bank clarified on Religare Finvest’s complaint with Economic Offences Wing that mere registration of FIR against the bank does not mean anything at this stage.
- Indiabulls Housing Finance said that public interest litigation filed by Citizens Whistle Blower Forum came up for hearing before Delhi High Court on Sept. 27 when the court was informed that the arguments made in the petition are a pack of lies motivated by vested interest and has been filed without any research even on publicly available records of the Company.
- Reliance Capital announced the completion of 21.54% stake sale in its mutual fund arm Reliance Nippon Life Asset Management Ltd. to joint venture partner Japan's Nippon Life Insurance for `3,030cr.
- Gujarat Alkalies & Chemical's Board to appoint expert to explore the options relating to capital restructuring in the best interest of increasing the value of investment of shareholders.
- The National Company Law Tribunal approved amalgamation of Allcargo Logistics’ shipping arm with self.
- Union Bank of India said that `6,216cr has been remitted by the Government on Sep 27.
- IDBI Bank's Board has granted in-principle approval to divest 6.23cr equity shares, or 19.18% stake on Asset Reconstruction Company (ARCIL).
- Cox & Kings' Statutory Auditor DTS & Associates have resigned with effect from Sep 26, citing that there has been an absence of any committed timelines for publishing the first quarter’s result for the current financial year 2020.
- NCLT Kolkata approved amalgamation of Gruh Finance with Bandhan Bank. The scheme was already sanctioned by NCLT Ahmedabad.
- Mcnally Bharat Engineering has entered into a collaboration agreement with Turkish company Kaylon.
- Jain Irrigation Systems said that Working Capital Lenders in India have signed an Inter Creditor Agreement on Sept. 27.
- Indian Overseas Bank has received a capital infusion of `3,857cr from the Government of India.
- US Food and Drug Administration Current Good Manufacturing Practice inspection was completed at Cipla’s Goa plant and 12 observations were issued. None of them were none related to data integrity.
- Aster DM Healthcare acquired additional 9.49% stake in its subsidiary Sri Sainatha Multispeciatility. The total stake in subsidiary was increased to 67.5% from 58%.
- The NCLT approved scheme of merger with Swanston Multiplex Cinema with Inox Leisure.
- GMR Infra's Board approves allotting of four Optionally Convertible Debentures to Doosan Power Systems.
- Strides Pharma Science suspended the sale of Ranitidine tablets after it received an information request from the US health regulator to provide test data related to impurities in the drug.
- Gold: Forth consecutive week Gold prices rose as US service sector survey deepened concerns over economic growth and bolstered bets of further rate cuts by the Federal Reserve, with markets awaiting nonfarm payrolls data. The dollar stepped back after a soft US service sector survey stoked worries that pressure from US trade disputes with China and other countries could spill over into the broader US economy and tip it into a recession.
Oil price was heading for another negative closing on the back of increased supply and lower demand expectation. The weak economic data weighed much on crude oil price during the week. US services sector growth slowed to its most anaemic pace in three years last month, and job growth in the largest slice of the American economy was the weakest in half a decade, a survey of purchasing managers showed.
Dollar stepped back on Friday after a soft US service sector survey inflamed worries that pressure from US trade disputes with China and other countries could spill over into the broader US economy and eventually tip it into a recession. Coming on the heels of a similar survey on Tuesday on manufacturing showing activity plunging to a more than 10-year lows, the weak data increased fears of a US recession.
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