Daily Newsletter
NSE Intra-day chart (18 November 2019)
Top Gainers
Company NameClose% Change
Top Losers
Company NameClose% Change
World Indices
IndicesLast Trade% Change
Indices
IndicesLast Trade% Change
FII Activity(Rs. Cr)
DateMarketGross PurchaseGross SalesNet Change
Equity
Debt
Equity
Debt
Equity
Debt
DII Investments(Rs. Cr)
DateBuy ValueSale ValueNet Value
 
Market Commentary 19 November 2019
Markets to open marginally in red on Tuesday

 

Volatility pulled Indian equity markets lower on Monday, with Sensex & Nifty ending in red terrain. The start of the day was positive, aided with Finance Commission Chairman N K Singh's statement that the current economic slowdown is episodic & expressed hope that sluggishness will not continue for long. However, key indices soon turned volatile, after economic think-tank National Council of Applied Economic Research (NCAER) said that India's economic growth is likely to decline to 4.9% in the second quarter of this fiscal.  Besides, the think-tank pegged Gross Domestic Product growth at 4.9% as for the full fiscal 2019-20 against 6.8% in 2018-19. Key benchmarks remained below their respective neutral lines for the most part of the trading day, as India's merchandise exports contracted by 1.11% in October 2019 as compared to same period of last year, mainly on account of a significant dip in shipments of petroleum, carpet, leather products, rice and tea. Trade deficit, gap between imports and exports, narrowed to $11.01 billion in October from $18.0 billion a year ago. Market participants paid no heed towards Confederation of Indian Industry (CII), Director-General Chandrajit Banerjee's statement that Indian Public Sector Enterprises can become globally competitive. Finally, the BSE Sensex fell 72.50 points or 0.18% to 40,284.19, while the CNX Nifty was down by 10.95 points or 0.09% to 11,884.50.

 

The US markets eked out fresh all-time highs on Monday, notching marginal gains as progress toward a so-called phase-one US-China trade agreement remained elusive. The Trump administration issued a 90-day extension of a license allowing US companies to continue doing business with Chinese telecom giant Huawei Technologies Company. Huawei was added to a federal list of restricted entities earlier the year, which are suspected of working against US national security interests. Its status has been seen as a key issue in trade negotiations. However, upside remained capped on private report that Chinese officials have grown pessimistic about the chances for a trade deal. Report added strategy now to talk but wait due to impeachment, US election. Also prioritize China economic support. On the economic data front, after reporting an unexpected improvement in US homebuilder confidence in the previous month, the National Association of Home Builders released a report showing confidence edged slightly lower in the month of November. The report said the NAHB/Wells Fargo Housing Market Index slipped to 70 in November after climbing to 71 in October. Street had expected the index to come in unchanged. The modest decrease came after the housing market index rose for four straight months to reach its highest level since hitting a matching reading in February of 2018.

 

Crude oil futures ended lower on Monday on account of excess supply in the market. Energy Information Administration (EIA) said in a monthly report that crude-oil production from seven major US shale plays is forecast to climb by 49,000 barrels a day in December to 9.133 million barrels a day. Oil output from the Permian Basin, which covers parts of western Texas and southeastern New Mexico, is expected to see the biggest increase, up 57,000 barrels a day in December from November. Besides, cautiousness also prevailed in the oil markets amid uncertainty over a potential trade deal between the US and China. Uncertainty about a deal resurfaced after a report suggested Chinese officials have grown pessimistic about the chances for a trade deal due to US President Donald Trump's reluctance to roll back tariffs. Benchmark crude oil futures for December dropped 67 cents or 1.2 percent to settle at $57.05 a barrel on the New York Mercantile Exchange. January Brent lost 86 cents or 1.4 percent to settle at $62.44 a barrel on London's Intercontinental Exchange.

 

Indian rupee pared all of its gains and ended marginally weaker against dollar on Monday, due to fresh demand for the American currency from banks and importers. Investors were worried with Economic think-tank NCAER's report that the country's GDP growth is likely to decline to 4.9 per cent in the second quarter of this fiscal due to sustained slowdown in virtually all the sectors. Some anxiety also came as India's merchandise exports contracted by 1.11% in October 2019 as compared to same period of last year, mainly on account of a significant dip in shipments of petroleum, carpet, leather products, rice and tea. Trade deficit, gap between imports and exports, narrowed to $11.01 billion in October from $18.0 billion a year ago. Besides, lackluster trade in local equity markets weighed on the rupee. On the global front, euro edged higher against the dollar on Monday, on expectations that Washington and Beijing can soon sign off on a deal to end a trade war that has been a drag on global economic growth. Finally, the rupee ended at 71.84, 6 paise weaker from its previous close of 71.78 on Friday.

 

The FIIs as per Monday's data were net sellers in both equity and debt segments. In equity segment, the gross buying was of Rs 5117.71 crore against gross selling of Rs 6284.58 crore, while in the debt segment, the gross purchase was of Rs 477.76 crore with gross sales of Rs 1047.85 crore. Besides in the hybrid segment, the gross buying was of Rs 36.11 crore against gross selling of Rs 33.88 crore.

 

The US markets ended higher with marginal gains on Monday as investors waited for concrete progress on US-China trade relations after mixed headlines. Asian markets are trading mixed on Tuesday as another day awaiting clearer news on the progress of US-China trade negotiations weighed on jaded investors' sentiment. Indian markets ended rang bound trade in red on Monday, tracking losses in HDFC Bank, RIL and TCS amid rising concerns over economic slowdown. Today, the markets are likely to make flat-to-negative start amid mixed cues from Asian peers. There will be some cautiousness with a private report indicating that India's real Gross Domestic Product (GDP) growth is likely to average at 5 per cent in calendar year 2019, as against 7.4 per cent last year, before picking up to 6.3 per cent in 2020 and 6.8 per cent the next year. Also, there will be some concern with the another report highlighting that India has slipped 6 places to 59 rank on a global annual list of 63 countries, due to low quality of life and expenditure on education. Though, some respite may come later in the day with Union Minister Anurag Thakur's statement that India is not facing 5 per cent economic slowdown and continues to be the fastest growing economy in the world. Thakur also said that a number of steps are being taken by the government to strengthen the economy that includes merger of banks and tax concessions to industries. Meanwhile, leading bourse NSE said it has introduced the facilitation of subscription in State Development Loans (SDLs) through its e-Gsec platform that will enable retail participation in securities issued by state governments. There will be some buzz in the telecom stocks with report that the telecom regulator expects to finalize its views on the contentious call connect charges issue by the end of this month. Aviation stocks will be in focus with Directorate General of Civil Aviation's (DGCA) report that indicating some recovery in the aviation sector due to the tourist season, the domestic air passenger traffic this October increased by 3.98 per cent compared to the same month last year. There will be some reaction in NBFC stocks with report that the Reserve Bank can now seek resolution of non-banking financial companies having assets worth of at least Rs 500 crore under the insolvency law, a move that is likely to help in addressing woes in the NBFC sector. Also, metal stocks will be in focus with repro that India's finished steel exports dipped 33.9 per cent to 6.36 million tonne (MT) in 2018-19, amid the government's efforts to keep the country as the net exporter of the metal.

 

Support and Resistance: NSE (Nifty) and BSE (Sensex)

 

Index

Previous close

Support

Resistance

NSE Nifty

11,884.50

11,852.67

11,931.27

BSE Sensex

40,284.19

40,156.64

40,477.07

 

Nifty Top volumes

 

Stock

Volume

Previous close (Rs)

Support  (Rs)

Resistance (Rs)

(in Lacs)

Yes Bank

1,781.51

65.85

64.42

68.27

Bharti Airtel

426.61

409.20

394.02

422.47

SBI

390.09

325.10

322.62

328.72

ICICI Bank

229.10

498.35

495.18

502.98

Tata Motors

190.53

170.10

168.87

171.72

 

  • IOC has started supply of special winter-grade diesel to Ladakh, solving technical issues faced in fuel supply to high-altitude regions during extreme winter conditions. 
  • Bharti Airtel has launched Enterprise Hub -- a one-stop digital platform for its enterprise and SMB customers to offer them a set of self-care services. 
  • Tata Motors has inked a pact with Lithium Urban Technologies to address mobility solutions across passenger, mass transit and freight segments. 
  • Bajaj Finserv is offering attractive discounts, coupon deals and cashback offers to its customers purchasing Vivo smartphones by availing hassle-free finance from the company.
News Analysis