www.ganeshstock.com 1 | Page DAILY NEWS LETTER Date: 09.03.2020 Nifty Short Term Trend The Nifty50 has broken its consolidation range and breached the crucial psychological 11,000-mark on March 6 amid Yes Bank uncertainty and worries over the spread of coronavirus. For the week, the index lost 1.9 percent and formed large bearish candle on the weekly scale. As Friday’s gap appears to be the third one from the highs of 12,152 registered on February 20, it can be categorised as an exhaustion gap which yet times signals a reversal of the prevalent trend. Hence, in the next one or two trading sessions, Nifty needs to manage a sustainable close above 11,000 levels to prevent further damage whereas a close above 11,132 can be considered as an initial sign of strength. For today’s trading session Nifty needs to sustain above 11,000 to gain some more strength until 11,025-11,075 while immediate support can be expected around 10,920-10,870. Bank Nifty shed almost 6 percent intraday post the overnight development in the banking system. The index has breached all near-term support levels as the situation is quite grim and closed 3.52 percent lower at 27,801.50, but it formed small- bodied bullish candles as closing was higher than opening levels. In the week, the index fell 4.6 percent and formed a large bearish candle on the weekly scale. Bank Nifty needs to close above 28,350 for a pullback trade to materialize till then risk continues to be on the downside. The index continues to remain highly oversold in the near term, while the near term resistance is seen at 28,000-28,350 levels while immediate support can be seen near 27,500-27,250. Levels to watch R1 R2 S1 S2 Outlook for the Day Short term Outlook NIFTY 11025 11075 10920 10870 Negative Negative BANK NIFTY 28000 28350 27500 27250 Negative Negative USD/INR 74.35 74.62 73.80 73.58 Negative Negative
Transcript
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DAILY NEWS LETTER
Date: 09.03.2020
Nifty Short Term Trend
The Nifty50 has broken its consolidation range and breached the crucial psychological 11,000-mark on March 6 amid Yes Bank uncertainty and worries over the spread of coronavirus. For the week, the index lost 1.9 percent and formed large bearish candle on the weekly scale. As Friday’s gap appears to be the third one from the highs of 12,152 registered on February 20, it can be categorised as an exhaustion gap which yet times signals a reversal of the prevalent trend. Hence, in the next one or two trading sessions, Nifty needs to manage a sustainable close above 11,000 levels to prevent further damage whereas a close above 11,132 can be considered as an initial sign of strength. For today’s trading session Nifty needs to sustain above 11,000 to gain some more strength until 11,025-11,075 while immediate support can be expected around 10,920-10,870.
Bank Nifty shed almost 6 percent intraday post the overnight development in the banking system. The index has breached all near-term support levels as the situation is quite grim and closed 3.52 percent lower at 27,801.50, but it formed small-bodied bullish candles as closing was higher than opening levels. In the week, the index fell 4.6 percent and formed a large bearish candle on the weekly scale. Bank Nifty needs to close above 28,350 for a pullback trade to materialize till then risk continues to be on the downside. The index continues to remain highly oversold in the near term, while the near term resistance is seen at 28,000-28,350 levels while immediate support can be seen near 27,500-27,250.
Levels to watch R1 R2 S1 S2 Outlook for the Day Short term Outlook
NIFTY 11025 11075 10920 10870 Negative Negative
BANK NIFTY 28000 28350 27500 27250 Negative Negative
USD/INR 74.35 74.62 73.80 73.58 Negative Negative
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Financial & Economic Wrap Up
The Reserve Bank of India (RBI) is preparing to offer a special liquidity window for Yes Bank as urgent financial support to the troubled private sector lender and soothe the frayed nerves of depositors, three government sources with direct knowledge of the matter told Moneycontrol. "Considering the peculiar circumstances surrounding this case, the RBI is likely to extend a short-term loan/line of credit to Yes Bank of around Rs 8,000-Rs 10,000 crore to reduce panic among depositors and ensure sufficient funds for permitted withdrawals," said one source.
Three mutual fund houses UTI MF, Nippon India MF and PGIM India MF on Friday decided to side-pocket their exposures to Yes Bank bonds following the rating downgrade of troubled private lender's debt instruments. This is subject to approval from the board of trustees of respective fund houses. The move will prevent the distressed assets from damaging the returns generated from more liquid and better-performing assets.
The Yes Bank debacle will forever be etched in the memory of D-Street. The scrip fell 85 percent intraday and closed 57 percent lower a day after the Reserve Bank of India (RBI) took over the private lender. In a single session, investors of Yes Bank lost Rs 5,000 crore. However, experts see a silver lining is SBI's assurance.
Realty major DLF said a panel constituted by its board has approved a proposal to raise up to Rs 1,000 crore through issue of non-convertible debentures. In a regulatory filing, DLF said the finance committee constituted by the board of directors has approved the issuance of listed, secured, redeemable, and non-convertible debentures (NCDs), with an aggregate principal amount up to Rs 1,000 crore, on a private placement basis. The NCDs will be issued in one or more tranches to certain eligible investors permitted to invest in the NCDs under applicable laws.
State-owned Steel Authority of India Ltd (SAIL) is in talks with the Indian Railways for an order to supply about 15.5 lakh tonnes of rail in the next financial year, a company official said. SAIL, under the steel ministry, is the country's largest steel-making company and as per an agreement, it supplies rails to Indian Railways.
Change (%) FLFL 332.1 35.6 11.8 BLISSGVS 122.4 31.89 9.14 DIXON TECHNOLOGIES 4430.6 33.04 8.03 RBL BANK LIMITED 258.9 25.16 -14.1 YES BANK LIMITED 16.15 18.99 -56.11 **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
CUMMINSIND 1.62 BEARISH RAMCOCEM 8.80 BEARISH
OIL 1.56 BEARISH SRF 1.85 BEARISH
M&MFIN 1.34 BEARISH INDIGO 1.66 BEARISH
JUSTDIAL 1.26 BEARISH PFC 1.46 BEARISH
SIEMENS 1.23 BEARISH ADANIENT 1.41 BEARISH
w
0
1,000,000
2,000,000
10800 11000 11200 11400 11600 11800Ope
n In
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st
Strike Price
Open Interest-Call/Put
CE-OI PE-OI
-500,0000
500,0001,000,0001,500,000
1080
010
900
1100
011
100
1120
011
300
1140
011
500
1160
011
700
1180
0Chan
ge in
IO
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 March series future closed at 10927.50 Discount 61.95 Point compared to Nifty spot which closed at 10898.45
• The Nifty OI wise Put-Call ratio stood at 1.26 and volume wise put-call ratio stood at 0.85
• India VIX has increased by 11.75 percent and closed at 25.9675
• The open interest in Nifty Futures increased from 15,01,840 to 17,36,899
Quarterly Results Today
AIA ENGINEERING LTD. MODISON METALS LTD.
AMARA RAJA BATTERIES LTD. NATIONAL FERTILIZERS LTD.
BALAJI AMINES LTD. Oriental Aromatics Ltd
BRIGHT BROTHERS LTD. PNC Infratech Ltd
DELTA CORP LTD. Sasken Technologies Ltd
EXCEL INDUSTRIES LTD. SUN TV NETWORK LTD.
HATSUN AGRO PRODUCT LTD. WELSPUN INDIA LTD.
KEI INDUSTRIES LTD. WEST COAST PAPER MILLS LTD.
LKP Finance Limited
M.M.FORGINGS LTD.
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