August F&O expiry: Sensex slips 33 pts; ADAG stocks rally, Rupee at 70.82/$

Among sectoral indices, the Nifty Auto index settled nearly 0.5 per cent lower due to a fall in share prices of Maruti Suzuki and Eicher Motors.

9:19 AM

BSE Sensex opening gainers and losers

9:16 AM

Market at open

 

At 9:15 AM, the S&P BSE Sensex was trading at 38,740, up 17 points while the broader Nifty50 was ruling at 11,691, up 1 point.

9:03 AM

Rupee Alert

Rupee opens at record low of Rs 70.62 against US Dollar

9:03 AM

Markets at Pre-open

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	38,981.96	+259.03	+0.67
S&P BSE SENSEX 50	12,302.65	+62.06	+0.51
S&P BSE SENSEX Next 50	35,450.00	+102.96	+0.29
S&P BSE 100	12,063.00	+53.86	+0.45
S&P BSE Bharat 22 Index	3,732.17	+13.95	+0.38

8:58 AM

MARKET COMMENT Hemang Jani, Head - Advisory, Sharekhan by BNP Paribas

Indian markets closed in the red with the Nifty 50 index falling 46 points to end the day at 11,692. Overall market sentiments continue to look positive however short term concerns remain such as the Indian rupee hitting a new low of 70.57 and rise in oil prices which will keep equity markets volatile in the short term. A weaker rupee will help exporters especially IT and pharma players and is likely to boost margins in the coming quaters.

The consumption as a theme will do very well in the coming quarters, with demand revival to coming  from both rural as well as urban areas . Some of our preferred picks from the consumption sector is Hindustan Unilever and Bata India. Overall we continue to remain positive on the market and feel that  any correction should be used to buy into quality companies

8:56 AM

SMC Global's market outlook for today

Today the markets are likely to open on flat note. All the emerging markets are trading mixed. The coming session is likely to witness a range of 11600 on declines and 11800 on advances.

8:53 AM

Indiabulls Ventures on City Union Bank (CUB)

For the year FY19, the Management has guided for 18 – 20% growth rate on its loan book and 16% ROE. We believe the management will continue to achieve its

guidance as a result we would like to allot a premium valuation.

CUB is currently trading at 2.3x FY20 P/BV and looking at its historical trend; we would like to allot a P/BV of 3x on FY20 basis on an FY20 BV of Rs. 85 to arrive at a target price of Rs. 255.

8:52 AM

Nifty outlook by Tradebulls Securities:

 

Nifty has been crawling throughout the current month but has managed to keeps its float about 11,500 & inched higher towards 11,800 marks. Out of last 15 trading sessions it has witnessed 11 sessions with narrow ranged action with 7 Doji formations throughout the course. It has been respecting its 5 days EMA & has ensured a close above the same throughout and a close below the same could signify exhaustion of the existing run. Index has been trading in close proximity to its upper end of rising channel resistance around 11,780 and a breach higher is unlikely in the coming sessions hence expect moderate upside with bouts of sharp intraday corrections

8:51 AM

Currency trading strategy by Nirmal Bang

On the daily chart, USDINR has made a sizable bullish candle indicating the positive biasness in the pair. 70.3100 will act as an important support in the pair with 71 as a resistance. It is currently trading above all it’s important daily moving averages on the daily chart. An open above 70.50 can lead further bullish momentum toward 71.0000-71.2000 levels

8:50 AM

Nomura on auto sector

Aug-18 automotive volume growth is likely to remain subdued across segments due to a delayed festive season in FY19. West Bengal (~5% of 2W sales) has also seen disruption due to licences being made mandatory for the purchase of 2Ws.

Floods in Kerala could have an impact on sales, especially for PVs and 2Ws. Within our coverage, Maruti Suzuki and Royal Enfield volumes could see a worse than expected impact due to high exposure to Kerala.

8:49 AM

Corporate News 

 

·         Reliance Infrastructure board approved 100% sale of integrated Mumbai power business to Adani Transmission.

 

·         Aditya Birla Capital and Varde Partners create a joint venture to invest in stressed assets in India.

 

·         Laurus Labs received the U.S. Food and Drug Administration’s approval for Metformin Hydrochloride tablets, which are used for treatment of diabetes. 

 

·         Greaves Cotton board has approved acquiring 67% stake in Ampere Vehicles Pvt. for Rs 77 crore, with an option of acquiring another 13% stake in the electric vehicle company for Rs 75.5 crore. 

 

·         ICICI Prudential Life Insurance reduced its stake in Tata Chemicals from 5.02% to 2.97%.

 

·         National Fertilizers signed memorandum of agreement with Ramagundam Fertilizers and Chemicals Limited to market the latter’s product including 12.71 LMT of urea under its brand ‘Kisan’.

 

·         Jain Irrigation said that it has received a contract worth Rs 127 crore from the Rwandan government for developing irrigation and watershed facilities.

 

·         Jet Airways introduced 28 new flights in September to enhance domestic connectivity. 

(Source: IIFL report)

8:48 AM

F&O watch

Indian markets is enjoying a purple patch as sentiment and flows in favor, as investors exhibiting higher appetite for index heavy weight stocks. Nifty saw big leap forward after marching past previous highs above 11.1k mark. On eoe basis (D-1), Nifty/BankNifty gained ~5.1/4.4%. Series highlights include a) Massive sector churning seen within index stocks b) INR to dollar pair at record high levels c) Options writers scrambling to cover shorts options positioning.

Rolls for Nifty were significantly higher than prior month at 53% (1.84cr shares) vs 50.9% (1.47cr shares) higher than 3M average of 49% (1.51cr). Bank Nifty rolls stood at 44% vs 51% (10.6lacs shares) lower than 3m average of 50% (11.9 lacs shares). Market-wide rolls stood at 68% in line with previous months. 

 

For today, expiry likely to be smooth in range of 11700 to 11750 mark. Lower rollover in banking stocks and BankNifty’s relative underperformance to Nifty likely to be key trend decider for traders in near term. Sharp drop in open interest was seen on ICICI bank while SBI saw increase in OI with price action positive suggest long positions being carried forward

 

8:47 AM

MARKET COMMENT Amar Ambani, head of research, IIFL

A bout of selling towards close dragged indices lower. Weakness in banks, energy, infra and IT weighed on the market. The F&O expiry will keep investors cautious at these levels. Expect another choppy day of trade after a quiet start. Hopes of a trade deal with Canada bolstered US markets. Nasdaq and S&P ended at a record high while Dow closed at multi-month highs.

The Reserve Bank of India in its annual report projected India's GDP growth at 7.4 pc for FY19-20. This growth will be driven by rural and urban consumption, investment and exports. It also noted that India remained a preferred destination for FDI, with over USD 37bn inflows in FY18. The rupee nosedived to an all-time low of 70.59 against the dollar. Moody's has announced that India might breach the 3.3pc fiscal deficit target this fiscal year as higher oil prices can add to short-term pressures.

8:45 AM

Top trading ideas by Prabhudas Lilladher:

 

BUY ITC

CMP: Rs 312.80

TARGET: Rs 345

STOP LOSS: Rs 298

 

The stock has given a decent rally from the levels of 260 and recently has been consolidating around 310 levels for some time gathering strength and has potential to give a further rally from here on. The chart looks attractive and with the indicators looking promising a positive bias has been maintained and we anticipate the stock to continue with the positive uptrend. With good decent consistent volume participation witnessed, we recommend a buy in this stock for an upside target of 345 keeping a stop loss of 298.

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8:40 AM

Nifty outlook by Prabhudas Lilladher:

 

Market ahead of expiry gets volatile with Nifty below 11,700, now having a near term support at 11,600 levels. Bank Nifty though not correcting yet not participating to propel an up move. The support for the day is seen at 38,470/11,620 while resistance is seen at 38,940/11,750. Bank Nifty has a range of 27,970-28,450. Bank Nifty though range bound, we have a positive view with 27,900 as near term support for higher targets of 28,500 and above. Metal sector as recommended earlier would continue to do well, Tata Steel, Nalco, hind zinc look promising from here on. PSU Banks are back in action.