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DAILY NEWS LETTER

Date: 21.01.2020

Nifty Short Term Trend

The Nifty opened with a bang to hit a new intraday high on

January 20 only to slip immediately, wiping out all the gains

following Reliance Industries and HDFC Bank's quarterly

earnings that seem to have left the investors unimpressed. The

index erased 206 points from the day's high to close way below

12,300, the immediate crucial support level seen last week, and

formed a large bearish candle that resembles a Long Black Day

pattern on daily charts, as the closing was far lower than the

opening tick. Finally, the bulls appear to have surrendered as

the Nifty50 registered a long black day after witnessing a strong

opening with a new life-time high of 12,430. This sell-off

appears to have triggered a short-term corrective swing with a

reversal of the near-term trend in favour of the bears. In case

the Nifty breaches 12,216 in today’s trading session, then it

shall ideally extend the correction into the bullish gap zone,

registered on January 9, present between 12,132 and 12,044.

While on the higher side immediate resistance can be expected

around 12,300-12,340.

The Nifty Bank also traded in line with the Nifty as it rallied on

opening and fell gradually as the day progressed. The index lost

509.95 points, or 1.61 percent, to close at 31,080.70 and

formed a Long Black Day candle on daily charts. The Nifty Bank

has an important support zone at 30,800 - 30,900, which, if

breached on the downside, will weaken the near-term

structure for the index and open up fresh downside for the

index with immediate support at 30,500. However, the

resistance for the index is seen around 31,400-31,600.

Levels to watch

R1 R2 S1 S2 Outlook for the Day Short term Outlook

NIFTY 12300 12340 12132 12044 Sideways Positive

BANK NIFTY 31400 31600 30800 30500 Sideways Positive

USD/INR 71.35 71.58 70.89 70.62 Sideways Positive

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Financial & Economic Wrap Up

Hinduja Group flagship firm Ashok Leyland on January

20 said it has delivered the first batch of BS-VI

compliant trucks to customers in Delhi-NCR region. For

meeting the BS-VI emission standard, the company

has developed an innovative iGen6 technology that

will ensure higher operating profits for customers.

The telecom department has slapped a Rs 48,000

crore demand notice on Oil India in past statutory

dues, an order which the country's second-biggest

state oil producer plans to challenge in Telecom

Disputes Settlement and Appellate Tribunal (TDSAT).

Following a Supreme Court ruling that non-telecom

revenues should be included for considering payments

of government dues, the Department of

Telecommunications (DoT) has asked Oil India to pay

Rs 48,000 crore in principal dues together with

interest and penalty for using optic fibre network for

internal communication.

Cipla on Monday announced the closure of inspection

by the US health regulator at its Patalganga

manufacturing facility in Maharashtra. "Following the

inspection by the United States Food and Drug

Administration (USFDA) at the Patalganga

manufacturing facility of the company from November

4, 2019 to November 13, 2019, the company has

received the Establishment Inspection Report (EIR),

indicating closure of the inspection".

Shri Bajrang Power and Ispat has received markets

regulator Sebi's approval to raise up to Rs 500 crore

through an initial share-sale. The company, an

integrated manufacturer of long steel products in the

country, is the first one to get a clearance this year

from the regulator to float an IPO. Shri Bajrang Power,

which filed draft papers with the regulator in

September 2018, obtained its "observations".

The Income Tax Department has launched searches at

multiple locations of the Bharat Hotels group, its

associates and a leading automobile dealer firm in

connection with a tax evasion probe, officials said on

January 20. They said about 8 premises linked to

Bharat Hotels CMD Jyotsna Suri and some of her

associates as well as Jayant Nanda, promoter of Cargo

Motors, one of the largest dealers of Tata motors in

the country, are being searched in and around the

national capital.

Indices Performance

Index LTP Previous Close % Change

S&P BSE Sensex 41528.91 41945.37 -0.99%

Nifty 50 12224.55 12352.35 -1.03%

Nifty Midcap 50 4944.85 4986.55 -0.84%

Nifty 500 10025.70 10118.70 -0.92%

Bank Nifty 31080.65 31590.65 -1.61%

Institutional Flows (Cash Segment)

Description (Rs in Cr) BUY SELL NET

FII Activity 5050.19 5044.32 5.87

DII Activity 3332.28 4752.13 -1419.85

FIIs Derivative Statistics

BUY SELL

No. of Contracts

Amount (INR. Cr.)

No. of Contracts

Amount (INR. Cr.)

Index Futures 63819 4796.73 59098 4662.28

Index Options 3614622 261097.12 3609572 260825.79

Stock Futures 216273 15253.15 232740 15899.99

Stock Options 120179 8712.39 123193 8952.79 Top OI Gainers

Scrip OI: No of Contracts LTP OI: Value

% Change in OI

POWERGRID 5145 204.65 20580000 42.44

PFC 4490 112.45 27838000 28.1

IOC 11384 116.85 45536000 27.25

FEDERALBNK 8893 94.05 62251000 15.57

OIL 1490 147.6 5064510 13.65 Top OI Losers

Scrip OI: No of Contracts LTP OI: Value

% Change in OI

NBCC 2126 37.7 30401800 -8.52

MRF 2065 68603.65 20650 -8.22

GAIL 8075 127.75 43072050 -7.77

TATASTEEL 15626 492.2 23439000 -6.35

APOLLOHOSP 3309 1629.9 1654500 -6.02 Volume Spurt: Cash Segment

Scrip LTP Quantity

Change (%) Price Change

(%)

IRB Infrastructure Devel 115 18.47 14.54

NHPC 27.05 47.54 11.55

PRESTIGE 414.95 13.43 10.62

L&TFH 118.1 20.34 -7.19

Power Finance Corpor 112.35 36.35 -7.87 **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

ESCORTS 1.34 BEARISH OIL 2.02 BEARISH

BHARTIARTL 1.22 BEARISH UJJIVAN 1.43 BEARISH

SHREECEM 1.12 BEARISH SHREECEM 1.33 BEARISH

DLF 1.12 BEARISH DLF 1.10 BEARISH

BERGEPAINT 1.12 BEARISH SRF 1.08 BEARISH

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Nifty OI – Call Put Analysis

F&O Wrap-up

• Nifty January series future closed at 12266 Premium of 41.45 Point compared to Nifty spot which closed at 12224.55

• The Nifty OI wise Put-Call ratio stood at 1.20 and volume wise put-call ratio stood at 0.97

• India VIX has increased by 9.25 percent and closed at 15.4350

• The open interest in Nifty Futures increased from 14,67,489 to 15,94,789

Quarterly Results Today

Atishay Ltd IndiaMART InterMESH Ltd RAJRATAN GLOBAL WIRE LTD.

Digicontent Ltd JAY BHARAT MARUTI LTD. RANE (MADRAS) LTD.

GRANULES INDIA LTD. KAMAT HOTELS (INDIA) LTD. Sasken Technologies Ltd

GUJARAT INVESTA LTD. KAYCEE INDUSTRIES LTD. Siddharth Education Services Ltd

HATSUN AGRO PRODUCT LTD. Mahindra EPC Irrigation Ltd SUKHJIT STARCH & CHEMICALS LTD.

HAVELLS INDIA LTD. Manaksia Aluminium Company Ltd SYSCHEM (INDIA) LTD.

HDFC Asset Management Company Newgen Software Technologies Ltd Tejas Networks Ltd

ICICI Prudential Life Insurance Polycab India Ltd ZEE ENTERTAINMENT ENTERPRISES

Corporate Action

Company Ex-Date Purpose Record Date

Aster DM Healthcare Ltd 23-Jan-20 Buy Back of Shares 24-Jan-20

TATA CONSULTANCY SERVICES LTD. 23-Jan-20 Interim Dividend - Rs. - 5.0000 25-Jan-20

HCL TECHNOLOGIES LTD. 24-Jan-20 Interim Dividend - Rs. - 2.0000 27-Jan-20

WIPRO LTD. 24-Jan-20 Interim Dividend - Rs. - 1.0000 27-Jan-20

India Grid Trust 27-Jan-20 Income Distribution (InvIT) 28-Jan-20

ICICI Prudential Value fund Series 11– cum 27-Jan-20 Redemption of Mutual Fund -

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