Morning News Headlines

Economic Times

·         GST slabs of 12% and 18% could be clubbed into one, hints Finance Minister Arun Jaitey

·         India permitted to construct Kishanganga, Ratle projects under Indus Water Treaty: World Bank

·         After LPG, govt to now end subsidy on kerosene

·         Patanjali teams up with FB, Google for online ad push

·         Wants to be No. 1 two-wheeler maker by 2020: Honda

·         RCom-Aircel: NCLT to take call on admitting case today

·         Brookfield, ATC bid for 11,000 towers of Vodafone India

·         GIC in talks to buy 50 per cent in Provenance Land

·         MobiKwik raises Rs 225 crore from Bajaj Finance

·         Amazon, two others get nod for FDI in food retail

·         Insolvency Board to pull up firms acting as IRPs

·         Voltas appoints Noel Tata as chairman from September

·         CAG pulls up MRPL for cost overrun in expansion projects

·         IMG report on telcos' financial woes likely in 20 days: Manoj Sinha

Business Standard

·         The stance is exactly where it should be: RBI

·         RBI could have done more to boost property market, say developers

·         Post RBI rate cut, rupee hits over 2-yr high; foreign lenders sell dollars

·         NCLT admits insolvency petition against Essar Steel

·         Oyo is clocking annualised revenue of $400 mn: Founder and CEO

·         Snapdeal 2.0 to cut company's workforce from 1,200 to 500-600 staffers

·         Emami eyes further acquisition to grow health and personal care segments

·         IOC aims to source a tenth of oil needs from own assets

·         Vistara likely to order over 100 aircraft in expansion bid

·         I-T raids on Karnataka minister Shivakumar rock Parliament

Business Line

·         Hydropower projects incur over ₹45,000-cr cost overrun

·         Karnataka plant is now Honda’s largest for two-wheelers

·         L&T bags ₹3,375-cr order in Mauritius

·         Emami looking to acquire smaller FMCG firms

·         28% GST to hit hospitality industry: EIH

·         Remediation, litigation costs pull down Wockhardt Q1

·         Mastercard working with India for low-cost payment tech

·         HCG launches cancer centre in Kenya

·         UltraTech cement launched in AP

·         Anand Piramal appointed non-executive director

·         Godrej Properties net dips 46%

·         Lupin Q1 net down 59%; but the worst is over, says management

·         Narayana Hrudayalaya Q1 net slips 36%

·         RInfra net down 22%, targets debt reduction of ₹9,000 cr

·         Jet Airways to announce June quarter results in September

Mint

·         Cisco’s John Chambers: I’d give India an ‘A’ for progress in the last 3 years

·         Next RBI rate cut uncertain, liquidity management a bigger challenge

·         India, Japan join hands for big infrastructure push in Northeast

·         All eyes on Gujarat RS polls with Amit Shah, Ahmed Patel in fray

·         Thyssenkrupp is said to consider breakup as plan B to Tata Steel Europe

·         CCEA approves rail connectivity projects in Tamil Nadu and Kerala

·         Baba Ramdev to launch Patanjali branded clothes

·         Govt proposes abolishing clinical trials on proven drugs

·         Tata Sons may shut oil production arm Petrodyne in business revamp

·         Gorkhaland stir costs Darjeeling tea estates Rs250 crore so far

·         Airtel may sell 3% stake in Bharti Infratel

·         Zoomcar launches one-way self-drive car service

·         Amazon India to set up three more ‘fulfilment centres’

More will update soon!!

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Update on Nifty levels, Bank Nifty levels and Derivative Outlook of the day 3rd Aug 2017

Nifty 10,081 /Sensex 32,476/ Bank Nifty 25022

13 Advances / 38 Declines/ 0 Unchanged

RBI’s rate cut decision fails to cheer Dalal Street

Indian equity benchmarks retreated from record highs and ended the session with a cut of around one third of a percent on Wednesday, as Reserve Bank of India’s (RBI’s) decision to lower the policy rate by 25 bps to 6% failed to boost sentiment. This was the first rate cut since October 2016 and the interest rate is now at a 6-year low. No change in cash reserve ratio (CRR) too dampened sentiments. Though, markets started the session on positive note, as traders took some encouragement with Minister of State for Finance Santosh Kumar Gangwar’s statement that the government has collected over Rs 1.80 lakh crore in direct tax till July 15 in the current fiscal, an increase of 21.4% year-on-year, and ‘belying’ fears of slowdown in economic activities. The current growth rate is higher than the target rate of 15.32% required to achieve the Budget Estimate. Meanwhile, Finance Minister Arun Jaitley has said that the GST Council, at its next meeting later this week, will finalize a mechanism to operationalize anti-profiteering clause which seeks to protect consumers’ interest. GST Council comprising state finance minister will meet on August 5 to take stock of implementation of GST which was rolled from July 1.

However, markets turned red and extended fall despite the announcement of a 25 basis points cut in the repo rate by RBI, as the markets appear to have already factored in a quarter percentage point rate cut. Traders also remained concerned after finance minister Arun Jaitley cautioned that the fiscal deficit of states may rise this year, with states likely to tap the markets to raise funds to finance farm debt waivers. Some cautiousness also came with the Central Electricity Authority’s (CEA) statement that about 7% of India's coal-fired power plants may never be able to comply with new environmental norms because they lack the space to install emission-cutting equipment, potentially leading to their shutdown.

Weak opening in European counters too dampened sentiments, as investors focused on a fresh batch of corporate earnings and began to prepare for the Bank of England’s policy statement on Thursday. UK construction sector activity dropped more than expected in July, hitting an 11-month low. However, Asian markets ended mostly in green led by half a percent gain in Japanese Nikkei.

Back home, Indian rupee that has been seen among the top performing world currencies surged to 63.73, a two-year high, against the US dollar at the time of equity markets closing. Meanwhile, RBI in its third bi-monthly policy review for FY18 enlightened that external demand conditions are gradually improving and should support the domestic economy, although global political risks remain significant. Keeping in view these factors, the projection of real GVA growth for 2017-18 has been retained at the June 2017 projection of 7.3%.

FII’s Activity 2-Aug-17

The FIIs as per Wednesday’s data were net sellers in equity segment, while they were net buyers in debt segment, according to data released by the NSDL.

In equity segment, the gross buying was of Rs 4579.68 crore against gross selling of Rs 5499.50 crore. Thus, FIIs stood as net sellers of Rs 919.82 crore in equities.

In the debt segment, the gross purchase was of Rs 3249.80 crore with gross sales of Rs 2005.58 crore. Thus, FIIs stood as net buyers of Rs 1244.22 crore in debt.

Now what to expect next??

Nifty Levels

Support at 10030---9950 and resistance at 10200

Above 10120 will see rally till 10145---10200 mark else it could test its support level of 10030---9950 again.

Trade with levels only

Bank Nifty Levels

Support at 25000 and resistance at 25300

Close above 25145 will take to 25240---25300 mark.

Support and stop loss below 25000 on closing basis

Trade with levels only

Daily Derivative Outlook 3rd August

• Nifty (Aug) futures closed at a Premium of 19.60 points versus a premium of 23.80 points.

• Maximum call writing was seen at 10350 strike, and maximum put buying was seen at 9900 strike.

• Maximum positions are at 10500 CE and 10000 PE. Nifty expected trading range spread to 10500—10000.

• CUMMINSIND (47%), CEATLTD (40%), INFIBEAM (40%), GODREJCP (37%) and TITAN (17%) were the top open interest gainers in the market.

• TECHM (-9%), CHOLAFIN (-8%), ESCORTS (-8%), JPASSOCIAT (-7%) and HEROMOTOCO (-6%) were the top open interest losers in the market.

• The Nifty Put Call Ratio (PCR) finally stood at 1.12.

• Advance Decline ratio in f&O segment was at 0.77, Advance (71) + Decline (145)+ Unchanged (3) = 219 

Derivative Idea (03-08-2017)

INFIBEAM gain around 40% of open interest as short build up on Wednesday’s trade.

On Daily charts, INFIBEAM has formed bearish engulfing candlestick pattern and stock trading in oversold zone while RSI too showing negative divergence in it which indicates weakness in stock. 

Below 1380 panic remain continue till 1340—1310 mark in day to come. 

Resistance and stop loss above 1425 

Current chart pattern and derivatives data suggest that we expect further panic in coming sessions.

Trading Recommendation

Sell INFIBEAM (AUG) Future Below 1380 Stop loss 1425 Target 1340--1310

Corporate Action

Kajaria Ceramics Limited- Annual General Meeting/Dividend - Rs 3 Per Share

HCL Technologies Limited-Interim Dividend - Rs 2/- Per Share

Results Today

Colgate Palmolive (India) Limited

Ujjivan Financial Services Limited

Titan Company Limited

The Ramco Cements Limited

Hindustan Construction Company Limited

Indian Oil Corporation Limited

CEAT Limited

Cummins India Limited

More Will Update Soon!!

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Updates on Bullion, Base Metals and Energy Levels 02nd Aug 17

Gold futures showed mixed trend on MCX as August contract edged higher on account of buying in precious metal by jewellers, retailers and investors, while October contract edged lower as the dollar firmed and as investors took profits after downbeat US data propelled prices to a seven-week high in the previous session.

Crude oil futures traded marginally lower on MCX as speculators cut down bets, pressured by an unexpected increase in US inventories and doubts over OPEC’s ability to curtail supply and rebalance the oversupplied global market. The American Petroleum Institute reported that US crude inventories rose by 1.8 million barrels to 488.8 million last week.

Comex copper futures retreated from the two-year high on Tuesday, while London copper prices held near two-year highs due to expectations of stronger demand from the world’s top consumer China, where a government-led infrastructure push has led to robust activity in the construction sector. China's official manufacturing purchasing managers' index (PMI) showed a 12th straight month of expansion, while a private PMI survey showed manufacturing growth quickened in July.

Technical Level

Gold 

Support at 28500 and Resistance at 28750

Break and sustain below 28500 will take it to 28350—28200 mark else could touch its resistance level of 28750 again.

Fresh buying can be initiated above 28750 mark

Silver

Support at 38000 and Resistance at 38450

Break and sustain below 38000 will take it to 37700—37400 mark else could touch its resistance level of 38450

Fresh buying can be initiated above 38450

Crude

Support at 3100 and Resistance at 3150

Break and sustain below 3100 will take it to 3070—3040 mark else could touch its resistance level of 3150

Fresh buying can be initiated above 3150

Natural Gas 

Support 178 and Resistance 183

Break and sustain below 178.00 will take it to 175—173 else could touch its resistance level of 183 again.

Fresh buying can be initiated above 183

Copper 

Support at 403 and Resistance at 409

Forming double top patter on daily chart, Break and sustain below 403 will take it to 398—395 and then to 393 mark else could touch its resistance level of 409 again.

Fresh buying can be initiated above 409

More will update soon!!

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Commodity Alert: MCX mentha oil hits record high on supply crunch

The August contract of mentha oil hit an all-time high of 1,170 rupees per kg on MCX as rains in Uttar Pradesh are seen disrupting supplies in spot markets. Rise in demand for mentha oil from the US and China for industrial

Purposes is also seen boosting prices. During Jan-Apr, exports of mentha oil surged to 757 tn, up 57% on year. At Chandausi, a key wholesale market in Uttar Pradesh, the commodity was quoted at 1,250-1,270 rupees per kg, up 15-25 rupees from Tuesday

Source: Newswire

 More will update soon!!

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Commodity Alert: NCDEX chana hits 1-week high on demand from millers

The September contract of chana on the NCDEX hit a one-week high of 5,048 rupees per 100 kg due to an increase in demand from dal millers and stockists, coupled with a fall in arrivals at key markets, traders said.On the NCDEX, the most active September contract of chana traded at 5,065 rupees per 100 kg, up 2.5% from Tuesday. In Delhi, the benchmark market for the pulse, chana was quoted at 5,100 rupees per 100 kg, up 50 rupees from Tuesday. Arrivals of chana were estimated at 225 tn today, compared with 375 tn.

Source: Newswire

More will update soon!!

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Commodity Alert: MCX crude oil down on rise in stocks, production

Crude oil contracts declined for the third straight day on the MCX in line with benchmark contracts on the NYMEX following reports of a rise in inventories and production. The American Petroleum Institute said crude oil inventories in the US rose 1.78 mln barrels at the end of last week, against market expectations of fall in stocks. Prices also came under pressure after reports of an increase in crude oil production by members of the OPEC in July.

Source: Newswire

More will update soon!!

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India Rupee: Sharply up as foreign banks' dollar sales trigger stop-losses

The rupee rose sharply against the US dollar because heavy dollar sales by a UK-based bank and a German bank triggered multiple stop-losses below 64.05 a dollar. The rupee shot up by 25 paise to 63.8150 a dollar within 12 minutes of trade, marking its highest level since August 2015.Dealers said foreign banks could have been selling not only for foreign funds that invested in ongoing initial public offerings, but also noting arbitrage opportunity in the currency futures market. Some dealers said these dollar sales could have been to position themselves ahead of the Reserve Bank of India's monetary policy outcome, due at 1430 IST today. Moreover, a part of these significant dollar sales were said to have been on behalf of a large private company, along with a few other corporate houses That accentuated the rise in the rupee.

Source: Newswire

More will update soon!!

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Commodity Alert: Rise in arrivals weighs on castor seed in Gujarat

Castor seed prices were down in the key markets of Gujarat today, after having risen for two straight sessions, due to a surge in supply. Data from the agriculture ministry showed castor acreage across the country as of Jul 27 was up 130.7% at 240,600 ha, which also weighed on prices.

Source: Newswire

 More will update soon!!

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Commodity Alert: NCDEX jeera down nearly 2% as Apr-Jun exports fall

                        

Futures contracts of jeera on the NCDEX, were down nearly 2% as exports of the spice fell 2.43% on year in Apr-Jun to 40,000 TN, exporters said.    India's exports of jeera in Apr-Jun last year were at 41,000 tn, data from the Spices Board showed. “Export shipments in the first quarter were largely to Bangladesh, China and West Asia. Lower prices of Indian-origin jeera during the peak arrival season in April prevented a major fall in exports.

Source: Newswire

   More will update soon!!

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Commodity Alert: NCDEX guar gum, seeds down due to profit booking

                         

Futures contracts of guar gum and guar seeds on the NCDEX fell as traders booked profits after the contracts rose in the last three trading days. The guar complex has lately been on the rise due to concerns of crop damage after recent severe rains in Rajasthan and floods in Gujarat. Hopes of better guar gum exports to the US, where it is used as a fracking agent for crude oil exploration also supported the prices.

Source: Newswire

More will update soon!!

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Agro Commodity Update (02-Aug-2017)

Fundamental Aspect

Turmeric futures traded flat with positive bias on account of uptick in demand at the spot market. Further, expectation of lower arrivals and dry conditions in Telangana also added support to turmeric prices’ uptrend. According to IMD, Telangana received only 9.2 mm rains which is 85% below normal. Moreover, dry condition and slow sowing progress is supporting prices. In Telangana, turmeric acreage as on 29-Jul-17, up 2.5% to 39,000 hectares as compared to last year acreage of 40,000 hectares. Market arrivals dropped about 34% in June as compared with the May. As per the market source, about 18,167 tonnes arrived in July as compared with 27,574 tonnes in previous fortnight. As per the data release by the government, turmeric exports during first four months in 2017 is 42,855 tonnes, up 40.7% compared to last year same period.

Jeera futures traded lower despite uptick in demand at the spot market against restricted supplies on reports of lower arrivals due to heavy rains in the producing belts of Gujarat. As per the trader source, jeera arrival during the month of July dropped to 3,668 tonnes as compared with the June arrival report. In June, arrival recorded at 8,072 tonnes. In line, jeera exports in April 2017 was reported at 14,599 tonnes, were down 9% from March. In 2016-17, country exports increase by 26% to 1.24 lt.

Soybean August futures traded in tight range with lower bias as market participants liquidate their long positions on anticipation of lower crushing demand as government has cut tariff rates of palm oil for the next fortnight. As per the government data, soybean planting fell 10.3% to 95.7 lakh hectares compared with the same period last year. Last year, the acreage was 106.7 lakh hectares. Sowing of soybean fell so far during the period due to a drop in acreage in Madhya Pradesh, the country's largest producer of soybean, as most farmers shifted to more profitable crops such as cotton due to poor returns from oilseeds last year.

Refined Soy Oil Aug futures traded a bit positive tracking cues from strong physical demand in domestic market and surge in prices in international markets. Moreover, increase in tariff rates for the next fortnight too support prices. However, higher stock levels in the domestic market may keep prices under pressure. The base import price of crude soyoil has been hike by $8 to $820 per tonne for the first half of August. Base import prices of edible oils are revised every fortnight, based on global prices and changes in foreign exchange rate. The prices were last revised on Jul 14. As per the latest report of SEA, the import volume is down by about 30% for the period from Nov-May to 16.10 lt as compared with the 24.22 lt noted in the last year for same period.

Mentha oil futures traded higher on MCX as engaged in building up their positions, tracking a firm trend at spot market on strong demand. Further, tight stock position following a fall in arrivals from major producing belts of Chandausi in Uttar Pradesh too fuelled the uptrend in it.

Technical Aspect

Jeera (Aug) 

Support at 18700 and Resistance at 19450.

Looks weak and likely to touch 18700. Break and close below 18700 will see more downside panic in it else, could touch its resistance level of 19450.

Fresh buying can be initiated above 19450.

Trade with levels only.

Castor Seed (Aug)

Support at 4400 and Resistance at 4515.

Break and close below 4400 with volume will take it to 4360---4330 mark in near term else, could touch its resistance level of 4515.

Fresh buying can be initiated above 4515 mark.

Trade with levels only.

Turmeric (Aug)

Last week we clearly indicated that if prices unable to hold below 6750 then there is a chance of bottom out in it.

Look what happen to it... Skyrocketed and made a fresh high of 7682 yesterday.

Now Support seen at 7450 and Resistance is 7700.

We will maintain our bullish in it and every decline towards 7450 can accumulate more. Break and sustain above 7700 will take it to 7850---8000++mark again in near term else, could touch its support level of 7450.

Fresh selling can be seen below 7450 on closing basis.

Trade with levels only.

Guar seed (Oct)

Support at 3580 and Resistance at 3650.

Break and sustain below 3580 with volume will take it to 3530---3470 mark in near term else, could touch its resistance level of 3650.

Fresh buying can be initiated above 3650 only.

Trade with levels only.

Soya bean (Aug)

Support seen at 2960 and Resistance is at 3080.

Looks positive and will add more lot on decline around 2990 for the upside level of 3050---3080.

Fresh selling could be initiated below 2960.

Trade with levels only.

Soyaref (Aug)

Support at 640 and resistance is 653.

Will accumulate the fresh position on every decline till 645 which will take it to 657---662++mark in near term.

Fresh selling can be seen below 640.

Trade with levels only.

Dhaniya (Aug)

Support at 4750 and resistance is 4950.

Now what to expect?

Either side close with volume will decide the further direction in it.

Trade with levels only.

RM Seed (Aug)

Support seen at 3670 and resistance seen at 3725.

Break and sustain above 3725 will take it to 3780---3820 and then 3870++ mark in days to come else could touch its support level of 3670.

Fresh selling can be initiated below 3670.

Trade with levels only.

Mentha oil (Aug)

Support is 1120 and Resistance is 1150

 Break and sustain above 1150 will take it to 1190---1220++mark in near term else could touch its support level of 1120 again

Fresh selling can be initiated below 1120 mark on closing basis.

Trade with levels only.

More will update soon!!

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Commodity Alert: Malaysia CPO down as output seen higher

                      

Futures contracts of crude palm oil traded lower on the Bursa Malaysia Derivatives today due to expectation of higher production. Malaysian Palm Oil Board will release the latest data on production, inventory and exports next week. Strength in soy oil contracts on the CBOT, however, limited the losses in prices of palm oil. Prices of soy oil and palm oil move in tandem as the two are used to manufacture bio-diesel.

Source : Newswire

   More will update soon!!

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Commodity Alert: Most LME base metals down on weak US econ data

Most LME base metals down on weak US econ data released showed a slowdown in US factory activity and because investors booked some profits following the recent surge in prices. Data released by the Institute for Supply Management showed that index of US manufacturing activity fell to 56.3 in July from 57.8 a month ago. The US is one of the largest consumers of industrial metals in the world, and weak manufacturing activity will typically trigger concern about a decline in demand for such metals. Traders booked profits as three-month nickel and copper contracts on LME had closed higher in most of the last nine trading sessions.  Nickel and copper on LME had gained 7.5% and 6.2%, respectively, during the period.

Source : Newswire

 More will update soon!!

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