Opening Bell 28.07.2014

Your world at 9am

world equity markets 2014-07-28

Equities

Major
DAX(DEU) -1.53%
CAC(FRA) -1.82%
UKX(GBR) -0.44%
NKY(JPN) +0.47%
SPX(USA) -0.48%
MINTs
JCI(IDN) -0.19%
INMEX(MEX) +0.04%
NGSEINDX(NGA) -0.60%
XU030(TUR) +0.51%
BRICS
IBOV(BRA) -0.27%
SHCOMP(CHN) +2.30%
NIFTY(IND) -0.51%
INDEXCF(RUS) -1.45%
TOP40(ZAF) -0.14%

Commodities

Energy
Brent Crude Oil -0.46%
Ethanol +0.00%
Heating Oil -0.29%
Natural Gas -0.34%
RBOB Gasoline -0.27%
WTI Crude Oil -0.51%
Metals
Copper +0.00%
Gold 100oz +0.38%
Palladium -0.16%
Platinum +0.10%
Silver 5000oz +0.00%

Currencies

USDEUR:+0.00% USDJPY:-0.02%

MINTs
USDIDR(IDN) +0.08%
USDMXN(MEX) -0.04%
USDNGN(NGA) +0.02%
USDTRY(TUR) -0.00%
BRICS
USDBRL(BRA) +0.36%
USDCNY(CHN) -0.08%
USDINR(IND) +0.00%
USDRUB(RUS) +0.49%
USDZAR(ZAF) -0.16%
Agricultural
Cattle +0.00%
Cocoa -0.10%
Coffee (Arabica) +0.87%
Coffee (Robusta) -0.49%
Corn +1.03%
Cotton +0.31%
Feeder Cattle +0.00%
Lean Hogs +0.00%
Lumber +0.00%
Orange Juice -1.13%
Soybean Meal -0.13%
Soybeans +0.62%
Sugar #11 +0.53%
Wheat +0.74%
White Sugar +0.07%

Must reads

Reliance Power is buying three of Jaypee Group’s hydel assets. (FE) RPOWER 92.80 2.05 (2.26%) JPPOWER 19.75 0.80 (4.22%)

India Shining 2.0? The Commerce and Industry Ministry is planning a media blitz – print, electronic and social – to hard sell India as an attractive investment destination. (FP)

When your reasons are worse than useless, sometimes the most rational choice is a random stab in the dark. (Aeon)

Good luck! And remember that markets are closed tomorrow (Tuesday) for Ramzan ID.

A Real Live Innovator’s Dilemma

The last time I wrote about innovation, I pointed out some of the most common problems that innovators face (The Disruptor’s Dilemma) and how incumbents can use regulation to stymie the disruptor. Peter Yared has an interesting post up on Techcrunch on how BMW is responding to Tesla’s onslaught and winning. Here’s the tl;dr:

  • Legacy companies can mislabel their products to leverage their brand, especially if an upstart compares itself directly to a particular model.
  • Legacy companies are often willing to hodgepodge new technology with their older technology to stave off new competitors
  • Innovators should not underestimate the power of a legacy company’s large, lumbering sales channel.
  • Legacy companies are often in numerous segments of a market and leverage their scale to beat an upstart’s roadmap.

Read the whole thing here: BMW Vs. Tesla

Weekly Recap: 8 Truths

world equity markets 2014-07-18.2014-07-25

The Nifty posted a decent +1.65% this week (+1.96% in USD) in spite of Friday’s sell off.

Equities

Major
DAX(DEU) -0.78%
CAC(FRA) -0.11%
UKX(GBR) +0.62%
NKY(JPN) +1.59%
SPX(USA) +0.16%
MINTs
JCI(IDN) +0.04%
INMEX(MEX) +0.70%
NGSEINDX(NGA) -1.41%
XU030(TUR) +2.49%
BRICS
IBOV(BRA) +1.15%
SHCOMP(CHN) +3.28%
NIFTY(IND) +1.65%
INDEXCF(RUS) -2.43%
TOP40(ZAF) -0.37%

Commodities

Energy
Brent Crude Oil +1.03%
Ethanol +1.91%
Heating Oil +2.17%
Natural Gas -4.23%
RBOB Gasoline +0.10%
WTI Crude Oil -1.26%
Metals
Copper +1.89%
Gold 100oz -1.08%
Palladium -0.19%
Platinum -0.50%
Silver 5000oz +0.00%

Currencies

USDEUR:+0.73% USDJPY:+0.47%

MINTs
USDIDR(IDN) -0.32%
USDMXN(MEX) -0.10%
USDNGN(NGA) -0.09%
USDTRY(TUR) -1.39%
BRICS
USDBRL(BRA) +0.10%
USDCNY(CHN) -0.26%
USDINR(IND) -0.30%
USDRUB(RUS) +0.03%
USDZAR(ZAF) -1.23%
Agricultural
Cattle +4.70%
Cocoa +2.80%
Coffee (Arabica) +9.03%
Coffee (Robusta) +1.09%
Corn -2.42%
Cotton -5.41%
Feeder Cattle +2.91%
Lean Hogs -2.67%
Lumber +0.06%
Orange Juice -3.14%
Soybean Meal +4.63%
Soybeans +2.82%
Sugar #11 +1.00%
Wheat +1.22%
White Sugar -0.47%

Nifty Heatmap

CNX NIFTY heatmap.2014-07-18.2014-07-25

Index Returns

index performance.2014-07-18.2014-07-25

Sector Performance

sector performance.2014-07-18.2014-07-25

Market Cap Decile Performance

Decile Mkt. Cap. Advance/Decline
1 (micro-cap) -6.16% 68/66
2 -0.32% 62/72
3 -3.25% 60/74
4 -0.68% 62/72
5 +0.39% 70/64
6 -2.19% 60/74
7 +0.03% 65/69
8 -1.79% 60/74
9 -0.05% 66/68
10 (mega-cap) +1.07% 70/64
Most of the market performance was centered around large-caps.

Top Winners and Losers

HDFC +8.62%
ASIANPAINT +9.81%
GLENMARK +11.84%
CAIRN -10.61%
CROMPGREAV -8.26%
DLF -7.35%
A dick move by Cairn sent its stock reeling. After insisting that it need the cash for expansion (and not paying it out in dividends and being less than honest about its buyback), it loans $1.25 billion to Vedanta. Independent directors sleeping at the wheel as usual.

ETFs

NIFTYBEES +1.47%
BANKBEES +0.09%
INFRABEES -0.79%
JUNIORBEES -1.64%
GOLDBEES -1.70%
PSUBNKBEES -4.69%
Banks vs. PSU banks – its a walk off!

Investment Theme Performance

We have this thing called “Refract” going on where we plan to take the NSE equity only portion of a mutual fund’s portfolio and setup an equally weighted theme. Its a live experiment, so follow along…

Yield Curve

yield Curve.2014-07-18.2014-07-25

Advance Decline

advance.decline.line2.2014-07-18.2014-07-25

July Nifty OI

nifty.puts.calls.JUL.2014-07-18.2014-07-25

August Nifty OI

nifty.puts.calls.AUG.2014-07-18.2014-07-25

Thought for the weekend

8 things that you understand intellectually, but don’t accept in reality.

  1. Anyone can outperform at any time, no one can outperform all the time.
  2. Persistence of performance is nearly non-existent.
  3. Taxes and commissions matter.
  4. Smart doesn’t equal good.
  5. Incentives matter.
  6. The crowd is always at its most wrong at the worst possible time.
  7. Fear is significantly more powerful than greed.
  8. There is no pleasure without the potential for pain.

Source: Truths Investors Simply Cannot Accept

Options Daily 25.07.2014

Nifty OI

So it is settled then, Nifty to expire between 7700 and 8000.

nifty.puts.calls.JUL.2014-07-23.2014-07-24

Anomalous Option Trades

A sudden increase or decrease in open interest can signify informed buying/selling that you can potentially profit from. Option traders tend to ‘lead the pack’ and their actions can be used to gain insight into the consensus opinion of traders. This scan lists option trades that were one standard deviation away from the average over the last 20-days. Note that this scan maybe too noisy around expiry.

Download here.

Check out our Option Strategy Studio. One more reason to open a demat account with us.