All You Need To Know Going Into Trade On Jan. 19

Asian equities headed for a sixth week of gains even as investors face the test of rising yields, with benchmark 10-year Treasuries reaching levels last seen in 2016. The dollar edged lower as the possibility of a government shutdown grew.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.2 percent to 10,831 as of 7:10 a.m.

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DayBreak

Here’s a quick look at all that could influence equities on Friday.

Global Cues

• Most U.S. equity gauges ended lower, led by weakness in real estate, energy producers and household products makers.
• The yield on 10-year Treasuries climbed above 2.6 percent for the first time since March, while the dollar failed to hold the previous day’s gain.
• Investors speculated that Apple Inc. may sell some securities to pay the tax bill it will incur from its planned cash repatriation.

Europe Check

• European stocks advanced but struggled to stay in the green as the euro shrugged off ECB attempts to talk down the currency earlier this week.

Asian Cues

• Japan’s Topix index rose 0.6 percent in Tokyo.
• Hong Kong’s Hang Seng Index were little changed.
• Australia’s S&P/ASX 200 Index fluctuated and South Korea’s Kospi index added 0.2 percent.
• Futures on the S&P 500 rose 0.1 percent after the underlying gauge slipped 0.2 percent Thursday, when the Dow Jones Industrial Average retreated 0.4 percent.

Commodity Cues

• Gold was little changed at $1,327.25 an ounce.
• West Texas Intermediate crude fell 0.4 percent to $63.69 a barrel.
• Brent ended lower at $69.31/barrel, down 0.1 percent.
• Sugar ended over two-year low at 13.08 cents per barrel; down 2.5 percent.

Shanghai Exchange

• Steel trades higher for fourth day; up 0.7 percent.
• Aluminium snaps three-day losing streak; up 0.7 percent.
• Zinc trades lower for fourth day; down 0.1 percent.
• Copper snaps five-day losing streak; up 0.1 percent.
• Rubber trades lower; down 0.1 percent.

Indian ADRs

Nifty Earnings To Watch

• HDFC Bank
• ITC
• Kotak Mahindra Bank
• Reliance Industries
• Wipro

Other Earnings To Watch

• Atul
• CDSL
• GNA Axles
• HDFC Standard Life Insurance
• ICICI Prudential Life Insurance
• IDFC Bank
• Jubilant Foodworks
• Kansai Nerolac Paints
• NIIT Technologies
• PC Jeweller
• Tata Elxsi

Earnings Reaction To Watch

HCL Technologies Consolidated Q3 (QoQ)

• Maintained revenue guidance of 10.5-12.5 percent for FY18 in constant currency terms.
• Retains FY18 operating margin guidance at 19.5-20.5 percent.
• Keeps FY18 dollar sales growth guidance at 12.1-14.1 percent.
• Net profit down 6 percent at Rs 2,075 crore.
• Revenue up 3 percent at Rs 12,809 crore.
• Sales in dollar terms up 3.1 percent at $1,988 million
• EBIT up 2.4 percent at Rs 2,510 crore.
• Margin at 19.6 percent versus 19.7 percent.
• Constant currency financial services operations grew 2.8 percent.

Bharti Airtel Q3 (QoQ)

• Revenue down 7 percent at Rs 20,319 crore.
• Ebitda down 6 percent at Rs 7,469 crore.
• Margin at 36.76 percent from 36.38 percent.
• Net Profit down 11 percent at Rs 306 crore.
• ARPU down 15 percent to Rs 123.

Cyient Q3 (QoQ)

• Revenue up 2 percent at Rs 983 crore.
• Net profit down 21 percent at Rs 87.8 crore.
• EBIT down 1 percent at Rs 112 crore.
• Margin at 11.4 percent from 11.7 percent.

Zensar Technologies Q3 (QoQ)

• Revenue up 4 percent at Rs 794 crore.
• Net profit down 6 percent at Rs 59 crore.
• EBIT up 26.8 percent at Rs 90 crore.
• Margin at 11.3 percent from 9.3 percent.

Deepak Nitrite Q3 (YoY)

• Revenue up 22 percent at Rs 371 crore.
• Net profit up 170 percent at Rs 20 crore.
• Ebitda up 68 percent at Rs 52 crore.
• Margin at 14.0 percent from 10.2 percent.

Jubilant Industries Q3 (YoY)

• Revenue up 4.9 percent at Rs 119 crore.
• Net loss of Rs 2.2 crore from a net loss of Rs 5.6 crore.
• Ebitda up 6 percent at Rs 5.3 crore.
• Margin at 4.5 percent from 4.4 percent.

Kewal Kiran Clothing Q3 (YoY)

• Revenue flat at Rs 94.4 crore.
• Net profit up 25 percent at Rs 10.4 crore.
• Ebitda up 48 percent at Rs 15.8 crore.
• Margin at 16.7 percent from 11.4 percent.

Stocks To Watch

• RBI hikes foreign investment limit in Healthcare Global to 100 percent from 24 percent earlier.
• Alembic board to consider buyback of shares on Jan. 23.
• Biocon enters into a global partnership with Sandoz to develop, manufacture and commercialise multiple biosimilars in immunology and oncology.
• Savita Oil Technologies to consider share buyback on Jan. 23.
• Torrent Pharma acquires U.S.-based generic pharmaceuticals Bio-Pharma Inc.
• Tech Mahindra to acquire 17.5 percent shares of Altiostar on a fully diluted basis.

Bulk Deals

Websol Energy System

• Garnet International bought 1.40 lakh shares or 0.5 percent equity at Rs 130.62 each.

Star Cement

• SBI MF bought 1.53 crore shares or 3.7 percent equity at Rs 129.97 each.
• Promoters sold 1.4 crore shares or 3.3 percent equity at an average of Rs 130.05 each.

Arman Financial Services

• Param Capital bought 3.25 lakh shares or 5.7 percent equity at Rs 255.5 each.
• Reliance MF sold 3.94 lakh shares or 6.9 percent equity at Rs 255.5 each.

Shah Alloys

• General Insurance Corp of India sold 1.12 lakh shares or 0.6 percent equity at Rs 18.3 each.
• United India Insurance sold 1 lakh shares or 0.5 percent equity at Rs 18.25 each.

Trading Tweaks

• Circuit filter revised to 10 percent: Excel Crop Care and Thirani Projects.
• Circuit filter revised to 5 percent: Gallant Ispat and Confidence Petroleum.

Who’s Meeting Whom?

• Vipul to meet investors on Jan. 19.
• Eris Life to meet Dolat Capital on Jan. 19.
• Minda Industries to meet investors on Jan. 19.
• Dishman to meet investors on Jan. 19.

Insider Trades

• Jindal Hotels promoter bought over 31,000 shares from Jan. 1-17.
• Fiberweb India promoter sold 45,000 shares from Jan. 15-16.
• Manugraph India promoter sold 10,000 shares on Jan. 16.

IPO

• Newgen Software Technologies IPO closes. The issue was subscribed 8.1 times.
• Amber Enterprises India IPO continues on day 3. The issue is subscribed 3.6 times.

Rupee

• Rupee closed at 63.86/$ on Thursday from 63.89/$ on Wednesday.

Top Gainers And Losers

Index Trends

F&O Cues

• Nifty January futures trading at 10,810.8, discount of 6.2 points from a premium of 3.3 points.
• January Series: Nifty open interest unchanged; Bank Nifty open interest down 1 percent.
• India VIX ended at 13.9, up 0.7 percent.
• Max open interest for January series at 11,000 Call (open interest at 62.2 lakh, up 24 percent).
• Max open interest for January series at 10,500 Put (open interest at 70 lakh, down 12 percent).

F&O Ban

• In ban: Balrampur Chini, Dish TV, DLF, Fortis, GMR Infra, HCC, HDIL, IFCI, India Cement, Jain Irrigation, Kaveri Seed.
• New in ban: DLF.
• Out of ban: Capital First, Jindal Steel, JP Associates, Reliance Power.

Only intraday positions can be taken in stocks which are in F&O ban. There is a penalty in case of a rollover of these intraday positions.

Put-Call Ratio

• Nifty PCR at 1.64 from 1.75.
• Nifty Bank PCR at 1.10 from 1.59.

Stocks Seeing High Open Interest Change

Fund Flows