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All You Need To Know Going Into Trade On Feb. 20

Stocks in the news, big brokerage calls of the day, complete trade setup and much more! 

Commuters and passengers disembark from a train  in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)  
Commuters and passengers disembark from a train in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)  

Japanese stocks gained after a slide in the yen, while stocks elsewhere in Asia opened with more modest gains as investors scrutinized the infection rate for the coronavirus after another methodology change in China.

Shares in South Korea and Australia opened firmer. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded little changed at 12,142 as of 7 a.m.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.

Here’s a quick look at all that could influence equities today

  • U.S. equities advanced on signs that China may be planning further measures to support its economy as it reels from a virus-induced slowdown and after Federal Reserve officials signalled they aren’t anxious to raise interest rates anytime soon.
  • Oil climbed to the highest level this month as investors weighed supply disruptions in Venezuela and Libya.

Get your daily fix of global markets here.

Earnings Reaction To Watch

  • Ambuja Cements
  • DHFL

Indian ADRs

All You Need To Know Going Into Trade On Feb. 20

Stocks To Watch

  • GAIL clarified that it had received provisional assessment orders towards AGR dues worth Rs 1.83 lakh crore. The company said that telecom dues matter under examination and the amount assessed in the telecom dues order is legally not tenable. The company has filed an application with Supreme Court on Jan. 23 for seeking clarification of judgment passed.
  • Vodafone Idea: Brickwork Ratings downgraded company’s NCDs worth Rs 2,500 crore to BWR BBB- from BWR BB-.
  • Reliance Industries assessing U.S. sanctions implication on Rosneft unit and will comply with the U.S. rules in its dealings with Rosneft. The entire company’s purchase of Venezuela crude oil is reported to and permitted by the U.S. government.
  • NIIT to merge its two wholly-owned arms NIIT Institute of Process Excellence and NIIT Yuva Jyoti, with self. The company has approved the proposal of voluntary liquidation of both the afore-mentioned arms.
  • Sterlite Technologies received orders worth Rs 1,500 crore in new order bookings from European Telecom players. Orders range from optical connectivity solutions and network services.
  • Infibeam Avenues to foray into digital payments business in the U.S.
  • Jain Irrigation Systems expects consensus among lenders regarding the company’s debt resolution to emerge in the next two to three weeks, Anil Jain, managing director said in the firm’s earnings call, according to a Bloomberg report.

Brokerage Radar

Citi on Aurobindo Pharma

  • Maintained ‘Buy’ with a price target at Rs 820.
  • OIA classifaction was a key concern on the street.
  • Expect 10-12 percent annual approvals from this facility.
  • VAI for Unit IV a key positive catalyst.

Citi on Hero MotoCorp

  • Maintained ‘Buy’ with a price target at Rs 3,200.
  • Company is planning to invest Rs 10,000 crore in R&D facilities over the next 5-7 years.
  • After Xtreme and Xpulse, co plan to foray into bigger bikes.
  • Now only three models left on BS-IV
  • The company sees some pre-buying demand ahead of BS-VI

Bulk Deals

Religare Enterprises

  • Resonance Opportunities Fund acquired 25 lakh shares (0.97 percent) at Rs 42 each
  • Axis Bank sold 29 lakh shares (1.12 percent) at Rs 42 each

Trading Tweaks

  • Pioneer Distilleries to move into ASM Framework
  • Pricol, ARSS Infrastructure Projects to move into short term ASM Framework
  • Omax Autos, Alphageo, Apollo Pipes, Shankara Building Products, TD Power Systems to move out of short term ASM Framework
  • IRCTC price band revised to 10 percent
  • Den Networks, NRB Industrial Bearings, Vasundhara Rasayans, Mahamaya Steel Industries price band revised to 5 percent

Who’s Meeting Whom

  • MCX to meet Morgan Stanley, Jeetay Investments from Feb. 20-26
  • Bharat Forge to meet GIC Singapore and IDFC MF on Feb. 20
  • Dixon Technologies to meet Carmignac, Nikka AMC and Mondrian Investment Partners from Feb. 20-25.
  • BSE to meet Centrum PMS on Feb. 20
  • Cipla to meet Aditya Birla Sun Life MF, Comgest S.A. and Skerryvore AMC from Feb. 20-24
  • Prince Pipes & Fittings to meet HDFC Life Insurance, Invesco MF and other investors on Feb. 20

Money Market Update

  • The rupee ended weaker at Rs 71.56 against the dollar on Wednesday versus Rs 71.29 against the dollar on Monday (Money markets were closed on Feb. 19).

F&O Cues

Index Futures

  • Nifty February futures closed at 12,142.7, premium of 16.8 points
  • Nifty February futures open interest down 3.5 percent, sheds 4.3 lakh shares in open interest
  • Nifty Bank February futures closed at 30,856.4, premium of 18 points
  • Nifty Bank futures open interest down 4 percent, sheds 47,500 shares in open interest

Nifty Weekly Expiry: Feb 20

  • Max open interest on call side at 12,200 (24.9 lakh shares)
  • Max open interest on put side at 12,100 (24.5 lakh shares)
  • Open interest addition seen at 12,100P (+19.5 lakh shares), 12,050P (+11.6 lakh shares), 12,000P (+10.8 lakh shares)
  • Open interest shedding was seen at 12000C (-11.2 lakh shares)

Nifty Monthly Expiry: Feb 27

  • Max open interest on call side at 12,300 (24 lakh shares)
  • Max open interest on put side at 12,000 (42 lakh shares)

Stocks In F&O Ban

  • NCC
  • Yes Bank
All You Need To Know Going Into Trade On Feb. 20