All You Need To Know Going Into Trade Today
The SGX Nifty hints at a flat opening for the Indian markets.
It’s been a muted day of trade in Asia, as geopolitical tension weighs on the region after North Korea conducted fresh missile tests on Tuesday. Investors chose commodities like gold over equity, considered safer investment options. The SGX Nifty, one of the key indicators on how the Indian markets could open is also trading flat right now. Here’s a quick look at all that could influence equities on Wednesday.
Global Market Cues
- U.S. markets were shut overnight on account of Independence Day
- European stocks fell for the fifth time in six sessions on thin trading volume.
- U.S. Federal Reserve will release the minutes from its June 13-14 policy meeting, at which officials raised interest rates.
Futures & Options Cues
- Put writers have become more aggressive with the Put Call Ratio rising to 1.21 from 1.18.
- Put writers continued to write at the 9500-9700 levels.
- Nearly 4.7 lakh shares were added to the 9500 Put while 9600 Put saw open interest addition of 5.6 lakh shares.
- The Nifty premium expanded to 10.7 points from the earlier 6.9 points indicating accumulation in futures positions.
- The maximum open interest currently is at the 9400 Put which give an indication that the Nifty is seeking support at that level.
- Based on these cues, the downside for the Nifty seems limited and a rally above the 9700 mark looks possible.
Futures & Options Ban
JP Associates continued to be only stock in F&O ban.
Fund Flows
- Selling by foreign portfolio investors continued.
- FPIs sold shares worth Rs 834 crores in the cash market on Tuesday. In fact, foreign investors have sold in shares worth Rs 3,400 crore in the last five days.
- In contrast, domestic institutional investors have been active buyers for the last five days, buying shares worth Rs 3,200 crore in the cash market.
- FPIs were net buyers to the tune of Rs 709 crore in the derivatives market.
Index Play
- Nifty Pharma is worst performing Index so far this month with losses of over 1 percent.
- Nifty FMCG and Metal Index gained 2-3 percent this month.
Open Interest Addition
- Shriram Transport: Open interest addition of 20 percent on the long side
- Just Dial: Open interest addition of 16 percent on the short side
- Hero MotoCorp: Open interest addition of 16 percent on the short side
- Bata India: Open interest addition of 10 percent on the long side
- Reliance Industries: Open interest addition of 6 percent on the long side
Corporate Action
- Dabur, Zee Entertainment and Greenply Industries will host their annual general meetings.
- Motherson Sumi will trade ex bonus (1:2)
Brokerage Radar
Bajaj Finance: Credit Suisse raised its target price on Bajaj Finance from Rs 670 to Rs 960 but maintained an ‘underperform’ rating on the stock. The target price is also at a 30 percent downside to the current market price. The non banking financial company’s rising risk portfolio prompted the brokerage house to turn cautious. The unsecured loan portfolio has gone up from 45 percent to 55 percent in four years, said the brokerage house in a research note.
Camlin Fine Sciences: Phillip Capital sees a 40 percent upside with a target price of 120, after analysing the company’s annual report.
Dhanuka Agritech: HSBC has raised the target price to Rs 890 from earlier Rs. 857.
Bata India: Axis Capital has recommended a ‘buy’ rating on the stock with a target price of Rs 550, after analysing its annual report.
Titan Industries: Multiple brokerages have raised their target price on the company after the management gave an update on its operations on Tuesday. JPMorgan said it remains ‘overweight’ on the stock. Goldman Sachs has raised the target price by Rs 5 to Rs 552.
Initiations
Jubiliant Lifesciences: Motilal Oswal initiates coverage with a target price of 905, an upside of 31 percent over its current market price
Persistent Systems: Morgan Stanley initiates coverage with a target price of 840, an upside of 25 percent over its current market price
Alembic Pharma: India Infoline Ltd. initiates coverage with a target of 550, an upside of 7 percent over its current market price
Top Performers This Month
- Relaxo Footwear: Up 12.4 percent
- Deepak Fertiliser: Up 11.4 percent
- Triveni Turbines: Up 11.3 percent
- Videocon Industries: Up 10.2 percent
- Shilpi Cables: Up 10.1 percent
Worst Performers This Month
- JP Associates: Down 10.6 percent
- Religare Enterprises: Down 7.1 percent
- JMT Auto: Down 7 percent
- GVK Power: Down 7 percent
- GMR Infrastructure: Down 5.6 percent
Bulk Deals
- Sucharitha Reddy sells 3.2 lakh shares in AB Money. She owned 9.9 percent stake in the company before the stake sale.
Stocks To Watch
- ABC Bearings’ board of directors have approved a merger with Timken India subject to approval by the NCLT
- Raymond targets 7-9 percent revenue growth in the financial year 2017-18 with margin expansion of 100-150 basis points, the company said at its investor meet o Tuesday. Work on layouts, plans and regulatory work for Thane land is ongoing, the company added
- Aditya Birla Nuvo will no longer be available for trading as deal with Grasim kicks off
- ICICI Prudential expressed interest in taking over Sahara Life’s insurance business, according to a stock exchange notification
- McNally Bharat has received a construction order worth Rs 43.49 crore from Delhi Metro Rail Corporation, according to the company’s exchange filings