Employees pass though a security check at the National Stock Exchange (NSE) in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)  

All You Need To Know Going Into Trade On September 01

Asian stocks traded sideways as investors await a U.S. jobs report for clues on the Federal Reserve’s policy-tightening path due Friday ahead of a long weekend in America.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, was little changed at 9,937 as of 6:50 a.m.

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

Global Cues

  • U.S. stocks rose for a fourth day and the dollar strengthened after data bolstered optimism that the American economy is on firm footing.
  • The S&P 500 Index pushed above its average price for the past 50 days, overcoming early weakness sparked by a Twitter post from President Donald Trump on North Korea.
  • European stocks gained with Asian shares on optimism that the anxiety after a missile launch this week was receding.

Asian Cues

  • Japan’s Topix index swung between gains and losses, while the Nikkei 225 Stock Average added 0.2 percent. The Kospi index in South Korea and Australia’s main gauge were flat.
  • Hang Seng Index futures were little changed.

Commodity Cues

  • West Texas Intermediate crude fell 0.7 percent to $46.91 a barrel after gaining 2.76 percent on Thursday.
  • Gold was little changed at $1,321.21 an ounce after capping its best month since January.
  • ICE Sugar gained 3.52 percent to 14.40 cents a pound

Shanghai Exchange

  • Steel trades higher after falling for two consecutive sessions; up 1.82 percent
  • Aluminium extends gains to third consecutive session; up 1.31 percent
  • Zinc snapped two day losing streak; up 1.23 percent
  • Copper resumes 5 day gaining streak after a breather; up 0.04 percent

Among other key events this week:

  • Various Asia PMIs (including India), also those for Germany, France U.K. and the euro zone ahead of the European Central Bank rates decision next week.
  • Capital investment by Japanese companies fell well short of expectations in the second quarter. South Korea’s GDP rose 2.7 percent in the second quarter from a year earlier.
  • U.S. non-farm payrolls data for August is due Friday, along with unemployment and earnings numbers, and the Markit U.S. PMI. U.S. employment probably increased by 180,000 in August, in line with this year’s monthly average, while the jobless rate held at 4.3 percent, economists forecast.
  • Singapore and Malaysia are closed for holidays.

Indian ADRs

 All You Need To Know Going Into Trade On September 01

Results Today

  • D Link
  • Garware Wall Ropes
  • Gravita India
  • Ricoh India
  • Venus Remedies
  • Yash Papers

Results Announced

Kridhan Infra (Q1FY18 YoY)

  • Revenue up 28 percent to Rs 185.3 crore
  • EBITDA unchanged at Rs 25 crore
  • Margin narrowed to 13.5 percent from 17.4 percent
  • Profit fell 7.8 percent to Rs 10.7 crore

Rane Holdings (Q1FY18 YoY)

  • Revenue flat at Rs 536 crore
  • EBITDA down 2.2 percent to Rs 49 crore
  • Margins largely flat at 10 percent from 10.2 percent
  • Profit grew 120 percent to Rs 33 crore (Exceptional gain of Rs 15.6 crore)

Stocks To Watch

  • Aditya Birla Capital will list on the stock exchanges after being demerged from Grasim-AB Nuvo
  • Grasim in focus as it owns 57.3 percent stake in AB Capital
  • Dr Reddy in focus as Indivior loses rulings over 3 patents for Suboxone drug
  • AB Money in focus as AB Capital owns 75 percent stake in company
  • Indian automakers in focus as they will report August sales
  • Just Dial completed buyback of 9.5 lakh shares (1.4%) at Rs 390.44 each
  • ABB India to install solar inverters at 750 railway stations in India
  • V-Guard acquired 7.82 lakh shares in Guts Electro-Mech Ltd. Holding increases to 74 percent post the acquisition
  • Jindal Saw sold 47.65 lakh shares (6%) in Jindal ITF Ltd. Holding reduces to 51 percent post sale.
  • Strides Shasun subsidiary Arrow Pharma acquires Amneal Pharmaceuticals for a consideration of AUD 17 million
  • IRB Infrastructure Developers Board approves sale of IRB Pathankot Amritsar Toll Road to IRB InvIT Fund for Rs 1569 crore
  • Manappuram Finance looking to sell stake in company (VCCircle)
  • Dhampur Sugar shareholders approve cap on commission paid to promoters to Rs 15 crore
  • Alembic Pharmaceuticals receives EU GMP Certificate for its Panelav facility
  • Shankara Building Products starts new processing facility in Secunderabad
  • Allahabad Bank revises overnight MCLR to 7.5 percent from 8 percent
  • APL Apollo to finalise the availment of technical know-how and assistance from Foreign Company through joint venture
  • LIC raises stake in NTPC from 11.15 percent to 14.24 percent
  • Government appoints N Baijendra Kumar as CMD of NMDC
  • Government mulling to set up panel to select CIL chairman

Bulk Deals

Aarvee Denims & Exports: Porinju Veliyath buys 1.81 lakh shares (0.8%) at Rs 36 each.

BEML: Merrill Lynch Singapore bought 2.64 lakh shares (0.6%) at Rs 1763.52 each

Granules India:

  • UBS Principal Capital Asia Ltd bought 12.25 lakh shares (0.5%) at Rs 128.13 each
  • Swiss Finance Corporation (Mauritius) sold 12.25 lakh shares (0.5%) at Rs 128.13 each

VRL Logistics:

  • Reliance MF buys 20 lakh shares (2.2%) at Rs 339.99 each
  • Promoter Vijay Sankeshwar sold 20 lakh shares (2.2%) at Rs 340 each

Gravita India:

  • SBI Small and Midcap Fund bought 7.9 lakh shares (1.2%) at Rs 114.11 each
  • LTS Investment Fund sold 12.94 lakh shares (1.9%) at Rs 114.04 each

Nath Bio-Genes: Asset Reconstruction Company (India) sold 1 lakh shares (0.6%) at Rs 389.6 each

Career Point: Fidelity Far East Fund sold 1.09 lakh shares (0.6%) at Rs 120.1 each

Pressman Advertising:

  • Promoters Pressman Realty sold 5.8 lakh shares (2.5%) at Rs 64 each
  • Promoter Pressman Properties sold 6.60 lakh shares (2.8%) at Rs 62.56 each
  • Pradeep Kumar Saraf bought 11.60 lakh shares (4.9%) at Rs 63 each

Sarla Performance Fibres:

  • Promoter Satidham Industries bought 14 lakh shares (1.7%) at Rs 46.99 each
  • Hindustan Cotton Co sold 14 lakh shares (1.7%) at Rs 46.98 each

Economic Data

  • India's Q1 GDP at 5.7 percent from 6.1 percent in the previous quarter
  • India's Q1 GVA unchanged at 5.6 percent in the previous quarter

Top Performers In August

  • PC Jeweller: Up 41.25 percent
  • Bombay Dyeing: Up 38.12 percent
  • Future Retail: Up 32.41 percent
  • Asahi India Glass: Up 29.41 percent
  • VIP Industries: Up 28.26 percent

Worst Performers In August

  • Religare Enterprises: Down 52.19 percent
  • Nitin Fire Protection: Down 40.65 percent
  • J Kumar Infraprojects: Down 33.85 Percent
  • HDIL: Down 27.33 percent
  • Natco Pharma: Down 25.74 percent

Index Trends

 All You Need To Know Going Into Trade On September 01

F&O Cues

  • Nifty Rollover at 58 percent Vs 72 percent (average of last 3 series)
  • Nifty August futures expire at 9918, Nifty down 1 percent in August series
  • Nifty Sep Futures trading at a premium of 19 points from 28 points
  • September series highest Call base at 10000 (open interest at 28lk)
  • September series highest Put base at 9700 (open interest at 38lk)
  • Call strikes 9900, 10000, 10100, 10,200 see open interest addition
  • Put strikes 9700 & 9900 see max open interest addition

F&O Ban

  • In Ban: JSW Energy
  • Only intraday positions can be taken in stocks which are in F&O ban, in case of rollover there is a penalty

Put-Call Ratio

  • Nifty PCR at 1.33 from 1.19
  • Nifty Bank PCR at 1.15 from 0.89

Stocks Seeing High Open Interest Change

  • Hindustan Zinc sees open interest addition of 46 percent on long side
  • Just Dial sees open interest addition of 46 percent on long side
  • Arvind sees open interest addition of 29 percent on long side
  • Cholamandalam Fin sees open interest addition of 27 percent on short side
  • Equitas sees open interest addition of 23 percent on long side
  • DCB Bank sees open interest addition of 20 percent on short side
  • M&M sees open interest addition of 19 percent on short side

Fund Flows

 All You Need To Know Going Into Trade On September 01

Brokerage Radar

B&K on Vakrangee

  • Initiate coverage with Buy and a target of Rs 600
  • Expect revenue/earnings to grow 26 percent/22 percent CAGR between FY17-20
  • Expect Vakrangee Kendras to reach 75,000 by FY20
  • Scaling down legacy business to improve days sales outstanding