A security guard stands at the entrance to the atrium of the National Stock Exchange in Mumbai (Photographer: Dhiraj Singh/Bloomberg) 

All You Need To Know Going Into Trade On November 16

The retreat in Asian stocks from historic highs triggered by concerns about outsized gains took a pause on Thursday.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, was little changed at 10,147 as of 7:00 a.m.

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DayBreak

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

Global Cues

  • The S&P 500 notched its fourth drop in five days, retreating from near session highs in the final half hour of trading on a report that a key Republican opposes the Senate’s latest tax bill.
  • Energy shares led declines as crude continued its slide toward $55 a barrel.
  • A renewed commodities slump overshadowed data showing the U.S. consumer remains robust, while inflation data helped boost bank shares.
  • The Bloomberg Dollar Spot Index fell 0.1 percent, after touching the lowest in almost four weeks.
  • The Stoxx Europe 600 Index sank 0.6 percent, after hitting the lowest in seven weeks with its sixth consecutive decline.

Asian Cues

  • The Topix index swung between gains and losses. The Nikkei 225 Stock Average added 0.4 percent.
  • Australia’s S&P/ASX 200 Index was flat.
  • South Korea’s markets will open an hour later because of national exam day.
  • Hong Kong’s Hang Seng Index futures climbed 0.4 percent.
  • Futures on the S&P 500 Index were little changed. The underlying gauge fell 0.6 percent Wednesday.

Here are some key events investors are watching this week:

  • Bank of England officials address the bank’s future on Thursday, while European Central Bank chief Mario Draghi speaks Friday.
  • A string of Fed appearances may further illuminate the FOMC’s commitment to a December hike.

Commodity Cues

  • West Texas Intermediate crude was steady at $55.30 a barrel after dropping 0.7 percent.
  • Gold was little changed at $1,278.74 an ounce.
  • Sugar ended lower for second day at 15.09 cents a pound; down 0.07 percent

Shanghai Exchange

  • Steel trades lower for second day; down 1.23 percent.
  • Aluminium snaps two-day losing streak; up 0.36 percent.
  • Zinc trades lower for second day; down 0.54 percent .
  • Copper trades lower for second day; down 0.45 percent.
  • Rubber trades lower for second day; down 1.55 percent .

Indian ADRs

All You Need To Know Going Into Trade On November 16

Earnings To Watch

  • Ahluwalia Contracts
  • Gati
  • Honda Siel
  • Bharat Matrimony

Results Announced

Wonder La (Q2, YoY)

  • Revenue up 1.2 percent at Rs 49.4 crore.
  • Net profit down 37.8 percent at Rs 2.3 crore.
  • EBITDA up 20.65 percent at Rs 11.1 crore.
  • Margin at 22.5 percent versus 18.9 percent.

CARE Ratings (Q2, YoY)

  • Revenue up 12.3 percent at Rs 91 crore.
  • Net profit up 2 percent at Rs 48.3 crore.
  • EBITDA up 11 percent at Rs 66.5 crore.
  • Margin at 73.1 percent versus 74.1 percent.

New India Assurance (Q2, YoY)

  • Gross written premium up 12.2 percent at Rs 6,489.2 crore.
  • Profit up 187.5 percent at Rs 748.3 crore.
  • Combined ratio improved to 112.5 percent.
  • Solvency ratio stood at 2.24 from 2.04.

TD Power Systems (Q2, YoY)

  • Revenue up 19.4 percent at Rs 126 crore.
  • Net profit at Rs 5 crore.
  • EBITDA at Rs 9 crore.
  • Margin at 7.1 percent versus 1.4 percent.

Stocks To Watch

  • Reliance Communication said it is not making any payment to lenders for time being.
  • CRISIL to buy entire stake in Pragmatix Services for Rs 56 crore.
  • NHAI terminates agreement with Atlanta for Gujarat project.
  • RBL Bank acquired additional 2.08 percent stake in Swadhaar Finserve, increasing its holding to 60.48 percent.
  • Manaksia Industries to set up wholly-owned subsidiary in India and Tanzania for its agro-commodities business.
  • ONGC said that Venezuela’s state-run PDVSA is committed to the arrangement with ONGC Videsh.
  • Seamec approved scheme of demerger of EPC and Vessel division of HAL offshore into itself.
  • Suzlon eyeing $250 million from stake sale in unit (Mint)
  • Federal Bank in the process of divesting 26 percent stake in its fully-owned NBFC arm Fedfina (Financial Express)

IPO

  • 5Paisa Capital list on exchanges. IIFL demerged ‘5Paisa Digital Undertaking’ into its fully-owned subsidiary 5Paisa Capital in 2016.

Bulk Deals

Vadilal Industries

  • Radhika Sharma bought 40,000 shares (0.6 percent) at Rs 1040.2 each
  • Avvanti advisors sold 36,611 shares (0.5 percent) at Rs 1040 each

Indo Count Industries: Param Value Investments bought 10 lakh shares (0.5 percent) at Rs 116.9 each

Control Print: India Opportunities Growth Fund sold 84,000 shares (0.5 percent) at Rs 439.32 each

CMM Infra Projects: Systematix Shares & stocks sold 1.14 lakh shares (net) at Rs 61.28 each

Trading Tweaks

  • Tube Investments shifted to B group. Circuit filter revised to 20 percent.
  • Kinetic Engineering circuit filter revised to 10 percent
  • Khadim India added to S&P BSE IPO Index.

Who’s Meeting Whom?

  • Indian Hotels to meet T Rowe, Wellington and other investors on Nov.16.
  • GE Shipping to meet Serica Advisors on Nov. 16.
  • Crompton Greaves to meet New Silk Road investment on Nov. 16.
  • Suzlon to meet IDFC Securities on Nov. 17.
  • Mahanagar Gas to meet DNCA Investments on Nov. 21 and Nothcape Capital on Nov. 27.

Rupee

  • Rupee closed at 65.21/$ on Wednesday from 65.42/$ on Tuesday

Top Gainers And Losers

All You Need To Know Going Into Trade On November 16

Index Trends

All You Need To Know Going Into Trade On November 16

F&O Cues

  • Nifty November futures closed at 10,154, premium of 36 points versus 47.6points.
  • November contracts: Nifty open interest down 2 percent; Bank Nifty open interest down 1 percent.
  • India VIX closed 0.7 percent higher at 14.2.
  • Max open interest for November series at 10,500 Call (open interest at 58.2lakh, up 3 percent).
  • Max open interest for November series at 10,200 Put (open interest at 45.4 lakh, down 1 percent).

F&O Ban

  • In ban: DHFL, Indiabulls Real estate, India Cement, Infibeam, Jet Airways, JP Associates, JSW Energy, Just Dial. Kaveri Seed, Reliance Communications, Reliance Capital.
  • New in ban: Jet Airways, Reliance Communications, Reliance Capital.
  • Out of ban: HDIL, Jain Irrigation.

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

Put-Call Ratio

  • Nifty PCR at 1.13 from 1.18
  • Nifty Bank PCR at 0.94 from 0.99

Stocks Seeing High Open Interest Change

All You Need To Know Going Into Trade On November 16

Fund Flows

All You Need To Know Going Into Trade On November 16

Brokerage Radar

CLSA on Jubilant Foodworks

  • Maintained ‘Buy’ with price target of Rs 2,200.
  • Menu price hike of around 6 percent effected.
  • Need to watch out for customer reactions to the menu price change.
  • Price change varies across portfolio with prices of entry-level seeing almost no change.
  • With lower GST rate on output end-prices dropped 11 percent, which should help volumes.

Macquarie on Ceat

  • Maintained ‘Outperform’ with price target of Rs 2,200.
  • Margins improved in the previous quarter on the back of volume growth, lower rubber prices and cost-control.
  • Expect volume growth to improve further in the second half, led by restocking by the trade channel.
  • Expect margins to improve on benign rubber prices, favourable mix and an increase in utilisation.
  • Expect Earnings per share to grow at a compound annual growth rate of 15 percent over the financial years till March 2020.