All You Need To Know Going Into Trade On April 12

Stocks in Asia were mixed in early trading as investors digested the latest signals from the Federal Reserve on the monetary-policy outlook, escalating tensions in the Middle East and a fractious U.S. political landscape.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.3 percent to 10,451 as of 6:55 a.m.

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

Global Cues

• U.S. stocks turned mostly lower and Treasuries rose after minutes from the most recent Federal Reserve meeting showed that officials are leaning toward a slightly faster pace of tightening.

Europe Check

• European stocks retreated as geopolitical risks weighed on markets after U.S. President Donald Trump said relations with Russia have never been worse and warned that America is preparing to attack Syria.

• The euro gained less than 0.1 percent to $1.2362.
• The British pound was little changed at $1.4177.
• Germany’s 10-year yield decreased two basis points to 0.499 percent.
• Britain’s 10-year yield fell two basis points to 1.389 percent.

Asian Cues

• Japan’s Topix index fell 0.2 percent.
• Australia’s S&P/ASX 200 Index was little changed.
• Kospi index rose 0.4 percent.
• Futures on Hong Kong’s Hang Seng added 0.2 percent.
• Futures on the S&P 500 rose 0.3 percent.

Here are some key events coming up this week:

• India to release CPI data for March and industrial production data for February.

Commodity Cues

• West Texas Intermediate crude was steady at $66.87 a barrel, around a three-year high. It surged 2 percent on Wednesday.
• Brent crude traded steady at $72 per barrel, after ending 1.4 percent higher overnight.
• Sugar ended lower for second day at 12.1 cents per pound; down 0.6 percent
• Gold was little changed at $1,352.03 an ounce after jumping 1 percent.

Shanghai Exchange

• Steel snapped three-day winning streak; down 0.1 percent.
• Aluminium snapped three-day winning streak; down 0.3 percent.
• Zinc snapped two-day winning streak; down 0.3 percent.
• Copper declined after rising for two sessions; down 0.6 percent.
• Rubber traded lower for second day; down 0.1 percent.

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Indian ADRs

Earnings To Watch

• Reliance Industrial Infrastructure
• VST Industries

Stocks To Watch

• Tata Motors group global wholesales up 18 percent (YoY) at 1.53 lakh units in March.
• Biocon says Mylan partnered with Fujifilm Kyowa to commercialise Adalimumab biosimilar in Europe.
• IEX signed pact with JEPX to jointly explore opportunities in electricity market.
• Airtel partnered with Balaji Tele unit for digital content: Bloomberg.
• GMR to set up defence manufacturing hub at Krishnagiri, Tamil Nadu.
• RBI slaps penalty of Rs 3 crore on IDBI Bank for non-compliance of NPA norms.
• Indian consortium of BPCL, IOC and HPCL signed MOU with Saudi Aramco to jointly develop and build refinery complex at Ratnagiri, Maharashtra.

Trading Tweaks

• Talwalkars Better Value Fitness Ltd circuit filter revised to 10 percent and shifted to B group.
• Amrutanjan Health Care Limited last trading day before stock split.

Bulk Deals

• Praxis Home Retail: Cedar Support Services sold 10.91 lakh shares or 4.4 percent equity at Rs 200 each.
• Shalimar Paints: Promoter Nalwa Investments sold 9.23 lakh shares or 4.9 percent equity at Rs 150 each.

Kwality

• Letko Brosseau Emerging Markets Equity Fund bought 39.90 lakh shares or 1.7 percent equity at Rs 57.26 each
• Sidhant Gupta sold 40 lakh shares or 1.7 percent equity at an average of Rs 57.11 each.

Mahanagar Gas

• Societe Generale bought 12.92 lakh shares or 1.3 percent equity at Rs 905 each
• Promoter BG Asia Pacific Holdings Pte Ltd sold 83.96 lakh shares or 8.5 percent equity at an average of Rs 906.9 each.

Who’s Meeting Whom

• Cochin Shipyard to meet several fund houses including ICICI Prudential, HDFC MF, Sundaram MF on April 12.
• Cipla to meet GIC private equity on April 12.

Insider Trades

• Deepak Fertilizers promoter Nova Synthetic acquired 10,000 shares on April 9.
• NOCIL promoter Navin Fluorine sold 1 lakh shares on April 6.
• Plastiblends promoter Jyoti V Kabra acquired 12,083 from April 5–6.
• Rajesh Exports promoter Rajesh Mehta acquired 8,000 shares on April 10.
• Power Mech Projects promoter Vignatha Sajja sold 28,528 shares on April 4.
• Lasa Supergenerics promoter Pravin Herlekar sold 36,000 shares from April 5–9.

Rupee

• Rupee closed at 65.31/$ on Wednesday from 64.99/$ on Tuesday.

Top Gainers And Losers

Index Trends

F&O Cues

• Nifty April futures closed trading at 10,425 with a premium of 8 points from 19.3 points.
• April series: Nifty open interest up 5 percent, Bank Nifty open interest down 3 percent.
• India VIX ended at 14.7, up 1.5 percent.
• Max open interest for April series at 10,500 call strike (open interest at 43.8 lakh, up 5 percent).
• Max open interest for April series at 10,000 put (open interest at 45.7 lakh).

F&O Ban

• In ban: Jet Airways, Balrampur Chii, JP Associates
• New in ban: JP Associates

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 1.5 from 1.47.
• Nifty Bank PCR at 1.41 from 1.68.

Stocks Seeing High Open Interest Change

Fund Flows

Brokerage Radar

Goldman Sachs on OMCs

• OMC share prices are close to pricing in zero marketing margins.
• Market worries over subsidy sharing overdone.
• Maintain positive view on OMCs.
• Use the recent weakness to add to positions.

JPMorgan on Cement

• Lack of pricing discipline will continue to weigh on profitability.
• Supply-side risks evolving; To constrain pickup in utilisation levels in near term.
• Competitive intensity to remain elevated.
• Remain constructive on the sector; The current financial and calender year will be challenging.
• Ultratech: Downgraded to ‘Neutral’ from ‘Overweight’; cut price target to Rs 4,000 from Rs 4,750.
• ACC: Downgraded to ‘Neutral’ from ‘Overweight’; cut price target to Rs 1,680 from Rs 2,020.
• Shree Cement: Maintained ‘Overweight’; cut price target to Rs 19,600 from Rs 21,500.
• Ambuja: Maintained ‘Overweight’; cut price target to Rs 270 from Rs 320.
• Grasim: Maintained ‘Overweight’; cut price target to Rs 1,350 from Rs 1,450.

Morgan Stanley on Cadila

• Maintained ‘Overweight’ with a price target of Rs 560.
• Mylan's court case win to facilitate its market entry in gLialda.
• Decision along expected lines, given the earlier Appeals Court ruling.
• Assuming 4-5 player market Cadila could make annual sales of $100-130 million per year.

Nirmal Bang on Uflex

• Initiated ‘Buy’ with a price target of Rs 504; implying a potential upside of 44 percent from the last regular trade.
• Aseptic liquid packaging to boost top-line and margins.
• Focus on packaging business will improve return ratios.
• Packaging business enjoys higher realisations and margins.
• Improving BOPET film industry scenario.
• Expect revenue, operating income and net profit to compound at 11 percent, 13 percent and 16 percent over the fiscal 2017-2020.
• Packaging business to get higher multiple than commoditised film business.

Credit Suisse on Alkem Labs

• Maintained ‘Outperform’ with a price target of Rs 2,275.
• Daman facility Form 483 is concerning.
• High probability of escalation to Warning Letter or Import Alert.
• Form 483 implies understaffing at Daman plant.
• Expect earnings per share to take a hit at 5 percent and 15 percent in case of warning letter and import alert respectively.