A screen displays a financial data graph. (Photographer: Alex Kraus/Bloomberg)

All You Need To Know Going To Trade On July 2

Stocks in Asia kicked off the second half of 2018 in a mixed fashion, while oil declined and the euro came under pressure over German political concerns.

Japanese and South Korea shares edged lower and Australia’s main index was little changed. Hong Kong is closed for a holiday. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.1 percent higher at 10,699 as of 7:10 a.m.

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BQ Live

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

U.S. Market Check

  • Stocks eked out a gain amid late selling to cap a quarter that’s seen equities whipsawed by escalating trade tensions and central-bank hawkishness.

Europe Check

  • European shares rose, paring their second straight monthly loss, as global markets took a breather amid global trade tensions.

Asian Cues

  • Futures on the S&P 500 rose less than 0.1 percent as of 9:02 a.m.
  • Japan’s Topix index lost 0.3 percent.
  • South Korea’s Kospi dropped 0.1 percent.
  • Australia’s S&P/ASX 200 Index added less than 0.1 percent.
  • The yen was little changed at 110.74 per dollar.

Commodity Cues

  • West Texas Intermediate crude slipped 0.9 percent to $73.47 a barrel.
  • Brent crude traded 1.1 percent lower at $78.57 per barrel.
  • Gold futures added 0.1 percent to $1,253.44 an ounce.

Shanghai Exchange

  • Steel traded higher for third day; up 0.3 percent.
  • Aluminium traded lower for second day; down 0.4 percent.
  • Zinc traded lower for second day; down 0.7 percent.
  • Copper traded lower for second day; down 0.1 percent.
  • Rubber traded higher; up 0.3 percent.

Stories You Might Have Missed

Stocks To Watch

  • IRDAI approved LIC’s investment plan in IDBI Bank.
  • Fortis said that SEBI has ordered a forensic audit in matter of that company
  • TCS said promoters to participate in buyback.
  • Bosch plans to sell $1.5 billion packaging machines division.
  • Thermax won Rs 340 crore order from an Indian steel major.
  • Bharat Financial Inclusion completes second securitization transaction in 2018-19.
  • Bharti Airtel Shareholders, Unsecured Creditors To Meet July 30; to consider Telesonic networks deal.
  • Punjab Chemicals & Crop protection cleared its entire outstanding debt with Allahabad Bank.
  • Dilip Buildcon received sanction letter from NBFC and nationalized banks for their 3 HAM projects worth Rs 3772 crore.
  • Radha Madhav Corporation approved allotment of 1.91 crore convertible warrants to Promoter and Non-Promoter entities.
  • Tata Steel and Thyssenkrupp sign 50:50 JV agreement
  • Reliance Industries acquired NASDAQ listed Radisys Corporation for $75 million.
  • Zydus Cadila received U.S. FDA approval to market Triamterene and Hydrochlorothiazide tablets.
  • Endurance Tech to discontinue manufacturing at Manesar plant with effect from Aug. 31.
  • Coal India June production at 44.88 million tonnes and sales at 49.59 million tonnes.
  • ONGC board approved restructuring of group companies.
  • Aviation turbine fuel prices cut by 2.7 percent to Rs 69,33 per kilo-litre. This is the first price cut in last 12 months.

June Auto Sales Data

  • Tata Motors’ June sales rose 54 percent year-on-year to 56,773 units and exports rose 50 percent year-on-year to 5,246 units.
  • Maruti Suzuki’s June sales rose 36.3 percent year-on-year to 1.44 lakh units.
  • M&M’s June sales rose 20 percent year-on-year to 45,155 units.
  • Eicher Motors’ Royal Enfield sales rose 18 percent year-on-year to 74,477 units.

Data To Watch

  • India Nikkei manufacturing PMI for June to be released today.
  • Auto companies to report its monthly sales for June.

Bulk Deals

  • Talwalkars Lifestyles: Gurukrupa Capital Investments bought 2 lakh shares at Rs 149.87 each.

Adani Ports

  • Camas Investments PTE bought 2.70 crore shares or 1.3 percent equity at Rs 369.65 each.
  • SB Adani Family Trust sold 2.70 crore shares or 1.3 percent equity at Rs 369.65 each.

Minda Corp

  • Wasatch International Opportunities Fund bought 21 lakh shares or 0.9 percent equity at Rs 173.43 each.
  • KR Handloom Pvt Ltd sold 30.3 lakh shares or 1.3 percent equity at Rs 173.45 each.

New Listings

  • Fine Organic Industries to be listed on exchanges today. Issue price of Rs 783 per share.
  • RITES to be listed on exchanges today. Issue price of Rs 185 per share.

Indian ADRs

Who’s Meeting Whom

  • Mahindra Lifespace Developers to meet ICICI Prudential Life Insurance on July 4.

Insider Trades

  • Century Plyboards promoters acquired 14,495 shares on June 28.
  • KEC International promoter acquired 45,434 shares from June 27 – 28.
  • Man Infraconstruction promoter Vatsal Shah acquired 40,101 on June 28.
  • Laurus Labs promoter Dr Satyanarayana Chava acquired 3 lakh shares from June 26 – 27.

(As reported on June 29)

Trading Tweaks

  • Adani Green Energy Ltd circuit filter revised to 20 percent and shifted to B group.
  • Tree House Education & Accessories Ltd circuit filter revised to 5 percent.
  • Dish TV open offer for 26 percent stake at Rs 76 per share open from July 2 – 13.
  • Electrosteel Steels last trading day under T group.

Money Market Update

  • Rupee ended 68.47 a dollar on Friday versus 68.79 per dollar on Thursday.

Top Gainers And Losers

F&O Cues

  • Nifty July Futures closed trading at 10,694.8, discount of 19 points versus 18 points.
  • July series-Nifty OI up 5 percent and Bank Nifty OI was unchanged.
  • India VIX ended at 12.9, down 7.2 percent.
  • Max OI for July series at 11,000 Call, OI at 33.2 lakh, OI up 11 percent.
  • Max OI for July series shifts to 10,600 Put, OI at 45.6 lakh, OI up 30 percent.

F&O Ban

  • None

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 1.47 versus 1.43.
  • Nifty Bank PCR at 0.83 versus 0.76.

Active Stock Futures

Fund Flows

Brokerage Radar

HDFC Securities on GAIL (India)

  • Reinitiated ‘Buy’ with a price target of Rs 360.
  • Indian gas sector looks attractive.
  • Unified tariff will be the next trigger.
  • Government policies to boost gas consumption.
  • De-bundling of marketing business is not a concern.
  • LPG and petchem business to benefit from higher oil prices.

Angel Broking on Shriram Transport Finance

  • Initiated ‘Buy’ with a price target of Rs 1,760.
  • Multiple AUM growth levers; expect compounded growth rate of 20 percent over FY18-20.
  • Levers: stronger CV volume, macro recovery and improving rural market.
  • Stabilizing asset quality to lead to lower credit costs.
  • Expect limited pressure on NIM despite increase in bond yield.

Anand Rathi on Greenply Industries

  • Initiated ‘Hold’ with a price target of Rs 280.
  • Highly dependent on MDF for growth.
  • Expect revenue, operating income and net profit to compound at 20 percent, 20 percent and 19 percent respectively over the fiscal 2018-2020.
  • More outsourcing in plywood to aid revenue growth.
  • Raw material security to aid in margin expansion.

Investec on Tata Steel

  • Maintained ‘Buy’; cut price target to Rs 741 from Rs 777.
  • Tata Steel-Thyssen sign definitive agreement with lower economic interest for Tata’s.
  • Major overhang is past, though bloated Balance Sheet remains a concern with pending Bhushan Power deal.
  • Price target lowered to factor reduced economic interest and lower Europe profitability.

Citi on Sun TV

  • Maintained ‘Buy’ with a price target of Rs 1145, implying a potential upside of 47 percent form the last regular trade.
  • Expect steady advertising revenue.
  • Expect strength in subscription revenues to sustain.
  • Earnings delivery expected to be healthy in near term.
  • Pullback offers enhanced opportunity.

CLSA on Tata Steel

  • Maintained ‘Buy’; cut price target to Rs 855 from Rs 920.
  • Change in economic interest to have limited value impact.
  • Signing JV agreement should assuage a key uncertainty.
  • Continue to like Tata given strong margin outlook & tightening steel demand-supply in India.
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