All You Need To Know Going Into Trade On April 11

Asian stocks traded mixed Thursday after the Federal Reserve did little to alter investor expectations that interest rates in the U.S. are likely on hold for the remainder of this year.

Shares slipped in Japan and Australia, and were little changed in Seoul. Earlier, the S&P 500 Index posted modest gains as unexpectedly soft inflation boosted the Fed’s wait-and-see approach to rate hikes.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.22 percent to 11,677.50 as of 7:15 a.m.

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BQ Live

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

U.S Market Check

U.S. stocks advanced, while Treasuries held gains after Federal Reserve meeting minutes confirmed the central bank’s dovish tilt on policy this year. The dollar declined.

Commodity Cues

• Brent crude traded 0.11 percent lower at $71.65 a barrel.
• West Texas Intermediate crude slid 0.4 percent to $64.35 a barrel.
• Gold was little changed at $1,308.13 an ounce.

London Metal Exchange

• Aluminium resumed declines after a one-day breather, ended 0.75 percent higher.
• Copper ended a two-day rally, closed 0.35 percent lower.
• Lead ended lower for the second consecutive trading session, closed 1.14 percent lower.
• Tin resumed declines after a one-day breather, ended 0.12 percent lower.
• Zinc halted a two-day decline, ended 0.42 percent higher.
• Nickel ended higher for the third consecutive trading session, up 0.19 percent.

Key Events/Data To Watch This Week

• U.S. banks begin reporting first-quarter earnings, led by JPMorgan and Wells Fargo.
• China inflation data due Thursday may show a pick up in February. New lending and money-supply data will also arrive as early as Thursday.

Indian ADRs

Stocks To Watch

• Wipro to consider share buyback on April 16. This will be the third buyback proposal for the company in three years.
• Jet Airways: SBI modified terms for expression of interest for Jet Airways hours before the deadline ended. The new terms allow interested bidders to take over management control of Jet Airways or restructure existing debt of the company by issuing fresh loans or taking over equity pledged with lenders. The bidding deadline has been extended to April 12. Separately, Indian Oil has stopped fuel supply to Jet Airways in Mumbai, Delhi and Hyderabad airports.
• Welspun Corp received additional pipe orders of 180KMT on a global basis. The company’s order book stands at Rs 1,661 KMT valued at Rs 14,100 crore.
• Reliance Industries clarified that the company neither setup any gas pipeline in 2006 nor has any contracts with any Netherland company for setting up any gas pipeline. Separately, the Indian government has challenged tribunal order freeing Jio from Reliance Communications past dues.
• NMDC March sales down 13 percent at 3.59 million tonne versus 4.15 million tonne. Yearly sales down 10 percent to at 32.39 million tonne.
• Bharti Airtel sets April 24 as rights issue record date.
• TCS partnered with Google Cloud to build digital solutions.
• Kansai Nerolac Paints completed acquisition of Perma Construction Aids.
• Blue Star filed a petition for liquidation of its Oman-based joint venture in the jurisdictional court in Oman.
• NBCC said that it secured orders worth Rs 3,031.7 crore in March.
• Confidence Petroleum India said that it has received license for ten more auto LPG Dispensing Stations taking the number from 186 stations to 196 stations.
• Info Edge increased stake in Gramophone to 37.2 percent for Rs 14 crore.
• Vedanta ruling from U.K. top court opens door to foreign claims: Bloomberg News.
• Tanla Solutions board approved allotment of 2.19 crore shares to Blackstone arm.
• Shoppers Stop opened a new store in Guwahati.
• Oil India named Harish Madhav as CFO with effect from April 10.
• Bank of Maharashtra’s employee share purchase scheme has been fully subscribed. The bank says that it had offered 10 crore equity shares to its employees under the said scheme.
• Wockhardt received U.S. FDA approval for generic version of Dacogen, which is used to treat certain forms of cancer. The product will be manufactured in Hyderabad. The company says it will launch the product in U.S. in a short period of time.
• Tata Steel European Works Council voiced doubts on Thyssenkrupp merger: ANP

Offerings

• State-Run Rail Vikas Nigam’s shares to start trading on the exchanges after IPO gets 182 percent demand at Rs 19 per share.

Pledge Share Details

• Ashok Leyland promoter Hinduja Automotive created pledge of 3.9 crore shares on April 8.
• Adani Transmission promoter group Gautam Adani revoked pledge of 2 lakh shares on April 8.
• Olectra Greentech promoter Trinity Infraventures created pledge of 19 lakh shares on April 9.
• Sanghi Industries promoter Ravi Sanghi created pledge of 15.64 lakh shares on April 8.
• Adani Ports & SEZ promoter group Gautam Adani revoked pledge of 10 lakh shares on April 8.
• Emami promoters revoked pledge of 37 lakh shares on April 8.
• Sun Pharma promoter group revoked pledge of 1.25 crore shares via off-market transaction on April 9.

Trading Tweaks

• Glenmark Pharma ex-date for stock split from Rs 10 to Rs 1.
• SQS India BFSI ex-date for share buyback.
• Sakuma Exports to move into short term ASM Framework.
• Tanla Solutions price band revised to 5 percent.

Who’s Meeting Whom

• Great Eastern Shipping to meet ICICI Prudential on April 11.

Money Market Update

• Rupee closed at 69.12/$ on Wednesday from 69.30/$ on Tuesday.

F&O Cues

April Futures

• Nifty open interest down 1.2 percent, sheds 1.8 lakh shares in open interest.
• Bank Nifty open interest down 1 percent, sheds 23,300 shares.
• Nifty futures premium at 68.6 points versus 70.4 points, closed trading at 11,652.9.
• Bank Nifty futures premium at 175.7 points versus 201 points, closed trading at 29,979.2.

Options

• Nifty PCR at 1.32 versus 1.47 across all series

Nifty Weekly Expiry April 11

• Max open interest at 11,700 call (25.4 lakh shares), 11,800 call (18.6 lakh shares) and 11,500 put (14.2 lakh shares).
• Open interest addition seen at 11,700 call strike, adds 11.8 lakh shares in open interest.
• Open interest shedding seen at 11,850 call (-10 lakh shares), 11,600 put (-5.6 lakh shares).

Nifty Monthly Expiry 25 April

• Max open interest at 12000 call (32 lakh shares) and 11,000 put (28 lakh shares).
• Open interest addition seen for 12,000 call, 11,700 call strikes.

Stocks In F&O Ban

In ban:

• Adani Power
• DLF
• IDBI
• Jet Airways
• PC Jeweller
• Reliance Power
• Wockhardt

Brokerage Radar

UBS on BPCL

• Maintained ‘Buy’ with a price target of Rs 415.
• Retail fuel margins to remain stable despite volatility in crude.
• Focus shifting from refining to petrochemicals.
• Marketing business to remain backbone of growth in near-term.

JPMorgan on Reliance Industries

• Maintained ‘Neutral’; hiked price target to Rs 1,300 from Rs 1,100.
• Downside risk of refining and petchem increases due to weakness in operating environment.
• Jio growth to remain strong, but not large enough to offset weak core energy business.
• Deleveraging and cash inflow via stake sale key event for investors.

Nomura on Wipro

• Maintained ‘Neutral’ with a price target of Rs 270.
• Likely to announce a buyback of $1.7 billion.
• Buyback largely EPS neutral.
• Stock prices to be supportive in near-term.

UBS on Tata Motors

• Maintained ‘Neutral’ with a price target of Rs 200.
• JLR 2018-19 volumes – ex-China growth modest.
• Volume growth to remain weak in 2019-20.
• Medium term outlook for JLR remains challenging.

UBS on Delta Corp

• Maintained ‘Buy’; hiked price target to Rs 340 from Rs 310.
• Continuing on path of strong growth momentum.
• Multiple investments to aid growth in long term.
• Believe there is lack of clarity on Goa gaming policy contours at least in near term.