ADVERTISEMENT
All You Need To Know Going Into Trade On April 8
Stocks in the news, big brokerage calls of the day, complete trade setup and much more!
08 Apr 2020, 07:35 AM IST 
An employee works on a laptop computer in an office area at the Amazon.com Inc. office campus in Hyderabad, India. (Photographer: Dhiraj Singh/Bloomberg)
The two-day rally in Asian markets came to a halt on Wednesday morning after U.S. equities gave up strong gains to end lower on Tuesday. Investors are weighing signs of a slowing rate of the Covid-19 spread against more fatalities.
The dollar held its losses while the offshore yuan traded near a three-week high. Treasuries too declined on Tuesday.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 1.37 percent to 8,704 as of 6:55 a.m.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.
Here’s a quick look at all that could influence equities today
- Markets in Japan, Hong Kong and Australia are declining while the U.S. futures edged higher on Wednesday morning.
- Benchmark indices in the U.S. gave up gains of as much as 3.5 percent to end lower. The S&P 500 briefly reached a 20 percent gain from its March low on Tuesday.
- New York recorded the highest death toll in a single day, yet the number of new cases slowed. Several European nations are planning to ease restrictions as well.
- The Australian dollar has declined after S&P cut Australia's credit rating outlook to negative from stable.
- Yield on the 10-year treasury rose four basis points to 0.71 percent.
- West Texas Intermediate crude rose 4.7 percent to $24.7 per barrel after a 7.5 percent fall on Tuesday.
Get your daily fix of the global markets here.
Stocks To Watch
- SBI: Reduces MCLR by 35 basis points across all tenors with effect from April 10. One-year MCLR to be 7.40 percent. Bank has also reduced interest in savings bank deposits by 25 basis points with effect from April 15.
- Aurobindo Pharma: PTI reports that a class action suit has been filed against some drug manufacturers, including Aurobindo and Emcure in a U.S. court for allegedly concealing facts about a cancer-causing agent N-nitrosodimethylamine's presence in Metformin medicine.
- Deepak Nitrite: Got approval from Vadodara District Industries Commissionerate to commence production of 2 Ethyl Hexyl Nitrate which is one of the essential raw material used in the refining process of diesel oil produced by various refineries. The company applied for this license to ensure the continued supply of the afore-mentioned product to the refinery companies during the lockdown.
- Hero MotoCorp: Extends duration of free service, warranty and AMC services (expiring between March 21 to April 30) till June 30.
- JSW Energy: CCI approved the acquisition of 100 percent shareholding of GMR Kamalanga Energy.
- Embassy Office Parks REIT: Sponsor Embassy Property Developments created a pledge of 8.13 crore units (10.54 percent) in favour of Catalyst Trusteeship for a period of 10 years. The aforementioned sponsor has a 14.97 percent stake in the REIT.
- Advanced Enzyme Technologies: Continues to carry on production in its manufacturing units in India with the permission of the local authorities and the operations at its plants have been scaled down with reduced capacity utilization as there are disruptions in international markets as well.
- ABB India: CCI approved the acquisition of 80.1 percent stake by Hitachi in its power grid business.
- Galaxy Surfactants: Has partially resumed operations of its plant from April 6.
- VA Tech Wabag: Gets 5-year operation and maintenance contract in AMAS sewage treatment plant in the Kingdom of Bahrain for Rs 90 crore.
Brokerage Radar
Elara Capital On JSW Energy
- Upgrade to buy from accumulate
- Price target cut to Rs 63 from Rs 76
- Well-placed for inorganic growth courtesy strong balance sheet
- Recent acquisitions of stressed assets look attractive
- Change in business mix to long-term PPA provides stability
Elara Capital On OMCs
- Valuation support from marketing to partially offset refining loss
- Strong retail margin to ensure 10-17 percent RoE range
- Lower FY21/22 EPS estimates in the range of 34-67 percent on lower refining margins and marketing sales volumes
- Upgrade BPCL to buy; price target cut to Rs 379 from Rs 555
- Maintain buy on Indian Oil; cut price target to Rs 117 from Rs 153
- Maintain buy on HPCL; cut price target to Rs 262 from Rs 452
IDBI Capital On Paints
- Superior bet on wealth creation versus consumer staples
- No risk of wealth destruction globally despite paint industry reaching maturity
- Tough for new entrants / incumbents to compete only on attributes of quality or price
- Prudent capital allocation to drive revenue growth
- Initiate coverage on Asian Paints with buy rating and price target of Rs 2,096
- Initiate coverage on Kansai Nerolac with buy rating and price target of Rs 483
- Initiate coverage on Berger Paints with hold rating and price target of Rs 428
PhillipCapital On Indian Pharma
- Worst of lockdown already behind
- See limited impact of lockdown
- Multiple triggers make a strong investment case
- Upgrade Sun Phrma to buy from neutral; Price target raised to Rs 510 from Rs 465
- Upgrade Lupin to neutral from sell; Price target cut to Rs 620 from Rs 630
Bulk Deals
- IndusInd Bank: UBS Principal Capital Asia acquired 53.83 lakh shares (0.86 percent) at Rs 367 per share.
Pledged Share Details
- Sun Pharma: Promoter Shanghvi Finance revoked pledge of 59.4 lakh shares on April 3
- Adani Transmission: Promoter SB Adani Family Trust revoked pledge of 1.61 crore shares on April 4.
- Adani Enterprises: Promoter SB Adani Family Trust revoked pledge of 16 lakh shares between April 3-4.
(As Reported On April 7)
Who’s Meeting Whom
- Tata Steel to meet Seganti Capital Management and JP Morgan between April 8-9
- Eicher Motors to meet Columbia Thread and Ward Ferry between April 8-9
Trading Tweaks
- Price Band Revised From 10 Percent To 5 Percent: IG Petrochemicals, Lemon Tree Hotels, Rail Vikas Nigam, Sobha, Thirumalai Chemicals
- Price Band Revised From 20 Percent To 10 Percent: City Union Bank, Gujarat Alkalies and Chemicals, OnMobile Global
- Move Into ASM Framework: SREI Infrastructure Finance, Monnet Ispat & Energy
- Move Into Short Term ASM Framework: Graphite India, GTPL Hathway
- Move Out Of Short Term ASM Framework: Asahi Songwon Colors, Symphony, Sequent Scientific, Brigade Enterprises, Prism Johnson, HEG, TD Power Systems, KEC International, GATI, Spandana Sphoorty Financial, Mangalam Cement.
Money Market Update
- The rupee ended stronger at 75.63 against the dollar on Tuesday as compared to Friday’s close of 76.17, snapping a three-day losing streak.
F&O Cues
- Nifty April futures closed at 8,875.8, a premium of 83.6 points versus 0.7 points
- Nifty April futures open interest fell 0.4 percent, shed 38,400 shares
- Nifty Bank April futures closed at 19,172, a premium of 109.5 points versus a discount of 73.5 points
- Nifty Bank April futures open interest rose 2 percent, added 20,000 shares.
- Nifty Put-Call Ratio at 1.45 versus 1.18 across all series
Nifty: April 9 Expiry
- Maximum open interest on Call side at 9,000 strike (11.5 lakh shares)
- Maximum open interest on Put side at 8,000 strike (18.7 lakh shares)
- Open interest addition seen in 8,500 Put (12 lakh shares), 8,400 Put (10.7 lakh shares) and 8,300 Put (9 lakh shares)
- Open interest shedding seen in 8,500 Call (5.2 lakh shares) and 8,400 Call (4.9 lakh shares)
Nifty Monthly Expiry: April 30
- Maximum Open Interest on Call side at 9,000 strike (15.1 lakh shares)
- Maximum Open Interest on Put side at 8,000 strike (23.1 lakh shares)
