All You Need To Know Going Into Trade On Dec. 27

Asian stocks were mixed Wednesday in holiday-thinned trading. Oil prices breached $60 a barrel for the first time since 2015 after a pipeline blast in Libya. The emerging-market currencies strengthened as commodities posted the longest winning streak in more than a decade.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.15 percent to 10,511 as of 7:15 a.m.

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DayBreak

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

Global Cues

• U.S. technology shares slipped on speculation Apple Inc.’s phone sales will fall short of estimates. Trading volumes were thin on the day after Christmas.
• The major European stock exchanges were shut and markets overall were quiet as the stellar year for risk assets crawls to its end, with the possible exception of the cryptocurrency roller coaster.

Asian Cues

• Japan’s Topix Index and Nikkei 225 Stock Average were little changed.
• Futures on Hong Kong’s Hang Seng index were little changed, as were FTSE China A50 contracts.
• Contracts on the S&P 500 Index were little changed.

Here are some of the key events scheduled for this week:

• U.S. consumer confidence and trade data are on the schedule for the holiday-shortened week.
• Italy’s parliament is expected to be dissolved ahead of elections in 2018.
• Egypt decides on interest rates.

Commodity Cues

• Brent crude ended higher at $67.02/barrel, up 2.7 percent.
• West Texas Intermediate traded little changed at $59.81 a barrel.
• Gold was at $1,282.52 an ounce after advancing 0.7 percent Tuesday.
• Silver gained 1.3 percent to $16.55 per ounce, the highest in almost four weeks.
• Sugar ended higher at 14.7 cents per pound; up 0.7 percent.

Shanghai Exchange

• Steel trades snaps two-day losing streak; up 0.2 percent.
• Aluminium trades higher; up 0.5 percent.
• Zinc trades higher; up 0.2 percent.
• Copper trades higher for fourteen consecutive session; up 0.6 percent.
• Rubber trades higher for second day; up 0.8 percent.

Indian ADRs

Stocks To Watch

• Pidilite Industries’ Board approves buy back of upto Rs 500 crore at Rs 1,000 per share via tender route.
• Reliance Communications announces exit from SDR framework with zero write-offs to lenders; to reduce debt by Rs 25,000 crore.
• ITC says certain individuals and NGOs have filed petition against high court ruling on cigarette warning.
• Yes Bank acquires 5.62 percent in One Point One Solution under Anchor investor portion.
• NBCC to sell 25,16,013 shares via OFS to employees.
• Srikalahasthi Pipes’ QIP closes; Issue price fixed at Rs 360.5 which is at discount of 5 percent to the floor price.
• IDBI Bank to terminate rating engagement with Moody’s for MTN program.
• Punjab & Sindh Bank approves raising funds via share issue.
• Prestige Estates to acquire 66.66 percent in group company -- Prestige Projects -- for Rs 324 crore.

Bulk Deals

• Lokesh Machines: Sushmita Kacholia sold 1.28 lakh shares or 0.8 percent equity at Rs 75.53 each.
• Tara Jewels: Promoter Rajeev Sheth sold 1.79 lakh shares or 0.7 percent equity at Rs 16.46 each.

Vishal Fabrics

• Asia Investment Corp Mauritius bought 3.74 lakh shares or 1.7 percent equity at Rs 300 each.
• Promoter Devkinandan Corporation sold 3.75 lakh shares or 1.7 percent equity at Rs 300 each.

Shanti Educational Initiatives

• LTS Investment Fund bought 80,800 shares or 0.5 percent equity at Rs 142 each.
• Promoter Tripoli Management Pvt Ltd sold 80,800 shares or 0.5 percent equity at Rs 142 each.

Trading Tweaks

• Circuit filter revised to 10 percent: Vardhman Holdings, Kilburn Engineering, BSEL Infra.
• Circuit filter revised to 5 percent: Ansal Properties and Lanco Infra.
• Shalimar Paints last trading day before going ex-rights basis.

Who’s Meeting Whom?

• ICICI Lombard General Insurance met Nomura and Temasek on Dec. 21-22.
• Shriram City Union Finance to meet IIFL on Dec. 27.

Insider Trades

• Asian Hotels (North): Promoter Shiv Kumar Jatia released pledge on 1,00,000 shares or 0.5 percent equity.
• DCW Ltd: Promoter Varsha Jain sold 30,000 shares.
• Ramco Cement: Promoter Ramaraju Surgical Cotton Mills released pledge on 36.24 lakh shares or 1.54 percent equity.
• MRF: Promoter Mamy Philip sold 200 shares.
• Rubfila International: Promoter Chew Annie Guat Khuan sold 79,984 shares or 0.2 percent equity.
• NRB Bearings: Promoter Rajiv Sahney and Jasjiv Sahney sold 70,000 respectively.
• Linc Pens: Promoter Deepak Jalan bought 3,500 shares.
• The Byke Hospitality: Promoter Anil Patodia bought 2.01 lakh shares.
• Axis Bank: United India Insurance sold 50,000 shares.
• GP Petroleum: Promoter GP Global Energy acquired 4,662 shares.
• Adani Ports: Promoter Gautam Adani & Rajesh Adani pledge 95.27 lakh shares.

Rupee

• Rupee closed at 64.08/$ on Tuesday from 64.05/$ on Friday.

Top Gainers And Losers

Index Trends

F&O Cues

• Nifty December futures closed trade at 10526, a discount of 5 points from a premium of 12 points.
• Nifty January futures trading at 10,567.8, a premium of 37 points.
• All series: Nifty open interest up 8 percent; Bank Nifty open interest up 12 percent.
• Nifty Rollover at 35 percent, Bank Nifty Rollover at 30 percent.
• India VIX ended at 12, up 4 percent.
• Max open interest for Dec. series at 10,500 Call (open interest at 55.4 lakh, down 2 percent).
• Max open interest for Dec. series at 10,000 Put (open interest at 70 lakh, down 6 percent).

F&O Ban

• In ban: Balrampur Chini, DHFL, DLF, GMR Infrastructure, HDIL, IFCI, Jet Airways, Jain Irrigation, JP Associates, Reliance Capital, Wockhardt.
• New in ban: HDIL, Jet Airways, Jain Irrigation, Reliance Capital.
• Out of ban: Fortis Healthcare, Reliance Communications.

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 unchanged at 1.59.
• Nifty Bank PCR at 1.17 from 1.22.

Stocks Seeing High Open Interest Change

Fund Flows

Brokerage Radar

Edelweiss Securities On Kotak Mahindra Bank

• Upgraded to ‘Buy’ from ‘Hold’ with revised target price of Rs 1205 per share.
• Upgrade follows recent interaction with management.
• Confidence stems from culmination of integration pangs (opex & cost).
• Merger of ING Vysya Bank lower than estimated on opex and asset quality fronts.
• Improved visibility on transitioning to steady‐state returns profile in the near term.
• Liability franchise continues to strengthen: Stupendous Saving Account accretion.
• Continued stress in economy and hence CV/CE portfolio to moderate bank growth prospects.

Barcalys On Concerns Of FY18 Slippages

• Achieving the fiscal deficit target goal will be a difficult balancing act, but possible.
• Government’s tax and non-tax revenue collection to be Rs 800-1,200 billion lower than the budgeted sum.
• Disinvestment proceeds remain strong.
• Divestment could generate a surplus of Rs 300-400 billion over and above BE of Rs 725 billion.
• Government can avoid exceeding its gross market borrowing target for the current financial year.

Motilal Oswal on Sanghi Industries

• Initiated coverage with ‘Buy’ rating and price target of Rs 157, a potential upside of 23 percent from yesterday’s close.
• Sanghi Industries is one of the lowest cost cement producers due to its quality limestone, locational advantage and strong integration across the manufacturing value chain.
• Sanghi Industries’ strength lies in its access to 1b tonne of quality marine limestone reserves.
• Expect SIL’s margins to expand by 8.4pp over the financial years through March 2020.
• Diversification into new markets to bring in scale and margin expansion.
• Sanghi Industries is a strong re-rating candidate led by expected increase in capacity and anticipated scale benefits led by diversification into new higher-priced markets.
• Expect operating income and net profit to grow at a compounded rate of 33 percent and 61 percent respectively over the financial years through March 2020, with improved pricing and positive operating leverage.
• Expect return on equity to increase by 11pp to 16.8 percent in the financial year-ending March 2020, led by a sharp uptick in profitability.