All You Need To Know Going Into Trade On Dec. 27
A broker speaks on telephones on the trading floor. (Photographer: Luke MacGregor/Bloomberg)

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

Asian stocks opened mixed on Friday after technology shares propelled U.S. benchmarks to fresh record highs.

Japan opened to modest gains, Australian shares were little changed and South Korean ones slid in early trading. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.12 percent to 12,209 as of 6:45 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.

  • Gains in technology shares sent the Nasdaq Composite Index above 9,000 for the first time. Amazon.com Inc. was among the top equity performers after the e-commerce giant reported a “record breaking” holiday season. European markets remained shuttered.
  • Oil advanced in light trading, with prices set for the biggest monthly gain in almost a year on speculation that supplies are shrinking.

Get your daily fix of global markets here.

Key Events/Data To Watch

  • RBI to announce weekly foreign-exchange, bank credit data.

Indian ADRs

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

Stocks To Watch

  • CARE Ratings, ICRA: The market regulator imposed a Rs 25 lakh-penalty for their failure to exercise skill, care and due diligence in rating the non-convertible debentures of Infrastructure Leasing & Financial Services Ltd. and its non-bank lending unit. “Brazen failure” of the credit rating agencies clearly defeated the objective of investor protection and orderly development of securities market, the Securities and Exchange Board of India said in an order. It concluded that CARE and ICRA violated the provisions of SEBI Act, 1992, and the its code of conduct.
  • HG Infra Engineering was declared L-1 Bidder for HAM Project in Haryana for worth Rs 372.1 crore.
  • Adani Ports & SEZ: Life Insurance Corporation of India increased stake in the company to 11.82 percent from 9.82 percent between Dec. 8-23.
  • Allahabad Bank: Receives fresh capital of Rs 2,153 crore from the government.
  • Hindustan Aeronautics: CARE Ratings downgraded long-term banking facilities worth Rs 7,300 crore to ‘AA+’ from ‘AAA’ with outlook unchanged at ‘Stable’.
  • Sical Logistics said that the company would default on payment of non-convertible debentures interest worth Rs 5.5 crore falling due on Dec. 27, due to a cash flow mismatch.
  • Punjab National Bank allotted bonds worth Rs 1,500 crore on a private placement basis.
  • Future Consumer said 91.9 percent promoters stake is encumbered. Promoters have a 46.29 percent stake in the company.
  • GPT Infraprojects: CARE Ratings downgraded long-term banking facilities worth Rs 554.21 crore to ‘BBB-’ from ‘BBB’ with outlook unchanged at ‘Stable’.
  • Simplex Infra defaulted on payment of NCDs interest worth Rs 4.85 crore which was due to Dec. 26, due short-term temporary liquidity crisis, according to Bloomberg report.
  • IFGL Refractories: Sikandar Yadav to resign as chief financial officer with effect from Jan. 14.

Also read: Banking Sector Net NPA May Improve To 3.2% By March-End, ICRA Says

Brokerage Radar

Edelweiss on Metals

  • Domestic prices breach import parity level.
  • Still see concerns emanating from potentially higher imports.
  • Continue to prefer JSPL in the ferrous space owing to its reliance on longs.
  • Maintained ‘Hold’ on Tata Steel & JSW Steel and ‘Reduce’ on SAIL.

Edelweiss on Banks

  • Banks: Asset quality turning around; corporate banks better placed.
  • NBFCs: Risk perception continues to dampen confidence.
  • HFCs: Liquidity stress spilled over reflected in slower growth & softer profitability.
  • Within product segments, we recommend caution on the real estate segment.

Motilal Oswal on UltraTech Cement

  • Maintained ‘Buy’ with a price target of Rs 5,050.
  • Demand has been weak; expect recovery from the fourth quarter of the current financial year.
  • Prices lower in the South/East; the North/Central-India relatively better.
  • Limited new capacity additions on the anvil.

Emkay on Dixon Tech

  • Maintained ‘Buy’; hiked price target to Rs 4475 from Rs 3,605.
  • Management remains upbeat on sustaining volume growth in consumer electronics.
  • Washing machine sales growth to rebound in 2020-21 after slow FY20.
  • Opportunity of exports in lighting business, which is expected begin from April 2020, can be significant.
  • Believe automation and cost optimization will drive margins further.

Trading Tweaks

  • Dishman Carbogen Amcis, Mercator, Monnet Ispat & Energy, Oil Country Tubular, Rama Steel Tubes to move into short term ASM Framework.
  • Arvind Fashions, BGR Energy Systems, Viji Finance to move out of short term ASM Framework.
  • Oil Country Tubular, Monnet Ispat & Energy, Igarashi Motors, Birla Precision Technologies price band revised to 10 percent.

Who’s Meeting Whom

  • Eris Lifesciences to meet Antique Stock Broking on Dec. 27.
  • Torrent Power to meet Franklin Templeton Investment and Tata MF on Dec. 27.
  • Allcargo Logistics to meet Philip Capital and BoB Capital Markets from Dec. 27-30.
  • Mahindra Logistics to meet Templeton AMC on Dec. 30.

Insider Trading

  • KRBL promoters acquired 48,000 shares on Dec. 24.
  • Filatex India promoter Anu Bhageria acquired 1 lakh shares on Dec. 23.
  • Music Broadcast promoter Jagran Prakashan acquired 45,000 shares from Dec. 23-24.

Money Market Update

  • The rupee closed at At 71.31/$ versus 71.27/$ on Tuesday.

F&O Cues

Index Futures

  • Nifty Jan futures closed at 12,195.7, premium of 69 points.
  • Nifty futures open interest across series up 9 percent, adds 13.8 lakh shares in open interest.
  • Nifty Bank Jan futures closed at 32,186, premium of 188 points.
  • Nifty Bank futures open interest across series down 11 percent, sheds 2 lakh shares in open interest.
  • Rollovers –Nifty 70 percent, Nifty Bank 78 percent.

Options

  • Nifty PCR at 1.30 Vs 1.47 (across all series).

Nifty Monthly Expiry: Jan. 2

  • Max open interest on call side at 12,200 (15 lakh shares).
  • Max open interest on put side at 12,000 (11.7 lakh shares).
  • open interest addition seen at 12,220C (+12.2 lakh shares), 12,300C (+6.5 lakh shares), 12,000P (4.5 lakh shares).

Nifty Monthly Expiry: Jan. 30

  • Max open interest on call side at 12,200 (16.5 lakh shares).
  • Max open interest on put side at 12,000 (26.7 lakh shares).
All You Need To Know Going Into Trade On Dec. 27

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