All You Need To Know Going Into Trade On December 18
Rush hour morning commuters pass through ticket barriers at Gare du Nord railway station in Paris. (Photographer: Benjamin Girette/Bloomberg)

All You Need To Know Going Into Trade On December 18

Asian markets are mixed at the start of the final trading day of this week.

Benchmark indices in Japan and South Korea are little changed while those in Australia are declining.

The U.S. Dollar held losses, treasury yields held overnight gains while Bitcoin crossed the mark of $23,000 for the first time.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.25% to 13,778 as of 7:00 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.

Let’s take a look at the factors that may influence equities in today’s session:

  • Futures on the Dow Jones are currently trading lower by 45 points. The index ended with gains of 0.5% on Thursday.
  • Senate Majority eader Mitch McConnel said that the deal appears to be close at hand but will probably require work over the weekend to get through Congress.
  • Jobless claims in the U.S. rose last week as another 8.85 lakh Americans filed for unemployment benefits.
  • The pound rose while the Euro surged to the highest since April 2018 after officials cautiously predicted a Brexit deal within days.
  • Yields on the 10-year treasuries stood at 0.93%.
  • West Texas Intermediate crude was little changed at $48.38 per barrel.

Get your daily fix of the global markets here.

All You Need To Know Going Into Trade On December 18

Stock To Watch

  • Zee Entertainment: To acquire film production and distribution business on a slump sale basis from Zee Studios, a wholly-owned subsidiary. Acquisition to be done for a cash consideration of Rs 275 crore. Acquisition expected to be completed in approximately two months. Further, the Board of Directors have also approved the transfer of the Digital Publishing Business Division of the company to Rapidcube Technologies through a Business Transfer Agreement.
  • BPCL: The Board of Directors of the company have approved the merger of Bharat Gas Resources Ltd, a wholly-owned subsidiary of BPCL, with the company, subject to the approval of the competent authorities and completion of regulatory and other requirements. The board has also accorded its approval for the acquisition of 88.86 crore (36.62%) shares in Bharat Oman Refineries Ltd from OQ S.A.0.C.(formerly Oman Oil Company S.A.O.C), subject to the finalisation of definitive agreement between parties, the approval of the competent authorities and completion of regulatory and other requirements. The Board has also approved the proposal to approach Government of Madhya Pradesh for acquiring 2.69 crore warrants held by GoMP in BORL.
  • I.T. Stocks: Accenture raises FY21 revenue guidance to 4-6% from the earlier 2-5%.
  • Dishman Carbogen: Promoters Adimans Technologies plans to sell close to 69 lakh shares of the company through an offer for sale. The share sale represents 4.4% of the total paid-up equity share capital. The company will retain a greenshoe option to sell another 69 lakh shares. The floor price of 145.7 rupees per share is at 6% discount to Thursday's closing price. The OFS for non-retail investors opens on December 18 while for retail investors it opens on December 21.
  • Godrej Agrovet: The Department of Horticulture, Government of Telangana has allotted area admeasuring 28,164 Hectares in the Mahabubabad District of Telangana to the Company, for the purpose of oil palm cultivation/expansion. The said allotment is subject to execution of Memorandum of Agreement and completion of other procedural requirements by the company.
  • ISGEC Heavy Engineering: Has secured a new order from KPR Sugar & Apparels Limited to set up a 10,000 TCD Sulphurless Sugar Plant, 40 MW Co-Generation Plant, 60 TPH Incineration Boiler and a 7.5 MW Power Plant for Zero Liquid Discharge system for the client’s distillery plant on EPC basis. The order is valued at Rs 431 crore.
  • Defence Stocks: Defence Acquisition Council headed by Union Minister Rajnath Singh approved Capital Acquisition of various weapons/platforms/equipment/systems required by the Indian Army, the Indian Navy and the Indian Air Force at an approximate overall cost of Rs 28,000 crore, as per the Press Information Bureau.
  • Canara Bank: Life Insurance Corporation of India has acquired 6.28 crore shares through the QIP, taking its total shareholding in the bank to 8.35% from 4.533%.
  • Borosil Renewables: Raises Rs 200 crore through its QIP issue. The company has set an issue price of Rs 126.55 per share, which is a 5% discount from the QIP floor price of Rs 133.19 per share.
  • Tata Motors: Extends date for completion of the Conditions Precedents mentioned in the Scheme of Arrangement between the Company and Tata Advanced Systems Limited for transfer of Defense Undertaking.
  • Everest Kanto Cylinders: CARE Ratings has revised the credit rating on long-term Bank facilities of Rs 103.57 crore to BB+/Stable from BBB- and the rating on short-term Bank facilities of Rs 69.92 crore has been revised to A4+ from A3.
  • Shoppers Stop: The Right Issue Committee approved the allotment of 2.13 crore rights equity shares of Rs 5 each at a price of Rs 140 per rights equity share (including a premium of Rs 135 per share).
  • Bank of Baroda: Has appointed Ian De Souza as Chief Financial Officer of the bank w.e.f. December 17, 2020.
  • To Be Available In F&O Segment From January 1, 2021: Aarti Industries, HDFC AMC, Dr Lal Pathlabs

Brokerage Radar

CLSA On L&T Technology Services

  • Upgrade to outperform from underperform
  • Price target raised to Rs 2,020 from Rs 1,750
  • Recent deal wins improve long-term growth outlook
  • More deals could follow as indicated by recent management interactions
  • Wins add to steady but slow demand revival in ER&D services market
  • Raise FY22/23 Ebit by 8% and 10% respectively
  • Improved outlook should correct underperformance

Antique Stock Broking On Kotak Mahindra Bank

  • Downgrade to hold from buy
  • Price target raised to Rs 1,840 from Rs 1,575
  • Excess capital constraints RoE and book value compounding
  • Franchise strength has improved led by robust liability performance
  • Upgrade earnings estimate by 12% and 4% for FY22/23 to factor better loan growth
  • Valuation premium a bit too high
  • Will wait for better entry levels

Emkay On Indian I.T.

  • Accenture's Q1 results and guidance was well ahead of expectations
  • Broad-based demand recovery and sustained healthy growth momentum in revenue / order booking of the outsourcing business augurs well for Indian I.T.
  • Sustained acceleration in revenue growth will support high valuations despite rally
  • Prefer Infosys, HCL Technologies and Tech Mahindra among tier-1 companies

Pledge Share Details

  • Sun Pharma: Promoter Shanghvi Finance created a pledge of 1.24 lakh shares between December 14-16.
  • Chambal Fertilisers & Chemicals: Promoter Zuari Global revoked pledge of 10 lakh shares on December 15.
  • Adani Transmission: Promoter Adani Tradeline LLP revoked pledge of 8.70 lakh shares on December 14.

As Reported On December 17.

Who’s Meeting Whom

  • Bajaj Finance: To meet Premji Invest on December 22.
  • Gland Pharma: To meet Arohi Asset Management on December 22.
  • Tata Steel: To meet Citi Research on December 18 and Elara Securities on December 22.
  • Tata Motors: To meet Slyebra Capital, HK on December 21.

Bulk Deals

  • IDFC Limited: Sipadan Investments (Mauritius) sold 93.57 lakh shares (0.59%) at Rs 40.93 per share.
  • JK Tyre & Industries: Edgefield Securities sold 14.33 lakh shares (0.58%) at 76.52 per share.
  • Majesco: ICICI Bank bought 2.01 lakh shares (0.67%) at Rs 968.08 per share. Third Alpha LLP bought 5 lakh shares (1.67%) at Rs 970 per share. Promoter Ram Family Trust bought 5 lakh shares (1.67%) at Rs 970 per share.
  • BEML: Equity Intelligence India bought 2.65 lakh shares (0.64%) at Rs 847.63 per share.
  • SH Kelkar and Company: Promoter Keva Constructions sold 10 lakh shares (0.71%) at Rs 115.74 per share.
  • Snowman Logistics: Adani Logistics sold 11.02 lakh shares (0.66%) at Rs 58.58 per share.

Trading Tweaks

  • Ex Date Dividend: Ashok Alco-Chem, Energy Development Company, Jai Corp, Vasundhara Rasayans.
  • Ex Date Final Dividend: Brightcom Group
  • Price Band Revised From 10% To 5%: Vakrangee
  • Price Band Revised From 20% To 10%: Hindustan Copper
  • Move In To ASM Framework: Shriram EPC
  • Move In To Short-term ASM Framework: Arvind SmartSpaces, Inox Wind, Sundaram Finance.
  • Move Out Of Short-term ASM Framework: Trident, Reliance Communications, Reliance Infrastructure, Goodyear India, Omaxe.

Insider Trades

  • Filatex India: Promoters acquired 8 lakh shares on December 15.
  • Spandana Sphoorty Financial: Promoter Vijaya Sivarami Reddy Vendidandi sold 1.80 lakh shares on December 16.
  • Vardhman Textiles: Promoter Vardhman Holdings acquired 11,078 shares between December 14-15.
  • Vardhman Special Steels: Promoter Sachit Jain acquired 11,000 shares between December 14-16.

As Reported On December 17.

Money Market Update

  • The rupee ended little changed at 73.58 against the U.S. Dollar as compared to Wednesday's close of 73.59.
All You Need To Know Going Into Trade On December 18

F&O Cues

  • Nifty December futures end at 13,749; premium of 9 points.
  • Nifty December futures add 2.6% and 3.2 lakh shares in Open Interest.
  • Nifty Bank December futures end at 30,828; discount of 19 points
  • Nifty Bank December futures add 9.7% and 1.4 lakh shares in Open Interest
  • Nifty Put-Call Ratio at 1.93
  • Enters F&O Ban: Sun TV
  • Stocks In F&O Ban: Canara Bank, Punjab National Bank, Sun TV

Nifty: December 24 Expiry

  • Maximum Open Interest on Call side at 14,000 strike (24.3 lakh shares)
  • Maximum Open Interest on Put side at 13,500 strike (16.1 lakh shares)
  • Active Options: 14,000 Call (+11.6 lakh shares) and 13,700 Put (+11.9 lakh shares)

Nifty: December 31 Expiry

  • Maximum Open Interest on Call side at 13,000 strike (22.1 lakh shares)
  • Maximum Open Interest on Put side at 13,000 strike (44.8 lakh shares)
All You Need To Know Going Into Trade On December 18
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