All You Need To Know Going Into Trade On December 29
A person carrying a briefcase crosses a street. (Photographer: Jessica Nolte/Bloomberg)

All You Need To Know Going Into Trade On December 29

Asian markets have mostly opened higher this morning as U.S. equities rallied to a record overnight. The surge came after President Donald Trump signed the coronavirus aid package.

Benchmark indices in Japan and Australia are advancing while those in South Korea are fluctuating.

The U.S. Dollar slipped along with treasuries while oil prices pared an overnight loss.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.3% to 13,930 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.

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

  • Futures on the Dow Jones are currently trading 90 points higher. The index gained 0.7% on Monday to end at a record high. The S&P 500 along with the Nasdaq ended at a record high as well.
  • Goldman Sachs upgraded its first quarter U.S. economic growth forecast post approval of the stimulus package.
  • “Where we are right now in the equity market is somewhat of a sweet spot,” Michael Cuggino, president and portfolio manager at Permanent Portfolio Family of Funds, said on Bloomberg TV.
  • More restrictions are being imposed to fight the coronavirus. Taiwan has increased the quarantine period of flight crews to seven days, hospitalisations in the U.S. reached new highs while Germany is seeking to expand production of shots.
  • Yields on the 10-year treasuries stood at 0.94%.
  • West Texas Intermediate crude rose 0.4% to $47.82 per barrel.

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All You Need To Know Going Into Trade On December 29

Stocks To Watch

  • AU Small Finance Bank: Announced strategic partnership with ICICI Prudential Life Insurance to offer personalised insurance solutions. The bank aims to deliver paperless, secure, and hassle-free life insurance solutions to more than 18 lakh customers through digital platform with ICICI Prudential Life. Further over 700 banking touchpoints of AU Small Finance Bank across 13 states and 2 union territories will receive the entire suite of customer-centric protection and long-term savings products of ICICI Prudential Life for retirement and critical illness
  • Biocon: Announced the launch of Tacrolimus capsules in the U.S. Tacrolimus is an immunosuppressant used in the treatment of organ transplant patients, which reduces the body’s ability to reject a transplanted organ.
  • Titan: Board gives approval to provide corporate guarantees worth Rs 906 crore to various banks on behalf of Titan Commodity Trading Ltd., which is a wholly-owned subsidiary.
  • Tube Investments of India: Completes one-time settlement and restructuring of funded facilities and guaranteed debt of CG Power as per the terms agreed upon.
  • Cochin Shipyard: A meeting of the Board of Directors is scheduled to be held on January 4, 2021 to consider the declaration of an interim dividend to the shareholders of the company for the financial year 2020-21.
  • Rane Holdings: ICRA has reaffirmed the long-term rating of Rs 100 crore bank limit at AA- and has reaffirmed the short-term rating at A1+.
  • Future Supply Chain Solutions: The shareholders approved the re‐appointment of Mayur Toshniwal as Managing Director for a period of three years at the AGM.
  • 3i Infotech: The Board of Directors have approved the slump sale of the global software products business of the company on a going concern basis to Azentio Software, subject to the receipt of approvals and executed inter alia business transfer agreement between the company and the buyer. The sale is expected to be completed by March 31, 2021. This will be done for a total consideration of Rs 1,000 crore.

Pledge Share Details

  • Jindal Steel & Power: Promoter Danta Enterprises created pledge of 53 lakh shares between December 21-22.
  • Future Consumer: Promoter Future Capital Investment invoked pledge of 23.22 lakh shares between December 19-23.
  • Future Retail: Promoter Future Corporate Resources invoked pledge of 9.97 lakh shares between December 19-23.

As Reported On December 28.

Bulk Deals

  • Entertainment Network (India): Rajasthan Global Securities bought 2.70 lakh shares (0.57%) at Rs 157.44 per share.
  • Fairchem Organics: Rajasthan Global Securities bought 65,864 shares at Rs 618.56 per share. Solidarity Advisors sold 65,502 shares at Rs 618.39 per share.
  • Rupa & Company: Abakkus Emerging Opportunities Fund-1 bought 12 lakh shares (1.51%) at Rs 250.5 per share. Suvichar Advisors LLP 12.99 lakh shares (1.63%) at Rs 250.55 per share.

Who’s Meeting Whom

  • Finolex Industries: To meet SBI Life Insurance Company on December 29.
  • Prince Pipes and Fittings: To meet Franklin Templeton on December 29.
  • DCM Shriram: To meet ITI Asset Management on December 29.
  • Eicher Motors: To meet Premji Invest on December 29 and Kotak Mutual Fund on December 30.

Trading Tweaks

  • Price Band Revised From 10% To 5%: Cybertech Systems and Software
  • Price Band Revised From 20% To 10%: Firstsource Solutions, Hindustan Foods.
  • Move In To Short-term ASM Framework: GTL Infrastructure
  • Move Out Of Short-term ASM Framework: Arvind SmartSpaces, Inox Wind, Sundaram Finance, Anant Raj, Somany Home Innovation.

Insider Trades

  • Sadbhav Infrastructure Project: Promoter Sadbhav Engineering acquired 1.50 lakh shares on December 24.

As Reported On December 28.

Money Market Update

  • The currency ended at 73.50 against the U.S. Dollar as compared to Thursday's close of 73.55.

F&O Cues

  • Nifty December futures end at 13,897; premium of 24 points
  • Nifty December futures shed 9.3% and 9.6 lakh shares in Open Interest
  • Nifty Bank December futures end at 30,959; premium of 79 points
  • Nifty Bank December futures shed 1.2% and 16,700 shares in Open Interest
  • Nifty Put-Call Ratio at 1.46
  • Enters F&O Ban: SAIL
  • Stocks In F&O Ban: Canara Bank, Punjab National Bank, SAIL

Nifty: December 31 Expiry

  • Maximum Open Interest on Call side at 14,000 strike (47.1 lakh shares)
  • Maximum Open Interest on Put side at 13,000 strike (56.9 lakh shares)
  • Active Options: 14,500 Call (+12.7 lakh shares) and 13,800 Put (+22.7 lakh shares)
All You Need To Know Going Into Trade On December 29
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