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

Stocks in Asia retreated along with U.S. equity futures after U.S. health authorities said they found the first case of coronavirus that does not have ties to a known outbreak.

Japanese shares were down more than 1.5 percent, with shares in Seoul and Sydney also lower. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.79 percent to 11,725 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

• U.S. stocks fell for a fifth day, the longest losing streak since August, while Treasury 10-year note yields dropped to another record low as investors weathered a barrage of reports on the widening coronavirus outbreak.
• Oil extended declines to the lowest in a year on fears the fast-spreading coronavirus will take a major toll on the global economy.

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Indian ADRs

Stocks To Watch

• The Chandigarh NCLT bench today approved the merger of GSK Consumer Healthcare and Hindustan Unilever. The effective date of the merger is likely to be communicated soon.
• Thomas Cook to buyback upto 2.60 crore equity shares at Rs 57.5 each. Post buyback, promoter holding in the company will increase to 70.46 percent from 65.60 percent.
• RITES: The Government proposed to sell 1.25 crore shares (5 percent equity) in the company via offer for sale with an option to sell an additional 5 percent stake. The floor price for the offer has been fixed at Rs 298 per share, a discount of 6.6 percent to the current market price).
• InterGlobe Aviation denies allegations of wrongdoing or avoidance of process. The company said it has not received any communication from SEBI.

Brokerage Radar

Citi on Federal Bank

• Maintained ‘Buy’ with a price target at Rs 110
• Management reiterated its target of RoA of 1.25 percent by March 2021.
• Credit cards, other yield accretive products to ramp up.
• FedServ, 100 percent subsidiary, to lower cost, treasury business expanding.
• Continue to build strong liability franchise.
• Bank does not see issue in corporate asset quality.

HSBC on Havells

• Maintained ‘Buy’ with a price target at Rs 700.
• At an infection point of a major turnaround.
• Havells’ weak results in recent quarters drove earnings downgrade and weighed on its share price
• Q4 results should be a share price catalyst.
• Expect ~24 percent PBT CAGR over FY20e-22e. Strong growth will be driven by both top line growth as well as margin improvement.

Macquarie on IndusInd Bank

• Maintained ‘Outperform’ with a price target at Rs 1,558.
• Hosted a call for investors with the CEO of the bank.
• Have sent a list of candidates for CEO position five months in advance
• MFI exposure is just Rs 40 crore, repayment rates are 93 percent.
• No deterioration in portfolio quality in Hong Kong, China.
• Probability of guarantees being invoked in telecom exposure is low.

UBS on Nestle

• Maintained ‘Buy’; raised price target to Rs 19,250 from Rs 17,000.
• Revenue growth momentum continues, margin upside potential.
• Price increases, new product innovation, operating leverage ahead.
• Distribution led growth to continue, we prefer packaged food.

Edelweiss on Metals

• Domestic HRC price slipped further last week primarily due to subduedreal demand.
• International HRC prices have increased USD10/t on average as some provinces in China have resumed operations.
• Record-high steel inventory continues to be an overhang.
• Scope for a further correction in domestic HRC prices if exports from China pick up.
• Coronavirus is likely to keep up the pressure on domestic steel prices in the near term.

Bulk Deals

• Tata Chemicals: Tata Sons Pvt Ltd buys 14.96 lakh shares (0.6 percent equity) at Rs 742.44 each

India Cements

• Radhakishan Damani buys 27.25 lakh shares (0.9 percent equity) at Rs 104.16 each
• Gopikishan Damani buys additional 85.22 lakh shares (2.7 percent equity) at Rs 98.42 each

Sadbhav Engineering

• Blue Diamond Properties Private Limited buys 42 lakh shares (2.4 percent equity) at Rs 74.99 each
• Aditya Birla Sun Life Mutual Fund sells 26.92 lakh shares (1.6 percent equity) at Rs 75 each
• Hdfc Standard Life Insurance Co Ltd sells 8.90 lakh shares (0.5 percent equity) at Rs 80.13 each

Who’s Meeting Whom

• Aster DM to meet Thornburg Asset Management on Feb. 27.
• Chalet Hotels to meet Fidelity International & HDFC Standard Life on Feb. 27.
• Finolex Industries to meet Bajaj Allianz Life Insurance and Tokio Marine Singapore on Feb. 27 and 28 respectively.

Insider Trades

• Ultramarine & Pigments promoter Sridhar Sundarrajan sold 10,104 shares on Feb 25
• Steel Strips Wheels promoter Sunena Garg buys 4950 shares from Feb. 24 – 25
• Aarti Industries promoters sold 56,061 shares from Feb. 19 – 25
• Greenply Industries promoter Rajesh Mittal & Sons, HUF buys 25,000 shares on Feb. 24
• Hindustan Tin Works promoter Parikshit Bhatia buys 24,284 shares from Feb. 20 – 24
• Bajaj Finserv promoter Neelima Bajaj Swamy sold 23,500 shares on Feb. 25
• S Chand & Co-promoter Himanshu Gupta buys 5,000 shares from Feb. 24 – 25
• Shalby Ltd promoter Kairav Kirit Shah buys 8,206 shares on Feb. 24

(As Reported on Feb. 26)

F&O Cues

Index Futures

• Nifty February futures closed at 11,695.6 premium of 17 points
• Nifty futures across series open interest rose 10 percent, added 16.6 lakh shares in open interest
• Nifty Bank February futures closed at 30,315, premium of 8.7 points
• Nifty Bank futures open interest rose 1 percent, added 16,600 shares in open interest
• Rollover: Nifty at 61 percent, Nifty Bank 55 percent

Options

• Nifty PCR at 1.01 Vs 1.05 (across all series)

Nifty Monthly Expiry: Feb 27

• Max open interest on call side at 12,000 (47.4 lakh shares)
• Max open interest on put side at 11,600 (26.7 lakh shares)
• Open interest addition seen in 11,750C (+14.4 lakh shares), 11,800C (+13.8 lakh shares), 11,700C (+12.8 lakh shares)
• Open interest shedding seen at 11,800P (-15.9 lakh shares)

Stocks In F&O Ban

• Yes Bank