All You Need To Know Going Into Trade On Jan. 3

Stocks in Asia were primed for gains on Friday after a strong start to the year lifted U.S. equities to fresh all-time highs.

Futures indicated gains for equities in Hong Kong and shares opened higher in Australia. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.3 percent to 12,374 as of 6:58 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.

• The S&P 500 jumped 0.8 percent to a record on the year’s first trading day, with megacaps Apple, Alphabet and Nike notching all-time highs. It was among the best starts for U.S. stocks in the past decade.
• Oil spiked as tensions in the Middle East flared after a U.S. strike near Baghdad international airport killed a top Iranian general.
• The Stoxx Europe 600 Index advanced as every sector finished in the green.

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Indian ADRs

Stocks To Watch

• HDFC said it has recorded a fair value gain of Rs 9,020 crore from Gruh-Bandhan merger.
• Hero MotoCorp December sales fell 6 percent year-on-year to 4,24,845 units. (BloombergQuint estimate: 4,31,250 units).
• JSW Energy said the company entered into an agreement with Jaiprakash Power Ventures Ltd. to restructure the principal outstanding amount of Rs.751.77 crore, owed by JPVL to the company.
• NMDC set lump order price at Rs 2,800 per tonne; Fines at Rs 2,560 per tonne.
• ONGC won seven blocks offered under fourth auction round, according to a Bloomberg report.
• GAIL: The company said no amount is payable to Indian government under internet license, according to a Bloomberg report.
• Rites JV secured Rs 100 crore order from Government of Bangladesh.
• Natco Pharma filed an application for a generic version of cancer drug Lonsurf. Lonsurf has recorded sales of $150 million in 2018 in U.S. as per IQVA.
• Peninsula Land said a delay in government rent payout has affected loan repayment. It clarified that there was no default in payment of any financial obligation by the company.
• Kirloskar Electric said the pact with SSEL has been put on hold indefinitely.
• FDC received GMP certificate from U.K. Medicines and Healthcare Products Regulatory Agency for Goa unit.
• Krebs Biochemicals & Industries will issue up to 13.70 lakh equity shares top promoter group IPCA Laboratories at a price of Rs 86 per share. Additionally, the company will also issue 35.60 lakh convertible warrants of Rs 86 each to promoters IPCA laboratories.
• Vipul Organics received Maharashtra Pollution Control Board approval to commence operations at its new plant in Tarapur.

Brokerage Radar

Goldman Sachs on Oil Companies

• ONGC: Upgraded to ‘Buy’ from ‘Neutral’; cut price target to Rs 175 from Rs 220
• Oil India: Upgraded to ‘Buy’ from ‘Neutral’; hiked price target to Rs 205 from Rs 255
• Upstream companies share price pricing Brent at $45 per barrel.
• Positives:- improving volume trends, subsidy inching zero and improvement in sentiment

Citi on NMDC

• Maintained ‘Buy’ with a price target of Rs 125.
• First price hike since May 2019; lack of competition to prevent fall in pricing.
• Expiry of Odisha mining lease may not be disruptive for domestic ore supply.

Macquarie on Marico

• Maintained ‘Outperform’ with a price target of Rs 430.
• India business posted marginal decline in volume.
• Expect high single digit revenue growth in Q3 from international business.
• Margin expansion to remain on track due to benign input cost.

Morgan Stanley on JSPL

• Maintained ‘Overweight’ with a price target of Rs 174.
• Strong volume growth for standalone business as well as Oman business unit in the third quarter.
• Start of the DRI plant at Angul in January, to drive upside risk to estimates.

Who’s Meeting Whom

• KEC International to meet IIFL Securities on Jan. 3.

Insider Trading

• Aarti Industries promoters sold 25,200 shares on Dec. 31.
• Filatex India promoters acquired 5.50 lakh shares on Dec. 31.
• Tourism Finance Corp of India promoter Redkite Capital Private Limited sold 24,91,000 shares on Dec. 31.
• Swelect Energy Systems promoter R.Chellappan acquired 18,943 shares from Dec. 13 to Dec. 30.
• Action Construction Equipment promoter Vijay Agarwal acquired 23,562 shares from Dec. 27 to Dec. 31.
• Precision camshafts promoters acquired 20,000 shares on Dec. 30.
• S Chand & Co promoter Himanshu Gupta acquired 5,000 shares from Dec. 30 to Dec. 31.

F&O Cues

Index Futures

• Nifty January futures closed at 12,339.3, premium of 57 points versus 61.3 points.
• Nifty January futures open interest up 3.6 percent, adds 4.3 lakh shares in open interest.
• Nifty Bank January futures closed at 32,579, premium of 135 points versus 182 points.
• Nifty Bank January futures open interest down 0.6 percent, sheds 73,000 shares in open interest.

Options

• Nifty PCR at 1.46 versus 1.14 (across all series)

Nifty Weekly Expiry: Jan. 9

• Max open interest on call side at 12,300 (19.1 lakh shares).
• Max open interest on put side at 12,200 (19.2 lakh shares).
• Open interest addition seen at 12,200P (+13.4 lakh shares), 12,300C (+11.1 lakh shares), 12,250P (+8.9 lakh shares).

Nifty Monthly Expiry: Jan. 30

• Max open interest on call side at 12,500 (22.6 lakh shares).
• Max open interest on put side at 12,000 (38.6 lakh shares).