All You Need To Know Going Into Trade On March 11

U.S equity futures retreated with Treasury yields as investors awaited details from the Trump administration on planned stimulus measures to counter the coronavirus impact. Asian equities were mixed and the oil price surged, with no clear trigger.

Shares in Japan edged up, while declines resumed in Korea and Australia. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.73 percent to 10,438 as of 6:57 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. rallied back from the worst rout since the financial crisis on expectations the Trump administration will implement stimulus measures to counter the economic impact from the coronavirus.
• Oil bounced back from its biggest plunge in 29 years on hopes the U.S. government will intervene to shield against the fallout of the coronavirus and a producer battle for market share.

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Indian ADRs

Stocks To Watch

• Yes Bank: Nippon Mutual Fund and Axis Trustee filed petitions against the decision to write-down Yes Bank's AT-1 bonds under reconstruction plan. The Bombay High Court will hear petitions on March 11. RBI’s draft reconstruction plan for Yes Bank had sought full write-down of AT-1 bonds. Mutual funds and other bondholders have invested over Rs 8,400 crore in Yes Bank’s AT-1 bonds.
• ABB India: The board has approved the proposal to sell the company’s solar inverter business to the group’s wholly-owned Italian arm ‘Fimer’ for Rs 100.6 crore. The business transfer agreement will be effective from April 1.
• Biocon: The U.S. FDA has accepted the biologics license application for Mylan’s Avastin, which is used for cancer treatment, according to a Bloomberg report.
• Narayana Hrudayalaya said that the company has agreed for non-extension of the contract with Karnataka Chinmaya Seva Trust to operate a heart centre in Bengaluru.
• Oriental Bank of Commerce reduced its one-year MCLR by five basis points to 8.1 percent which is effective from March 10.
• Max Financial Services will seek shareholders’ nod for the restructuring of its business with Mitsui Sumitomo Insurance and Max Life Insurance on April 2.
• Muthoot Finance to consider raising funds via NCDs on March 17.
• Firstsource Solutions: HDFC Mutual Fund increased its stake from 5.03 percent to 7.03 percent, on March 6.
• Future Retail said in its strategic update that the break-even for small stores to be achieved by September 2020 and the first 7 Eleven stores will open by April 2020 in Mumbai. Target Net/Ebitda of 1.5 times by financial year 2022 and less than 0.2 times in the next three years.
• HBL Power Systems received order worth Rs 155 crore technology solutions to Railways and the Indian Navy. The company also received export orders of $3.6 million dollars for the supply of Lithium Thermal Batteries.
• Infosys said that it has completed the process of dissolution of its minority stake in Waterline Data.
• Shriram Transport Finance: The Enforcement Directorate imposed a penalty of Rs 5 crore for contraventions in forex markets, and penalty of Rs 1.5 crore on three persons, the then directors of Shriram Holdings (Madras).
• Granules India: The record date of March 20 set as the record date for a share buyback.
• Wonderla Holidays: In the view of emerging cases of coronavirus in Kerala, the company has decided to temporarily close Kochi Park between March 11-20.

Brokerage Radar

HSBC on Aviation

• COVID-19 creates significant uncertainty.
• Impact of demand cut in air travel soften by lower oil prices.
• Slot usage rules force airlines to operate flights even with lower load factors.
• IndiGo: Upgraded to ‘Hold’ from ‘Reduce’; cut price target to Rs 1,195 from Rs 1,295.
• SpiceJet: Maintained ‘Buy’; cut price target to Rs 90 from Rs 110.5.

UBS on Bharat Electronics

• Maintained ‘Sell’; cut price target to Rs 67 from Rs 96/
• Defence capex spend growth softening; cut FY20-21 EPS estimates by 24-31 percent.
• Revenue growth to remain under pressure over the medium term.
• Expect EBITDA margin to remain under stress for some time.

UBS on DLF

• Maintained ‘Buy’ with a price target of Rs 240.
• Share price lost most of its recent outperformance.
• DLF’s plan B is to continue to turnaround the development business.
• Strong annuity portfolio ripe for re-rating.

Credit Suisse on GAIL

• Downgraded to ‘Underperform’ from ‘Outperform’; cut price target to Rs 88 from Rs 171.
• Sharp fall in crude prices will likely lead to losses in trading segment.
• Concerns on potential loss of $500 million on US LNG contracts and lower profitability in LPG segment.
• See slow gas demand pick-up with decline in prices for alternative fuels.

Macquarie on Reliance Industries

• Upgraded to ‘Neutral’ from ‘Underperform’; cut price target to Rs 1,145 from Rs 1,300.
• Remove Aramco deal premium from target price as Saudi potentially plays defence in terms of its own cashflows.
• Sharp fall in target price was the reason behind upgrade.
• Continue to see consensus earnings downgrade risk.

Citi on PNB

• Maintained ‘Sell’; cut price target to Rs 40 from Rs 59.
• Merged entity will be the second-largest PSU bank.
• Stress remains high; watch for integration challenges.
• Cut EPS estimates by -60 percent, -9 percent and -3 percent for the current and the next two financial years respectively to factor in recent results and higher credit costs.

Bulk Deals

• Shaily Engineering Plastics: IDFC Mutual Fund acquired 2.8 lakh shares (3.37 percent) at Rs 380 each

Pledged Share Details

• Asian Paints promoter Geetanjali Trading & Investments released pledge of 1.40 crore shares from March 3-9
• Uflex promoters created pledge of 5.35 lakh shares on March 7
• Max Financial Services promoter Max Ventures Investment created pledge of 12.79 lakh shares from March 5-6
• Ganesha Ecosphere promoters released pledge of 22.8 lakh shares on March 4
• Max India promoter Max Ventures Investment created pledge of 74.47 lakh shares on March 5

(As Reported On March 9)

Trading Tweaks

• NIIT Technologies ex-date for share buyback
• Indiabulls Ventures, Reliance Communications, Bajaj Hindusthan Sugar, Hotel Leela Venture to move into short term ASM Framework
• Dollar Industries, Artemis Medicare Services to move out of short term ASM Framework
• Dwarikesh Sugar Industries, Corporation Bank, Avadh Sugar & Energy, India Tourism Development Corporation, Olectra Greentech price band revised to 10 percent
• Alok Industries, Suzlon Energy, Sadbhav Engineering, HCL Infosystems price band revised to 5 percent

Who’s Meeting Whom

• Mahindra & Mahindra to meet Tokio Marine Asset Management on March 11
• Mahindra & Mahindra Financial Services to meet BOB Capital Markets, Enam Group and other investors from March 11-12
• Thyrocare Technologies to meet Crescita Management on March 11
• Cipla to meet APG Pension Fund, HDFC Securities and Dalal & Broacha from March 11-12
• 3M India to meet Cataraman on March 11
• Sundram Fasteners to meet Jet Age Securities on March 12

Insider Trading

• Alembic promoter Nirayu acquired 23,000 shares on March 6
• Aarti Industries promoters sold 1 lakh shares from March 5-6
• Mold-Tek Packaging promoter Nandivada Padmavathi sold 1 lakh shares on Feb. 28

(As Reported On March 9)

Money Market Update

The rupee ended weaker at Rs 74.09 against the dollar on Monday versus Rs 73.79 against the dollar on Friday.

F&O Cues

Futures

• Nifty March futures closed at 10,462.3, premium of 10.95 points.
• Nifty March futures OI down 1 percent, sheds 1.6 lakh shares in OI.
• Nifty Bank March futures closed at 26,525.7, premium of 63 points.
• Nifty Bank March futures OI up 8 percent, adds 96,000 shares in OI

Options

• Nifty PCR at 1.04 versus 1.25 (across all series)

Nifty weekly Expiry: March 12

• Max OI on call side at 11,000 (28.2 lakh shares)
• Max OI on put side at 10,000 (14.3 lakh shares)
• OI addition seen in10,800C (+12.2 lakh shares), 10,700C (+11.4 lakh shares), 9,500P (+6.1 lakh shares)

Nifty Monthly Expiry: March 26

• Max OI on call side at 12,000 (27.7 lakh shares)
• Max OI on put side at 11,000 (32.7 lakh shares)