All You Need To Know Going Into Trade On Nov. 18

Stocks saw a muted open to the week in Asia as investors await fresh developments on the U.S.-China trade front.

Japanese and South Korean equities were little changed in early trading, while those in Australia dropped. U.S. futures were flat. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded little changed at 11,939 as of 7 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.

Indian ADRs

Stocks To Watch

• Tata Steel’s long-term rating affirmed by S&P at BB-. Outlook revised to Stable from Positive. The company has completed its stake sale in its Vietnamese arm NatSteel to Thai Hung Trading for Rs 36 crore.
• Unichem Lab received ANDA approval for Buspirone Hydrochloride Tablets from the U.S. FDA to market generic version of Buspar Tablets. These tablets are used to treat anxiety disorders. The product will be commercialized from company’s Ghaziabad plant.
• IIFL Wealth’s board approved transfer of distribution business to company’s arm IIFL Wealth Finance and transfer of portfolio management services business to company’s subsidiary IIFL Alternate Asset Advisors.
• Adani Transmission approved issuance of notes aggregating to $500 million.
• HCL Infosystems has completed the sale of its Singapore arm to PCCW Solutions for SGD 57.6 million.
• Pokarna said that the U.S. Department of Commerce has amended preliminary CVD for PESL from 4.32 percent to 83.79 percent and the company strongly disagrees with this move.

• Jewellery stocks: India raised duty drawback on gold jewellery to Rs 372.9 per gram and for silver jewellery to Rs 4,332.2 per kilogram, according to Bloomberg report.
• Vedanta said that it is the highest bidder for Jamkhani Coal Block, according to Bloomberg report.
• Sterling & Wilson Solar said that there is no reduction sought in the inter-company loan by the promoters from the company.
• Vadilal Industries: Deloitte Haskins & Sells LLP resigned from the statutory auditor’s post with effect from Nov. 15.
• Tata Motors approved allotment of NCDs worth Rs 500 crore.
• MOIL: record date for share buy-back at Nov. 27.
• HIL has commenced production of CpVC, UpVC and SWR Pipes at Thimmapur Plant in Telengana.
• PPAV Automotive arm Elpis Components Distributors commenced its operations with effect from Nov. 15.

Brokerage Radar

Kotak Securities on Endurance Tech

• Maintained ‘Sell’; hiked price target to Rs 915 from Rs 835.
• Weak operating performance impacted by industry slowdown; valuations expensive.
• Likely to benefit from stricter safety norms for two wheeler in India and increase in aluminum content in passenger vehicles in Europe.

Citi on Vodafone Idea

• Maintained ‘Neutral’; cut price target to Rs 4 from Rs 10.5.
• September quarter review: Operationally weak; management hopeful of government relief.
• Revenue decline driven by seasonality, continued churn at lower end and ARPU downtrading.
• Significant uncertainties remain given weak operating performance, high leverage and additional AGR liability.

Citi on L&T

• Maintained ‘Buy’; hiked price target to Rs 1,700 from Rs 1,563.
• Well placed in core E&C business; Consummation of E&A sales to strengthen balance sheet further.
• RoE to expand further; expect RoE of 16 percent by 2020-21 versus 13.6 percent in 2018-19.
• Top pick in India industrials and infrastructure.

Goldman Sachs on Page Industries

• Downgraded to ‘Neutral’ from ‘Buy’; cut price target to Rs 23,285 from Rs 24,295.
• Sales growth higher than expectations, but profit miss due to weak margins.
• Cut FY20-24 EPS estimates to reflect slightly lower margins.
• Page expects to raise prices by 3-5 percent in a phased manner.

On Glenmark Pharma

CLSA

• Upgraded to ‘Buy’ from ‘Sell’; hiked price target to Rs 410 from Rs 350.
• Second quarter results ahead; attractive valuations drive upgrade in rating.
• U.S. strong QoQ; India continues to grow above industry.
• No debt reduction in the first; unlikely to decline significantly in near term.

IDFC Securities

• Upgraded to ‘Outperformer’ from ‘Neutral’; maintained price target to Rs 470.
• Strong performance driven by US & India backed by cost optimization.
• Believe a combination of capex optimization along with improvement in operating performance should enable the company to finally start generating free cash flows from 2020-21.

On Balkrishna Industries

Kotak Securities

• Downgraded to ‘Reduce’ from ‘Buy’; cut price target to Rs 850 from Rs 875.
• September quarter review: Ebitda above estimates despite sharp miss on revenue front.
• Concern around trade wars, slowdown in global growth and weather-related uncertainties in agri segment will continue to weigh on volume growth.
• Cut FY21-22 EPS estimates by 9-10 percent and downgrade on weak near-term outlook.

Nomura

• Upgraded to ‘Neutral’ from ‘Reduce’; hiked price target to Rs 840 from Rs 668.
• Key positive was, unlike first quarter, the industry maintained its pricing discipline.
• Near-term demand concerns remain; cyclical recovery to play out from 2020-21.
• Raise EPS estimates for the current and the next two financial years by 20 percent, 8 percent and 11 percent respectively on a lower tax rate.

Bulk Deals

• Mcleod Russel: Edgbaston Asian Equity Trust sold 48 lakh shares 4.6 percent at Rs 7.23 each
• Reliance Infra: Axis Trustee Services sold 17.6 lakh shares 0.68 percent at Rs 36.68 each
• Eris Lifesciences: Nomura Singapore acquired 9.5 lakh shares 0.69 percent at Rs 410 each

Deep Industries

• Antara India Evergreen Fund acquired 2.34 lakh shares or 0.73 percent equity at Rs 108.94 each
• Auctor Investments sold 2.34 lakh shares or 0.73 percent equity at Rs 108.94 each

Trading Tweaks

• AU Small Finance Bank, Indo-National, Rushil Decor to move into short term ASM Framework
• GVK Power & Infrastructure, Indiabulls Integrated Services, KSK Energy Ventures, SORIL Infra Resources to move out of short term ASM Framework.
• RMC Switchgears price band revised to 10 percent.
• Cox & Kings, Reliance Communications, GFL, Sanwaria Consumer, Talwalkars Healthclubs to move out of ASM Framework

Who’s Meeting Whom

• Mahindra & Mahindra to meet CI Investments, HDFC Securities and other investors from Nov.18-21
• IGSEC Heavy Engineering to meet Aditya Birla Sun Life Insurance, DSP Investment Managers and other investors on Nov. 18.
• IIFL Finance to meet William Blair, Fidelity Group and other investors from Nov. 18-20
• Mahindra Logistics to meet JP Morgan AMC, First State Investments and other investors from Nov. 19-22

Insider Trading

• Zensar Technologies promoters acquired 42,000 shares from Nov. 11-13
• Ultratech Cement promoter IGH Holdings sold 2.1 lakh shares from Nov. 8-11
• Parag Milk Foods promoter Devendra Shah acquired 2 lakh shares on Nov. 15

Money Market Update

• The Indian rupee ended higher against the U.S. dollar on Friday. The home currency appreciated 0.25 percent to close at 71.79 against the greenback. The local legal tender, however, ended lower last week after depreciating 0.71 percent during the period.

F&O Cues

Futures

• Nifty November futures closed at 11,942.6, premium of 47.2 points versus 27.5 points.
• Nifty November futures OI up 1 percent, adds 2.1 lakh shares in OI.
• Nifty Bank November futures closed at 31,052, premium of 43.8 points versus 20.6 points.
• Nifty Bank November futures series OI up 5 percent, adds 80,000 shares in OI

Options

• Nifty PCR at 1.39 versus 1.40 (across all series)

Nifty Weekly Expiry: Nov 21

• Max OI on call side at 12,000 (20.6 lakh shares)
• Max OI on put side at 11,800 (15.8 lakh shares)
• OI addition seen at 12,000C (10.7 lakh shares), 11,900P (+6.1 lakh shares)

Nifty Monthly Expiry: Nov 28

• Max OI on call side at 12,000 (22,000 shares)
• Max OI on put side at 11,600 (21.8 lakh shares)

Stocks In F&O Ban

• Just Dial