All You Need To Know Going Into Trade On November 17
Asian markets are little changed in early trade this morning as the rally that propelled them to a record high took a pause.
Benchmark indices in Japan, South Korea and Australia are flat as compared to their peers like the S&P 500, which ended at an all-time high on Monday.
The U.S. Dollar extended its decline while treasury yields were back above the 0.9% mark.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.3% to 12,874 as of 6:50 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 lower by 40 points. The index ended 1.6% higher on Monday.
- Stocks received a boost after Moderna said that their vaccine is 94.5% effective in a preliminary analysis of a large late-stage clinical trial.
- “We might be transitioning from a defensive bull market to a more cyclically offensive one but more clarity is required in terms of when social mobility will normalise,” Chris Iggo, chief investment officer of AXA Investment Managers Core Investments, said in a note.
- Meanwhile, Covid-19 cases continue to escalate in U.S. and Europe with the seven-day average of new cases in the U.S. climbing in every state on Sunday.
- Yield on the 10-year treasuries stood at 0.9%.
- West Texas Intermediate crude rose 0.2% to $41.4 per barrel. The OPEC+ Joint Ministerial Monitoring Committee is set to meet today.
Get your daily fix of the global markets here.
Stocks To Watch
- BPCL: Divestment Secretary Tuhin Kanta Pandey tweeted that several EoIs were received for the company's proposed stake sale. Bloomberg News reported that bids were received from global as well as local players.
- Wipro: Announces strategic partnership with SNP SE to help customers accelerate their enterprise transformation journey.
- Reliance Industries: Reliance Retail has acquired approximately 96% stake in Urban Ladder for Rs 182.12 crore.
- PVR: Launched a new single screen cinema in Lucknow, and opened three new screens in Faridabad.
- Larsen & Toubro: Has emerged as the lowest bidder for a Rs 3,200 crore project to build a road bridge over the Brahmaputra river, PTI reported quoting a NHIDCL official.
- NBCC: Received total work orders worth Rs 1,165.5 crore in October.
- Oil India: Says blowout at the company's Baghjan well in Assam has been doused successfully.
- HDFC AMC: Appointed Navneet Munot as its MD and CEO. He will succeed Milind Barve.
- Future Consumer: Has defaulted on payment of interest on NCDs worth Rs 13.88 crore. It had sought deferment for payment of interest due on NCDs up to November 15, 2020.
Morgan Stanley On India Economic Outlook
- Maintain constructive view on the economy
- Growth trend to remain on steady recovery path
- Best of easy monetary policy is behind us
- Consumption to recover from pandemic-related disruptions
- Private capex to start showing signs of recovery in 9-12 months
- External demand to remain supportive for exports
- Risks: Delay in vaccine availability, resurgence in Covid-19 cases, Slowdown in global growth, increase in credit stress domestically
Morgan Stanley On Tata Steel
- Overweight rating maintained
- Price target raised to Rs 690 from Rs 565
- Rising steel prices, domestic iron ore prices and soft coking coal prices good for India business
- Potential sale of Netherlands operations could be a material deleveraging transaction
- Raise FY21-23 Ebitda estimates by 8-23%
- Well placed in the current industry upcycle
- Bull case target raised to Rs 1,000 from Rs 705
Ambit Capital On Natco Pharma
- Sell rating maintained
- Price target of Rs 860
- Valuation concerns stemming from concentration risks
- 50-55% Ebitda exposure to one product and weakness in domestic market a concern
- Limited positive earnings surprise catalysts
- Agrochem foray is contingent on litigation outcome and regulatory approval
Ambit Capital On Techno Electric & Engineering
- Buy rating maintained
- Two-Year Price Target raised to Rs 303 from Rs 302
- Visibility on orders intact
- Wind asset monetisation to take time
- Expect post-tax RoCE of 13% in FY23E from 9% in FY20
- Declared an interim dividend with more to come
Kotak Institutional Equities On Grasim
- Add rating maintained
- Price target raised to Rs 875 from Rs 700
- Bottom of the cycle is now behind
- Both VSF and Chemical division seeing demand and margin recovery
- Capacity expansion provides growth visibility
- Capital allocation discipline should reduce holding company discount
- Divestment of non-core fertiliser division a welcome step
- Risk of investment in group companies like Vodafone Idea remains a key overhang
- Eveready Industries: IndusInd Bank sold 12 lakh shares (1.65%) at Rs 154.93 per share
Who’s Meeting Whom
- Mahindra & Mahindra: To meet MFS Investment Management on November 17.
- Rallis India: To meet Canara Robeco AMC, Centrum PMS and other investors between November 17-20.
- Mahindra Lifespace Developers: To meet Anived Portfolio Managers and Buena Vista Fund between November 18-19.
- AGM: Gillette India.
- Price Band Revised From 20% To 10%: GATI, Snowman Logistics, ANG Lifesciences.
- Price Band Revised From 10% To 5%: IG Petrochemicals.
- Nifty November futures closed at 12,782; premium of 2 points from 13 points.
- Nifty November futures add 0.8% and 96,000 shares in Open Interest.
- Nifty Bank November futures closed at 28,520; discount of 74 points from premium of 31 points.
- Nifty Bank November futures shed 0.7% and 13,000 shares in Open Interest.
- Nifty Put-Call Ratio at 1.57
- Stocks In F&O Ban: BHEL, Canara Bank, Indiabulls Housing Finance, JSPL, LIC Housing Finance, SAIL, Sun TV, Tata Motors
Nifty: November 19 Expiry
- Maximum Open Interest on Call side at 13,000 strike (32.2 lakh shares)
- Maximum Open Interest on Put side at 12,700 strike (24.3 lakh shares)
- Active Options: 12,800 Put (+5.2 lakh shares) and 12,700 Call (-4.5 lakh shares)
Nifty: November 26 Expiry
- Maximum Open Interest on Call side at 13,000 strike (20.2 lakh shares)
- Maximum Open Interest on Put side at 12,000 strike (33.9 lakh shares)