All You Need To Know Going Into Trade On November 18
Shoppers wearing protective masks leave a Walmart store in Lakewood, California, U.S. (Photographer: Patrick T. Fallon/Bloomberg)

All You Need To Know Going Into Trade On November 18

Asian markets are mixed in mid-week trading as investors weigh rising Covid-19 cases against optimism of a vaccine.

Benchmark indices are declining in Japan while those in Australia and South Korea are edging higher.

Treasury yields and the U.S. Dollar held declines after Federal Reserve Chair Jerome Powell said that the U.S. economy still has a 'long way to go' before it fully recovers from the pandemic.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was little changed at 12,886 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.

Let’s take a look at the factors that may influence equities in today’s session:

  • Futures on the Dow Jones are currently trading 50 points lower. The index ended 0.6% lower on Tuesday.
  • Pharma stocks were among the worst performers overnight after Amazon unveiled a new push into prescription drugs.
  • U.S. Securities and Exchange Commission is pushing ahead with a plan that threatens to remove Chinese companies off the U.S. stock exchanges.
  • On the stimulus front, Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer on Tuesday asked Senate Majority Leader Mitch McConnell to resume negotiations, while McConnell stuck to his insistence on a targeted package.
  • The pound rose on signs that the U.K. and European Union are nearing a breakthrough on Brexit as early as next week.
  • Yield on the 10-year treasuries stood at 0.86%.
  • West Texas Intermediate crude fell 0.5% to $41.22 per barrel.

Get your daily fix of the global markets here.

All You Need To Know Going Into Trade On November 18

Stocks To Watch

  • Lakshmi Vilas Bank: The RBI has placed the lender under moratorium for a month till December 16. Deposit withdrawals capped at Rs 25,000. RBI outlines scheme to merge the lender's operations with DBS Bank India, which will bring in additional capital of Rs 2,500 crore upfront. The fund infusion, on approval of the scheme, will be done through existing resources of DBS to support the amalgamation. DBS Bank India is a subsidiary of DBS Bank, Singapore.
  • DLF: Recognized as an index component of the Dow Jones Sustainability Indices in emerging markets category.
  • Nippon Life India AMC: Has made submission to the exchanges with respect to the re-classification of Reliance Capital from the ‘Promoter and Promoter Group’ category to ‘Public’ category, after receiving approval from shareholders and SEBI.
  • Tata Steel: HDFC Mutual Fund reduced its stake to 2.96% from 5.02% on November 12.
  • IIFL Securities: To consider share buyback proposal on November 20.
  • IRCTC: Cancelled running of two Tejas Express trains due to low occupancy levels owing to Covid-19.
  • PTC India: Aditya Birla Sun Life Mutual Fund reduced its stake to 3.42% from 5.46% on November 12.
  • Mukand: In a letter addressed to shareholders, Chairman and Managing Director Niraj Bajaj said that the company has signed an MoU for the transfer of the company's surplus 55 acrelease hold land in Thane and another for its lease hold land in Sinnar in Maharashtra. The transactions are likely to be completed before the end of the current financial year. The letter also said that the company is in the process of completing regulatory requirements for the shareholder approved sale of the company's shares in Mukand Sumi Special Steel to the promoter entity. The first tranch of Rs 713 crore, out of the total consideration of Rs 1,213 crore is likely to be received in Q3FY21.

Brokerage Radar

BofA Securities On Bajaj Finance

  • Buy rating maintained
  • Price target raised to Rs 5,050 from Rs 4,505
  • Target of 3-3.5% of total credit in India over the next 4-5 years
  • Growth in the recent festive season has been better than expectations
  • Management focus is to get back to pre-Covid growth rates by March 2021.
  • Transformation plan is a priority to facilitate higher velocity and lower costs
  • Raise FY22-23E earnings estimates by 4-5% and increase stage-2 growth to 8.5% from 8%

HSBC On SpiceJet

  • Upgrade to buy from hold
  • Price target raised to Rs 80 from Rs 26.5
  • Strong cargo revenue and deferred expenses helped Q2 results
  • Survival risk has started to abate as the return of 737 Max gets closer
  • Stock has suffered mainly due to the questions around its survival
  • Abating of survival risk yet to build into stock price
  • Upgrade estimates significantly, implied FY22E EV/Ebitdar of 4.4x

Pledge Share Details

  • JSW Energy: Promoters revoked pledge of 33.8 lakh shares between November 12-13.
  • JSW Steel: Promoters revoked pledge of 32.9 lakh shares on November 12.
  • Ajanta Pharma: Promoter Ravi Agarwal released pledge of 9.7 lakh shares between November 12-13.

(As reported on November 17)

Bulk Deals

  • Eveready Industries: IndusInd Bank sold 8.5 lakh shares (1.17%) at Rs 156.37 per share.
  • Action Construction Equipment: IIFL Fund sold 6.5 lakh shares (0.57%) at Rs 87.05 per share and Vantage Equity Fund acquired 6.31 lakh shares (0.56%) at Rs 87.05 per share.
  • Tanla Platforms: Promoter Mobile Techsol acquired 17.1 lakh shares (1.26%) at Rs 391.3 per share, Amansa Investments acquired 40.84 lakh shares (3%) at Rs 391.3 per share while American Funds Insurance acquired 86 lakh shares (6.34%) at Rs 391.3 per share. Banyan Investments sold 1.5 crore shares (11.03%) at Rs 391.3 per share.

Who’s Meeting Whom

  • Oriental Aromatics: To meet Steinberg Asset Management, DAM Capital and other investors between November 18-25.
  • CAMS: To meet Warburg Pincus on November 18.
  • Supreme Industries: To meet ENAM Holdings, Axis AMC and other investors between November 18-19.
  • Advanced Enzyme Technologies: To meet Eternity Capital on November 19.

Trading Tweaks

  • AGM: Procter & Gamble Health.
  • Price Band Revised From 20% To 10%: Somany Home Innovation, SH Kelkar.
  • Price Band Revised From 10% To 5%: Ausom Enterprise, Hi-Tech Gears, Total Transport Systems.
  • Move Into ASM Framework: Lokesh Machines.
  • Move Into Short Term ASM Framework: GATI, Somany Home Innovation, Investment Trust Of India, GP Petroleums, Indiabulls Real Estate.
  • Move Out Of Short Term ASM Framework: CARE Ratings, Future Enterprises, Acrysil.

Insider Trades

  • Greaves Cotton: Promoter Karun Carpets acquired 97,000 shares between November 13-14.
  • Zee Media: Promoter 25FPS Media sold 1.29 crore shares on November 12.

(As reported on November 17)

Money Market Update

  • The rupee ended stronger at 74.46 against the U.S. Dollar, as compared to Friday's close of 74.62.
All You Need To Know Going Into Trade On November 18

F&O Cues

  • Nifty November futures closed at 12,889; premium of 15 points from 2 points
  • Nifty November futures shed 2% and 2.5 lakh shares in Open Interest
  • Nifty Bank November futures closed at 29,209; premium of 28 points from discount of 74 points
  • Nifty Bank November futures Open Interest flat, shed 600 shares
  • Nifty Put-Call Ratio at 1.66
  • Enters F&O Ban: Tata Steel
  • Out of F&O Ban: Tata Motors
  • Stocks In F&O Ban: BHEL, Canara Bank, Indiabulls Housing Finance, JSPL, LIC Housing Finance, SAIL, Sun TV, Tata Steel

Nifty Weekly Expiry: November 19

  • Maximum Open Interest on Call side at 13,000 strike (38.4 lakh shares)
  • Maximum Open Interest on Put side at 12,800 strike (24.5 lakh shares)
  • Active Options: 12,800 Put (+16.6 lakh shares) and 12,700 Call (-8.4 lakh shares)

Nifty Monthly Expiry: November 26

  • Maximum Open Interest on Call side at 13,000 strike (19 lakh shares)
  • Maximum Open Interest on Put side at 12,000 strike (30.5 lakh shares)
All You Need To Know Going Into Trade On November 18
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