All You Need To Know Going Into Trade On November 19
Marine Drive in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

All You Need To Know Going Into Trade On November 19

Asian markets are poised to end their longest winning streak in over three decades in today's session. Restrictions to curb Covid-19 are overshadowing progress towards a potential vaccine.

Benchmark indices edged lower in Japan, Australia and South Korea.

The Bloomberg Dollar Spot Index headed higher after falling to its lowest since April 2018. Until Wednesday, an MSCI gauge of Asian stocks had risen for 13 straight sessions.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 0.8% to 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 little changed. The index ended 1.2% lower on Wednesday.
  • Shares of Pfizer gained after saying that its vaccine was 95% effective, paving the way to apply for the first U.S. regulatory authorisation.
  • “Progress toward a vaccine is promising and suggests a light at the end of the tunnel, but there’s no telling for sure how long that tunnel is.” Adam Phillips, director of portfolio strategy at EP Wealth Advisors told Bloomberg.
  • Yield on the 10-year treasuries stood at 0.86%.
  • West Texas Intermediate crude fell 0.8% to $41.49 per barrel.

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All You Need To Know Going Into Trade On November 19

Stocks To Watch

  • Wipro: December 11 fixed as record date for share buyback. The company had announced a buyback of 23.75 crore shares at Rs 400 apiece.
  • Hero MotoCorp: Says sold 14 lakh units in retail sales during the festive period. Dealer level inventory now less than four weeks which is the lowest ever post-festive inventory. The company also said that it has gained market share of over 500 basis points during the festive season.
  • Punjab & Sind Bank: To consider allotting equity shares worth Rs 5,500 crore to the Government of India on preferential basis on November 21.
  • GPT Infra: Gets order worth Rs 168.2 crore for the repair of Hooghly Bridge from the state government of West Bengal.
  • Future Lifestyle Fashions: CRISIL Ratings downgrades NCDs to CRISIL D (Default) from CRISIL B. Outlook remains ratings watch with negative implications.
  • Prabhat Dairy: Creates escrow account worth Rs 500 crore with Yes Bank as per directives of the Appellate tribunal.
  • Shriram City Union Finance: To meet ICICI Securities On November 19.

Brokerage Radar

Macquarie On Wipro

  • Outperform rating maintained
  • Price target of Rs 416
  • Five key focus areas for the new CEO: Growth, sales transformation, solution-focussed approach, simplification of organisation structure and nurturing talent
  • Execution is the key to new CEO's strategy
  • A disciplined capital allocation policy with a payout of 45-50% of profit to shareholders to continue
  • M&M likely to increase in the near-term

UBS On Wipro

  • Sell rating maintained
  • Price target of Rs 210
  • Strategic changes in the right direction
  • Enhanced customer focus is a welcome step, but is it priced in?
  • Centralisation, investments, geo focus, cultural change some key risks
  • Leadership influx, if any, needs to be watched
  • Will track signposts such as large contract wins for signs of strategy success

BofA Securities On UTI AMC

  • Initiate coverage with neutral rating
  • Price target of Rs 560
  • Market share loss trend beginning to reverse
  • Scope for margin expansion with AUM growth revival
  • Will positioned to capitalise on growth in under-penetrated Mutual Fund market
  • Sustenance of market share gains can make us more positive
  • Downside risks: Continued market share loss, sticky employee costs
  • Upside Risks: Sustained cost reduction as AUM rises, rise in equity market share

Pledge Share Details

  • Hatsun Agro: Promoter RG Chandramogan created pledge of 6 lakh shares on November 16.
  • JSW Steel: Promoters revoked pledge of 34.2 lakh shares on November 13.
  • Sun Pharma: Promoters Shangvi Finance created pledge of 41 lakh shares on November 12.
  • Zee Learn: Promoters invoked pledge of 1.25 crore shares on November 12.

As reported on November 18

Bulk Deals

  • Trident: Trident Employees Welfare Trust acquired 10 crore shares (1.96%) at Rs 7.5 per share and Rainbow Integrated Texpark sold 10 crore shares (1.96%) at Rs 7.5 per share.
  • Lakshmi Vilas Bank: Capri Global Holdings sold 20.55 lakh shares (0.61%) at Rs 12.4 per share.

Trading Tweaks

  • Ex-Date For Share Buyback: Asahi Songwon Colors.
  • Ex-Date For Rights Issue: Shoppers Stop (Rights at 17:70 at premium of Rs 135 per share)
  • Price Band Revised From 20% To 10%: Adani Gas, Thomas Cook, Jagson Pharma, Refex Industries.
  • Price Band Revised From 5% To 20%: Subex.
  • Move Into ASM Framework: GATI, Shreyas Shipping & Logistics.
  • Move Into Short Term ASM Framework: MAS Financial Services, HSIL, HPL Electric & Power, Premier Polyfilm, Flexituff Ventures, RDB Rasayans.
  • Move Out Of Short Term ASM Framework: Anant Raj.

Insider Trades

  • HFCL: Promoter MN Ventures acquired 7.5 lakh shares on November 18.

(As reported on November 18)

Money Market Update

  • The rupee appreciated against the U.S. Dollar on Wednesday, ending at 74.19 against the greenback, as compared to Tuesday's close of 74.46.

F&O Cues

  • Nifty November futures closed at 12,965; premium of 27 points from 15 points
  • Nifty November futures shed 0.7% and 82,000 shares in Open Interest
  • Nifty Bank November futures closed at 29,759; premium of 9 points from 28 points
  • Nifty Bank November futures add 0.7% and 12,000 shares in Open Interest
  • Nifty Put-Call Ratio at 1.66
  • Enter F&O Ban: Bank of Baroda, PNB, RBL Bank, Vodafone Idea
  • Out of F&O Ban: LIC Housing Finance
  • Stocks In F&O Ban: Bank of Baroda, BHEL, Canara Bank, Indiabulls Housing Finance, JSPL, PNB, RBL Bank, SAIL, Sun TV, Tata Steel, Vodafone Idea

Nifty Weekly Expiry: November 19

  • Maximum Open Interest on call side at 13,000 strike (35.2 lakh shares)
  • Max Open Interest on put side at 12,800 strike (38.5 lakh shares)
  • Active Options: 12,900 Put (+21 lakh shares), 13,100 Call (+5.6 lakh shares)

Nifty Monthly Expiry: November 26

  • Maximum Open Interest on Call side at 13,000 strike (19.2 lakh shares)
  • Maximum Open Interest on Put side at 12,000 strike (29.3 lakh shares)
All You Need To Know Going Into Trade On November 19
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