All You Need To Know Going Into Trade On November 20
Asian markets are mixed on the final trading day of the week. Benchmark indices in Japan are declining, while those in South Korea and Australia trade with modest gains.
Tech shares led U.S. markets higher overnight as investors weighed the impact of tougher virus restrictions against the prospects of a vaccine rollout.
Treasury yields held losses while the U.S. Dollar steadied.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.23% to 12,804 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 trading 200 points lower. The index ended with gains of 0.2% on Thursday.
- U.S. futures are declining after Treasury Secretary Steven Mnuchin and the U.S. Federal Reserve publically disagreed over whether to extend the pandemic programs.
- Tesla rose to a record high overnight as investors bet that the global car market will be dominated by EVs in the decades ahead.
- The International Monetary Fund and Group of 20 nations warned that fresh restrictions on households and companies due to the resurgence of Covid-19 are a risk to the global economic recovery.
- Elsewhere, Turkey’s lira strengthened after the country’s new central bank governor raised the benchmark interest rate.
- Yields on the 10-year treasuries stood at 0.82%.
- West Texas Intermediate crude fell 0.6% to $41.51 per barrel.
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Stocks To Watch
- Reliance Industries: Reliance Retail Ventures has received a total of Rs 47,265 crore from 9 financial partners and allotted 10.09% stake and has completed the current phase of raising funds.
- Bharti Infratel: Merger of Indus Towers into the company has been completed. Vodafone Idea has received cash worth Rs 3,760 crore for its 11.5% shareholding in Indus. Board allotted 75.8 crore shares of Rs 10 each to the Vodafone Group and 8.75 crore shares to P5 Asia Holding Investments aggregating to 28.12% and 3.25% respectively in the post-issue share capital of the company.
- Infosys: The company's arm 'Simplus' has announced a vaccine management solution aligned with salesforce work.com for vaccines.
- Apollo Hospitals: Announces collaboration with Tata Medical and Diagnostics to introduce Covid-19 testing across India. To begin with 10,000 tests in NCR from the first week of December and then follow with a national rollout.
- Mphasis: Acquired data engineering and consultancy company Datalytyx for 13.3 million pounds.
- Adani Enterprises: Raised Rs 34.3 crore by allotment of 343 secured, rated, listed, redeemable, principal protected market linked NCDs worth Rs 10 lakh each on a private placement basis. The NCDs will be listed on the wholesale debt market segment of BSE.
- South Indian Bank: Revised MCLR rates from November 20. One-month MCLR at 7.95% and one-year MCLR at 8.2%.
- Tata Steel: HDFC Mutual Fund decreased its stake to 2.96% from 5.02% on November 12.
- Aarti Industries: HDFC Mutual Fund reduced its stake to 5.08% from 7.08% on November 17.
- Syngene International: Signs five-year strategic collaboration with Deerfield Discovery and Development Corporation, where 3DC has chosen Syngene as a key execution partner for a developing portfolio of molecular entities, spanning multiple therapeutic areas and modalities.
- Emami: Entered into home hygiene products segment with the launch of Emasol brand. Products include disinfectant floor cleaner, toilet cleaner, sanitizer, dish wash gel and bathroom cleaner.
- Route Mobile: Chandrakant Gupta stepped down as Chairman and will be replaced by Sandipkumar Gupta.
- Zee Learn: L&T Infra Finance increased stake by 1.26 crore shares via off market transfer from security trustee & appropriated against loan outstanding amounts on November 18. L&T Finance and L&T Infra Finance now hold 6.8% stake in the company.
CLSA On HCL Technologies
- Buy rating maintained
- Price target of Rs 1,000
- Risk-reward attractive in our view
- Opportunity from cloud migration likely to play out over a five-year period
- Now positioning itself in digital application services
Jefferies On Finolex Cables
- Buy rating maintained
- Price target raised to Rs 425 from Rs 415
- Housing wires demand now at pre-Covid levels
- Communication cables business dragged by weak offtake from telcos
- Trim FY21E EPS by nearly 6%
- Mindful of near-term risks but current valuations are undemanding
- Key Risks: Extended slowdown, weak traction in new products
- Key Monitorable: Family tussle within the group as reported by the media
Jefferies On Bharat Electronics
- Buy rating maintained
- Price target of Rs 130
- Margins at 20% should be sustainable according to the management
- Board approval in place for 8-10% of turnover being invested in R&D
- Non-defence initiatives are interesting though opportunities are hard to quantify
- Market share should improve as Make In India gathers pace
Pledge Share Details
- Uflex: Promoter Flex International released pledge of 1.75 lakh shares on November 18.
- Max Financial Services: Promoter Max Ventures Investment Holdings created pledge of 9.25 lakh shares on November 18.
(As reported on November 19)
- Mahindra Holidays & Resorts: Unifi Capital acquired 15.5 lakh shares (1.16%) at Rs 183 per share and PPFAS Mutual Fund sold 21.3 lakh shares (1.60%) at Rs 183.04 per share.
- Himadri Speciality Chemicals: Promoter Himadri Credit and Finance sold 54.24 lakh shares (1.30%) at Rs 42.59 per share.
Who’s Meeting Whom
- Dixon Tech: To meet Franklin Templeton on November 26.
- CAMS: To meet Yes Securities, Franklin Templeton AMC and other investors between November 23 - December 4.
- Eicher Motors: To meet Amundi Pioneer, AIA International and other investors between November 20-24.
- IPO Listing: Gland Pharma
- Ex-Date For Share Buyback: NMDC
- Record Date For Share Buyback: Asahi Songwon Colors.
- Record Date For Rights Issue: Shoppers Stop (Rights at 17:70 at premium of Rs 135 per share)
- Price Band Revised From 20% To 10%: Lakshmi Vilas Bank.
- Price Band Revised From 10% To 5%: Sicagen India.
- Move Into ASM Framework: AYM Syntex.
- Move Into Short Term ASM Framework: Kirloskar Ferrous, ICE Make Refrigeration, Spandana Sphoorty Financial, Zuari Global, Everest Kanto Cylinder.
- Move Out Of Short Term ASM Framework: Thomas Cook, Indo-National, Prabhat Dairy, Jubilant Industries, Shilp Gravures.
- Great Eastern Shipping: Promoter Gopali Mulji sold 1.86 lakh shares between November 17-18.
- Aurobindo Pharma: Promoter Kambam Reddy sold 3 lakh shares on November 18.
- Panama Petrochem: Promoters acquired 1.32 lakh shares between November 17-19.
(As reported on November 19)
Money Market Update
- The rupee ended with modest losses at 74.27 against the U.S. Dollar on Thursday as compared to Wednesday's close of 74.19.
- Despite the losses, the rupee was the third best performing currency in Asia on Thursday.
- Nifty November futures closed at 12,777; premium of 5 points from 27 points
- Nifty November futures shed 1.6% and 1.9 lakh shares in Open Interest
- Nifty Bank November futures closed at 28,858; discount of 45 points from premium of 9 points
- Nifty Bank November futures shed 5.7% and 1 lakh shares in Open Interest
- Nifty Put-Call Ratio at 1.16
- Enters F&O Ban: DLF, L&T Finance Holdings
- Out Of F&O Ban: Tata Steel, JSPL
- Stocks In F&O Ban: Bank of Baroda, BHEL, Canara Bank, DLF, Indiabulls Housing Finance, L&T Finance Holdings, PNB, RBL Bank, SAIL, Sun TV, Vodafone Idea
Nifty Monthly Expiry: Nov 26
- Maximum Open Interest on Call side at 13,000 strike (33.3 lakh shares)
- Maximum Open Interest on Put side at 12,000 strike (37 lakh shares)
- Active Options: 12,000 Put (+7.7 lakh shares) and 12,900 Call (+18.7 lakh shares)