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All You Need To Know Going Into Trade On November 24
Stocks in the news, big brokerage calls of the day, complete trade setup and much more!
24 Nov 2020, 07:13 AM IST 
A pedestrian wearing a protective mask passes in front of a mall in New York, U.S. (Photographer: Peter Foley/Bloomberg)
Asian markets have opened higher this morning after the triggering of a formal transition process to President-elect Joe Biden in the U.S. took stocks higher overnight.
Benchmark indices in Japan have opened higher post a holiday, along with those in Australia.
Sentiment was also boosted after people familiar with the matter told Bloomberg that Biden plans to nominate former Fed Chair Janet Yellen to be Treasury secretary.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was little changed at 12,957 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 higher by 170 points. The index closed 1.1% higher on Monday.
- The General Service Administration in the U.S. acknowledged Biden as the apparent winner of the Presidential election.
- Investors continue to lap up assets that could benefit from end of lockdowns, even as the Covid-19 rages across the U.S. and Europe.
- “I think investors will come in and buy the dip, and I do think you will continue to have the rotation to those value names, small-cap names, things that are leveraged to the economic cycle,” Brent Schutte of Northwestern Mutual Wealth Management told Bloomberg.
- Data indicated U.S. business activity rose in November at the fastest pace since March 2015.
- West Texas Intermediate crude rose 0.2% to $43.13 per barrel.
Get your daily fix of the global markets here.
Stocks To Watch
- Muthoot Finance: Launches Gold Jewellery Insurance scheme in partnership with Bajaj Allianz General Insurance. This is designed to provide insurance coverage of gold jewellery articles for customers of the company at the time of closure of gold loan and release of gold ornaments.
- GHCL: Exchanges have given a no-objection letter to the scheme of demerger of the company’s textile business into GHCL Textiles.
- Ingersoll Rand India: Promoter Ingersoll Rand Inc. to sell up to 4.52% stake or 14.26 lakh shares through an Offer for Sale (OFS). The floor price of Rs 578.6 per share is a 12% discount to Monday's closing price. The OFS opens for non-retail investors today and for retail investors tomorrow. Promoter stake to come down to 75% post the stake sale, in-line with SEBI guidelines on minimum public shareholding pattern. The stake sale will fetch the promoters Rs 82.5 crore.
- Coal India: Board approved to enhance the non-coking coal price by Rs 10 per ton for regulated and non-regulated sectors across the company towards contribution to the corpus of Coal Mines Provident Fund Scheme from December 1. Aside of this, Four trade unions have served a one-day strike notice to the company and its arms on November 26.
- GMR Infra: GMR Kamalanga Energy, a stepdown subsidiary of the company is required to pay claims of Rs 1,005 crore to SEPCO Electric Power Construction Corporation towards project payments, prolongation costs, as confirmed by the arbitration tribunal. There is an existing provision of Rs 1092 crore in GKEL books towards any such liability, which covers the entire amount of this award and such liability, if any, is non-recourse to GIL and will have no impact on GIL's profitability.
- Exide Industries: Increased stake in its arm Exide Leclanche Energy to 80.15% from 77.87% for Rs 33 crore.
- Jubilant Industries: To transfer its liquor license and will not manufacture India Made Foreign Liquor hereon.
- Trigyn Technologies: Extended its contract with the United Nations for the provision of I.T. staffing support service till December 2021.
Brokerage Radar
UBS On Apollo Tyres
- Buy rating maintained
- Price target raised to Rs 220 from Rs 145
- Raising price target on strong earnings recovery
- Sharp earnings upgrade on the back of faster-than-expected demand recovery, higher margins driven by lower raw material prices and cost cutting
- Expect sustainable margins to be higher driven by structural cost reductions, especially in the European Union
- While capex may remain higher in FY22, expect positive free cash flow at a consolidated level from FY21.
- Despite the run-up in share price, valuations are at a discount to peers
JPMorgan On Indian Two-Wheelers
- Channel checks suggest that pent-up demand, channel restocking and personal mobility boost for the industry are receding
- Demand fundamentals now appear vulnerable for two-wheelers and margin headwinds are emerging
- Do not see risk-return trade-off favourable for two-wheelers except for Bajaj Auto
- Downgrade Hero MotoCorp to Neutral as the stock is trading at near fair multiples
- Cut Hero MotoCorp's price target to Rs 3,440 from Rs 3,550
- Any meaningful re-rating for Hero will need conviction on premium bike scale-up or better industry outlook
- Downgrade Eicher to Underweight from neutral on higher valuations despite liking the brand, category growth potential and refreshed strategy
- Neutral on TVS Motor as will await a better entry point below Rs 425
- Rate Bajaj Auto as the only overweight in the two-wheelers space on attractive valuations and a better play on full reopening
- Price target for Bajaj Auto at Rs 3,500
Morgan Stanley On Tata Steel
- Overweight rating maintained
- Price target of Rs 690
- Europe is witnessing price hikes in carbon steel, leading to material improvement in spreads
- Sustaining of higher prices will lead to earnings upgrades
- See upside risks to our estimates for Europe operations for H2FY21
- Risks To Upside: Better Indian steel demand, completion of Netherlands asset sale
- Risks To Downside: Resurgence of Covid-19, correction in international prices
Pledge Share Details
- Wockhardt: Promoter Themisto Trustee released pledge of 14 lakh shares on November 20
(As reported on November 23)
Bulk Deals
- Matrimony.com: CMDB sold 9 lakh shares (3.95%) at Rs 644 per share and SBI Mutual Fund acquired 7.44 lakh shares (3.27%) at Rs 643.9 per share.
- PVR: Gemasia acquired 4.25 lakh shares (0.77%) at Rs 1,265.67 per share.
- Reliance Infra: Axis Trustee Services sold 28.63 lakh shares (1.1%) at Rs 20.59 per share.
- Aavas Financiers: AU Small Finance Bank sold 35 lakh shares (4.47%) at Rs 1,515.16 per share, Nomura Fund acquired 9 lakh shares (1.15%) at Rs 1,515 per share and SBI Life Insurance acquired 6.6 lakh shares (0.84%) at Rs 1,515 per share.
Trading Tweaks
- Ex-Date For Share Buy Back: Mayur Uniquoters.
- Ex-Date For Rights Issue: Pricol (Rights at 2:7, at premium of Rs 29 per share)
- Price Band Revised From 20% To 10%: Anant Raj, Graphite India, Jammu & Kashmir Bank, Wockhardt.
- Price Band Revised From 10% To 5%: Jain Irrigation, Trigyn Technologies.
- Move Into ASM Framework: V2 Retail.
- Move Into Short Term ASM Framework: DHFL, Wockhardt, Kanoria Chemicals & Industries, Axiscades Engineering Technologies.
- Move Out Of Short Term ASM Framework: POCL Enterprises.
Insider Trades
- HFCL: Promoter MN Ventures acquired 5 lakh shares on November 23.
- Sequent Scientific: Promoter Chayadeep Ventures sold 5 lakh shares on November 19.
- Godrej Agrovet: Promoter Godrej Industries acquired 66,500 shares between November 17-18.
(As reported on November 23)
Money Market Update
- The rupee ended little changed at 74.11 on Monday, as compared to Friday's close of 74.16 against the U.S. Dollar.
- The currency was the fourth best performer in Asia on Monday.
F&O Cues
- Nifty November futures closed at 12,941; premium of 14 points from discount of 5 points
- Nifty November futures shed 6.8% and 7.5 lakh shares in Open Interest
- Nifty Bank November futures closed at 29,015; discount of 9 points from 81 points
- Nifty Bank November futures shed 9.5% and 1.4 lakh shares in Open Interest
- Nifty Put-Call Ratio at 1.31
- Enters F&O Ban: SAIL
- Out of F&O Ban: BHEL, Canara Bank, DLF, L&T Finance Holdings, Vodafone Idea
- Stocks In F&O Ban: Adani Enterprises, Bank of Baroda, Federal Bank, Indiabulls Housing Finance, Nalco, SAIL
Nifty Monthly Expiry: November 26
- Maximum Open Interest on Call side at 13,500 strike (41 lakh shares)
- Maximum Open Interest on Put side at 12,000 strike (41 lakh shares)
- Active Options: 12,900 Put (+10.5 lakh shares) and 13,500 Call (+8.4 lakh shares)
