All You Need To Know Going Into Trade On November 26
Asian markets have reversed an initial decline and are currently trading mixed as the rally that propelled global equities to a record high showed signs of ebbing.
Benchmark indices in Japan have recovered from the day's low to trade with gains while those in South Korea are little changed. Australian equities trade with a negative bias.
U.S. markets will remain shut today on account of thanksgiving.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.4% to 12,967 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 40 points higher. The index fell 0.6% on Wednesday.
- U.S. Jobless claims rose for two successive weeks for the first time since July, trade deficit widended while orders for durable goods saw an uptick.
- As per the minutes of the latest FOMC meeting, The central bank discussed providing more guidance on their bond-buying strategy 'fairly soon,' though they didn’t see a need for immediate adjustments.
- “We are already seeing a strong rotation into cyclical and reopening trades with the vaccine news and we expect this trend to continue,” Xi Qiao of UBS Global Wealth Management told Bloomberg TV.
- Yield on the 10-year treasuries stood at 0.88%
- West Texas Intermediate crude gained 0.2% to $45.79 per barrel.
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Stocks To Watch
- Lakshmi Vilas Bank: Government approves merger with DBS Bank India. Moratorium imposed on the bank will be lifted on November 27. Trading in the bank's shares will be suspended from November 26 and shares will be delisted on November 27. All branches will now operate as branches of DBS Bank India.
- Laurus Labs: To acquire 72.55% stake in a biotech company called Richcore Lifesciences for Rs 246.67 crore. The acquisition will mark the company's foray into the broader biologics and biotechnology segments, providing access to its high growth areas in India and globally. The acquisition will be funded through internal accruals.
- Fine Organic Industries: New facility in Patalganga, Maharashtra has started its operations from November 25.
- Future Consumer: Rajnikant Sabnavis has resigned as the CEO of the company.
- Vakrangee: Board has withdrawn the scheme of amalgamating its wholly-owned arms Vakrangee Logistics and Vakrangee Finserve with the company, due to substantial changes in business environment in last few months. Scheme is presently pending with NCLT.
- Astral Poly Technik: Board approves entry into the business of manufacturing and trading of plastic water storage tanks and add new capacity with a total investment not exceeding Rs 75 crore. The company will also acquire assets from Shree Prabhu Petrochemicals for up to Rs 51 crore.
- Kesoram Industries: Consortium of lenders have given their in-principle approval to the resolution plan of the company formulated under the Reserve Bank of India’s guidelines.
- Siemens Q4 Year-End September: Revenue down 8.9% to Rs 3,546.8 crore while net profit is largely flat, down 1.1% to Rs 330.2 crore. Ebitda up 5.5% while margins expand 180 basis points year-on-year to 12.9% from 11.1%. Lower cost of material and lower other expenses aid margin performance. The company has also declared a dividend of Rs 7 per share.
Jefferies On IndusInd Bank
- Buy rating maintained
- Price target raised to Rs 1,030 from Rs 800
- Provisioning may be elevated in H2FY21 as the bank covers for downgrades and some buffer-provisions
- Lower concentration on assets & liabilities are key medium-term targets
- Collections holding-up but provisioning will normalise after H2FY21
- Raise earnings forecasts for FY22-23 by 3-5% factoring in lower credit costs and better topline
- Valuations are still at a discount to past average and hence improvement in growth / quality outlook can drive rerating
Jefferies On ICICI Lombard
- Buy rating maintained
- Price target raised to Rs 1,630 from Rs 1,570
- Growth momentum improving with economic recovery and share gains
- Motor OD/health claims rising but reserving buffers adequate
- Expects to achieve combined ratio of 100% and RoE of 20%
- Retail health insurance a key area of investment but needs to be managed tightly
Emkay On Titan
- Buy rating maintained
- Price target raised to Rs 1,450 from Rs 1,300
- Jewellery segment offers large revenue opportunity
- Comparison with auto names indicates huge headroom for penetration gains
- Wedding segment to accelerate market share gains
- Eyewear turnaround and cost savings can drive margin expansion
- Strong wedding season, stable gold prices and pent-up demand can drive upsides to jewellery forecasts
Motilal Oswal On Kotak Mahindra Bank
- Downgrade to neutral from buy
- Price target raised to Rs 1,800 from Rs 1,600
- Valuations at 17% premium to five-year average
- Risk-reward unfavourable after sharp outperformance
- Estimate 12% loan book growth CAGR over FY21-23
- Robust liability franchise and has significantly lowered cost of funds
- Best in-class funding costs to enable growth opportunities
Pledge Share Details
- Max Financial Services: Promoter Max Ventures Investment Holdings created a pledge of 14 lakh shares between November 20-24.
(As reported on November 25)
- Tanla Platforms: Vantage Equity Fund acquired 6.85 lakh shares (0.50%) at Rs 524.3 per share, Massachusetts Institute Of Technology acquired 9.85 lakh shares (0.72%) at Rs 524.3 per share and Banyan Investments sold 16.7 lakh shares (1.23%) at Rs 524.3 per share.
- PVR: Gem Equity acquired 3.5 lakh shares (0.63%) at Rs 1,315.11 per share.
- Reliance Infra: Axis Trustee Services sold 45.48 lakh shares (1.74%) at Rs 22.5 per share.
Who’s Meeting Whom
- Meghmani Organics: To meet Abakkus Asset Managers on November 26.
- GATI: To meet Axis Capital, Equirus Securities and other investors on November 26.
- Indraprastha Gas: To meet Sundaram Mutual Fund on November 27.
- Bajaj Auto: To meet Edelweiss and Nomura between November 26-30.
- Tata Consumer Products: To meet Invesco, Carnegie Fonder and other investors between November 26-27.
- Bajaj Finance: To meet UDIA, UBS and other investors between November 26-30.
- Can Fin Homes: To meet Sundaram Mutual Fund, Seven Canyons Advisors and other investors between November 27 - December 16.
- Ex-Date For Buyback: TCS
- AGM: ITI.
- Price Band Revised From 20% To 10%: Alphageo, Equitas Holdings, Puravankara.
- Price Band Revised From 10% To 5%: ARSS Infrastructure Projects, Reliance Capital, SKIL Infrastructure.
- Move Into ASM Framework: Firstsource Solutions, DB Realty, Palred Technologies, Flexituff Ventures, Sundaram Brake Linings.
- Move Into Short Term ASM Framework: Equitas Holdings, Signet Industries, Future Lifestyle Fashions, Alphageo, Future Retail.
- Move Out Of Short Term ASM Framework: Somany Home Innovation, Investment Trust Of India, GP Petroleums, Indiabulls Real Estate.
- HFCL: Promoter MN Ventures acquired 5 lakh shares on November 25.
- Confidence Petroleum: Promoter Essenn LPG Bottling acquired 71,000 shares on November 19.
- Greaves Cotton: Promoter DBH International acquired 11.54 lakh shares between November 19-24.
(As reported on November 25)
Money Market Update
- The rupee gained for the third straight day to end at 73.91 against the U.S. Dollar as compared to Tuesday's close of 74.01.
- The currency ended at the highest level in a month.
- The rupee was the fifth best performing currency in Asia on Wednesday.
- Nifty November futures closed at 12,857; discount of 1 point from premium of 23 points
- Nifty November futures shed 42% and 36.1 lakh shares in Open Interest
- Nifty Bank November futures closed at 29,185; discount of 11 points from premium of 46 points
- Nifty Bank November futures shed 41% and 5 lakh shares in Open Interest
- Nifty Put-Call Ratio at 1.02
- Enters F&O Ban: Indiabulls Housing Finance, Canara Bank
- Out Of F&O Ban: Adani Enterprises, Federal Bank
- Stocks In F&O Ban: Canara Bank, Indiabulls Housing Finance, NALCO, SAIL, Tata Motors
Nifty Monthly Expiry: Nov 26
- Maximum Open Interest on Call side at 13,500 strike (49 lakh shares)
- Maximum Open Interest on Put side at 12,800 strike (39.4 lakh shares)
- Active Options: 12,900 Put (-12.5 lakh shares) and 13,100 Call (+18 lakh shares)