ADVERTISEMENT
All You Need To Know Going Into Trade On September 21
Stocks in the news, big brokerage calls of the day, complete trade setup and much more!
21 Sep 2020, 08:54 AM IST 
The University of Melbourne campus is deserted in Melbourne, Australia. (Photographer: Carla Gottgens/Bloomberg)
Asian markets are drifting at the start of a new trading week after a weak session on Wall Street on Friday. Markets in Japan are shut on account of a holiday.
Currencies too are witnessing small moves with the Offshore Yuan edging higher. The U.S. Dollar is steady against its main peers.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 0.4% to 11,477 as of 6:45 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:
- Benchmark indices in South Korea and Australia are drifting lower at the start of trade.
- Futures on the Dow Jones are fluctuating, currently little changed. The index ended nearly 1% lower on Friday.
- President Donald Trump said he approved Oracle's bid for the U.S. operations of TikTok 'in concept.' On the other hand, the curbs put on WeChat by the Trump administration were put on hold by a judge.
- Federal Reserve Chair Jerome Powell will testify before Congress between Tuesday to Thursday to discuss pandemic relief efforts.
- The European Central Bank has launched a review of its pandemic bond-buying program to consider how long should it continue.
- Yield on the 10-year treasuries ended at 0.69% on Friday.
- West Texas Intermediate crude fell 0.8% to $40.78 per barrel while Gold traded at $1,950/Oz.
Get your daily fix of the global markets here.
Stocks To Watch
- HCL Technologies: Announces intent to acquire leading Australian I.T. solutions company DWS Ltd. This will strengthen the company's leadership position as a strategic innovation partner of choice in the markets of Australia & New Zealand. The DWS group had FY20 revenue at 167.9 million Australian Dollars. The transaction is expected to close in December 2020, subject to closing conditions including regulatory approvals.
- RITES: Board approves share buyback of up to 96.98 lakh shares or 3.88% of the total equity at Rs 265 per share. The buyback price is a 3.8% premium to Friday's closing price. Record date for the Rs 257 crore buyback is set as September 30.
- Punjab National Bank: Financial regulator of Kazakhstan has revoked the license of JSC Tengri Bank, where PNB has a 41.64% stake. The license was revoked on account of failure to observe prudential standards and other mandatory norms and limits.
- Godrej Properties: NCLT allows the petition of amalgamation of Wonder Space Properties with the company.
- South Indian Bank: Reduces base rate by 10 basis points to 9.75%. MCLR across various tenors too has been cut from September 20. One-Month MCLR now at 7.85% while one-year MCLR at 8.2%.
- BSE: Arbitration Tribunal declares the termiation of the agreements entered into with Dow Jones as invalid and has ordered that it shall continue to remain in force and effect. The award is being reviewed and shall be dealt with suitably as per advice of the legal counsel.
- Allcargo Logistics: Sheetal Gulati resigns as CFO from September 18.
- IGSEC Heavy Engineering: Aditya Puri re-appointed as Managing Director till April 2026.
- Future Enterprises: Defaulted in payment of commercial papers worth Rs 90 crore, due on September 14.
- MRPL: Shareholders give nod to raise Rs 5,000 crore through NCDs.
- Tata Metaliks: One of the blast furnaces and associated facilities in the company's Kharagpur plant is undergoing a planned shutdown for repair and maintenance, including hearth profiling from September 19. The operations are likely to be back on stream in the second half of October.
- Amber Enterprises: Acquired 20% stake in Sidwal Refrigerations Industries, which has now become a wholly-owned subsidiary of the company.
- Zydus Wellness: Passes special resolution for approval of issue and allotment of 21.22 lakh equity shares worth Rs 349.9 crore to Zydus Family Trust on a preferential basis. The shares will be alloted at a price of Rs 1,649 per share, a 13.3% discount to Friday's closing price. The company has also passed a special resolution to approve fund raising activities and issuance of securities worth Rs 750 crore through public or private offerings.
- IRCTC: To start 20 pairs of clone special trains from September 21 on specific routes.
- Reliance Home Finance: National Housing Bank imposes a penalty of Rs 20,000 for contravention of certain provisions of Housing Finance companies.
- Route Mobile: To list on the bourses today.
- CAMS: IPO opens for subscription today. The company has raised Rs 666 crore from anchor investors ahead of the IPO.
- Chemcon Speciality Chemicals: Anchor allotment of 28.06 lakh shares at Rs 340 per share worth Rs 95.4 crore. The IPO opens for subscription today.
- Dish TV: Promoter World Crest Advisors invoked pledge on 98.13 lakh shares between September 14-15.
Brokerage Radar
CLSA On Indian Media
- Ad revenues at 80% pre-Covid level; likely to grow in H2FY21
- Subscription revenue saw growth for top broadcasters
- Hit from uncertainty over NTO 2 implementation will be short-lived for top broadcasters
- Media businesses are resilient and have net cash balance sheets
- Governance for Zee Entertainment is improvement and valuations are compelling; remains top pick
- Maintain buy rating on Zee Entertainment; price target raised to Rs 280 from Rs 255
Other Stock Recommendations
- Sun TV: Buy rating maintained; price target raised to Rs 590 from Rs 490
- Dish TV: Buy rating maintained; price target raised to Rs 18 from Rs 10
- Jagran Prakashan: Buy rating maintained; price target raised to Rs 59 from Rs 50
- DB Corp: Buy rating maintained; price target raised to Rs 124 from Rs 120
Jefferies On Indian I.T.
- Conversations with investors after assuming coverage of the sector revealed considerable interest
- Infosys is the top pick among investors
- Saw some pushback for TCS on valuations
- Tech Mahindra's valuation comfort piqued a lot of interest, despite divided opinions on its execution
- HCL Tech was one stock which polarised investors and was debated the most
- Wipro needs to step-up growth for a sustained re-rating; a strong buyback and turnaround play
Jefferies On Supreme Industries
- Buy rating maintained
- Price target of Rs 1,480
- Expect pipes to see 13% sales CAGR over FY20-23E, driven by robust industry prospects, new launches and value-added mix
- Expect packaging business to see 3% sales CAGR over FY20-23E, driven by steady demand in performance films and new launches in protective
- Expect 7% sales CAGR for consumer furniture and industrial business
- Capex plans on track
- Key Risks: Raw Material volatility, demand slowdown, pricing pressures
Who’s Meeting Whom
- Tata Power: To meet HSBC AMC on September 21.
- Tata Motors: To meet UTI Mutual Fund, UBS AMC and other investors between September 21-24.
- Shriram City Union Finance: To meet Fidelity International and RC Goldfarb on September 21.
- Dixon Tech: To meet JP Morgan, Copper Rock Capital and USS between September 21-22.
- IIFL Finance: To meet Habrok Capital on September 22.
- Eicher Motors: To meet DSP Investment Managers on September 21.
- JSW Steel: To meet JP Morgan on September 22 and 23.
- Info Edge: To meet JP Morgan on September 21 and Morgan Stanley on September 24.
- AstraZeneca Pharma: To meet Arisaig Partners on September 21.
- ITC: To attend JP Morgan India Investor Summit on September 21
Bulk Deals
- Essel Propack: Promoter Epsilon Bidco sold 7.26 crore shares (23%) at Rs 256.49 per share. Axis Mutual Fund acquired 1 crore shares (3.17%) at Rs 256.3 per share, Aditya Birla Sun Life MF acquired 58.52 lakh shares (1.86%) at Rs 256.3 per share. Other buyers included IDFC Mutual Fund, Nomura, Franklin Templeton, Norges Bank, DSP Mutual Fund and Neuberger Berman Funds.
- GATI: EQ India Fund acquired 8.89 lakh shares (0.73%) at Rs 49.45 per share.
- KPIT Tech: Promoter Anupama Kishor Patil acquired 14 lakh shares (0.51%) at Rs 100.01 per share.
- Valiant Organics: Promoter Dilesh Roadlines sold 4 lakh shares (3.29%) at Rs 2,749.1 per share. Nippon India Mutual Fund acquired 2.9 lakh shares (2.39%) at Rs 2,749.02 per share and Goldman Sachs acquired 1.07 lakh shares (0.88%) at Rs 2,749 per share.
Vanguard Group Deals
- Granules India: Acquired 26.1 lakh shares (1.06%) at Rs 370.42 per share.
- Atul: Acquired 2.87 lakh shares (0.97%) at Rs 6,664.02 per share.
- JB Chemicals & Pharma: Acquired 7.07 lakh shares (0.91%) at Rs 1,121.89 per share.
- Adani Green Energy: Acquired 1.31 crore shares (0.84%) at Rs 666.96 per share.
- Amber Enterprises: Acquired 2.47 lakh shares (0.79%) at Rs 2,042.81 per share.
- Deepak Nitrite: Acquired 10.82 lakh shares (0.79%) at Rs 861.54 per share.
- Dixon Tech: Acquired 90,797 shares (0.78%) at Rs 9,421.52 per share.
- Indraprastha Gas: Acquired 50.48 lakh shares (0.72%) at Rs 420.03 per share
- Navin Fluorine: Acquired 3.43 lakh shares (0.69%) at Rs 2,048.79 per share.
- Tata Elxsi: Acquired 3.46 lakh shares (0.69%) at Rs 1,277.32 per share.
- Mannapuram Finance: Acquired 57.36 lakh shares (0.68%) at Rs 161.52 per share.
- Trent: Acquired 24.14 lakh shares (0.68%) at Rs 683.04 per share.
- Infibeam Avenues: Acquired 37.16 lakh shares (0.56%) at Rs 77.09 per share.
- Dish TV: Sold 1.17 crore shares (0.68%) at Rs 14.68 per share.
- VA Tech Wabag: Sold 3.57 lakh shares (0.65%) at Rs 212.39 per share.
Integrated Core Strategies Asia Deals
- Essel Propack: Acquired 20.39 lakh shares (0.65%) at Rs 256.3 per share
- Navin Fluorine: Sold 3.83 lakh shares (0.77%) at Rs 2,047.75 per share
- Dixon Tech: Sold 77,005 shares (0.67%) at Rs 9,408.56 per share
- Trent: Sold 23.29 lakh shares (0.66%) at Rs 682.76 per share
- APL Apollo Tubes: Sold 1.60 lakh shares (0.64%) at Rs 2,704.67 per share
- Granules India: Sold 15.07 lakh shares (0.61%) at Rs 365.06 per share
- Atul: Sold 1.81 lakh shares (0.61%) at Rs 6,601.04 per share
- Deepak Nitrite: Sold 8.24 lakh shares (0.60%) at Rs 853.75 per share
- Amber Enterprises: Sold 1.83 lakh shares (0.58%) at Rs 2,034.02 per share
- Tata Elxsi: Sold 3.57 lakh shares (0.57%) at Rs 1,273.07 per share
- Infibeam Avenues: Sold 36.52 lakh shares (0.55%) at Rs 77.06 per share
- Blue Star: Sold 5.18 lakh shares (0.54%) at Rs 632.77 per share
Trading Tweaks
- AGM Date: Aarti Industries, Bajaj Consumer Care, Deepak Fertilisers and Chemicals, DFM Foods, GMR Infra, Oil India, Cochin Shipyard, Dixon Tech, Midhani, Ircon, Eveready, APL Apollo Tubes, Apollo Pipes, Vodafone Idea, Parag Milk Foods, DHFL.
- Fund Raising: Mold-Tek Packaging.
- Ex-Date Of Demerger: Panacea Biotech.
- Price Band Revision From 10% To 5%: Manaksia Steels, Trejhara Solutions.
- Price Band Revision From 20% To 10%: JB Chemicals & Pharmaceuticals.
- Price Band Revision From 20% To 5%: Panacea Biotec.
- Move Into ASM Framework: Pricol, JB Chemicals & Pharmaceuticals, Gyscoal Alloys, NGL Fine Chem.
- Move Out Of ASM Framework: Indo Rama Synthetics, Alkyl Amines Chemicals, Borosil Renewables, Sanco Industries.
- Move Into Short Term ASM Framework: Skipper, Vinati Organics, Oswal Chemicals & Fertilizers, McDowell Holdings, GTL.
- Move Out Of Short Term ASM Framework: Gujarat Lease Financing, Allsec Technologies.
Insider Trades
- Sequent Scientific: Promoter Chayadeep Ventures sold 2.73 lakh shares on September 15.
- Trident: Promoter Trident Capital acquired 11 lakh shares on September 17.
- Waterbase: Promoter KCT Management Services acquired 3.25 lakh shares on September 15.
- Man Infra: Promoter Parag Shah acquired 2 lakh shares on September 17.
As reported On September 18.
Money Market Update
- The rupee ended with gains on Friday, ending at 73.45 against the U.S. Dollar as compared to Thursday's close of 73.66.
- The currency posted gains for the week but ended as the second worst performing currency in Asia.
F&O Cues
- Nifty September futures end at 11,519; premium of 15 points from 11 points
- Nifty September futures shed 15% and 17.44 lakh shares in Open Interest
- Nifty Bank September futures end at 22,124; premium of 93 points from 71 points
- Nifty Bank September futures shed 9.7% and 1.65 lakh shares in Open Interest
- Nifty Put-Call Ratio at 1.02
- Enters F&O Ban: Glenmark
- Out of F&O Ban: Aurobindo Pharma, Bank of Baroda, Escorts, Indiabulls Housing Finance
- Stocks In F&O Ban: Adani Enterprises, BHEL, Canara Bank, Glenmark, L&T Finance, JSPL, SAIL, Tata Chemicals, Vedanta, Vodafone Idea
Nifty: September 24 Expiry
- Maximum Open Interest on Call side at 12,000 strike (43.9 lakh shares)
- Maximum Open Interest on Put side at 11,500 strike (33.8 lakh shares)
- Active Options: 11,800 Call (+8.2 lakh shares) and 11,250 Put (+4.3 lakh shares)