Stocks To Watch: Cipla, Deepak Fertilisers, Lakshmi Vilas Bank, SRF, Rane Brake, Wipro

Asian markets have opened mixed this morning as investors assessed a potential setback towards a Covid-19 vaccine.

Markets in Japan were fluctuating, were flat in South Korea and China while they remained higher in Australia.

Futures on the Dow Jones are trading lower by 130 points. The index ended 0.9% higher on Monday. The SGX Nifty is trading 40 points lower this morning.

Stocks To Watch

• Cipla: Arm Avenue Therapeutics gets complete response letter from the U.S. FDA for IV Trambol. The letter states that the application cannot be accepted in its present form. The drug is intended to treat patients in acute pain who require an opioid and is not safe for the intended patient population, according to the letter. U.S. FDA requires an adequate terminal sterlisation validation prior to the NDA approval, which has been planned for later this quarter.
• SRF: Launches QIP issue on Monday. The floor price of Rs 4,168.7 per share is a 4.58% discount to Monday's closing price. As per SEBI regulations, the company may not offer a discount of more than 5% on the floor price.
• Infosys: Completed acquisition of product design and development firm, Kaleidoscope Innovation.
• Deepak Fertilizers: Stated that its rights issue has been oversubscribed.
• Vivimed Labs: Gets approval for two Ophthalmic products and two oral liquid suspension products. The company is expecting five more approvals in ophthalmic and oral solids during the December quarter.
• Shalby: Revenue down 8% year-on-year while net profit up 89.9% due to a tax reversal. Ebitda margin at 25.5% from 22.3% courtesy lower operating costs and higher bed occupancy from Covid-19 patients.
• Rane Brake Lining: To consider share buyback on October 15.
• Lakshmi Vilas Bank: Board to consider rights issue on October 15.
• JSW Steel: Approved issuance of dollar denominated notes worth $500 million.
• Somany Ceramics: ICRA downgraded commercial papers worth Rs 75 crore to ICRA A1 from ICRA A1+. The rating action factors in the ICRA's expectations of weak demand prospects for ceramic tile industry that would in turn result in relatively muted profitability for the company.
• Suzlon Energy: Has approved allotment of 7.86 crore equity shares on conversion of foreign convertible bonds at Rs 2.61 per share.
• Non-Nifty Earnings Today: California Software, Karnataka Bank, Tata Steel Long Products.

Earnings Expectations: Wipro Q2FY21

• Revenue seen 1.1% higher at Rs 15,084.7 crore
• U.S. Dollar revenue seen 2% higher at $1,960 million
• Ebit seen 4.1% higher at Rs 2,680.2 crore
• Ebit margin seen at 17.8% from 17.2%
• Net profit seen 3.6% higher at Rs 2,477 crore
• All estimates are compared on a quarter-on-quarter basis

Factors At Play For Wipro:

• Buyback worth Rs 7,000 crore - Rs 9,000 crore expected
• Cashflow hedge gain seen at Rs 135 crore
• Constant currency growth seen between 0.7-2% as per a BQ poll
• Revenue growth to be aided by integration of 4C and IVIA acquisitions
• Turnaround plans of the new MD & CEO to be in focus
• Guidance for Q3FY21 will be critical to watch.

Pledged Share Details

• Star Cement: Promoter Vinay and Co created pledge of 2 lakh shares on October 6.

(As Reported On October 12)

Who’s Meeting Whom

• Metropolis Healthcare: To meet ICICI Securities on October 14.

Trading Tweaks

• Price Band Revised From 20% To 10%: Dynacons Systems & Solutions, Thyrocare Technologies, GTPL Hathway.
• Buyback Announcement: Wipro.
• Move Into ASM Framework: Jindal Poly Films, Bal Pharma, Uttam Galva Steels, Videocon Industries.
• Move Into Short Term ASM Framework: Mohota Industries, Dynacons Systems & Solutions, Repco Home Finance, Sagardeep Alloys.

F&O Cues

• Nifty October futures end at 11,937; premium of 6 points from 34 points
• Nifty October futures shed 1% and 93,000 shares in Open Interest
• Nifty Bank October futures end at 23,769; premium of 56 points from 105 points
• Nifty Bank October futures add 1% and 19,000 shares in Open Interest
• Nifty Put-Call Ratio at 1.47
• Enter F&O Ban: Canara Bank, SAIL
• Exit F&O Ban: Vedanta
• Stocks In F&O Ban: Adani Enterprises, BHEL, Canara Bank, JSPL, SAIL, Vodafone Idea

Nifty: October 15 Expiry

• Maximum Open Interest on Call side at 12,500 strike (36.2 lakh shares)
• Maximum Open Interest on Put side at 11,500 strike (23.6 lakh shares)
• Active Options: 11,000 Put (-5.4 lakh shares) and 12,000 Call (12 lakh shares)

Nifty: October 29 Expiry

• Maximum Open Interest on Call side at 12,500 strike (23 lakh shares)
• Maximum Open Interest on Put side at 10,500 strike (35 lakh shares)