All You Need To Know Going Into Trade On November 16

The retreat in Asian stocks from historic highs triggered by concerns about outsized gains took a pause on Thursday.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, was little changed at 10,147 as of 7:00 a.m.

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DayBreak

Here’s a quick look at all that could influence equities on Thursday.

Global Cues

• The S&P 500 notched its fourth drop in five days, retreating from near session highs in the final half hour of trading on a report that a key Republican opposes the Senate’s latest tax bill.
• Energy shares led declines as crude continued its slide toward $55 a barrel.
• A renewed commodities slump overshadowed data showing the U.S. consumer remains robust, while inflation data helped boost bank shares.

• The Bloomberg Dollar Spot Index fell 0.1 percent, after touching the lowest in almost four weeks.
• The Stoxx Europe 600 Index sank 0.6 percent, after hitting the lowest in seven weeks with its sixth consecutive decline.

Asian Cues

• The Topix index swung between gains and losses. The Nikkei 225 Stock Average added 0.4 percent.
• Australia’s S&P/ASX 200 Index was flat.
• South Korea’s markets will open an hour later because of national exam day.
• Hong Kong’s Hang Seng Index futures climbed 0.4 percent.
• Futures on the S&P 500 Index were little changed. The underlying gauge fell 0.6 percent Wednesday.

Here are some key events investors are watching this week:

• Bank of England officials address the bank’s future on Thursday, while European Central Bank chief Mario Draghi speaks Friday.
• A string of Fed appearances may further illuminate the FOMC’s commitment to a December hike.

Commodity Cues

• West Texas Intermediate crude was steady at $55.30 a barrel after dropping 0.7 percent.
• Gold was little changed at $1,278.74 an ounce.
• Sugar ended lower for second day at 15.09 cents a pound; down 0.07 percent

Shanghai Exchange

• Steel trades lower for second day; down 1.23 percent.
• Aluminium snaps two-day losing streak; up 0.36 percent.
• Zinc trades lower for second day; down 0.54 percent .
• Copper trades lower for second day; down 0.45 percent.
• Rubber trades lower for second day; down 1.55 percent .

Indian ADRs

Earnings To Watch

• Ahluwalia Contracts
• Gati
• Honda Siel
• Bharat Matrimony

Results Announced

Wonder La (Q2, YoY)

• Revenue up 1.2 percent at Rs 49.4 crore.
• Net profit down 37.8 percent at Rs 2.3 crore.
• EBITDA up 20.65 percent at Rs 11.1 crore.
• Margin at 22.5 percent versus 18.9 percent.

CARE Ratings (Q2, YoY)

• Revenue up 12.3 percent at Rs 91 crore.
• Net profit up 2 percent at Rs 48.3 crore.
• EBITDA up 11 percent at Rs 66.5 crore.
• Margin at 73.1 percent versus 74.1 percent.

New India Assurance (Q2, YoY)

• Gross written premium up 12.2 percent at Rs 6,489.2 crore.
• Profit up 187.5 percent at Rs 748.3 crore.
• Combined ratio improved to 112.5 percent.
• Solvency ratio stood at 2.24 from 2.04.

TD Power Systems (Q2, YoY)

• Revenue up 19.4 percent at Rs 126 crore.
• Net profit at Rs 5 crore.
• EBITDA at Rs 9 crore.
• Margin at 7.1 percent versus 1.4 percent.

Stocks To Watch

• Reliance Communication said it is not making any payment to lenders for time being.
• CRISIL to buy entire stake in Pragmatix Services for Rs 56 crore.
• NHAI terminates agreement with Atlanta for Gujarat project.
• RBL Bank acquired additional 2.08 percent stake in Swadhaar Finserve, increasing its holding to 60.48 percent.
• Manaksia Industries to set up wholly-owned subsidiary in India and Tanzania for its agro-commodities business.
• ONGC said that Venezuela’s state-run PDVSA is committed to the arrangement with ONGC Videsh.
• Seamec approved scheme of demerger of EPC and Vessel division of HAL offshore into itself.
• Suzlon eyeing $250 million from stake sale in unit (Mint)
• Federal Bank in the process of divesting 26 percent stake in its fully-owned NBFC arm Fedfina (Financial Express)

IPO

• 5Paisa Capital list on exchanges. IIFL demerged ‘5Paisa Digital Undertaking’ into its fully-owned subsidiary 5Paisa Capital in 2016.

Bulk Deals

Vadilal Industries

• Radhika Sharma bought 40,000 shares (0.6 percent) at Rs 1040.2 each
• Avvanti advisors sold 36,611 shares (0.5 percent) at Rs 1040 each

Indo Count Industries: Param Value Investments bought 10 lakh shares (0.5 percent) at Rs 116.9 each

Control Print: India Opportunities Growth Fund sold 84,000 shares (0.5 percent) at Rs 439.32 each

CMM Infra Projects: Systematix Shares & stocks sold 1.14 lakh shares (net) at Rs 61.28 each

Trading Tweaks

• Tube Investments shifted to B group. Circuit filter revised to 20 percent.
• Kinetic Engineering circuit filter revised to 10 percent
• Khadim India added to S&P BSE IPO Index.

Who’s Meeting Whom?

• Indian Hotels to meet T Rowe, Wellington and other investors on Nov.16.
• GE Shipping to meet Serica Advisors on Nov. 16.
• Crompton Greaves to meet New Silk Road investment on Nov. 16.
• Suzlon to meet IDFC Securities on Nov. 17.
• Mahanagar Gas to meet DNCA Investments on Nov. 21 and Nothcape Capital on Nov. 27.

Rupee

• Rupee closed at 65.21/$ on Wednesday from 65.42/$ on Tuesday

Top Gainers And Losers

Index Trends

F&O Cues

• Nifty November futures closed at 10,154, premium of 36 points versus 47.6points.
• November contracts: Nifty open interest down 2 percent; Bank Nifty open interest down 1 percent.
• India VIX closed 0.7 percent higher at 14.2.
• Max open interest for November series at 10,500 Call (open interest at 58.2lakh, up 3 percent).
• Max open interest for November series at 10,200 Put (open interest at 45.4 lakh, down 1 percent).

F&O Ban

• In ban: DHFL, Indiabulls Real estate, India Cement, Infibeam, Jet Airways, JP Associates, JSW Energy, Just Dial. Kaveri Seed, Reliance Communications, Reliance Capital.
• New in ban: Jet Airways, Reliance Communications, Reliance Capital.
• Out of ban: HDIL, Jain Irrigation.

Only intraday positions can be taken in stocks which are in F&O ban. In case of a rollover of these intraday positions, there is a penalty.

Put-Call Ratio

• Nifty PCR at 1.13 from 1.18
• Nifty Bank PCR at 0.94 from 0.99

Stocks Seeing High Open Interest Change

Fund Flows

Brokerage Radar

CLSA on Jubilant Foodworks

• Maintained ‘Buy’ with price target of Rs 2,200.
• Menu price hike of around 6 percent effected.
• Need to watch out for customer reactions to the menu price change.
• Price change varies across portfolio with prices of entry-level seeing almost no change.
• With lower GST rate on output end-prices dropped 11 percent, which should help volumes.

Macquarie on Ceat

• Maintained ‘Outperform’ with price target of Rs 2,200.
• Margins improved in the previous quarter on the back of volume growth, lower rubber prices and cost-control.
• Expect volume growth to improve further in the second half, led by restocking by the trade channel.
• Expect margins to improve on benign rubber prices, favourable mix and an increase in utilisation.
• Expect Earnings per share to grow at a compound annual growth rate of 15 percent over the financial years till March 2020.