All You Need To Know Going Into Trade On Jan. 1

Happy new year!

Most Asian markets are closed, with the U.S. stocks ending the worst year since the financial crisis with a narrow gain in thin pre-holiday trading.

Stocks around the world limped into the end of a dismal year that’s seen bear markets in equities from Japan to Germany. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded a little changed at 10,921 as of 6:50 a.m.

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

U.S. Market Check

• U.S. stocks ended the worst year since the financial crisis with a narrow gain in thin pre-holiday trading.
• The yield on 10-year Treasuries fell three basis points to 2.68 percent.

Commodity Cues

• The Bloomberg Commodity Index fell 1.1 percent.
• West Texas Intermediate crude rose 8 cents to $45.41 a barrel.
• U.S. natural gas futures slid 9.8 percent to $2.979.
• Gold futures rose 0.1 percent to $1,284.30 an ounce.

London Metal Exchange

• Aluminium halted a five-day decline, ends 0.05 percent higher.
• Copper halted a two-day rally, ends 0.53 percent lower.
• Nickel ended lower for the third day, down 0.37 percent.
• Zinc ended 1.11 percent higher.
• Lead halted a three-day rally, down 1.99 percent.
• Tin ended 0.05 percent lower.

Indian ADRs

Stocks To Watch

Bulk Deals

• Hindustan Construction Company: Promoter Arya Capital Management sold 1.45 crore shares or 1.44 percent equity at Rs 11.87 each.
• AVG Logistics: Sixth Sense India Opportunities acquired 51,600 shares at Rs 74.45 each (Alert: This Stock is listed on NSE Emerge)

Insider Trading

• Hindustan Construction Company promoters acquired 21.9 crore shares via rights issue on December 28. Their stake has increased from 27.8 percent to 33.12 percent.

Trading Tweaks

• Dhanuka Agritech ex-date for share buy-back.
• 5paisa Capital price band revised to 5 percent.

Money Market Update

• Rupee ended at 69.77/$ yesterday versus Friday’s 69.95/$.

F&O Cues

• Nifty January Futures closed trading at 10917, premium of 55 points.
• Max OI for January series at 11,200 Call, OI at 28.2 lakh shares.
• Max OI for January series at 10,500 Put, OI at 33.2 lakh shares.

Stocks In F&O Ban

• Adani Power

Put-Call Ratio

• Nifty PCR at 1.53 versus 1.54.
• Nifty Bank PCR at 1.03 versus 1.11.

Fund Flows

Brokerage Radar

HDFC Securities on Asset Management Companies

• Mutual fund industry is under-penetrated; Expect financialisation of savings to grow at 9.7 percent CAGR over FY18-30.
• Impact of changes in TER to become clear over 1-2 quarters; Expect 75-85 percent pass through.

HDFC Securities on HDFC AMC

• No Rating/Recommendation.
• Business does not need incremental capital; Expect RoICs to improve.
• Expect AUM, revenue and net profit to grow at a CAGR of 18.3 percent, 6.7 percent and 17.4 percent respectively over FY18-21
• See one-year forward fair value at Rs 1708 per share versus current market price of Rs 1,510.

HDFC Securities on Reliance Nippon

• Initiated ‘Buy’ with a price target of Rs 227, implying a potential upside of 43 percent from the last regular trade.
• Appreciate RNAM’s focus on building granular stickier retail assets.
• Profits hit in FY18 and Q2FY19; increase in profitability is key trigger for re-rating.
• Inter-corporate deposits remain a concern.
• Expect AUM, revenue and net profit to grow at a CAGR of 19 percent, 1.2 percent and 9.5 percent respectively over FY18-21.

Emkay on JK Cement

• Upgraded to ‘Buy’ from ‘Accumulate’; hiked price target to Rs 864 from Rs 846.
• Grey cement: capacity expansions to drive volume growth.
• White cement segment more sustainable than grey cement in terms of profitability.
• Prefer JK Cement due to its exposure to white cement.

Emkay on Britannia Industries

• Maintained ‘Hold’ with a price target of Rs 2,950.
• Stepping up its foods play; Aggressive new-launch pipeline ahead.
• Potential to scale up reach and drive growth through small packs.
• Believe that a lot is already baked in and there exist downside risks to margin.