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

Asian stocks were set to open mixed on the first day of the new year after posting the best annual gain since 2013.

DayBreak

Here are the cues that will influence equities on Monday

Global Cues

• The S&P 500 Index fell to finish the year higher by 19 percent. The bulk of Friday’s losses came in the final 15 minutes of trading.

Commodity Cues

• West Texas Intermediate crude advanced 0.6 percent to $60.42 a barrel, the highest in more than two years.
• Gold climbed 0.6 percent to $1,302.80 an ounce, hitting the highest in 11 weeks with its eighth consecutive advance.
• Copper dipped 0.8 percent to $3.28 a pound, the first retreat in more than three weeks.
• The Bloomberg Commodity Index gained 0.1 percent to 87.79, hitting the highest in more than seven weeks with its twelfth straight advance.

Indian ADRs

Stocks To Watch

• Golden Tobacco: Promod Jain makes fresh offer to buy 25 percent stake
• Bharti Airtel is set to enter into a deal to distribute Amazon’s content through Airtel TV app (Economic Times).
• Cadila Health gets USFDA final nod for Herpes Drug Valacyclovir USP.
• Camlin Fine Sciences to allot warrants at Rs 92.69 apiece.
• Spice Mobility to invest Rs 12.5 crore in 0.1 percent CCPS of Luharia Technologies.
• Infosys to divest investment in ANSR Consulting for $1 million.
• Government to infuse Rs 1,375 crore in UCO Bank through preferential allotment.
• Axis Bank says report of bids for GMR Chhattisgarh are factually incorrect.
• Oil India makes 2 new hydrocarbon discoveries in Dumduma PL in the Upper Assam Basin.
• NTPC says unit 2 of Kudgi project to start operation from Dec. 31.
• IDBI Bank sells 2.6 crore shares or 4.89 equity in SIDBI.
• GAIL awards major contracts for Pradhan Mantri Urja Ganga
• Control Print qualified institutional placement (QIP) opens; floor price set at Rs 475.09 per share.
• Brigade Enterprises acquires 12.95-acre property in Bangalore for Rs 218 crore.
• Canara Bank decides not to sell its stake in Canara Robeco AMC.
• Patel Integrated Logistics to acquire 3 acres of land in Chennai for the construction of warehouse and transhipment facility.
• SAIL plans to bid for stressed assets of Essar, Bhushan Steel (PTI)

Trading Tweaks

• Castex Technologies, Fineotex Chemical circuit filter revised to 10 percent.
• Gallant Metal and Gallant Ispat move out of GSM framework.

Bulk Deals

• BSE: SmallCap World Fund sold 8.30 lakh shares at Rs 932.78 each.
• PG Electroplast: Promoter Neelu Gupta sold 1 lakh shares at Rs 420 each
• IRB Invit: IA Diversified Fund bought 50.65 lakh shares at Rs 92.98 each
• Lincoln Pharma: Janus Consolidated Finance bought 2.02 lakh shares at Rs 235 each
• Monnet Ispat: Oswal Greentech sold 13.09 lakh shares at Rs 35.52 each

Insider Trades

(As reported on Dec 29)

• Sharda Motor promoters sold 42,000 shares on Dec. 27.
• ADF Foods promoters sold 8 lakh shares on Dec. 27.

Rupee

Rupee closed at 63.87/$ versus 64.08/$ on Thursday.

Top Nifty Outperformers And Underperformers

Index Trends

F&O Cues

• Nifty Jan Futures trading at 10,556.9, premium of 27 points versus 30 points.
• Jan Series- Nifty open interest up 5 percent and Bank Nifty open interest down 1 percent.
• India VIX ended at 12.6, up 3 percent.
• Max open interest for Jan series at 11,000 Call, open interest at 37 lakh, open interest up 10 percent.
• Max open interest for Jan series at 10,300 Put, open interest at 45.8 lakh, open interest up 37 percent.

F&O Ban

In Ban: HDIL, Jaiprakash Associates

New In Ban: HDIL, Jaiprakash Associates

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 1.61
• Nifty Bank PCR at 0.95 versus 0.94

Stocks Seeing High Open Interest Change

Fund Flows

Brokerage Radar

Motilal Oswal on Auto Sales

• Higher discounts and incentives offered in commercial vehicle segment
• See 40 percent growth in Bajaj Auto export sales
• Expect 45-50 percent growth in TVS Motors bike, three-wheeler sales
• Robust demand for Maruti's Baleno, Brezza, New Dzire and S-cross
• Top picks in autos are Maruti, Bajaj Auto, Tata Motors

Nomura on Auto Sales

• Expect PV industry to grow around 6 percent (YoY)
• MHCV industry to deliver strong growth of 33 percent (YoY)
• Royal Enfield’s capacity ramp-up to drive 25 percent (YoY) growth
• Expect an impact of around 25,000-30,000-unit due to maintenance shutdown for Maruti
• UV volumes to remain weak but tractor demand remains strong for M&M

HSBC on Mphasis

• Maintains Hold; raised target price to Rs 680 from Rs 555
• Expect above-average revenue/earnings growth
• HP/DXC and direct core business revenues to lead growth
• Strong deal wins ramp-up to support multi-year growth trajectory
• Expect revenue/earning to grow at a CAGR of 9 percent/11 percent over FY18-20
• Demand outlook remains robust but valuation full

BofAML on Bharti Infratel

• Maintains Buy; cut target price to Rs 460 from Rs 463
• Expect volatility in stock due to tenancy impact
• Impact on tenancies due to cancellations from Tata, Aircel and Idea-Vodafone
• Expect Q3 numbers to show impact of rapid consolidation
• Worst-case impact could be 3 percent of tenancies on consolidated basis
• As telcos sell their stake expect multiple re-rating

IDFC Securities on Pricol management meet

• Company hopes to enter new product segments and turn around its key foreign subsidiary
• Management has set high targets and expects to take strategic steps to achieve them
• Company targeting revenue/EBITDA/EBITDA margin of Rs 3,000 crore/Rs 450 crore/15 percent
• Company trading at discount to peers on historical trailing 12-month valuations

CLSA on HDFC Standard Life

• Initiates Buy with target price of Rs 455
• Set to benefit from domestic expansion and market-share gains
• Expect new premium/embedded value to grow at a CAGR of 24 percent/18 percent over FY17-20
• Expect it to maintain an operating RoEV of about 20 percent over FY17-20
• Most profitable franchise
• Leads peers in growth and profitability
• Stock deserves premium valuation to peers