All You Need To Know Going Into Trade On June 14

Stocks in Asia were mixed Friday and a global bond rally extended amid ongoing concern that trade frictions may jeopardise global economic growth.

Japan's Topix index slipped along with Korean shares and S&P 500 futures, though Australian equities eked out gains. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, fell 0.2 percent to 11,898 as of 7 a.m.

Short on time? Well, then listen to this podcast for a quick summary of the article!

BQ Live

U.S. Market Check

• U.S. equities halted a two-day slide while Treasuries rose as investors assessed the likelihood for interest-rate cuts.
• The yield on 10-year Treasuries fell one basis point to 2.08 percent.

#BQMarketWrap | Stocks in U.S. climb with Treasuries; oil gains.

Read: https://t.co/GgxwPuJXIL pic.twitter.com/wfuzhVRPy9

Asian Cues

• Japan's Topix index slid 0.2 percent.
• South Korea's Kospi index fell 0.5 percent.
• Australia's S&P/ASX 200 Index was little changed.
• Futures on the S&P 500 Index dipped 0.1 percent.

Commodity Cues

• Brent crude traded little changed at $61.30 per barrel. The Asian crude benchmark ended 2.32 percent yesterday after surging over 4.5 percent.
• West Texas Intermediate crude slipped 0.3 percent to $52.11 a barrel.
• Gold was flat $1,343.70 an ounce.

London Metal Exchange

• Copper resumed gains after a one-day blip, ended 0.1 percent higher.
• Zinc halted a two-day gains, closed 1.3 percent lower.
• Nickel ended lower for the second day, down 0.04 percent.
• Aluminium ended a three-day gaining streak, closed 0.17 percent lower.
• Lead ended lower for the second day, down 0.45 percent.
• Tin ended higher for the second consecutive trading session, up 0.26 percent.

Indian ADRs

Stocks To Watch

• Wockhardt received zero Form 483 observation from the U.S. FDA after it had carried inspection of Bioequivalence Centre in Aurangabad, during which Tamsulosin and Metoprolol drugs were audited.
• Indiabulls Housing Finance said that it has made timely payment of interest of NCDs whose due date falls on June 14.
• HDFC AMC said that additions have been made to earlier show cause notices in relation to the matter pertaining to the investments of Fixed Maturity Plans of HDFC Mutual Fund in debt instruments of Essel Group Companies. Company said in the press release that they are working with legal advisors and are in process of responding to the said show cause notices.
• Thyrocare Technologies: Board to decide on separating arm Nuclear Healthcare after valuation report obtained from a merchant banker. On May 18, the auditors had pointed the impairment of the aforesaid arm. Company's Chairman and Managing Director Dr. A. Velumani offered to buy the entire shareholding of the this at current investment value of Rs 194.67 crore to ensure that no loss is done to public shareholders. Decision is awaited.
• Syndicate Bank to increase three-Month MCLR by 5 basis points to 8.5 percent with effect from June 15
• Union Bank executed an agreement to sell 10 lakh shares of National Payment Corporation of India for Rs 74 crore.
• EID Parry May sugar Sales down 53 percent at 0.24LMT versus 0.51LMT
• Intellect Design Arena sold its arm ‘SFL Properties' for Rs 20.5 crore

Pledge Share Details

• Olectra Greentech promoter Trinity Infraventure revoked pledge of 1.2 lakh shares on June 11
• JSW Steel promoters created pledge of 19.2 lakh shares from June 7-10
• Adani Ports promoter Adani Tradeline LLP revoked pledge of 8.44 lakh shares and promoter Gautam Adani released pledge of 1.28 crore shares from June 11-12

Trading Tweaks

• Cholamandalam Investment and Finance record date for share split at 5:1
• Eros International Media, Hindusthan National Glass & Industries to move into ASM Framework
• DCM Shriram to move out of short term ASM Framework
• Indiabulls Integrated Services, SORIL Infra Resources to move into short term ASM Framework
• DCM, IIFL Holdings price band revised to 20 percent
• Jammu & Kashmir Bank price band revised to 10 percent

Who's Meeting Whom

• Tata Steel to meet Invesco Asset Management, IIFL and other investors from June 14-19
• Hindustan Petroleum Corporation to meet Nirmal Bang Institutional Equities on June 20
• Himachal Futuristic Communications to meet Old Bride Capital Management on June 14

Insider Trading

• NCL Industries promoter group NCL Holdings sold 1.85 lakh shares and promoter K Roopa acquired 87,600 shares on June 12
• Kolte Patil Developers promoter group Vandana Naresh Patil acquired 33,000 shares on June 11
• Fiem Industries promoters acquired 50k shares on June 12

(As reported on June 13)

Money Market Update

The rupee is set to start on a weaker footing with risk appetite towards emerging currencies a bit unsettled after two tankers were damaged near the Persian Gulf and triggering geo-political tensions. The implied opening from forwards suggests spot may start trading around 69.59, having ended at 69.5150 on Thursday.

Indian sovereign bonds may rally after the central bank announced another open-market purchase of bonds in June. The Reserve Bank of India will purchase Rs 12,500 crore of government bonds via open-market operations on June 20, in what would be the second round of purchase for the month.

The RBI bought Rs 15,000 crore, as planned, through its OMO on Thursday, injecting durable liquidity into the banking system. The yield on the benchmark 2029 bonds ended steady at 7.01 percent on Thursday, up four basis points so far this week.

Futures And Options

June Futures

• Nifty futures closed at 11,928.3, premium of 14 points versus 10.5 points
• Nifty futures OI down 1 percent, sheds 1.1 lakh shares in OI
• Bank Nifty futures closed at 31,025, premium of 49 points versus 40 points
• Bank Nifty futures OI down 10 percent, sheds 2 lakh shares in OI

Options

• Nifty PCR at 1.46 Versus 1.32 (across all series)

Nifty Weekly Expiry June 20

• Max OI on call side at 12,000 (10.6 lakh shares), 11,900 (10.6 lakh shares)
• Max OI on put side at 11,800 (8.7 lakh shares), 11,900 (7.5 lakh shares)
• OI addition seen at 11,900C (+7 lakh shares), 11,000P (+6 lakh shares), 11,800P (+5.4 lakh shares)

Nifty Monthly Expiry June 27

• Max OI on call side at 12,000 (23.2 lakh shares)
• Max OI on put side at 11,500 (26.6 lakh shares)
• Max OI addition seen at 12,000C (+2 lakh shares), 11,900C (+2 lakh shares)

Stocks In F&O Ban

• In Ban: IDBI, Reliance Capital, Reliance Infra
• Out Of Ban: PC Jeweller

Brokerage Radar

HSBC on HDFC

• Maintained ‘Buy'; hiked price target to Rs 2,500 from Rs 2,195.
• Default by a large mortgage player to result in easier liquidity for better managed players.
• HDFC is well positioned for potential market share gains in current environment.
• Slower growth in wholesale loans mitigates asset quality risks.

Citi on Persistent Systems

• Maintained ‘Sell' with a price target of Rs 605.
• Company to focus on four key areas in BFSI, healthcare and industrial verticals.
• Management to give revenue growth guidance for 2019-20 in few months.
• Company to pursue M&A opportunities as part of its strategy.

Macquarie on Persistent Systems

• Maintained ‘Outperform' with a price target of Rs 840.
• Sales and marketing overhaul to aid in growth in medium term.
• M&A focus to increase in near to medium term.
• Believe industry level growth will take at least a year.

UBS on Small Finance Banks

• See robust growth at reasonable valuations.
• Recent decline in wholesale rates positives for margins.
• Loan growth over FY19-22 expected to be at a CAGR of 33 percent.
• AU Small Finance: Maintained ‘Neutral'; hiked price target to Rs 760 from Rs 700.
• Equitas: Maintain Buy; hiked price target to Rs 190 from Rs 160.
• Ujjivan: Maintain Buy; hiked price target to Rs 450 from Rs 340.

PhillipCapital on Kalpataru Power

• Initiated ‘Buy' with a price target of Rs 670.
• A play on multiple end markets and improving capital allocation.
• Channel checks suggest high probability of Domestic T&D orders going through.
• Focused approach to margins and working capital have yielded results.

*Corrects misstated stock split information on Cholamandalam Investment and Finance

Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.