All You Need To Know Going Into Trade On June 20

Asian stocks were mixed after the Federal Reserve struck a dovish tone in its latest policy statement.

Stocks posted modest gains in Tokyo and were little changed in South Korea and Australia. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, rose 0.24 percent to 11,747 as of 7 a.m.

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BQ Live

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

U.S Market Update

U.S. stocks rallied for a third day and yields on shorter-maturity Treasuries tumbled after the Federal Reserve struck a dovish tone in its latest policy statement.

Bond traders are virtually certain that the Fed will ease policy as soon as next month.

#BQMarketWrap | Bonds surge, U.S. stocks rally after Fed turns dovish.

Read: https://t.co/a4oT98GeVv pic.twitter.com/rF6bi7Re5P

Asian Cues

Next up comes the Bank of Japan policy decision, where government-bond yields remained under pressure.

• Topix Index rose 0.5 percent.
• Kospi Index fell 0.1 percent.
• S&P/ASX 200 Index was little changed.
• S&P 500 Index futures rose 0.3 percent.

Commodity Cues

• Brent crude rose 1.3 percent to $62.64 a barrel.
• West Texas Intermediate rose 1.4% to $54.50 a barrel.
• Gold was little changed at $1,359.60 an ounce.

London Metal Exchange

• Copper halted a two-day gains, closed 0.52 percent lower.
• Nickel ended higher for the second day, up 1.17 percent.
• Zinc halted a two-day rally, closed 1.35 percent lower.
• Aluminium ended higher for the second day, up 0.17 percent.
• Lead halted a two-day rally, closed 1.3 percent lower.
• Tin ended 1.4 percent lower.

Indian ADRs

Stocks to Watch

• IndusInd Bank and Bharat Financial board fixed July 4 as the record date for determining the shareholders of BFIL who shall be entitled to receive shares of the Bank. The board have also decided to consider consolidated first quarter earnings on July 12.
• Adani Green won bids for setting up 600 MW wind-solar hybrid power project by Solar Energy Corporation of India. The fixed PPA tariff is Rs. 2.69/ kWh for a period of 25 years. Project is expected to be commissioned by March 2021.
• HDFC to acquire 51.2 percent stake in Apollo Munich for Rs 1,347 crore. Post acquisition, Apollo Munich will be merged with HDFC Ergo General Insurance. Proposed acquisition expected to complete within four months and the proposed merger is expected to be completed in nine months.
• Apollo Hospitals to sell entire 10 percent stake in Apollo Munich Health Insurance Company to HDFC for Rs 300 crore.
• Ashok Leyland plant at Pantnagar will remain closed from June 24 to June 29 (both days inclusive) to align with the production and sales requirements.
• Reserve Bank of India imposed a Rs 10 Lakh fine on South Indian Bank for non-compliance with the directions issued by RBI on guarantees and co-acceptances.
• Sun Pharma received Form 483 with four observations for Halol Plant.

Trading Tweaks

• Wipro, Adani Ports ex-date post buyback.

Who's Meeting Whom

• 5paisa Capital to participate in HDFC Securities Investor Conference on June 20.
• Container Corporation to meet Anand Rathi and BOB Capital on June 20.
• Syngene International to attend call with Fiera Capital on June 20.
• Cera Sanitaryware to participate in HDFC Securities Investor Conference on June 21.
• Brigade Enterprises to meet JM Financial, CLSA, Axis Mutual Fund, Investec, Citigroup, IIFL and Macquarie on June 21.
• Greaves Cotton to meet Hillhouse Capital, Zaaba Capital, Samsung Asset Management, E Fund Management, Nikko Asset Management, Skale and AIA on June 20 and Karst Peak, Invesco Asset Management, Doric Capital, Ward Ferry, APS, East Spring Investments, Amiral Gestion and May Bank on June 21.
• City Union Bank to attend Equirus BFSI Conference on June 20.
• Dixon Technology to meet Taiyo Pacific Partners on June 24 and Eastspring Singapore on June 25.
• Heidelberg Cement to meet C Worldwide Asset Management on June 20.
• TVS Motor Company to meet Hillhouse Capital on June 24.
• Manappuram Finance to attend Equirus BFSI Conference on June 20.

Pledge Share Details

• Adani Ports promoter release pledge on 4.31 lakh shares.
• Emami promoter pledged 2.45 lakh shares.
• Aurobindo Pharma promoter pledged 1.2 lakh shares.
• Sical Logistics promoter pledged 22.5 lakh shares.

F&O Cues

June Futures

• Nifty futures closed at 11,708.6, premium of 17 points versus 9 points.
• Nifty futures open interest down 3 percent, sheds 5 lakh shares in open interest.

Bank Nifty

• Bank Nifty futures closed at 30,350, discount of 12 points versus 20 points.
• Bank Nifty futures open interest up 5 percent, adds 76,000 shares in open interest.

Options

• Nifty PCR at 1.15 versus 1.13 (across all series)

Nifty Weekly Expiry 20 June

• Max open interest on call side at 11,900 (27 lakh shares)
• Max open interest on put side at 11,700 (12.3 lakh shares)
• Open interest addition seen at 11,800C (+1.6 lakh shares), 11,650C (+1.5 lakh shares), 11,650P (+1.5 lakh shares).

Nifty Monthly Expiry 27 June

• Max open interest on call side at 12,000 (25.8 lakh shares).
• Max open interest on put side at 11,500 (27.3 lakh shares).
• Open interest addition seen at 11,700P (+3 lakh shares), 11,800C (+2.7 lakh shares).

Stocks in F&O Ban

In Ban:

• DHFL
• IDBI Bank
• Jet Airways
• PC Jeweller,
• Reliance Infrastructure

New in Ban:

• Reliance Infrastructure

Out of Ban:

• Reliance Capital

Brokerage Radar

CLSA on Asian Paints

• Maintained ‘Sell' with a price target of Rs 1,285
• Slight deterioration of RoE and working capital seen in 2018-19; Strong FCF
• Several new launches – outlook a bit cautious.
• Margin optics to undergo a change.

CLSA on HDFC-Apollo Munich

• Acquisition to help HDFC deepen its presence in health insurance.
• Synergies and cost savings post merger will be key to improve profitability.
• Combined entity might need capital infusion to support growth.

Goldman Sachs on Vodafone Idea

• Upgraded to ‘Neutral' from ‘Sell'; maintained price target at Rs 12.
• Upgrade as risk-reward balance post recent correction.
• Market share remains under pressure.
• Existing cash to help meet capex/debt/interest obligations till 2020-21.
• Free cash flow to stay negative until 2021-22.

Citi on Tata Power

• Upgraded to ‘Buy' from ‘Neutral'; cut price target to Rs 76 from Rs 77.
• Upgrade on stock underperformance; stock is not expensive any more.
• Mundra UMPP resolution has reached its end game.
• Non-core asset divestment set to pick up the pace.

Emkay on Divi's Lab

• Upgraded to ‘Buy' from ‘Hold'; maintained price target at Rs 1,756.
• Upgrade after recent correction; weakness provides good entry point .
• With strong business moats, company is strongly poised to deliver an 18 percent EPS CAGR over FY19-21
• Confidence is premised on the strong capex intensity.

Nomura on Adani Ports

• Maintained ‘Neutral'; hiked price target to Rs 460 from Rs 380.
• Lowering promoter pledge and commitment to higher dividend payout policy are positives.
• Improving financial health of Adani Power reduces need for support from Adani Ports.
• Strong growth outlook already priced in.

UBS on Oil & Gas

• Refining and crude face uncertainties, RIL and OMCs could be safe havens.
• Emerge as prime beneficiaries of IMO 2020 regulations.
• Integration of refining into marketing could improve their ability to absorb earnings bumps.
• See easing political headwinds post the May general elections.
• BPCL: Maintained ‘Buy'; hiked price target to Rs 600 from Rs 415.
• HPCL: Maintained ‘Buy'; hiked price target to Rs 445 from Rs 315.
• IOCL: Maintained ‘Buy'; hiked price target to Rs 200 from Rs 185
• Chennai Petroleum: Maintained ‘Buy'; cut price target to Rs 370 from Rs 400
• MRPL: Maintained ‘Neutral'; cut price target to Rs 68 from Rs 83
• Reliance Industries: Maintained ‘Buy' with a price target of Rs 1,500.

Nomura on LIC Housing Finance

• Maintained ‘Buy'; hiked price target to Rs 640 from Rs 500.
• Liquidity is not challenge; rate cycle favourable.
• Core mortgage growth should gradually pick-up.
• Asset quality has been a dampener.

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