All You Need To Know Going Into Trade On June 21

Asian stocks dipped on Friday, giving up a slice of their biggest weekly gain since January.

Japanese shares opened modestly lower, while those in Korea and Australia were little changed. That still leaves the MSCI Asia Pacific Index on course for a weekly advance of more than 3 percent.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, was little changed at 11,858 as of 7:25 a.m.

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BQ Live

U.S. Market Check

U.S. stocks rose to a record, while sovereign bonds extended gains and the dollar slumped after central banks around the world continued a shift toward easier monetary policy.

#BQMarketWrap | U.S. stocks rise to record as 10-year yield hits 2%.

Read: https://t.co/gHWIwEtTJU pic.twitter.com/iqRcJCqFSH

Asian Cues

• Japan's Topix index fell 0.4 percent.
• Futures on the S&P 500 Index dipped 0.1 percent.
• South Korea's Kospi index slipped 0.1 percent.
• Australia's S&P/ASX 200 Index slid 0.1 percent.

Commodity Cues

• Brent crude rose 0.65 percent to $64.87 a barrel. It ended 4.3 percent higher yesterday
• West Texas Intermediate rose 0.5 percent to $57.34 a barrel.
• Gold was at $1,391.50, up 0.2 percent.

London Metal Exchange

• Copper resumed gains after a one-day blip, closed 0.93 percent higher.
• Nickel ended higher for the third day, up 1.74 percent.
• Zinc ended lower lower for the second day, down 0.4 percent.
• Aluminium halted a two-day gains, closed 0.17 percent lower.
• Lead resumed gains after a one-day blip, closed 0.48 percent higher.
• Tin ended 1.46 percent higher.

Indian ADRs

Stocks To Watch

• Jet Airways admitted to insolvency by NCLT Mumbai. NCLT sought the progress report in 3 months instead of 180 days. Resolution professional also directed to submit reports every 15 days, starting July 5.
• Tata Motors' corporate family rating and the company's senior unsecured instruments rating to Ba3 from Ba2. downgrade reflects the sustained deterioration in credit profile led by the weak performance of its 100 percent owned subsidiary Jaguar Land Rover.
  Moody's also downgraded the corporate family rating (CFR) of Jaguar Land Rover Automotive Plc to B1 from Ba3 and probability of default rating (PDR) to B1-PD from Ba3-PD. Moody's has also downgraded the instrument ratings on the bonds to B1 from Ba3. The outlook remains negative.
• Balaji Telefilms completed sale of rights for upcoming slate of four movies for over Rs 100 crore. Pen Marudhar Entertainment (subsidiary of Pen Studios) has acquired the distribution rights for Mental Hai Kya, Jabariya Jodi, Dream Girl & Dolly Kitty Aur Woh Chamakte Sitaare.
• Welspun Corporation commenced production of pipes at spiral pipe plant in Jamunia (near Bhopal) in Madhya Pradesh. This plant has a capacity of around 175 KMT p.a.
• AU Small Finance Bank Board approved issue of Basel II compliant, Tier II, unsecured redeemable NCDs upto Rs 500 crore in one or more tranches
• Bombay Dyeing CFO resigned on account of personal reasons. He will continue to serve as CFO till August 31, 2019.
• Maruti Suzuki increased price in all variants of Dzire. Price shall now vary from Rs. 5,82,613/- to Rs. 9,57,622/- (ex-showroom price in Delhi & NCR). Dzire is now compliant with "AIS-145 Safety Norms" and Dzire Petrol is also now BS-VI compliant.
• Andhra Bank board meet on June 25 to consider capital raising plan of the bank for 2019-20.
• Sunil Hitech: Resolution Professional has filed for liquidation of the company on receipt of any resolution plan within the stipulated time period of 270 days under CIRP.

Pledged Shares

• About 14 lakh shares or 1.93 percent equity of Eveready Industries were invoked by Vistra (ITCL) India Ltd (Trustee for the joint lenders namely- IL&FS Financial Services, IL&FS Infra Debt fund, Aditya Birla Finance

• Apollo Tyres promoter pledge additional 34.5 lakh shares.
• Max Financial Services promoter pledge additional 12.3 lakh shares
• Zuari Agro Chemical promoter pledge additional 3 lakh shares
• Satin Creditcare promoter pledge additional 5 lakh shares
• Emami promoter pledge additional 6.99 lakh shares
• Coffee Day Enterprises promoter (V G Siddhartha) pledge additional 16.9 lakh shares
• Max India promoter pledge additional 1.66 crore shares

Who's Meeting Whom

• Shakti Pumps to meet investors on June 21 (Specific names not disclosed)
• Blue Star: Company's officials will meet Alliance Bernstein on June 21 in Mumbai.

Trading Tweaks

• GAIL fixes July 10 as record date for the purpose of ascertaining the eligibility of shareholders for issuance of bonus shares in the ratio of 1:1

Futures And Options

June Futures

• Nifty futures closed at 11,849.4, premium of 17.7 points
• Nifty futures open Interest down 2 percent, sheds 4.2 lakh shares in open Interest
• Bank Nifty futures closed at 30,768, discount of 13 points versus 12 points
• Bank Nifty futures open Interest up 15 percent, adds 2.3 lakh shares in open Interest

Options

• Nifty PCR at 1.59 versus 1.15 (across all series)

Nifty Monthly Expiry June 27

• Max Open Interest on call side at 12,000 (27.9 lakh shares)
• Max Open Interest on put side at 11,700 (35.8 lakh shares)
• Open Interest addition seen at 11,800P (+11.6 lakh shares), 11,700P (+10.5 lakh shares), 12,200C (+8.7 lakh shares)

Stocks In F&O Ban

• In Ban: IDBI, Jain Irrigation, Reliance Capital, Reliance Infra
• New In Ban: Jain Irrigation, Reliance Capital
• Out Of Ban: DHFL, Jet Airways, PC Jeweller

Brokerage Radar

CLSA on Pidilite

• Maintained ‘Sell' with a price target of Rs 1,060.
• Consumer slowdown worrying; domestic market competition heating up.
• Turnaround in international subsidiaries/operations still awaited.
• Valuations expensive; new product categories scale-up critical.

CLSA on TVS Motor

• Maintained ‘Sell' with a price target of Rs 360.
• Cautious two-theeler industry outlook; competition to intensify further ahead of BS-VI.
• Cash flows declined in FY19 despite higher Ebitda.
• Cut FY20/21 EPS estimates by 11-16 percent factoring in lower volumes and margins.

Macquarie on Phoenix Mills

• Maintained ‘Outperform'; hiked price target to Rs 850 from Rs 700.
• Progress on under-construction assets going well.
• Locations of new malls attractive and should command strong rent.
• No funding risk for expansion; hike EPS estimates for the next two financial years by 5 percent and 9 percent respectively on stable rent.

UBS on Maruti Suzuki

• Downgraded to ‘Sell' from ‘Buy'; cut price target to Rs 5,800 from Rs 8,000.
• Unlikely to benefit from BS-VI; negative operating leverage not built in.
• Limited room to outperform; complete diesel exit a risk in the next financial year.
• Capacity utilisation set to bottom in the next financial year.

Morgan Stanley on Godrej Properties

• Downgraded to ‘Underweight' from ‘Equal-weight'; hiked price target to Rs 802 from Rs 707.
• Downgrade on rich valuations; current valuation ahead of fundamentals.
• Like trusted brand name, asset-light business model and pace of new project addition.
• Cut FY20/21 EPS estimates by 6 percent/1 percent to factor Ind-AS impact, higher interest and selling cost.

Deustche Bank Research on UPL

• Maintained ‘Buy' with a price target of Rs 1,050.
• Believes concerns are overdone.
• Concern 1: UPL's tax rate will rise as Mauritius is changing its laws.
• Concern 2: African swine fever will impact UPL's revenue.
• Concern 3: Tight liquidity situation in India will impact UPL as it has a high leverage.
• Concern 4: Pledged shares of promoters may be sold as seen in a few other levered Indian companies.

Citi on United Breweries

• Maintained ‘Buy'; cut price target to Rs 1,560 from Rs 1,620.
• Still hoppy, but loses a bit of fizz; election impact will manifest in Q1FY20.
• Cut FY20/21 EPS estimates by 3-5 percent to account for input cost pressures.
• Glass and Barley which have risen 10 percent/15 percent respectively in the past few months.

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