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Your Complete F&O Trade Setup
- Nifty March Futures closed trading at 11,571, premium of 38 points.
- Max open interest for March 28 series at 11,500 Call, (open interest at 26 lakh shares)
- Max open interest for March 28 series at 11,000 Put, (open interest at 38.1 lakh shares)
Stocks In F&O Ban
- Adani Enterprises
- IDBI Bank
- Just Dial
- Jet Airways
- Reliance Power
- Reliance Capital
- Nifty PCR at 1.77 versus 1.66.
Brokerage Radar: Torrent Power, Mindtree, L&T
Morgan Stanley on Oil and Gas
- Transport fuel demand grew 4 percent despite slowing auto demand and challenges in aviation sector.
- Industrial fuel demand grew 5 percent despite competition from lower LNG prices.
- Fuel prices remain in sweet spot supporting demand growth.
Citi on UltraTech
- Maintained ‘Buy’ with a price target of Rs 4,450.
- Cement industry in sweet spot with improving demand, rising prices and falling costs.
- Management expects Ebitda margin to revert to the highs of the first quarter of current financial year.
- Focus area: profitable market share, deleveraging, efficiency gains and use of alternative fuels.
HSBC on Hero MotoCorp
- Maintained ‘Buy’; cut price target to Rs 3,500 from Rs 4,000.
- Volumes are likely to remain volatile led by high inventory channel and regulatory changes.
- Cut EPS estimates by 5 percent and 7 percent led by lower volume and margin estimates.
- Valuation remains undemanding and downside limited.
CLSA on Jubilant Food
- Maintained ‘Buy’ with a price target of Rs 1,600.
- Channel checks indicate that Domino’s has introduced 10 new pizzas ahead of sporting events.
- Focus is also on reducing delivery time; some stores targeting 20 mins.
- Efficiency and cost savings too continue; expect strong of above 25 percent EPS CAGR over FY20-21.
HDFC Securities on Broking Industry
- Market share moving towards discount brokers.
- Among traditional brokers Axis securities has done better than peers.
- Cash delivery business will become intensely more competitive.
- Motilal Oswal: Maintained ‘Neutral’ with a price target of Rs 611.
- ICICI Securities: Maintained ’Neutral’ with a price target of Rs 298.
HDFC Securities on Subros
- Maintained ‘Buy’ with a price target of Rs 309.
- Increased commitment by Denso ensures that Subros will benefit from technology shifts.
- Relationship scope will be confined to the thermal products domain.
- Mgmt. intends to deleverage the balance sheet further.
ICICI Direct on Hikal
- Initiated ‘Buy’ with a price target of Rs 200.
- Expertise in APIs to drive pharma growth..
- Crop protection growth to piggyback on client relationship
- Expect revenue, Ebitda and net profit to grow at a compounded annual growth rate of 15 percent, 18 percent and 30 percent respectively.
- Compelling risk-reward proposition considering future growth prospects.
Motilal Oswal on Torrent Power
- Initiated ‘Buy’ with a price target of Rs 315.
- Strong Positioning and healthy balance sheet provide strong base for growth.
- Volatility in earnings to reduce on accrual accounting in distribution.
- Expect Ebitda and net profit to grow at a compounded annual growth rate of 12 percent over FY19-21.
- Growth driven by regulated electricity and franchisee-based distribution business.
Motilal Oswal on Mindtree
- Downgraded to ‘Neutral’ from ‘Buy’; maintained price target at Rs 1,000.
- A distraction Mindtree could have done without.
- Turn of events may be unsettling for some employees/clients.
- Development may consume a substantial bandwidth of the founders.
- Maintained ‘Buy’ with a price target of Rs 1,670.
- Mindtree acquisition to add value; See EPS gains from FY21.
- Acquisition rules out large near-term dividend.
- Client/senior management attrition is the major risk.
- Maintained ‘Buy’ with a price target of Rs 1,805.
- Unclear about potential synergies that can be extracted.
- Raises concern on potential employee attrition and distrust at Mindtree.
- Makes us wonder on how L&T intends to utilise its cash over the next few years.
Trading Tweaks: Stocks Added To Short-Term ASM Framework
- NTPC record date for bonus share at 1:5.
- Advanced Enzymes Technologies, Dilip Buildcon, Coromandel Engineering, Khadim India to move into short term ASM Framework.
Pledge Share Details: Sun Pharma, Granules India
- Sun Pharma promoter group Shanghvi Finance creates a pledge of 40 lakh shares in March 15.
- Granules India promoters revoke 1.4 crore shares on March 15.
(As reported on March 19)
Bulk Deals: Usha Martin, Torrent Power
Offerings: Embassy Office Parks REIT, MSTC
Stocks To Watch: DLF, Fortis Healthcare, IDBI Bank, Mindtree, Jet Airways
Key Events To Watch This Week
Commodity Cues: Crude Trades Little Changed
Nifty Futures Suggests Stock Losses; Asian Equities Decline