F&O expiry: Nifty ends at 10,589, PSU banks fall; rupee hits record low

Among sectoral indices, the Nifty PSU Bank index ended nearly 2% lower led by a fall in the shares of Punjab National Bank, Bank of India and Syndicate Bank.

9:17 AM

Market at open

 

At 9:15 AM, the S&P BSE Sensex was trading at 35,174, down 42 points while the broader Nifty50 was ruling at 10,650, down 22 points.

9:03 AM

Markets at pre-open

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,257.40	+40.29	+0.11
S&P BSE SENSEX 50	11,177.87	-4.00	-0.04
S&P BSE SENSEX Next 50	31,773.38	-37.05	-0.12
S&P BSE 100	10,940.51	-5.23	-0.05
S&P BSE Bharat 22 Index	3,282.21	+0.94	+0.03

(Source: BSE)

8:55 AM

Today's picks: From HPCL to Tech Mahindra, hot stocks to watch today

Tech Mahindra

Current price: Rs 714 

Target price: Rs 728
 

Keep a stop at Rs 707 and go long. Add to the position between Rs 722 and Rs 725. Book profits at Rs 728.

 

HPCL 

Current price: Rs 277

Target price: Rs 272
 

Keep a stop at Rs 280 and go short. Add to the position between Rs 273 and Rs 274. Book profits at Rs 272. READ MORE

8:48 AM

Top trading ideas from Prabhudas Lilladher: Buy Voltas, Radico Khaitan

BUY VOLTAS

CMP : Rs 535.25

TARGET : Rs 590

STOP LOSS : Rs 505

 

The stock has witnessed a good consolidation phase at around 520 forming a strong base near 510 levels and now has produced a positive bullish candle pattern in the daily chart to signify strength and has got the potential to rise further and take the stock to around 580-590 levels. The RSI also has indicated a steep rise with a trend reversal to signal a buy and has maintained a positive bias. With good consistent volume participation witnessed, we recommend a buy in this stock for an upside target of 590 keeping a stop loss of 505.

 

BUY RADICO KHAITAN

CMP : Rs 405.05

TARGET : Rs 450

STOP LOSS : 380

 

The stock has been consolidating for some time at around 395 forming a good base at 382 levels and currently has given a bounce to indicate a positive bias even in this weak scenario to signify strength and potential to rise further in the coming days. With the RSI recently witnessing a trend reversal and is on the rise to signal a buy and with decent volume participation witnessed, we recommend a buy in this stock for an upside target of 450 keeping a stop loss of 380. READ MORE

8:45 AM

SECTOR WATCH Jefferies on Pharma sector

Indian pharma fundamentals are still weak. Earnings ests for the sector factor in a best case in terms of facility clearance, margin recovery and specialty ramp-up. While mgmt commentary alludes to single-digit price erosion, competition from new players remains high. Specialty investments are expected to deliver over next 18m but approval and execution risks are high. Valuations at 20x+ FY20 reported EPS also leave no room for miss. Remain cautious on sector.

8:45 AM

Nifty outlook from Prabhudas Lilladher for today

Nifty broke the crucial support of 10,700 mark on the back of heavy selling pressure weakening the sentiment and bias as of now. The chances of some more downward slide in the coming days cannot be ruled out and for Nifty now 10,530-10,550 would be the major support level whereas for Bank Nifty the breach of 26,300 levels would disrupt the bias and further selling pressure may be triggered. However, the support for the day is seen at 10,610 while resistance is seen at 10,730.

8:44 AM

ROLLOVER STATS

Overall Nifty expiry till date performance has been muted with Index trading ~60bps lower since the previous expiry. However the real pain is being witnessed in mid and small caps with the indices getting hammered by 3.5% and 8.65% respectively in June month. Nifty is holding on with the help of few heavy weights. Global markets recovery will support the Indian markets for tomorrow’s trading session. For the expiry today, the Nifty may find support at 10600 which has the highest Put OI concentration of 3.15mn shares standing whereas upside 10750 could be see

(Source: Edelweiss report)

8:44 AM

ROLLOVER STATS

Nifty futures rollovers stand at 42% compared to the average rollovers of 47% (last three series). Nifty futures OI stands at INR 306bn (~28.7mn shares) as against the OI of INR 298bn (~28.1mn shares) on D-1 of the last series. Nifty futures roll levels (cost to long rollers) continues to witness short aggression as it went down to ~25-27bps (adjusted to dividend of 28 points) as against 28bps yesterday. Around 49.9k contracts got rolled today while ~11.2k contracts were added in the next month.

 

(Source: Edelweiss report)

8:43 AM

IPO WATCH Prabhudas Lilladher on Varroc Engineering

At the upper band of the issue price, the stock will trade at 29x FY18 EPS, which is higher than the market PER but cheaper than its peers like MSS, trading at ~34x FY18 and Endurance technologies, trading at 43.5x FY18.

Given the stable business model, comprehensive product portfolio, strong OEM relationships, owned technology platforms, healthy balance sheet (D/E at 0.3x) and decent return ratios (RoCE/RoE of 14%/16%), the stock is structurally a good story. However, in the current market conditions, the same is steeply valued with nothing left on the table in terms of listing gains. We recommend "Subscribe" to the issue only with a long term investment strategy of 24 to 36 months

8:41 AM

Fund flow update for May

 

India flows—listed funds saw outflows of US$1.1 bn after continued positive flows since January. ETFs witnessed outflows of US$618 mn and non-ETFs saw outflows of US$499 mn. India-dedicated funds saw outflows of US$702 mn while GEM funds saw outflows of US$370 mn.

 

Emerging market flows—China saw the highest inflows of US$2.4 bn, led by strong ETF flows of US$1.8 bn. Total FPI activity and EPFR activity showed similar trends for all countries except Thailand in May.

 

Country allocations—allocations to India and China constitute more than one-third of the average Asia ex-Japan fund portfolio. Allocation to India by Asia ex-Japan funds increased to 12.1% in May from 11.8% in the previous month. Fund allocation to India by GEM funds remained at April level at 9.8%. Allocation by Asia ex-Japan non-ETF funds to India increased to 12.8% in May from 12.4% in April. Allocation to India by GEM ETF funds dwindled to 9.3% in May from 9.9% a year ago.

(Source: Kotak Securities)

8:40 AM

Morgan Stanley maintans Buy on IndoStar Capital Finance

The stock is among the cheapest NBFCs in terms of valuation. We forecast ROE to rise from 11% in F18 to 13% in F21 and 16%+ in F23 as operating and financial leverage set in. Our price target implies a re-rating to 1.7x F20 BV (MSe). Vehicle finance and wholesale finance will be IndoStar's key profitable segments. Downside risks to our forecasts and valuation will depend on the CV cycle and state of the real estate industry

8:38 AM

Shares of small companies witness fresh bout of selling on Wednesday

Shares of small companies witnessed a fresh bout of selling on Wednesday with the NSE Nifty Smallcap 100 index dropping 2.3 per cent even as the benchmark Nifty50 declined 0.9 per cent. The index of companies, with market capitalisation between Rs10 billion and Rs70 billion, has fallen more than a per cent in 33 of the 121 trading sessions this year — 28 per cent of the time. It has seen a fall of 2 per cent or more on 12 occasions, with several of its components correcting 10 per cent or more in a single session regularly READ MORE

8:35 AM

SGX Nifty

The SGX Nifty was at 10,664.50, down 0.08 per cent from the previous close.

8:33 AM

Asian Markets

Asian stocks slumped to nine-month lows on Thursday on growing worries the US administration’s approach to trade is harming global economic growth even as it appeared to be modifying its approach to curb Chinese investments in US technology firms.

 

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.25 per cent to a nine-month low in early trade while Japan’s Nikkei shed 0.30 per cent.

8:33 AM

Wall Street

US stocks fell on Wednesday on renewed uncertainty regarding the US stance on Chinese investments in American technology companies, reversing gains earlier in the session.

The Dow Jones Industrial Average fell 165.52 points (0.68 per cent) to 24,117.59, the S&P 500 lost 23.43 points (0.86 per cent) to 2,699.63 and the Nasdaq Composite dropped 116.54 points (1.54 per cent) to 7,445.09.