From Advisory desk : Vikash Sahay
18th September 2020 : Market Outlook: US markets closed in red by a percent led by sell-off in tech stocks. Dow futures is trading 100 lower points lower. Asian markets are trading flat to positive including SGX Nifty. Yesterday we saw profit booking at 11600 but selected pharma and IT stocks curtailed the fall. Today we expect pharma stocks to do well as an overnight lot of drug clearances have been issued. Overall we expect Nifty to remain sideways.
Actionable: Buy Lupin & Infosys
Dr. Reddy: We continue to remain positive on the stock. (Announces settlement of litigation with Celgene, relating to Revlimid capsules)
SGX NIFTY: +10 (prev.close 11528)
NIFTY 50 : 11516
Sensex : 38979
FII: -250 Cr
DII: -1068 Cr
Advances: 1125 / Declines: 1612
Dollar: $ 73.65
Gold: $1958 per ounce
Crude: $43.35 per barrel
10 year US bond rate: 0.68
10 year Indian Bond rate: 6.03
Dr Reddy’s Laboratories: Announces settlement of litigation with Celgene, relating to Revlimid capsules. Celgene has agreed to provide DRL with the license to sell volume-limited amount of the capsule in the U.S. starting March 2022 to January 31, 2026 and there after without volume limitation. Revlimid is one of the largest drug and had registered a sales of $7.5billion in US.
Cipla & Lupin: Perrigo voluntarily recalls Albuterol Sulfate inhalation aerosols over clogging concerns. Positive for Cipla & Lupin as they already launched.
Essel propack: Private Equity firm Blackstone to sell 23% of its holding in the company through block deals, which would fetch $251million. Floor price set at Rs.255 per share, which is a discount of 6.5% to yesterday’s closing price.
Security in Ban : ADANIENT, AUROBINDO PHARMA, BANKBARODA, BHEL, CANABK, ESCORTS, IBULHSGFIN, IDEA,
JINDALSTEL, L&FTH, SAIL, TATACHEM,VEDL.
Derivative View : VIX closed at 20.10. Max Put OI is at 11500 then 11400. Max Call OI is at 11600 then 11700. Option data suggests a wider trading range between 11400 to 11700.