From Advisory Desk 9th November 2020
Market Outlook: The duo Bidden-Harris winning the US elections has cleared the uncertainty and has brought smile back to capital market across the globe. Dow future is up by 1.5%, Asian markets is up to 2%. SGX Nifty is up by 160 points which will take Nifty to life high. FIIs have bought Rs 14,000 cr in the month of November so far. VIX has cooled down and is below 20. The run is broad based and hence markets will take direction from the quarterly results from here on.
Actionable: Buy Max Financials, Voltas, Infosys, Divis Lab.
SGX NIFTY: +170 (prev.close 12265)
NIFTY 50 : 12263
Sensex : 41893
FII: +4870 Cr
DII: -2939 Cr
Advances: 1477 / Declines: 1148
Dollar: $ 74.20
Gold: $1956 per ounce
Crude: $40.45 per barrel
10 year US bond rate: 0.83
10 year Indian Bond rate: 5.87
Today’s results announcement: Delta Corp, JK Cement, VIP industries, Venky’s, Indiamart, equitas small finance bank.
Biocon: Biocon Biologics has received capital infusion worth Rs 1,125 crore from Goldman Sachs. As per terms of the agreement, Goldman Sachs will be issued optionally convertible debentures at a post money equity valuation of $3.94 billion.
Dilip buildcon: Company has emerged as the lowest bidder for development and operation of Siarmal open cast project in Odisha having contract value of Rs. 37,215 crore. The mineable reserve of the block to be exploited over a contract period of 25 years is 1,091 million metric tons.
Life insurance industry update : Industry reported overall APE growth of 10.7% in Sep month vs 4.1% in Aug 2020. Among listed players, Max life & HDFC life reported positive growth of 49% YoY and 45% YoY, respectively. On the other hand, SBI Life posted growth of 14% YoY. ICICI pru continued to witness pressure and reported decline of 22% YoY.
Above estimates: Divis labs, BEL, Vedanta, India cements, Cipla, Glenmark, Tata Consumer, Alkem, Balkrishna industries
Inline estimates: ABFRL, ITC, Manappuram
Below estimates: Bosch, BHEL
Securities in Ban: SAIL, JINDALSTEL.
Derivative View : VIX closed at 20.49. Max Put OI is at 12100 then 12000. Max Call OI is at 12700 then 12500. Option data suggests a trading range between 12000 to 12700.