Actionable : Buy UBL, KEI Industries, Motherson sumi

From Advisory Desk : Vikash Sahay

23rd November 2020

Market Outlook: Dow futures have started flat and Asian markets are up by half a percent. SGX Nifty is up by 45 points. Back home, over the weekend, RBI has made new Annoucenenrts made like promoter holding can be increased to 26% from 15% in banks. Secondly new banking license would be issused to NBFC with 50,000cr as AUM. Also, as winter falls in northern India states like Rajasthan, Gujurat and MP, night curfew has been imposed due to the resurgence in COVID cases. This would be an important trend to be followed as it may impact the market.

Actionable: Buy UBL, KEI Industries, Motherson sumi

Global market:
DOW:  -219
SGX NIFTY:   +50  (prev.close 12882)
NIFTY 50 : 12859
Sensex : 43882

Institution:
FII:                 +3861 Cr
DII:                 -2869 Cr

NSE:
Advances: 1532 / Declines: 1269

Currency:
Dollar: $ 74.16

Commodity:
Gold: $1872  per ounce
Crude: $45.05  per barrel

Bonds:
10 year US bond rate: 0.82
10 year Indian Bond rate: 5.88

Updates:

Reliance industries: CCI on Friday approved the Future Retail ltd asset sale to Reliance industries.

Financials: Internal working group set up by RBI had recommended suggestions for providing license to large corporate/industrial houses, allowing NBFC’s above asset size of 50,000 crore to get banking license, No need of Holding structure, and increasing promoters stake from 15% to 26% over 15 years period of time. Kotak mahindra bank, Indusind bank, Bajaj finance, L&TFH, Equitas, IDFC Ltd and Ujjivan are key beneficiaries.

Securities in Ban: BANK OF BARODA, BHEL, CANBK, DLF, IBULHSGFIN, IDEA, L&TFH, NALCO,PNB, RBLBANK.

Derivative View : VIX closed at 19.61. Max Put OI is at 12800 then 12500. Max Call OI is at 13000 then 12900. Option data suggests a trading range between 12500 to 13000

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