Trader’s Diary: Don’t enter new positions at this point

SAIL rallies 14%, BHEL 7%, PNB 5%; ICICI Bank slips 2%.

Shares of Jubilant FoodWorks, the operator of Domino’s Pizza chain in India, climbed nearly 5 per cent in the afternoon trade on Thursday after the company reported over two-fold rise in net profit at Rs 48.47 crore for the quarter ended September 30, 2017 against Rs 21.56 crore in the corresponding quarter last year. The scrip was trading 3 per cent up at Rs 1,650. Shares of the company opened at Rs 1,600 and touched a high and low of Rs 1,656.10 and Rs 1,567, respectively, in trade so far.

Saudi Aramco's initial public offering is on track for next year, and the national oil giant could be valued at more than $2 trillion, Saudi Arabia's Crown Prince Mohammad bin Salman told Reuters in an interview. The sale of around 5 percent of Aramco next year is a centrepiece of Vision 2030, an ambitious reform plan to diversify the Saudi economy beyond oil which is championed by Prince Mohammad.

A one-stop shop that offers a vast portfolio of products for use at every stage of construction – from cement to electrical equipment – this smallcap company got listed on the bourses in April 2017. In six months, shares of this company have doubled investor wealth. So, what drives the stock?

Shares of Reliance Communications (RCom) fell over 4 per cent to hit a fresh 52-week low in Thursday's trade after the ET reported that the operator was shutting down its 2G business. The stock, which had fallen 3.24 per cent on Wednesday, fell another 4.55 per cent to Rs 15.70 on BSE. This was the third day of losing streak for the stock.

Shares of KEC International jumped 5 per cent in Thursday's trade after the firm bagged new orders worth Rs 1,931 crore. The orders won are from various verticals including transmission & distribution, cables, railways and renewables. Following the announcement, the stock rose 4.78 per cent to hit a high of Rs 301 on BSE.

The initial public offering (IPO) by Reliance Nippon Life Asset management (RNAM), which got fully subscribed on first day of the bidding process, continued to see investor demand, as the issue got 4.85 times subscription by 11.30 am on Thursday. The issue has received bids for 20,76,32,151 shares compared with the total issue size of 4,28,40,000 shares.

Shares of Engineers India gained nearly 7 per cent in morning trade on Thursday after the company on Wednesday posted 27.11 per cent rise in net profit at Rs 119.17 crore for the quarter ended September 30, 2017 against Rs 93.75 crore in the corresponding quarter last year. The stock had hit 52-week high of Rs 175.70 on May 17, 2017 and 52-week low of Rs 118.43 on November 9, 2016.

Shares of Exide Industries slipped as much as 5 per cent in morning trade after the battery major on Wednesday posted a 25.46 per cent fall in its net profit at Rs 135.52 crore for the quarter ended September 30, on account of higher expenses. It had posted a net profit of Rs 181.81 crore in the corresponding quarter last year.

Shares of V-Guard slipped 3 per cent in Thursday's trade on profit taking. The scrip had surged in the previous session on better-than-expected set of numbers for September quarter. The stock, which had surged 6.21 per cent on Wednesday, snapped a three-day winning streak and, was trading 2.57 per cent lower at Rs 204 on BSE.

The Nifty PSU Bank index was trading 1.71 per cent up at 4,078, with shares of Punjab National Bank (up 5.91 per cent), IDBI Bank (up 5.07 per cent) and Union Bank of India (up 4.17 per cent) as the top gainers. Bank of India (up 2.28 per cent), State Bank of India (up 1.59 per cent), Allahabad Bank (up 1.43 per cent) and Bank of Baroda (up 1.38 per cent) were also trading in the green.

The move drove the PSU Index of state banks up by 30 percent on Wednesday, adding about $17 billion in market capitalization to its members, as optimism builds that the new funds will fill the gaping hole in capital that had curbed the lenders’ ability to extend credit. Even so, the PSU index has a long way to go before it catches up to its sister index, the Nifty Bank Index.

Shares of Polaris Consulting & Services hit a 20 per cent upper circuit in Thursday's trade after the IT company told stock exchanges that its board would meet on October 31 to consider delisting of its equities. The stock rose 20 per cent to hit a high of Rs 291.05 on BSE.

Shares of Jaiprakash Associates plunged nearly 12 per cent in early trade on Thursday after the Supreme Court on Wednesday declined to allow the company to hive-off the rights of multi-crore six-lane Yamuna Expressway connecting Greater Noida with Agra in Uttar Pradesh. However, the court extended the time from October 27 to November 5 for Jaiprakash Associates to deposit Rs 2,000 crore.

Sensex, Nifty start on a negative note ahead of F&O expiry; PNB rallies 4%, SBI, IDBI up 3% each.

Sensex, Nifty flat; Rupee trades at 64.78 against dollar.

Nifty futures trading on SGX were trading 19 points, or 0.19 per cent, lower at 10,274.50, indicating a negative for the Nifty50.

The index hit a record high of 10,340 by surpassing previous high of 10,251 by a wide margin. It eventually settled the day at 10,295.35, up 87.65 points, or 0.86 per cent. “The indices are likely to pause in next trading session. Even the breadth of the market is suggesting the same thing. We can expect Nifty to target 10,380-10,430 kind of levels where as weakness shall remerge if it closes below 10237 levels,” said Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in.

Market-wide rollover of F&O positions till Wednesday stood at 35 per cent compared with an average rollover of 54 per cent seen in the last three F&O series. Nifty futures rollovers at 44 per cent which were in line rollovers seen on an average in last three series. “Rollovers have been in line with a higher open interest base. With roll levels generally on the higher side this series, most of the short roll positions of both domestic and the FIIs have preferred rolling over. Going into the expiry day, our bias is slightly tilted towards the positive side,” Edelweiss Securities said.

Yes Bank, Biocon, Crompton Greaves, Jubilant FoodWorks, Mastek, United Spirits, Whirlpool of India, Srei Infra, Vijaya Bank, GIC Housing Finance, MphasiS and Indiabulls Ventures are some of the companies scheduled to announce quarterly results on Tuesday.

The Rs 1,542 crore initial public offering of the Anil Ambani-led Reliance Nippon Life Asset Management (RNAM) was subscribed 4.63 times on the first day of its offer. Reliance Nippon Life is the first asset management company to get listed on the exchanges.

The government's capital infusion for public sector banks means that consolidation of these lenders is now on the back burner and could be delayed to after elections in 2019. The key will also lie in how the banks utilise the capital and put the house in order, analysts said.

Reliance Communications (RCom) is shutting major parts of its wireless business in the next 30 days to cut widening losses, blaming, among other factors, the “creative destruction“ wrought by Reliance Jio's free voice services. The shakeout in the sector has led to just three big non-state companies remaining in the fray, aside from the government-run telecom players.

US stocks fell in overnight trade, with the Dow Industrials and S&P 500 indices suffering their worst day in seven weeks, on a batch of soft quarterly earnings and a rise in bond yields, Reuters reported. The Dow Jones Industrial Average index fell 112.3 points, or 0.48 per cent, to end at 23,329, the S&P500 index lost 11.98 points, or 0.47 per cent, to 2,557 and the Nasdaq Composite index dropped 34.54 points, or 0.52 percent, to 6,563.

The 30-share index ended up 1.3% at 33042.5, its biggest singleday gain since May 25, after hitting a record high of 33117.33 intraday. The Nifty too ended at a lifetime high of 10295.35, up 0.9% from previous close, after hitting 10340.55 intraday.