In today’s briefing:
- Got the BBIG Rebalancing Results: SK Innovation Is the Trade This Week
- Jindal Steel & Power (JSP IN) – Cyclical Downturn Provides Attractive Entry Point
- Chifeng Jilong A/H Trading – Weak Institutional Demand and Probably Close to Fair Value
- Nifty Index Options Weekly (Mar 03 – 07): Rebound Ends Extended Losing Streak
Got the BBIG Rebalancing Results: SK Innovation Is the Trade This Week
- Real alpha? Tight basket means outsized passive flows. The play? SK Innovation, no contest.
- Samsung SDI faces -0.54x ADTV outflows. Other movers: Netmarble 0.68x, Wemade Max 0.54x, NHN -0.46x ADTV.
- Net-Net? SK Innovation is the trade. Long here, hedge short on Samsung SDI or the broader Battery space.
Jindal Steel & Power (JSP IN) – Cyclical Downturn Provides Attractive Entry Point
- Strong focus on capacity enhancement. Increasing steelmaking capacity by 65% over the next 3 years to 15.9mt.
- Recent margin dip provides attractive entry point. Promoters/insiders have bought into recent decline in stock price
- Attractive long-term play on rising domestic steel demand. Low debt levels at <1.4x EBITDA allows for steady capacity addition.
Chifeng Jilong A/H Trading – Weak Institutional Demand and Probably Close to Fair Value
- Chifeng Jilong Gold Mining (600988 CH) , a gold mining company in China, raised around US$363m in its H-share listing in Hong Kong.
- It operates six gold mines in Asia and Africa and has been listed on the Shenzhen Stock Exchange since 2004.
- We have covered the company and deal background in our previous notes. In this note, we talk about the trading dynamics.
Nifty Index Options Weekly (Mar 03 – 07): Rebound Ends Extended Losing Streak
- The Nifty snapped its losing streak with a sharp rebound, rising 1.92% for the week.
- Implied volatility struggled to hold up, trading lower through most of the week.
- We break down the implied vs. historic vol relationship and what it signals for traders.
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