In the week gone by, global stock market remained extremely cautious as Fresh I Covid shutdowns have raised fears over a halt to economic recovery, offsetting optimism over vaccine development. Moreover Global stock markets came under pressure after the US Treasury Secretary Steven Mnuchin called for an end to pandemic relief for struggling businesses, sparking a rare clash between the central bank and Treasury and weighing on sentiment. The number of Americans seeking unemployment aid rose last week to 742,000, the first increase in five weeks and a sign that the resurgent viral outbreak is likely slowing the economy and forcing more companies to cut jobs. European stock markets also closed lower as a rally prompted by positive vaccine news started to peter out amid renewed fears of shutdowns due to rising coronavirus cases. Meanwhile, European Central Bank (ECB) President Christine Lagarde on Thursday cautioned that euro area inflation is likely to remain negative into early 2021 as fresh economic shutdowns sweep through the continent. Japanese stock markets also looked weak after Tokyo issued its most severe warning about record daily cases of the coronavirus that raised concerns about further restrictions on the country's economic activity.
Back at home, a sell-off in global markets amid renewed fears of lockdowns to curb the rise in Covid-19 cases dampened investor sentiment. Actually the constant FII buying is providing support to the market while continuous DII selling is pulling the market down as they turned cautious. Led by a recovery in construction and manufacturing activities, India’s gross domestic product (GDP) is estimated to have contracted to 9.5 percent in the September quarter from 23.9 percent in Q1 FY2021. Festival fever seems to have released the pent-up demand created by the Covid-19 pandemic. According to RBI data, the pre-Diwali cash in circulation touched the highest in more than a decade indicating a revival of demand in the system and pickup in economic activity. India's factory output, which is measured in terms of Index of Industrial Production (IIP), for the month of September 2020 jumped to 0.2 per cent from – (minus) 8 per cent in August 2020. Going forward, it is expected that volatility will continue in the markets and investors are advised to remain cautious.
On the commodity market front, CRB saw marginal upside on vaccine optimism amid fall in dollar index. The dollar was down despite optimism over the latest positive news on the COVID-19 vaccine front. Gold may remain choppy with mixed factors in place however it is expected buying interest to emerge at lower levels as price may remain supported by hopes of additional stimulus measures. Gold and silver should trade in a range of 48500-51000 and 59000-62500 respectively. Crude should be in a range of 2950- 3250 levels. China has come with new copper contract. Overseas investors will, for the first time, be able to trade copper futures on the Shanghai International Energy Exchange. It is priced in yuan, will exclude taxes and customs duty, and will be delivered into bonded warehouses. Base metals are most likely to trade up on hope of stimulus by US amid improvement in economic data. Markit Manufacturing PMI Flash, Consumer Confidence, Durable Goods Orders, GDP, Core PCE Price Index, Michigan Consumer Sentiment Final, PCE Price Index and FOMC Minutes of US, GDP of Germany and Mexico etc are few triggers for the week.
SMC Global Securities Ltd. (hereinafter referred to as “SMC”) is a registered Member of National Stock Exchange of India Limited, Bombay Stock Exchange Limited and its associate is member of MCX stock Exchange Limited. It is also registered as a Depository Participant with CDSL and NSDL. Its associates merchant banker and Portfolio Manager are registered with SEBI and NBFC registered with RBI. It also has registration with AMFI as a Mutual Fund Distributor.
SMC is a SEBIregistered Research Analyst having registration number INH100001849. SMC or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing /dealing in securities market.
SMC or its associates including its relatives/analyst do not hold any financial interest/beneficial ownership of more than 1% in the company covered by Analyst. SMC or its associates and relatives does not have any material conflict of interest. SMC or its associates/analyst has not received any compensation from the company covered by Analyst during the past twelve months. The subject company has not been a client of SMC during the past twelve months. SMC or its associates has not received any compensation or other benefits from the company covered by analyst or third party in connection with the research report. The Analyst has not served as an officer, director or employee of company covered by Analyst and SMC has not been engaged in market making activity of the company covered by Analyst.
The views expressed are based solely on information available publicly available/internal data/ other reliable sources believed to be true.
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SAFE HARBOR STATEMENT: Some forward statements on projections, estimates, expectations, outlook etc are included in this update to help investors / analysts get a better comprehension of the Company's prospects and make informed investment decisions. Actual results may, however, differ materially form those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, Impact of competing products and their pricing, product demand and supply constraints. Investors are advised to consult their certified financial advisors before making any investments to meet their financial goals.
The management of the bank expects growth revival especially in its retail businesses and the bank is well positioned on capital and liquidity in its chosen segments. As a bank, it has again achieved a robust set of numbers in this quarter and prudently has added to its provisioning buffers. Despite the positive signals, the bank continues to focus on balance sheet protection, risk mitigation and capital conservation in the near term. Business performance of the bank such as domestic loan growth, overall corporate advances, retail loan growth, CASA ratio are continuously improving. Thus, it is expected that the stock will see a price target of Rs.263 in 8 to 10 months’ time frame on current P/Bvx of 1.16x and FY22 BVPS (Book Value per Share) of Rs.226.88.
Considering its attractive valuation which is supported by a strong portfolio of operational rental assets, thereby reducing the risks associated with residential segment, and a planned increase in commercial and retail properties going forward. Also, an encouraging quarter on collections, plans to tap new geographies like Mumbai, Pune, NCR and Goa. Moreover, after the finalization of the Blackstone group deal, the Prestige group will utilise the fund raised through this monetisation to partly retire its debt and future expansion. According to the management, it expects that the rest of the 2 quarters, Q3 and Q4, will also be good and better than Q2. Thus, it is expected that the stock will see a price target of Rs.316 in 8 to 10 months time frame on a three year average P/BV of 2.16x and FY22 BVPS of Rs.146.32.
The stock closed at Rs 1425.30 on 20th November 2020. It made a 52-week low at Rs 947.90 on 23rd March 2020 and a 52-week high of Rs. 1639 on 27th January, 2020. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 1245.56.
As we can see on charts that stock is trading in higher highs and higher lows, formed a “Rising Wedge” pattern on weekly charts which is bullish in nature. Moreover, technical indicators such as RSI and MACD are suggesting buying for the stock. Therefore, one can buy in the range of 1390-1400 levels for the upside target of 1510-1540 levels with SL below 1340.
The stock closed at Rs 58.10 on 20th November, 2020. It made a 52-week low of Rs 27 on 12th May, 2020 and a 52-week high of Rs. 63.40 on 21st August, 2020. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 51.97.
Short term, medium term and long term boas are positive for the stock as it is trading in higher highs and higher lows. Apart from this, it is forming an “Inverted Head and Shoulder” pattern on weekly chart which is bullish in nature. Therefore, one can buy in the range of 56.50-57 levels for the upside target of 65-67 levels with SL below 53.
Disclaimer : The analyst and its affiliates companies make no representation or warranty in relation to the accuracy, completeness or reliability of the information contained in its research. The analysis contained in the analyst research is based on numerous assumptions. Different assumptions could result in materially different results.
The analyst not any of its affiliated companies not any of their, members, directors, employees or agents accepts any liability for any loss or damage arising out of the use of all or any part of the analysis research.
SOURCE: RELIABLE SOFTWARE
Charts by Reliable software
Indian markets closed on a positive note for third consecutive week with nifty ending above 12850 levels while Bank Nifty ended the week above 29200 levels with gains of more than 2% week on week. The gains were supported by Bajaj twins, HDFC Bank along with Kotak Bank. From the derivative data, put writers added hefty open interest at 12800 strike while call writers at 13000 strike holds with maximum open interest of more than 36 lakh shares. The Implied Volatility (IV) of calls closed at 16.43% while that for put options closed at 16.79. The Nifty VIX for the week closed at 19.57%. PCR OI for the week closed at 1.15. From the technical front, secondary oscillators suggest that volatility will continue to grip market in coming sessions as well. On downside, 12800 would act immediate support for nifty below which we can expect further profit booking in index till 12600 levels.
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**The highest call open interest acts as resistance and highest put open interest acts as support.
# Price rise with rise in open interest suggests long buildup | Price fall with rise in open interest suggests short buildup
# Price fall with fall in open interest suggests long unwinding | Price rise with fall in open interest suggests short covering
Turmeric futures (Dec) is expected to decline further towards 5600-5500 levels facing resistance near 5800 levels. In days to come, the supply pressure is likely to increase as the harvesting of the new crop will begin by this week in Maharashtra, Telangana and Andhra Pradesh. There are lots of carry over socks and also a cash crunch situation is been seen with traders and stockists buying hand-to-mouth. With drop in orders from Middle East, the US, Europe as well as Southeast Asia and in domestic market, as the festive season is almost coming to an end; we may not see any bulk buying on the spot markets. Jeera futures (Dec) is likely to trade with a downside bias in the range of 13900- 14300. As per the latest statistics from the Directorate of Agriculture (Gujarat) this season the farmers have sown jeera across 50,496 ha as of 17th November, compared with 19,723 ha in the same corresponding period last year. Secondly, though lower production in Syria and Turkey gave India an advantage in international market over the last two years due to its superior quality, higher production this summer is likely to be a disadvantage for India. FISS has estimated production in Syria at 30,000 tonnes in 2020-21 against 17,000-18,000 tonnes last season, while Turkey's output is seen jumping to 12,000-15,000 tonnes from 5,000-7,000 tonnes in the same period. Dhaniya futures (Dec) may consolidate in the range of 6480-6680 with upside getting capped. Lackluster prices are keeping farmers from bringing in their supplies in the market. The medium varieties are not finding buyers on the domestic front, especially from local spice manufacturers.
Bullion counter continued to struggle in Indian markets for the fifth day in a row amid weak global cues. Investor optimism over COVID-19 vaccine progress had lifted global equity markets to an all-time high. But the risk-on rally has fizzled out amid a surge in virus cases and deadlock in the US over stimulus measures. Encouraging developments relating to COVID-19 vaccines have raised hopes of a more rapid recovery in the global economy, which in result put Gold under pressure. Post the U.S. election, there is confidence in the global economy, and gold's safe-haven appeal has been easing. Secondly, pandemic-related uncertainty is going to be decreasing because we're all hoping for the vaccine in the market soon. Gold traders are now focusing on the next few months with the dark winter amid the pandemic that could impact consumer demand for gold. U.S. Treasury Secretary Steven Mnuchin called for an end to some of the Federal Reserve’s pandemic lending, sparking uncertainty about stimulus programs that have played a key role in reassuring financial markets. If the Fed does start shrinking its assistance program that could be a bit of a headwind for gold again. In a letter, Munichin told Fed Chairman Jerome Powell that $455 billion allocated to Treasury under the CARES Act should be instead available for Congress to reallocate. His comments weighed on equities while helping the dollar halt its week-long slide. Ahead in this week, we may continue to witness huge volatility and gold may trade in the range of 49500 -51000 and Silver may trade in the range of 58200-63100. Whereas on COMEX gold may trade in the range of $1830-$1920 and Silver may trade in the range of $22.70-$26.80.
Lower level buying can be seen in soybean futures (Dec) near 4200-4250 levels, which shall keep the strength in the counter intact. The fundamentals on the demand side are still supportive as Indian meal has found parity for global importers against US and Argentina soymeals. Ultimately it has led to aggressive soybean buying from plants leading to price rise in local prices. Parity for Indian soymeal still exist which will continue plants to maximize on export opportunities. The global oilseed markets are being supported by dry weather in South America and strong demand from China. Recent rains have alleviated some of the weather stress in Brazil and Argentina, tightening global supplies, particularly for soybeans. RM Seed futures (Dec) is facing resistance near 6260 since past two weeks and hence the upside is likely to remain capped. It is reported that the in Rajasthan, mustard sowing has finished 80% of the targeted area, & so far sowing has exceeded 1.50 lakh hectares as compared to last year's 20.04 lakh hectares. CPO futures (Dec) is expected to continue its bull run and retest 935-945, while soy oil futures (Dec) will probably maintain its upside course towards 1085-1095 levels, respectively. The concerns supply tightness in palm oil have elevated after Malaysia's Meteorology Department forecast heavy rains, storms and strong winds across the country to last until the end of December. Secondly, official EIA data showed that US biodiesel production returned to pre-Covid lockdown levels in August, with demand for the feedstock soyoil rising by 8% over the course of the year to date due to the limited availability of alternative oils such as used cooking oil and corn oil.
Crude oil prices are on track for a third consecutive weekly rise, but demand concerns stemming from surging coronavirus cases and renewed lockdowns in several countries capped any further gains. The likelihood of an effective COVID-19 vaccine and hopes that OPEC and its allies would keep production under check has bolstered the oil markets this week. Prices up over 3% so far this week, the slimmest weekly gains in the last three weeks. The persistent rise in COVID-19 cases continues to cast doubts on-demand recovery, Brent spreads in 2021 have narrowed significantly as demand from Asia has been strong and markets remained hopeful that OPEC and its allies could extend their output cuts. Oil prices were also supported by signs of movement on a stimulus deal in Washington. Any stimulus deal was done before the holidays will help keep crude prices stay near the upper boundaries of its recent trading range. Ahead in this week, the crude price may witness huge volatility within the range of 2960-3200, where selling pressure can be seen near the resistance. Natural gas futures traded weaker on larger than expected build in natural gas inventories. There is one storm in the Caribbean that has a zero percent chance of becoming a tropical cyclone during the next 48-hours according to NOAA. The weather is expected to be warmer than normal over the next 6-10 and 8-14 days according to an NOAA forecast. This should continue to weigh on prices. Ahead in this week, Natural gas may trade with a bearish bias as medium-term momentum has turned negative as the fast stochastic generated a crossover sell signal. The counter could face shortterm resistance is seen near 215 and support is seen near 180.
Cotton futures (Dec) is looking bullish and in days to come it has the potential to test 20070-20600. Indian cotton is currently the cheapest in the world and this has triggered new prospects for exporters. Other than the traditional markets such as Bangladesh and China, traders are also eyeing markets like Turkey, Vietnam and Indonesia for exports. Secondly, in major growing regions of Maharashtra extended rains have led to cotton bolls rotting on the plants, rendering a lot of the produce useless. The farmers say the incidence is higher than other years leading to losses in output. So, farmers would prefer to pull out the cotton plant and go for other alternatives that can also ensure better returns. Chana futures (Dec) may continue to consolidate in the range of 5165- 5400 and witness selling pressure with every minor rise. This Rabi season, there has been a spurt in planting of pulses in central Indian States. In Madhya Pradesh, sowing was up by about 8.24 lh as compared to same week last year, while farmers in Uttar Pradesh and Rajasthan planted pulses over an additional 4.26 lh and 3.12 lh respectively. Among other States where the pulses area is higher compared to the corresponding week last Rabi season were Gujarat and Maharashtra. Gram, lentil and fieldpea accounted for the most of the increase in acreage. Guar seed futures (Dec) may decline further towards 3970, while guar gum (Dec) may test 5800 on the lower side. On the spot, these counters are quoting lower in Rajasthan, Haryana and Gujarat. In the present scenario, the weak export demand, gloomy picture of crude oilglobal economy and seeds arrival are key reasons behind price fall.
Base metals may trade in the range with positive bias as more progress on a COVID-19 vaccine, mixed economic data and central banks' commitment towards additional measures may support the industrial metals while surge in global cases of COVID-19 and concerns about the US fiscal stimulus may limit the gains. Copper may trade in the range of 535-560 levels. Smelter treatment and refining charges in China, the world’s largest processor of raw material into refined metal, are at eight-year lows around $50 per tonne (TC) and 5 cents per lb (RC) which reflects lower supply. Unions on strike at Chile’s Candelaria copper mine, owned by Canada’s Lundin Mining Corp, rejected a contract offer from the company, confirming the work stoppage would continue. Zinc may trade in the range of 215-230. Zinc prices are getting support after Vedanta suspended mining at its Gamsberg zinc mine in South Africa following an accident that trapped ten workers. Apile-up of hidden zinc stocks in Spain has helped create shortages in top consumer China and are bolstering price rally. Lead can move in the range of 150-160. WBMS noted that lead market recorded a deficit of 32 kt in January to September 2020 which follows a deficit of 278 kt recorded in the whole of 2019. Nickel may test 1240 level by taking support near 1160. Aluminum may move towards 170 level due to declining stockpiles of the metal at exchange-monitored warehouses. Current inventories in China are 25% lower than the same period last year and are well below the five-year average. The large amounts of the surplus are hidden in off-exchange warehouses in financing deals also supporting the prices.
LEAD MCX (NOV) contract closed at Rs. 155.45 on 19th Nov’2020. The contract made its high of Rs. 156.25 on 20th Nov’2020 and a low of Rs. 142.65 on 05th Oct’2020. The 18- day Exponential Moving Average of the commodity is currently at Rs. 152.42. On the daily chart, the commodity has Relative Strength Index (14-day) value of 76.695.
One can buy near Rs. 154 for a target of Rs. 165 with the stop loss of Rs. 149.
NICKEL MCX (NOV) contract closed at Rs. 1190.80 on 19th Nov’2020. The contract made its high of Rs. 1213.50 on 16th Nov’2020 and a low of Rs. 1043.40 on 01st Oct’2020. The 18-day Exponential Moving Average of the commodity is currently at Rs. 1180.19. On the daily chart, the commodity has Relative Strength Index (14-day) value of 59.952.
One can buy near Rs. 1184 for a target of Rs. 1230 with the stop loss of Rs. 1160.
JEERANCDEX (DEC) contract was closed at Rs. 14090.00 on 19th Nov’2020. The contract made its high of Rs. 14825.00 on 02nd Nov’2020 and a low of Rs. 13770.00 on 13th Oct’2020. The 18-day Exponential Moving Average of the commodity is currently at Rs. 14258.64. On the daily chart, the commodity has Relative Strength Index (14-day) value of 47.516.
One can buy near Rs. 14100 for a target of Rs. 14600 with the stop loss of Rs 13850.
CRB saw marginal upside on vaccine optimism amid fall in dollar index. The dollar was down despite optimism over the latest positive news on the COVID-19 vaccine front. This is as more U.S. states introduce restrictive measures to curb the virus and as worries about a smooth transfer of presidential power in the U.S. in January mount up. The Pfizer news saw the dollar rise against safe-haven currencies such as the yen and Swiss franc. However, the logistics of producing and distributing the vaccine, distributing the vaccine, which suggests it is not likely to be available anytime soon, curbed the initial enthusiasm and subdued market reactions. Oil rose to its highest since early September following further progress on a coronavirus vaccine, but further gains was limited as renewed restrictions from the U.S. to Europe due to the pandemic offset a modest recovery in demand in Asia. Oil prices fell slightly on Wednesday morning after the Energy Information Administration reported a moderate 800,000-barrel increase in crude oil inventories for the week to November 13. Natural gas prices broke down as warmer than normal weather is forecast to cover most of the United States for the next 2- weeks. The EIA forecasts that U.S. dry natural gas production will average 91.0 Bcf per day in 2020, down from an average of 93.1 Bcf per day in 2019. Base metals saw fresh highs but some of them saw profit booking from higher levels. Copper prices set fresh multiyear highs over worries about possible supply disruptions following unrest in Peru and optimism about the launch of a Chinese futures contract open to international investors. Bullion counter saw selling pressure continuously in second week. Prices slipped on positive news on Covid vaccines. Silver followed the foot steps of gold. With the economic slump, industrial demand for silver – used in electrics, electronics, solar energy and many other technologies – will fall 9% in 2020 as per an estimate. But 2020's surge in silver ETF investing will reverse the metal's worst market surplus in 3 years. Aluminum prices are hovering around 18-month highs as investors bet strong Chinese buying and improving industrial demand will see the metal catch up with its base-metal peers.
Oil seeds and edible oil futures were rock solid. The higher global prices of soybean and soy meal have made Indian soy meal competitive in the global market. Soybean Processors Association of India (SOPA), has projected export of soy meal for Oil Year 2020-2021 at 14 lakh tons as compared to 8.60 lakh tons during oil year 2019-2020. Cotton prices noticed stability at higher side. The Cotton Corporation of India (CCI) has commenced procurement for the 2020-21 season and is ready to procure around 100 lakh bales. Most importantly, the much awaited and long delayed export agreement between Cotton Corp of India and Bangladesh government is now in its final stage and may materialise by December, eyeing export of around 1.5 mln cotton bales.
Aluminum is the second most important metal after steel due to widely use in the automotive, construction, aerospace industries and household appliances and utensils. So investors like aluminum as it is traded, the most, on the exchanges across the world.
Aluminum prices rose sharply on nearly two years high recently due to declining stockpiles of metal at LME-monitored warehouses. LME prices for the metal used in the aerospace industry and canned goods have risen by about a third since March and prices on the Shanghai Futures Exchange are at three-year highs. In LME and MCX, the aluminium prices rose more than 10% & 18% respectively while in SHFE, the prices have risen 9% percent in year to date. The recovery in demand comes after 18 per cent fall in aluminium prices on LME to $1,450 per tonne between January and May amid Covid pandemic impact. Prices have been lifted not only by optimism over a vaccine boosting a recovery in the global economy but strong consumption of aluminium in China as the country unleashed heavy stimulus spending. Market participants are continuing to ignore the high production and resulting surpluses and are pushing the aluminium price ever higher with their financial transactions.
Though concern on second wave of Covid hitting the European countries remains a concern, the demands for aluminum remain robust across sector. Aluminium prices are expected to continue to strong due to supply crunch, alumina shortage, a lower inventory, rising crude prices and continued trade dispute between US & China. But profit booking at higher level cannot be ruled out due to a large glut built up in warehouses and higher production in China.
Indian rupee managed to close in green week ended on Thursday driven by broad dollar sell-off. Earlier strong RBI intervention kept rupee lower for few sessions. Apparently vaccines and virus driving the risk sentiment in dollar-rupee pair. Although higher domestic inflation and frequent changes in risk sentiment will keep rupee skewed to on the modest negative side for next week. The euro remains in a tight range within striking distance of key 89.00 resistance against rupee. There are no expected events in Europe in next few days that would trigger a move above that level. Although dollar move will broadly guide euro pairs in coming days. Meanwhile the UK pound rallied as hopes grow of a Brexit deal as early as next few days but again failed to sustain above 1.33 against US Dollar. Few media reports are flashing that EU leaders demanded for no-deal BREXIT plans which capped the pound rally at the moment. Next few days will be crucial and we may expect some sort of deal may pass through which may keep GBPINR to continue its uptrend with a possible to attempt to surpass 99.00 over the coming sessions. Next week we have light economic calendar and broadly risk sentiment due to lockdown restrictions in developed world will guide major forex pairs.
USD/INR (DEC) contract closed at 74.5125 on 19-Nov-20. The contract made its high of 74.9175 on 17-Nov-20 and a low of 74.3575 on 18-Nov-20 (Weekly Basis). The 21-day Exponential Moving Average of the USD/INR is currently at 74.29.
On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 50.02. One can sell at 74.50 for the target of 73.75 with the stop loss of 75.00.
GBP/INR (DEC) contract closed at 98.5650 on 19-Nov-20. The contract made its high of 99.0700 on 18-Nov-20 and a low of 98.3675 on 19-Nov-20 (Weekly Basis). The 21-day Exponential Moving Average of the GBP/INR is currently at 97.5549.
On the daily chart, GBP/INR has Relative Strength Index (14-day) value of 60.98. One can buy at 98.40 for a target of 99.40 with the stop loss of 97.90.
| 20th NOV | U.S. corona virus wildfire hitting jobs as broad recovery trudges on |
| 20th NOV | UK consumer morale sank to six-month low in November |
| 20th NOV | Japan's consumer prices fell at fastest pace in decade, reviving deflation fears |
| 18th NOV | Euro zone inflation confirmed negative in October on weak energy |
| 18th NOV | U.S. housing starts blow past expectations; COVID-19 poses risk |
| 17th NOV | EU confident of solving blockage of budget and recovery fund |
| 17th NOV | U.S. being left behind after Asia forms world's biggest trade bloc - U.S. Chamber |
| 17th NOV | Biden says U.S., allies need to set global trade rules to counter China's influence |
| 16th NOV | Europe's spending surge will not make debt unsustainable - ECB |
EUR/INR (DEC) contract closed at 88.1425 on 19-Nov-20. The contract made its high of 88.8050 on 17-Nov-20 and a low of 88.1150 on 19-Nov-20 (Weekly Basis). The 21-day Exponential Moving Average of the EUR/INR is currently at 87.74.
On the daily chart, EUR/INR has Relative Strength Index (14-day) value of 52.86. One can buy at 87.90 for a target of 88.90 with the stop loss of 87.40.
JPY/INR (DEC) contract closed at 71.5200 on 19-Nov-20. The contract made its high of 71.8175 on 19-Nov-20 and a low of 71.0650 on 14-Nov-20 (Weekly Basis). The 21-day Exponential Moving Average of the JPY/INR is currently at 70.9966.
On the daily chart, JPY/INR has Relative Strength Index (14-day) value of 56.48. One can sell at 71.75 for a target of 70.75 with the stop loss of 72.25.
China's Fosun Pharma-backed Gland Pharma shares started off trade with a 14 premium compared to the issue price on November 20. Gland Pharma raised Rs 6,480 crore via public issue which consisted of a fresh issue of Rs 1,250 crore and an offer for sale of Rs 5,230 crore by the promoter and selling shareholders. The company will use net fresh issue funds for funding working capital requirements, capital expenditure requirements and general corporate purposes. Fosun Singapore and Shanghai Fosun Pharma are the promoters of the company. Their shareholding reduced to 58 percent in the company from 74 percent post issue. Headquartered in Hyderabad, Gland Pharma is one of the fastest-growing generic injectables-focused companies, developing products primarily for the US. The company sells products mainly under a business-to-business (B2B) model in over 60 countries. Gland Pharma has a consistent regulatory compliance track record and all facilities are approved by the USFDA, with no warning letters since the inception of each facility. In the last financial years FY18-FY20, its revenue grew at a CAGR of 27 percent and PAT grew by 55 percent CAGR, having a minimal debt with debt/equity ratio at 0.01 in FY20. In the quarter ended June 2020, Gland Pharma earned 67 percent of the revenue from the United States, 15 percent from India and rest from other countries.
Sequoia Capital-backed Indigo Paints has filed preliminary papers with markets regulator SEBI to raise about Rs 1,000 crore through an initial public offering. The IPO comprises fresh issuance of stocks aggregating to Rs 300 crore and an offer-for-sale of up to 58,40,000 equity shares by private equity firm Sequoia Capital, through its two funds SCI Investments IV and SCI Investments V, and promoter, Hemant Jalan, according to the draft red herring prospectus (DRHP). Net proceeds from the issue would be used for expansion of the existing manufacturing facility at Pudukkottai in Tamil Nadu, for purchasing of tinting machines and gyro shakers and repayment/prepayment of borrowings. According to market sources, the initial public offering (IPO) is expected to fetch Rs 1,000 crore. Kotak Mahindra Capital Company, Edelweiss Financial Services and ICICI Securities are the book running lead managers to the issue. The Pune-based company manufactures a range of decorative paints and has an extensive distribution network across the country. As of September 30, 2020, the company has three manufacturing facilities located in Rajasthan, Kerala and Tamil Nadu.
Antony Waste Handling Cell Ltd has received capital markets regulator Sebi's go ahead to float an initial public offer. The initial public offer (IPO) comprises fresh issuance of shares worth Rs 98.5 crore and an offer for sale of 99,27,175 equity shares by existing shareholders, according to the draft red herring prospectus. Tonbridge (Mauritius) Ltd, Leeds (Mauritius) Ltd, Cambridge (Mauritius) Ltd, and Guildford (Mauritius) Ltd will be offering shares through the offer for sale. Antony Waste Handling Cell, which filed its preliminary papers for IPO in September, obtained Sebi's observation on November 13, an update with the regulator showed. Sebi's observation is very necessary for any company to launch public issues like initial public offer, follow-on public offer and rights issue. Antony Waste Handling Cell is a leading player in solid waste management services in the country. Proceeds of the issue will be utilised towards reduction of aggregate outstanding borrowings of the company on a consolidated basis and general corporate purpose, among others. Equirus Capital and IIFL Securities are the book running lead managers to the issue. Earlier, the company had withdrawn its IPO in March following tepid investor response and extremely weak markets.
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DSP Investment Managers Private Limited announced the launch of DSP Value Fund, an open ended equity scheme following a value investment strategy. The scheme will invest up to 35% of its portfolio in global equities, a press release from the fund house said. The NFO will open on November 20 and will close for subscription on December 4.The scheme will be benchmarked against Nifty 500 index and will allocate 65% in Indian equities and up to 35% in global equities. The international exposure is designed to provide an edge of diversification and a potential source of alpha generation to investors, the fund house said. The scheme will also invest up to 35% in debt & money market instruments and keep in cash or arbitrage whenever enough investment opportunities meeting the valuations criteria are not available. DSP Value Fund aims to generate better risk-adjusted returns with lower volatility across cycles, the fund house said in a communication. Like other value funds, the scheme will offer diversification from expensive growth companies and focus on investing in companies that are reasonably priced, based on fundamental characteristics. The fund house said that valuations are reckoned considering fundamental factors such as price to book ratios, returns on equity and long term sectoral trends. The portfolio is selected from the remaining companies and assigned weights according to internal risk concentration guidelines.
Franklin Templeton Mutual Fund on Wednesday said its six shut schemes have received Rs 941 crore from maturities, prepayments and coupon payments in a fortnight. Franklin Templeton Mutual Fund shut six debt mutual fund schemes on April 23, citing redemption pressure and lack of liquidity in the bond market. The six schemes received Rs 941 crore from maturities, prepayments and coupon payments between October 30 and November 13, the fund house said in a statement. This includes Rs 814 crore received as prepayments and takes the total cash flows received till date since April 24 to Rs 9,682 crore, it added. Individually, Franklin India Ultra Short Bond Fund, Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund and Franklin India Credit Risk Fund have 43%, 27%, 26% and 8% of their respective assets under management (AUM) in cash. Franklin Templeton MF said that cash available stands at Rs 5,952 crore as of November 13 for the four cash positive schemes, subject to fund running expenses. The schemes -- Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund, and Franklin India Income Opportunities Fund -- together had an estimated Rs 25,000 crore as AUM.
The mutual fund industry has added over 4 lakh investor accounts in October, taking the total tally to 9.37 crore, primarily on account of contribution from debt schemes. Market experts said the addition of folios suggests that investors were undeterred by the market volatility. Besides, it indicates their understanding of the market risks associated with the mutual fund schemes, they added. According to data from the Association of Mutual Funds in India (Amfi), the number of folios with 45 fund houses rose by 4.11 lakh to 9,37,18,991 at the end of last month from 9,33,07,480 at September-end. The sector added 7.37 lakh investors account in September, 4.25 lakh in August, 5.6 lakh in July, 5 lakh in June, 6.13 lakh in May and 6.82 lakh in April. Of the total new folios last month, more than 2 lakh were added in debt funds.
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