In the week gone by, by, global stock markets remained volatile amid renewed fears over banking crisis in US and worries over global economic recovery. The European Central Bank raised rates on Thursday and signaled the need for more tightening a day after the U.S. Federal Reserve also raised rates. The US Federal Reserve reinforced its fight against high inflation by raising its key interest rate by a quarter percentage point to the highest level in 16 years. But the Fed also signaled that it may now pause the streak of 10 rate hikes that have made borrowing for consumers and businesses steadily more expensive. The Fed removed a previous sentence that had said some additional rate hikes might be needed. It replaced it with language that said it will consider a range of factors in determining the extent to which future hikes might be needed. Global markets indexes were also under pressure from another rout in U.S. bank shares, which have reeled from the collapse of a third major regional bank over the weekend. Even first quarter GDP data signaled a slowing of the US economy and increased risk of recession. After declining from January to February, real (inflation-adjusted) consumer spending was unchanged in March. This was despite an increase in real disposable personal income. The economies of the European Union (EU) and the smaller 20-member Eurozone both grew in the first quarter of 2023, but only modestly. On the Chinese market front, US investor interest in Chinese stocks has cooled significantly after hitting a record late last year, as political tensions between the two countries grow.
Back at home, domestic markets hit multi-month highs on Thursday led by FPI buying in financial and commodity stocks. Actually, renewed buying by foreign institutional investors has resulted in a strong momentum in the domestic market. Some strong set of March quarter numbers reported by India Inc. also helped the market move upwards. Banks and financial services stocks were in the limelight but FMCG names saw some selling pressure. Going forward, earnings will keep the overall action in the market stock-specific. With India's growth indicators showing good signs of revival and crude oil prices staying lower, it is expected that market will continue to remain bullish.
On the commodity market front, Commodities reacted to weaker economic development and data; and fell continuously for third week; CRB closed the week below 285 levels. Fed signaled that it may pause further increases amid weaker economic development. It benefited bullion counter on safe haven buying whereas commodities linked to economic performance nosedived. Oil markets tumbled more than 10% after the Federal Reserve announced a tenth straight post-pandemic rate hike without any clear indication that it would halt further increases from June. A pause in future rate hikes and a potential U.S. recession present a bullish case for gold, as investors seek safe haven in the yellow metal and thus expect further rally. Gold and silver can trade in the range of 60000-63000 and 75000-80000 respectively. Westpac Consumer Confidence Index of Australia, Inflation rate of Mexico and China, Core Inflation Rate, PPI, Michigan Consumer Sentiments Prel and Inflation Rate of US, BoE Interest Rate Decision, GDP of UK, New Yuan Loans of China are few data, which will give significant direction to the commodities prices.
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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DISCLAIMER: This report is for informational purpose only and contains information, opinion, material obtained from reliable sources and every effort has been made to avoid errors and omissions and is not to be construed as an advice or an offer to act on views expressed therein or an offer to buy and/or sell any securities or related financial instruments, SMC, its employees and its group companies shall not be responsible and/or liable to anyone for any direct or consequential use of the contents thereof. Reproduction of the contents of this report in any form or by any means without prior written permission of the SMC is prohibited. Please note that we and our affiliates, officers, directors and employees, including person involved in the preparation or issuance of this material may; (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company (ies) mentioned herein or (b) may trade in this securities in ways different from those discussed in this report or (c) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instrument of the company (ies) discussed herein or may perform or seek to perform investment banking services for such Company (ies) or act as advisor or lender / borrower to such company (ies) or have other potential conflict of interest with respect of any recommendation and related information and opinions, All disputes shall be subject to the exclusive jurisdiction or Delhi High Court.
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 Company’s net profit has been consistently growing for the past eight quarters and for the current quarter (Q3FY23), it has grown by 56% over last year and 67% for the 9-month period and sequentially by 16%, and the trend will continue to improve on account of increased Pre-provision Operating Profit (PPOP) and lower credit costs. The business growth of the bank is as per the industry and every segment is showing good growth. Thus, it is expected that the stock will see a price target of Rs.114 in 8 to 10 months’ time frame on a current P/BVx of 0.96x and FY24 BVPS of Rs.118.73.
The company is witnessing continuous growth in its urban business and gradual improvement in rural demand. Premiumisation of ADHO, extension of almond drops portfolio beyond hair oils through launch of products in Hair care & Skin care categories, expansion of hair oil Portfolio, Coconut and Amla Portfolios and further launches planned in FY24 indicates future growth visibility. Thus, it is expected that the stock will see a price target of Rs.207 in 8 to 10 months’ time frame on one year
The stock closed at Rs 2066.40 on 05th May, 2023. It made a 52- week low of Rs 1306.70 on 30th June, 2022 and a 52-week high of Rs.2358.35 on 01st December, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 1956.
After testing its 52 week high of 1839.50 in month of December 2022, stock witnessed a correction phase, over the months, and seen sliding back towards 1800 levels. The correction in prices was observed with formation of lower top pattern on daily charts. However stock managed to take support around 1800 levels and once again caught a momentum above its 200 days exponential moving average on daily charts with formation of rounding bottom pattern. On short term charts prices can be seen recovering with formation of higher bottom formation, while a fresh breakout has been observed above “Cup & Handle” pattern visible on daily interval. Therefore, one can buy the stock in the range of 2050-2065 levels for the upside target of 2280-2300 levels with SL below 1900 levels.
The stock closed at Rs 1214.95 on 09th March, 2023. It made a 52-week low at Rs 589.05 on 12th May, 2022 and a 52-week high of Rs.1234.95 on 05th May, 2023. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 1014.
Stock has been consolidating in a broader range of 970-1170 since last seven months as prices can be seen maintaining well above its 200 days exponential moving average on daily interval. At current juncture, a fresh breakout has been observed after a prolong consolidation phase with rise in average volumes. Alongside, positive divergences on secondary oscillators suggest for next upswing into prices as bullish momentum is expected to carry in upcoming sessions as well. Therefore, one can buy the stock in the range of 1200-1215 levels for the upside target of 1400-1410 levels with SL below 1075 levels.
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 remained highly volatile in the week gone by, as most of the gains witnessed during the week got surrendered in Friday's session, as intense selling pressure was observed on the back of profit booking. Banking index however, ended the week with loss of over 1% while Nifty closed the week near the unchanged line. From the derivative front, call writing was once again observed at 18100 & 18200 strike while marginal open interest addition was observed in 18000 put strike. The Implied volatility (IV) of calls closed at 9.72% while that for put options closed at 10.43%. The Nifty VIX for the week closed at 11.73%. PCR OI for the week closed at 1.32. Technically, both the indices have shown resilient performance during the past weeks & now at the current juncture they facing strong hurdles on higher side. For Nifty, 18200-18250 zone would act as an immediate hurdle while 17950-17900 zone would provide support on any downside. We expect markets to remain volatile in upcoming week as well, with bias likely to remain in favour of Bulls. We advise traders to use any dip to create fresh longs as strong uptrend is expected in markets for upcoming weeks as well.
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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 June futures are likely to trade higher on weaker production prospects for upcoming season as concerns over rising possibilities of El Nino during July- Aug’23 mounted up after recent release on weather forecast on Monsoon. Turmeric production is already down by 7%-10% in year 2022-23 and likely to down further in upcoming season due to growing worries over weather phenomenon. Acreages under turmeric may shift to other kharif crops that will lead to fall in production. Apart from that, export enquires have improved especially from Bangladesh, Morocco and Iran that will also support firmness in prices. India exported about 14.8 thousand tonnes of turmeric in Feb’23 against the 10.3 thousand tonnes of previous year. Heavy stocks will cap the excessive gains. Turmeric June contract is expected to trade in the range of 7200-8000 levels.
Jeera NCDEX June futures are likely to remain volatile as some kind of profit booking is likely to be seen as marginal traders are avoiding bulk buying in anticipation of rise in seasonal supply of jeera in Gujarat and Rajasthan. Major trend is still bullish due to tighter carryover stocks and below normal arrivals in the market that will lure millers and stockists to buy at dip. Quality of the new crop is also questionable after recent rainfall in Rajasthan and Gujarat. Jeera prices have turned double in last one year and likely to move up further on prevailing supply deficit concerns. Jeera June futures are expected to trade in range of 42000-51000.
Dhaniya NCDEX June prices are likely to trade sideways to higher duce to emerging demand at spot market. Report of yield losses and crop damage in Rajasthan due to recent unseasonal rainfall has triggered short covering in the market. Yield losses in Rajasthan and Gujarat due to unseasonal rainfall may lead to downward revision in production. Gains in dhaniya is looking temporary as overall dhnaiya production is estimated to increase by 81% Y-o-Y to 376 thousand tonnes in year Gujarat during year 2022-23. Dhaniya NCDEX June futures are likely to trade in range of 6500-7300 levels.
It was a historical week in which gold made a record high above $2085 in Comex and 61899 in MCX on safe haven buying and on indication of pause in further interest rate hike by Fed. The Fed’s recent signals of a likely pause in its rate hike tightening campaign have boosted investor confidence in gold. As traders remain data-dependent, they are actively seeking weak data from the U.S. to justify potential rate cuts. However, Fed Chair Jerome Powell has pushed back on market expectations of rate cuts this year, highlighting that the central bank would watch incoming data to determine future monetary policy decisions. Despite Powell’s comments, mounting risks to the U.S. economy have continued to support strong investor demand into gold as they sought haven asset. The current global economic climate has been challenging, with inflation rising and geopolitical tensions escalating. Investors closely watching the Fed’s interest rate policy, as any indications of a rate hike could have a significant impact on the prices of gold. However, with mounting concerns over the U.S. economy and the potential for weak data to justify rate cuts, the outlook for gold remains positive. Gold silver ratio reads below 80 which mean silver is undervalued relative to Gold. Most of the time, the Gold/Silver Ratio has been in a range between 45 and 85. On COMEX, Gold prices are trading well above the psychological level of $2040, present structure looks positive and prices may approach $2100. Silver may trade in the range of $24.660-$27.900. Ahead in the week, gold prices on MCX may continue to witness buying where any dip near support considered as buying opportunity and the possible trading range would be 59000-63000 levels. Silver may trade in the range of 73000-81000 levels.
Crude oil prices posted third straight week of losses after markets witnessed dramatic drops on fears of weakening U.S. economy and slowing Chinese demand. Both the benchmarks were declined where WTI down by over 8% and Brent down by 10%. Renewed U.S. banking fallout fears of a wider contagion and amplifying recession talks, while a surprise contraction in China’s manufacturing activities pushed back against reopening optimism on oil demand outlook. In China, factory activity unexpectedly contracted in April as orders fell and poor domestic demand dragged on the sprawling manufacturing sector. Service activity in China grew through April, though the rate of this expansion has slowed. However expectations of potential supply cuts at the next OPEC+ meeting in June have provided some support to prices. Investors now broadly expect the Fed to pause rate hikes at its June meeting, after the U.S. central bank dropped language that it "anticipates" further rate increases from its policy statement. Ahead in the week, crude oil prices may witness some bounce but main trend is still bearish and it is expected that it may trade in the range of 5400-6000 levels. Natural gas prices were under pressure throughout the week amid milder weather conditions in the parts of U.S., which has reduced demand for natural gas for hearting purposes. Additionally inventories of natural gas remain at historically high levels, which have put downward pressure on prices. Natural gas prices has been range-bound, bouncing between the $2.80-$3.00 break on either side will define the next trend in the counter. Ahead in the week, on MCX prices may continue to trade in the range of 160-200 levels.
Base metals may trade with bearish bias as the growing fear of global recession, tepid demand in top consumer China and improving supply may pressure the market. However, prices may get support by a softer dollar after the U.S. Federal Reserve opened the door to a pause in its aggressive tightening cycle. China's factory activity unexpectedly contracted in April as orders fell and poor domestic demand dragged on the sprawling manufacturing sector, a major consumer of metals. The market has become increasingly frustrated with the slow rebound in economic activity in China. The U.S. economy is likely to slow down in the second half of this year or even fall into recession and the impact of bank financial risks persists. Copper may trade in the range of 725-755 levels. Weak global demand and high finished goods inventories, together with improving copper supply may weigh on the counter. However, the Chilean Copper Commission on Thursday raised its projection for average copper prices in 2023 to $3.90 per pound, citing a weaker U.S. dollar in global markets, perceived supply risks and an expected 5% economic growth in China. Zinc can trade in range of 225-242 levels. Lead can move in the range of 176-186 levels. Global demand for refined lead metal will exceed supply by 20,000 tonnes in 2023, the ILZSG said. Aluminum may trade in the range of 195-210 levels. Steel long (May) is likely to trade in the range of 43500-47000 levels on NCDEX. Indian steel prices dropped 2-4 per cent month-on-month in May following softened global cues, stressed demand due to increasing imports and slower than expected export offers from key markets like UAE and Vietnam.
Cotton prices are likely to trade mixed to higher due to shrinking supplies at major trading centers. Due to weaker production, arrivals have dropped at major trading centers keeping market sentiments up for cotton. Cotton production has dropped near to 303 lakh bales in year 2022-23 compared to 307 lakh bales of previous year as per Cotton Association of India. However, gains are likely to be limited as bleak economic outlook and sluggish export demand is likely to weigh on the market sentiments. Cotton export is likely to drop 25 lakh bales in year 2022-23 as compared to 43 lakh bales of previous year. MCX cotton June Cotton prices are likely to trade in range of 62500-66000 levels wherein Kapas Apr’24 futures are likely to trade in range of 1580-1670 levels.
Cotton seed oil cake NCDEX June futures are likely to trade on positive bias during the week due to reduced supplies in the market. Bleak production of cotton and lower arrivals has affected the overall production of cotton seed oil cake adversely. Cotton seed oil cake prices are likely to trade in range of 2650- 2930 levels.
Guar seed June futures are likely to trade sideways to higher on rising possibilities of drier spell of monsoon in year 2023. The chance of an El Niño weather phenomenon developing in the coming months has risen, the United Nations has said, warning that it could fuel higher global temperatures and possibly new heat records. About 60% of the time, there is a probability of drought in India during an El Niño year, and while the chances of normal rain are rare at 10%, the prospect of below-normal rain is 30%. Drier monsoon is likely to directly affect the sowing progress and yield of guar seed in year 2023. However, market is running with huge stocks of guar seed and bleak demand prospects of gum in wake of weakness in crude oil prices is likely to cap the excessive gains. Guar seed prices will trade in range of 5400-6000/6200 in near term wherein Guar gum prices are likely to trade in range of 10500-12500 levels.
Mentha oil futures are trading mixed to tracking sowing number that are expected to improve with cooling temperature in northern India. Recent spell of rainfall has proved favorable for sowing activities that will put pressure on prices. Increased menthol imports also weighed on market sentiments. Mentha oil prices are likely to trade in range of 940-1005.
Castor seed prices are expected to trade sideways to higher as some recovery is likely to be seen in prices due to growing worries over weather in July-Aug, the peak sowing period of castor. Short covering is expected in May contract wherein fresh long is being build up in June contract due to weather concerns. However, gains are likely to be limited as higher production and limited export demand of castor oil will cap the major upside movement. Overall Production is estimated at 18.82 lakh tonnes in year 2023 higher by 16% Y-o-Y. Castor seed June prices are likely to hold the support of 5900 will face 6300 as resistance in near term.
It closed at Rs. 5689.00 on 04th May 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 6142.73. On the daily chart, the commodity has Relative Strength Index (14-day) value of 24.247. Based on both indicators, it is giving a buy signal.
One can buy near Rs. 5640 for a target of Rs. 6000 with the stop loss of 5480.
It closed at Rs. 738.55 on 04th May 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 751.62. On the daily chart, the commodity has Relative Strength Index (14-day) value of 32.657. Based on both indicators, it is giving a sell signal.
One can sell near Rs. 745 for a target of Rs. 730 with the stop loss of 753.
It closed at Rs. 6774.00 on 04th May 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 6692.76. On the daily chart, the commodity has Relative Strength Index (14-day) value of 57.241. Based on both indicators, it is giving a sell signal.
One can sell near Rs. 6850 for a target of Rs. 6450 with the stop loss of 7050.
NOTE: *M.High / M.Low stands for Monthly High / Monthly Low
Commodities reacted to weaker economic development & data and fell continuously for third week; CRB closed the week below 285 level. Market participants anticipated 25basis points already. Fed signaled it may pause further increases. The pause would give officials time to assess the fallout from recent bank failures, wait on the resolution of a political standoff over the U.S. debt ceiling, and monitor the course of inflation. Powell also warned that U.S. economic growth was cooling rapidly, ramping up concerns over a potential recession this year. This warning dented sentiment towards risk-driven assets. All base metals prices got pressurized on dovish statement by Powell for economy. China is also giving weaker indication. The Caixin Manufacturing Purchasing Managers’ Index (PMI) fell to 49.5 in April, missing expectations for a reading of 50.3. The data was also weaker than March’s reading of 50.0, with a reading below 50 signaling contraction. Sluggish demand was the biggest factor behind the weak data, with local manufacturers winding down output amid high inventory levels and weak buying. Aluminium prices have shed 12% since touching a peak in January as output increased and inventories rose amid tepid demand for the metal used in the auto, packaging and construction sectors. In energy counter both natural gas and crude oil prices dipped further. Oil markets tumbled more than 10% after the Federal Reserve announced a tenth straight postpandemic rate hike without any clear indication that it would halt further increases from June. It was a strong week for bullion, especially for gold which moved in unchartered territory. It made a record high of $2085.4 in comex and 61898 in MCX. It benefited from increased safe haven demand as Fed Chair Jerome Powell warned that economic growth was cooling.
In agri, it was a strong week for spices. Turmeric prices rose due to emerging export demand. Export enquires have improved as Indian prices turned competitive after continuous fall. India exported about 14.8 thousand tonnes of turmeric in Feb’23 against the 10.3 thousand tonnes of previous year. Jeera made all time high of 46320 level due to tighter carryover stocks and below normal arrivals in the market. Report of yield losses and crop damage in Rajasthan due to recent unseasonal rainfall has triggered short covering in Dhaniya in both spot and futures market. Buying returned in guar counter after many week of fall. Guar counter showed strength in prices due to rising possibilities of drier spell of monsoon in year 2023. The chance of an El Niño weather phenomenon developing in the coming months has risen.
Exports play an important role in the modern economies as it influences the level of economic growth, employment and the balance of payments of any country. The rapid growth of exports leads to a more competitive, technologically mature, productive and rapidly growing economy. Amidst the gloominess and uncertainty about global growth over the Ukraine war, on export front India can cheer about as the country’s Agricultural exports have touched the $43.37 billion mark till December in FY 23, helped by opening up of the global economy and high commodity prices favoring exporters. During the financial year (Apr. 2022–January 2023), the agricultural exports have amounted to USD 43.37 billion, registering an increase of 6.04% over the exports of USD 40.90 billion during the corresponding period of the previous financial year i.e. April 2021 to January 2022. India has also emerged as a net exporter of farm products, whose exports touched an all-time high of US$ 50.2 billion in 2021-22, according to official data.
Exports were boosted by an increased access to markets in the US, European Union and the United Arab Emirates, and targeted efforts by the government to expand the global reach of processed food from India. The war in Ukraine, shipping disruptions and rising oil and fertilizer prices bumped up grain prices, which seemed to have raised rates of premium basmati rice, despite India banning wheat exports in May last year followed by restrictions on rice exports.
Overseas shipments were boosted by basmati rice, which registered a 16% increase in value terms, a surprising 92% jump in exports of pulses and 25% in fresh vegetables, mainly to demand from the US, UAE and China, latest data from the Agricultural and Processed Food Products Export Development Authority show.
Export of spices like ginger, pepper, cinnamon, cardamom, turmeric and saffron, which have therapeutic qualities, has also grown substantially. Meanwhile, the Marine Products Export Development Authority (MPEDA) said that shrimp and prawn exports have already reached 88 percent of the total export value of last year.
Country to produce record food grains, pulses and oilseeds at 3235, 278 and 400 lakh tonnes, respectively during 2022-23.
How did it happen?
The Government of India's consistent and concerted Endeavour's to steer in reforms for boosting agricultural exports have been highly fruitful. India has been able to step in through Indian missions abroad and interacted through virtual buyer-seller meets, removed many bottlenecks, coordinated with port/customs/State/district authorities, etc. to meet the increased global demand. All these efforts led to India emerging as a global supplier of food and other essential agricultural products.
In order to provide direct export market linkage to farmers/FPOs and to encourage export-oriented production, 46 unique product-district clusters have been notified for export promotion. For the first time, the government has reached out directly at cluster and farm levels to give farmers a stake in export of their produce.
Rise in agricultural exports improves realizations for farmers and has a positive impact on their income. In order to ensure that the farmers benefit from exports, the Government has launched a Farmer Connect Portal for providing a platform for Farmer Producer Organizations/Companies (FPOs/FPCs) and cooperatives to directly interact with exporters.
This week the Indian currency largely stayed in narrow range between 81.60 to 81.90 tracking the development came from the Fed and ECB monetary policy meetings. Accordingly in its latest move, the Federal Reserve has raised its benchmark interest rate by a quarter of a percentage point, marking its tenth consecutive increase since early 2022. While this action was widely expected, market participants have been bracing for several cuts by the end of the year as the Fed seeks to address the complex challenges of inflation and fallout in the financial sector.
Notably, the Fed's latest statement removed previous guidance that had suggested additional monetary tightening may be necessary, and Chair Jerome Powell emphasized that any future rate changes would be heavily dependent on economic developments. Although the central bank remains optimistic that inflation will eventually return to its target, Powell acknowledged that this process may take longer than expected. Apparently we are not so bearish in the US dollar against Rupee and USDINR may stay in a range between 81.50 to 82.00 next week while eurusd and gbpusd likely to retreat from its latest high to fall towards 1.09 and 1.2450 respectively in coming days while EURINR and GBPINR look stretch at the higher levels.
USDINR (MAY)is trading below its major Exponential Moving Average indicating downwards trends for short term view. The Pair has major support placed around 81.40 levels while on higher side resistance is seen around 82.30 levels. The 21-day Exponential Moving Average of the USD/INR is currently around 82.06 Levels. On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 39.38.
One can sell near 82.00 for the target of 81.40 with the stop loss of 82.30.
GBPINR (MAY)is trading above its major Exponential Moving Average indicating upwards trends for short term view. The pair has major support placed around 101.94 levels while on higher side resistance is seen around 103.75 levels. The 21-day Exponential Moving Average of the GBP/INR is currently around 101.94. On the daily chart, the GBP/INR has Relative Strength Index (14-day) value of 65.20.
One can buy near 102.75 for the target of 103.75 with the stop loss of 102.25.
EURINR (MAY) is trading above its major Exponential Moving Average indicating upwards trends for short term view. The pair has major support placed around 89.90 levels while on higher side resistance is seen around 91.40 levels. The 21-day Exponential Moving Average of the EUR/INR is currently around 89.93. On the daily chart, the EUR/INR has Relative Strength Index (14-day) value of 63.43.
One can buy near 90.40 for the target of 91.40 with the stop loss of 89.90.
JPYINR (MAY) is trading between its major Exponential Moving Average indicating sideways trends for short term view. The pair has major support placed around 60.00 levels while on higher side resistance is seen around 61.90 levels. The 21-day Exponential Moving Average of the JPY/INR is currently around 61.33. On the daily chart, the JPY/INR has Relative Strength Index (14-day) value of 46.40.
One can sell near 61.25 for the target of 60.25 with the stop loss of 61.75.
TVS Supply Chain Solutions, part of TVS Mobility Group, has re-filed draft IPO papers with capital markets regulator Sebi and cut the fresh issuance size to Rs 750 crore from Rs 2,000 crore planned earlier. The company, which got approval from Sebi in May 2022 to float the initial public offering (IPO), did not launch the issue amid weak market conditions. It had earlier filed its draft papers in February 2022. As per rules, a firm gets one year to hit the primary market after receiving an approval from Securities and Exchange Board of India (Sebi). In case a firm fails to launch an IPO during this period, it has to refile the prospectus with the regulator to seek fresh clearance. According to the draft red herring prospectus (DRHP) uploaded on Sebi's website on Wednesday, TVS Supply Chain Solutions' initial share-sale consists of a fresh issue of equity shares aggregating up to Rs 750 crore and an Offer for Sale (OFS) of over 2 crore equity shares by promoters and existing shareholders. Those offering shares in the OFS include Omega TC Holdings Pte. Ltd, Tata Capital Financial Services Ltd, Mahogany Singapore Company Pte. Ltd, TVS Motor Company Limited, Kotak Special Situations Fund, Andrew Jones, Ramalingam Shankar, Ethirajan Balaji, Dinesh Narayan and Sargunaraj Ravichandran. Proceeds from the fresh issue will be utilised for payment of debt availed by the company and its subsidiaries -- TVS LI UK and TVS SCS Singapore -- and for general corporate purposes. Earlier, the company's proposed IPO comprised fresh issue of equity shares worth Rs 2,000 crore and an OFS of up to 5.95 crore equity shares. TVS Supply Chain Solutions (TVS SCS), an integrated supply chain solutions provider, is present in over 25 countries.
Global private equity major Blackstone Group-backed Nexus Select Trust has set the share’s price band for its initial public offering at Rs 95-100 per share. The firm earlier said that its issue will open its initial public offering for subscription on May 9 and close on May 11, in what will be India’s maiden pure-play retail mall REIT offering. Anchor investors' subscriptions will open on May 8 and finalisation on the basis of allotment will be on May 16. Initiation of refunds will take place on May 17 and the stock will list on exchanges on May 19. The total offering of Rs 3,200 crore comprises fresh share issuance of up to Rs 1,400 crore and an offer for sale of up to Rs 1,800 crore. Proceeds from the issue worth Rs 250 crore will be used towards repayment and redemption of specific financial liabilities associated with the Asset SPVs and the investment entity. As of December 2022, the Asset SPVs have an outstanding bank loan amount of Rs 4,705.12 crore while the principal amount outstanding towards debt securities is Rs 126.80 crore. The firm also plans to use Rs 1,050 crore for the acquisition of stake and redemption of debt securities in certain Asset SPVs. Nexus Select Trust proposes to utilize part of net proceeds towards the acquisition of a 30 percent stake in Nexus Indore Central (NMMCPL) from Olive Commercial Company Ltd. It also plans to acquire a 100 percent stake in WRPL and redemption of debt securities issued by WRPL to certain Sponsor Group entities.
Mumbai-based Drone maker ideaForge Technology has received approval from the capital markets regulator Sebi to launch IPO for fund raising. The issue comprises a fresh issuance of shares worth Rs 300 crore, and an offer for sale up to 48.69 lakh shares by selling shareholders. Amarpreet Singh, Nambirajan Seshadri, Naresh Malhotra, Sujata Vemuri, Sundararajan K Pandalgudi, A&E Investment LLC, Agarwal Trademart, Celesta Capital, Export Import Bank of India, Indusage Technology Venture Fund I, Qualcomm Asia Pacific Pte Ltd, and Society for Innovation and Entrepreneurship, along with promoter Ashish Bhat will be the selling shareholders in the IPO. ideaForge Technology has filed its draft red herring prospectus with Sebi in February this year. The company has received an observation letter from the regulator on April 13, an update with Sebi showed on Tuesday. In Sebi's parlance, its observation implies its goahead to launch the IPO. ideaForge will utilise fresh issue proceeds for repaying debts, working capital requirements, investment in product development, and general corporate purposes. Founded in 2007, the Mumbai-based company has the largest operational deployment of indigenous unmanned aerial vehicles (UAVs) across India, with its drones taking off every five minutes on average for surveillance and mapping.
Fincare Small Finance Bank has filed a draft red herring prospectus (DRHP) with the capital markets regulator Sebi again on May 1, to raise funds via an initial public offering (IPO). The public issue comprises a fresh issuance of shares worth Rs 625 crore and an offer for sale (OFS) of 1.7 crore equity shares by promoter and investors. Promoter entity Fincare Business Services, along with investors Kotak Mahindra Life Insurance Company, Wagner, Edelweiss Tokio Life Insurance Company, True North Fund V LLP, Bharti Axa Life Insurance Company, Indium IV (Mauritius) Holdings, Silver Leaf Oak (Mauritius), Omega TC Holdings Pte Ltd, TATA Capital Financial Services, LeapFrog Rural Inclusion (India), and Zuno General Insurance (formerly known as Edelweiss General Insurance) are the sellers in an offer for sale. The small finance bank is going to utilise fresh issue proceeds for augmenting its Tier-1 capital base to meet future capital requirements.
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Mutual funds as an investment vehicle have gained popularity among investors, although the average ticket size of retail investors have dropped by close to 3 per cent to Rs 68,321 in March this year. The retail investors had an average account size of Rs 70,199 as of March 2022 as compared to average account size of Rs 68,321 at the end of March this year, according to data published by Association of Mutual Funds in India (Amfi). On the other hand, institutional investors had the highest ticket size at Rs 10.11 crore per account during the period under review. In terms of schemes, the average ticket size is relatively higher for liquid and debt oriented schemes, which are primarily dominated by institutional investors. The average ticket size for debt oriented schemes was Rs 14.53 lakh, while the same for equity oriented funds was Rs 1.54 lakh. Generally, equity assets have a longer average holding period as compared to non-equity assets with 45 per cent of equity assets having been held for more than two years. Retail investors hold a 56.5 per cent of equity assets for over two years.
UTI Mutual Fund has launched UTI Nifty 500 Value 50 Index Fund, an open-ended scheme replicating/tracking the Nifty 500 Value 50 Total Return Index [TRI]. The New Fund Offer is open and will close for subscription on May 8. The investment objective of the scheme is to provide returns that, before expenses, correspond to the total return of the securities as represented by the underlying index, subject to tracking error. The performance of the UTI Nifty 500 Value 50 Index Fund will be benchmarked against Nifty 500 Value 50 TRI. The scheme will be managed by Sharwan Kumar Goyal and Ayush Jain. The minimum subscription amount for investment in these schemes is Rs 5,00 and in multiples of Re 1 thereafter. The minimum SIP amount for Daily, Weekly, and Monthly SIP is Rs 500 and in multiples of Re 1 thereafter. The minimum SIP amount for Quarterly SIP is Rs 1,500 and in multiples of Re 1 thereafter. The scheme will offer Regular Plan and Direct Plan – with Growth and IDCW options. During the New Fund Offer period, the units of the scheme will be sold at the face value of Rs 10 per unit. The scheme will offer subscription and redemption of units at applicable NAV on every business day on an ongoing basis, within five business days from the date of allotment.
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