In the week gone by, global markets rallied after data showed that there was a decline in US inflation to 6.5% and also the consequent decline in US 10-year bond yields by 10% to 3.46%. Data showing a fall in consumer prices in December has bolstered expectations of less aggressive interest rate hikes from the Federal Reserve. European stock markets too moved high supported by ongoing hopes that slowing inflation will encourage the Federal Reserve to back away from steep interest-rate increases. Economic data out of Europe has been relatively strong of late, raising hopes that the Eurozone will only suffer a shallow recession in the New Year, overturning earlier fears of a severe slowdown. Several economic indicators and other prominent signs from China suggested that the Chinese economy is headed for a fast recovery and a world-leading growth rate in 2023, with latest inflation data showing price stability in 2022 despite huge pressure. The Bank of Japan on Thursday upgraded its assessments for four of the country’s nine regional economies as activity continued to pick up with no antivirus curbs in place, but higher inflation is casting a pall over the outlook for consumption.
Back at home, the domestic market continued to remain volatile as investors eagerly awaited the earnings of other IT majors after a cautious warning from TCS. Besides, foreign investors continued to remain on the sell side. On the flip side, Domestic Institutional Investors are taking interest in the market due to decrease in CPI inflation (5.72% in December) and rising IIP numbers (7.1% in November). To note, Retail inflation has eased more than expected in December, bringing the headline print below the RBI’s upper tolerance for the second straight month. The RBI had raised key lending rate by 35 basis points last month, after three straight 50 bps hikes, and said its fight against inflation was not over yet. Budget 2023 is expected to focus on capital expenditure as a growth driver and give an impetus to manufacturing while continuing with the post-pandemic fiscal consolidation. Investors will continue to take clue from domestic as well as global factors for the market trend.
On the commodity market front, a marginal upside was witnessed in commodities; CRB closed above 295 levels. Fall in dollar index stimulated buying in many commodities. Bullion counter had a mixed story. In comex, gold closed up whereas silver prices witnessed fall. On MCX, due to appreciation in rupee; gold traded in a range whereas silver prices dragged down on profit booking from higher side. Gold and silver can trade in the range of 54500-56800 and 67000-72000 levels respectively. Crude will trade in the range of 6200-6600 levels on mix triggers. Base metals may continue to trade with firm sentiments. Westpac Consumer Confidence Index of Australia, GDP Growth Rate YoY of China, Inflation Rate YoY Final of Germany, Employment Change, Core Inflation Rate, Inflation Rate and Unemployment Rate of UK, ZEW Economic Sentiment Index of Germany and Euro Area, Core Inflation Rate and Inflation Rate of Canada, BoJ Interest Rate Decision, Inflation Rate and BoJ Quarterly Outlook Report, Core Inflation Rate of Euro Area, PPI MoM and Retail Sales MoM of US, Employment Change and Unemployment Rate of Australia, etc are some data and events scheduled this 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.
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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 company has strong order books reflecting good future growth visibility. The management has informed that Government recently announced that MoRTH is planning to take over a greater number of State Highways, having high traffic volumes from respective state governments for a 25 years' period to develop and upgrade them into either 4- or 6-lane National Highways. The industry believes that this move would be highly beneficial to the Roads and Highways sector as a whole and would greatly help accelerate the financial growth of the company. Thus, it is expected that the stock will see a price target of Rs.406 in 8 to 10 months’ time frame on 2years average P/BVPSx of 2.30x and FY24 BVPS of Rs.176.56.
According to the management, the bank's liquidity coverage ratio, which shows the banks capability to meet short-term obligations, is 120%. The cost of funds is likely to rise for the banking sector as a whole during the third quarter due to the rate hike by the Reserve Bank of India. The retail business of CSB Bank Ltd. will be the largest and the main driver of growth in the long term. 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 1.56x and FY24 BVPS of Rs.202.69.
The stock closed at Rs 131.10 on 13th January, 2023. It made a 52-week low at Rs 92.25 on 27th October, 2022 and a 52- week high of Rs. 175.35 on 11th April, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 102.45
Short term and medium term bias are looking positive for the stock as it is trading in higher highs and higher lows on chart which are bullish in nature. Apart from this, the stock is forming an “Inverse Head and Shoulder” pattern on weekly chart, which is considered to be bullish. On the indicators front such RSI and MACD are also suggesting buying for the stock. Therefore, one can buy in the range of 127-129 levels for the upside target of 150-155 levels with SL below 117 levels.
The stock closed at Rs 4005.90 on 13th January, 2023. It made a 52-week low at Rs 3092.05 on 26th September, 2022 and a 52-week high of Rs. 4954.00 on 05th April, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 3737.39
As we can see on chart that the stock is trading in higher highs and higher lows on charts, which is bullish in nature. Apart from this, stock has formed a “Bullish Pennant” pattern on weekly chart, and has given the breakout of pattern. It also has managed to close above the same, so follow up buying is anticipated in the stock in coming days. Therefore, one can buy in the range of 3940-3970 levels for the upside target of 4400-4560 levels with SL below 3800 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 tug of war among bulls and bears kept markets on a roller coaster ride. Nifty somehow managed to close above its key support levels of 17800 while Bank nifty witnessed some lower level buying in later part of the week to close above 42300 mark. Derivative data suggest that markets will continue to remain choppy in upcoming week. Option writers were seen adding hefty open interest on both sides. Nifty is likely to get some support at lower levels as far momentum keeps above 17800 levels while on higher side 18100-18150 zone, it would cap any fresh upside in prices. Implied volatility (IV) of calls closed at 15.05% while that for put options, it closed at 16.11%. The Nifty VIX for the week closed at 15.28%. PCR OI for the week closed at 1.12. Technically Nifty & Bank Nifty both the indices are trading in a downward sloping channel and needs to regain a strong momentum above 18100 & 42600 levels respectively to regain next upswing into the prices.
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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 prices are expected to trade mix to down on limited buying in local market. Arrivals of new crop are likely to commence from Mar-Apr that keeping away from bulk buying. Demand of premium quality of turmeric is still low as stockists are releasing their old stocks at lower rate. However, downside in the prices is likely to be limited due to shrinking supplies in the market amid robust export demand. India exported about 12.4 thousand tonnes of turmeric in Nov’22 as compared to 12.2 thousand tonnes. Turmeric Apr prices are expected to trade in range of 7500-8400.
Jeera NCDEX Mar futures are expected to trade mix to down as market may come under profit booking mood in wake of commencement of new crop season ahead. Market has already rallied by more than 55% so far since Nov’22 due to supply concerns as Stockists and farmers were reluctant to release their stocks on expectation of better prices realization. Marginal millers are away from heavy buying wherein Stockists are in mood of releasing stocks. Some correction is likely to be seen in prices wherein major trend will remain positive due to weaker production outlook backed by fall in area under jeera in Gujarat. About 2.74 lakh hectares were sown under jeera in Gujarat till 2nd Jan’23 as compared to 3.0 lakh hectares of previous year, down by 10% Y-o-Y. Jeera Mar prices are likely to trade in range of 34500-37200.
Dhaniya NCDEX Apr prices are likely to trade on weaker note due to lukewarm demand at physical market. Reports of rise in area under dhaniya and better yield prospects supported by normal crop progress will weigh on the market sentiments. Area under dhaniya in Gujarat was reported at 2.21 lakh hectares as on 2nd Jan ’23 compared to 1.25 lakh hectares of previous year, higher by 78% Y-o-Y. Supplies are adequate at major trading centers due to rising imports that is keeping buyers away from bulk buying. India has imported about 22.01 thousand tonnes of dhaniya during Jan’22-Oct’22 compared to 4.89 thousand tonnes of previous year. Dhaniya NCDEX Apr Prices are likely to trade in range of 8000-8700.
Gold prices were on track for a fourth consecutive weekly gain, supported by a weaker dollar and expectations of slower interest rate hikes by the U.S. Federal Reserve. The dollar index was on track for worst week since Nov. 11, 2022. A weaker greenback makes bullion more attractive to overseas buyers. US CPI fell for the first time in more than two and half years in December, offering hope that inflation is now on a sustained downward trend. Typically, gold goes up when inflation is rising but gold prices have surged continuously despite cooling inflation because the market is looking at a lower dollar and smaller interest rate hikes. Gold is seen as an inflation hedge, but higher interest rates increase the opportunity cost of holding the asset. Federal Reserve Bank of Philadelphia leader Patrick Harker said that while the central bank needs to raise rates more to cool off inflation, it can probably do so at a much slower pace. Atlanta Federal Reserve Bank president Raphael Bostic said the inflation data may allow the Fed to scale back to quarter-point rate hikes at its upcoming meeting. The Fed had raised rates by 75 basis points (bps) four times last year, before slowing to a 50 bps increase in December. On COMEX, Gold could be facing resistance around $1940, breaking above this level, will stretch the buying rally towards $1980-$2000. Silver may trade in the range of $22.90-$24.200. Ahead in the week, MCX Gold may witness both side movements and the possible trading range would be 54500-57000 level. Silver may trade in the range of 66500-71000 levels, buying near support and selling near resistance would be the better strategy.
Crude oil prices were on the track of 6% weekly gain amid expectation of a rebound in China demand. The bullish factors are inflation data for the U.S. that suggested a slowdown and signs that the Federal Reserve may slow down with its rate hikes. As regards China, the government issued a new batch of crude oil imports and that batch suggested Beijing expects stronger oil demand in the country. Together, the two batches of import quotas issued since the start of the year see demand for imported crude at 132 million tons. This compares with 109 million tons a year earlier. China may become a major fuel exporter to the European Union once the EU initiates its embargo on Russian fuel imports in February. Imports for the full year by the world's top buyer totaled 508.28 million tonnes, equivalent to 10.17 million barrels per day, 0.9% lower than in 2021, according to data from the General Administration of Customs. The US EIA said the upcoming EU ban on seaborne imports of petroleum products from Russia on Feb. 5 could be more disruptive than the EU ban on seaborne imports of crude oil from Russia implemented in December 2022. Ahead in the week, crude prices may continue to trade with bullish bias and the possible trading range would be 6000-6800 level. Natural gas prices dropped as strong liquefied natural gas imports, undeterred by low gas prices on the continent, offset the prospect of higher demand. Despite China's reopening, LNG cargo has been available in the spot market. An expected surge in demand amid colder weather forecasts for later this month failed to boost sentiment. Ahead in the week, prices may continue to trade with bearish bias and may trade in the range of 270-350 level.
Base metals may trade with high volatility and buy on dip should be the best strategy as supply concerns and demand optimism from hopes of an easing in rate hikes by the U.S. Federal Reserve underpinned prices. China's pledges of more policy support for the economy, after it reopened borders and removed COVID-19 restrictions, fuelled optimism over improving metals demand from the world's top consuming market. Most Chinese manufacturers that use copper remained open during COVID restrictions, while new property support measures are limited and will only spur a moderate rise in construction activity. Physical demand for metals is also expected to slow as China is about to enter its week-long holiday break to celebrate the Lunar New Year during Jan. 23-27. Copper may trade in the range of 740-780 levels. Supply concerns arose from Peru, the world's second-biggest copper producer that is currently in the throes of the worst civil unrest in years. Vandals attacked Glencore's Antapaccay copper mine in Peru amid a deepening political crisis marked by violent protests that have broken out near major mines in the southern Andes. Zinc can trade in the range of 275-295 levels. China's refined zinc output was 525,800 mt in December 2022, a month-on-month increase of 1,100 mt or 0.21%, and a year-on-year growth of 12,500 mt or 2.43%, SMM data showed. Lead can move in the range of 183-196 level. Aluminum may trade in the range of 205-230 level. The energy crisis continues to shutter capacity throughout Europe and impact aluminum prices. However, rising production from China has helped alleviate the market deficit, pushing prices downward. Steel long (Feb) is likely to trade in the range of 49700-51400 level on NCDEX
Kapas NCDEX Apr prices are likely to trade down due to sluggish buying in local market. Higher stocks of kapas with farmers and sluggish export demand are likely to keep prices down in near term. Apart from that allowance of cotton imports from Australia will also boost the supplies and will put pressure on domestic prices. However, cotton arrivals are lower as compared to last year as farmers are hoarding their produce on expectation of better price realization. In wake of supply tightness in physical market, Indian government has allowed duty-free import of 3 lakh bales of cotton from Australia. Kapas Apr NCDEX prices are likely to face resistance of 1650 and expected to correct from there towards 1570. Kapas Apr NCDEX prices are likely to face resistance of 1670 and expected to correct from there towards 1580.
Cotton seed oil cake NCDEX Feb futures are likely to trade mixed to down due to muted demand at physical market. Demand has been down as millers prefer new crop of mustard and demand for cocud has dropped as mustard seed oil cake is used as substitute of cotton seed oil cake. However, supplies have been lower as farmers are not releasing cotton in anticipation of better price outlook. Prices are likely to trade in range of 2800-2950 level.
Guar seed Feb futures are likely to trade sideways to higher due to shrinking supplies amid robust export demand of gum. India exported about 19 thousand tonnes of guar gum in month of Nov’22 compared to 16.9 thousand tonnes of previous year for corresponding period, higher by 13% Y-o-Y as per the data released by Ministry of commerce, India. India’s total guar gum export has reached up to 227.13 thousand tonnes till Nov’22 in year 2022 higher by 16% Yo-Y. Guar seed prices are likely to trade in range of 5800- 6600.Guar gum prices are likely to trade in range of 11500-16200.
Mentha oil Jan is likely to trade in mix to down as profit booking is likely to seen at higher level. Export demand for menthol is likely to be slow in wake of slowdown in economic activities in China that will put pressure on prices. However, supplies have been tighter due to lower production in year 2022 that has affected the pace of arrivals as well. Prices are likely to trade in range of 1030-1100 levels.
Castor seed Feb prices are likely to trade higher due to renewed buying at lower levels. Weaker production outlook for upcoming season is likely to cap the major downfall in prices. However, sluggish export demand is still a major concern for castor oil traders as domestic stocks are surging up with fall in export. Limited demand for castor oil is keeping millers away from heavy buying of castor seed. Going forward, castor seed prices are likely to trade in range of 6700-7400 levels.
It closed at Rs. 215.60 on 12th Jan 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 209.78. On the daily chart, the commodity has Relative Strength Index (14-day) value of 63.397. Based on both indicators, it is giving a buy signal.
One can buy near Rs. 213 for a target of Rs. 238 with the stop loss of 201.
It closed at Rs. 68643.00 on 12th Jan 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 66448.26. On the daily chart, the commodity has Relative Strength Index (14-day) value of 53.130. Based on both indicators, it is giving a sell signal.
One can sell on rise near Rs. 69500 for a target of Rs. 65000 with the stop loss of 71200.
It closed at Rs. 7048.00 on 12th Jan 2022. The 18-day Exponential Moving Average of the commodity is currently at Rs 7242.69 On the daily chart, the commodity has Relative Strength Index (14-day) value of 50.404. Based on both indicators, it is giving a buy signal.
One can buy above Rs. 7200 for a target of Rs. 7700 with the stop loss of 6950.
NOTE: *M.High / M.Low stands for Monthly High / Monthly Low
A marginal upside was witnessed in commodities; CRB closed above 297 levels. Fall in dollar index stimulated buying in many commodities. Bullion counter had mix story. In comex, gold closed up whereas silver prices witnessed a fall. On MCX, due to appreciation in rupee, gold traded in a range whereas silver prices dragged down on profit booking from higher side. In the energy counter, natural gas nosedived on mild temperature whereas crude oil enjoyed marginal upside. Crude oil prices rose as China's demand outlook improved and concerns rose over the impact of sanctions on Russian supply. The world imported more Liquefied Natural Gas (LNG) in 2022 than ever before, but the war in Ukraine has meant that the growth was concentrated in wealthy European countries and away from poorer Asian countries. Total global LNG imports rose to 409 million tonnes last year from 386.5 million tonnes in 2021, according to data from Refinitiv. China's industrial output is expected to have grown by 3.6% in 2022 from the previous year. It was comparatively good week for base metals. Even industrial metal steel saw upside move. Copper prices hovered just below their strongest level since mid-June. The copper rally comes when stockpiles held by exchanges remain low after a year when production was hit by energy shortages in Europe and China. Metals are also receiving support from the weaker dollar, which has slid to near a seven-month low as traders see the Fed turning less hawkish after cooler inflation and employment data.
In agri, cotton oil seed cake and kapas prices slashed due to muted domestic demand. Higher stocks of kapas with farmers and sluggish export demand also exerted pressure. Mentha oil couldn’t hold on higher levels. Castor had the similar story; absence of export demand gave a jerk to the prices. Guar counter enjoyed the super upside move. Upside was due to shrinking supplies at physical market amid robust export demand of gum. India exported about 19 thousand tonnes of guar gum in month of Nov’22 compared to 16.9 thousand tonnes of previous year for corresponding period, higher by 13% Y-o-Y as per the data released by Ministry of commerce, India. Taking Nov data in account, India’s total guar gum export has reached up to 227.13 thousand tonnes till Nov’22 in year 2022 higher by 16% Yo-Y. In spices, all dhaniya, turmeric and jeera traded in range with downside bias. Demand of premium quality of turmeric is still low as stockists are releasing their old stocks at lower rate. Jeera was down due to muted domestic demand at higher levels. Marginal buyers are away from bulk buying and waiting for the new crop as arrivals of new crop is likely to start from March.
Jeera is not only a flavoring agent with its tinge but nowadays its price has also surprised the market players with a dash of profit. Jeera was cynosure of 2022 with more than 103% strong rally due to supply concerns as production dropped in major producing states across India and higher export. Supply pipelines in both India and abroad have been empty for a year due to weather and political factors. Arrivals dropped to below normal level in year 2022 in result of lower production that forced spice millers to procure jeera at costlier rate. Farmers and stockiest released their stocks only on better price realization.
2023 has also started with bang as rally is continued. The prices of jeera have shot up 45% within a month to record high levels amid continued supply shortages in India and other major jeera-growing countries. The prices zoomed to above Rs 35,500 on January 9. Thus, the prices have increased by Rs 11,000 in around a month’s time. At the Unjha market in Gujarat, the largest market for jeera in the country, prices have increased to Rs 320 /kg. from Rs 220/kg less than a month ago.
Production scenario in India
India is the world’s largest cumin producing country, contributes about 70% of total world output. The other major cumin-producing countries are Syria (13%), Turkey (5%), UAE (3%), and Iran. Jeera production in India has grown with CAGR of 3% in last 10 years. Gujarat accounts for around 65 per cent of the country’s jeera production followed by neighboring state Rajasthan.
As per the latest sowing data available with the Gujarat government, farmers have sown the spice seed crop only in 2.75 lakh hectares, down from 3.07 lakh hectares recorded the previous season and only 65 per cent of the last three year’s average sowing area of 4.21 lakh hectares. Despite better realization on jeera, farmers were not interested for jeera sowing due to adverse weather condition. Being a rabi crop, jeera is sown during Oct – Nov and harvested in Feb – Mar. Arrivals extend till May – June across major mandis.
According to fourth advanced estimates by the Gujarat government, jeera production is seen to fall by 44.5 percent to 221500 tonnes in 2021-22 on yoy basis. According to data from Spices Board India, Jeera production in country is expected at 725,651 ton, down 8.8% on year due to lower acreage in Rajasthan and Gujarat, the key producer.
Demand for jeera
India has been the largest exporter of jeera; export around more than 100 countries across the globe where China, Bangladesh, Vietnam, USA and UAE are the major buyers of Indian jeera; contributes more than 60% of total export from India. India exports around 30% of its annual production and plays a crucial role in global trade. Jeera export from India has grown with CAGR of 14% in last 7 years due to rising international demand. Jeera exports during Apr-Oct 2022 dropped by 18.92 percent at 122015.13 tons as compared to 150479.11 tons exported during Apr-Oct 2021. In the month of October 2022 around 12427.86 tonnes of jeera was exported as against 11260.72 tonnes in October 2021 showing a rise of 10.36%.
Jeera is expected to be hot pick for traders and stockists in coming days in wake of rising demand from household as well as from Hotel and restaurant industry. Market expects prices to remain firm till March when the new crop will come to the markets while supplies are tight, demand is expected to rise for the upcoming Ramadan festival.
Indian Rupee hit a high of 81.26 versus the dollars highest in more than a month after US CPI fell to the lowest level in more than 2 years to 6.5% in December, which is the smallest rise since October while core inflation advanced to 5.7% vs 6.00% printed in November. The earlier rupee rose sharply higher from 82.80 to 81.55 in a span of two trading sessions after expected flows starting from SBI infrastructure bonds to the tune of Rs 10,000 crores, Adani's group FPO of 20,000 crores and Carlyle's purchase of majority stake in VLCC for $300 million changed the bearish sentiment in rupee. Accordingly, the Fed fund rate projection is now shifting to a 25 bps hike from the conventional 50 bps hike in the coming FOMC meeting, which pushed the dollar lower against emerging currencies notably against the Chinese yuan which hit a five-month high. However, the relative jump in euro and pound won't be sustainable as their central banks are likely to lag compared to the Fed while the rupee is likely to benefit from corporate flows along with soft energy prices which may weigh EURINR and GBPINR sharply in coming days. Going forward, monthly inflation data in the UK and retail sales numbers from the US will broadly guide the major move.
USDINR (JAN)is trading below its major Exponential Moving Average indicating downwards trends for short term view. The Pair has major support placed around 81.09 levels while on higher side resistance is seen around 82.15 levels. The 21-day Exponential Moving Average of the USD/INR is currently around 82.35 Levels. On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 32.25.
One can sell on bounce near 81.60 for the target of 81.00 with the stop loss of 82.00.
GBPINR (JAN)is trading between its major Exponential Moving Average indicating sideways trends for short term view. The pair has major support placed around 98.15 levels while on higher side resistance is seen around 100.37 levels. The 21-day Exponential Moving Average of the GBP/INR is currently around 99.60. On the daily chart, the GBP/INR has Relative Strength Index (14-day) value of 50.00.
One can sell on bounce near 99.60 for the target of 98.60 with the stop loss of 100.00.
EURINR (JAN) is trading above its major Exponential Moving Average indicating upwards trends for short term view. The pair has major support placed around 87.00 levels while on higher side resistance is seen around 89.00 levels. The 21-day Exponential Moving Average of the EUR/INR is currently around 87.74. On the daily chart, the EUR/INR has Relative Strength Index (14-day) value of 59.90.
One can buy on dip near 88.20 for the target of 89.00 with the stop loss of 87.80.
JPYINR (JAN) is trading above its major Exponential Moving Average indicating upwards trends for short term view. The pair has major support placed around 61.70 levels while on higher side resistance is seen around 64.18 levels. The 21-day Exponential Moving Average of the JPY/INR is currently around 62.20. On the daily chart, the JPY/INR has Relative Strength Index (14-day) value of 62.50.
One can buy on dip near 63.50 for the target of 64.50 with the stop loss of 63.00.
Radiant Cash Management Services listed at ₹103 on the NSE, a premium of 9.57% over the initial public offer (IPO) price of ₹94 per share. Radiant had lowered its issue size from ₹387.94 crore to ₹256.66 crore ahead of the issue opening and reduced the issue price to ₹94 from ₹99 earlier. The company raised ₹116.38 crore from anchor investors ahead of its IPO by allotting 11.8 million shares at ₹99 per share. The company's market capitalisation stood at ₹1,117.23 crore on the first day of listing. The IPO comprised a fresh issue of up to ₹54 crore and an offer for the sale of up to 21.2 million shares by existing shareholders worth ₹256.64 crore. Anchor investors who invested in the public issue, include HDFC Mutual Fund, Aditya Birla Sun Life Mutual Fund, Emerging Business Fund, Alchemy Emerging Leaders of Tomorrow, Citigroup Global Markets, Dovetail India Fund, Societe Generale, BNP Paribas Arbitrage, UTI Mutual Fund, and Saint Capital Fund.
Sah Polymers surprised the Street with a strong opening as the stock made a debut with 30.7 percent premium over issue price on January 12. This was the last listing among IPOs launched last month. The bulk packaging solutions provider started off the first day trade at Rs 85, against an issue price of Rs 65 per share, despite volatility in the equity markets. Healthy subscription numbers, and good financial track record are some of reasons for the premium listing. The company launched its maiden public issue on December 30, 2022, and it was closed with 17.46 times subscription on January 4, 2023. The offer comprised only a fresh issue of 1.02 crore shares. The issue fetched the company Rs 66.30 crore at the higher end of the price band of Rs 61-65 per share. The issue proceeds will be used for the addition of a manufacturing facility to manufacture a new variant of flexible intermediate bulk containers (FIBC) with a production capacity of 3,960 million tonnes per annum.
Electronic manufacturing services and solutions provider Cyient DLM has filed the draft red herring prospectus (DRHP) with the capital market watchdog Sebi to raise funds through an initial public offering (IPO). The wholly-owned subsidiary of IT services company Cyient is looking to raise Rs 740 crore through a fresh issue of equity shares. It may also consider raising up to Rs 148 crore by way of private placement, rights issue, preferential offer or any other method before the filing of the red herring prospectus with the Registrar of Companies. If it raises funds through the pre-IPO placement, the fresh issue size will be reduced accordingly. The qualified supplier to global original equipment manufacturers (OEMs) in aerospace and defence, medical technology and industrial sectors will utilise funds to meet working capital requirements and expenditure. Cyient DLM claims to be one of the leading integrated electronic manufacturing services (EMS) and solutions providers with strong capabilities across the value chain and the entire life cycle of a product, said the DRHP citing a Frost & Sullivan report.
JG Chemicals Ltd has filed a draft red herring prospectus with the Securities Exchange Board of India (Sebi) to raise funds through an initial public offering. The IPO consists of a fresh issue of Rs 202.50 crore and an offer-for-sale of up to 5.70 million shares by its existing shareholders and promoters. The OFS comprises up to 3.64 million shares by Vision Projects and Finvest Pvt Ltd, 1.4 lakh shares by Jayanti Commercial Ltd, 1.27 million shares by Suresh Kumar Jhunjhunwala (HUF) and 6.5 lakh shares by Anirudh Jhunjhunwalal (HUF). The proceeds from the fresh issue will be used for investment in its material arm BDJ Oxides. The company will use Rs 45 crore for repayment of debt, Rs 5.31 crore to set up a research and development centre, Rs 65 crore for funding its long-term working capital requirement for its subsidiary and Rs 35 crore for its own long-term working capital requirement. As of December 2022, the total outstanding borrowings of BDJ Oxides amounted to Rs 54.65 crore. Centrum Capital, Keynote Financial Services Ltd and Emkay Global Financial Services are the book running lead managers to the issue.
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HDFC Mutual Fund has announced the launch of HDFC Long Duration Debt Fund that will invest in long-dated government securities with roll down strategy. HDFC Long Duration Debt Fund is an open-ended debt scheme that aims to invest in debt instruments such that the Macaulay Duration of the portfolio is greater than 7 years. The NFO opens on January 06 and closes on January 17. The scheme will be managed by Shobhit Mehrotra, Head – Fixed Income, HDFC Asset Management Company. According to the fund house, HDFC Long Duration Debt Fund is best suited as a core constituent of debt asset allocation for meeting long term goals of investors. The fund house also says that the Fund aims to provide a hedge against long-term expected inflation and offer tax efficient regular cash flows through Systematic Withdrawal Plan. With recent rise in interest rates, HDFC Long Duration Debt Fund also offers investors an opportunity to invest in the longer end of the yield curve and earn prevailing yields, says the fund house.
TRUST Asset Management has launched TRUSTMF Corporate Bond Fund, which aims to seek benefit from currently elevated high yields at the shorter end of the yield curve. The New Fund Offer opens for subscription on January 9 and will close for subscription on January 18. Currently, TRUST Mutual Fund offers five fixedincome products. The TRUSTMF Corporate Bond Fund is the sixth addition to TRUST Mutual Fund’s Fixed Income product portfolio. The scheme will be managed by Anand Nevatia, Fund Manager, TRUST Mutual Fund. Speaking on the launch, Sandeep Bagla, CEO of TRUST Mutual Fund, said, “We are excited to present TRUSTMF Corporate Bond Fund to our investors. In the current environment, investors can expect both interest income and likelihood of generating capital gains which will add to the returns. It would be ideal if an investor comes with a time horizon of more than a year and is looking for a relatively safe option.”
Aditya Birla Sun Life Mutual Fund has announced the launch of Aditya Birla Sun Life Multi Asset Allocation Fund, an open-ended scheme investing in equity, debt and commodities. The fund will focus on diversifying its investments across a variety of asset classes. The NFO will be open for subscription from January 11 to January 25. According to the press release, the equity portion of the portfolio will follow a flexi cap approach with a large cap bias and can invest across sectors / themes. The fixed income portfolio will largely use Accrual strategy. The fund house will maintain a 65-80% allocation to equity,10-25% to fixed income and a 10- 25% allocation to commodities.
HSBC Mutual Fund has launched HSBC Multi Cap Fund, an open-ended equity scheme investing across large cap, mid cap, and small cap stocks. The new fund offer (NFO) opens on January 10. It will close for subscription on January 24. This will be the first NFO post the acquisition of L&T AMC and schemes of L&T Mutual Fund by HSBC Asset Management. After the acquisition and the launch of the multi cap NFO, HSBC Mutual Fund now offers funds in most of the categories as per the Securities and Exchange Board of India’s classification of mutual fund schemes under the regulations on categorization and rationalization of mutual funds. As mandated by Sebi, the fund will have minimum weightage of 25% to large, mid and small caps and flexible allocation of balance up to 25% to equity or debt securities and money market instruments. HSBC Multi Cap Fund will be managed by Venugopal Manghat, CIO—Equities, Sonal Gupta, Head of Research—Equity, and Kapil Punjabi, Senior Vice President and Fund Manager— Fixed Income for Domestic equities, overseas investments and fixed income investments respectively by the Scheme.
The mutual fund industry added Rs 2.2 lakh crore to its asset base in 2022, driven by consistent monthly increase in SIP (Systematic Investment Plan) flows. The Assets Under Management (AUM) of the mutual fund industry rose by 5.7 per cent or Rs 2.2 lakh crore to a total Rs 39.88 lakh crore in 2022, data from the Association of Mutual Fund Industry (Amfi) showed. This was way lower than a surge of nearly 22 per cent or an increase of close to Rs 7 lakh crore in the asset base to Rs 37.72 lakh crore in 2021. "The industry grew at a slower pace in 2022 due to uncertainty in stock markets, and changing interest rate scenarios affecting the business environment at large. Understandably, investors have been in step with these changes by reallocating their investments between equity, debt and hybrid schemes," Gopal Kavalireddi, Head of Research at FYERS, said.
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