In the weak gone by, global stock market continued to witness volatile movements as spiking US bond yields in the US, which, in turn, is in response to the view of most Fed officials that the Fed will have to tighten rates more to rein in inflation. US 10-year Treasury yield reached its highest in 10 months, underpinned by fears that US interest rates might stay higher for longer. Concerns over China’s economic slowdown resurfaced and sentiment weakened after property developer Evergrande filed for bankruptcy protection in the US. In another development, China's government is trying to reassure jittery homebuyers after a major real estate developer missed a payment on its multibillion-dollar debt, reviving fears about the industry's shaky finances and their impact on the struggling Chinese economy. China’s central bank unexpectedly cut key policy rates for the second time in three months, in a fresh sign that the authorities are ramping up monetary easing efforts to boost a sputtering economic recovery. Japan's economy grew much faster than expected in the three months to the end of June as the country's weak currency boosted exports. Japan's exports fell in July for the first time in nearly 2-1/2 years, dragged down by faltering demand for light oil and chipmaking equipment, underlining concerns about a global recession as demand in key markets such as China weaken.
Back at home, domestic markets witnessed volatile movement following the hawkish tone of the FOMC minutes meeting, Fitch's warning to downgrade US midsized banks and worries over the risk of a downgrade in China’s sovereign credit rating by Fitch. India’s inflation rose sharply above expectations at 7.44% in July vs 4.87% in June and forecast of 6.4%.The Reserve Bank of India (RBI) on Thursday said retail inflation is expected to average well above its target band of 4%-6% in Q2FY24, and called for major reforms in the perishables supply chain to prevent recurrent price shocks. To be sure, India’s consumer price index-based inflation rose to a 15-month high of 7.44% in July, primarily led by a rise in vegetable prices, especially those of tomatoes. Investors should maintain focus on stock selection and risk management until global market factors changes.
On the commodity market front, CRB took a downturn from the resistance level of 315. Bullion, which includes precious metals like gold and silver, experienced a significant decline for the third consecutive week. On COMEX, gold slipped for fourth week as strong labor market data and hawkish signals from the Federal Reserve kept markets positioning for higher U.S. interest rates. Gold and silver are likely to trade in a range of 57500-59500 and 69500- 72000 respectively. Oil prices snapped a seven-week winning streak as concerns about China's slowing economic growth and the possibility of more U.S. interest rate hikes outweighed signs of tightening supply. Crude oil may see some upside momentum upto 6950. Base metals will remain in range on bearish triggers. HCOB Manufacturing PMI and GDP Growth Rate of Germany, Jackson Hole Symposium, Durable Goods Orders and Michigan Consumer Sentiments Final of US, GDP Growth Rate of Mexico etc are some important data which one should consider while trading in commodities.
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.
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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.
According to the management of the company, Q1FY24 reported healthy performance across key parameters - improvement in CASA ratio and retail deposits mix, reduction in GNPA ratio supported by collections, growth in each of the asset businesses, stable spreads, asset quality and overall healthy profitability. Moreover, it is expanding its distribution and continues to invest in digital initiatives, branding and distribution to capture the significant opportunities available to be futureready. The management is focusing on margin improvement and looking for business growth without diluting the margin. So far the retail loan growth has been driving the business and margins of the bank. Thus, it is expected that the stock will see a price target of Rs.818 in 8 to 10 months’ time frame on 1 year average P/Bv of 4.31x and FY24 BVPS of Rs.189.75.
The company saw strong traction in deliveries, business development, cash collections and earnings in Q1 FY 24. With a robust launch pipeline, strong balance sheet and resilient demand, the company is on-track to achieve its bookings target of Rs. 14,000 crore in FY24 while also achieving highest ever deliveries and collections performance. Thus, it is expected that the stock will see a price target of Rs. 1831 in 8 to 10 months’ time frame on one year average P/BVx of 5.08x and FY24 BVPS of Rs.360.34E.
The stock closed at Rs.230.10 on 18thAugust, 2023. It made a 52-week low of Rs.182.35 on 28th March, 2023 and a 52-week high of Rs.251.15 on 07th September, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs.168
zAfter testing its 52 week low of 182.35 in month of March 2023 stock witnessed steady recovery from lower levels and can be seen trading in a rising channel with formation of higher bottom pattern. Few weeks ago, stock has managed to surpass above its long term downward sloping channel and since then trading in a range bound manner as prices can be seen fluctuating in range of 220-240 zone. Additionally, stock is well placed above its 200 days exponential moving average as well on daily and weekly interval. We expect upside momentum to carry in upcoming weeks once again, as positive divergences on secondary oscillators suggests next upswing into the prices. Therefore, one can buy the stock in the range of 228-230 levels for the upside target of 255-259 levels with SL below 215 levels.
The stock closed at Rs.871.50 on 18th August, 2023. It made a 52-week low at Rs.599.10 on 26th April, 2023 and a 52-week high of Rs.886.55 on 10thAugust, 2023. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs.722.
In a recent past stock has formed a rounding bottom pattern on weekly charts and risen sharply once again to gauge a fresh momentum above its 200 days exponential moving average once again. The upside momentum into the price have been observed with rising volumes. Technically stock has also given a fresh breakout above the falling trend line of downward sloping channel and is on verge of fresh breakout above its key resistance level of 900 after consolidation phase of nearly six weeks. Therefore, one can buy the stock in range of 865-870 levels for the upside target of 1000-1020 levels with SL below 780 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.
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Over the past four consecutive weeks, the Indian broader indices experienced declines. The Bank Nifty displayed weaker performance as compared to the Nifty over the same period. With rupee approaching to its all-time low, the market saw some buying activity in IT shares. Notably, the consumer durable and media sectors outperformed. Conversely, profit-taking was observed in commodities, financial services and metal stocks. Analyzing derivative data, the Nifty call options showed the highest open interest at the 19,400 level, while the highest open interest for put options was concentrated around the 19,300 level. Considering open interest, the expected trading range for the Bank Nifty is projected to be between 44,000 and 43,800. The 44,000 level has played a significant role in recent weekly expiries and remains crucial for upcoming expiries. Regarding implied volatility (IV), Nifty call options settled at 10.32%, while put options concluded at 11.03%. Additionally, the Nifty VIX, a gauge of market volatility, ended the week at 12.24%. The Put-Call Ratio Open Interest (PCR OI) stood at 1.04 for the week. Looking ahead to the coming week, the Nifty is anticipated to trade within a range of 19,100 and 19,500, whereas the Bank Nifty's pivotal level in previous weeks was 44,200. The prevailing perspective suggests a "sell on rise" strategy until the Bank Nifty surpasses the 44,200 level.
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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 witnessed profit booking last week with lowering demand in physical market. Stockists and farmers offloaded their stocks in fear of further fall in prices as prices dropped second consecutive week after touching the 18000 mark at NCDEX. Overall arrivals of turmeric has been higher on yearly basis so far since Apr’23 as about 217 thousand tonnes of turmeric arrived during above mentioned period in year 2023 against the 189 thousand tonnes of previous year. Demand remained subdued as most of the arrivals arrived are inferior quality. Limited availability of quality produce in the market will restrict the major downfall in turmeric prices. Ongoing sowing and crop progress is a major price driver for turmeric and forecast of drier weather in southern and central region has added worries to turmeric crops. Area under turmeric is estimated to be down by 15-20% in year 2023 due to monsoon concerns at the time of sowing. Profit booking is likely to remain continue in turmeric oct futures and prices are likely to slip towards support of 14500 whereas 18000 would act as near term resistance for prices.
Jeera futures slipped for second consecutive week following improved global supply condition. Weakening export enquire triggered profit booking in the market. Profit booking in Jeera is expected to remain continue due to reports of fall in export. Export of Jeera dropped in June’23 with reduced buying by China as India exported only 9.2 thousand tonnes of jeera as compared to 20.4 thousand tonnes of previous year. Major trend of jeera is still bullish due to drier pipe line. Prevailing concerns over supply shortage in domestic market is likely to cap the downfall. Farmers and stockists are reluctant to release their stocks in anticipation of another round of rally in prices. Festive demand of jeera is expected to improve that will prompt millers to buy on every dips. Pipelines are drier due to weaker crop and stocks are likely to remain tighter unless new crop touches the market. Jeera Prices are likely to trade in range of 62000-55000.
Dhaniya NCDEX Sep prices are likely to trade mixed to down due to subdued domestic demand. Stockists are releasing their stocks in fear of further fall in prices. Weakness in dhaniya will remain continue due to adequate domestic supply. However, losses are likely to be limited with increased export demand. Export surged up on yearly basis in third consecutive month due to disruption of grain deal between Russia and Ukraine that affected global supply of dhaniya. India exported about 11.3 thousand tonnes of dhaniya in June’23 as compared to 2.4 thousand tonnes of previous year. India exported about 46.7 thousand tonnes during time period of Apr-June’23 against the 8.7 thousand tonnes of previous year. China, Malaysia and UAE have been the major buyers of Indian coriander in year 2023. Overall arrivals of dhaniya has been higher so far since Apr’23 due to larger crop size but higher export is likely to restrict the losses. Dhaniya prices are likely to trade in range of 6900-7500.
Gold prices sank to their lowest in five months as recent data indicated the U.S. economy's resilience, fuelling expectations of an additional interest rate hike by the Federal Reserve this year. The minutes from the Fed's July meeting unveiled a division among policymakers regarding further rate increases, with a focus on combatting inflation over economic risks. The U.S. dollar lingered near a twomonth zenith, accompanied by 10-year Treasury yields reaching levels unseen since October. U.S. retail sales and housing data diminished recession concerns. U.S. 30-year yields also hit their highest point in 12 years, spurred by strong economic indicators that extended expectations of prolonged elevated interest rates by the Fed. Amid a deceleration in new claims for unemployment benefits, underscoring labor market tightness amid slower job expansion, anticipation builds for Fed Chair Jerome Powell's forthcoming economic outlook speech on August 25 at the annual Jackson Hole central bankers' symposium. Japan's essential consumer inflation tapered in July yet maintained levels surpassing the Bank of Japan's price target for the 16th consecutive month. Meanwhile, China Evergrande, the world's most indebted property developer and emblematic of China's property predicament, sought protection from creditors through a U.S. bankruptcy court. SPDR Gold Trust, the planet's largest gold-backed exchangetraded fund, revealed a 0.8% decline in holdings to 887.50 tonnes, marking their lowest since January 2020. On COMEX Gold prices trading near $1890, break and sustain below the levels will push prices to $1840 and resistance is seen near $1950, whereas Silver may continue to trade with bearish bias and would trade in the range of $20.900-$23.800. Ahead in the week, Gold prices may continue to trade with bearish bias and the possible trading range would be 57000-59000 levels. Silver prices may trade in the range of 66900-73000 levels.
Crude oil accomplished an impressive seven-week streak of gains as concerns regarding China's economic slowdown and potential U.S. interest rate hikes held greater sway than signals of supply constraints. This streak marked a significant achievement for both benchmark types this year. Over the past seven weeks, Brent futures escalated by roughly 18%, and WTI surged by more than 20%, propelling them to their highest points in months by August 11. However, their momentum waned somewhat last week, as both saw declines exceeding 3%. Despite robust U.S. economic data, such as optimistic retail sales figures, the Federal Reserve's emphasis on curbing inflation has dampened oil price growth. Elevated oil prices had surged recently due to supply apprehensions. While China's economic turbulence, particularly its property crisis, has roiled global financial markets, constricting oil supply due to production cuts orchestrated by OPEC+ and surging demand, driven by increased travel and enhanced industrial activity in the U.S., has bolstered prices. Analysts predict this might lead to a further rise soon. Although U.S. oil production is offsetting some losses from OPEC+ reductions, the diminishing U.S. rig count suggests this support could be short-lived, according to ANZ Research. Recent data revealed a nearly 6-millionbarrel decline in U.S. crude oil inventories last week, propelled by strong exports and refining rates. Ahead in the week prices may continue to trade higher and the possible trading range would be 6480-7050. Natural gas plummeted 6.47% to 216.8 due to anticipated reduced demand next week and abundant output, defying hotter weather projections. Ahead in the week, prices may continue to trade in the range of 200-230 levels.
Base metals may trade sideways with bearish bias on worries over disappointing China economic data and fears of further U.S. rate hikes. Data released recently showed lower-than-expected growth last month in China's industrial production, investment and retail sales, highlighting the struggle of post-pandemic economic recovery while a continuing slump in property investment further dented the demand outlook for industrial metals. Property giant Evergrande has filed for bankruptcy protection in the US as the real estate crisis in China deepens. New U.S. restrictions on investments in China’s technology sector also ramped up fears of a resurgent trade war between the two countries. In positive news, China's central bank unexpectedly cut key policy rates for the second time in three months, in a sign that authorities are ramping up monetary easing efforts to boost a sputtering economic recovery. Copper may trade in the range of 715-735 levels. Zinc can trade in range of 200-220 levels. Zinc inventories in LME-registered warehouses have surged by 54% over two days to the highest level in 17 months, highlighting a market surplus amid weak demand. Lead can move in the range of 178-187 levels. Aluminium can move in the range of 190-202 levels. The discount on aluminium for near-term delivery compared with the three-month contract on the London Metal Exchange has reached its highest since the global financial crisis of 2008, indicating weak demand and rising supply. The world's top aluminium producer churned out 3.48 million metric tons of primary aluminium last month, up 1.5% from the year-ago period, data from the National Bureau of Statistics showed. Steel long (Sept) is likely to trade in the range of 44800-47000 levels.
Cotton prices are likely to trade mixed to higher on growing concerns over crop progress in central region. Weather condition has been drier and likely remains adverse for crop in Aug’23 that will support the market sentiments. Report of fall in area under cotton is likely to support firmness in prices. Cotton area across India reported at 121.28 Lakh Ha as on 11th Aug in year 2023 Vs 122.53 lakh Ha of previous year. Cotton MCX Aug prices are likely to trade in range of 56500-61500. Similarly, Kapas Apr’24 futures are likely to trade in range of 1520-1600.
Cotton seed oil cake NCDEX Sep futures are likely to witness huge volatility ahead. Growing concerns over drier weather in central and northern part of Indian has resulted into rise in demand of cotton seed oil cake. Moreover, reports of fall in area under cotton also supported rally in cocud. Prices are facing resistance near 2800 and expected to move towards 2950 if prior level is breach. However, some profit booking could be seen towards support of 2600 in near term.
Guar seed Sep futures is likely to trade sideways to higher due to prevailing concerns over lower production in Rajasthan. Sowing area dropped in Rajasthan as 27.34 lakh Ha was sown under Guar as on 11th Aug Vs 30.08 lakh Ha of previous year. Drier weather in Rajasthan has sparked the worries of yield losses that will support firmness in prices. However, sluggish export of gum will cap the gains. About 37 thousand tonnes of guar gum was exported during the time period of Apr-Jun’23 as compared to 66 thousand tonnes of previous year. Guar seed prices will trade in range of 5850-6350 in near term wherein Guar gum prices are likely to trade in range of 11400-13800 levels.
Mentha oil Aug contract witnessed sharp recovery in prices due to short covering in the market. Stockists are showing buying interest with emerging fresh export enquires for menthol. Overall production of mentha oil is likely to be down on yearly basis due to lower acreages that will cap the downfall in prices. Mentha oil prices are likely to trade in range of 880-960.
Castor seed prices are likely to trade mixed to down on reports of rise in area under castor in Gujarat. Castor Sowing activities are running on positive note as about 5.34 lakh Ha was sown under castor as on 11th Aug across India Vs 4.71 lakh Ha of previous year. Moreover, slack demand of castor oil will also keep prices down in near term. Castor seed Sep prices are likely to trade in range of 5900- 6500.
It closed at Rs. 723.60 on 17th Aug 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 722.55. On the daily chart, the commodity has Relative Strength Index (14-day) value of 37.948. Based on both indicators, it is giving a sell signal.
One can sell near Rs.729 for a target of Rs. 712 with the stop loss of 738.
It closed at Rs. 70182.00 on 17th Aug 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 71400.00 On the daily chart, the commodity has Relative Strength Index (14-day) value of 35.631. Based on both indicators, it is giving a buy signal.
One can buy near Rs.69600 for a target of Rs.73000 with the stop loss of 68600.
It closed at Rs. 45640.00 on 17th Aug 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs.45361.38. On the daily chart, the commodity has Relative Strength Index (14-day) value of 64.376. Based on both indicators, it is giving a buy signal.
One can buy near Rs. 45500 for a target of Rs. 47200 with the stop loss of 44650.
NOTE: *M.High / M.Low stands for Monthly High / Monthly Low
In the week gone by, CRB took a downturn from the resistance level of 315. Bullion, which includes precious metals like gold and silver, experienced a significant decline for the third consecutive week. This indicates a sustained decrease in the prices of these precious metals. Gold prices touched five-month lows on Thursday, as the U.S. dollar and Treasury yields gained momentum after recent upbeat economic data added weight to expectations the Federal Reserve would carry on with its policy tightening. Minutes from the Fed’s July meeting showed “most” policymakers continued to prioritize the battle against inflation, while “some participants” cited risks to the economy of pushing rates too far. Benchmark 10- year U.S. Treasury yields hit a 10-month high, boosting the dollar to its highest level since mid-June and drawing investors away from non-interest-bearing gold. After a seven-week upward rally, crude oil prices paused, indicating a temporary halt in the price increase of oil. Prices fell on fears of slowing growth in China and possible further U.S. interest rate hikes weakening fuel demand in the world's two biggest economies. China's central bank unexpectedly cut key policy rates for the second time in three months last week but analysts worry it may not be enough to arrest the economy's downward spiral. Natural gas prices couldn’t stay at higher prices. In base metals, Copper prices slipped for the third week in a row, dropping from 766 to 720. Lead and aluminum managed to close the week within a certain range with slight upward movement. Zinc prices nosedived. Zinc inventories in LMEregistered warehouses have surged by 54% over two days to the highest level in 17 months, highlighting a market surplus amid weak demand.
In Agri, castor price gave up weekly return on reports of rise in area under castor in Gujarat. Castor Sowing activities are running on positive note as about 5.34 lakh Ha was sown under castor as on 11th Aug across India Vs 4.71 lakh Ha of previous year. Cotton oil seeds cake futures gave terrific rally for the continuous third week. Cotton area across India reported at 121.28 Lakh Ha as on 11th Aug in year 2023 Vs 122.53 lakh Ha of previous year. Cotton candy was in range whereas kapas was marginally down. Guar counter closed the week in red on profit booking from higher side. Selling pressure was observed in the spices market, suggesting a decrease in demand or other factors affecting spice prices. Turmeric prices tumbled because of profit booking supported by lowering demand in the market. Spot prices at Nizamabad also dropped sharply due to surging selling pressure in the market and ruled at 14410 INR/Qntl. Jeera prices breached the psychological levels of 60000 on muted sot demand and bleak export enquires weighed on market sentiments. Adequate stocks with millers kept dhaniya prices under pressure.
Silver is known as precious metals as well as an industrial commodity. This is most versatile metal from industrial use to decoration; technology, photography and medicine. The demands of the home working economy, a boom for consumer electronics, 5G infrastructure investments and inventory build along the supply pipeline and rising end-use in the green economy supported the overall demand. Almost 60 per cent of global consumption of silver is accounted for industrial usage and the rest is for investment purposes.
Important fact about silver demand
Inadequate mine production
In 2023, the mine production of silver is expected to a slight increase of 2%. Mexico, the world's largest silver-producing country, just banned open-pit silver mining
Outlook
Looking ahead, the forecast of solid industrial demand, supply worries and possibilities of accommodative policy measures from Central banks continue to offer support for the commodity. Silver demand will climb to a record level this year thanks to increasing use of solar panels as governments boost renewable energy to meet climate goals. Indian investment is set to recover further, although remaining below 2019 levels. However, recession fears and moderate investment demand are likely to restrict the upside in the silver prices. Furthermore, if the Fed continues to tighten, and if inflation falls away more rapidly than the market expects, that will be a headwind for silver.
The dollar index is on track to mark its fifth consecutive week of advancement, a trend fueled by the minutes of the Federal Reserve's July meeting. These minutes revealed that policymakers emphasized the lingering upside risks to inflation, hinting at the possibility of further tightening of monetary policy. However, some participants within the Fed also highlighted the potential economic hazards of excessively raising rates, underscoring the significance of forthcoming data in determining future rate decisions. Recent data also indicated a decline in the number of new unemployment benefit claims filed by Americans, which suggests ongoing tightness in the labor market. Analyzing the charts, the dollar index has been in an upward trajectory since finding support around 99.22 in mid-July. It reached a peak of 103.50, a level that could be considered overbought following an impressive rally of more than 4.5 dollars. This surge prompted a pause in the upward momentum as the dollar index encountered resistance near 103.50. This resistance, coupled with the overbought condition, increases the likelihood of a potential reversal. Should the dollar witness a reversal or enter a phase of range-bound consolidation from these levels, a move towards the mean level of the 21- day exponential moving average (EMA), currently situated at approximately 102.36, could be anticipated. While the overall trend remains robust, an expected range for the dollar index lies between 102.30 and 103.70 levels. Similarly, tracking the upward trajectory of the dollar index, the Dollar Rupee (USDINR) pair has undergone a noteworthy ascent from its support level at 81.70 to its recent peak around 83.20. Over the past three trading sessions, USDINR has been consolidating within the range of 83.00 to 83.20. A breakout from the longstanding resistance at 83 marks signifies the pair's strength, and it is currently trading above this level.
USDINR (AUG)pair is currently in an Strong Bullish trend as trading above its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 82.67. However, the pair is in overbought territory with a Relative Strength Index (14- day) value of 67.42 on the daily chart. Major support is seen around 82.6 levels, while resistance is expected near 83.5 levels.
One can buy near 82.8 for the target of 83.4 with the stop loss of 82.5
GBPINR (AUG)pair is currently in an Mild Bullish trend as trading between its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 105.57. However, the pair is in Neutral territory with a Relative Strength Index (14- day) value of 54.85 on the daily chart. Major support is seen around 105 levels, while resistance is expected near 106.5 levels.
One can buy near 105.5 for the target of 106.5 with the stop loss of 105
EURINR (AUG) pair is currently in an Mild Bearish trend as trading between its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 90.84. However, the pair is in Neutral territory with a Relative Strength Index (14-day) value of 46.04 on the daily chart. Major support is seen around 90 levels, while resistance is expected near 91.5 levels.
One can sell near 90.8 for the target of 90 with the stop loss of 91.2
JPYINR (AUG) pair is currently in an Mild Bearish trend as trading below its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 58. However, the pair is in Borderline territory with a Relative Strength Index (14-day) value of 39 on the daily chart. Major support is seen around 56.5 levels, while resistance is expected near 58 levels.
One can sell near 57.5 for the target of 56.5 with the stop loss of 58
Concord Biotech, backed by late Rakesh Jhunjhunwala’s RARE Trusts, kicked off trading with a 21.46 percent premium over its IPO price on August 18, beating the analyst expectation of 15 percent. The maiden public issue of the Ahmedabad-based pharma company, which comprised only an offer-for-sale (OFS) portion, was subscribed 24.87 times during August 4-8 with qualified institutional buyers (QIBs) buying 67.67 times the allotted quota and high networth individuals (HNIs) 16.99 times. The portions set aside for retail investors and employees were subscribed 3.78 times and 24.48 times.
SBFC Finance, which is backed by private equity firm Clermont Group and investment bank Arpwood Group, has started off the first day of trading with 43.8 percent premium on August 16. This was above the analysts expectation of 35-40 percent. The professionally managed non-deposit-taking non-banking finance company had seen a strong response to its maiden public issue which was subscribed 70.16 times during August 3-7, given the robust business model with strong financial performance and stable asset quality. Qualified institutional buyers (QIBs) had taken the lead amongst investors, buying 192.89 times the portion set aside for them and the high net-worth individuals had bid 49.09 times the reserved portion. The parts allotted for retail investors and employees were subscribed 10.99 times and 5.87 times, respectively.
Metallic flexible flow solution products maker Aeroflex Industries has set a price band at Rs 102-108 per share for its initial public offering. The company intends to raise Rs 351 crore via public issue at the upper price band. The IPO comprises a fresh issue of Rs 162 crore by the company and an offer for the sale of 1.75 crore equity shares by the promoter Sat Industries. The offer includes a reservation of 5 lakh equity shares for shareholders of the holding company. The maiden public issue will open for subscription on August 22 and the closing date would be August 24, which was earlier supposed to open during August 21-23. The anchor book will be launched for a day on August 21, a day before the issue opening. Half of the offer size is reserved for qualified institutional buyers, of which up to 60 percent may be allocated to anchor investors. The balance 50 percent of the total offer is divided between high net worth individuals with 15 percent reservation and 35 percent for retail investors.
Punjab-based auto components maker Happy Forgings Ltd has filed the draft papers with the Securities and Exchange Board of India (Sebi) to raise funds through a public issue. The IPO will consist of a fresh issue of Rs 500 crore and an offer-for-sale of up to 8.05 million shares by its existing shareholders and promoters. The OFS will comprise up to 5.37 million shares by Paritosh Kumar Garg (HUF) and up to 2.68 million shares by India Business Excellence Fund III. The proceeds from the issue worth Rs 227.86 crore will be used to buy equipment, plant and machinery and Rs 190 crore will be used to repay debt. As of July 15, the company has total outstanding borrowings of Rs 203.23 crore. JM Financial, Axis Capital, Equirus Capital Pvt Ltd and Motilal Oswal Investment Advisors Ltd are lead managers to the issue. The company is involved in engineering, process design, testing, production, and distribution of a diverse range of components that contribute positively to profit margins and provide additional value. Its main focus is on serving domestic and international original equipment manufacturers (OEMs) that produce commercial vehicles within the automotive sector.
Leading household consumer products major Cello World Ltd has filed the draft papers with the Securities and Exchange Board of India (Sebi) to raise Rs 1,750 crore through a public issue. The IPO will be a pure offer-for-sale, comprising up to Rs 300 crore by Pradeep Ghisulal Rathod, up to Rs 670 crore by Pankaj Ghisulal Rathod, up to Rs 380 crore by Gaurav Pradeep Rathod, up to Rs 200 crore by Sangeeta Pradeep Rathod, and up to Rs 100 crore each by Babita Pankaj Rathod and Ruchi Gaurav Rathod. Gaurav Pradeep holds 25.73 percent stake in the company, while Pankaj Ghisulal has 16.24 percent and Pradeep Ghisulal hold 12.86 percent. The Mumbai-based firm which competes with the likes of Milton, La Opala and Borosil, is backed by ICICI Venture, the alternative investment arm of ICICI Bank. Kotak Mahindra Capital, ICICI Securities, JM Financials, Motilal Oswal Securities and IIFL Securities are the lead managers to the issue.
EPACK Durable Ltd, a leading outsourced design manufacturer of room air conditioners, has filed a draft red herring prospectus with Securities Exchange Board of India to raise funds via initial public offering. The IPO consists of a fresh issue of Rs 400 crore and an offer for sale of up to 13.07 million shares by its existing shareholders and promoters. The OFS comprises of up to 1.17 million shares by Bajrang Bothra, upto 6.67 lakh shares by Laxmi Bothra, up to 7.49 lakh shares each by Sanjay Singhania and Ajay Singhania, up to 2.87 lakh each shares by Pinky Nikhil Bothra and Preity Singhania, up to 4.42 lakh shares each by Nikhil Bothra and Nitin Bothra, upto 3.8 lakh shares by Rajjat Kumar Bothra and 7.26 million by Advantage Fund S41 and up to 6.31 lakh shares by Dynamic India funds S4. The proceeds from the issue will be used for financing capital expenditures for establishing manufacturing facilities, repaying loans, and addressing general corporate needs. As of June 2023, its outstanding borrowings stood at Rs 441.41 crore on consolidated basis. Founded in 2002 in Greater Noida, EPACK Durable specializes in producing room air conditioners and small household appliances, operating manufacturing plants in Dehradun and Bhiwadi, Rajasthan. It manufactures room air conditioners comprising window air conditioners, indoor and outdoor units, split inverter air conditioners. It also manufactures small domestic appliances which includes cooktops, mixer grinders and water dispensers. It manufactures heat exchanger cross flow fans axial fans sheet metal press parts etc.
RK Swamy Limited, the largest Indian majority-owned integrated marketing services provider offering a single-window solution for creative,a media, data analytics and market research services, has filed its draft red herring prospectus with market regulator SEBI. The initial public offering of the firm, which gained popularity as an ad agency, comprises a fresh issue of aggregating up to Rs 215 crore and an offer for sale of up to 8,700,000 equity shares by selling shareholders. The company was established by the late founder RK Swamy (referred to as the 'Grand Old Man of Indian Advertising' by Sam Balsara) who started RK SWAMY Advertising Associates in Chennai in 1973. The offer for sale comprises up to 1,788,093 equity shares by Srinivasan K Swamy, Up to 1,788,093 equity shares by Narasimhan Krishnaswamy, Up to 4,445,714 equity shares by Evanston Pioneer Fund L.P. and Up to 678,100 equity shares by Prem Marketing Ventures LLP. The funds raised through the IPO are proposed to be utilized for the funding of working capital, the funding of capital expenditure to be incurred for setting up a digital video content production studio, the funding of investment in IT infrastructure development of RK Swamy Limited, and the material subsidiaries, Hansa Research and Hansa Customer Equity, the funding of the setup of a new customer experience centres and computer aided telephonic interview centres as well as for general corporate purposes.
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The assets under management (AUM) of SIP (systematic investment plan) linked funds hit a record high of Rs 8.3 lakh crore in July 2023, the data from AMFI showed, driven by unfettered monthly inflows and duly supported by record high account additions. Consequently, the average portfolio value of the SIP investors was also at a record Rs 1,22,299 per SIP account. The average value of the SIP portfolio expanded for a fifth month in a row. The share of SIP AUM in the total mutual fund AUM reached a record high of 18% in July. It means nearly one-fifth of the total mutual fund (MF) AUM is backed by the SIP linked funds. The contribution of SIP linked funds to the total MF AUM has doubled in the past five years as the growth in the SIP AUM outperformed the overall MF growth by a wide margin.
Bandhan Mutual Fund has announced the launch of the Bandhan Nifty IT Index Fund, an open-ended equity scheme tracking Nifty IT index, with an aim to capture the growth potential of the Indian Information Technology (IT) sector. The IT sector is a significant catalyst for the Indian economy, facilitating revolutionary changes across different segments such as Banking, Finance, Education, Healthcare, Communication and Connectivity, Entertainment, Automobile, and E-Commerce. The Bandhan Nifty IT Index Fund is well-positioned to provide investors with a convenient, cost-effective route to benefit from the vast opportunities in this sector over the long term, a press release said. The New Fund Offer will open on August 18, and it will close for subscription on August 28.
HSBC Mutual Fund has launched HSBC Consumption Fund, an open ended equity scheme following a consumption theme. The new fund offer of the scheme is open for subscription and will close on August 24. The performance of the scheme will be benchmarked against Nifty India Consumption Index TRI. The scheme will be managed by Gautam Bhupal, Sonal Gupta (for overseas investments). The investment objective of the fund is to generate long-term capital growth from an actively managed portfolio of equity and equity related securities of companies engaged in or expected to benefit from consumption and consumption related activities. The minimum application amount is Rs 5,000 per application and in multiples of Re 1 thereafter. Minimum application amount is applicable for switch-ins as well. The scheme will offer a regular plan and direct plan – with growth and IDCW options. The scheme will invest 80- 100% in equities & equity related securities of companies engaged in or expected to benefit from consumption and consumption related activities, 0-20% in equity and equity related securities of companies other than consumption and consumption related activities, 0-20% in debt securities & money market instruments (including cash & cash equivalents, units of liquid and overnight mutual funds), and 0-10% in units of REITs and InvITs.
Parag Parikh Mutual Fund has filed a draft for an arbitrage fund. Parag Parikh Arbitrage Fund will be an open-ended scheme investing in arbitrage opportunities. The scheme will be benchmarked against Nifty 50 Arbitrage Total Return Index (TRI). The scheme will be managed by Rajeev Thakkar, Raunak Onkar, Raj Mehta, and Rukun Tarachandani. According to the scheme information document, the investment objective of the scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market, and by investing the balance in debt and money market instruments. The minimum application amount will be Rs 1,000 and in multiples of Re 1 thereafter. The minimum installment amount for monthly SIP will be Rs 1,000 and in multiples of Re 1 thereafter. The minimum installment amount for quarterly SIP will be Rs 3,000 and in multiples of Re 1 thereafter.The scheme's riskometer shows that the scheme will fall in the 'low' category.
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