In the week gone by, global stock markets moved higher after new data showed third-quarter GDP grew faster than expected and hinted at weakening inflation, encouraging investors across the globe to buy stocks linked to the health of the economy. To note, the chain-weighted price index, a cost-of-living measure that is adjusted to reflect changing consumer behavior, rose 4.1% for the quarter, well below the 5.3% estimate. Headline inflation rose 4.2%, down sharply from 7.3%, according to a gauge the Federal Reserve uses. Thus, there is a growing expectation that major central banks could start slowing the pace of interest rate hikes in coming months, while the dollar's retreat lifted commodities and pushed treasury yields lower. Data showed that business activity in the US manufacturing sector contracted slightly in early October with the preliminary S&P Global Manufacturing PMI declining to 49.9 from 52 in September. While the Services PMI slumped to 46.6 from 49.3 and the Composite PMI fell to 47.3 from 49.5. U.S. existing home sales fell for an eighth straight month in September, the longest streak of declines in 15 years. The U.S. trade deficit in goods widened sharply in September, likely as a strong dollar and softening global demand weighed on exports. The ECB for the third time raised policy rates by 75 basis points, and hinted at more such hikes in order to bring down inflationary pressures. The BOJ left unchanged its -0.1% target for short-term interest rates and its pledge to guide the 10-year bond yield around 0%. The Japanese central bank, however, revised up its inflation forecasts through 2024. Besides, it has said that it would purchase necessary amounts of Japanese government bonds at a fixed rate in order to keep 10-year JGB yields at 0%.Meanwhile, Japan's jobless rate rose to 2.6% in September, while the availability of jobs improved for the ninth straight month to two and a half year high. Policymakers at the Federal Reserve and the Bank of England meet early next month.
Back at home, domestic markets also moved higher on improved sentiment. There is an expectation that going forward, rate hikes will be smaller than the market consensus. A strengthening rupee further bolstered sentiment. With Q2 earnings results so far have been mixed, however, FPIs have come back into buy mode which is helping Indian markets to stabilize. The IMF has noted in a latest update that India's economy is likely to expand at 6.8% in 2022, revised down by 1.4% points since the April 2022 World Economic Outlook because of a weaker-than- expected recovery in the second quarter and subdued external demand. Going forward, market will continue to take the direction from both global as well as domestic stock markets.
On the commodity market front, CRB has regained some strength on weakness in dollar index. Bullion counter saw some gain on less hawkish statement by Fed, which sent dollar index below 110 levels. The central bank that use the euro raised its deposit rate by a further 75 basis points to 1.5% - the highest rate since 2009to ensure the timely return of inflation to its 2% medium-term inflation target. Oil prices hit a two-week high on Thursday as pressure from the dollar eased, while record-high U.S. crude exports suggested that global oil demand remained robust despite recent economic headwinds. The red metal, which marked a weak start to the week on concerns over slowing demand in China, also benefited from the prospect of supply shortages in the coming months. Spices traded mix last week. Global demand for Indian Jeera is stable that is supporting firmness in prices. Cotton too tried to consolidate after a sharp fall whereas cotton oil seeds cake prices nosedived.
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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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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Asset quality of the bank is improving with reduction in slippages and improvement in recoveries. According to the bank the credit growth is expected to be in the range to 15% to 18% auger well for the bank on the back of improving NIM which the bank expects to be around 3.85% to 4%. Thus, it is expected that the stock will see a price target of Rs.240 in 8 to 10 months’ time frame on a current P/BV of 2.11x and FY24 BVPS of Rs.113.52.
The company has emerged strongly from the impact of pandemic and according to the management of the company, the business trend continues to be positive with the Company delivering a strong performance with improvements in room rates and F&B. The quarter ended on an extremely positive note with ARRs for September at Rs. 9,070, the highest this year. The positive signals on revenues for the existing assets, combined with the culmination of on-going growth-based CAPEX initiatives, should accelerate the company’s performance in the near future. Thus, it is expected that the stock will see a price target of Rs.444 in 8 to 10 months’ time frame on a current P/BVx of 5.37x and FY24 BVPS of Rs.82.59.
The stock closed at Rs 1292.70 on 28th October, 2022. It made a 52-week low at Rs 842.00 on 29th November, 2021 and a 52-week high of Rs. 1297.40 on 28th October, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 1096.97
As we can see on chart that stock is trading in higher highs and higher lows, sort of rising channel which is bullish in nature. Apart from this, the stock has consolidated in range and formed a Triangle pattern and this too has given the pattern breakout along with high volume. So, follow up buying may continue in coming days. Therefore, one can buy in the range of 1270-1280 levels for the upside target of 1420-1450 levels with SL below 1200 levels.
The stock closed at Rs 2524.65 on 28th October, 2022. It made a 52-week low at Rs 1181.20 on 20th December, 2021 and a 52-week high of Rs. 2638.35 on 12th September, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 1916.37
Short term, medium term and long term bias are looking positive for the stock as it is trading in higher highs and higher lows on chart which is bullish in nature. Apart from this, stock is forming a “Bullish Pennant” pattern and likely to give the breakout of same. On the technical indicators front such as RSI and MACD are also suggesting buying in the stock. Therefore, one can buy in the range of 2505-2515 levels for the upside target of 2700-2750 levels with SL below 2390 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
In the last week, both broader indices (i.e. Nifty and bankNifty) moved inversed in intraday sessions and this confused the traders for direction. On weekly basis, Nifty gained more than 1% whereas bankNifty underperform the main indices i.e. Nifty. Auto sector outperformed the market whereas Pharma was laggard. From the derivative front, put writers are active at 17700 strike followed by 17500, 17600 whereas call writers are active at 18200 followed by 17800, 17900. Implied volatility (IV) of calls closed at 15.67% while that for put options closed at 16.85%. The Nifty VIX for the week closed at 16.60%. PCR OI for the week closed at 1.34 lower than the previous week. Technically both the indices ie Nifty and Bank Nifty still trading above 100 day's exponential moving average on daily charts. There is a negative diversion on daily chart in BankNifty suggested by RSI oscillator. On the higher side, 41800-42000 will act as a resistance zone whereas 40500-40300 act as support. In Nifty, 18000 will act as a psychological level and above this, 18200 will act as resistance. On downside, support is placed at 17500-17300 levels. We expect that volatility is likely to grip Indian markets and bias is expected to remain in favor of bear as far as Nifty holds below 17500 levels.
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**The highest call open interest acts as resistance and highest put open interest acts as support.
# Price rise with rise in open interest suggests long buildup | Price fall with rise in open interest suggests short buildup
# Price fall with fall in open interest suggests long unwinding | Price rise with fall in open interest suggests short covering
Turmeric NCDEX (Nov) futures are likely to trade higher in coming week mainly due to prevailing supply concerns. Supplies remained down due to series of long festive holidays during last week. Buying activities are expected to improve in the wake of rising wedding season demand. Stockists are active in the wake of weaker production outlook for upcoming season as production for year 2022-23 is estimated to drop by almost 5%-7% due to fall in acreages as per Industry estimates. Yield is also likely to drop due to heavy rainfall in Maharashtra, Andhra Pradesh and Telengana in month of Oct’22. Area under turmeric has fallen by 13% Y-o-Y in year 2022 in Andhra Pradesh and now fear of yield losses will keep the market sentiments up for turmeric. Overall area under turmeric in Andhra was Pradesh reported at 16921 Hec compared to 19376 Hectares of previous year. Considering the above fundamentals, prices are likely to hold the support of 7200 levels and likely to move up gradually towards the 8000 level in coming week.
Jeera NCDEX Nov prices are expected to trade higher on increased buying at local market. Tightness in supplies and increased festive buying will support firmness in prices. Export demand has been active due to global supply shortages wherein spices makers are covering their stocks in in wake of bleak supply outlook for next three months. Increased demand from China also supporting firmness in prices as China accounted for 45% of total Indian export of jeera in Aug’22. Out of the total export of 23.47 thousand tonnes in Aug’22, about 10.62 thousand tonnes of jeera were imported by China. Jeera Nov futures prices are likely to sustain above to the support level of 23700 and expected to move towards the resistance of 24700
Dhaniya NCDEX Nov Prices are expected to trade mixed to higher in near term mainly due to active festive buying amid emerging fear of disruption in imports. Ongoing geopolitical tension between Ukraine and Russia has raised the worries over schooled imports from Russia. Imports deals are being cancelled due to growing fear of supply disruption. India has imported about 15 thousand tonnes of dhaniya from Russia so far in year 2022. Festive demand of local dhaniya has improved that will support prices in near term. However, excessive gains in dhaniya will be limited as stockists will release their stocks as dhaniya prices are already ruling much higher compared to last year. Prices are likely to hold support of 11100 and will move towards the resistance of 11700.
Gold prices were headed for a second week of gains, however some weak U.S. economic data fanned expectations that the Federal Reserve might ease the aggressive pace of raising interest rates beginning December. The dollar index held steady after rising 0.7% overnight, although the benchmark 10-year Treasury yields were below the 4% threshold. The U.S. economy rebounded strongly in the third quarter amid a shrinking trade deficit, but the data overstated the nation’s economic health as domestic demand was the weakest in two years. The Fed is widely expected to announce another 75 basis-point rate increase at its meeting next week, although the central bank is seen slowing its aggressive pace in December. The European Central Bank raised interest rates by 75 basis points and put the reduction of its bloated balance sheet on the agenda, but said “substantial” progress had already been made in its bid to fight off a historic surge in inflation. With rising fears of a recession, investors increasingly expect the Fed to slow rate hikes and this is providing support to gold. Silver prices also posted second weekly gains and follow the footprints of Gold. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.34% to 925.20 tonnes. On the technical front, Gold price on COMEX may continue to trade in the wider range of $1620-$1690. Silver prices on COMEX look positive and may trade in the range of $17.600-$20.200. Ahead in the week, MCX Gold prices may witness some positive move and may take support near 49700 and could face resistance near 51800 whereas silver may take support near 55400 and could face resistance near 61000 levels.
Crude Oil added sharp gains, boosted by optimism generated by record U.S. crude exports as well as doubts about the effectiveness of the proposed price cap on Russian oil. Figures showed record U.S. crude exports, a hopeful sign for demand, even as crude stocks rose. The U.S. dollar weakened on hopes that interest-rate hikes may become less aggressive. Worries about Chinese demand limited the rally. Global investors dumped Chinese assets early this week on fears about growth, with the economy beset by a zero-COVID policy, a property crisis and falling market confidence. China is the world's biggest energy consumer. Although the dollar reversed early losses that saw it touch a one-month low, it remained pinned near October's trough. Hopes that the U.S. Federal Reserve will shift to less aggressive interest rate increases have been weighing on the U.S. currency. A weaker dollar makes oil cheaper for holders of other currencies and tends to reflect greater investor appetite for risk assets. Meanwhile, U.S. and Western officials are said to be finalizing plans to impose a cap on Russian oil prices, but doubts are emerging about how effective such a policy will be. Ahead in the week prices may witness both side movements and it may take support near 6980 and could face resistance near 7480 levels. Natural gas prices witnessed positive move but failed to sustain above 50 day simple moving averages. Based on present formation prices may resume the fall as the correction seems competed. Weather models continue to paint a generally bearish pattern over the next couple of months. Ahead in the week Natural gas prices may witness selling from higher levels and may take support near 420 and could face resistance near 530 levels.
Base metals may trade with bearish bias as the worries over demand in top consumer China amid rising coronavirus cases and a looming global recession which could threaten metals demand. Chinese cities from Wuhan in central China to Xining in the northwest are doubling down on COVID-19 curbs, sealing up buildings, locking down districts and throwing millions into distress in a scramble to halt widening outbreaks. However the prices may rose on hopes for a slower pace of U.S. interest rate hikes that may boost global stock markets and weaken the dollar. Copper may trade in the range 630-675 levels. Available LME copper inventories, those not earmarked for delivery, have tumbled 68% over the past three weeks. The China produced 946,000 tonnes of refined copper in September, up 5.8% from a year ago, according to data from the National Bureau of Statistics. Zinc can trade in the range of 250-280. Lead can move in the range of 170-182. Production cuts in Europe because of the energy crisis and low inventories have sustained zinc prices over the last year, but headwinds emanating from growth and demand slowdown are now a bigger challenge for the market. Aluminum may trade in the range of 190-207. China’s September output of aluminium rose 9.3% year-on-year to 3.42 million tonnes, according to data from the National Bureau of Statistics. Commodity trader Glencore will buy aluminium from Rusal next year according to its contract with the Russian producer, and so far only about 10% of its current customer base is looking elsewhere. Steel long is likely to trade in the range of 47000-48800 levels on NCDEX.
Cotton MCX Nov prices are expected to trade mixed to higher as post Diwali demand is likely to improve. Millers have started showing interest in buying after continuous fall in cotton prices. Lingering fear of yield losses in central part of India emerging after recent heavy rainfall in Maharashtra, Telangana and Gujarat is likely to support firmness in prices. Harvesting activities have been delayed along with the yield losses. At the same time, improved export prospects backed by record depreciation of Indian rupee and rising seasonal demand of cotton are also likely to support recovery in cotton prices in coming week. Seasonal trend of export shows that about 30-40% of total cotton export from India is realized in Oct- Dec. Expected rise in export demand from Bangladesh and other SEA nations will restrict the major losses. Prices are likely to find support 28500 and will move up gradually towards 32500 in near term.
Cotton seed oil cake NCDEX (Dec) futures are likely to trade higher due to emerging buying in domestic market. Apart from that, cotton seed oil cake prices will track the gain in cotton prices and will move accordingly as cotton prices are moving up on emerging fear of crop losses due to recent rainfall in major cotton growing states. Prices are likely to hold the support of 2300 and will move towards 2600 in coming week.
Guar seed Nov futures are likely to trade sideways to higher due to emerging buying in local market that will spark short covering at futures platform. Buying activities has been improving at lower level that will prompt market participants to cover short positions. However, gains will be limited due to bumper crop outlook. Guar seed prices may hold the support of 4500 and is likely witness recovery towards 5000.
Mentha oil (Nov) is likely to trade on sideways due to limited trade at physical market. Prices are correcting down due to higher stocks estimates wherein buyers are active at every dip in prices. Going forwards losses are limited due to lower production. Prices are likely to hold support of 960 and will move gradually towards 1010 in near term.
Castor seed (Nov) prices are likely to trade down due to subdued buying in local market. Crushers are away from bulk buying in wake of sluggish demand of castor oil. However, tighter pipeline stocks and lower production for year 2022-23 will cap the losses. Going forward, castor seed prices are likely to hold the support of 6950 and will face the resistance of 7400 in near term.
It closed at Rs. 50737.00 on 27th Oct 2022. The 18-day Exponential Moving Average of the commodity is currently at Rs 50616.71. On the daily chart, the commodity has Relative Strength Index (14-day) value of 47.429. Based on both indicators, it is giving a sell signal.
One can sell near Rs. 50700 for a target of Rs. 49700 with the stop loss of 51100.
It closed at Rs. 484.60 on 27th Oct 2022. The 18-day Exponential Moving Average of the commodity is currently at Rs 513.50. On the daily chart, the commodity has Relative Strength Index (14-day) value of 32.831. Based on both indicators, it is giving a sell signal.
One can sell near Rs. 495 for a target of Rs. 440 with the stop loss of 515.
It closed at Rs. 7472.00 on 27th Oct 2022. The 18-day Exponential Moving Average of the commodity is currently at Rs 7443.35. On the daily chart, the commodity has Relative Strength Index (14-day) value of 48.613. Based on both indicators, it is giving a sell signal.
One can sell near Rs. 7500 for a target of Rs. 7100 with the stop loss of 7650.
NOTE: *M.High / M.Low stands for Monthly High / Monthly Low
In the week gone by, CRB regained some strength on weakness in dollar index. Bullion counter saw some gains on less hawkish statement by Fed, which sent dollar index below 110 levels. Gold prices traded near their highest level in two weeks on Thursday, with metal markets rallying as the dollar retreated on growing expectations that the Federal Reserve will soften its hawkish stance this year. The greenback is now trading at its weakest level in over one month, and is nearly 5% off a twenty-year high hit in September. Energy counter too revived. Oil prices hit a two-week high on Thursday as pressure from the dollar eased, while record-high U.S. crude exports suggested that global oil demand remained robust despite recent economic headwinds. U.S. crude exports surged to a record-high 5.1 million barrels a day, pointing to some resilience in global demand despite rising inflation and interest rates. The White House released about 3.4 million barrels of crude from the SPR last week, bringing the stockpile to its lowest level since 1984. Base metals prices appreciated last week. The red metal, which marked a weak start to the week on concerns over slowing demand in China, also benefited from the prospect of supply shortages in the coming months. Although China's GDP rebounded at a faster-than-expected pace in the third quarter, but strict COVID-19 curbs, a deepening property crisis and global recession risks are challenging Beijing's efforts to foster a robust revival over the next year. Supply uncertainties continued to overhang on the market with the LME under discussion of blocking Russian metal from its trading system, and also possible restrictions to be implemented by the U.S. on imports from Russia. Natural gas markets have rallied as we have been a bit overdone to the downside.
Spices traded mix last week; jeera and dhaniya prices augmented whereas turmeric prices slipped on profit booking. However, turmeric exports surged up by 5% Y-o-Y in Aug’22 and increased by 15% Y-o-Y so far in year 2022. Firmness in relative spices counter and active festive and wedding season demand is likely to support firmness in prices. However, gains are likely to be limited due to rising imports that has filled the supply gap. Global demand for Indian Jeera is stable that is supporting firmness in prices. Guar counter saw a pause in the fall on revival in crude oil prices amid emerging demand from stockists. Cotton too tried to consolidate after a sharp fall whereas cotton oil seeds cake prices nosedived. Rising winter season demand for cotton helped prices to recover from recent lows. Apart from that, gains in cotton prices drove by delay in harvest activities in Maharashtra and Telangana due to recent rainfall. Castor prices saw minor fall due to sluggish demand. Bumper production outlook and sluggish export demand is likely to weigh on prices.
The ECB is the central bank of the 19 European Union countries which use the euro. Its main task is to maintain price stability by making sure that inflation remains low, stable and predictable. The ECB use a range of monetary policy tools to keep prices stable. This, in turn, supports the economy, people’s incomes and job creation.
Euro Zone is in grim situation
The global economy is currently passing through a period of extreme uncertainty and increasing challenges, amid ongoing high inflation levels, monetary tightening by major central banks, high sovereign debt levels in many regions. Euro zone is facing more catastrophe than any part of world as the Russia-Ukraine war created the adverse geopolitical situation. Soaring energy and food prices, and supply bottlenecks are still driving up inflation. Price pressures have continued to strengthen and broaden across the economy and inflation may rise further in the near term. Looking ahead, ECB have significantly revised up their inflation projections and inflation is now expected to average 8.1% in 2022, 5.5% in 2023 and 2.3% in 2024.
Interest hike to control inflation
The central bank that use the euro raised its deposit rate by a further 75 basis points to 1.5% - the highest rate since 2009to ensure the timely return of inflation to its 2% medium-term inflation target. Until as recently as July, ECB rates had been in negative territory for eight years. With euro zone inflation hitting 9.9%, the ECB also took the first step toward shrinking its 8.8 trillion euro balance sheet, a move that is likely to raise borrowing costs further and may act as a sort of disguised rate hike.
Slowdown is reality
Recent data point to a substantial slowdown in euro area economic growth, with the economy expected to stagnate later in the year and in the first quarter of 2023. Very high energy prices are reducing the purchasing power of people’s incomes and, although supply bottlenecks are easing, it is still constraining economic activity. In addition, the adverse geopolitical situation, especially Russia-Ukraine conflict, is weighing on the confidence of businesses and consumers. This outlook is reflected in the latest ECB projections for economic growth, which have been revised down markedly for the remainder of the current year and throughout 2023. ECB now expect the economy to grow by 3.1% in 2022, 0.9% in 2023 and 1.9% in 2024.
Asset purchase programme
The Governing Council of ECB intends to continue reinvesting, in full, the principal payments from maturing securities purchased under the APP for an extended period of time past the date when it started raising the key ECB interest rates and, in any case, for as long as necessary to maintain ample liquidity conditions and an appropriate monetary policy stance.
With euro zone inflation hitting 9.9%, the ECB also took the first step toward shrinking its 8.8 trillion euro balance sheet, a move that is likely to raise borrowing costs further and may act as a sort of disguised rate hike.
Refinancing operations
The Governing Council will to monitor bank funding conditions and ensure that the maturing of operations under the third series of targeted longer-term refinancing operations does not hamper the smooth transmission of its monetary policy. In a move which may be fought commercial banks, it curbed the subsidy it provides to such lenders through 2.1 trillion euros worth of ultra-cheap three-year loans called Targeted Longer-Term Refinancing Operations.
The U.S. dollar stabilized ahead of key events, while the Japanese yen edged lower after the Bank of Japan maintained its ultra-low interest rates and dovish stance. The dollar saw some strength on Thursday in the wake of a sharp fall in the euro, which has the heaviest weighting in the index, after the European Central Bank raised rates by 75 basis points, as expected, but took a more dovish tone on its rate outlook. However, this followed previous weakness as expectations for a pivot by the Federal Reserve to a less aggressive pace of monetary tightening have increased. The BOJ left unchanged its -0.1% target for short-term interest rates and its pledge to guide the 10-year bond yield around 0%. The Japanese central bank, however, revised up its inflation forecasts through 2024, indicating more near-term pain for the Japanese economy and piling more pressure on the currency. EUR/USD pushing close to parity after sharp losses overnight as the European Central Bank hinted at a less aggressive pace of rate hikes, dropping a reference to increasing rates "over the next several meetings" that had been in its September statement. While, the Fed is widely expected to raise rates by 75 basis points at its meeting next week, traders are eyeing guidance in terms of the future rate hike path. The RBI MPC’s additional meet on Thursday is likely to discuss the committee's report to the government on failure to meet the inflation targeting mandate.
USDINR (NOV)is trading above its major Exponential Moving Average indicating upward trend for short term view. The Pair has major support placed around 81.92 levels while on higher side resistance is seen around 83.33 levels. The 21-day Exponential Moving Average of the USD/INR is currently around 82.09 Levels. On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 57.38.
One can buy at 82.25 for the target of 83.25 with the stop loss of 81.75.
GBPINR (NOV)is trading between its major Exponential Moving Average indicating sideways trends for short term view. The pair has major support placed around 93.70 levels while on higher side resistance is seen around 96.00 levels. The 21-day Exponential Moving Average of the GBP/INR is currently around 93.10. On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 63.04.
One can sell at 95.50 for the target of 94.00 with the stop loss of 96.00.
EURINR (NOV) is trading above its major Exponential Moving Average indicating upward trend for short term view. The pair has major support placed around 82.00 levels while on higher side resistance is seen around 83.20 levels. The 21-day Exponential Moving Average of the EUR/INR is currently around 81.05. On the daily chart, the EUR/INR has Relative Strength Index (14-day) value of 63.38.
One can buy at 82.25 for the target of 83.25 with the stop loss of 81.75.
JPYINR (NOV) is trading between its major Exponential Moving Average indicating sideways trends for short term view. The pair has major support placed around 54.80 levels while on higher side resistance is seen around 57.20 levels. The 21-day Exponential Moving Average of the JPY/INR is currently around 56.00. On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 62.63.
One can sell at 56.50 for the target of 55.50 with the stop loss of 57.00.
Fusion Micro Finance's initial public offering will kick off for subscription on Wednesday, November 2. The non-banking finance company (NBFC) will sell its shares in the range of Rs 350-368 apiece. Fusion Micro Finance is engaged in providing financial services to women entrepreneurs belonging to the economically and socially deprived section of society. The issue consists of fresh equity shares worth Rs 600 crore with an offer for sale (OFS) of up to 13,695,466 equity shares from existing shareholders and promoters of the company. Promoter Devesh Sachdev is looking to sell up to 6.5 lakh equity shares, Mini Sachdev up to 1 lakh equity shares, and Creation Investments Fusion and Honey Rose Investments are looking to offload 14 lakh equity shares each. Oikocredit Ecumenical Development Cooperative Society UA will sell around 66.1 lakh shares, while Global Impact Funds SCA SiCAR will sell around 35.4 lakh shares. The New Delhi-headquartered shadow lender's issue can be subscribed till Friday, November 4 with a bid of a minimum of 40 equity shares and then in its multiple thereof.
The initial public offering of Global Health Limited (GHL) will open for subscription on November 3, Thursday and the company has decided to sell its shares in the range of Rs 319-336 apiece. Global Health operates and manages hospitals under the Medanta brand and the issue will remain open for subscription till November 7. Investors can bid for a minimum of 44 equity shares and then multiples thereof. The IPO consists of a fresh issue of equity shares aggregating to Rs 500 crore and an offer for sale (OFS) of up to 5.08 crore equity shares from its promoters and existing shareholders. As a part of the OFS, Anant Investments, an affiliate of private equity major Carlyle Group and Sunil Sachdeva (jointly with Suman Sachdeva), will offload equity shares. The net proceeds from the fresh issue will be utilized towards repayment or prepayment of borrowings, in full or part, of the subsidiaries, GHPPL and MHPL and general corporate purposes. Founded by Naresh Trehan, a renowned cardiovascular and cardiothoracic surgeon, Global Health is a leading private multi-speciality tertiary care provider in the North and East regions of India. Backed by private equity investors such as Carlyle Group and Temasek, Global Health operates a network of five hospitals under the 'Medanta' brand in Gurugram, Indore, Ranchi, Lucknow and Patna, with one hospital under construction in Noida. Kotak Mahindra Capital Company, Credit Suisse Securities (India), Jefferies India and JM Financial are the book-running lead managers to the IPO, whereas KFin Technologies is the registrar to the issue.
Utkarsh Small Finance Bank has received capital markets regulator Sebi's go ahead to raise Rs 500-crore through an Initial Public Offering (IPO). The Varanasiheadquartered Small Finance Bank's (SFB) IPO is a complete fresh issue of shares and the entire proceeds will go to the lender, according to Draft Red Herring Prospectus. The lender may consider issue of securities aggregating up to Rs 100 crore in a pre-IPO placement round. If such placement is undertaken, the fresh issue size will be reduced. Going by the draft papers, proceeds from the fresh issue will be utilised to augment the lender's Tier 1 capital base to meet future capital requirements. Incorporated in 2016, Utkarsh commenced operations in 2017 and its product suite includes a range of deposit products, including saving accounts, salary accounts, current accounts, recurring and fixed deposits and locker facilities. As on March 2022, its operations are spread across 22 states and Union Territories with 686 banking outlets and 12,617 employees serving 3.14 million customers majorly located in rural and semi urban areas primarily in the states of Bihar, Uttar Pradesh and Jharkhand. Its gross loan portfolio grew from Rs 6,660.95 crore as of March 31, 2020 to Rs 10,630.72 crore as of March 31, 2022, while the total deposits almost doubled from Rs 5,235.21 crore to Rs 10,074.18 crore during the same period. ICICI Securities and Kotak Mahindra Capital Company are the book running lead managers to the issue.
IndiaFirst Life Insurance has filed its draft red herring prospectus (DRHP) with the capital markets regulator Sebi to launch its initial public offering (IPO). Bank of Baroda promoted IndiaFirst Life Insurance Company is a private life insurance player. The Mumbai-based company is among the fastest-growing private life insurers in terms of new business-insured retirement plan. According to the DRHP, the issue includes a fresh issue of up to Rs 500 crore along with an offer for sale of up to 14,12,99,422 equity shares by the promoters and existing shareholders of the company. Bank of Baroda will sell 8,90,15,734 equity shares, whereas Union Bank of India will sell 1,30,56,415 equity shares in the OFS. Carmel Point Investments India would offload 3,92,27,273 equity shares during the primary stake sale. Bank of Baroda, India’s third largest PSU bank holds a 65% stake in the company followed by Warburg Pincus affiliate Carmel Point Investments India which holds 26% and Union Bank of India which holds a 9% stake. The company, in consultation with merchant bankers, may consider a private placement on a preferential basis or a rights issue aggregating up to Rs 100 crore. If such a placement is completed, the fresh issue size will be reduced. ICICI Securities , Ambit, BNP Paribas, BOB Capital Markets, HSBC Securities and Capital Markets (India), Jefferies India and JM Financial are the book-running lead managers and KFin Technologies is the registrar to the offer.
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The government is planning to launch the fourth tranche of Bharat Bond ETF, India's first corporate bond exchange traded fund, in December, an official said. The funds raised would be utilised for undertaking capital expenditures by public sector enterprises. In December last year, the government had launched the third tranche with a base issue size of Rs 1,000 crore. It was over-subscribed 6.2 times with bids worth Rs 6,200 crore coming in. The maiden offering of Bharat Bond ETF was launched in 2019, helping CPSEs raise Rs 12,400 crore. In the second and third tranches, it had raised Rs 11,000 crore and Rs 6,200 crore, respectively. The ETF has raised Rs 29,600 crore in its three offerings so far. Bharat Bond ETF invests only in 'AAA'-rated bonds of public sector companies. Edelweiss Asset Management is the fund manager of the scheme.
Bharat Bond Exchange Traded Funds, a central government initiative, have crossed the Rs 50,000 crore asset under management mark in just two-and-a-half years, Edelweiss Mutual Fund said on Wednesday. The fund house manages Bharat Bond Exchange Traded Funds (ETFs). The overall passive debt category has crossed Rs 1.15 lakh crore mark at the industry level - this growth was kickstarted by the launch of the first tranche of the Bharat Bond ETF in December 2019, according to a statement. So far, five tranches of Bharat Bond ETFs have been launched. There are 5 different maturities offered by the fund ETFs -- 2023, 2025, 2030, 2031, and 2032 -- which can help investors to choose the right maturity according to their needs.
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