In the week gone by, global market looked optimistic after US Treasury Secretary I Steve Mnuchin proposed a new $916 billion stimulus bill, $8 billion more than the bipartan measure currently being drafted. Actually, attention on the stimulus package grew sharper after new data showed the number of Americans filing firsttime claims for jobless benefits jumped to near three-month high, as spiking COVID19 cases weighed on economic activity. European markets also focused on the progress of post-Brexit trade talks between UK and EU. Meanwhile, the European Central Bank unveiled its latest economic forecasts after providing more stimulus to help eurozone members withstand the impact of the coronavirus pandemic. On Thursday, the ECB kept the interest rates unchanged. Besides, the ECB boosted its main virus-fighting tool, the pandemic emergency bond-buying programme (PEPP), by 500 billion euros ($600 billion) to 1.85 trillion euros and extended the scheme from June 2021 to March 2022. Japan's PM announces $708 billion in fresh stimulus , including fiscal spending worth around 40 trillion yenJapan's economy expanded at a 22.9% annual rate in the last quarter, as businesses and personal spending recovered from pandemic-related shocks in the spring and early summer. Another data showed that Japan’s core machinery orders rebounded sharply in October from the previous month’s drop.
Markets, at home, moved higher on hopes of a fast recovery from the coronaviruscaused slowdown and as progress on COVID-19 vaccines boosted investor sentiment amid constant foreign fund inflows. On Friday Sensex hit new lifetime highs backed by buying in PSU Banking, media and metal stocks, amid positive global markets. Now investors are eyeing on Brexit trade talks and stimulus negotiations in the US. Nomura, however, projected India to be the fastest-growing Asian economy in the calendar year 2021, estimating a 9.9 percent GDP growth. A data showed that India’s imports from China dropped 13% in 2020, exports rose 16%. Going forward, markets being at the highest level, any unfavourable events, domestic or global, can result in temporary profit booking.
On the commodity market front, ambiguity persisted in commodities market amid confusion over stimulus in US and Vaccination progress. Some commodities stuck in range whereas some witnessed wild swings. Base metals saw superb upside. Copper and nickel crossed 600 and 1300 respectively. Buy at dip should be the good strategy for base metal counter. Bullion counter gained on fall in dollar index but witnessed limited gain on early arrival of vaccine than expectation. However hopes of more US stimulus kept gold supporting at lower levels. Gold and silver should trade in a range of 48500-50500 and 62000-66000 respectively. Crude should trade with positive bias. Indian exchanges are getting one more tool as MCX is launching rubber futures. Employment Change, Core Inflation Rate and Inflation Rate of UK, Core Inflation Rate and Inflation Rate of Canada, Retail Sales, Markit Manufacturing PMI Flash, and FOMC Economic Projections US, GDP of New Zealand, Employment Change and Unemployment Rate of Australia, BoE Interest Rate Decision, BoJ Interest Rate Decision etc. are important triggers for the week.
SMC Global Securities Ltd. (hereinafter referred to as “SMC”) is a registered Member of National Stock Exchange of India Limited, Bombay Stock Exchange Limited and its associate is member of MCX stock Exchange Limited. It is also registered as a Depository Participant with CDSL and NSDL. Its associates merchant banker and Portfolio Manager are registered with SEBI and NBFC registered with RBI. It also has registration with AMFI as a Mutual Fund Distributor.
SMC is a SEBIregistered Research Analyst having registration number INH100001849. SMC or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing /dealing in securities market.
SMC or its associates including its relatives/analyst do not hold any financial interest/beneficial ownership of more than 1% in the company covered by Analyst. SMC or its associates and relatives does not have any material conflict of interest. SMC or its associates/analyst has not received any compensation from the company covered by Analyst during the past twelve months. The subject company has not been a client of SMC during the past twelve months. SMC or its associates has not received any compensation or other benefits from the company covered by analyst or third party in connection with the research report. The Analyst has not served as an officer, director or employee of company covered by Analyst and SMC has not been engaged in market making activity of the company covered by Analyst.
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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.
Driven by its dominant position in the domestic market, high cash flow from the core business, and efficient and integrated operations, the company continues to deliver record volumes despite the challenges posed by the pandemic. The management is setting up Hindustan Zinc for its next phase of growth and is confident to deliver superior value. Thus, it is expected that the stock will see a price target of Rs.280 in 8 to 10 months time frame on a four year average P/E of 13.24x and FY22 EPS of Rs. 21.14.
The bank has exhibited healthy improvement in operating efficiency driven by a top-line growth. It has also showed healthy improvement in net interest margin. The business growth of the bank is ahead of the industry and every segment is showing good growth and targeting deposit growth of 8-10% and advances growth of 7.5% for FY2021. The bank also aims to reduce gross NPA ratio below 12% and net NPA ratio below 2.5% by March 2021.Thus, it is expected that the stock will see a price target of Rs.66 in 8 to 10 months’ time frame on a target P/BVx of 0.48x and FY22 BVPS (Book Value per Share) of Rs.137.09.
The stock closed at Rs 552.20 on 11th December 2020. It made a 52-week low at Rs 207.50 on 07th April 2020 and a 52-week high of Rs. 565.50 on 04th December, 2020. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 443.40.
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 weekly charts. Apart from this, it is forming an “Inverted Head and Shoulder” pattern on weekly charts, which is bullish in nature. Last week, stock consolidated in narrow range and has managed to close on verge of breakout of pattern along with high volumes so buying momentum may continue for coming days. Therefore, one can buy in the range of 540-545 levels for the upside target of 620-640 levels with SL below 505.
The stock closed at Rs 527.35 on 11th December, 2020. It made a 52-week low of Rs 161.65 on 13th March, 2020 and a 52-week high of Rs. 573.05 on 22nd June, 2020. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 442.21.
After registering yearly low of 162 levels, stock recovered sharply and was traded in higher highs and higher lows on weekly charts. Then after stock consolidated in narrow range and formed a “Bull Pennant” pattern on charts and has given the breakout of same by gaining over than 4.5% in last week. Moreover, technical indicators such as RSI and MACD are also suggesting buying for the stock. Therefore, one can buy in the range of 515-520 levels for the upside target of 570-590 levels with SL below 480.
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 continued their winning streak for the sixth consecutive week, boosted by banking & FMCG space along with strong rally in mid-caps. Nifty indices surpassed above 13500 mark while Bank Nifty also manages to close above 30500 mark. The wild swings were witnessed last week in Nifty as from derivative front call writers at 13600 strike tried to cap any sharp gains in Nifty, but bulls somehow manage to keep index well above 13500 mark. The Implied Volatility (IV) of calls closed at 15.68% while that for put options closed at 16.07. The Nifty VIX for the week closed at 18.71%. PCR OI for the week closed at 1.84. From technical front secondary oscillators suggests that volatility is likely to grip markets in coming week as well. However we expect the bias should remain in favor of bulls as far Nifty is holding above 13300 mark. For Bank Nifty 30000 mark would as key psychological support. On higher side a decisive move above 13600 mark would add further upside momentum into the index which could take it towards 13750 levels as well.
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**The highest call open interest acts as resistance and highest put open interest acts as support.
# Price rise with rise in open interest suggests long buildup | Price fall with rise in open interest suggests short buildup
# Price fall with fall in open interest suggests long unwinding | Price rise with fall in open interest suggests short covering
Turmeric futures (Apr) is expected to consolidate in the range of 5800-6050 and trade with an upside bias. It is reported that the Spices Board has held seven online meets so far to strengthen the supply chain. Encouraged by the positive impact of buyer-seller meets (BSM), the Spices Board is going ahead with more such events in the current fiscal to support the Indian spice industry. The online BSMs were useful in conveying to the stakeholders the surge in demand for Indian spices, especially those like turmeric with immune-boosting properties. The buyer-seller meets, some of which were organised in association with industry associations, in general have helped link new supply sources with the mainstream markets The GI-tagged spices including the yellow spice were in high demand. The upcoming BSMs include events focused on organic spices from Sikkim and spices of Karnataka, Meghalaya and Maharashtra, among others. Jeera futures (Jan) is expected to trade with a downside bias and witness sell on rise, facing resistance 14100. Demand from domestic stockists has slowed down as they are waiting for the new crop to hit the market. The exporters are also making purchases only for immediate requirements. This season, the progressive area of Rabi 2020-21 under cumin in Gujarat is 3,81,055 hectares as compared to 2,77,017 hectares during 2019-20 and almost near to 4,06,141 hectares of last three year average. The upside momentum of dhaniya futures (Jan) may remain limited as it can face resistance near 6200. This season, the progressive area of Rabi 2020-21 under coriander in Gujarat has reached 1,15,969 hectares as compared to 47,027 hectares during 2019-20 and near to double of 62,641 hectares of last three year average.
Bullion prices edged lower, as a breakthrough in long-running U.S. fiscal stimulus negotiations remained elusive. The other reason behind the fall is optimism over COVID-19 vaccine developments led investors to opt for riskier assets such as equities. The higher risk appetite seems to be gaining the upper hand again, and coupled with the vaccine news, it seems to be weighing on gold prices. While a fresh attempt in the United States to agree on a new fiscal support package supported gold on Tuesday as a hedge against potential inflation, on Wednesday the news acted chiefly as an additional trigger for risk sentiment. On the stimulus front, U.S. President Donald Trump’s administration proposed a $916 billion aid package. Congressional lawmakers were still working on resolving differences on the inclusion of business liability protections and state and local government aid. Investors are also looking forward to the U.S. Federal Reserve’s two-day policy meeting ahead for clues on the direction of monetary policy. A dovish FOMC, particularly in the scenario where they look to cap rates in the longer end of the U.S. yield curve, should relight the gold rally. On Europe front, an attempt to aid an euro zone economy suffering due to the second wave of the pandemic, the ECB eased policy again and kept government, corporate borrowing costs at record lows. Ahead in this week, we may continue to witness huge volatility and gold may trade in the range of 47500 -50300 and Silver may trade in the range of 60000- 65100. Whereas on COMEX, gold may trade in the range of $1790-$1870 and Silver may trade in the range of $22.70-$25.80.
Soybean futures (Jan) may consolidate in the range of 4200-4400 levels and trade with an upside bias. The market sentiments have turned optimistic as the exporting soyameal from India has once again become competitive, thereby improving the export prospects as against last year. As per SOPA’s latest estimates, soyameal exports for the oil year 2020-21 is likely to be about 14 lakh tonnes (lt) as against 6.46 lakh tonnes in the same period last year. Exports for October-November have more than doubled to 3.25 lt (1.46 lt) the main destinations being Belgium, France and Iran. In the international market, bullishness is persisting in this counter as in U.S. the animal feed makers have started to hoard supplies due to the fierce competition for their main ingredient, with some even turning to floating storage on river barges. RM Seed futures (Apr) taking support near 5500, may witness an upside momentum till 5800 levels. Lower level buying accompanied with shortage in supply side may lend support. However, a word of caution should be kept in mind as the sowing of this oilseed is ongoing and statistics of higher sowing may restrict the gains. The edible oils are expected to witness a rally as the demand for edible oils from the home segment has been stable, and a gradual steady increase in demand is being seen from the HoReCa segment. A supply crunch in palm oil is being estimated after Malaysia's palm oil end-stocks in November fell to a more than three-year low. Saying this, soy oil futures (Jan) can test 1090 on the higher side, while CPO futures (Jan) may gain for the second consecutive week making its way to 930 levels, respectively.
Crude oil prices climbed nearly 6% with WTI surging near to $48 a barrel for the first time since early March, fueled by hopes of a faster demand recovery as countries start to roll out COVID-19 vaccines. The bullish sentiment offset a large increase in U.S. crude inventories that showed there was still ample supply available. Britain began vaccinations this week and the United States could start inoculations as soon as this weekend. Canada approved its first vaccine and said initial shots would be delivered starting soon. Both benchmarks reached their highest levels since March, with the contracts posting session highs of $51.06 a barrel and $47.74 a barrel, respectively. However, their relative strength indexes showed both had moved into overbought territory. Concern over an attack on an Iraqi oilfield also lent support. Two wells at a small field were set ablaze by explosives on Wednesday, but overall production from the field was not affected. OPEC+ will further ease its supply restrictions in January by adding an extra 500,000 barrels per day although the easing is more gradual than previously agreed, to provide additional support to the market. Ahead in this week crude price may witness huge volatility within the range of 3280-3640, where buying on dips would be strategy. Natural gas futures edged higher, due to technically oversold conditions and uncertainty over the overnight forecasts. Despite the small gains, the fundamentals remain bearish especially with the longer-term outlook predicting milder temperatures throughout December. Ahead in this week we may expected that the trend remain bearish where support is seen near 180/172 and resistance is seen near 195/225.
Cotton futures (Dec) is expected to remain trapped in the range of 19800- 20600. The upside shall remain capped despite bullishness persisting in the international market due to two factors; firstly, the Cotton Association of India (CAI) informed that large stocks are still with the CCI, Maharashtra Federation, MNCs, Ginners and MCX which are estimated to be about 91.57 lakh bales as on November 30. Secondly, fears of a fresh Covid wave have led to a rise in daily cotton arrivals to 2.5-3.00 lakh bales, with farmers wanting to sell their stocks. It is being estimated that by the end of December, nearly 45- 50% of the total crop would arrive in the market, causing pressure on prices. Chana futures have witnessed a correction of about 19% from the high of 5670 in the past three months owing to soaring acreage in this ongoing Rabi season. Secondly, the market intervention by the government through state agency Nafed, resulted in pulling the prices downwards. However, going ahead we might see the January contract taking support near 4600, reacting positive to the news that Nafed to sell chana PSS Rabi- 2020 Stock from all states at or above base price of Rs 5100 per qtl. in the month of December, 2020. Guar seed and guar gum futures (Jan) are expected to trade with a positive bias taking support near 3900 and 5790 levels, respectively. Brent crude oil prices touching $50 a barrel for the first time since March on vaccine optimism and increase in oil rigs since past two months from 189 to 246 is giving an indication that exports of these commodities could catch pace in days to come.
Base metals may trade with positive bias. The start of COVID-19 vaccination in many countries and upbeat economic data from China may support the industrial metals. However, the lack of progress in releasing Covid-19 aid package in US may trigger profit booking at higher level. Copper may test to 620 by taking support near 595. China’s copper smelters produced 1% less copper cathode in November than in the previous month due to maintenance in Shandong, Anhui and other regions, according to research house Antaike. European Central Bank announced a fresh round of stimulus in the form of more asset purchases and ultra cheap loans to banks, to support the economy amid the heightened uncertainty surrounding the coronavirus pandemic. Zinc may trade in the range of 215-225 levels while Lead can move in the range of 158-165 levels. Mine disruptions have helped lead prices rally to 19 month highs but plunging imports of the metal in top consumer China will mean an oversupplied market that will cap further gains despite sustained demand from the battery sector. Nickel may trade with bullish bias in the range of 1280-1330 levels. Nickel prices are getting support from resurgent demand from Chinese steel mills and a rapid rally in iron ore futures fuelled a rush of speculative buying. Demand for battery-grade nickel continues to surge, and non-stainless steel demand for nickel is likely to grow by 8% to 10% in 2020 and 2021. Aluminum may move in the range of 163-170 levels. Winter restrictions have started to hit some Chinese alumina operations, fuelling the prices of the metal. Total alumina imports in China in the first 10 months rose by 205% to 3.1 million tons.
GOLD MCX (FEB) contract closed at Rs. 49077.00 on 10th Dec’2020. The contract made its high of Rs. 52648.00 on 09th Nov’2020 and a low of Rs. 47551.00 on 30th Nov’2020. The 18-day Exponential Moving Average of the commodity is currently at Rs. 49402.00. On the daily chart, the commodity has Relative Strength Index (14-day) value of 43.957.
One can sell beow Rs. 48850 for a target of Rs. 47600 with the stop loss of Rs. 49475.
CRUDE OIL MCX (JAN) contract closed at Rs. 3502.00 on 10th Dec’2020. The contract made its high of Rs. 3540.00 on 10th Dec’2020 and a low of Rs. 3130.00 on 19th Nov’2020. The 18-day Exponential Moving Average of the commodity is currently at Rs. 3354.90. On the daily chart, the commodity has Relative Strength Index (14-day) value of 67.157.
One can buy near Rs. 3450 for a target of Rs. 3700 with the stop loss of Rs. 3325.
CHANANCDEX (JAN) contract was closed at Rs. 4689.00 on 10th Dec’2020. The contract made its high of Rs. 5620.00 on 07th Oct’2020 and a low of Rs. 4591.00 on 08th Dec’2020. The 18-day Exponential Moving Average of the commodity is currently at Rs. 4936.90. On the daily chart, the commodity has Relative Strength Index (14-day) value of 33.030.
One can buy near Rs. 4730 for a target of Rs. 5000 with the stop loss of Rs 4590.
Ambiguity persisted in commodity markets amid confusion over stimulus in US and Vaccination progress. Some commodities stuck in a range whereas some witnessed wild wing. US Treasury Secretary Steven Mnuchin on Tuesday said he had presented Democrat House Speaker Nancy Pelosi with a new economic rescue package. The $916 billion plan is bigger than the $908 billion proposal put forward. Bullion counter gained on fall in dollar index but saw some fall in later part of the week on early arrival of vaccine than expectation. However hopes of more US stimulus kept gold supported at lower levels. Prices fell in Indian markets as equity markets rallied across the world amid covid vaccine optimism. Silver too witnessed bearish movements. In energy counter, crude was in a range and natural gas prices dipped down on mild weather news. U.S. natural gas prices have tumbled since the start of November as persistent mild weather has caused inventories to remain high rather than drawing down in line with seasonal trends. The number of rigs drilling for gas has remained broadly unchanged since August, in contrast to the number of rigs drilling for oil, which has increased by a third. Increased oil drilling will increase the volume of associated gas produced as a by-product, but the low level of gas-directed drilling will at least limit the total increase in gas output. Oil was up on Thursday morning in Asia, with the U.K.’s rollout of a COVID-19 vaccine and the imminent arrival of the same vaccine in the U.S. spurring hopes of a recovery in fuel demand and eclipsing a largerthan-expected build in U.S. crude stocks during the previous week. Base metals saw superb upside. Copper and nickel crossed 600 and 1300 respectively
In spices, turmeric outshined on firm spot market. Spot prices at Nizamabad and Warangal mandis are firm-to-steady. Coriander was down on higher acreage news. As per data from State agriculture Department’s of Gujarat, coriander has been cultivated in 93,000 hectares of Nov 30, much higher than last year 22,069 hectares sown during this time and also more than 62,641 hectares of normal area (last three year avg.). Mustard futures saw further fall. The millers are reluctant for fresh buying because its derivative oil are not supportive since the demand has shrunk due to higher prices. The monthly crushing has reduced to 5.00 Lac MT in November as compared to 6.50-6 Lac MT in Sept-Oct and 8.00 Lac MT in August. Chana fell for straight nine week.
Gur is among the major agro processing industry found in rural sector and totally in unorganized sector. Gur and khandsari are traditional unrefined Indian sweeteners. It produced by boiling sugarcane juice and contains all the minerals and vitamins present in sugarcane juice. So it is known as the healthiest food compared to sugar as it has proved that sugar leads to diabetes and it is a white poison. Gur is also called as jaggery. Due to its wide applications, the market for jaggery is continuously growing. Also because of its nutritional and medicinal values, jaggery has immense growth potential market both in national & international market. Main industries using jaggery as an ingredient are the beverage, confectionery, bakeries and sauces industries.
The price of Gur is highly volatile affect the stakeholders of value chain includes farmers, aggregators (transportation and storage), processors and traders and this volatility asks for reliable mechanism to mitigate the risk arising out of price fluctuation. In order to mitigate the risks associated with price fluctuations in Gur NCDEX is introducing Futures contract in Gur (Feed Grade). Currently January, February, March, April and June 2021 contract is available for trade.
| Trading Unit | 10 MT |
| Delivery Unit | 10 MT |
| Maximum Order Size | 500 MT |
| Base value | Rs Per 40 kg |
| Tick Size | Rs 0. 50 |
| Quantity Variation | +/-5% |
| Basis | Ex-Cold Storage Warehouse Muzaffarnagar, inclusive of local taxes, exclusive of GST |
| Delivery Logic | Compulsory Delivery |
India is the largest producer of Jaggery (Gur) in the world, producing nearly 60 percent of the Global production. Brazil is the major exporter of Jaggery in the world. USA, China, Indonesia are the largest importers of Jaggery in the world. India exported 3,41,155.34 MT of jaggery and confectionery products to the world for the worth of Rs. 1,633.22 crores during the year 2019-20.
Market for gur is round the year whereas its production is only during the sugarcane season and thus factory works for around 6 to 7 months every year from endNovember to the 1st week of April. As Gur belongs mainly to the unorganized sector, so the production figures estimate depend entirely on the stock kept in cold storages.
Uttar Pradesh is the largest Gur producing state in the country. It produces about 47% of India’s Gur Production. According to the estimates of the trade organisations, this year, the production of jaggery in the entire Uttar Pradesh has been around 50 lakh tonnes - 11 per cent higher than the average annual production of 4.5 million tonnes. Muzaffarnagar is a big production center along with presence of many processing units. Due to availability of good infrastructure support Muzaffarnagar is considered as benchmark center of discovery of Gur prices. Price movement is also depended on the stock in UP and purchasing interests of the southern states. Other Jaggery producing states in India are Maharashtra (21%), Karnataka (8%) and Tamil Nadu(5%). These states combine produce more than 80% of the total Jaggery production in India.
NITI Aayog has recommended bringing jaggery manufacturing under formal sector, adopting advanced technology by manufacturers and developing quality standards.
Indian Rupee largely remained in a narrow range this week with a positive bias. However, higher crude oil prices which touched six months high may act as an immediate headwind while on the contrary broad dollar sell-off may provide near term support in rupee as well. Meanwhile the November CPI inflation due to release next Monday is expected to be around 7.0% as against 7.61% in October. We may find some positivity in rupee based on the lower CPI print. Additionally RBI predicts that headline CPI will average 6.8% in Oct-Dec and 5.8% in Jan-Mar. On the majors, the euro climbed above $1.2143, close to its high of the year, after the ECB said it would expand its €1.35tn emergency bond-buying programme by another €500bn and extend it to March 2022, broadly in line with consensus expectations. While Sterling weakened after a dinner between UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen ended without a breakthrough for a Brexit deal. Negotiators have until Sunday to come up with a final deal. We will remain neutral to bullish in euro ahead of key BREXIT decision on Sunday which may have material impact in both euro and pound as well.
USD/INR (DEC) contract closed at 73.8125 on 10-Dec-20. The contract made its high of 74.1275 on 07-Dec-20 and a low of 73.6650 on 09-Dec-20 (Weekly Basis). The 21-day Exponential Moving Average of the USD/INR is currently at 74.1273.
On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 40.2896. One can sell at 74.00 for the target of 73.00 with the stop loss of 74.50.
GBP/INR (DEC) contract closed at 98.1925 on 10-Dec-20. The contract made its high of 99.2975 on 07-Dec-20 and a low of 98.0400 on 07-Dec-20 (Weekly Basis). The 21-day Exponential Moving Average of the GBP/INR is currently at 98.5242.
On the daily chart, GBP/INR has Relative Strength Index (14-day) value of 48.4034. One can sell at 98.00 for a target of 97.00 with the stop loss of 98.50.
| 11th DEC | China to step up fiscal support for new economic strategy |
| 10th DEC | Reuters poll: India retail inflation expected to stay above 7% in November, economists say |
| 10th DEC | EU banks face 9.4 billion euro shortfall to meet capital rules |
| 10th DEC | Japan stimulus package will likely boost GDP by around 3.6%, Sugasays |
| 09th DEC | Europe's supply chain finance fix feeds hidden debt fears |
| 08th DEC | Japan unveils $708 billion in fresh stimulus with eye on post-COVID growth |
| 08th DEC | Japan stimulus package will likely boost GDP by around 3.6%, Sugasays |
| 07th DEC | German industrial output surges on booming car sales |
| 07th DEC | EU climate deal unlikely without break through on budget, envoy says |
EUR/INR (DEC) contract closed at 89.2400 on 10-Dec-20. The contract made its high of 89.7800 on 09-Dec-20 and a low of 89.1625 on 10-Dec-20 (Weekly Basis). The 21-day Exponential Moving Average of the EUR/INR is currently at 88.7899.
On the daily chart, EUR/INR has Relative Strength Index (14-day) value of 59.79. One can buy at 89.25 for a target of 90.25 with the stop loss of 88.75.
JPY/INR (DEC) contract closed at 70.6475 on 10-Dec-20. The contract made its high of 71.1550 on 07-Dec-20 and a low of 70.6100 on 10-Dec-20 (Weekly Basis). The 21-day Exponential Moving Average of the JPY/INR is currently at 70.6475.
On the daily chart, JPY/INR has Relative Strength Index (14-day) value of 42.54. One can buy at 70.80 for a target of 71.80 with the stop loss of 70.30.
The IPO of biscuit maker Mrs Bectors Food Specialities will open on December 15 and close of December 17. Price band of the ₹540 crore IPO has been fixed at ₹286 to ₹288 per share. Bids can be made for a minimum of 50 equity shares and in multiples of 50 equity share thereafter. Mrs Bectors Food manufactures and markets a range of products such as biscuits, breads and buns. It markets a wide variety of biscuits and bread under the flagship brand "Mrs Bector's Cremica" and the "English Oven" respectively. Mrs Bectors Food also supplies buns to various international QSR chains in India, such as Burger King India Private Limited, Connaught Plaza Restaurants Private Limited, Hardcastle Restaurants Private Limited, and Yum! Restaurants (India) Private Limited. The issue comprises fresh issue of such equity shares as aggregating up to ₹40.54 crore and an offer for sale of aggregating up to ₹500 crore. A discount of ₹15 per equity share shall be offered to eligible employees bidding in the employee reservation portion. SBI Capital Markets Limited, ICICI Securities Limited and IIFL Securities Limited are the Book Running Lead Managers to the offer. The IPO comprises fresh issuance of shares worth ₹50 crore and offer for sale to the tune of ₹500 crore by existing shareholders, according to the draft red herring prospectus (DRHP) filed with Sebi.
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Continuing their selling spree for the sixth straight month, mutual funds pulled out Rs 30,760 crore from equities in November on profit booking and experts believe the outflow trend will continue unless there is correction in markets. With this, net withdrawal by mutual funds (MFs) has reached to over Rs 28,000 crore in the first 11 months of the ongoing year (January-November), data available with the Securities and Exchange Board of India (SEBI) showed. The markets, despite the withdrawals from mutual funds in the last few months, have continued to rise as flows from FPIs have been robust. Foreign Portfolio Investors (FPIs) have put in over Rs 1.08 lakh crore in the Indian equity markets during January-November period of 2020. According to the data, MFs pulled out Rs 30,760 crore from equities in November. This has taken the outflow to over Rs 68,400 crore since June. MFs withdrew Rs 14,492 crore in October, Rs 4,134 crore in September, Rs 9,213 crore in August, Rs 9,195 crore in July and Rs 612 crore in June. However, they invested over Rs 40,200 crore in the first five months of the year (January-May). Of this, Rs 30,285 crore was invested in March.
Despite the equity funds seeing outflow for the fifth consecutive month, the overall inflows into mutual funds crossed Rs 30 lakh crore for the first time in November, driven by open-ended debt funds and mark-to-market gains after a rally in the equity markets, according to a report. This had the industry-wide mutual fund assets expanding 6.3 per cent in November to settle at a record high of Rs 30.01 lakh crore, with fresh follows totalling Rs 2 lakh in the month from Rs 28 lakh crore in October.
Nippon Life India Mutual Fund has announced the launch of Nippon India Passive Flexicap FoF, an open-ended Fund of Funds scheme investing in units of ETFs/index funds of Nippon India Mutual Fund. The NFO opens on December 10 and closes on December 24. The minimum investment required is Rs 5,000 and in multiples of Re 1 thereafter. Nippon India Passive Flexicap FoF will predominantly invest in units of ETFs/index funds of Nippon India Mutual Fund. The fund will be benchmarked against Nifty 500 TRI. According to the press release, Nippon India Passive Flexicap FoF would invest across market caps, basis average allocation of all active multicap funds in the industry into large, mid and small cap stocks as provided by CRISIL every month. The investment objective of the scheme is to seek long term capital growth by investing in units of ETFs / Index Funds of Nippon India Mutual Fund. The Scheme follows a passive investment strategy and will predominantly invest in the units of ETFs / Index Funds of Nippon India Mutual Fund such as Large Cap ETF/ Index Fund, Mid Cap ETF/ Index Fund and Small Cap ETF/ Index Fund.
Mirae Asset Mutual Fund has revised the exit load of Mirae Asset Equity Allocator Fund of Fund effective from Nov 25. Accordingly, exit load of 0.05% is charged in case of redemption or switch-out of units within 5 days from the date of allotment.
DSP Mutual Fund has announced change in the fund management of DSP Healthcare Fund. Accordingly, the fund will be managed by Mr. Chirag Dagli, Mr. Vinit Sambre and Mr. Jay Kothari (dedicated fund manager for overseas investments) with effect from Dec 1, 2020.
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