In the week gone by, global markets rallied helped by strong US company earnings and solid economic growth data coming from US. The US economy grew solidly in the second quarter, putting the level of the gross domestic product above its prepandemic peak. The US economy expanded 6.5 percent annualized in the second quarter. In the recent Fed meeting, the central bank decided not to raise interest rates from near zero nor adjust the pace at which it buys government bonds each month. Meanwhile, Powell said the U.S. economy is still a good deal away from making “substantial further progress” toward the Fed’s dual mandates of stable prices and maximum employment. Japan’s factory output jumped in June and job availability rose to the highest level in nearly a year, data showed, a sign robust overseas demand was offsetting the drag to consumption from the coronavirus pandemic. The International Monetary Fund forecast that Japan’s economy will grow 2.8% in 2021 from a year before, down 0.5 percentage points from its April estimate as the country continues to struggle to contain the spread of COVID-19.
Back at home, domestic markets too moved higher on positive global cues amid the reports that the Chinese Securities regulator has stepped-in to assuage investor concerns over tech crackdown supported sentiment and favourable outcome of Federal Open Committee which ended its two-day meeting by keeping interest rates in a target range between zero and 0.25%. In another development, the government has allowed 100% foreign direct investment (FDI) under the automatic route for public sector oil refiners that had received 'in-principle' approval for strategic disinvestment. This clears the way for foreign buyers in strategic sale of state-owned BPCL. The International Monetary Fund (IMF) has slashed India’s growth forecast for FY22 to 9.5% from its previous projection of 12.5% citing the severe second Covid-19 wave during March-May. The government is considering a slew of long-term measures to improve the health of the debt laden telecom sector, which includes prospectively redefining adjusted gross revenue (AGR) to exclude ‘non-telecom’ items and allowing telcos to surrender unused spectrum for a small penalty. Macroeconomic data, the pace of vaccination and global trends would be the major drivers for the domestic equity markets this week. Besides, the progress of monsoon will also be monitored. Market participants would also monitor the movement of Brent crude, investment pattern of foreign institutional investors and the rupee.
On the commodity market front, Fed meet was one of the major trigger for commodities last week. CRB closed up for the second week in row. Dollar index lose its safe haven buying appeal on Fed decision, which stimulated buying in commodities. U.S. crude has rallied nearly 24% in the quarter and buying should occur on every dip on supply squeeze. Fed Chairman Jerome Powell warned that the U.S. job market still had “some ground to cover” before the Fed begins to taper its assets. It has stimulated safe haven buying in gold and it can see 48500-48800 levels in short term. Flood in China and supply disruption in many countries amid better demand sent base metals prices on multi years high; zinc made all time high. It is advised to go for buy in base metals on dip as rally is overstretched. NBS Manufacturing PMI of China, Markit Manufacturing PMI Final, Non-Farm Payrolls, Unemployment Rate and ISM Manufacturing PMI of US, RBA Interest Rate Decision, Employment Change and Unemployment Rate of Newzeland, BoE Interest Rate Decision, Balance of Trade of Canada, Inflation Rate of Mexico, Employment Change and Unemployment Rate of Canada, etc are many triggers for commodities this week.
SMC Global Securities Ltd. (hereinafter referred to as “SMC”) is a registered Member of National Stock Exchange of India Limited, Bombay Stock Exchange Limited and its associate is member of MCX stock Exchange Limited. It is also registered as a Depository Participant with CDSL and NSDL. Its associates merchant banker and Portfolio Manager are registered with SEBI and NBFC registered with RBI. It also has registration with AMFI as a Mutual Fund Distributor.
SMC is a SEBIregistered Research Analyst having registration number INH100001849. SMC or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing /dealing in securities market.
SMC or its associates including its relatives/analyst do not hold any financial interest/beneficial ownership of more than 1% in the company covered by Analyst. SMC or its associates and relatives does not have any material conflict of interest. SMC or its associates/analyst has not received any compensation from the company covered by Analyst during the past twelve months. The subject company has not been a client of SMC during the past twelve months. SMC or its associates has not received any compensation or other benefits from the company covered by analyst or third party in connection with the research report. The Analyst has not served as an officer, director or employee of company covered by Analyst and SMC has not been engaged in market making activity of the company covered by Analyst.
The views expressed are based solely on information available publicly available/internal data/ other reliable sources believed to be true.
SMC does not represent/ provide any warranty express or implied to the accuracy, contents or views expressed herein and investors are advised to independently evaluate the market conditions/risks involved before making any investment decision.
DISCLAIMER: This report is for informational purpose only and contains information, opinion, material obtained from reliable sources and every effort has been made to avoid errors and omissions and is not to be construed as an advice or an offer to act on views expressed therein or an offer to buy and/or sell any securities or related financial instruments, SMC, its employees and its group companies shall not be responsible and/or liable to anyone for any direct or consequential use of the contents thereof. Reproduction of the contents of this report in any form or by any means without prior written permission of the SMC is prohibited. Please note that we and our affiliates, officers, directors and employees, including person involved in the preparation or issuance of this material may; (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company (ies) mentioned herein or (b) may trade in this securities in ways different from those discussed in this report or (c) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instrument of the company (ies) discussed herein or may perform or seek to perform investment banking services for such Company (ies) or act as advisor or lender / borrower to such company (ies) or have other potential conflict of interest with respect of any recommendation and related information and opinions, All disputes shall be subject to the exclusive jurisdiction or Delhi High Court.
SAFE HARBOR STATEMENT: Some forward statements on projections, estimates, expectations, outlook etc are included in this update to help investors / analysts get a better comprehension of the Company's prospects and make informed investment decisions. Actual results may, however, differ materially form those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, Impact of competing products and their pricing, product demand and supply constraints. Investors are advised to consult their certified financial advisors before making any investments to meet their financial goals.
viz. Mindstone Mall Developers, had acquired 7.5 acres of land in Alipore, Kolkata during February, 2021 for total consideration of Rs.300 crore to be used for retail-led mixed used consumption. As per the management of the company, the land parcel has retail development potential of 1 mn sq ft in phase- 1 which is likely to be operationalized by Fy25.
The company is doing well and its quality of assets, healthy balance sheet and strategic expansions plan may further boost the financial growth of the company. It is expected that the stock will see a price target of Rs.971 in 8 to 10 months’ time frame on an expected P/BVx of 3.20x and FY22 BVPS of Rs.303.49.
The company operates with asset light business model with core competency of registrations and an extensive library of dossiers and registrations. It’s strong geographical presence in more than 80 countries with an established global marketing & distribution network with superior sourcing capabilities with an established access to cost competitive manufacturers in China and India. Thus, it is expected that the stock will see a price target of Rs.405 in 8 to 10 months time frame on
The stock closed at Rs 194.10 on 30th July, 2021. It made a 52-week low at Rs 81.75 on 31th July, 2020 and a 52-week high of Rs. 197.10 on 30th July, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 145.24.
As we can see on charts that stock is trading in higher highs and higher lows sort of “Rising Wedge” on weekly charts which is considered to be bullish. Apart from this, it has formed a “Cup and Handel” pattern on daily charts and also has given the breakout of same during last week, gained by 5%. On the technical indicators front such as RSI and MACD also suggest buying for the stock. So, one can initiate long in the range of 190-192 levels for the upside target of 220-230 levels with SL below 178 levels.
The stock closed at Rs 181.20 on 30th July, 2021. It made a 52-week low of Rs 75.60 on 24th September, 2020 and a 52- week high of Rs. 213.20 on 12th May, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 144.05.
Short term, medium term bias are looking positive for the stock as it is trading in higher highs and higher lows on charts. Apart from this, the stock has formed a “Bull Flag” pattern on weekly charts which is bullish in nature. Last week, the stock has given the pattern breakout along with high volumes and also has managed to close above the same. So, further buying is anticipated from current levels. Therefore, one can buy in the range of 178-180 levels for the upside target of 200-205 levels with SL below 166 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
After ending July series on muted note, Indian markets began August series with negative impression. However during the week, both the indices once again seen moving in a consolidation mode as sideways moves kept market directionless. From derivative front, call writers remained active at 15800 & 15900 strike while put writers added marginal open interest at 15500 strike. The Implied Volatility (IV) of calls closed at 11.81% while that for put options closed at 12.62%. The Nifty VIX for the week closed at 12.95% and is expected to remain volatile. PCR OI for the week closed at 1.27. From technical front, secondary oscillators suggest that we may witness volatility in upcoming week with Nifty likely to hover in broader range of 15500-15900. However, Bank nifty has major support at its 100 days exponential moving average on daily charts which is placed around 34000 levels. On higher side, index can face strong hurdle at 35300-35400 zone.Traders are advised to keep focus on sector specific moves for upcoming week.
|
|
|
|
|
**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 (Aug) is expected to remain sideways to lower towards 7050/7000, if it breaks 7350 level. In the daily chart, trend looks down as 50 day moving average is resisting the move up. Currently, demand for turmeric was steady and supply from the primary sources moderately better however any loss in crop due to heavy rain will keep prices higher. In Erode, Duggirala & Warangal market, the prices of turmeric have been in range depending on the arrivals and the quality. Turmeric sowing states received consistent rains and crop is in good conditions. Normally, Turmeric exports drops after July till the new season turmeric is harvested in late December. Jeera futures (Aug) fell sharply to the levels 13600 last week which can be a very good demand zone for the market participants. We expect the prices to recover next week again to 13700 levels with strict stop loss at 13000 levels. Muted export demand and slow local buying by stockiest is keeping the prices lower. Spot prices of Cumin (Jeera) in Unjha mandi ranging from 13000 to 13700 depend on the quality. There is improvement in supply as prices have recovered from 13000 to 13500 in July. Higher availability of stocks with the farmers and uncertainty of local demand have kept the prices under pressure this season. Unjha mandi reported average daily arrivals of 8000-9000 bags. Dhaniya futures (Aug) is trading under pressure due to muted demand and we expect prices to trade lower towards 6500/6400 levels. Coriander prices are stable in the major spot markets despite steady arrivals. Normally arrivals and the demand remain weak during the monsoon season. The arrival of coriander is satisfying the demand in the main mandis across the country including Rajasthan. Higher production estimates in 2020-21 by Spices Board keeping the prices in check.
Gold prices jumped more than 1% on weekly basis as investors cheered U.S. Federal Reserve Chairman Jerome Powell’s comments suggesting the central bank was unlikely to hike rates anytime soon. He said the U.S. job market still had “some ground to cover” before it would be time to pull back support to the economy. Reinforcing Powell’s views, data showed the U.S. economy grew at a 6.5% annualized rate last quarter, below a forecast for an 8.5% rise by economist polls. Lower U.S. interest rates reduce the opportunity cost of holding non-yielding bullion. Adding to gold’s support, the dollar index slipped to a one-month low. Rising monetary policy uncertainty, inflation and increasing risk of equity market volatility should favour demand for safehaven assets. Silver jumped 2.8% to $25.62 per ounce after hitting its highest since July 16. In the short term, however, prices are supported by factors including a recovery in demand for gold jewellery and the potential for the dollar to weaken as emerging markets rebound. Silver is poised to benefit from the electrification process because of its use in solar panels, EVs (electric vehicles) and charging points. Holdings in the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.6% to 1,031.46 tonnes, marking the first inflow in about a month. Ahead in this week, we may continue to witness huge volatility and gold and range would be 45900-49900 whereas, Silver may trade in the range of 65900-70000 levels. Whereas on COMEX gold may trade in the range of $1790-$1890 and Silver may trade in the range of $23.90-$26.90.
Soybean futures (Aug) see 4 upper circuits last week and 1 lower circuit which makes this counter very risky. However, the prices expected to remain above 9000 levels unless government decides to import soymeal or soybean to cool the prices. Prices have climbed to the highest levels 9750 on Wednesday. To reduce the volatility, Exchange has increased the lean period margin to 7% from 4%. Till last week farmers have sown soybean across 102 lakh ha, down 9% from a year ago. The demand for US soybean is improving as Soybean and meal exports jumped 49% and 66% respectively from previous week. Overall, soybean condition is good in US. RM Seed futures (Aug) is in uptrend but seen some profit booking at higher levels of 7790. The trend is upwards may trade towards 8000 levels in coming weeks. Mustard seed prices in the spot market is increasing slowly in the benchmark market of Jaipur in Rajasthan as traders and millers are expecting shortage during end of the season as more than half is consumed out of 86 lakh tonnes availability and only half is left for remaining 7-8 months. Edible oil prices moved higher last week supported by good exports demand for US oilseeds and expectations of a sluggish production in Malaysia. Firmness in the crude oil supported vegetable oils prices as costlier crude oil makes palm an attractive feedstock for biodiesel. Indonesia mandates that diesel be mixed with at least 30 percent bio content coming from palm. Weather prospects have improved in the US but rating of crop has not improved. Therefore, Ref Soy oil futures (Aug) is expected to trade in higher once it breaks 1425 levels towards 1500/1520 while CPO futures (Aug) may trade higher towards 1300, taking support near 1115.
Crude Oil is on track to post steep weekly gains with demand growing faster than supply, while vaccinations are expected to alleviate the impact of a resurgence in COVID-19 infections across the globe. Oil prices pulled back slightly amid cautious sentiment across the Asia Pacific markets as investors weighed virus concerns and weaker than expected U.S. GDP and jobs data. Last week oil prices were buoyed by a weaker U.S. dollar and stronger U.S. corporate earnings. But rising COVID-19 cases attributed to the Delta variant in the United States. Even with coronavirus cases rising in the United States, all around Asia and parts of Europe, analysts said higher vaccination rates would limit the need for the harsh lockdowns that gutted demand during the peak of the pandemic last year. The global recovery remains on track, and by association, oil consumption even if that recovery will be much more geographically uneven than previously expected. Ahead in the week crude oil prices may continue to trade with bullish bias in the range of 5280-5640 with higher volatility. has begun—not the game of buying and holding but rather the game of guessing when the summer heat will back off enough to allow more injection of gas into storage. The weather is expected to remain hotter than normal through at least mid-August. Speculators, meanwhile, cut their net long futures and options positions on the New York Mercantile and Intercontinental Exchanges last week for a second week in a row as buyers cashed in some of their gains with the front-month up about 13% so far this month. Ahead in week it is expected that prices may continue to trade with bullish bias as range would be 285-320.
Cotton futures (Aug) is trading at all-time high prices due to lower stocks in the country. Continuous increase in cotton prices in auction by CCI is also supporting the prices. There is good demand from the spinning and Industries. We expect some corrections as monsoon is reviving and area expected to recover. Export demand from China and US crop progress is crucial for the price direction.In domestic market, the spinning mills in most of the states across the country are buying cotton in large quantities from the CCI due to limited stock of cotton in the private sector. The new season cotton will only arrive in the month of October. Currently, the sowing acreage is lagging by almost 10 lakh hac compared to last year due to erratic rainfall distribution but higher than the average of last 5-years (98 lh.). Cotton area is higher in Gujarat but down in other North Indian states. Guar seed futures (Aug) is having stiff resistance at 4450 levels and buy only recommended if it trades above 4400 levels for target of 4550. There is expectation of improved rains in guar producing areas in Rajasthan. However, the steady demand for guar seed and gum may keep prices supportive above 4300 levels. Chana futures (Aug) expected to move towards 5700/5750 levels once it breaks the resistance at 5300. In the spot market spot prices have now improving as demand starts to rise. There is steady demand from the stockiest after the relaxing the stock limit order for the stake holders. Moreover, Nafed active to liquidate procured chana stock in various states at higher prices.
Base metals may trade with high volatility as profit booking at higher level cannot be denied. The prices may get support as vaccinations dampen the impact of resurgence in coronavirus cases worldwide. Copper may trade with bullish bias in the range 730-780 on strike concern. The union at BHP Group Ltd’s Escondida copper mine in Chile, the world’s largest, on Wednesday urged its members to vote to strike, saying the company was attempting to impose its will and its contract offer was “insufficient”. Workers at Chile’s Andina copper mine operated by state-owned Codelco turned down the firm’s offer for a new collective contract, paving the way for a potential strike at the facility, the union told Reuters. China's import volume of copper scrap almost doubled in the first half of 2021 to 821,376 tonnes. Zinc may trade in the range of 240-253 levels. Lead can move in the range of 172-180 levels. Chinese floods snarl supply chains for lead. Henan accounts for about 36 per cent of China’s total production capacity for primary lead and about 15 per cent for recycled lead. Nickel may trade in the range of 1450-1530. Buoyant demand for stainless steel, the main source of consumption for nickel, has bolstered prices in recent weeks, although investors are wary about increasing supply from top producer Indonesia. Factors such as rising coronavirus infection rates and a less favourable fundamental backdrop continue to pose downside risks, as will the threat of elevated trade tensions between the U.S. and China. Aluminum may move in the range of 200-210. Power consumption limits imposed in a major Chinese production province sparked supply concerns.
COTTON MCX (AUG) contract closed at Rs. 27410.00 on 29th Jul’2021. The contract made its high of Rs. 27650.00 on 29th Jul’2021 and a low of Rs. 22650.00 on 31st May’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs 26645.23. On the daily chart, the commodity has Relative Strength Index (14-day) value of 85.728.
One can sell near Rs. 26700 for a target of Rs. 26100 with the stop loss of Rs. 27010.
LEAD MCX (AUG) contract closed at Rs. 177.20 on 29th Jul’2021. The contract made its high of Rs. 183.20 on 30th Jun’2021 and a low of Rs. 171.25 on 28th Jun’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs. 178.00. On the daily chart, the commodity has Relative Strength Index (14-day) value of 49.303.
One can buy near Rs. 176 for a target of Rs. 186 with the stop loss of Rs. 171.
TURMERIC NCDEX (AUG) contract was closed at Rs. 7392 on 29th Jul’2021. The contract made its high of Rs. 7864.00 on 23rd Jun’2021 and a low of Rs. 7134.00 on 12th Jul’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs. 7414.40. On the daily chart, the commodity has Relative Strength Index (14-day) value of 44.265.
One can buy above Rs. 7400 for a target of Rs. 7800 with the stop loss of Rs 7200.
Fed meet was one of the major triggers for commodities last week. CRB closed up for the second week in row. Dollar index lose its safe haven buying appeal on Fed decision, which stimulated buying in commodities. Declining U.S. bond yields, fueled by concerns about high inflation and the economic outlook, also cast a shadow over the dollar. The 10-year inflation-linked bond yield hit a low. Fed left the interest rate unchanged between 0 % and 0.25% but did not provide a timetable for asset tapering. Gold benefited from all this and tried to close on higher levels, though it was unable to break the range. COMEX and MCX gold closed above $1825 and 48200 respectively. Global gold demand declined in the first half of the year from the same period in 2020, as investment in the precious metal dropped by 60%, according to a report from the World Gold Council released Thursday. Silver recovered some of its losses but closed in negative on weekly basis for fourth week continuously. The investment segment of gold demand in the first half of the year, which includes bars and coins and ETF’s, totaled 455.9 metric tons, down 60% from the same period a year earlier, when ETF inflows were at a record. Crude saw good jump in the prices whereas natural gas saw profit booking from higher side. Fall in inventory and dollar index strengthened the prices. EIA data showed a draw of 4.089 million barrels in the week to July 23. U.S. oil refiners are set to post their first quarterly profit since the COVID-19 pandemic, even though higher oil prices and weaker margins in June have tamed analysts’ optimism fostered by the rebound in fuel demand. Flood in China and supply disruption in many countries amid better demand sent base metals prices on multi years high; zinc made all time high.
Record high prices in soyabean and continuous circuit put traders in pressure. Prices have climbed to highest levels 9750 on Wednesday. In India, farmers have sown soybean across 102 lakh ha, down 9% from a year ago. Market is expecting shortage in mustard during end of the season as more than half is consumed out of 86 lakh tonnes availability and only half is left for remaining 8 months. CPO prices augmented ongood demand and expectations of a sluggish production in Malaysia. Cotton futures (Aug) made all-time high on Wednesday to close at 27470 due to increase in the CCI auction price amid lower stocks and good demand from the spinning and Industries. Nafed active to liquidate procured chana stock in various states at higher prices. Spices traded in a pressure. Higher production estimates of coriander in 2020-21 by Spices Board kept the prices in check.
Yellow metal is always the prominent choice among the investors to park their money and diversifying their portfolio in troubled times of geopolitical uncertainty, pandemic related environment and global economic slowdown concerns.
Global gold demand is almost flat to 955 tonnes for the April-June quarter in 2021 as compare to the same quarter of 2020, as consumers continued to feel the impact of the 2nd wave COVID-19 pandemic. Strong consumer demand recovery and Q2 gold ETF inflows were not enough to offset heavy Q1 outflows. Global gold demand dropped by down 11% y-o-y in H1 to 1,833.1 tonnes, according to the World Gold Council’s latest 'Gold Demand Trends Q2 2021' report.
The gold price increased by 4% during April-June in 2021, following a 10% decline in Jan-March. Prices rebounded during April and May on continued fears of inflation, US dollar weakness and lower real rates, before dipping again in June following a more hawkish than expected statement by the US Fed.
Jewellery demand (390.7 tonnes) in April-June quarter in 2021 continued to rebound from 2020’s COVID-hit weakness, although remained well below typical pre-pandemic levels, partly due to weaker growth in Indian demand. Demand for H1, at 873.7 tonnes, was 17% below the 2015-2019 average.
However investment demand saw a fourth consecutive quarter of strong y-o-y gains as investors bought gold bars, coins and gold-backed ETFs. April-June quarter in 2021 demand of 243.8 tonnes resulted in a H1 total of 594 tonnes, the strongest since 2013. Modest Q2 inflows into gold-backed ETFs (40.7 tonnes) only partly offset the heavy outflows from Q1; consequently, ETFs saw H1 net outflows (of 129.3 tonnes) for the first time since 2014.
Love affair of global central banks with gold is amazing. Central bank buying continued in Q2. Global gold reserves grew by 199.9 tonnes, which took H1 net buying to 333.2t – 39% higher than the five-year H1 average and 29% above the tenyear H1 average. Large-scale purchases by Thailand, Hungary and Brazil drove the growth in global gold reserves.
Gold used in technology continued to recover from the 2020 lows. April-June quarter demand was 18% higher y-o-y at 80 tonnes – in line with average April-June quarter demand from 2015-2019 of 81.8 tonnes. H1 demand (161 tonnes) was fractionally above that of H1 2019 (160.6 tonnes).
Total gold supply in April-June quarter this year was 13% higher y-o-y and in H1 was 4% higher. The industry experienced far less COVID-related disruption than in April- June quarter 2020–the most interrupted quarter last year.
India's gold demand
India's gold demand increased by 19.2% to 76.1 tonne during the April-June quarter this year, largely due to low base effect, owing to the nationwide lockdown that hit economic activity last year, the World Gold Council (WGC) said in a report. The overall gold demand during the second quarter of 2020 calendar year stood at 63.8 tonnes, according to the WGC's report. In value terms, India's gold demand witnessed 23% growth during April-June quarter at ₹32,810 crore, compared to ₹26,600 crore during the corresponding period of 2020.
Going forward, gold demand is expected to come back in a big way, however, the consumer confidence and business response are subject to the impact of a looming threat of third wave of COVID and the pace of economic recovery.
The Indian rupee strengthened to its highest level in more than three weeks against the dollar on Thursday as the U.S. Federal Reserve's dovish stance was a drag on the greenback, with gains in domestic equities also contributing to the rise. The rupee got further support when dollar index dipped below 92 levels. Going forward, next week RBI policy will be key for the rupee move which it is expected that it may turn out to be positive for rupee as RBI will continue its loose monetary policy stance. From the majors, Sterling surged overnight and reached 4-month highs against the euro and one-month highs against the dollar, as the re-opening of the UK economy last week has yet to spark a surge in hospitalizations or cases. The pound has been the biggest G10 gainer against the dollar last week, climbing 2.6%. While the euro is stronger on overall dollar weakness and a higher than expected July inflation figure for Germany. Risk-on sentiment with higher equity prices is hurting the dollar and helping investors regain confidence in equities and commodities.
USD/INR (AUG) contract closed at 74.4900 on 29-Jul-21. The contract made its high of 74.7850 on 27-Jul-21 and a low of 74.4400 on 29-Jul-21 (Weekly Basis). The 21-day Exponential Moving Average of the USD/INR is currently at 74.7689.
On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 50.50.One can sell at 75.00 for the target of 74.00 with the stop loss of 75.50.
GBP/INR (AUG) contract closed at 103.8850 on 29-Jul-21. The contract made its high of 103.9100 on 26-Jul-21 and a low of 102.4700 on 29-Jul-21 (Weekly Basis). The 21-day Exponential Moving Average of the GBP/INR is currently at 103.4041
On the daily chart, GBP/INR has Relative Strength Index (14-day) value of 42.71. One can buy at 103.60 for a target of 104.60 with the stop loss of 103.10
| 29th JUL | German inflation hits highest level since 2008 |
| 29th JUL | EU economy chief urges end to ‘muddling through’ with budget rules |
| 28th JUL | Fed moves closer to decision on ‘tapering’ massive stimulus |
| 28th JUL | Brussels pauses legal action against UK over Brexit deal breach |
| 27th JUL | US and China face bumpy ride as talk of decoupling intensifies |
| 27th JUL | US is to keep Covid-related travel restrictions in place |
| 26th JUL | Delta variant casts shadow over global recovery |
| 26th JUL | US real yields hit record low on growth concerns |
EUR/INR (AUG) contract closed at 88.4800 on 29-Jul-21. The contract made its high of 88.4975 on 26-Jul-21 and a low of 87.7800 on 29-Jul-21 (Weekly Basis). The 21-day Exponential Moving Average of the EUR/INR is currently at 88.6064.
On the daily chart, EUR/INR has Relative Strength Index (14-day) value of 34.5789. One can sell at 88.80 for a target of 87.80 with the stop loss of 89.30.
JPY/INR (AUG) contract closed at 67.8375 on 29-Jul-21. The contract made its high of 68.0900 on 28-Jul-21 and a low of 67.7000 on 26-Jul-21 (Weekly Basis). The 21-day Exponential Moving Average of the JPY/INR is currently at 67.8928.
On the daily chart, JPY/INR has Relative Strength Index (14-day) value of 55.21. One can buy at 67.75 for a target of 68.75 with the stop loss of 67.25.
Specialty chemical company Tatva Chintan Pharma Chem had the best listing of 2021, as the stock closed with 113.32 percent gains on July 29. Tatva Chintan is also the third company to double investors' wealth on the listing day after GR Infraprojects (up 108.7 percent) and Indigo Paints (109.31 percent). The stock settled at Rs 2,310.25 on the BSE, up Rs 1,227.25 from the issue price of Rs 1,083. On the National Stock Exchange, the stock climbed 113.50 percent to close at Rs 2,312.20 after hitting an upper circuit of 20 percent at Rs 2,534.20. Tatva Chintan traded with volume of 78.60 lakh equity shares on the NSE, and 8.99 lakh shares on the BSE. The largest and only commercial manufacturer of structure directing agent (SDAs) for zeolites in India mopped up Rs 500 crore through its initial public offering that saw a stellar subscription of 180.35 times during the July 16-20 period. The net proceeds from the fresh issue of Rs 225 crore would be utilised for the expansion of its Dahej manufacturing facility and upgrade of R&D facility at Vadodara.
Vitrified tiles maker Exxaro Tiles has fixed the price band at Rs 118-120 per share for its initial public offering. The offer will open for subscription on August 4 and will close on August 6. Anchor investors' book, if any, is expected to open for a day on August 3, a day before the offer opening. The company will launch public issue of 1,34,24,000 equity shares next week, which comprises a fresh issue of 1,11,86,000 equity shares, and an offer for sale (OFS) of 22,38,000 equity shares by selling shareholder Dixitkumar Patel. The total offer size comes to Rs 161.08 crore. The offer includes a reservation of up to 2,68,500 equity shares for company's employees. Bids can be made by investors for a minimum of 125 equity shares and in multiples of 125 equity shares thereafter. Exxaro Tiles will utilise the net proceeds from fresh issue for repaying debt (Rs 50 crore), and working capital requirements (Rs 45 crore). Exxaro Tiles is engaged in manufacturing and marketing of vitrified tiles used majorly for flooring solutions. Its business operations are broadly divided into two product categories - double charge vitrified tiles, and glazed vitrified tiles.
Devyani International, the largest franchisee of Yum Brands and one of the largest operators of chain quick service restaurants in India, has fixed the price band at Rs 86-90 per equity share for its initial public offering, as per the information available in daily newspapers on July 30. The public issue, which will open on August 4, comprises a fresh issue of Rs 440 crore, and an offer for sale of 15,53,33,330 equity shares by Dunearn Investments (Mauritius) Pte Ltd and promoter RJ Corp. The total fund raising comes to Rs 1,838 crore at higher price band. Dunearn Investments is going to offload 6,53,33,330 equity shares, and RJ Corp will sell 9 crore equity shares through offer for sale. The company reserved 5.5 lakh equity shares of its IPO for employees. The offer will close on August 6. Anchor book, if any, will be open for a day on August 3, a day before the IPO opening. Investors can bid for a minimum of 165 equity shares and in multiples of 165 equity shares thereafter. Up to 75 percent of total offer has been reserved for qualified institutional buyers, 10 percent for retail investors and 15 percent for non-institutional investors.
Windlas Biotech, the domestic pharmaceutical formulations contract development and manufacturing organization, has fixed the price band at Rs 448-460 per equity share for its public offer. The offer will open for subscription on August 4 and will close on August 6. Anchor book, if any, will open for a day on August 3, a day before the issue opening. This is the 31st initial public offering that will be launched in 2021. Promoter Vimla Windlass will sell 11.36 lakh equity shares, and investor Tano India Private Equity Fund II will offload its entire stake of 40,06,067 equity shares (or 22 percent of pre-offer paid up equity) via offer for sale. The total fund raising would be Rs 401.53 crore at upper end of price band. The net proceeds from fresh issue will be utilised for purchase of equipment required for capacity expansion of existing facility at Dehradun Plant – IV, & addition of injectables dosage capability at existing facility at Dehradun Plant-II (Rs 50 crore); working capital requirements (Rs 47.56 crore); and repaying of certain borrowings (Rs 20 crore).
SJS Enterprises has filed preliminary papers with capital markets regulator Sebi to raise Rs 800 crore through an initial share sale. The initial public offer (IPO) is an offer for sale of Rs 688 crore by Evergraph Holdings Pte Ltd and Rs 112 crore by KA Joseph. At present, Evergraph Holdings and KA Joseph own 77.86 per cent and 20.74 per cent stake in the company, respectively. The company will not receive any proceeds from the offer. SJS Enterprises is a leading player in the Indian decorative aesthetics industry offering the widest range of aesthetics products in the country. It is a "design-to-delivery" aesthetics solutions provider with the ability to design, develop and manufacture a diverse product portfolio. It caters to the requirements of the two-wheeler, passenger vehicle, commercial vehicle, consumer appliance, medical devices, farm equipment, and sanitary ware industries. According to the company's website, its product offerings include decals and body graphics, 2D appliques and dials, 3D appliques and dials, 3D lux badges, domes, overlays, aluminum badges, in-mold label or in-mold decoration, lens mask assembly, and chrome-plated, printed and painted injection moulded plastic parts. Axis Capital, Edelweiss Financial Services , and IIFL Securities have been appointed as merchant bankers to advise the company on the IPO.
|
|
IDFC Mutual Fund is preparing to launch a fund of funds (FoF) investing in US stocks. JP Morgan US Growth Fund will be the underlying fund. The new fund offer (NFO) period will begin from July 29 and go until August 12. However, it is an open-ended fund and will therefore be open for subscription beyond that time period as well. The minimum application during NFO is Rs. 5,000 with a minimum systematic investment plan (SIP)starting from Rs 1,000. There is an exit load of 1 percent, in case of redemption under one year, while the minimum expense ratio is 2.25 percent.
ICICI Prudential Mutual Fund has announced the launh of ICICI Prudential FMCG ETF. The New Fund Offer (NFO) closes for subscription on August 02. The ETF is benchmarked against Nifty FMCG TRI Index. The fund will be listed on BSE and NSE. The minimum investment during NFO is Rs 1,000 and in multiples of Re 1. ICICI Prudential Mutual Fund has announced the launch of ICICI Prudential FMCG ETF. The New Fund Offer (NFO) closes for subscription on August 02. The ETF is benchmarked against Nifty FMCG TRI Index. The fund will be listed on BSE and NSE. The minimum investment during NFO is Rs 1,000 and in multiples of Re 1.
TRUST Asset Management Company has announced the launch of a new fund – TRUSTMF Short Term Fund. The NFO will be open for subscription from 20th July to 3rd August and will be managed by Anand Nevatia, Fund Manager, TRUST Mutual Fund. This is the third launch from TRUST Mutual Fund. According to the press release, the fund will focus on top quality investible universe of filtered AAA issuers and focus on consistent risk adjusted returns in back testing of Model Portfolio prepared by CRISIL.
Nippon India Mutual Fund (NIMF) has announced the launch of Nippon India Flexi Cap Fund- an open-ended dynamic equity scheme investing across market caps. The New Fund Offer (NFO) opens on 26th July and closes on 9th August. The fund will be benchmarked against NIFTY 500 TRI and the minimum investment required is Rs 500 and in multiples of Re 1 thereafter. According to the press relaese, the fund will attempt to create alpha through bottom-up stock selection and an appropriate allocation approach to identify opportunities in potentially high growth themes. The fund house also said that presently the fund will have a bias towards domestic recovery themes with investments across key areas like beneficiaries of consolidation due to technology or regulation, ‘back to normal’ or business normalization, new business models which thrive on disruption, China plus one or import substitution etc.
|
|
|
|
|
