In the week gone by, global stocks hit record highs, fuelled by growing optimism I that deals will be reached over a fresh U.S. stimulus package of $900 billion and a post-Brexit trade deal between the United Kingdom and the European Union. Now it seems that global markets are completely focused on stimulus talks and ignored weakening U.S. economic data. U.S. Federal Reserve Chairman Jerome Powell vowed on Wednesday to keep pouring cash into markets until the U.S. economic recovery is secure. European stock markets also moved up anticipating a sharp economic recovery in 2021 backed by wider vaccine rollouts and positive comments from FOMC meeting. Japan’s government raised its economic growth forecast for the next fiscal year, thanks to its latest stimulus package aimed at speeding up the recovery following the damage wrought by the coronavirus pandemic. To note, recently the government’s has approved third supplementary budget to fund the $708 billion stimulus package. Oil also climbed, touching a nine-month high, with strong Asian demand adding to positive sentiment.
Back at home, market continued to move higher due to sustain buying by foreign players amid positive global cues. Actually, excess liquidity, increase in India’s weight in the MSCI indices and weakness in the US dollar propelled foreign investors to flock to the Indian stock market in a big way with the highest-ever net inflow in 2020. Foreign institutional investors have consistently raised stakes in around 60 companies in the last four quarters. The majority of the stocks belong to the small & midcap space. In another development, the Union Cabinet and the Cabinet Committee on Economic Affairs (CCEA), has approved a proposal of the Department of Telecommunications to conduct spectrum auction and assistance of about Rs 3,500 crore for sugarcane farmers, among other key decisions. India’s factory output expanded at 3.6% to eight-month high for the second consecutive month in October to touch an eight-month high, signaling that the recovery trend remains steady. Going forward market will continue to track global as well as domestic factors such as increase or decrease of Covid-19 infection, rupee movement, crude oil prices, and inflow & out flow of foreign fund among others.
On the commodity market front, it was a good week for entire asset classes on vaccine progress amid clarity in US stimulus. Commodities were not behind and saw recovery in most of the counter. CRB closed above the mark of 165. Multi year lows in dollar index also made commodities attractive to the investors. With clarity in stimulus packages in US commodities may remain trade firm, nevertheless current level is expensive to buy so one should wait for some dip in the prices for next buy. Gold and silver may touch 50800 and 69000 respectively in days to come. Base metals may face some resistance as the rally seems to be overstretched. Seasonal demand, withdraw in inventory, lower dollar index and new stimulus may fuel rally in crude at every level. GDP of UK, GDP, Core PCE Price Index, Michigan Consumer Sentiment and Durable Goods Orders of US etc are few data scheduled this week. Christmas celebration is already there and its impact could be seen in the commodities as well, going forward, we may witness thin trading volume.
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.
The company is doing well in EPC segment with its good order book, healthy return ratios and clean balance sheet. In line with that, the management of the company has raised guidance towards revenue and margins to 13-13.5%. The management has also guided for sustaining current margins and key focus would be on road (EPC, HAM, both)with some inflows expected from other infrastructure verticals. Thus, it is expected that the stock will see a price target of Rs.203 in 8 to 10 months’ time frame on an one year average P/BVx of 1.59x and FY22 BVPS (Book Value per Share) of Rs.127.68.
With an objective to expand institutional credit flow to the housing needs of urban poor, the Government of India (GoI) has launched the Credit Linked Subsidy Scheme (CLSS) under its Housing for all Mission. The company is targeting 8-10% loan growth for the year with expectations of clocking higher than pre-Covid level of disbursements in Q3 and Q4. Thus, it is expected that the stock will see a price target of Rs.290 in 8 to 10 months’ time frame on a one year average P/BVx of 0.78x and FY22 (E) BVPS (Book Value per Share) of Rs.371.77.
The stock closed at Rs 121.25 on 18th December 2020. It made a 52-week low at Rs 56.00 on 24th March 2020 and a 52-week high of Rs. 122.70 on 18th December, 2020. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 96.68.
Short term, medium term and long term biases are looking positive for the stock as it is trading in higher highs and higher lows on charts, which is bullish in nature. Apart from this, it has formed an “Inverted Head and Shoulder” pattern on weekly charts and has given the breakout of same, & managed to close above the neckline breakout of pattern, so buying momentum may continue for coming days. Therefore, one can buy in the range of 118-120 levels for the upside target of 135-140 levels with SL below 111.
The stock closed at Rs 476.60 on 18h December, 2020. It made a 52-week low of Rs 202.00 on 13th March, 2020 and a 52-week high of Rs. 481.00 on 17th December, 2020. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 381.30.
As we can see on charts that stock is trading in higher highs and higher lows sort of “Rising Channel” on weekly charts which is considered to be bullish. Last week, stock ended with over 2% gains, closed on verge of breakout of pattern along with volumes so further upside is expected from current levels. Therefore, one can buy in the range of 470-473 levels for the upside target of 510-520 levels with SL below 445.
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 seventh consecutive week with Nifty closing above 13750 mark while Bank Nifty also gained marginally higher with closing above 30700 mark. IT and pharma counter supported the gains in Nifty while PSU banks remained under pressure during the week. From derivative front, put writers at 13700 strike supported the Nifty index while call writers seen shifting to higher bands. This clearly shows a bit of discomfort among bears. The Implied Volatility (IV) of calls closed at 17.92% while that for put options closed at 18.77. The Nifty VIX for the week closed at 19.16%. PCR OI for the week closed at 1.98 indicates more puts writing than calls. From technical front, secondary oscillators suggest that markets are likely to remain volatile in coming sessions while bias should remain in favour of bulls as far Nifty is holding above 13500 mark. On higher side, now 14000 would act as key psychological hurdle for Nifty. Any dip into the prices should be use to create fresh longs as bulls are likely to grip the markets.
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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 trade range bound within 5600-5900 levels, with a limited downside as the demand is intact, despite large carryover stocks and steady supplies. It is reported that increasing shipments of spices by rail to Bangladesh in the past one month has given a fillip to exports from the country. From June to November this year, 8,964 tonnes of turmeric have been exported by rail to Bangladesh from the Andhra PradeshTelengana belt. The exporters are showing keen interest to switch over to rail as the preferred mode for transport, considering the potential advantage of uninterrupted movement of consignments. Jeera futures is continuously crashing down and is trading near to yearly low of 12750, being weighed by prospects of higher output this season. This season, the progressive area of Rabi 2020-21 under cumin in Gujarat is 4,53,704 hectares as compared to 3,75,533 hectares during 2019-20 and higher than 4,06,141 hectares of last three year average. Demand from domestic stockists has slowed down as they are waiting for the new crop to hit the market. Going ahead, this bearish trend is expected to persist and possibilities are there the January contract may make a new low near 12600-12300. Dhaniya futures (Jan) may continue to witness sell on rise and plunge towards 5700-5500, facing resistance near 6000 as the area under cultivation has doubled this year as compared to last three year average. This season, the progressive area of Rabi 2020-21 under coriander in Gujarat has reached 1,28,591 hectares as compared to 67,278 hectares during 2019-20 and more than double of 62,641 hectares of last three year average.
Bullion prices were on track to post their third consecutive weekly gain on growing expectations for additional stimulus measures in the United States. U.S. Congressional Republicans and Democrats scrambled to pass a new round of coronavirus aid with lawmakers from both parties saying that failure to agree was no longer an option. An unrelenting U.S. coronavirus surge pushed hospitals further to their limits as the United States pressed on with its immunization rollouts and prepared to ship nearly six million doses of a new vaccine on the cusp of winning regulatory approval. U.S. congressional negotiators were “closing in” on a $900 billion COVID-19 assistance package planned to provide $600-$700 stimulus checks for individuals, dragging the dollar to a more than two-year low and pushing bullion counter upside. With interest rates anchored at zero, the Fed vowed to keep pumping cash into financial markets until the U.S. economy’s recovery is secure. With interest rates anchored at zero, the Fed vowed to keep pumping cash into financial markets until the U.S. economy’s recovery is secure. Bullion, considered a hedge against inflation, has risen over 24% so far this year amid the unprecedented stimulus unleashed globally. Raising concerns over the U.S. economy’s recovery, the number of Americans filing first-time claims for jobless benefits unexpectedly rose last week as mounting COVID-19 infections battered business operations. Ahead in this week, we may continue to witness huge volatility and gold may trade in the range of 48600 -51300 and Silver may trade in the range of 64000-69100. Whereas on COMEX gold may trade in the range of $1840-$1920 and Silver may trade in the range of $24.10-$27.90.
Soybean futures (Jan) is expected to trade on a bullish note and test 4600, taking support near 4350 levels. Global tightness in soybean is making its meal prices expensive and making Indian soy meal viable option for overseas buyers. Hence, local soybean crushers are continuing to pursue for more beans at lower prices to keep their export commitments intact. On CBOT, upbeat demand and concerns about dry weather conditions in key growing areas of South America have pushed soybean prices to their highest in more than six years. USDA projects the 2020/21 U.S. soybean crush to be record large at nearly 2.2 billion bushels, growth of over 15% over the past five years. RM Seed futures (Apr) may witness consolidation in the range of 5250-5550 with upside getting capped. The deterrent factors that will probably keep a check on the prices is the recent move by the Food Safety and Standards Authority of India (FSSAI) to withdraw its earlier order that prohibited the blending of mustard oil in the country. Secondly, the sowing area under mustard is rapidly increasing this Rabi season and is said to have surpassed the normal area slightly. The edible oils counters on the national bourse are making new all time high in every session, being buoyed by bullishness of their counterparts in the international market. The main factors behind this rally are the strong upside momentum in CBOT soybean, propelled by dollar index trading near 2 ½ year low and secondly strong appetite of China for oilseeds as well as edible oils. Going ahead, we may see soy oil futures (Jan) can test 1150 and CPO futures (Jan) heading towards 960 levels respectively.
Crude Oil prices climbed and touched a 9-month high, with traders optimistic about progress toward a U.S. fiscal stimulus deal and record-breaking refining demand in China and India. U.S. lawmakers edged closer to agreement on a $900 billion virus-relief spending package. Asia was ahead of the curve in recovery mode from the Coronavirus which is raising expectations that in the New Year we will see a rapid increase in crude oil demand, as the vaccine rolls out in the U.S. But on the other hand, more than 73.65 million people have been reported to be infected by the novel coronavirus globally and 1,654,920 have died. The spike in cases is leading to tough restrictions on travel, weighing on near-term fuel demand and market sentiment. OPEC+ plans to add 500,000 barrels per day of supply to the market in January, in the first step toward returning 2 million bpd to the market. While OPEC+ has shown it’s ready and willing to adapt to evolving market conditions, which should protect crudes value in the longer term, near-term challenges may still weigh on recent bullish momentum. Ahead in this week crude price may witness huge volatility within the range of 3380-3720, where buying on dips would be strategy. Natural gas futures edging higher, due to technically oversold conditions and uncertainty over the overnight forecasts. The weather is expected to be cooler than normal on the east coast for the next 2-weeks while the weather is expected to be warmer than normal throughout most of the west coast. Ahead in this week we may expected prices may trade in range where support is seen near 180 and resistance is seen near 215.
Cotton futures (Dec) is expected to trade on a bullish note in the range of 20300-21000 taking positive cues from the international market. ICE Cotton prices has climbed to their highest level since April 2019, propelled by a strong weekly exports sales report and hopes for more U.S. economic stimulus and its likely fillip to demand for the natural fiber. Further helping cotton, the dollar index fell to its lowest in over 2-1/2 years against its rivals, making the natural fiber less expensive for holders of other currencies. Back at home, cotton prices are firm on the spot markets supported by steady demand from private millers and stockists. The domestic prices are closely following the export figures of the international cotton, due to which demand for the fibre has been improving on the domestic front. Chana futures may witness a consolidation for the third consecutive week in the range of 4650-4850, as the gains are being capped by rising acreage. The latest statistics showed that led by gram, pulses area has gone up by 9% to 131 lakh hectares. Maharashtra, Odisha and Jharkhand reported higher sowing as compared to the previous year. There is a near 13% increase in gram cultivation. Guar seed futures (Jan) will probably witness an upside momentum towards 4100, while guar gum futures (Jan) can gain further towards 6450 levels, respectively, taking positive cues from higher oil prices in the international market. The traders estimated that guar gum and derivatives export will reach to 25,000-27,000 MT and over 30,000 MT in coming months if the momentum remains intact.
The promise of U.S. Federal Reserve to pump more money into markets, hopes for a U.S. stimulus package this week and upbeat economic data from China & US may support the industrial metals. But, profit booking at higher level cannot be denied. Copper may test to 625 levels by taking support near 600. Copper prices are getting support from declining stockpiles around the world, optimism about strong demand from China. Factory output in China grew at its fastest pace in 20 months in November as revived consumer spending and a gradual easing of COVID-19 restrictions in major trading partners lifted demand for the country’s manufactured goods. Manufacturing output in the United States rose more than expected in November, boosted by motor vehicle production. Inventories in the LME system at 127,725 tonnes are the lowest since September, stocks in ShFE warehouses at 82,092 tonnes are the lowest since 2014 and Comex stores contain 78,084 tonnes, the lowest since June. Zinc may trade in the range of 217-226 while Lead can move in the range of 158-165. A global zinc market surplus expanded in October and the lead market was in deficit, the International Lead and Zinc Study Group (ILZSG) said. Nickel may trade with bullish bias in the range of 1290-1330. Violent protests by hundreds of workers at one of Indonesia’s biggest nickel smelters on Sulawesi island operated by PT Virtue Dragon Nickel Industry have increased the supply concern. Aluminum may move in the range of 163-170 levels. Flourishing aluminium demand in China and the United States, higher freight costs and tight scrap supplies are expected to fuel further rises in prices.
NATURAL GAS MCX (DEC) contract closed at Rs. 193.90 on 17th Dec’2020. The contract made its high of Rs. 259.60 on 02nd Nov’2020 and a low of Rs. 175.90 on 10th Dec’2020. The 18-day Exponential Moving Average of the commodity is currently at Rs 198.61. On the daily chart, the commodity has Relative Strength Index (14-day) value of 43.646.
One can buy above Rs. 201 for a target of Rs. 225 with the stop loss of Rs. 188.
LEAD MCX (DEC) contract closed at Rs. 159.70 on 17th Dec’2020. The contract made its high of Rs. 165.10 on 30th Nov’2020 and a low of Rs. 146.05 on 27th Oct’2020. The 18- day Exponential Moving Average of the commodity is currently at Rs. 159.19. On the daily chart, the commodity has Relative Strength Index (14-day) value of 61.587.
One can buy near Rs. 160 for a target of Rs. 170 with the stop loss of Rs. 155.
GUARSEED NCDEX (JAN) contract was closed at Rs. 3974.00 on 17th Dec’2020. The contract made its high of Rs. 4497.00 on 27th Oct’2020 and a low of Rs. 3853.00 on 08th Dec’2020. The 18-day Exponential Moving Average of the commodity is currently at Rs. 3989.52. On the daily chart, the commodity has Relative Strength Index (14-day) value of 44.769.
One can sell below Rs. 3950 for a target of Rs. 3600 with the stop loss of Rs 4120.
It was a good week for entire asset classes on vaccine progress amid clarity in US stimulus. Commodities was not behind and saw recovery in most of the counter. CRB closed above the mark of 165. Multi year lows in dollar index also made commodities attractive to the investors. The dollar was down with investors continuing a retreat from the safe-haven asset after progress in U.S. stimulus measures and Brexit talks boosted risk appetite. Bullion counter amazed the market with its sharp upside move. Gold was up with the U.S. Federal Reserve’s pledge to keep interest rates low until an economic recovery is secure giving the yellow metal a boost. The Fed also promised to continue its bond-buying program until “substantial further progress” in restoring full employment and hitting its 2% inflation target. In Comex and mcx, it was trading near $1890 and Rs 50300 respectively. Silver was firm also on strength in both gold and base metals. In Comex, it jumped the strong resistance of $26 and 67800 in mcx. Base metals counter remained firm on progress on stimulus. Nevertheless nickel gave some of its weekly gain on profit booking. Republicans and Democrats in Congress were reportedly “closing in on” approving a $900 billion stimulus bill on last Wednesday, the most positive note seen in months. They are also working to pass a $1.4 trillion spending bill for the fiscal year beginning on Oct. 1. by Friday to prevent a government shutdown.Energy counter gave some further buying opportunities. Oil hit a nine-month high on last Thursday after government data showed a fall in U.S. crude stockpiles last to last week, while progress towards a U.S. fiscal stimulus deal and strong Asian demand also buoyed prices. U.S. stockpiles posted a larger-than-expected draw, three of India's refiners are operating almost at 100% capacity, indicating crude demand remains strong. Natural gas prices were trying to get support as a cold snap has hit the United States.
In agri counter, action was therein oil seeds, guar and in cotton complex. Soyabean was marginally up. 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. Cotton had limited upside. The upside was capped despite of 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. Guar was up on crude bullishness.
After receiving approval from markets regulator Securities and Exchange Board of India (Sebi), leading commodity bourse MCX is going to launch of futures trading in natural rubber. The rubber futures contracts will be available for compulsory delivery for investors who are keen to trade in rubber quality of 'Ribbed Smoked Sheets4' for a minimum lot size of 1 tonne.
Natural rubber is an essential raw material used in the creation of more than 40,000 products. Around 50-60 % of the global rubber production is used by the tyre manufacturing sector thanks to its strength and heat resistance. It’s also used in hoses, automotive parts, foam mattresses, electrical and electronics, health care, power transmission, cement industry, and battery boxes.
Worldwide consumption for natural rubber has increased steadily in the recent decade and the Asian story continues to drive demand for the raw material. Thailand, Indonesia, India, China, Malaysia, Vietnam are the major producers of rubber. The global production was projected to be close to 13.7 million tons in 2019. Data from the Association of Natural Rubber Producing Countries show that global rubber production dropped 8.7 percent to 7.78 million tonnes in January-August this year. The association expects production to be 6.8 percent lower at 12.90 million tonnes during the full year 2020. Global natural rubber consumption was projected to be close to 13.6 million tons in 2019, of which approx. 6.5 million tons was consumed in India and China alone.
India's stands at sixth place in the production of natural rubber and second place in world consumption. Kerala is the main area of cultivation which covers 80 % of the total sown area. The other major contributors are Tamil Nadu, North East Region mainly Tripura, Assam followed by Karnataka.
In India, low prices for natural rubber and higher cultivation costs had been discouraging growers. It resulted in production dropping from a record high of 9.12 lakh tonnes 2012-13 to 6.51 lakh tonnes during 2018-19. Last year, the output increased to 7.12 lakh tonnes but it could be lower this year due to COVID-19 that forced a shutdown of plantations and industries.
| Trading & Delivery unit | 1 MT |
| Price quote | 100 kg |
| Tick size | Rs 1 |
| Quality | RSS4 |
| Delivery center | Palakkad, Kerala |
| Settlement type | Compulsory delivery |
| Initial margin | 8% (May be modified as per SEBI guidelines) |
| Position limits |
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Considering the huge market size for natural rubber in India in terms of production and imports, the rubber futures contracts holds special significance for market participants. The rubber futures trading will provide a hedging tool for stakeholders in the rubber value chain comprising growers, traders, exporters, importers and endusers like the tier industry.
Indian Rupee posted the biggest jump on weekly basis in the last two months after strong global equities rally amid optimism in vaccine roll-outs, various central bank pledges to support easy monetary policy as well further hopes of an end to political deadlock on the Brexit front. Additionally rupee got supported after DXY fell below 90.00 for the first time since April 2018.Meanhwhile the pound rallied for a fourth day in a row on Thursday as investors rushed to bet on a Brexit trade deal, putting the currency on course for its best week since March. Accordingly sterling surged above $1.36 up from above $1.32 in last few days. The gains have been driven by signs that the impasse in UK-EU trade talks is been gradually getting over. On the flip side euro remains upbeated after the Federal Reserve decided to keep buying at least $120bn of debt per month until “substantial further progress has been made” in the recovery, moving to strengthen its support for the US economy amid surging corona virus infections which weigh dollar further. Going forward next week, more headlines in Brexit will direct the forex major pairs.
USD/INR (DEC) contract closed at 73.6625 on 17-Dec-20. The contract made its high of 73.8400 on 15-Dec-20 and a low of 73.4625 on 17-Dec-20 (Weekly Basis). The 21-day Exponential Moving Average of the USD/INR is currently at 73.9318.
On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 36.42. 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 100.2075 on 17-Dec-20. The contract made its high of 100.2750 on 17-Dec-20 and a low of 97.9825 on 15-Dec-20 (Weekly Basis). The 21-day Exponential Moving Average of the GBP/INR is currently at 98.7797.
On the daily chart, GBP/INR has Relative Strength Index (14-day) value of 56.81. One can buy at 99.50 for a target of 100.50 with the stop loss of 99.00.
| 17th DEC | Bank of England ready to tolerate a Brexit inflation spike |
| 16th DEC | COVID-19 surge, depleted fiscal stimulus thump U.S. retail sales |
| 16th DEC | BOJ to hold fire in hope extending aid programmes will keep pandemic pain at bay |
| 16th DEC | BOJ loads up $6 billion in ammunition to combat market turmoil |
| 16th DEC | Japan posts record run of export declines on softU.S., China demand |
| 15th DEC | U.S. manufacturing production solid; imported inflation muted |
| 14th DEC | India's November retail inflation eases, RBI seen to hold on rates |
| 14th DEC | Japan to decide on third extra budget to ease COVID-19 pain |
| 14th DEC | Japan Inc shakes off initial COVID-19 gloom but resurgence hits capex, hiring - BOJ survey |
EUR/INR (DEC) contract closed at 90.0750 on 17-Dec-20. The contract made its high of 90.1175 on 17-Dec-20 and a low of 89.3250 on 14-Dec-20 (Weekly Basis). The 21-day Exponential Moving Average of the EUR/INR is currently at 89.2274.
On the daily chart, EUR/INR has Relative Strength Index (14-day) value of 70.19. One can buy at 90.00 for a target of 91.00 with the stop loss of 89.50.
JPY/INR (DEC) contract closed at 71.4500 on 17-Dec-20. The contract made its high of 71.4775 on 17-Dec-20 and a low of 70.7400 on 14-Dec-20 (Weekly Basis). The 21-day Exponential Moving Average of the JPY/INR is currently at 71.2100.
On the daily chart, JPY/INR has Relative Strength Index (14-day) value of 42.54. One can sell at 71.25 for a target of 70.25 with the stop loss of 71.75.
(3/5)
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The company proposes to utilise the Net Proceeds towards funding the following objects:
Considering the P/E valuation on the upper end of the price band of Rs. 315, the stock is priced at pre issue P/E of 12.35x on its actual annualised FY20 EPS of Rs. 25.52. Post issue, the stock is priced at a P/E of 13.65x on its EPS of Rs. 23.08. Looking at the P/B ratio at Rs. 315 the stock is priced at P/B ratio of 2.81x on the pre issue book value of Rs.112 and on the post issue book value of Rs. 141.64 the P/B comes out to 2.22x.
On the lower end of the price band of Rs.313 the stock is priced at pre issue P/E of 12.27x on its actual annualised FY20 EPS of Rs. 25.52.Post issue, the stock is priced at a P/E of 13.56x on its EPS of Rs. 23.08. Looking at the P/B ratio at Rs. 313, the stock is priced at P/B ratio of 2.79x on the pre issue book value of Rs. 112 and on the post issue book value of Rs. 141.64, the P/B comes out to 2.21x.
Incorporated in 2001, Antony Waste Handling Cell Limited is one of the leaders in India's Municipal Solid Waste Management (MSW) industry. The business is offering a full spectrum of MSW services i.e. solid waste collection, processing, transportation, and its disposal across the country. The company's key business operations include MSW C&T, MSW processing, and Mechanized sweeping project.
A leading service provider in MSW management sector with end-to-end capabilities: company believes that its established track record of more than 19 years, scale of operations, diversified geographic presence, vertical integration and strong position in the MSW management sector enables it to identify and win new contracts.
Strong track record of project execution: The company has an established track record of 19 years in executing solid waste projects. Having undertaken more than 25 projects as of November 15, 2020, of which 18 are ongoing, it has a demonstrated track-record as a comprehensive service provider equipped with the resources to handle large-scale projects for municipalities and private players. The company believes that its strong track record has enabled it to bid for, and be awarded, large-scale projects by its customers. Kanjurmarg site (which is being currently run by Antony Lara) in Mumbai is a key success story of scientific landfill in India. As of November 15, 2020, it had processed approximately 7.63 million metric tons of waste at its Kanjurmarg site since Fiscal 2010.
De-risked business model with diverse portfolio of projects: The company portfolio of 18 ongoing projects as on November 15, 2020, comprises 12 MSW C&T projects, two MSW processing project and four mechanized sweeping projects. Its project portfolio is diversified across services provided, counterparties, project duration, nature of contracts and geographical areas where it operates.
Access to technology backed vehicles and equipment enables it to manage its operations efficiently: It has have consistently invested in its fleet of vehicles. As of November 15, 2020, it owns a fleet of 1,147 vehicles, of which 969 were equipped with GPS technology, which allows to operate its projects efficiently. It procures the components of its vehicles and equipment mostly from leading international suppliers, including Compost System GmbH. The company believes that vehicle ownership provides it with a competitive advantage and helps it meet its service level commitments in a cost-effective manner.
Capitalize on the growth opportunities in the MSW management sector by continued focus on bidding for MSW projects: The management and Handling Rules promoting the involvement of private agencies in waste collection, treatment and disposal. The company believes that its past experience, 119 financial strength, acumen and resultant credentials will make the company eligible to bid for most projects that come up for bidding in the MSW management sector. The company will continue to pursue a broad range of projects in urban or semi-urban areas with limited counter-party risk and healthy operating margins.
Continue with rational selection of projects and strategically expand its geographical footprint: The company will also continue to evaluate bidding with financial and strategic partners for projects and technologies which form a part of MSW management value-chain but are not a part of its core competence.
Continue to focus on enhancing operational efficiency: The company intends to continue to focus on improving its project execution and operational efficiencies in order to maintain its credentials as well as profit margins.
Antony Waste Handling Cell intends to capitalise on the growth opportunities in the MSW management sector by continued focus on bidding for MSW projects. It is dependent on municipal authorities for a substantial proportion of its business and revenue. Also it is dependent on a limited number of customers for a significant portion of its revenue. The loss of any of its major customer due to any adverse development or significant reduction in business from its major customer may adversely affect its business. Moreover, the major portion of the issue is offer for sale. Only 85 crore will come to the company raised through fresh issue. Ahigh risk taker may opt the issue.
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Ratings agency Crisil on December 17 said the mutual fund industry will post double-digit growth for the next few years and its assets under management will cross Rs 50 lakh crore by 2025. Crisil's research wing said the increase in inflows is bound to be fuelled by investments into equities as against other asset classes. Investor interest in the mutual funds segment has been changing lately because of market volatility, and the average assets under management stood at around Rs 30 lakh crore as of November 2020.
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
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