In the week gone by, global stock markets moved higher after October’s reading of US consumer prices raised investor hopes that inflation has peaked and US fed would remain low in their Policy actions. Actually, investors cheered the prospect of less hawkish moves by the central bank. The US central bank has delivered four consecutive rises of 0.75% points this year in an attempt to slow price growth. To note, October’s consumer price index rose just 0.4% for the month and 7.7% from a year ago, its lowest annual increase since January and a slowdown from the 8.2% annual pace in the prior month. The U.K. economy contracted by 0.2% in the third quarter of 2022, signaling what could be the start of a long recession. The Bank of England last week forecast the country’s longest recession since records began. The country faces a historic cost of living crisis, fueled by a squeeze on real incomes from surging energy and tradable goods prices. Chinese stock markets moved higher after news of China easing its stringent Covid rules boosted commodity-linked stocks as well as luxury goods retailers.
Back at home, a firm turnaround in foreign investor sentiment after a disappointing month of September is lending strength to domestic share market. Foreign Investors have cumulatively accumulated equities worth over $3 billion in the period. The recent quarterly earnings season is displaying inherent strength of the Indian economy amid fears of a global recession. Aided by impressive credit growth, improving asset quality and rising margins, the banking sector is showing strength. The autos and auto ancillaries sector posted good numbers this quarter and saw revenue grow by 31 percent on an annualised basis, which is quite admirable. With the cooling off of the US dollar index from the peak near the 115-level to the sub-110 range, the Indian rupee is also gaining strength. Moody's slashed India's GDP growth projections for 2022 to 7 per cent from 7.7 per cent earlier as the global slowdown and rising domestic interest rates will dampen economic momentum. Going forward market trend will continue to take direction from both the global as well as domestic factors.
On the commodity market front, CRB saw a pause in the upside last week despite sharp fall in dollar index. Dollar index slipped continuously from the above 114 to 108 in last four week. Gold prices rose to a 2-½ month high as signs of cooling U.S. inflation drove up hopes that the Federal Reserve will trim its pace of interest rate hikes in the coming months. It is expected to trade high in a range of 51500-53000 levels. Silver too follow the footsteps of gold and has potential to touch 63500-64000 levels. Crude can move in a range of 6900-7450 levels. Base metals may see further rise on fall in dollar index and inflation. GDP Growth Annualized Prel and Inflation Rate of Japan, Employment Change, Unemployment Rate, Core Inflation, UK Fiscal Statement and Inflation Rate of UK, GDP Growth Rate QoQ 2nd Es, Core Inflation Rate and ZEW Economic Sentiment Index of Euro Area, ZEW Economic Sentiment Index of Germany, PPI, Building Permits Prel and Retail Sales of US, Inflation data of Canada, etc are some very important triggers scheduled this week, which will give significant impact on commodities prices.
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 increasing its green energy capacity and it augers well for the company. The company is well planned to benefit the rising power demand in the company with huge installed capacity already in place and plans to add additional capacity mostly in green energy space indicate future growth visibility of the company. Thus, it is expected that the stock will see a price target of Rs. 202 in 8 to 10 months’ time frame on target P/BVx of 1.25x and FY24 BVPS of Rs.161.74.
The company has reported strong results driven by the launch of Lenalidomide capsules in the US market. The management of the company guided that it would focus to build a robust pipeline with products that improve affordability and access to patients to progress well in its productivity, innovation and sustainability agenda. Thus, it is expected that the stock will see a price target of Rs.5482 in an 8 to 10 months time frame on an target P/BV of 3.50x and FY24 BVPS of Rs.1566.19.
The stock closed at Rs 1570.10 on 11th November, 2022. It made a 52-week low at Rs 1355.00 on 26th September, 2022 and a 52-week high of Rs. 1953.90 on 17th January, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 1540.90
Short term, medium term and long term bias are looking positive for the stock as it is trading in higher highs and higher lows on chart which are bullish in nature. Apart from this, the stock is forming an “Inverse Head and Shoulder” pattern on daily chart, which is bullish in nature. On the technical indicators front such as RSI and MACD are also suggesting buying for the stock. Therefore, one can buy in the range of 1545-1560 levels for the upside target of 1720- 1770 levels with SL below 1470 levels.
The stock closed at Rs 719.00 on 11th November, 2022. It made a 52-week low at Rs 520.05 on 26th May, 2022 and a 52- week high of Rs. 790.00 on 19th April, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 644.56
As we can see on chart that the stock is trading in higher highs and higher lows, sort of rising wedge which is bullish in nature. Apart from this, it has formed a bull flag pattern on daily chart and has given the breakout of same along with high volumes so further upside is anticipated from the stock in coming days. Therefore, one can buy in the range of 707- 715 levels for the upside target of 780-800 levels with SL below 675 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
Banknifty hit an all-time high, fuelled by news of merger between Hdfc bank and Hdfc ltd which is expected to command a MSCI Weight of 13% up from 5.78%. Nifty is also trading near an all-time high. Metal, banking and IT sectors were strong whereas selling was seen in pharma stocks. In nifty, highest call open interest outstanding is at 19000 level followed by 18500 level whereas put open interest is at 18000 level followed by 18300 level. Put writers are more active than call writers in Friday’s session after the gap up opening. Implied volatility (IV) of calls closed at 14.21% while that for put options closed at 15.38%. The Nifty VIX for the week closed at 15.57%. PCR OI for the week closed at 1.24. From the technical front, both the indices are trading above its moving averages and there is still a space for upward movement as suggested by the oscillators. We expect the market to continue its momentum towards the upside and any fall in the market should be considered as a buying opportunity. NIfty support is placed around 18200-18000 level whereas on the upside, 18500 will act as resistance and beyond this level, we can see further upward movement.
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**The highest call open interest acts as resistance and highest put open interest acts as support.
# Price rise with rise in open interest suggests long buildup | Price fall with rise in open interest suggests short buildup
# Price fall with fall in open interest suggests long unwinding | Price rise with fall in open interest suggests short covering
Turmeric NCDEX (Dec) futures have shown good recovery in recent days due to improved domestic demand. Stockiest are active in wake of weaker supply outlook for upcoming season. Turmeric acreages have dropped significantly in major growing states signaling lower production in upcoming season. Yield is also likely to be impacted adversely due to unfavorable weather condition in Maharashtra and other states. Export enquires are good at prevailing levels that will cap the downfall in prices. Turmeric export surged up by 5% Y-o-Y in Aug’22 and increased by 15% Y-o-Y so far in year 2022. Considering the above fundamentals, Prices are likely to sustain the support of 7200 and expected to move towards 7900 in coming days.
Jeera NCDEX Dec futures will keep its gains intact mainly due to supply tightness in domestic market. Arrivals remained poor as stockiest are still optimistic to further rise in prices. Total arrivals of jeera were reported at 5.2 thousand tonnes so far in Nov’22 compared to 5.3 thousand tonnes of previous year for corresponding period. Stockiest are holding the stocks in wake of lower production amid tighter carryover stocks of previous years that kept total supply lower in year 2022. However, limited buying by marginal traders will cap the gains. Marginal buyers are going for hand to mouth buying due to higher prices as Jeera prices are still ruling much higher compared to previous year. Jeera Dec prices are likely to hold the support of 24300 and will move towards 25500.
Dhaniya NCDEX Dec Prices are expected to trade down on subdued buying in local market. Buying in dhaniya is likely to be limited in wake of normal sowing progress. Supplies are adequate at major trading centers due to rising imports that is keeping buyers always from bulk buying. Dhaniya prices are still ruling above to the normal prices of dhaniya that will keep marginal players away from heavy buying unless prices show its normal behavior. Ongoing sowing progress will be the major price driver in coming week and any disruption in sowing activities will cap the losses in prices. Dhaniya NCDEX Dec Prices are likely to honor the resistance of 10800 and will slip towards 9850 level in near term.
Gold prices jumped over 4.7% and route to their biggest weekly rally in more than two years as U.S. data pointing to slowing inflation boosted hopes that the Federal Reserve would slow its aggressive rate hikes. The dollar index slipped lower and was headed for its biggest weekly drop since March 2020. Benchmark U.S. 10-year Treasury yields slipped to a one-month low. A weaker dollar makes gold more appealing to overseas buyers. U.S. consumer prices rose less than expected in October, indicating that inflation was slowing, which raised hopes that the Fed will begin scaling back its hefty rate hikes. The softer-than-expected CPI print supports the case for a step down in the pace of hike at the December Fed meeting that can translate into a resumption of the dollar trend lower, providing a window for gold to stage a mild recovery. Market participants now see a 71.5% chance of a 50-basis-point rate hike at the Fed’s December meeting. IMF MD Georgieva said that the biggest challenge facing central bankers now is bringing inflation down. Silver rose 1.5% and was poised for its second straight weekly advance. Global stocks extended gains as China’s pullback on Covid curbs added fuel to the rally that began on Wall Street after slower-than-projected US inflation data. On technical front, COMEX Gold is presently trading near resistance zone, if prices break and sustain above $1765 then we might see upside rally till $1810 whereas support remains at $1720. Silver chart pattern also looks positive and possible trading range would be $21.250-$23.000. Ahead in the week MCX Gold may trade with bullish bias and trading range would be 51000-54000 and for silver it would be 59600-65400.
Crude oil prices spiked as fears of a US recession eased but were on track for another weekly loss amid jump in COVID-19 cases in top oil importer China raised the spectre of weaker fuel demand. So far in week, WTI has fallen more than 6%, while Brent has dropped nearly 5%. Price gains were capped by China continuing to pose a risk on the demand side, with COVID-19 cases on the rise in the manufacturing hub of Guangzhou, where authorities urged residents to work from home. Since traders are hyper-sensitive to lockdowns in the world's largest oil importer, this could temporarily hold the oil market's top-side ambition in check. In addition to ongoing OPEC+ supply cuts, Russian oil supply should fall as the EU ban on Russian crude and refined products comes into effect. The EU will ban Russian crude imports by Dec. 5 and Russian oil products by Feb. 5, in retaliation to Russia's invasion of Ukraine. On the technical front, WTI crude may trade with sideways to positive bias and the possible trading range would be $72- $94. Ahead in the week, MCX Crude oil may trade in the range of 6800-7500 levels. Natural gas futures were witnessed higher volatility throughout the week on forecasts for less-cold weather in late November. On Monday, the market hit a one-month high, but only two days later, it was testing a one-week low. Besides the cooler weather expectations, traders were also reacting to a powerful tropical storm approaching the Southeast. It is expected to cause power outages and consequently lower demand for a wide region. Ahead in the week prices may continue to trade with higher volatility and the possible trading range would be 480-580.
Base metals may trade with bullish bias as U.S. inflation data bolstered hopes for a slower pace of interest rate hikes in the world's largest economy that would support industrial metals demand. However, rising coronavirus infections and weak economic data in China deepened concerns of weak demand from the biggest metals-consuming country. China's factory gate prices for October dropped for the first time since December 2020, and consumer inflation moderated, underlining faltering domestic demand as strict COVID-19 curbs, a property slump and global recession risks hammered the economy. But Chinese province Henan approved 26.2 billion yuan to support financing for troubled real estate projects and to ensure timely deliveries of presold homes, the National Business Daily reported, which could help with metals demand. Copper may trade in the range 670-710. Copper prices are unlikely to fall much further because of high infrastructure spending around the world. Tight global supplies are supporting the copper market as the copper inventories on LME warehouses dropped 950 tonnes, trimming headline levels to 80,025 tonnes, the lowest in 7-1/2 months. Zinc can trade in the range of 250-280 levels. Lead can move in the range of 175- 186 levels. Aluminum may trade in the range of 195-215 levels. China’s zero- Covid policy has seen aluminium demand drop as factories have closed for extended periods and the slowdown in the global economy has further reduced consumption. Steel long (Dec)is likely to trade in the range of 44800- 46500 levels on NCDEX. On-going production cuts in China and planned blast furnace maintenance during winter have signalled the unlikely recovery of steel demand up to the end of 2023.
Cotton MCX Nov prices are expected to trade mixed to higher as post Diwali demand is likely to improve. Quality of arrivals has improved in recent days that prompted millers to increase their buying activities. Price of benchmark Shankar 6 cotton jumped up to 67300 INR/candy due to increased demand. Not only domestic demand, export enquires of Indian cotton is also improved in recent days that is also likely to help prices to trade on positive bias. Carryover stocks of cotton are tighter in year 2022 that is likely to keep total supply lower on yearly basis. Cotton Association of India has estimated total supply at 388 lakh bales that includes 31 lakh tonnes of beginning stocks and 344 lakh tonnes of production wherein last year supply was 390 lakh bales. Expected rise in export demand from Bangladesh and other SEA nations will restrict the major losses. Prices are likely to find support 29500 and will move up gradually towards 35000 in near term.
Cotton seed oil cake NCDEX (Dec) futures are likely to trade higher due to emerging buying in domestic market. Apart from that, cotton seed oil cake prices will track the gain in cotton prices and will move accordingly as cotton prices are moving up on emerging fear of crop losses due to recent rainfall in major cotton growing states. Prices are likely to hold the support of 2400 and will move towards 2900 in coming week.
Guar seed Dec futures are likely to trade sideways to higher due to emerging buying in local market. Downward revision in production estimates and emerging export demand of gum will push prices further in coming days. Demand of gum and other byproducts like churi and korma is also increasing as stockiest are active in wake of weaker supplies in the market. Firmness in crude oil prices is also likely to keep market sentiments up for guar seed. Guar seed prices may hold the support of 4900 and is likely witness recovery towards 5400.
Mentha oil (Nov) is likely to trade on sideways to higher in coming days as prices may move up on technical buying. Mentha oil prices are ruling near to the support of 960 that will prompt market participants to enlarge their buying positions. Production is lower that the affected the pace of arrivals as well. Prices are likely to hold support of 950 and will move gradually towards 1010 in near term.
Castor seed (Dec) prices are likely to trade mixed to higher due to emerging buying in local market. Lower production estimates and tighter pipeline stocks will support firmness in prices. Going forward, castor seed prices are likely to hold the support of 6950 and will face the resistance of 7500 in near term.
It closed at Rs. 260.40 on 10th Nov 2022. The 18-day Exponential Moving Average of the commodity is currently at Rs 265.04. On the daily chart, the commodity has Relative Strength Index (14-day) value of 54.046. Based on both indicators, it is giving a buy signal.
One can buy near Rs. 270 for a target of Rs. 284 with the stop loss of 263.
It closed at Rs. 7031.00 on 10th Nov 2022. The 18-day Exponential Moving Average of the commodity is currently at Rs 7216.77. On the daily chart, the commodity has Relative Strength Index (14-day) value of 49.823. Based on both indicators, it is giving a buy signal.
One can buy near Rs. 7100 for a target of Rs. 7500 with the stop loss of 6900.
It closed at Rs. 7308.00 on 10th Nov 2022. The 18-day Exponential Moving Average of the commodity is currently at Rs 7241.80. On the daily chart, the commodity has Relative Strength Index (14-day) value of 58.467. Based on both indicators, it is giving a buy signal.
One can buy near Rs. 7250 for a target of Rs. 7650 with the stop loss of 7050.
NOTE: *M.High / M.Low stands for Monthly High / Monthly Low
CRB saw a pause in the upside last week despite sharp fall in dollar index. Dollar index slipped continuously from the above 114 to 108 in last four week. Dollar hovered around two-month lows on Friday after falling sharply on data that showed U.S. inflation eased more than expected. Bullion counter traded very strong from last two weeks as safe haven buying returned on expectation of only 50 basis points hike by Fed in next meet. Gold prices stuck to a 2-½ month high and were set for their best week in over eight months as signs of cooling U.S. inflation drove up hopes that the Federal Reserve will trim its pace of interest rate hikes in the coming months. Markets are now pricing in an 85% chance of a 50 basis point hike by the Fed in December, compared to last week’s expectations of a 47% chance. In energy counter, both crude oil slipped and natural gas prices dragged down. Oil prices fell on concerns that new COVID curbs in China, the world's biggest crude importer, will impact fuel demand. Crude oil stockpiles rose by 3.9 million barrels last week, the U.S. Energy Information Administration said, taking inventories to their highest since July 2021. Natural gas futures finished lower on Wednesday on forecasts for less-cold weather in late November amid continued volatility. On Monday, the market hit a onemonth high, but only two days later, it tested a one-week low. It was a good week for base metals in which they saw range bound to upside movements. Copper stocks on the LME touched a sevenmonth low on Wednesday, having slid 44% over the last month. Copper prices lowered today in LME due to a stronger dollar, weak economic data and rising COVID-19 cases in top metals consumer China. The discount on LME cash aluminium against the three-month contract rose to $15.44 a tonne, compared with a premium of $14.50 about a month ago.
In spices, turmeric was in range whereas jeera and dhaniya saw sharp fall due limited buying in local market. Prices may track ongoing sowing activities in Gujarat that have been delayed by 10-15 days due to untimely rainfall. Dhaniya was down in the wake of normal sowing progress. Supplies are adequate at major trading centers due to rising imports that is keeping buyers away from heavy buying. Guar rose for second consecutive week. Castor was marginally down. Mentha saw rebound from the lower levels. Cotton, kapas and cotton oil seed cake were up for second consecutive week on active buying in domestic as well as in international market. Improved export prospects backed by record depreciation of Indian rupee and rising seasonal demand of cotton kept cotton prices on upper category.
The Instruments representing gold in electronic form is termed as Electronic Gold Receipts (EGRs) and is notified as securities, with trading, clearing and settlement features similar to other securities that are currently available in India.
BSE is the first exchange in India has launched Electronic Gold Receipts (EGR).
Leading stock exchange BSE has launched Electronic Gold Receipt (EGR) on its platform, a move that will help in efficient and transparent price discovery of the yellow metal. It introduced two new products of 995 and 999 purity during the Muhurat trading on Diwali and trading will be in multiples of 1 gram and deliveries in multiples of 10 gram and 100 gram, the exchange said in a statement. BSE in February received in-principle approval from SEBI after which the exchange conducted several mock trading in the test environment for its members to facilitate trading in EGRs.
How to invest in EGR?
Gold will first have to be converted into a Demat account similar to share trading and then with the receipt investors can trade in gold. This Gold will be in vaults and vault manager will be provided by ERG.
Product Specifications
Delivery of Gold
Gold can be delivered in 10 grams and 100 grams. 10-grams gold delivery can be in the form of a bar or coin and 100 grams of gold will be only delivered in a bar. There are vaults in 22 locations in India and the gold will be delivered door to door from these vaults by agencies Brink’s India and Sequel Logistics.
Benefits Exchange Gold Receipts (EGR)
India is the second largest consumer of gold globally with annual gold demand of approximately 800-900 tonne. The country has remained a price-taker in the global markets and does not play any significant role in influencing the pricesetting for the yellow metal. This move is expected to change India's role as the price setter.
EGRs will cater to all market participants, which mean that buyers and sellers on the exchange will include individual investors as well as commercial participants. The exchange hopes that the EGR platform will lead to greater assurance in the quality due to better transparency.
The Indian Rupee ended the week over 2% gain as the dollar hit a two-month low as softer-than-expected U.S. inflation data ramped up expectations that the Federal Reserve will slow its pace of interest rate hikes. The annual inflation rate in the US eased for a fourth straight month to 7.7% in October, rising at the slowest pace since January and coming in below expectations for a milder drop to 8%. Treasury yields also declined sharply as investor’s revised expectations for the terminal rate lower, with the benchmark 10-year US yield dropping toward 3.8% for the first time in over a month. Money markets are currently priced for a more moderate 50 basis point Fed rate hike in December after it delivered four consecutive 75 basis point increases. The data boosted other currencies against the dollar. The Japanese yen at one point climbed to its biggest single-day rise since 2008 and the British pound notched its biggest daily advance since 1985. On charts, dollar rupee in the near month, the future is trading below its major Exponential Moving Average indicating downward trends for the short-term view. The pair is witnessing negative trade from a high of 83 marks and corrected over two points and for now facing a major support zone near 80.50 levels is the same breakout zone from where the sturdy bullish rally started while on the flip side, resistance is placed around 81.33 followed by 81.70 near month future levels for the coming session.
USDINR (NOV)is trading below its major Exponential Moving Average indicating downward trends for short term view. The Pair has major support placed around 79.90 levels while on higher side resistance is seen around 81.83 levels. The 21-day Exponential Moving Average of the USD/INR is currently around 82.20 Levels. On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 33.60.
One can sell at 81.25 for the target of 80.25 with the stop loss of 81.75.
GBPINR (NOV)is trading above its major Exponential Moving Average indicating upward trends for short term view. The pair has major support placed around 92.48 levels while on higher side resistance is seen around 95.97 levels. The 21-day Exponential Moving Average of the GBP/INR is currently around 93.63. On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 56.70.
One can buy at 94.50 for the target of 95.75 with the stop loss of 94.00.
EURINR (NOV) is trading above its major Exponential Moving Average indicating upward trends for short term view. The pair has major support placed around 81.70 levels while on higher side resistance is seen around 83.22 levels. The 21-day Exponential Moving Average of the EUR/INR is currently around 81.56. On the daily chart, the EUR/INR has Relative Strength Index (14-day) value of 60.55.
One can buy at 82.50 for the target of 83.50 with the stop loss of 82.00.
JPYINR (NOV) is trading between its major Exponential Moving Average indicating sideways trends for short term view. The pair has major support placed around 55.90 levels while on higher side resistance is seen around 58.22 levels. The 21-day Exponential Moving Average of the JPY/INR is currently around 56.27. On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 61.57.
One can buy at 57.50 for the target of 58.50 with the stop loss of 57.00.
(2/5)
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Each of the Selling Shareholders will be entitled to their respective portion of the proceeds of the Offer for Sale.
The company propose 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. 541, the stock is priced at pre issue P/E of 41.23x on its FY22 EPS of Rs. 13.12. Post issue, the stock is priced at a P/E of 45.36x on its EPS of Rs. 11.93. Looking at the P/B ratio at Rs. 541 the stock is priced at P/B ratio of 5.82x on the pre issue book value of Rs.93.03 and on the post issue book value of Rs. 131.67 the P/B comes out to 4.11x.
On the lower end of the price band of Rs.514 the stock is priced at pre issue P/E of 39.18x on its FY22 EPS of Rs. 13.12.Post issue, the stock is priced at a P/E of 43.09x on its EPS of Rs. 11.93. Looking at the P/B ratio at Rs.514, the stock is priced at P/B ratio of 5.52x on the pre issue book value of Rs. 93.03 and on the post issue book value of Rs. 131.67, the P/B comes out to 3.90x.
Incorporated in 1995, Keystone Realtors Limited is one of the prominent real estate developers. As of June 30, 2022, the company had 32 Completed Projects, 12 Ongoing Projects and 21 Forthcoming Projects across the Mumbai Metropolitan Region ("MMR") that includes a comprehensive range of projects under the affordable, mid and mass, aspirational, premium and super premium categories, all under the Rustomjee brand. June 30, 2022, Keystone Realtors has developed 20.22 million square feet of high-value and affordable residential buildings, premium gated estates, townships, corporate parks, retail spaces, schools, iconic landmarks and various other real estate projects. As of June 30, 2022, the company has developed over 280 buildings and homes for over 14,000 families.
Well established customer-centric brand in the Mumbai Metropolitan Region: The company is one of the prominent real estate developers (in terms of absorption in number of units) in the micro markets that it is present in, namely Juhu, Bandra East, Khar, Bhandup, Virar and Thane (Source: Anarock Report), and are able to garner premium pricing in the MMR micro-markets where its projects are located. As of June 30, 2022, it had 32 Completed Projects, 12 Ongoing Projects and 21 Forthcoming Projects across the MMR that includes a comprehensive range of projects under the affordable, mid and mass, aspirational, premium, and super premium categories, all under its Rustomjee brand.
Amongst the leading residential real estate development companies in MMR with a welldiversified portfolio and strong pipeline: It is one of the prominent real estate developers in the redevelopment segment in terms of supply (in terms of number of units) in the micro markets that it is present in, wherein it command a market share of 39% in Khar, 14% in Bandra East and 14% in Juhu from the overall redevelopment supply between 2017 and 2021. Its diversified portfolio has allowed it to hedge its revenue pipelines and shield against business fluctuations across categories.
Asset-light and scalable model resulting in profitability and stable financial performance: As part of its business model, it focuses on entering into joint development agreements and re-development agreements with landowners or developers or societies, which requires lower upfront capital expenditure compared to direct acquisition of land parcels. It identifies land for development or redevelopment based on a detailed feasibility study for the relevant project, including factors such as location, price, purpose and design impediments.
Leverage the ‘Rustomjee’ brand to grow its asset-light operations:It believes that its asset-light business model, robust stakeholder management, customer-centric brand name, technology stack, trusted vendors and experienced management are pivotal to its overall strategy to grow its operations in MMR. It intends to leverage its strength and experience in redevelopment, focus on such opportunities in Mumbai’s city centre locations and major suburbs, and continue to expand its business by following a disciplined approach with an asset-light model.
Improve operational efficiency with technological innovation, trusted vendors and stakeholder management: Having nurtured the brand through sustained delivery, quality of construction and scaling up of operations, it intends to continue to enhance its capability to deliver more projects, reduce development time and cost, and achieve economies of scale.
Leverage its leadership position in the premium category to grow its presence in the mid and aspirational category: Through consistent demonstration of building upscale projects, it plans on leveraging its brand equity generated from its ‘Rustomjee’ brand, customer centricity and high-end product design, along with its quality execution, to maintain its market position in the markets it is present in and focus on re-development projects for the premium category. It has undertaken several re-development projects in the premium and super premium categories such as: Ashiana & Parishram.
Increased focus on key growth areas in the proximity of upcoming infrastructure projects and relaxation of Coastal Regulation Zone norms: It intends to increase its focus on several key growth areas such as the Western Suburbs and Navi Mumbai, by focusing on increased demand for real estate arising from upcoming transportation infrastructure projects and the relaxation of Coastal Regulation Zone norms that allow for development of more sea-facing properties.
Keystone Realtors Limited is a real estate developer primarily engaged in construction, development, and related activities in India. The company is doing the development of residential and commercial projects under the Rustomjee brand. The company completed 32 projects while 12 projects are ongoing as of June 30, 2022. They have 21 forthcoming projects in Mumbai Metropolitan Region. A long term investor may opt the issue.
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Flows into systematic investment plans (SIP) surged to a monthly record in October that witnessed a reduced appetite for equity mutual funds, reflecting undiminished appeal for long-term growth assets in India although the recent climb in the indices seemingly reduced immediate potential upside for stocks. SIP flows rose to a new all-time high of Rs 13,041 crore, compared with the previous month's Rs 12,976 crore. Flows in equity schemes slipped to Rs 9,390 crore, compared with Rs 14,100 crore in September, data from Association of Mutual Funds in India (AMFI) showed. Average assets under management (AUM) moved down marginally to Rs 39.53 lakh crore as compared with the previous month's Rs 39.88 lakh crore.
Equity mutual funds inflows dropped month on month to Rs 9,390.35 in October. The net flows stood at Rs 14,099.73 crore in September. According to the AMFI data, mutual fund industry’s net AUM stood at Rs 39,50,323.28 crore, AAUM at Rs 39,53,208.95 crore. All equity mutual fund categories saw net inflows except the dividend yield funds that saw net outflows. Flexi cap funds and large cap funds accumulated the highest inflows. Debt mutual funds continued to see net outflows in October as well. Debt funds saw a cumulative outflow of Rs 2,817.79 crore with overnight funds losing Rs 7,505.38 crore in October. Long duration funds, gilt funds and liquid funds saw net inflows in the month. Retail AUMs (Equity+Hybrid+Solution Oriented Schemes) in October 2022 stood at Rs 20,44,963.2 crore and the Average AUM stood at Rs 20,20,212.31 crore.
HDFC Asset Management Company has launched HDFC Business Cycle Fund which aims to invest in businesses likely on the cusp or in the midst of a favourable business cycle. The NFO opens on November 11 and closes on November 25. According to the fund house, the fund will manage risks by being adequately diversified across sectors / sub sectors / market cap, and across a number of stocks. It is therefore a well-diversified fund suitable for long term investments via both lumpsum and SIP. The business cycle investing may gain from dual benefits of earnings growth and improvement in valuations. In business cycle investing, one needs an agile investment strategy that dynamically rotates investments based on assessment of stages of business cycles.
Edelweiss Asset Management has launched three NFOs in the equity passive category. Edelweiss Nifty Next 50 Index Fund, Edelweiss Nifty Midcap 150 Momentum 50 Index Fund and Edelweiss Nifty Smallcap 250 Index Fund are open-ended equity schemes replicating Nifty Next 50 Index, Nifty Midcap 150 Momentum 50 Index and Nifty Smallcap 250 Index respectively. The new fund offers (NFOs) are open for subscription from Nov 10 to 24. “Edelweiss AMC has successfully placed itself amongst the leaders in the passive funds category and is today managing the largest portfolio of passive debt funds. The launch of three new equity index funds further strengthens our product portfolio within our passive fund offerings. With these products, we intend to reach out to a larger investor base and offer bestin- class solutions for the investor needs,” Radhika Gupta, MD and CEO, Edelweiss AMC. According to the fund house, these equity index funds can be used to create your own low-cost multi-cap portfolio. The combo allocation allows you to get exposure in high-growth companies (via Edelweiss Nifty Next 50 Index Fund), rule-based Momentum play in Midcap space (Edelweiss Nifty Midcap 150 Momentum 50 Index Fund), and companies that are emerging leaders (Edelweiss Nifty Smallcap 250 Index Fund).The combo allocation allows diversification across sectors and market cap with low cost.
WhiteOak Capital Mutual Fund has launched ‘WhiteOak Capital Large Cap Fund’. The NFO will be open from November 10-24. It is an open-ended equity scheme investing predominantly in large -cap stocks. Almost 80% of the allocation will be towards large caps and the fund will be benchmarked against BSE100 TRI. The fund managers will be Ramesh Mantri for Equity, Piyush Baranwal for Debt, Trupti Agrawal for overseas investments and Equity, Shariq Merchant for Overseas Investments. According to the fund house, large caps in India are a fraction of their global counterparts in terms of revenues and market cap and present a sizable opportunity as India’s per capita GDP growth is likely to lead to an inflection point across various sectors. In terms of total market capitalization, India is still a few decades behind that of the US and China. There are only three Indian companies among the top 100 companies globally by market cap. With its economy projected to be the third largest over the next decade, India is poised to add a few more names in the list of top 100 global companies.
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