In the week gone by, both Consumer Price Index report and Producer Price Index (PPI) report fleshed out the picture on inflation in the US and global stock market looked nervous on fear that stubborn inflation may spur the Fed to keep hiking interest rates, potentially triggering a recession. The consumer price index increased 0.1% M-on-M in August and was up 8.3% from a year ago. On a year-over-year basis, headline PPI also increased 8.7%. Inflation looks set to stay well above the Fed’s target for at least a few more quarters. Also data showed that applications for US unemployment insurance fell for a fifth straight week, suggesting demand for workers remains healthy. There is an expectation among the investors that the central bank would approve a bumper rate increase of 0.75 basis points or even 100 basis points at its September meeting, and interest rates might peak at a higher level than previously expected. On the Chinese economy front, China’s economy showed signs of recovery in August as Beijing rolled out stimulus measures to counter a slowdown, although a property market slump and Covid outbreaks continue to weigh on the outlook. Industrial production, retail sales and fixed-asset investment all grew faster than economists expected last month. We need to understand that the boost to retail sales was partly due to a lower base of comparison from a year earlier and a surge in car sales after Beijing gave buyers subsidies on electric vehicles. Going forward, US inflation news will remain a hot topic for the stock market; Liquidity withdrawals and interest rate hikes will continue rule the markets. Oil headed for a third weekly loss as a deteriorating global economic backdrop stoked demand concerns and a buoyant US dollar made crude more expensive for most buyers.
Back at home, domestic markets too witnessed volatile trade tracking global stock markets. Moreover, FIIs have halted their sustained buying. Meanwhile, Fitch Ratings slashed India’s GDP growth projection for FY23 to 7 per cent, saying the economy is expected to slow against the backdrop of global economy, elevated inflation and high interest rate. Going forward, volatility would continue in the markets due to concerns of a hawkish stance on rate hikes from the central banks amid rising inflation. It is expected that investors may adopt a wait and watch attitude till the Fed meeting is over on 21st September.
On the commodity market front, it was a bearish week for commodities as market was full of mixed triggers; CRB closed near 301 levels. Sharp upside in dollar index due to hawkish view on expected rate hike in the month of September; put pressure on commodities prices. In bullion, gold silver ratio improved as silver outperformed gold. Gold can see further decline upto 48500 in short term. Pressure on bullion prices is expected to continue this week due to expectation of rate hike by Fed; market participants are expected that U.S. interest rates to cross the 4% mark by end-2022. It will put pressure on commodities prices. Crude oil can trade in a range of 6600-7100 levels. Inflation Rate of Japan, Core Inflation Rate and Inflation Rate of Canada, FOMC Economic Projections, Fed Press Conference and Fed Interest Rate Decision, BoJ Interest Rate Decision, BoE Interest Rate Decision etc. are many key events and data are scheduled this week, which will give significant impact on commodities prices.
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SAFE HARBOR STATEMENT: Some forward statements on projections, estimates, expectations, outlook etc are included in this update to help investors / analysts get a better comprehension of the Company's prospects and make informed investment decisions. Actual results may, however, differ materially form those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, Impact of competing products and their pricing, product demand and supply constraints. Investors are advised to consult their certified financial advisors before making any investments to meet their financial goals.
The strong balance sheet along with strong recall among customers in the south and faster business growth in Non-South markets bodes well for future growth of the company as it results into more diversified revenue profile. Introduction of new and innovative products, entry into additional product categories and enhanced manufacturing capabilities indicate future growth visibility. Thus, it is expected that the stock will see a price target of Rs. 281 in 8 to 10 months’ time frame on one year average P/BV of 7.66x and FY23 BVPS of Rs.36.67.
With consumer-focused ranges being one of the focus pillars, the company has a competitive advantage in engineering, facilities and expertise. According to the management of the company, robust demand from sectors such as real estate, auto, and industrials would give good growth to its wires and cables business. The company continues to focus on areas such as cost control, improved asset utilization, reduce debt levels, and overall improvement in productivity is expected to lead to a stronger balance sheet in the years to come. Finolex Cables Limited is well poised to take advantage of any future growth opportunity. Thus, it is expected that the stock will see a price target of Rs.545 in 8 to 10 months’ time frame on a target P/E of 17.50x and FY23 (E) earnings of Rs.31.17.
The stock closed at Rs 626.55 on 16th September, 2022. It made a 52-week low at Rs 451.20 on 12th May, 2022 and a 52- week high of Rs. 918.00 on 18th September, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 591.67
As we can see on chart that stock is continuously trading in higher highs and higher lows, sort of rising wedge on weekly chart which is bullish in nature. Last week, stock gave the breakout of rising trend line but couldn’t hold the high due to market volatility but its consolidation indicates that there is a strong spurt from volumes in coming days. Therefore, one can buy in the range of 610-615 levels for the upside target of 680-700 levels with SL below 575 levels.
The stock closed at Rs 105.70 on 16th September, 2022. It made a 52-week low at Rs 82.70 on 23rd June, 2022 and a 52- week high of Rs. 147.19 on 16th September, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 109.26
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. Apart from this, it has formed an “Inverse Head and Shoulder” pattern on daily charts and has given the pattern breakout along with high volumes and also has managed to close above the same. So, further buying may be expected in coming days. Therefore, one can buy in the range of 103-104 levels for the upside target of 118-120 levels with SL below 97 levels.
Disclaimer : The analyst and its affiliates companies make no representation or warranty in relation to the accuracy, completeness or reliability of the information contained in its research. The analysis contained in the analyst research is based on numerous assumptions. Different assumptions could result in materially different results.
The analyst not any of its affiliated companies not any of their, members, directors, employees or agents accepts any liability for any loss or damage arising out of the use of all or any part of the analysis research.
SOURCE: RELIABLE SOFTWARE
Charts by Reliable software
In the week gone by, Indian markets witnessed hefty profit booking from higher levels as Nifty slipped back below 17600 levels while Bank nifty also pared most of its gains in Friday's session and ended the week below 41000 levels. However Banking space outperformed overall Nifty as banking index ended the week with gains of nearly 0.75% while Nifty ended the week in negative territory after two consecutive weekly gains. Implied volatility (IV) of calls closed at 16.81% while that for put option, it closed at 17.35%. The Nifty VIX for the week closed at 18.39%. PCR OI for the week closed at 1.34. From the derivative front, call writers remained active at 17600-17700 & 17800 strike while marginal put writing was observed at 17500 strike. For upcoming week, we expect markets to remain under pressure once again and volatile as well as marginal long unwinding has been observed at higher levels. However on any downside 17300-17200 zone would act as a strong support for Nifty while 17700-17800 zone is likely to cap upside in prices. We advise traders to focus on stock specific action and avoid going long in index till further positive development in data.
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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: After witnessing sharp upward reversal in prices, Turmeric (Oct) futures is likely to keep its gains intact in coming week too due to fall in domestic supplies. Arrivals have been reported down by 53% Y-o-Y so far in Sep’22 as stockists are avoiding heavy selling in anticipation of rise in prices. Only 4.54 thousand tonnes turmeric has been arrived so far in Sep’22 as compared to 9.73 thousand tonnes of previous year for corresponding period. Apart from that, support in prices will come in form of increased festive buying by spices makers along will rising export demand. India has exported around 62 thousand tonnes of turmeric during Apr’22-Jul’22 compared to 52 thousand tonnes of previous year, higher by 18% Y-o-Y. Prices are well supported near 7000 level and expected to move up to 7710 in coming week.
Jeera (Oct) prices resumed its uptrend last week due to renewed buying at futures platform. Industrial demand is coming out in the market in wake of festive months ahead. Prevailing supply shortage has forced spices makers to buy jeera at higher prices. Jeera prices are still ruling higher by 74% Y-o-Y at 25200 compared to 14500 of previous year. Total arrivals of Jeera have been down by 29% Y-o-Y during Jan’22- Sep’22 mainly due to lower production in year 2021-22. Prices will be well supported by tighter supply amid emerging export enquires. Production in other producing countries like Syria and Turkey has been lower that will force global buyers to buy jeera from India. Jeera prices are holding the support of 24900 and will move up towards 26200 in coming weeks.
Dhaniya (Oct) futures traded mixed to higher last week as prices found support near 10700 and moved up on renewed buying. Dhaniya prices have been consolidating in broader range of 10700 to 12400 since Apr’22 due to mixed fundamentals of the market. Despite of lower domestic production, increased cheaper imports from Russia, Syria and other global counties pulled down the prices from the 13332 reported in Apr’22. Dhaniya imports have jumped sharply in year’22 due to higher domestic prices. India has imported about 19 thousand tonnes of Dhaniya during the time period of Jan’22-Jul’22 compared to 4.4 thousand tonnes of previous year. Some upward reversal is likely to be seen on increased festive buying by spices makers. However, gains in prices are likely to limited due to rise in imports that will fill the supply gap in domestic market. Prices will be well supported at 10700 wherein 11800 will be the near term resistance.
Bullion prices have plunged to 28-month low, posting their worst week in two months, as prospects of aggressive rate hikes by the U.S. Federal Reserve lifted bond yields and took the shine off bullion. The bearish momentum could continue to drive a drift lower in prices until the FOMC meeting, where the expectation is hawkish. Benchmark 10 years U.S. treasury yield hovered near its highest level since June, while the dollar was heading for a weekly rise against its rivals. Markets are pricing in a 75-basis-point rate hike by the U.S. Central bank at its Sept. 20-21 policy meeting after consumer prices unexpectedly rose in August. A 75-bps hike is fully baked in, so what everyone wants to know is whether the Fed will retain an aggressive rate of tightening as we head into 2023. Gold is likely to suffer with a hawkish hike. Meanwhile, India on Thursday slashed the base tariff value on gold; it has been cut to $549 per 10 grams, from $557 per 10 grams. Data on Thursday showed that U.S. retail sales unexpectedly rose in August as lower gasoline prices supported spending, while U.S. jobless claims fell last week. So far in Sep, however, silver has managed to outperform gold, gaining over 9% from the end of August, while gold prices have declined 3.1%. According to the Silver Institute, total global silver supplies are also forecast at 1.03 billion ounces this year, below total global demand expectations of 1.10 billion ounces. Ahead in the week prices may continue to trade with bearish bias where Gold may take support near 47900 and could face resistance near 50900 levels. Silver may also witness selling and trade in the range of 54000-57500 levels.
Crude Oil prices were headed for a third straight week of losses on fears that COVID disruptions in China and a potential economic recession will decimate crude demand this year. The prevention of a possible U.S. railroad strike, which was expected to disrupt local crude supply, also dented prices. Positive Chinese industrial production and retail sales data did little to support prices, but most other economic indicators show persistent weakness in the world’s largest crude importer. Fears of a global recession were heightened after both the World Bank and the International Monetary Fund warned of a potential economic slowdown in late-2022 and 2023. Markets are now positioning themselves for a steep interest rate hike by the U.S. Federal Reserve ahead in the week, with a bulk of participants seeing a 75 basis point raise. But hotterthan- expected U.S. inflation data released also saw investors begin pricing in the possibility of a 100 basis point hike. Major Asian importers India and Indonesia have cut their imports this year on this notion. Ahead in the week, prices of crude oil may continue to witness huge volatility and the possibly range of trading would be 6450-7100 levels. Natural gas prices were marginally positive but also witnesses selling after hitting high of 722, amid bigger-than-expected storage build. In addition to the rail deal, the drop in gas prices also came on expectations output would reach a monthly record in September and demand would decline. Ahead in the week natural gas prices may continue to witness selling where it may take support near 620 levels and possibly face resistance near 720 levels.
Base metals may trade with a negative bias on gloomy demand outlook on global recession fears amid aggressive interest rate hikes in the United States keeping dollar near 20-year highs and elsewhere. However, prospects of better demand from the real estate sector may lift sentiment, after property giant China Evergrande Group announced it would restart frozen construction projects, and on hopes of more supportive policies in China. Copper may trade in the range 620-665 levels. Supply risks of copper concentrate continued to linger after workers at Chile's Escondida, the world's largest copper mine, agreed to temporarily suspend a work stoppage planned for next week to meet with local regulators. Aluminum may trade in the range of 190-210 with a bearish bias. China's aluminium output climbed to a second straight monthly record in August at 3.51 million tonnes, up 9.6% from the same month a year earlier, as new production capacity came on line, more than offsetting curbs on power use in some areas. But the counter may get support as sentiment was propelled by possibly more production cuts in the southwestern Yunnan province, where hydropower supply has been tight due to less-than-usual rainfall this year. Zinc can trade in the range of 268-290 levels. Lead can move in the range of 175-185 levels. The Prices are getting support on smelters cutting the production cut by smelters due to energy crisis and fuelling worries about supply disruptions. However, global economic growth could weaken more significantly than current estimate, which would drag zinc demand and prices lower. Steel long is likely to trade in the range of 51000- 53000 levels with bullish bias on NCDEX on higher demand.
Cotton (Oct) MCX prices will remain under pressure in coming week due to increased supply at domestic market. Improved crop prospects in US have drifted the global prices down in recent week that is also hurting the market sentiments for domestic cotton Industry. Millers are preferring wait and watch strategy and going for need based buying in wake of bumper crop ahead in India. Crop condition in Gujarat and Maharashtra is very promising due to favorable weather condition that will result into rise in production at least by 15%-20% Y-o-Y. Prices are expected to slip towards the support of 32000 levels with resistance of 38200.
Cotton seed oil cake NCDEX (Dec) futures are likely to trade mixed to higher due to supply tightness in local market. Spot prices jumped about 5% last week ruled at 2824 INR/Qntl at Akola market. Prices are expected to trade in 2280- 2541 range. Gains will be limited due to higher production outlook of cotton.
Guar seed futures are expected to trade on sideways to higher due to fear of yield losses due to extended dryness in Rajasthan. Milling demand for guar has improved due to shrinking supply at physical market. Improved domestic demand of byproducts like churi and korma will keep the market sentiment up for guar in near term. Export enquires of gum has also surged up in recent days that is also supporting guar seed prices. However, gains are likely to be limited due to higher production outlook in year 2022 driven by sharp rise in area under guar. Guar seed prices may face resistance near 5400 wherein 4700 will be the support.
Mentha oil (Sep) is likely to keep its gains intact on emerging industrial buying at current level. Prices have found support near 960 level and expected to move up gradually towards 1055 level with fall in supply.
Castor seed (Oct) prices are expected to trade sideways in upcoming week may keep bias on down side due to promising crop for upcoming year as acreages under castor increased 22% Y-o-Y so far in year 2022. Sluggish export of castor oil will also put pressure on prices. Being as largest importer China has imported only 1.75 lakh tonnes of castor oil during Jan’22- Jul’22 compared to 2.25 lakh tonnes of previous year down by 22%. Going forward, castor seed prices are likely to find support near 7200 level in near term with resistance of 7600 levels.
It closed at Rs. 49312.00 on 15th Sep 2022. The 18-day Exponential Moving Average of the commodity is currently at Rs 50357.84. On the daily chart, the commodity has Relative Strength Index (14-day) value of 27.858. Based on both indicators, it is giving a sell signal.
One can sell near Rs. 49400 for a target of Rs. 48200 with the stop loss of 49900.
It closed at Rs. 201.60 on 15th Sep 2022. The 18-day Exponential Moving Average of the commodity is currently at Rs 203.18. On the daily chart, the commodity has Relative Strength Index (14-day) value of 35.665. Based on both indicators, it is giving a sell signal.
One can sell near Rs. 203 for a target of Rs. 192 with the stop loss of 208.
It closed at Rs. 25545.00 on 15th Sep 2022. The 18-day Exponential Moving Average of the commodity is currently at Rs 25334.50. On the daily chart, the commodity has Relative Strength Index (14-day) value of 51.315. Based on both indicators, it is giving a sell signal.
One can sell near Rs. 25300 for a target of Rs. 24000 with the stop loss of 25800.
NOTE: *M.High / M.Low stands for Monthly High / Monthly Low
It was a bearish week for commodities as market was full of mixed triggers; CRB closed near 301 levels. Sharp upside in dollar index due to hawkish view on expected rate hike in the month of September put pressure on commodities prices. In bullion, gold silver ratio improved as silver outperformed gold. Gold closed below 50000 levels, at the same time silver gained significantly and closed near 57000 levels. Gold prices traded below $1665, extending recent declines as concerns over more hawkish measures by the Federal Reserve continued to chip away at metal markets. Natural gas regained despite the rise in dollar index as the EU dropped a plan to impose a cap on the price of gas imports from Russia after pushback from its 27 member states. The shortage still hasn't yet stopped Europe adding to its gas reserves for the winter. Crude oil prices witnessed fall. U.S. crude oil inventories rose by more than expected, according to the Energy Information Administration; rose 2.442 million barrels against expectations for a rise of 0.833 million barrels. Expectation of increase in gas-to-oil switching due to high prices this winter, even though the outlook for demand remains gloomy; supported upside in crude oil prices. OPEC on Tuesday said that global oil demand in 2022 and 2023 will come in stronger than expected, citing signs that major economies are faring better than expected despite challenges such as surging inflation. In base metals, among industrial metals, copper futures closed the week in red; battered by higher-than-expected U.S. inflation data. However, the premium for LME cash copper over the three-month contract surged to $150 a tonne on Tuesday, its highest since November 2021, indicating shortages of immediately available copper in the exchange warehouse system. Lead and aluminum were marginally up while zinc surrendered its weekly gain.
In agri counter, cotton caught the attraction of traders as it saw a sharp fall in past four weeks, as arrivals have started to hit the market amid need based demand. On the contrary, cotton oil seeds cake saw sharp rebound. Mentha saw sharp fall on weak spot demand. Guar saw a much needed upside in past few weeks on expected delay in harvest due to overgrowth of crop. Fear of fall in yield due to dryness in Rajasthan. Spices counter witnessed some value buying as market participants are showing good buying interest. Production of jeera in other producing countries like Syria and Turkey has been lower that will force global buyers to buy jeera from India. Castor saw marginal fall due to improved crop condition facilitated by favorable weather in central India. Limited export demand of oil and increased area under castor in Gujarat and Rajasthan putting pressure on prices.
Deficit monsoon forced lower planting and estimated lower production
The South-West monsoon is considered vital for the cultivation of Kharif crops, which are heavily dependent on rain as the quantity of rainfall determines the production numbers in the case of these crops. Crucially, it is closely linked to the economic growth of the country. The share of agriculture in GDP increased to around 20 per cent in 2020-21 from 18 per cent in 2019-20, which indicates the Indian economy’s higher dependency on agriculture. According to experts, good and timely rainfall has a positive impact on agricultural production, which is likely to raise consumer demand.
However a severe deficit in the rainfall during monsoon 2022 has affected Uttar Pradesh, Jharkhand, West Bengal and Bihar despite several pockets in India of late struggling to tide over above-normal rain leading to severe flood situations. As of September 11, monsoon rain was 5% above normal, with 34% excess rain over peninsular India, 15% excess over central India, 18% deficient over east and northeast India and 7% deficient over northwest India. Paddy growing states in the Indo-Gangetic plains continue to record a large deficiency in rainfall, with east and west Uttar Pradesh both recording 47% deficiency since June 1; Bihar 36%; Jharkhand 27%; Gangetic West Bengal 29%; and the Nagaland, Manipur, Mizoram and Tripura region recording 27% rain deficiency. Delhi has a 39% rain deficiency and Punjab has a 20% deficiency. The rainfall deficit situation is showing no signs of improvement in Punjab and Haryana.
Deficit rainfall forced lower and delayed planting
Recently, the Indian government has been compelled to ban the export of rice in view of the lower and delayed planting due to deficit rainfall. The government had imposed a 20% export duty on select rice varieties but kept major items like basmati out of its purview. It also banned broken rice exports.
Lower paddy sowing has raised concern about rice production for the 2022-23 crop year (July-June) which would decline by 10 – 12 million tonne (mt) less than the previous years’ record level of 130 million ton. The paddy acreage has declined by 0.9 million hectare (mh) in Jharkhand, 0.39 mh in West Bengal, 0.24 mh in Uttar Pradeh and 0.21 mh in Bihar.
Overall kharif crops – paddy, pulses, oilseeds, cotton and nutri-cereals etc have been sown in 108.4 mh as on September 09, which is a marginal decline of 0.9 % against 109.4 mh reported a year ago. Officials said that the kharif sowing activities have been largely completed across the country.
Overall paddy sowing area across the country was reported at 39.3 mh which was 4.9% less than year ago. Average annual area under kharif paddy in 2016-17 – 2020-21 was 39.7 mh.
Sowing deficit fuels food inflation concerns
The Sowing deficit suggests there is a high degree of risk of a decline in agricultural produce of food items such as rice and pulses (arhar dal) because sowing timeline is over in several states. While the monsoon may yet recover in the eastern part of India the lesser sowing would result in higher food prices and lower farmer income putting agricultural growth at stress. Recent pick-up in rainfall will considerably ease concerns, but farm income is under pressure, and the final situation will be clear around the harvest season. As of now, rice and pulse prices have reportedly risen between 5 to 10 percent since mid-July fuelled by fears of a supply crunch.
Indian Rupee completely reversed its last week's gains when it reached one month high to a dollar supported by steady FIIs flows. However, expectations of rate differential between the US and China widened ahead of the FOMC meeting next week triggering the Chinese yuan to fall below 7/$ for the first time in two years. Despite external vulnerabilities rupee managed to hold the 80.00 handle as RBI intervention remains strong to defend the rupee as well. Going forward in FOMC week, we can expect USDINR to trade on a positive bias and may trade in a range between 79.40 to 80.30 on a weekly basis. On the majors, the Pound fell to a new 37-year low below 1.14 vs the dollar this week after UK retail sales plunged to a record low of -1.6% in August vs an estimated -0.5% on a month-to-month basis. We think GBPINR is set to fall below 89.50 in the coming days as the underlying gbpusd remains weak with rupee depreciation staying in a limited range. While euro consistently trade below parity as expectations of the Fed’s aggressive rate hike pushed down any pull-back in the euro as well. Our base case remains for a 75 bps hike which will widen the rate differential between the US and the EZ to favor the dollar over the euro while EURINR likely to face the heat to slide below 78.50 in the coming days.
USD/INR (SEP)contract closed at 79.8625 on 15-SEP-22. The contract made its high of 80.0700 on 12-SEP-22 and a low of 79.1200 on 13-SEP-22 (Weekly Basis). The 21-day Exponential Moving Average of the USD/INR is currently at 79.7697.
On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 53.67.One can buy at 79.75 for the target of 80.75 with the stop loss of 79.25.
GBP/INR (AUG)contract closed at 91.9800 on 15-SEP-22. The contract made its high of 93.2125 on 12-SEP-22 and a low of 91.5750 on 14-SEP-22 (Weekly Basis). The 21-day Exponential Moving Average of the GBP/INR is currently at 93.1992.
On the daily chart, GBP/INR has Relative Strength Index (14-day) value of 33.55. One can sell at 91.75 for a target of 90.75 with the stop loss of 92.25.
| 12th SEPT | India's Aug consumer price inflation recorded 7.0% slightly higher |
| 12th SEPT | UK GDP expanded 0.2% MoM in July vs. 0.5% expected |
| 13th SEPT | UK unemployment rate fell to 3.6% in three months to July |
| 13th SEPT | US Inflation fell slightly to 8.3% in August as pain from higher prices lingers |
| 14th SEPT | UK inflation rate unexpectedly dipped to 9.9% as fuel prices |
| 14th SEPT | India to authorize SBI to promote rupee trade with Russia: FIEO |
| 15th SEPT | China’s state banks cut deposit rates for first time since 2015 |
| 15th SEPT | World Bank warned higher rates risk causing global recession |
| 15th SEPT | US home mortgage rates surpassed 6% for the first time since 2008 |
EUR/INR (SEP) contract closed at 79.7725 on 15-SEP-22. The contract made its high of 81.2400 on 12-SEP-22 and a low of 79.4075 on 15-SEP-22 (Weekly Basis). The 21-day Exponential Moving Average of the EUR/INR is currently at 80.2106.
On the daily chart, EUR/INR has Relative Strength Index (14-day) value of 44.25. One can sell at 80.00 for a target of 79.00 with the stop loss of 80.50.
JPY/INR (SEP) contract closed at 55.8125 on 15-SEP-22. The contract made its high of 56.0500 on 12- SEP-22 and a low of 55.2000 on 14-SEP-22 (Weekly Basis). The 21-day Exponential Moving Average of the JPY/INR is currently at 56.9205.
On the daily chart, JPY/INR has Relative Strength Index (14-day) value of 32.19. One can buy at 55.50 for a target of 56.50 with the stop loss of 55.00.
Markets regulator Sebi has given its approval for the initial public offering of Navi Technologies, which has investments from Flipkart co-founder Sachin Bansal. Through the Initial Public Offering (IPO), which will be fresh issue of shares, the company aims to raise up to Rs 3,350 crore. Navi Technologies was issued the "observation letter" by Sebi on September 5, according to the latest update on the regulator's website. The company had filed its Draft Red Herring Prospectus (DRHP) with the regulator in March this year. As per the DRHP, the proceeds from the IPO will be used to invest in subsidiaries -- Navi Finserv Pvt Ltd (NFPL) and Navi General Insurance Ltd (NGIL) -- and for general corporate purposes. After moving out of Flipkart, Bansal along with Ankit Agarwal founded Navi Technologies in 2018. Navi Technologies is a tech-driven financial products and services company. It has expanded offerings under the 'Navi' brand to include personal loans, home loans, general insurance and mutual funds. Axis Capital is the coordinating Lead Manager for the offer.
Medical equipment manufacturer Aprameya Engineering has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO). The IPO comprises the sale of fresh issue of up to 50 lakh equity shares of the company and there is no offer for sale (OFS) component, draft red herring prospectus (DRHP) filed with Sebi. Funds will be used to meet working capital requirements and for general corporate purposes. The company is engaged in the business of healthcare infrastructure like installation, set up and maintenance of ICU, operation theatre and prefabricated structure ward on a turnkey basis along with the supply of high-value healthcare equipment and diagnostic equipment to hospitals. Hem Securities Ltd is the sole book-running lead managers to the issue. The equity shares of the company will be listed on the BSE and NSE.
Vaibhav Gems N' Jewellers Ltd, a leading regional jeweller brand in South India, has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO). The public issue comprises fresh issue of equity shares aggregating up to Rs 210 crore and an Offer-for-Sale (OFS) of 43 lakh equity shares by promoter entity Grandhi Bharata Mallika Ratna Kumari (HUF), according to the draft red herring prospectus (DRHP). Also, the company may consider a further issue of equity shares aggregating up to Rs 40 crore. If such a placement is completed, the fresh issue size will be reduced. Proceeds of the fresh issue will be utilized to finance the establishment of eight new showrooms costing Rs 12 crore and the purchase of inventory worth Rs 160 crore over FY23 and FY24, besides general corporate purposes. Visakhapatnam-headquartered Vaibhav Jewellers offers a wide range of products in gold, diamonds, gems, platinum and silver jewellery or articles. Its sub-brand Visesha caters to a premium segment of gold and diamond jewellery. Bajaj Capital Ltd and Elara Capital (India) Pvt Ltd are the book running lead managers to the offer. The equity shares will be listed on BSE and NSE.
Pharmaceutical ingredients maker Blue Jet Healthcare has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO). The IPO is completely an offer-for-sale (OFS) of up to 21,683,178 equity shares by promoters -- Akshay Bansarilal Arora and Shiven Akshay Arora --, according to the draft red herring prospectus (DRHP). The Mumbai-based Blue Jet Healthcare, is a specialty pharmaceutical and healthcare ingredient and intermediate company, offering niche products targeted towards innovator pharmaceutical companies and multinational generic pharmaceutical companies. Its business model focuses on collaboration, development, and manufacturing of complex chemistry categories. Over the past five decades, the company has developed over 100 products with over 40 products commercialised. Kotak Mahindra Capital Company Limited, ICICI Securities Limited, and J.P. Morgan India Private Limited are the books running lead managers to the issue. The equity shares are proposed to be listed on BSE and NSE.
Staffing solutions provider CIEL Human Resources Services is well on its way towards hitting the capital market and expects to file a draft red herring prospectus by the first quarter of next financial year. The city-based company has aimed to generate top-line revenue of over Rs 1,000 crore and another Rs 400 crore through means of acquisitions, CIEL Group Executive Chairperson K Pandia Rajan said. CIEL Rapid is tailored to suit the hiring needs of start-ups and small and medium enterprises located in urban and rural parts of the country, Pandia Rajan said.
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ICICI Prudential Mutual Fund has launched the ICICI Prudential Nifty50 Equal Weight Index Fund. The scheme will invest in the constituents of the Nifty50 Equal Weight Index. The NFO opens on September 14 and closes on September 28. The scheme will be managed by Kayzad Eghlim and Nishit Patel. “Since indices perform differently under variable market conditions, it is prudent to diversify across indices with different weightage methodology. Nifty50 Equal Weight Index is less concentrated in the top 5 sectors as compared to the Nifty 50 Index, thus providing an excellent diversification opportunity. Also, there is no size bias as the index tries to reduce the impact of bigger companies on the index performance,” says Chintan Haria, Head- Product Development & Strategy, ICICI Prudent AMC. According to the fund house, the Nifty 50 Equal Weight Index invests in the top 50 stocks in India based on market capitalization. An equal weight index has empirically higher dividend yield as compared to a market capitalization weighted index as it allocates funds equally to its components. According to the press release, the scheme exhibits smart-beta characteristics as the index intends to have no size bias. The index is less concentrated and helps in providing stability to the portfolio.
IDFC Mutual Fund has launched the IDFC Nifty100 Low Volatility 30 Index Fund, an open-ended index scheme that will consist of the 30 least volatile stocks from the large cap universe replicating the Nifty100 Low Volatility 30 Index. The New Fund Offer opens on September 15 and closes on September 23. “As Indians move from being savers to becoming investors, stock market volatility could be unnerving for many new investors, often leading to impulsive reactions, unjustified investment decisions and regret. The Low-volatility strategy provides investors an opportunity to benefit from the high return potential of equities while aiming to reduce volatility, helping investors stay true to their overall investment goals. This Index has provided a compelling risk-reward opportunity over the years, yielding relatively higher returns with relatively lower risk as against major stock indices,” said Vishal Kapoor, CEO, IDFC AMC. The Nifty100 Low Volatility 30 Index follows a disciplined process of assigning a higher weight to less volatile stocks and a lower weight to high volatility stocks. According to the press release, as on August 30, 2022, the Nifty100 Low Volatility 30 Index yielded a relatively higher return of 15.4% p.a. as against 14.6% p.a. for the Nifty 100 Index and 14.0% p.a. for the Nifty 50 Index over a rolling 10-year timeframe. At the same time, it has demonstrated a stronger ability to withstand the impact of volatility where the return per unit of risk is 1.05 for Nifty100 Low Volatility 30 Index against 0.85 for Nifty 100 Index and 0.83 for Nifty 50 Index, clearly demonstrating its advantage. According to the fund house, the dynamic nature of this strategy of investing could help smoothen the investment journey for investors. The fund follows a differentiated strategy, making it an effective investment opportunity for long-term equity investors, enabling them to benefit from the best of both worlds – relatively higher returns over the long term combined with relatively lower volatility.
HDFC Asset Management Company has launched three Smart Beta ETFs - NIFTY100 Quality 30 ETF, NIFTY50 Value 20 ETF, and NIFTY Growth Sectors 15 ETF. The New Fund Offer will be open for subscription till September 20. Smart Beta investing involves stock selection and weighting that is done based on pre-defined factors. These investment strategies endeavour to provide better risk-adjusted returns than broad market cap weighted indices. According to the press release, the indices underlying the Smart Beta ETFs - the NIFTY100 Quality 30 TRI, NIFTY50 Value 20 TRI and NIFTY Growth Sectors 15 TRI - generated higher average rolling returns over 1, 3, 5 and 10 year horizons compared to the NIFTY 100 and NIFTY 50 TRI. “Smart Beta investing is popular globally with AUM rising steadily. HDFC AMC is happy to expand index solution offerings for investors that are backed by empirical research. Smart Beta ETFs offer one-shot diversification of portfolio at a low cost, and is proven tool for investors who seek returns over the long-term. The fund house has 20 years of experience in managing passive funds, which comes with highly disciplined and robust Investment and Risk Management policies and processes,” said Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Company.
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