In the week gone by, global stock markets strengthened during later part of the week after Fed Chair Jerome Powell said that the pace of hikes will slow at some point and the Fed will set policy meeting-by-meeting, avoiding explicit guidance on hike increments giving hope that the quantum of future rate hikes would be lower. On the expected line, the Fed raised rates by 75 basis points for a second month. The US economy contraction for the second consecutive quarter further fuelled speculations that the Federal Reserve may not need to be as aggressive with interest rate hikes as some feared early. The data also raised the possibility of the US economy approaching a recession. The Bank of Japan released the minutes for its June meeting, after keeping its interest rates at ultra-low levels last week. Members of the BOJ policy board said the economy was on its way to recovery from the effects of Covid, but still needs strong support on the financial side due to pressure from the rise in commodity prices. The jobless rate in Japan came in at a seasonally adjusted 2.6 percent in June. It missed expectations for 2.5 percent, although it was unchanged from the May reading. Meanwhile, China is still in the torment of COVID-19 outbreaks and lockdowns. Given the uncertainty in the global economy, geopolitical landscape and inflation, global markets will continue to see some challenges.
Back at home, Indian stock markets became more enthusiastic after the US Federal Reserve suggested a slowdown in the rate hike cycle, after one more "unusually high rate hike". Data suggest that FIIs are reducing their selling substantially as the global central banks, especially the US Federal Reserve (US Fed), will become less aggressive in hiking rates to tame inflation. The result so far indicate good performance by companies with leading banks, capital goods, paints, and mid-cap IT delivering impressive numbers. However, an IMF cut to India's economic growth outlook kept investor sentiment in check. Meanwhile, the International Monetary Fund, in an update of its World Economic Outlook cut India's 2022 growth forecast to 7.4% from 8.2% in April, citing less favourable external conditions and more rapid policy tightening. The Reserve Bank of India (RBI) had postponed the meeting of its interest rate setting Monetary Policy Committee by a day to August 3 now and its decision will be known on August 5 as against the earlier schedule of August 4. Going ahead, the rate hikes would be more data-driven and would be determined by inflation. Besides, global factors, it is expected that developments in Indian stock markets and economy will give much direction to bulls. Going forward, earnings announcements would continue to trigger stock-specific volatility.
On the commodity market front, the impact on commodity of Fed’s rate hike by 75 basis points was marginal but market reacted more on negative US GDP economic data. Bullion counter saw sharp jump. We are expecting a range trading after a sharp jump in both gold and silver but the bias will be of upside. Gold and silver can trade in a range of 50500-52000 and 56500-59500 respectively. Natural gas prices dropped down on new forecasts indicated less hot weather through mid-August than previously expected, can trade in a wide range of 6000-680. Base metals will trade in a range on mixed triggers. NBS Manufacturing PMI of China, ISM Manufacturing PMI, ISM Non- Manufacturing PMI , Non Farm Payrolls and of Unemployment Rate of US, RBA Interest Rate Decision, Unemployment Rate of New Zealand, BoE Interest Rate Decision, Balance of Trade of Canada, RBI Interest Rate Decision etc are some important triggers that are scheduled this week which will give next direction to commodities.
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 INH100001851. 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.
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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 company has reported a robust performance of the yet another quarter. It has 45 ongoing projects across segments, with a total developable area of 65 mn sft. Further, it is planning 52 projects spanning 88 mn sqft and holds a land bank of over 375 acres as of Mar-22. With number of its newly launched projects in Mumbai, the management of the company is optimistic that its value would increase going forward. Thus, it is expected that the stock will see a price target of Rs.528 in 8 to 10 months’ time frame on a three year average P/BV of 2.20x and FY23 BVPS of Rs.240.
The company has a strong balance sheet with zero net debt. It has robust growth visibility going forwards on the back of revival in capex cycle and robust carry forward order book. Large enquiry pipelines both in the domestic and export markets indicates positive outlook of the company. Thus, it is expected that the stock will see a price target of Rs.196 in 8 to 10 months’ time frame on a target P/BV of 6.5x and FY23 BVPS of Rs.30.2.
The stock closed at Rs 780.10 on 29th July, 2022. It made a 52-week low at Rs 668.85 on 20th June, 2022 and a 52- week high of Rs. 1168 on 19th October, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 832.06
After heavy correction from 1100 to 650 levels, the stock has rebounded sharply with positive bias and trading in higher highs and higher lows. Apart from this, it has formed a “Bearish Pennant” on weekly charts and has negated the pattern and started moving higher. Last week, the stock has given the falling trend line breakout with volumes and also has managed to close on verge of breakout of pattern so follow up buying may continue for coming days. Therefore, one can buy in the range of 770- 778 levels for the upside target of 860-890 levels with SL below 720 levels.
The stock closed at Rs 131.00 on 29th July, 2022. It made a 52-week low of Rs 109.65 on 20th June, 2022 and a 52- week high of Rs 168.85 on 14th October, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 128.70
Short term and medium term bias are looking positive for the stock as it has recovered sharply from lower levels. Apart from this, it has formed an “Inverse Head and Shoulder” pattern on weekly charts and has tried to give the breakout of same along with high volumes, but its consolidation indicates that there is a strong spurt in coming days. Therefore, one can buy in the range of 128- 130 levels for the upside target of 145-148 levels with SL below 119 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
Indian markets began August series on a positive note and ended higher for the second consecutive week as Nifty surged above 17150 mark with gains of more than 2.5% over the week. Bank Nifty also gained nearly 2% over the week as HDFCBANK, ICICBANK & Axis Bank took the lead. From the derivative front, put writers added hefty open interest at 17000 strike and held nearly 61 lakh shares. On the flip side, Call writers were seen shifting to higher bands, which points towards strength in current trend. Implied volatility (IV) of calls closed at 15.87% while that for put options closed at 16.69%. The Nifty VIX for the week closed at 17.01%. PCR OI for the week closed at 1.45 lower than the previous week. From technical front, a fresh breakout in Nifty has been observed on daily charts above 16800 mark, which would act as a strong support for the index in upcoming sessions. The bias is likely to remain in favor of bulls and we expect Nifty to move towards its next resistance of 17400 levels in upcoming weeks.
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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 (Aug) is likely to trade in the range of 7550-8050 levels with bullish bias on improved export and domestic demand. Last week prices traded higher but were not able to cross the resistance near 7900 levels due to selling pressure at higher levels and on report of better sowing. We see support at 7600 levels. Sufficient stocks and good sowing reports kept turmeric prices under pressure. At the same time, demand for turmeric is slow in the physical market. Good sowing is reported in south India in this season due to higher prices realized by the farmers last year. Currently, in Nizamabad, around 90% - 95% sowing has been completed. In Warangal and nearby Turmeric growing regions, sowing got delayed by 10 to 15 days due to heavy rainfall from the past few days. Overall sowing percentage will get cleared after the end of August 2022. However, around 8% - 10% crop damage has been reported due to heavy rainfall in Marathwada regions.
Jeera future (Aug) prices declined from life time high last week and closed in red on profit booking after the fifth consecutive week gain. However, the trend is positive as lower mandi arrivals and less supply of Jeera as farmers and stockists were holding stocks, are also supporting the prices. The support is seen at 22800 levels while resistance is at 24500 levels. Currently, prices were higher by 80% y/y on lower availability due to lesser jeera production in 2021/22 compared to previous year. As per preliminary estimates, all-India Jeera production is expected to fall in the Marketing year 2022-23 (April- March) by around 33% to 3 lakh tonnes due to lower sowings.
Dhaniya future (Aug) prices declined third consecutive week due to higher arrival and lower demand. Now the prices may trade in the range of 11300- 12500 levels. The Physical markets witnessed lacklustre demand as the big buyers were seen reluctant to continue their buying at higher level. As per the market sources, the demand for stocks of imported coriander are low and prices of domestic coriander have picked up. Since the start of new season, the coriander prices have been higher on lower than expected production. Currently, the prices are higher by almost 73% y/y due to lower crop estimates. As per govt data, coriander exports in May 2022 down 4.7% y/y at 3800 tonnes Vs 4000 tonnes last year while for Jan-May exports are lower by 20.4%y/y at 18,900 tonnes Vs 23,750 tonnes.
Gold prices bounced on weekly basis but poised for a fourth consecutive monthly drop, as an elevated dollar and aggressive monetary policies from top central banks continued to erode demand for bullion. The U.S. economy unexpectedly contracted in the second quarter, raising risks of an economic slowdown, which lifted gold’s safe-haven allure and helped bullion prices gain more than 1%. Gold is on track for its best week since mid-May, with prices up 1.6% so far. However, bullion is unlikely to stave off a fourth straight monthly decline, its worst run of losses since November 2020. After the US GDP data confirmed recessionary fears, traders anticipate that Fed will be slower to introduce rate hike, boosting the appetite for gold. Despite some day-to-day volatility, the dollar has spent most of July hovering around 20-year highs, hammering demand for greenback-priced gold among other currency holders. The U.S. Federal Reserve hiked interest rates by three-quarters of a percentage point for the second straight meeting as it attempts to fight soaring inflation. Inflation is not going to end with the Fed hike, and given the downtrend in gold. It’s now at an attractive level and presents an opportunity for investors looking to diversify their portfolio. Higher rates and bond yields increase the opportunity cost of holding non-interest bearing gold. On the technical front, COMEX Gold is taking support near 1710 whereas could possibly face resistance near 1840. Ahead in the week, MCX Gold may trade with sideways to positive bias where it may take support near 49800 and face resistance near 52700. Silver may follow the footsteps of gold and witness bullish rally and range would be 55000-60000.
Oil prices rebounded after witnessing fall in first half of the week, amid supply concerns and a weaker U.S. dollar as attention has turned to what OPEC and allies including Russia agree at a meeting next week marking the end of their 2020 output reduction pact. Brent is on course to climb nearly 5% for the week in its second straight weekly gain, while WTI is on track for near 3% rise for the week, recoupicg the previous week’s losses. Oil prices have little changed of deep losses on the back of a weak U.S. Dollar and ongoing supply crunch. Oil typically rises when the dollar falls as a weaker dollar makes crude cheaper for buyers holding other currencies. The next meeting of OPEC+ on Aug. 3 will be key as the producers have now unwound the record 9.7 million barrels per day supply cut they agreed in April 2020, when the COVID-19 pandemic slammed demand. A senior U.S. administration official said that the government was optimistic about the OPEC+ meeting, and said extra supply would help stabilize the market. Ahead in the week, prices may continue to witness both side movements and range would be 7350-8040. Natural gas prices traded lower throughout the week as new forecasts indicated less hot weather through mid-August than previously expected. The price decline came despite a smaller-than-expected storage build last week when power generators burned lots of gas to keep air conditioners humming and forecasts for more gas demand next week than previously expected. Ahead in the week, prices may continue to trade with higher volatility and range would be 590-685, where we can buy near support and sell near resistance.
Base metals may trade sideways with positive bias as the market is hoping for more stimulus on infrastructure projects and to support for property market that could strengthen metals demand after China's Politburo meeting at the end of July month. But pressure may continue to stay, if China's exports and property markets remain weak in a longer run. Sharply higher interest rates, red-hot inflation and a prolonged energy crisis are leading to conviction that the world economy is headed inexorably towards recessions that also support the demand for the metal. Copper may trade in the range 620-675 levels. Copper prices are expected to rebound in the coming months, as China unleashes more infrastructure spending and other stimulus for the economy. The global copper market moved to a surplus of 5,000 tonnes in May, from a deficit of 23,000 tonnes a month earlier, data from the ICSG showed. Aluminum may trade in the range of 202-222 levels. China customs data showed unwrought aluminium and aluminium products output in the first half of 2022 surged 34% year-on-year to 3,509,079 tonnes. High production growth in China and falling demand in the rest of the world may result in a surplus in the global market in the second half and especially in the last quarter of this year. Zinc can trade in the range of 275-300 levels. Lead can move in the range of 172-185 levels. China has become net exporter of refined zinc in April-June for the first time since 2014. Year-to-date refined lead exports are the highest since 2007. Physical buyers have been paying record premiums for both lead and zinc as smelter outages open up gaps in Western supply chains.
Cotton prices at MCX kept its bullish tone intact of supply deficit concerns amid increased domestic buying by spinning mills. Also the gains were supported by reports of crop damage due to excess rainfall in Gujarat and central India. Global cues are looking supportive as ICE cotton futures moved up further on deepening draught situation in cotton producing regions of the US. MCX Cotton Futures have gained about 11% in last three weeks and ruled at 44750 on Friday. Limited supply will keep prices elevated in coming week as well but gains will be limited in wake of IMD forecast of drier weather condition in Gujarat and Maharashtra in first week of Aug’22 that will facilitate the ongoing sowing activities. Cotton can move in a range of 44200- 47000.
Cotton seed oil cake futures for August delivery witnessed three consecutive weekly gains on reports of crop damage of cotton. Prices have jumped up by 15% from the low of 2443 reported in first week of July. However, prices have started cooling down on limited buying at current levels as demand for cotton seed oil cake is stable due to narrowing prices spread with mustard seed oil cake. It can trade in the range of 2600-2800.
Mentha oil prices showed some kind of recovery in current week due to emerging industrial buying but pared off most of the gains by the end of the week due to abundant stocks levels amid surging arrival pressure at major trading. Prices are expected to take support soon near 930-950 due to lower production estimates for year 2022.
Guar seed showed sharp recovery in prices at NCDEX due to fear of crop damage in Rajasthan raised with above normal rainfall. After touching the weekly high of 5290 prices failed to hold the gains by end of the week and dropped to 5010 level on reports of rise increased acreages. Guar seed area in Rajasthan was reported at 27.8 lakh Hec by end of July’22 higher by 16% Y-o-Y. Guar gum prices have dropped by 32% from the high of 13385 reported in Apr’22 on adequate stocks. It may find support near 8800 -8900 level.
Castor can see extended its gains on lower production outlook in year 2022. However, upsides are likely to be limited in 7450-7500 due to bleak international demand of oil, especially from China. Exports of castor oil have decreased by almost 10 percent during the first five months of 2022 compared to previous year.
GOLD MCX (OCT)contract closed at Rs. 51443.00 on 28th Jul 2022. The contract made its high of Rs. 52650.00 on 05th Jul’2022 and a low of Rs. 49795.00 on 21st Jul’2022. The 18-day Exponential Moving Average of the commodity is currently at Rs 50864.90. On the daily chart, the commodity has Relative Strength Index (14-day) value of 57.241.
One can buy near Rs. 50900 for a target of Rs. 52100 with the stop loss of 50500.
COPPER MCX (AUG)contract was closed at Rs. 644.65 on 28th Jul’2022. The contract made its high of Rs. 730.50 on 22nd Jun’2022 and a low of Rs. 602.15 on 15th Jul’2022. The 18-day Exponential Moving Average of the commodity is currently at Rs. 647.07. On the daily chart, the commodity has Relative Strength Index (14-day) value of 41.143.
One can buy near Rs. 640 for a target of Rs. 665 with the stop loss of Rs 628.
TURMERIC NCDEX (AUG)contract closed at Rs. 7756.00 on 28th Jul’2022. The contract made its high of Rs. 8388.00 on 05th Jul’2022 and a low of Rs. 7552.00 on 22nd Jul’2022. The 18-day Exponential Moving Average of the commodity is currently at Rs. 7822.92. On the daily chart, the commodity has Relative Strength Index (14-day) value of 43.017.
One can buy near Rs. 7700 for a target of Rs. 8150 with the stop loss of Rs. 7500.
The week was full of stress because of Fed meeting in which at least 75 basis points interest rate hike was expected. As per expectation Federal Reserve officials raised interest rates by 75 basis points for the second straight month. US Federal Reserve cumulative June-July increase to 150 basis points -- the steepest rise since the price-fighting era of Paul Volcker in the early 1980s. Dollar hit three-week low to yen as Fed's Powell less hawkish than feared amid fall in US GDP numbers; it stimulated buying in commodities. The two-year Treasury yield, which is especially sensitive to policy expectations, sagged near its lowest level this week at 2.9979%.Buying returned in riskier assets; including energy and base metals. Crude prices moved up whereas natural gas prices spiked on supply crunch issue from Russia. European gas prices have surged 30% in the space of two days after Russia made good its threat to slash gas deliveries to the continent in half from already reduced levels. The European benchmark wholesale gas price TTF jumped 20% on Tuesday to exceed €210/MWh, representing a more than 10-fold increase from the average during 2010-20. Later on it saw profit booking and closed the week in red. Oil rose, extended gains, buoyed by improved risk appetite among investors as lower crude inventories and a rebound in gasoline demand in the United States supported prices. Prices also found support as the Group of Seven richest economies aims to have a price-capping mechanism on Russian oil exports in place by Dec. 5. Base metals saw marginal gain from the lower side. Demand in China is reviving after COVID-19 lockdowns restricted factory activity earlier in the year. Profits at industrial firms bounced back to growth in June and the government has promised economic stimulus and support for a property sector in a debt crisis. Bullion saw sharp upside as comments from the U.S. Federal Reserve Chair Jerome Powell on future interest rate hikes sounded less hawkish than expected and weaker US GDP data stimulated safe haven buying.
Buying returned in many agri commodities whereas gar counter traded in a range. In spices, jeera saw a pause in the rally. Dhaniya prices slipped as processors and traders are buying as per their requirements this season due to higher market prices. Cotton saw strong upside move on reports of some demand from the textile industries following reports of damage to the standing crop due to excessive rains in the country. Castor prices augmented on due to good export demand and lower carry-over stocks. Guar counter was in pressure on normal monsoon and improved area in Rajasthan. As on 27th Jul, Guar area in Rajasthan is higher by 120% at 26.17 Lakh hectare as compared to 11.88 Lakh hectare last year
In the budget of 2020, the government had announced to set up a regulated system of gold exchanges in the country. After prolonged deliberations and approval of SEBI in its board meeting on 28 September 2021, the country’s first gold spot exchange has become a reality as Prime Minister Narendra Modi inaugurated it at the International Bullion Exchange at Gujarat’s GIFT City (Gujarat International Finance Tec-City), India’s maiden International Financial Services Centre (IFSC) on July 29, 2022.
Establishing India's dominant role in the world gold market
India is the second largest consumer of gold globally after China, with annual gold demand of around 800–900 tonnes, and an important position in global markets. Despite this, India has no role in determining the gold prices in the global markets. The newly launched spot exchange of bullion will enable India to emerge as a determinant of gold prices globally over time.
The products available for trade
Registered jewellers on the exchange and vaults
The exchange has two vault operators-Sequel Global and Brinks India-and the regulator is in the process of approving another vault operator. The regulator will also approve setting up of a bullion refinery in the GIFT-IFSC. A cumulative storage capacity for approximately 125 tonnes of gold and 1,000 tonnes of silver is planned at the GIFT City.
Further, the Ministry of Commerce and Industry, through a notification dated July 6, 2022, has stated that any unit in an SEZ (Special Economic Zone) which is permitted to store bullion for the purpose of issuance of bullion spot delivery contract and bullion depository receipts (BDR) for trading on IIBX, will be deemed as a unit in IFSC. These receipts will be traded in dollar on the exchange. The instruments representing gold traded on the exchange will be called Electronic Gold Receipts (EGRs). Being a spot exchange, all the open positions will be marked for delivery at the end of the day.
Advantages of Bullion Spot Exchange
Indian rupee ended its biggest weekly gains in more than two months tracking strength in most other Asian peers while bond yields inched lower after dovish comments from U.S. Federal Reserve Chair Jerome Powell. Going forward next week, RBI policy outcome will be key to watch for further guidance in rupee. Accordingly market consensus revised lower for a 35 bps hike from RBI instead of 50 bps based on ease in India's headline inflation print in June and slight relief came from FOMC. Technically USDINR will be facing steep resistance around 79.88 on a weekly basis while 78.80 is a crucial pivot in next few days. If the support breaches on spot then we can expect the pair to slide towards 78.7 as well. Meanwhile euro and other riskier currencies continues its uptrend backed by dovish comments from Fed’s chair as well as disappointing second quarter GDP print in US economy. Accordingly US Q2 advance GDP recorded -0.9% vs +0.5% expected. Admittedly Fed’s Chair clearly stated that further rate hike will be based on an incoming economic data and certainly such print is likely to derail the rate projection for the rest of 2022.
USD/INR (JUL)contract closed at 79.6950 on 28-July-22. The contract made its high of 79.9375 on 25-July-22 and a low of 79.6300 on 28-July-22 (Weekly Basis). The 21-day Exponential Moving Average of the USD/INR is currently at 79.55
On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 61.65.One can sell at 79.65 for the target of 79.00 with the stop loss of 79.95.
GBP/INR (JUL)contract closed at 96.5400 on 28-July-22. The contract made its high of 97.4875 on 28-July-22 and a low of 95.5900 on 26-July-22 (Weekly Basis). The 21-day Exponential Moving Average of the GBP/INR is currently at 96.2500.
On the daily chart, GBP/INR has Relative Strength Index (14-day) value of 47.85. One can buy at 96.00 for a target of 97.00 with the stop loss of 95.50.
| 28th JUL | India rupee rose to a near three-week peak as investor nerves over sustained aggressive policy tightening by the Federal Reserve were calmed further after the U.S. GDP data. |
| 28th JUL | Sterling rallied to a new three-month high versus the euro as traders dumped the single currency on concerns about an escalating energy crisis in the euro area. |
| 28th JUL | The Japanese yen headed toward its best month in almost three years as growth worries have driven U.S. yields sharply lower and squeezed speculators out of crowded short yen positions. |
| 28th JUL | US Gross Domestic Product contracted by 0.9 per cent in the second quarter of this year after a first-quarter drop of 1.6 per cent, the US Commerce Department said Thursday in a preliminary estimate that technically placed the economy in a possible recession. |
| 27th JUL | Asian currencies jump on bets Fed will slow rate hikes |
EUR/INR (JUL) contract closed at 80.7850 on 28-July-22. The contract made its high of 81.9350 on 26-July-22 and a low of 80.7275 on 28-July-22 (Weekly Basis). The 21-day Exponential Moving Average of the EUR/INR is currently at 81.75.
On the daily chart, EUR/INR has Relative Strength Index (14-day) value of 43.25. One can buy at 81.00 for a target of 82.00 with the stop loss of 80.50.
JPY/INR (JUL) contract closed at 58.7700 on 28-July-22. The contract made its high of 59.0325 on 28- July-22 and a low of 58.3550 on 25-July-22 (Weekly Basis). The 21-day Exponential Moving Average of the JPY/INR is currently at 58.35
On the daily chart, JPY/INR has Relative Strength Index (14-day) value of 47.50 One can buy at 59.20 for a target of 60.20 with the stop loss of 58.70.
Packaged snacks player Annapurna Swadisht has filed a draft red herring prospectus (DRHP) for its initial public offering (IPO) with capital markets regulator Sebi. According to the company's DRHP, the proposed issue will comprise the issuance of fresh 43.22 lakh equity shares, with a face value of Rs 10 each. The Kolkatabased food and beverage company will launch its IPO on the ‘emerge’ platform of the National Stock Exchange (NSE), the platform for MSME companies to raise funds. The net proceeds from the issue will be utilized for funding its growth plans, including setting up additional manufacturing units in West Bengal and expanding the product range to eastern and northeastern states in the country. Incorporated in 2016, Annapurna Swadisht operates over 35 SKUs ranging from extruded snacks to pellet-based snacks to potato snacks to 'namkeens' to candies and cakes. The company has two manufacturing facilities in West Bengal. It has a network of around 400 distributors. The company recently forayed into the direct-to-consumer (D2C) segment with the Olonkar range of products and has tied up with Big Basket for distribution. Corporate Capital Ventures has been appointed as the sole lead manager for the issue, whereas Skyline Financial Service is the registrar to the issue.
Chemical manufacturer Gujarat Polysol Chemicals and construction and hospitality firm PKH Ventures have received capital markets regulator Sebi's go ahead to raise funds through initial public offerings (IPOs). The two companies, which filed preliminary IPO papers with Sebi in March, obtained "observation" letters from the regulator during July 18-22, an update with the markets watchdog showed. Going by the draft papers, Gujarat Polysol Chemicals is looking to raise ₹414 crore through its initial share sale. The IPO comprises fresh issue of equity shares aggregating up to ₹87 crore and an offer-for-sale (OFS) of equity shares aggregating up to ₹327 crore by its promoters. The company will use the net proceeds to retire debt and general corporate purposes. As per the draft prospectus, the initial share-sale of PKH Ventures consists of fresh issuance of over 18.2 million and an OFS of 9.8 million equity shares by its promoter. Proceeds of the issue will be used to invest in subsidiaries - Halaipani Hydro Project and Garuda Construction - funding long-term working capital requirements, for funding strategic acquisitions and investments, among others.
Ethnic apparel retailer Sai Silks (Kalamandir) Limited has filed preliminary papers with capital markets regulator Sebi to raise as much as Rs 1,200 crore through an initial public offering (IPO). The IPO comprises a fresh issue of equity shares worth Rs 600 crore and an offer for sale of up to 18,048,440 equity shares by promoters and promoter group entities, according to the draft red herring prospectus (DRHP). The net proceeds of the fresh issue will be used for establishing 25 new stores, setting up two warehouses, supporting working capital requirements, payment of debt and general corporate purposes. As per market sources, the issue size is expected to be Rs 1,200 crore. Motilal Oswal Investment Advisors, Edelweiss Financial Services and HDFC Bank are the book-running lead managers to the issue. Sai Silks is one of the leading retailers of ethnic apparel, particularly sarees, in south India in terms of revenues and profit after tax in fiscal 2019, 2020 and 2021.
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HDFC Mutual Fund has launched two new ETFs – HDFC NIFTY Next 50 ETF and HDFC NIFTY 100 ETF. The fund house says the new schemes will help to expand suite of “HDFC MF Index Solutions”, which HDFC Mutual Fund has been managing for the past 20 years. These funds offer a simple way to gain exposure to the Indian large cap space. The NFOs are now open and will close on August 1. According to the fund house, the benchmark of HDFC NIFTY Next 50 ETF – NIFTY Next 50 Total Returns Index (TRI) offers diversification benefits at stock and sector level, while providing potential for higher riskadjusted returns vs NIFTY 50 in the long term. Further, this index offers higher potential for growth as it could contain the next league of NIFTY 50 constituents. The benchmark of HDFC NIFTY 100 ETF – NIFTY 100 TRI offers a simple way to gain exposure to the Indian large cap space by focusing on top 100 companies based on full market capitalization. It provides more balanced diversification than NIFTY 50 Index, while tracking the behaviour of the combined portfolio of NIFTY 50 and NIFTY Next 50 Indices.
Baroda BNP Paribas Mutual Fund has announced the launch of Baroda BNP Paribas Flexi Cap Fund, a dynamic equity scheme with a flexibility to invest across market caps. The fund focuses on identifying investment opportunities across sectors and market capitalizations and aims to create long-term wealth by investing predominantly in equity and equity related securities. The New Fund Offer (NFO) will close for subscription on 5 August. The fund will be managed by Sanjay Chawla, Chief Investment Officer – Equity, Baroda BNP Paribas Asset Management India. The scheme will adopt a threepronged approach to investing. A top-down approach to select sectors, a horizontal approach to choose market caps and a bottom-up approach to select stocks.
IDFC Mutual Fund has launched IDFC Midcap Fund, an open-ended equity scheme investing predominantly in equities and equity-linked securities in the midcap segment. The New Fund Offer will open for subscription on July 28 and close on August 11. According to the press release, the key differentiator of IDFC Midcap Fund is that it will follow a 5 Filter Framework for the selection of stocks, helping build a high- quality, growthorientated portfolio. This investment framework selects companies based on five fundamental parameters including Governance/Sustainability, Capital Efficiency, Competitive Edge, Scalability, and Acceptable Risk/Reward.
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