In the past weak, global stock markets experienced volatility as investors digested news from corporate America indicating a potential slowdown in consumer spending, coupled with a four-month low in oil prices. Crude oil prices declined as concerns about a supply squeeze waned due to rising inventories and fears of a global economic slowdown. In the U.S., factory production fell more than expected in October, primarily due to strikes at automakers and parts suppliers, resulting in a 0.7% decrease in manufacturing output – the most significant drop in four months. Simultaneously, U.S. retail sales in October, though lower than anticipated, provided some investors with cause for optimism, suggesting a potential 'soft landing' for the U.S. economy and the likelihood that the Federal Reserve has concluded its rate hikes. European stock markets also faced volatility, reversing earlier positive sentiment following upbeat data releases from the U.S. and China. China reported better-than-expected retail sales and industrial data for October, with retail sales growing by 7.6% year-on-year and industrial production rising by 4.6%. The International Monetary Fund (IMF) raised its China growth forecast for the year to 5.4% and also adjusted its 2024 growth forecast to 4.6%.
Back in India, the domestic market mirrored global trends with a volatile session in October. Consumer Price Index (CPI) inflation eased to 4.87%, the lowest in four months. Notably, Foreign Institutional Investors (FIIs) turning buyers, is a significant shift in line with declining bond yields in the U.S. The Reserve Bank of India (RBI) also tightened norms for personal loans and credit cards, imposing higher capital requirements with a 25- percentage-point increase in risk weights for lenders and Non-Bank Financial Companies (NBFCs) on retail loans. Looking ahead, market is expected to continue its upward movement driven n by robust macro data and diminishing global concerns. With the conclusion of the earnings season, domestic investors will shift their focus to both global and domestic macroeconomic factors.
In the commodity market, the CRB experienced a slight rebound, closing near 314 despite a notable drop in the dollar index from 106 to 104 amid expectations of an interest rate cut in 2024. Gold saw a significant bounce, while silver demonstrated even greater strength, rising from a low of 69,053 to over 73,300. Gold surpassed the 60,000 level once again, and both gold and silver are expected to trade within the ranges of 59,800-62,000 and 71,000- 75,000, respectively. In the energy sector, crude oil prices turned bearish, while natural gas prices are likely to continue their upward trend, projected to trade in the range of 255-285 levels. Base metals are poised for further recovery. On the data front, scheduled releases such as Existing Home Sales, FOMC Meeting Minutes, Core Durable Goods Orders, and Initial Jobless Claims from the U.S., along with German GDP, are expected to provide the next cues for commodity 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.
Strong distribution reach and portfolio from the mass to premium end helped the company achieve good growth. The company has delivered strong volume and revenue growth during the quarter driven by broad based performance across major markets and categories. Moreover, e-commerce channel continued its strong growth trajectory and the management of the company aims to increase investment in digital marketing, especially in the international markets, to effectively reach a younger consumer base. Thus, it is expected that the stock will see a price target of Rs.1064 in 8 to 10 months’ time frame on target P/BV of 5.5x and FY25 BVPS of Rs.193.48.
The bank is able to grow faster than the average industry growth trends in both deposits and advances. The management of the bank plans to grow 40-50% faster than the system on the asset side in the next two years, with a focus on wholesale, SME, and retail segments. Key indicators like NIM, CRAR, RoA, NPA ratios etc. continues to be strong. Thus, it is expected that the stock will see a price target of Rs.417 in 8 to 10 months’ time frame on 1 year’s average P/BV of 1.65x and FY25 BVPS of Rs.252.94.
The stock closed at Rs.262.65 on 17th November, 2023. It made a 52-week low of Rs.183.95 on 28th March, 2023 and a 52-week high of Rs.276.5 on 8th September, 2023. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 233.
Recently, a trend line breakout was observed on the daily chart. Following a test of the 200 exponential moving average (EMA) as support, the stock rebounded. Demonstrating resilience against market conditions, the stock has displayed a buying pattern in the last few sessions, particularly in the power sector. Consequently, it is advisable to consider purchasing the stock within the range of 258-262 levels, targeting an upside potential of 288-290 levels, while maintaining a stop-loss below 240 levels.
The stock closed at Rs.4180 on 17th November, 2023. It made a 52-week low of Rs.2977.25 on 26th December, 2022 and a 52- week high of Rs.4528.45 on 11th September, 2023. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 3781.
Following a correction after reaching a 52-week high, the stock formed an inverted head and shoulders pattern on the daily chart. Maintaining an uptrend, the stock is currently positioned above its 200-day exponential moving average. Presently, the stock is trading near to the neckline of the invert head and shoulders pattern. One may consider purchasing the stock within the range of 4180-4200 levels, anticipating an upside target of 4640-4660 levels, with a suggested stop-loss set below 3880 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.
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The recent weekly performance of the Indian stock market reveals a mixed trend, with Nifty closing 1% positive and Banknifty closing almost 1% negative. This divergence suggests that Nifty has outperformed Banknifty on a weekly basis. The banking sector appears to be a major laggard, contributing to the negative performance of Banknifty. In contrast, the realty sector has shown strength and there has been a positive bounce in the IT sector. The Nifty options indicate a concentration of open interest on the call side at strikes 19,800 and 19,900. On the put side, the highest open interest is observed at strikes 19,700 and 19,600, indicating a level of support that traders are anticipating. For Banknifty options, the highest call open interest is concentrated at strikes 43,800 and 44,000. On the put side, the highest open interest is observed at strikes 43,000 and 43,500. Implied volatility (IV) for Nifty's call options settled at 9.43%, while put options concluded at 10.29%. The India VIX, a key indicator of market volatility, concluded the week at 11.65%. The Put-Call Ratio Open Interest (PCR OI) stood at 1.22 for the week. Investors should closely monitor key support and resistance levels, which may provide further insights into the market's direction in the coming weeks. Nifty is expected to trade in the range of 19900 on upside whereas on downside, it may test 19500 as support.
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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 prices extended their losses as market participants trimmed their long positions in the wake of improved crop condition in Maharashtra and Telangana. Selling pressure surged up on demand concerns as stockists and millers stayed away from bulk buying in the wake of larger ending stocks. Stocks are expected to be offloaded ahead of new crop season that will keep prices down. Spot prices are ruling at premium of INR 700 per quintal over futures due to tighter availability of quality produce in the market. Major focus is on crop progress which has been satisfactory despite facing drier than normal weather in Oct in major producing states but extension in dryness may spark short covering in prices. Area under turmeric has already been down by 10% in year 2023 that may affect overall production adversely. Overall production is likely to remain down as compared to current year (2023-24) year production of 10.45 lakh tonnes. In the wake of lower acreages under turmeric, it seems overall production for year 2024-25 is likely to drop at least by 8%-10% Y-o-Y. Turmeric export has been higher by 16.2% Y-o-Y during time period of Apr’23-Aug’23 and expected to increase further as per export seasonality. Turmeric prices are likely to trade in the range of 11700 -14900 in coming weeks.
Jeera prices dropped again last week on demand concerns. Buying activities remained sluggish in expectation that stockists will release their stocks ahead of new crop season. Speculative buying and hoarding pushed the jeera prices at record level in year 2023 but prices have dropped more than INR 22000/quintal from record levels due to sluggish exports. Total Jeera exports have slumped 26% Y-o-Y during Apr’23-Aug’23. Prices will track ongoing sowing activities, which have been slower so far in Gujarat and expected to improve in coming weeks. Sowing activities has been slower due to adverse weather in Oct’23 as only 7615 Ha was sown under jeera as on 16th Nov’23 in Gujarat as compared to 28592 Ha of previous year. Better return over cost of cultivation and conducive sowing prospects will weigh on the market sentiments. Jeera Prices are expected to trade in the range of 38500- 51500 in near term.
Dhaniya prices traded mixed to down as losses in dhaniya was capped by reports of slower sowing progress in Gujarat. Reports of surging exports and bleak global supplies lured stockists for fresh buying in dhaniya. Sowing activities are slower so far in the year 2023 due to delayed sowing in Gujarat as only 4599 Ha was sown under dhaniya in Gujarat as on 16th Nov as compared to 32210 Ha of previous year. Robust export demand will support firmness in prices. India exported about 6.2 thousand tonnes of dhaniya in Aug’23 against the 2.6 thousand tonnes of last year whereas overall export was reported at 81.3 thousand tonnes during Apr’23-Aug’23 higher by 268% Y-o-Y. Dhaniya prices are likely to trade in the range of 7500-8780 levels.
Gold secured its initial weekly gains on the back of rising investor confidence in the U.S. Federal Reserve's potential conclusion of interest rate hikes, putting downward pressure on both the dollar and Treasury yields. The October U.S. consumer price index remained stable, while the core rate showed a modest 0.2% increase, falling short of expectations. Simultaneously, producer prices experienced their most significant decline in three-and-a-half years. This prompted a reassessment of forecasts for future Federal Reserve actions, as lower interest rates reduced the opportunity cost of holding gold—a non-yielding asset often used as an inflation hedge. In tandem, the number of Americans filing new claims for unemployment benefits surpassed expectations, potentially aiding the Federal Reserve in its fight against inflation. Recent data revealed that U.S. consumer inflation slowed more than anticipated in October, coupled with the first decline in retail sales in seven months. The dollar, gauged by the DXY index, was on track for a weekly decline, making gold more affordable for those holding alternative currencies. Concurrently, yields on 10-year Treasury notes hovered near two-month lows. Within the COMEX Gold market, prices remained confined within the $1930 to $2000 range, with an anticipated breakthrough in either direction to define the next trend. Similarly, silver prices stayed within the $21.900 to $24.600 range. Looking ahead, gold prices are expected to persist within the 59000-62000 range, while silver is likely to follow suit within the 70500 to 75000 range. These developments underscore the delicate equilibrium in the precious metals market, where economic indicators and Federal Reserve policy expectations continue to influence the trajectory of gold and silver prices.
Crude oil endured its fourth consecutive week of decline, maintaining relative stability in early Asian trade following a significant 5% dip to a four-month low on Thursday, driven by escalating concerns over global demand. Both major oil indices collectively shed around one-sixth of their value over the past four weeks, reflecting a sustained bearish sentiment. Despite OPEC and the International Energy Agency (IEA) predicting supply tightness in the fourth quarter, recent key global economic data has painted a demand outlook bleaker than originally anticipated. The decline in oil prices this week was primarily fuelled by a notable surge in U.S. crude inventories and sustained record-level production. Analysts suggest that this development has triggered concerns about weak demand in the world's largest oil consumer, amplifying apprehensions in the market. The recent price drop may also prompt Saudi Arabia to contemplate extending oil output cuts into 2024. Anticipation is growing regarding OPEC's policy decisions in the coming weeks, as the group is scheduled to convene in Vienna on November 26. Market observers expect a rebound as prices enter oversold territory, projecting a potential trading range between 5700 and 6300 levels. In contrast, natural gas futures experienced a sharp decline following a 'Bearish' Storage Report from the Energy Information Administration (EIA), encompassing two weeks of data. This report included a 6 Bcf drop in the week ending November 3, attributed to a cold spell that bolstered demand. NatGasWeather.com deemed the EIA report "quite bearish." Looking ahead, natural gas prices are likely to witness continued fluctuations on both sides, with expected support near 240 and potential resistance near 280, reflecting the inherent volatility in the energy market.
Base metals may trade sideways with bearish bias as demand concerns in top metals consumer China may weigh on counter. Although, positive industrial production data from top consumer China have boosted sentiment, gains are constrained by weakness in the country's property sector and a stronger dollar. China's industrial output rose 4.6% in October year-on-year above the consensus for a 4.4% increase and the strongest since April. But its crisis-hit property sector has yet to see a meaningful rebound despite support measures for homebuyers including lower borrowing costs. Copper may trade in the range of 690-725 levels. Worries about demand in China, which accounts for nearly half of global copper consumption, were reinforced by new home prices falling for a fourth month in October. Increasing China's refined copper domestic production is another drag for the market. Zinc can trade in range of 218-238 levels. Inventories of zinc in warehouses approved by the LME have nearly doubled to 133,200 metric tons after inflows of 65,725 tonnes into storage facilities in Singapore and Malaysia owing to large arrivals after months of dwindling stocks, LME data showed. Lead can move in the range of 184-193 levels. Aluminium can trade in the range of 195-215 levels. According to the National Bureau of Statistics of China, driven by rising smelter profits and domestic demand, China’s primary aluminum production totaled 3.62 million tons in October, up by 6% compared to the same month a year ago, hitting a record monthly high. China's aluminum consumption has remained stable. Steel long (Dec) is likely to trade in the range of 43400-46000 levels and sell on rise should be strategy.
Cotton prices extended their losses with surging arrival pressure as harvesting activities picked up at major producing states. Weather condition is favorable for harvesting that will boost supplies of new crop in the market. Cumulative arrivals of cotton in year 2023-24 have reached at 32.47 lakh bales as on 16th Nov but down as compared to last year. The Committee on Cotton Production and Consumption estimated cotton production in the current season (October 2023 to September 2024) to be 316.57 lakh bales (170 kg each) as against 336.60 lakh bales in 2022-2023. Lower production estimated of cotton will cap the excessive losses in prices. The total consumption by textile mills is expected to be 294 lakh bales compared with 295 lakh bales last season. Exports are likely to be 25 lakh bales and imports 12 lakh bales. Cotton MCX Nov prices are likely to trade in the range of 55500-60000 levels. Similarly, Kapas Apr’24 futures are likely to trade in range of 1530-1620 level. Similarly, cotton seed oil cake (Cocud) will trade down with increased availability of alternative meals in the market. Improved supply prospects will weigh on prices. Cocud prices are expected to trade in the range of 2720-3050 levels.
Guar seed futures surged up on short covering with shrinking supplies in the market. Gains in guar seed is looking temporary with fading export prospects of gum in line with fall in crude oil prices. Persistent weakness in crude oil prices has hampered the export opportunities of gum that will exert pressure on guar seed prices as well. Guar prices have fair correlation with crude prices as guar is majorly used during oil drilling activities. However, overall production of guar has been down as compared to last year that will cap the losses. Crude margin for millers has been unprofitable due to lower prices of guar gum and meal that affected milling demand of guar seed. Demand for guar meal has been muted with increased supplies of other meal alternative in the market. Guar gum export dropped by 16% M-o-M in August’23 to near 17 thousand tonnes due to limited buying by USA. Guar seed prices may find support soon near 5450 whereas resistance is seen at 6080. Similarly, Guar gum prices are likely to honor support of 10800 with resistance of 12700.
Mentha oil prices are likely to trade on positive bias with improved buying interest against limited availability in the market. Supplies have dropped with fall in production in year 2023 and that will support firmness in prices ahead. However, sluggish export of mentha oil is still major concerns for exporters that will cap the gains. India exported about 692 tonnes of mentha oil during Apr23- Aug’23 as compared to 886 tonnes of the previous year down by 21% Y-o-Y. Mentha oil Nov prices are likely to find support near 890 levels and resistance can be seen at 955 levels.
Castor seed prices are likely to trade sideways to higher with shrinking supplies in the market. Reports of rise in export of castor meal are likely to support firmness in prices. Castor seed prices are likely to trade in the range of 5800- 6300 levels.
It closed at Rs. 189.70 on 16th Nov 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs.187.634. On the daily chart, the commodity has Relative Strength Index (14-day) value of 82.968. Based on both indicators, it is giving a buy signal.
One can buy near Rs.186 for a target of Rs. 195 with the stop loss of 182.
It closed at Rs. 6072.00 on 16th Nov 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs.6497.334. On the daily chart, the commodity has Relative Strength Index (14-day) value of 28.595. Based on both indicators, it is giving a sell signal.
One can sell near Rs.6220 for a target of Rs.5770 with the stop loss of 6380.
It closed at Rs.13420.00 on 16th Nov 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs.13506.102 On the daily chart, the commodity has Relative Strength Index (14-day) value of 24.526. Based on both indicators, it is giving a sell signal.
One can sell near Rs.13250 for a target of Rs. 12250 with the stop loss of 13850.
NOTE: *M.High / M.Low stands for Monthly High / Monthly Low
The CRB showed a marginal rebound, closing near 314 levels despite a significant drop in the dollar index, which fell from 106 to 104 on expectation of interest rate cut in 2024. U.S. rate futures on Tuesday priced in a 65% chance of a rate cut in May next year, compared with 34% late on Monday, according to the CME's Fed Watch tool. Gold experienced a notable bounce, but silver demonstrated even greater strength, rising from a low of 69,053 to over 73,300. Gold once again surpassed the 60,000 level. Gold prices extended gains, supported by a weaker U.S. dollar and bond yields after data showing slowing inflation in the U.S. bolstered the view that the Federal Reserve is done with its rate-hike campaign. Silver noticeably outperform gold, attributing it to a positive outlook for industrial demand and on-going transformation of the economy towards climate neutrality, in which silver plays an important role. Crude oil prices decreased due to a rise in crude oil inventory, influenced by a slowdown in China. U.S. crude stocks rose by 3.6 million barrels last week to 421.9 million barrels, according to the U.S. Energy Information Administration (EIA), far exceeding analysts' expectations. Natural gas futures had a modest recovery. NatGasWeather forecasts for November 16-22 predict warmer-than-normal conditions in most of the U.S., with a subsequent shift to cooler temperatures in the Midwest and Northeast. This shift is expected to increase seasonal demand for natural gas, albeit not robustly, due to continued warmer conditions in other parts of the country. Among base metals, copper exhibited strength, while lead and zinc performed well. However, aluminum faced limited upside due to the decline in crude oil prices.
In the agricultural sector, castor seed prices saw an increase for the second consecutive week on positive bias on emerging demand at physical market. Shrinking supplies of castor seed and increased export demand of castor meal will support firmness in prices. Cotton candy futures had a slight upward movement, and its derivative, cotton oil seeds cake futures, found support and closed in positive territory. Guar prices rose due on weaker note due to demand concerns. Muted demand of gum and increased availability of alternative of guar meal has led to fall in crushing activities of guar seed and that has reflected as fall in prices of guar seed. In the spice market, jeera and dhaniya prices contributed positively to the portfolio, while turmeric experienced a decline from higher levels due to sluggish buying in physical market. Improved yield and muted domestic demand weighed on prices. Hand to mouth buying in physical market and expectation of rise in area under coriander sowing activities are slower so far in year 2023 due to drier weather condition in Oct but expected to improve in coming days as weather conditions are likely to be conducive for sowing progress. Only 4599 Ha was sown under dhaniya in Gujarat as on 16th Nov as compared to 32210 Ha of previous year.
Crude oil prices have been falling in the recent months and officially entered a bear market in November 2023. A bear market is a period of extended market decline, typically defined as a decline of 20% or more from a recent high. In the case of oil, prices have fallen by more than 30% since their peak in early 2023.
The Indian Rupee exhibited a relatively stable performance over the past week, showing marginal fluctuations of around 0.1%. This stability persisted despite favorable global conditions, such as a decline in U.S. Treasury yields and a surge in Asian currencies. The U.S. Dollar Index experienced a notable 2% drop following weak inflation data in October, causing the rupee to reach a high of 83.04 against the dollar. However, these gains were short-lived as heightened demand for dollars from importers led to a retracement. Importantly, the USD/INR pair is expected to maintain a narrow range, fluctuating between 83.00 and 83.45 throughout the week, barring any significant global triggers. The pressure on Asian currencies, including the rupee, has been somewhat alleviated by the anticipated interestrate cuts by the U.S. Federal Reserve in 2024. Despite the rupee's inability to capitalize on upward movements, the Dollar Index recorded its most substantial weekly decline in months against the euro, yen, and pound. Notably, it experienced a 1.6% dip against the euro, marking its sharpest fall since mid-July, while the yen reached its lowest point in over a year. The dynamics of currency movements seem to hinge on the timing of interest rate cuts by central banks in the coming year. Recent data, particularly the U.S. Consumer Price Index (CPI), has led swap markets to price in a 98 basis points (bps) Fed rate cut in 2024, starting as early as May, compared to the initial projection of June priorto the CPI release. Despite soft economic indicators from the UK and the Eurozone, maintaining a favorable rate differential for the dollar against the euro, pound, and yen, the situation may evolve in the coming days. Looking ahead, the upcoming week is anticipated to feature light economic data, with a focus on Eurozone Purchasing Managers' Index (PMI) figures. The performance of these indicators will likely be a key factor influencing currency movements in the nearterm.
USDINR (OCT) pair is currently in an Bullish trend as trading above its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 83.26. However, the pair is in neutral territory with a Relative Strength Index (14-day) value of 51.2 on the daily chart. Major support is seen around 82.8 levels, while resistance is expected near 83.7 levels.
One can buy near 83 for the target of 83.6 with the stop loss of 82.7
GBPINR (OCT) pair is currently in an Bullish trend as trading above its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 102.2. However, the pair is in neutral territory with a Relative Strength Index (14-day) value of 60.8 on the daily chart. Major support is seen around 102.2 levels, while resistance is expected near 104.6 levels.
One can buy near 103 for the target of 104 with the stop loss of 102.5
EURINR (OCT) pair is currently in an Bullish trend as trading above its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 89.09. However, the pair is in overbought territory with a Relative Strength Index (14- day) value of 68.47 on the daily chart. Major support is seen around 88.5 levels, while resistance is expected near 91 levels.
One can sell near 90.5 for the target of 89.5 with the stop loss of 91
JPYINR (OCT) pair is currently in an Sideways trend as trading between its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 55.5. However, the pair is in neutral territory with a Relative Strength Index (14-day) value of 45.3 on the daily chart. Major support is seen around 55 levels, while resistance is expected near 56.2 levels.
One can sell near 56 for the target of 55 with the stop loss of 56.5
(3.5/5)
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The objects of the Offer are:
Achieve the benefits of listing the Equity Shares on the
Stock Exchanges;
Carry out the Offer for Sale of up to 95,708,984 Equity
Shares by the Selling Shareholders.
Considering the P/E valuation on the upper price band of Rs.500, EPS and P/E based on TTM are Rs.17.67 and 28.29 multiple respectively and at a lower price band of Rs. 475, P/E multiple is 26.88. Looking at the P/B ratio on the upper price band of Rs.500, book value and P/B are Rs. 70.33 and 7.11 multiple respectively and at a lower price band of Rs. 475 P/B multiple is 6.75. No change in pre and post issue EPS and Book Value as the company is not making fresh issue of capital.
Incorporated in 1994, Tata Technologies Limited is a leading global engineering services company. The company offers product development and digital solutions. This includes turnkey solutions, to global original equipment manufacturers (OEMs) and their tier-1 suppliers. Tata Technologies aspires to create value for their customers by assisting them in the development of products that are safer, cleaner and improve the quality of life for the end customers. With its deep domain expertise in the automotive industry, it has gained high expertise to serve clients in adjacent industries also, such as aerospace and transportation and heavy construction machinery.
Deep expertise in the automotive industry: Its comprehensive portfolio of services for the automotive industry addresses the product development and enterprise optimization needs of traditional OEM’s and new energy vehicle companies, together with their associated supply chains. Its automotive domain expertise and deep understanding of client requirements underpins the approach it takes to helping its clients leverage digital technologies to optimize the manner in which they conceive, develop, manufacture, sell and service new products.
Differentiated capabilities in new age automotive trends – electric vehicles (“EVs”), connected and autonomous: Its end-to-end solutions for EV development, manufacturing and after-sales services are designed to help OEMs develop competitive EVs while maintaining a balance between cost, quality and timelines. Further, its suite of omnichannel after-sales solutions powered by the Power of 8 platforms can help OEMs engage with their EV customers early and manage the entire customer journey effectively. This capability of integrating the mechanical engineering aspect of product development with digital engineering, embedded solutions, and software allows it to provide end-toend solutions to its clients for EV development, manufacturing and after-sales services.
Strong digital capabilities bolstered by proprietary accelerators: Its suite of digital services and accelerators are designed to help OEMs and tier 1 suppliers manage the entire digital product life cycle and engage the customer throughout the product journey. The solutions leverage its deep manufacturing domain knowledge and intimate understanding of clients.
Marquee set of clients across anchor accounts, traditional OEMs and new energy vehicle companies: It has a diversified global presence across Asia Pacific, Europe and North America and partner with many of the largest manufacturing enterprises in the world. As of September 30, 2023, its clients are comprised of more than 35 traditional automotive OEMs and tier 1 suppliers and more than 12 new energy vehicle companies. Its client portfolio includes its Anchor Clients, TML and JLR, leading traditional OEMs and tier 1 suppliers such as Airbus, McLaren, Honda, Ford, and Cooper Standard as well as new energy vehicle companies such as VinFast, among others such as Cabin Interiors and Engineering Solutions, ST Engineering Aerospace.
Deepen engagements within existing client base: The company believes there is a significant opportunity within its current client base to increase the use of its solution offerings and further develop deeper, long-term strategic engagements. Currently, its top 20 clients by revenue attributable to the Services segment account for 88.40% of its revenue attributable to the Services segment for Fiscal 2023. It plans to drive further value by prioritizing the right high potential accounts through strategic account planning.
Target top ER&D spenders in select high priority verticals and key geographies: The company endeavors to secure projects with the top ER&D spenders within its focus verticals of automotive, aerospace and TCHM. It aims to strengthen its dedicated business development strategy to focus on high potential accounts with large annual ER&D spends and new energy vehicle companies.
Expand capabilities in digital engineering and embedded systems: The company is focused on scaling up its embedded and digital and software defined vehicle (“SDV”) capabilities and offerings through investments and strengthening alliances as part of its diversification strategy. It is also focused on leveraging its full turnkey product development capabilities related to EVs.
Tata Technologies is one of the leading players in automotive ER&D services globally, from where it garners 75 per cent of revenues. The company serves global Original Equipment Manufacturers and their Tier-1 suppliers, with Tata Motors and Jaguar Land Rover being anchor clients, contribution collectively 40 per cent of the company’s service revenues. As the company derives significant revenues from its top 5 clients (73% of its revenues for FY23) including Tata Motors. Any loss of such clients can have significant impact on company revenues. Along term investor may opt the issue.
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After achieving the milestone of 20,000 in September 2023, Nifty50 consolidated in October after global and local markets were jolted by the IsraelPalestine conflict. The index oscillated 1,012 points before closing 559 points (or 2.8% MoM) lower at 19,080, notably the steepest month-on-month decline in calendar year 2023, noted brokerage Motilal Oswal in a note. While foreign institutional investor ( FII) outflows have been sharp in the last two months, they were offset by stronger domestic institutional investor ( DII) inflows. In October 2023, DIIs recorded the highest inflows in the last seven months at $3.4 billion. FIIs saw outflows for the second consecutive month at $2.7 billion. Equity assets under management ( AUM) for domestic mutual funds ( MFs) (including ELSS and index funds) decreased 1.4 per cent month-on-month to Rs 20.7 trillion in October 2023, led by a decline in the market indices. Notably, the month saw an increase in sales of equity schemes (up 4.3 per cent) The pace of redemptions slowed down 14.8 per cent to Rs 260 billion. This is a six-month low. Consequently, net inflows accelerated to Rs 220 billion in Oct’23 from Rs 155 billion in Sep’23, noted Motilal Oswal. Meanwhile, total assets under management for the MF industry rose 0.3% month-on-month to Rs 46.7 trillion in Oct’23, led by a monthly increase in AUM for liquid (Rs 425 billion), income (Rs 38 billion), arbitrage (Rs 29 billion), gold ETFs (Rs 24 billion), and Gilt (Rs 23 billion) funds but offset by a MoM decline in AUM for equities (Rs 286 billion), other ETFs (Rs 79 billion), and balanced funds (Rs 29 billion), noted the brokerage. Total equity value for the top 20 AMCs declined 1.8% MoM (+20.2% YoY) in Oct’23 vs. a 2.8% MoM fall (+5.9% YoY) for the Nifty-50. Among the Top 10 funds, the maximum MoM decline was seen in Aditya Birla Sun Life Mutual Fund (-4.5%) followed by Axis Mutual Fund (-3.5%), SBI Mutual Fund (-2.5%), DSP Mutual Fund (-2.5%), and Mirae Asset Mutual Fund (- 2.5%).
Invesco Mutual Fund has announced changes in fund managers for its three equity schemes. Through a notice cum addendum, the fund house informed the investors that the fund managers for Invesco India Growth Opportunities Fund, Invesco India Midcap Fund, and Invesco India Smallcap Fund have been changed. The changes are effective from November 9.
| Scheme | Old fund managers | New fund managers |
|---|---|---|
| Invesco India Growth Opportunities Fund | Amit Ganatra | Aditya Khemani and Amit Ganatra |
| Invesco India Midcap Fund | Amit Ganatra | Aditya Khemani and Amit Ganatra |
| nvesco India Smallcap Fund | Taher Badshah | Taher Badshah and Aditya Khemani |
The fund house also informed that all other terms and conditions of the SIDs, KIMs and SAIs of the schemes will remain unchanged. This addendum forms an integral part of the SIDs and KIMs of the above-mentioned schemes as amended from time to time. The schemes are from large and mid cap, mid cap, and small cap categories. Aditya Khemani, who has around 18 years of experience in the securities market, joined the fund house on November 1. He has previously worked with Motilal Oswal Mutual Fund where he managed two prominent schemes such as Motilal Oswal Long Term Equity Fund and Motilal Oswal Large and Midcap Fund. He also worked with HSBC Mutual Fund, SBI Mutual Fund, and ICICI Prudential Mutual Fund at different positions.
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