In the week gone by, market witnessed a mixed trend with investors digesting a flood of quarterly earnings and rising interest rates. Now the European Central Bank too joined the Fed in hiking interest rates. The European Central Bank also raised interest rates for the first time in 11 years, with a 0.5% hike. The ECB also agreed to provide extra help to the 19-country currency bloc's more indebted nations, approving a new bond purchase scheme called Transmission Protection Instrument, intended to cap the rise in their borrowing costs and limit financial fragmentation. At present Investors are eager for signs that inflation could be peaking, as the Federal Reserve considers whether to raise rates by 50 or 75 basis points during its next week meet. However, the major market driver would be Fed’s commentary on future inflation and growth forecasts. The Bank of Japan projected inflation would exceed its target this year in fresh forecasts, but maintained ultra-low interest rates and signaled its resolve to remain an outlier in a wave of global central banks' policy tightening. The Asian Development Bank has cut the growth forecast for China due to concerns over the country's zero-Covid approach and strict lockdowns, which have also impacted its troubled property market.
Back at home, domestic market continued to maintain its positive stance on the back of strong global cues amid the removal of levy on gasoline exports as well as a cut in windfall taxes on other fuels by the Indian government. Besides, softening of commodity prices, good progress of the monsoon and the expectation of a modest rate hike by the RBI in its August review also boosted the confidence of the investors. Having sold Indian equities worth over Rs 2.3 lakh crore so far in the calendar year 2022, foreign institutional investors (FIIs) are showing some interest in our markets. Since the last 2-3 weeks, FIIs have reduced aggressiveness of selling and have even been buying occasionally. Sugar stocks were in limelight on news that government is considering allowing export of an extra 1-1.2mn tonnes of sugar this season. On account of fresh buying in auto stocks, Nifty auto index surged near to its life-time high of 12,660 levels. Actually, opening up of economy after the pandemic, Focus of the Indian auto companies on the EV segment and current geopolitical setup is favorable for the Indian auto industry and the bulls are giving respect to the sector. Meanwhile, the Reserve Bank of India has postponed the meeting of its interest rate setting Monetary Policy Committee by a day to August 3 due to administrative exigencies. Going forward, global cues and earnings would continue to trigger volatility in the market.
On the commodity market front, CRB stuck in a range with some bearish bias on fall on recession fear talk and market ignored the fall in dollar index from higher side. US gold breached $1700, first time after August, 2021. On MCX, it breached the crucial level of 50000; however, depreciation in INR limited the sharp fall. Investors are keeping an eye on the U.S. Federal Reserve’s meeting due on July 26-27 to get a clue on how aggressive the Fed will be in raising interest rates. A knee jerk reaction in gold is expected in this week ahead of Fed meet. US gold can take support between $1660- 1680 whereas MCX gold can touch 49000-48500 on lower side. Some lower level buying will emerge from the lower side. Energy counter and base metals complex can trade in a range due to mix triggers. Inflation Rate of Australia, GfK Consumer Confidence, Inflation Rate, Unemployment Change, Unemployment Rate and Ifo Business Climate of Germany, Durable Goods Orders, Fed Press Conference, GDP Growth Rate, Core PCE Price Index, PCE Price Index, Michigan Consumer Sentiment Final and Fed Interest Rate Decision of US, GDP Growth Rate of Spain, Inflation Rate of France, Core Inflation Rate and GDP Growth Rate of Italy, GDP of Euro Area and Mexico, etc are some economic data and events that are scheduled this week.
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.
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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 diverse product portfolio and wide market presence. The focus on new launches would leverage their existing prescriber base and target product categories that are emerging and low competition. According to the management, the company will now focus on improving its market share and shall register high growth numbers in its covered market. Thus, it is expected that the stock will see a price target of Rs.455 in 8 to 10 months’ time frame on a current P/BV of 3.90x and FY23 BVPS of Rs.116.62.
The company is widening its product portfolio in power tiller and other small farm equipment segments and simultaneously ramping up dealer network to support its growth plans. The Company believes in leveraging electric, driver optional, and connected vehicle technologies to offer sustainable, productive and profitable farming solutions and has made a strategic investment in Monarch Tractor (Zimeno Inc)-Maker of the World’s First Fully Electric, Driver-Optional Smart Tractor. Thus, it is expected that the stock will see a price target of Rs.3197 in 8 to 10 months’ time frame on a one year average P/BV of 3.27x and FY23 BVPS of Rs.977.60.
The stock closed at Rs 266.80 on 22nd July, 2022. It made a 52-week low at Rs 162.35 on 09th August, 2021 and a 52- week high of Rs. 270.10 on 22nd July, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 217.07
Short term, medium term and long term bias are looking positive for the stock as it is trading in higher high higher lows, which is bullish in nature. The stock has formed a “Triangle” pattern on weekly charts and has given the breakout of falling trend line along with high volume and has also closed above the same. So, further buying is anticipated in the stock in coming days. On the technical indicators front such as RSI and MACD, both also suggest buying in the stock. Therefore, one can buy in the range of 260-263 levels for the upside target of 295-300 levels with SL below 240 levels.
The stock closed at Rs 1605.90 on 22nd July, 2022. It made a 52-week low of Rs 1375.60 on 25th January, 2022 and a 52- week high of Rs 1823.40 on 26th July, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 1541.43
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 a “Cup and Handel” pattern on weekly charts and has tried to give the breakout of same along with high volumes, but its consolidation indicates that there will be a strong spurt in coming days. Therefore, one can buy in the range of 1590-1595 levels for the upside target of 1740-1780 levels with SL below 1520 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 ended higher for the sixth day in a row with Nifty closing above 16700 mark and Bank nifty above 36700 levels. Banking counter along with cement counter showed some good upside momentum while IT and metal remained laggard. From derivative front, put writers held maximum open interest at 16500 strike while call writers were seen shifting at 16800 & 17000 strikes with marginal open interest addition. Implied volatility (IV) of calls closed at 15.96% while that for put options, it closed at 16.87%. The Nifty VIX for the week closed at 16.86%. PCR OI for the week closed at 0.84. Technically Nifty has given a fresh breakout above its 200 days exponential moving average on daily charts, which is placed at 16500 levels and is now likely to face immediate hurdle at 16800 & 17000 levels. Bank Nifty which has outperformed overall market in the week gone by, is now likely to carry its momentum towards 37200 levels in the upcoming sessions. We keep our bullish stance intact for this week as well and advice traders to follow buy on dips strategy in case of any pullback. Nifty has strong support at 16500-16400 zone.
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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 expected to trade in range due to well-balanced fundamentals. Last week prices traded higher but not able to cross the resistance near 8060 levels due to selling pressure at higher levels. We see support at 7650 levels. Sufficient stocks and good sowing reports kept turmeric prices under pressure. At the same time, seasonal demand is low, that’s why turmeric prices are expected to remain range bound in near term. Sowing is expected to be good this season due to higher prices realized by the farmers last year. Currently, reports of good sowing progress in Telangana, Karnataka and Maharashtra is keeping prices in range as export demand is also improving. Sowing is completed in 70-80% area in Nizamabad, Telangana. Turmeric prices stayed flat at benchmark market of Nizamabad, Duggirala, Erode and Nanded while firm tone was observed in the market of Sangli, Keammudram.
Jeera future (Aug) prices climbed on life time high last week and closed in green for the fifth consecutive week. The prices are improving on expectation of improving domestic consumption and exports demand. The support is seen at 22620 levels while resistance is at 24500 levels. Currently, prices were higher by 79% y/y on lower availability due to lesser jeera production in 2021/22 compared to previous year. However, profit booking at higher level cannot be denied as most of the buyers may stay away after a sharp rise in its prices. As per govt data, jeera exports in May 2022 down by 28% Y/Y at 14,900 tonnes but improve 39% m/m while exports in first 5-months of 2022 down by 48% Y/Y to 68,868 compared to 1.20 lakh tonnes last year.
Dhaniya future (Aug) prices may trade in the range of 11500-12900 supported by persistent demand from the spices industries while the arrivals may limit the gain. The Physical markets witnessed lacklustre demand as big buyers were seen reluctant to continue their buying at higher level. As per the market sources, the stocks of imported coriander are now a low the demand 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 80% 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 were down throughout the week amid an uptick in the U.S. dollar and fears over aggressive rate hike policy by the major central banks to tame inflationary pressures dented the bullion’s appeal. Prices dropped to their lowest level in more than a year at $ 1680.25. The dollar rose 0.2% against its rivals, making greenback-priced bullion more expensive for buyers holding other currencies. Gold is in a downtrend and the rallies that are set in are short-lived because gold is being pressured by the fact that inflationary expectations are coming down. The European Central Bank joined global peers in a fight against inflation as it raised interest rates by more than expected, despite the euro zone economy suffering from the impact of Russia’s war in Ukraine. The U.S. Federal Reserve policy meeting is due ahead in the week where policymakers are expected to raise interest rates by 75 basis points. Investors are just waiting to hear how hawkish will Fed guidance be on rates. If they still think inflation is a problem or going to still ram through more interest rate hikes, that’s going to be very bearish for gold. Higher interest rates increase the opportunity cost of holding non-yielding bullion. Data on Thursday showed the U.S. initial jobless claims rose to a fresh eight-month high and factory activity for July slumped, the latest indication on the U.S. economy is slowing under the weight of strong interest rates and inflation. Ahead in the week gold may continue to witness selling from higher levels where it may take support near 48900 levels and could face resistance near 51500. Silver may also witness selling and trade in the range of 52000-58000 levels.
Oil prices rose as supply tightness and geopolitical tensions even though weakened demand in the U.S. has cast a shadow on the market. Things are still negative on the economic front, but the market is still in a structural shortfall for prompt oil and that means physical buyers will be there to support tops knowing the uncertainty of what lies ahead on the geopolitical front. Fed officials have indicated that the central bank would likely raise the rate by 75 basis points at its Jult 26-27 meeting. While 75 basis points are in the cards, guidance will be important and any softening in the rate hike outlook would be great for global growth. Demand in India for gasoline and distillate fuels rose to record highs in June, despite higher prices, with total refined product consumption running at 18% more than a year ago and Indian refineries operating near their busiest levels ever. In contrast, signs of strong demand in Asia propped up the Brent benchmark, putting it on course for its first weekly gain in six weeks. Ahead in the week, crude oil may continue to witness both sides' movement where it may take support near 7350 and could face resistance near 8150. Natural gas prices surged as heat wave boosts air conditioning use to keep cool as brutal heat waves blanketed most of Europe. Power demand hit a record high for the third day in a row. According to NatGasWeather for July 21-27, “Hot high pressure will rule nearly the entire U.S. the next 7-days with highs of the 90s to 100s for very strong national demand besides 80s near the Canadian border. Ahead in the week natural gas may witness huge volatility and the range would be 570-680.
Base metals may trade in range as a few global miners slashed their production outlook while energy crisis in some major production regions in Europe fanned fears of tight supply. Freeport-McMoRan Inc said current copper prices are insufficient to support new mines, which could worsen an already tight supply. Miner Vale SA also slashed its 2022 copper production estimate due to maintenance at some of its sites, and Antofagasta Plc cut its full-year copper output target due to water shortage and a leak in an underground pipeline. Zinc and aluminium also faced supply risks, as Europe, one of the metals' major producing regions, faces soaring energy prices. However, gains will be capped as outlook remained weak amid tepid demand in top consumer China due to COVID-19 restrictions and rising global Inflation is seen triggering a jump in rate hike by central banks, which is looming global recession risk and expected to slow demand of metals. The European Central Bank raised interest rates by more than expected as concerns about runaway inflation trumped worries about growth. Investors' focus now has shifted to U.S. Federal Reserve policy meeting due next week where policymakers are expected to raise interest rates by 75 basis points. Copper may trade in the range 600-650 levels. Aluminum may trade in the range of 200-220 levels. Deteriorating demand and robust supplies have triggered an aluminium price crash and while further losses are possible, but unlikely to be sustained as Alcoa warns up to 20% of world's aluminum-production capacity are unprofitable. Zinc can trade in the range of 255-285 levels. Lead can move in the range of 168-180 levels.
We have seen a very strong rebound in cotton oil seeds cake last week, it recovered from the low of 2500 and closed above 2700 and expected to continue its upward journey up to 2800-2875. Hence, buying at dip should be the good strategy. Cotton counter saw rebound on from lower levels in both ICE and MCX. MCX cotton is no mood to give up its yearly strength as fundamentals are strong and demand is intact on higher levels whereas ICE cotton had a sharp fall in previous weeks. ICE cotton fell more than 37% from its 2022 high of $158 whereas MCX cotton saw comparatively limited fall of around 15% from its yearly high of 52140; overall it is still giving more than 28% return in 2022 so far. Furthermore, North India’s cotton yarn market steadied which is being seen as first indication for better sentiments. The market can get support, if crop damage report adds some concerns for supply. According to traders, there were reports of some crop damage in Maharashtra and Gujarat, but the market is waiting for clear picture of the crop. On strategy part, it is strong commodity and we should buy it on dip for the target of 45000; having support near 43000.
Mentha was the victim of dull spot activity due to ongoing monsoon season and it reflected in futures market too where it saw correction despite the news of low production expectation. Mentha oil has limited downside from the current levels and it can rebound near 960-980 zone with limited upside upto 1040 due to expectation of improvement of buying from pharmaceutical companies.
Guar counter saw a pause after multi weeks fall as speculators tracking a firm trend in the spot market and thin supplies from growing belts mainly led to the rise in guar seed prices. In this week, guar seed and guargum can prolong their northward journey and can touch 5350-5400 and 9700-10000 respectively.
Castor can see limited upside upto 7450-7500, having support near 7100. In the wake of lower international demand, especially from China, exports of castor oil have decreased by almost 10 percent during the first five months of 2022 compared to previous year. With 40 percent share in India’s total exports, China is the biggest buyer of castor oil from India. Due to lesser carryforward stock and overall demands, prices of castor oil seeds are unlikely to sharp fall despite higher prices as compared to last year.
ALUMINIUM MCX (AUG)contract closed at Rs. 211.70 on 21st Jul 2022. The contract made its high of Rs. 217.20 on 23rd Jun’2022 and a low of Rs. 203.10 on 15th Jul’2022. The 18-day Exponential Moving Average of the commodity is currently at Rs 211.33. On the daily chart, the commodity has Relative Strength Index (14-day) value of 45.317.
One can buy near Rs. 209 for a target of Rs. 221 with the stop loss of 203.
LEAD MCX (AUG)contract was closed at Rs. 176.00 on 21st Jul’2022. The contract made its high of Rs. 177.45 on 21st Jul’2022 and a low of Rs. 164.45 on 14th Jul’2022. The 18- day Exponential Moving Average of the commodity is currently at Rs. 173.60. On the daily chart, the commodity has Relative Strength Index (14-day) value of 52.947.
One can buy near Rs. 173 for a target of Rs. 181 with the stop loss of Rs 169.
GUARGUM NCDEX (AUG)contract closed at Rs. 9479.00 on 21st Jul’2022. The contract made its high of Rs. 11083.00 on 15th Jun’2022 and a low of Rs. 9063.00 on 18th Jul’2022. The 18-day Exponential Moving Average of the commodity is currently at Rs. 9784.83. On the daily chart, the commodity has Relative Strength Index (14-day) value of 34.909.
One can buy near Rs. 9400 for a target of Rs. 9900 with the stop loss of Rs. 9150
CRB stuck in a range with some bearish bias on recession fear talk and market ignored the fall in dollar index from higher side. US gold breached $1700, first time after August, 2021. On MCX, it breached the crucial level of 50000; however, depreciation in INR limited the sharp fall. Silver prices slipped continuously for eight weeks and closed near 55000 from the high of 63000. Gold prices fell on Thursday to their lowest in nearly a year, as an elevated U.S. dollar and prospects of more interest rate hikes by major central banks to combat soaring inflation weighed on bullion's appeal. In Base metals, copper saw a pause in sharp fall. Base metals saw a pause in the fall after many week downside pressures. Copper fell from the high of 800 to 600 levels in six week time period. Aluminum saw very sharp bounce from the low of 166 to 178 levels in two weeks on revival in crude prices. Economic growth in top metals consumer China slowed sharply in the second quarter, expanding 0.4% year-on-year and missing expectations, as widespread lockdowns to curb record COVID cases hit industrial activity and consumer spending. Energy counter augmented despite the news of recession. In energy, natural gas saw sharp upside move from the last three weeks. Crude tried to move up but saw some profitbooking in second half of the week. Oil prices fell on Thursday, continuing a trend sparked by growing demand concerns after U.S. government data showed tepid gasoline demand despite tight global supply. Furthermore, U.S. gasoline inventories rose 3.5 million barrels last week, government data showed on Wednesday. Gas on MCX, saw some profitbooking as supply resumed from Nord Stream. European natural gas futures fell to their lowest in three weeks as Russia resumed shipments to Germany, allaying fears of a permanent cut-off due to the war in Ukraine.
In Agri, cotton oil seeds cake saw revival from the low. Despite fall in ICE cotton in last few weeks, MCX cotton managed to trade high on low availability issue. Reports of some demand from the textile industries following reports of damage to the standing crop due to excessive rains in the country lifted cotton prices. Castor seed recovered from its support level near 7200. Gujarat kharif area as on 19-Jul under castor is 11,100 ha Vs 23,900 ha last year. Guar counter saw a pause in fall last week on lower level buying and due to lower stocks and good export demand. It was a good week for spices in which all three saw buying.
As the global economy and financial markets begin to recover from the COVID-19 pandemic, consumers around the world started to face bitter taste of higher prices for goods and services, and inflation has become a worldwide phenomenon and a chief concern for economies. But the escalation of geopolitical tensions due to the Russia-Ukraine war started in February delivered a brutal blow to the global economy, including supply chain and logistics disruptions, elevated inflation and bouts of financial market turbulence. It is the most widely measured by Consumer Price Index. Inflation is also known as the decline of a given currency's purchasing power over time.
The U.S. rate of inflation climbed again in June to 9.1% from January to 7.5% and stayed at a 40-year high. The latest ECB forecasts point to a headline inflation of 8.6% in June this year, a new record high in June just ahead of the European Central Bank’s first rate increase in 11 years—above the central bank’s target—before coming down to 1.8% in 2023 and 2024. Wholesale prices in Japan jumped 9.2% in June from a year earlier after import prices surged at the fastest pace on record due to the sharp drop in the yen, Bank of Japan data showed.
Fundamentally different inflation
The recent acceleration in the rate of inflation appears to be fundamentally different from other inflationary periods that were more closely tied to the regular business cycle. The main drivers of the current inflation are the continuing disruptions in global supply chains by the first corona virus pandemic and secondly Russian invasion on Ukraine.
Hiking interest rate is main tool to battle inflation. Central bankers across the world started monetary tightening by hiking interest rate to tame inflation leads slowing down the economy. Higher borrowing rates force the consumers and businesses to hold off on making any investments, thereby cooling off demand and hopefully holding down prices. The Federal Reserve has already made three rate hikes, the last of them were 0.75 points. This was the largest increase since 1994. By the end of 2022, the rates will be between 3% and 3.5%, according to the Fed’s projections. The European Central Bank raised interest rates for the first time in 11 years on Thursday with a bigger-than-flagged move seen as increasingly likely as policymakers fear losing control of runaway consumer price growth. The U.S. Federal Reserve is widely expected to raise interest rates by 75 basis points at its policy meeting next week. British inflation in June surged to a 40-year peak, bolstering chances of a halfpercentage- point Bank of England rate hike next month.
Consumer Price Index & commodities
The Consumer Price Index incorporates the prices of commodities like crude oil, natural gas, and agricultural commodities. Since 1991, energy-related commodities and broad commodity indexes, such as the S&P GSCI and Bloomberg Commodity Index, consistently exhibited the highest level of correlation with inflation of all commodities. Gold has historically performed well amid high inflation. In years when inflation was higher than 3%, gold’s price increased 14% on average. Further, in the long run, gold has outpaced US inflation and moved closer in pace to money supply, which has significantly increased in recent years.
But this time higher-than-expected inflation is eroding consumer purchasing power as well as demand for commodities. Higher inflation forced the major central banks for aggressive policy tightening that is undermining gold’s appeal while base metals demand and their prices are falling on fear of a looming global recession caused by tightening monitory policy to control the inflation.
Rupee managed to reverse its losses from its record lows below $80.00 after strong intervention from RBI halted the slide in rupee. On top of it domestic equities attracted bit of FIIs flows this week which gave some cushion to rupee as well. However market volatility had increased in the wake of on-going fear of global recession which prompted rally in US Treasuries as safe heaven bid and eventually lifted dollar as well. Going forward, next week FOMC monetary policy outcome will be key to watch. Market consensus remains 75 bps which is largely discounted apparently. We still remain bearish in rupee for the time being as long as USDINR holds 79.56 on spot in an immediate term. While the big buzz happened in ECB monetary policy where ECB raised policy rate by 50 bps for the first time since 2011 to 0.00% against expectations of -0.25%. Further euro rally faded after ECB introduced Transmission Protection Instrument (TPI) - a new bond purchase scheme aimed at helping more indebted euro zone countries and preventing financial fragmentation subject to following the EU fiscal compliance. We will remain bearish in euro in coming days along with pound subject to how Fed’s meeting rolls out.
USD/INR (JUL)contract closed at 79.9325 on 21-July-22. The contract made its high of 80.1375 on 20-July-22 and a low of 79.7850 on 18-July-22 (Weekly Basis). The 21-day Exponential Moving Average of the USD/INR is currently at 79.4654.
On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 68.65.One can buy at 79.70 for the target of 80.70 with the stop loss of 79.20.
GBP/INR (JUL) contract closed at 95.5300 on 21-July-22. The contract made its high of 96.3050 on 20-July-22 and a low of 94.7675 on 18-July-22 (Weekly Basis). The 21-day Exponential Moving Average of the GBP/INR is currently at 95.5737.
On the daily chart, GBP/INR has Relative Strength Index (14-day) value of 47.94. One can sell at 95.80 for a target of 94.80 with the stop loss of 96.30.
| 22th JUL | Japan’s inflation stays above central bank target for 3rd month |
| 22th JUL | British retail sales fall for second consecutive month |
| 21th JUL | ECB raises rates by 50-Bps for first time in more than a decade |
| 21th JUL | RBI is prepared to sell a 6th of its Forex reserves to defend rupee |
| 20th JUL | UK annualized inflation accelerates by 9.4% in June vs. 9.3% expected |
| 20th JUL | China leaves rates unchanged, as expected |
| 19th JUL | IMF warns of sharp European economic hit from Russian gas embargo |
| 19th JUL | ECB to discuss ending negative rates with 50 basis point move |
EUR/INR (JUL) contract closed at 81.4875 on 21-July-22. The contract made its high of 82.2275 on 20-July-22 and a low of 80.6525 on 18-July-22 (Weekly Basis). The 21-day Exponential Moving Average of the EUR/INR is currently at 81.53.03.
On the daily chart, EUR/INR has Relative Strength Index (14-day) value of 45.24. One can sell at 81.50 for a target of 80.50 with the stop loss of 82.00.
JPY/INR (JUL) contract closed at 57.7000 on 21-July-22. The contract made its high of 58.2500 on 19- July-22 and a low of 57.6300 on 21-July-22 (Weekly Basis). The 21-day Exponential Moving Average of the JPY/INR is currently at 58.2024.
On the daily chart, JPY/INR has Relative Strength Index (14-day) value of 46.03. One can buy at 57.70 for a target of 58.70 with the stop loss of 57.20.
India’s largest wine maker Sula Vineyards has filed papers with market regulator Securities and Exchange Board of India (Sebi) to raise capital through an initial public offering ( IPO). Sula is headquartered in Nashik, 180 Km northeast of Mumbai, and has two manufacturing units, one located in Nashik and the other one in Bengaluru. As of January, it had a production capacity of over 13 million litres, of which 11 million litres is housed in Nashik and 2 million litres is housed in Karnataka. The firm has a dominant market share in the domestic wine industry, driven by a varied vast portfolio of wine brands across different price categories and an expansive distribution network. It produces about 56 domestic labels under 13 brands which are classified into Elite, Premium, Economy and Popular segments based on their price, composition, taste and other properties such as alcohol content. Going forward under the premiumisation strategy, increasing contribution from the Elite and Premium segments is expected to support the company’s revenues and margins over the longer term, according to a January 2022 report by rating agency ICRA. In addition to producing and selling wines, the company derives revenue from the hospitality segment through its two wine resorts, Beyond Sula and the Source at Sula. Further, it has dealership agreements with international brands such as Le Grand Noir, Hardys, Beluga Vodka etc., to distribute imported wine and other core spirits in India. This enables the company to expand its sales distribution network by providing a package of Sula wines, other international branded wines and core spirits to its distributors, the ICRA report added. The company which derives more than 50 per cent of its revenues from the wine segment from Maharshtra and Karnataka, operates in a highly regulated industry which has state-specific policies and has also seen the entry of international players.
Packaging solutions provider Mitsu Chem Plast has filed draft papers with Sebi to raise up to Rs 125 crore through a follow-on public offer (FPO). The further issue comprises "equity shares of face value of Rs 10 each aggregating up to Rs 12,500 lakh,", the draft red herring prospectus (DRHP) filed with Securities and Exchange Board of India (Sebi) showed. Proceeds from the issue will be used to repay debt, fund the working capital requirements of the company and for general corporate purposes. The Maharashtra-based company posted a profit after tax of Rs 11.5 crore and a total income of Rs 259 crore for the fiscal ended March 31, 2022. Mitsu Chem Plast is a packaging solutions provider engaged in the business of manufacturing polymer-based molded products mainly used for industrial packaging for industries like chemicals, agrochemicals, pharmaceuticals, lubricants, food and edible oil. It has three manufacturing units in Maharashtra with a total installed capacity of 22,857 MTPA (Metric Tonne Per Annum). IDBI Capital Markets & Securities Ltd is the sole book running lead manager to the issue.
Sai Silks (Kalamandir), a Hyderabad-based apparel retailer, is planning to soon file draft documents with the Securities and Exchange Board of India (Sebi) for an initial public offering. Sai Silks derives most of its revenue from women’s garments, contributing around 80% of sales. In February 2013, the company attempted to enter the primary market by providing a safety net scheme for retail investors but had to withdraw from the IPO. The company's total operating income increased by 13%, from Rs. 1,045 crores in FY19 to Rs. 1,177 crores in FY20. It declined to Rs 679 crore in FY21 due to the Covid-led lockdown. The company posted an operating income of Rs. 450 crores in the first half of FY22 with a gross profit of around Rs. 49 crores, as per CARE Ratings. The company is expecting a steady growth in sales from all its stores in the second half of FY22, backed by festival and wedding season during the period, as per CARE Ratings.
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