In the weak gone by, global stock markets tried to remain calm on the back of a recovery in US, as fall in global crude oil prices and calmness in US treasury yields provide some breathing space for investors. The triple whammy of spiking dollar, US bond yields and crude is slowly easing, paving the way for a recovery in markets. Crude oil prices stabilised amid indications of reduced demand and easing worries about global economic slowdown. Recent data from Euro Zone showed that inflation fell to its lowest level since October 2021. It tumbled to 4.3% for the month of September. Even Euro zone manufacturing activity continued to decline sharply in September. Another data showed that German exports fell more than expected on the month in August, dropping 1.2% from the previous month, as weak global demand hurt the country's exports. August was the second month in a row to see a decline in exports, following a downward-revised 1.9% dip in July. Japan's economy has recovered and is running near its full capacity in the second quarter, data from the central bank showed, adding to growing signs that conditions for phasing out its massive monetary stimulus are falling into place.
Back at home, domestic market continued to remain volatile amid mixed global cues. Despite some positive macroeconomic data, aggressive selling by foreign portfolio investors continues to exert pressure on the market. Going forward, market is expected that market will continue to maintain a narrow range ahead of the upcoming result season. The Reserve Bank of India (RBI) on Friday left the repo rate unchanged at 6.50% following the conclusion of its three-day monetary policy meeting. This is the fourth consecutive time the RBI has left policy rates untouched. The RBI’s decision to pause along with retaining the withdrawal of accommodation stance was in line with expectations. It's worth noting that India's services sector strengthened further in September, witnessing strongest output in 13 years. India's S&P Global's services PMI stood at 61 in September, up from 60.1 in August. The reading was above the 50-mark separating growth from contraction for a 26th consecutive month. Surging bond yields have left their mark on the stock market across the globe in the recent weeks, and the 10-Year US Treasury yield has become arguably the most important thing for investors to watch. Investors are trying to understand just how much higher the key government bond yield can go from here.
On the commodity market front, for the third consecutive week, the CRB index showed weakness. The Dollar Index, on the other hand, continued its remarkable 12-week streak of gains, which is unprecedented in recent history. Crude oil prices breached 7000 mark on MCX, the steepest weekly decline since March on growing worries that higher-for-longer interest rates could stoke a global economic slowdown and curb fuel demand. Crude oil prices are likely to trade in a range of 6650-7200 levels whereas natural gas futures can eye 300 levels in short to mid-term. We can expect more action in base metals as China will rejoin after a week long holiday. Gold and silver can trade in a range of 55800-59000 and 65500-69000 levels respectively. Inflation Rate of Mexico, China and Germany, New Yuan Loans of China, PPI, Core Inflation rate, Inflation Rate, Michigan Consumer Sentiments Prel and FOMC minutes of US, GDP of UK, etc are few high importance data, which will give important direction to the commodities prices.
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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.
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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 a strong balance sheet and timely price hikes and a revival in Lloyd's margins would be key to earnings upside. Company’s consistent focus on expanding its footprint in smaller towns and the rural market—a mission that management is passionate about—places it in a favourable position for quicker growth once the macroeconomic environmentimproves. It continues to invest in R&D activities to remain competitive in an environment where disruption is becoming the new normal. Thus, it is expected that the stock will see a price target of Rs.1585 in 8 to 10 months time frame on a three year average P/BV of 13.23x and FY24 (E) BVPS of Rs.119.80.
The company has expanded its operation worldwide and continues to expand further. The management of the company said that the quarter witnessed strong performance by its Pain Management, BoroPlus and Healthcare range which grew in double digits, with Dermicool posting a high single digit growth. Backed by its resilient and competitive performance and aided by softening of input cost, the company would deliver healthy expansion of gross margin and EBIDTA and a robust profit growth. Moreover, it also plans to focus on brand building and providing superior value to customers. Thus, it is expected that the stock will see a price target of Rs.624 in 8 to 10 months time frame on 3 years average P/Bv of 10.39x and FY24 BVPS of Rs.60.04.
The stock closed at Rs.137.55 on 06th October, 2023. It made a 52-week low of Rs.74.55 on 11th October, 2022 and a 52-week high of Rs.140.20 on 03rd July, 2023. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs110.
In the recent past, the stock has given a sharp breakout above its key resistance level of 115 and risen sharply thereon to mark its 52 week high of 140.20 in the month of July 2023. Since then, pullback has been witnessed in prices on the back of profit booking as stock has retested its previous breakout level. After a series of consolidation phase, the stock has once again caught up a momentum above its descending trend line of downward sloping channel. Technically a fresh breakout has been observed in stock last week, above the Symmetrical Triangle pattern visible on weekly interval. Therefore, one can buy the stock in the range of 135-137 levels for the upside target of 158- 160 levels with SL below 122 levels.
The stock closed at Rs.2535.50 on 06th October, 2023. It made a 52-week low at Rs.1676 on 09th November, 2022 and a 52-week high of Rs.2745.10 on 12th July, 2023. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs.2283.
After making its 52 week high of 2745 in month of July 2023,the stock witnessed a series of lower high pattern and seen a pull back into the prices to tumble down towards 2350 levels in the previous few weeks. At the current juncture, the stock has taken a support around its 200 days exponential moving average on daily interval, and once again shown a sharp recovery from lower levels as prices seen rising above its long term downward sloping channel along with rise in volumes as well. The price momentum can be observed along with positive divergences on secondary oscillators which suggests for next upswing into the prices. Therefore, one can buy the stock in the range of 2500- 2535 levels for the upside target of 2800-2850 levels with SL below 2300 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 market witnessed a relatively subdued performance in the past week.TheNifty closed flat while the Banknifty experienced a marginal loss of 0.5%.This suggests a cautious sentiment among investors, possibly driven by a combination of global uncertainties and domestic factors. Among the sectors, healthcare, energy and pharmaceuticals experienced declines, reflecting a shift away from defensive stocks. On the flip side, Information Technology (IT), Media and Realty sectors showed noteworthy gains. In the Nifty option market, the highest call open interest was observed at 20,000 and 19,700 strikes, indicating potential resistance levels. Conversely, the highest put open interest was recorded at 19,600 and 19,500 strikes, suggesting that these levels may act as a significant support zones. For the Banknifty,the highest call open interest was concentrated at strikes 44,500 and 45,000. Meanwhile,the highest put open interest was observed at strikes 44,300 and 44,000. In terms of Implied Volatility (IV), call options for Nifty settled at 10.04%, while put options concluded at 10.93%. The Nifty VIX, which serves as a gauge of market volatility, closed the week at 10.94%. The Put-Call Ratio Open Interest(PCR OI) stood at 1.31forthe week. The marketis currently at a critical juncture with a delicate balance between support and resistance levels. Traders and investors are advised to closely monitor the mentioned strike levels in both Nifty and Banknifty options, as they are likely to play a pivotal role in shaping market movements. In upcoming week, Nifty is likely to trade in the range of 19,800 and 19,400 whereas either side breakout can give further momentum.However, uncertainties in the global economic landscape will continue to influence market sentiment.
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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 are expected to trade higher on emerging buying in local market against the limited availability of quality crop in the market. Shrinking arrivals and weaker production outlook will drive the prices up. Arrivals have dropped significantly in recent weeks due to off season and likely to remain lower in coming weeks as well that will keep supply tighter. Turmeric ending stocks are expected to drop by 20% Y-o-Y to 2.91 lakh tonnes in year 2023-24 due to lower production. Apart from that prices will track the crop progress as crop is at vegetative and rhizome development stage. Crop condition is satisfactory and it will be ready for harvest during January to March. Sowing for marketing year 2024-24 has completed and total area is estimated to be down by 11% Y-o-Y at 2.87 lakh Ha. Export of turmeric rose significantly in year 2023 with rising demand from the Bangladesh, Morocco, UAE, China and USA as these five countries accounted for about 54% of total turmeric export from India where Bangladesh has been the top buyer of Indian turmeric. India exported about 13.8 thousand tonnes in July’23 as compared to 12.8 thousand tonnes of previous year. Turmeric prices are expected to find support near 12300 whereas resistance is seen at 15500 levels.
Jeera futures are likely to trade mixed to higher on shrinking supplies in domestic market. Supplies has been tighter due to lower production in year 2023 and stockists are reluctant active again as fresh arrivals are still 5 months away. Sowing of new crop is expected to start from Oct that will drive the prices. Area under jeera is estimated to increase due to better price realization in year 2023. However, drier weather condition in in Oct is likely to keep soil moisture down that will impact the sowing activities adversely. Arrivals have been reported significantly down so far. About 181 thousand tonnes of jeera arrived at major APMC mandies across India during the time period of Jan’23-Sep’23 as compared to 205 thousand tonnes of previous year lower by 12% Y-o-Y. However, bleak export will be the major concerns for exporters that will cap the major gains in prices. Exports of jeera remained down in Jul’23 as India exported about 7.1 thousand tonnes of jeera in July’23 as compared to 19.4 thousand tonnes of previous year. Jeera Prices are likely to trade in range of 57000-62500 levels.
Dhaniya prices are likely to trade sideways to higher on increased export demand. Dhaniya export rose significantly in year 2023 due to supply concerns on other producing countries. Shrinking global supplies boosted overall export from India that helped domestic prices to move up. India exported about 9.1 thousand tonnes of dhaniya in July’23 as compared to 2.6 thousand tonnes of previous year. China, Malaysia and UAE have been the major buyers of Indian coriander in year 2023. India has exported about 55.8 thousand tonnes during Apr’23-Jul’23 against the 11.4 thousand tonnes of previous year. Going forward coriander prices are likely to track the sowing progress as sowing for new season is likely to start from the Oct onwards. Acreages under coriander are estimated to be down in wake of higher stocks in the market.Dhaniya prices are likely to trade in range of 6600-7400.
Gold prices experienced a significant decline over the course of the week, primarily due to concerns stemming from U.S. labor market data, which indicated tight employment conditions. Investors grew apprehensive about the Fed's inclination to maintain higher interest rates for an extended period. The overarching narrative of prolonged rate hikes has prompted people to divest from gold, given the increased opportunity cost of holding the precious metal. Since its ascent above the pivotal $2,000-per-ounce threshold in early May, gold prices have plummeted by nearly 12%, driven by the Fed's hawkish stance on rates, which have propelled bond yields to their loftiest levels in 16 years. While there was a modest increase in the number of Americans filing new claims for unemployment benefits last week, layoffs decreased in September, underscoring persistently tight labor market conditions. Providing some relief for gold, the dollar index declined for a second consecutive session, rendering bullion more affordable for holders of other currencies. Federal Reserve officials, in a Thursday announcement, expressed minimal concern about the recent uptick in U.S. Treasury yields potentially jeopardizing a "soft landing" for the economy. Notably, the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, disclosed that its holdings had reached their lowest levels since August 2019 on Thursday. COMEX Gold prices are currently near a support zone, with a bearish trend. Selling near resistance at $1880 is advisable. Gold's support is at $1790. Silver is also expected to have a bearish bias, with a trading range of $19.500-$21.800. Gold may trade between 55800-58000, while Silver could range from 63500-69800 in the upcoming week.
Crude oil prices experienced a substantial decline throughout the week, primarily due to mounting concerns about weakened fuel demand, which overshadowed the OPEC+ decision to maintain oil output cuts, thereby sustaining a tight supply environment. Both the global benchmark Brent crude futures and U.S. West Texas Intermediate crude futures plummeted by approximately $10 per barrel in just under 10 days, following their near approach to the $100 mark in late September. Remarkably, OPEC+ opted to retain its existing oil output policy, with Saudi Arabia committing to uphold a voluntary reduction of 1 million barrels per day (bpd) until the conclusion of 2023. Simultaneously, Russia committed to maintaining a 300,000 bpd voluntary export curb until the end of December. This collective action was intended to uphold market stability. Notably, the close-to-close volatility in Brent crude was the highest since May, while West Texas Intermediate crude saw its highest volatility since June. Adding to the downward pressure on oil prices, government data revealed a sharp drop in U.S. gasoline demand. Additionally, U.S. heating oil futures experienced a decline of more than 5%, driven by expectations that Russia might soon lift its fuel export ban introduced the previous month, thereby alleviating supply disruptions to a greater extent than initially anticipated. Ahead in the week prices, may witness a range bound movement and the possible trading range would be 6600-7400. Natural gas prices surged to nine-month highs due to a smaller-than-expected storage increase, driven by increased demand for indoor heating and cooling. This $3 level was previously seen in March and August. Ahead in the week, prices may continue to trade higher and the possible trading range would be 230-290.
Base metals may trade with bearish bias as persistent worries about demand in China, uncertainty about interest rates and global growth and the U.S. dollar's strength continues to cap global demand for industrial metals. In the short term, industrial demand remains weak from China, where the data is not indicating that its economy is pushing ahead in any meaningful way. China's property crisis is seen as one of the biggest stumbling blocks to a sustainable economic recovery, with rising risks of default among private developers threatening to imperil the country's financial and economic stability. Copper may trade in the range of 680-715 levels. Stocks of copper in LME registered warehouses at 168,600 tonnes have climbed more than 200% since the middle of July and are at their highest since May last year. Zinc can trade in the range of 212-235 levels. China’s ongoing property crisis has weakened the prospects for demand while projections of lower production in Europe and Australia are also supporting the uptrend. Lead can move in the range of 182-192 levels. Battery metal lead has come under pressure from higher LME stocks climbed to 83,600 tonnes, the highest in more than two years, having surged by 55% over the past three weeks. Aluminium can trade in the range of 195-215 levels. Steel long (Oct) is likely to trade in the range of 44500-47300 levels and sell on rise should be strategy. Global crude steel production increased by 2.2 per cent in August 2023 to 152.6 million tonnes, against 149.5 million tonnes in the corresponding period a year ago. India reported a 17.4 per cent surge in production at 11.9 million tonnes .
Cotton prices are expected to trade down on improved supply prospects. With commencement of new crop season in Oct’23, arrivals will start to pick up that will put pressure on prices. However, downfall is likely to be limited in the wake of weaker production outlook of cotton. Cotton Production is expected to down by 8%-10% as compared to last year due to fall in area under cotton in year 2023. CCI is likely to start their procurement operation in Oct that will prompt farmers to hold their produce in hope to get better price realization on government purchase. The Centre has fixed cotton MSP at Rs 6,620 per quintal for medium staple variety and Rs 7,020 per quintal for long staple variety. Cotton MCX Nov prices are likely to trade in range of 59100-62000. Similarly, Kapas Apr’24 futures are likely to trade in range of 1600-1700.
Cotton seed oil cake NCDEX Dec futures are likely to trade higher on improved seasonal demand. Weaker production outlook and tighter carry forward stocks will support firmness in prices. Cocud prices are likely to trade in range of 2570- 2950 levels.
Guar seed Nov futures are expected to trade on positive bias on emerging demand at physical market. Overall production is estimated to be down by 10- 12% Y-o-Y that will prompt stockists to buy on dips. Moreover, seasonal export demand of guar gum and meal is also expected to improve in coming weeks that will support the market sentiments. Guar seed prices are likely to honor the support 5400 whereas 6000 will be the resistance. Gum prices are likely to trade in range of 10500-12500 levels.
Mentha oil prices are expected to move up on increased demand at physical market. Supplies have started falling down that will support the firmness in prices. However, subdued export of menthol is still a major concern for industry as export slumped remarkably in recent months. India exported about 1.5 thousand tonnes of menthol is July’23 as compared to 1.9 thousand tonnes of previous year. Overall export of menthol was reported at 4.2 thousand tonnes during the period of Apr-Jul’23 against the 5.2 thousand tonnes of previous year. Mentha oil Oct prices are likely to honor the support of 900 and likely to move towards the resistance of 995.
Castor seed prices are likely to trade mixed to down on improved supply condition. Sowing activities completed and crop is in satisfactory condition. Favorable weather condition in Gujarat will facilitate the crop growth and weigh on market sentiments. Castor seedNov prices are likely to trade in range of 5900-6600 levels.
It closed at Rs. 66952.00 on 05th Oct 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 69799.75. On the daily chart, the commodity has Relative Strength Index (14-day) value of 14.580. Based on both indicators, it is giving a sell signal.
One can sell near Rs. 68000 for a target of Rs. 66000 with the stop loss of 69000.
It closed at Rs. 265.80 on 05th Oct 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs. 250.94. On the daily chart, the commodity has Relative Strength Index (14-day) value of 77.930. Based on both indicators, it is giving a buy signal.
One can buy near Rs. 255 for a target of Rs. 285 with the stop loss of 240.
It closed at Rs. 11514.00 on 05th Oct 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs. 11854.19. On the daily chart, the commodity has Relative Strength Index (14-day) value of 36.845. Based on both indicators, it is giving a buy signal.
One can buy near Rs. 11400 for a target of Rs. 12000 with the stop loss of 10900.
NOTE: *M.High / M.Low stands for Monthly High / Monthly Low
For the third consecutive week, the CRB (Commodity Research Bureau) index showed weakness. The Dollar Index, on the other hand, continued its remarkable 12-week streak of gains, which is unprecedented in recent history. The yield on the US 10-year Treasury note came close to reaching 5% but closed around 4.7%. This surge in the dollar index led to a significant drop in the prices of gold and silver. Gold hit seven-month low. Federal Reserve officials on Thursday indicated little concern that the recent rise in U.S. Treasury yields could imperil a “soft landing” for the economy, and said it could actually help the central bank in its fight against inflation. In the energy market, natural gas futures made gradual gains, while crude oil prices retraced their previous gains due to an increase in gasoline inventories. Crude oil prices breached 7000 mark on MCX, steepest weekly decline since March on growing worries that higher-for-longer interest rates could stoke a global economic slowdown and curb fuel demand. U.S. Government data this week showed a sharp decline in U.S. gasoline demand, with economic data showing the U.S. services sector had slowed. OPEC made no changes to the group's oil output policy, and Saudi Arabia said it would maintain a voluntary cut of 1 million barrels per day (bpd) until the end of 2023, while Russia would keep a 300,000 bpd voluntary export curb until the end of December. Base metals also closed on a weak note, with copper experiencing a sharp decline for the third consecutive week and aluminum witnessing profit-taking after three weeks of gains. Copper prices eased on Friday, on track for its steepest weekly decline in nearly 11 months, as a firm dollar and persistent worries about demand in China and uncertainty about interest rates and global growth. The Chinese market is shut for public holidays until Oct. 8, so demand was tepid, while supply pressure is climbing. Stocks of copper in LME registered warehouses at 168,600 tonnes have climbed more than 200% since the middle of July and are at their highest since May last year. LME Zinc inventories climbed to 83,600 tons, the highest in more than two years, having surged by 55% over the past three weeks.
In the agricultural sector, castor seed prices declined for the second week in a row. Cotton oilseed cake futures, on the flip side, saw a second consecutive week of increases, while cotton candy futures prices continued to weaken. The guar market saw a much-needed rebound after a five-week decline. Among spices, jeera (cumin) prices fell for the fourth consecutive week, while dhaniya (coriander) and turmeric prices increased from their lower levels. Mentha (mint) futures attempted to recover from their recent lows.
The property sector is not just a very important sector of any country’s economy. It is the economic engine of the world and is responsible for driving economic growth. In China, property market holds significant sway over the country's economy, impacting various sectors, including the metal industry as China is the world's largest consumer of industrial metals, and the property sector accounts for a significant share of demand, particularly for copper, steel, and aluminum. Property sales flourish and construction projects increase boosting the demand for metals. Conversely, a slowdown in property sales lead to reduced construction activity, dampen the demand for metals.
Evergrande's massive debt crisis
In the recent years, the Chinese property sector has been struggling, with a slowdown in new construction and a decline in property sales with deepening falls in new home prices, property investment and sales, despite a recent flurry of support measures. This is adding pressure to the world's second-largest economy. New home prices fell at the fastest pace in 10 months in August, down 0.3% month-on-month after a 0.2% decline in July, according to National Bureau of Statistics (NBS) data. For August, property investment fell for the 18th straight month, down 19.1% year-on-year from a 17.8% slump the previous month, separate data showed. Home sales are down for the 26th consecutive month, according to the data.
This has led to a weakening in demand for industrial metals. China Evergrande Group is struggling under heavy debts accumulated over a number of years, while a sales slump has hit its cash position following a government crackdown on the sector. Beijing views the company's massive debt as a threat to the nation's financial stability and overall economic well-being.
Measures to support the sector have not yet worked
Although, there are some signs that the Chinese property sector may be stabilizing but recovery remains subdued due to high debt levels. The Chinese government has introduced a number of measures to support the sector, including tax breaks and subsidies for developers. However, High inflation levels, tight monetary policy and worries over credit constraints following the recent banking crisis in the US and Europe also dampened consumer demand.
Impact on Metals Demand
China property market is one of the largest consumers for metals per year, consuming up to 286 million metric tonnes of just reinforcement steel bars per year. The decline in the Chinese real estate means that less demand for metals are needed, which in turns affects the prices of the various metals used for construction of houses, primarily steel.
While China’s embattled property sector is still struggling to recover, the Goldman Sach noted that China’s green economy has shown “significant strength” so far this year, resulting in a demand surge for metals related to the green transition, such as copper. According to a report by Goldman Sachs, copper demand in China is expected to grow by 2.5% in 2023. However, the decrease in steel consumption could also serve as a warning sign for copper. Copper prices have fallen more than 16% since its January high this year due to decline in demand for copper from the Chinese manufacturing & property sector.
Overall, the outlook for industrial metals demand in the Chinese property sector is cautiously optimistic. If the sector does recover, it would boost industrial metals demand.
The Dollar Index has recently found resistance near its fresh 10-month high of 107.35, although it had become overbought at that level. This retracement was triggered by a drop in Treasury yields, influenced by the disappointingADP data, which reported private job growth of only 89,000 in September—well below the 153,000 anticipated by analysts and the lowest since January 2021. Despite this setback, other economic indicators, such as the latest ISM Services PMI, factory orders, and initial jobless claims data, have indicated a resilient economy. Nonetheless,the DollarIndex remains in an overall upward trend and is comfortably trading above its previous breakout level of 105.80, which now acts as a strong support level for upcoming sessions. Given the current trading setup, the Dollar Index is currently in a profit booking phase, suggesting a correction towards its support zone, coinciding with the mean level at this time. If the index manages to hold above this support zone, it could potentially resume its upward rally and may encounter resistance around the 107.50 level in the coming weeks. In the case ofthe Dollar-Rupee pair,it has been consolidating within a narrow range of 83.10 to 83.40 for the past few sessions, despite the Dollar Index's sharp upward movement followed by profit booking. We anticipate that USD/INR will likely remain within this range for the near future.As long as it maintains levels above 83,itis difficult to establish a bearish outlook. On the upside, the Reserve Bank of India (RBI) has been vigilantin preventing USD/INR from crossing the 83.50 mark easily. Given the current trading setup, the current levels appear conducive for a potential resumption of its rally. If there is a dip towards the 83.00 mark, it could present an opportunity for a limited upside move toward the record high levels.
USDINR (OCT)pair is currently in an Mild Bullish trend as trading above its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 83.17. However, the pair is in Neutral territory with a Relative Strength Index (14-day) value of 58.41 on the daily chart. Major support is seen around 82.8 levels, while resistance is expected near 83.5 levels.
One can buy near 83 for the target of 83.5 with the stop loss of 82.79
GBPINR (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 102.39. However, the pair is in Borderline territory with a Relative Strength Index (14- day) value of 40 on the daily chart. Major support is seen around 100.4 levels, while resistance is expected near 102.3 levels.
One can sell near 102 for the target of 101 with the stop loss of 102.5
EURINR (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 88.52. However, the pair is in Borderline territory with a Relative Strength Index (14- day) value of 39.4 on the daily chart. Major support is seen around 87 levels, while resistance is expected near 88.8 levels.
One can buy near 87.8 for the target of 88.8 with the stop loss of 87.3
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 56.38. However, the pair is in Neutral territory with a Relative Strength Index (14-day) value of 42.47 on the daily chart. Major support is seen around 55.4 levels, while resistance is expected near 57 levels.
One can sell near 56.4 for the target of 55.4 with the stop loss of 56.9
Shares of Valiant Laboratories on October 6 listed at a premium of 15.8 percent overits issue price of Rs 140. The stock debuted at Rs 162.15 on the NSE and Rs 161 on the BSE. The listing was in-line with analyst expectations and the decent subscription numbers seen by the IPO. The Rs 152 crore-issue was subscribed 29.76 times with investors buying 22.68 crore shares against the offer size of 76.23 lakh. High net worth individuals bought 73.64 times their quota of shares and retail investors 16.06 times the shares allotted to them. Valiant Laboratories is an active pharmaceutical ingredient and bulk drug manufacturing company with focus on manufacturing of paracetamol. It will make use of the IPO proceeds for setting up a speciality chemicals manufacturing facility in Gujarat owned by subsidiary ValiantAdvanced Sciences (VASPL). The subsidiary's working capitalrequirements will also be funded from the IPO funds. On the financialfront,the company witnessed a growth of 5.5 percent as its net profitrose to Rs 29 crore forthe year ended March 2023 from Rs 27.5 crore in the year-ago period.The revenue from operations grew by 14.5 percentto Rs 333.9 crore from Rs 291.5 crore during the same period.
Newjaisa Technologies shares made a strong debut, listing at a 51% premium over the IPO price on October 5. The stock listed at Rs 71 against the issue price of Rs 47 on NSE SME. Newjaisa Tech has raised Rs 39.93 crore through its IPO, which was open for subscription from September 25th to September 27th. The price band for the issue was fixed at Rs 44-47. This was an entirely fresh issue of 84.96 lakh shares, and there was no offer-for-sale component. The promoters of the company are Vishesh Handa and Mukunda Raghavendra. The public issue was subscribed 6.85 times. Retail investors subscribed 6.54 times, qualified institutional buyers (QIB) 1.02 times and non-institutional investors (NII) 15.34 times. The book-running lead manager for the issue was Indorient Financial Services Ltd, Bigshare Services Pvt Ltd was the registrar and the market maker was Nikunj Stock Brokers. Ahead of the IPO, Newjaisa Technologies raised Rs 11.36 crore from anchor investors. Negen Undiscovered Value Fund, Augmenta Value Trust - Series 1, Saint Capital Fund, India Equity Fund 1 and Neomile Growth Fund - Series 1 took part in the anchor book.
Home-grown semiconductor chip maker Polymatech Electronics Ltd has filed draft papers with the Securities Exchange Board of India to raise Rs 750 crore through an initial public offering which will purely be a fresh issue. The company plans to use Rs 565.73 crore of the IPO proceeds to buy new machinery for its existing facility in Tamil Nadu. Khambatta Securities is the sole book-running lead manager to the issue. Polymatech started production in 2019, using advanced European and Japanese technologies to produce high-quality chips meeting global standards, the documents said. The firm typically manufactures products in two categories opto -semiconductor chips and luminaries. It has a unit in Tamil Nadu’s Oragadam, with a capacity of 300 MPA chips, offering efficiency and economies of scale. The company is also working on setting up a second plant in Krishnagiri again in Tamil Nadu, acquired as a "Built to Suit" (BTS) property through a sale deed dated August 22, 2023. In FY23, the company’s revenue was at Rs 649.02 crore, up from Rs 125.87 crore in the previous year. Net profit was at Rs 167.77 crore against Rs 34.27 crore in the previous year. The EBITDA margin for the year was 29 percent against 33.43 percent in the previous year.
Asirvad Micro Finance, the subsidiary of listed NBFC Manappuram Finance has filed a draft red herring prospectus (DRHP) with market regulator Sebi to raise Rs 1,500 crore via an initial public offer (IPO). In February 2015, Manappuram Finance, the Kerala-based gold loan provider acquired a significant majority stake in the Chennai-based microfinance firm as part of a diversification strategy. The proceeds from the IPO, meant to be purely a fresh issue with no OFS component, will be used to augment the capital base of the firm to meet future business requirements. In consultation with its bankers, the firm may consider a further issue of equity shares on a private placement for cash consideration aggregating upto Rs 300 crore. In case the placement is completed, the fresh issue size will be reduced, the DRHP said. JM Financial Limited, Kotak Mahindra Capital, Nomura and SBI Capital are the bookrunning lead managers for the IPO. In November 2022, private equity firm Warburg Pincus-backed Fusion Microfinance listed at a two percent discount to its IPO price on market debut, but the stock has rallied since then.
Vibhor Steel Tubes, the two-decade-old manufacturer of steel pipes and tube products, has filed preliminary papers with the capital markets regulator Sebi to raise Rs 66.47 crore via an initial public offering (IPO). The offer consists of only a fresh issue by the company and there is no offer-for-sale component. The company will utilise net fresh issue proceeds mainly for working capital requirements of Rs 55 crore, and the remaining for general corporate purposes. The Haryana-based company manufactures and exports steel pipes and tubes to various heavy engineering industries in India, which are used for frames and shafts, bicycle frames, furniture, shockers, and structural & engineering purposes. Meanwhile, it has renewed its agreement with Jindal Pipes with effect from April 1, 2023, to manufacture & supply the finished goods under the brand name Jindal Star, to Jindal Pipes and its approved customers based on monthly card rates. The tenure of this agreement is for six years and can be further renewed if required by both parties. Vibhor Steel operates its business through two manufacturing units - one is in Raigad, Maharashtra, through which 100 percent of export sales take place, and the second unit is located in Mahabubnagar district, Telangana.
Chandigarh-based Indo Farm Equipment has filed draft papers with the capital market regulator Sebi for raising funds via a public issue of 1.4 crore equity shares. The initial public offering comprises a fresh issue of 1.05 crore equity shares by the company, and an offer-for-sale of 35 lakh shares by the promoter Ranbir Singh Khadwali, as per the preliminary papers filed with Sebi on September 28. With a facility in Baddi, Himachal Pradesh, its total sales for the last three financial years comprised 90 percent domestic sales and 10 percent export sales. The financial performance remained better in the past financial years with the profit rising sharply from Rs 137.2 crore in FY22 to Rs 155.64 crore in the year ended March FY23, and revenue from operations increased to Rs 370.76 crore, from Rs 352.08 crore across the same periods.
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Samco Mutual Fund has filed a draft for Samco Dynamic Asset Allocation Fund. Samco Dynamic Asset Allocation Fund will be an open-ended dynamic asset allocation fund. According to the scheme information document, the investment objective of the scheme is to generate income/long-term capital appreciation by investing in equity, equity derivatives, fixed income instruments and foreign securities. The allocation between equity instruments and fixed income will be managed dynamically so as to provide investors with long term capital appreciation while managing downside risk. The performance of the scheme will be benchmarked against NIFTY50 Hybrid Composite Debt 50: 50 Index. The scheme will be managed by Paras Matalia, Umeshkumar Mehta, and Dhawal Ghanshyam Dhanani (overseas investments). The minimum application amount will be Rs 5,000 and in multiples of Re 1 thereafter. The minimum instalment for monthly SIP will be Rs 500 and in multiple of Re 1 with minimum 12 instalments and Rs 1,000 and in multiple of Re 1 with minimum six instalments. The minimum instalment for quarterly and half-yearly SIP will be Rs 1,500 and in multiple of Re 1 (four instalments) and Rs 3,000 and in multiple of Re 1 (two instalments) respectively. The scheme will offer regular and direct plans with growth and IDCW options.
Navi Mutual Fund has filed a draft for Navi Nifty IT Index Fund. The scheme will be an open-ended scheme replicating Nifty IT Index. The scheme will be
benchmarked against Nifty IT Index TRI. The scheme will be managed by Aditya Mulki and Ashutosh Shirwaikar. The investment objective of the scheme is to
achieve a return equivalent to Nifty IT Index by investing in stocks of companies comprising the Nifty IT Index, subject to tracking error.
The scheme will have a regular and direct plan with growth options. According to the scheme information document, the scheme will invest in stocks in
proportion to their weightages in the Nifty IT Index. The fund will invest a significant part of its corpus in equities, it will also invest 5% of the corpus in
cash/tri party repo, repo in corporate debt securities and money market instruments. The scheme will allocate 95-100% assets in equities and equity-related
securities covered by Nifty IT Index, and 0-5% assets in debt and money market instruments.
Groww Mutual Fund has launched Groww Nifty Total Market Index Fund, an open-ended scheme replicating/tracking Nifty Total Market Index. This is India’s first Total Market Index Fund based on the NIFTY Total Market Index. The new fund offer or the NFO of the scheme is open for subscription and it will close on October 17. The scheme will re-open for subscription and redemption within five business days from the date of allotment of units on or before. The scheme will be benchmarked against NIFTY Total Market Index - TRI. The scheme will be managed by Anupam Tiwari. The investment objective of the scheme is to achieve a return equivalent to the Nifty Total Market Index-TRI subject to tracking error. The minimum investment amount for SIP is Rs 100 and in multiples of Re 1 thereof. The minimum lumpsum investment amount is Rs 1,000 and in multiples of Re 1 thereof. The scheme will invest 95-100% in equities and equity related securities covered by Nifty Total Market Index, and 0-5% in debt, and money market instruments.
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