In the week gone by, global stock market witnessed selling after the collapse of SVB Financial fueled contagion fears. Actually, Investors’ fears over banking crisis increased after Credit Suisse’s biggest shareholder Saudi National Bank refused to raise stake beyond 10%, citing regulatory issues. However later market got some strength after the news that a group of US banks injected about USD 30 billion in First Republic Bank while Credit Suisse announced its plans to borrow CHF 50 billion from Swiss National Bank. The technology sector also contributed to the gains, helping to boost the Nasdaq Composite to its strongest performance since Feb. 2, 2022. Meanwhile, U.S. Treasury Secretary Janet Yellen said the U.S. banking system remains sound and Americans can feel confident that their deposits will be there when needed. It is expected that global market will see some stability as fresh money being injected in the distressed banks. However, any fresh bank crisis may hurt market sentiments. Weak retail sales figures, as well as data showing a downward trend in producer inflation had bolstered bets of a small rate hike by the Federal Reserve at its meet concluding on March 22. Meanwhile, the ECB raised its deposit rate to 3% from 2.5% while saying that inflation is projected to remain too high for too long. Economic activity in China rebounded in January and February as the country emerged from almost three years of tough Covid-19 controls, adding to signs of resilience in the global economy. To note, Retail sales in China grew 3.5% in January and February compared with the same period last year, marking a sharp turnaround from the 1.8% annual contraction recorded in December. Whereas Industrial production in the first two months rose 2.4%, up from a 1.3% increase in December.
Back at home, volatility too haunted our domestic markets. Indian stock market swung between gains and losses in volatile trade, looking for direction from global peers. Investor sentiment wobbled after woes at Credit Suisse trigged concerns about a banking crisis. However in the later part of the week market showed resilient. The point also to note is that consistently unfavorable signs in global markets are encouraging investors to move to safe havens such as the dollar and gold, while FIIs are withdrawing funds from the domestic market as they look cautious. Going forward, market will continue to track the global as well as domestic factors for further direction.
On the commodity market front, a clear sell was witnessed in CRB after the Silicon Valley Bank crisis. CRB breached 280 levels. Commodities linked to the economic performance viz industrial metals and energy prices reacted quickly, especially crude oil. Bullion counter saw a big northward move on benefits of doubts. Gold stands to benefit from any pauses in the Fed’s rate-hike cycle, given that it increases the yellow metal’s appeal against the dollar, and also puts a cap on the opportunity cost of holding non-yielding assets. Gold and silver can trade in the range of 56500-6000 and 65000-70000 levels respectively. Crude oil can see further fall upto 5250 on bearish triggers. Base metals will see limited downfall on strict supply side. ZEW Economic Sentiment Index of Euro Area and Germany, Core Inflation Rate and Inflation Rate of Canada and UK, FOMC Economic Projections, Fed Interest Rate Decision, Fed Press Conference and Durable Goods Orders of US, BoE Interest Rate Decision, Inflation Rate of Japan, etc are very important data and events scheduled this week, which one must track while trading in commodities.
SMC Global Securities Ltd. (hereinafter referred to as “SMC”) is a registered Member of National Stock Exchange of India Limited, Bombay Stock Exchange Limited and its associate is member of MCX stock Exchange Limited. It is also registered as a Depository Participant with CDSL and NSDL. Its associates merchant banker and Portfolio Manager are registered with SEBI and NBFC registered with RBI. It also has registration with AMFI as a Mutual Fund Distributor.
SMC is a SEBIregistered Research Analyst having registration number 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.
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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 achieved outstanding operational and financial performance as compared to the previous quarter with recovery in petrochemicals, new energy and retail segment, financial services and sustained growth in Digital Services business. Moreover, it continues to deliver multiple growths across businesses and ongoing investments and acquisitions would continue to drive the next leg of growth. With large capital base across Jio and Retail business, the company continues to pursue growth initiatives in each of businesses with a focus on the India opportunity. Thus, it is expected that the stock will see a price target of Rs.2796 in 8 to 10 months’ time frame on target P/E of 23x and FY24 EPS of Rs.121.55.
The company has been delivering considerable improvement in asset quality. In order to sustain the growth momentum, it has diversified into funding infrastructure projects in irrigation, waste-to-energy and water treatment sectors and also into new and emerging sectors like e-mobility, utility-scale energy storage, etc. Taking the initiative forward, it has recently sanctioned financial assistance to projects in infrastructure sectors including metro rail, petroleum refining, bioethanol manufacturing and nuclear energy. With its diversification into newer infrastructure areas, it is expected to gather steam in the coming years, which would give a strong boost to the financials of the company. Thus, it is expected that the stock will see a price target of Rs.272 in 8 to 10 months’ time frame on target P/BV of 2.2x and FY24 BVPS of Rs.123.49.
The stock closed at Rs 984.40 on 17th March, 2023. It made a 52-week low of Rs 665.80 on 20thJune, 2022 and a 52-week high of Rs. 1006.65 on 13th March, 2023. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 872.
Few sessions back, the stock has given a fresh breakout above the ascending triangle pattern, visible on weekly charts. The breakout was observed with rising volumes as the stock made its 52 week high of 1006.65. However, since then some consolidation has been seen in prices as stock has been fluctuating in range of 965-1005 levels. Last week once again bulls made a comeback, as stock has given a breakout above “Bullish Flag Pattern” on short term charts. We expect momentum to continue in the stock, towards north as breakout above continuation pattern has been observed. Therefore, one can buy stock in the range of 980-985 levels for the upside target of 1100-1120 levels with SL below 910 levels.
The stock closed at Rs 151.40 on 17th March, 2023. It made a 52-week low of Rs 129.25 on 26th December, 2022 and a 52- week high of Rs.251.50 on 07th April, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 154.50.
After making a 52 week low of 129.25 in late December 2022, the stock made a smart recovery, from its lows and bounced back once again to regain a momentum towards north with formation of a rising channel on daily charts. Last week, the stock has witnessed good volumes with rise in price, which suggests some long build up into the stock. Technically, the stock is on a verge of getting, fresh momentum above its 200 days exponential moving average on daily interval. The positive divergences on secondary oscillators with rise in prices suggests for next round of upside momentum into the stock. Therefore, one can buy stock in the range of 150-152 levels for the upside target of 170-172 levels with SL below 138 levels.
Disclaimer : The analyst and its affiliates companies make no representation or warranty in relation to the accuracy, completeness or reliability of the information contained in its research. The analysis contained in the analyst research is based on numerous assumptions. Different assumptions could result in materially different results.
The analyst not any of its affiliated companies not any of their, members, directors, employees or agents accepts any liability for any loss or damage arising out of the use of all or any part of the analysis research.
SOURCE: RELIABLE SOFTWARE
Charts by Reliable software
In the week gone by, sharp selloff was seen in Indian markets as Nifty and Bank nifty both the indices ended with a cut of more than 1.50% & 2% respectively. Nifty has slipped below the 17000 levels for the first time in over five months, mostly taking cues from weak global markets. However, some of the losses got recovered in later part of the week, as traders cover their short positions ahead of a weekend as Nifty managed to close at 17100 mark. The Implied volatility (IV) of calls closed at 14.80% while that for put options closed at 15.63%. The Nifty VIX for the week closed at 16.22%. PCR OI for the week closed at 1.07. From the derivative front, hefty open interest was seen adding at 17000 put strike, which will act as a major support for Nifty in upcoming week, while on higher side 17200 would act as an immediate resistance for the index. We expect markets to remain choppy in upcoming week and traders are advised to remain cautious if Nifty slips back below 17000 levels once again, selling pressure may mount after a breakdown which could take Nifty towards 16800-16700 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 NCDEX Apr futures are expected to witness some upside recovery in prices during next week due to increased bargain buying. Spice millers are showing interest in buying after sharp fall in prices. Quality of arrivals has improved that is prompting stockists to buy turmeric at current levels. Arrival pace has picked up in major market like Nizamabad,Sangli, Selam and Erode with advancement of harvesting activities. About 22000-26000 tones are being arrived on daily basis in Nizamabad market . However, cumulative arrivals at major mandies have been down by about 57% Y-o-Y so far in Mar’23. About 33 thousand tonnes were arrived during 1-10th March’23 at major mandies as compared to 77 thousand tonnes of previous year. Bleak Production prospects will weigh on the market sentiments. Turmeric Apr contract is expected to find support near 6500 and expected to move up towards 7300 in near term.
Jeera NCDEX Apr futures are likely to trade mixed to higher due to improved export demand. Domestic demand is also likely to pick up in wake of Ramdan season ahead. However, gains are likely to be limited with rising fresh arrivals. Fresh arrivals have increased in Unjha market of Gujarat and likely to surge up in Rajasthan as well. About 60000-65000 bags are being arrived on daily basis. Yield has been good in Rajasthan that will lead to rise in production Rajasthan significantly. Total production is estimated to increase by 28% Y-o-Y to 384 thousand tonnes in year 2023 as Federation of Indian Spices Stakeholder. Jeera prices are likely to trade in range of 29000-34000 levels.
Dhaniya NCDEX Apr prices are expected to trade down due to improved supplies in Rajasthan. Overall production of Dhaniya is estimated to be higher by 18%-20% that will reflect as sharp rise in arrivals in Mar-Apr. Demand has been subdued as major buyers and spices millers are avoiding bulk buying with rising supplies of new arrivals in major mandies. However, reports of yield losses due to above normal temperature in Rajasthan that led to early ripening of crop will cap the major downfall in prices. Dhaniya NCDEX Apr prices are likely to trade in range of 6600-7400 levels.
Gold prices were buoyed by a weaker dollar and were poised for their biggest weekly gain since mid-November, as a global banking crisis sent investors flocking to the safe-haven metal. Prices jumped more than 5%, or by about $100, on safe-haven demand after the collapse of U.S. - based Silicon Valley Bank. Large U.S. banks injected $30 billion in deposits into First Republic Bank on Thursday to rescue the lender caught up in a widening banking crisis. This came after Swiss lender Credit Suisse said it would borrow up to $54 billion from the Swiss National Bank to shore up liquidity. European Central Bank raised interest rates by 50 basis points (bps) on Thursday, as concerns over high inflation outstripped fears of the banking crisis. U.S. central bankers are seen pressing on with their inflation-fighting campaign with a 25 bps rate hike at their March policy meeting. The opportunity cost of holding non-yielding bullion rises when interest rates are increased to bring down inflation. The number of Americans filing new claims for unemployment benefits fell more than expected last week, pointing to continued labour market strength. On COMEX Gold prices hovering near its resistance of $1940, as long as prices sustain below it, chances of correction are there if it breaks and sustains above the levels then might witness a sharp rally towards $1980/$2020. The short-term support for gold holds near $1880. Silver on COMEX may trade in the range of $20.00-$24.00. Ahead in the week, gold prices may continue to trade higher where it may take support near 56000-60000. Silver may trade within the wider range of 64000-70000.
Oil prices plunged by nearly 10% to settle at the lowest levels in more than a year on concerns that a crisis of confidence in the banking sector could trigger a recession and cut demand. Crude recovered some of its earlier losses along with benchmark equity indexes after Swiss regulators pledged a liquidity lifeline to Credit Suisse, which had earlier seen shares fall as much as 30%. Both crude benchmarks hit their lowest levels since December 2021 and have fallen for three straight days. Hedge funds were liquidating because of rising interest rates and economic uncertainty. Brent has fallen by more than 10% since Friday's close, while U.S. crude is down more than 14%. The U.S. dollar also strengthened against a basket of currencies, making it more expensive for holders of those currencies to purchase crude. The primary driver behind the price weakness is broad concern for the global economy and risk-off sentiment in the market. Meanwhile, figures showed that China's economic activity picked up in the first two months of 2023 after the end of strict COVID-19 containment measures. Ahead in the week prices of crude likely to trade with bearish bias and sell on rise would be good strategy. The possible trading range for crude oil would be 5200-6000. Natural gas prices surged on expectations that a supply glut may begin to narrow over the coming weeks due to some late-winter cold spells. The EIA said in its weekly report that gas inventories fell by a smaller-than-normal 58 billion cubic feet last week and that supplies that were 22% above normal are now a stout 24% above normal. Ahead in the week prices may trade in the wider range of 170-230.
Base metals may trade in the range with bullish bias as a host of bailout measures to avert a banking crisis may sooth investors' nerves, while hopes for Chinese demand recovery may also boost sentiment. Investors welcomed news of a large group of banks infusing cash into U.S. lender First Republic Bank and Swiss National Bank providing a lifeline to the embattled Swiss lender Credit Suisse. Economic activity in China picked up in the first two months of 2023 as consumption and infrastructure investment drove recovery from pandemic disruption despite challenges of weak global demand and a downturn in the property sector. China's home prices gained momentum in February, rising for a second consecutive month, but prices have yet to recoup all their losses and there remains a sizable stock of unsold homes. Copper may trade in the range of 735-775 levels. A sign of demand picking up in top consumer China also supported prices, with Yangshan copper premium, which reflects demand for imported copper into China-rose to $35 a tonne last week, its highest since Jan. 9. Zinc can trade in the range of 245-275 levels. Lead can move in the range of 178-187 levels. Aluminum may trade in the range of 198- 215 levels . China’s aluminum production rose 7.5% in the first two months of 2023, official data showed, after the end of strict Covid-19 controls improved the economic outlook and lifted demand expectations. However, weakening consumption in Europe and the US will negatively impact China’s aluminum product exports, lowering demand for primary aluminium. Steel long (Apr) is likely to trade in the range of 48500-53000 levels on NCDEX with bearish bias.
Cotton/Kapas prices are expected to trade sideways to higher due to limited supplies in domestic market. Farmers and stockists are holding their crop in expectation of further rise in prices. About 145 lakh bales have arrived so far in year 2022-23 during the time period of Oct’22-Feb’23 as compared to 232 lakh bales of previous season. Cotton Association of India has revised the crop number by 8.50 lakh bales from 321.50 bales to 313.00 lakh bales of 170 kg. However, gains in cotton and Kapas are likely to be limited due to bleak export prospects. Sluggish international demand in result of higher prices of Indian cotton may lead to fall in cotton exports at just 30 lakh bales this year as compared to 45 lakh bales of last year. Kapas Apr NCDEX prices are likely to trade in range of 1520-1600 levels. MCX cotton is likely to trade in range of 60500-65000 levels.
Cotton seed oil cake NCDEX Apr futures are likely to on positive bias due to shrinking supplies at major trading centers. Supplies are still bleak due to fall in arrivals of cotton. Ginning activities have been down due to limited export demand of cotton that has impacted cotton seed production badly in year 2022-23. Availability of green fodder has dropped due to heat waves in northern part of India that led to rise in demand in cattle feed industry in Mar. Cotton seed oil cake prices are likely to trade in range of 2400- 2800 levels.
Guar seed Apr futures are expected to trade sideways to down due to muted demand in local market. Milling demand of guar seed has been subdued due to fall in crude oil prices that has hampered the export prospects of gum. Arrivals are expected to increase in fear of further fall in prices. Guar seed prices will trade in range of 5300-6000 in near term wherein Guar gum prices are likely to trade in range of 10500-13000 levels.
Mentha oil Mar contract is likely to trade higher on weaker production outlook for upcoming season. Above normal temperature in northern part of India is likely to affect the sowing activities adversely. Supplies have been tighter due to offseason period of arrivals. Prices may witness upside recovery with support of 1000 and will honor the resistance of 1050 in near term.
Castor seed Apr prices are expected to trade sideways to lower due to adequate supplies in the market. Daily arrivals have increased wherein crushing demand is still poor due to sluggish export of castor oil. Bleak export demand is still a major concern for castor oil traders as domestic stocks are surging up with fall in export. Castor oil export has slumped 16% Y-o-Y to 581.75 thousand tonnes during Jan-Dec’22. Going forward, castor seed prices are likely to trade in range of 6100-6600 levels.
It closed at Rs. 751.30 on 16th Mar 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 760.45. On the daily chart, the commodity has Relative Strength Index (14-day) value of 47.25. Based on both indicators, it is giving a sell signal.
One can sell near Rs.762 for a target of Rs. 738 with the stop loss of 775.
It closed at Rs. 5748.00 on 16th Mar 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 6170.18. On the daily chart, the commodity has Relative Strength Index (14-day) value of 31.186. Based on both indicators, it is giving a sell signal.
One can sell near Rs. 5850 for a target of Rs. 5200 with the stop loss of 6100.
It closed at Rs. 6734.00 on 16th Mar 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 6946.12 On the daily chart, the commodity has Relative Strength Index (14-day) value of 32.610. Based on both indicators, it is giving a sell signal.
One can sell near Rs. 6850 for a target of Rs. 6450 with the stop loss of 6970.
NOTE: *M.High / M.Low stands for Monthly High / Monthly Low
A clear sell was witnessed in CRB after the Silicon Valley Bank crisis. CRB breached 280. Commodities linked to the economic performance viz industrial metals and energy prices reacted quickly, especially crude oil. Bullion counter saw a big northward move on the benefits of doubts. Gold solidified its hold on the $1,930 perch, hitting a new six-week high, as the U.S. banking crisis that began with California’s Silicon Valley Bank turned global with a heightened focus on the troubled finances of leading European investment banker Credit Suisse. Dollar index witnessed fall on the expectation of only 25 basis points or unchanged interest rate on 22nd March. Base metals saw limited fall despite all uncertainty on expectation of improvement in Chinese economic health. Investment bank Goldman Sachs hiked its outlook for China’s annual economic growth to 6% from 5.5%, citing improving trends after the country relaxed most anti-COVID restrictions earlier this year. In energy, crude oil prices suffered more. WTI and Brent crude contracts plummeted around 11% last week, and were at their weakest levels since December 2021. With the collapse of three U.S. banks over the past week, markets feared contagion in the broader economy. This in turn Fed concerns that a potential recession will severely crimp oil demand this year. Data showing that U.S. crude inventories grew more than expected in the week to March 10 pushed up concerns over slowing demand. U.S. inventories have now grown for 11 of the past 12 weeks, pushing up concerns over a potential supply glut in the world’s largest crude consumer. Natural gas couldn’t hold the support of 218-219 and saw marginal fall. An unusually warm winter has led to considerably less heating demand in the United States this year, leaving more gas in storage than initially thought.
Agri commodities too felt the shock. Castor breached the support after a long consolidation. Cotton oil seedcake prices too dipped down after a three week bounce along with cotton futures. Export has dropped significantly due to low international demand, as Indian cotton prices are looking uncompetitive at this level. From October 2022 to February 2023, our cotton exports were only about 8 lakh bales, the lowest in recent years. Fall in crude oil, further pressurized guar counter and it saw nonstop four week fall. Bears dominated spices counter throughout the week on good availability amid poor export demand, except jeera, which saw strong bounce on the news of rain. Mentha saw a pause in the fall after a sharp three week fall. Sowing has started in UP and sowing numbers are lower as compared to last year due to adverse weather condition. Supplies have been tighter due to offseason period of arrivals.
The collapse of many American Banks has sent shockwaves across world markets and growing fears that a "slow-rolling crisis" could be beginning in the US financial system. The collapse of Silicon Valley Bank and Signature Bank will affect the real economy is still unknown. But the effects are already palpable in the markets, in the expectations of new interest rate hikes and even in the political rhetoric. The banking turmoil that started in the U.S. late last week has spread to Europe. Credit Suisse’s fiasco after the collapse of Silicon Valley Bank has triggered the risk of financial instability globally.
This collapse is the biggest failure of a US bank since 2008. But the 2008 crisis was caused by assets (like mortgage-backed securities) that were difficult to value, making it hard for banks to determine how much they were worth. This time, however, the assets causing trouble for banks (US Treasuries and bonds) are easy to value and sell. That also makes intervention by the government much more effective. Although the U.S. government has tried to calm fears by saying that all depositors' money at the two banks will be guaranteed, the failure has revealed significant cracks in financial markets that are starting to impact global institutions. Goldman Sachs raised its probability of the U.S. economy entering a recession in the next 12 months to 35% amid the small bank stress.
Impact on Precious Metals
Gold that smells a financial crisis early, moved swiftly up as expectations grew that the Federal Reserve could pause its rate hikes after the collapse of two big U.S. regional banks and investors are looking for a safe asset to park money after the banking crisis.
The combination of falling yields, a weaker dollar, and a rush into haven assets could continue to give some strength to precious metals in the near term, though this may be confined to gold and the more industrial-facing white metals could fare less well if economic growth falters.
Markets were pricing in an 80% chance that the Federal Reserve would raise interest rates by 50 basis points in March and saw another aggressive move in May. But the new banking crisis shows just how precarious the health of financial markets is after a year of aggressive rate hikes from the Federal Reserve.
Impact on Base metals
While global economic uncertainty is helping gold prices as a safe haven, a slowdown in economic growth could hamper demand for industrial metals and put downward pressure on base metal prices. Only weaker dollar may provide some relief to industrial metals but Broad-based economic downturn may be more dominant.
Impact on Energy
Oil prices have plummeted so far this year amid growing concerns that a global recession. Now the collapse of U.S. banks feared a potential recession that will severely crimp oil demand this year. Crude markets are focused squarely on any new developments in the banking sector, with both U.S. and European governments racing to reassure investors over stability among major lenders.
The Indian Rupee fell to two weeks low of 82.80 in the week ended on Thursday after the ongoing turbulence came from the US and European Banking sectors. Concerns about the stability of banks triggered a huge demand for the safe haven dollar notably against emerging currencies where Rupee cannot stand alone. However, the help of possible RBI intervention as well as lower oil prices capped any potential fall in the rupee. Oil prices posted their biggest weekly fall since December at about 10% which is certainly welcome news for the rupee in terms of managing a lower current account deficit. Going forward USDINR may stay in a weekly range between 82.20 to 82.70 with a negative bias. On the global front, the ECB went with a hefty 50 bps hike supporting the euro at lower levels causing the dollar to face some weakness. We think the volatility in the euro and pound pairs will continue and FOMC and Bank of England monetary policy meetings due next week will be key to watch. Apparently, the dynamics of the bond market are changing frequently with an 89.00% probability favoring a 25 bps hike at next week's FOMC meeting while hardly 10.00% pricing for unchanged. Although there is enough scope to change the probabilities before FOMC as it will go for a pause as well.
USDINR (MAR)is trading between its major Exponential Moving Average indicating sideways trends for short term view. The Pair has major support placed around 81.80 levels while on higher side resistance is seen around 83.00 levels. The 21-day Exponential Moving Average of the USD/INR is currently around 82.55 Levels. On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 50.35.
One can sell near 82.80 for the target of 81.80 with the stop loss of 83.30.
GBPINR (MAR)is trading above its major Exponential Moving Average indicating upwards trends for short term view. The pair has major support placed around 99.00 levels while on higher side resistance is seen around 101.40 levels. The 21-day Exponential Moving Average of the GBP/INR is currently around 99.62. On the daily chart, the GBP/INR has Relative Strength Index (14-day) value of 54.45.
One can buy near 100.00 for the target of 101.00 with the stop loss of 99.50.
EURINR (MAR) is trading between its major Exponential Moving Average indicating sideways trends for short term view. The pair has major support placed around 87.20 levels while on higher side resistance is seen around 88.50 levels. The 21-day Exponential Moving Average of the EUR/INR is currently around 88.02. On the daily chart, the EUR/INR has Relative Strength Index (14-day) value of 48.51.
One can sell near 88.20 for the target of 87.20 with the stop loss of 88.70.
JPYINR (MAR) is trading below its major Exponential Moving Average indicating downwards trends for short term view. The pair has major support placed around 61.00 levels while on higher side resistance is seen around 63.00 levels. The 21-day Exponential Moving Average of the JPY/INR is currently around 61.71. On the daily chart, the JPY/INR has Relative Strength Index (14-day) value of 53.23.
One can buy near 62.00 for the target of 63.00 with the stop loss of 61.50.
Divgi TorqTransfer, an auto component maker backed by Infosys cofounder Nandan Nilekani, on Tuesday listed at Rs.620, a 5.1% premium over its initial public offer price of Rs.590 a piece. However, post-listing, the stock fell as much as 7% to Rs.560 before closing at Rs. 605.50. The Rs.412-crore IPO comprised a fresh share issue of Rs.180 crore and an offer for sale of 3.93 million shares by existing shareholders. As part of the offer for sale, Nilekani's family trust offloaded 1.44 million shares. The issue, which opened for bids between March 1 and 3, was subscribed 5.44 times led by retail investors. The retail portion of the issue was subscribed 4.31 times, while the non-institutional investors and qualified institutional buyers portions were subscribed 1.4 times and 7.83 times, respectively. In a pre-IPO share sale, the company raised Rs.185.45 crore from 12 anchor investors, including Matthews Asia Funds, Aurigin Master Fund, ICICI Prudential, Nippon Life India Trustee, Aditya Birla Sun Life Insurance, and Quant MF, among others.
Road Construction Company Udayshivakumar Infra plans to float its maiden public issue on March 20 in a price band of Rs 33-35 per share. The company aims to mop up Rs 66 crore from the public offer that would comprise only fresh issuance and no offer-for-sale portion. The offer will close on March 23. The main intention of fund raising through the IPO is to provide funding for incremental working capital requirements, besides general corporate purposes. Investors can bid for a minimum of 428 shares and in multiples of 428 shares thereafter. The company has reserved 60 percent of its offer size for retail investors, who can make a minimum investment of Rs 14,980 per lot and the maximum investment of Rs 1,94,740 for 13 lots. Further 30 percent of the offer is reserved for high networth individuals and the rest 10 percent for qualified institutional buyers. Incorporated in 2019, the Karnataka-based road developer will finalise its IPO share allotment to investors by March 28.
The Tata Group has filed papers with market regulator Sebi to launch the initial public offering (IPO) of Tata Technologies. The IPO is purely an offer for sale by the promoter Tata Motors and two other existing shareholders and doesn't involve any fresh issue of shares. "We wish to inform you that Tata Technologies, a subsidiary of Tata Motors Limited, has informed the company that it has today filed a draft red herring prospectus dated March 9, 2023 with the Securities and Exchange Board of India for an initial public offering," Tata Motors said. The IPO is by way of an offer for sale (OFS) of up to 95,708,984 equity shares, representing approximately 23.60% of its paid-up share capital. As of now, Tata Motors holds 74.42% in Tata Technologies, Alpha TC Holdings Pte Ltd, a Singapore-based investment firm managed by Tata Capital Advisors, owns 8.96%, while Tata Capital Growth Fund owns another 4.48%.The IPO comprises OFS of up to 81,133,706 equity shares by Tata Motors, 9,716,853 equity shares by Alpha TC Holdings and up to 4,858,425 shares by Tata Capital Growth Fund I, each representing up to 20%, 2.40% and 1.20%, respectively of Tata Technologies paid-up share capital. Under the offer, which is being made through the book building process, 35% of the IPO size would be reserved for retail investors. Tata Tech said it is not contemplating a pre-IPO placement of its shares.
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Domestic mutual funds (MFs) have kept their faith in the Indian stock market despite multiple headwinds all through 2022-23 (Fy23), with their net flows into equities crossing the Rs 1.5-trillion mark for the second consecutive financial year. MFs pumped a net Rs 1.53 trillion into equities till March 1, 2023, the Securities and Exchange Board of India (Sebi) data shows, as compared to Rs 1.72 trillion in FY22. Since FY15, MFs have been net buyers of equities, except in FY21, when they sold a net Rs 1.21 trillion. In the nine financial years between FY15 and FY23, they have pumped in a massive Rs 6.90 trillion in the Indian equity market. Foreign portfolio investors (FPIs), on the other hand, have recorded a net outflow of Rs 36,538 crore in the equity segment so far in FY23. This comes after a dismal FY22, when they pulled out Rs 1.42 trillion from the Indian equity market, the NSDL data shows.
UTI Mutual Fund (UTI) has launched UTI Long Duration Fund, an open-ended debt scheme that will invest in debt and money market instruments with the portfolio Macaulay Duration is above seven years. The scheme will have a relatively high interest rate risk and relatively low credit risk. The New Fund Offer (NFO) is open for subscription and will close on March 15. The scheme aims to generate optimal returns with adequate liquidity by investing in a portfolio of debt and money market instruments. The minimum application amount is Rs 5,000 and in multiples of Re 1 thereafter. During the NFO period, the units of the scheme will be sold at face value - that is, Rs 10 per unit. The scheme will offer Regular Plan and Direct Plan – with Growth and IDCW options. The scheme will be benchmarked against CRISIL Long Duration Fund AIII Index. The scheme will be suitable for investors with long-term investment goals, investors who have a lowrisk appetite for credit exposures, seeking a high-quality portfolio and tax-efficient reasonable returns.
Bajaj Finserv has received the final nod from markets regulator Sebi to commence its mutual fund business. Its asset management business has been named Bajaj Finserv Mutual Fund. Ganesh Mohan, who has been part of Bajaj Finserv for eight years and worked as group head - corporate strategy, will take over as the chief executive officer at the fund house. Nimesh Chandan will be the chief investment officer. Chandan was the CIO at Canara Robeco AMC. Bajaj Finserv will be the 43rd player in the Indian mutual fund industry which has assets of Rs.40.80 lakh crore.
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