In the week gone by, global stock markets ended the week northward as investors I parsed through the latest batch of corporate earnings reports for insight into the state of the economy. Even data showed that Initial jobless claims also declined last week, indicating the U.S. labor market remains strong. Besides, a raft of data showed that the U.S. economy fared better in the fourth quarter. Fed is expected to hike rates by 25 basis points next week amid bets the central bank is approaching the end of its tightening cycle. Meanwhile, European markets have been buoyed by data this week showing improved business sentiment in Germany and an uptick in Eurozone services and manufacturing activity. To note, Euro zone business activity made a surprise return to growth in January, according to the S&P Global survey - the latest sign that the downturn in the bloc may not be as deep as feared. Meanwhile, Japanese inflation data showed nationwide core consumer prices rose by an annual 4% in December, the fastest inflation rate since 1981. On the first trading day following the Lunar New Year break, the benchmark Hang Seng Index jumped 2.4% to close at its highest since March 1. The Hang Seng China Enterprises Index, which tracks mainland companies listed in Hong Kong, rallied almost 3%. Investors were encouraged by China’s holiday travel and box office data, which showed a strong revival in demand and suggested that the nation has emerged from the worst of a Covid Zero exit wave. Investors have been keeping a keen eye on consumption figures from the nation’s most important holiday to gauge the strength of China’s economic recovery.
Back at home, domestic markets continued to witness volatility as market sentiments are dampened by persistent FII selling. Financials and IT have faced the brunt of this selling, followed by consumer services, oil & gas, telecommunication and autos. Market participants are hoping the government will continue with its infrastructure spending and announce measures to attract more funds from the private sector. "Growth in India is expected to remain strong at 5.8 percent, albeit slightly lower than the estimated 6.4 percent in 2022, as higher interest rates and a global slowdown weigh on investment and exports," the UN's World Economic Situation and Prospects 2023 report, published on January 25, said. Market participants will continue to track the Union Budget for 2023-24 announcements, which is scheduled to be presented in the Lok Sabha on 1st Feb 2023.
On the commodity market front, it was holiday shortened week and Chinese participation was not there as they were celebrating week long Lunar New Year. CRB noticed locked move on mixed triggers. Dollar index continued its downside move for continuous third week; closed below 102 levels. US treasury Yield made a high of 4.33 in October and is now trading near 3.46; giving upper hand to bullion and other commodities. Crude oil prices in physical markets have started the year with a rally on increased buying from China after the relaxation of pandemic controls and on trader concern that sanctions on Russia could tighten supply. Gold and silver can trade in a range of 55500-58000 and 66000- 71000 respectively. GDP Growth Rate, Unemployment Change, Inflation Rate and Unemployment Rate of Germany, NBS Manufacturing PMI of China, Inflation Rate of France, GDP of Italy, Euro Area and Mexico, CB Consumer Confidence, ISM Manufacturing PMI and Fed Interest Rate Decision, Non Farm Payrolls, Unemployment Rate, Unemployment Rate and ISM NonManufacturing PMI of US, Employment Change and Unemployment Rate of New Zealand, Inflation data of Euro Area and Italy, BoE Interest Rate Decision, ECB Interest Rate Decision and ECB Press Conference, and some data and events will keep the market participants on edge.
SMC Global Securities Ltd. (hereinafter referred to as “SMC”) is a registered Member of National Stock Exchange of India Limited, Bombay Stock Exchange Limited and its associate is member of MCX stock Exchange Limited. It is also registered as a Depository Participant with CDSL and NSDL. Its associates merchant banker and Portfolio Manager are registered with SEBI and NBFC registered with RBI. It also has registration with AMFI as a Mutual Fund Distributor.
SMC is a SEBIregistered Research Analyst having registration number INH100001849. SMC or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing /dealing in securities market.
SMC or its associates including its relatives/analyst do not hold any financial interest/beneficial ownership of more than 1% in the company covered by Analyst. SMC or its associates and relatives does not have any material conflict of interest. SMC or its associates/analyst has not received any compensation from the company covered by Analyst during the past twelve months. The subject company has not been a client of SMC during the past twelve months. SMC or its associates has not received any compensation or other benefits from the company covered by analyst or third party in connection with the research report. The Analyst has not served as an officer, director or employee of company covered by Analyst and SMC has not been engaged in market making activity of the company covered by Analyst.
The views expressed are based solely on information available publicly available/internal data/ other reliable sources believed to be true.
SMC does not represent/ provide any warranty express or implied to the accuracy, contents or views expressed herein and investors are advised to independently evaluate the market conditions/risks involved before making any investment decision.
DISCLAIMER: This report is for informational purpose only and contains information, opinion, material obtained from reliable sources and every effort has been made to avoid errors and omissions and is not to be construed as an advice or an offer to act on views expressed therein or an offer to buy and/or sell any securities or related financial instruments, SMC, its employees and its group companies shall not be responsible and/or liable to anyone for any direct or consequential use of the contents thereof. Reproduction of the contents of this report in any form or by any means without prior written permission of the SMC is prohibited. Please note that we and our affiliates, officers, directors and employees, including person involved in the preparation or issuance of this material may; (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company (ies) mentioned herein or (b) may trade in this securities in ways different from those discussed in this report or (c) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instrument of the company (ies) discussed herein or may perform or seek to perform investment banking services for such Company (ies) or act as advisor or lender / borrower to such company (ies) or have other potential conflict of interest with respect of any recommendation and related information and opinions, All disputes shall be subject to the exclusive jurisdiction or Delhi High Court.
SAFE HARBOR STATEMENT: Some forward statements on projections, estimates, expectations, outlook etc are included in this update to help investors / analysts get a better comprehension of the Company's prospects and make informed investment decisions. Actual results may, however, differ materially form those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, Impact of competing products and their pricing, product demand and supply constraints. Investors are advised to consult their certified financial advisors before making any investments to meet their financial goals.
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.160 in 8 to 10 months’ time frame on 2 year average P/Bv of 0.58x and FY24 BVPS of Rs.275.12.
The merger of JMC would provide greater scale, diversified business mix, increase competitiveness, strong financial profile and wider geographic coverage. Moreover, the existing order book along with diversified business mix provides good visibility for growth in coming quarters. Thus, it is expected that the stock will see a price target of Rs. 625 in 8 to 10 months’ time frame on one year average P/Ex of 16.88x and FY24 EPS of Rs.37.04.
The stock closed at Rs 3410 on 27th January, 2023. It made a 52-week low at Rs 2926.10 on 26th September, 2022 and a 52-week high of Rs. 3882.50 on 03rd Feb, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 3292
After forming a Double bottom pattern around 2950 levels in recent past, the stock has made a strong comeback and showed a smart recovery from lower levels. Recently the stock once again managed to surpass above its 200 days exponential moving average on daily charts and could be seen trading in a rising channel with formation higher low pattern.
Last week the stock had given break above its falling trend line of downward sloping channel along with positive divergences on secondary oscillators, which pointed towards next upswing into prices moving forward. Therefore, one can buy stock in the range of 3390-3410 levels for the upside target of 3565-3575 levels with SL below 3290 levels.
The stock closed at Rs 225.55 on 27th January, 2023. It made a 52-week low at Rs 190.25 on 24th Feb, 2022 and a 52-week high of Rs.232 on 08th June, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 214.80
The stock has been trading lower since last few months as prices can be seen fluctuating in a downward sloping channel with formation of lower high pattern. However last week the stock has managed to give breakout above the channel formation as once again prices have reached towards its 6 month high of 230 levels. On daily charts, the stock is sustaining well above its short and long term moving averages and can be seen trading higher with formation of higher bottom pattern. Therefore, one can buy the stock in the range of 223-226 levels for the upside target of 249-254 levels with SL below 210 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
Last week a sharp selloff was seen in stocks after Hindenburg research report published the concern over the debt position by Adani group. On the weekly basis, NIFTY corrected by more than 2% whereas Bank Nifty declined by more than 5%. NIFTY’s highest call open interest concentration was seen at 18000 strike whereas on put side, the highest concentration is at 17000 strike. 17500, 17300 and 17100 also hold some minor open interest on put side. Banknifty doesn’t hold significant open interest on put side whereas call writing was seen on higher levels. Implied volatility (IV) of calls closed at 14.22% while that for put options closed at 15.11%. The Nifty VIX for the week closed at 14.66%. PCR OI for the week closed at 1.40 lower than the previous week. After spending lot of time in a defined range of 17800 to 18200, Nifty has given breakdown below key support of 17800 and now trading near immediate support of 17500 level. For upcoming sessions, we keep our stance cautious for the Indian markets as further selling pressure can drag Nifty more down towards 17300-17100 levels as well. We advise traders to remain sideline as volatility could grip markets on the back of upcoming Union budget.
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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 likely to trade down due to muted spot demand. Commencement of arrivals of new crop is likely to pick up in Telangana that will lead to rise in supplies. Stockists are releasing old stocks wherein buyers are going for hand to mouth buying in anticipation of further fall in prices. However, improved export demand is likely to cap the major downfall in prices. India exported about 12.4 thousand tonnes of turmeric in Nov’22 as compared to 12.2 thousand tonnes. Technically, Turmeric Apr contract traded at NCDEX is likely to honor the resistance of 7900 and will correct towards 7400 coming week.
Jeera NCDEX Mar futures are expected to remain under pressure due to muted spot demand. Millers and exporters are avoiding bulk buying in wake of new crop season ahead. However, major trend of jeera is likely to remain bullish due to weaker production outlook for upcoming season. jeera Mar contract is likely to trade in range of 29000-33500 levels.
Dhaniya NCDEX Apr prices are likely to trade on weaker note due to lukewarm demand at physical market. Reports of rise in area under dhaniya and better yield prospects supported by normal crop progress will weigh on the market sentiments. Supplies are adequate at major trading centers and will improve further once the arrivals of new crop pick up. Harvest of new crop is likely to commence in March that is keeping buyers away from heavy buying. Dhaniya is likely to remain down and prices may touch the level of 7700 in near term with resistance of 8500 levels.
Gold prices witnessed a thin trade throughout the week, as traders awaiting U.S. inflation data and Federal Reserve’s likely stance on further interest rate hikes. The dollar index gained which capped the upside for gold. Gold is seeing a pull-back as the dollar is on the higher side and the U.S. GDP data is also slightly pressuring prices. U.S. economy grew at a faster pace in the December quarter than economists had expected, prompting bets the Fed would keep rates higher for longer. However, this could have been the last quarter of solid growth before the impact of the Fed’s aggressive tightening spree shows up, with most economists expecting amid recession by the second half of 2023. Traders broadly expect the Fed to scale back rate hikes to 25 basis points at its Jan. 31 -1st Feb. meeting, from 50 bps in December. Investor are now awaiting U.S. personal consumption expenditures data, the Fed’s preferred inflation measure, for cues on the central bank’s path forward. A downside surprise in the data may point towards a less-hawkish Fed, which could drive gold prices higher in the longer run. Lower interest rates tend to be beneficial for bullion as it lowers the opportunity cost of holding the nonyielding asset. On COMEX, Gold has taken formation of bearish engulfing pattern which is considered as bearish reversal pattern based on this pattern prices may fall to 1910 followed by 1890. On the higher side, 1950 remains the key for sellers. Silver may trade in the range of 22.770-24.520 levels with bearish bias. Ahead in the week, gold prices on MCX may trade in the range of 54500-58000 levels, with bearish bias. Silver may trade with bearish bias and the possible trading range would be 64000-71000 levels.
Crude Oil prices posted positive rally amid better than expected US GDP data in the fourth quarter of 2022. According to the advance estimate released by the Bureau of Economic Analysis (BEA) of the US, the real Gross Domestic Product (GDP) of the US increased at an annual rate of 2.9 per cent in the fourth quarter of 2022. However, the market was expecting it to be at 2.6 per cent. In fact, the real GDP increased 3.2 per cent in the third quarter of 2022. The BEA estimate said the increase in real GDP reflected increases in private inventory investment, consumer spending, federal government spending, state and local government spending, and non-residential fixed investment that were partly offset by decreases in residential fixed investment and exports. Another factor that boosted the sentiments of the market was the decrease of Covid cases in China. Citing the Centre for Disease Control and Prevention of China, a report said critically ill Covid cases in China are down 72% from a peak early this month while daily deaths among the patients in hospitals have dropped 79% from their peak. China recently relaxed its strict Covid control measures in an effort to boost its economy. The decrease in the number of Covid cases will help boost sentiments in the crude oil market as China is a significant consumer. Ahead in the week prices likely to witness buying and the possible trading range would be 6450-7090 levels. Natural gas prices hit lowest since April 2021 and have crashed 70% from highs as demand weakens. Ahead in the week prices may continue to witness fall and the possible trading range would be 190-280 levels.
Base metals may trade with an uptrend on hopes of strong Chinese demand as markets reopen after the long Lunar New Year holiday. The speed of China’s recovery from the current Covid-19 crisis, the pace of global monetary policy tightening and the scope of Chinese infrastructure spending are key factors to watch on the demand side. China kept benchmark lending rates unchanged for a fifth month in January, as expected, but analysts say future cuts are possible as the central bank has pledged to support the COVID-ravaged economy. However, strong U.S. growth would hint at more aggressive interest rate rises from the Fed, which could support the dollar. Copper may trade in the range of 770-810 levels. Fears of supply disruption in top copper producers Chile and Peru have added to concerns that additional demand from China's reopening could stretch an already tight market. State-owned Cochilco raised its projection for 2023 copper prices to $3.85 per pound, up from a December estimate of $3.70 a pound, as inventories worldwide drop. Zinc can trade in the range of 290-315. Lead can move in the range of 183-196 levels. Aluminum may trade in the range of 215-240 levels. Aluminium ingot (AI) premiums in western markets have climbed this month on speculation that rising Chinese demand following the lunar New Year holiday will tip the balance against tight supply levels caused by production curtailments in the west. Steel long (Feb) is likely to trade in the range of 48500-51000 levels on NCDEX. The healthy domestic demand outlook is likely to benefit steel prices. To serve the growing domestic demand, local steel production will grow backed by sustained high capacity utilisation levels.
Kapas NCDEX Apr prices are likely to trade mixed to higher following improved buying in local market. Below normal arrivals at major trading centers and looming uncertainty over yield losses due to recent rainfall in southern region is likely to support firmness in prices. Cotton arrivals are lower as compared to last year as farmers are hoarding their produce in expectation of better price realization. In wake of supply tightness in physical market, Indian government has allowed duty-free import of 3 lakh bales of cotton from Australia. Kapas Apr NCDEX prices are likely to trade in range of 1570-1660.
Cotton seed oil cake NCDEX Feb futures are likely to trade mixed to down due to muted demand at physical market. Demand in cattle feed industry has been down wherein most of stockists are going for the hand to mouth buying in wake of new crop season of mustard ahead. Mustard seed oil cake is used as substitute of cotton seed oil cake in northern part of India. Supplies of cotton seed oil cake is likely to higher as farmers are holding heavy stocks of cotton in anticipation of better price outlook. Prices are likely to trade in range of 2800- 2950 levels.
Guar seed Feb futures are likely to trade mixed to down as prices are likely to remain under pressure due to increased supplies at major trading centers. Arrivals have started improving again after recent gains in prices. However, major trend in guar is likely to remain positive due to robust export demand of gum. India exported about 19 thousand tonnes of guar gum in month of Nov’22 compared to 16.9 thousand tonnes of previous year for corresponding period, higher by 13% Y-o-Y as per the data released by Ministry of commerce, India. India’s total guar gum export has reached up to 227.13 thousand tonnes till Nov’22 in year 2022 higher by 16% Yo-Y. Guar seed prices are likely to trade in range of 5550-6400.Guar gum prices are likely to trade in range of 11000- 14000.
Mentha oil Feb contract is likely to trade sideways to higher on improved demand outlook. With improved economic numbers in China, export demand of menthol will also improve that will cap the major downfall in prices. Supplies have been tighter due to offseason period of arrivals. Prices are likely to trade in range of 985-1040.
Castor seed Feb prices are likely to trade down due to improve supplies with advancement of harvesting activities. Sluggish 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 543.4 thousand tonnes during Jan-Nov’22 due to slowdown in economic activities in China. Going forward, castor seed prices are likely to trade in range of 6700-7300.
It closed at Rs. 6533.00 on 25th Jan 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 6554.19. On the daily chart, the commodity has Relative Strength Index (14-day) value of 57.630. Based on both indicators, it is giving a buy signal.
One can buy Crude Oil Feb near Rs.6650 for a target of Rs. 7090 with the stop loss of 6400.
It closed at Rs. 57465.00 on 25th Jan 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 55307.17. On the daily chart, the commodity has Relative Strength Index (14-day) value of 65.272. Based on both indicators, it is giving a sell signal.
One can sell near Rs. 57200 for a target of Rs. 56000 with the stop loss of 57800.
It closed at Rs. 50120.00 on 25th Jan 2022. The 18-day Exponential Moving Average of the commodity is currently at Rs 48175.67. On the daily chart, the commodity has Relative Strength Index (14-day) value of 60.568. Based on both indicators, it is giving a sell signal.
One can sell below Rs. 50000 for a target of Rs. 48500 with the stop loss of 50750.
NOTE: *M.High / M.Low stands for Monthly High / Monthly Low
At home, it was holiday shortened week and Chinese participation was not there as they were celebrating week long Lunar New Year. CRB noticed locked move on mix triggers. Dollar index continued its downside move for continuous third week; closed below 102 levels. US treasury Yield made a high of 4.33 in October is now trading near 3.46; giving upper hand to bullion and other commodities. Gold saw a pause in the rally whereas silver was sharper as compared to gold. Depreciation in our currency kept MCX gold on marginally up. MCX gold witnessed record high as fears of a looming recession kept safe haven demand elevated. Base metals traded strong from last 3-4 weeks; except lead. Euro zone business activity made a surprise return to the modest growth in January. Base metals rallied on expectation of Chinese demand will help offset slowing consumption in other countries. In the energy counter, crude oil rally looked tired and natural gas witnessed no respite in the fall and corrected for nonstop sixth week. Natural gas has lost about 30% of its value since the year began amid tepid heating demand from what has been described as one of the warmest Northern Hemisphere winters in two decades. Prior to the tumble, Henry Hub’s front-month contract hit a 14-year high of $10 in August 2022. Crude oil prices slipped on Tuesday on concerns about a global economic slowdown and as preliminary data indicated a bigger than expected build in U.S. oil inventories. U.S. business activity contracted in January for the seventh straight month, though the downturn moderated across both the manufacturing and services sectors for the first time since September and business confidence strengthened as the New Year began. The crack spread, a key gauge of refiner profits that measures the difference between crude oil prices and selling prices of finished products, touched $42.41 on Tuesday, the highest since October. The five-year January average is $15.56, an analysis of Refinitiv Eikon data showed.
Cotton oil seed cake fell for third week. Guar counter witnessed bearish trade for second consecutive week due to increased supplies at major trading centers. Castor was in a range due to improve supplies with advancement of harvesting activities. Sluggish export demand is still a major concern for castor oil traders as domestic stocks are surging up with fall in export. In spices, jeera prices dragged down. Turmeric and dhaniya too traded weak. Turmeric was down due to muted demand at local market. Supplies are expected to improve in Telangana with commencement of new crop. Jeera was sluggish as millers and exporters were avoiding bulk buying in wake of new crop season ahead.
“When our country needed food we didn’t outsource it to someone else but instead our countrymen decided that we will grow food for our own people and we have managed to achieve the same,” said Prime Minister Narendra Modi 15th August 2022 in a speech to mark the 75th anniversary of independence. The success achieved in growing its own food shows that once India decides to do something is no force can stop it. However, we have not been able to achieve complete selfsufficiency in certain agricultural products like edible oil, sugar, and pulses.
The Russia-Ukraine war has had an immense impact on the Agri market and pushed prices of agricultural products to historically high levels that raised concerns about global food security. In the times of this crisis, India, apart from being selfsufficient in food production, has tried to meet the food requirements of a large part of the world. But India is still dependent on imports to meet the requirement of many agricultural products.
India’s dependency on edible oil & food grain import
India depends on imports for edible oils and pulses and it is largely self-sufficient in the case of foodgrain and several other items such as milk, fruits and vegetables. India's agricultural and allied imports during 2019-20 were Rs.1.47 lakh crore, and the corresponding figures for 2020-21 are Rs.1.58 lakh crore.
India’s dependence on imported edible oil has remained at around 65-70 percent. In the oil year, 2021-22 (December-November), India imported 140.3 lakh tonnes of edible oil, up from 131.3 lakh tonnes in 2020-21. Despite the government’s effort to decrease the edible oil dependency on the world, India will still have to import 72 lakh tonnes of edible oil at the value of ₹70,000 crore in 2030-31, which would be 23 per cent of the total requirement of 300 lakh tonnes edible oils.
Other major agri-imports are fresh fruits, pulses, spices and cashew. Together, these five products accounted for 79.4 per cent of India’s total agri-imports.
The country imports around 15% of annual pulses consumption. India’s pulses imports rose 9.44 per cent to about 26.99 lakh tonnes (lt) during the financial year 2021-22 over 24.66 lt in 2020-21. As per the DGCIS data, the imports rose by around 39 per cent in value terms to ₹16,627 crore (about $2.22 billion) during 2021-22 over ₹11,937 crore ($1.61 billion) the previous year.
Import of Cotton
India has been the largest producer and exporter of cotton but about 5% to 10% of cotton has been imported from Egypt, Sudan, USA and other origins, largely of varieties not produced/ produced less in India such as Extra Long Staple Cotton and contamination free cotton.
Import of Spices
In spices, India happens to be both a large importer ($1.3 billion in 2021-22) and exporter ($3.9 billion). There has been a rising trend in imports of pepper, cardamom and other traditional plantation spices from countries such as Vietnam, Sri Lanka and Indonesia.
Indian Rupee was largely traded in a range between 81.40 - 81.65 in a dollar amid corporate flows continued to support the rupee around 81.50 odd levels. At the same time, Asian currencies are performing too as markets are optimistic that the Fed may go for a 25 bps hike next week. The US dollar broadly fell 1.4 percent in January against half a dozen major currencies, leaving it on track to record its fourth-straight monthly decline. It is now trading at levels last seen in May 2022. Going forward rupee may trade in a wide range between 81.20 to 82.25 in a Union budget and FOMC week. The euro is headed for a 0.17% rise against the dollar since last Friday, in its third straight winning week. Markets broadly expect the Fed to increase interest rates by 25 basis points on Wednesday, a step down from a 50 bps increase in December. Meanwhile, the ECB committed to raising its key rate by half a percentage point the following day. The run-up in euro will continue. While sterling remains near a seven-month peak of $1.2475 as the Bank of England faces the challenge of controlling inflation without pushing the economy into a deep recession. We will slightly stay negative in the pound in the coming days unless the US dollar does not dive sharply.
USDINR (FEB)is trading between its major Exponential Moving Average indicating sideways trends for short term view. The Pair has major support placed around 81.00 levels while on higher side resistance is seen around 82.30 levels. The 21-day Exponential Moving Average of the USD/INR is currently around 81.03 Levels. On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 40.90.
One can sell on bounce near 81.80 for the target of 82.30 with the stop loss of 80.80.
GBPINR (FEB)is trading above its major Exponential Moving Average indicating upwards trends for short term view. The pair has major support placed around 99.90 levels while on higher side resistance is seen around 101.90 levels. The 21-day Exponential Moving Average of the GBP/INR is currently around 100.31. On the daily chart, the GBP/INR has Relative Strength Index (14-day) value of 59.14.
One can buy on dip near 101.00 for the target of 102.00 with the stop loss of 100.50.
EURINR (FEB) is trading above its major Exponential Moving Average indicating upwards trends for short term view. The pair has major support placed around 87.98 levels while on higher side resistance is seen around 89.75 levels. The 21-day Exponential Moving Average of the EUR/INR is currently around 88.46. On the daily chart, the EUR/INR has Relative Strength Index (14-day) value of 59.00.
One can buy on dip near 88.75 for the target of 89.75 with the stop loss of 88.25.
JPYINR (FEB) is trading between its major Exponential Moving Average indicating sideways trends for short term view. The pair has major support placed around 61.61 levels while on higher side resistance is seen around 64.03 levels. The 21-day Exponential Moving Average of the JPY/INR is currently around 63.00. On the daily chart, the JPY/INR has Relative Strength Index (14-day) value of 53.50.
One can sell on bounce near 63.25 for the target of 62.25 with the stop loss of 63.75.
Gautam Adani plans to sell shares to the public in at least five companies between 2026 and 2028, to help the his port-to-power conglomerate improve its debt ratios and widen the investor base. “At least five units will be ready to go to the market in the next three to five years,” Jugeshinder Singh, Adani Group chief financial officer said in an interview. He said Adani New Industries Ltd., Adani Airport Holdings Ltd., Adani Road Transport Ltd, AdaniConnex Pvt Ltd, and the group’s metals and mining units would become independent units. Singh said businesses such as the airport operator are consumer platforms servicing nearly 300 million customers and need to operate on their own and manage their capital requirements for further growth. He said the businesses would need to show they can clear the basic tests of independent execution, operations and capital management before a formal demerger can be implemented. “Scale is already there for the five units,” Singh said. The “airport business is already independent, while Adani New Industries is going strong on the green energy side. Adani Road is demonstrating new build-operate-transfer models to the nation, while the data center business will grow further. Metals and mining would cover our aluminum, copper and mining services.”
Rashi Peripherals, an information and communications technology products distributor, has filed the draft red herring prospectus with the capital markets regulator Sebi to raise Rs 750 crore through an initial public offering (IPO). The public issue will be entirely a fresh issuance of shares and there is no offer-for-sale component. The company will use the proceeds to repay debt (Rs 400 crore), meet working capital requirements (Rs 200 crore) for general corporate purposes. Rashi Peripherals may also consider raising Rs 150 crore through private placement of equity shares. If the company raises funds in a pre-IPO placement, the fresh issue size will be reduced accordingly, it said. The company has little more than Rs 1,000 crore of debt as of September 2022. Incorporated in 1989 by Krishna Kumar Choudhary and Sureshkumar Pansari, Rashi Peripherals operated two verticals through 50 branches and 62 warehouses, covering 730 locations in India, as of September 2022. Under the personal computing, enterprise and cloud solutions (PES) vertical, the company distributes personal computing devices, enterprise solutions, embedded designs & products and cloud computing. The second vertical is lifestyle and IT essentials under which it distributes graphic cards, central processing units and motherboards, storage and memory devices, lifestyle peripherals and accessories, power equipment and networking and mobility devices
Fintech player PayMate India on Tuesday said it will refile the draft IPO papers with markets regulator Sebi after receiving final authorisation from the RBI to operate as an online payment aggregator (PA). It obtained in-principle approval from RBI for the payment aggregator authorisation in December. PayMate India was asked by the Securities and Exchange Board of India (Sebi) to refile the documents for the Initial Public Offering (IPO) with certain updates. The move may delay the company's initial share sale. According to sources, the company was asked to update DRHP with final payment aggregator authorisation and other material updates if any. Following our receipt of in-principle approval from RBI for the Payment Aggregator (PA) authorisation recently. We will be in a position to submit the mandatory SAR (System Audit Report) by the first or second week of February," the company said in a statement. SAR is a part of the standard operating protocol to get the final approved PA authorisation from the Reserve Bank of India (RBI).
The Securities and Exchange Board of India (Sebi) has given a go-ahead to Avalon Technologies’ initial public offering (IPO) of shares worth Rs 1,025 cr crore. The Tamil-Nadu based company had filed for an IPO in August 2022, which comprises fresh issue of shares worth Rs 400 crore, and an offer for sale by promoters and other entities worth up to Rs 625 crore. The company plans to use the proceeds from the fresh issue to repay outstanding loans availed by it and its subsidiary Avalon Technology and Services Pvt Ltd, and also to meet working capital requirements. As on June 30, 2022, the company’s consolidated debt stood at Rs 312 crore. Avalon Technologies offers fully integrated services to manufacture electronic systems to original equipment manufacturers across India, the US, China, the Netherlands, and Japan. JM Financial, DAM Capital Advisors, IIFL Securities, and Nomura Financial Advisory and Securities are the book running lead managers to the IPO. Meanwhile, Sebi has asked Mumbai-based online payment services provider PayMate India to refile an updated and revised draft red herring prospectus for its initial public offering of shares. The company had initially filed papers for Rs 1,500 crore IPO with Sebi in May 2022. The offer comprised fresh issue of shares worth Rs 1,125 crore and an offer for sale by existing shareholders worth Rs 375 crore.
Learning solutions company Teamlease Edtech plans to scale its platform by partnering with universities, building new products, increasing its employee base, and getting more students, while it puts its fundraising and IPO plans in the backseat. Currently, the platform has 5 million students and partnerships with 40 Indian universities across 16 Indian states and works with 5000 corporates in their upskilling and skilling initiatives, and manages over 200 degrees, diplomas, and certificate programs. In order to scale, the company is looking at partnering with more universities and introducing more products. Sharma said, “ Going forward, we will partner with premium institutes in India, we believe that is a place where a lot of newer programs can be bought in, in a hybrid mode of learning.” In a bid towards the same, it has partnered with IIT Patna for an online apprenticeship program and is in talks with various other institutes. The platform plans to introduce more products that will aid the reskilling and upskilling needs inline with the evolving tech industry. “Technology is shifting rapidly, all organisations are looking at digitisation and transformation. This generates a huge need for reskilling and upskilling with newer skill needs, and we will be working towards capitalising on this opportunity,” Sharma said.
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Inflow in gold exchange traded funds (ETFs) plunged by 90% to ₹459 crore in 2022 due to rising prices of yellow metal, increasing interest rate structure coupled with inflationary pressures. This was way lower than inflow of ₹4,814 crore in the segment during 2021 and ₹6,657 crore in 2020, data with Association of Mutual Funds in India showed. But the asset base of gold ETFs and investors' account or folio numbers rose in 2022 from preceding year. "A rising price (of gold) puts some pressure on investors, with people holding back investments," Kavitha Krishnan, senior analyst manager research, Morningstar India, said.
WhiteOak Capital Mutual Fund today announced the launch of its new fund offer (NFO) - ‘WhiteOak Capital Balanced Advantage Fund’. The NFO will be open from January 20 to February 3rd. This is an open-ended dynamic asset allocation scheme investing in equities (65-100%), arbitrage (0-50%), and debt/cash in the range of 0-35% with weight of net equities in the range of 30-80%. The scheme will be benchmarked against BSE Sensex TRI. According to the press release, the fund house’s proprietary model will provide broad guidance regarding the relative valuation levels and scope of the asset allocation opportunities in the market. The fund house said that the model will help earn better returns by: reducing downside during a falling market, providing reasonable participation in a rising market and providing a stable investment option under various market conditions.
Tata Asset Management has launched the Tata Multicap Fund, an open-ended equity scheme investing across large cap, mid cap, small cap stocks. The New Fund Offer (NFO) opens for subscription on January 16 and closes on January 30. Thereafter the scheme re-opens for continuous sale and repurchase after allotment. The scheme will be benchmarked against Nifty 500 multicap 50:25:25 total returns index and will offer two plans - regular and direct. The fund will be managed by Rahul Singh (Equity), Tejas Gutka (Equity), Murthy Nagarajan (Debt) & Arvindkumar Chetty (Overseas). “Tata Multicap Fund focuses on combinations - across Market Caps, Strategies, Themes and Sectors with Growth at Reasonable Price or GARP as the underlying philosophy aiming to improve the risk adjusted returns of the overall portfolio and potentially provide a smoother journey to the investor. We believe that the Tata Multicap fund can be well paced to capture the potential of a broad-based economic growth outlook for India over next 3-5 years,” says Rahul Singh, CIO - Equities, Tata Asset Management.
IDFC Asset Management Company has announced the appointment of Manish Gunwani as Head - Equities. In this role, Gunwani will have overall responsibility for equity fund management for the fund house. Manish Gunwani has over 25 years of experience and was the Chief Investment Officer - Equities at Nippon India Mutual Fund. Gunwani also served as the Deputy CIO (Equities) at ICICI Prudential AMC. Gunwani graduated from IIT Madras and has a postgraduate diploma in management from IIM Bangalore. “IDFC AMC is amongst the top 10 AMCs in the country and commands respect and recognition among investors and distribution partners alike. I look forward to joining the team and being part of the next phase of growth for the franchise,” said Manish Gunwani.
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