In the weak gone by, lobal stock market witnessed a volatile session as investors were cautious amid the ongoing conflict between Israel and Palestinian group Hamas in the Middle East. As of now the Israel-Palestine conflict has shifted focus to the global macro-economy. Federal Reserve minutes released on Wednesday showed its officials regarded the US economy’s outlook as uncertain in policy meeting held on September 19-20. All Fed policymakers had agreed that the central bank should proceed carefully on rate decisions, and incoming data would help determine whether another hike was needed in coming months, said the minutes. Data from US showed that Consumer Price Index (CPI) held steady in September with prices increasing at a slightly faster pace than economists expected. Consumer prices rose 3.7% over last year in September, matching August's increase. On a month-over-month basis, consumer prices rose 0.4%. In Europe, the stock market rally was bolstered by data from the United Kingdom, with reports showing economic growth in August, although some sectors still lagged. The British economy rose 0.2% in gross domestic product terms in August compared to the previous month, exceeding estimates of less than 0.1%. This GDP growth helped reverse a slide in the economy that began in July with a 0.5% contraction. While China's exports and imports both fell in September from a year earlier, though they contracted at a slower pace even as global demand remained muted.
At home, domestic markets also witnessed volatile trade following some negative global cues including the Israel-Palestine conflict amid selling by foreign institutional players. To note, inflows into equity schemes dipped 31 per cent in September to Rs.14,019 crore against Rs.20,245 crore in August. Meanwhile, India’s economy received a dual boost as retail inflation cooled in September, retreating within the central bank’s comfort zone. Simultaneously, factory output surged into double-digit growth territory in August, scaling a 14-month high, indicating an upswing in economic momentum. The fact that the Indian CPI dropped to 5.01% and the IIP data reached its best level in 14 months is encouraging for the Indian markets. However, the impact of war in Middle Eastern region will keep the Indian central bank vigilant.
On the commodity market front, Commodity markets experienced persistent selling pressure as the CRB index ended the week on a bearish note for the fourth consecutive time. The Dollar Index slipped below the 106 mark after reaching a high of 107.34. Meanwhile, the US 10-year Treasury yield dropped below 4.6% after reaching multi-year highs of 4.88%. Safe-haven demand increased in the bullion market due to the conflict between Hamas and Israel. US gold prices rebounded strongly after hitting a low of $1823.5 in recent trading sessions, closing near $1890. Silver followed a similar trajectory, recovering from a low of $20.85 to $22.35 in just two weeks. Gold and silver can trade in a range of 57000-59500 and 68500-71500 respectively. Base metals may trade with bearish bias due to persistent demand concern in top consumer China. 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. Inflation Rate of New Zealand, Unemployment rate of UK, ZEW Economic Sentiment Index of Germany and Euro Area, Core Inflation Rate and Inflation Rate of Canada, Australia and UK, Retail Sales of US, GDP Growth Rate and Building Permits Prel of US, etc are few important data scheduled this week which will give further direction to the commodities prices.
SMC Global Securities Ltd. (hereinafter referred to as “SMC”) is a registered Member of National Stock Exchange of India Limited, Bombay Stock Exchange Limited and its associate is member of MCX stock Exchange Limited. It is also registered as a Depository Participant with CDSL and NSDL. Its associates merchant banker and Portfolio Manager are registered with SEBI and NBFC registered with RBI. It also has registration with AMFI as a Mutual Fund Distributor.
SMC is a SEBIregistered Research Analyst having registration number INH100001849. SMC or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing /dealing in securities market.
SMC or its associates including its relatives/analyst do not hold any financial interest/beneficial ownership of more than 1% in the company covered by Analyst. SMC or its associates and relatives does not have any material conflict of interest. SMC or its associates/analyst has not received any compensation from the company covered by Analyst during the past twelve months. The subject company has not been a client of SMC during the past twelve months. SMC or its associates has not received any compensation or other benefits from the company covered by analyst or third party in connection with the research report. The Analyst has not served as an officer, director or employee of company covered by Analyst and SMC has not been engaged in market making activity of the company covered by Analyst.
The views expressed are based solely on information available publicly available/internal data/ other reliable sources believed to be true.
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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 strong product portfolio and is focused on new product launches and growth of the products launched over the last few years. It has strong pipeline of Biologicals and Biostimulant products at different stages of development. The company target 18-20% revenue growth with improvement in margins in the current financial year. Thus, it is expected that the stock will see a price target of Rs.4216 in 8 to 10 months’ time frame on two year average P/E of 7.48x and FY24 (E) EPS of Rs. 563.69.
With consumer-focused ranges being one of the focus pillars, the company has a competitive advantage in engineering, facilities and expertise. According to the management of the company, robust demand from sectors such as real estate, auto, and industrials would give good growth to its wires and cables business. The company continues to focus on areas such as cost control, improved asset utilization, reduce debt levels, and overall improvement in productivity is expected to lead to a stronger balance sheet in the years to come. Finolex Cables Limited is well poised to take advantage of any future growth opportunity. Thus, it is expected thatthe stock will see a price target of Rs.1166 in 8 to 10 months’ time frame on current P/E of 28.05x and FY24 (E) earnings of Rs.41.57.
The stock closed at Rs.1558.40 on 13th October, 2023. It made a 52-week low of Rs.1171.35 on 31st March, 2023 and a 52-week high of Rs.1791.20 on 02nd November, 20223. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs1420
Price wise the stock has been witnessing lot of swings on both sides from last few months as prices were seen fluctuating around its 200 days exponential moving average on daily charts. At current juncture, the stock has formed an “Inverted Head & Shoulder” pattern in daily interval on the technical front and has managed to give fresh breakout above the neckline of the pattern formation as well. The sudden rise in volumes along with rise in a price suggests a long build up into a stock. Therefore, one can buy the stock in the range of 1550-1560 levels for the upside target of 1775-1795 levels with SL below 1400 levels.
The stock closed at Rs.1688.20 on 13th October, 2023. It made a 52-week low at Rs.1005 on 29th March, 2023 and a 52-week high of Rs.1769 on 28th July, 2023. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs.1473.
After making its 52 week low of 1005 in month of March 2023, the stock witnessed almost a V shape recovery in prices and once again surpassed above its key resistance level of 1500 in short span of time. At the current juncture, the stock has been consolidating in a broader range of 1500-1750 from last more than ten weeks. Technically, the stock has managed to give a fresh break above its falling trend line of downward sloping channel on short term charts while a good base build up has been seen developed at 1500 level as strong support zone. Therefore, one can buy the stock in the range of 1680-1690 levels for the upside target of 1980-2000 levels with SL below 1500 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 exhibited mixed performance over the past week. The Nifty recorded a modest 0.5% gain, while the Banknifty experienced a slight 0.16% loss. Among the sectors, PSU banks, IT and consumer durables faced declines, indicating a shift away from these segments. On the flip side, realty, auto and FMCG sectors demonstrated notable gains, reflecting a preference for these growth-oriented sectors. In Nifty, the highest call open interest was concentrated at strikes 19,800 and 20,000, signifying potential resistance levels. Conversely, the highest put open interest was recorded at strikes 19,700 and 19,600, suggesting significant support zones. For the Banknifty, the highest call open interest was observed at strikes 44,500 and 44,600 whereas the highest put open interest was concentrated at strike 44000. In terms of Implied Volatility (IV), call options for Nifty settled at 9.83%, while put options concluded at 10.43%. The Nifty VIX, which serves as a gauge of market volatility, closed the week at 10.62%. The Put-Call Ratio Open Interest (PCR OI) stood at 1.29 for the week. The market is currently at a critical juncture with a delicate balance between support and resistance levels. We expect Nifty to trade in broader range of 20,000 and 19,500 whereas either side breakout can give further directional momentum to the index.
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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 traded down for most part of the last week following muted demand at physical market. Stockists and millers are avoiding bulk buying in expectation of further fall in prices in wake of improved crop condition in major producing states. Weather condition has been favorable for crop growth that will beneficial for yield. However, shrinking arrivals will keep prices stable and cap the losses. Overall arrivals have been down in Oct as compared to last year. About 3.4 thousand tonnes of turmeric arrived at major APMC mandies during first 10 days of Oct’23 as compared to 4.2 thousand tonnes of previous year. 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. Additionally, there is a support for improved export opportunities, as turmeric exports have increased by 25% due to rising demand in both developed and emerging nations. Turmeric prices are likely to trade with negative bias may slip towards 12800 with resistance of 15900 levels.
Jeera futures kept its downfall intact for fifth consecutive week mainly due to prevailing concerns over sluggish exports. Moreover, subdued buying in domestic market also weighed on market sentiments as bleak export enquires prompted stockists to release their stocks on every jump in prices. Jeera prices have slipped about 19% so far from the record high of 65900 ruled near 55000 level. Going forward, prices are likely to track the upcoming sowing activities of Jeera, which is likely to commence in Oct. Adequate soil moisture, and favorable weather condition for crop will boost the overall sowing activities in coming days. Subdued export of jeera is still major concerns for exporters that will weigh on prices further. Jeera export dropped in Sep’23 as prices turned uncompetitive in global market after sharp gains. Global demand of Indian jeera slumped as most of buyers preferred other destinations like Syria and Turkey due to higher prices of Jeera in India. India exported about 7.1 thousand tonens of Jeera in July’23 as compared to 19 thousand tonnes of previous year. Total jeera export during Apr’23-Jul’23 was reported at 57.5 thousand tonnes against the 63.3 thousand tonnes of previous year. Export is likely to remain down in upcoming months as per the export seasonality. However, limited availability of quality crop in the market will cap the losses. Jeera Prices are likely to trade in range of 51800-59500 levels.
Dhaniya prices are likely to trade down on sluggish buying at prevailing levels. Adequate stocks at major trading centers weighed on market sentiments. Going forward, prices will track the upcoming sowing activities, which is likely to start later in Oct. Weather condition is looking favorable for sowing that will lead to commencement of sowing activities on positive note. However, exports demand has been active and exports are expected to improve further. Dhaniya export rose significantly in year 2023 due to supply concerns on other producing countries. Dhaniya prices are likely to trade in range of 6400-7300.
Gold prices had a strong week, marking their most significant gain in seven months. This surge was driven by escalating tensions in the Middle East and the belief that U.S. interest rates might have reached their peak, as investors closely analyzed the latest inflation data. U.S. Treasury yields and the dollar changed course, reversing previous gains, which had previously weighed on gold due to increase in U.S. consumer prices in September. Just before the inflation data was released, gold had already reached a two-week high. This boost was a result of a more dovish policy stance taken by influential policymakers who acknowledged that the recent rise in U.S. Treasury yields could make further interest rate hikes less imperative. This week saw gold increase by more than 2%, marking its most substantial gain since mid-March. Investors also took into account the recent inflation figures from China, the largest consumer of gold. These figures indicated a slowdown in consumer prices and a slightly faster decline in factory-gate prices than anticipated for the month of September. Both of these indicators highlighted the persistent presence of deflationary pressures in the market. European Central Bank policymakers expressed cautious optimism on Thursday that inflation was on its way back to 2% even without more rate hikes. Gold is facing resistance near $1900, and breaking above will set the direction. $1960 is the next resistance. If it fails, expect a drop to $1800. Silver will likely follow gold and trade between $20.500 and $22.500. In the upcoming week, gold prices on MCX are expected to fluctuate within the range of 56,000 to 59,000, with potential movements in both directions. Similarly, silver is anticipated to trade in a range of 67,500 to 71,500.
Crude oil prices declined following the release of the weekly EIA report, which indicated various factors contributing to a loosening of the U.S. oil market and a subsequent drop in prices. The report showed a surge in U.S. oil inventories, with a significant increase of 10.2 million barrels due to reduced demand from refineries operating at 85.7% capacity, coupled with record production and decreased exports. The strengthening U.S. dollar also exerted downward pressure on prices, as higher-than-expected inflation figures heightened expectations for another Federal Reserve interest rate hike. The IEA revised down its 2024 demand growth forecast to 0.88 million barrels per day (bpd) from its prior projection of a one-million bpd increase. The IEA highlighted reduced U.S. gasoline consumption, indicating demand erosion amid elevated prices, while boosting its 2023 demand forecast by 0.1 million bpd, driven by robust demand growth in China, India, and Brazil. OPEC's Monthly Oil Market Report, on the other hand, maintained its 2023 and 2024 demand forecasts, anticipating an increase of 2.4 million bpd this year and 2.2 million bpd in 2024. Ahead in the week prices may continue to witness bot side movements where it may find support near 6650 and could face resistance near 7280. Following a bullish weekly EIA storage report that exceeded expectations and historical averages, natural gas prices displayed a lateral, sideways movement. The front-month contract briefly reached an eight-month high above $3.400 per million British thermal units (mmBtu) immediately after the supportive report's release. However, it later retreated and was currently down by 0.3% at $3.365/mmBtu. In the upcoming week, it is anticipated that prices will persist within the range of 260 to 290 levels.
Base metals may trade with bearish bias due to persistent demand concern in top consumer China. 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. Chinese property giant Country Garden warning its ability to meet offshore debt obligations faced "significant challenges". Chinese policymakers are weighing a new round of stimulus with the issuance of at least 1 trillion yuan ($136.95 billion) of additional sovereign debt for spending on infrastructure, said a Bloomberg report. Copper may trade in the range of 685-720 levels. China's copper imports fell 5.8% in September from a year earlier, customs data showed, as strong domestic production and limited demand weighed down appetite for overseas supplies. Global miner BHP reached a preliminary deal with the supervisors' union at its Escondida mine in Chile, avoiding a strike at the world's largest copper deposit, the company announced. According to the International Copper Study Group, the global refined copper market swung to a surplus of 213,000 metric tonnes in the first six months of 2023 from a 196,000- tonnes deficit in the same period last year. Zinc can trade in range of 210-230 level. Lead can move in the range of 180-190 level. Aluminium can trade in the range of 195-215. Steel long (Nov) is likely to trade in the range of 44000-47000 level and sell on rise should be strategy.
Cotton prices are likely to trade down on increased supplies. Arrivals have started picking with advancement of harvesting activities that will keep prices under pressure. The Progressive Arrival of Cotton were reported at 6.14 lakh bales in first 10 days of crop year 2023-24 which started in Oct’23 as per Cotton Corporation of India. Meanwhile, Cotton Association of India (CAI) released its final estimate of crop production for the 2022- 23 (October-September) season and pegged it slightly higher at 31.8 million bales (1 bale=170 kg) from its previous estimate of 31.1 million bales in July that led to upwards revision of ending stocks from 2.32 million bales to 2.89 million bales. Apart from that, prices will track the latest World Agricultural Supply and Demand Estimates released by USDA that showed downward revision in beginning stocks by 10.3 million bales to 82.8 million bales. Ending stocks also dropped from 89.96 million bales to 79.92 million bales. Cotton MCX Nov prices are likely to trade in range of 57400-60500. Similarly, Kapas Apr’24 futures are likely to trade in range of 1580- 1690 level. Profit booking is likely to be seen in cotton seed oil cake (Cocud) that pull the cocud prices to 2680 whereas resistance is seen at 2920 level.
Guar seed Nov futures are expected to trade sideways to higher. Arrivals of new crop have started picking up and likely to increase further in Rajasthan. Stockists are showing buying interest at prevailing levels in wake of weaker production estimates. Lower production and expectation of rise in seasonal demand of gum in Oct-Dec is likely to help prices to trade on positive bias ahead. Guar seed prices are likely to honor the support of 5390 and expected to move up towards the resistance of 6150 levels. Gum prices are likely to trade in range of 10300- 12600 levels.
Mentha oil prices are likely to trade mixed to higher on shrinking supplies. Short covering can be seen any time in the market due to supply concerns. However, sluggish export demand of menthol will cap the gains. 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 find support near 890 and resistance can be seen at 970 levels.
Castor seed prices are likely to trade down due to muted domestic demand. Improved crop condition in Gujarat and higher production prospects supported by rise in area under castor seed in year 2023 is likely to weigh on market sentiments. Castor seedNov prices are likely to trade in range of 5830-6200 levels.
It closed at Rs. 699.90 on 12th Oct 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs725.288. On the daily chart, the commodity has Relative Strength Index (14-day) value of 38.485. Based on both indicators, it is giving a sell signal.
One can sell near Rs.710 for a target of Rs. 685 with the stop loss of 725.
It closed at Rs. 278.50 on 12th Oct 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs.256.95. On the daily chart, the commodity has Relative Strength Index (14-day) value of 63.156. Based on both indicators, it is giving a sell signal.
One can sell below Rs.268 for a target of Rs.240 with the stop loss of 290.
It closed at Rs.5646.00 on 12th Oct 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs.6194.10 On the daily chart, the commodity has Relative Strength Index (14-day) value of29.103. Based on both indicators, it is giving a buy signal.
One can buy near Rs.5600 for a target of Rs. 5900 with the stop loss of 5450.
NOTE: *M.High / M.Low stands for Monthly High / Monthly Low
Commodity markets experienced persistent selling pressure as the CRB index ended the week on a bearish note for the fourth consecutive time. The Dollar Index slipped below the 106 mark after reaching a high of 107.34. Meanwhile, the US 10-year Treasury yield dropped below 4.6% after reaching multi-year highs of 4.88%. Safe-haven demand increased in the bullion market due to the conflict between Hamas and Israel. US gold prices rebounded strongly after hitting a low of $1823.5 in recent trading sessions, closed near $1890. Silver followed a similar trajectory, recovering from a low of $20.85 to $22.35 in just two weeks. Crude oil prices initially surged due to a sudden attack by Hamas on Israel but eventually gave up their gains, closing in negative territory for the week. In contrast, natural gas remained stable and continued to attract traders. Oil prices extended losses for a third session, dragged down by a larger-than-expected crude and gasoline stock U.S. crude oil stockpiles swelled by about 12.9 million barrels, according to market sources citing American Petroleum Institute figures on Wednesday. This was much higher than the 500,000- barrel gain expected by analysts in a Reuters poll. Gasoline inventories also rose by 3.6 million barrels. China reopened its markets last week, but it had a limited impact on industrial metals, most of which traded within a range with a downward bias. Policymakers in China are weighing the issuance of at least 1 trillion yuan ($137 billion) of additional sovereign debt for spending on infrastructure such as water conservancy projects, Bloomberg News reported. But also weighing on industrial metals demand perspective was the housing crisis in the world's second largest economy. China's largest private property developer Country Garden warned on Tuesday about its inability to meet offshore debt obligations.
In the agricultural sector, castor seed prices ended in the red for the third consecutive week, hitting a low of 6004. Cotton oilseed cake prices saw an increase for the third consecutive week, approaching the 2850 level. Cotton candy and kapas futures were affected by bearish sentiment due to increased arrivals in the market. The guar market received much-needed support from lower production estimates. In the spices segment, jeera prices experienced a sharp decline, falling from 62500 to 54000 in just three weeks due to sluggish export demand. Jeera exports dropped in September 2023 as prices became uncompetitive in the global market following significant gains. Global demand for Indian jeera slumped as most of buyers preferred other destinations like Syria and Turkey due to higher prices of Jeera in India. Turmeric also ended the week on a weak note and dhaniya remained in a range with a bearish bias. Mentha followed a similar bearish trend.
The Dollar Index has been on an uptrend since mid-July of this year, starting at levels around 99.20. Recently, it reached above 107 but experienced a correction,retracing to approximately 105.50 before finding support near 105.30 just before the weekend. This support was bolstered by hotter-than-expected US consumer inflation data,reinforcing the expectation thatthe Federal Reserve will maintain higherinterestrates. The US annual inflation rate remained steady at 3.7%, slightly surpassing the market consensus of 3.6%, while the monthly rate eased less than expected, coming in at 0.4%. In addition, the minutes of the latest Fed meeting, released on Wednesday, revealed the central bank's intention to keep borrowing costs atrestrictive levels for an extended period to bring inflation back within the 2% target. However, Fed officials also acknowledged uncertainties in the economy, oil prices, and financial markets, which argue for a cautious approach when determining the extent of additional policy tightening that may be appropriate. Since December 2022, the Dollar Index had been trading below the significant 200-day Exponential Moving Average (EMA). However, a few weeks ago, the index broke above this critical indicator and has remained consistently above it, confirming the uptrend for the short to medium term. This level is now poised to act as a major support, currently situated near 103.65. The USD/INR pair has been consolidating within the range of 83.00 to a record high of 83.40 forthe pastfew weeks. This range is likely to act as a strong support and resistance zone in the upcoming sessions.Abreakoutin either direction from this range will provide guidance on the pair's future trajectory. As long as the pair remains within this range, a sideways trend is expected to persistfor a few more sessions.
USDINR (OCT) pair is currently in an Mild Bullish trend as trading between its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 83.22. However, the pair is in Neutral territory with a Relative Strength Index (14-day) value of 55.64 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 Mild Bearish trend as trading below its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 102.25. However, the pair is in Neutral territory with a Relative Strength Index (14- day) value of 42.8 on the daily chart. Major support is seen around 100.35 levels, while resistance is expected near 102.7 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 Mild Bearish trend as trading below its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 88.4. However, the pair is in Neutral territory with a Relative Strength Index (14-day) value of 41.51 on the daily chart. Major support is seen around 87.2 levels, while resistance is expected near 88.75 levels.
One can sell near 88.2 for the target of 87.2 with the stop loss of 88.7
JPYINR (OCT) pair is currently in an Bearish trend as trading below its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 56.24. However, the pair is in oversold territory with a Relative Strength Index (14-day) value of 35.83 on the daily chart. Major support is seen around 55 levels, while resistance is expected near 56.5 levels.
Gujarat-based city gas distribution company IRM Energy has fixed the price band at Rs 480-505 per share for its maiden public issue which will open on October 18. The Cadila Pharmaceuticals-backed company plans to raise Rs 545.40 crore from the public offer of 1.08 crore equity shares at the upper price band. The IPO comprises only a fresh issue component and there is no offer-for-sale portion, hence the utilisation of entire issue proceeds will take place for the company. The offer will be open for anchor investors for a day on October 17, while the issue closing date has been fixed as October 20. The total market capitalisation of the company at the upper price band comes to Rs 2,073.5 crore. Investors can bid for a minimum of 29 equity shares and in multiples of 29 shares thereafter. The minimum application size for retail investors would be Rs 14,645 for 29 shares and their maximum investment would be Rs 1,90,385 for 377 shares as they can't exceed investment beyond Rs 2 lakh in the IPO. The company has reserved 2.16 lakh shares worth Rs 10.91 crore for its employees who will get those shares at a discount of Rs 48 per share to the final issue price. It has also allotted half of the quota of net issue (excluding employees shares) for qualified institutional buyers, 15 percent for the high net-worth individuals and, the remaining 35 percent for retail investors.
Ahmedabad-based Rajgor Castor Derivatives' initial public offering (IPO) opens for subscription on October 17, the third issue to open this month. The price band for the offer has been fixed at Rs 47-50 a share. The castor oil manufacturer is looking to raise Rs 47.8 crore at the upper price band. The offer comprises a fresh issue of 88.95 lakh shares worth Rs 44.48 crore and an offer-for-sale of 6.66 lakh shares worth Rs 3.33 crore by promoters. The anchor book will open for a day on October 16 and the offer closes October 20. The fresh issue proceeds will be used to meet working capital requirements amounting to Rs 29.92 crore and the remaining funds will be used for general corporate purposes, the company has said. The Rajgor family, which is in the business of manufacturing castor oil, castor oil cake, high-protein oil cake in along with trading in agro-commodity, follows the B2B business model. On the financials front, Rajgor Castor Derivatives recorded healthy earnings growth in the past fiscal years, with net profit rising sharply from Rs 0.52 crore to Rs 5.54 crore on a year-on-year basis. Revenue jumped to Rs 428.78 crore from Rs 39.67 crore. In the quarter ended June FY24, the net profit stood at Rs 1.93 crore on a revenue of Rs 112.7 crore. The trading will commence on the NSE Emerge platform from October 31. Beeline Capital Advisors is the merchant banker to the issue, while Link Intime India is the registrar to the offer.
In line with strong subscription numbers, Plaza Wires made a big bang debut on the bourses at 55.56 percent premium to issue price. Plaza Wires manufactures and sells wires, LT aluminium cables, and FMEG products under brands such as Plaza Cables, Action Wires, and PCG. The company raised Rs 71.28 crore via public issue to be used mainly for setting up a new unit for house wires, fire-resistant wires and cables, aluminium cables, and solar cables to expand the product portfolio. Plaza Wires' net profit rose 26 percent to Rs 7.51 crore for the year ended March 2023 from Rs 5.95 crore a year ago. Revenue from operations grew 3.2 percent to Rs 182.4 crore from Rs 176.7 crore in this period. The comparable peers in the listed space for Plaza Wires competes are Cords Cable Industries, V-Marc India, Dynamic Cables, and Paramount Communications. Plaza Wires generates a significant portion of sales from its operations in certain geographical regions and any adverse developments in these regions could affect its revenue, according to Stoxbox. The other concern is the industry segment in which the business operates is highly fragmented and faces competition from large players that may affect its business operations and financial conditions.
Sharp Chucks and Machines listed at a 13.8 percent premium overthe IPO price on October 12. The stock opened at Rs 66 againstthe issue price of Rs 58 on the NSE SME. The issue received a decent response from investors as it was subscribed 54.2 times. Retail investors remained at the forefront, buying 63.69 times while high net-worth individuals bought 38.76 times. Sharp Chucks raised Rs 16.84 crore via IPO.The offer had a fresh issue of 9.75 lakh shares worth Rs 5.66 crore and an offer-for-sale of 19.28 lakh shares, amounting to 11.19 crore. The price band forthe issue which opened for subscription on September 29 and closed on October 5, was fixed at Rs 58. Fedex Securities was the book-running lead manager for the issue while Skyline Financial Services was the registrar. Nikunj Stock Brokers was the market maker. The company will use the IPO proceeds to fund working capital requirements and general corporate purposes.Ajay Sikka andGopika Sikka are the promoters ofthe company. Pre-issue, promoters and the promoter group held 68.66 percent and 11.62 percent and postissue their stake came down to 62.44 percent and 10.57 percent,respectively. Sharp Chuck and Machines manufactures forging and graded casting machined components of tractors and other automobiles, power chucks, lathe chucks, drill chucks, and other machine tool accessories for tractors, automobiles, material handling & earth moving equipment,railways, defence, machine tools and others.
Mufti brand jeans owner Credo Brands Marketing and Ahmedabad-based retail jeweller RBZ Jewellers have received approval from the capital markets regulator Sebi to go ahead with their IPO plans. Credo Brands is planning to raise funds only via an offer-for-sale (OFS) of 1.96 crore equity shares and there is no fresh issue component in the issue. In total, there are eight selling shareholders in the OFS including promoters Kamal Khushlani, Poonam Khushlani, and Sonakshi Khushlani. The Sebi has issued observation letter on the draft papers filed by the company, on October 6. In Sebi's parlance, obtaining observation means the company can start the IPO launch process. Mumbai-based Credo, which has filed IPO papers with the regulator on July 13 this year, claimed to be among the largest homegrown brands in the mid-premium and premium men's casual wear market in India in terms of market share in FY22. DAM Capital Advisors, ICICI Securities, and Keynote Financial Services are the book running lead managers to the issue, while Link Intime India is the registrar to the offer. Meanwhile, RBZ Jewellers, which had filed draft papers with the Sebi in June this year, intends to raise funds only via fresh issue component comprising 1 crore shares, and there is no offer-for-sale portion in the offer. This means the entire issue proceeds, excluding IPO expenses, will go to the company. The gold jewellery manufacturer will spend Rs 80.75 crore for working capital requirements through its fresh issue funds, and the remaining money for general corporate purposes.
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