In the weak gone by, global stock markets extended gains on the back of the recent release of lower-than-anticipated US CPI numbers, resulting in a significant drop in the US dollar index and a moderation in US bond yields. Wednesday's CPI report showed U.S. consumer prices registered their smallest annual increase in more than two years. Fall in inflation boosted optimism that the US Federal Reserve will not need to hike interest rates after an expected 25 basis points rate increase later this month. ECB policymakers said at their last meeting has said that the European Central Bank may need to continue raising interest rates beyond this month to bring inflation back to target. The ECB raised its interest rates to their highest level in 22 years at the June 14-15 meeting and said a ninth consecutive hike was all but guaranteed in July as it predicted inflation would stay above its 2% target through the end of 2025. Chinese consumer price figures fell in June, leaving them almost unchanged from a year earlier, while producer prices slid deeper into negative territory. The weakness implies scope for further monetary policy easing, but also underlines the challenge China faces in reflating its economy and avoiding a deflationary spiral.
On the domestic market front, market saw a decent rally with the benchmark indices Sensex and Nifty hovering around record levels supported by positive global as well as domestic cues. Actually, the strong FII inflows, robust domestic macro-micro factors and expectation of normal monsoon continued to support bulls. The foreign investors have been attracted towards the Indian markets given the strong outlook for the domestic economy. At -4.1% YoY, India's WPI remained in deflationary territory in June. The decline in the index was primarily driven by a drop in fuel and power prices and manufactured product prices. CPI inflation spiking to 4.81% in June from 4.31% in May didn’t come as a surprise since the spurt in vegetable prices was known and the market expected a CPI inflation print above 4.7%. However, the retail inflation still remains within the Reserve Bank of India’s (RBI) tolerance band for the fourth consecutive month. As we are in the earnings season, the market is likely to witness more stock specific action.
On the commodity market front, CRB zoomed up further as many commodities regained strength on fall in US CPI data which rekindle the hope of pause in monetary tightening. CRB crossed 301 mark. Fall in dollar index stimulated buying in commodities. The dollar crashed to its lowest in more than a year on Wednesday after data showed the rise in U.S. consumer prices moderated in June, suggesting the Federal Reserve may have to raise interest rates only one more time this year. Bullion counter shone as safe haven buying returned. AGold and silver can trade in a range of 58800-59800 and 72500-76000 respectively. In energy counter, crude may appreciate further on improving demand amid tight supply. It can move in a band of 6100-6500. If Chinese GDP comes positive then it will give more strength to the base metals prices. GDP of China, Core Inflation Rate and Inflation Rate of Canada and UK, Retail Sales and Building Permits of US, Core Inflation Rate of Euro Area, Employment Change and Unemployment Rate of Australia, Inflation Rate of Japan etc are many important data scheduled this week which will give impact to 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.
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.
According to the management of the bank, it is the strongest quarter with very good growth across all key parameters. Strong business momentum has aided meaningful gains in market share. Asset quality of the bank has been resilient and demonstrates the underwriting, monitoring and collection capabilities of the Bank. As per the management, the bank has reported strong broad based credit growth in Q1FY2024, along with the overall costs been well managed. The bank is comfortably capitalized and liquidity is also supported by a healthy retail deposit base. All these are to benefit the bank to achieve higher credit growth and margin improvement going forward. Thus, it is expected that the stock will see a price target of Rs.156 in 8 to 10 months’ time frame on 1 yr average P/BV of 1.35x and FY24 BVPS of Rs.115.75.
The company has strong order book which indicates sustained business growth visibility going forward. It is also planning monetization of operational assets for unlocking equity and de-leveraging its balance sheet. Its diversification into the metro rail and light rail projects would also help the company to increase its business growth going forward. Thus, it is expected that the stock will see a price target of Rs. 440 in 8 to 10 months’ time frame on target P/BVx of 2.45x and FY24 BVPS of Rs.179.73E.
The stock closed at Rs.405.05 on 14thJuly, 2023. It made a 52- week low of Rs.352 on 17th April, 2023 and a 52-week high of Rs.444.90 on 17thAugust, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs. 402.
Stock has formed a Double Bottom pattern on daily charts around 355 levels and shown steep recovery thereon to once again, reclaiming a momentum towards its 200 days exponential moving average on daily charts. Prices can be seen recovering in a rising channel with formation of higher bottom pattern. The stock has given a fresh breakout above the key resistance level of 400 after a series of prolong consolidation phase. On short term charts, fresh breakout has been observed above the rectangle pattern as well. We expect that the momentum is likely to carry towards higher levels, after a breakout, as rising volumes suggests strength in a current trend. Therefore, one can buy the stock in the range of 400-405 levels for the upside target of 440-450 levels with SL below 375 levels.
The stock closed at Rs.113 on 14th July, 2023. It made a 52-week low at Rs.92.25 on 27th October, 2022 and a 52-week high of Rs.137.45 on 11th October, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs. 108.50.
The Stock has been trading lower since the beginning of the year as prices can be seen fluctuating with series of lower highs on daily and weekly charts. However stock took support around 104 levels and formed a double bottom pattern, once again it regained a momentum above its 200 days exponential moving average on daily interval. On the short term charts, fresh breakout has been observed above the Inverted Head & Shoulder pattern as well. Rising volumes along with the rise in price suggest further recovery into the prices. Therefore, one can buy the stock in range of 111-113 levels for the upside target of 123-124 levels with SL below 104 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.
Charts by Reliable software
Nifty ended the week at a record high and above the key psychological resistance of 19500. On the flip side, Bank Nifty exhibited a weaker performance and closed nearly unchanged line over the week with Nifty registering a gain of over 1%. From the sectorial front, IT and Metal sectors were the primary gainers during the week, while financial services and consumer durables faced downward pressure. As per the derivative data, the highest open interest for call options in Nifty shifted to 19600 from 19500 strike, whereas for put options, the highest open interest concentration remained at 19500 strike, with significant put writing at lower strike prices as well. Based on open interest, the current trading range for Bank Nifty is expected to remain in between 45000 to 44500 zone. The implied volatility (IV) for call options concluded at 10.21%, while put options closed at 11.07%. The Nifty VIX, a measure of market volatility, ended the week at 10.94%. The Put-Call Ratio Open Interest (PCR OI) settled at 1.31 for the week. For the upcoming week, it is expected that market is likely to remain buoyant and move towards new all-time highs. Traders are advised to keep focus on stock and sector specific moves as index may remain volatile once again and may witness some choppiness as well.
|
|
|
|
|
**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 witnessed strong gain last week supported by growing concerns of crop damage due to excess rainfall in Maharashtra and in recent days. Sowing season has already been delayed due to slower monsoon progress in June and now heavy rainfall affecting the crop progress adversely in major producing states. Stockists are very active and going for aggressive buying in wake of bleak supply outlook ahead. Area under turmeric is estimated to be down by 15-20% in year 2023 due to monsoon concerns at the time of sowing that is prompting millers and stockists to go for aggressive buying. Spot prices have jumped more than 15% in last 2 weeks and ruling at 10500 at Nizamanbad market. Export demand of turmeric has also improved in recent months that will also support market sentiments. India exported about 39.42 thousand tonnes of turmeric during the time period of Apr-May’23 as compared to 30.9 thousand tonnes of previous year, higher by 28% Y-o-Y. Turmeric Aug contract is likely to trade in range of 9800-13100.
Jeera futures traded mixed to down due to profit booking near psychological level of 60000. In wake of commencement of fresh arrivals in Turkey from August, stockists have started to offload their positions that sparked profit booking at futures platform. Physical demand has been lower as millers are showing lesser interest in fresh buying with slow down in festive and wedding season demand. Forecast of drier weather in Saurashtra and West Rajasthan will lead to rise in arrivals in the market that will put pressure on prices. Losses are likely to be limited as due to tighter inventories with millers. Robust export will also support firmness in prices. Export demand of jeera increased in marketing year 2023-24 as export jumped for 2 consecutive months of Apr-May reported at 47 thousand tonnes as compared to 23 thousand tonnes of previous year. jeera Aug prices are likely to trade in range of 51600 – 61500.
Dhaniya NCDEX Aug prices are likely to trade mixed to down on increased arrivals in the market. Weather condition is looking drier in Rajasthan that will lead to rise in arrivals. Most of the millers are running with heavy stocks that will lead to slow down in buying activities in coming days. However, increased export enquire will cap the major downfall in prices. India exported about 35.4 thousand tonnes during time period of Apr-May’23 against the 6.23 thousand tonnes of previous year. Dhaniya NCDEX Aug futures are likely to trade in range of 6450-7000.
Gold had its best week since April, surging close to a one-month high amidst diminishing expectations of further interest rate hikes in the U.S. This development caused the dollar to plummet to its lowest level in over a year. The waning prospects of additional U.S. interest rate hikes played a crucial role in this surge, causing investors to seek refuge in gold. As a result, the value of the dollar weakened considerably, reaching its lowest point in more than a year. In a surprising turn, the number of Americans filing new claims for unemployment benefits decreased unexpectedly. This unexpected drop suggests that the U.S. labor market remains tight, reflecting a relatively healthy economic environment. However, despite these positive indicators, Federal Reserve Governor Christopher Waller expressed reservations about U.S. inflation. He refrained from declaring the situation resolved and expressed a preference for additional rate hikes later in the year. Waller anticipates an increase in interest rates during the upcoming July meeting, signalling the Fed's commitment to address potential inflationary pressures. The cautious stance of Federal Reserve Governor Waller regarding inflation underscores the ongoing concerns and uncertainties surrounding the U.S. economy. On the technical front, COMEX Gold is hovering near resistance of $1960 a successful break above the level may extend the rally till $1990 whereas if prices failed to sustain above the levels may reverse the trend to bearish. COMEX Silver may trade in the range of $23.200-$26.100. Ahead in the week, gold prices may continue to witness positive move and the possible trading range would be 58500-60000. Silver may trade in the range of 72000-79000 with positive bias.
Crude oil marked its third consecutive week of gains, a streak not seen since April, despite a slight dip in prices on Friday. The increase can be attributed to concerns about supply disruptions in Libya and Nigeria, along with hopes of heightened demand for U.S. crude amidst easing inflationary pressures. In Libya, some oilfields were shut down due to protests by a local tribe over the kidnapping of a former minister. Additionally, Shell suspended loadings of Nigeria's Forcados crude oil due to a potential leak at a terminal. These disruptions, coupled with declining Russian crude exports, have fuelled expectations of a tightening oil market. The recent agreement between Saudi Arabia and Russia, the world's leading oil exporters, to deepen oil production cuts has further bolstered crude prices. These cuts have been in place since November of the previous year and provide additional support to the upward trend in oil prices. Furthermore, the Organization of the Petroleum Exporting Countries (OPEC) revised its oil demand forecast for 2023, anticipating a 2.2% growth in demand for 2024. This positive outlook for future demand has contributed to the overall optimism surrounding crude oil. Ahead in the week prices may continue to trade on higher side and the possible trading range would be 6040-6590. Natural gas prices experienced a decline, reflecting negative returns in the market. This downward price movement was accompanied by an increase in open interest and trading volume, indicating a potential continuation of losses in the near future. Ahead in the week, prices may trade in the wider range where both side movements are expected and the possible.
Base metals may trade with bullish bias and buying on dips can be a sound strategy as markets are expecting that the Federal Reserve is close to the end of its rate hike cycle due to easing inflation. If inflation continues to slow, the Fed may decide to end the pace of interest rate hikes. However profit booking at higher level cannot be denied as data showed that China's exports fell last month at their fastest pace since the onset three years ago of the COVID-19 pandemic, as an ailing global economy puts mounting pressure on Chinese policymakers for fresh stimulus measures. As the global economy slows down, overseas consumers are buying fewer goods from Chinese factories. Copper may trade in the range of 725-755 levels. China imported 449,649 metric tons of unwrought copper and copper products in June, down 16.4% from a year earlier, data from the General Administration of Customs showed. Copper production in Peru rose nearly 35% in May compared to the same month last year, the country’s ministry of energy and mines said. Zinc can trade in range of 212-230 levels. Lead can move in the range of 178-186 levels. Aluminum may trade in the range of 195-210 levels. Chinese exports last month of unwrought aluminium and aluminium products, including primary, alloy and semi-finished aluminium products were 492,631 metric tons, down 18.9% from June 2022. Steel long (Aug) is likely to trade in the range of 43800-45500 with weak bias on NCDEX. China's slowed economic growth and the on-going property crisis have affected steel prices and demand, with Chinese mills operating at a loss for the first five months of 2023.
Cotton prices are likely to trade sideways as with advancement of sowing activities. Sowing area gap between current year and last year has narrowed to 5% by end of 14th July as compared to 10% of prior week. Gujarat, Madhya Pradesh and Rajasthan witnessed significant rise in are but sowing has been delayed in Maharashtra and Telangana due to monsoon concerns. Gains in cotton are likely to be limited as IMD forecast of heavy rainfall in Maharashtra has brought a big hope for farmers that will lead to rise in area under cotton. Cotton MCX July prices are likely to trade in range of 54000-58000 levels. Similarly, Kapas Apr’24 futures are likely to trade in range of 1450-1530 levels.
Cotton seed oil cake NCDEX July futures are likely to trade on positive note due to slower arrival pace in the market. Reports of fall under acreages will support firmness in prices. Surging prices of rival oil meals are likely to keep market sentiments up for cotton seed oil cake. Cotton seed oil cake Aug prices are likely to trade in range of 2350-2650 levels.
Guar seed Aug futures is likely to trade on weaker note with advancement of sowing progress in Rajasthan and Gujarat. About 15 lakh Ha was sown under Guar in Rajasthan as on 13th July as compared to 13.3 lakh Ha of previous year. Not only Rajasthan, area under guar also rose significantly in Gujarat. About 34.6 thousand Ha was sown under guar seed in Gujarat as on 10th July as compared to 1.6 thousand Ha of previous year. Guar seed prices will trade in range of 5350- 5850 in near term wherein Guar gum prices are likely to trade in range of 9900- 12000 levels.
Mentha oil July contract is likely to trade down with rise in supplies of new crop. Supplies have increased in Uttar Pradesh and Bihar as harvesting activities has picked up. Production prospects have improved with rising yield supported by favorable weather condition. Moreover, reports of slack export of menthol will put pressure on prices. Mentha oil prices are likely to trade in range of 860-910.
Castor seed prices are likely to trade mixed to down on reports of rise in area under castor in Gujarat. Sowing activities are running on positive note as about 73.5 thousand Ha was sown under castor in Gujarat as on 13th July Vs 13.7 thousand Ha of previous year. Castor seed Aug prices are likely to trade in range of 5650-6200 levels.
It closed at Rs. 739.80 on 13th Jul 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 723.00. On the daily chart, the commodity has Relative Strength Index (14-day) value of 69.758. Based on both indicators, it is giving a buy signal.
One can buy near Rs.733 for a target of Rs. 750 with the stop loss of 723
It closed at Rs. 6257.00 on 13th Jul 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 5946.48. On the daily chart, the commodity has Relative Strength Index (14-day) value of 80.248. Based on both indicators, it is giving a buy signal.
One can buy near Rs.6200 for a target of Rs. 6600 with the stop loss of 6000.
It closed at Rs. 44720.00 on 13th Jul 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 46850.40. On the daily chart, the commodity has Relative Strength Index (14-day) value of 12.982. Based on both indicators, it is giving a sell signal.
One can buy near Rs. 45100 for a target of Rs. 43500 with the stop loss of 45700.
NOTE: *M.High / M.Low stands for Monthly High / Monthly Low
CRB zoomed up further as many commodities regained strength on fall in US CPI data, which rekindle the hope of pause in monetary tightening. CRB crossed 301 marks. Fall in dollar index stimulated buying in commodities. The dollar crashed to its lowest in more than a year on Wednesday after data showed the rise in U.S. consumer prices moderated in June, suggesting the Federal Reserve may have to raise interest rates only one more time this year. Gold has taken sharp upside after a trapping long in consolidation mode. Silver outshined gold and saw third week nonstop rally. The yellow metal logged its best intraday gain in more than two months on Wednesday, tracking a decline in the dollar and Treasury yields after data showed U.S. consumer price index (CPI) inflation grew less than expected in June. In the energy counter, crude oil saw very strong upside for third week while natural gas surrendered some of its previous gain. Global oil benchmark Brent hovered above $80 a barrel on Thursday, fuelled by U.S. inflation data that presaged the interest rate hike cycle in the world's biggest economy is set to finally cool. However, U.S. crude oil inventories jumped by their most in four weeks as early summer demand for motor fuels appears to have peaked after weeks of heavy processing by refiners trying to ensure adequate supply to market. Base metals gained some confident on better inflation data from US. The base metals supported by speculation that China will roll out more stimulus measures to support a slowing economic recovery.
In agri commodities, castor slipped for the second week. Cotton Oil Seed Cake was in a range with upside bias. Guar counter witnessed rallied on low production fear. In spices, jeera prices slipped on profit booking whereas coriander and turmeric prices appreciated further. Turmeric prices rose on growing fear of crop damage in wake of excessive rainfall in major turmeric producing states. IMD has projected heavy rainfall in Maharashtra and Telangana during the week that will lead to crop damage. Jeera losses were limited on growing fear of crop damage in wake of excessive rainfall in major turmeric producing states. IMD has projected heavy rainfall in Maharashtra and Telangana during the week that will lead to crop damage. Dhaniya prices jumped on growing fear of crop damage in wake of excessive rainfall in major turmeric producing states. IMD has projected heavy rainfall in Maharashtra and Telangana during the week that will lead to crop damage. Mentha traded below 900 with rising supplies of new crop in the market.
Since Moscow sent troops into Ukraine on Feb. 24 last year, the United States and its allies have been forcing the countries to stop buying the Russian oil in a bid to punish Moscow for its aggression. But considering the energy security to economic necessity and affordability, at a time when global oil prices have skyrocketed, India have done the opposite as India doesn’t want to repeat the mistakes of the past by abiding with sanctions on Iran, when China continued to buy Iranian oil and India stopped it. Russia had been also looking for buyers for its Ural crude oil following the outbreak of the conflict with Ukraine and sanctions from the US and European countries, and had offered oil at discounted prices. India, which used to import around 2% of its oil needs from Russia, has ignored the pressure from United States and its allies to not buy crude from Russia and enhanced its imports.
Jump in crude import from Russia
India emerged as a key consumer of Russian oil following the invasion of Ukraine. India's imports of Russian oil rose from a very low base at the beginning of 2022, increasing significantly throughout the year. The Russian oil import rose ten-fold in 2022 in India. India has increased its share of Russian crude procured at discounted prices. In June, India imported 39.5 percent of its crude from Russia, which was only 0.2 percent in January 2022, before the beginning of the war between Moscow and Ukraine.
Jump in crude import from Russia
Before Russia's invasion of Ukraine in February last year, India was a minor importer of Russian crude, with purchases of about 44,500 barrels per day (bpd) in the 12 months to February 2022. It is less than its own domestic production. Now, India's oil imports from Russia surged to a record of around 1.96 million barrels per day (bpd) in May this year. Russia supplied 1.79 million barrels per day (bpd) of crude to India in June compared to May, data by Vortexa showed.
Russia, however, remained the top supplier of crude to India in June. Imports from Russia again exceeded the combined shipments of crude oil from Saudi Arabia and Iraq — the traditional suppliers of crude to India. In June, India imported 7,34,000 bpd of crude from Saudi Arabia and 8,44,000 bpd from Iraq. The combined imports of crude from these two Middle-Eastern countries have increased in June compared to the previous month. India imported 16.1 percent of its crude oil requirement from Saudi Arabia and 18.5 percent from Iraq in June. In May, India imported 5,60,000 bpd from Saudi Arabia and 8,39,000 bpd from Iraq.
The benefits for India are significant. Cheaper Russian oil is reducing losses for state-run Indian refiners selling fuel at lower prices on the domestic market. Although the discounts are now shrinking, India continues to import oil from Russia. According to Bloomberg, India's state-owned oil processor, Indian Oil Corp, Hindustan Petroleum and Bharat Petroleum are attempting to secure sixmonth supply contacts for Russian crude to India.
Jump in crude import from Russia
Over the past week, the Indian Rupee (INR) has shown resilience, bouncing back and reaching a one-month high against the US Dollar (USD). This recovery can be attributed to a combination of factors, including market expectations that the Reserve Bank of India (RBI) will intervene to limit the rupee's appreciation beyond the 81.80 mark. Additionally, importers have engaged in hedging strategies, and speculators have displayed cautious behavior, contributing to the rupee's stability. Meanwhile, the USD has experienced a decline, evidenced by the dollar index hitting a 15- month low. This drop is primarily driven by the prevailing belief among market participants that the Federal Reserve (Fed) will temporarily halt interest rate hikes. While a 25 basis points increase is already priced in for the upcoming Fed meeting, there is anticipation of a subsequent pause in rate hikes. It's important to note that despite the INR's strength against the USD, INR crosses like EURINR and GBPINR have reached all-time highs, surpassing 91.50 and 107.50 respectively this week. This can be attributed to the widening rate differentials in the G10 space, favoring the euro and pound over the dollar. However, it is crucial to exercise caution, as any indication from the Fed suggesting a change in their rate hike stance could quickly lead to a decline in the euro and pound. Looking ahead to the coming week, it is expected that the USDINR pair will trade within the range of 81.80 to 82.30. As for EURINR and GBPINR, further assessment is required, given the current market dynamics and uncertainties. It is advisable to closely monitor developments and stay updated with any announcements or actions from the RBI and the Fed to make informed decisions.
USDINR (JUL)pair is currently in an Sideways trend as trading between its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 82.21. However, the pair is in neutral territory with a Relative Strength Index (14-day) value of 43.5 on the daily chart. Major support is seen around 81.75 levels, while resistance is expected near 82.6 levels.
One can buy near 81.8 for the target of 82.8 with the stop loss of 81.3
GBPINR (JUL)pair is currently in an Sideways trend as trading between its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 103.85. However, the pair is in neutral territory with a Relative Strength Index (14- day) value of 50.8 on the daily chart. Major support is seen around 103.22 levels, while resistance is expected near 104.7 levels.
One can sell near 108 for the target of 106 with the stop loss of 108.6
EURINR (JUL) pair is currently in an Bullish trend as trading above its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 87.74. However, the pair is in overbought territory with a Relative Strength Index (14- day) value of 75.98 on the daily chart. Major support is seen around 90.25 levels, while resistance is expected near 93 levels.
One can buy near 92 for the target of 93 with the stop loss of 91.5 GBP/INR(
JPYINR (JUL) pair is currently in an Sideways trend as trading between its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 58.2. However, the pair is in borderline territory with a Relative Strength Index (14- day) value of 67 on the daily chart. Major support is seen around 58.23 levels, while resistance is expected near 61.4 levels.
(2/5)
|
|
The company intends to utilize the net proceeds from
the issue towards the funding of the following objects:
Funding capital expenditure requirements for civil
construction of the building for the surface mount
technology (SMT) line and interior development, and
purchase of equipment/machinery for the new SMT
production line (SMT Line),
Funding of long-term working capital requirements,
Repayment or pre-payment, in full or in part, of certain
outstanding borrowings, ands
General corporate purposes.
Considering the P/E valuation, on the upper end of the price band of Rs.500, the stock is priced at pre issue P/E of 55.33x on FY23 EPS of Rs.9.04. Post issue, the stock is priced at a P/E of 59.72x on its EPS of Rs.8.37. Looking at the P/B ratio at Rs.500, pre issue, book value of Rs. 18.03 of P/Bvx 27.73x. Post issue, book value of Rs. 53.45 of P/Bvx 9.35x.
Considering the P/E valuation, on the upper end of the price band of Rs.475, the stock is priced at pre issue P/E of 52.57x on FY23 EPS of Rs.9.04. Post issue, the stock is priced at a P/E of 56.74x on its EPS of Rs.8.37. Looking at the P/B ratio at Rs.500, pre issue, book value of Rs. 18.03 of P/Bvx 26.34x. Post issue, book value of Rs. 53.45 of P/Bvx 8.89x.
With more than 20 years of experience, Newteb has helped thousands of companies globally by following a customer centric approach. Netweb Technologies is one of India’s leading high-end computing solutions (HCS) provider, with fully integrated design and manufacturing capabilities. (Source: F&S Report). Its HCS offerings comprises (i) high performance computing (Supercomputing / HPC) systems; (ii) private cloud and hyper converged infrastructure (HCI); (iii) AI systems and enterprise workstations; (iv) high performance storage (HPS / Enterprise Storage System) solutions; (v) data centre servers; and (vi) software and services for its HCS offerings. Strengths
One of India’s leading Indian origin owned:The company is one of India’s leading Indian origin owned and controlled OEM for HCS with integrated design and manufacturing capabilities. It designs, manufactures and deploys HCS comprising proprietary middleware solutions, end user utilities and precompiled application stack. Its deep expertise in system design and architecture has helped it innovate and build bespoke solutions.
Long standing relationship with a marquee and diverse customer base:The company designs, develops, and implements its entire solutions package which helps it engage with its Customers in a more holistic manner. This enables it to embed itself within the institutional framework of its Customers and helps in customer retention and repeat business. Its customer accretion between April 1, 2020 and March 31, 2023, had grown at a CAGR of 11.26%.
One of India’s leading HCS provider and it operate in a rapidly evolving and technologically advanced industry with high entry barriers:The company operates in a rapidly evolving and technologically advanced industry which requires it to stay abreast of the developments and improve and customise its designs, and hardware and software offerings. The nature of the industry and the rapidity of technological advancement necessitate continual innovation, improvement and customisation of its solutions.
Track record of financial performance and consistent growth:The company has a track record of financial performance and consistent growth. The Company has been able to grow both its revenue and profit, without any external equity funding from strategic investors or private equity funds and without high leverage from lenders.
Expanding and augmenting product portfolio:The company proposes to continue to expand its product portfolio including by offering 5G and private 5G solutions and Network Switches.
Expanding geographic footprints in EMEA (i.e., Europe, Middle East and Africa): It is a HCS provider based in India catering to many Indian and multinational Customers based in India. Company now proposes to expand and grow its geographical footprint in EMEA by offering the following HCS, (i) private cloud and HCI, (ii) HPC solutions, (iii) AI systems and enterprise workstations, and (iv) 5G products and solutions, where its Company has already established its footprints. The company also proposes to focus on 5G IT infrastructure roll-outs that require its specialised solutions and leverage its existing strengths.
Deepen its penetration across verticals:The company strives to expand verticals namely oil and gas in India, and deepen its penetration across sectors such as the automobile sector particularly in western and southern region of India, BFSI clusters in the western region of India, and multi-sector corporates in order to expand its customer base. The Company’s Tyrone ParallelStor and Dense Camarero systems with integrated private cloud plug-ins already to cater to the BFSI sector.
Netweb Technologies India Ltd is one of the few OEMs in India eligible to avail of production-linked incentives under the Government of India’s IT Hardware PLI Scheme. The company has established itself as a reliable source for a diverse range of computing solutions and has consistently exhibited impressive financial performance. Additionally, its eligibility for government schemes in India further strengthens its position in the market.
|
Kotak Mutual Fund has launched Kotak Quant Fund, an open ended equity scheme following Quant-based investing theme. The new fund offer of the scheme is open for subscription and will close on July 26. The Scheme will reopen for subscription/redemptions within five business days from the date of allotment of units. The scheme will be benchmarked against NIFTY 200 TRI. The scheme will be managed by Harish Krishnan (equity investment), Abhishek Bisen (debt investment), and Arjun Khanna (foreign securities investments). The investment objective of the scheme is to generate long-term capital appreciation by investing predominantly in equity and equity-related securities, selected based on the quant model theme. The investment process will be based on a factor-based approach with the aim of generating superior risk-adjusted returns compared to the benchmark. The minimum subscription amount is Rs 5,000 and in multiples of Re 1 for purchases and of Re 0.01 for switches. The scheme will offer a regular plan and direct plan – with growth and IDCW options. The scheme will invest 80-100% in equity and equity related instruments based on quant model theme, 0-20% in equity and equity related securities of companies other than quant model theme, 0-20% in overseas mutual funds schemes / ETFs / Foreign Securities, 0-20% in debt and money market securities, and 0-10% in units of REITs & InvITs.
Mirae Asset Mutual Fund announced the launch of Mirae Asset Nifty Bank ETF, an open-ended scheme replicating/tracking Nifty Bank TRI. The New Fund Offer (NFO) is currently open and it will close for subscription on July 18. The scheme reopens for continuous sale and repurchase on July 21. The listing of ETF units on stock exchanges, BSE & NSE, will be done within five days from the date of allotment. Mirae Asset Nifty Bank ETF will be managed by Ekta Gala. The minimum investment during the NFO will be Rs 5,000 and in multiples of Re 1 thereafter. Mirae Asset Nifty Bank ETF will be benchmarked against Nifty Bank Index (TRI). Siddharth Srivastava, Head - ETF Product, Mirae Asset Mutual Fund, said, “banking sector as a whole has been reporting very healthy growth in the last 4-5 years with most of the banks leaving their Non-Performing Assets (NPAs) issue behind. The fintech revolution will further assist the growth of the banking sector as banks partner with fintechs to find more synergy. With the economy slated to register close to 7 per cent annual growth, the Indian banking sector is all poised to record substantial growth in the coming years.” Mirae Asset Nifty Bank ETF will offer an opportunity to the investors to participate in the evolving banking sector in India. This will also offer easy liquidity.
Quant Mutual Fund has filed the draft for a retirement fund. Quant Retirement Fund will be an open-ended retirement solution oriented scheme with a lock-in of five years or till retirement age, whichever is earlier. The scheme will be benchmarked against 65% S&P BSE 200 TRI + 15% CRISIL Short Term Bond Fund Index + 20% iCOMDEX Composite Index. The scheme will be managed by Sandeep Tandon, Anikt Pande, Sanjeev Sharma, and Vasav Sahgal. According to the scheme information document, the investment objective of the scheme is to provide the investment plans to grow retirement savings that serves the variable needs of the investors through long term diversified investments in different asset classes. The minimum application amount will be Rs 5,000 and Re 1 thereafter. The scheme's riskometer shows that the scheme will fall in the 'very high risk' category. The scheme will have a regular and a direct plan with growth and IDCW options. The scheme will allocate its assets of around 0-100% in equity and equity related securities, 0-100% in debt and money market instruments, 0-100% in Gold ETF, Silver ETF & any other mode of investment in commodities (excluding commodity derivatives), 0-30% in Exchange Traded Commodity Derivatives (ETCDs) & any other mode of investment in commodities, 0-35% in Foreign securities including ADRs / GDRs / Foreign equity and debt securities and Overseas ETFs, and 0-10% in units issued by REIT and InvITs.
Inflows into Indian equity mutual funds more than doubled sequentially to 86.37 billion rupees ($1.05 billion) in June, data from the Association of Mutual Funds in India (AMFI). Inflows fell to a six-month low of 32.4 billion rupees in May. The rise in equity mutual fund inflows and buying by foreign portfolio investors (FPIs) in domestic equities drove an over 11% surge in the Nifty 50 index in fiscal 2024 so far. FPIs purchased equities worth over 1 trillion rupees in this period, while inflows in equity mutual funds aggregated to 432.11 billion rupees. Contributions through systematic investment plans (SIPs) - in which investors make regular payments into mutual funds - fell 0.1% to 147.34 billion rupees in June. Over 1.25 million new SIP accounts were opened. "The rise in equity mutual fund inflows was aided by cooling inflation, improved macroeconomic indicators," AMFI Chief Executive NS Venkatesh said, adding that inflows in small-cap fund could continue to support the broadening of the rally in markets. The smallcap index hit 52-week high at the end of June, while midcaps logged record high. Among equity-oriented schemes, small-cap funds accounted for most of the investments for a ninth straight month at a record 54.72 billion rupees, in contrast to outflows worth 20.5 billion rupees from large-cap funds, AMFI data showed.
|
|
|
|
|
|
