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Wednesday, June 21, 2023

From Advisory Desk

From Advisory Desk 21st June 2023
 
Market Outlook: US market ended lower ahead of FED Chairman Powell's testimony today. Additionally, market participants will closely monitor several speeches by FED speakers this week for any further cues. Asian markets have started on a mixed note, while the SGX Nifty is indicating a flat opening. Yesterday, Nifty recovered smartly from day's low and closed higher by 0.30% despite mixed global cues. We expect the uptrend momentum to continue towards new all-time highs with intermittent minor declines. Anticipate momentum in defence stocks to continue, driven by optimism for strong defence agreements with the US.

Actionable: Buy Tata Motors, L&T, REC.

Delivery Ideas: Buy Shriram Finance Ltd, Blue Dart ( Upgraded to Buy, with a revised target price of INR8,040, 20% upside).
 
Global market:
DOW:  - 245
SGX NIFTY:   - 20   (prev.close 18881)
NIFTY 50 : 18816
Sensex : 63327
 
Institution:
FII:                 -   1943     Cr
DII:                +   1973     Cr

NSE:
Advances:  1865  / Declines:  1637

Currency:
Dollar: $ 82.12
Dollar Index: 102.57
 
Commodity:
Gold: $ 1948  per ounce
Crude: $ 76.15  per barrel
 
Bonds:
10 year US bond rate: 3.74
10 year Indian Bond rate: 7.06

Derivative:
PCR: 0.99
VIX:  11.13

Updates:

HDFC/HDFC Life - Competition Commission of India has given a go-ahead to the proposed acquisition of an additional stake by HDFC in HDFC Ergo General Insurance and HDFC Life. After the merger, the combined entity of HDFC Bank will possess a majority stake of over 50% in HDFC Life. HDFC Ltd holds 49.98% of HDFC ERGO and 48.65% of HDFC Life.
 
Piramal Enterprises/Shriram Finance - Piramal Enterprises selling its entire 8.34% holding in Shriram Finance through block deal today for around Rs.4630 crore. Piramal will offload about 3.1 crore shares at a price of Rs 1,483 per unit, which is a 5% discount from CMP.
 
Pidilite Industries - Company launched its manufacturing facilities under its two joint ventures, Pidilite Litokol and Tenax Pidilite in Amod, Gujarat. They have transfered technology to Pidilite as part of joint ventures. This development will strengthen Pidilite's presence in the tile and stone care range.
 
Rail Vikas Nigam - The company issues clarification on report of breakdown of joint venture with Russia-based Transmashholding (TMH). The company has termed the report as factually incorrect and the memorandum of understanding between the two parties is still valid.

GR Infraprojects - The company has bagged a hybrid annuity mode order for four lanes of NH 530B in Uttar Pradesh from NHAI with a project cost of Rs.1,085.47 crore. Company has executed another agreement order worth Rs.758cr for Multi Modal Logistics Park (MMLP) Indore near Pitampur.

Securities in ban: BHEL, DELTACORP, HAL, HINDCOPPER, IBULHSGFIN, INDIACEM, L&TFH.
 
Derivative View: On option front, weekly maximum Call OI is at 19000 then 18900 strike while Maximum Put OI is at 18700 then 18800 strike. Option data suggests an immediate trading range in between 18650 to 18900 zones.

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