From Advisory Desk 16th June 2023

From Advisory Desk 16th June 2023

 

Market Outlook: US equities had another strong day yesterday, fueled by robust economic data, resulting in all three major benchmark indices up by over 1%, with the S&P500 and Nasdaq indices closing at near 14-month highs. The environment of slowing inflation and a resilient economy creates the perfect conditions for a rally in equity markets, which is happening around the world, especially in Indian and US markets. In contrast, the ECB raised interest rates to a 22-year high and indicated more to come on account of higher inflation pressure. Asian markets have started on a mixed note, while the SGX Nifty is indicating a positive opening. Yesterday, our market witnessed a profit booking correction, especially in financial stocks, on account of weak global cues. However, the overall direction of the market is still positive and we expect the uptrend momentum to continue with intermittent minor declines.

 

Actionable: Buy IDFC First Bank, Tata Steel, Ashok Leyland.

 

IPO listing: IKIO Lighting shares to start trading in exchanges today after oversubscribed by 66 times. Grey Market is indicating 30-35% premium.

 

Global market:

DOW:  + 428

SGX NIFTY:   + 40   (prev. close 18760)

NIFTY 50 : 18688

Sensex : 62917

 

Institution:

FII:                +   3086     Cr

DII:                -    298       Cr

NSE:

Advances:  1669  / Declines:  1870

Currency:

Dollar: $ 82.18

Dollar Index: 102.14

 

Commodity:

Gold: $ 1970  per ounce

Crude: $ 75.45  per barrel

 

Bonds:

10 year US bond rate: 3.74

10 year Indian Bond rate: 7.04

Derivative:

PCR: 0.93

VIX:  11.08

Updates:

 

TCS – As per reports, TCS's $2 billion, 10-year deal with the American arm of Dutch insurer Aegon NV has been scrapped five-and-a-half years after Transamerica Life Insurance Co. selected TCS. Transamerica plans to cut its dependence on third-party IT services firms such as TCS.

Reliance Industries - As per reports, Reliance Industries is in talks with lenders for a foreign-currency loan of up to $2 billion to fuel the ongoing expansion of its oil-to-telecoms business.

 

Titagrah Wagons/Ramkrishna Forgings - A consortium between Ramkrishna Forgings Limited and Titagarh Rail Systems Limited were awarded a contract worth Rs 12,226.5 crore under AatmaNirbhar Bharat Initiative by Ministry of Railways. They were lowest bidder earlier.

 

BHEL - Company signed a memorandum of understanding with Volvo Eicher Commercial Vehicles to jointly develop and deploy type-IV cylinders (Hydrogen/CNG) in the commercial vehicle segment alert.  

 

Torrent Pharma - U.S. FDA has issued an Establishment Inspection Report after inspecting the drugmaker’s oral-oncology manufacturing facility at Bileshwarpura in Gujarat.

 

Natco Pharma - USFDA has issued an Establishment Inspection Report after inspecting its manufacturing facility at Visakhapatnam in Andhra Pradesh from Jan 30 to Feb 3.

 

The FTSE index rebalancing is taking place today around 3 PM in which India is likely to receive net inflows of nearly $250 million to $270 million. Medanta is likely to see inflows of $8.1 million, Piramal Pharma can see inflows of $11.1 million.

 

Securities in ban: BHEL, DELTACORP, IBULHSGFIN, IEX, INDIACEM, L&TFH, MANAPPURAM FINANCE, TATACHEM, ZEEL.

 

Derivative View: On option front, weekly maximum Call OI is at 18800 then 18700 strike while Maximum Put OI is at 18700 then 18600 strike. Option data suggests an immediate trading range in between 18600 to 18800 zones.

From Advisory Desk 14th June 2023

From Advisory Desk 14th June 2023

 

Market Outlook: The S&P500 and Nasdaq indices surged to a new 52 week-high after the data showed inflation slowing to a more than two year low, raising optimism among market participants that the FED may be inclined to temporarily halt their course of interest rates tonight. Asian markets have started on a flat to positive note, with SGX Nifty indicating a slightly positive opening. Yesterday, domestic benchmark indices witnessed a strong positive momentum after days of lacklustre move and closed just 1% away from an all-time high. In the last few sessions, mid and small-cap counters have continued to show good strength, and we expect this trend to continue. Overall, we remain positive and expect market momentum to persist.

Actionable: Buy DLF, Axis bank, Titan.

Delivery Ideas: Buy Bata India, Real Estate basket (Real estate stocks are experiencing good momentum, and one can consider buying them).

Global market:

DOW:  + 145

SGX NIFTY:   + 40   (prev.close 18785)

NIFTY 50 : 18716

Sensex : 63143

Institution:

FII:                +   1678     Cr

DII:                -    203       Cr

NSE:

Advances:  2117  / Declines:  1469

Currency:

Dollar: $ 82.37

Dollar Index: 103.25

Commodity:

Gold: $ 1960  per ounce

Crude: $ 74.05  per barrel

 

Bonds:

10 year US bond rate: 3.80

10 year Indian Bond rate: 7.00

Derivative:

PCR: 0.95

VIX:  11.11

Updates:

Tata Chemicals - After Nirma slashed its prices by Rs.2000 MT, Tata Chemicals followed with a higher cut of Soda Ash prices by Rs.2,300 per metric tonne.

Zydus Lifesciences - USFDA inspection at injectables manufacturing facility at Zydus Biotech Park in Changodar concluded with nil observations. USFDA inspection happened at the facility from Jun. 5 to Jun. 13.

 

KEC International - The company has bagged new orders worth Rs.1,373 crore across its railways, civil, transmission and distribution, cables businesses.

 

Anupam Rasayan - Company has signed a letter of intent worth $265 million (Rs.2,186 crore) for next 5 years with one of the leading Japanese speciality chemical companies to supply new age patented life science active ingredient.

 

Campus footwear/Relaxo footwear/Metro brands - As per reports, Toys, leather and new age e-bikes will be added to the production Linked incentive (PLI) scheme that currently covers 14 sectors. These new sectors will be within the Rs.1.97-lakh-crore PLI allocation made three years ago when it was launched.

 

Securities in ban: BHEL, DELTACORP, IBULHSGFIN, IEX, INDIACEM, MANAPPURAM FINANCE.

 

Derivative View: On option front, weekly maximum Call OI is at 18900 then 18700 strike while Maximum Put OI is at 18700 then 18600 strike. Option data suggests an immediate trading range in between 18600 to 18800 zones.

From Advisory Desk 6th June 2023

From Advisory Desk 6th June 2023

 

Market Outlook: US stocks ended slightly lower as the data from S&P and ISM on services activity was a bit weaker than expected. Following the news, Bond yields reacted and reversed the earlier gains. Asian markets have started with a mixed performance, while the SGX Nifty indicates a flat opening. On the domestic front, our markets started the week on a positive note yesterday, closing higher by 0.35%. After the recent consolidation breakout, the Nifty is moving within a range of 18450-18670 levels from the past few sessions. However, the positive trend remains intact and expect stock specific action to continue. The RBI MPC meeting is set to begin today, with the outcome announcement scheduled for 8th June.

 

Actionable: Buy M&M, L&T.

 

Global market:

DOW:  - 199

SGX NIFTY:   - 10   (prev. close 18725)

NIFTY 50 : 18593

Sensex : 62787

 

Institution:

FII:                -   701     Cr

DII:               +  1196   Cr

NSE:

Advances:  2128  / Declines:  1543

Currency:

Dollar: $ 82.67

Dollar Index: 103.99

 

Commodity:

Gold: $ 1975  per ounce

Crude: $ 76.15  per barrel

 

Bonds:

10 year US bond rate: 3.69

10 year Indian Bond rate: 7.00

Derivative:

PCR: 0.95

VIX:  11.13

Updates:

SBI Cards: SBI Cards and Payment Services Ltd on Monday announced that its board of directors has approved the raising of funds by way of issuance of Non-Convertible Debentures (NCDs) to ₹3,000 crore in one or more tranches, on a private placement basis.

 

Adani Group | The group on Monday said it has repaid loans totalling $2.65 billion that were taken by pledging shares in the conglomerate's listed firms and another $700 million in loans taken for the acquisition of Ambuja Cement.

Godrej Consumer Product - Company announced the appointment of Aasif Malbari as its Chief Financial Officer, with effect from August 10, 2023. Aasif Malbari is currently the CFO of Tata Passenger Electric Mobility and Director of Tata Motors Passenger.

 

Sugar Sector - Sugar prices tumbled to 6-week lows yesterday. The arrival of monsoon rains in India and ramped-up sugar production in Brazil are weighing on sugar prices.

Securities in ban: IBULHSGFIN, INDIACEM, MANAPPURAM FINANCE.

 

Derivative View: On option front, weekly maximum Call OI is at 18600 then 18700 strike while Maximum Put OI is at 18500 then 18600 strike. Option data suggests an immediate trading range in between 18400 to 18700 zones.