News and Impact

News and Impact

 

 

·      Expects market to open on a strong note on account of across global market rally due to boosted sentiment after reported positive US economy data, hope of US Fed to pause hike in interest rate and strong domestic economy data. U.S. stocks climbed up to 2% (Dow Jones gained over 700 points) on Friday after a labor market report showing moderating wage growth in May, indicating the Federal Reserve may skip a rate hike in two weeks, while markets welcomed a Washington deal that avoided a catastrophic debt default. The Cboe Volatility Index, or VIX, dropped below 15 from an average of 23 in the past year after the US private sector payrolls increased by 339,000 in May, compared estimate of 190,000. Russell 2000 index of small caps, the home of several regional banks soared about 3.5%. SGX Nifty is up nearly 100 points or over half percent. On the domestic front, easing inflation, stronger-than-expected economic growth data (FY23 GDP 7.2% - expectation 6.9%), persistent FIIs buying interest, fast-paced expansion of India's factory output (May PMI 31-Month high) and better than expected auto monthly sales data will have positive impact on market sentiments. RBI credit policy would be announce on 8th June or Thursday while US Fed rate decision to be release on subsequent week or June 14. Expectation of RBI to keep unchanged interest rate on account of cooling down inflation. Among the sectors to be watch for today – metal stocks will be in focus after the news that the China is working on a new basket of measures to support the property market. Interest sensitive sectors like banks, finance, real estate and auto stocks will be in momentum ahead of RBI credit policy. Tech stocks may be positive after the global IT major Index, Nasdaq Composite surged to 9-month high.

 

·      US Market   – U.S. stocks jumped Friday, with the Dow Jones closing up 701 points orv over 2% , after the May jobs report showed the labor market is in surprisingly strong shape despite the Federal Reserve’s aggressive tightening of monetary policy in the past year. A mixed jobs report shaped the wagers on a Fed pause, with signs of labor-market slackening in May despite a pickup in hiring. Investor sentiment was high Friday following the blowout nonfarm payrolls growth in May reported by the Labor Department. Public and private sector payrolls increased by 339,000 in May, compared to the Dow Jones estimate of 190,000. Nasdaq Composite soared 1% while Dow Jones Index advance 2%.

 

·      Global market summary – US CBOE Volatility Index fell to 2-year low to below 15, S&P 500 surged by 20% from the October low, indicating a bull market, US 2- year and 10-year spiked to 2-month low. 

 

·      Asian Market – Asian markets surged on Monday after the S&P 500 rose to the cusp of a bull market amid strengthening bets for a Federal Reserve rate pause this month. Japan Index surged over 400 points or 1.5%. Taiwan, South Korea, Australia Index gained over 1% each. A mixed jobs report shaped the wagers on a Fed pause, with signs of labor-market slackening in May despite a pickup in hiring.

 

·      Oil –  Oil advanced 3% to $77/bbl after the Saudi Arabia said it will make an extra 1 million barrel-a-day supply cut in July, taking its production to the lowest level for several years following a slide in prices.

 

·      Previous Day market Update – Amid positive cues from global markets and strong domestic macroeconomic data, benchmark equity indices posted modest gains led by metal, select banking, pharma, and auto stocks. Easing inflation, stronger-than-expected economic growth data, and fast-paced expansion of India's factory output have improved investor confidence. Among the global markets, US, Europe and Asia markets gained between 1-2% (Hong Kong index gained 4%) after the US Senate passed legislation to suspend the country’s debt ceiling, ending a drama that weighed on market sentiment. Moreover, investors remain hopeful of US Fed to pause the hike in interest rate in the June policy meeting. Better than expected monthly sales data and USDINR fell to a 1-month low and persistent FIIs buying interest also added fuel to the market sentiment. Sensex advance 118 points or 0.20% higher to close at 62,547while Nifty gained 46 points or 0.2% to close at 18,534 against the previous day’s close. FIIs were net sellers Rs71cr while DIIs were net buyers Rs489cr yesterday.

 

·      Nifty Technical Levels – Nifty has been forming lower highs from the last three sessions and closed the day with gains of around 45 points. It formed a small bodied Bearish candle on weekly frame but has been forming higher highs from the last ten weeks. Now it has to hold support of 18442 zones to witness an up move towards 18666 and 18750 zones while on the downside support exists at 18442 and 18333 zones.

 

·      Bank Nifty Technical Levels – Bank Nifty has been forming lower highs - lower lows on daily scale from the past three sessions but holding well above its 20DEMA. It formed a Bearish candle on weekly scale but structure of higher highs is intact from the last ten weeks. Now it has to cross and hold above 44044 for an up move towards 44250 then 44500 zones while on the downside support exists at 43750 and 43500 zones.

 

·      Actionable – Paytm, Tata Steel, National Aluminium, Bharat Forge, Tech Mahindra, Lemon Tree Hotel, SBI, Tata Chemical

 

·      Brokers Radar – Vedanta – JP Morgan TGT at 280 from 350, Hindustan Zins TGT by JP Morgan to 205 from 235, Bharti Airtel TGT raised BY Goldman Sachs at 890 from 575 and Macquarie TGT at 1000, CITI TGT on AU Small Finance Bank at 765, M&M Finance TGT by Citi at 355 from 310, Bajaj Finance TGT by Morgan Stanley at 8500.

 

·      Events – Maruti to launch new model Jimmy.

 

·      Corporate Action  - Hardwyn India – Bonus 1:3 and stock split from Rs10 to Re1. Shyam Metalic Rs1.80.

 

·      Global Data – Service PMI, Manufacturing PMI, Durable Goods Orders (US). New Car Registration, Service PMI and Composite PMI (UK). Composite PMI and Service PMI (France). Composite PMI, Service PMI. Composite PMI, Service PMI (China)

 

·      Market Summary – Apollo Hospitals Seeks $200m From Digital Unit Stake Sale: ET , Adani Ports hits lifetime high monthly cargo volumes in May 2023 , India’s Jobless Rate Falls to 3-Month Low of 7.7% in May: CMIE Data, ICICI Bank cuts lending rates, Mphasis Consulting Ltd to acquire eBECS Ltd., Mahindra Financial May Disbursements Rise 39% Y/y to Rs41.5B, Tata Chemical signed an MoU with the Gujarat Govt. to set up a 20 GW capacity lithium-ion cell manufacturing giga factory

 

·      Focus on Forging stocks – Bharat Forge reported 10% surged its North America class 8 truck at 15500 unit (29% spiked MoM). Focus also, RK Forging, M&M Forging also

 

·      Tata Chemicals: The company signed an MoU with the Government of Gujarat to set up a 20 GW capacity lithium-ion cell manufacturing giga factory with an investment of Rs 13,000 crore, the state government said in a statement. The company will reorganise its U.S. operations to rationalise the number of intermediate entities. – positive

 

·      SBI Life Insurance: Insurance regulator IRDAI approved transfer of life insurance business of Sahara India Life Insurance Co. to SBI Life, with immediate effect. - positive

 

·      Indian Overseas Bank: The Reserve Bank of India imposed a monetary penalty pf Rs 2.20 crore on the bank over regulatory non-compliance.- Avoid

 

·      Tech Mahindra: The company’s subsidiary Comviva Technologies and step-down subsidiary Comviva Technologies B.V. have agreed to sell 0.04% and 99.96% shareholding, respectively in Comviva Technologies do Brasil Indústria, Comércio, Importação e Exportação to Druid Internet Systems Comércio E Serviços for an upfront payment of $20,000 and deferred payment of $1.42 million. – We are positive on the stock

 

·      Godrej Properties: The company bought the remaining 26% stake in Godrej Home Constructions for Rs 14.99 crore, taking its total shareholding to 100%. – positive

 

·      Mahindra Lifespace Developers: Japan-based Omron Healthcare will start operations at Origins by Mahindra industrial cluster in Chennai by March 2025. – positive

 

·      PI Industries: The company completed acquisition of 100% stake of Therachem Research Medilab (India) and Solis Pharmachem, as well as acquisition of certain identified assets of TRM U.S. by PI Health Sciences U.S.A. – positive

 

·      IPCA Lab - The Income Tax Department has carried out survey proceedings at the Company's offices in Mumbai and at Sikkim manufacturing plants between 30th May, 2023 to 3rd June, 2023.- Any sharp decline will be buying opportunity

 

·      Lemon Tree Hotel – Company announced the opening of two of its latest hotels - Lemon Tree Hotel, Agra and Lemon Tree Hotel, Bhopal. - positive

 

·      NTPC –Company commissions last part capacity of 50 MW of 300 MW Nokhra Solar PV Project and 50:50 JV with IOC - positive for long term

 

·      Wonder Holidays – Company has announced that the Government of Tamil Nadu has granted waiver of Local Body Tax (LBT) of 10% for a period of 10 years from the commencement of commercial operations, after persistent efforts by the Company.- Positive

 

·      Lupin Labs – Company announced the launch of Darunavir Tablets in US MARKET of , 600 mg and 800 mg. Darunavir Tablets, 600 mg and 800 mg (RLD Prezista®) had estimated annual sales of USD 308 million in the U.S. (IQVIA MAT March 2023). – positive

 

·      Indo Rama Synthetics – Company has successfully started commercial production of "Bottle grade PET resins" from its newly constructed Solid-State Polymerisation (SSP) Plant at Butibori, Nagpur, Maharashtra- Positive.

 

·      Wipro – Company fixes June 16, 2023 as record date for buyback

 

·      Hero Motocorp - Compnay launched a refreshing new range of its highly popular 100cc motorcycle - the HF Deluxe. – positive

 

·      Zydus Lifesciences- Company announced that the group's animal health drug manufacturing facility at SEZ, Ahmedabad underwent a USFDA inspection from 30th May to 2nd June, 2023. The inspection closed with nil observations. – positive

 

·      Indoco Remedies - The USFDA had inspected Indoco Remedies facility located at Goa, from February 20, 2023 to February 28, 2023. The said Facility had 4 observations in Form 483. – Avoid

 

·      India’s Jobless Rate Falls to 3-Month Low of 7.7% in May: Unemployment rate fell to a three-month low in May as about 12 million people who were either employed or looking for work dropped out of the labor force, according to the Centre for Monitoring Indian Economy Pvt. (CMIE).  Jobless rate in May was 7.7%, compared with 8.5% in April.

 

·      TARC Ltd (Annad Raj) - Company announced another pre-payment of its NCD commitments. Company has made a payment of RS. 87.95 crores on June 1, 2023, out of which Rs.56.90 crores has been towards partial redemption of unlisted NCDs. – positive

 

·      Tata Elaxsi – Company  has partnered with Cultos Global to integrate a Blockchain mechanism from Cultos Global with its TETHER Connected Vehicle Platform, to create an innovative Driver Reward Program. – positive

 

·      Hero Motocorp - Company reported May monthly sales volume at 519474 unit (up 7% YoY) – Expectation 418565 unit

 

·      DCB Bank – Company names Ravi Kumar as CFO – positive

 

·      ICICI Bank cuts lending rates - ICICI Bank has reduced its marginal cost-based lending rates (MCLR) for the month of June 2023. The one-month MCLR has been reduced from 8.50% to 8.35%, while the three-month MCLR has experienced a 15 basis point decrease, settling at 8.40%. – Positive

 

·      Bank of Baroda – Company approved raising of additional capital worth Rs5000cr via Tier 1 and Tier 11 bond – Positive   

 

·      M&M Finance - Collection efficiency was at 96% for May, compared with 95% a year earlier, Mahindra and Mahindra Financial.  Business assets at Rs85500cr ($10.4 billion), rise 3.3% over March. Stage-3 and Stage-2 assets continued to remain range-bound compared with March.

 

·      Adani Ports hits lifetime high monthly cargo volumes in May 2023 – Company handled over 36 MMT of total cargo at its ports, implying 19% YoY growth.  On YTD basis, APSEZ has clocked ~68.5 MMT of overall cargo volumes, which is a good 16% YoY growth – positive

 

·      Allcargo Logistic – Company has announced several significant appointments in key leadership positions within the organisation. These strategic appointments post demerger, reinforce for growth. These appointments exemplify Allcargo Group's commitment to driving expansion and enhancing its presence in the dynamic logistics industry. Mr. Adarsh Hegde, who is the joint Managing Director, based out of Mumbai has been with the organization for over 30 years, has now been promoted to the position of Managing Director.- Positive

 

·      Minda Corp -  Company has considered and approved the proposal of raising of funds through public and/or private offerings including preferential issue, qualified institutions for an aggregate amount not exceeding Rs600 Crores – positive

 

·      Ramco Systems – Company announced the inauguration of its wholly owned subsidiary in Qatar, to support and transform the region's business houses and MNCs in the area of ERP, HR, and payroll. – positive

 

·      M&M - Swaraj Tractors, part of the Mahindra Group, launched a Compact Light Weight tractor range called the 'Swaraj Target'. - Positive

 

·      Jyoti Ltd - Company has secured a prestigious order of Rs. 6.21 Crores from IOC – Positive

 

·      Mphasis– Company has signed a definitive agreement to acquire 100% of the shares in eBECS Limited (a wholly owned subsidiary of DXC UK International Operations Limited), (the "Acquisition"), subject to fulfilment of closing conditions. eBECS Limited is a subsidiary of DXC UK International Operations Limited. It is one of the largest Microsoft Dynamics partners in the UK and Ireland region. – positive

 

·      Apollo Hospitals Seeks $200m From Digital Unit Stake Sale: Apollo Hospitals plans to raise around $200million by selling as much as 6% stake in its omni channel health care digital unit Apollo HealthCo, The sale is expected to value the company $2.5 billion to $3 billion. Apollo HealthCo owns digital health platform Apollo 24/7, a pharmacy distribution business, and a 25.5% stake in Apollo Pharmacies.

 

·      IndiGo to Start Flights to Six New International Destinations - Biggest airline InterGlobe Aviation, which flies under the IndiGo brand, will start flights to six new international destinations across Asia and Africa – Positive

 

·      Bank of Maharashtra – Company announced the launch of its qualified institutional placement to raise funds, beginning June 1, 2023 late Thursday. The bank plans to raise funds via the QIP issue at the floor price of Rs 29.98 a share.  The board of directors will reconvene on June 6, 2023, to determine the issue price for the allotment to QIP.

 

·      SJVN: The company signed a project development agreement of 669 MW Lower Arun Hydroelectric Project in Nepal. The company is also developing a 217 km long associated transmission network for power evacuation and export to India. – Positive

 

·      NTPC: Company signed a deal with Uttar Pradesh Rajya Vidyut Utpadan Nigam to develop renewable energy parks and project in Kalikot – positive

 

·      GAIL (India): The company infused into JBF Petrochemicals Rs 2,101 crore, including equity worth Rs 625 crore and debt worth Rs 1,476 crore, under the resolution plan for the latter. With this, JBF Petrochemicals has become a wholly owned subsidiary of GAIL. - positive

 

·      Prism Johnson: Of the proposed investment to acquire a 45% stake in Renew Green (MPR Two), the company has acquired 72.76 lakh shares for Rs 7.28 crore.-  positive

 

·      Affle (India): Affle International Pte., a wholly owned Singapore subsidiary of the company, has completed the 100% acquisition of YouAppi Inc. - positive

 

·      Anmol India – Company approves bonus issue of 4 shares for every 1 held - Avoid

 

·      Greenply Industry approves disposal of Myanmar unit asset – positive to exit non-core business.   

NEWS K Saudagars

NEWS K Saudagars':

📊 SUMMARY OF OPEC PRODUCTION CUTS 📊

1️⃣ Saudi Arabia to extend 500K barrel per day cuts until 2024

2️⃣ Saudi Arabia to cut an additional 1 million barrels per day voluntarily

3️⃣ Iraq to extend 211K barrels per day cuts until 2024

4️⃣ Russia to extend voluntary production cuts until 2024

5️⃣ OPEC agrees to new production target of 40.5 million barrels per day

📍This comes after Saudi Arabia told oil short sellers to “watch out.”

📍OPEC is not messing around.

Trade setup for today: Top 15 things to know before the opening bell

📈A bounce is expected in the market during the week. For the Nifty, hurdle is at 18,650-18,850, while immediate support is seen at 18,400-18,300, Nagaraj Shetti of HDFC Securities has said

📈The market recouped the previous day's losses and snapped a two-day losing streak on June 2, on broad-based buying, with the Sensex closing 119 points higher at 62,547 and the Nifty50 ending at 18,534, up 46 points.

📈The Nifty, which traded within the previous day's range, formed a small bodied bearish candlestick with minor upper and long lower shadows on the daily charts. The pattern indicates formation of Inside Bar candle with overlapping candles.

📈"The positive chart pattern like higher tops and bottoms continued as per daily timeframe chart and the present consolidation could be in line with the higher bottom formation of the pattern. The higher bottom reversal pattern has not been confirmed yet," Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said.

📈Considering the recent consolidation and the subsequent negation of such bearish patterns, one can expect a bounce in the market in the coming week, he said. For Nifty, immediate support is at 18,400-18,300 and the upside hurdle is at 18,650-18,850, Shetti said.

📈The broader market outperformed the benchmark. Nifty midcap 100 and smallcap 100 indices gained half a percent each.

Key support, resistance levels on Nifty

📈The Nifty may get support at 18,492 followed by 18,470 and 18,433. If the index advances, 18,565 will be the key resistance followed by 18,588 and 18,624.

Nifty Bank

📈The Bank Nifty also traded in line with benchmarks, rising 148 points to 43,938 on June 2 and formed a small bearish candlestick with upper and lower shadows, which resembled the Inside Bar pattern on the daily scale, indicating rangebound trade. It continued forming llower highs for the third straight day.

📈"At this juncture, the Bank Nifty has rising trendline support at 43,700. Going ahead, a close below 43,700 might spoil the party for the bulls and we might witness profit booking in the markets," Jigar S Patel, Senior Manager - Equity Research, AnandRathi, said.

📈On the upside, 44,500 would be an initial resistance on way to the 45,000 milestone.

📈As per the pivot point calculator, the Bank Nifty is expected to take support at 43,841 followed by 43,776 and 43,670. Resistance will be at 44,052 then 44,117, and 44,223.

Call options data

On the weekly options front, the maximum Call open interest (OI) was at 19,500 strike, with 1.06 crore contracts, which is expected to be a crucial resistance level for the Nifty.

This was followed by 18,600 strike comprising 1.03 crore contracts and 18,500 strike with more than 77.14 lakh contracts.

Meaningful call writing was seen at 18,600 strike, which added 42.43 lakh contracts, followed by 19,500 strike, which added 41.63 lakh contracts, and 18,800 strike, which added 24.66 lakh contracts.

Call unwinding was at 18,300 strike, which shed 21,750 contracts, followed by 18,100 strike, which shed 17,250 contracts, and 17,700 strike, which shed 6,400 contracts.

Put option data

On the put side, the maximum open interest was at 18,500 strike, with 1.02 crore contracts, which is expected to be an important support level in the coming sessions.

It was followed by the 18,600 strike, comprising 57.99 lakh contracts, and the 18,000 strike with 44.12 lakh contracts.

Business News Headlines

*Business News Headlines*

*Economic Times*

Ø RBI may hit rate pause button again this week

Ø Consumer Goods orders swell as brands bet big on festive season 

Ø 69% of train accidents between  FY18 and FY21 due to derailment 

Ø E-way bill generation rises to 8.82 crore in May, points to robust GST  collection in June 

Ø EV start-ups set to power India’s next unicorn club  

Ø Opec+ reaches agreement to extend output cuts into 2024  

Ø Spot airfares up 3x in a month on India’s busiest routes 

*Business Standard*

Ø GST Council likely to approve tribunal blueprint this month   

Ø India may give UK access to PV market, with riders  

Ø Railways seeks CBI probe into Odisha train accident 

Ø USFDA checks of Indian sites still below pre-Covid levels

Ø Reliance Retail, 6 others submit EoIs for Future arm 

Ø Ola Electric likely to cross $1-bn revenue this yr: Ola exec 

Ø Foreign airlines have reaped benefits of growing Indian market, says Wilson  

*Financial Express*

 

Ø DoT plans more shops to Chip firms 

Ø Street sees modest growth of India Inc's topline in FY24

Ø Falling costs power Q4 earnings  

after two quarters of weakness  

Ø FPIs pump in ₹43,838 cr in May, highest in 9 months 

Ø Lemon Tree can ride high on expansion amid improved demand 

Ø Manufacturing PMI hits 31-mth  

high in May on strong demand 

Ø Walmart shareholding in PhonePe drops to 85% 

*Mint*

Ø Govt plans ₹15k cr push for batteries 

Ø RBI may continue pause on rate hike    

Ø Saudi Arabia slashes crude oil output by 1 mn bbl a day        

Ø India to join global scheme to  

improve quality of drugs  

Ø IFC plans $500 mn long-term  

financing for smart meter cos    

Ø India may bring back CVD on  

steel to check flood of imports 

Ø Indians pick UPI over debit cards for ease of use, zero fees 

*Business Line*

 

Ø Banks cut rates on FDs of up 

to 3 years on easing liquidity

Ø Corporate India set for some big hitting on investment front: CII  president   

Ø IEAsees slowdown in solar 

installations in India this year   

Ø Upbeat on India, FPIs pump in  ₹43,838 cr in May 

Ø Balco listing: Govt holds talks  with Vedanta to withdraw  arbitration 

Ø HUL starts price cuts in some  FMCG categories  

Ø Luxury carmakers mull price hike as input costs rise     

WIPRO Buyback

WIPRO Buyback RECORD DATE Announced

Record Date for Eligibility : Friday, JUNE 16

Buyback Price : 445 ₹

Today's Closing Price : 405 ₹

Buyback Size ₹ : 12,000 Crore

Buyback Size in Share : 26,96,62,921 Shares

Retail Reservation : 4,04,49,439 Shares

STOCKS IN ACTION 2 JUNE

STOCKS IN ACTION 2 JUNE

Coal India: The government will exercise the greenshoe option in the offer for sale and offload another 9.24 crore shares on the second day after the issue was subscribed 3.46 times on the first day.

Aditya Birla Capital: The company will raise Rs 1,250 crore via preference issue 6.06 crore shares to Grasim Industries and and 1.51 crore shares to Surya Kiran Investment, respectively, at Rs 165.1 apiece.

AstraZeneca Pharma India: The company has received permission from Central Drugs Standard Control Organisation to import, sell and distribute Tremelimumab (Imjudo) concentrate, used in the treatment of patients with liver disease unresectable hepatocellular carcinoma.

NHPC: The company signed an MoU with Nepal’s Vidhyut Utpadan Company for joint development of 480 MW Phukot Karnali hydroelectric project in Kalikot district of Karnoli province of the neighbouring nation.

SJVN: The company signed a project development agreement of 669 MW Lower Arun Hydro Electric Project in Nepal. The company is also developing 217 km long associated transmission network for power evacuation and export to India.

NTPC: NTPC Green Energy, a wholly owned subsidiary of the company, signed a deal with Uttar Pradesh Rajya Vidyut Utpadan Nigam to develop renewable energy parks and projects in the state.

MOIL: The company recorded 43% growth year-on-year in manganese ore production during May at 1.53 lakh tonnes and 72% rise on year in sales at 1.53 lakh tonnes

GAIL (India): The company infused in JBF Petrochemicals Rs 2,101 crore, including equity worth Rs 625 crore and debt worth Rs 1,476 crore, under the resolution plan for the latter. With this, JBF Petrochemicals has become a wholly owned subsidiary of GAIL.

Paras Defence & Space Technologies: The company and Israel-based Controp Precision Technologies have formed a 30:70 joint venture to manufacture electro optic/infra-red systems for various applications.

Aster DM Healthcare: The entered hospital operation and management agreement with 130-bed Padmavathy Medical Foundation, based in Kollam, Kerala.

Central Bank of India: The bank entered a strategic co-lending partnership with India Shelter Finance Corporation Ltd. to offer MSME loans.

Prism Johnson: Of the proposed investment to acquire 45% stake in Renew Green (MPR Two), the company has acquired 72.76 lakh shares for Rs 7.28 crore. The remaining amount would be invested in one or more tranches by June 2024.

Can Fin Homes: Deputy Managing Director Amitabh Chatterjee, who was deputed from Canara Bank, resigned on June 01, 2023, due to his repatriation and transfer back to Canara Bank.

Affle (India): Affle International Pte, a wholly owned Singapore subsidiary of the company, has completed 100% acquisition of YouAppi Inc.

Tata Motors: The company reported a 2% decline year-on-year in domestic sales performance at 73,448 units during May. Domestic passenger vehicle sales grew 6% on year, while commercial vehicle sales dipped 12% year-on-year

Hero Motocorp: The company reported a 7% rise year-on-year in sales during May at over 5.19 lakh units.

India Infrastructure Trust: The company appointed Pooja Aggarwal as CEO and Darshan Vora as CFO, effective June 1

Adani Enterprises arm Adani Road Transport Limited terminates share purchase agreement with Swarna Tollway Private Limited & Gujarat Road & Infrastructure Company

MTAR Technologies: Societe Generale picks 1.35% stake  (4.2lk shares) at Rs 1880/share

Promoter sold 3.5lk shares

Rategain: Avataar Holdings sells 5% stake in RateGain Travel for Rs 206 crore

Key buyers include Societe Generale, ABSL MF

GRASIM: Launches Sparkle Painting services in Mumbai, Pune and Bangalore.

First painint capacity slated to commission by Mar-24

Market Indication

Market Indication:

Global: FLAT to POSITIVE

NIFTY: FLAT to POSITIVE

BANKNIFTY:  FLAT to POSITIVE

BULK Deals:MTAR Technologies, Ceinsys Tech, RateGain Travel Technologies etc.

Stocks In F&O Ban Period: Nil

Results Today: Nil

SGX NIFTY:  (Positive)

18641     +78.00    +0.42%

News and Impact

News and Impact

 

 

·      Hope of US Fed to pause hike in interest rate and negotiation of US debt ceiling deal lifted across the global market between 1-2%. The S&P 500 index and Nasdaq Composite (up 1% each) closed at their highest levels in more than nine months on Thursday, boosted sentiment with Congress making progress on raising the debt ceiling, support coming from U.S. economic data and some Federal Reserve officials who suggested there may be no need to raise interest rates again in June. As a results, US Vix nosedive (Volatility Index) 15% to close over 12-month low and fall in Dollar Index. Back home, SGX Nifty is up half percent or 74 points on account of strong domestic factors.  Manufacturing PMI during the month of May reported 31-month high which indicated strong growth in the manufacturing and factory growth. Moreover,  May GST collection remain strong of above Rs1.5lakh cr in a 5-month row and impressive auto monthly sales volume will be positive for the market sentiment. Strong FY23 GDP growth, impressive Q4 results, fall in oil price and IMD predicated normal monsoon will add fuel in the market sentiment. Yesterday, market fell by half percent but Nifty 500 stocks advance decline ratio was favourable at 1.6:1. Expects momentum continue on mid- cap and small cap stocks. Tech stocks may be positive after Global IT major Index Nasdaq Composite closed 9-month high. Metal stocks will be in focus as base metal price on LME surged to 2-week high. Auto stocks will be positive after announced strong monthly sales data. US Voting on debt ceiling  and US Job data likely to be held today. 

 

·      US Market   – US stock indexes closed higher as signs of slowing wage pressure on inflation raised hopes the Federal Reserve will pause raising interest rates in two weeks, and investors welcomed a vote in Congress to suspend the debt ceiling. Both Nasdaq and S&P 500 gained 1% to close at 9-month high while Dow Jones gained half percent.

 

·      Global market summary – US Vix (Volatility Index) declined 15% to close over 12-month low. S&P 500 and Nasdaq Composite closed 9-month high.  Brent crude fell to 1-month low, US Voting on debt-ceiling ling. Base metal price on LME 2-week high.

 

·      Asian Market – Asia stocks advanced after a renewed rally in tech giants pushed Wall Street higher ahead of jobs data due Friday as investors assess the likelihood the Federal Reserve will pause interest rate hikes in June. Hong Kong (up 2%), South Korea, Taiwan and Japan Index advance half to one percent.

 

·      European Market - : European stocks rose as investors received a positive euro zone inflation data along with reports of the US House of Representatives passing a bill to avoid a catastrophic debt default. UK and France Index gained over half percent each. Germany Index gained 1%.  European Union May Inflation fell to 6.1% vs expectation 6.3% (previous month was 7%).

 

·      Oil –  Brent Crude is trading flat at $74/bbl but biggest weekly loss in a month as persistent concerns over demand weigh on the market ahead of an OPEC+ meeting.

 

·      Gold –   Gold gained 1% to $1978/ounce after traders pared bets on further tightening this month following a flurry of data that showed some progress on getting inflation under control.

 

·      Previous Day market Update – Equity benchmark indices closed in the red for the second straight day after investors booked profits on gains following stronger-than-expected domestic growth data, and receding bets of a US rate hike. However, Nifty mid-cap and small cap stocks continued its northbound journey and ended on a record high. Nifty 500 stocks advance decline ratio was favorable at 1.6:1 due to trader shifted from large cap to small and mid-cap counters.. Upbeat in domestic sentiments after FY23 GDP growth reported at 7.2% (expectation 7%), over 24-month high FIIs net inflow during the month of May, impressive Q4 results (double digit revenue growth) and IMD predicated normal monsoon. Moreover, Manufacturing PMI during the month of May reported 31-month high and reported impressive auto monthly sales. Traders were booking profit in the last two trading sessions after the bank Nifty surged to record high and Nifty just 1.5% away from the all time high.  Sensex ended 194 points lower 0.3% to settle at 62428, dragged by banking and financial stocks. The broader Nifty dropped 46 points or 0.25% to end at 18,488. FIIs were net sellers Rs71cr while DIIs were net buyers Rs489cr yesterday.

 

·      Nifty Technical Levels – Nifty formed a Bearish Belt Hold candle on daily scale and has been forming lower lows from the last three sessions. Now it has to find support near 18442 zones, then only we can witness a bounce towards 18580 and 18666 zones while a hold below 18442 could open the further decline towards 18333 and 18181 zones.

 

·      Bank Nifty Technical Levels – Bank Nifty formed a Bearish Belt Hold Candle on daily scale as selling pressure was seen at higher zones and index ended with losses of around 340 points. Now till it holds below 44044 zones some weakness could be seen towards 43500 then 43333 levels while on the upside hurdle is seen at 44144 then 44250 zones.

 

·      Actionable BUY – Sun Pharma, Tata Motor, HAL, Eicher, Parras Defense

 

·      Brokers Radar – CLSA TGT on ICICI Prudential at 575, Adani Ports TGT by Philips Securities at 930, ICICI Prudential TGT by CLSA at 57 and Morgan Stanley TGT at 600. Bajaj Auto TGT by Macquarie at 4541. DR Reddy ADR TGT raised by Barclays to $70 FROM $66

 

·      Events – Birla Corp board meeting for fund raising, Coal India OFS for Retail at Rs225

 

·      Corporate Action  - Mahindra Rs2.50,  Infosys Rs17.50, Indusind Bank Rs14,  Steelcast Rs3.15, SYLPH TECHNOLOGIES stock split from Rs10 Re1

 

·      Global Data – Change in Non-farm payroll, Private payroll, Unemployment (US), Industrial Production (IIP) and Manufacturing Production (France). 

 

·      Market Summary – Govt. to Ask Airlines to Keep Fares in Check After Go Air Crisis, GST Collections Grow 12% To Rs 1.57 Lakh Crore In May, NHPC inks initial pact with Nepalese utility to develop 480 MW , Maruti, Escorts, M&M, Eicher, Ashok Leyland, Tata Motor, Eicher, TVS Motor and Bajaj Auto announced imprrssive Monthly sales volumes, May Manufacturing PMI rises to highest since Oct. 2020, 31 months high, S&P Affirms Reliance Industries 'BBB+' Ratings; Otlk Stable, US Set to Allow GE to Make India Military Jet Engines: Reuters, TVS hikes electric scooter prices by Rs 17,000-20,000

 

·      NHPC - State-owned hydro power giant NHPC inked an initial pact with Nepalese utility Vidhyut Utpadan Company for developing a 480 MW Phukot Karnali hydroelectric project. – Positive

 

·      Aster DM Healthcare – Company has entered into Hospital Operation and Management Agreement with Padmavathy Medical Foundation (PMF) on May 31, 2023. PMF is a 130-bed tertiary super specialty hospital situated in Sasthamkotta, Kollam District, Kerala. With this total installed capacity of the Company shall be increased to 4,547 beds.- positive

 

·      Autoline Industries - Company has received offer from Tata Motors Ltd. to setup a facility at Sanand, Gujarat to cater with the automobile parts to Tata Motors – positive

 

·      Paras Defence – Company have entered into a Joint Venture Agreement with CONTROP Precision Technologies Limited ("CONTROP"), Israel, with the purpose of undertaking business of manufacturing / production, implementation / installation, Integrated Logistics Support ("ILS"), after sale support, training etc.,

 

·      Coal India: Centre’s offer for sale (OFS) of shares in Coal India received a robust response from non-retail or institutional investors and the issue was subscribed 3.46 times on Thursday

 

·      TVS Motor – Company increased the price of its TVS IQube electric scooter by Rs 17,000 to Rs 20,000 depending on the variant – positive

 

·      The goods and services tax (GST) collections for the month of  May stood at Rs 1.57 lakh crore, a growth of 12 percent over the year-ago period. The monthly GST revenue is at more than Rs 1.4 lakh crore for 14 months in a row, with Rs 1.5 lakh crore crossed for the fifth time since inception of GST. Last month, GST collection was at a record high of Rs 1.87 lakh crore.- Positive for the market sentiment – to reduce fiscal burden and indicating all round growth in economy after announced solid GST collection.

 

·      Airlines stocks – The government is working with airlines to bring fares under control after Go Airlines India’s collapse led to a surge in ticket prices, Aviation Minister Jyotiraditya Scindia said at the Times Network India Economic Conclave 2023. – Any decline on Indigo will be buying opportunity.

 

·      US Set to Allow GE to Make India Military Jet Engines: Reuters –The Biden administration is ready to approve a deal that would allow General Electric Co. to make jet engines for Indian military aircraft, Reuters reports, citing three people familiar with the matter. The deal is expected to be signed and announced by the time President Biden hosts India’s Prime Minister Narendra Modi for an official state visit on June 22, the people told Reuters

 

·      Reliance Industries – Rating agency affirming our 'BBB+' long-term issuer credit rating on Reliance Industries. S&P says Reliance Industries operating performance is likely to remain resilient over the next two years – Positive

 

·      L&T: The power transmission and distribution business of Larsen & Toubro (L&T) has said it will set up infrastructure for the world’s largest green hydrogen plant being built by NEOM Green Hydrogen Company – positive

 

·      Aditya Birla Capital: Aditya Birla Capital on Thursday said it plans to raise ₹1,250 crore through a preferential issue of shares to its promoter and promoter group companies – positive

 

·      Power Finance Corporation: State-owned non-bank lender Power Finance Corporation (PFC) on Thursday said its Director (Finance) Parminder Chopra has been assigned the additional charge of the company's CMD - positive

 

·      TVS Motor - Company, said, "TVS Motor is spearheading the EV transformation narrative in the country. Backed by this electrification journey, TVS iQube recorded a sales milestone of 1 lakh units for its range of scooters in the last financial year, which is a testament of its strong community of happy customers. In May 2023, TVS iQube crossed 20,000 units of retails and continues to have a healthy booking pipeline of over 30,000 units." – positive

 

·      GOCL Corp –Company secured orders worth Rs257cr from Coal India for the supply of detonators,

 

·      NCC Company said it had received new orders worth Rs 2,088 crore in the month of May. 2023. Of the aforementioned amount, company's building division has signed the agreements for the orders amounting Rs. 1,668 crore and water division secured order for Rs. 420 crore – Positive

 

·      May Auto sales Update – Maruti, Escorts, M&M, Eicher, Ashok Leyland, Tata Motor, Eicher, TVS Motor and Bajaj Auto announced better than expected monthly sales data - Maruti Total sales at 178083 uint (up 10% YoY) – expectation 164746 unit, M&M total sales at 95541 unit (up 14% YoY) – expectation 95471. Escorts May sales at 9167 unit (up 9% YoY) – expectation 7891. Bajaj Auto May sales at 355148 unit (up 29% YoY) – expectation 326724. Tata Motor reported 73448 vehicles (down 2% YoY) – Expectation 71058, Ashok Leyland reported 13134 vehicles (down 1% YoY) – Expectation 12926. TVS Motor reported 330609 units  (up 9.1% YoY) – Expectation 325724 unit.

 

·      NMDC – Company reported iron ore sales during the month of May at 3.62mt (up 37% YoY) and production increased to 3.71mn tons (up 16% YoY) – positive

 

·      May Manufacturing PMI rises to highest since Oct. 2020 – Manufacturing PMI during the month of May reported at 58.7 vs 57.2 previous month

 

·      Birlasoft – Company has launched bCloud+, an end‐to‐end solution to help enterprises migrate on‐premises Oracle JD Edwards instances to Oracle Cloud Infrastructure (OCI). – positive 

 

·      Mastek – Company has considered and approved the appointment of Mr. Hiral Chandrana, as a Chief Executive Officer and Key Managerial Personnel of the Company with effect from May 31, 2023. Further, he shall continue to be the Global Chief Executive Officer of the Mastek Group Subsidiaries. - positive

 

·      South India Bank - Board approved a panel of candidates for the position of managing director and chief executive officer. As per the norms set by the Reserve Bank of India, the bank will now submit its application to the RBI with the names of the candidates in order of preference seeking approval for the appointment of the positions. – positive… stock gain 10% yesterday

 

·      Mphasis Ltd – Company launched a business unit that aims to help clients integrate AI capabilities into their existing technology platforms. The unit Mphasis.ai will offer clients advisory to identify key AI interventions for tasks such as contact center transformation, customer experience transformation. - positive

 

·      Adani Enterprises: Adani Road Transport, a wholly-owned subsidiary of Adani Enterprises, has decided to terminate the agreement to acquire Macquarie Asia Infrastructure Fund's (MAIF) toll road in Andhra Pradesh, Gujarat for ₹3,110 crore

 

 

Pre-Market Derivatives and Technical Set-up

*Pre-Market Derivatives and Technical Set-up*

◆ Nifty index opened positive and remained choppy for first half of the session. It was finding tough to surpass any immediate hurdle and bears were sliding the index lower to breach its previous day’s low levels in the last hour of the day to touch 18464 marks. It has been witnessing profit booking from last two sessions and closed with losses of around 50 points. It formed a Bearish Belt Hold candle on daily scale and has been forming lower lows from the last three sessions

◆ Now it has to find support near 18442 zones, then only we can witness a bounce towards 18580 and 18666 zones while a hold below 18442 could open the further decline towards 18333 and 18181 zones

◆ India VIX was down by 3.11% from 11.97 to 11.59 levels. Volatility cooled off and thus in turn created swings within a smaller range in the indices making it choppy for most part of the day

◆ On option front, weekly Maximum Call OI is at 18600 then 18500 strike while Maximum Put OI is at 18500 then 18400 strike. Call writing is seen at 18600 then 18500 strike while Put writing is seen at 18500 then 18300 strike. Option data suggests a broader trading range in between 18200 to 18800 zones while an immediate trading range in between 18300 to 18700 zones

◆ Bank Nifty opened on a flattish note and remained consolidative in a narrow range of 200 points between 43950 to 44150 zones in the first half of the session. However it failed to hold its key level of 44144 marks and corrected sharply towards 43700 zones in the last hour of the session. It formed a Bearish Belt Hold Candle on daily scale as selling pressure was seen at higher zones and index ended with losses of around 340 points

◆ Now till it holds below 44044 zones some weakness could be seen towards 43500 then 43333 levels while on the upside hurdle is seen at 44144 then 44250 zones

◆ Bullish setup in Apollo Hospital, India Cement, RBL Bank, M&M Fin, Naukri, Intellect, Canfin Homes, Marico, Glenmark, Tatacomm, Havells, Indhotel, Bajaj Auto, Pidilitind, Tatamotors, Poly Cab, Asian Paint, Sunpharma, IDFC First Bank and Nestle Ind 

◆ Bearish setup in IGL, Navinfluor, SRF, Jindalstel, ICICI Bank, Petronet and GNFC

7 Companies of FMCG Mcap

*7 Companies of FMCG Index are Close or Above 1Lk Cr Mcap*👇

HUL: 6.20 Lk Cr

ITC: 5.50 Lk Cr

Nestle: 2.10 Lk Cr

Britannia: 1.12 Lk Cr

Varun Bev: 1.10 Lk Cr

Godrej Cons: 1.08 Lk Cr

Dabur: 1Lk Cr

NIFTYVIEW

NIFTYVIEW

                

🎯 NIFTY likely to *open or Around 18509-18552*

🎯 NIFTY is likely to see *RESISTANCE or around 18606-18663-18729*

🎯 NIFTY KEY *SUPPORT lies 18459-18420-18338*

 

🎯Fellas *Nifty is likely to trade sideways to positive & possibly surpassing 18729 till tomorrow😉 Use the dips to add longs as we are headed towards 19000🙏 Stock specific movements could be in focus today🙏 BankNifty has crucial support 43000 meanwhile positional target remains 45800 kind of levels🙏NiftyAuto may continue to face resistance 14313🙌 NiftyIT may remain sideways to positive as positional target continue to remain 30450 kind of levels 🙏DowFutures may now head for 35000+ kind of levels after relief from USDebtCeiling extension🙏*

🎯 Fellas *USDINR may head for 82 kind of levels🙏*

🎯 Stock on *radar JUBFOOD🙏*

*🟢Disclaimer: Our clients may or may not have interest in the above stock🙏*

https://chat.whatsapp.com/DFilBxunI6RLGEdZTwMkRK

Derivatives update

*Derivatives update*

Good morning !! 

Derivatives update for Thursday, 1st June 2023.

India VIX was down by 0.31% from 12.01 to 11.97 levels. Volatility hovered around the same range giving some comfort to the bulls to buy at any small decline.

Nifty *Put/Call Ratio* (OI) decreased from 1.32 to 0.99 level. 

On option front, weekly Maximum Call OI is at 18600 then 18700 strike while Maximum Put OI is at 18500 then 18400 strike. Call writing is seen at 18600 then 18500 strike while Put writing is seen at 18500 then 18350 strike.

*Option data suggests a broader trading range in between 18300 to 18800 zones while an immediate trading range in between 18450 to 18700 zones.*

For weekly Bank Nifty, Maximum Put OI is at 43500 then 44000 strike and maximum Call OI is placed at 44500 then 45000 strike. We have seen significant Call writing 44200 and Put writing is also witnessed at 43500 with significant unwinding at 44500 strike. 

Bank Nifty Put Call Ratio decreased from 1.22 to 0.82. Implied volatility rose from 13.41 to 13.43 levels.

Bank Nifty (CMP 44,128.15)

Data setup for Bank Nifty suggests a trading range in between *43600/43850 to 44500/44750 zones.*

Looking ahead at the FII’s derivatives activity, there was long liquidation in index futures, call & put buying in index options and short built up in stock futures.

In the cash market, FIIs were net buyers to the tune of 3406 crores while DII’s were net sellers worth 2529 crores. FIIs Index Long Short Ratio decreased to 53.92%.

Derivatives data and price set up suggests, Nifty has to hold above 18500 zones, for an up move towards 18666 and 18888 zones while on the downside support exists at 18442 and 18333 zones.

Bank Nifty has to continue to hold above 44144 zones for an up move towards 44500 then new life high of 44750 zones while on the downside support exists at 43850 then 43600 zones.

Thank you. Have a great trading day and weekly expiry ahead..!!

News and Impact

News and Impact

 

 

·      Expects market to open on a positive note after the news that the US House passed on debt-ceiling bill in 314-117 vote, easing US default concerns.  Asian markets recovered from the intra-day low and US Future bounced back into positive territory after the news that the US Congress passed debt-limit legislation forged by President Joe Biden and Speaker Kevin McCarthy. In the domestic front, better than expected FY23 domestic GDP data, over 24-month high FIIs net inflow during the month of May, impressive Q4 results (double digit revenue growth) and IMD predicated normal monsoon will be positive for the market sentiment. Yesterday, Index decline over half percent due to profit booking. However, Nifty 500 stocks advance decline ratio was favorable at 1.3:1.  SGX Nifty declined by quarter percent or 50 points. Any decline will be good opportunity to buy in Indian bourse. FIIs were net buyers nearly Rs28000cr or $3.5bn during the month of May, highest since Feb 2021. Domestic Q4 GDP data reported at 6.1% while expectation was 5% on account of strong growth in the manufacturing, Infra and financials sectors. US Bond yield declined yesterday after the US Fed officials indicating to pause on hike in interest rate in the next policy meeting. Intra-day volatility may not be ruled out on ahead of weekly Nifty and Bank Nifty expiry. Auto stocks will be in focus ahead of monthly sales data to be release today. Government cut ATF fuel price will be positive for airlines stocks. Expects positive for hotel and Restaurant stocks after news that the government cut gas cylinder price.

 

·      US Market   – U.S. stocks ended lower on Wednesday as investors waited for a House vote on the debt ceiling deal to avert a potential default. Both Dow Jones and Nasdaq Composite declined half percent each.

 

·      Global market summary –  The US House passed debt-limit legislation forged by President Joe Biden and Speaker Kevin McCarthy that would impose restraints on government spending through the 2024 election and avert a destabilizing US default. Lawmakers from both parties joined to approve the bill 314-117 Wednesday evening, sending the measure to the Senate for

·      consideration as a default deadline draws near. European markets witnesses biggest monthly decline during the month of May. 

 

·      Asian Market – Stocks fluctuated in Asia on Thursday as the House began voting on the US debt ceiling deal and investors weighed the prospect of a pause in rate hikes from the Federal

·      Reserve this month. Japanese and Australian shares rose, those in South Korea edged lower and US equity futures swung between small gains and losses.

 

·      European Market – European stocks closed May with their biggest monthly drop this year as luxury companies slumped after data showed China’s economic recovery faltering and concern of US Debt ceiling negotiation. UK, Germany and France Index declined over 1% each. 

 

·      Oil –  Oil fell for a third day as industry data pointed to rising US crude stockpiles with demand concerns hanging over the market. Brent Crude declined 2% to $72/bbl

 

·      Gold –   Gold rose for a third day as traders pared bets for more tightening from the Federal Reserve ahead of a vote on the US debt-limit deal. Gold gained 1% to $1966/ounce

 

·      Previous Day market Update – After a rally in the last four trading sessions, the benchmark of the equity Index slipped over half percent on account of profit booking amid weakness in the global market. Across the global markets declined as concerns about US debt-ceiling deals and weak manufacturing PMI data announced from the world's second-largest economy China impacted the market.  Investors were booking profit ahead of domestic GDP data to be released in the post-market hours today. Banking and metal stocks were major losers today while FMCG, telecom, Nifty mid-cap and small cap stocks posted smart gains. Buying interest came in the last hour on account of MSCI Index final day for re-balancing. Stocks like Sona BLW, ABB, Kotak Bank, Zomato, Max Healthcare soared between 3-8% from the intra-day.  Nifty 500 stocks advance-decline ratio was 1.3:1. There was bullish sentiment in the market on account of strong FIIs buying interest, impressive quarterly results, a fall in oil price, and strong micro economy data. Sensex dropped 347 points, or 0.6%, to close at 62,622, while it touched low of 62401. Nifty slumped 99 points, or 0.5%, to close at 18,534 while touching intra-day low of 18484.  FIIs were net buyers Rs2090cr while DIIs were net sellers Rs439cr yesterday.

 

·      Nifty Technical Levels -  Nifty formed a Bearish candle on daily scale but with longer lower shadow indicating support levels are held intact. Now it has to hold above 18500 zones, for an up move towards 18666 and 18888 zones while on the downside support exists at 18442 and 18333 zones.

 

·      Bank Nifty Technical Levels – Bank formed a Bearish candle on daily scale with long lower shadow as buying is visible at lower zone but ended in the negative territory near its crucial 44144 marks. Now it has to continue to hold above 44144 zones for an up move towards 44500 then new life high of 44750 zones while on the downside support exists at 43850 then 43600 zones.

 

·      Actionable BUY – Tejas, Tech Mahindra, Borosil, Dixon Tech, IndiGo, Indian Hotel

 

·      Brokers Radar –  Citi Union Bank TGT by Macquarie at 140, Coal India Citi TGT at 240

 

·      Events –Weekly Nifty and Bank Nifty expiry, Coal India OFS for Non-retail at Rs225 (CMP 241). Ab Capital board meeting for fund raising. Escorts price hike on tractors to implement from today.

 

·      Corporate Action  - Aptech Rs6, Shree Cement Rs55

 

·      Global Data – Non-Farm Productivity, Initial Jobless Claims, Manufacturing PMI and Construction Spending. (US), Consumers Credit, Manufacturing PMI and Mortgage Application(UK). Manufacturing PMI (France). Manufacturing PMI (Germany).

 

·      Market Summary – Govt to sell up to 3% in Coal India via OFS, Domestic GDP grows at 6.1% in March quarter; FY23 growth at 7.2%, Dixon Techs To Partner With Xiaomi To Make Mobile Phones, PTC India Signs Two Long-Term Power Purchase Agreement, No Plans to Pare Stake in Vedanta Ltd., Anil Agarwal Says, SBI Cards Plans To Raise Rs 3,000 Crore From Debentures

 

·      GDP Growth ahead of expectation - Economy grew faster than the government’s expectations last year, as demand spurred an expansion in the services sector and cushioned the impact of elevated interest rates. Q4 GDP grew at 6.1 per cent (YoY) vs previous quarter 4.4% - Bloomberg expectation 5%FY23 GDP growth at 7.2% vs 9.1% (YoY) – Expects positive for the market sentiment on account of strong growth in manufacturing, Infra and financials.

 

·      SBI Card - Company plans to raise up to Rs 3,000 crore by issuing debentures to fund business growth.- positive

 

·      Focus on Airlines stocks  - ATF price was reduced by Rs 4,606 per kilolitre, or 4.09 per cent, to Rs 107,750.27 per kilolitre (kl) in the national capital, according to a price notification of state-owned fuel retailer – Positive for IndiGo

 

·      Coal India OFS - The government will sell up to 3% of its stake in Coal India to raise about Rs4,200 crore through a two-day offer-for-sale (OFS) from Thursday. The offer price at Rs225 a share, 7% discount against the previous day’s close at Rs241. Non-retail segment for to today while retail segment for tomorrow. – Buying opportunity

 

·      Laurus Lab – Company to buy 7.24% more stake in Immunoact for Rs80cr. Company’s stake in Immunoact to increase to 33.86%

 

·      MOIL: The company increased prices of manganese ore grades BGF452, CHF473 and GMF569 by 10%, effective from the June 1. - positive

 

·      Tata Motors: The company is looking to buy back external commercial bonds worth $250 million from bond holders.- positive

 

·      HFCL: The company will spend Rs 470 crore to expand current optical fibre capacity to 33.9 million fibre kilometer per annum from 10 million fibre kilometer per annum at its manufacturing facility in Telangana – positive

 

·      Vinati Organics: The company bought additional 65.97 lakh shares of subsidiary Veeral Organics for Rs 6.59 crore.

 

·      Lemon Tree Hotels: The company will acquire 9.67 lakh compulsorily convertible preference shares of Fleur Hotels from APG Strategic Real Estate Pool NV at Rs 505 apiece, resulting in a total outgo of Rs 48.84 crore.

 

·      Steel Authority of India: Amarendu Prakash has taken over as chairman of the company – positive

 

·      Rainbow Children’s Hospital: The company appointed Vikas Maheshwari as the chief financial officer, effective June 1, following resignation of R Gowrisankar from the position. - positive

 

·      Vedanta - Billionaire Anil Agarwal has no plans to reduce his stake in Vedanta, the chairman of parent Vedanta Resources said Wednesday, adding that the company could explore the option only if the need arises in the interest of the country. Vedanta Resources has a very comfortable debt-to-equity ratio – Long term positive

 

·      Dixon Technologies – Company and Xiaomi India plan to partner for manufacturing and exporting mobile phones from India, as a part of its 'Make In India' commitment.- positive

 

·      PTC India - Company has signed two agreements for purchase of 215 MW electricity on a long term basis with Brookfield Renewables for purchase of 100 MW solar power, another pact is with V S Lignite for purchase of 115 MW thermal power.- Positive

 

·      Vedanta Resources pays off all its maturing loans and bonds due in May and June 2023. Vedanta’s gross debt stands at $6.4 billion, as of today, down from $6.8bn at the end of April 2023. Long term positive

 

·      Himadri Speciality – Company invests AU$ 10.32 million or Rs 55.43 crore in Sicona Battery Technologies Sicona is an Australian startup specializing in silicon anode technology for lithium-ion batteries.

 

·      Poonawalla Fincorp will sell 24.98 crore shares in its unit Poonawalla Housing Finance to Perseus SG Pte., a TPG Global LLC entity.  RBI has approved the proposed divestment – positive

 

·      Focus on logistic and food grain stocks - The government will bring a policy for world's biggest food grain storage scheme under the cooperative societies sector. The government will make an allocation of approximately Rs 1 lakh crore. Under this scheme, a godown of a capacity of 2000 tonnes will be constructed in every block – Expects positive for KRBL, Godrej Agrovat, Container Corp, Aegis Logistic,

 

·      Mahindra & Mahindra: The company incorporated subsidiary Mahindra Last Mile Mobility to manage its three-wheeler and small commercial vehicle businesses. The auto major also incorporated a step-down subsidiary, Icarus Hybren, to run the renewable energy production and distribution business. - positive

 

·      Axis Bank: The board appointed former RBI deputy governor NS Vishwanathan as an additional director for a period of four years, up to May 29, 2027. - positive

 

·      Aurobindo Pharma: The company received tentative new drug application approval from the U.S. FDA for HIV drugs Dolutegravir, Entricitabine, and Tenofovir Alafenamide tablets. – positive

 

·      Sun Pharm: The company received approval from China’s National Medical Products Administration for its new drug application of tildrakizumab injection, used to treat moderate-to-severe plaque psoriasis. - positive

 

·      Lupin: The company entered a strategic collaboration with Enzene Biosciences to launch Cetuximab in India, used in treatment of head and neck cancer. - positive

 

·      Welspun Corp - Company guided for a 50% growth in its revenue over FY24 to approximately Rs 15,000 crore, as per the company's investor presentation. Welspun also targets increasing natural gas consumption from 6% to 15% of the energy mix by 2030. It also expects refining capacity to increase from 250 MTPA to 450 MTPA over the next few years. – Positive

 

·      Birlasoft – Company has launched bCloud+, an end‐to‐end solution to help enterprises migrate on‐premises Oracle JD Edwards instances to Oracle Cloud Infrastructure (OCI). – positive 

 

·      Mastek – Company has considered and approved the appointment of Mr. Hiral Chandrana, as a Chief Executive Officer and Key Managerial Personnel of the Company with effect from May 31, 2023. Further, he shall continue to be the Global Chief Executive Officer of the Mastek Group Subsidiaries. – positive.

 

·      Deloitte Flags Adani Port Transactions Citing Lack of Review -  Adani Ports’s auditor said insufficient disclosures over transactions with certain entities means it can only issue a qualified opinion on the company’s accounts, returning the spotlight to allegations made by short seller Hindenburg Research on Gautam Adani’s empire. Deloitte Haskins & Sells LLP raised concerns on Tuesday over transactions with three entities, which the company said were unrelated parties. But the auditor said it could not independently confirm that the parties were indeed unrelated, and that the company has refused to get an independent external xamination that would help prove so.

 

 

 

STOCKS IN ACTION 1 JUNE

STOCKS IN ACTION 1 JUNE 

Coal India: The government will sell up to 18.48 crore shares of the company, representing a 3% stake, via an offer for sale on June 1 and 2. The floor price of the offer has been pegged at Rs 225 per share.

MOIL: The company increased prices of manganese ore grades BGF452, CHF473 and GMF569 by 10%, effective from the June 1.

Tata Motors: The company is looking to buy back external commercial bonds worth $250 million from bond holders.

HFCL: The company will spend Rs 470 crore to expand current optical fibre capacity to 33.9 million fibre kilometer per annum from 10 million fibre kilometer per annum at its manufacturing facility in Telangana.

Bank of India: The bank hiked marginal cost of funds-based lending rates by five basis points across tenures, effective June 1.

Mahindra & Mahindra: Subsidiary Mahindra Holdings completed the sale of 30% stake of Mahindra Susten to 2452991 Ontario, a wholly owned subsidiary of Ontario Teachers' Pension Plan Board. Additional 9.99% stake of Mahindra Susten will be completed by March 31.

Laurus Labs: The company will acquire additional 7.24% stake in Immunoadoptive Cell Therapy for Rs 80 crore. Some promoters and senior management of the company will also acquire 0.54% stake in ImmunoACT for Rs 4 crore through secondary purchases. The company already holds 26.62% stake in ImmunoACT.

Vinati Organics: The company bought additional 65.97 lakh shares of subsidiary Veeral Organics for Rs 6.59 crore.

Lemon Tree Hotels: The company will acquire 9.67 lakh compulsorily convertible preference shares of Fleur Hotels from APG Strategic Real Estate Pool NV at Rs 505 apiece, resulting in a total outgo of Rs 48.84 crore.

Steel Authority of India: Amarendu Prakash has taken over as chairman of the company, effective May 31.

Rainbow Children’s Hospital: The company appointed Vikas Maheshwari as the chief financial officer, effective June 1, following resignation of R Gowrisankar from the position.

South Indian Bank: The board approved the panel of candidates for the position of managing director and chief executive officer. This will be sent to the Reserve Bank of India for approval. The bank also appointed General Manager Nandakumar G as the head of inspection and vigilance department and head of internal audit and chief of internal vigilance, effective June 1.

Gati: Pirojshaw Aspi Sarkari has stepped down as the chief executive officer of Gati to take charge as managing director and CEO of material subsidiary Gati-Kintetsu Express, effective immediately. Shashi Kiran Shetty, chairman and managing director of Gati, has been appointed as non-executive chairman of Gati-Kintetsu Express.

PNC Infratech: Bhupinder Kumar Sawhney has stepped down as chief financial officer of the company on health grounds, effective May 31.

Adani Total Gas: MSCI - Update On Implementation Treatment Of Adani Group And Associated Securities During May 2023 Index Review || MSCI Says Adani Total Gas, Adani Transmission Will Be Deleted From MSCI Global Standard Indexes WEF June 1

Adani Enterprises: Adani To Raise USD 3.5 Bn Through Share Sale In 3 Cos; Adani Green Energy Board Approval For Usd 1 Bn Share Sale Next Month - PTI, Citing Sources

Bharat Road Network: Court Dismissed NHAI Application To Set Aside 2019 Arbitration Award To Co's Unit

Market Indication

Market Indication:

Global: FLAT to NEGATIVE

NIFTY: FLAT to NEGATIVE

BANKNIFTY: FLAT to NEGATIVE

BULK Deals:Kalpataru Power Transmission, Krishna Institute of Medical Sciences etc.

Stocks In F&O Ban Period: Nil

Results Today: Nil

SGX NIFTY: (Negative)

18659 -70.50 -0.38%

News and Impact

News and Impact

 

 

·      Worries about debt-ceiling negotiation voting to be held today in the US Congress and lower than expected China PMI data, may open domestic market on a flat to negative note. SGX Nifty declined nearly quarter percent or 50 points while most of the Asian market fell half to one percent in the morning. US Future are exhibiting on a mixed bag. On the other hand, Brent crude nosedived 4% to 1-week low on account of weaker global demand and sufficient supply ahead of an upcoming OPEC+ meeting.  Overnight, US market ended on a mixed bag as investors weighed a tentative U.S. debt ceiling deal that needs Congress approval as well as the potential for another interest rate hike in June. President Joe Biden and Republican House Speaker Kevin McCarthy expressed confidence that they can muster the necessary support for the bill before voting commences, which could be held today. Back home, expects range bound market today on ahead of US voting outcome for debt ceiling deal. Moreover, domestic GDP number will be release in the post market today. Undertone bullish sentiment in the market on account of strong FIIs buying interest, impressive quarterly results and strong micro economy data. FIIs were net buyers over Rs2000cr yesterday, highest ever buying since Feb 2021 or 27 months high. FIIs bought $3bn or Rs24500cr during the month of May. Nifty is just 1.5% shy away from its all-time high level of 18,887, it hit in December 2022. Traders buy on dips strategy continue on account of  Nifty formed a bullish candle on daily scale and gave the highest daily close of the last 112 sessions. The Nifty Midcap 100 index already hit its all-time high along with the Nifty Bank. Bank Nifty also formed a bullish candle on daily scale and gave the highest ever close. Auto stocks will be in focus today ahead of monthly sales data will be announce tomorrow. Domestic CPI data and MSCI Global Standard Index today, as a part of the May rejig exercise. Euro zone CPI and GDP data will be release today. Expects positive for airlines, paints, cement stocks due to benefit of fall in oil price.

 

·      US Market   – U.S. stocks ended mixed on Tuesday as investors weighed a tentative U.S. debt ceiling deal that needs Congress approval as well as the potential for another interest rate hike in June. Dow Jones slipped 0.2% while Nasdaq Composite gained 0.3%

 

·      Global market summary –  US Congress Voting today for debt ceiling deal negotiation deal at 8.30PM in US Time. Brent Crude fell to 1-week low. S&P 500 ended 9-month high. China announced lower than expects May PMI data.

 

·      Asian Market – Asian stocks fell in the morning after momentum in US equities faded and Congress considered the debt accord that’s needed to head off a catastrophic default. Shares slipped in Japan, Taiwan and Australia. Hong Kong Index slipped over 1% after China announced lower than expects May PMI data.

 

·      European Market – European stocks dropped yesterday on account of poor economy data  and lower oil prices weighed on the energy sector, while Unilever Plc and Nestle SA dropped after announcing changes to the chief financial officer role. Both UK and France Index declined over 1% each as worries that central banks would keep interest rates higher for longer because of elevated inflation have also capped risk demand

 

·      Oil –  Oil held its biggest decline by in four weeks on signs of weaker demand and sufficient supply ahead of an upcoming OPEC+ meeting. Brent Crude  declined by 4% to 1-week low at $73/bbl.

 

·      Gold –   Gold gained 1% to $1966/ounce as Treasury yields slumped on hopes that US Congress will pass a debt-ceiling deal to avoid a default.

 

·      Previous Day market Update – After opening on a flat note,  equity benchmark indices closed marginally higher for the fourth straight day, inching closer to their record high levels amid continued purchases from foreign investors. Bajaj twins, HDFC twins, Hindustan Unilever, ITC, Infosys and Kotak Bank lifted Nifty to a positive territory. The Nifty Midcap 100 index already hit its all-time high along with the Nifty Bank. Sentiment boosted on account of rally in the global markets and US future on the hopes that Congress will pass a debt accord to head off a default as White House and Republican congressional leaders stepped up lobbying in support of the deal. On the domestic front,  strong FIIs buying interest, impressive quarterly results and IMD forecast of normal monsoon boosted the market sentiment. Sensex surged 123 points or 0.20% to settle at 62,969 and Nifty rose 35 points or 0.20% to end at 18,634. Financials, FMCG and select IT stocks were major gainers today while metal stocks witnessed profit booking. Nifty 500 stocks advance decline ratio was 1:1.  FIIs were net buyers Rs2090cr while DIIs were net sellers Rs439cr yesterday.

 

·      Nifty Technical Levels -  Nifty formed a Bullish candle on daily scale and gave the highest daily close of the last 112 sessions. Now it has to hold above 18550 zones, for an up move towards 18750 and 18888 zones while on the downside support exists at 18550 and 18442 zones.

 

·      Bank Nifty Technical Levels – Bank formed a Bullish candle on daily scale and gave the highest ever close. Now it has to continue to hold above 44144 zones for an up move towards 44750 then new life high of 45000 zones while on the downside support exists at 44144 then 44000 zones.

 

·      Actionable BUY – REC, LTIMindtree, Coal India, Prestige Estate, 

 

·      Brokers Radar –  Adani Ports – Goldman Sachs TGT at 800, Nomura TGT at 1075. CLSA TGT at 878, Citi 972,, PI Industries TGT by Philips Securities at 4095, Chambal Fertilizer TGT by Philips Securities at 384.  Nomura TGT on Sona BLW at 573, Torrent Pharma TGT – Goldman Sachs TGT at 2025 and Jefferies TGT at 1650 , JK Cement TGT by Jefferies at 3260.

 

·      Events – MSCI Re-balancing, GDP and Eight Infrastructure Data, Sona BLW and HDFC Life block deal today.

 

·      Corporate Action  - Macrotech bonus 1:1, SBI ex-dividend 11.30 and  DB Corp Rs3,

 

·      Global Data – Mortgage Application and US Fed Reserve Release Beige Book (US), CPI, Consumer Spending, GDP and PPI (France). CPI and Unemployment Change (Germany). Composite PMI, Manufacturing PMI and Non-Manufacturing PMI. (China)

 

·      Market Summary – Coal India raises high grade non-coking coal prices by 8%, Aureus Investment to sell 3.2% stake in Sona BLW today, Abrdn likely to sell 1.66% stake in HDFC Life via block deal today, TCS Bags Contract from Swedish Bank, Sun Pharma, Philogen Enter Agreement To Commercialize Skin Cancer Drug, RateGain's International Flight Bookings At Highest Since Pandemic, Prestige Estates buys out DB Group’s balance stake in 2 Mumbai projects for Rs1,176 crore, Apollo Hospital announced lower than expected Q4 Ebitda and Ebitda margin.  MSCI Global Standard Index 2023 Rejig Today

 

·      MSCI Global Standard Index 2023 Rejig Today - Shares of Adani Transmission, Adani Total Gas and Indus Towers will exit the MSCI Global Standard Index on May 31, 2023, as a part of the May rejig exercise. On the other hand, Max Healthcare Institute, Hindustan Aeronautics (HAL) and Sona BLW Precision Forgings will make an entry into the index.

 

·      Coal India - India's largest coal supplier Coal India has raisedprices of non-coking coal of grade G2 to G10 by 8% over the existing notified prices with effect from May 31, five years after the last hike. – positive.

 

·      TCS– Company secured a contract from Sweden-based Ikano Bank AB for its pan-Europe core banking transformation – positive

 

·      HDFC Life - Abrdn, formerly known as Standard Life, is likely to sell 1.6 percent equity stake or 3.57 crore shares in HDFC Life Insurance company via block deal today price range between Rs 563-585 per share (CMP 585). HDFC Bank, is set to acquire a 1.66% stake in HDFC Life from its UK-based joint venture partner –– We are positive on the HDFC Life – positive

 

·      Sona BLW - Promoter Aureus Investment Pvt Ltd plans to sell 3.25% stake or 1.9cr shares in Sona BLW Precision Forgings through a block deal today. The floor price for the sale is Rs500 a share, a discount of 7% to Tuesday’s closing price of Rs 535.50. – Good buying opportunity at lower level.

 

·      Govt may cut solar panel import tax from 40% to 20% to make up domestic shortfall - Rrenewable energy ministry has held talks with the finance ministry to approve its request to cut the import tax on solar panels from 40% to 20%, said the three sources – Expects positive for Tata Power

 

·      Infosys – Company and the French Tennis Federation (FFT) have revealed new innovations that will continue their partnership to transform and power the game in novel, smarter more immersive ways

 

·      Prestige Estates -  Company has made two strategic acquisitions to attain complete ownership of two key projects in central Mumbai’s Bandra-Kurla Complex (BKC) and South Mumbai’s Mahalaxmi locality by picking up balance stake from DB Group for a total consideration of over Rs 1,176 crore. Both the projects are currently under construction and are expected to be completed within the next 3- 4 years. – positive

 

·      ITC - The company revived its plan to carve out the hotels business as the sector has recovered from the pandemic's lows. The conglomerate was looking for an "alternative business structure" for its hotel business, ITC Chairman Sanjiv Puri said in an interview with Hindu BusinessLine. ITC's plans to spinoff its hotel businesses had been shelved since the pandemic. Recovery in its hotel business after the pandemic was the primary reason for the demerger proposal to be "back on the table", Puri said. - Positive

 

·      Vedanta -  Finsider International, a unit of Vedanta Ltd., pledges 4.4% of the latter's equity to Glencore International AG for a facility worth $250 million. The facility availed from Glencore will be operated by Vedanta Resources Ltd. Funds raised from Glencore will be used to refinance group debt – Positive

 

·      Sun Pharma- Sun Pharma, Philogen signed licensing agreement to sell Philogen’s specialty product, Nidlegy in Europe, Australia and New Zealand. The drug will be used to treat melanoma and non-melanoma skin cancers and is currently in Phase III clinical trials. – positive

 

·      RateGain's International - RateGain says international leisure flight bookings from India jumped to its highest post pandemic in June-August. RateGain Travel Technologies' latest report shows  international leisure flight bookings from India rose by 40% YoY in June-August 2023- its highest after pandemic. Demand remains 15-20% lower than pre-pandemic high of 2019 - positive

 

·      Torrent Pharma – Company approved rising Rs5000cr vis QIP and others  - positive

 

·      NDR Auto Componenet – Company announce bonus in the ratio of 1:1

 

·      Dividend – Astrazenacs Rs16, BCL Industries Rs5, La Opala Rs3, Goodyear India Rs26.50, Torrent Pharma Rs8

 

·      RattanIndia Enterprises – Company launched a new cargo drone ‘L-40’ by its company, Throttle Aerospace Systems The new L-40 drone has a higher payload capacity of 40 kgs as compared to the 20 kgs capacity L-20 drones – positive

 

·      Inox Wind- Company  bagged an order for a 150MW wind project from NTPC Green Energy's renewable arm. The project shall be executed in Gujarat. Inox Wind has recieved a total order of 550 MW from NTPC till date. – positive

 

·      Jyoti Ltd – Company bagged an order worth Rs6.21cr  from IOC for the design, engineering, manufacturing, testing and supply of 58 6.6-kilovolt and 11 KV vacuum circuit breaker panels.- Avoid due to poor balance sheet.

 

·      Force Motor announced strong Q4 results. Company reported Q4 Net Sales at Rs 1,490.15 crore in March 2023 up 69.07% from Rs. 881.38 crore in March 2022.  Net Profit at Rs. 149.16 crore in March 2023 up 473.09% from Rs. 39.98 crore in March 2022. EBITDA stands at Rs. 158.63 crore in March 2023 up 2015.07% from Rs. 7.50 crore in March 2022.

 

·      Mankans Pharma Q4 net profit Rs109.5cr (up 72% YoY) Ebitda margin 22.5% vs 15.2% (9YoY) and Income Rs486cr (up 16.5% YoY )

 

·      Adani Port Q4 -Income Rs5796.9cr (up 40% YoY), Ebitda Rs3271.3cr (up 24.8% YoY), Ebitda margin at 56.4% vs 62.3% (YoY) and Net profit Rs2292.4cr (up 42.6% YoY)

 

·      Munjal Showa Q4 net profit Rs21.2cr (up 202% YoY), Ebitda margin 5.5% vs 3% (YoY) , Ebitda Rs16.4cr (up 82.2% YoY)and Income Rs299cr (up 1% YoY )

 

·      Arvind Fashion Q4 net profit Rs28.5cr (up 27.2% YoY), Ebitda margin 11% vs 8% (YoY) , Ebitda Rs124cr (up 69.2% YoY)and Income 1140cr (up 24.4% YoY )

 

·      V-Guard better than expected Q4 Incoem and Ebitda inline with Bloomberg expectation. Company reported Q4 net profit Rs52.7cr (down 41.2%% YoY) – Bloomberg expectation Rs66.79cr, Ebitda margin 8.6% vs 10.6% (YoY) , Ebitda Rs98.6cr (down 12% YoY) – Bloomberg expectation Rs100cr, and Income 1140.1cr (up 7.6% YoY ) – Bloomberg expectation Rs1109cr

 

·      Suzlon Q4 Net profit Rs320cr vs loss Rs205.52cr (One time gain Rs251.5cr), operating margin 13.73% vs 4.26% (YoY), Ebitda Rs232.69cr (up nearly 100% YoY) and Income Rs1694cr (up 31.53% YoY)

 

·      Apollo Hospital announced marginally lower than expected Ebitda and Ebitda margin. Company reported Q4 net profit Rs146cr (up 50.50% YoY) – expectation Rs208.9cr, Ebitda margin 11.4% vs 13.1% (YoY) – Expectation 12% , Ebitda Rs488cr (up 5.4% YoY) – expectation Rs528cr and Income 4302.2cr (up 21.3% YoY ) – Expectation Rs4404cr

 

·      Torrent Pharma announced marginally lower than expected Ebitda and Income. Company reported Q4 net profit Rs287cr vs loss Rs118cr (YoY) – expectation Rs360cr, Ebitda Rs727cr (up 30% YoY) – expectation Rs774cr and Income Rs2490cr (up 17% YoY ) – Expectation Rs2495cr.  Domestic sales Rs1260cr (up 22% y/y) – Bloomberg estimate Rs1237cr and  US revenue Rs280cr (down 0.7% y/y) – Bloomberg estimate Rs292cr. 

 

 

 

Derivatives update

*Derivatives update*

Good morning !!

Derivatives update for Wednesday, 31st May 2023.

India VIX was down by 2.36% from 12.29 to 12.01 levels. Volatility was down thus giving some comfort to the bulls to buy at any small decline at record high index levels.

Nifty *Put/Call Ratio* (OI) marginally decreased from 1.33 to 1.32 level. 

On weekly front, Maximum Call OI is at 18800 then 18700 strike while Maximum Put OI is at 18300 then 18600 strike. Minor Call writing is seen at 18850 then 18650 strike while Put writing is seen at 18600 then 18650 strike.

*Option data suggests a broader trading range in between 18400 to 18800 zones while an immediate trading range in between 18500 to 18750 zones.*

For weekly Bank Nifty, Maximum Put OI is at 44500 then 44000 strike and maximum Call OI is placed at 44500 then 46000 strike. We have seen Call writing 44500 and Put writing is also witnessed at 44500 strike. 

Bank Nifty Put Call Ratio increased from 1.10 to 1.22. Implied volatility fell from 13.9 to 13.4 levels.

Bank Nifty (CMP 44,436.35)

Data setup for Bank Nifty suggests a trading range in between *44000/44144 to 44750/45000 zones.*

Looking ahead at the FII’s derivatives activity, there was long built up in index futures, position unwinding in index options and short built up in stock futures.

In the cash market, FIIs were net buyers to the tune of 2086 crores while DII’s were net sellers worth 439 crores. FIIs Index Long Short Ratio increased to 60.77%.

Derivatives data and price set up suggests, Nifty has to hold above 18550 zones, for an up move towards 18750 and 18888 zones while on the downside support exists at 18550 and 18442 zones.

Bank Nifty has to continue to hold above 44144 zones for an up move towards 44750 then new life high of 45000 zones while on the downside support exists at 44144 then 44000 zones.

Thank you. Have a great trading day ahead..!!

Pre-Market Derivatives and Technical Set-up

*Pre-Market Derivatives and Technical Set-up*

◆ Nifty index opened positive and moved in a zig zag fashion throughout the day. It remained in a narrow range in the second half of the day and finally closed with gains of around 36 points. Any small declines were converted into buying opportunity and it sustained at higher zones. It formed a Bullish candle on daily scale and gave the highest daily close of the last 112 sessions

◆ Now it has to hold above 18550 zones, for an up move towards 18750 and 18888 zones while on the downside support exists at 18550 and 18442 zones

◆ India VIX was down by 2.36% from 12.29 to 12.01 levels. Volatility was down thus giving some comfort to the bulls to buy at any small decline at record high index levels

◆ Since it’s the beginning of the new series, Option data is scattered at various far strikes in monthly series. On weekly front, Maximum Call OI is at 18800 then 18700 strike while Maximum Put OI is at 18300 then 18600 strike. Minor Call writing is seen at 18850 then 18650 strike while Put writing is seen at 18600 then 18650 strike. Option data suggests a broader trading range in between 18400 to 18800 zones while an immediate trading range in between 18500 to 18750 zones

◆ Bank Nifty opened slightly negative and bulls were seen in action in the first tick and then later touched a new all-time high of 44498 levels. It was followed by a small decline and then recovered in the next half of the session. It respected its previous day’s low levels and closed above 44400 zones with gains of around 120 points. It formed a Bullish candle on daily scale and gave the highest ever close

◆ Now it has to continue to hold above 44144 zones for an up move towards 44750 then new life high of 45000 zones while on the downside support exists at 44144 then 44000 zones

◆ Bullish setup in Auropharma, RBL Bank, PFC, Rec Ltd, AB Capital, Ramco Cement, IDFC, JK Cement, HAL, IDFC First Bank, Indigo, Hindcopper, HDFC Life, Berger Paint, Indhotel, Poly Cab, Trent, DalBharat, Bandhan Bank, Bajfinance, Cumminsind, Ultracemco, Axis Bank and Asian Paint

◆ Bearish setup in Hindalco, SAIL, Tatachem, IEX and BPCL

STOCKS IN ACTION 31 MAY

STOCKS IN ACTION 31 MAY 

HDFC Asset Management Company: Keki Mistry has expressed the desire not to be re-appointed as non-executive director of the company, and will retire after the upcoming AGM on June 26.

Coal India: The company will increase prices of high-grade coal by 8%, applicable across subsidiaries, leading to revenue rising by additional Rs 2,703 crore during the current fiscal.

Mahindra & Mahindra: The company incorporated subsidiary Mahindra Last Mile Mobility to manage its three-wheeler and small commercial vehicle business. The auto major also incorporated a step-down subsidiary Icarus Hybren to run the renewable energy production and distribution business.

Axis Bank: The board appointed former RBI deputy governor NS Vishwanathan as additional director for a period of four years, up to May 29, 2027.

Aurobindo Pharma: The company received tentative new drug application approval from U.S. FDA for HIV drugs Dolutegravir, Entricitabine and Tenofovir Alafenamide tablets.

Sun Pharmaceuticals Industries: The company received approval from China’s National Medical Products Administration for its new drug application of tildrakizumab injection used to treat moderate-to-severe plaque psoriasis.

Lupin: The company entered a strategic collaboration with Enzene Biosciences to launch Cetuximab in India, used in treatment of head and neck cancer.

SonaBLW: Promoter entity Aureus Investment likely to sell upto 3.25% equity of Rs 950 cr at Rs 500/share in SonaBLW

AdaniPorts: Q4 results | Net profit grows 5%, dividend of Rs 5/share declared

KRISHNA INSTITUTE OF MEDICAL SCIENCES Large Trade

GENERAL ATLANTIC SINGAPORE Sold 23,20,449 Shares @ Rs 1600/ Share

KALPATARU POWER TRANSMISSION Large Trade

Promoters Sell 96,34,284 Shares 

ICICI Prudential Mutual Fund Bought 14.95 Lakh Shares

Corporate Actions

Corporate Actions

Dividend

30-May-23

VEDL: Interim Dividend - Rs. - 18.50

ITC: Final Dividend - Rs. - 9.50

RALLIS: Final Dividend - Rs. - 2.50

31-May-23

DBCORP: Interim Dividend - Rs. - 3.00

SBIN: Dividend - Rs. - 11.30

ADVANIHOTR: Interim Dividend - Rs. - 1.40

PGINVIT: Income Distribution (InvIT)

01-Jun-23

SIL: Interim Dividend - Rs. - 0.80

TRIDENT: Interim Dividend - Rs. - 0.36

APTECHT: Interim Dividend - Rs. - 6.00

SHREECEM: Interim Dividend - Rs. - 55.00

02-Jun-23

INFY: Final Dividend - Rs. - 17.50

INDUSINDBK: Final Dividend - Rs. - 14.00

JSWENERGY: Final Dividend - Rs. - 2.00

STEELCAS: Special Dividend - Rs. - 3.15

MAHINDCIE: Final Dividend - Rs. - 2.50

HAVELLS: Final Dividend - Rs. - 4.50

PAGEIND: Interim Dividend - Rs. - 60.00

ANZEN: Income Distribution (InvIT) 

05-Jun-23

SHYAMMETL: Interim Dividend - Rs. - 1.80

IPO

--

Buyback

Axita Cotton: Ex-Date: 02-Jun-23

Hinduja Global Solutions: Open: 22-May-23; Close: 02-Jun-23

Bonus

Macrotech Developers: Bonus Issue 1:1; Ex-Date: 31-May-23

Hardwyn India: Bonus Issue 1:3; Ex-Date: 05-Jun-23

Indiamart Intermesh: Bonus Issue 1:1; Ex-Date: 21-Jun-23

Roto Pumps: Bonus Issue 1:1; Ex-Date: 08-Jul-23

Stock Split

Sylph Technologies: Stock Split From Rs. 10/- to Rs. 1/-; Ex-Date: 02-Jun-23

Hardwyn India: Stock Split From Rs. 10/- to Rs. 1/-; Ex-Date: 05-Jun-23

Radhagobind Commercial: Stock Split From Rs. 10/- to Rs. 1/-; Ex-Date: 08-Jun-23

Right Issue

Praxis Home Retail: Ex-Date: 30-May-23

Shree Rama Multi-Tech: Ex-Date: 30-May-23

Bhakti Gems and Jewellery: Ex-Date: 31-May-23

North Eastern Carrying Corporation: Ex-Date: 02-Jun-23

Spin Off

Edelweiss Financial Services: Ex-Date: 02-Jun-23

STOCKS IN ACTION 30 MAY

STOCKS IN ACTION 30 MAY 

NBCC: (India) Q4 FY23 (Consolidated, YoY) Revenue up 14.3% at Rs 2,790 crore Ebitda up 43% at Rs 104.3 crore Ebitda margin at 3.7% vs 3% Net profit up 176.5% at Rs 113.6 crore The company reported net exception expenses of Rs 4.77 crore during the March quarter, down from 72.9 crore in the year-ago period. Finance costs came down to Rs 95,000 from Rs 1.4 crore crore during the quarter under review

Torrent Power: Q4 FY23 Revenue up 61.3% at Rs 6,037.9 crore Ebitda up 10.1% at Rs 1,090.4 crore Ebitda margin at 18.1% vs 26.5% (Bloomberg estimate: 19.4%) Net profit of Rs 483.9 crore vs net loss of Rs 487.37 crore The consolidated revenue for the quarter under review includes sale of regassified liquified natural gas of Rs 506.1 crore. The company will pay a final dividend of Rs 4 per share for the fiscal 2023, with a total outgo of Rs 192.3 crore.

Rail Vikas Nigam Q4 FY23 (Consolidated, YoY) Revenue down 11.1% at Rs 5,719.8 crore Ebitda down 8.3% at Rs 374.37 crore Ebitda margin at 6.5% vs 6.3% Net profit down 5% at Rs 359.2 crore The board recommended a final dividend of Rs 0.36 per share.

Sobha Q4 FY23 Revenues up 70.3% at Rs 1,209.9 crore Ebitda up 49% at Rs 115.6 crore Ebitda margin at 9.5% vs 10.9% Net profit up 242.2% at Rs 48.6 crore The board recommended a dividend of Rs 3 per share for the fiscal 2023.

Campus Activewear Q4 FY23 (Consolidated, YoY) Revenue down 1.3% at Rs 347.75 crore Ebitda down 27.9% at Rs 56.5 crore Ebitda margin at 16.3% vs 22.3% Net profit down 0.09% at Rs 22.9 crore Tax expenses went down as the company received deferred tax credit of Rs 5.89 crore. Sanjay Chabra has been appointed as the chief financial officer of the company, effective June 1, while Piyush Singh has been

Force Motors: Q4 Cons Net Profit 1.47b Rupees Vs Loss 428m (YoY); Loss 156m (QoQ) Q4 Revenue 14.9b Rupees Vs 8.8b (YoY); 13b (QoQ) Co Has An Exceptional Item Of 2.08b Rupees || Co Recommended A Dividend Of 10 Rupees Per Equity Share

KNR Constructions: Q4 FY23 (Consolidated, YoY) Revenue up 13% at Rs 1,245.3 crore Ebitda down 11.8% at Rs 245.97 crore Ebitda margin at 19.8% vs 25.3% Net profit up 5.8% at Rs 147.27 crore The company announced a final dividend of Rs 0.25 per share for the fiscal

NHPC: Q4 Cons Net Profit 6.43b Rupees Vs 4.67b (YoY); 6.72b (QoQ) Q4 Revenue 20.29b Rupees Vs 16.74b (YoY); 25.8b (QoQ) Co Recommended A Final Dividend Of 0.45 Rupees Per Equity Shares

Adani Transmission: Q4 FY23 (Consolidated, YoY) Revenue up 12.9% at Rs 3,357.7 crore Ebitda up 27.3% at Rs 1,203.2 crore Ebitda margin at 35.8% vs 31.8% Net profit up 85.5% at Rs 439.6 crore 

Speciality Restaurants: Q4 Sl Net Profit 549.2m Rupees Vs 43m (YoY); 150m (QoQ) Q4 Revenue 875m Rupees Vs 718m (YoY); 1.04b (QoQ) Co Has An Exceptional Item Of 83.9m Rupees || Co Recommended A Dividend Of 2.50 Rupees Per Share

Techno Electric & Engineering: Q4 Sl Net Profit 919m Rupees Vs 372.7m (YoY); 313m (QoQ) Q4 Revenue 4.5b Rupees Vs 3.05b (YoY); 1.85b (QoQ) Co Has Recommended Dividend Of 6 Rupees Per Share

Eureka Forbes: Q4 Cons Net Profit 159m Rupees Vs 45m (YoY); 69m (QoQ) || Q4 Revenue 5.08b Rupees Vs 3.74b (YoY); 4.72b (QoQ)

IRCTC: Q4 Sl Net Profit 2.79b Rupees Vs 2.14b (YoY); 2.6b (QoQ) Q4 Revenue 9.65b Rupees Vs 6.91b (YoY); 9.2b (QoQ) Co Recommended A Final Dividend Of 2 Rupees Per Equity Shares

Hikal: Q4 Cons Net Profit 360m Rupees Vs 207m (YoY); 264m (QoQ) Q4 Revenue 5.4b Rupees Vs 5b (YoY); 5.4b (QoQ) Co Has An Exceptional Item Of 258m Rupees || Co Recommended Final Dividend Of 0.60 Rupees Per Equity Share

ISGEC Heavy Engineering: Q4 Cons Net Profit 861m Rupees Vs 376m (YoY); 630m (QoQ) Q4 Revenue 20.43b Rupees Vs 15.96b (YoY); 15.9b (QoQ) Co Recommended A Final Dividend Of 3 Rupees Per Equity Share

Gujarat Industries Power : Q4 Sl Net Profit 651m Rupees Vs 547m (YoY); 341m (QoQ) Q4 Revenue 4.2b Rupees Vs 2.9b (YoY); 3.76b (QoQ) Co Recommended Dividend Of 3.75 Rupees Per Equity Share