News and Impact

News and Impact 

 

 

·      There was smart recovery in the US market from intra-day low, may open domestic market on a flat note. However, concern about rising global inflation, US Fed hawkish commentary and significant hiked interest rate by the euro zone area may be dampening the market sentiment. Overnight, US market gained by 1% led by heavyweight Amazon and Microsoft after the US Fed concluded its two days testimony in the US congress. Bond yields climbed after major central banks warned about the potential for more interest-rate hikes, with officials signaling they’re nowhere near ready to declare victory over inflation. Yesterday, both Bank of England and Norges Bank (Norway) raised the key interest rate by 50bps, above the market expectation (25bps expectation) while The Swiss National Bank (SNB) hiked the interest rate by 25bps. Asian markets fell up to 1% while SGX Nifty slipped quarter percent. Back home, domestic market is better place than the global peers due to May inflation fell to 25-month low and WPI inflation declined to 8-year low. Moreover, stable oil price, FIIs participation and huge capex by domestic players will be positive for the market sentiment. Any dips will be good opportunity to buy in the domestic bourses due to bullish sentiment in the market. Yesterday, both Sensex and the Nifty ended lower mirroring their global peers. Traders were booking profit after the Nifty was just an inch (1 point) away from the record high. Today focus on defense stocks after the US and India signed defense deal. IT stocks will be in focus after global peer Accenture cuts the top end of its full-year revenue growth guidance in its quarterly results announcement.

 

·      US Market   – US equities snapped a three-day losing streak as investors analyzed a second day of congressional testimony from Federal Reserve Chair Jerome Powell. Dow Jones ended marginally decline while Nasdaq Composite gained 1% led by tech heavyweight Amazon.com Inc. and Microsoft Corp. adding the most to the gains. However, US market recovered 1% from the intra-day low.

 

·      Global market summary – Bank of England hiked interest rate by 50bps to 5%, highest level since 15 years while expectation was 25bps hike to 4.74%. The Swiss National Bank (SNB) hiked the interest rate by 25bps to 1.75%. Norges Bank (Norway) raised the key interest rate by 50bps to 3.75% from 3.25%. US 10 Years and 2-year bond surged to 1-month high. Gold price fell to 3-month low.

 

·      Asian Market – Asian stocks turned modestly lower today amid elevated bond yields following a spate of central bank rate hikes. Japanese shares erased initial gains as investors weighed inflation data that was stronger than expectation. Japan, South Korea and Australia Index marginally decline HALF . China market is shut today.

 

·      European Market – European equities extended declines to a fourth day on hawkish signals from policy makers as the Bank of England surprised the market with a bigger-than-expected rate

·      increase, fueling further fears of an economic slowdown. Yesterday, Bank of England hiked interest rate by 50bps to 5% while expectation of 25bps hike interest rate. UK, Germany and France Index eclined half percent each.

 

·      Oil –  Brent Crude declined 3% to $74/bbl after the Federal Reserve signaled that further rate hikes were needed, bruising appetite for risk, aiding the dollar, raising the prospect of an economic slowdown and increase US oil inventory.

 

·      Gold – Gold slipped 2% to 3-month low at $1915/ounce after the Federal Reserve Chair Jerome Powell reiterated the central bank will continue raising interest rates and expectations of Colling down global demand.

 

·      Previous Day market Update –Snapping their two-days winning run, equity benchmark indices the Sensex and the Nifty ended lower mirroring their global peers. The risk appetite of investors remained low on concerns over rate hikes a day after Federal Reserve chairman Jerome Powell said the US Fed would bring more hikes this year. Traders were booking profit after the Nifty was just an inch (1 point) away from the record high. Both Asia and European equity markets decline 1% each. Today, the Swiss National Bank (SNB) hiked the interest rate by 25bps to 1.75% while UK and Norway announced interest rate decisions today. Nifty mid-cap and small-cap stocks were major losers today and declined 1% each. Nifty 500 stocks advance-decline ratio was 1:3. Nifty slipped 85 points or 0.4% to close below the 18800 level at 18771 while touching intra-day high of 18886 just a single point away from the record high. Sensex opened at a fresh all-time high level of 63,602 against the previous close of 63,523 but failed to hold altitude and closed 284 points, or 0.45 percent, lower at 63,239. Auto, IT, and banking stocks were major losers today while sugar stocks witnessed fresh buying. Yesterday, FIIs were net sellers Rs693cr while DIIs were net buyers Rs219cr.

 

·      Nifty Technical Levels – The index is struggling at record high levels and whipsaws can be seen in the market. It formed a Bearish candle or an outside Bar on daily frame and closed with losses of around 85 points. Now it has to hold above 18777 zones to witness an up move towards 18888 then 19000 zones while on the downside support exists at 18710 and 18666 zones.

 

·      Bank Nifty Technical Levels – Bank Nifty formed a Bearish candle on daily scale as selling pressure is seen at higher zones but multiple support is still intact at lower zones. Now it has to cross and hold above 43750 zones for a bounce towards 44044 then 44250 zones while a hold below the same could see some weakness towards 43500 then 43333 marks.

 

·      Actionable BUY – L&T, Fortis, HAL, PNB Housing

 

·      Brokers Radar – Jefferies on IT stocks - Tech Mahindra TGT at 930, HCL Tech TGT at 1210, Coforge TGT at 4150 from 3760, LTIMindtree TGT at 4100 and Infosys TGT at 1550, JP Morgan TGT on UltraTech at 7020. JP Morgan TGT on Bajaj Auto at 5400.

 

·      Events – Tata Consumers to delist its ADR from London stock exchange, Shilpa Medicare board meeting for fund raising.

 

·      Corporate Action  - VLS Finance Rs1.50, Tata Elxsi Rs60, Tata Steel Rs3.50, Dalima Bharat Rs5, Dhampur Bio Rs3.50, Torrent Rs8

 

·      Global Data – Manufacturing PMI, Service PMI and Composite PMI. (US).  Consumers and Retail sales in Auto (UK). Manufacturing PMI, Service PMI and Composite PMI (Germany). Manufacturing PMI, Service PMI and Composite PMI (France).

 

·      Market Summary – GE Signs MoU to Make Engines for India’s Light Combat Aircraft,  L&T Signs Pact With India DRDO for Submarines Propulsion System,  Fitch raises India's GDP forecast to 6.3% for current fiscal year, Bharti Airtel to Acquire 12% Stake in Indian Solar Power Company, LTTs extends partnership with PCT, Fortis to sell Chennai Hospital, Fortis Healthcare to divest its Vadapalani, Chennai Hospital Business Operations, Luxury Homes Drive Mumbai Sales As Inventory Falls 24%, Says Anarock

 

·      Watch on Software Company - Technology stocks may move after global peer Accenture cuts the top end of its full-year revenue growth guidance.  Accenture sees full-year revenue growth between 8% to 9%, compared with a prior view of 8% to 10% - Accenture declined 2% yesterday.

 

·      L&T Signs Pact With India DRDO for Submarines Propulsion System – Company signed a contract with India’s Defence Research and Development Organisation for two submarines propulsion system modules. The Air Independent Propulsion system modules are for Kalvari class submarines of the Indian Navy – positive

 

·      HDFC: The company divested 9.65% of its stake in Ruralshores via the buyback route. It also sold its entire stake in HDFC Property Ventures and HDFC Venture Capital to Vividh Distributors for a consideration of Rs 1.2 crore and Rs 30 lakh, respectively. - positive

 

·      Bharat Petroleum Corporation: The company will consider fund-raising various modalities on June 28 for a capital infusion, including rights issues. - positive

 

·      PNB Housing and Finance: T. Adhikari has been appointed as Chief Operating Officer of the company.- positive

 

·      Vedanta: The company refuted media reports stating the sale of the Sterlite Copper Plant in Thoothukudi. It said that the reports are "wrong, baseless, and incorrect."  - positive

 

·      Coforge: The company acquired the final tranche of shares of the remaining 20% stake in Coforge Business Process Solutions for Rs 336.94 crore, taking its total stake to 80%.- positive

 

·      HBL Power Systems: The board is going to consider approving a proposal for the slump sale of two product lines, Power Electronics and Integrated Power Supplies, to Moebius Power Electronics on June 28. – positive

 

·      Wipro – Company announced the inauguration of its new office at Sable Park, Century City, in Cape Town, underscoring its commitment to clients in the region – long term positive

 

·      Sula Vineyard  - IndiGo has announced an exciting collaboration with Sula Vineyards and Fratelli Vineyards to offer exclusively curated holiday experiences for all its Nashik and Pune-bound customers, respectively  - positive

 

·      Gujarat Alkalies – Company had earlier announced about updates on 10,000 TPA (80%) Hydrazine Hydrate Project, with forward integration to Hydrogen Peroxide, for the manufacturing of an import substitute at Dahej Complex. The Company has achieved commercial production of Hydrazine Hydrate at Dahej Complex. – positive

 

·      Cyient DLM Sets Price Band For Rs 700-Crore IPO That Opens On June 27 - Cyient DLM Ltd., a unit of IT services firm Cyient Ltd., has set the price band for its Rs 700 crore initial public offering, in the June 27–30 with IPO at a valuation of Rs 2,100 crore. Cyient holds a 92.84% stake in its subsidiary. Cyient current market cap Rs16500cr - Positive,

 

·      Hindustan Aeronautics – GE Aerospace signed a memorandum of understanding with Hindustan Aeronautics Ltd. to produce fighter jet engines that would power the Indian Air Force’s Tejas Light Combat Aircraft Mk2. The agreement includes the potential joint production of GE Aerospace’s F414 engines in India - positive

 

·      Fortis Healthcare – Company announced signing of definitive agreements for sale of its hospital business operations at Vadapalani, Chennai to Sri Kauvery Medical Care  for a sale consideration of Rs152 Crore.

 

·      L&T – Company expanded its hi-tech manufacturing capability, inaugurating a new state-of-the-art, advanced Heavy Wall Pressure Vessel facility in Saudi Arabia – Positive

 

·      Natural Capsules – Company has announced a significant milestone in its growth journey with the strategic investment from Somerset Indus Capital Partners, a prominent healthcare-focused private equity fund. Somerset Indus Capital Partners, known for its expertise in the healthcare sector, has invested approximately Rs. 75 crores at a pre-money valuation of Rs. 250 crores in Natural Capsules Ltd – Positive

 

·      Madhav Infra Projects – Company receives LOA for construction of Railway Over Bridge worth Rs37.07cr – positive

 

·      Hazoor Multi Projects – Company received work commencement approval-work order for Eight Lane access controlled Expressway (Shirsad to Akoli section - Spur of Vadodara Mumbai Expressway Project)in the state of Maharashtra on EPC mode worth  Rs.352.80 crores – positive

 

·      Ambuja Cements and ACC,- Both companies honored to be recognised among 'India's Top 50 Most Sustainable Companies' cross-industry by BW Businessworld – Long term positive

 

·      Fitch raises India's GDP forecast– Global rating agency Fitch Ratings revised upwards its FY24 economic growth forecast for India to 6.3 per cent from 6 per cent it had predicted earlier. This is primarily because of a stronger outturn in the first quarter and near-term momentum. – positive for the market sentiment

 

·      Zee  Entertainment - Economic Times reported CEO Punit Goenka as saying the company’s merger with a Sony subsidiary will go through regardless of whether he is the CEO of the amalgamated firm.

·      Goenka told the newspaper that his frequent interactions with Sony don’t seem to indicate that the deal is wavering – expects volatile on the stock

 

·      Bharti Airtel to Acquire 12% Stake in Indian Solar Power Company - Bharti Airtel has agreed to acquire a 12.1% stake in Egan Solar Power for Rs1.34cr. Egan Solar Power is a special-purpose vehicle formed to operate a captive solar power plant.- positive

 

·      Rail Vikas Nigam emerges as the lowest bidder for two projects worth Rs 281 crore. The project is commissioned by the MP Poorv Kshetra Vidyut Vitaran Co. in Jabalpur. – positive

 

·      Focus on Housing stocks - Luxury housing sales continued to top charts post-pandemic, particularly in the Mumbai Metropolitan Region, where prices in the segment had dropped during the first wave. There had been a 24% yearly decline in MMR's unsold stock of homes priced above Rs 2.5 crore, according to data from Anarock Property Consultants Pvt.- Expects positive for Lodha, Oberoi Hotel, Godrej Properties

 

·      LTTs extends partnership with PCT – Company has announced an extension of its partnership with PCT to engineer solutions for aerospace, defense and transportation sectors. Company to provide mutual clients with digital support for design and manufacturing. – positive

 

·      Venus Remedies – Company gets marketing authorisation in Spain for Meropenem, a last-recourse antibiotic. - positive

 

·      Kalpataru Projects: The board approved raising Rs 300 crore via the issuance of unsecured, rated, listed, redeemable, and non-convertible debentures. – positive

 

·      Adani group stocks focus - US authorities are looking into what representations Adani Group made to its American investors following a scathing short seller’s report that accused the company of using offshore companies to secretly manipulate its share prices. The US Attorney’s Office in Brooklyn, New York, has sent inquiries in recent months to institutional investors with large holdings in the India conglomerate – Bloomberg report

 

·      RateGain Travel Technologies – Company announced the launch of its third update for its solution AI Audiences, an AI-powered model built using Adara's ecosystem of travel data. The dataset consists of search and booking data from over 270+ partners across flights, hotels, car rentals, live events and credit card expenditures. - positive

 

·      Fortis Healthcare – Company  will be selling it's Vadapalani hospital in Chennai to Sri Kauvery Medical Care for Rs 152 crore – positive 

 

·      Canara Bank – Company’s board to meet on June 28 to mull FY24 fund raising plan 

 

 

Pre-Market Derivatives and Technical Set-up

*Pre-Market Derivatives and Technical Set-up*

🔎 *Nifty* 

Index opened flattish and tried to gain strength and touched 18886 but failed to cross its all-time high and drifted lower thereafter. The second half of the session witnessed some recovery which it again gave up in the last hour. The index is struggling at record high levels and whipsaws can be seen in the market. It formed a Bearish candle or an outside Bar on daily frame and closed with losses of around 85 points

📊 Now it has to hold above 18777 zones to witness an up move towards 18888 then 19000 zones while on the downside support exists at 18710 and 18666 zones

🎢 India VIX was up by 2.28% from 11.29 to 11.54 levels. Volatility was slightly on the rise and came out of its range on daily frame

 

🧮 On option front, monthly maximum Call OI is at 18800 then 19000 strike while maximum Put OI is at 18800 then 18700 strike. Call writing is seen at 18800 then 18900 strike while Put writing is seen at 18800 then 18700 strike. Option data suggests a shift in broader trading range in between 18550 to 19000 zones while an immediate trading range in between 18650 to 18900 zones

🔎 *Bank Nifty*

Index opened on a flattish note but gradually drifted towards 43700 zones in the first half of the session. Later it witnessed good recovery of 250 points from lower zones and made a high of 44044 marks but again failed to hold at higher zone. It formed a Bearish candle on daily scale as selling pressure is seen at higher zones but multiple support is still intact at lower zones

📊 Now it has to cross and hold above 43750 zones for a bounce towards 44044 then 44250 zones while a hold below the same could see some weakness towards 43500 then 43333 marks

🔎 *Fin Nifty*

Index opened positive and witnessed buying interest towards 19741 in the first half of the trading session. However it failed to surpass its previous life time high of 19778 zones by 40 points and corrected by more than 150 points in the last hour of the session. It has managed to surpass consolidation band of 19000-19636 zones but again got stuck

📊 Now it needs to hold above 19500 zones to extend gains towards previous life time high of 19778 then 20000 zones while on the downside supports are placed at 19500 then 19400 zones

*Stocks* 

🚀 Bullish setup in MFSL, BSoft, IGL, LT, HDFC, HDFC Bank, Bhartiartl, Indigo, MCX and Hindpetro

🐻 Bearish setup in AB Capital, Indhotel, PNB, RBL Bank, Biocon, GNFC, Bajfinance, Gail, Godrejcp, UPL, SRF, Bandhan Bank, Havells, Gujgas, AU Bank, NMDC, Voltas and Indusind Bank

Derivatives update

*Derivatives update*

Good morning !!

Derivatives update for Friday, 23rd June 2023.

India VIX was up by 2.28% from 11.29 to 11.54 levels. Volatility was slightly on the rise and came out of its range on daily frame.

Nifty *Put/Call Ratio* (OI) decreased from 1.18 to 1.11 level. 

On option front, monthly maximum Call OI is at 18800 then 19000 strike while maximum Put OI is at 18800 then 18700 strike. Call writing is seen at 18800 then 18900 strike while Put writing is seen at 18800 then 18700 strike.

*Option data suggests a shift in broader trading range in between 18550 to 19000 zones while an immediate trading range in between 18650 to 18900 zones.*

For weekly Bank Nifty, Maximum Put OI is at 43000 then 43500 strike and maximum Call OI is placed at 44000 then 45000 strike. We have seen minor Call writing at 44000 and Put writing is witnessed at 43000 strike.

Bank Nifty Put Call Ratio decreased from 0.95 to 0.85. Implied volatility fell from 12.67 to 12.58 levels.

Bank Nifty (CMP 43,724.85)

Data setup for Bank Nifty suggests a trading range in between *43333/43500 to 44044/44250 zones.*

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

In the cash market, FIIs were net sellers to the tune of 693 crores while DII’s were net buyers worth 219 crores. FIIs Index Long Short Ratio increased to 53.47%.

Derivatives data and price set up suggests, Nifty has to hold above 18777 zones to witness an up move towards 18888 then 19000 zones while on the downside support exists at 18710 and 18666 zones.

Bank Nifty has to cross and hold above 43750 zones for a bounce towards 44044 then 44250 zones while a hold below the same could see some weakness towards 43500 then 43333 marks.

Thank you. Have a great trading day and weekend.

Securities in Ban

Securities in Ban For Trade Date 23 - JUNE -2023

1. BHEL, 2.HINDCOPPER, 3.L&TFH, 4. PNB, 5. RBLBANK (Source - nseindia.com)

Derivatives update

*Derivatives update*

Good morning !!

Derivatives update for Thursday, 22nd June 2023.

India VIX was up by 1.44% from 11.13 to 11.29 levels. Volatility was slightly on the rise but moved in its previous day’s range. It has been hovering in a rather smaller range from the last few weeks.

Nifty *Put/Call Ratio* (OI) increased from 1.16 to 1.18 level. 

On option front, weekly maximum Call OI is at 19000 then 18900 strike while maximum Put OI is at 18800 then 18700 strike. Call writing is seen at 18900 then 19000 strike while Put writing is seen at 18800 then 18850 strike.

*Option data suggests a shift in broader trading range in between 18600 to 19000 zones while an immediate trading range in between 18700 to 18950 zones.*

For weekly Bank Nifty, Maximum Put OI is at 43500 then 43700 strike and maximum Call OI is placed at 44000 then 45000 strike. We have seen minor Call writing at 44000 and Put writing is witnessed at 43700 strike.

Bank Nifty Put Call Ratio increased from 0.92 to 0.95. Implied volatility fell from 12.69 to 12.67 levels.

Bank Nifty (CMP 43,859.20)

Data setup for Bank Nifty suggests a trading range in between *43333/43500 to 44044/44250 zones.*

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

In the cash market, FIIs were net buyers to the tune of 4013 crores while DII’s were net buyers worth 550 crores. FIIs Index Long Short Ratio increased to 52.70%.

Derivatives data and price set up suggests, Nifty has to hold above 18818 zones to witness an up move towards 18888 and 19000 zones while on the downside support exists at 18786 and 18710 zones.

Bank Nifty has to continue to hold above 43750 zones for a bounce toward 44044 then 44250 zones while on the downside support 43500 then 43333 marks.

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

Pre-Market Derivatives and Technical Set-up

*Pre-Market Derivatives and Technical Set-up*

🔎 *Nifty* 

Index opened gap up by 33 points and witnessed whipsaw in the initial hour of the session which was followed by recovery in the next half and finally the last hour saw a decline and quick retrieval. After a roller coaster day within a range of 80 points, the index touched high of 18875 zones merely a few points away from its all-time high levels. Domestic cues are strong and buying across sector is keeping the market afloat. Any small decline is converted into buying and it closed with gains of around 40 points. It formed a Doji sort of candle on daily frame with longer lower shadow

📊 Now it has to hold above 18818 zones to witness an up move towards 18888 and 19000 zones while on the downside support exists at 18786 and 18710 zones

🎢 India VIX was up by 1.44% from 11.13 to 11.29 levels. Volatility was slightly on the rise but moved in its previous day’s range. It has been hovering in a rather smaller range from the last few weeks

 

🧮 On option front, weekly maximum Call OI is at 19000 then 18900 strike while maximum Put OI is at 18800 then 18700 strike. Call writing is seen at 18900 then 19000 strike while Put writing is seen at 18800 then 18850 strike. Option data suggests a shift in broader trading range in between 18600 to 19000 zones while an immediate trading range in between 18700 to 18950 zones

🔎 *Bank Nifty*

Index opened on a positive note near 43900 zones but remained consolidative in a narrow range of 200 points between 43700 to 43900 zones for most part of the session. It formed a small bodied candle on daily scale and ended the day with marginal gains near 43850 zones. Index has been consolidating in between 43333 to 44044 zones from the last five sessions as momentum is missing on either side and it closed near its 20DEMA

📊 Now it has to continue to hold above 43750 zones for a bounce toward 44044 then 44250 zones while on the downside support 43500 then 43333 marks

🔎 *Fin Nifty*

Index continued its bullish momentum right from the initial tick and witnessed buying interest throughout the entire trading session. It has finally managed to surpass its consolidation band of 19000-19636 zones after 35 trading sessions as buying was seen in selective financial heavyweights. It formed a strong bullish candle on daily chart and managed to close above its crucial 20DEMA

📊 Now till it holds above 19500 levels momentum can extend towards previous life time high of 19778 then 20000 zones while on the downside supports are placed at 19500 then 19400 zones

*Stocks* 

🚀 Bullish setup in Lupin, Motherson, India Cement, Lichsgfin, Exideind, Powergrid, IGL, Ibulhsgfin, Muthootfin, Recltd, Apollo Tyre, PFC, Metropolis, M&MFin, HDFC, HDFC Bank, Bank Baroda, Bhartiartl, Grasim and Naukri 

🐻 Bearish setup in Poly Cab, AU Bank, Bandhan Bank, Marico, Hindalco, Gail, M&M, ITC, SBI Card and Indusind Bank

Securities in Ban

Securities in Ban For Trade Date 22 - JUNE -2023 

1. BHEL, 2.DELTACORP, 3. HAL, 4. HINDCOPPER, 5.L&TFH, 6. PNB 

(Source - nseindia.com)

BUY METROBRAND

BUY METROBRAND @ 1000-1010, SL 990, TGT 1044, 1100, 1188

BUY HPL ELE

BUY HPL ELE @ 125-127, SL 120, TGT 135, 147+

NIFTYVIEW

*NIFTYVIEW*

🎯 NIFTY likely to *open or Around 18794-18840*

🎯 NIFTY is likely to see *RESISTANCE or around 18888-18973-19029*

🎯 NIFTY KEY *SUPPORT lies 18719-18660-18560*

 

🎯Fellas *Nifty is likely to give flat to slightly positive opening🙏 Broadly we continue to expect that buy on dips remains good strategy as we are headed for 19000+ kind of levels😈 Nifty marginally away from ATH sooner or later it is going to head higher 😉 Use dips to add longs🙏 BankNifty continues to have crucial support range of 43000-43400 kind of levels🙏 Use all dips to accumulate longs we are headed for 44500+ kind of levels🤟 NiftyAuto once again headed for 14950+ kind of levels🙏 NiftyIT may complete its target of 29500+ kind of levels🙏 DowFutures may show recovery today & may head for 34500 today itself as 33900 now remains crucial support level🙌*

🎯 Fellas *USDINR with quality support 81.60 may remain sideways for the day🙌*

🎯 Stock on *radar Maruti🙏*

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

https://chat.whatsapp.com/DFilBxunI6RLGEdZTwMkRK

BUY TYRES STOCK

BUY CEAT / APOLLO TYRE / BALKRISHNA IND / JK TYRE / MRF WITH STRICT 0.75% SL FOR 2-12 % GAIN

From Advisory Desk

From Advisory Desk 21st June 2023

 

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

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

Delivery Ideas: Buy Shriram Finance Ltd, Blue Dart ( Upgraded to Buy, with a revised target price of INR8,040, 20% upside).

 

Global market:

DOW:  - 245

SGX NIFTY:   - 20   (prev.close 18881)

NIFTY 50 : 18816

Sensex : 63327

 

Institution:

FII:                 -   1943     Cr

DII:                +   1973     Cr

NSE:

Advances:  1865  / Declines:  1637

Currency:

Dollar: $ 82.12

Dollar Index: 102.57

 

Commodity:

Gold: $ 1948  per ounce

Crude: $ 76.15  per barrel

 

Bonds:

10 year US bond rate: 3.74

10 year Indian Bond rate: 7.06

Derivative:

PCR: 0.99

VIX:  11.13

Updates:

HDFC/HDFC Life - Competition Commission of India has given a go-ahead to the proposed acquisition of an additional stake by HDFC in HDFC Ergo General Insurance and HDFC Life. After the merger, the combined entity of HDFC Bank will possess a majority stake of over 50% in HDFC Life. HDFC Ltd holds 49.98% of HDFC ERGO and 48.65% of HDFC Life.

 

Piramal Enterprises/Shriram Finance - Piramal Enterprises selling its entire 8.34% holding in Shriram Finance through block deal today for around Rs.4630 crore. Piramal will offload about 3.1 crore shares at a price of Rs 1,483 per unit, which is a 5% discount from CMP.

 

Pidilite Industries - Company launched its manufacturing facilities under its two joint ventures, Pidilite Litokol and Tenax Pidilite in Amod, Gujarat. They have transfered technology to Pidilite as part of joint ventures. This development will strengthen Pidilite's presence in the tile and stone care range.

 

Rail Vikas Nigam - The company issues clarification on report of breakdown of joint venture with Russia-based Transmashholding (TMH). The company has termed the report as factually incorrect and the memorandum of understanding between the two parties is still valid.

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

Securities in ban: BHEL, DELTACORP, HAL, HINDCOPPER, IBULHSGFIN, INDIACEM, L&TFH.

 

Derivative View: On option front, weekly maximum Call OI is at 19000 then 18900 strike while Maximum Put OI is at 18700 then 18800 strike. Option data suggests an immediate trading range in between 18650 to 18900 zones.

News and Impact

News and Impact

 

 

·      Expects market to open on a flat note on account of US equity futures is trading marginally green and mixed bag on Asian markets on ahead of the US Federal Reserve chief’s congressional testimony today. Expects, market may move on a narrow range today as investors brace for US Federal Reserve Chairman Jerome Powell's congressional testimony, which will be scrutinized for clues regarding how long the US central bank will keep its restrictive interest rate policy decision in place (Testimony means – financial outlook and recent monetary policy actions). Overnight, US market fell up to half percent while US 10-Year and 2-year bond fell 1% each and Dollar Index fell to below 14. SGX is down by 0.1% or 19 points. Yesterday, equity benchmark index bounced back into positive territory in the last hour led by buying interest in financial, IT, select auto, and metal stocks. Any decline will be good opportunity to buy on Indian equity on account of strong economy data, India Vix fell to nearly record low and stable oil price to support market from lower levels. Expects momentum to continue on defense stocks on hope of strong defense deal with US government. Banking and NBFC stocks will be in focus due to stable bond yield and hope of good monsoon to boost micro-finance business.

 

·      US Market   –U.S. stocks ended lower on Tuesday as investors waited for Federal Reserve Chairman Jerome Powell's testimony before Congress on Wednesday. Dow Jones slipped 0.7% while Nasdaq Composite marginally decline. US market recovered partially from the intra-day low ahead of US Fed Powell’s testimony to be release today.

 

·      Global market summary – US 10-Year and 2-year Bond Yield slipped 1% each. US Vix declined 3% to below 14. Gold price fell to 2-week low

 

·      Asian Market – Asian stocks are witnessing mixed bag ahead of Powell’s testimony later in the week and concern of delay by China stimulus. South Korea, Taiwan, Hong Kong Index marginally decline while Japan Index gained nearly half percent.

 

·      European Market - European Index drops for a second day, as economic headwinds mount and China stimulus disappoints. UK, Germany and France Index declined nearly half percent each. Chinese banks on Tuesday lowered their benchmark lending rates in line with last week’s central-bank cut, a modest reduction that disappointed investors and lower than expected rate cut by China.

 

·      Oil –  Oil edged lower by 1% to $75/bbl on concern that Chinese stimulus may undershoot expectations, and as investors prepared for commentary from the head of the Federal Reserve that may flag further monetary tightening.

 

·      Gold – Gold fell after a technical support gave way amid a rapid pullback in equity markets. The metal fell as much as 1.1%, with losses accelerating after it breached its 100-day moving average. The move followed a sharp drop in US and European stock markets from highs reached last week as sentiment turned bearish.

 

·      Previous Day market Update –The equity benchmark index bounced back into positive territory in the last hour led by buying interest in financial, IT, select auto, and metal stocks. Fag-end buying helped domestic equity benchmarks the Sensex and the Nifty to end higher,  despite weak global cues after China cut interest rates by less than expected. Nifty gained 61 points or 0.3% to close at 18817 while it touched the intra-day low of 18660. Sensex advance 159 points or 0.3% to close at 63328 while touching an intra-day low of 62802. India Vix fell nearly 1% to close at 11 levels.  Domestic markets posted a smart recovery today despite Asian and European stocks falling for a second day as worries about growth in the Chinese economy looms. Sentiments were boosted in the domestic market  on account of strong domestic economic data, stable oil prices, and impressive direct tax collection. FIIs were net sellers Rs1943cr while  DIIs were net buyers Rs1973cr yesterday.

 

·      Nifty Technical Levels – Nifty formed a Bullish candle on daily frame but broke its higher highs formation of the last five sessions. Now it has to hold above 18777 zones to witness an up move towards 18888 and 19000 zones while on the downside support exists at 18710 and 18666 zones.

 

·      Bank Nifty Technical Levels – Bank Nifty formed a Hammer kind of candle on daily scale as buying was seen from lower zones and closed near its 20DEMA. Now it has to hold above 43750 zones for a bounce toward 44044 then 44250 zones while on the downside support 43500 then 43333 marks.

 

·      Actionable BUY – BEL, REC, Persistent Systems. L&T, PEL, HDFC Life

 

·      Brokers Radar – HDFC Bank – Goldman Sachs TGT raised to 2050 from 1841. L&T TGT by CLSA at  2850. Morgan Stanley TGT on L&T at 2647. Goldman Sachs TGT on L&T at 2600

 

·      Corporate Action  - Oberoi Realty ex-dividend, IndiaMart ex-bonus 1:1. Ex-dividend - Victoria Mills Rs50, Cera Sanitaryware Rs50

 

·      Global Data – MBA Mortgage Application (US) – CPI and Retail Price Index (UK).

 

·      Market Summary – RIL gets RBI nod to retain extra $2 bn from lenders, Coforge Reiterates FY24 growth guidance, BEL won large defense orders, Piramal Seeks up to $564M in Shriram Finance Stake Sale

 

·      HDFC – HDFC received an approval from the Competition Commission of India to acquire more hares in HDFC Life Insurance and HDFC ERGO General Insurance – Positive for HDFC Life

 

·      Piramal Enterprises – Company offers 3.12cr shares, or 8.3% stake in Shriram Finance in a share placement. Company offered at floor price of Rs1,483 per share, nearly 5% discount against the previous day’s close. Piramal Enterprises current holding on Shriram Finance at 8.33% – Buying opportunity.

 

·      Reliance Industries - Company has received the RBI permission to retain $2 billion over and above the $3 billion. Central bank permission was sought because the amount collected was above the limits mandated. Company plans to use the money to fund working capital needs and to expand its new energy and telecom businesses. - positive

 

·      Coforge– Company is confident of meeting its growth guidance for fiscal 2024, despite fears of a washout for India’s $245-billion IT services industry. The Noida-based software services firm aims to grow its dollar revenue by 13-16% in FY24, building on incremental earnings from its clients—especially its 16 priority accounts that are likely to contribute 45% of its topline – Positive.

 

·      Bharat Electronics – Company has received orders worth Rs 5,900 crore, of which Rs 3,914 crore of orders are from the Akash Prime Weapon System. The public sector defence unit said it has received orders for two regiments of the improved Akash Weapon System with upgrades from BDL for a value of Rs 3,914 crore.  – positive

 

·      Pidilite Industries – Company announced the launch of its state-of-the-art manufacturing facilities under its two joint ventures, Pidilite Litokol Pvt Ltd (PLPL) and Tenax Pidilite Pvt Ltd (TPPL), in Amod, Gujarat. Litokol SPA Italy and Tenax SPA Italy have transferred technology to Pidilite as part of the Joint Venture

 

·      Bajaj Consumer – Company Care Limited has launched a new Product "Bajaj 100% Pure Henna – positive

 

·      Madhav Infra - Company receives LOA for order worth Rs. 37.07 crores – positive

 

·      RVNL – Company wins orders worth Rs1730cr from Chennai Metro Rail – Positive

 

·      NBCC – Company gets Rs50.67cr for construction of school – positive

 

·      Yes Bank – Company to consider raising funds via debt securities on June 23 board meeting

 

·      Lupin- Company has signed an MoU with the Maharashtra government to address rising cardiovascular and chronic obstructive pulmonary diseases in Palghar district.- positive

 

·      Aurionpro Solutions – Company approves preferential issue to Malabar India Fund, Malabar Midcap Fund nearly Rs70cr at Rs880 per share (CMP 1059)

 

·      Glenmark Pharma – Rating agency Fitch Affirms Glenmark Pharmaceuticals at 'BB'; Outlook Stable – positive

 

·      W.S. Industries bagged orders worth Rs. 371.82 crores from M/s.TRINEVA - JWIL (JV)  for Construction of "New Multi Village scheme - Combined Water Supply Scheme to Nagapattinam Municipality – Positive.

 

·      Can Fin Homes: The company’s board approved a fund raise of Rs 5,000 crore. It’ll raise Rs 4,000 crore via the issuance of on-shore and/or off-shore debt instruments and Rs 1,000 crore via QIP, preferential allotment, rights issue, or a combination thereof. – positive

 

·      Sun Pharmaceuticals: The company announced Health Canada's approval of PRWINLEVI (clascoterone cream 1%) for topical treatment of acne in patients 12 years of age and older. – positive.

 

·      Satin Creditcare – Company approved Rs54cr via debenture - positive

 

·      Paytm - India’s dream of developing a market for consumer-focused technology startups has gotten back on track as digital payments leader Paytm leads a $6 billion rally among peers so far this year. – media report.- positive

 

·      Dynacons Systems - Company receives Order Worth Rs 79.47 Crores From Union Bank Of India For Hyper-Converged Infrastructure – Positive

 

·      Infosys – Company announced that as part of its strategic collaboration with the ATP , the governing body of men's professional tennis, it is launching a new digital Carbon Tracker to make tennis more environmentally responsible - positive

 

 

 

 

Pre-Market Derivatives and Technical Set-up

*Pre-Market Derivatives and Technical Set-up*

🔎 *Nifty* 

Index opened flattish and after a decline in the initial hour, it recovered by 180 points to hit intraday high of 18839 marks. It touched intraday low of 18660 which acted as a buying zone. Bulls took control in the last hour and it closed with gains of around 60 points. It formed a Bullish candle on daily frame but broke its higher highs formation of the last five sessions

📊 Now it has to hold above 18777 zones to witness an up move towards 18888 and 19000 zones while on the downside support exists at 18710 and 18666 zones

🎢 India VIX was down by 0.78% from 11.22 to 11.13 levels. Volatility fell and comforted the bulls at support zones. It has been hovering in a small range from the last few weeks

 

🧮 On option front, weekly maximum Call OI is at 19000 then 18900 strike while maximum Put OI is at 18700 then 18800 strike. Call writing is seen at 18950 then 19000 strike while Put writing is seen at 18800 then 18700 strike. Option data suggests a shift in broader trading range in between 18550 to 19000 zones while an immediate trading range in between 18650 to 18900 zones

🔎 *Bank Nifty*

Index opened marginally lower and gradually drifted towards its key support of 43333 marks in the initial half of the session. It witnessed good recovery from lower zones as it wiped out its intraday losses to close in the positive territory near 43750 zones. It formed a Hammer kind of candle on daily scale as buying was seen from lower zones and closed near its 20DEMA

📊 Now it has to hold above 43750 zones for a bounce toward 44044 then 44250 zones while on the downside support 43500 then 43333 marks

🔎 *Fin Nifty*

Index opened flattish and witnessed selling pressure towards 19302 zones in the initial hour of the trading session. However smart recovery was seen in the second half as it trimmed all the intraday losses and closed the day with gains of around 80 points. It formed a Bullish candle on daily chart and hovering near its crucial 20 DEMA indicating overall bullish bias

📊 Now till it holds above 19400 zones momentum can extend towards 19636 then previous life time high of 19778 zones while on the downside supports are placed at 19400 then 19300 zones

*Stocks* 

🚀 Bullish setup in PEL, Balkrishna Ind, Balkrishna, Lalpath Labs, Rec Ltd, Metropolis, Exide Ind, PFC, Jindalstel, Tatamotors, Deepakntr, LTTS, Hcltech, L&TFH, HDFC Life, Powergrid, Cumminsind, Techm, M&MFin, Bata India and LT

🐻 Bearish setup in ZEEL, Concor, SBI Card, Bandhan Bank, Ambujacem, Bharatforg, BPCL and Colpal

Derivatives update

*Derivatives update*

Good morning !!

Derivatives update for Wednesday, 21st June 2023.

India VIX was down by 0.78% from 11.22 to 11.13 levels. Volatility fell and comforted the bulls at support zones. It has been hovering in a small range from the last few weeks.

Nifty *Put/Call Ratio* (OI) increased from 0.98 to 1.16 level. 

On option front, weekly maximum Call OI is at 19000 then 18900 strike while maximum Put OI is at 18700 then 18800 strike. Call writing is seen at 18950 then 19000 strike while Put writing is seen at 18800 then 18700 strike.

*Option data suggests a shift in broader trading range in between 18550 to 19000 zones while an immediate trading range in between 18650 to 18900 zones.*

For weekly Bank Nifty, Maximum Put OI is at 43500 then 43400 strike and maximum Call OI is placed at 44000 then 45000 strike. We have seen minor Call writing at 44300 with unwinding at 43700 and Put writing is witnessed at 43500 strike.

Bank Nifty Put Call Ratio increased from 0.75 to 0.92. Implied volatility fell from 12.8 to 12.7 levels.

Bank Nifty (CMP 43,766.50)

Data setup for Bank Nifty suggests a trading range in between *43333/43500 to 44044/44250 zones.*

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

In the cash market, FIIs were net sellers to the tune of 1943 crores while DII’s were net buyers worth 1973 crores. FIIs Index Long Short Ratio increased to 52.02%.

Derivatives data and price set up suggests, Nifty has to hold above 18777 zones to witness an up move towards 18888 and 19000 zones while on the downside support exists at 18710 and 18666 zones.

Bank Nifty has to hold above 43750 zones for a bounce toward 44044 then 44250 zones while on the downside support 43500 then 43333 marks.

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

Securities in Ban

Securities in Ban For Trade Date 21 - JUNE -2023 - 

1. BHEL, 2.DELTACORP, 3. HAL, 4. HINDCOPPER, 5.IBULHSGFIN, 6. INDIACEM, 7. L&TFH, 

(Source - nseindia.com)

Advisory

Kindly post your query as and when they arise.

SGX Nifty: 18860

Advisory: Market Pre-opening

Advisory: Support / Resistance : Intraday

Nifty Futures :

S1 - 18800 S2 - 18700

R1 - 18930 R2 - 19020

BankNifty Futures :

S1 - 43650 S2 - 43250

R1 - 44100 R2 - 44500

Nifty Highest Open Interest (22nd Jun Weekly expiry) : Call:19000 / Put : 18700

Market Indication

Market Indication:

Global: FLAT to NEGATIVE

NIFTY: FLAT to NEGATIVE

BANKNIFTY:  FLAT to NEGATIVE

BULK Deals: Thyrocare Technologies, Archean Chemical Industries etc.

Stocks In F&O Ban Period: BHEL, Hindustan Copper, Hindustan Aeronautics, Delta Corp, Hindustan Aeronautics, Indiabulls Housing Finance, India Cements and L&T Finance Holdings

Results Today: Nil

SGX NIFTY:  (Negative)

18874     -7.00    -0.04%

STOCKS IN ACTION 21 June

STOCKS IN ACTION 21 June

SHILPA MEDICARE: Meeting of the Board of Directors of the company will be held on Friday, June 23

To consider proposal of fund raising by way of Rights issue of Equity Shares

Grasim Industries: Board Meeting On June 23 To Consider Issue Of Non-Convertible Debentures On Private Placement Basis

Secure Credentials: To Raise Funds Upto 49 Crore Rupees By Way Of Rights Or Preferential Issue Of Securities

Satin Creditcare: Approves Raising 54 Crore Rupees Via Debentures

GR INFRAPROJECTS: BAGS ORDER

Received Letter of Award for a project 'Four laning of NH 530B from Kasganj Bypass End to Chandan Nagar section of NH 530B in the State of Uttar Pradesh on HAM mode - Package 3'

Madhav Infra Projects: Received Of Letter Of Acceptance Worth 30.77 Crore Rupees

Tamilnadu Petroproducts: Entered Into An Arrangement With Dalavaipuram Renewables  

To Procure Upto 59.93 Mln KWH Power Per Annum

GMDC: Hasmukh Adhia, Principal Adviser To Gujarat CM, Appointed As Director & Chairman With Immediate Effect

Avenue Supermarts’s Vice President of Buying & Merchandising, Dheeraj Kampani, tenders his resignation, effective July 1

HDFC LIFE, HDFC, HDFC BANK: CCI Approves Acquisition Of Additional Stake By HDFC In HDFC Ergo & HDFC Life

As Of March 31, 2023, HDFC Ltd Holds: 49.98% In HDFC Ergo & 48.65% In HDFC Life

Pidilite to manufacture Litokol and Tenax products from Italy in India

Fino Payments Bank: Rakesh Bhartia withdraws his nominations as Part-time Chairman

Aptech: Company’s Managing Director and CEO Anil Pant has taken an indefinite leave on account of sudden deterioration of his health. the Board has constituted an Interim Committee to ensure smooth functioning and continuity of operations of the company.

Gujarat Gujarat Alkalies and Chemicals: Ex-Finance Secretary Hasmukh Adhia takes over as Chairman from Raj Kumar.

SHRIRAM FINANCE: Piramal Enterprises To Sell Stake In Shriram Finance Via Block Deals

Piramal To Sell Entire 8.34% Stake In Co (3.1 Crore Shares)

Deal Floor Price Said To Be Rs 1483/Sh (Max 5% Discount To CMP)

JAMNA AUTO: Large Trade

SMALLCAP WORLD FUND INC

SELL 59,05,682 Shares @ Rs 96.15

ARCHEAN CHEMICAL INDUSTRIES: LARGE TRADE

THE GOVERNMENT PENSION FUND GLOBAL

SELL 950,000 Shares @ Rs 510.87

SOCIETE GENERALE

BUY 642,365 Shares

HDFC AMC: Large Trade

ABRDN INVESTMENT MANAGEMENT 

SOLD 2.17 Crore Shares @ Rs 1873/ Share

BUYERS

Avendus, BNP, BOFA, DE Shaw, Franklin, Ghisallo, ICICI Pru MF, Kuwait Investment Authority, Mirae MF, Morgan Stanley, Nippon MF, SBI MF, Small Cap World Fund, Vanguard, etc

TIMKEN INDIA: Large Trade

TIMKEN SINGAPORE PTE LIMITED 

SOLD 76,00,000 Shares @ Rs 3107/ Share

KUWAIT INVESTMENT AUTHORITY 

BUY 507,369 Shares

THYROCARE: LARGE TRADE

ARISAIG ASIA CONSUMER FUND LIMITED 

SOLD 26,72,707 Shares @ Rs 488

ICICI PRUDENTIAL MUTUAL FUND 

Bought 22,53,044 Shares

KIMS: LARGE TRADE

GENERAL ATLANTIC SINGAPORE 

SOLD 40,68,698 Shares @ Rs 1,710/ Share

SBI MUTUAL FUND 

Bought the Entire Chunk

UPCOMING MAINBOARD ISSUES

UPCOMING MAINBOARD ISSUES

➡️ *Opening This Month* 🗓️

IdeaForge - 650 Cr

Cyient DLM - 740 Cr

PKH Ventures - 350 Cr

➡️ *Opening Next Month* 🗓️

EbixCash - 6000 cr

Deltatech Gaming- 500 cr

Yatra Online - 750

➡️ *Next 2-3 Months* 🗓️

Allied Blenders and Distillers - 1500 cr

Sai Silks Kalamandir - 1500 cr

Zaggle Prepaid - 700 cr

BREAKING NEWS

BREAKING NEWS

Piramal Enterprises to sell stake in Shriram Finance via block deals 

Piramal to sell entire 8.34% stake in co (3.1 crore shares)

Deal floor price said to be Rs 1483 per share (max 5% discount) 

Morgan Stanley broker to the deal 

WIPRO BUYBACK

WIPRO BUYBACK Schedule

Retail Entitlement Ratio : 23.39% (62 Shares v/s Every 265 Shares)

Buyback Window OPEN Date : 22 JUNE

Buyback Window CLOSING Date : 29 JUNE

SETTLEMENT Date (Receipt of Payment and Release of Unaccepted Shares) : 6 JULY

Final Acceptance Ratio will be around 50-55%

BUY FIN NIFTY

BUY FIN NIFTY 19500 PUT @ 113-123, SL 95, TGT 138, 172, 225+

Sell crude

Sell crude below 5859

Sl 5882

Tgt 5844,5829,5809

Market Indication

Market Indication:

Global: FLAT to NEGATIVE

NIFTY: FLAT to NEGATIVE

BANKNIFTY: FLAT to NEGATIVE

BULK Deals: Tega Industries, Shriram Finance, Ami Organics etc.

Stocks In F&O Ban Period: Hindustan Aeronautics, Delta Corp, Indiabulls Housing Finance, India Cements, L&T Finance Holdings, Manappuram Finance, Tata Chemicals, and Zee Entertainment Enterprises

Results Today: Nil

SGX NIFTY: (Negative)

18810 -64.00 -0.34%

News and Impact

News and Impact

 

 

·      Weak opening in the Asian markets, marginally lower in the US Future and overnight fall in European markets, may open domestic market on a soft note. SGX Nifty slipped by 0.25% and US Dow Future declined over 100 points or 0.3% (US market was shut yesterday) . Anxiety about Chinese growth and the lack of fresh stimulus from Beijing pulled down Asian markets. In the morning today, People Bank of China's cut one-year loan prime rate (LPR) and five-year LPR by 10bps each,  in line with expectation. European market declined 1% each as concern of UK short term bond yield spiked to 15-year high ahead of Bank of England (BoE) policy to be announce tomorrow. In the domestic front, expects range bound market today but stock specific action may continue. Yesterday, Index declined nearly half percent after inching closer to fresh record highs on account of profit-taking. However, undertone bullish sentiment in the market on account of strong domestic economy data, stable oil price and impressive direct tax collection will be positive for the market sentiment. US Housing data and along with two US Fed official statement will be in focus today. Expects positive for metal stocks after China cut loan prime rate. Defence stocks will be in focus as Prime Minister US visit commence from tomorrow on ahead of defence deal between US-India. 

 

·      US Market   – Wall Street was shut for a holiday on Monday

 

·      Global market summary –China's one-year loan prime rate (LPR) was cut from 3.65 per cent to 3.55 per cent, while the five-year LPR was also cut from 4.3 per cent to 4.2 per cent UK two-year yield climbs to 5% for first time since 2008, ECB Said to Signal Banks Face Harsher Stress Test Results.

 

·      Asian Market –Asia market open on a mixed bag as investors digested China's loan prime rate decision, after its central bank cut some of its key lending rates. China slashed its one-year and five-year loan prime rate by 10 basis points each. Shares fell in Japan and South Korea, while stocks in Australia and Hong Kong equities inched higher.

 

·      European Market - European stocks fell after their best week since April, as delays to a widely expected stimulus rollout in China stoked concern about a potential global recession. UK, Germany and France Index declined 1% each. The UK’s short-term government borrowing yield  surged to 5% for the first time since the global financial crisis amid concern the troubling inflation outlook could lead to more aggressive monetary tightening from policymakers. The European Central Bank has signaled to lenders benefiting from the surge in interest rates to prepare for adjustments in the name of achieving more credible results.

 

·      Oil –  Brent Crude marginally lower at $76/bbl on concern that stimulus to revive China’s flagging economic recovery may fall short of expectations.

 

·      Gold – Gold declined half percent to $1950/ounce as prospects for more tightening from major central banks and ebbing haven demand dimmed the outlook for the metal.

 

·      Previous Day market Update –Equity benchmark indices reversed their early opening gains and closed in the red after inching closer to fresh record highs on account of profit-taking. Private bank, metal and auto stocks witnessed profit booking. Weak global cues had negative impact on the market. Both Asia and European  markets took a breather after a strong rally last week as investors looked forward to China’s rate decision. The Fed chair's testimony, however, extended their rally to log record levels. Sensex declined 216 points or 0.34% to settle at 63,168 while touched intra-day high of 63575 (all time high of 63583). Nifty dropped 70 points or 0.40% to end at 18,755 while touched intra-day high of 18881 (all time high of 1888). Sector-wise, Nifty Private Bank, Auto Index, Nifty FMCG and Nifty Realty also closed over half percent lower. In the broader market, Nifty Midcap100 and Smallcap100 hit their new 52-week highs and managed to ended in the positive territory. Select PSU Bank Index gained nearly 1%. Kotak Bank, Axis Bank, Maruti, Bajaj Auto and Hindustan Unilever were major loser among the Nifty Index while HDFC Life, TCS, Bajaj Bajaj Finance, Bajaj Finserv and Tech Mahindra among the major gainers.  Both FIIs and DIIs were net sellers Rs1030cr and Rs365cr respectively.

 

·      Nifty Technical Levels – Nifty formed a Bearish Belt Hold sort of candle on daily frame and closed with losses of around 70 points. Supports are being respected and it has been making higher highs from the last five sessions but index is facing some pressure and profit booking at higher zones. Now it has to cross and hold above 18777 zones to witness an up move towards 18888 and 19000 zones while on the downside support exists at 18710 and 18676 zones.

 

·      Bank Nifty Technical Levels – Bank Nifty formed a Bearish candle on daily scale as selling pressure was seen at higher zones and it relatively underperformed the broader market. Now it has to cross above 43750 zones for a bounce toward 44044 then 44250 zones while a hold below the same could see some weakness towards 43500 then 43333 marks.

 

·      Actionable BUY – HAL, Nykaa, ICICI Prudential Life

 

·      Brokers Radar – JB Chemical TGT by Jefferies at 2650, M&M TGT by CLSA at 1700. Nomura TGT on ITC at 485, CLSA TGT on Bharti Airtel at 1030, Morgan Stanley TGT on Bharti Airtel TGT at 870. Citi TGT on Sun Pharma at 1175.

 

·      Events –Prime Minister visit in US.  Block deal on HDFC AMC and Timken India,

 

·      Corporate Action  - Ex-dividend - Heidelberg Cement Rs7, Maithan Alloy Rs6, Automotive Corporation Rs15, Craftsman Automation Rs11.25, Hindustan Unilever Rs22, Bank of India Rs2, Blue Star bonus 1:1, Ceat Ltd ex-dividend Rs12,

 

·      Global Data – Manufacturing Activities, Housing Starts, Building Permit (US), Producer Price Index (Germany). Retail Sales (France).

 

·      Market Summary – HDFC to sell 90% of education subsidiary for Rs 9,060 crore, Timken India Holder Seeks $231 Million in Share Sale, Abrdn to sell its entire 10.2% stake in HDFC AMC through block deal, SEBI Bars IIFL Securities From Taking New Clients For Two Years Grasimand Lubrizol to set up 1st phase of 1 lakh MTPA CPVC resin facility , HPCL Signs Pact to Supply Natural Gas to OPaL’s Petrochem Plant, Axiscade Technologies announce overseas Acquisition. Airbus strikes record deal to sell 500 planes to India’s IndiGo.

 

·      HDFC – Company has agreed to sell 90% of its stake in its education loan subsidiary, HDFC Credila, to Barings Private Equity and Chryscapital group for Rs 9,060 crore. The deal values the company at Rs 10066 crore.- positive

 

·      Tata Power – Company has planned to double its capital expenditure to Rs 12,000 crore in the current fiscal, with a focus on renewables, distribution, transmission and solar equipment manufacturing capacity. – positive

 

·      Timken India - Timken Singapore Pte Ltd offers 63lakh shares in Timken India in a vendor sale, according to terms of the deal obtained by Bloomberg News.  The floor price has been set at 3,000 rupees per share, a 14% discount to Monday’s close of Rs3,488.70 – Long term buying opportunity.

 

·      HDFC AMC - UK-based investment company Abrdn will sell 2.18 crore shares or its 10.2 percent holdings in HDFC AMC via block deals on Tuesday. The floor price for the sale has been fixed at Rs 1800-1892 per equity share, a 5 percent discount to the stock's closing price (CNV.- Any decline will be long term buying opportunity

 

·      Lupin Ltd – Company has received the Establishment Inspection Report (EIR) from the US FDA for its API manufacturing facility located in Visakhapatnam (Vizag). The EIR was issued post the last inspection of the facility conducted from March 6 to March 10, 2023. The inspection closed with the facility receiving an inspection classification of "No Action Indicated" (NAI).- positive

 

·      SEBI Bars IIFL Securities From Taking New Clients For Two Years - Market regulator SEBI has found that IIFL Securities misused and mixed client funds and has hence barred the brokerage from taking on new clients for two years.

 

·      Royal Orchid Hotels – Company appoints Philip Logan as Chief Operating Officer – positive

 

·      IndiGo – Company by placing a firm order for 500 Airbus A320 Family aircraft. This will provide IndiGo a further steady stream of deliveries between 2030 and 2035. This 500 aircraft order is not only IndiGo's largest order, but also the largest-ever single aircraft purchase by any airline with Airbus. – Long term positive

 

·      ITI Limited – Company has signed a Tripartite MoU with Centre for Development of Telematics (CDOT), and Telecommunications Consultants India Ltd  Limited (TCIL) recently as part of the larger efforts by the Government to synergize R&D efforts in the field of telecommunications aimed at establishing a frame work for cooperation between C-DOT, TCIL, and ITI in creation and delivery of innovative telecommunication products and related services for Smart Cities. – positive

 

·      Zydus Lifesciences – Company has received final approval from the USFDA for Minocycline Hydrochloride Extended-Release Tablets – positive

 

·      ITC – Company has entered into definitive agreements to acquire further 857 Compulsorily Convertible Preference Shares of ₹ 10/- each of Mother Sparsh for an amount of ₹ 11.54 crores (approx.).- positive

 

·      3i Infotech – Company has been awarded contract by one of leading Indian Private Sector Bank, for Managed Services Partner for Data center Domain. Total contract value is approximately Rs. 42.60 crore, spread across two years.- positive

 

·      Isgec Heavy Engineering – Company has enhanced the production capacity of its Ethanol Plant from 100 Kilo Liter Per Day to 160 Kilo Liter Per Day and the enhanced capacity has come into commercial production on June 18, 2023, after obtaining all statutory approvals – positive

 

·      Bharat Agri Fert & Realty – Company has received the Sanction of Development from Thane Municipal Corporation for the construction project "Shiv Sai Paradise, Phase 11, Majiwada, Thane – Positive

 

·      Taparia Tools Ltd fixes July 11, 2023 as record date for 4:1 bonus issue-  Positive

 

·      Vikas Ecotech Limited ompany has bagged fresh orders for Specialty Compounds valued at an Approx Rs9cr – positive

 

·      Maruti - commences pre-launch bookings for its latest premium 3-Row UV, INVICTO, in the NEXA channel. The INVICTO marks Maruti Suzuki's grand entrance into the premium 3-Row segment, expanding the already diverse NEXA product lineup – Positive

 

·      Som Distilleries – Company has commenced trial production with the enhanced capacity at the Odisha Plant. This marks an exciting milestone for the company as its expands product offerings and increases production capabilities. The commercial production is expected by early next month. – positive

 

·      Zee Entertainment – Tribunal to hear Zee appeal next on June 26 – expects volatile on the stock

 

·      Grasimand - Both the Company and Lubrizol now reaffirm that the construction of the first phase of the world's largest single-site state-of-the-art 1lakh mt   CPVC resin facility in Vilayat, Gujarat, will commence in later part of the year 2023. Earlier, projects was delayed due the unprecedented global COVID outbreak and its consequences, such as supply chain disruptions – positive

 

·      Zydus Life – Company gets USFDA approval for generic of Solodyn tablets – Positive

 

·      Laurus Labs – Company to in-license gene therapy assets, provide research grant to IIT Kanpur for advancing gene therapy products Additionally, the company will establish a GMP facility at the Techno Park of IIT Kanpur. – Long term positive

 

·      Lupin – Company has announced the launch of its Thiamine Hydrochloride injections in U.S.A. Company along with alliance partner Caplin Steriles had received the drug approval from the U.S. FDA – positive

 

·      Axiscade Technologies - Company announced to acquire 100% stake in Add Solution GmbH late on Friday, Jun. 19, 2023. Looking for a strategic foothold in the automobile space along with offshoring opportunities, the company had announced its acquisition of the German automotive solution provider for 5.5 million euros (Rs 49.27 crore). - positive

 

·      Axis Bank: Axis Bank appointed former RBI Deputy Governor NS Vishwanathan as non-executive part-time chairman with effect from Oct. 27. – positive

 

·      Trident: The company’s unit, Trident Home Textiles, incorporated a wholly-owned subsidiary, Trident Global B.V., in the Netherlands. Trident Global will carry out the wholesale business of textiles, paper, non-food consumer goods, and clothing accessories. – positive

 

·      HPCL– HPCL has won a contract to supply 13.53 trillion Btu of natural gas to ONGC Petro complex at Dahej unit. HPCL will supply the gas from October this year to May 2026. – long term positive

 

·      Asian Energy – Company wins orders from ONGC worth Rs78.24cr - positive

 

·      IRCTC – Company  said it will not face any competition from Adani Group's acquisition of Trainman.Trainman is one of the 32 business-to-consumer partners of IRCTC, contributing 0.13% of the total reserved ticketing volumes – Positive

 

·      Rites - Zimbabwe’s rail utility and an Indian firm have signed an $81mn deal under which the latter will supply 315 wagons and nine locomotives to the African country. The National Railways of Zimbabwe (NRZ) and the Rail India Technical and Economic Service (RITES) inked the agreement for deal. – Positive

 

·      Adani Transmission - Company may achieve financial closure of Rs 1,700 crore for its Mumbai power project by July-end. A consortium of nine multinational institutions is providing the funding through an international construction facility. The funds will be used to build a 400 kV substation and transmission lines in Maharashtra.

 

 

Pre-Market Derivatives and Technical Set-up

*Pre-Market Derivatives and Technical Set-up*

🔎 *Nifty* 

Index opened positive and touched 18881 in the initial tick which is merely few points away from its life time high of 18888 marks. It kept sliding thereafter during the entire session with slight recovery in the last hour but respected its previous day’s low. It formed a Bearish Belt Hold sort of candle on daily frame and closed with losses of around 70 points. Supports are being respected and it has been making higher highs from the last five sessions but index is facing some pressure and profit booking at higher zones

📊 Now it has to cross and hold above 18777 zones to witness an up move towards 18888 and 19000 zones while on the downside support exists at 18710 and 18676 zones

🎢 India VIX was up by 3.55% from 10.84 to 11.22 levels. Volatility was on the rise and discomforted the bulls on account of profit booking at record high levels

 

🧮 On option front, weekly maximum Call OI is at 18800 then 19000 strike while maximum Put OI is at 18700 then 18600 strike. Call writing is seen at 18900 then 18800 strike while minor Put writing is seen at 18600 strike. Option data suggests a shift in broader trading range in between 18550 to 19000 zones while an immediate trading range in between 18650 to 18850 zones

🔎 *Bank Nifty*

Index opened on a positive note but failed to surpass a key hurdle of 44044 marks and corrected by more than 500 points towards 43500 zones. However some recovery was seen from lower zones but again it failed to hold above 43750 zones and remained in a zig zag manner in the later part of the session. It formed a Bearish candle on daily scale as selling pressure was seen at higher zones and it relatively underperformed the broader market

📊 Now it has to cross above 43750 zones for a bounce toward 44044 then 44250 zones while a hold below the same could see some weakness towards 43500 then 43333 marks

🔎 *Fin Nifty*

Index opened gap up but failed to hold gains and witnessed selling pressure towards 19361 zones. However slow and gradual recovery was seen in the latter half of the trading session. It has been consolidating in a narrow range between 19000 to 19600 levels since the last 33 trading sessions and requires a decisive range breakout on either side to commence the next leg of rally

📊 Now till it holds above 19300 levels momentum can extend towards 19550 then 19636 zones while a fall below the same could take it towards 19200 zones

*Stocks* 

🚀 Bullish setup in Lal Path Labs, M&M Fin, Bank Baroda, ICICI Pru, Dixon, Bajfinance, HDFC Life, Abbot India, Ashokley, HAL, Cumminsind, Intellect and Delta Corp 

🐻 Bearish setup in Motherson, Heromotoco, HDFC AMC, ACC, IGL, Kotak Bank, Marico, Eicher Motor, Gujgas, MGL, Voltas and Havells

IIFL securities

IIFL securities will not be allowed to onboard any new clients for the next 2 years - SEBI

This is on account of misusing clients funds for its own trades between 2011-13. Nothing to worry about for the existing clients. 

sebi.gov.in/enforcement/or…

STOCKS IN ACTION 19 June

STOCKS IN ACTION 19 June

PNB Housing Finance Board to consider raising funds worth Rs 5,000 cr via NCDs on a Private placement basis on June 22

Kalpataru Projects International Board to consider raising funds via NCDs on a private placement basis on June 21

Nexus Select Trust: Successfully Raises Non-Convertible Debentures Of Rs. 1,000 Crores At 7.90% Coupon

Skipper: Wins Fresh Orders Worth Rupees 1135 Crore From Domestic & International Market

Gufic Biosciences gets National Medical Products Administration (NMPA), China approval for Prilocaine (API), which is used for infiltration, peripheral nerve blocks & spinal & epidural anaesthesia

Adani Enterprises: Unit Signed A Share Purchase Agreement To Acquire Stark Enterprises

Axiscades Technologies: The company agreed to acquire a 100% stake in Add Solution GmbH for 5.5 million euros (Rs 49.27 crore).

ABB India: Says Kanpur Metro Has Deployed Co’s Electrification Solutions For Safe, Reliabe and Quality Power Distribution

Tata Steel plans Rs 16,000 cr consolidated capex in FY24

Castrol India: Castrol and Mahindra Insurance Brokers have signed an agreement to distribute insurance policies. The deal will allow Castrol Auto Service workshops to distribute eligible insurance policies, and these workshops will be able to register as cashless claim sites with insurance companies.

Trident: The company’s unit, Trident Home Textiles, incorporated a wholly-owned subsidiary, Trident Global B.V., in the Netherlands. Trident Global will carry out the wholesale business of textiles, paper, non-food consumer goods, and clothing accessories.

Ram Ratna Wires: Has Been Allotted Industrial Land Admeasuring 39,680 Square Meters At Rajasthan || JV Epavo Electricals Also Got Allotted Land For Setting Up Manufacturing Facility At Rajasthan

Axis Bank: Board appoints NS Vishwanathan as Non-Executive (Part-time) Chairman for 3 years

The appointment will be effective Oct 27, 2023, or date of approval from RBI 

Dhani Services appoints Gurbans Singh as whole-time director and key managerial personnel, designated as Executive Chairman for a period of 5 years w.e.f. June 18, 2023

JHS SVENDGAARD LABORATORIES: Large Trade 

CHAITALI N VORA 

SELL 707,735 Shares @ Rs 19.21/ Share

IIFL FINANCE: Large Trade

FIH MAURITIUS INVESTMENTS

SELL 50,00,000 Shares @ Rs 500/ Share

DSP MUTUAL FUND 

BUY 50,00,000 Shares 

AAVAS FINANCIERS: Large Trade

SMALL CAP WORLD FUND 

SELL 708,978 Shares @ Rs 1350.02/ Share

Derivatives update

*Derivatives update*

Good morning !! Derivatives update for Monday, 19th June 2023.

India VIX was down by 2.17% from 11.08 to 10.84 levels. Volatility sunk lower and supported the bulls at record high index levels.   

Nifty *Put/Call Ratio* (OI) increased from 1.13 to 1.29 level. 

On option front, weekly maximum Call OI is at 18800 then 19000 strike while maximum Put OI is at 18700 then 18800 strike. Call writing is seen at 19100 then 19000 strike while Put writing is seen at 18800 then 18700 strike.

*Option data suggests a shift in broader trading range in between 18550 to 19000 zones while an immediate trading range in between 18700 to 18900 zones.*

For weekly Bank Nifty, Maximum Put OI is at 44000 then 43500 strike and maximum Call OI is placed at 44000 then 45500 strike. We have seen Call writing at 45500 with unwinding at 43600 and Put writing is witnessed at 43700 strike.

Bank Nifty Put Call Ratio increased from 0.66 to 0.99. Implied volatility fell from 13.9 to 12.2 levels.

Bank Nifty (CMP 43,938.15)

Data setup for Bank Nifty suggests a trading range in between *43500/43750 to 44144/44250 zones.*

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

In the cash market, FIIs were net buyers to the tune of 795 crores while DII’s were net buyers worth 681 crores. FIIs Index Long Short Ratio increased to 55.13%.

Derivatives data and price set up suggests, Nifty has to hold above 18777 zones to witness an up move towards 18888 and 19000 zones while on the downside support exists at 18710 and 18676 zones.

Bank Nifty has to hold above 43750 zones for a bounce towards 44144 then 44250 levels while on the downside support is seen at 43750 then 43500 zones.

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

Derivatives update

*Derivatives update*

Good morning !! Derivatives update for Monday, 19th June 2023.

India VIX was down by 2.17% from 11.08 to 10.84 levels. Volatility sunk lower and supported the bulls at record high index levels.   

Nifty *Put/Call Ratio* (OI) increased from 1.13 to 1.29 level. 

On option front, weekly maximum Call OI is at 18800 then 19000 strike while maximum Put OI is at 18700 then 18800 strike. Call writing is seen at 19100 then 19000 strike while Put writing is seen at 18800 then 18700 strike.

*Option data suggests a shift in broader trading range in between 18550 to 19000 zones while an immediate trading range in between 18700 to 18900 zones.*

For weekly Bank Nifty, Maximum Put OI is at 44000 then 43500 strike and maximum Call OI is placed at 44000 then 45500 strike. We have seen Call writing at 45500 with unwinding at 43600 and Put writing is witnessed at 43700 strike.

Bank Nifty Put Call Ratio increased from 0.66 to 0.99. Implied volatility fell from 13.9 to 12.2 levels.

Bank Nifty (CMP 43,938.15)

Data setup for Bank Nifty suggests a trading range in between *43500/43750 to 44144/44250 zones.*

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

In the cash market, FIIs were net buyers to the tune of 795 crores while DII’s were net buyers worth 681 crores. FIIs Index Long Short Ratio increased to 55.13%.

Derivatives data and price set up suggests, Nifty has to hold above 18777 zones to witness an up move towards 18888 and 19000 zones while on the downside support exists at 18710 and 18676 zones.

Bank Nifty has to hold above 43750 zones for a bounce towards 44144 then 44250 levels while on the downside support is seen at 43750 then 43500 zones.

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

News and Impact

News and Impact

 

 

·      Expects market to open on a flat note but intra-day may cross record high level today back of  strong micro data along with persistent FIIs buying interest and rally in the global markets. The tech-heavy Nasdaq 100 ended the week 4% higher, logged its longest weekly winning streak since March 2019. Previous day, both Sensex and Nifty close on a record high and just 20 points from the lifetime high and expectation of new all time high level today. Sentiments remain robust due to CPI data falling to 25-month low, strong direct tax of above 11% to in April-June, nearly 8-year low WPI data, USDINR fall to 1-month low to below 82 and hope of good monsoon will boost the market sentiment. Foreign institutions net bought Rs 16,406 crore worth of equities in June. They have been net buyers of Rs 45,665 crore worth of Indian equities so far in 2023. US market on Friday marginally decline due to profit booking and Asian markets open on a mixed bag. SGX Nifty is flat to negative. Expects range bound market today on account of US market will be shut today. Expects stocks specific action in the market and any decline will be good buying opportunity. Expects, rally to continue on defense stocks on ahead of the Indian PM visit in US for defense collaboration this week. Metal stocks may be positive on hope of China to stimulus announcement. FMCG stocks may be positive on hope of good monsoon to improve rural demand and the government cut base import taxes on refined soybean and sunflower oils. Moreover, rally may continue on realestate, mid and small cap stocks. Watch on HDFC Bank – its ADR gained by 2.5% on Friday

 

·      US Market   – U.S. stocks ended lower on Friday on account of profit booking as investors weighed the path of monetary policy tightening by the Federal Reserve and the sustainability of the recent bull market. Nasdaq Composite slipped 0.5% while Dow Jones declined marginally by 0.3%. However, Nasdaq logged its longest weekly winning streak since March 2019. Wall Street appeared to cheer signs that the Fed's tightening cycle has helped to ease price pressures, while two Fed officials warned that the central bank may have to raise rates further to tame inflation.

 

·      Global market summary –US Dollar Index fell to 2-month low at 102. The Nasdaq logged its longest weekly winning streak since March 2019.

 

·      Asian Market –Asian equities are witnessing mixed bag. US equity futures reversed earlier gains and the offshore yuan weakened as investors parsed news on signs of improving ties between Washington and Beijing and hopes for further stimulus in China to boost its flagging recovery.

 

·      European Market - European shares rose on Friday, posting their biggest weekly advance since April, buoyed by gains in the luxury goods and utilities sectors. France Index gained over 1% while Germany Index advance 0.50%

 

·      Oil –  Brent Crude advance 2% to above $76/bbl. The oil rig count in the US decreased by 4 this week, according to the latest data released by oilfield services company Baker Hughes on Friday.

 

·      Gold –Gold slipped marginally to $1956/ounce after hawkish signals from the Federal Reserve and the European Central Bank.

 

·      Previous Day market Update-  Equity benchmark Sensex and Nifty ended at an all-time high on a closing basis on account of relentless buying interest across the sectors and a rally in the global markets along with strong domestic data and FIIs inflow. Both Sensex and Nifty are just a few points away from a record high today. Nifty touched an intra-day high of 18865 while the all-time high was 18887. On the domestic front, May CPI data fell to 25-month low and multi years low WPI data which have a positive sentiment in the market. Moreover, FIIs were net buyers of over Rs5000cr this week, USDINR fell to a 1-month low to below 82, and the hope of a good monsoon and stable oil prices have positive sentiment in the market. Sensex surged 467 points or 0.7% to close at 63385 while touching a high of 63520 (all-time 63583). Nifty advance 138 points or 0.7% to close at Rs18826 while touching an intra-day high of 18865. Banking, defense, FMCG, cement, and insurance stocks were major gainers today. Both Mid-cap and Small-cap Index gained 1% each. Both FIIs and DIIs were net buyers Rs795cr while DIIs Rs681cr respectively.

 

·      Nifty Technical Levels – Nifty formed a Bullish candle on daily scale and has been making higher highs from the last four sessions. It formed a Bullish candle on weekly frame and has been making higher highs from the last twelve weeks. Now it has to hold above 18777 zones to witness an up move towards 18888 and 19000 zones while on the downside support exists at 18710 and 18676 zones

 

·      Bank Nifty Technical Levels – formed a Bullish candle on daily scale as buying was seen in heavyweights and ended with decent gains of 500 points. On weekly scale it formed a small bodied candle with long shadow as buying is visible at lower zones but negated the formation of highs lows after thirteen weeks. Now it has to hold above 43750 zones for a bounce towards 44144 then 44250 levels while on the downside support is seen at 43750 then 43500 zones.

 

·      Actionable BUY – Titan, HAL, Rites, IRCTC, HDFC Bank, Tata Steel

 

·      Brokers Radar – HSBC TGT on Mahindra Finance at 360, Manappuram Finance TGT by Morgan Stanley at 160, Britannia TGT by Nomura at 5425. Infosys – Citi TGT at 1395 AND Macquarie TGT at 1310. HCL Tech Macquarie TGT 1520. Wipro TGT by Citi at 335. Wipro TGT by Macquarie at 440.

 

·      Events – SBI AGM, Can Fin Home board meeting for fund raising, Mahindra CIE will change it new name, SAT verdict on Zee Entertainment, Global Surfactant end of promoters lock in period.  Sovergren Gold issue open today at Rs5926 per gram.

 

·      Corporate Action  - Ex-dividend - LG Balkrishnan Rs16, Ashirbad Capita Bonus 1:2, Vintage Coffee Right issue

 

·      Global Data – NAHB Housing Market Index (US), Housing Price Index (UK)

 

·      Market Summary – State Bank of India, HDFC to gain from Nifty Bank index readjustment, Tata Steel sets FY24 capex at Rs 16,000 crore, Rites wins overseas order , Kotak Mahindra Plans to Raise Rs7k Via Bond Sale in 2023-24, USFDA completes inspection at Dr Reddy's Lab and oratories Ltd's Bollaram API unit and Zero observation, ABB wins order from Kanpur Metro

 

·      IRCTC – Company has announced that around 14.5 lakh reserved tickets are booked on daily basis in Indian Railways, out of which 81% are e-tickets, booked through IRCTC.

 

·      Tata Steel -  Company is planning a consolidated capital expenditure (capex) of Rs 16,000 crore for its domestic and global operations during the current financial year, according to its top management.

 

·      Kotak Mahindra – Company’s board approved raising as much as 70 billion rupees ($854 million) selling bonds in one or more tranches during the financial year to March 2024 - positive

 

·      Paras Defence – Company secured a contract worth about Rs53cr from the Indian defense ministry for the supply of optical periscopes.- positive

·      PVR – Company collected Rs240cr in the last two days on new movie Adipurush. – positive

 

·      HDFC – Company has sought RBI permission to classify its outstanding bonds with a tenure of more than seven years as infrastructure bonds. The mortgage financier is awaiting RBI's decision on this even as it is preparing to complete the merger process by the end of this month, a person aware of the matter said. – We are positive on the stock.

 

·      MosChip Technologies - A semiconductor and system design services and IP company, announced today that Dr. Naveed Ahmed Sherwani has been appointed as Non-Executive Director of the Company.- Positive

 

·      State Bank of India, HDFC to gain from Nifty Bank index readjustment – (media report)—SBI and HDFC will see maximum inflows from passive trackers on account of the quarterly rebalancing exercise of the Nifty Bank Index. IndusInd Bank and AU Small Finance Bank could see maximum outflows. The rejig of the Nifty CPSE Index will result in inflows in ONGC, NTPC, and Coal India and maximum outflows in Bharat Electronics, according to Brian Freitas, a New Zealand-based analyst with Periscope Analytics

 

·      Skipper Limited - One of the world's leading manufacturers for Power Transmission & Distribution manufacturer of Telecom and Railway structures wins fresh orders worth Rs.1135 Crores from Domestic & International Market – positive

 

·      ABB - The Kanpur Metro has deployed ABB India's Electrification solutions for safe, reliable and quality power distribution. ABB India has been contributing to Indian Metro systems by proving electrification solutions to 13 metro rail projects across India. – positive

 

·      Dr Reddy - The USFDA completed a GMP inspection at Dr. Reddy's Lab's API manufacturing facility in Bollaram, Hyderabad (CTO-3). The inspection was conducted from June 12, 2023 to June 16, 2023. The inspection closed with zero observations.- positive

 

·      Adani Enterprises - The Adani Group owned Mumbai International Airport has registered a 23% increase in the total passenger in May.  The Chhatrapati Shivaji Maharaj International Airport saw a footfall of 43.44 lakh passengers in May. With that, the passengers hadled by one of the busiest airports in the country has risen higher than pre-Covid levels.

 

·      Nexus Select Trust - Company has successfully raised Rs. 1,000 crores of coupon-bearing Non-Convertible Debentures ("NCDs") – positive

 

·      Gufic Biosciences – Company received approval from National Medical Products Administration (NMPA), China for our product PRILOCAINE (API) which is an amide-type local anaesthetic of fast onset and intermediate duration of action. This approval shall help commercialization of the said product in China and explore Chinese market. – positive

 

·      Ram Ratna Wires- Company announced the setting up of new manufacturing facility for expansion its plant at Salarpur, Bhiwadi, Distt - Alwar, Rajasthan – positive

 

·      Wipro – Company announced the launch of the Wipro Industry Innovation Experience for Energy and Utilities, featuring a new suite of integrated digital solutions built on Microsoft Cloud.- positive

 

·      Ashok Leyland, Aidrivers develop India’s first autonomous electric terminal - Ashok Leyland and Aidrivers, the global specialist in AI- enabled autonomous solutions are partnering to produce autonomous electric terminal trucks to address the net zero emissions needs of the port industry.- positive

 

·      Kalpataru Projects - Company has acquired the rights to redevelop a housing society in the Borivali suburb of Mumbai, and is planning to develop an over seven lakh sq. ft. residential project with an investment of around Rs 700 crore.- positive.

 

·      NLC India – Company announced the  incorporation of a subsidiary company to undertake its existing  renewable energy projects. NLC India Renewables (NIRL) was incorporated as a wholly-owned subsidiary - positive

 

·      Adani Green – Rating agency Fitch Affirms Adani Green Energy Restricted Group 2's Notes at 'BBB-'; Outlook Stable

 

·      TCS – Company and U.S. insurer Transamerica have agreed to terminate the 10-year, $2-billion outsourcing deal after five-and-a-half years. Transamerica plans to cut its dependence on third-party IT services firms such as TCS, electing to do much of the tech work itself, according to an executive familiar with the development. – Not yet major impact ,

 

·      Adani Power - Adani Electricity Mumbai has received over 3,000 applications from the customers of rival Tata Power for migration in the last two months after state regulator's multi-year tariff order brought down rates for the Adani Group company. There has been migration requests for close to 350 million units of power from around 3,000 applicants across the commercial, industrial as well as well as residential household customers of Tata Power in Mumbai –  We are long term positive on Tata Power while marginally positive on Adani Power

 

·      PDS Ltd – PDS Lifestyle has proposed to buy 100% stake in U.K.-based clothing brand New Lobster for Rs 150.51 crore - Positive

 

·      DMR Hydroengineering - Company has received a Letter of Acceptance for Consultancy Services for design and construction of Treated Water Tunnel and allied works in Dist. Raigad, subject to the approval of CIDCO with order value Rs125cr – positive

 

·      Natco Pharma- Company has announced final approval for its ANDA for Tipiracil Hydrochloride and Trifluridine Tablets from the USFDA. Natco believes it is one of the First-to-File for the product and may be eligible for a 180-day exclusivity at the time of launch. Lonsurf® is indicated primarily for the treatment of colorectal cancer. As per IQVIA data, Lonsurf® had generated annual sales of $211 million in USA during the twelve months ending December 2022. – positive

 

·      Rites – Company has signed a Rs 665 crore contract with National Railways of Zimbabwe for supply of 3000 diesel electric locomotives and high sided open wagons. – positive

 

·      DroneAcharya Aerial Innovations – Company has entered into a Memorandum of Understanding (MoU) with King Mongkut's Institute of Technology Ladkrabang (KMITL) which is one of the top universities based out of Bangkok, Thailand. – positive

 

·      Indsil Hydro Power – Company has entered into a transaction with a buyer for sale of the 12 MW power plant of the Company situated at Raipur, Chhattisgarh for an aggregate consideration of Rs. 11.40 Crores – Positive

 

·      Naapbooks Ltd – Company has entered into MOU with the MSME Promotion Council, New Delhi to Provide digitization and digitalization services to MSMEs and to make MSMEs digitally empowered and motivate them to adopt digital tools, applications and technologies in their production & business processes. – Positive

 

·      Amines and Plasticizers – Company has received all the required statutory clearances and the Plant at Turbhe, Navi Mumbai will be fully operational effective today. – positive

 

 

Pre-Market Derivatives and Technical Set-up

*Pre-Market Derivatives and Technical Set-up*

🔎 *Nifty* 

Index opened positive and kept moving in the northward direction throughout the day and touched intraday high of 18864 zones, merely a few points away from its life time high levels. Bulls were in complete dominance in the second half of the session and gave the highest ever closing with gains of around 140 points. It formed a Bullish candle on daily scale and has been making higher highs from the last four sessions. It formed a Bullish candle on weekly frame and has been making higher highs from the last twelve weeks

📊 Now it has to hold above 18777 zones to witness an up move towards 18888 and 19000 zones while on the downside support exists at 18710 and 18676 zones

🎢 India VIX was down by 2.17% from 11.08 to 10.84 levels. Volatility sunk lower and supported the bulls at record high index levels

 

🧮 On option front, weekly maximum Call OI is at 18800 then 19000 strike while maximum Put OI is at 18700 then 18800 strike. Call writing is seen at 19100 then 19000 strike while Put writing is seen at 18800 then 18700 strike. Option data suggests a shift in broader trading range in between 18550 to 19000 zones while an immediate trading range in between 18700 to 18900 zones

🔎 *Bank Nifty*

Index opened on a positive note near 43600 zones but remained consolidative in a narrow range of 150 points between 43650 to 43800 in the first half of the session. However good momentum was seen in the last hour of the session as swift movement of 300 points was seen towards 44100 zones. It formed a Bullish candle on daily scale as buying was seen in heavyweights and ended with decent gains of 500 points. On weekly scale it formed a small bodied candle with long shadow as buying is visible at lower zones but negated the formation of highs lows after thirteen weeks

📊 Now it has to hold above 43750 zones for a bounce towards 44144 then 44250 levels while on the downside support is seen at 43750 then 43500 zones

🔎 *Fin Nifty*

Index opened gap up and witnessed buying interest right from the initial tick and continued the momentum throughout the entire trading session. It formed a strong bullish candle on daily frame and Doji on weekly frame indicating that buying is visible at lower levels

📊 Now till it holds above 19300 levels momentum can extend towards 19600 then previous life time high of 19778 zones while on the downside supports are placed at 19300 then 19200 zones

*Stocks* 

🚀 Bullish setup in HDFC Life, Ashokley, Exide, ICICI Pru, M&MFin, HAL, IRCTC, Lichsgfin, BHEL, SBI Life, IDFC First Bank, BEL, Ind Hotel, Naukri, Bajaj Finserv, IDFC, Cholafin, Trent, Bharatforg, Titan, Muthootfin, ITC, Mcdowell, and Balkrishna Ind 

🐻 Bearish setup in Bajaj Auto, Guj Gas, TCS and NMDC

Market Indication

Market Indication:

Global: FLAT to POSITIVE

NIFTY: FLAT to POSITIVE

BANKNIFTY: FLAT to POSITIVE

BULK Deals: IIFL Finance, IKIO Lighting, Piramal Pharma etc.

Stocks In F&O Ban Period: Delta Corp, Indiabulls Housing Finance, Indian Energy Exchange, India Cements, L&T Finance Holdings, Manappuram Finance, Tata Chemicals, and Zee Entertainment Enterprises

Results Today: Nil

SGX NIFTY: (Positive)

18916 +18.00 +0.10%

Buy TATA steel

Buy TATA steel

For short term

Traget 140,150++

EX BONUS DATES

*EX BONUS DATES*

COMPANY RATIO XB DATE

*BLUE STAR 1:1 20-06-2023*

*IndiaMart 1:1 21-06-2023*

*Gulshan Poly 1:5 21-06-2023*  

*Sadhna Nitro 2:9 27-06-2023*

*APTECH 2:5 06-07-2023* 

*ROTO PUMPS 1:1 07-07-2023*

IPOs in Pipeline

🚨 *IPOs in Pipeline* 🚨

1. HMA Agro Industries Limited (Dates Confirmed)

2. IdeaForge Technology Limited

3. PKH Ventures 

4. Cyient DLM

5. Deltatech Gaming 

*IPO Season 🌧️ is Back !!!*

_*Stay Tuned For All IPO Updates*_ 💰

5 Companies Files DRHP with SEBI

*5 Companies Files DRHP with SEBI for IPO this Month* 🗓️

📍Valiant Laboratories IPO

📍ASK Automotive IPO

📍Western Carriers IPO

📍Mukka Proteins IPO

📍RBZ Jewellers IPO

Economic Calendar Today

*Economic Calendar, Monday, June 12th 2023*

🇯🇵 *Japan* : Machine Tool Orders (YoY)

🇨🇳 *China* : New Loans, Outstanding Loan Growth (YoY), Chinese Total Social Financing, M2 Money Stock (YoY)

🇮🇳 *India* : Cumulative Industrial Production (Apr), CPI (YoY) (May), Manufacturing Output (MoM) (Apr), Industrial Production (YoY) (Apr)

🇺🇸 *USA* : Consumer Inflation Expectations, 3-Month Bill Auction, 6-Month Bill Auction, 3-Year Note Auction, 10-Year Note Auction, Federal Budget Balance (May)

GoldBond

Sovereign Gold Bond (SGB) scheme - Series I will be open between June 19-23. Series II will be open between Sept 11-15.

Incredible growth! Electric vehicles

Incredible growth! Electric vehicles (EVs) now account for 6.4% of total vehicle registrations in India! 💪

2023*: 6.4%

2022: 4.6%

2021: 1.8%

2020: 0.71%

2019: 0.73%

2018: 0.5%

*Up to June 15

(Vahan Registration; RBI)

BUY ENDURANCE

BUY ENDURANCE @ 1575-1600, SL 1555, TGT 1688, 1750, 1857

Pre-Market Derivatives and Technical Set-up

*Pre-Market Derivatives and Technical Set-up*

🔎 *Nifty* 

Index opened positive but failed to cross and hold above 18777-18800 zones and drifted lower throughout the day. It breached its previous day’s low and touched intraday low of 18669 in the last hour to close with losses of around 70 points. Index remained in overall pressure and witnessed profit booking decline. It formed a Bearish candle on daily scale but has been making higher highs from the last three sessions

📊 Now it has to hold above 18676 zones to witness an up move towards 18777 and 18888 zones while on the downside support exists at 18636 and 18550 zones

🎢 India VIX was down by 0.72% from 11.16 to 11.08 levels. Volatility was slightly down and is at overall lower levels causing premiums to squeeze

 

🧮 On option front, weekly maximum Call OI is at 18800 then 18700 strike while maximum Put OI is at 18700 then 18600 strike. Call writing is seen at 18700 then 18800 strike while Put writing is seen at 18700 then 18500 strike. Option data suggests a broader trading range in between 18450 to 18900 zones while an immediate trading range in between 18600 to 18800 zones

🔎 *Bank Nifty*

Index opened on a flattish note and failed to hold above 44044 marks and gradually drifted by more than 500 points towards 43400 zones. It finally broke its crucial 20DEMA on the daily scale and gave a range breakdown after fourteen sessions. It formed a Big Bearish candle on daily scale as sustained selling pressure was seen throughout the day as private Banks remained under pressure

📊 Now till it holds below 43750 zones weakness could be seen towards 43250 then 43000 levels while on the upside hurdle is placed at 43750 then 44000 levels

🔎 *Fin Nifty*

Index opened flattish and witnessed sustained selling pressure throughout the trading session. It gave a range breakdown of the last twelve trading sessions and closed below its crucial 20DEMA which implies pause in the current up move. It formed a Bearish Marubozu candle on daily frame which suggests dominance by bears. 

📊 Now till Fin Nifty holds below 19350 levels weakness could be seen towards 19100 then 18980 zones while on the upside hurdle is seen at 19372 then 19500 levels

*Stocks* 

🚀 Bullish setup in L&TFH, Godrejprop, Apollo Hospital, IDFC First Bank, Drreddy, Cipla, Lupin, Dabur, BPCL, Nestleind, ITC, M&M, Bata India and Asian Paint

🐻 Bearish setup in ZEEL, RBL Bank, Heromotoco, PNB, Can Bank, Bandhan Bank, Tatachem, Bank Baroda, Wipro, Federal Bank, SBIN, Kotak Bank, HDFC Bank, Eicher Motor and HDFC

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.