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Thursday, June 8, 2023
Dividend Dates
*Dividend Dates*
Ex-Dividend *09 June 2023 (Tomorrow)*
Last date for Cum-Dividend *Today*
*Asian Paints Ltd.*
Dividend Per Share Rs.21.25
Previous day Closing Price – Rs. 3223.85
*Bhansali Engineering Polymers Ltd.*
Special Dividend Per Share Rs.14
Final Dividend Per Share Rs.1
Previous day Closing Price – Rs. 160.7
*Caplin Point Laboratories Ltd.*
Dividend Per Share Rs.2
Previous day Closing Price – Rs. 777.55
*Cigniti Technologies Ltd.*
Special Dividend Per Share Rs.2.5
Final Dividend Per Share Rs.3.0
Previous day Closing Price – Rs. 907.6
*Dynamatic Technologies Ltd.*
Dividend Per Share Rs.7
Previous day Closing Price – Rs. 3374.1
*Elecon Engineering Co.Ltd.*
Dividend Per Share Rs.2
Previous day Closing Price – Rs. 561.65
*Elpro International Ltd.*
Dividend Per Share Rs.0.23
Previous day Closing Price – Rs. 60.74
*HDFC Asset Management Company Ltd*
Dividend Per Share Rs.48
Previous day Closing Price – Rs. 1994.8
*Himadri Speciality Chemical Ltd*
Dividend Per Share Rs.0.25
Previous day Closing Price – Rs. 131.6
*Indian Hotels Co.Ltd.*
Dividend Per Share Rs.1
Previous day Closing Price – Rs. 395.9
*National Fertilizers Ltd.*
Dividend Per Share Rs.1.53
Previous day Closing Price – Rs. 71.8
*NRB Bearings Ltd.*
Dividend Per Share Rs.4.1
Previous day Closing Price – Rs. 195.8
*Solar Industries India Ltd.*
Dividend Per Share Rs.8
Previous day Closing Price – Rs. 3887.3
*Maruti Interior Products Ltd*
Dividend Per Share Rs.0.5
Previous day Closing Price – Rs. 149
*Voltas Ltd.*
Dividend Per Share Rs.4.25
Previous day Closing Price – Rs. 805.65
STOCKS IN ACTION 8 June
STOCKS IN ACTION 8 June
Punjab & Sind Bank board to consider raising upto Rs 750 cr via Bonds in one or more tranches on June 12
Titagarh Wagons: Board to consider raising funds via QIP/Rights Issue on June 10
Bank Stocks: To be in focus ahead of the Monetary Policy Committee decision on policy repo rate. MPC is likely to continue its status quo on the key lending rate at its second meeting in the new fiscal, amidst easing inflation and resilient growth.
Zydus Life gets USFDA approval for Tadalafil tablets, which are used to treat Pulmonary Arterial Hypertension & improve exercise capacity in both men & women
Mazagon Dock Shipbuilders: Thyssenkrupp, Co Sign Submarine MoU
Thyssenkrupp, Mazagon Intend To Build Submarines In India
Lemon Tree Hotels signs licence agmt for a 60-room property in Rajamundry, Andhra Pradesh; the hotel is expected to be operational by Q3 of FY25
Sula Vineyards identifies new CFO, who will come on board in August
Company launches three new luxury lakeside villas in Nashik
Tata Elxsi launches InnovationHub & nearshore engineering centre in Troy, Michigan
Tata Elxsi partners with ISRO to enable the upcoming GaganyaanMission
Tata Elxsi to design & develop Crew Module Recovery Models (CMRM) for recovery team training of the space mission
Hatsun Agro to consider sale of its windmill division by way of transfer of assets & liabilities on July 5, 2023
Wipro & Cisco launches managed private 5G-as-a-Service solution
Gati: Total volume, including surface and air express, rose 8% sequentially in May. It rose 1% from the year ago period. Company said volumes in May continued to show an improving trend owing to an uptick in preparations for the upcoming festive season starting in the last week of May. This is expected to continue over the coming months.
Aether Industries: Company signed a Letter of Intent with U.S. based oil field services company for strategic supplier and contract manufacturing partnership. The letter specifies four strategic products that will be supplied to the global energy and oil and gas locations of the U.S. based company, including a significant supply within India.
Nelco invests in Piscis Networks to bolster its portfolio of Satellite Communication Solutions
Adani Enterprises: Spokesperson Says Adani Group To Go Slow On Dealmaking As High Global Cost Of Capital Weighs
Says Adani Group To Focus On Completion Of Existing Projects
Haldyn Glass: Says One Of The Furnace At Plant Located At Vadodara Will Remain Shut For A Period Of 90 Days To Undertake Relining
Operation At Second Furnace Will Continue As Usual
Life Insurance Corp: Company increased stake in Tech Mahindra by 2%, from 6.87% to 8.89%. The holding increased at an average cost of Rs 1,050.77.
Stove Kraft: Chief Financial Officer Balaji A S has resigned from the company citing personal reasons. The company is in the process of hiring a professional for the position of chief financial officer.
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BUY 200,000 Shares @ Rs 109.35/ Share
SNOWMAN LOGISTICS: Large Trade
Promoter GATEWAY DISTRIPARKS LIMITED
BOUGHT 11,00,000 Shares @ Rs 40.02/ Share
EKI ENERGY SERVICES: Large Trade
NEXT ORBIT VENTURES FUND
SELL 200,000 Shares @ Rs 492.35/ Share
DEEPAK FERTILISERS: Large Trade
SMALLCAPWORLD FUND INC
SELL 23,54,000 Shares @ Rs 548.42/ Share
DLINK INDIA: Large Trade
ASHISH KACHOLIA
SELL 194,662 Shares @ Rs 228.5/ Share
BSE Sensex performance
BSE Sensex performance (%):
2023: +3.22%*
2022: +4.44%
2021: +21.69%
2020: +15.60%
2019: +13.8%
2018: +6.7%
2017: +28.2%
2016: +1.8%
2015: -5.05%
2014: +30.1%
*Till June 7
(BSE)
Market Indication
Market Indication:
Global: FLAT to POSITIVE
NIFTY: FLAT to POSITIVE
BANKNIFTY: FLAT to POSITIVE
BULK Deals:Ceinsys Tech, Gravita India etc.
Stocks In F&O Ban Period: Indiabulls Housing Finance, India Cements, and Manappuram Finance
Results Today: Nil
SGX NIFTY: (Positive)
18830 +18.00 +0.10%
News and Impact
News and Impact
· Expects market to open a flat note on ahead of key RBI credit policy to be announce today (expected time 10am). Expectation of RBI to keep unchanged interest rate while RBI commentary will be important for the market sentiment. SGX Nifty is trading flat to positive. Technically, Nifty has given a range breakout on daily frame and gave the second highest ever close. Nifty just less than 1% or 160 points lower of all time high. Yesterday, Nifty close at 6-month high of above 18700 level and Sensex topped above 63k for first time in 2023. Expects higher intra-day volatility today on ahead of RBI policy outcome and weekly Nifty and Bank F&O expiry. Positive factor that the FIIs were continued buying in Indian equity and net buyers nearly Rs1400cr yesterday. Moreover, IMD forecast monsoon may Start in 48 hours, better than expected PMI, GDP and auto monthly sales will be positive for the market sentiment. Among the global markets, U.S. stocks ended mostly lower (Nasdaq slipped 1%) on Wednesday, feeling pressure after the Bank of Canada unexpectedly raised interest rates by 25bps after a long pause, sparking concern the US Federal Reserve also might not be done tightening policy. US 10-year and 2-year bond yield spiked by 2% yesterday. Moreover, the U.S. trade deficit jumped 23% in April to a six-month high of $74.6 billion is also concern in the global markets. However, small cap index major Russel 2000 index soared by 1%. Euro zone and Japan GDP data will be announce today. Traders focus on interest sensitive sectors like auto, nbfc and realestate on ahead of RBI policy today. Expects momentum to be continue on defence stocks.
· US Market –A drop in tech shares drove US equity indexes lower, while Treasuries retreated after a surprise Bank of Canada rate increase fueled bets the Federal Reserve is not done with its own tightening. The tech-heavy Nasdaq indexes fell more than 1%, with the likes of Alphabet Inc. and Microsoft Corp. off at least 2.5% while Dow Jones managed to ended positive territory.
· Global market summary –US Yields on the policy-sensitive two-year rose more than 8 basis points to 4.56% as traders drove up bets for a quarter point hike in US interest rates by July.
· Asian Market – Asian markets are poised to open lower in the wake of a slide on Wall Street as traders boosted bets on a U.S. rate hike after a surprise increase by the Bank of Canada. Shares in Australia, Japan and Hong Kong, Taiwan Index marginally decline. Japan GDP data to be announce today.
· European Market –-- European shares were steady as strong updates from Zara-owner Inditex SA and Danske Bank A/S failed to stir a risk-on mood among investors watchfully preparing for key central bank meetings next week. UK, Germany and France Index ended flat to negative. Policy decisions are due from the Federal Reserve and the European Central Bank next week.
· Oil – Oil futures rose 2% to above $77/bbl, finding support after data showed China's crude imports rose in May and fall in US Inventory.
· Gold – Gold slipped over 1% to $1945/ounce after the spiked in US bond yield on ahead of US rate decision to be announce next week.
· Previous Day market Update –. There was renewed buying in TCS, Bajaj Auto, Reliance, Titan, L&T that lifted Nifty over 100 points to close at 6-month high of above 18700 level and Sensex topped above 63k for first time in 2023 ahead RBI credit policy to be announce tomorrow. Auto, metal, FMCG, sugar, real estate, mid and small cap stocks were major gainers today. IMD forecast monsoon may Start in 48 hours, FIIs turned into net buyers yesterday after net sellers in the last three trading sessions and hope of RBI to keep unchanged interest rate in the tomorrow credit policy meeting have positive impact in the market. Moreover, better than expected PMI, GDP and auto monthly sales boosted the market sentiment. Among the global market, Bigger-than-expected drop in Chinese exports and disappointing Germany economy data pulled down European Index. However, Asian markets ended mixed bag after the China announced stimulus to boost its economy. Nifty rose 127 points or 0.6% to end at 18726 and Sensex advance 350 points (0.6%) to close at 63143. Nifty 500 stocks advance decline ration was remain strong at 3:1. Both FIIs and DIIs were net buyers Rs1383cr and Rs392cr respectively.
· Nifty Technical Levels – Nifty formed a Bullish candle on daily scale with longer lower shadow indicating support based buying at any minor dip. Index has given a range breakout on daily frame and gave the second highest ever close. Now it has to continue to hold above 18666 zones to witness an up move towards 18800 and 18888 zones while on the downside support exists at 18636 and 18580 zones.
· Bank Nifty Technical Levels – Bank Nifty relatively underperformed the broader market and remained consolidative in narrow range of 200 points. Now it has to continue to hold above 44144 zones for an up move towards 44500 then 44750 zones while on the downside support exists at 44044 and 43750 zones.
· Actionable BUY – Tata Steel, Olectra, ITI, Heramba Industries, Sona Comstar, Tata Motor
· Brokers Radar – Morgan Stanley on Oil marketing companies - HPCL TGT at 249, BPCL TGT at 425 and IOC TGT at 111. Morgan Stanley TGT on Zomato at 85.
· Events –RBI Credit policy, Nifty and Bank Nifty weekly expiry. IKIO IPO subscribed 6.8 times in DAY-3, NIIT Ltd de-merger
· Corporate Action - Tata Power Rs2.00, Uniparts India Rs6, Seshasayee Paper - AGM and ex-dividend Rs6
· Global Data – Consumer Credit, Initial Jobless Claims and Household data (US). Housing Price Index (UK). Industrial Production (Germany). Eurozone GDP and Japan GDP data.
· Market Summary – Thyssenkrupp Bids For $5.2bn Indian Submarine Contract with Mazagoan Dock. Tesla sets up for India entry for electric vehicles, Monsoon Rains May Start in 48 Hours, Cabinet okays $11 billion revival plan for state-owned BSNL, Monsoon Rains May Start in 48 Hours, Founder Firm Buys $17.8M Worth of Adani Ports Shares, HCL Technologies launches advanced testing facility for 5G Infrastructure.
· Interest sensitive sectors to be focus ahead of RBI Policy today - expected time 10am– Bank, auto and real estate stocks will be focus ahead of the Monetary Policy Committee decision on policy repo rate. MPC is likely to continue its status quo on the key lending rate at its second meeting in the new fiscal, amidst easing inflation and resilient growth. Expectation that the RBI to keep unchanged interest rate and may hike GDP growth forecast after a strong quarterly GDP reported during the month of May.
· Aether Industries – One of India's leading speciality / fine chemical manufacturer and preferred provider of Contract Research and Manufacturing Services, has today signed a Letter of Intent (LoI) with one of the top 3 leading global Oil Field Services companies based in USA towards the finalization of a strategic supplier and contract manufacturing partnership – Positive
· Mazagoan Dock - European defense manufacturer Thyssenkrupp Marine Systems and India’s Mazagon Dock Shipbuilders Ltd are set to construct submarines for India worth nearly Rs48000cr, signaling the country’s growing importance as ties between China and Russia deepen. – positive
· Stove Kraft: Chief Financial Officer Balaji A S has resigned from the company citing personal reasons. The company is in the process of hiring a professional for the position of chief financial officer – Avoid.
· Tech Mahindra – LIC Insurance Corp. has picked an additional stake in Tech Mahindra Ltd. at a time when the software services firm is staring at stagnant growth.The state-run insurer increased its stake in India’s fifth-largest IT services firm to 8.89% from 6.87% earlier at an average share price of Rs 1,050.77 – Positive
· Tata Elxsi - Company expands its automotive and smart mobility focus in North America with an Innovation Hub and nearshore engineering centre in Troy, working with some of the leading OEMs, suppliers, and automotive ecosystems in the region.- positive
· Adani Ports Shares - Resurgent Trade and Investment, a Mauritius-based investment fund related to the Adani Group’s founders, bought 2 million shares of Adani Ports on June 6, according to data from the BSE. The value of the shares bought was disclosed as Rs147cr or $17.8mn
· Monsoon update - Monsoon rains will likely start in 48 hours after a severe storm delayed the weather event vital for the economy. Conditions are becoming favorable for the onset of monsoon over Kerala –IMD said .- Expects positive FMCG (HUL, Dabur India, Tata Consumer), auto (Herpo Motocorp, TVS Motor, Tata Motor, Maruti) and NBFC (M&M Finance)
· HCL Technologies– Company announced the launch of advanced testing facility lab in Chennai for developing 5G infrastructure. The lab is currently equipped to test 5G telecom antennas for frequency bands up to 7 GHz - positive
· KPI Green Energy - Company recieves LOI for 40 MW hybrid power project from Anupam Rasayan India. The hybrid project has 21.50 MW wind and 18.50 MW solar capacity
· Venus Remedies – Company receives Ukrainian GMP approval for Carlapenem and Oncology production facilities in Baddi. Company is looking to expand in other EU markets after Ukrainian GMP approval – positive
· Persistent Systems - Company is strengthening its relationship with Amazon Web Services (AWS) and becoming a collaborator for the latest Generative AI services from AWS. As part of its goal to drive developer productivity. – Positive
· Nelco – Company announced its investment in Piscis Networks Pvt an OEM and one of the pioneers in providing Software Defined Wide Area Network that improves network performance and reliability. This investment is an important step for Nelco to expand its service portfolio and elevate its position as an integrated network solution provider. This also reinforces Nelco's commitment to deliver comprehensive and innovative satellite communication solutions to its customers. – Positive
· Infosys – Company announced a new Proximity Centre in Oslo, Norway as part of its continued expansion plan in the Nordics. The new state of the art centre will enable Infosys to attract, re-skill, and upskill local talent to work on global opportunities through next-gen technologies like cloud, AI, IoT, 5G, and software engineering. – positive
· Wardwizard Innovations - Leading manufacturers of electric vehicles under the brand name "Joy e-bike', announced during this period, the company has successfully sold 993 units of electric two and three-wheelers.- positive
· Aurionpro - Company launched its first homegrown EMV Card Type Payment terminal (ECR-one) at the UITP Global Public Transport Summit, the world's leading conference and exhibition, being held in Barcelona, where public transport professionals converge to exchange ideas, foster innovation, and establish valuable connections. – positive
· Maruti Suzuki – Company announces the launch of its highly anticipated off-roader Jimny at a starting price of Rs1,274,000. The Jimny will be available for deliveries starting today across all NEXA showrooms in the country. - positive
· R Systems International - Company acquires Pune-based product engineering company Velotio Technologies for Rs 297 crore.- Positive
· Wabag bags Rs 420 crore water treatment plant contract from CIDCO for 270 MLD capacity at Raigad. The plant will pump the treated water to the Vihal reservoir for further distribution. – positive
· Focus on telecom stock as Cabinet okays $11 billion revival plan for state-owned BSNL - Cabinet has approved a revival package of 890.47 billion rupees ($10.79 billion) for state telecom operator Bharat Sanchar Nigam Ltd (BSNL) – expects positive for ITI, HFCL
· Focus on Major EV Supplier - Tesla Sets Up For India Entry: - Tesla Inc, under the leadership of its CEO Elon Musk, has reportedly agreed in principle to the Indian government’s proposal to not just assemble its electric vehicles in India, but also to establish a local vendor base. The government has requested a roadmap from Tesla outlining the timeframe for establishing a local supply chain, expecting a response within three to six months.- Expects positive for long term – Bharat Forge, Sandhar Tech, Kabra Extrusion, Fiem Industries, Sona Somstar and Amara Raja Batteries .
· China to Review Anti-Dumping Duties on Chemical From India - The Ministry of Commerce will review anti-dumping duties on meta phenoxy benzaldehyde imported from India from June 8, according to a statement from the ministry. Existing anti-dumping measures will continue to be implemented during the review, which will last as long as one year - Expects positive for Heranba as the company is a major player to produce phenoxy benzaldehyde.
· Jindal Poly Films has entered into an agreement to acquire the 100% shareholding of JPF Netherlands Investment B.V. a Netherlands based entity, which is engaged into the business of packaging films business through its three operational wholly owned subsidiaries based out of France, Italy, and United Kingdom. – positive
· Zydus Life - Company has received final approval from the USFDA for Tadalafil Tablets USP, 20 mg - positive
· Lemon Tree Hotels – Company has signed a License Agreement for a 60 room property in Rajamundry, Andhra Pradesh under the Company's brand "Lemon Tree Hotel". – positive
· Sula Vineyards – Company announced the signing on of a new CFO, and the launch of three new luxury villas at their iconic Beyond resort in Nasik. – positive
· Wipro launched a managed private 5G-as-a-Service solution in partnership with Cisco . The new offering enables enterprise customers to achieve better business outcomes through the seamless integration of private 5G with their existing LAN/WAN/Cloud infrastructure. - positive
· Datamatics – Company announced that it has been appraised at Level 5, the highest maturity level of the Capability Maturity Model Integration (CMMI) for Software Development and Business Process Management (BPM) Services. - positive
· Tata Elxsi – Company has partnered with the prestigious Indian Space Research Organization (ISRO) to enable the upcoming Gaganyaan Mission
· Loyal Equipments – Company wins Rs11.36cr of work order from Numaligarh Refinery – Positive
· K&R Rail Engineering – Company has signed the Memorandum of Understanding (MOU) on 06th June, 2023 with Bhalaji Toll Road Private Limited with the intention of carrying out the services in the infrastructure segment of Toll Management, Construction and Maintenance of Highways and allied infrastructure facilities as per the Contract, for Operation and maintenance of roads and highways under the infrastructure sector.- positive
· Titagarh Wagons – Company’s board meeting on 10th June for fund raising plan - Positive
Derivatives update
*Derivatives update*
Good morning
Derivatives update for Thursday, 8th June 2023.
India VIX was up by 0.55% from 11.38 to 11.44 levels. Volatility sunk below 10 zones during the day but finally closed a tad bit higher but overall comforted the bull for the fresh leg of rally in the index.
Nifty *Put/Call Ratio* (OI) increased from 1.01 to 1.38 level.
On option front, weekly maximum Call OI is at 18800 then 18700 strike while maximum Put OI is at 18600 then 18500 strike. Call writing is seen at 18850 then 18900 strike while Put writing is seen at 18700 then 18650 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.*
For weekly Bank Nifty, Maximum Put OI is at 44000 then 44200 strike and maximum Call OI is placed at 44500 then 44300 strike. We have seen Call writing 44500 and Put writing is witnessed at 44300 strike.
Bank Nifty Put Call Ratio decreased from 0.97 to 0.95. Implied volatility rose from 12.6 to 12.7 levels.
Bank Nifty (CMP 44,275.30)
Data setup for Bank Nifty suggests a trading range in between *43750/44044 to 44500/44750 zones.*
Looking ahead at the FII’s derivatives activity, there was long built up in index futures, call buying & put selling in index options and long built up in stock futures.
In the cash market, FIIs were net buyers to the tune of 1383 crores while DII’s were net buyers worth 392 crores. FIIs Index Long Short Ratio increased to 49.51%.
Derivatives data and price set up suggests, Nifty has to continue to hold above 18666 zones to witness an up move towards 18800 and 18888 zones while on the downside support exists at 18636 and 18580 zones.
Bank Nifty has to continue to hold above 44144 zones for an up move towards 44500 then 44750 zones while on the downside support exists at 44044 and 43750 zones.
Thank you. Have a great trading day and expiry ahead..!!
Pre-Market Derivatives and Technical Set-up
*Pre-Market Derivatives and Technical Set-up*
◆ Nifty index opened gap up by 66 points near key level of 18666 marks and kept moving in the northward direction throughout the day. It held on to its higher zones with some consolidation in the first half of the session followed by a sharp rally in the next half of the day. It touched intraday high of 18738 zones and closed strongly near its day’s high with gains of around 130 points. It formed a Bullish candle on daily scale with longer lower shadow indicating support based buying at any minor dip. Index has given a range breakout on daily frame and gave the second highest ever close
◆ Now it has to continue to hold above 18666 zones to witness an up move towards 18800 and 18888 zones while on the downside support exists at 18636 and 18580 zones
◆ India VIX was up by 0.55% from 11.38 to 11.44 levels. Volatility sunk below 10 zones during the day but finally closed a tad bit higher but overall comforted the bull for the fresh leg of rally in the index
◆ On option front, weekly maximum Call OI is at 18800 then 18700 strike while maximum Put OI is at 18600 then 18500 strike. Call writing is seen at 18850 then 18900 strike while Put writing is seen at 18700 then 18650 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 opened on a positive note but failed to move above 44350 zones and gradually drifted towards its crucial 44144 level in the first half of the session. However some recovery was seen from lower levels in the last hour of the session and it formed a small bodied candle on daily scale with long lower shadow. It relatively underperformed the broader market and remained consolidative in narrow range of 200 points
◆ Now it has to continue to hold above 44144 zones for an up move towards 44500 then 44750 zones while on the downside support exists at 44044 and 43750 zones
◆ Bullish setup in Hindpetro, Glenmark, Canfin Homes, UBL, Tataconsum, Britannia, BPCL, Nestleind, Piind, Jswsteel, Tatacomm, Tatasteel, Tatamotors, HAL, ABB, Heromotoco, Powergrid, IOC, LT, Siemens, Cholafin, Apollo Hospital, Escorts, IRCTC, Bata India and SRF
◆ Bearish setup in Ibulhsgfin and Zydus Life
Wednesday, June 7, 2023
FII and DII data
FII and DII data Cash segment 7th june
FII net buy ₹ 1383 cr
DII net buy ₹393 cr
2day of time FII Buying in June month,
Both on Buying side today and hence ended in green
RBI policy due on Thursday
RBI policy due on Thursday and may trigger high volatility in bank nifty.
TRADING RANGE.
Nifty Future - 13750-13600
Bank Nifty Future - 44560-44000
Market Indication
Market Indication:
Global: FLAT to POSITIVE
NIFTY: FLAT to POSITIVE
BANKNIFTY: FLAT to POSITIVE
BULK Deals:Ceinsys Tech, Gravita India etc.
Stocks In F&O Ban Period: Indiabulls Housing Finance, India Cements, and Manappuram Finance
Results Today: Nil
SGX NIFTY: (Positive)
18705 +26.50 +0.14%
News and Impact
News and Impact
· Expects market to open on a positive note on account of rally in the global market while investors awaited inflation data and the Federal Reserve's policy meeting to be announce next week. Hope of US Fed and RBI to keep unchanged interest rate amid expectation of China to announce stimulus package will be positive for the market sentiment. US S&P 500 Index closed its highest level in 10 months and the Nasdaq Composite finished at a 14-month high, as investors wait for May inflation data due next week, just ahead of the Federal Reserve's June. US Mid-cap index major, Russel 2000 Index climbed up by 2.5% yesterday. Expectations that the US Fed will pause its monetary tightening at least temporarily. As a result, US Vix declined by 5% to close at below 14. Asian markets are witnessing mixed bag and SGX Nifty is up quarter percent. In the domestic front, expectation that the RBI may keep unchanged interest rate on account of stable domestic inflation. Positive factor that the FIIs were net buyers nearly Rs400cr yesterday after a net sellers in the last three trading sessions. Expects stock specific action in the market and traders focus on mid-cap and small cap counters. Focus on interest sensitive sectors like auto, financials and real estate stocks on ahead of RBI credit policy to be announce tomorrow . Expects rally to continue on defense stocks.
· US Market –U.S. stocks marginally gain on Tuesday as investors wait for May inflation data due next week just ahead of the Federal Reserve's policy meeting now that the federal debt ceiling issue has been resolved. US S&P 500 Index closed its highest level in 10 months and the Nasdaq Composite finished at a 14-month high
· Global market summary – Both US 2 years and 10-year bond surged by 1% to 2-week high ahead of US policy outcome next week. US Vix slipped 5% to close at below 14.
· Asian Market – Asian stocks are witnessing mixed bag today, with hopes for stimulus in China, a positive sign in geopolitics and hints of more broad-based strength in US shares bolstering sentiment. Benchmark indexes were higher at the open in South, Korea, Taiwan and Australia while Japan Index marginally decline.
· European Market – European stocks rose on Tuesday, boosted by strength in health care stocks, while chipmakers led the tech sector lower after a glum outlook from Taiwan Semiconductor Manufacturing Co. UK, Germany and France Index gained nearly quarter percent each.
· Oil – Brent Crude gained 1% to above $76/bbl after the news of fall in US inventory. The American Petroleum Institute (API) on Tuesday reported a decrease of 1.71 million barrels of crude oil in U.S. inventories for the week ending June 2.
· Gold – Gold futures rose 1% to $1965/ounce as investors assessed the outlook for interest rates ahead of next week's meeting of Federal Reserve policy
· Previous Day market Update –. Equity benchmark index recovered from lows but ended flat after a 2-day rally as a slide in IT stocks overshadowed the gains in auto, cement, real estate and private bank stocks amid hopes of a rate hike pause by the US Federal Reserve and ahead of RBI credit policy to be announce in the next couple of days. Sensex gained 5 points or 0.01% to settle at 62,793 while touched intra-day low of 62554. Nifty rose 5 points or 0.03% to end at 18,599 while touched intra-day low of 18532. Global markets were mixed today after a report that showed growth in service industries is slowing stoked concern the US economy is weakening. Ultratech, Maruti, Divi’s Lab, Kotak Bank and Grasim were major gainers while TCS, Tech Mahindra, HDFC twins and Infosys were among the major losers Nifty stocks. Nifty auto Index climbed up by 1% while Nifty it Index slipped 2%. small- and mid-sized companies extended their record runs as investors looked to rotate allocations following the end of the earnings season. FIIs were net buyers Rs386cr while DIIs were net sellers Rs489cr yesterday.
· Nifty Technical Levels – Nifty formed a Doji sort of candle on daily scale with longer lower shadow indicating support based buying on declines. Now it has to continue to hold above 18580 zones to witness an up move towards 18666 and 18750 zones while on the downside support exists at 18480 and 18442 zones.
· Bank Nifty Technical Levels – Bank Nifty formed a Doji sort of candle on daily scale as buying interest was seen at lower zones. Overall it remained consolidative in narrow range of 200 points as selective private banks continue to hold the Index while few public banks remained lacklustre . Now it has to continue to hold above 44044 for an up move towards 44500 then 44750 zones while on the downside support exists at 44000 and 43750 zones.
· Actionable BUY – HAL, Mazagoan Dock, Paras Defense, GMR Infra
· Brokers Radar – ONGC TGT by Goldman at 160. Goldman Sachs TGT on Reliance Industries at 2890 and Nomura TGT at 2850. Eicher Motor TGT by Morgan Stanley at 3533 and Citi TGT at 4800. Kotak Bank TGT by Morgan Stanley at 2215. ITC TGT by JP Morgan at 475.
· Events – Final day of MPC meeting on of ahead of RBI Credit policy to be announce tomorrow, IKIO IPO subscribed by 1.5 time. Australia and India test champion final at London. Cabinet and CCEA meet
· Corporate Action - Tata Power Rs2.00, Uniparts India Rs6, Seshasayee Paper - AGM and ex-dividend Rs6
· Global Data – Mortgage Application and Trade Balance (US). Trade Balance and Current account balance (France).
· Market Summary – Bajaj Finserv enters mutual fund business, NSE changes Nifty Bank F&O expiry day to Friday, Aditya Birla to Invest $605M on Branded Jewelry Retail Foray, NTPC Declares Second Part of Solar Power Project in Gujarat, Bharti Airtel Bags Mandate to Power Indian Government's, Germany May Build India Submarines - Mazagon Dock likely to jointly bid for an estimated $5.2bn, NHPC Signs Accord for 7.35GW Clean Energy Projects
· Mazagoan Dock - Germany and India are closing in on a deal to build diesel submarines. Thyssenkrupp AG’s marine arm and India’s Mazagon Dock are likely to jointly bid for an estimated $5.2bn project to build six submarines for the Indian navy, according to people with knowledge of the matter. The preliminary agreement or memorandum of understanding will be signed in the presence of Defense Minister Boris Pistorius who arrived in New Delhi Tuesday for a two-day visit, German and Indian officials said.
· GMR Infra - GMR Group on 6 June announced divestment of an 8,18,000 sqft warehouse facility located at Hyderabad's Rajiv Gandhi International Airport.- positive
· Bank of Maharashtra – Company’s QIP price settelted at Rs28.50 worth Rs1000cr (CMP Rs30) - positive
· Bajaj Finserv – Company is entering the highly competitive mutual funds business and has plans to make it big over the next few years, drawing in on the 'late mover advantage'. To begin with, the company is launching three schemes in the fixed income, liquid and money market products by the end of the month – positive
· Torrent Power – Company signed a MoUs with the government of Maharashtra for development of pumped hydro storage projects. A statement by Torrent Power said that the projects would entail an investment of about ₹27,000 crore – long term positive
· NHPC has signed a MoU with the Maharashtra state in western India for building 7,350MW of clean power projects. The projects include solar, wind, hybrid and pumped hydro energy storage capacity - Positive
· Aditya Birla to Invest $605M on Branded Jewelry Retail Foray - Aditya Birla Group is foraying into the branded jewelry retail business in India, the world’s second- biggest bullion market, with an investment of around Rs5000cr ($605mn).
· NTPC Declares Second Part of Solar Power Project in Gujarat - NTPC has declared the second part capacity of 10 MW of its 20 MW Gandhar Solar PV Project in Gujarat as commercially operational. The first portion capacity of 10 MW was declared commercially operational in August 2022. With this development, the standalone installed and commercial capacity of NTPC increased to 56,378 MW – positive
· Man Industries – Company to consider stock split and bonus on June 9 board meeting
· Government has earned Rs4185cr through the sale of a 3% stake in state-owned miner Coal India. With the divestment through offer-for-sale, the holding of the government in Coal India has come down to 63.13%.
· Thermax -An arbitration panel ruled against the turbine and boiler maker in a matter related to breakdown of two gas turbo generators at one of its customers. The award would have an estimated financial impact of about Rs 250 crore. – Stock decline 3% yesterday …We are long term positive on the stock
· TCS - Company launches data exchange and marketplace platform Dexam on Google Cloud. Dexam is a software-as-a-service product that enables data exchange across enterprises and ecosystems. - positive
· Man Infra (MICL)– Company announces luxury residential project In Ghatkopar, Mumbai. The project has an estimated revenue potential of Rs 1,200 crore and it is expected to be completed in four years. – positive
· L&T – Company wins significant category order worth Rs 1,000 to Rs2,500cr. The EPC contract entails construction of the tallest building in India with a height of 300.5 meters. - positive
· IndiGo: IndiGo aims to carry 100 million passengers in the year ending March 2024, as the carrier adds more domestic and international routes, its CEO Pieter Elbers said. – positive
· Hindustan Unilever: The fast-moving consumer goods player Hindustan Unilever (HUL), in an interview to a TV channel, said that it will soon cut prices of soaps, detergents, and shampoos over the next few weeks.
· Indoco Remedies – Company a fully integrated, research based pharma company with a strong global presence has acquired 85% of equity stake of the US based FPP Holding Company, LLC ("FPP Holding") for USD 4 Million from Contract Pharmacal Corp. ("CPC"). – positive
· NSE changes Nifty Bank F&O expiry day to Friday - The National Stock Exchange of India has decided to change the Bank Nifty Futures and Options (F&O) expiry day to Friday from Thursday. The new rule will come into effect from July 14.
· Bharti Airtel Bags Mandate to Power Indian Government's - Bharti Airtel secured the cloud and content delivery network mandate from the Digital India for the Digital Infrastructure for Knowledge Sharing platform, India’s national platform for open education digital content. – positive.
· Advait Infratech – Company has received an order for OPGW installation work on 20th May, 2023 worth Rs. 30.27 Crores. – positive
· Valiant Organics- Company's subsidiary Valiant Laboratories Ltd files DRHP with SEBI for IPO – positive
· G R Infraprojects: Company’s unit GR Hasapur Badadal Highway executed concession agreement to construct six lane Surat-Nashik-Ahmednagar-Solapur- Maharashtra/Karnataka border greenfield stretch on hybrid annuity mode at a bid project cost of Rs 872.17 crore. – positive
· Hardwyn India: Company allots 8.72 crore equity shares as fully paid bonus shares to existing shareholders of the company in 1:3 ratio. - Positive
· Ugro Capital: The Board has allotted 2,500 Non-Convertible Debentures with a face value of Rs 1 lakh each through private placement. - positive
Derivatives update
*Derivatives update*
Derivatives update for Wednesday, 7th June 2023.
India VIX was up by 2.15% from 11.12 to 11.38 levels. Volatility negated its lower highs formation on daily frame but overall lower levels is keeping the index in a smaller range.
Nifty *Put/Call Ratio* (OI) increased from 1 to 1.01 level.
On option front, weekly maximum Call OI is at 18600 then 18800 strike while maximum Put OI is at 18500 then 18600 strike. Call writing is seen at 18750 then 18800 strike while Put writing is seen at 18550 then 18400 strike.
*Option data suggests a broader trading range in between 18300 to 18800 zones while an immediate trading range in between 18450 to 18700 zones.*
For weekly Bank Nifty, Maximum Put OI is at 44000 then 42000 strike and maximum Call OI is placed at 44200 then 45500 strike. We have seen Call writing 45500 with significant unwinding at 44000 and Put writing is witnessed at 44100 strike.
Bank Nifty Put Call Ratio increased from 0.87 to 0.97. Implied volatility fell from 12.8 to 12.6 levels.
Bank Nifty (CMP 44164.55)
Data setup for Bank Nifty suggests a trading range in between *43750/44000 to 44500/44750 zones.*
Looking ahead at the FII’s derivatives activity, there was long liquidation in index futures, position unwinding in index options and short built up in stock futures.
In the cash market, FIIs were net buyers to the tune of 386 crores while DII’s were net sellers worth 489 crores. FIIs Index Long Short Ratio decreased to 46.19%.
Derivatives data and price set up suggests, Nifty has to continue to hold above 18580 zones to witness an up move towards 18666 and 18750 zones while on the downside support exists at 18480 and 18442 zones.
Bank Nifty has to continue to hold above 44044 for an up move towards 44500 then 44750 zones while on the downside support exists at 44000 and 43750 zones.
Pre-Market Derivatives and Technical Set-up
*Pre-Market Derivatives and Technical Set-up*
◆ Nifty index opened positive but failed to hold above 18620 zones and drifted lower for the first half of the session to touch 18530 zones. It recovered in the next half of the session and managed to close near 18600 with gains of around 5 points. It moved in a rather staggered way for most part of the day followed by a swift recovery in the last hour. It formed a Doji sort of candle on daily scale with longer lower shadow indicating support based buying on declines
◆ Now it has to continue to hold above 18580 zones to witness an up move towards 18666 and 18750 zones while on the downside support exists at 18480 and 18442 zones
◆ India VIX was up by 2.15% from 11.12 to 11.38 levels. Volatility negated its lower highs formation on daily frame but overall lower levels is keeping the index in a smaller range
◆ On option front, weekly maximum Call OI is at 18600 then 18800 strike while maximum Put OI is at 18500 then 18600 strike. Call writing is seen at 18750 then 18800 strike while Put writing is seen at 18550 then 18400 strike. Option data suggests a broader trading range in between 18300 to 18800 zones while an immediate trading range in between 18450 to 18700 zones
◆ Bank Nifty opened on a flattish note but failed to hold above 44200 and gradually drifted towards 44000 zones in the first half of the session. However some recovery seen from lower levels in the last hour of the session and it formed a Doji sort of candle on daily scale as buying interest was seen at lower zones. Overall it remained consolidative in narrow range of 200 points as selective private banks continue to hold the Index while few public banks remained lacklustre
◆ Now it has to continue to hold above 44044 for an up move towards 44500 then 44750 zones while on the downside support exists at 44000 and 43750 zones
◆ Bullish setup in Ambujacem, Oberoirlty, HAL, Ultracemco, ACC, Glenmark, TVS Motor, IDFC, BEL, Tatacomm, Axis Bank, Tatamotors, Maruti, Cumminsind, Grasim, M&M, Bajfinance and Deepakntr
◆ Bearish setup in IEX, Mphasis, Coforge, Voltas, LTTS, OFSS, INFY, Techm, TCS, ONGC and Hcltech
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