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Monday, June 12, 2023
Bank Nifty opened
Bank Nifty opened on a flattish note but extended its move towards 44200 zones in the initial hour. However it failed to hold 44144 and remained consolidative in a range of 250 points between 43950 to 44200 zones in the latter part of Friday.
Long liquidation was seen as OI was down (-0.72%) and Price was down (-0.07%). Last week on week (Thursday close to Thursday) OI change comes to 11.8% with price change by 0.5%
FIIs Long Short Ratio decreased to 46.09%
Bank Nifty Put Call Ratio remained unchanged 0.77
SGX Nifty June OI 196,440 contracts. (-1.05%)
SGX indicates a positive start and Dow closed positive.
*Important support level : 43500*
*Important resistance level : 44500*
*Broader trading range : 43500/43750 to 44250/44500 zones*
Derivatives update
*Derivatives update*
Good morning !!
Derivatives update for Monday, 12th June 2023.
India VIX was down by 1.22% from 11.25 to 11.12 levels. Volatility has been sinking from the last four weeks and has dried up which is creating swings within a smaller range in the index.
Nifty *Put/Call Ratio* (OI) decreased from 1.06 to 0.84 level.
On option front, weekly maximum Call OI is at 18700 then 18800 strike while maximum Put OI is at 18600 then 18500 strike. Call writing is seen at 18600 then 18700 strike while Put writing is seen at 18600 then 18500 strike.
*Option data suggests a broader trading range in between 18400 to 18900 zones while an immediate trading range in between 18450 to 18750 zones.*
For weekly Bank Nifty, Maximum Put OI is at 44000 then 42500 strike and maximum Call OI is placed at 44000 then 46000 strike. We have seen Call writing 44000 and Put writing is witnessed at 42500 strike as well.
Bank Nifty Put Call Ratio remained unchanged at 0.77. Implied volatility fell from 13.3 to 12.2 levels.
Bank Nifty (CMP 43,989)
Data setup for Bank Nifty suggests a trading range in between *43500/43750 to 44250/44500 zones.*
Looking ahead at the FII’s derivatives activity, there was long liquidation in index futures, call selling & put buying in index options and short built up in stock futures.
In the cash market, FIIs were net sellers to the tune of 309 crores while DII’s were net buyers worth 1246 crores. FIIs Index Long Short Ratio decreased to 46.09%.
Derivatives data and price set up suggests, till Nifty holds below 18676, some weakness could be seen towards 18442 and 18350 zones while hurdles are placed at 18676 and 18777 zones.
Bank Nifty has cross and hold above 44044 zones for an up move towards 44250 then 44500 zones while on the downside support is seen at 43750 then 43500 levels.
Thank you. Have a great trading day and week ahead..!!
SGX Nifty: 18670
SGX Nifty: 18670
Advisory: Market Pre-opening
Advisory: Support / Resistance : Intraday
Nifty Futures :
S1 - 18570 S2 - 18480
R1 - 18735 R2 - 18830
BankNifty Futures :
S1 - 43900 S2 - 43500
R1 - 44350 R2 - 44750
Nifty Highest Open Interest (15th Jun Weekly expiry) : Call:18700 / Put : 18000
Short Term Cash
*Short Term Cash*:
We recommend you to Buy CHEMPLASTS @ 478.00-480.00 SL 457 TGT 516
News and Impact
News and Impact
· Expects market to open on a positive note on account of strong opening in the Asian markets, US market hit fresh 2023 high and hope of US Fed to pause hike in interest rate will boost the market sentiment. SGX Nifty is up nearly half percent of 75 points. Expects range-bound market in the next few sessions on ahead of key US Federal Reserve interest rate decision to be announce on Wednesday and Inflation data to be announce tomorrow (Tuesday). Moreover, domestic CPI (Inflation) and IIP data to be release in the post market today. Market likely to be in wait and watch mode until the important economy data outcome this week. ECB and Bank of Japan policy meeting, China IIP and Housing data to be release this week. On Friday, US market gained upto half percent ahead of the US Federal Reserve policy meeting to be announce this next week. US Dollar Index fell to 1-month low while US 10-Year and 2-year bond Yield spiked to 1-month high ahead of US Fed commentary and interest rate outcome. Positive factor the India Vix fell to record low at below 12, indicating a stable domestic market. Better than expected PMI data, stable inflation, both DIIs and FIIs buying interest, hope of good monoon and favourable government policy will be positive for the market sentiment. Expects rally on mid-cap and small cap stocks to continue – focus on tyre, capital goods, cement and defence stocks due to impressive quarterly results, strong order book. Metal stocks may be positive on account of increased LME price and hope of rising China demand after the government announced stimulus. Auto stocks may be positive after announced strong monthly sales data.
· US Market –Wall Street’s benchmark S&P 500 index inched higher on Friday in subdued trading, as traders largely stayed on the sidelines ahead of the US Federal Reserve policy meeting next week. Both Dow Jones and Nasdaq Composite gained 0.2% and 0.5% respectively.
· Global market summary – Both Nasdaq and S&P 500 hit fresh 2023 high. US 2-Year and 10-year bond yield surged to 1-month high. US Dollar Index fell to 1-month low
· Asian Market – Asian stocks and US equity futures made small gains while major currencies traded in narrow ranges in cautious trading early Monday as investors await interest rate decisions this week from the US, Europe, China and Japan. Japan, Australia and Taiwan Index gained half percent each.
· European Market - European markets close in the red Friday ahead of potential European Central Bank and US Federal Reserve rate hikes next week.. UK Index slipped 0.5% while Germany and France Index declined gained 0.2% each
· Oil – Oil declined 2% to below $75/bbl as demand concerns continue to dominate market sentiment even after Saudi Arabia’s unilateral pledge to cut production. Goldman Sachs Group Inc. cut its price forecast again.(media report)
· Gold –Gold edged marginally lower at $1956/ounce before a Federal Reserve meeting this week at which policymakers are expected to pause interest-rate increases to take stock of banking sector strains.
· Previous Day market Update –.Equity benchmark index fell nearly half percent for the second consecutive days as traders booked profit ahead of US Fed rate decision to be announce next week. Investors sold at higher level after witness a rally of over 7% in the last two months. while the RBI on Thursday extended its rate pause but underlined its inflation focus, denting hopes of any policy easing soon. Select mid-cap, stock specific action and cement stocks recorded smart gain. Among the global markets, Asian markets recorded smart gained while European markets are witnessing mixed bag as investors look toward key upcoming central bank decisions. A jump in US jobless claims to the highest since October 2021 helped to boost bets the Federal Reserve may hold rates at its meeting next week. Sensex ended 223 points or 0.40% lower to settle at 60,625 and Nifty dropped 71 points or 0.40% to end at 18,563. Among Nifty pack, Tata Steel, SBI, HUL, HCL Tech, Infosys, and Asian Paints closed with losses, while IndusInd Bank, Axis Bank, Power Grid, L&T, UltraTech Cement, and Tata Motors closed with gains. Nifty PSU Bank, IT and FMCG Index declined by 1% each. FIIs were net sellers Rs309cr while DIIs were net buyers Rs1245cr previous day.
· Nifty Technical Levels – Nifty formed a small bodied Bearish candle on weekly frame with long upper shadow but has been making higher highs from the last eleven weeks. Now till it holds below 18676, some weakness could be seen towards 18442 and 18350 zones while hurdles are placed at 18676 and 18777 zones.
· Bank Nifty Technical Levels – Bank Nifty formed a small bodied candle on daily scale but holding well above its crucial 20DEMA and closed near 44000 marks. On weekly scale, it has formed a small bodied candle as well but structure of higher highs - higher lows is intact from the last eleven weeks. Now it has cross and hold above 44044 zones for an up move towards 44250 then 44500 zones while on the downside support is seen at 43750 then 43500 levels.
· Actionable BUY – Sona Com, BHEL, Tata Motor, HAL, Mazagoan Dock,
· Brokers Radar – Dr Reddy TGT by Morgan Stanley at 5171 and Morgan Stanley TGT on Zydus Life at 646. Metropolis TGT by Morgan Stanley at 350, Citi TGT on Tata Motor at 635. Macquarie TGT on Tata Motor at 624. UPL TGT by HSBC at 850, PI Industries TGT by HSBC at 4000. Nomura TGT on JSW Steel at 605. KEC International TGT Nomura at 598.
· Events – CPI and IIP data. Go-Fashion block deal. GHCL de-merger unit its textiles division to be listed today.
· Corporate Action - Apcotex Industries AGM and Dividend Rs3.50, ICICI Lombard Rs5.50, Cyient Rs16. Reliance Industrial Infra Rs5.50, Tata Investment – AGM and ex-dividend Rs48, ION Exchange stock split from Rs10 to Re1
· Global Data – Monthly Budget (US), Economic Survey (UK).
· Market Summary – VLCC Health Care to acquire D2C men's grooming brand Ustraa for Rs 61 crore, Cochin Shipyard bags order. General Electric Nears Jet Engine Co-Manufacturing Deal with HAL, Mahanagar Gas to set up compressed biogas plant in Mumbai, SBI board approves raising Rs 50,000 crore via bonds, Indoco’s Baddi Facility Receives EUGMP Certification.
· Go Fashion: According to reports, Sequoia Capital plans to sell its stake in Go Fashion, the parent company of Indian clothing brand Go Colors, through a block deal. The stake being sold amounts to up to 10.18%. The report revealed that the floor price for this stake sale is set at ₹1,135 per share, representing a 5% discount compared to the last closing price – Buying opportunity.
· InfoEdge - VLCC Health Care will acquire Happily Unmarried Marketing which runs the D2C men’s grooming brand Ustraa via a mix of cash and share swap for Rs 61 crore – Positive for InfoEdge due to Happily Unmarried is a subsidiary on InfosEdge.
· Mahanagar Gas - Company will set up a compressed biogas (CBG) plant in Mumbai in collaboration with the Brihanmumbai Municipal Corporation (BMC). The CBG plant, with a capacity to process up to 1,000 tpd – positive
· HAL - General Electric Co is reportedly in final talks with Hindustan Aeronautics regarding a partnership for co-manufacturing jet engines in India. The deal is expected to be inked either before or during a visit by Indian Prime Minister Narendra Modi to Washington, D.C., later this
· month, CNBC reported. – Positive
· TVS Motors: TVS Credit Services Limited, the captive financing arm of TVS Motor Company, on Friday, said it has raised Rs. 480 crores from Premji Invest, a prominent investment firm. Through a combination of primary and secondary investments, Premji Invest will acquire a 9.7% equity stake in TVS Credit for Rs. 737 crores, the company said - positive
· Allcargo Logistics: Company has completed the acquisition of 1.50 lakh shares, or 30 per cent stake, in Gati-Kintetsu Express (GKEPL) for ₹406.71 crore Allcargo’s subsidiary, Gati already holds 70% stake in GKEPL.- positive
· SBI: Company said its board has approved a proposal to raise up to ₹50,000 crore this fiscal year through various debt instruments. - positive
· KEI Industries – Credit Research firm India Ratings & Research retained its AA rating on Kei Industries'long-term bank facilities and A1+ rating on the electric wires company's short-term bank financing. The rating outlook was revised to positive from stable. – Positive
· Greenlam Industries – Company announced the opening of a new plant in Tindivanam, Tamil Nadu. The company has spent Rs 130 crore till commencement of the commercial production.- positive
· Macrotech Developers – Rating agency ICRA upgraded its rating on the company from 'stable' to 'positive'. The credit rating agency increased its rating on the back of strong operating performance in FY23 led by healthy growth in collections and cash flows from operations – positive.
· Cochin Shipyard - The company has been declared as L1 by the Indian Navy for MR/Mid Life Upgrade of an Indian Naval Ship worth Rs300cr - positive
· Maharashtra Seamless- Company has made voluntary prepayment of outstanding long term loan of Rs. 234 crore approx. (~ USD 28.38 mn) – positive
· Vedanta - The Government of Goa vide its 'Notice Inviting Tender' dated January 25, 2023, had invited tenders to participate in electronic auction for grant of Mining Lease in respect of iron ore mines in the State of Goa. The Company had submitted its bid in electronic auction for grant of Mining Lease.- wait for final outcome of Iron ore bids
· Titagarh Rail – Company approves preferential issue to Smallcap World Fund Inc worth Rs288.8cr on preferential basis at a price of Rs. 380 per share as against floor price of Rs. 347.68 per share – positive
· Websol Energy – Company eceives project funding from IREDA for term loan worth Rs179.20cr to commission a600 MWP Mono PERC bifacial solar cell manufacturing facility and a 550 MWP module manufacturing facility in the foreseeable future. – positive
· Zydus Lifesciences - Company has received final approval from the USFDA for Balsalazide Disodium Capsules USP. Balsalazide Disodium Capsules USP, 750 mg had annual sales of USD 29 mn in the United States (IQVIA MAT April 2023). – positive
· Avantel Limited - Company has signed a contract worth of Rs.54.38 Crores dated June 9, 2023 with Ministry of Defence, Coast Guard Headquarters, New Delhi. – positive
· IndiGo - For the first time ever, company expands across the Atlantic with new codeshare connections to the US – positive
· Premier Explosives – Company has received orders from Bharat Dynamics Limited for Supply of PI & P2 Motors of MRSAM worth Rs. 43.26 crores and from Larsen & Toubro Limited for Supply of PSOM-XL motors worth Rs. 13.94 crores.- Positive
· Karnataka Bank - Mr. Srikrishnan Hari Hara Sarma assumes charge as Managing Director & CEO of the company - positive
· Jeevan Scientific Technology - The World Health Organization (WHO) has concluded that the inspection is closed successfully and has released the closure letter on 09th June, 2023 for the WHO inspection of the company’s Bio-Analytical facility and Clinical Pharmacology Centre, Hyderabad - positive.
· IEX - Shares of Indian Energyn Exchange fell by 8% yesterday to a two-year low after Ministry of Power asked CERC to initiate the process of market coupling for power exchanges. It also asked Central Electricity Regulatory Commission to take suitable action for consultation and finalisation of a construct with multiple exchanges. The coupling of exchanges is expected to bring down the market share of Indian Energy
· SBI – Company received board approval to raise fund up to Rs 50,000 crore through debt instruments in the current financial year. The funds will be raised through private placement on the government's approval.
· Zydus Lifesciences – Company has started the phase 4 trial for Saroglitazar Magnesium effects on comorbid patients. Saroglitazar Magnesium is used to treat non-alcoholic fatty liver disease. – positive
· Five-Star Business Finance – Credit rating agency CareEdge Ratings increased its rating for the long-term bank facilities. The rating agency increased its rating for long term bank facilities of the company to AA-; Stable from the earlier rating of A+ Stable. Improvement in market capitalization levels, which stood at Rs 4,285 at the end of the previous fiscal year. Gross loan portfolio growth of 36.47% growth at Rs 6,915 crore, against the previous fiscal year end figure of Rs 5,067 crore - positive
· Dr. Reddy's Lab- Company has been given U.S. FDA approval for cyclophosphamide. The drug is used used as chemotherapy and to suppress the immune system in certain cases – positive
· Best Agrolife Ltd – Company has received the registrations for the indigenous manufacturing of the product Trifloxystrobin 10% + Difenoconazole 12.5% + Sulphur 3% Sc under section 9 (3) FIM from Central Insecticides Board & Registration Committee (CIBRC).
· KPI Green – Company received commissioning certificates from the Gujarat Energy Development Agency (GEDA) for one of its projects. Company received Commissioning Certificates from Gujarat Energy Development Agency (GEDA) for a 7.20 MW wind-solar hybrid power project – positive
· Maan Aluminum – Company approves issue of bonus issue in the ratio of 1:1 and approved splitting each share into two (from Rs10 to Rs5) – Avoid
· Hazoor Multi – company has received approval to start the construction of Samruddhi Expressway in Nasik for Rs 119.18 crore.- positive
· Indoco’s Baddi Facility Receives EUGMP Certification From Health Authority Of Germany - Company has received EU GMP certification from the Competent Health Authority of Germany for its manufacturing site situated at HB 211 Village Katha, Nalagarh, Solan, Baddi plant. The EU GMP certification issued by the German Health Authority (Berlin) confirms that the site complies with the Good Manufacturing Practice requirements as referred in the EC Directive.
– positive
· L&T Finance: Company’s aims to maintain a compound annual growth rate (CAGR) of over 25% predominantly by focusing on retail financing as a long-term strategy, a senior company official told news agency PTI on June 11. With the current growth rate, the retail portfolio of the group is estimated to reach ₹1,00,000 crore by fiscal 2025-26. L&T Group's non-bank financing vertical grew by 35% in FY23. In the current fiscal year, the company officials expect retail to reach 80% of the total loan book, two years ahead of the target under its goal. – positive
· Star Health and Allied Insurance Company: Company announced that its founder and director Venkatasamy Jagannathan has tendered his resignation from its Board with immediate effect. – Avoid.
· Container Corporation of India: After the ₹12,000 crore of disinvestment plan of Container Corporation of India (CONCOR) garnered the attention of global majors like Maersk, the process stands at status quo because of the concerns raised by the railway ministry, its parent organisation – positive.
Market Indication
Market Indication:
Global: FLAT to POSITIVE
NIFTY: FLAT to POSITIVE
BANKNIFTY: FLAT to POSITIVE
BULK Deals: Birla Corporation, CMS Info Systems etc.
Stocks In F&O Ban Period: Indian Energy Exchange and India Cements and Indiabulls Housing Finance
Results Today: Nil
SGX NIFTY: (Positive)
18680 +70.00 +0.38%
Securities in Ban
Securities in Ban For Trade Date 12 - JUNE -2023 - 1. IBULHSGFIN, 2.IEX, 3. INDIACEM (Source - nseindia.com)
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)
Key Events This Week
Key Events This Week:
1. May CPI Inflation data - Tuesday
2. May PPI Inflation data - Wednesday
3. June Fed meeting - Wednesday
4. Retail Sales data - Thursday
5. Initial Jobless Claims - Thursday
6. 2 Fed speakers Friday, blackout period ends
Volatility returns this week.???
Stocks in Action
Stocks in Action 12 June
SHALBY: Shalby Academy, the healthcare education division of Shalby Ltd, made its partnership with P P Savani University in Surat
Both organizations have signed an MOU to jointly offer a diverse range of Para Medical/Healthcare courses in South Gujarat
MOSCHIP TECHNOLOGIES: Approved allotment of 1.14 Crore Shares Rs 63.22/ Share aggregating Rs 74.69 Crores to the shareholders of Softnautics Inc for consideration other than cash towards part payment of the total consideration payable
VEDANTA: Declaration of Preferred Bidder of Iron Ore Mine (Block VII - Cudnem Mineral Block) by the Department of Mines & Geology, Goa in Electronic Auction of Iron Ore Mine
MAHARASHTRA SEAMLESS: Company has made voluntary prepayment of outstanding long term loan of Rs 234 crore approximately
KOTAK MAHINDRA BANK
Large Trade
CANADA PENSION PLAN INVESTMENT BOARD
SOLD 3,30,00,000 Shares @ Rs 1,855.64/ Share
JUPITER WAGONS: NCLT Kolkata Approves Company’s Resolution Plan To Acquire Controlling Stake Of Stone India Under Corporate Insolvency Resolution Process Of Insolvency and Bankruptcy Code 2016
INTERGLOBE AVIATION
Expands Codeshare Partnership With Turkish Airlines For United States
Announced New Codeshare Connections Via Istanbul To USA
Travellers From India Can Travel To New York, Boston, Chicago, & Washington, Effective June 15, 2023
TITAGARH WAGONS: FUND RAISING Raising of funds through issuance of upto 76,00,000 Equity Shares to SMALLCAP WORLD FUND On preferential basis at a price of Rs 380/share for an Aggregate amount of Rs 288 Crores
ITI: RATING DOWNGRADE Acuite Rating and Research Limited downgrades credit ratings of the company Driven by the deterioration in operating performance during FY'23, reflected in its declining scale of operations and cash losses resulting in stretched liquidity
BIRLA CORPORATION: LARGE TRADE SOCIETE GENERALE
BUY 399,321 Shares @ Rs 1188.51/ Share
AMBALAL SARABHAI ENTERPRISES: Subsidiary Asence Pharma commenced its new oncology and synthetic API plant in Vadodara Plant set up to meet all domestic and international regulatory standards and will manufacture niche molecules that have a global requirement
Sunday, June 11, 2023
Tata Motors' EV plan
📊 Here are some of the key points of Tata Motors' EV plan 📊
1️⃣ Launch 10 new EVs by 2026.
2️⃣ EVs to account for 25% of total sales by 2025.
3️⃣ Invest heavily in EV technology.
4️⃣ Develop own EV platform (Ziptron).
5️⃣ Work on developing new battery technologies.
6️⃣ Believe EVs will play a major role in the future of transportation.
📍Now Tata Group to set up Rs 13,000 crore lithium ion cell unit in Gujarat
Friday, June 9, 2023
Down From All Time High
*Down From All Time High*
Laurus Labs: -68%
IEX: -61%
IRCTC: -50%
Jubilant Foods: -47%
Deepak Fert: -46%
D Mart: -40%
Rajratan Wire: -40%
Deepak Nitrite: -31%
#DoYouKnow How Much They Gained in 2020-21
Laurus Labs: +965%
IEX: +340%
IRCTC: +350%
Jubilant Foods: +270%
Deepak Fert: +1050%
D Mart: +220%
Rajratan Wire: +1500%
Deepak Nitrite: +710%
Pre-Market Derivatives and Technical Set-up
*Pre-Market Derivatives and Technical Set-up*
◆ Nifty index opened flattish and moved in the positive direction but failed to hold above 18777 zones and drifted lower in the second half of the session. It broke its intraday support zones as a result of profit booking at higher zones and closed with losses of around 90 points. Some sort of pause could be seen at record levels but overall set up remains positive. It formed a Bearish candle and an outside Bar on daily scale
◆ Now it has to cross and hold above 18666 zones to witness an up move towards 18786 and 18888 zones while on the downside support exists at 18580 and 18530 zones
◆ India VIX was down by 1.60% from 11.44 to 11.25 levels. Volatility sunk to 10 zones during the day and comforted the bull at higher zone but was followed by a slight rise
◆ On option front, weekly maximum Call OI is at 18700 then 18800 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 18550 to 18800 zones
◆ Bank Nifty opened on a flattish note but managed to hold 44200 zones initially and gradually moved towards 44459 marks in the first half of the session. However it failed to hold 44444 marks and quickly drifted again towards 43900 zones in the latter part of the trading session. It formed a Bearish candle on daily scale as selling pressure was seen at higher zones however multiple supports are intact at lower zones and it closed near its crucial 20 DEMA levels
◆ Now it has to cross and hold above 44044 zones for an up move towards 44250 then 44500 zones while on the downside support is seen at 43750 then 43500 levels
◆ Bullish setup in Dixon, NTPC, Jswsteel, HAL, Powergrid, Indigo and LT
◆ Bearish setup in IEX, Indhotel, Kotak Bank, ABFRL, Mphasis, India Mart, Sunpharma and GNFC
Derivatives update
*Derivatives update*
Good morning !!
Derivatives update for Friday, 9th June 2023.
India VIX was down by 1.60% from 11.44 to 11.25 levels. Volatility sunk to 10 zones during the day and comforted the bull at higher zone but was followed by a slight rise.
Nifty *Put/Call Ratio* (OI) decreased from 1.38 to 1.06 level.
On option front, weekly maximum Call OI is at 18700 then 18800 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 18550 to 18800 zones.*
For weekly Bank Nifty, Maximum Put OI is at 44000 then 43500 strike and maximum Call OI is placed at 44000 then 44500 strike. We have seen Call writing 44000 and Put writing is witnessed at 44000 strike as well.
Bank Nifty Put Call Ratio decreased from 0.95 to 0.77. Implied volatility rose from 12.7 to 13.3 levels.
Bank Nifty (CMP 43,995.25)
Data setup for Bank Nifty suggests a trading range in between *43500/43750 to 44250/44500 zones.*
Looking ahead at the FII’s derivatives activity, there was short built up in index futures, position unwinding in index options and long liquidation in stock futures.
In the cash market, FIIs were net buyers to the tune of 212 crores while DII’s were net sellers worth 405 crores. FIIs Index Long Short Ratio decreased to 48.20%.
Derivatives data and price set up suggests, Nifty has to cross and hold above 18666 zones to witness an up move towards 18786 and 18888 zones while on the downside support exists at 18580 and 18530 zones.
Bank Nifty has to cross and hold above 44044 zones for an up move towards 44250 then 44500 zones while on the downside support is seen at 43750 then 43500 levels.
Thank you. Have a great trading day and weekend ahead..!!
News and Impact
News and Impact
· Expects market to open on a positive note after the RBI kept unchanged interest rate second time in a row and lower FY24 inflation projection, rally in the global markets and hope of US Fed to keep unchanged interest rate in the next policy meeting will be positive for the market sentiment. U.S. stocks ended upto 1% higher to close 10-month high, boosted by a rally in shares of big technology shares and fresh signs of a cooling US labor market (20-month low)in prompted traders to curb bets on further monetary tightening. As a result, US bond yield fell by 1%, dollar Index fell to below 104 and US Vix drop over 2% to below 14, indicating US Fed to pause hike in interest rate in the next policy meeting. Investors seemed to be in a wait-and-see mode ahead of next week's key inflation data and the Federal Reserve's policy meeting. Meanwhile, investors are reassessing the trajectory of the Federal Reserve's monetary policy after central banks in Canada and Australia unexpectedly raised interest rates this week. Back home, SGX Nifty is up quarter percent and US Future is witnessing mixed bag. Yesterday, Index declined half a percent on account of profit booking after the RBI announced its credit policy today. RBI kept unchanged interest rate at 6.5% but lower FY24 Inflation projection from 5.2% to 5.1%. Positive factor that the continued FIIs buying interest (Yesterday net buyers Rs212cr), better than expected PMI data and strong GST collection will be positive for the market sentiment. Expects stock specific action in the market and momentum expected to be mid and small cap counters. Traders will be focus for banks, defense and auto stocks. Traders focus on Sugar and Coffee stocks due to spiked in Sugar and Coffee price in the international market.
· US Market –Technology stocks drove a rally in US equities while bond yields and the dollar fell after data showing US jobless claims surged more than expected last week. Nasdaq Composite gained 1% while Dow Jones Index soared over half percent. US Vix (Volatility Index) declined 2% to below 14.
· Global market summary – US jobless claims to the highest since October 2021 shows that the labor market. US Dollar Index fell to below 104. Both US 10-Year and 2-year bond yield declined by 1% each. S&P 500 into a bull market with a gain of more than 20% from its October low.
· Asian Market – Equities in Japan, South Korea and Australia opened higher Friday after a rally in US technology stocks pushed the S&P 500 into a bull market with a gain of more than 20% from its October low. Japan Index gained over 1%.
· European Market - European equities were steady as gains in automotive and banking stocks countered losses in other sectors like technology, which were weighed down by concerns of slowing growth and elevated interest rates. Moreover, fall in Euro zone GDP growth is a concern in the European region. UK Index marginally decline while both Germany and France Index gained 0.2% each
· Oil – Oil declined 2% to $75/bbl as demand concerns returned to the fore, snuffing out gains driven by Saudi Arabia’s unilateral pledge to cut production. Reports that the US and Iran had made progress on nuclear talks that could lead to more supply from the Islamic Republic. However, US officials said reports of an interim deal are false.
· Gold –Gold edged higher by 1% to $1965/ounce after sinking to its lowest close since March, with investors tempering bets on future Federal Reserve rate hikes and lower US bond yields.
· Previous Day market Update –.Equity benchmark index declined nearly half a percent from the intra-day high on account of profit booking after the Reserve Bank of India announced its credit policy today. Interest-sensitive sectors like auto, financials, and real estate declined as traders booked profit. The RBI kept the repo rate unchanged at 6.5 percent – in line with expectation but the RBI Governor cautioned that inflation concerns in the second half of the year need to be watched and addressed at an appropriate time. There was some hawkish stance by the RBI government which dampened the market sentiment. Moreover, investors had a cautious approach ahead of the US Federal Reserve’s policy decision to be release next week. Both the Central Bank of Australia and Canada unexpectedly raised rates by 25bps, stoking concerns for further tightening by the Federal Reserve. Sensex declined 294 points or 0.4% to close at 62848. Sensex touched an intra-day high of 63321 and low of 62790. Nifty declined 90 points or 0.5% to close at 18634. Nifty touched an intra-day high of 18777 and a low of 18615. After a long time, both mid-cap and small cap stocks corrected and declined nearly 1% from the intra-day high. While India Vix cooled off by nearly 2% to close at 11.25. FIIs were net buyers Rs212cr while DIIs were net sellers Rs405cr yesterday.
· Nifty Technical Levels – Some sort of pause could be seen Nifty at record levels but overall set up remains positive. It formed a Bearish candle and an outside Bar on daily scale. Now it has to cross and hold above 18666 zones to witness an up move towards 18786 and 18888 zones while on the downside support exists at 18580 and 18530 zones.
· Bank Nifty Technical Levels – Bank Nifty formed a Bearish candle on daily scale as selling pressure was seen at higher zones however multiple supports are intact at lower zones and it closed near its crucial 20 DEMA levels. Now it has to cross and hold above 44044 zones for an up move towards 44250 then 44500 zones while on the downside support is seen at 43750 then 43500 levels.
· Actionable BUY – Hindustan Aeronautics, Tata Steel, CCL Products, Tata Power, Tata Motor, Reliance Industries
· Brokers Radar – Macquarie – TGT on SBI Life at 1306, HDFC Life at 556 and ICICI Prudential Life TGT at 486. JP Morgan – Hero Motocorp TGT at 3315, Bajaj Auto TGT at 5380 and TVS Motor tgt AT 1400. Macquarie TGT on TVS Motor at 1418. Goldman Sachs - Ultrtechtech Cement TGT at 8600 and Dalmia Cement TGT at 2100
· Events –Kotak Mahindra Bank block deal of 1.7% equity, IKIO Lighting Rs607cr IPO Subscribed 68 Times by Last Day.
· Corporate Action - Solar Industries - AGM and ex-dividend Rs8, Asian Pains Rs21.25, Elecon Engineering Rs2 and HDFC AMC Rs48
· Global Data –CPI and PPI (Producer Price Index) - China
· Market Summary – Canada Pension Seeks up to $754M in Kotak Stake Sale, Tata Power receives LOA to set up 966 MW Renewable Power Project for Tata Steel, German Defence Minister visits Mazagon Dock in Mumbai, RBI keeps unchanged interest rate and lower inflation, Hatsun Agro To Consider Sale Of Windmill Division, Govt. in talks with US on steel, aluminum tariff exemption- media report
· Kotak Bank - Canada Pension Plan Investment Board offers 33m shares, or a 1.7% stake, in Kotak Mahindra Bank in a block trade. The shares are offered at Rs1,792.18 to 1,886.50 a share, price range represents a discount of 5% (CMP 1886). Current holding 4.34% stake by Canada Pension Plan Investment – Any sharp decline will be buying opportunity.
· Hindustan Aeronautics (HAL)- The Board of Hindustan Aeronautics Ltd (HAL) will meet on June 27 to consider and approve a proposal to split its equity shares – positive
· Tata Power - Company received Letter of Award 'LOA' to set up 966 MW RTC hybrid renewable power for Tata Steel. This is one of the biggest industrial RTC power PPAs under Group Captive segment in the country. – positive
· IRB Infra – Company’s listed Private InvIT report 20% growth in Toll Revenue for May 2023 – positive
· Biocon – Company said that its active pharmaceutical ingredient (API) manufacturing facility in Bangalore received a certificate of GMP Compliance from competent authority of Germany - positive
· CEAT Limited - Company has increased stake with Tyresnmore Online Pvt for making a further investment of upto ₹ 9 Crore to acquire additional 10.89% of the fully diluted post issue total share capital. Tyresnmore shall become Subsidiary of CEAT Limited and the total holding of CEAT Limited in Tyresnmore on a fully diluted basis would be 56.9%.
· Aether Industries – Company signed license agreement with Saudi Aramco Technologies Company for the commercialization of the sustainable Converge®️ polyols technology - positive
· GAIL – Company emerged successful in Corporate Insolvency Resolution Process (CIRP) of JBF Petrochemicals in competitive bidding seeing through major India petrochemical players in the process. The acquisition of JBFPL offers GAIL an opportunity to add a new product Purified Terephthalic Acid (PTA) to GAIL's existing petrochemical portfolio. – positive
· NHPC – Company has been allotted a Pump Hydro Storage site in Punasa, Dist, Madhya Pradesh with estimated storage capacity of 525 MW X 6 hours, by New and Renewable Energy Department, Govt. of Madhya Pradesh. – Positive
· TCM Ltd (Formerly Travancore Chemical) has received the work order from Agency for New and Renewable Energy Research and Technology (ANERT), Department of Power, Government of Kerala for the Design, Supply, Installation and Commissioning of Grid connected SPV Power Plants in Public Buildings at Thiruvananthapuram under Solar City Project – Positive
· Bharti Airtel – Company surpasses the 20 lakh customer mark on its 5G network in Uttar Pradesh East - positive
· RBI Monetary Policy: The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), announced its decision to keep the repo rate unchanged at 6.5 per cent. RBI governor Shaktikanta Das said that the committee took the decision unanimously. The gross domestic product (GDP) forecast for 2023-24 (FY24) has also been kept unchanged at 6.5 per cent. However, the inflation target for FY24 has been lowered marginally to 5.1 per cent from 5.2 per cent earlier. RBI said inflation is expected to remain above 5 per cent in FY24. The MPC also announced that it will continue with its stance of "withdrawal of accommodation".
· Focus on Metal stocks - Government is in negotiations with the US to seek an exemption from steel and aluminium tariffs imposed by former US President Donald Trump, as well as the removal of some retaliatory levies. Negotiators in New Delhi and Washington want to strike a deal during Indian Prime Minister Narendra Modi’s visit to the United States later this month – expects positive for Hindalco, SAIL, Nalco and Tata Steel
· Zydus Life – Company gets USFDA approval for Nexium delayed-release oral suspension - positive
· Mother Dairy has reduced the maximum retail price (MRP) of edible oils sold under Dhara brand by Rs 10 per litre on account of fall in edible price in the international market – It may positive on select FMCG stocks (Hindustan Unilever, Dabur India) and expectation of cooling down inflation. However, Marico, Godrej Agrovat and Patanjali may negative impact.
· KPI Green Energy – Company have received Commissioning Certificates from Gujarat Energy Development Agency ('GEDA') for the 26.10MW wind-solar hybrid power project comprising 16.10MW wind and 10MWdc solar capacity at Bhungar site in Bhavnagar, Gujarat, under the Gujarat Wind-Solar Hybrid Power policy 2018. - positive
· Trigyn Technologies- company has announced that the contract of our wholly owned subsidiary, Trigyn Technologies Inc., with the United Nations, for the provision of Information and Communication Technology Staffing Support at the UN Missions and other UN offices worldwide, has been extended for an additional six (6) months. – positive
· Mazagoan Dock - A delegation from Germany led by its Defence Minister Boris Pistorius visited the Western Naval Command (WNC) and the Mazagon Dock here with an aim to strengthen defence ties between the two countries - positive
· Inox Wind – Company has bagged an order for a 100MW wind power project from ABEnergia Renewables Pvt Ltd (ABEnergia), an Independent Power Producer – positive
· Hatsun Agro To Consider Sale Of Windmill Division - Hatsun Agro is considering the sale of its windmill division by way of transfer of all the assets and liabilities through a slump sale – Positive to exit non-core business
· L&T Finance – Company approved dividend Rs2 a share
· IndusInd Bank – Company has been empaneled as the official angency bank by the Madhya Pradesh Government. Bank to collect government's revenue and receipts such as GST and VAT online – Positive
· Zen Technologies - Military training and anti-drone solutions provider Zen Technologies has secured an order worth Rs202cr from the Ministry of Defense - positive
· SpiceJet - SpiceJet will partner with FTAI Aviation for its CFM56 engine revitalization program. Under the program, FTAI Aviation will provide SpiceJet with upto 20 engines for lease, inclusive of maintenance services – positive
· Delhivery Ltd - ONDC network partners with Delhivery and Mystore to provide express parcel shipping for rural entrepreneurs nationwide - positive
· CCL Products - Company acquired six coffee brands from Lofbergs Group for £550,000 or approximately Rs 5.66cr – positive .
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