With light of beautiful diyas and the holy chants, may happiness and prosperity fill your life forever! Wishing you and your Family very happy and prosperous Diwali!
In the week gone by, global markets continued to move up as a strong earnings season continued to lift sentiment for equities, while investors were looking ahead to the outcome of a critical Federal Reserve meeting. Chinese stock markets too remained cautious. Even bonds of Chinese property developers were down over worries about spreading financial contagion from the China Evergrande Group's debt crisis. On the flip side, Activity in China's services sector expanded at a faster pace in October, buoyed by robust demand, although rising inflationary pressures weighed on business confidence for the year ahead, a private survey showed. The Caixin/Markit services Purchasing Managers' Index (PMI) rose to 53.8 in October - the highest since July - from 53.4 in September.
Back at home, domestic markets traded lackluster in a narrow range and ended marginally lower, in absence of any major trigger. Actually investors traded cautiously ahead of Diwali festival and had booked profit in selected counters that have run-up sharply in the recent upsurge. Auto majors announced weak auto sales numbers due to supply chain disruptions, fuel price hikes and rise in input costs. On the flip sides, the manufacturing sector posted its best performance in eight months in October, helped by robust festive demand and solid exports, a private survey showed. Another data showed that led by engineering goods, petroleum products and gems and jewellery, India’s merchandise exports increased for the eleventh consecutive month in October and grew 42.33% on year at $35.47 billion. According to an SBI Research report, the digitisation drive and pandemic-induced emergence of the gig economy have led to a faster formalisation of the economy, with the share of the informal sector shrinking to just 15-20 per cent in 2021 from 52.4 per cent in 2018. Going forward, market will continue to take direction from both domestic and global factors.
On the commodity market front, it was holiday-shortened week. CRB traded in a very tight move. Dollar index was very volatile and noticed marginal fall from the higher side; after strong inflation numbers cemented the case for tapering at this week’s Federal Reserve meeting. Prices of the metal moved in tight range with downside bias and thin volume as market participants were waiting for more a U.S. Federal Reserve meeting on interest rates, which could affect economic growth and liquidity in the financial markets. Bullion counter is losing its shine and likely to stay in lower band. However, physical demand improved in India. Gold and silver may stay in the range of 47000-48100 and 62000-64500 levels. Crude rally may take further breather and can see a downside level of 6000 whereas base metals will take a support from current levels. Inflation Rate of Mexico, China, Germany and US, ZEW Economic Sentiment Index of Euro Area and UK, Non-Farm Payrolls and Unemployment Rate of US are scheduled this week which one should watch while trading in commodities.
Happy investing !!!
SMC Global Securities Ltd. (hereinafter referred to as “SMC”) is a registered Member of National Stock Exchange of India Limited, Bombay Stock Exchange Limited and its associate is member of MCX stock Exchange Limited. It is also registered as a Depository Participant with CDSL and NSDL. Its associates merchant banker and Portfolio Manager are registered with SEBI and NBFC registered with RBI. It also has registration with AMFI as a Mutual Fund Distributor.
SMC is a SEBIregistered Research Analyst having registration number INH100001849. SMC or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing /dealing in securities market.
SMC or its associates including its relatives/analyst do not hold any financial interest/beneficial ownership of more than 1% in the company covered by Analyst. SMC or its associates and relatives does not have any material conflict of interest. SMC or its associates/analyst has not received any compensation from the company covered by Analyst during the past twelve months. The subject company has not been a client of SMC during the past twelve months. SMC or its associates has not received any compensation or other benefits from the company covered by analyst or third party in connection with the research report. The Analyst has not served as an officer, director or employee of company covered by Analyst and SMC has not been engaged in market making activity of the company covered by Analyst.
The views expressed are based solely on information available publicly available/internal data/ other reliable sources believed to be true.
SMC does not represent/ provide any warranty express or implied to the accuracy, contents or views expressed herein and investors are advised to independently evaluate the market conditions/risks involved before making any investment decision.
DISCLAIMER: This report is for informational purpose only and contains information, opinion, material obtained from reliable sources and every effort has been made to avoid errors and omissions and is not to be construed as an advice or an offer to act on views expressed therein or an offer to buy and/or sell any securities or related financial instruments, SMC, its employees and its group companies shall not be responsible and/or liable to anyone for any direct or consequential use of the contents thereof. Reproduction of the contents of this report in any form or by any means without prior written permission of the SMC is prohibited. Please note that we and our affiliates, officers, directors and employees, including person involved in the preparation or issuance of this material may; (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company (ies) mentioned herein or (b) may trade in this securities in ways different from those discussed in this report or (c) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instrument of the company (ies) discussed herein or may perform or seek to perform investment banking services for such Company (ies) or act as advisor or lender / borrower to such company (ies) or have other potential conflict of interest with respect of any recommendation and related information and opinions, All disputes shall be subject to the exclusive jurisdiction or Delhi High Court.
SAFE HARBOR STATEMENT: Some forward statements on projections, estimates, expectations, outlook etc are included in this update to help investors / analysts get a better comprehension of the Company's prospects and make informed investment decisions. Actual results may, however, differ materially form those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, Impact of competing products and their pricing, product demand and supply constraints. Investors are advised to consult their certified financial advisors before making any investments to meet their financial goals.
September 2021 was 19.52% and tier-1 capital adequacy (including profits for H1-2022) was 18.53% compared to the minimum regulatory requirements of 11.08% and 9.08% respectively.
The bank is focusing on growing the core operating profit in a risk calibrated manner instead of loan growth. The bank aims to improve share of profitable market opportunities by making delivery to the customer more seamless and frictionless through digitization and process improvements. Business performance ofthe bank such as domestic loan growth, overall corporate advances, retail loan growth, CASA ratio are continuously improving. Thus, it is expected thatthe stock will see a price target of Rs.919 in 8 to 10 months’ time frame on current P/Bvx of 3.38x and FY23 BVPS(Book Value Per Share) of Rs.271.89.
The company will maintain leadership in the E&C segment in India, and is positioned to benefit from the large infrastructure spending in India, over the medium term. Moreover, the Company`s focus continues to be on efficient execution of its large order book, working capital reduction, cost optimization through use of digital technologies aimed at operational efficiencies and driving an agile Balance Sheet. The Company is optimistic of its growth aspirations in the medium term as the economic outlook improves. Thus, it is expected that the stock will see a price target of Rs.2203 in 8 to 10 months’ time frame on a target P/Ex of 25x and FY23 EPS of Rs.88.12.
The stock closed at Rs 1785.55 on 03rd November, 2021. It made a 52-week low at Rs 775.50 on 02nd November, 2020 and a 52-week high of Rs. 1805 on 02nd November, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 1417.58.
As we can see on charts that stock is trading in uptrend since August 2020 and moving in higher highs and higher lows sort of “Rising Wedge” on weekly charts, which is bullish in nature. Last week, the stock has given the pattern breakout and registered all time high and also managed to close at high levels along with high volumes. On the technical indicators front such as RSI and MACD are also suggesting buying for the stock. Therefore, one can buy in the range of 1760-1770 levels for the upside target of 1840-1870 levels with SL below 1700 levels.
The stock closed at Rs 1035.50 on 03rd November, 2021. It made a 52-week low of Rs 425.00 on 06th November, 2020 and a 52-week high of Rs. 1051.90 on 03rd November, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 694.07.
Short term, medium term and long term bias are looking positive for the stock as it is trading in higher highs and higher lows on charts. Apart from this, it has formed a “Bull Flag” pattern on weekly charts and given the breakout of same in last week and also has managed to close above the same along with high volumes so buying momentum may continue for coming days. Therefore, one can buy in the range of 1010-1015 levels for the upside target of 1130-1150 levels with SL below 970 levels.
Disclaimer : The analyst and its affiliates companies make no representation or warranty in relation to the accuracy, completeness or reliability of the information contained in its research. The analysis contained in the analyst research is based on numerous assumptions. Different assumptions could result in materially different results.
The analyst not any of its affiliated companies not any of their, members, directors, employees or agents accepts any liability for any loss or damage arising out of the use of all or any part of the analysis research.
SOURCE: RELIABLE SOFTWARE
Charts by Reliable software
Nifty indices ended lower on the last day on Samvat 2077, as selling pressure mounted on auto and banking counter. Once again a tug of war was seen among options writers during the week. Call writers added hefty open interest at 17900 & 18000 strike which would likely to act as strong hurdle for Nifty in upcoming sessions. On downside, 17800-17650 zone would act as a strong support area. Implied volatility (IV) of calls closed at 14.91 % while that for put options closed at 15.61. The Nifty VIX for the week closed at 17.06%. PCR OI for the week closed at 1.11. From technical front, however, Nifty has managed to close above its 100 days exponential moving average on daily charts. We expect markets to remain choppy in coming sessions with bias likely to remain in favour of bulls. Traders are advised to keep stock specific action on radar.
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**The highest call open interest acts as resistance and highest put open interest acts as support.
# Price rise with rise in open interest suggests long buildup | Price fall with rise in open interest suggests short buildup
# Price fall with fall in open interest suggests long unwinding | Price rise with fall in open interest suggests short covering
Turmeric futures (Dec) closed higher for the second consecutive week and now expected to trade in a range of 7300- 8000 with support at 7300 levels. We have witnessed some physical buy as prices have consolidated above 7200 levels and downtrend looks limited as production of turmeric may be lower than the earlier expected due to lower area in Telengana. Moreover, expectation of better demand from the exports may keep prices supportive. In the first 5-months (Apr-Aug) of FY 2021/22, exports down 25% to 64600 tons Vs last year but at par with 5-year average. Jeera futures (Dec)traded positive for the third consecutive week, now likely to trade sideways to higher in the range 15300-16000 with support at 15200 levels. The festive demand is now slowing down but the export enquiries are supporting the prices. Jeera production in Syria and Turkey was limited due to bad weather, which increases the export demand for Indian cumin. However, exports of jeera for Apr-Aug are down by 12% Y/Y at 1.24 lakh tonnes but expected to improve in coming months. During last two months, the prices were higher y/y despite sufficient stocks with traders. Dhaniya futures (Dec)traded in a very narrow range and expected some correction towards 7900 as resistance is seen at 8300 levels. Traders and stockist are offloading stocks in the mandis of Gujarat and Rajasthan due to steady demand and likely to increase arrivals and offloading of old stocks as sowing season has started. Exports have been down 10% during Apr-Aug period to 21000 tonnes Vs 23300 tonnes last year but 12.7% higher compared to 5-year average. Late monsoon rains in Rajasthan and Madhya Pradesh will see good area under coriander crop in coming season.
Gold prices dipped as a firmer dollar made bullion less appealing for holders of other currencies, while investors eyed a pivotal U.S. Federal Reserve policy meeting amid growing concerns over a sustained bout of inflation. The Federal Reserve’s two-day policy meeting concludes on 3rd Nov. Price and wage increases running at multi-decade highs may challenge the Fed as they try to maintain a balance between containing inflation and giving the economy as much time as possible to restore the jobs lost since the pandemic. U.S. manufacturing activity slowed in October, with all industries reporting record-long lead times for raw materials, indicating that stretched supply chains continued to constrain economic activity early in the fourth quarter. The Fed is expected to approve plans to scale back its bond-buying programme, when it concludes a two-day policy meeting. Gold is traditionally seen as an inflation hedge. However, reduced stimulus and interest rate hikes to combat such inflationary pressure tend to push government bond yields up, raising the opportunity cost of non-interest-bearing gold. The Bank of England heads this week into its most unpredictable interest rate decision in years, leaving investors and analysts on edge about the chance of its first hike since the pandemic struck the world economy. The week ahead could be volatile for gold prices. The yellow metal is likely to be influenced by the dollar’s movements, Treasury yields, inflation expectations and global risk sentiment. Ahead in the week, gold prices may trade in the range of 46500-48500 with higher volatility and the trading range for silver is 61000-65800. In COMEX prices may trade in the range of 1740-1820 and for silver the range would be $22.80-$25.10.
Soybean futures (Dec) traded positive but in tight range last week but and prices are expected to trade in a broad range of 5200-5700 levels as new season soybean is entering the market. The peak arrival is delayed by about a month on unseasonal rains. As soybean prices are higher by 30% y/y and trading above MSP of 3950 rupees per 100 kg, government is very vigilant in reviewing the implementation of stock limit on Oilseeds and edible oil, which is keeping prices under control. According to SEA, soymeal exports declined sharply to 5,831 tonnes in September this year from 68,576 tons in the yearago period. According to SOPA, India's soybean production estimated at 118.9 lakh tons (lt) compared to 104 lt last year. In the monthly report, US production was forecast up 1.79% to 121 mtvs 119 mt last month. Edible oil prices have corrected last week as members of the Solvent Extractors' Association of India (SEA) have decided to reduce prices of edible oils by ₹3,000 to ₹5,000 per tonne keeping in mind the Diwali festivities. Edible oil prices in domestic market have corrected in October due to record imports of edible oil (17 lakh tonnes) in September in import duty cut until Mar 2021. Malaysian palm oil futures also slump over expectations of higher end stocks and rumours of poorer exports. However, tariff value on edible oils is capping further decrease. For today, Ref Soy oil futures (Dec) may trade sideways to down towards in range of 1200-1290 levels while CPO futures (Nov) likely to trade lower towards 1010 levels.
Crude oil sets for straight second weekly loss after hitting high of 6428, ahead of the release of the latest snapshot of U.S. supply and as traders focus on this week’s OPEC+ meeting. The Nymex contract hit a seven-high year, while the Brent contract climbed to a three-year peak. Attention is firmly fixed on Thursday’s meeting OPEC+, where these major producers will discuss future supply levels. There has been plenty of pressure on these countries to increase output to limit price increases. But a number of producers have expressed caution about increasing supply too quickly, and they are widely expected to stick to their plan to add 400,000 barrels per day of supply in December. Biden, speaking at the COP26 climate summit taking place in Glasgow, blamed a surge in oil and gas prices on a refusal by OPEC to pump more crude oil. Ahead in the week we may witness selling in the counter where 6500 remains key for bears, as long as prices sustain below it, there are high chances of selling. The short term support for the counter is seen near 5980. Natural gas price increase came despite rising output and forecasts for milder weather and lower heating demand next week than previously expected. Price gains in the United States, however, were restrained compared with overseas markets because the United States has more than enough gas in storage for winter and ample production to meet domestic and export demand. Prices in Europe and Asia were about five times higher than in the United States. Ahead in the week, prices may continue to trade with higher volatility where support is seen near 365 and resistance near 440.
Cotton futures (Nov) continued to trade positive and touched record high levels last week due to increasing demand from the mills as arrivals are lower as compared to last year. From the higher levels the prices have corrected and now expect the prices to trade sideways in the range of 31800-34000 levels. CCI increased its selling price by 1500 rupees per candy this week in addition to Rs 4500 per candy increase in last week. Furthermore, mills are experiencing lower arrivals of new crop kapas crop due to hoarding by farmers and unseasonal rain has affected the production. Millers are left with limited stock. Recently, CAI has estimated cotton crop for the 2021-22 crop year at 360.13 lakh bales of 170 kgs. each which is more by 7.13 lakh bales than the previous year’s crop. Guar seed futures (Dec)corrected last week from higher levels and now expected to trade sideways to lower towards 6500with major resistance at 7100. Currently, the prices are higher by 60% y/y due to lower stocks and persistent export demand. The area under guar this season was Rajasthan down by about 2-3 lakh hac compared to last year at 21 lakh hac, lowest acreage in a decade. Guar gum exports expected to pick-up in coming weeks due to increase in US rigs. Castor Seed (Dec) corrected last week at higher levels and expect the prices to trade lower towards 6400 levels with resistance at 6700 levels. We have witnessed persistent export demand for castor oil and meal this season keeping prices increasing since June. Castor meal exports up y/y by 16% in first 6-monhts of FY 2021/22 while Castor oil exports for Jul -Aug 2021 down y/y but higher for Apr-Aug period. Due to good area in Gujarat, there is expectation of good production in the coming season.
Base metals may trade in the range on mixed fundamentals. A slowdown in China's manufacturing sector is casting an ever larger shadow over the base metal market. Environmental curbs, energy rationing and higher raw material prices are combining as a powerful brake on manufacturing activity. However, China's efforts to boost coal supplies have alleviated some fears about the power crunch and metal supplies. Copper may trade in the range 720-770 levels. Copper has been caught between a deteriorating macroeconomic outlook and the strength of its own micro dynamics for several months. But it's worth noting that global exchange stocks, comprising those in LME, CME and Shanghai Futures Exchange warehouses, have fallen for the last two months. More worrying for consumers are cancelled warrants-metal earmarked for delivery-at 74%, suggesting another 92,250 tonnes is due to leave LME warehouses over coming days. Zinc can move in the range of 260- 295 levels. According to SMM data, as of October 29, the total inventory of zinc ingots in the seven major regions was 143,600 mt, a decrease of 121,800 mt or 45.89% from the previous high. Lead can move in the range of 180-192. Nickel may trade in the range of 1460-1540. The price of nickel may get support on concern about supply as inventories declined and demand boomed for stainless steel and electric vehicles. The global nickel market is forecast to flip from a 62,000-tonne deficit in 2021 to a 78,000-tonne surplus next year. Aluminum may move in the range of 210-225 levels. The United States and European Union have agreed to end a festering dispute over U.S. steel and aluminum tariffs imposed by former President Donald Trump in 2018.
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SILVER MCX (DEC) contract closed at Rs. 63223.00 on 02nd Nov 2021 . The contract made its high of Rs. 73999.00 on 03rd Jun’2021 and a low of Rs. 58150.00 on 30th Sep’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs 64039.02. On the daily chart, the commodity has Relative Strength Index (14-day) value of 46.292.
One can sell near Rs. 63400 for a target of Rs. 61500 with the stop loss of 64350.
LEAD MCX (NOV) contract closed at Rs. 187.55 on 02nd Nov’2021. The contract made its high of Rs. 194.65 on 18th Oct’2021 and a low of Rs. 175.40 on 30st Sep’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs. 186.69. On the daily chart, the commodity has Relative Strength Index (14-day) value of 57.539.
One can sell near Rs. 188 for a target of Rs. 178 with the stop loss of Rs. 195.
REF. SOYA NCDEX (NOV) contract was closed at Rs. 1260.80 on 02nd Nov’2021. The contract made its high of Rs. 1400.90 on 26th Aug’2021 and a low of Rs. 1221.20 on 14th Oct’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs. 1265.28. On the daily chart, the commodity has Relative Strength Index (14-day) value of 42.263.
One can sell near Rs. 1262 for a target of Rs. 1190 with the stop loss of Rs 1300.
It was holiday-shortened week for the traders on the occasion of Dhanteras and Diwali. CRB traded in a very tight move. Dollar index was very volatile and noticed marginal fall from the higher side; after strong inflation numbers cemented the case for tapering at this week’s Federal Reserve meeting. The central bank holds a two-day policy-setting meeting last week, concluding on Wednesday, and is widely expected then to announce a tapering of stimulus. Copper prices fell, weighed down by a weaker iron ore market and caution ahead of an interest rate meeting in the United States. The most-traded Dalian iron ore futures tumbled 10% to near a one-year low on increasing supplies and sluggish demand, partly from a poor real estate market hurt by a debt crisis at property giant China Evergrande Group. CME Group's AUP Midwest aluminum premium futures forward curve moved lower during the week to Nov. 1 as the entire curve saw trader selling from December and throughout Calendar 2022. The three-month aluminum price on LME has fallen by 16% since October 8, even though production impacts, caused by magnesium shortages needed in alloys to form billet and declining inventories, supported prices. Oil saw a pause after a rally of multi-year highs as pressure mounted on OPEC to boost output. U.S. President Joe Biden led calls from major economies for the group to increase production beyond what has already been agreed. OPEC pumped 27.50 million barrels per day (bpd) in October, the survey found, a rise of 190,000 bpd from the previous month but below the 254,000 increase permitted under the supply deal. Meanwhile, national oil firms in China have ramped up refinery run rates, increasing its appetite for crude oil, to avert a diesel shortage in the world's second-largest oil user. Natural gas prices dropped. The weather is expected to be warmer than normal throughout the mid-West over the next 6-10 days but then turning milder throughout most of the West Coast and the mid-West. Bullion counter was down, with the focus squarely on the latest U.S. Federal Reserve policy decision.
Oil seeds and refined soya oil was in a range with upside bias but CPO saw some correction on lower exports in October and expectation of higher November output. Prices rose on fresh buy witnessed due to increasing demand from the oil mills and lower arrivals. Cotton surprised the market with its upside move on rock solid fundamentals. CCI increased its selling price by 1000 rupees per candy in addition to Rs 4500 per candy increase recently. Furthermore, kapas crop has been damaged due to unseasonal rain and hailstorm affected the arrival of new crop. Guar saw profit booking from higher side. Jeer and turmeric saw good upside.
The year 2021 has been marked by an acceleration of the COVID-19 vaccination roll-out and a progressive recovery of the main economic indicators worldwide. Positive growth is expected to continue in 2022. Usage of nickel has increased over time and is correlated with economic development. Nickel prices rose more than 20% this year, on booming demand from the stainless steel segment following the resumption in global economic activities and expansion of the EV sector. Along with increased stainless-steel production, depleting inventories across exchanges hinted at potential tightness in the global Nickel market.
Global Nickel Usage
Global Nickel Supply
This week Indian rupee logged its biggest rise against the U.S. currency in two weeks amid continued foreign inflows into local initial public offerings. However, the upside in rupee was limited as FIIs are injecting into hedge basis which pushed the forward premia higher. In a truncated week, rupee was further supported by exporter’s dollar selling. Next week, we will resumes Fed’s policy outcome that may guide the USDINR pair along with heavy inflows from IPO proceeds of Paytm that aims to raise $2.44 billion via a share sale next week in India’s biggest public listing. From the majors, Euro plunged this week vs dollar as higher inflation print in Euro zone with lower growth prospect pushed the single currency lower. In rupee terms, euro too faced the heat below 87.00. Next week we do think that after the Fed meeting outcome, EURINR is likely to fall further towards 86.20. While pounddollar pairs remains the most volatile counter in the G10 pairs. Despite rate hike expectations from the Bank of England, pound unbales to hold its gains as renewed concerns over Brexit created negative sentiment in GBP pairs. Parallely GBPINR has tumbled from 103 to 102 this week. Going forward we think GBPINR may get some scope to rise further subject to Bank of England roll-out its November monetary policy.
USD/INR (NOV) contract closed at 74.9500 on 02-Nov-21. The contract made its high of 75.2925 on 01-Nov-21 and a low of 74.7625 on 02-Nov-21 (Weekly Basis). The 21-day Exponential Moving Average of the USD/INR is currently at 75.1195.
On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 46.96.One can buy at 74.70 for the target of 75.70 with the stop loss of 74.20.
GBP/INR (NOV) contract closed at 102.2100 on 02-Nov-21. The contract made its high of 103.2000 on 01-Nov-21 and a low of 102.1275 on 02-Nov-21 (Weekly Basis). The 21-day Exponential Moving Average of the GBP/INR is currently at 102.8550.
On the daily chart, GBP/INR has Relative Strength Index (14-day) value of 41.11. One can sell at 102.50 for a target of 101.50 with the stop loss of 103.00.
| 02nd NOV | The Fed is expected to announce end to bond-buying program as seek clues on first hike |
| 02nd NOV | EU holds last-ditch talks to resolve UK-France fishing dispute |
| 02nd NOV | Supply and demand mismatch weighs on global recovery |
| 01st NOV | Federal Reserve clampdown on staff trading turns spotlight on other central banks |
| 01st NOV | US warehouses are running out of space as containers pile high |
| 01st NOV | UK-France stand-off over post-Brexit fishing rights deepens |
| 01st NOV | Global leaders get down to nitty gritty on climate change |
EUR/INR (NOV) contract closed at 86.9550 on 02-Nov-21. The contract made its high of 87.1625 on 02-Nov-21 and a low of 86.8725 on 02-Nov-21 (Weekly Basis). The 21-day Exponential Moving Average of the EUR/INR is currently at 87.3435.
On the daily chart, EUR/INR has Relative Strength Index (14-day) value of 40.87. One can sell at 87.25 for a target of 86.25 with the stop loss of 87.75.
JPY/INR (NOV) contract closed at 66.0150 on 02-Nov-21. The contract made its high of 66.1475 on 02-Nov-21 and a low of 65.7500 on 01-Nov-21 (Weekly Basis). The 21-day Exponential Moving Average of the JPY/INR is currently at 66.4210.
On the daily chart, JPY/INR has Relative Strength Index (14-day) value of 35.69. One can sell at 66.00 for a target of 65.00 with the stop loss of 66.50.
(2/5)
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Vautions of Tech Based platforms which have been burning cash to scale up business across the globe has always been debatable. PayTm while has reduced its losses on YoY basis for FY21, still the way to become profitable for the company seems years ahead. In the absence of profit these tech platforms like PayTm should be valued in the Market Cap/ Revenue and even on this count it is offeredat 49x its FY21 Revenues.
Incorporated in 2000, One 97 Communications Ltd (“Paytm”) is India's leading digital ecosystem for consumers as well as merchants. As of March 31, 2021, the company offers payment services, commerce and cloud services, and financial services to 33.7 crore consumers and over 2.18 crore merchants registered with it. The company launched Paytm in 2009, as a “mobile-first” digital payments platform to enable cashless payments for Indians; giving them the power to make payments from their mobile phones. The "Paytm" brand is India's most valuable payments brand, with a brand value of US$ 6.3 billion, and Paytm remains the easiest way to transact across multiple methods.
Its ecosystem allows it to address large market opportunities: The ecosystem allows to address large market opportunities Paytem has a wide addressable market in India across payment services, commerce and cloud services and financial services.
Trusted brand, scale and reach: The trusted brand, scale and reach Paytm brand stands for Trust, Convenience and Transparency. The "Paytm" brand is India's most valuable payments brand, with a brand value of US$ 6.3 bn, and Paytm remains the easiest way to transact across multiple methods. It had 33.7 crore consumers and over 2.18 crore merchants as of June 30, 2021.
ts insights of Indian consumers and merchant: Each transaction on its ecosystem provides insights that help them improve personalization for its consumers and merchants which in turn improves consumer and merchant experience and the quality of its engagement on the ecosystem.
Product and technology DNA: The company had an average engineering and technology team of 2,550 members and 2,471 members in FY 2021 and in the three months ended June 30, 2021. Its technology ownership and scope of its ecosystem has allowed it (or its associates, or financial institution partners) to offer services such as Paytm Wallet, Paytm QR, Paytm Soundbox, Gold investments and Fixed Deposit, Paytm Postpaid, Merchant Cash Advance and FASTag. All of these products aim to improve the experience of consumers and merchants who use it on its ecosystem.
Grow consumer and merchant base: The company will continue to grow its consumer and merchant base, adhering to its mission which is to bring half a billion Indians into the mainstream economy. The company expects this to include tens of millions of small Indian businesses and merchants.
Expand and enhance Paytm App’s offerings for its consumers: It is its endeavor to continue to add new use cases and new payment instruments that add value to its consumers and increase its monetization. It will continue to focus on bringing together various pieces of its ecosystem to build innovative products for its consumers, which could take the form of increasing seamlessness between (i) consumers and merchants, (ii) various use cases and, (iii) various payment instruments.
Deepen merchants’ partnerships and drive adoption of technology among its merchant base: The company will continue to expand its payment services’ offerings for merchants and innovate to offer wider selection of commerce and cloud services. The company also intends to continue making access to technology easy and affordable for its merchants by identifying merchant problems that can be solved using technology.
Rapidly scale up financial services and expand access of financial services through deep tech-led solutions: The company is focused on rapidly scaling up its financial services business. Akey strategic focus for it is to scale up its consumer and merchant lending businesses, including Paytm Postpaid (buy-now-pay-later), in collaboration with its financial partners, as well as its wealth management offerings. The company plans to continue to leverage its partnership with Paytm Payments Bank to expand the suite of banking solutions for consumers and merchants.
Expand into international markets: While the company continues to innovate and provide better products and services to its consumers and merchants in India, the company believes there is a large opportunity for it to leverage its technology infrastructure and expand to international markets. The company continues to explore international opportunities, especially in the developed markets, where the company can either launch its merchant services, or collaborate with partners to launch consumer facing platforms.
Paytm has strong brand identity and large base of customers and merchants. It has been the pioneer in digital payment systems in India. However, there is increased competition from competitors like PhonePe, Google Pay and others. The sheer scale and reach of Paytm will keep the company in limelight for investors. Despite burning cash it will continue to attract premium valuations. However only investors with high risk appetite should consider this issue.
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SEBI has published a circular with recommendations from Mutual Fund Advisory Committee (MFAC) to bring uniformity in the Benchmarks of Mutual Fund Schemes. It has been decided that there would be two-tiered structure for benchmarking of schemes for certain categories of schemes. The first-tier benchmark shall be reflective of the category of the scheme, and the second-tier benchmark should be demonstrative of the investment style / strategy of the Fund Manager within the category. All the benchmarks followed should necessarily be Total Return Indices.
White Oak Capital group has said that it has completed the transaction to acquire the mutual fund business of YES BANK. The group received SEBI’s approval for registration of GPL Finance and Investments Limited (GPL Finance) as a sponsor of Mutual Funds. White Oak Group has now successfully integrated YES Asset Management into its fold. YES Securities acted as an exclusive advisor to the transaction. Samvad Partners acted as legal advisor to YES BANK, while Khaitan & Co, IC Universal Legal and Regstreet Law Advisors were legal advisors to White Oak Capital on the transaction.
UTI Asset Management Company Limited (UTI AMC) said it has appointed Anurag Mittal as executive vice-president and the deputy head of fixed income for its mutual fund operations. Mittal joined UTI AMC with over a decade of experience in fund management, dealing and research. He previously held the office of Associate Director at IDFC Asset Management Company and managed key IDFC debt mutual fund schemes. Prior to this, he was associated with HDFC Asset Management Company and Axis Asset Management Company.
The Securities Appellate Tribunal (SAT) has partly stayed a Sebi order, which had directed Kotak Mahindra Asset Management Company to refund a part of the investment management and advisory fees collected by the fund house from the unit holders. In addition, the tribunal has asked the Asset Management Company (AMC) to deposit a sum of Rs 20 lakh within four weeks into an interest bearing account. Sebi, in August, had asked the AMC to refund a part of the investment management and advisory fees collected from the unit holders of the six Fixed Maturity Plan (FMP) schemes with 15 per cent interest per annum. In addition, the Securities and Exchange Board of India (Sebi) imposed a penalty of Rs 50 lakh on Kotak Mahindra AMC and barred the fund house from launching any new FMP scheme for six months for violating the regulatory norms.
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