In the week gone by, global markets witnessed volatile session amid concerns that the new Covid variant may deal a severe blow to global economic recovery. The fear of new Covid variant is likely to haunt the commodity prices across the globe and also may keep Central bankers across the globe to re-look for withdrawal of stimulus in their respective economies in case infection rises and poses threat to economic recovery. On the flip sides, minutes of the Federal Reserve’s November policy meeting, released after Indian trading hours on Wednesday showed that various members were in favor of adopting a faster pace of bond tapering or rollback of quantitative easing amid runaway inflation in the US. The minutes also hinted at a potentially faster pace of tightening monetary policy. European markets also witnessed volatile due to fears around Europe’s worsening COVID-19 situation and the prospect of severe restrictions restrained the market. November was the fifth month running of falling German business morale, blamed on supply bottlenecks in manufacturing and a spike in coronavirus infections, raising the prospect that Europe’s biggest economy could stagnate in the fourth quarter. Meanwhile, the services producer price index hit 105.4 in October, the highest since November 2001, Bank of Japan (BOJ) data showed on Thursday.
Back at home, weak global cues, persistent FII selling, news of new Covid variant found in South Africa and premium valuation had roiled the sentiments of the market participants. Also hawkish comments by several officials of the US Federal Reserve fuelled speculation of interest rates rising sooner than later in the world’s largest economy, spoil the broth in the domestic markets. Meanwhile, Moody’s expects India's economic growth to rebound strongly, pegging GDP growth of 9.3% and 7.9% in the fiscal year 2022 (ending on 31 March 2022) and fiscal 2023, respectively. Additional support also came in as Foreign Secretary said that India has set an ambitious target of $400 billion of exports for the year 2021-22. Going forward market will take direction from outcomes of macroeconomic data, Inflow and outflow of Foreign as well as domestic institutional fund, crude oil prices and Rupee movement amid global factors. Besides, Investors would track covid situation in Europe for market direction.
On the commodity market front, once again CRB took support near 250 level on recovery in energy and base metals pack, despite the speedy upside in dollar index in last four week from 93.87-96.93 level. The minutes from the Fed’s meeting, showed that a growing number of Federal Reserve policymakers indicated they would be open to speeding up the elimination of their bond-buying program if high inflation held and move more quickly to raise interest rates. Policymakers also signaled a willingness to hike interest rates quicker than planned, if needed. It stimulated selling pressure in bullion and it is likely to remain trade in a range. The fear of new variant of Covid has also spooked the confidence of the Crude prices. Thus it is expected that crude will trade in the range of 5300-6000 levels. However, investors will also continue to track the development of OPEC+ meeting, which is scheduled on 2 December 2021. Besides, US will release millions of barrels of oil from strategic reserves in coordination with China, India, South Korea, Japan and Britain, to try to cool price. Inflation Rate, Unemployment Change, Unemployment Rate of Germany, NBS Manufacturing PMI of China, GDP Growth Rate of Italy, Australia and Canada, Core Inflation Rate of Euro Area, Markit Manufacturing PMI Final, Non Farm Payrolls, Unemployment Rate and ISM Manufacturing PMI of US, Employment Change and Unemployment Rate of Canada etc are major triggers for the market this week.
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.
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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.
The company has a well-established infrastructure and according to the management of the company, the company expertise to execute all orders in time and meet the customer delivery schedule. Moreover, the company is the exclusive service provider for indigenously developed guided missiles such as Akash surface-to-air missiles and Konkur anti-tank guided missiles. It also benefits from GoI's thrust on indigenous guided weapon systems production, leading to healthy order flow and strong financial support from the government in the form of healthy advances for all its orders. It is expected that the stock will see a price target of Rs.479 in 8 to 10 months’ time frame on 3yrs average P/BVx of 2.4x and FY23 BVPS of Rs.199.67.
successful renegotiation of lower rates of interest, which augurs well for the company and the benefits, will continue to accrue going forward.
The company has delivered another quarter (Q2FY22) of positive performance, its capex plans and new product launch plans remain intact for both divisions. The company is seeing tailwinds in terms of new opportunities arising from global supply chain disruptions and the China plus one strategy playing out. The company expects this positive momentum to continue in the next few quarters based on a healthy pipeline of products at various stages. Thus, it is expected that the stock will see a price target of Rs.665 in 8 to 10 months’ time frame on current P/BV of 6.11x and FY23 BVPS of Rs.108.79.
The stock closed at Rs 1869.40 on 26th November, 2021. It made a 52-week low at Rs 1100.00 on 03rd May, 2021 and a 52-week high of Rs. 1889.75 on 26th November, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 1353.72.
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, stock has formed a “Bull Flag” pattern on daily charts and has given the pattern breakout in last week. it has managed to close above the breakout level with positive bias. Therefore, one can buy in the range of 1840-1855 levels for the upside target of 2000- 2050 levels with SL below 1770 levels.
The stock closed at Rs 656.30 on 26th November, 2021. It made a 52-week low of Rs 334.50 on 25th November, 2020 and a 52-week high of Rs. 786 on 04th August, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 589.62.
After registering all-time high, stock witnessed healthy correction and consolidated in narrow range of 600 to 660 for 10 weeks with positive bias and is forming an “Inverted Head and Shoulder” pattern on daily charts which is bullish in nature. Last week, major sell off witnessed across the board but stock ended with 3% gains along with good volumes so further upside is anticipated from the stock. Therefore, one can buy in the range of 645-650 levels for the upside target of 720-740 levels with SL below 610 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
Indian markets witnessed a blood bath in the week gone by, on the back of heavy selling by foreign investors amid renewed concerns pertaining to new variant of Covid. Nifty indices started the December series with a negative impression and fell below 17000 mark as sharp correction was seen among heavyweight names like, Reliance Industries, HDFC twins along with metal and auto space. From derivative front, bulls were clearly seen on back foot as marginal put writing was observed at 17000 strike. On the flip side, call writers added hefty open interest at 17300 & 17400 strike. The Implied Volatility (IV) of calls closed at 13.40% while that for put options closed at 14.80%. The Nifty VIX for the week closed at 16.66 % and is expected to remain volatile. PCR OI for the week closed at 1.38. For upcoming week, we keep our stance bearish for Indian markets and advise traders to remain cautious. From technical front, Nifty has breached its 100 days exponential moving average on daily charts, which was placed at 17150 levels.
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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) surged to 3-month high of 8140 last week, but then witnessed sharp fall to trade at 7500 levels. We expected trade in a range with support 7350 and resistance at 7700 levels with positive bias. There is expectation of crop damage due to persistence rains in southern parts of the country. On the export front, it is comparatively lower this FY but still at par with 5-year average. In the first 6-months (Apr-Sep) of FY 2021/22, exports down 26% to 77,250 tons Vs last year. This year the prices are higher by 38-40% as compared to last year. Jeera futures (Dec) witnessed first weekly drop in 6- weeks from 2-year higher levels. We expect further corrections towards 15,200 levels with resistance at 16350 levels. There is expectation of improved arrivals in physical market as area under jeera in Gujarat is fast improving. As on 23-Nov it was only 63,144 ha Vs 1.68 lakh ha last year while in Rajasthan jeera is sown in 3.20 lakh hac. Export demand for Jeera is improving due to poor production in Turkey and Syria. As per Govt. data, exports of jeera for Jan-Sep were higher by 1% y/y at 2.07 lakh tonnes and expected to improve in coming months. Dhaniya futures (Dec) seen correcting from its 6-year high levels but close positive for the 3rd successive week. We see support at 8500 levels and breaking these levels will take prices lower to 8200. Sowing is in progress in Rajasthan and Madhya Pradesh while exports are not picking up at higher prices. As per govt. data, exports have been down 12.7% during Apr-Sep period to 24,500 tonnes Vs 28,000 tonnes last year but 11% higher compared to 5-year average.
Gold prices slipped to a three-week low as robust U.S. economic data lifted the dollar and Treasury yields, with jitters around a sooner-than-expected interest rate hike from the Federal Reserve adding to the downbeat mood. On the contrary, concerns over the spread of a newly identified coronavirus variant boosted the metal's safe-haven appeal, although bullion was set for a weekly drop on bets of U.S. Federal Reserve turning more hawkish. The variant spreading in South Africa may evade immune responses and has prompted Britain and a growing number of other countries to hurriedly introduce travel restrictions on the African nation. Further aiding gold's climb, the dollar index eased 0.2% from a 16-month peak, while U.S. benchmark 10- year Treasury yields also weakened. But the metal was heading for its worst week since Aug. 6 on increased expectations that the Fed could taper its asset purchases and raise interest rates at a faster pace. A rate hike cycle is generally negative for gold, but need to keep an eye on this new COVID variant - if it spreads to the United States, that could weaken growth and can't expect the Fed hiking rates in that environment. On the technical front, Gold on COMEX looks good as prices are again breaking above the psychological level of $1800 and the chart formations are suggesting more buying can be witnessed form here. Short term resistance for the commodity is seen near $1840 whereas $1770 remains the key support for bulls. On MCX, gold price may continue to trade with positive bias where it may approach towards its resistance of 48800 with support of 46700 levels. Silver may trade in the range of 61500-68000 levels with positive bias.
Soybean futures (Dec) made positive move for the fifth successive week due to improving demand from the feed manufacturers in the country. We expect it to trade in a range 6500-7100 with positive bias. Support is at 6200 levels. Soybean prices jumped more than 12% in a week in India, as many of India's farmers are holding onto to soybeans instead of selling them to oilseed processors. The All India Poultry Breeders Association requested the government to allow imports of 550,000 tonnes of soymeal. As per SOPA, soybean arrivals in October were lower at 15 lakh tonnes (lt) compared to 18 lt last year. Crushing demand of soybean is improving due to declining imports of edible oil. Soybean production in India revised higher by 8% m/m to 11.9 mt by USDA in Nov monthly report. *Edible oil prices* traded sideways to lower last week tracking mixed trend in international prices. Malaysian palm oil futures edged lower last week on lower than expected increase in export estimates and weakness in crude oil. Moreover, higher production data of Malaysian palm oil products m/m during Nov 1-20 also put pressure on prices. However, US soybean oil jumped 4%. In India, edible oil prices increased until first 3 weeks of November but now correcting but downtrend is limited on improving demand, lower imports and declining. Moreover, hike in tariff value by more than 1% on 15-Nov also support edible prices. As per SEA, edible oil imports were down by 38.4% in Oct m/m while the stocks at port down 15% m/m. Ref Soy oil futures (Dec) may trade in range of 1195 -1300 with positive bias while CPO futures (Dec) likely to trade sideways to higher with support at 1100 and resistance at 1180.
Oil prices slide more than 4% on concerns that a global supply surplus could swell in the first quarter following a U.S.-led coordinated release of crude reserves among major consumers and as a new COVID-19 variant spooked investors. Oil prices are likely dropped in tandem with wider financial markets on concerns the new variant would hit demand by limiting movements again, while market participation has fallen due to the U.S. holidays. U.S. President Joe Biden's administration announced plans on to release millions of barrels of oil from strategic reserves in coordination with other large consuming nations, including China, India and Japan, to try to cool prices. On 29th Nov. world powers and Iran will resume negotiations to revive a 2015 nuclear deal that could lead to the lifting of U.S. sanctions on Iranian oil exports. High oil prices have added to inflationary concerns. Ahead in the week, crude prices may continue to trade with mixed bias where it may take support near 5400 levels and could face resistance near 5730 levels. The rising natural gas prices in recent months reflect U.S. natural gas inventory levels that are below the five-year (2016–20) average. Despite high prices demand for natural gas for electric power generation has remained relatively high, which along with strong global demand for U.S. liquefied natural gas (LNG) has limited downward natural gas price pressures. Cool conditions linger across the US which results in return to strong national demand. Ahead in the week prices may continue to trade with positive bias where buying is expected from lower level. Support for the counter is seen near 355 levels and resistance near 420 levels.
Cotton futures (Dec) have recovered about 1% last week after three weeks of decline. Now, it is likely to trade in a range 31660 – 33250 with positive bias. Support is at 31420 levels. Current cotton prices are high 55-60% y/y due to concerns over production and higher demand for raw cotton for exports. The daily arrivals are lower than usual so stocks with mills is low and with domestic yarn demand is good, buying from mill will be continue. Guar seed futures (Dec) continued to close lower for the 4th consecutive week due to profit booking at higher levels and arrivals of new season crop. We expect prices to trade in a range with support at 5700 and resistance at 6270 levels. Currently, prices are up 50% y/y on expectation of lower production, multi-year lower stocks and good export demand. The arrival of new season guar seed may decline as prices slipped to one-month low. In Sep, Guar gum exports are higher by 30% y/y at 24,800 tonnes while exports in 2021/22 (Apr-Sep) are up by 43% y/y at 1.58 lakh tonnes. Castor Seed (Dec) closed in green for first time in last 4-weeks. It is likely to trade sideways to higher with support at 6370 and resistant at 6550. We have witnessed persistent export demand throughout the year for castor oil and meal. Castor meal exports up 7% y/y in first 10- months of FY 2021 at 3 lakh tonnes Vs 2.8 lt while Castor oil exports for Jan-Oct higher by about 10% at 5.94 lakh tonnes y/y despite higher prices of castor oil by 30% compared to last year. In 1st advance estimate, production in Gujarat is expected at 14 lakh tonnes Vs 13.5 lt last year.
Base metals may trade with negative bias as a newly identified COVID-19 variant in South Africa and expectations of faster-than-expected U.S. rate hikes fuelled concerns of an economic slowdown. Minutes of the U.S. Federal Reserve's last policy meeting showed a growing number of policymakers being open to speeding up the central bank's tapering programme. The U.S. economy is accelerating, but surging coronavirus infections threaten German growth. The new variant announcement prompted Britain to introduce travel restrictions on South Africa and five neighbouring countries. But low inventories pointed to tight supply and Chinese efforts to support its economy may provide some cushion to the industrial metals. China has announced measures to support its debt-ridden property sector. Copper may trade in the range 720-750 levels. The Kamoa-Kakula project in the Democratic Republic of Congo is starting to ramp up. It produced 41,545 tonnes of copper concentrate in the third quarter, with year-to-date production of more than 77,500 tonnes as of Nov. 15. Zinc can move in the range of 260-285 levels. Lead can move in the range of 180-190 levels. Nickel may trade in the range of 1530- 1600 levels on-warrant nickel inventories in LME-registered warehouses have fallen to 62,304 tonnes from more than 200,000 tonnes in April. Tight supply has pushed cash nickel's premium over the three-month LME contract to $194 a tonne, the highest since 2019. Aluminum may move in the range of 205-220 levels. The stocks of aluminium billet in five major consumption areas of China dropped 11,700 mt to 100,500 mt on November 18 from a week ago, a decrease of 10.43%. And the inventory has been falling for five straight weeks.
LEAD MCX (DEC) contract closed at Rs. 185.80 on 25th Nov 2021 . The contract made its high of Rs. 193.75 on 18th Nov’2021 and a low of Rs. 183.20 on 22nd Nov’2021. The 18- day Exponential Moving Average of the commodity is currently at Rs 186.41. On the daily chart, the commodity has Relative Strength Index (14-day) value of 45.423.
One can sell near Rs. 187 for a target of Rs. 175 with the stop loss of 194.
NATURAL GAS MCX (DEC) contract closed at Rs. 382.90 on 25th Nov’2021. The contract made its high of Rs. 502.40 on 06th Oct’2021 and a low of Rs. 360.00 on 10th Nov’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs. 391.11. On the daily chart, the commodity has Relative Strength Index (14-day) value of 46.295.
One can buy near Rs. 378 for a target of Rs. 425 with the stop loss of Rs. 355.
NCDEX GUARSEED (DEC) contract was closed at Rs. 6095.00 on 25th Nov’2021. The contract made its high of Rs. 7250.00 on 29th Oct’2021 and a low of Rs. 5752.00 on 28th Sep’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs. 6321.43. On the daily chart, the commodity has Relative Strength Index (14-day) value of 36.131.
One can sell near Rs. 6050 for a target of Rs. 5650 with the stop loss of Rs 6250.
Once again CRB took support near 250 levels on recovery in energy and base metals pack, despite the speedy upside in dollar index in last four week; from 93.87-96.93. The minutes from the Fed’s meeting, released on Wednesday, a growing number of Federal Reserve policymakers indicated they would be open to speeding up the elimination of their bond-buying program if high inflation held and move more quickly to raise interest rates. It gave a jolt to bullion prices. In energy counter, both crude and natural gas revived despite SPR release talk. US has launched an auction for 32 million barrels of crude from four strategic petroleum reserves (SPR) sites to be delivered between late-December and April 2022. US will release millions of barrels of oil from strategic reserves in coordination with China, India, South Korea, Japan and Britain, to try to cool prices after OPEC+ producers repeatedly ignored calls for more crude. Some of the cartel’s delegates warned that releasing strategic reserves may lead to the alliance holding back crude supply in January raised crude prices. Meanwhile, Wednesday's U.S. crude oil supply data from EIA showed a build of 1.017 million barrels for the week ended November 19. US natural gas storage fields are expected to post the first net withdrawal of the winter season, which should be about half the five-year average; sent natural gas prices higher. Base metals saw surge despite mediocre data as market reacted on the news that regulators in China have told some banks to issue more loans to property companies, baring lead. Further price support came from signs of tight supply, with stocks of most metals in LME warehouses falling and contracts for quickly deliverable material trading at a premium.
Soybean prices appreciated further. Currently, farmers are holding back their new season crop in anticipation of higher prices and selling limited quantities to meet their immediate financial needs. Crushing demand of soybean is improving due to declining imports of edible oil. India, edible oil prices started to recover in November due to improving demand, lower imports and declining. Moreover, hike in tariff value by more than 1% on 15-Nov also support edible prices. As per SEA, edible oil imports were down by 38.4% in Oct m/m while the stocks at port down 15% m/m. The daily arrivals in mandi are lower than usual so stocks with mills is low. With domestic demand for the yarn is good buying from mill will be continued. Persistent export demand throughout the year for castor oil and meal is keeping the prices at higher levels as stocks are lower with the oil-mills. Castor meal exports up y/y by 16% in first 6-months of FY 2021/22 while Castor oil exports for Apr-Oct higher by 3.5% at 4.15 lakh tonnes despite higher prices of castor oil by 30% y/y.
Silver is a well-known industrial commodity. It is most versatile metal from industrial use to decoration; technology, photography and medicine. Silver had witnessed overall weak demand last year amid the COVID-19 pandemic, which crippled the industrial sector that accounts for roughly 60% of the global silver consumption. Demand from jewelers was also muted. Investment demand was the only saving grace with the metal gaining on its safe-haven demand. However, with the resumption of businesses and the ongoing economic recovery this year, silver demand has picked up in industrial, photography, jewelry, and silverware. Investment purposes have been contributing to the momentum as well.
Important fact about silver demand
The ongoing revolution in green technologies, aided by high growth of new energy vehicles and investment in solar photovoltaic energy, will act as a major catalyst for silver in the days ahead.
Indian Rupee edged lower by more than a quarter percent this week after dollar strength continues. However there was a great divergence seen in Indian Rupee and Dollar globally as rupee remains over largely overvalued against its Asian peers. Additionally exporter dollar sales were the front reason for capping any major fall in rupee. Going forward we think USDINR largely will remain in a range of 74.20 - 74.75 levels before RBI policy in early December. Additionally a pickup in covid cases across Europe, along with growing inflation concerns, weighs on risk sentiment which pushed dollar index to 16 months high and may weigh our domestic currency in the coming days. From the majors, sterling has continued its decline below 1.34 vs dollar and 100 vs rupee as Brexit headlines continue to weigh on sentiment. This week UK Manufacturing and Services PMI both beat expectations; however had little impact on the currency. We think the weakness in pound-rupee will continue and may fall below 99.00 as well. While euro fell below 1.12 as the greenback held strength ahead amid German IFO showed that business climate contracted for the fifth month. In rupee terms, next week EURINR is likely to fall towards 83.30.
USD/INR (DEC) contract closed at 74.5075 on 25-Nov-21. The contract made its high of 74.6200 on 23-Nov-21 and a low of 74.3375 on 24-Nov-21 (Weekly Basis). The 21-day Exponential Moving Average of the USD/INR is currently at 74.8835.
On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 56.75.One can buy at 75.00 for the target of 76.00 with the stop loss of 74.50.
GBP/INR (DEC) contract closed at 99.6500 on 25-Nov-21. The contract made its high of 100.5675 on 22-Nov-21 and a low of 99.6275 on 25-Nov-21 (Weekly Basis). The 21-day Exponential Moving Average of the GBP/INR is currently at 100.9651.
On the daily chart, GBP/INR has Relative Strength Index (14-day) value of 34.06. One can sell at 100.30 for a target of 99.30 with the stop loss of 100.80.
| 26th NOV | Southern African countries put on UK travel red list over Covid variant |
| 25th NOV | ECB expected to raise inflation forecast again |
| 25th NOV | UK seeks to counter China’s influence with new development investment arm |
| 25th NOV | Key US inflation measure posts biggest jump since 1990s |
| 24th NOV | US weekly jobless claims hit lowest level since 1969 |
| 24th NOV | Scholz to become German chancellor |
| 24th NOV | US braces for ‘fifth wave’ of Covid on eve of Thanksgiving |
| 23th NOV | Joe Biden nominates Jay Powell for second term as Fed chair |
| 22th NOV | UK minister rules out suspending N Ireland deal before Christmas |
EUR/INR (DEC) contract closed at 84.0150 on 25-Nov-21. The contract made its high of 84.4825 on 22-Nov-21 and a low of 83.8300 on 24-Nov-21 (Weekly Basis). The 21-day Exponential Moving Average of the EUR/INR is currently at 85.5365.
On the daily chart, EUR/INR has Relative Strength Index (14-day) value of 32.31. One can buy at 84.25 for a target of 85.25 with the stop loss of 83.75.
JPY/INR (DEC) contract closed at 64.9525 on 25-Nov-21. The contract made its high of 65.6050 on 22-Nov-21 and a low of 64.8950 on 25-Nov-21 (Weekly Basis). The 21-day Exponential Moving Average of the JPY/INR is currently at 65.7732.
On the daily chart, JPY/INR has Relative Strength Index (14-day) value of 49.70. One can buy at 65.75 for a target of 66.75 with the stop loss of 65.25.
Data analytics services provider Latent View Analytics saw huge buying interest from investors on listing day - November 22, thereby becoming the third biggest gainer amongst IPOs that listed at least since 2007. Latent View Analytics launched its IPO during November 10-12 and mopped up Rs 600 crore at a price of Rs 197 per share.
Leading polymer-based mill liners producer Tega Industries on November 25 has fixed a price band at Rs 443-453 per share for its maiden public offer. The issue will open on December 1 and will close on December 3, 2021. The company is planning to mop up Rs 619.22 crore through its public issue, at upper price band. The IPO is entirely an offer for sale (OFS) of 1,36,69,478 equity shares by selling shareholders including promoters. Promoters Madan Mohan Mohanka and Manish Mohanka, and investor Wagner will offload their some shareholding through IPO. As a result, the company will not receive any money from its IPO and all the funds will go to selling shareholders. Investors can bid for a minimum of 33 equity shares and in multiples of 33 shares thereafter. Retail investors can make a minimum investment of Rs 14,949 per lot and their maximum investment would be Rs 1,94,337 for 13 lots. Tega Industries is a leading manufacturer and distributor of specialised 'critical to operate' and recurring consumable products for the global mineral beneficiation, mining and bulk solids handling industry. It has product portfolio of more than 55 mineral processing and material handling products, backed by its six manufacturing sites, of which three in Dahej (Gujarat), Samali and Kalyani (West Bengal), and three sites in major mining hubs of Chile, South Africa and Australia.
The flurry of IPOs is expected to continue in the coming months as MedPlus Health Services, RateGain Travel Technologies and Puranik Builders are among the six companies that received approval from the capital markets regulator Sebi to launch their public offerings. The regulator has also approved IPO papers filed by Tracxn Technologies, Fusion Microfinance, and Prudent Corporate Advisory Services. RateGain Travel Technologies and Fusion Microfinance filed their draft red herring prospectus on August 18 and August 11, 2021, respectively, and received the approval on November 16. The regulator approved public issues of MedPlus Health Services and Tracxn Technologies on November 17, which had both filed draft papers on August 17 each. Prudent Corporate Advisory Services filed its DRHP on August 17 and received approval by Sebi on November 18. Puranik Builders refiled its papers on September 21, which was also approved. Hyderabad-based MedPlus Health Services, the second largest pharmacy retailer in India in terms of revenue and number of stores, is planning to raise Rs 1,638.71 crore via the IPO, which comprises a fresh issuance of equity shares worth Rs 600 crore and an offer for sale (OFS) of Rs 1,038.71 crore by promoter and existing shareholders including Lone Furrow Investments, and PI Opportunities Fund – I.
Jesons Industries, a leading manufacturer of specialty coating emulsions (SCE) and water-based pressure sensitive adhesives, has filed draft red herring prospectus to float its maiden public issue to raise Rs 800-900 crore. The initial public offering (IPO) comprises a fresh issuance of shares worth Rs 120 crore, and an offer-for-sale of more than 1.21 crore equity shares by promoter Dhiresh Shashikant Gosalia. The offer includes a reservation of 77,000 equity shares for Jasons employees, according to the papers filed with the national markets watchdog Securities and Exchange Board of India (Sebi). Mumbai-based Jesons may also consider a pre-IPO placement issue to raise Rs 24 crore. If the said placement is completed, the IPO size will be reduced accordingly, as per the prospectus. Market sources pegged the issue size in the range of Rs 800-900 crore. The proceeds from the fresh issue will be used to pare debts and in general corporate purposes. Jesons is now a 100 percent promoter-owned company. Promoter Dhiresh Shashikant Gosalia holds 86.53 percent stake in it, while the rest is with individual promoters like Madhavi Dhiresh Gosalia, Ravina Gaurav Shah and Jhelum Dhiresh Gosalia.
Elin Electronics Limited, a leading electronics manufacturing services company, has filed preliminary papers with capital markets regulator markets Sebi to raise Rs 760 crore through an initial share-sale. The initial public offering (IPO) comprising fresh issue of shares aggregating up to Rs 175 crore, and an offer for sale of up to Rs 585 crore by promoters and other selling shareholders, according to the draft red herring prospectus (DRHP). As a part of the OFS, existing shareholders will sell shares to the tune of Rs 345.60 crore and promoters will divest shares worth Rs 239.4 crore. Proceeds from the fresh issue will be used to the extent of Rs 80 crore to repay/prepay debt, Rs 48.97 crore for funding capital expenditure for upgrading and expansion of existing plants in Ghaziabad, Uttar Pradesh and Verna, Goa besides general corporate purposes. The Delhi-based Elin is a leading electronics manufacturing services (EMS) manufacturer of end-to end product solutions for major brands of lighting, fans, and small/ kitchen appliances in India, and leading fractional horsepower motors manufacturers in India.
Digital signature certificate provider eMudhra Ltd has filed preliminary papers with the capital markets regulator to raise funds through an initial share sale. The initial public offering (IPO) comprises fresh issuance of equity shares worth Rs 200 crore and an offer for sale of 85.1 lakh shares by promoters and existing shareholders, the draft red herring prospectus (DRHP) filed with Sebi showed. As a part of the OFS, promoters -- Venkatraman Srinivasan and Taarav Pte Ltd -- will offload 32.89 lakh and 31.91 lakh equity shares, respectively. In addition, Kaushik Srinivasan will divest 5.1 lakh equity shares, Lakshmi Kaushik 5.04 lakh shares, Arvind Srinivasan, 8.81 lakh shares and Aishwarya Arvind 1.33 lakh shares. eMudhra may consider fundraising of Rs 39 crore through a pre-IPO placement. If such placement is undertaken, the fresh issue size will be reduced. Proceeds from the fresh issue will be utilised to repay debt, support working capital requirements, purchase equipment and pay for other related costs for the data centre proposed to be set up in India and overseas locations, develop products, invest in eMudhra INC and for general corporate purposes.
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HDFC Asset Management Company has launched the New Fund Offer of HDFC Multi Cap Fund. The scheme will make mandatory allocation of minimum 25% of its total assets each in large, mid, and small cap companies, while the balance 25% of its total assets will be allocated based on market view of the fund manager. The NFO opens on November 23 and will close on December 7. According to a press release, HDFC Multi Cap Fund will follow a mix of top down and bottom up approach to stock selection. As per the current investment strategy, the scheme will invest 60%-75% of Total Assets in large and mid caps. Further, it will invest 25%-40% of total assets in small caps. The scheme will invest without a style bias and aims to capture opportunities across growth, value and turnaround companies.
Nippon India Mutual Fund launched the Nippon India Taiwan Equity Fund. The Fund will be India's first open ended equity scheme following a Taiwan focused theme. This fund will be advised by Cathay SITE, the largest Asset Manager in Taiwan with $42.8 Bn in AUM. The NFO will open for subscription on November 22 and will close on December 06. The Benchmark Index of the fund is Taiwan Capitalization Weighted Stock Index (TAIEX). The minimum investment required is Rs 500 and in multiples of Re 1 thereafter. The fund will be managed by Kinjal Desai.
Mirae Asset Mutual Fund has launched the ‘Mirae Asset Hang Seng TECH ETF’, an open-ended scheme replicating/tracking Hang Seng TECH Total Return Index and the ‘Mirae Asset Hang Seng TECH ETF Fund of Funds’, an open-ended fund of fund scheme predominantly investing in units of Mirae Asset Hang Seng TECH ETF. The NFO for both the funds will open for subscription on November 17. While the Mirae Asset Hang Seng TECH ETF will close on November 29, the Mirae Asset Hang Seng TECH ETF Fund of Fund will close on December 1. The minimum initial investment in both the schemes will be Rs 5,000 and multiples of Re 1 thereafter. The Mirae Asset Hang Seng TECH ETF will be managed by Siddharth Srivastava and the Mirae Asset Hang Seng TECH ETF Fund of Fund will be managed by Ekta Gala. The Mirae Asset Hang Seng TECH ETF Fund of Fund will also offer investors the options for a Regular Plan and Direct Plan with Growth Option.
ITI Mutual Fund has announced the launch of ‘ITI Banking and Financial Services Fund’. The NFO will be available for subscription till November 29. Minimum application amount is Rs 5,000 and in multiples of Rs. 1 thereafter. The fund will be jointly managed by Pradeep Gokhale and Pratibh Agarwal. This is the 15th fund launched by the AMC in two years of its existence. The fund will invest in banking and financial services which will include banks, insurance companies, rating agencies and new fintechs that are emerging among others. According to the press release, the current AUM of the fund house is Rs 2,239 crore as on 31st October, 2021. Out of the total AUM, equity AUM accounted for Rs 1,588 crore while hybrid and debt schemes accounted for Rs 319 crore and Rs 333 crore respectively.
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