In the week gone by, global stock markets witnessed volatile movements owing to multi-year high inflation, demand slowdown and tightening of monetary policy by central banks to tame inflation. In the Wall Street Journal event, Federal Reserve Chair Jerome Powell said that the bank wants to see inflation coming down in a convincing way and the bank would inch-up interest rates until it sees that. As a matter of fact, Fed has already raises rates by three quarters of a percentage point and is on course to raise half percentage-point increments in the next two meetings. Russian foreign ministry warned for consequences after Finland & Sweden formally applied for The North Atlantic Treaty Organization (NATO), a move that, if approved, would fundamentally transform the security landscape of Northern Europe. In Europe, new-vehicle sales shrank for a 10th month in a row and in UK inflation rose to its highest level seen 40 years ago, adding to pressure for action from the government and central bank. Japanese economy saw contraction in the first three months of the calendar year owing to contraction in consumer spending because of covid related restrictions. In China, retail sales and factory output shrank 11.1% and 2.9% respectively in the month of April from a year earlier as wide COVID-19 lockdowns confined workers and consumers to their homes and severely disrupted supply chains. Weak economic data out of China has led to downward revision of growth estimates to 4.1% from 5% from various economists. Chinese authorities in recent weeks told local governments to bring back the economy on track.
Back at home, markets are expecting Reserve Bank of India to go for more hikes sooner as consumer price inflation for the month of April came at 7.8% higher than the RBI’s upper tolerance level of 6%. According to the monetary policy committee minutes released RBI Governor Shashikanta Das said the off-cycle monetary policy actions were aimed at lowering inflation and anchoring inflation expectations with a view to strengthening the medium-term growth prospects of the economy and protecting the purchasing power of the weaker sections of society. LIC IPO listed at a discount at a time when markets were seeing selling pressure by foreign institutional investors. Going forward, market will witness a stock specific movement as we are going into the earning season. Besides, rupee movement, crude oil prices, inflow and outflow of foreign funds will dictate the trend of the markets.
On the commodity markets front, CRB faced the resistance of 336 and failed to sustain above this level on mixed triggers. After a fall of four week, bullion counter saw a pause in downside and some lower levels buying emerged even though upside was limited. Buying may continue in bullion counter and gold and silver may trade in a range of 49600-52000 and 59000-64000 levels. Oil prices have generally been rising as Russian supply is squeezed by bans from several countries and an economic downturn due to broad sanctions on Moscow imposed by the United States and allies. Russia's production dropped by 9% in April, and the country, part of the OPEC+ group, produced far below levels required under a deal to gradually ease record output cuts made during the worst of the pandemic in 2020. Crude can trade in a wide range of 8100- 9000. Ifo Business Climate, S&P Global Manufacturing PMI Flash and, GfK Consumer Confidence and GDP Growth Rate of Germany, S&P Global/CIPS Manufacturing PMI Flash of UK, RBNZ Press Conference of New Zealand, GDP Growth Rate of Mexico, Durable Goods Orders, FOMC Minutes, GDP Growth Rate, Core PCE Price Index, PCE Price Index and Michigan Consumer Sentiment Final etc are triggers scheduled for commodities in coming days.
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.
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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.
Huge capacity addition in the renewable energy space and improved PLF on the coal fired existing project auger well for the company. Joint venture with Energy Vault would help company to reduce its carbon emission significantly by utilizing coal ash for manufacturing of composite blocks. The country is facing power crisis and on this back drop, expansion of coal-based generation projects which otherwise was on hold would support the revenue growth of the company going forward. Thus, it is expected that the stock will see a price target of Rs.172 in 8 to 10 months’ time frame on a current P/Bv of 1.12x and FY23 BVPS of Rs.153.82.
The company's financial performance remains strong on account of healthy profitability and according to the management of the company, it will continue to focus on profitable execution of order book and leverage the strong growth momentum in identified fast recovering sectors. Also, the company is benefitting from business opportunities to render greater sustainability and efficiency in certain core sectors of energy, metals, railways & metro, and cement. Thus, it is expected that the stock will see a price target of Rs.2616 in 8 to 10 months’ time frame on a target P/BV of 10.80x and FY23 BVPS of Rs.242.22.
The stock closed at Rs 280 on 20th May, 2022. It made a 52- week low at Rs 200.90 on 09th July, 2021 and a 52-week high of Rs. 282.35on 20th May, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 234.42
Last week, the stock has tested its 52 week high of 282.35 and gave a fresh breakout on medium term charts. From the technical front, the stock is well placed above its short and long term moving averages and can be seen trading in rising channel with formation of higher high and higher bottom pattern. The rising volumes along with rise in price points towards long build up into the prices. On the short term charts, the stock has also witnessed a breakout above “Bullish Flag Pattern” Therefore, one can buy in the range of 278-275 levels for the upside target of 305-310 levels with SL below 260 levels.
The stock closed at Rs 684.55 on 20th May, 2022. It made a 52-week low of Rs 495 on 24th August, 2021 and a 52-week high of Rs. 813.95 on 09th Nov, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 620.86.
The Stock can be seen consolidating in broader range of 600- 700 from last few weeks. The stock is holding well above its 200 days exponential moving average on daily and weekly charts. At current juncture, the stock is on verge of fresh breakout after a prolong consolidation as positive divergences on secondary oscillators also points towards next up move in prices. On the short term charts, the stock has formed an “Inverted head & Shoulder pattern” and now is on verge of breakout above the neckline of the pattern formation. Therefore, one can buy in the range of 680-684 levels for the upside target of 765-770 levels with SL below 635 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
In the week gone by, bulls made a comeback after three weeks of consecutive losses as Indian markets rebound from its recent lows to end the week on positive note. Nifty surged nearly 3% while Bank nifty also witnessed gains of more than 3% over the week, on the back of short covering. From the derivative front, put writers held maximum open interest of more than 78 lakh shares in 16000 PE while call writers were seen shifting to higher bands with nominal open interest. Implied volatility (IV) of calls closed at 22.07% while that for put options, it closed at 22.79. The Nifty VIX for the week closed at 24.56%. PCR OI for the week closed at 0.66 lower than the previous week, which indicates more call writing than put writing during the week. Volatility gripped the Indian markets in the week gone by and same kind of moves is expected in upcoming week as well. However, technical indicators suggest further bounce back in index. The bias is likely to remain in favour of bulls as far Nifty holds above 16000 levels and Bank nifty above 34000 levels. On the higher side, 35000 for Bank nifty and 16500 levels for Nifty is likely to act as strong resistance level for index.
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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
Last week spices counter witnessed some resistance at higher levels due to
tepid demand from the bulk buyers. Turmeric (Jun) ended in red last week due
to lack of responsive buying by the market participants on balance supply
demand situation. It made firm support on the weekly charts near 7900 while
the resistance is at 8510 levels. The support is at 7900 levels while the
resistance is at 8510 levels. It is expected to trade sideways to higher, if it
sustains above 8500 levels. Currently, export demand is normal but is
expected to pick up. Turmeric prices have corrected about 9.7% in last one
month due to lower demand and sufficient supplies in the physical market.
Moreover, lower exports also weighing on prices. As per latest export figures,
turmeric exports in Feb 2022 were lower by 17% y/y at 10400 tonnes vs 12,575
tonnes while in FY 2021/22 (Apr-Feb), exports down 20% at 1.37 lakh tons
compared to last year but higher by 8.3% compared with 5-year average.
Jeera (Jun) broke the previous week high but faced resistance at higher levels
to close lower last week. The prices are expected to trade sideways to higher,
if it sustains above 22500 levels. The demand for cumin seed for exports will
improve after easing of supply chain disruption due to covid restrictions in
China. Currently, prices are higher by 54% y/y on lower crop estimates.
Traders expect jeera production in 2021/22 sharply lower at 5.0-6.0 mln bags
(1 bag = 55 kg) from 8.0-8.5 mln bags the previous year. As per govt data, jeera
exports in Feb 2022 down by 23.6% Y/Y at 14000 tonnes compared to 18300
tonnes while exports for FY 2021/22 (Apr-Feb) period is also down by 23% Y/Y
at 2.02 lt compared to 2.62 lt last year.
Dhaniya (May) traded within the previous week range but closed in red last
week. Some recovery from the lower levels has been witnessed and now the
support is at 11200 levels while the resistance is seen at 11930 levels. It is
expected that prices will trade sideways to higher towards 12350 levels, if it
sustains above 11700 levels. Prices are down 6% in last one month due to
slowdown in demand. The processors and traders are buying as per their
requirements as market prices are ruling higher by 58% y/y and up 27% since
January due to lower crop estimates. As per govt data, coriander exports in
Feb 2022 up 5.5% y/y at 3320 tonnes compared to 3150 tonnes last year while
for FY 2021/22 (Apr-Feb) export volume is down by 13.7% at 44,450 tonnes Vs
51,500 tonnes last year but 11% higher compared to 5-year average.
Gold poised for its first weekly gains since mid-April, as the dollar's pullback from two-decade highs and mounting concerns over US economic growth revived demand for safe-haven bullion. Prices of greenback-priced bullion have climbed about 1.9% this week, in tandem with what is set to be the dollar's first weekly loss in seven. Recession fears are now giving way to US growth fears, and the latter is helping gold, but said the US Federal Reserve's aggressive rate hike path and quantitative tightening would still be major down-drafts for gold. As bullion yields no interest, it can become less attractive to investors when short-term US interest rates are hiked. It is, however, seen as a safe store of value during times of economic crises. The US central bank will lift interest rates higher by the end of this year than anticipated just a month ago, keeping alive already-significant risks of a recession. An economic recession in the U.S. is now on the minds of traders and investors who were already saddled with other concerns, including the Russia-Ukraine war and Covid cases causing major cities in China to be on lockdown, which is disrupting global trade. Meanwhile, China cut its benchmark reference rate for mortgages by an unexpectedly wide margin on Friday, its second reduction this year as Beijing seeks to revive the ailing housing sector to prop up the economy. Ahead in the week, gold prices continued to trade in the range of 49800-51800 levels, where buying near support and sell near resistance is advised. On the flip side, silver may also witness positive move and range would be 59000-64000.
Crude oil prices traded in a wide range throughout the week where it took support near 8100 and faced resistance near 8900 levels. Market witnessed this kind of move amid concerns the surging inflation, and the associated monetary policy tightening will curtail retail spending, severely impacting future growth. Federal Reserve Chairman Jerome Powell warned earlier in week said that there could be some economic pain involved in bringing inflation down, and there were fresh signs that the U.S. economy is starting to cool down, as lay-offs hit a 10-week high and a closely watched survey of manufacturing activity took a sharp turn for the worse. The commercial hub of Shanghai has recorded a fourth consecutive day without any new infections outside the most locked-down areas, but restrictions won't be fully eased until early in June. It is pretty clear that with China’s COVID-zero policy, demand risks will continue to linger. Also weighing is the idea that the EU’s proposed sanctions package won’t in any case spell the total end of Russian exports to Europe, given the strong opposition from a number of eastern European countries, Hungary in particular, leaving European buyers having to cover a slightly less acute supply shortfall. Ahead in the week, crude oil may continue to witness both side movements where it may take support near 8400 and could face resistance near 9000. Natural gas traded higher as higher European prices keep U.S. LNG exports strong even though Europe has more gas in storage compared with normal than the United States. Ahead in the week prices may continue to trade higher where it may take support near 600 and face resistance near 690.
Base metals may trade with positive bias as easing COVID-19 restrictions in top metals consumer China lifted expectations of a recovery in demand while aggressive U.S. rate-hike bets and a batch of poor economic reading from major nations has led to slowdown concerns and may weigh on industrial metals demand. China cut its benchmark reference rate for mortgages by a bigger-than-expected margin at its May fixing, a second reduction this year, as Beijing is keen to revive credit demand to prop up the economy. The U.S. Federal Reserve will lift interest rates higher by the end of this year than anticipated just a month ago, keeping alive already-significant risks of a recession, a Reuters poll of economists found. Permits for future U.S. homebuilding tumbled to a five-month low in April, suggesting the housing market was slowing amid rising mortgage rates. Copper may trade in the range 760-795. According to the International Energy Agency, global copper demand for solar cells could triple by 2040, with demand potentially more than doubling to 600kt for wind power over the same timeframe. Aluminum may trade in the range of 235-260. Declining aluminium inventory across China and Indonesia’s banning of export bauxite are boosting SHFE aluminium prices. According to the customs data, China imported 6.768 million ton of bauxite from Indonesia in the first quarter of 2022, up 118% year-on-year. Zinc can trade in the range of 310-335 with positive bias. The global refined zinc market is expected to register a supply shortfall of 292,000 tonnes this year, according to the International Lead and Zinc Study Group. Lead can move in the range of 177-189.
Cotton (May) again reached all-time high of 50330 levels due to lower supplies
and persistent domestic demand from the textile industries. Prices have
corrected from higher levels as government hint on banning exports from the
country. Now it has the support at 48300 while resistance at 50330 levels. It is
expected that it will trade sideways in the range of support and resistance and
breakout in ay range will decide the trend. Currently, cotton prices in the
country is higher by more than 123% y/y and ruling at a premium to global
prices in view of production being lower than last year, rising demand and nonavailability
of quality cotton. In its May 2022 monthly report, USDA cut global
cotton production for 2021/22 by 1.8 million bales from last month, largely
due to a drop of 1.0 million bales from India. As per CAI, domestic cotton
arrivals down 17% or 58.88 lakh bales to 277.49 lakh bales compared to 336.37
lakh bales last year and also cut cotton production forecast by 11.50 lakh bales
in May to 323.63 lakh bales compared to 335.13 lakh bales.
Guar seed (Jun) closed in red last week and traded within the range of
pervious week’s range due to balanced supply and demand conditions. Now
support is seen at 5900 levels while the resistance is at 6150 and is likely to
trade sideways to lower towards 5700, if it sustains below the support levels.
Currently, the prices are higher by about 39% y/y due to lower production,
multi-year lower stocks and good export demand. The US oil rig count is also
higher at 563 up by about 211 as compared to last year. In Mar 2022, Guar gum
exports are higher by 9.4% y/y at 26377 tonnes while exports in 2021/22 up by
39% y/y at 3.21 lt compared 2.34 lt last FY. Guargum exports were down about
20% in last FY compared to previous five-year average of 4 lt exports.
Last week, Castor seed (Jun) climbed to fresh all-time high of 7658 levels and
traded positively for the second consecutive week. Now the support is near 7420
levels while resistance is at 7670 levels. It is expected to trade in a range but
sustain above resistance may take pries higher towards 8000 levels. Currently,
prices are very responsive at lower levels on improving industrial demand and
jumped 28% this year while about 47.5% higher on year due to lower production
estimates. The demand-supply balance sheet remains tight as estimated. As per
SEA, castor meal exports are down 7.7% y/y at 25758 tonnes in Apr 2022, while
overall exports in first 4-months in 2022 also lower by 4.4% at 1.26 lt vs 1.31 lt due
to higher export prices by 95% y/y at $141 per ton compared to $72 last year.
Despite higher prices, the exports have not much affected. Castor oil exports in
FY201/22 down 4.5% at 6.55 lakh tonnes due to 30% increase in export prices this
season. Exports are down 17% y/y to 1.4 lt during Jan-Mar period.
LEAD MCX (JUN)contract closed at Rs. 179.65 on 19th May 2022. The contract made its high of Rs. 191.20 on 22nd Apr’2022 and a low of Rs. 178.35 on 19th May’2022. The 18- day Exponential Moving Average of the commodity is currently at Rs 183.35. On the daily chart, the commodity has Relative Strength Index (14-day) value of 42.707.
One can buy near Rs. 178 for a target of Rs. 190 with the stop loss of 172.
ZINC MCX (JUN)contract was closed at Rs. 319.15 on 19th May’2022. The contract made its high of Rs. 370.80 on 22nd Apr’2022 and a low of Rs. 300.10 on 13th May’2022. The 18- day Exponential Moving Average of the commodity is currently at Rs. 322.97. On the daily chart, the commodity has Relative Strength Index (14-day) value of 46.538.
One can buy near Rs. 315 for a target of Rs. 330 with the stop loss of Rs 308.
GUARSEED NCDEX (JUN)contract closed at Rs. 11594.00 on 19th May’2022. The contract made its high of Rs. 13554.00 on 06th Apr’2022 and a low of Rs. 11422.00 on 10th May’2022. The 18-day Exponential Moving Average of the commodity is currently at Rs. 11920.12. On the daily chart, the commodity has Relative Strength Index (14-day) value of 40.534.
One can buy near Rs. 11600 for a target of Rs. 12200 with the stop loss of Rs. 11300.
CRB faced the resistance of 336 levels and failed to sustain above this level on mixed triggers. After a fall of four week, bullion counter saw a pause in downside and some lower levels buying emerged though upside was limited. Fall in dollar index and US treasury yield supported the lower levels buying. Gold rose slightly as a retreat in U.S. Treasury yields offset headwinds from a relatively firm dollar, which, along with looming interest rate hikes, earlier pushed bullion to a more than three-and-a-half-month low. Silver has found itself caught up in the broader sell-off in equities and gold, being punished for being an industrial metal at a time when growth forecasts are being trimmed. In the energy counter, natural gas prices augmented while crude prices depreciated from higher levels. After hitting seven-week highs, oil prices slumped 2% as Reuters reported that the United States could ease some restrictions on Venezuela's government, raising hopes that the market could see some additional supplies. Prices also fell after Federal Reserve Chairman Jerome Powell warned the economy could be hurt by attempts to reduce inflation. Powell suggested there could be some economic pain involved in bringing inflation down. Concerns are growing that tighter monetary policies from the U.S. Federal Reserve and other global central banks could impact economic growth. With the Federal Reserve focused on taming inflation via rate hikes and a shrinking balance sheet beginning in June, bond managers have been adding long-dated Treasuries to their portfolios to take advantage of a flattening yield curve and also as a form of insurance should risk assets fall further. China is expected to cut benchmark lending rates at its monthly fixing on Friday, a second reduction this year, a Reuters survey showed, as it seeks to prop up credit demand to cushion an economic slowdown due to COVID-19 disruptions. The loan prime rate (LPR), which banks normally charges their best clients, is set on the 20th of each month, when 18 designated commercial banks submit their proposed rates to the People's Bank of China. In base metals, aluminum, zinc and copper appreciated while nickel and lead remained traded weak. Aluminium inventories in the LME warehouses, already at their lowest in nearly 17 years, are likely to fall further over coming days and weeks, as more metal leaves the LME system and heads for Europe where supplies are scarce.
Agri mostly traded in red. Astor continued its uptrend on improving industrial demand. Castor seed prices have jumped 27% this year while about 47% higher on year due to lower production estimates. Guar counter was down on dull export demand. Spices counter slipped due to selling at higher prices by market participants.
Since Russia invaded Ukraine on Feb. 24, many countries have implemented several rounds of sanctions on Moscow to increase economic pressure the Russia. Australia, Britain, Canada and the United States have imposed complete bans on Russian oil purchases, while Group of Seven (G7) nations, including Japan, committed to ban or phase out imports of Russian oil by the end of the year. But due to high dependency on Russian oil & gas, the 27-nation European bloc had not sanctioned immediately on import of oil & gas from Russia. Now the European Commission has also decided to join team. The bloc had proposed the ban on Russian oil imports on May 4.
The European Union, however, has not been able to agree on the ban so far, mainly due to opposition from landlocked member states heavily dependent on Russian supplies, such as Hungary. In April, the block accounted for 43% of Russia's oil exports, down from around 50% at the start of the year, according to the International Energy Agency (IEA).
Countries buying Russian oil
Global energy prices are likely to surge once the Russian oil embargo is implemented and all 27 EU governments are not agree to the proposed ban. This situation could penalize consumers already struggling with inflation and ultimately derail the economic recovery from the pandemic.
The Indian Rupee continued to reverses its losses from the latest life-time low after deep intervention from RBI to offload dollars as well as aggressive exporters hedging at a time when forward premia is yielding better carry. Additionally India's benchmark 10-Y yield gradually heading higher in anticipation of frontloading rate hike from RBI in coming June meeting. Inevitably expectations of 40-50 bps hikes in June are keeping the rupee stable relative to its Asian peers. On technical ground breach below 77.43 on spot will drift the pair to 77.00 as well as resistance now placed at 77.95 on weekly basis. Meanwhile dollar index extended losses after yesterday's weekly US Initial Jobless claims came in at 218K which is above the 200K expected with prior week revised down to 197. The Philly Fed Business Outlook Index for May came in at 2.6, much less than the estimates of 15 and much lower than April's 17.6 which casted doubt over Fed’s rate hike path. Additionally the Fed warns of an aggressive hiking path, saying that the central bank could raise rates above the neutral rate. This could come at a cost to the economy, vowing to push until inflation falls. Going forward we think EURINR has scope to rise towards 82.60 while GBPINR may hit 97.30 as well in the wake of a weaker dollar mode.
USD/INR (MAY)contract closed at 77.6925 on 19-May-22. The contract made its high of 77.8800 on 17-May-22 and a low of 77.5200 on 17-May-22 (Weekly Basis). The 21-day Exponential Moving Average of the USD/INR is currently at 77.1212.
On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 64.24.One can buy at 77.25 for the target of 78.25 with the stop loss of 76.75.
GBP/INR (MAY) contract closed at 96.4625 on 19-May-22. The contract made its high of 98.3000 on 18-May-22 and a low of 94.5900 on 17-April-22 (Weekly Basis). The 21-day Exponential Moving Average of the GBP/INR is currently at 96.6860.
On the daily chart, GBP/INR has Relative Strength Index (14-day) value of 46.22. One can sell at 97.00 for a target of 96.00 with the stop loss of 97.50.
| 20th MAY | Japan Inflation Rate Hits 7-1/2-Year High |
| 20th MAY | China cuts mortgage lending rate by record as lockdowns hit economy |
| 19th MAY | Sri Lanka becomes first Asia-Pacific country in decades to default on foreign debt |
| 18th MAY | Euro zone April final inflation +7.4% vs +7.5% y/y prelim |
| 18th MAY | UK annualized inflation jumps 9% in April vs. 9.1% expected |
| 17th MAY | Powell says the Fed will not hesitate to keep raising rates until inflation comes down |
| 17th MAY | India's April wholesale inflation surges to 15.08%, up from 14.55% in March |
| 17th MAY | Retail sales in the US increased 0.9% mom in April of 2022 |
| 17th MAY | The unemployment rate in the UK edged down to the lowest reading since 1974 |
EUR/INR (MAY) contract closed at 81.7925 on 19-May-22. The contract made its high of 81.9000 on 19-May-22 and a low of 81.1200 on 17-May-22 (Weekly Basis). The 21-day Exponential Moving Average of the EUR/INR is currently at 81.8345.
On the daily chart, EUR/INR has Relative Strength Index (14-day) value of 50.52. One can buy at 81.80 for a target of 82.80 with the stop loss of 81.30.
JPY/INR (MAY)contract closed at 60.8450 on 19-May-22. The contract made its high of 60.9775 on 19- May-22 and a low of 59.9800 on 17-May-22 (Weekly Basis). The 21-day Exponential Moving Average of the JPY/INR is currently at 60.2038.
On the daily chart, JPY/INR has Relative Strength Index (14-day) value of 28.09. One can sell at 59.50 for a target of 58.50 with the stop loss of 60.00.
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The Net Proceeds from the Fresh Issue are proposed to be utilized by the Company for the following objects:
Venus Pipes & Tubes Limited is a manufacturer and exporter of stainless steel pipes and tubes. The company is manufacturing stainless steel tube products in two broad categories - seamless tubes/pipes and welded tubes/pipes under which five categories of products are manufactured namely, stainless steel high precision & heat exchanger tubes, stainless steel hydraulic & instrumentation tubes, stainless steel seamless pipes, stainless steel welded pipes and stainless steel box pipes. Venus Pipes & Tubes Limited has one manufacturing plant which is located at Bhuj- Bhachau highway, Dhaneti (Kutch, Gujarat) with an installed capacity of 10,800 MT per annum. The company sells products in both domestic and international markets. Venus Pipes & Tubes exports its products to 18 countries including Brazil, the UK, Israel and countries in the European Union, etc.
Largest licensed Certifying Authority in India: The company is the largest licensed Certifying Authority in India with a market share of 37.9% in the digital signature certificate market space in Financial Year 2021 having grown from 36.5% in Financial Year 2020. The Company is the only Indian company to be directly recognized by renowned browsers and document processing software companies such as Microsoft, Mozilla, Apple and Adobe, allowing it to sell digital identities to individual/organization and issue SSL/TLS certificates for website authentication, globally. The company is one of the largest players in the Indian Digital Trust Services market with a market share of 17.8% and enjoy 19.0% market share in the Digital Transformation Solutions market in India for Financial Year 2021.
A one stop shop solution provider in secure digital transformation and wellpositioned to capture the favourable industry dynamics in India and globally: Digital Identity and Trust is foundational to the growth of enterprises in the era of digital transformation as it enables enterprises to create frictionless user experiences that are both simple and secure. Enterprises are under ever-increasing competitive pressure to deliver personalized and seamless omni-channel experiences and also focus on secure digital identity and transaction management as a key strategic initiative to provide distinguished experiences. eMudhra, with a view of capitalising this opportunity ventured into the business of providing Enterprise Solutions in the year 2012 to customers engaged in different industries. The company has been able to build on its expertise to expand rapidly into international markets such as the Middle East where they have managed to acquire 28 users of emSigner and 9 users of emCA as of December 31, 2021.
Technology certifications, accreditations and membership in international bodies: The company is a registered certifying authority with the Controller of Certifying Authorities and are the only Indian company to be admitted as a member of European Cloud Signature Consortium as well as Certifying Authority/ Browser Forum, a global forum that governs the use of SSL/TLS certificates. The company has obtained a variety of accreditations, security/compliance certifications which the company maintain on an ongoing basis for example, Webtrust Accreditation to provide services as a public certifying authority globally and list its digital signature certificate roots with renowned browsers.
Diverse, longstanding and growing customer base: eMudhra services marquee customers through their Digital Trust Services and Enterprise Solutions and has been able to form a portfolio of renowned customers in private as well as in public sectors, including, Infosys, Hindalco Industries, Mashreq Bank, Baud Telecom Company, Cholamandalam MS General Insurance Company Limited, Thales DIS CPL India Private Limited, Larsen & Toubro Infotech, DB Schenker, JSW Steel, Bharti AXA Life Insurance Company Limited and TATA Consultancy Services. The company works closely with large government and banking customers, 20+ public and private sector banks and state governments. As of Dec 31, 2021, the enterprise solutions of the company were used by 10 out of top 10 banks, 6 of top 10 automotive companies and 19 out of top 20 companies amongst the top 500 ranked companies in India by Economic Times in Financial Year 2020.
Partnerships with leading Indian and global channel partners and enterprise solution partners: Most of its Products are used in the transportation of highly corrosive fluids, requiring production in compliance with applicable quality standards. Due to their application in highly corrosive environment, these Products slowly corrode throughout their alculated design life. After the designed service life of a particular piping bundle of any project is over, it is essential to replace the entire piping with new pipes.
Capitalize on industry opportunities: To capture the opportunities arising out of data security initiatives, the changing regulatory requirements and the growing demand for data privacy, data protection and digital transformation, eMudhra is proposing to further penetrate the domestic and international market and further expand and diversify its customer base to cater to diverse industries through expansion of its channel partner and enterprise solution partner network, enabling more customers to buy directly through online channels and continuous innovation in solutions related to their industry.
Leveraging the existing data centre infrastructure and setting up new data centres in overseas locations: The Company’s customers use its data centers and digital solutions to access business systems and store data concerning, among other things, its employees, contractors, partners and customers. With the growing need of digital signature services in the Indian and international markets, eMudhra proposes to invest in leveraging its existing data center infrastructure and setting up new data centers. As part of its strategic initiatives, it proposes to set up additional data centers in India and various overseas locations to support its technological infrastructure and its plan of venturing into foreign jurisdictions for future growth.
Enhance solution offerings to tap growing needs of digital transformation: Adoption of digital identity, security and paperless transformation solutions are now forming part of strategic initiatives for global enterprises to meet the increasing need for personalized and omni-channel experiences. eMudhra has been working relentlessly with several large and small businesses to build seamless digital and paperless experiences with their clients without compromising on security by leveraging most advanced technologies in AI, ML and Automation. eMudhra has constantly invested into augmenting product capabilities to build itself as a ‘one stop shop’ player in digital transformation, innovating and developing new products in the areas of identity management, authentication and authorization or digital signatures for their customers and plan to continuously invest in their R&D team and resources to consistently develop new and diverse products around cyber security and digital transformation.
Expand share of revenues among existing customers and broaden the partner network and customer base: eMudhra presently caters to customers operating in various industries such as banking, eGovernment, automotive, information technology, consumer durables, etc. and propose to enhance its presence in various other industries such as manufacturing, logistics, healthcare etc. it also intends to cater to new age industries which are significantly more dependent upon an enhanced cyber security framework and would therefore require its trust and digital signature services on a regular basis. These include Electric Vehicle space and Smart Cities where devices connected to the internet need to be identified and authenticated securely. The company also plans to continue to expand its channel and enterprise solution partner network while also deepening its partnerships with existing partners.
The company is largest licensed Certifying Authority in India. The distribution reach and selling capabilities of its extensive partner network will continue to drive the company's business growth and provide it with the competitive advantage in the market as well as serve as a barrier to entry for new entrants. Investors may consider an investment with a long term perspective.
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