In the week gone by, global market looked cautious as data showed a higher-than- expected rise in producer prices in January and a fall in jobless claims, signaling the Fed could stick with its high-rate regime. Headline US CPI came in at 6.4% yearon- year for January, a bit higher than the 6.2% economists had expected. Investors also were unnerved by comments from Cleveland Federal Reserve president Loretta Mester about inflation and the economy. The Fed is seen pushing the benchmark rate above the 5% mark by May and keeping it above those levels till the year-end. Meanwhile, European stock markets moved, as investors assessed the strength of the global market while digesting a deluge of mostly healthy corporate earnings. On Wednesday, European Central Bank President Christine Lagarde made it clear that another interest rate hike of 50 basis points was coming next month. However, the Eurozone economy has also surprised with its durability in the face of aggressive monetary tightening, and the European Commission earlier this week lifted its economic forecasts, adding the bloc will likely dodge a recession this year.
Back at home, domestic market witnessed volatile movement tracking weak global cues in the wake of renewed worry over the prospect of more rate hikes by the US Federal Reserve. In another development, the government has cut windfall profit tax on export of diesel and ATF to their lowest while also reducing the levy on domestically-produced crude in line with softening international oil prices. India's retail inflation breached RBI's upper tolerance limit to reach a 3-month high of 6.52% in January due to soaring food prices. India's current account deficit is now seen falling below $100 billion for 2022-23 after two powerful factors moved in tandem in January. Last month, India's goods exports contracted again, this time by 6.6 percent on a year-on-year basis to $32.9 billion, while imports also fell. Going forward, Investors will watch Fed officials for more hints on the central bank’s rate-hiking campaign. With inflation levels once again inching up, there are concerns that central banks worldwide could continue their rate hiking trend, which could further hurt growth and dampen sentiment.
On the commodity market front, CRB closed with marginal loss due to three week continuous rebound in dollar index, which closed above 104.25. For the same reason gold fell for nonstop from last three week; from the high of $1966 to $1828. Silver slipped for fifth week in a row. The dollar surged overnight as Fed officials James Bullard and Loretta Mester both talked up more interest rate hikes by the central bank. The dollar and Treasury yields shot up after their comments, with investors piling into the greenback on the prospect of better and safer returns. This pulled a bulk of flows away from gold markets. Gold and silver are expected to trade with negative bias in a range of 55000-56200 and 63000-67500 respectively. Oil prices have seesawed over the past weeks between fears of a recession hitting the United States amid inflation-fighting rate hikes and hopes for a pick-up in demand in China, the world's top oil importer. Crude can see a range trade between 6100-6600. ZEW Economic Sentiment Index of Euro Area and Germany, Core Inflation Rate and Inflation Rate of Canada, RBNZ Press Conference, FOMC Minutes, Core PCE Price Index, PCE Price Index, Michigan Consumer Sentiment Final and GDP Growth Rate of US, Inflation Rate of Japan, Core inflation rate of Euro Area, GDP Growth Rate and GfK Consumer Confidence of Germany, GDP of Mexico etc are some very important triggers for the 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.
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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 maintained strong leadership position in various segment and delived strong operational performance in the last couple of quarter with improved profit margin. Robust product portfolio with new launches receiving positive response from the customer getting reflected in the open order booking indicates growth visibility. During the quarter operating margins improved by 130 basis points YoY led by operating efficiencies and our focus on fiscal discipline auger well for the company. Thus, it is expected that the stock will see a price target of Rs. 1527 in 8 to 10 months’ time frame on one year average P/BVx of 3.59x and FY24 BVPS of Rs.425.
The company has continued its strong growth momentum with highest ever turnover and profitability during the quarter under review with both delivering over 40% increase over the corresponding quarter of last year. The company foray into new segments, such as energy-efficient API turbines for Oil & Gas industry and turbines between 30.1-100 MW, will help widen the net of addressable market. The company is well equipped to expand fast into these new emerging markets, even as it continues to push the frontiers of growth in existing markets. Thus, it is expected that the stock will see a price target of Rs.346 in 8 to 10 months’ time frame on current P/BV of 10.35x and FY23 BVPS of Rs.33.40.
The stock closed at Rs 3231.65 on 17th February, 2023. It made a 52-week low of Rs 2883.25 on 27th October, 2022 and a 52-week high of Rs. 3750 on 07th Apr, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs3119.
Stock has recovered steadily form it’s recent lows with formation of rounding bottom pattern on short term charts as prices once again caught a momentum above its 200 days exponential moving average. On broader charts stock has formed Cup & Handle pattern and managed to give breakout above the same. The momentum is likely to carry in upcoming sessions as well after a breakout. Therefore, one can buy stock in the range of 3220-3225 levels for the upside target of 3520-3545 levels with SL below 3050 levels.
The stock closed at Rs 2318 on 17th February, 2023. It made a 52-week low of Rs 2002.20 on 06th July, 2022 and a 52-week high of Rs.2865 on 14th Sept, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 2364.
Stock has been beaten down sharply in last six months as prices have slipped back towards 2100 level from 2800 levels. However, stock has managed to take support around 2100 levels once again, as prices can be seen rebounding after forming triple bottom pattern on daily charts. At current juncture stock has given a fresh breakout above the falling trend line of long term descending channel. The momentum is likely to continue towards north in upcoming sessions as well. Therefore, one can buy stock in the range of 2310-2300 levels for the upside target of 2650-2700 levels with SL below 2075 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 remained volatile in the week gone by, as Nifty ended in green zone, while Banking index settled the week with loss of nearly 1% on the back of weak global cues. Selling pressure was seen mounting in later part of the week, after a fresh slate of U.S. economic data, underscoring bets, that the Federal Reserve would keep interest rates higher for longer. On the sectorial front, buying interest was seen in Infra and IT stocks, hile banking and pharma counter remained under pressure. From the derivative front, ifty’s highest call open interest concentration was seen at 18000 strike, followed by 18100 strike while on put side, highest concentration was in open interest held at 17500 and 17800 strike respectively. Overall data suggest that call writers are more aggressive as of now, resulting into low PCR in nifty, which currently stands at 0.89. The Implied volatility (IV) of calls closed at 10.89% while that for put options, it closed at 11.57%. The Nifty VIX for the week closed at 12.89%. Technically, nifty is struggling to catch fresh momentum above its key resistance level of 18100 while Bank Nifty has a strong hurdle zone around 41800-42000 zone. For the upcoming week, we expect that markets are likely to remain in range once again with Nifty holding strong support at 17700-17600 zone.
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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 NCDEX Apr is expected to extend its downtrend due to muted demand at physical market. Supplies have improved inNizamabad market ofTelangana as about 7000-8000 bags were reported on daily average basis during last week. Weather conditions are looking supportive for harvesting activities that will lead to rise in arrivals further.Arrivals in Maharashtra andAP are also likely to pick up that will put prices under pressure. However, prices are likely to find support very soon near 6700 as farmers in Telangana are doing protest against the government’s agricultural policies towards turmeric and they can hold their arrivals on excessive fall in prices. Farmers are demanding for setting up MSP on turmeric in orderto get better prices.About 9.8 thousand tonnes of arrivals were reported in first 15 days of Feb’23 compared to 19 thousand tonnes of previous year.TurmericApr contractis likely to trade in range of 6700-7500.
Jeera NCDEX Mar futures are likely to remain under pressure due to sluggish buying. Millers are avoiding bulk buying in wake of new crop ahead. Yield prospects have improved in Rajasthan due to favorable weather condition. Jeera export dropped 22% Y-o-Y to 1.78 lakh tonnes in year 2022 due to fall in imports in China. China imported only 37.9 thousand tonnes in year 2022 as compared to 62.8 thousand tonnes of previous year. Jeera prices are likely to trade in range of 29000-33000.
Dhaniya NCDEX Apr prices are expected to trade on weaker note due to improved supply prospects for upcoming season. Demand has been subdued as major buyers and spices millers are avoiding bulk buying with rising supplies of new arrivals in major mandies. Total production of dhnaiya was estimated at 8 lakh tonnes in year 2021-22 and expected to increase up to 9.5 lakh tonnes in year 2022-23 due to better yield prospects amid higher acreages. Dhaniya NCDEX Apr Prices are likely to trade in range of 6700-7700.
Gold witnessed third straight weekly drop, as investors fretted about more rate hikes by the U.S. Federal Reserve after a slew of strong economic data. Gold prices slid to the lowestlevel since early January. Bullion has fallen about 2% last week. Data showing stronger U.S. retail sales and high consumer prices “seems to be fuelling a reassessment... markets think the Fed will go into a more hawkish setting, and thatis very bad for gold. Real interestrates have rebounded against this backdrop, so non-yielding gold has been down. Several Fed officials echoed that the monetary policy needed to remain tight to bring inflation down to the central bank’s 2% target. Two Fed officials said on Thursday the U.S. central bank likely should have lifted interest rates more than it did early this month. U.S. monthly producer prices rebounded 0.7% last month. Meanwhile, the number of Americans filing new claims for unemployment benefits slipped to 194,000 for the latest week. Money markets now expect benchmark rates to rise above 5% by May and stay at those levels through the year. The dollar index surged to a sixweek high. Benchmark 10-year Treasury yields hit their highest since late December. On COMEX, gold prices trading near its support $1820 sustains below this levels will push prices to $1780, and major resistance is seen near $1860 levels. Silver also looks bearish on the COMEX charts and may continue to witness selling pressure and the possible trading range would be $19.800-$22.800.Ahead in the week prices on MCX likely to witness selling pressure where Gold may take support near 54000 and could face resistance 57500 whereas silver may trade in the range of 60500 and could face resistance near 68200 levels.
Crude oil prices were on track for weekly losses as strong U.S. economic data heightened concern thatthe Federal Reserve will continue tight monetary policy to tackle inflation, which could hit fuel demand even as crude stockpiles grow. Strong U.S. data bolstered concerns over rate hikes and prompted a rise in U.S. Treasury yields, which weighed on oil and other commodity prices. EIA reported U.S. crude oil stockpiles last week rose to their highest level since June 2021 after a larger-than-expected build.Oil prices have seesawed overthe past weeks between fears of a recession hitting the United States amid inflation-fighting rate hikes and hopes for a pick-up in demand in China, the world’s top oil importer. The IEA said that China will make up nearly half of this year’s oil demand growth after it relaxed its Covid-19 curbs, but restrained production by OPEC+ countries could mean a supply deficit in the second half. Saudi Energy Minister Prince Abdulaziz bin Salman said the current OPEC+ deal to cut oil production targets by 2 million barrels per day would be locked in untilthe end of the year, adding he remained cautious on Chinese demand. Ahead in the week, prices may continue to trade with bearish bias and may take support near 6200 and could face resistance near 6700. Natural Gas witness continuous selling pressure throughout the week amid consistently high supply and low demand. Looking ahead, early estimates submitted to Reuters forthe week ending Feb. 17 spanned pulls of 42 Bcf to 111 Bcf, with an average decrease of 71 Bcf. Ahead in the week prices may continue to trade with bearish bias and may take support near 175 levels and resistance near 220 levels.
In base metals, copper ignored the super quick upside in dollar index and traded with some positive sentiments as investors looked at demand revival from the top metals consumer China. Rest of the commodities closed in red territory as recent Fed indicated for further hike. The dollar index firmed after US PPI for January came in higher than expected and jobless claims fell. A stronger dollar usually undermines commodities priced in the currency, making them more expensive for buyers using other currencies. The dismantling of strict COVID-19 controls in China last month sent copper surging to a seven month peak.Investors took heart on Thursday from data showing China’s new home prices rose in January for the first time in a year. The property sector accounts for significant metals demand. Hedge funds created short positions in zinc and aluminium as per reports. According to Marex estimated, the LME net speculative short position in aluminium was the largest since early October while the short positions in zinc was the largest since July last year. Ahead in the week, copper prices may witness both side movements and the possible trading range would be 750-795 levels. Hope for a recovery in Chinese demand grew as a build-up in metals stocks slowed in the previous week.AluminiumAL-STX-SGH inventories in warehouses monitored by the Shanghai Futures Exchange at 268,984 tonnes are up about 180% since end-December. However, a jump in new bank loans in China to a record 4.9 trillion yuan ($720.21 billion)last month, suggesting the country's central bank is looking to kickstart growth after the lifting of COVID controls. Ahead in the week aluminium may trade in the range of 200-225. Lead may trade in the range of 172-186 with sideways to bearish bias. Zinc may trade in the range of 255-280.
Cotton/Kapas prices are expected to trade down due to sluggish demand. More cotton farmers holding on to their produce has triggered speculation over the actual production of cotton this season. In wake of sharp jump in acreages and arrivals trend of previous year, arrivals number is looking doubtful in year 2022-23 and there is chance that actual crop number may be higher than the estimates made by the Centre and various other stakeholders. The Cotton Association of India (CAI has lowered its estimates of cotton crop production further to 321.50 lakh bales (170 kgs) for the current season (October 2022-September 2023) from 330.50 lakh bales projected last month. The lower estimate comes along with the Ministry of Agriculture lowering its cotton crop estimated to 337.23 lakh bale. Due to subdued demand and higher stocks Kapas Apr NCDEX prices are expected to slip towards 1570 level in coming weeks wherein MCX cotton may drop towards 62000 level.
Cotton seed oil cake NCDEX Mar futures are likely to trade down due to demand concerns. Seasonal demand for cotton seed oil cake is noted down in March – Apr that may keep buying activities subdued at prevailing levels. Apart from that, commencement of mustard arrivals will also impact market sentiments down for cotton seed oil cake. Mustard seed oil cake is used as substitute of cotton seed oil cake in northern part of India. Prices are likely to trade in range of 2600-2850.
Guar seed Mar futures are expected to trade on weaker note due to limited buying in local market. Season export demand of gum is likely to be limited in March that will keep major buyers away from bulk buying of guar. However, losses are looking limited in guar due to reduced supply in local market. Arrivals have also dropped at major trading centers as farmers are holding in expectation of further rise in prices. Guar gum exports from India witnessed robust growth in year 2022 as India exported 408 thousand tonnes of guar in for of gum and meal , higher by 32.5% y-o-Y . Technically, Guar seed prices will honor the support of 5700 and will honor the resistance of 6300 in near term. Similarly, Guar gum prices are likely to trade in range of 11500-14000.
Mentha oil Feb contract is likely to trade down due to weaker demand at local market. Major focus will be on upcoming sowing numbers as sowing is likely to commence in western UP afterthe harvest ofrabi crop. Supplies have been tighter duetooffseasonperiodofarrivals.Pricesarelikelytotradeinrangeof980-1030.
Castor seed Mar prices are likely to trade down due to improve supplies with advancement of harvesting activities. Sluggish export demand is still a major concern for castor oil traders as domestic stocks are surging up with fall in export. Castor oil export has slumped 16% Y-o-Y to 581 thousand tonnes in year 2022 against 689 thousand tonnes of previous year. Meanwhile, government increased its production estimates for castor seed in year 2023 up to 18.82 lakh tonnes higher by 12% Y-o-Y. Going forward, castor seed prices are likely to trade in range of 6400-7100.
It closed at Rs. 777.50 on 16th Feb 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 770.64. On the daily chart, the commodity has Relative Strength Index (14-day) value of 54.55. Based on both indicators, it is giving a sell signal.
One can sell near Rs.777 for a target of Rs. 752 with the stop loss of 787
It closed at Rs. 6539.00 on 16th Feb 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 6486.93. On the daily chart, the commodity has Relative Strength Index (14-day) value of 46.697. Based on both indicators, it is giving a sell signal.
One can sell near Rs. 6550 for a target of Rs. 6000 with the stop loss of 6730.
It closed at Rs. 6800.00 on 16th Feb 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 6967.15 On the daily chart, the commodity has Relative Strength Index (14-day) value of 32.880. Based on both indicators, it is giving a sell signal.
One can sell near Rs. 6850 for a target of Rs. 6600 with the stop loss of 6950.
NOTE: *M.High / M.Low stands for Monthly High / Monthly Low
CRB closed with marginal loss due to three week continuous rebound in dollar index, which closed above 104.25. The dollar surged overnight as Fed officials James Bullard and Loretta Mester both talked up more interest rate hikes by the central bank. For the same reason gold fell for nonstop from last three week; from the high of $1966 to $1828. The dollar and Treasury yields shot up after their comments, with investors piling into the greenback on the prospect of better and safer returns. This pulled a bulk of flows away from gold markets. The prospect of rising U.S. interest rates bodes poorly for non-yielding assets like gold, as it drives up their opportunity cost. Silver slipped for fifth week in a row. On MCX, INR limited the downside but still, prices came down to 55880 from the record high of 2023; 58826. Fall was sharp in silver and I closed near 65000. Despite the higher side in dollar index, copper prices strengthened further. A deepening dispute between the Panama government and foreign copper miners also threatened to suspend the country’s copper exports, which could limit supply and push up prices. Aluminum, lead and zinc prices saw pressure. Economic data from China has been somewhat middling, even after the country relaxed most anti-COVID measures earlier this year. In energy counter, natural gas struggled to find the bottom whereas crude oil failed to break the resistance of 6660. Crude oil closed the week in red as strong U.S. economic data heightened concerns that the Federal Reserve would further tighten monetary policy to tackle inflation, a move that could hit fuel demand even as crude stockpiles grow. Natural gas broke 200 levels after the U.S. government said inventories of the heating fuel were 17% higher than a year ago, delivering another stinging data to those long on the trade amid an unusually warm winter.
In Agri, castor refused to take any support whereas Cotton oil seeds cake surrendered its previous gain. Newly relaunched contract cotton saw a range bound move with some downside bias. Guar witnessed a quick rebound whereas Spices were low on sufficient supplies. Jeera prices corrected the most on better crop news and farmers were sending their produce direct to mandi from farm. Mentha saw much needed rebound. Dhaniya traded in lower band on absence of bulk buying by traders amid arrival season.
Indian has extraordinary attraction for gold across generations. Gold meets the ordinary Indians’ need for a long-term store of value, better than bank deposits or mutual funds. Gold is also an effective demonstrator of status of the Indian household.
India's gold demand
India's overall gold demand witnessed a marginal decline of 2.92 per cent in 2022 at 774 tonnes notwithstanding a sharp increase in prices the World Gold Council (WGC) said in its latest report. The overall gold demand in 2021 stood at 797.3 tonnes.
Demand for gold in the country during the fourth quarter of 2022 was down by 22 per cent at 276.1 tonnes, compared to 343.9 tonnes in the same period of 2021.
Total gold imported in India in 2022 was 673.3 tonnes, as compared to 924.6 tonnes in 2021, down by 27 per cent.
Total jewellery demand in India for 2022 was down by 2 per cent at 600.4 tonnes as compared to 610.9 tonnes in 2021 and in the value terms it was up by 4 per cent at Rs 272,810 crore as against Rs 261,150 crores in the previous year.
Similarly, the total investment demand during the year was down by 7 per cent at 173.6 tonnes in comparison to 186.5 tonnes in 2021, said the report.
In value terms, gold investment demand witnessed a decline of 1 per cent at Rs 78,860 crores from Rs 79,720 crores in 2021.
Gold buying by RBI
The RBI purchased 1.1t of gold during December increasing its total gold reserves to 787.4t at the end of 2022. The RBI’s gold purchases of 33.3t during 2022 are 57% lower y-o-y. At the end of the year the RBI’s gold reserves stood at 8.1% of total FX reserves compared to 6.9% at the end of 2021.
Indian gold ETFs holding
Indian gold ETFs saw marginal net inflows of 0.4t in 2022. A higher domestic gold price due to the weak INR contributed positively too many investors’ portfolios and some viewed these gains as opportunities to book profits. Others increased their holdings amid the volatile equity market and some utilised gold price dips to enter the market.
Indian gold demand may get support from the decline in CPI – anticipated to be 5.1% in 2023 from 6.9% in 2022. Further benefits may come from a strong wedding season and the expectation of stability in the INR. However, weaker economic outlook, a higher gold price and weak rural demand are remain challenges for Indian gold demand.
Indian Rupee continues it’s losing streak after the dollar advances in anticipation that the Federal Reserve won't stop monetary tightening soon. Rupee fell to the lowest level of 82.80, however, the fall in the rupee was limited to around 82.70-82.80 after RBI suspected selling of dollars in NDF to keep the rupee not to slide below 83.00/$. Apparently, the weakness will continue in the rupee but the pace of fall will accelerate if the rupee slides below 83.00/$. On the majors, the dollar index surged to hit a six-week high against a basket of currencies as a bout of resilient economic data out of the United States raised market expectations that more interest rate hikes were in the offing. Data on Thursday showed that the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, while other data revealed that monthly producer prices increased by the most in seven months in January. Fed officials have signaled that the Fed needs to go further in raising rates with markets expecting Fed Fund rates to peak at about 5.30% by July. We think in the wake of a strong dollar, both the euro and pound against the rupee are likely to slide further in the coming days.
USDINR (FEB)is trading above its major Exponential Moving Average indicating upwards trends for short term view. The Pair has major support placed around 82.40 levels while on higher side resistance is seen around 83.20 levels. The 21-day Exponential Moving Average of the USD/INR is currently around 82.44 Levels. On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 60.23.
One can buy near 82.50 for the target of 83.25 with the stop loss of 82.20.
GBPINR (FEB) is trading below its major Exponential Moving Average indicating downwards trends for short term view. The pair has major support placed around 98.00 levels while on higher side resistance is seen around 100.00 levels. The 21-day Exponential Moving Average of the GBP/INR is currently around 100.09. On the daily chart, the GBP/INR has Relative Strength Index (14-day) value of 41.42.
One can sell near 99.00 for the target of 98.00 with the stop loss of 99.50.
EURINR (FEB) is trading below its major Exponential Moving Average indicating downwards trends for short term view. The pair has major support placed around 87.50 levels while on higher side resistance is seen around 89.00 levels. The 21-day Exponential Moving Average of the EUR/INR is currently around 88.70. On the daily chart, the EUR/INR has Relative Strength Index (14-day) value of 45.25.
One can sell near 88.50 for the target of 87.50 with the stop loss of 89.00.
JPYINR (FEB) ) is trading below its major Exponential Moving Average indicating downwards trends for short term view. The pair has major support placed around 61.00 levels while on higher side resistance is seen around 62.75 levels. The 21-day Exponential Moving Average of the JPY/INR is currently around 62.74. On the daily chart, the JPY/INR has Relative Strength Index (14-day) value of 38.02.
One can buy near 61.50 for the target of 62.50 with the stop loss of 61.00.
Human Resource services company Spectrum Talent Management filed its draft red herring prospectus (DRHP) with the National Stock Exchange of India (NSE) to seek approval for raising funds from the primary market via an initial public offering (IPO). The IPO comprises a fresh issue of 60,49,600 equity shares and an offer for sale of 5,99,200 equity shares with a face value of 10 per share. The company intends to use the proceeds from the IPO primarily for acquisitions of companies in similar/ complementary areas and working capital for expanding the business. Spectrum Talent Management claims to have registered topline revenue of around Rs 584 crore and profit after tax of Rs 19.97 crore on a consolidated basis as of December 31, 2022. The company also said that it had deployed over 15,000 employees and more than 5300 NAPS/NATS employees as of December 2022. The company is headquartered in Delhi and has a corporate office in Noida. It also has a presence in the US and UK.
Non banking financial company Akme Fintrade (India) Ltd has filed preliminary papers with capital markets regulator Sebi to raise funds through an Initial Public Offering (IPO). The public issue comprises fresh issuance of 1.1 crore equity shares and no offer for sale (OFS) component, according to the Draft Red Herring Prospectus (DRHP). Proceeds of the issue will be used to argument capital base of the company. Udaipur-based Akme Fintrade is primarily engaged in providing rural and semi-urban centric lending solution to customers in four states -- Rajasthan, Maharashtra, Madhya Pradesh and Gujarat. The company's portfolio includes vehicle finance and business finance products to small business owners. Gretex Corporate Services Ltd is the sole book running lead manager to the issue. The equity shares of the company will be listed on the BSE and NSE.
Promoted by Italian stationary major Fila group, Doms Industries, a writing instruments company, plans to raise Rs 1,000-1,200 crore through an initial public offer in the next 12-15 months at a valuation of Rs 3,500-4,000 crore according to a source aware of development. Amajor part of the IPO proceeds would be used for capacity expansion as most of the installed capacity is fully utilised. Revenue of Doms grew by 25% annually in the past six years to Rs 700 crore in FY22. In the current fiscal year, it is likely to report revenue of around Rs 1,000-1,050 crore as demand remains buoyant. The company has been focussing on high-margin kits and combos segment. The segment’s share in revenue is likely to touch one fifth compared with almost nil in 2015 when they started kit sales. Given the expanding share of high-realisation products, the company’s operating margin before depreciation and amortisation (EBITDAmargin) is over 12%, which is one of the highest among peers. It has around 500 SKUs (stock keeping units) or products with a pan India presence through 100 stockists. The company’s plant is located in Umbergaon, Gujarat where eight out of every ten pencils in India are produced. With a capacity of 6.5 million pencils per day, Doms is the second largest pencil maker in India after privately held Hindustan Pencils, a maker of Natraj and Apsara pencils.
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Gold exchange traded funds (ETFs) witnessed a net outflow of Rs 199 crore in January, making it the third monthly withdrawal in a row, with investors preferring equities over other segments on buoyant record SIP flow. This was in comparison to a net outflow of Rs 273 crore registered in the segment in December and Rs 195 crore in November. Prior to that, Gold ETFs attracted Rs 147 crore in October, data with Association of Mutual Funds in India (Amfi) showed. Despite the outflows, the category saw its net assets under management (AUM) rising to Rs 21,836 crore at the end of January from Rs 21,455 crore in December-end. Also, the segment saw an increase in the number of folios by 35,680 to 46.74 lakh during the period under review.
Navi Mutual Fund has announced the launch of the Navi ELSS Tax Saver Nifty 50 Index Fund, a passive ELSS tax-saver fund. The New Fund Offer will commence on February 14 and conclude on February 28. With an expense ratio of 0.12% under direct plan, it will be the lowest cost tax saving ELSS fund in India. Being a tax saving mutual fund scheme, it will have a mandatory lock-in period of three years. There will be no exit-load on withdrawal post the expiry of the lock-in period. Investors can start investing with as low as Rs 500. Recently, SEBI had issued guidelines which enabled mutual fund houses in India with an existing active tax saver ELSS scheme to launch a passive ELSS scheme post restricting inflows in the active scheme. With the launch of the Navi ELSS Tax Saver Nifty 50 Index Fund, Navi will be the first mutual fund in India to take advantage of these guidelines.
HDFC Mutual Fund has announced the launch of HDFC MNC Fund, an open-ended equity scheme following multinational company (MNC) theme. The scheme will follow a multi cap strategy with investment across market cap segments. The New Fund Offer of the scheme will open for subscription from February 17 and will close on March 3. The scheme will be managed by Rahul Baijal. The minimum subscription amount for investment in these schemes is Rs 100 per application and any amount thereafter. The scheme will invest predominantly in Multi National Companies (MNCs) across sectors and market cap segments. The scheme will be benchmarked against NIFTY MNC TRI (Total Returns Index). The scheme will have two plans: regular and direct. Each plan offers growth option and income distribution cum capital withdrawal (IDCW) option. The scheme will follow bottom-up approach for portfolio construction. It will have a focused strategy of maximum 30 stocks as per current investment strategy.
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