Central bankers around the world have been hinting at aggressive rate hikes which are pushing the market into negative territory. Moreover, there is unease over recession fears in China underwhelming the market further.
Axis Securities – Weekly Technical Picks
· Nifty started the week on a flat note and observed profit booking in the initial half however buying support at lower levels pulled index higher to close on a strong note. Nifty closed at 17158 with a gain of 439 points on a weekly basis
· Bank Bank Nifty started the week on a flat note and observed profit booking in the initial half however buying support at lower levels pulled the index higher to close on a strong note . Bank Nifty closed at 37491 with a gain of 752 points on a weekly basis.
· Container Corporation of India Limited has a buy at range 705 – 690. Holding period is 3 to 4 weeks.
· Gujarat Narmada Valley Fertilizers and Chemicals Limited has a buy at range 710 – 695. Holding period is 3 to 4 weeks.
· Bata India Limited has a buy at range 1945 – 1905. Holding period is 3 to 4 weeks.
· Coal India Limited has a buy at range 210-205. Holding period is 3 to 4 weeks.
Divi’s Laboratories drops 3% in early trade on Monday
Gold prices today fall for 5th day in a row, near lowest of this month
Gold prices remained weak today as firm US dollar and higher US bond yields dampened the safe haven appeal of gold. On MCX, gold futures were down for the fifth straight day to near the lowest of this month. They were down 0.25% to ₹51,350 per 10 gram. Silver futures fell 0.6% to ₹55,144 per kg. In global markets, spot gold was down 0.1% at $1,746.06 per ounce, after falling nearly 3% last week. Among other precious metals, spot silver gained 0.2% to $19.06. (Full report)
Warehousing rents in Mumbai, Bengaluru, Delhi-NCR up 7.2% in FY’22: Report
Warehousing rents in Mumbai, Bengaluru and Delhi-NCR rose by an average 7.2% during the last fiscal on higher demand from third-party logistics, e-commerce and manufacturing sectors, as per a report.
In its Asia-Pacific Logistics Highlights H1 2022 report, Knight Frank said Mumbai saw annual growth of 9.3% in prime warehousing rents to ₹265 per square feet per year in the last fiscal, from ₹243 per square feet in the previous year.
Warehousing rent in Bengaluru rose 6.4 per cent to ₹240 per sq ft per year, while that in Delhi-NCR increased by 5.9% to ₹227.40. (PTI)
Adani to launch open offer for ACC and Ambuja Cements on August 26
The Adani Group is likely to launch next week an open offer worth ₹31,000 crore to acquire 26 per cent stake each in Swiss firm Holcim’s two Indian listed entities Ambuja Cements and ACC, from public shareholders.
In May this year, the Adani Group announced that it has clinched a deal to acquire a controlling stake in Holcim Ltd’s businesses in India for USD 10.5 billion.
Markets regulator Sebi granted approval for the open offer this week. The open offer is estimated at over ₹31,000 crore if fully subscribed.
In two separate regulatory filings, Ambuja Cements and ACC have submitted their letter of offers for the open offer launched by the Adani family group’s Mauritius-based firm Endeavour Trade and Investment. (PTI)
Rakesh Jhunjhunwala’s ‘most valuable’ advice is from his ‘worst’ investment. What he had said
Ace stock market investor Rakesh Jhunjhunwala who was referred as India’s Warren Buffett, died on 14 August. A self-made trader, investor and businessman, he was also known as ‘Big Bull’ of Dalal Street.
Rakesh Jhunjhunwala frequently spoke about generating wealth and investment and many wished to learn more from Big Bull regarding stock market investment. But his one worst advice has gone viral on social media which Jhunjhunwala had encouraged everybody to invest the most. (Full Story)
Angel One daily commodity outlook – Gold, Crude, and Metal
Saish Sandeep Sawant Dessai, research associate- base metals, Angel One Ltd:
Gold: We expect gold to trade lower towards 51040 levels, which could prompt the price to move more down to 50620 levels.
Crude: We expect crude to trade lower towards 7120 levels, which could prompt the price to move more down to 6980 levels.
Base Metals: While the production of metals remains uncertain given the high energy costs, the downside remains capped after China slashed its interest rates in order to promote demand and growth.
Ashika Stock Broking on Nifty: Medium to long term outlook continues to remain positive
Tirthankar Das, technical & derivative analyst, retail, Ashika Stock Broking Ltd: On the technical front, Nifty formed a Long bearish candle resembling closer to a Bearish Engulfing candle as it engulfed the previous three candles, hence there are indications that Nifty might be on the verge of reversing. Though the trendline adjoining the highs of Oct’21, Jan’22 and Apr’22 has been breached and is trading comfortably above it. Against such backdrop one can expect that the present rally to extend further towards 18100-18150 levels. Likewise support base has now shifted higher to 17,500 to 17,550 range (gap support). Momentum oscillator though are trading in overbought price conditions. Going ahead, Nifty is likely to witness consolidation amidst the range of 17550-18100 band. Medium to long-term outlook continues to remain positive and is likely to head towards CY22 high of 18350 but presently temporary breather can be expected which need to be capitalised on as incremental buying opportunity. Thus, during the day Nifty is likely to open on a flat to negative note tracking weak global cues and intraday support zone of 17600-17650 might halt the slide.
Sebi mulls more disclosure norms for QIP funds
Markets regulator Securities and Exchange Board of India (Sebi) is considering more exhaustive disclosure requirements for companies raising funds via the qualified institutional placement (QIP) route, three people aware of the development said. (Full Report)
Syrma SGS Technologies IPO: Latest GMP, how to check allotment status
After closure of subscription, all eyes are now set on Syrma SGS Technologies IPO allotment date, which is most likely on 23rd August 2022. Those who have applied for the public issue worth ₹840 crore need not to move from pillar to post after the announcement of share allotment as one can check Syrma SGS Technologies IPO allotment status online by logging in at the BSE website or at the website of its official registrar. The official registrar of the IPO is Link Intime India Private Ltd. Meanwhile, share of Syrma SGS Technologies have been on a rise in the grey market since its subscription got opened on 12th August 2022. According to market observers, shares of Syrma SGS Technologies is currently available at a premium of ₹58 in grey market. (Full Report)
Indian rupee opens lower on hawkish Fed outlook
The Indian rupee opened lower against the U.S. currency on Monday, as decline in Asian equities and bets that the Federal Reserve will continue to raise policy rates, boosted the dollar.
The rupee was trading at 79.81 per U.S. dollar by 0333 GMT, compared with 79.7750 in the previous session.
IT Index tanks at start on Monday, sheds more than 1%. All stocks in red.
Sensex and Nifty are in deep red and have lost around 350 and 110 points, respectively, at open on Monday
India’s headline inflation may ease below 6% by March -analysts
India’s headline retail inflation may ease below 6% by the fourth quarter of this financial year, bringing an end to the current cycle of rate hikes, analysts said over the weekend.
Following the release of minutes from the central bank’s monetary policy committee on Friday, analysts said the Reserve Bank of India (RBI) may hike repo rates by 50-60 basis points by December.
“We expect the RBI to deliver two 25 bps rate hikes at the September and December meetings, taking the repo rate to 5.90%,” Rahul Bajoria, chief India economist at Barclays said. (Reuters)
Sensex is in flat-to-negative territory at preopen on Monday. Global cues hint a rocky start for the indices.
Reliance Securities Stock in Focus: RK Forgings
STOCK IN FOCUS
RK Forgings (CMP Rs.189)
Considering better business traction, healthy automobile demand outlook, new order wins, strong margin territory, CV upcycle and attractive valuation post sharp correction, we reiterate our BUY recommendation on RMKF with a TP of Rs260, valuing the stock at a P/E multiple of 13.5x FY24E earnings.
GODREJCP (PREVIOUS CLOSE: 906) BUY
For today’s trade, long position can be initiated in the range of Rs896- 890 for the target of Rs920 with a strict stop loss of Rs872.
HINDALCO (PREVIOUS CLOSE: 427) SELL
For today’s trade, short position can be initiated in the range of Rs429- 432 for the target of Rs414 with a strict stop loss of Rs438.
SBILIFE (PREVIOUS CLOSE: 1,297) SELL
For today’s trade, short position can be initiated in the range of Rs1,311- 1,319 for the target of Rs1,260 with a strict stop loss of Rs1,328.
Stocks to Watch: Paytm, Adani, TCS, SpiceJet, L&T, NHPC
Tata Chemicals once again finds itself on the list of securities under the F&O ban for Monday trading. Besides, Balrampur Chini Mills and Delta Corp still remain in the ban period for the F&O segment as they have crossed 95% of the market-wide position limit. (Full Report)
Indian rupee seen opening lower as U.S. yields, dollar climb; RBI support key
The Indian rupee will likely open lower against the dollar on Monday, as expectations that the Federal Reserve will keep tightening its policy boosted the U.S. currency and Treasury yields.
The rupee is tipped to open at around 79.90 per dollar, compared with 79.7750 on Friday.
The local currency is within striking distance of its record low of 80.0650 hit on July 19. The 80/dollar level is considered psychologically important, and traders say the Reserve Bank of India (RBI) likely intervened aggressively when the rupee had fallen to that level. (Reuters)
China central bank cuts lending rates to boost economy
China’s central bank on Monday cut benchmark loan rates in an attempt to boost an economy battered by the government’s strict zero-Covid policy and a slump in the property market.
The world’s second-biggest economy saw an improvement after some coronavirus restrictions eased in June, but consumer and business sentiment remains weaker than usual.
The one-year Loan Prime Rate, which serves as a benchmark for corporate loans, was reduced from 3.7% to 3.65%, the People’s Bank of China (PBOC) said in a statement.
India bond yields may rise tracking U.S. peers, MPC inflation comments weigh
Indian government bond yields are likely to trend higher in early deals on Monday, tracking similar moves in their U.S. peers, while inflation worries highlighted by the Reserve Bank of India will further dent investor sentiment.
The benchmark 10-year government bond yield is likely to hover in a 7.30-7.36% band, a trader with a private bank said. The yield rose 8 basis points in last two sessions and ended at 7.2639% on Friday.
“While last week had started positively, we are now completely trapped in a bear zone, and there should be a gap down opening in terms of prices, as RBI is still very hawkish,” the trader said. (Reuters)
Bharti Airtel Ltd may not charge a premium for its 5G service
Bharti Airtel Ltd may not charge a premium for its 5G service but may offer it to users of high-priced tariff plans, Akhil Gupta, vice-chairman of parent Bharti Enterprises, said in an interview, adding that this may prompt users to upgrade to the superfast network as data consumption rises. (Full Report)
FPIs pump in ₹44,500 crore into Indian equities in three weeks of Aug
After turning net buyers last month, foreign investors have shown tremendous enthusiasm for Indian equities and have infused close to ₹44,500 crore in August so far amid softening of inflation in US and falling dollar index.
This was way higher than a net investment of nearly ₹5,000 crore by Foreign Portfolio Investors (FPIs) in entire July, data with depositories showed.
FPIs had turned net buyers for the first time in July after nine straight months of massive outflows, which started in October last year. Between October 2021 till June 2022, they sold a massive ₹2.46 lakh crore in the Indian equity markets. (PTI)
The Nifty’s rally has come on significantly lower cash market volumes, casting doubts on its sustainability
The benchmark corrected from a record high of 18,604.45 on 19 October last year through 15,183.4 on 17 June 2022. Between this period, it tested the 18,000 level twice, rising to a high of 18,350.95 on 18 January before tumbling to 15,711.45 on March 7 in the wake of the Ukraine conflict. It rose again to 18,114.65 on 4 April, plumbing through 15,183 on 17 June thereafter.
On both occasions, cash market volumes were substantially lower than that in October. Average daily turnover (ADT)was ₹81,361 crore in October last year, NSE data showed. When the Nifty retested the 18,000-mark in January this year, the ADT for the month was lower at ₹64,178 crore. It was ₹68,013 crore in June. (Full Report)
LIC sees 20% decline in death claims in Q1 FY23 as COVID impact ebbs
Insurance behemoth LIC witnessed a decline of nearly 20% in death claims in the first quarter of this fiscal with the COVID impact seen to be ebbing, though the amount is still higher than pre-2020 levels, officials said.
In the June quarter of the previous fiscal, settlement of death claims was to the tune of ₹7,111 crore, which for Q1 of this year was ₹5,743 crore, LIC Chairman M R Kumar said in a post-earnings call with analysts.
“So there is quite a decrease, and it’s quite obvious that whatever decrease was there based on COVID… going away now, Q1 to Q1 of the previous year,” Kumar said. (PTI)
Central Bank of India likely to exit RBI PCA framework soon
Central Bank of India, the only public sector lender under the RBI’s prompt corrective action (PCA) framework, may see an exit from restrictions soon following an improvement in its financial health. The bank has already made a representation to the Reserve Bank of India (RBI) based on the improvement in financial parameters on a sustained basis for the past five quarters, sources said. (PTI)
No proposal to charge UPI payments, says Finance Ministry
The finance ministry on Sunday said the government is not planning to charge for payments through the unified payments interface (UPI) channel, putting to rest speculation following a recent Reserve Bank of India (RBI) discussion paper on digital payment charges.
It said that the government had provided financial support for the digital payment ecosystem last year and has announced the same this year as well to encourage further adoption of such payments and promotion of economic and user-friendly payment platforms. (Full Report)
Vijay Shekhar Sharma reappointed as MD and CEO of Paytm
Vijay Shekhar Sharma has been reappointed as the Managing Director and Chief Executive Officer of financial services platform Paytm. According to news agency PTI, 99.67% of shareholders voted in favour of him.
“Thank you to our shareholders for a heartening response to our first AGM as a listed company. With overwhelming support, our MD & CEO Vijay Shekhar Sharma will continue to lead and guide us. All resolutions from our 22nd AGM have been duly passed.”, the company posted on Twitter. (Full Report)
No plans to import wheat into India, says government
The government has no plans to import wheat as it has sufficient stocks to meet the country’s requirements, the Department of Food and Public Distribution said on Sunday.
The Food Corporation of India (FCI) has enough stock for public distribution, it said.
“There is no such plan to import wheat into India. Country has sufficient stocks to meet our domestic requirements and @FCI_India has enough stock for public distribution,” the Department of Food and Public Distribution said in a tweet.
Tech stocks lead Wall Street lower on Friday, breaking winning streak
Wall Street capped a choppy week of trading Friday with a broad slide for stocks that left the major indexes in the red for the week.
The S&P 500 closed 1.3% lower, breaking a four-week winning streak. Shares in more than 80% of the companies in the benchmark index fell, with technology stocks driving much of the pullback.
The tech-heavy Nasdaq composite fell 2% and also ended four weeks of gains. The Dow Jones Industrial Average dropped 0.9%, ending slightly in the red for the week. Small company stocks also lost ground, pulling the Russell 2000 index 2.2% lower. (AP)
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