Month: January 2022

Categories
Daily Reports

Daily Report 31-Jan-22

Indian Market28-Jan-22
IndicesCloseChange% chg
Nifty17101.95-8.20-0.05%
Sensex57200.23-76.71-0.13%
Banknifty37689.40-292.70-0.77%
Indian Market28-Jan-22
Other IndicesCloseChange% chg
Nifty Mid-Cap 10029804.90440.201.50%
Nifty Small-Cap 10010991.90103.100.95%
India VIX20.70-0.37-1.76%
US Market28-Jan-22
IndicesCloseChange% chg
Dow 3034725.47564.691.65%
S&P 5004431.85105.352.43%
Nasdaq13770.60417.803.13%
Currency / Commodity28-Jan-22
IndicesCurrent
USD/INR75.1050
EUR/INR83.626
Dollar Index97.165
US 10-year bond1.8210%
WTI Crude Oil$ 87.12
Brent Crude Oil$ 88.53
Gold$ 1796.90
Bitcoin$ 36,830
FII / DII Activity28-Jan-22Rs. (In Crores)
(Provisional)BuySell
FII5045.34
DII3358.67

Trade Setup

  • Indian market witness sharp fall in 2nd half on Friday as FII selling continues. 1st trading day of February series saw opening gains as market prepares itself for Budget session.
  • Wall Street recovered in 2nd half of Friday after beaten down technology stocks witness value buying led by Apple Inc after it posted better than expected result.
  • Indian market will react to some earnings which came after market closing on Friday. LT, BRITANNIA, MARICO, AUBANK, BEL & OBEROIRLTY. SGX Nifty indicates opening 150 – 200 points gap-up around 17250 – 17300 level.
  • FII selling in last week was over 22k crores, so now US FOMC decision is out – we will be watching whether FII selling continues or not?
  • SGX Nifty @ 17266.50 up 174.50 points at 8:15 AM.

Technical View

  • Nifty on chart is trading near important level going into event, rally from 16833 from 27-Dec-21 to 18350 on 18-Jan-22, took 17 days and corrected to 16836 in just 6 trading day.
  • Nifty currently trading in range of 16833 – 17772, retracement level @ 61.8% of recent fall comes at 17772. Break-out on either side from this range could provide clear trend and we expect only post Budget event.
  • Banknifty immediate support at 37087 level and resistance at 38851. Banknifty has been outperforming Nifty in last couple weeks, Budget will set the new trend.
  • VIX @ 20.70, above comfort level of 20 and some build up premium due to Budget. Nifty PCR @ 0.92 compared to 1.08 previous.

Stock Updates

  • Zomato: To invest Rs 112.20 crore to acquire 19.48% stake in advertising technology company Adonmo. The company will also buy a 5% stake in software firm UrbanPiper Technology for Rs 37.38 crore. Zomato’s board has also approved setting up a fully-owned subsidiary for undertaking non-banking financial services.
  • SJVN: The company has received a letter of Intent for supply of 200 MW power at the fixed quoted tariff of Rs. 3.11 per kWh for sale of solar power from Bihar Renewable Energy Development Agency.
  • Bharat Electronics: The company has declared interim dividend of Rs 1.5 per share. It has also approved increase in Authorised Capital of the company from existing Rs.250 crore to Rs.750 crore.
  • NCC: The company received NCLT approval for the scheme of arrangement for merger of Avathesh Property Developers and Bhuvanesh Realtors with Sirisha Projects.
  • Earnings: Tata Motors, Sun Pharmaceutical Industries, IOCL, BPCL, HPCL, UPL, DLF, Ajanta Pharma, Exide Industries, Edelweiss Financial Services, Godawari Power & Ispat, KPIT Technologies, Hester Biosciences, KEC International, Shipping Corporation Of India & UCO Bank.
Disclaimer: The market view and updates we are sharing are true to the best of our knowledge and sharing just for information purpose and any action would be purely investor’s own responsibility. Investor are advised to take necessary guidance from certified adviser and hence we will not be responsible for any profit or loss incurred due it. We do not have PMS license and we are not recommending anything to buy or sell.
Categories
Weekly Reports

Weekly Report 30-Jan-22

Indian Market28-Jan-22
Weekly ChangeCloseChange% chg
Nifty17101.95-515.20-2.92%
Sensex57200.23-1836.95 -3.11%
Banknifty37689.40115.100.31%
Indian Market28-Jan-22
Other IndicesCloseChange% chg
Nifty Mid-Cap 10029804.90-758.70-2.48%
Nifty Small-Cap 10010991.90-425.05-3.72%
India VIX20.701.819.58%
US Market28-Jan-22
Weekly ChangeCloseChange% chg
Dow 3034725.47460.101.34%
S&P 5004431.8533.920.77%
Nasdaq13770.601.700.01%
Currency / Commodity28-Jan-22
IndicesCurrent
USD/INR75.1050
EUR/INR83.6260
Dollar Index97.218
US 10-year bond1.7780 %
WTI Crude Oil$ 87.31
Brent Crude Oil$ 89
Gold$ 1790.10
Bitcoin$ 38,112
FII / DII Activity28-Jan-22Rs. (In Crores)
(Weekly - Prov)BuySell
FII22,158.15
DII10849.40

Key Events of this week

  • Truncated but eventful week as final F&O expiry for January series and market reacted to hawkish US FOMC meeting outcome on Thursday 27-Jan-22.
  • Nifty & BSE Sensex decline by around 3% while Banknifty manage to close with 0.31% gain on weekly basis. Mid-Cap 100 was down by 2.48% & Small-Cap was down by 3.72% compared to last Friday.
  • Market reacted to RELIANCE & ICICIBANK result on Monday as it was declared after market closing on Friday. In a busy result season, market focus continues to remain on US FOMC outcome as new-age technology stocks continue to correct. LT Q3 result declared after market hours this Friday will react to its numbers of Monday.
  • US FOMC Meeting outcome: guided for rate hike in March 2022. Bond buying program to end by March 2022 as per revised scheduled on 15-Dec-21 meeting. US Fed’s policy is more hawkish than market expected as Fed chairman did not rule out hike in every meeting in 2022. Goldman Sachs expected 5 rate-hike in 2022.
  • IT Major along with new technology companies continue its southward journey. Starting from 1-Oct-21, FII sold in equity worth 1.38 lakh crores and that huge but countered by DII and retail investor.
  • Crude Oil trading at highest level since October 2014 as Russia – Ukraine tension, in case situation escalates Crude Oil supply could be impacted to Europe and few Asian countries.

Market View: Economic Survey on 31-Jan-22 & Union Budget on 1-Feb-22.

  • Market focus will shift to major yearly event – Union Budget to be tabled in parliament on 1-Feb-22 at 11:00 AM.
  • Market interestingly poised as globally there as shift in interest rate policy by central banks across the globe. US Fed guided for rate hike in March 2022 where as China reduced rate by 10 BPS after April 2020 to support struggling economy.
  • RBI MPC Policy meeting scheduled on 7 – 9 February 2022, outcome on 9-Feb-22. Fiscal math set in Budget will guide the next move by RBI or will play important role in next few policies.
  • Last CPI inflation data released on 12-Jan-22 came at highest level since July 2021 at 5.59% for December compared to 4.91% in November. It remained within MPC target range of 4% (+/-2%).
  • We continue to believe that year 2022 will not provide easy run as compared to 2021 and lots of volatility can be expected in this year. We expect Budget to provide government’s focus and clarity on steps coming up.
  • US FOMC decision to increase rate from March 2022 was in-line with market expectation and global market move seen in last 2 weeks. But the big question remains is that have this impact fully played out?
  • We believe, emerging market and currencies have not yet seen fully impact of easy money policy reversal by US Fed.

Our Approach

  • We are currently invested in range of 70 – 85% and are currently sitting on liquid around 15 – 30%. In case of major sell-off in Budget it could well provide an opportunity to add long position.
  • We will review fresh buy post Budget or post 15-Feb-22 as we believe by 15-Feb all near factor would have played out. Q3 result season would get over, Market would have understood and digested Budget. RBI MPC policy decision would be out.
  • As we mentioned in our last week report, we continue to follow that strategy – below mentioned statement from previous week report.
  • By this time some clarity emerges, we will prefer to increase cash level higher to 30 – 40% as any knee jerk reaction and may prefer to increase exposure as it may provide good buying opportunity in Telecom & Infrastructure sectors (domestic infra companies – excluding metals), as we see this sector outperforming in 2022.
Disclaimer: The market view and updates we are sharing are true to the best of our knowledge and sharing just for information purpose and any action would be purely investor’s own responsibility. Investor are advised to take necessary guidance from certified adviser and hence we will not be responsible for any profit or loss incurred due it. We do not have PMS license and we are not recommending anything to buy or sell.
Categories
Daily Reports

Daily Report 28-Jan-22

Indian Market27-Jan-22
IndicesCloseChange% chg
Nifty17110.15-167.80-0.97%
Sensex57276.94-581.211.00%
Banknifty37982.10275.350.73%
Indian Market27-Jan-22
Other IndicesCloseChange% chg
Nifty Mid-Cap 10029364.70-312.20-1.05%
Nifty Small-Cap 10010888.80-80.25-0.73%
India VIX21.07-0.29-1.36%
US Market27-Jan-22
IndicesCloseChange% chg
Dow 3034160.78-7.31-0.02%
S&P 5004326.50-23.43-0.54%
Nasdaq13252.80-189.30-1.41%
Currency / Commodity27-Jan-22
IndicesCurrent
USD/INR75.1575
EUR/INR84.0890
Dollar Index97.165
US 10-year bond1.8210%
WTI Crude Oil$ 87.12
Brent Crude Oil$ 88.53
Gold$ 1796.90
Bitcoin$ 36,830
FII / DII Activity27-Jan-22Rs. (In Crores)
(Provisional)BuySell
FII6266.75
DII2881.32

Trade Setup

  • Indices opened gap-down as reaction to US FOMC outcome which guided for rate hike in March 2022 but no clear guidance was given, so now market is not ruling in probability of 50 pbs rate hike in March itself.
  • Indices recovered form lows of the day on F&O expiry for January series, bounce back in 2nd half could due to rollover, profit booking on short position led to short covering and building some position ahead of Budget.
  • Wall Street continue to trade in volatile session ending with minor losses as S&P500 was down 0.52% & Nasdaq was down by 1.41%.
  • Indian rupee depreciated and trade above 75 against USD after long time as FII continue to sell. Indian 10-year G-SEC @ 6.7470% on expectation of RBI would move in with rate hike in upcoming meeting 8-9 Feb 2022 post Budget.
  • SGX Nifty @ 17155 down 12.50 points at 8:20 AM.

Technical View

  • Nifty took support around 16833 level where it all started around 27-Dec-21, rally towards 18350 took 17 days was corrected in just 6 trading days, make technical setup weak in medium term and oversold in short term.
  • Nifty RSI @ 37.24 & RSI average @ 48.19. looks for a bounce with a strong support at 16833 could test 17415 and at best 17772 level.
  • Banknifty has continue to outperform Nifty as Banknifty head towards 38851 as next target. Going into Budget – Banknifty is expected to more volatile compared to Nifty.
  • VIX @ 21.06 continues to trade at elevated level ahead of Budget event.

Stock Updates

  • TVS Motor: The company has acquired 75% stake in the Swiss E-Mobility Group through 1.15 lakh equity shares acquired at 525.58 CHF (Swiss Franc) on cash consideration. It plans to acquire the balance 25% stake in SEMG by next year.
  • Centrum: The company’s step down subsidiary Unity Small Finance Bank took charge of 110 branches of PMC Bank. Unity Small Finance Bank will immediately repay 96% of PMC Bank's depositors who have deposits worth Rs 5 lakh or less. The banks’ shareholders have committed capital of over Rs 3,000 crore through cash and warrants.
  • Advanced Enzyme Technologies: The company’s subsidiary SciTech Specialities Private Limited has approved investment in Vecteng SciTech, South Africa by acquiring 14% of paid up share capital of Vecteng for Rs 10.9 lakh ($14,500).
  • Jubliant Foodworks: The acquisition of additional 39% stake in JGHL from Golden Harvest QSR Limited by the company is now likely to be completed by April 27, 2022.
  • Earnings: Atul Ltd. Asahi India Glass Ltd. AU Small Finance Bank Blue Dart Express Ltd. Britannia Industries Ltd. CARE Ratings Ltd. Central Bank of India Century Plyboards India Ltd. Chambal Fertilisers and Chemicals Crompton Greaves Consumer
Disclaimer: The market view and updates we are sharing are true to the best of our knowledge and sharing just for information purpose and any action would be purely investor’s own responsibility. Investor are advised to take necessary guidance from certified adviser and hence we will not be responsible for any profit or loss incurred due it. We do not have PMS license and we are not recommending anything to buy or sell.
Categories
Daily Reports

Daily Report 27-Jan-22

Indian Market25-Jan-22
IndicesCloseChange% chg
Nifty17277.95128.850.75%
Sensex57858.15366.640.64%
Banknifty37706.75759.202.05%
Indian Market25-Jan-22
Other IndicesCloseChange% chg
Nifty Mid-Cap 10029676.90293.901.00 %
Nifty Small-Cap 10010969.0598.150.90%
India VIX21.36-1.47-6.44%
US Market26-Jan-22
IndicesCloseChange% chg
Dow 3034168.09-129.64-0.38%
S&P 5004349.93-6.52-0.15%
Nasdaq13542.102.800.02%
Currency / Commodity26-Jan-22
IndicesCurrent
USD/INR74.7900
EUR/INR84.366
Dollar Index96.60
US 10-year bond1.8530%
WTI Crude Oil$ 86.81
Brent Crude Oil$ 88.16
Gold$ 1813.25
Bitcoin$ 35,840
FII / DII Activity25-Jan-22Rs. (In Crores)
(Provisional)BuySell
FII7094.48
DII4534.53

Trade Setup

  • US FOMC meeting outcome: Kept rate changed at 0 – 0.25%. Guided for March 2022 rate hike and press conference indicated rate hike in every meeting schedule this year, more hawkish policy.
  • Wall Street reacted post policy outcome but gave up all the gains post press conference as market had not fully factored in hawkish stance.
  • Indian market closed yesterday on 26-Jan-22 Republic Day, will react to US FOMC outcome and final day for January F&O series expiry. Market gave up gains made in January, FII sold more than 7000 crores on Tuesday.
  • Market will today testing critical level on lower side and it will be important event and with current set going into Budget event with Negative set-up and least resilient to any disappointment from Budget.
  • SGX Nifty @ 16900 compared to 17263 (Nifty future closing on Tuesday) at 8:20 AM.

Technical View

  • Nifty 200-DAM @ 16608 could act as important support level and trend has been turned negative after sharp 6-day correction.
  • Nifty RSI @ 40.38 & RSI Average @ 50.93, indicate oversold zone. On Nifty - 1400 points rally on Nifty took 17 trading days and it just corrected in 6 days.
  • Banknifty is strong on chart as compared to Nifty, AXISBANK took the lead on Tuesday post its good Q3 numbers on Monday.
  • Nifty PCR @ 0.85 compared to 0.66 on Tuesday. VIX @ 21.36 above comfort level of 20 going into Budget event.

Stock Updates

  • GE T&D India: The company has agreed to sell Global Engineering Operations Division (India for Global) to GE India Industrial (a related party) together with the assets and manpower along with its corresponding liabilities by way of a slump sale on an “as is where is” basis.
  • Phoenix Mills: The company’s subsidiaries Vamona Developers and Offbeat Developers have entered into Share Subscription and Shareholders Agreement with Renew Surya Kiran and Renew Green Energy Solutions for subscribing 19.97% and 11.23% equity shares respectively in Renew Surya Kiran. The company has also d has collaborated with ReNew Power to generate 5 MW of solar power.
  • ICRA: The company appointed Amit Kumar Gupta as the interim Chief Financial Officer after Vipul Agarwal’s resignation.
  • Raymond: The company has approved the scheme of arrangement between the company and Raymond Lifestyle, a wholly-owned subsidiary.
  • Earnings: Indus Towers, Bharat Heavy Electricals, Punjab National Bank, Laurus Labs, Dalmia Bharat, Colgate-Palmolive (India), Canara Bank, LIC Housing Finance, CG Power and Industrial Solutions, Coforge, Birlasoft, CE Info Systems, Nippon Life India Asset Management, RBL Bank, AIA Engineering.
Disclaimer: The market view and updates we are sharing are true to the best of our knowledge and sharing just for information purpose and any action would be purely investor’s own responsibility. Investor are advised to take necessary guidance from certified adviser and hence we will not be responsible for any profit or loss incurred due it. We do not have PMS license and we are not recommending anything to buy or sell.
Categories
Daily Reports

Daily Report 25-Jan-22

Indian Market24-Jan-22
IndicesCloseChange% chg
Nifty17149.10-468.05-2.66%
Sensex57491.51-1545.67-2.62%
Banknifty36947.55-626.75-1.67%
Indian Market24-Jan-22
Other IndicesCloseChange% chg
Nifty Mid-Cap 10029383.00-1180.60-3.86%
Nifty Small-Cap 10010870.90-546.05-4.78%
India VIX22.833.9420.86%
US Market24-Jan-22
IndicesCloseChange% chg
Dow 3034364.5099.130.29%
S&P 5004410.1312.200.28%
Nasdaq13855.1086.200.63%
Currency / Commodity24-Jan-22
IndicesCurrent
USD/INR74.5850
EUR/INR84.3810
Dollar Index95.975
US 10-year bond1.7710%
WTI Crude Oil$ 83.52
Brent Crude Oil$ 85.81
Gold$ 1840.50
Bitcoin$ 36,250
FII / DII Activity24-Jan-22Rs. (In Crores)
(Provisional)BuySell
FII3751.58
DII74.88

Trade Setup

  • Panic button was pressed on Dalal-Street, Indian market witness one of the sharpest and brutal sell-off post March 2020. Investor fancy / High PE stocks / Fin Tech companies took beating on expectation of US Fed to make first move on interest rate in March 2022.
  • Wall- Street witness sharp recovery from the day’s low to finish the day in green. Buying on dip / short covering took market to close flat to green with gains under 1 percent for all 3 major indices.
  • Nifty PCR @ 0.66 compared to 0.87 on previous day, VIX @ 22.83 – Indian market showing oversold zone. SGX Nifty indicating 100 – 150 points gap-down opening below 17000 level.
  • Indian market will be closed tomorrow for Republic Day and US Fed meeting outcome will impact our market on 27-Jan-22 along with final F&O expiry day for January series.
  • SGX Nifty @ 16982.50 down 74.50 points at 8:40 AM.

Technical View

  • Nifty 17412 that was 61.8% retracement level of 16833 – 18350 rally was broken like a pack of cards yesterday. 16833 level is next level to watch out for.
  • Nifty PCR @ 0.66 compared to 0.87 on previous day. VIX @ 22.82 above comfort level of 20.
  • In short-term upcoming events – US FOMC meeting & Budget will guide the sentiment. Fear & Hope is now playing the market.
  • Now as we mentioned in our weekly update – capital protection remains our key focus and keep cash level around 25 – 40% of portfolio as we firmly believe clarity will emerge and fresh opportunity will be clearly visible which is not the case now and expect to be uncertain over next 4 – 5 trading day.

Stock Updates

  • Hero Motocorp: The company has approved an investment of Rs 700 crore in one or more tranches, in Hero FinCorp.
  • Axis Bank Q3FY22 Net Profit: Rs 3,614 crore vs Rs 1,116.6 crore (YoY) (Estimate: 3,216 crore)
  • SBI Cards and Payment Services Q3FY22 (Consolidated, YoY) Revenue up 20% at Rs 2,889.46 crore Vs Rs 2,408.37 crore Net profit up 84% at Rs 385.78 crore Vs Rs 209.66 crore Gross NPA at 2.40% Net NPA at 0.83%
  • Deepak Nitrite Q3FY22 (Consolidated, YoY) Revenue up 39% at Rs 1,722.27 crore Vs Rs 1,234.69 crore Net profit up 12% at Rs 242.46 crore Vs Rs 216.56 crore. Ebitda up 5% at Rs 351.85 crore Vs Rs 335.04 crore. Margins at 20.4% Vs 27.1%
  • Earnings: Maruti Suzuki India, Cipla, Pidilite Industries, Macrotech Developers, SRF, United Spirits, Torrent Pharmaceuticals, Aditya Birla Sun Life AMC, APL Apollo Tubes, Brightcom Group, Astec Lifesciences, Best Agrolife, Can Fin Homes, CarTrade Tech, Cosmo Films, Federal Bank, Finolex Industries, Indiabulls Real Estate, Icra, Ion Exchange (India), MPS, Raymond, RPG Life Sciences, Star Cement, Swaraj Engines, Symphony, TeamLease Services
Disclaimer: The market view and updates we are sharing are true to the best of our knowledge and sharing just for information purpose and any action would be purely investor’s own responsibility. Investor are advised to take necessary guidance from certified adviser and hence we will not be responsible for any profit or loss incurred due it. We do not have PMS license and we are not recommending anything to buy or sell.
Categories
Daily Reports

Daily Report 24-Jan-22

Indian Market21-Jan-22
IndicesCloseChange% chg
Nifty17617.15-139.85-0.79%
Sensex59037.18-427.44-0.72%
Banknifty37574.30-276.55-0.73%
Indian Market21-Jan-22
Other IndicesCloseChange% chg
Nifty Mid-Cap 10030563.60-748.45-2.39%
Nifty Small-Cap 10011416.95-266.70-2.28%
India VIX18.891.106.18%
US Market21-Jan-22
IndicesCloseChange% chg
Dow 3034265.37-450.02-1.30%
S&P 500-4397.93-84.80-1.89%
Nasdaq13768.90-385.10-2.72%
Currency / Commodity21-Jan-22
IndicesCurrent
USD/INR74.3975
EUR/INR84.2740
Dollar Index95.683
US 10-year bond1.7740%
WTI Crude Oil$ 85.97
Brent Crude Oil$ 88.03
Gold$ 1835.35
Bitcoin$ 35,648
FII / DII Activity21-Jan-22Rs. (In Crores)
(Provisional)BuySell
FII3148.58
DII269.36

Trade Setup

  • Indian indices closed with around 0.80% cuts on major indices, Mid-Cap 100 & Small-Cap 100 was down by over 2% and VIX at 18.89 level.
  • Wall Street had one of their worst weeks in recent past, Nasdaq was down 2.72% on Friday and 7.55% down in this week. Global Risk-Off trade continues ahead of US FOMC meeting.
  • People’s Bank of China cut 14-day reverse repo to 2.25% from 2.35%. DOW30 futures is up 200 points & SGX Nifty indicating opening with 150 points cut. Global market looking as Russia – Ukraine development closely.
  • Market will react to earnings declare post Friday’s closing for RELIANCE & ICICIBANK. We expect Reliance to open with cut and ICICIBANK to be in green.
  • SGX Nifty @ 17491 down 146 points at 8:10 AM.

Technical View

  • Nifty with 4th straight day of losses have now given up 50% of 16833 – 18350 rally; Retracement at 61.8% comes at 17412 level. It will important to hold on to this level for uptrend to continue.
  • Nifty RSI @ 46.63 & RSI average @ 57.82, indicates oversold zone and sharp bounce back on charts possible.
  • Banknifty has been doing well compared to Nifty, ICICIBANK’s result can also help today Banknifty close in green. Banknifty immediate support at 37087 and resistance level at 38323 remains critical.
  • VIX @ 18.89 & Nifty PCR @ 0.87 ahead of key event: US FOMC meeting, monthly F&O Expiry for January series & Budget on 1-Feb-22.

Stock Updates

  • PTC India: The company has called for a third-party audit of allegations related to board appointments at subsidiary PTC India Financial.
  • Birla Corporation: The company inaugurated the Mukutban integrated cement plant, the the largest greenfield investment of Rs 2,744 crore by the company, taking its cement business to 2 crore tons annually.
  • Oil and Natural Gas Corporation: ONGC Videsh has into the development stage of a major gas discovery in Brazil with the submission of Declaration of Commerciality. The company holds 25% participating interest of the block.
  • Inox Leisure: The company has approved a scheme of merger of Shouri Properties with Inox Leisure Ltd.
  • Earnings: HDFC Asset Management, Axis Bank, SBI Cards and Payment, Services, Shriram Transport Finance, Steel Strips, Supreme Industries, Ramco Cements, Burger King, Deepak Nitrite, Indian Energy Exchange, IIFL Securities, Kirloskar Ferrous, IndiaMart InterMesh, Zensar Technologies, Meghmani Finchem, Oriental Hotels, Greenpanel Industries, GRM Overseas, Apollo Pipes, Apollo Tricot Tubes, CERA Sanitaryware, Craftsman Automation, Chennai Petroleum, Quick Heal Technologies, Sudarshan Chemicals.
Disclaimer: The market view and updates we are sharing are true to the best of our knowledge and sharing just for information purpose and any action would be purely investor’s own responsibility. Investor are advised to take necessary guidance from certified adviser and hence we will not be responsible for any profit or loss incurred due it. We do not have PMS license and we are not recommending anything to buy or sell.
Categories
Weekly Reports

Weekly Report 23-Jan-22

Indian Market21-Jan-22
Weekly ChangeCloseChange% chg
Nifty17617.15-638.60-3.50%
Sensex59037.18-2185.85 -3.57%
Banknifty37574.30-796.10-2.07%
Indian Market21-Jan-22
Other IndicesCloseChange% chg
Nifty Mid-Cap 10030563.60-1426.05-4.46%
Nifty Small-Cap 10011416.95-492.55-4.14%
India VIX18.892.3314.07%
US Market21-Jan-22
Weekly ChangeCloseChange% chg
Dow 3034265.37-1646.44-4.58%
S&P 5004397.93-264.92-5.68%
Nasdaq13768.90-1124.90-7.55%
Currency / Commodity21-Jan-22
IndicesCurrent
USD/INR74.3975
EUR/INR84.274
Dollar Index95.62
US 10-year bond1.770 %
WTI Crude Oil$ 84.84
Brent Crude Oil$ 87.74
Gold$ 1835.90
Bitcoin$ 35,771
FII / DII Activity21-Jan-22Rs. (In Crores)
(Weekly - Prov)BuySell
FII12643.61
DII508.04

Key Events of this week

  • Indian market started the week on positive note as IT stocks witness some value buying post its initial reaction – TCS & INFY hit fresh 52 week high on Monday before seeing some profit booking.
  • Global cues this week was negatives as US 10-year bond yield touching 1.90%, highest level since January 2021 before cooling off to 1.770% to end the week. Crude Oil also tested fresh 4 months high of Supply concern as Iraq to Turkey pipeline hit by explosion.
  • Nasdaq was down 7.55% / 1124.90 points this week, correction for recent high 16200 level is around 15%. DOW30 was down 4.58% & S&P500 down by 5.68% on weekly basis.
  • Indian market witnesses a sharp reversal in trend mainly on global cues Risk-Off trade triggered by fear in rising US 10-year bond yield ahead of crucial US FOMC meeting outcome on 27-Jan-22.
  • Globally next generation technology companies / financial technology companies lead the decline as market participants fear the reversal in easy money policy.
  • RELIANCE came out with result on Friday after market hours and ICICIBANK declare Q3 result on Saturday – market will react to its earnings on Monday.
  • India continues to record more than 3 lakh fresh COVID-19 infection but hospitalization remains low is keeping market calm on this front. Globally COIVD-19 cases continue to rise but economic activity continues with any major disruption.

Market View: Last week on Monthly F&O expiry, US FOMC meeting on 27-Jan-22.

  • Global Risk-Off trade continues globally – as market continues to fear more policy measures could be announce by US Fed in its meeting this week to curb rising inflation.
  • RELIANCE result could fail to cheer market on Monday – although Net profit came higher than expected on other income, JIO numbers were disappointing.
  • ICICIBANK result were higher than estimates and it could help Banknifty to outperform Nifty in near term. ICICIBANK continues its stellar performance almost beating HDFCBANK on all front in last few quarters.
  • US Market on Friday witness sell-off in 2nd half and SGX Nifty indicate 200 points gap-down opening on Monday, SGX Nifty closed at 17438 on Friday. Reason for this correction is that market is fearing rate hike by US Fed could begin as early as March 2022.
  • Last week we did mention to avoid next gen stocks and maintain cash level around 15 – 20 percent. Next 2 weeks will be critical as US FOMC Meeting outcome on 27-Jan-22 & Union Budget on 1-Feb-22.
  • Global Risk-Off this week was surprising for many including us and last week, Nifty was just 300 points from fresh all time high and now Nifty is almost 1000 points away from 18600 level.
  • Technically, Indices are in oversold zone in near term. VIX closed at 18.89 & Nifty PCR @ 0.87 indicate oversold zone. As we have 2 major scheduled events in next 7 trading days – VIX remain at elevated remain is absolutely in line with expectation.

Our Approach

  • We believe, from here on to next 3 weeks – till end of Q3 result season by 15-Feb-22 – we would approach market in 3 different probable outcomes.
  • Before we go through the different scenarios let us understand what is currently build in prices and we see market as current level.
  • US Fed chairman Jerome Powell testimony before Senate Banking committee on 11-Jan-22 said: to curb inflation while doing no harm. “We’re really just going to be moving over the course of this year to a policy that is closer to normal, but it’s a long road to normal from where we are now,” he told the Senate Banking Committee.
Disclaimer: The market view and updates we are sharing are true to the best of our knowledge and sharing just for information purpose and any action would be purely investor’s own responsibility. Investor are advised to take necessary guidance from certified adviser and hence we will not be responsible for any profit or loss incurred due it. We do not have PMS license and we are not recommending anything to buy or sell.
Categories
Daily Reports

Daily Report 21-Jan-22

Indian Market20-Jan-22
IndicesCloseChange% chg
Nifty17757.00-181.40-1.01%
Sensex59464.62-634.20-1.06%
Banknifty3785085-190.50-0.50%
Indian Market20-Jan-22
Other IndicesCloseChange% chg
Nifty Mid-Cap 10031312.05-51.25-0.16%
Nifty Small-Cap 10011683.65-5.30-0.05%
India VIX17.79-0.03-0.17%
US Market20-Jan-22
IndicesCloseChange% chg
Dow 3034715.39-313.26-0.89%
S&P 5004482.73-50.03-1.10%
Nasdaq14154.00-186.30-1.30%
Currency / Commodity20-Jan-22
IndicesCurrent
USD/INR74.4925
EUR/INR84.4640
Dollar Index95.72
US 10-year bond1.7770%
WTI Crude Oil$ 83.77
Brent Crude Oil$ 86.72
Gold$ 1841.10
Bitcoin$ 39,902
FII / DII Activity20-Jan-22Rs. (In Crores)
(Provisional)BuySell
FII4679.84
DII769.26

Trade Setup

  • Indian market on weekly expiry day saw a roller-coaster rise and Indices trade in volatile session and ended Nifty with 1 percent cut and Banknifty down by 0.50%.
  • Wall Street’s main indexes ended sharply lower on Thursday and a rally in U.S. stocks evaporated late in the session as investors considered whether equities were bargains after a sell-off to start the year that has seen the Nasdaq fall into correction territory.
  • SGX Nifty indicating a weak start on back of global cues, FII selling has accelerated had led to a sharp fall on Thursday. Risk-off trade continues in equity and commodity where as US 10-year bond yield cooled off from recent high to 1.774%.
  • Bitcoin trading @ $39,902 & Gold trading @ $1841.10.
  • SGX Nifty @ 17673 down 127 points at 8:15 AM.

Technical View

  • Nifty technical are tested as global cues remain mix ahead of key earnings today & tomorrow. Nifty tested 17771, it is 38.2% retracement of rally from 16833.20 – 18350.95. Now 61.8% retracement of this rally comes at 17412.98.
  • Nifty RSI @ 50.49 & RSI average @ 60.61, it is getting oversold in short term – we are cautiously optimistic from this level and we expect bounce back from this level.
  • Banknifty has been outperforming Nifty in last 3 week this trend may continue – ICICIBANK earning will be key to be declare Q3 numbers tomorrow 22-Jan-22.
  • VIX @ 17.79, continues to remain in 16 – 20 level. Nifty PCR @ 0.94 compared to 0.78 on previous day.

Stock Updates

  • PTC India: On the issue of corporate governance raised by three independent directors in their resignation letters, the company said that the management is closely monitoring the situation and observed that there are difference of opinion at operation and board level on few issues. These issues are being looked into by a senior level committee of the company.
  • Aditya Birla Sun Life: The company has received approval fromInternational Financial Services Centres Authority to carry out Portfolio Management Services from GIFT City, Gandhinagar.
  • Surya Roshni: The company has secured orders of Rs 65.40 crore for supply of ERW Line Pipe for gas projects to ONGC and Rs 57.77 crore for supply of MS (Make: Surya) Bare Pipes 3 LPE Coated for Water Supply Project from Chambal- Bhilwara WSP (Phase-I) through Vishnu Prakash R Punglia.
  • Earnings: Reliance Industries, JSW Steel, HDFC Life Insurance Company, SBI Life Insurance Company, Hindustan Zinc, IDBI Bank, Bandhan Bank, Gland Pharma, L&T Finance Holdings, Vodafone Idea, PNB Gilts, Polycab India, Tanla Platforms, CSB Bank, PVR, Inox Leisure, Kajaria Ceramics, Jyothy Labs, Heritage Foods, RattanIndia Power, Gokaldas Exports, Kabra Extrusiontechnik, Max Ventures and Industries, Oriental Aromatics, Ramco Industries, Share India Securities, Supreme Petrochem, Supriya Lifescience, Wendt (India)
Disclaimer: The market view and updates we are sharing are true to the best of our knowledge and sharing just for information purpose and any action would be purely investor’s own responsibility. Investor are advised to take necessary guidance from certified adviser and hence we will not be responsible for any profit or loss incurred due it. We do not have PMS license and we are not recommending anything to buy or sell.
Categories
Daily Reports

Daily Report 20-Jan-22

Indian Market19-Jan-22
IndicesCloseChange% chg
Nifty17938.40-174.65-0.96%
Sensex60098.82-656.04-1.08%
Banknifty38041.35-168.95-0.44%
Indian Market19-Jan-22
Other IndicesCloseChange% chg
Nifty Mid-Cap 10031363.30-18.15-0.06%
Nifty Small-Cap 10011688.951.500.01%
India VIX17.820.040.22%
US Market19-Jan-22
IndicesCloseChange% chg
Dow 3035028.65-339.82-0.96%
S&P 5004532.76-44.58-0.97%
Nasdaq14340.30-166.60-1.15%
Currency / Commodity19-Jan-22
IndicesCurrent
USD/INR74.4175
EUR/INR84.4160
Dollar Index95.490
US 10-year bond1.854 %
WTI Crude Oil$ 85.61
Brent Crude Oil$ 88.19
Gold$ 1840.35
Bitcoin$ 41,981
FII / DII Activity19-Jan-22Rs. (In Crores)
(Provisional)BuySell
FII2704.77
DII195.07

Trade Setup

  • Indices down by 1 percent on weak global cues, risk-off trade at play as fear of rising interest and inflation concern grips the market ahead of US FOMC meeting on 27-Jan-22.
  • Wall Street ended the volatile session with around 1 percent decline with Nasdaq declining by 1.15%.
  • Going into trade on Thursday, weekly index options expiry – Global cues are mixed. US 10-year bond yield, Dollar Index & Crude Oil cooled-off from yesterday’s high.
  • Bitcoin trading @ $41,981 & Gold trading @ $1840.35. Gold price rise by 1.5% yesterday, near recent highs.
  • SGX Nifty @ 17910.50 down 67 points at 8:30 AM.

Technical View

  • Nifty closing at 17938.40, just at support level we mentioned yesterday @ 17944. Nifty RSI @ 56.07 & RSI average @ 63.14 is showing further weakness.
  • Nifty rally from 16833 – 18350, retracement at 38.2% comes at 17771 – we expect Nifty would hold on to this level and trend reversal possible from this level.
  • Banknifty immediate support at 37761 & next major support comes at 37087. Banknifty indicating sideways move ahead of ICICIBANK’s result on Saturday 22-Jan-22.
  • VIX @ 17.82, move above 20 – will turn very cautious. Nifty PCR @ 0.78 compared to 0.92 on previous day. Nifty PCR indicate – in oversold zone and can expect bounce back in 2nd half today.

Stock Updates

  • Power Finance: The company has transferred its wholly owned subsidiaries Karur Transmission and Khavda-Bhuj Transmission to Adani Transmission.
  • IFCI: To consider preferential share issue to government on Jan. 25.
  • TVS Motor: The company globally announced the launch of its motorcycle TVS Star HLX 150 Disc Variant in Egypt.
  • TCI Express: The company will consider declaration of second interim dividend on Jan. 28.
  • Earnings: Hindustan Unilever, Asian Paints, Bajaj Finserv, Bajaj Holdings & Investment, Havells India, Biocon, Mphasis, Persistent Systems, PNB Housing Finance, Hatsun Agro Product, Container Corporation Of India, Cyient, Reliance Industrial Infrastructure, Century Textiles & Industries, Datamatics Global Services, Agro Tech Foods, Bank of Maharashtra, Orient Electric, Dodla Dairy, Khaitan Chemicals & Fertilizers, PCBL, Sasken Technologies, Shoppers Stop, South Indian Bank, VST Industries
Disclaimer: The market view and updates we are sharing are true to the best of our knowledge and sharing just for information purpose and any action would be purely investor’s own responsibility. Investor are advised to take necessary guidance from certified adviser and hence we will not be responsible for any profit or loss incurred due it. We do not have PMS license and we are not recommending anything to buy or sell.
Categories
Daily Reports

Daily Report 19-Jan-22

Indian Market18-Jan-22
IndicesCloseChange% chg
Nifty18113.05-195.05-1.07%
Sensex60754.86-554.05-0.90%
Banknifty38210.30-5.85-0.02%
Indian Market18-Jan-22
Other IndicesCloseChange% chg
Nifty Mid-Cap 10031381.45-659.15-2.06%
Nifty Small-Cap 10011687.45-293.30-2.45%
India VIX17.781.016.02%
US Market18-Jan-22
IndicesCloseChange% chg
Dow 3035368.47-543.34-1.51%
S&P 5004577.34-85.51-1.83%
Nasdaq14506.90-386.90-2.60%
Currency / Commodity18-Jan-22
IndicesCurrent
USD/INR74.5850
EUR/INR84.9470
Dollar Index95.73
US 10-year bond1.882 %
WTI Crude Oil$ 86.17
Brent Crude Oil$ 88.78
Gold$ 1812.55
Bitcoin$ 42,412
FII / DII Activity18-Jan-22Rs. (In Crores)
(Provisional)BuySell
FII1254.95
DII220.20

Trade Setup

  • Global risk-off triggered by rise in 10-year bond yield to and rise in Dollar Index led to sell-off in 2nd half. Nifty & BSE Sensex ended the day with around 1 % cuts.
  • Banknifty corrected more than 600 points from the day’s high and Nifty more than 250 points from day’s high and it was all due to global risk-off trade.
  • Oil extended gains in Asia from the highest close since 2014 after a key pipeline running from Iraq to Turkey was hit by an explosion, taking out crucial supply from an already tight market.
  • As US 10-year bond yield rises to 2% currently trading @ 1.89% - market participants are fearing 4 rate hikes by US Fed in 2022, next US FOMC meeting outcome on 27-Jan-22.
  • SGX Nifty @ 18129 down 9.50 points @ 7:55 AM.

Technical View

  • Nifty face resistance around the end of the range of 18200 – 18350, we were cautious yesterday as Nifty RSI was @ 70.21 & RSI average @ 65.59, after yesterday’s correction Nifty RSI now @ 62.22 & RSI average @ 64.91.
  • Important support level to watch out for Nifty is at 18067 & 17944. We expect 17944 level is important for potential trend reversal.
  • Banknifty, as we mentioned yesterday was showing some sign of weakness, yesterday move makes things more sideways for Banknifty. Banknifty likely to continue in broad range of 37761 – 38851.
  • VIX @ 17.78, in case of VIX rise above 20 level, market could get highly volatile ahead of Budget. Nifty PCR @ 0.92 compared to 1.33 previous.

Stock Updates

  • Hero Motocorp: The company will make a strategic investment in Gogoro Inc. raising the oversubscribed private investment in public equity deal from $257 million to $285 million.
  • Raymond: The step-down wholly owned subsidiary of the company, Ten X Realty, signed a binding term sheet for joint redevelopment of residential project in the western sub-urban district of Mumbai. The project is estimated to have, in aggregate, revenue potential of around Rs 2,000 crore over a period of next 5 years.
  • HCL Technologies: The company has launched a dedicated Intel Ecosystem Unit to help build focused, innovative and industry-tailored solutions for Intel clients.
  • JK Paper: The company has commenced commercial production of its new Packaging Board line at Unit - CPM, Gujarat. Its new line will add 1,70,000 TPA capacity of Virgin Fibre Board taking company's total capacity of Packaging Board to 3,00,000 TPA.
  • Earnings: JSW Energy, JSW Ispat, Larsen & Toubro Infotech, Tata Communications, Tata Investment, Bajaj Auto, ICICI Lombard General Insurance, CEAT, Saregama India, Mastek, CCL Products, Oracle Financial Services Software, Sterlite Technologies, Syngene International
Disclaimer: The market view and updates we are sharing are true to the best of our knowledge and sharing just for information purpose and any action would be purely investor’s own responsibility. Investor are advised to take necessary guidance from certified adviser and hence we will not be responsible for any profit or loss incurred due it. We do not have PMS license and we are not recommending anything to buy or sell.