Month: January 2023

US Stocks: Tech stocks drive gains in futures

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U.S. stock index futures rose broadly on Friday, led by gains in tech and high-growth stocks, with investors awaiting key inflation data next week for clues on the pace of interest rate hikes by the Federal Reserve.

Fed Chair Jerome Powell’s hawkish comments led to a choppiness in trading on Thursday, but the three major indexes were still on track to post weekly gains and snap a three-week losing streak.

The CBOE volatility index, a gauge of investor anxiety, remained elevated at 23 points, which is above its long term average of 20.

Also Read: Share Market HIGHLIGHTS: Sensex ends 105 pts up, Nifty at 17833 amid volatility; Infosys, TCS, SBI stocks jump

Meanwhile, the U.S. dollar retreated from recent peaks after the European Central Bank’s 75-basis point rate hike on Thursday helped boost sentiment and provide some relief for global stocks and currencies.

High growth stocks Tesla, Apple Inc, Alphabet Inc, Amazon.com Inc firmed about 1% each in premarket trading.

Investors will now watch out for the August U.S. inflation report due next Tuesday to gauge the likelihood of another large interest rate hike from the Fed at its policy meeting later in the month.

Traders are pricing in an 87% chance of a 75 basis point rate hike at the next meeting, up from 57% a week earlier, according to CME Group’s Fedwatch tool.

At 6:41 a.m. ET, Dow e-minis were up 264 points, or 0.83%, S&P 500 e-minis were up 36.5 points, or 0.91%, and Nasdaq 100 e-minis were up 143.25 points, or 1.16%.

Shares of Digital World Acquisition Corp, the blank-check company which has agreed to take former U.S. President Donald Trump’s social media company public, rose 6.2% premarket after it said it would extend its life by three months.

Shares of Caterpillar Inc rose 1.6% after the company reached a tax settlement with the U.S. IRS.

Nykaa, Hindustan Copper, Godrej Properties, Dish TV, Supriya Lifescience stocks in focus on monthly F&O expiry

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Indian benchmark indices BSE Sensex and NSE Nifty 50 are expected to open higher on Thursday, weekly & monthly F&O expiry. SGX Nifty was up in green ahead of the session hinting at a positive start for the Indian share market. “Markets are not seeing any relief citing feeble global cues and a breakdown of 16,800 in Nifty could further dampen the sentiment. Meanwhile, oversold positions in select index majors may result in a marginal bounce in between. We reiterate our view to focus more on risk management and prefer defensive,” said Ajit Mishra, VP – Research, Religare Broking.

Stocks in focus on 29 September, Thursday

Also Read: Sensex, Nifty fall for 6th day straight ahead of monthly F&O expiry; Rupee at new low, Nifty support at 16800

Hindustan Copper: The company on Wednesday announced the highest-ever dividend per share at 30.01% of the net profit in FY22 with a net profit of Rs 373.78 crore, a 338% jump over the previous year’s net profit of Rs 109.98 crore. The total payout on account of the dividend would be Rs 112.17 crore.

Godrej Properties: The company has acquired a 7-acre land parcel in Bengaluru for development of a premium housing project that has an estimated Rs 750 crore revenue potential. It did not disclose the price at which the land has been acquired. The name of the seller was also not mentioned. In a regulatory filing, Godrej Properties said it has acquired a land parcel that is strategically located in the immediate vicinity of Indiranagar, Bengaluru.

Gensol Engineering: The company said the board has approved the preferential allotment of 12,81,993 equity shares at an issue price of Rs 1,036.25 per share. With this, it has raised Rs 132.84 crore via preferential issue.

Blue Dart Express: The company has announced an average shipment price increase of 9.6 percent for 2023 as compared to 2022. The general price increase will be effective from January 1, 2023.

Dish TV: The company’s board approved the transfer of its entire stake in Dish TV Lanka to Union International for 25 million Sri Lankan rupees (Rs 55.84 lakh). Following the transaction, Dish TV Lanka will stop to be a subsidiary of the company.

Also Read: Modi’s free ration scheme for poor gets 3-month extension, eyes 80 crore beneficiaries; to cost this much

Supriya Lifescience: The company has received Certification of Suitability (CEP) for Diphenhydramine hydrochloride, API in anti-histamine therapy, from European Directorate for the Quality of Medicines and HealthCare (EDQM). This will be an added advantage for Supriya Lifescience in the European market. Global demand for Diphenhydramine Hydrochloride is 1850 tons, of which major demand is in the regulated markets.

Britannia, Hindalco among top technical stocks to buy; watch out for these levels for Sensex, Nifty

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By Shrikant Chouhan

FMCG and technology stocks saved the market on Tuesday, otherwise, the Nifty/Sensex would have reached 14,800/50000 again due to weakness in bank stocks and metal companies. The global market was stable and long-term bond yields were also trading in the short-range. We believe that the markets would remain on the sidelines until the FOMC meeting is completed (Results will come Thursday morning) in the US. Keep an eye on the 14750/49800 and 15100/51000 range. Long positions should be bought between the levels of 14750/14800 (49800/50000) with a stop loss of 14700/49600 in the near future. We are likely to see trending activity after the FOMC meeting. The focus should be on FMCG and Infrastructure related stocks.

Britannia Industries

BUY, CMP: Rs: 3,489, TARGET: Rs 3,660, SL: Rs 3,420

After the strong rally from support zone of 3320 till 3500 the stock took a pause in momentum activity and currently on the daily time frame the stock has formed a cup and handle chart formation along with pick up in volume activity near its 20 day EMA which indicates uptrend move in near term.

NCC Ltd

BUY, CMP: Rs 87.6, TARGET: Rs 93, SL: Rs 84

The stock has presented a bullish continuation chart formation from the last few weeks and currently after the up move it is into a sideways movement forming a flag pattern on daily time frame. Positive parabolic SAR series and modest volume activity near important support level suggest strong possibility of fresh uptrend from current levels.

Manappuram Finance

BUY, CMP: Rs 163.9, TARGET: Rs 173, SL: Rs 159

The stock has corrected around 15% from the levels of 185 to 158 and currently the stock has been hovering in its demand zone which has emerged as a good base for the stock. Formation of harami candlestick pattern near important support area indicates a bullish reversal.

Hindalco Industries

BUY, CMP: Rs 333.9, TARGET: Rs 350, SL: Rs 325

After the strong rally from 200 to 350 levels, the stock went into a corrective pattern however a hammer candlestick formation has occurred near its 20 day EMA. For the positional traders 330 should be the key level to watch trading above the same with decent volume action we expect uptrend to resume in coming sessions.

(Shrikant Chouhan is the Executive Vice President, Equity Technical Research at Kotak Securities. Views expressed are the author’s own.)

US stocks: Wall Street set to fall on aggressive rate hike worries

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Wall Street‘s main indexes were set for a lower open on Monday, extending declines for a third straight day as investors worried that another massive interest rate hike by the Federal Reserve could tip the U.S. economy into a recession.

The S&P 500 and the Nasdaq logged their worst weekly percentage drop since June on Friday as markets fully priced in at least a 75-basis-point rise in rates during the week, with Fed funds futures showing a 21% chance of a whopping 100 bps increase.

Also read: Sebi looks to boost surveillance of social media, other platforms through web intelligence tool

“Markets are going to be looking for direction until the Fed meeting, there won’t be much trading action till then,” said Christopher Grisanti, chief equity strategist at MAI Capital Management in Cleveland.

The S&P 500 has lost nearly 19% so far this year on worries of a central bank-induced recession amid recent warnings of slowing demand from delivery firm FedEx and an inverted U.S. Treasury yield curve.

“I think a recession is very likely. The Fed regards a recession as regrettable, but necessary to fight inflation,” Grisanti said.

The CBOE volatility index, also known as Wall Street’s fear gauge, rose to 27.72 points, inching closer to a more than two-month high.

Focus will also be on new economic projections, due to be published alongside the policy statement at 2 p.m. ET (1800 GMT) on Wednesday.

Goldman Sachs cut its forecast for 2023 U.S. GDP late on Friday as it projects a more aggressive Fed and sees that pushing the jobless rate higher than it previously projected.

“We think a 100 bps hike would unnerve Wall Street … and would increase the likelihood that the FOMC will eventually overtighten and lessen the possibility of achieving a soft landing,” Sam Stovall, chief investment strategist at CFRA, wrote in a note.

Also read: Gold Price Today, 19 Sep’22: Gold falls despite positive global cues; US FOMC eyed, check support, resistance

At 8:20 a.m. ET, Dow e-minis were down 269 points, or 0.87%, S&P 500 e-minis were down 35 points, or 0.9%, and Nasdaq 100 e-minis were down 112.5 points, or 0.94%.

Heavyweights Microsoft Corp, Amazon.com, Meta Platforms, Alphabet Inc, Apple Inc , Tesla Inc and Nvidia Corp fell between 0.9% and 1.5% in premarket trading.

Bank of America slipped 1.1% to lead declines among the big U.S. Banks.

Take-Two Interactive Software Inc slid 4.2% following a report that a hacker had leaked the early footage of Grand Theft Auto VI, the next installment of the best-selling videogame.

S&P 500 ends near two-year low as bear market deepens; 10-yr treasury yield touches highest in over 12 yrs

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Wall Street sank deeper into a bear market on Tuesday, with the S&P 500 recording its lowest close in almost two-years as Federal Reserve policymakers showed an appetite for more interest rate hikes, even at the risk of throwing the economy into a downturn. The benchmark S&P 500 is down about 24% from its record high close on Jan. 3. Last week, the Fed signaled that high rates could last through 2023, and the index erased the last of its gains from a summer rally and recorded its lowest close since November 2020. The S&P 500 has declined for six straight sessions, its longest losing streak since February 2020.

Also Read: Will bears drag Nifty to 16800 amid high volatility, uncertainty? 5 things to know before market opening bell

Seven of 11 S&P 500 sector indexes fell, with utilities and consumer staples each down about 1.7% and leading declines. The energy sector index rallied 1.2% after Sweden launched a probe into possible sabotage after major leaks in two Russian pipelines that spewed gas into the Baltic Sea. Tesla gained 2.5% and Nvidia added 1.5%, with both companies helping keep Nasdaq in positive territory. Traders exchanged over $17 billion worth of Tesla shares, more than any other stock. The benchmark U.S. 10-year Treasury yield touched its highest level in more than 12 years amid the hawkish comments from Fed officials.

The Dow Jones Industrial Average fell 0.43% to end at 29,134.99 points, while the S&P 500 lost 0.21% to 3,647.29. The Nasdaq Composite climbed 0.25% to 10,829.50. Concerns about corporate profits taking a hit from soaring prices and a weaker economy have also roiled Wall Street in the past two weeks. Analysts have cut their S&P 500 earnings expectations for the third and fourth quarters, as well as for the full year. For the third quarter, analysts now see S&P 500 earnings per share rising 4.6% year-over-year, compared with 11.1% growth expected at the start of July.

Also Read: Reliance, HCL Tech, Dish TV, Torrent Pharma, Birla Corporation, IDBI Bank, Adani Group stocks in focus

Volume on U.S. exchanges was 11.7 billion shares, compared with an 11.3 billion average for the full session over the last 20 trading days. Declining issues outnumbered advancing ones on the NYSE by a 1.25-to-1 ratio; on Nasdaq, a 1.03-to-1 ratio favored advancers. The S&P 500 posted no new 52-week highs and 146 new lows; the Nasdaq Composite recorded 28 new highs and 502 new lows.

Gold Price Today, 6 Oct 2022: Gold gets costlier, near Rs 52000; analysts say ‘buy on dips’, check silver rate

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Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate and silver rate were trading higher in India on Thursday, on the back of positive global cues. On the Multi Commodity Exchange, gold December futures were ruling Rs 269 or 0.5 per cent up at Rs 51915 per 10 gram, as against the previous close of Rs 51646. Silver December futures were trading at Rs 61490 per kg, up Rs 723 or 1.2 per cent on MCX. Globally, yellow metal prices edged higher as Treasury yields retreated, although gains were limited after stronger U.S. economic data bolstered expectations the Federal Reserve will retain its hawkish narrative, according to Reuters. Spot gold was up 0.2% at $1,719.19 per ounce. U.S. gold futures rose 0.5% to $1,728.50.

Also read: Petrol and Diesel Price Today, 6 Oct 2022: Fuel cost steady; Check rates in Delhi, Mumbai, Noida, other cities

Gold prices rallied this week after US dollar and Treasury yields retraced last Friday on account of weaker than expected PMI numbers. Yesterday’s stronger than expected private payroll data did dampen some shine off precious metals but the trend still remains bullish. Arguably the most important U.S. data point of the week, if not the month, is Friday’s employment situation report for September from the Labor Department. OPEC’s decision to cut oil output to 2 million bpd also will give a boost to gold prices as higher oil will drive inflation higher. Corrective pullback is seen in COMEX gold but in MCX due to weak rupee, trend still is positive and we advocate buy on dips strategy today with stoploss of 51400 and expected target of 52000.

Rahul Kalantri, VP — Commodities, Mehta Equities

Gold and silver prices settled lower on Wednesday, after posting solid gains in the previous two sessions. A strong rebound in the U.S. dollar index, along with a significant rise in U.S. Treasury yields, are the bearish  market elements working against the bullion. Gold prices eased following the release of a slightly stronger-than-expected U.S. ADP jobs report that stood at  208,000 in September, as against the expectations of 200,000. The markets will also be closely watching Friday’s employment situation report for September from the Labor Department. However, strength in global oil prices and geo-political tensions between Russia & Ukraine are supporting safe-haven buying in precious metals. Gold has support at $1712-1698, while resistance is at $1740-1751. Silver has support at $20.48-20.20, while resistance is at $20.95-21.10. In INR terms gold has support at Rs 51,420-51,240, while resistance is at Rs 51,880, 52,050. Silver has support at Rs 60,150-59,440, while resistance is at Rs 61,480–62,110.

Also read: Bank Nifty support at 38000, Nifty to trade flat on today’s expiry; use short straddle for 13 Oct F&O expiry

Sriram Iyer – Senior Research Analyst at Reliance Securities

Gold and silver fell after the U.S. Dollar and the benchmark Treasury yields staged a comeback rally on Wednesday. Prices had rallied in the previous session amid hopes that the US Federal Reserve could adopt a less aggressive approach to rate hikes. Looking ahead, gold and silver have started stronger this Thursday’s trade despite a stronger dollar. U.S. non-farm payrolls data due on Friday could offer more clarity on the Fed’s policy tightening. So, MCX gold December range for the day is 51440 to 51770.

(The views in this story are expressed by the respective experts of the research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)

Kanpur-based Lohia Corp files IPO papers with Sebi 

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Lohia Corp, manufacturer of machinery used in the production of technical textiles, has filed draft papers with capital markets regulator Sebi to garner funds through an Initial Public Offering (IPO). The IPO is entirely an Offer-For-Sale (OFS) of 31,695,000 equity shares by promoters and other shareholders, according to the Draft Red Herring Prospectus (DRHP) filed on Thursday.

The company expects that the proposed listing of its equity shares will enhance its visibility and brand image, provide liquidity to shareholders as well as provide a public market for the equity shares in the country. Kanpur-based Lohia Corp is the manufacturer of machinery and equipment used in the production of technical textiles, in particular for manufacturing polypropylene and high-density polyethylene woven fabric and sacks.

As of March 31, 2022, the company had a customer base comprising over 2,000 customers in over 90 countries globally. The company’s revenue from operations increased to Rs 2,237.48 crore for the financial year 2022 from Rs 1,333.79 crore for the financial year 2021, while profit after tax rose to Rs 160.85 crore from Rs 119.30 crore during the same period.

ICICI Securities, IIFL Securities, HSBC Securities and Capital Markets (India) Private Limited, and Motilal Oswal Investment Advisory are the book-running lead managers to the issue. The equity shares of the company will be listed on the BSE and NSE.

Plan for extra excise duty on unblended petrol, diesel deferred

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The finance ministry has postponed by a month the imposition of a proposed extra excise duty of Rs 2 per litre on petrol that is not blended with ethanol. Such an impost on diesel that is not mixed with bio-diesel has also been deferred by six months. The additional levy, proposed in the Budget for FY23, was to be applicable from October 1.

The latest move comes at a time when inflation remains uncomfortably high in the wake of the Ukraine war. Retail inflation inched up to 7% in August from 6.71% in the previous month. The decision will also give more time to oil firms to better prepare for its adoption and remove any supply bottlenecks of either ethanol or bio-diesel, which, in any case, is going to be a tall order, according to analysts.

Also Read: ATF price cut 4.5 pc, commercial LPG rates down Rs 25.5 

The Budget decision to promote blending was meant to cut India’s oil imports proportionately and somewhat reduce pollution. The country imports about 85% of its annual oil requirements. The greater use of ethanol will also boost earnings of farmers who grow crops like sugarcane.

Currently about 10% ethanol is blended with 90% petrol. However, there is only an experimental mixing of bio-diesel–extracted from non-edible oilseeds—with diesel.

According to the latest notification, “petrol which is intended for retail sale, not so blended with ethanol or methanol” will attract Rs 3.40 per litre basic excise duty effective November 1, 2022, instead of the current Rs 1.40. Similarly, branded petrol that is not blending with ethanol will attract an excise duty of Rs 4.60 a litre, against the current Rs 2.60.

As for diesel that is “intended for retail sale, not so blended with alkyl esters of long chain fatty acids obtained from vegetal oils, commonly known as bio-diesels” will attract a basic excise duty of Rs 3.80 per litre, against Rs 1.80. Branded diesel will attract Rs 6.20 a litre basic excise levy, instead of the current Rs 4.20.

In addition to the basic excise duty, cess and special additional excise duty are also imposed on petrol and diesel. The total incidence of excise on petrol stands at Rs 19.90 a litre and that on diesel at Rs 15.80.

Analysts have said the blending move will be difficult to implement in states where ethanol isn’t produced in large volumes. Moreover, building infrastructure in states to manufacture bio-diesel in adequate quantity, they have said.

The government last year advanced the target by five years to achieve 20% ethanol blending with petrol to 2025. The blending of 10% was realised earlier this year.

Sensex, Nifty snap 7-day losing streak after RBI hikes repo rate; Nifty eyes 17700 with support at 16850

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BSE Sensex and NSE Nifty 50 ended nearly 2 per cent higher, snapping a 7-day losing streak on Friday. Investors cheered the RBI MPC announcement of the repo rate hike. BSE Sensex ended at 57,427, up 1,017 points or 1.8 per cent. The NSE Nifty 50 ended at 17,094, up 276 points or 1.64 per cent. Stocks of index heavyweights such as Reliance Industries Ltd (RIL), HDFC Bank, ICICI Bank, Housing Development Finance Corporation (HDFC), and Bharti Airtel were among the top index contributors. Broader markets performed in line with equity frontliners. S&P BSE MidCap index gained 1.4 per cent or 341 points to settle at 24,853.94, while the S&P BSE SmallCap index added 1.45 per cent or 406 points to finish at 28,453.

Deepak Jasani, Head of Retail Research, HDFC Securities

Also read: Airox Technologies files Rs 750-cr IPO papers with Sebi

Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services

With most key events now behind, the market finally found some strength on Friday. After 7 consecutive falls, the Nifty witnessed a strong rally and closed with gains of almost 300 points. It also reclaimed the 17,000 zones, making the short-term technical view positive. Nifty can now move towards 17,500-17,700 zones with key support around 17,000 and 16850. Auto and consumption sectors would be in focus ahead of monthly sales data and high demand in the ongoing Navaratri festival. The Pharma sector is seeing some value buying as the market focused on defensive names in times of global uncertainty.

Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities

What lifted the market sentiment was the RBI’s policy rate hike of 50 bps that came in as expected and its comment that India’s economy remains on strong footing despite global headwinds. The relief rally was backed by investors’ preference for growth-driving stocks from banking, automobile, realty & metal space. However, global macro factors will continue to dictate the domestic market sentiment going ahead as any fresh spell of negative news could once again trigger the downward spiral. Technically, after a sharp selloff, the Nifty took support near 16800 and bounced back sharply. On daily charts, the index has formed a long bullish candle, and also formed a promising Hammer candlestick formation on weekly charts which is broadly positive. For the trend following traders, the 200- day SMA (Simple Moving Average) and 16900 would act as a sacrosanct support zone. Above the same, the reversal wave is likely to continue till 17250. Further upside may also continue which could lift the index till 17400. On the flip side, below 16900, the uptrend would be vulnerable and on the further decline, the index could slip till 16800-16700.

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Vinod Nair, Head of Research, Geojit Financial Services

An in-line rate hike along with the RBI’s confidence in the economy’s growth momentum aided the domestic market to alter the seven-day losing streak. The decision to retain inflation at 6.70% with a marginal cut but a healthy GDP forecast of 7.0% indicates the resilience of the Indian economy. Although the commentary warned about prevailing risks to the domestic economy from the global economy, the MPC refrained from sounding very hawkish. Continuation of the policy stance as ‘withdrawal of accommodation’ indicates more rate hikes in the future, but is data-driven.

Gold prices to remain under pressure till US Fed; trend looks bearish, support seen at Rs 48800

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By Bhavik Patel

Gold hits 2020 pandemic lows as Fed rate hike expectations propels US Treasuries and Dollar higher. Gold and silver bulls remain frustrated that the risk aversion in the marketplace is not translating into more safe-haven demand for the two metals. Yesterday gold fell nearly $40 from daily highs to hit more than two-year lows. Previously for the past 2 years, buyers would emerge around the area of $1690-1685 but this week with higher US CPI and Fed’s commitment of taming inflation at the cost of the economy has scared bulls and gold made low of $1661. As we had stated earlier that $1690-84 was the region where buyers usually emerged and this time selling pressure was accelerated below $1684 as stoploss got triggered. Traders who had their long positions, held their longs with stop loss of $1684 and when that prices breached, it gave bears added ammunition.

US retail sales also came better than expected which again investors believe can give Fed safety to rate hikes aggressively. According to the CME FedWatch Tool, there is a 78% chance of a 75bps hike and a 22% chance of a 100bps increase at next week’s September meeting. On top of September expectations, it looks like the Fed will continue raising rates for the rest of the year, and that is weighing on gold. In this type of environment,  investors are more prone to liquidate their gold positions than their equities. For gold to see a substantial recovery, the market needs to see a slowdown in rate hikes. And that could happen within the next few months as economic data starts to deteriorate, allowing the Fed to take its foot off the monetary policy tightening pedal. 

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Gold in MCX has breached its swing low of 49700 and 49572. Trend is bearish as in COMEX it has breached its support of $1680. Next support comes at $1650 and $1622 while MCX support comes at 48800. Gold is looking vulnerable and more prone to fresh shorts. The only saving grace is that in MCX, momentum oscillator RSI_14 is at 29.75 i.e. in the oversold zone and in the past 3 years, gold has bounced from the oversold region. The most bearish condition happened around Mar 2021 when RSI_14 was at 26 but then price recovered. So investors who have a medium-term can wait for gold to come around the region of 48800-48500 where they can accumulate for medium term to long term basis. In the short term, till the FOMC, expect gold prices to remain under pressure.

(Bhavik Patel is a commodity and currency analyst at Tradebulls Securities. Views expressed are the author’s own. Please consult your financial advisor before investing.)